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Thursday 7 April 2022
Eleven Charged with Arranging Sham Marriages and Submitting Fraudulent "Green Cards" Applications for over 400 Non-CitizensRead the Press Release
BOSTON – Eleven California-based individuals have been indicted in connection with running a large-scale marriage fraud “agency” that allegedly arranged hundreds of sham marriages entered into for the primary purpose of circumventing immigration laws.
The following defendants were indicted today on conspiracy to commit marriage fraud and immigration document fraud:
- Marcialito Biol Benitez, a/k/a “Mars,” 48, a Philippine national residing in Los Angeles;
- Engilbert Ulan, a/k/a “Angel,” 39, a Philippine national residing in Los Angeles;
- Nino Reyes Valmeo, 45, a Philippine national residing in Los Angeles;
- Harold Poquita, 30, a Philippine national residing in Los Angeles;
- Juanita Pacson, 45, a Philippine national residing in Los Angeles;
- Felipe Capindo David, a/k/a “Pilipi” or “Peebles,” 49, a Philippine national residing in Los Angeles;
- Peterson Souza, 34, a Brazilian national residing in Anaheim, Calif.;
- Devon Hammer, 26, of Palmdale, Calif.;
- Tamia Duckett, 25, of Lancaster, Inglewood and Palmdale, Calif.;
- Karina Santos, 24, of Lancaster, Calif.; and
- Casey Loya, 33, of Lancaster and Palmdale, Calif.
Eight of the defendants, including Benitez, were arrested today in California. They will appear in federal court in the Central District of California today and appear in Boston at a later date.
According to the indictment, Benitez operated what he and others referred to as an “agency” that arranged hundreds of sham marriages between foreign national “clients” and United States citizens. One of those foreign national clients resided in Massachusetts. The agency then allegedly prepared and submitted false petitions, applications and other documents to substantiate the sham marriages and secure adjustment of clients’ immigration statuses for a fee of between $20,000 and $30,000 in cash.
“Marriage fraud is a serious crime that threatens the integrity of our nation’s lawful immigration system,” said United States Attorney Rachael S. Rollins. “These defendants’ alleged exploitation of this system for profit is an affront to our nation’s tradition of welcoming immigrants and prospective citizens. Their alleged fraudulent behavior makes things harder for the vast majority of immigrants who follow the law and respect our immigration system. Beyond that, by allegedly submitting false applications that claimed domestic abuse, these charged defendants did further harm, this time to real victims and survivors of domestic violence. Today’s arrests are the result of impressively comprehensive, cross-country agency collaboration. My office will continue to work with our law enforcement partners across the country to identify and hold accountable those who seek to violate U.S. law by fraud of any sort.”
“It is the utmost honor and privilege to become an American citizen, and the individuals we arrested today have allegedly made a sham of that process by running a large-scale marriage fraud “agency” that arranged hundreds of fake marriages for foreign nationals, racking up millions of dollars in profits. We believe their alleged scheme broke immigration laws that are in place to protect public safety and created a disadvantage for those seeking to earn their citizenship lawfully,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office “This case should serve as a warning to others that the FBI and our law enforcement partners are united in our efforts to disrupt and dismantle criminal enterprises that seek to circumvent our laws by fraudulent means.”
“Homeland Security Investigations and our law enforcement partners will continue to prosecute individuals and criminal organizations, who profit from manipulating the immigration system,” said Chad Plantz, Special Agent in Charge of Homeland Security Investigations in San Diego. “Today’s arrests are a result of an extensive multi-agency marriage and document fraud investigation. HSI will continue to conduct criminal investigations into immigration benefit fraud as this crime threatens the integrity of the lawful immigration system.”
“This case is a prime example of multiple agencies working as a team to uphold and protect our countries lawful immigration system,” said Alanna Ow, Director of U.S. Citizenship & Immigration Services, San Diego District. “Protecting America’s promise is at the core of what we do and I’m very proud of our Fraud Detection and National Security unit for the steadfast work they do to fulfill the agency’s mission on a daily basis.”
Benitez allegedly operated the agency out of brick-and-mortar offices in Los Angeles, where he employed his co-conspirators as staff. Specifically, it is alleged that Valmeo, Ulan, Poquita and Pacson assisted with arranging marriages as well as submitting fraudulent marriage and immigration documents for the agency’s clients, including false tax returns. Hammer, Duckett, Santos and Loya allegedly served as “brokers,” who recruited U.S. citizens willing to marry the agency’s clients in exchange for an upfront fee and monthly payments from the client spouses following the marriage – to keep the U.S. citizen responsive and cooperative until the client spouse obtained lawful permanent resident status. It is also alleged that Souza and Capindo David referred prospective foreign national clients to the agency for a commission, typically around $2,000 per referral.
After pairing foreign national clients with citizen spouses, Benitez and his staff allegedly staged fake wedding ceremonies at chapels, parks and other locations, performed by hired online officiants. For many clients, the agency would take photos of undocumented clients and citizen spouses in front of prop wedding decorations for later submission with immigration petitions.
Benitez and his staff then allegedly submitted fraudulent, marriage-based immigration petitions to U.S. Citizenship and Immigration Services (USCIS), the federal agency responsible for granting lawful permanent resident status. It is alleged that Benitez and his staff coached clients and spouses through interviews with USCIS and advised clients about maintaining the appearance of legitimate marriage to their spouses. According to the indictment Benitez and his co-conspirators arranged sham marriages and submitted fraudulent immigration documents for at least 400 clients between October 2016 and March 2022.
It is further alleged that Benitez and his co-conspirators would assist certain clients – typically those whose spouses became unresponsive or uncooperative – with obtaining green cards under the Violence Against Women Act (VAWA) by claiming the undocumented clients had been abused by alleged American spouses. Specifically, the agency would allegedly submit fraudulent applications on clients’ behalf for temporary restraining orders against spouses based on fabricated domestic violence allegations. Benitez and his co-conspirators would then allegedly submit the restraining order documentation along with immigration petitions to USCIS, in order to take advantage of VAWA provisions that permit non-citizen victims of spousal abuse to apply for lawful permanent resident status without their spouses’ involvement.
The charge of conspiracy to commit marriage fraud provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins, Boston FBI SAC Bonavolonta, San Diego HSI SAC Plantz and San Diego USCIS Director Ow made the announcement today. U.S. Attorney Rollins personally thanked U.S. Attorney for the Central District of California Tracy Wilkison for their valuable assistance in this matter. Assistant U.S. Attorney David M. Holcomb of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Drug Traffickers from Shreveport and Monroe Receive Lengthy Federal Prison SentencesRead the Press Release
SHREVEPORT/MONROE, La. - United States Attorney Brandon B. Brown announced that four defendants have been sentenced in U.S. District Court in connection with three separate cases. The defendants and their sentences are as follows:
Schyler Algernon Smith and Ladarrell Cortrell Washington, both of Shreveport, Louisiana, have been sentenced by Chief United States District Judge S. Maurice Hicks, Jr. on drug trafficking charges. Smith, 33, was sentenced to 262 months (21 years, 10 months) in prison, followed by 4 years of supervised release, for conspiracy to distribute and possess with intent to distribute methamphetamine. Washington, 41, was sentenced to 63 months (5 years, 3 months) in prison, followed by 3 years of supervised release, for distribution of methamphetamine.
Smith pleaded guilty on October 21, 2021 to conspiracy to distribute and possess with intent to distribute methamphetamine. Washington pleaded guilty on August 17, 2021 to distribution of methamphetamine. The charges in this case stem from an investigation by agents with the U.S. Drug Enforcement Administration (DEA). On February 7, 2019, agents conducted surveillance of Washington as he met his suspected source of supply of narcotics, who was later determined to be Smith. Through their investigation, agents were able to prove that the package delivered to Washington by Smith and later sold to another individual, contained 500 MDMA tablets. Those tablets were sent to the DEA Criminalistics Laboratory and determined to be 102.9 grams of a mixture and substance containing methamphetamine.
The case was investigated by the DEA and prosecuted by U.S. Attorney Brandon B. Brown and Assistant U.S. Attorney Jessica D. Cassidy.
Billy Ray Murphy, Jr., 37, of Shreveport, was sentenced by United States District Judge Donald E. Walter to 151 months (12 years, 7 month), followed by 5 years of supervised release. Murphy was indicted and pleaded guilty on December 2, 2021 to one count of possession with intent to distribute methamphetamine. On April 18, 2021, a Louisiana State Police trooper conducted a traffic stop of a vehicle being driven by Murphy. When Murphy opened the glove box to retrieve the vehicle paperwork, the trooper observed a handgun in the glove box. Murphy told the trooper that the firearm belonged to his girlfriend and gave consent to search the vehicle. Inside the trunk, troopers found 2.37 pounds of cocaine, 19.9 pounds of MDMA (more than 60,000 pills), and 21.5 pounds of synthetic marijuana. The MDMA was tested and found to contain methamphetamine. In addition, Murphy had four cell phones, a scale and a large amount of cash in the vehicle.
The case was investigated by the DEA and Louisiana State Police and prosecuted by Assistant U.S. Attorney J. Aaron Crawford.
Jeremy Michael Davis, 37, of Monroe, Louisiana was sentenced by United States District Judge Terry A. Doughty to 196 months (16 years, 4 months) in prison, followed by 5 years supervised release, for conspiracy to possess with intent to distribute methamphetamine. Agents with the U.S. Drug Enforcement Administration (DEA) began an investigation into the drug trafficking activities of Davis and his co-defendants. Through their investigation, they learned that beginning in October 2018 and continuing through March 2020, Davis conspired with three other individuals to possess methamphetamine with the intent to distribute it. On November 7, 2019, agents were able to intercept a phone call with Davis wherein he discussed the purchase price and sale of methamphetamine. Agents then conducted surveillance and confirmed Davis’ participation in the sale of methamphetamine. Agents ultimately seized the narcotics, and it was tested and confirmed to contain 88.6 grams of actual methamphetamine.
The case was investigated by the DEA and prosecuted by Assistant U.S. Attorney Brian C. Flanagan.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Dominican National Pleads Guilty to Drug Trafficking, Firearm, Illegal ReentryRead the Press Release
PROVIDENCE, RI – A Dominican national living in Providence faces sentencing in U.S. District Court and deportation proceedings after pleading guilty today to drug trafficking, firearm, and illegal reentry charges, announced United States Attorney Zachary A. Cunha.
Stevens Morales-Rivera, 46, who previously identified himself using several aliases, pleaded guilty to possession of cocaine with the intent to distribute, possession of a firearm by a prohibited person, and illegally re-entry of a removed alien.
According to charging documents, in August 2021, a Newport Police Department Detective and other members of the Rhode Island DEA Drug Task Force began a Project Safe Neighborhoods investigation into Morales-Rivera’s drug trafficking activities. The investigation included several DEA supervised purchases of cocaine from the defendant.
On October 19, 2021, members of the DEA Task Force conducted a court-authorized search of Morales-Rivera’s residence and seized six kilograms of cocaine, a .25 caliber semiautomatic pistol, a kilogram-press, $8,995 in cash, and various items used in the preparation and distribution of narcotics.
According to information presented to the court, at the time of his arrest, Morales-Rivera was found to have fingerprints on file with law enforcement under a different name; he had criminal records under two names, including a conviction in Massachusetts for trafficking cocaine; and he had been deported and re-entered the United States illegally.
Morales-Rivera, detained since his arrest in October 2021, is scheduled to be sentenced by U.S. District Court Judge Mary S. McElroy on June 23, 2022. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant U.S. Attorney G. Michael Seaman.
The Rhode Island DEA Drug Task Force is comprised of personnel from the DEA; United States Postal Service Office of Inspector General; Rhode Island Attorney General’s Office Bureau of Criminal Identification and Investigation; Rhode Island State Police; the East Providence, Cranston, Coventry, Newport, North Kingstown, Pawtucket, Providence, South Kingstown, Warwick, West Warwick, and Woonsocket Police Departments; and Amtrak Police Department.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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District Man Sentenced to 151 Months in Prison for Receipt of Child PornographyRead the Press Release
WASHINGTON – Ruben Verastigui, 29, of Washington, D.C., was sentenced today to 151 months in prison on a federal charge of receipt of child pornography.
The announcement was made by U.S. Attorney Matthew M. Graves, Raymond Villanueva, Special Agent in Charge, Washington, D.C. Field Office, Department of Homeland Security, Homeland Security Investigations (HSI), and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Verastigui pleaded guilty on July 9, 2021, in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Amit P. Mehta. Upon completion of his prison term, Verastigui will be placed on five years of supervised release. He also will be required to register as a sex offender for at least 15 years.
According to the government’s evidence, from April 2020 through February 2021, Verastigui was active in an online group devoted to trading child pornography and discussing child sexual abuse. Verastigui shared child pornography videos with another member of the group and made numerous comments about sexually abusing children. Verastigui indicated his preference for babies, saying they were his “absolute favorite,” and solicited another group member for videos of babies being raped. The other group member promptly sent Verastigui a video of a baby being raped, to which Verastigui responded enthusiastically. The other group member then sent Verastigui numerous other videos of child pornography.
Verastigui was arrested on Feb. 5, 2021. He has been in custody ever since.
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 the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
In announcing the sentence, U.S. Attorney Graves, Special Agent in Charge Villanueva, and Chief Contee commended the work of those who investigated the case from Homeland Security Investigations and the Metropolitan Police Department. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Caroline Burrell and former Assistant U.S. Attorney April Russo, who prosecuted the case.
Detroit man admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Keejuan Mayes, of Detroit, Michigan, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Mayes, 30, pleaded guilty today to one count of “Distribution of Heroin within 1000 feet of a Protected Location.” Stout admitted to distributing heroin near a playground in Clarksburg in March 2019.
Mayes faces at least one year and up to 40 years of incarceration and fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Greater Harrison Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
DOJ and Port of Edmonds resolve complaint regarding violations of the Americans with Disabilities ActRead the Press Release
Seattle – The U.S. Department of Justice and the Port of Edmonds, Washington have resolved a complaint that the Port violated the Americans with Disabilities Act (ADA) when it altered the parking lot at the Port marina and failed to provide appropriate accessible parking spaces, announced U.S. Attorney Nick Brown. As part of the settlement, the Port of Edmonds will pay a complainant $3,522 for discrimination and inability to use the marina.
“This resolution is a good reminder that federal law requires full and equitable access. It is not enough to simply designate a parking space with a blue accessible parking marker—that space must also have special characteristics that will allow those with mobility issues to enjoy full access,” said U.S. Attorney Nick Brown. “Once our office became involved, the Port of Edmonds quickly reconfigured their spaces with appropriate space and access aisles so that the spaces were usable by those using assistive devices such as walkers or wheelchairs.”
According to the settlement agreement, in February 2021, the Port of Edmonds reconfigured its parking lot and constructed a dumpster area where accessible parking had been. Soon after the work, the complainant notified the Port of Edmonds that the new configuration violated the ADA. Nevertheless, the Port did not make any changes.
On August 12, 2021, a representative of the U.S. Attorney’s Office viewed the North and South parking areas at the marina. The review found multiple violations of the ADA including a lack of aisle space next to the accessible parking spaces, and no designated van accessible parking spaces. The U.S. Attorney’s Office concluded the parking area did not comply with the ADA.
After receiving notice of non-compliance from the U.S. Attorney’s Office, the Port of Edmonds quickly made changes. By August 31, 2021, the Port reconfigured its parking areas to include accessible spaces with access aisles and designated van accessible areas. The accessible parking spaces were moved to shorten the distance to Port facilities.
The Port has agreed to designate an ADA coordinator, and place signs throughout its facilities identifying the ADA coordinator and how he or she can be contacted. The coordinator will be responsible for investigating any complaints regarding discrimination against individuals with disabilities.
The Port will pay the complainant who could not use Port facilities $3,522 and agrees in the settlement not to retaliate in any way against anyone who brings a complaint regarding ADA access.
The Port of Edmonds will certify its compliance with the ADA to the U.S. Attorney’s Office. The U.S. Attorney’s Office will monitor compliance for two years following the settlement. If no further issues arrive, the matter will be closed.
The matter was investigated and resolved by former Assistant United States Attorney Sarah Morehead and subsequently by Assistant United States Attorney Heather Costanzo.
Convicted health care fraudsters charged under False Claims ActRead the Press Release
CORPUS CHRISTI, Texas – The owner and administrator of Texas-based Merida hospice and home health entities have been named in a multi-million-dollar whistleblower lawsuit, announced U.S. Attorney Jennifer B. Lowery.
Rodney Mesquias and Henry McInnis, both 51, and formerly from Harlingen, were convicted of criminal health care fraud and conspiracy charges following a lengthy trial in Brownsville on Nov. 6, 2019.
“All health care providers who submit claims to the Medicare program are on notice that when they enroll in Medicare, they are subject to both criminal and civil consequences for the submission of false and fraudulent claims,” said Lowery.
The civil complaint filed today, alleges Mesquias and McInnis conspired to violate the civil False Claims Act by submitting false and fraudulent claims to Medicare for medically unnecessary hospice and home health services. It also alleges they paid illegal kickbacks to Merida medical directors for patient referrals and created false patient medical records in support of the false and fraudulent claims. These included hospice and home health certifications that were material to Medicare payments.
Mesquias and McInnis are currently in the custody of the Bureau of Prisons serving 240 months and 180 months, respectively, for their criminal convictions. Mesquias also has been ordered to pay $120 million in restitution to the Medicare program.
The United States is also entitled to recover triple the damages for violations of the civil False Claims Act as well as civil monetary penalties between $11,803 and $23,607 for each false claim submitted to Medicare.
The Department of Health and Human Services - Office of Inspector General, FBI and Texas Health and Human Services Commission conducted the investigation. Assistant U.S. Attorney Julie Redlinger is handling the matter.
Convicted Felon Going to Prison on Methamphetamine Charge Involving A DeathRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Jason Yelder, 39, of Buffalo, NY, who was convicted of possessing with intent to distribute five grams or more of methamphetamine, was sentenced to serve 135 months in prison and eight years supervised release by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that in 2017, Yelder was convicted of methamphetamine trafficking and sentenced to serve 20 months in prison and five years post-release supervision, which began on May 25, 2018. In February 2019, Yelder broke off all contact with probation personnel. In July 2019, the U.S. Marshal’s Service located Yelder at a hotel on Delaware Avenue in Buffalo, he had rented and was using distribute methamphetamine. On July 15, 2019, Yelder was arrested and found to be in possession of 21 baggies containing a total of approximately 30 grams of between 98% and 99% pure methamphetamine.
Subsequent investigation determined that on May 28, 2019, an individual identified as K.L. was found dead by the train tracks near 355 Lakefront Boulevard in Buffalo. Previously, K.L. had been at another hotel room rented by Yelder on Pearl Street. While at the hotel, the defendant gave K.L. a vial of liquid methamphetamine. The toxicology report for K.L. revealed methamphetamine in K.L.’s system, and the medical examiner concluded that, but for the methamphetamine in K.L.’s system, K.L. would not have died. The defendant admitted his role in the overdose death of K.L.
The sentencing is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia, the Drug Enforcement Administration, under the direction of Acting Special Agent-in-Charge Timothy Foley, New York Field Division, and the U.S. Marshals Service, under the direction of Marshal Charles Salina.
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Convicted Felon Admits Trying to Bring Loaded Gun on Plane at Newark Liberty International AirportRead the Press Release
NEWARK, N.J. – A Newburgh, New York, man today admitted possessing a stolen and loaded firearm that he tried to get through security at Newark Liberty International Airport, U.S. Attorney Philip R. Sellinger announced.
Desmond Herring, 48, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with one count of possession of a firearm and ammunition by a convicted felon and one count of carrying a weapon on an aircraft.
According to documents filed in this case and statements made in court:
On Nov. 29, 2021, Herring submitted a carry-on bag for inspection at Newark Liberty International Airport. During the screening of Herring’s luggage, a Transportation Security Administration (TSA) agent identified ammunition and a suspected firearm and contacted the Port Authority Police Department. Upon seeing that his bag had attracted additional attention, Herring left the security checkpoint area without his bag and walked to a departure gate for his flight to Atlanta, Georgia.
Further investigation of Herring’s bag revealed that it contained a 9 millimeter pistol, 10 rounds of 9 millimeter ammunition loaded into a magazine, and 150 additional rounds of 9 millimeter ammunition. Herring was prohibited from possessing a firearm due to a 2010 federal conviction for conspiracy to distribute controlled substances.
Both charges carry a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 17, 2022.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; officers of the Port Authority Police Department, under the direction of Superintendent Edward Cetnar; and officers of the TSA with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office National Security Unit in Newark.
Colorado’s Top Federal Prosecutor Joins Law Enforcement Partners to Send Warning about Fentanyl DeathsRead the Press Release
Colorado Springs – The United States Attorney’s Office for the District of Colorado and law enforcement leaders gathered media together to bring attention to the alarming increase in fentanyl-related deaths in Colorado. Together with law enforcement leaders from the FBI, DEA, 4th Judicial District Attorney’s Office, Colorado Springs Police Department, El Paso County Sheriff’s Office, El Paso County Coroner and Fountain Police Department, officials highlighted the dangers of fentanyl and what is being done to hold manufacturers and dealers accountable.
“In the four months I’ve been U.S. Attorney, it’s been astonishing to watch what is happening with fentanyl. It is a public health crisis and a public safety crisis. Fentanyl is dangerous, scary, and deadly,” said United States Attorney Cole Finegan. “Our offices are taking aggressive measures to use every tool at our disposal to prosecute anyone who makes or distributes this deadly drug. Our intent is to prosecute dealers and hold them accountable. They are killing our children and fellow Coloradans.”
“Disrupting drug trafficking organizations is a top priority for FBI Denver. At the same time, we recognize that lethal drugs like fentanyl are already here. Collaborations with our partners mean we can also find ways to bring justice to these criminal organizations even after they have caused death in our communities,” said FBI Denver Special Agent in Charge Michael Schneider.
“We stand with the U.S. Attorney and our national and local law enforcement partners to aggressively identify and bring to justice those greed-driven enterprises responsible for proliferating this deadly fentanyl scourge expanding across our country” said DEA Denver Field Division Special Agent in Charge Brian Besser. “DEA Denver is committed to interdicting the poison that is driving the overdoses in our communities; investigating the traffickers, and providing priority access to all of DEA’s global resources to better assist with this lethal drug threat.
“Those dealing Fentanyl in our community are not welcome here. We will hold you accountable for dealing Fentanyl in the El Paso and Teller County communities. If you kill somebody with this poison, you will be prosecuted to the fullest extent of the law and you should expect to spend an extended amount of time in prison,” said District Attorney Michael Allen from the 4th Judicial District.
“The El Paso County Sheriff’s Office is determined and committed to leveraging our regional, state, and federal enforcement and prosecutorial partnerships to stem the tide of what I believe can be preventable fentanyl overdoses and deaths in our community. My agency remains committed to serving the almost 800,000 citizens in El paso County by combatting this emergent law enforcement and public health challenge to make the Pikes Peak Region a safe place in which to live and work,” said Undersheriff Joe Roybal.
“Fentanyl is a lethal danger unlike any other, threatening the citizens of Colorado and indeed the Nation. CSPD is dedicated to working with our local and federal partners to disrupt the distribution of fentanyl in our community and to do everything we can to keep our citizens safe,” said Colorado Springs Interim Chief Adrian Vasquez.
“The mean age of fentanyl deaths is 12 years younger (35) than the average age of all other drug-related deaths (47). This shift to a younger population is due in part to the current pill form that is easily trafficked and ingested, its widespread contamination of other drugs of abuse, its high toxicity even in small amounts, and its pervasiveness in the community exposing even toddlers to fentanyl,” said Dr. Leon Kelly, El Paso County Coroner.
Under federal law, individuals convicted of distributing or conspiring to distribute fentanyl that causes death face a sentence of at least 20 years in prison and can receive up to a life sentence.
Examples of recent federal cases include:
- Douglas Floyd, Marlene McGuire, and Maria Davis-Conchie, of Colorado Springs, were charged with conspiring to distribute fentanyl and para-fluorofentanyl resulting in death, distribution of fentanyl and para-fluorofentanyl resulting in death, and distribution of fentanyl and para-fluorofentanyl to persons under age 21. Their case is pending in federal district court in Denver. Case number 22-cr-080-RMR.
- Alexis Nicole Wilkins, of Colorado Springs, was charged with allegedly distributing fentanyl resulting in death, and distributing fentanyl to persons under age 21. Her case is pending in federal district court in Denver. Case number 22-cr-101-CMA.
- Nathaniel David Corser, of Colorado Springs, was charged with distribution of fentanyl resulting in death, distribution of fentanyl within 1,000 feet of a high school, and possession of a firearm in furtherance of a drug trafficking offense. His case is pending in federal district court in Denver. Case number 22-cr-331-DDD.
- Bruce Holder of Grand Junction was found guilty of distributing counterfeit oxycodone pills containing fentanyl, which resulted in the death of a young man in Carbondale Holder is scheduled to be sentenced on May 4, 2022. Case number 18-cr-381-CMA.
- Ernesto Ibarra Jr. of Fort Collins, was sentenced to 175 months in federal prison for distributing fentanyl resulting in death. Blue pills resembling prescription oxycodone contained fentanyl, killing one victim. Case number 19-cr-074-PAB.
- Lewis Robertson, of Boulder, was sentenced to 60 months in federal prison for distributing fentanyl resulting in death. He distributed blue pills resembling prescription oxycodone, killing one victim. Case number 20-cr-251-RBJ.
According to the Drug Enforcement Administration, opioids are the leading of cause of overdose deaths in the United States, with fentanyl being the primary driver. The U.S. Attorney’s Office for the District of Colorado remains committed to working with our partners at the local, state and federal levels to protect Coloradans from the flood of fentanyl and fentanyl-laced pills coming into our state.
For more information, please visit: https://www.dea.gov/onepill
Charges contained in indictments are allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Colorado CEO and Fund Manager Admits to $11 Million Securities Fraud SchemeRead the Press Release
NEWARK, N.J. – A Denver, Colorado, CEO today admitted conducting a securities scheme to fraudulently obtain $11 million from investors through various misrepresentations about fund operations, his background, and his contribution to the fund, U.S. Attorney Philip R. Sellinger announced.
Samuel J. Mancini, 55, pleaded guilty before U.S. District Court Judge Cecchi in Newark federal court to an information charging him with one count of securities fraud.
According to documents filed in this case and statements made in court:
Mancini managed and controlled Outdoor Capital Partners LLC (OCP), which he purported to be a venture capital and private equity firm. OCP served as the managing director of OCP Italia Fund LLC (OCP Italia), a private investment fund. Mancini used OCP and OCP Italia to engage in the fraudulent scheme.
From February 2020 through July 2021, Mancini promised investors that he was raising $20 million, including $5 million of his own money, for OCP Italia to invest solely in acquiring controlling interests in three Italian cycling companies. Mancini represented to investors that the acquisitions would take place soon after the fund closed. To induce investments, Mancini promised investors approximately 70 percent of OCP Italia’s operating profits.
Mancini repeatedly misrepresented his finances and his contribution to OCP Italia. Mancini also misrepresented OCP Italia’s ability to close on the acquisitions. OCP Italia never acquired any of the Italian cycling companies. Instead, Mancini defaulted on contracts, diverted investor funds out of OCP Italia, and, in certain instances, paid investor funds to other investors seeking redemption.
Mancini also misled investors about his educational background by representing himself as a graduate of a prestigious military academy when, in fact, Mancini had failed to graduate from the academy due to an ethical violation.
When confronted with requests for transparency and redemptions by certain investors in OCP Italia, Mancini failed to honor the redemption requests, made misrepresentations about his inability to honor the redemption requests, misstated and omitted material facts, and provided certain investors with forged, modified, or otherwise fraudulent documentation and financial records. Mancini fraudulently obtained approximately $11 million from victims.
The securities fraud count carries a maximum penalty of 20 years in prison and a $5 million fine. Sentencing is scheduled for Aug. 17, 2022.
The U.S. Securities and Exchange Commission has filed a civil complaint against Mancini based on the allegations underlying the securities fraud scheme to which Mancini pleaded guilty today.
U.S. Attorney Sellinger credited special agents and intelligence analysts of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea. He also thanked the FBI Denver Field Office, under the direction of Special Agent in Charge Michael H. Schneider, for its assistance.
The government is represented by Assistant U.S. Attorney Lauren E. Repole, Chief of the General Crimes Unit.
Chinese National Sentenced for Economic Espionage ConspiracyRead the Press Release
A Chinese national formerly residing in Chesterfield, Missouri, was today sentenced to 29 months in prison followed by three years of supervised release and a $150,000 fine for conspiring to commit economic espionage.
Xiang Haitao, 44, pleaded guilty to the charge in January 2022. According to court documents, Xiang conspired to steal a trade secret from The Climate Corporation, a subsidiary of Monsanto, an internationally based company doing business in St. Louis, Missouri, for the purpose of benefitting a foreign government, namely the People’s Republic of China (PRC).
“Xiang conspired to steal an important trade secret to gain an unfair advantage for himself and the PRC,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The victim companies invested significant time and resources to develop this intellectual property. Economic espionage is a serious offense that can threaten U.S. companies’ competitive advantage, and the National Security Division is committed to holding accountable anyone who steals trade secrets to benefit a foreign government.”
“The defendant took advantage of living and working in the United States to steal a valuable trade secret for the benefit of PRC entities,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “This type of theft threatens employers large and small in every state, and it imperils our economic competitiveness as a nation. Individuals entrusted with valuable trade secrets should be on notice that if they abuse that trust – especially for the benefit of foreign nations – we will hold them accountable.”
“Those who conspire to steal technology from U.S. businesses and transfer it to China cause tremendous economic damage to our country," said Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division. "The government of China does not hesitate to go after the ingenuity that drives our economy. Stealing our highly prized technology can lead to the loss of good-paying jobs here in the United States, affecting families, and sometimes entire communities. Our economic security is essential to our national security. That’s why at the FBI protecting our nation’s innovation is both a law enforcement and a top national security priority.”
“This is the first economic espionage conviction ever in the history of the Eastern District of Missouri,” said Acting Special Agent in Charge Akil Davis of FBI’s St. Louis Field Office. There are less than two dozen such convictions nationwide. Economic espionage convictions are rare because the elements required to prove state-sponsored theft is extremely difficult,” “Today’s sentencing is a culmination of more than five years of tenacity and dedication by our agents and federal prosecutors. I commend their success in protecting the victim company and ultimately our U.S. economy.”
According to court documents, Xiang was employed by Monsanto and its subsidiary, The Climate Corporation, from 2008 to 2017, where he worked as an imaging scientist. Monsanto and The Climate Corporation developed a digital, online farming software platform that was used by farmers to collect, store and visualize critical agricultural field data and increase and improve agricultural productivity for farmers. A critical component to the platform was a proprietary predictive algorithm referred to as the Nutrient Optimizer. Monsanto and The Climate Corporation considered the Nutrient Optimizer a valuable trade secret and their intellectual property.
In June 2017, the day after leaving employment with Monsanto and The Climate Corporation, Xiang attempted to travel to China on a one-way airplane ticket. While he was waiting to board his flight, federal officials conducted a search of Xiang’s person and baggage. Investigators later determined that one of Xiang’s electronic devices contained copies of the Nutrient Optimizer. Xiang continued on to China where he worked for the Chinese Academy of Science’s Institute of Soil Science. Xiang was arrested when he returned to the United States in November 2019.
The FBI and the Department of Homeland Security, Customs and Border Protection investigated the case.
Assistant U.S. Attorneys Matthew Drake and Gwendolyn Carroll for the Eastern District of Missouri, Senior Trial Attorney Heather Schmidt and Trial Attorney Adam Small of the National Security Division’s Counterintelligence and Export Control Section, and Senior Counsel Jeff Pearlman and Assistant Deputy Chief Matthew Walczewski of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case.
Carjacker Sentenced to Federal PrisonRead the Press Release
Memphis, TN- Kalonji Warren, 26, has been sentenced to 70 months in federal prison for a carjacking. Joseph C. Murphy, Jr., United States Attorney, announced the sentence today.
According to information presented in court, on July 17, 2019, the victim was seated inside his vehicle at the Pump and Munch gas station on East Shelby Drive in Memphis, TN. Kristopher Harris and Kalonji Warren drove Warren’s tan Jeep SUV to the gas station and pulled alongside the victim's vehicle.
Harris pointed a semi-automatic handgun at the victim, firing one shot into the front passenger-side window of the vehicle. After the victim fled, Warren entered the victim's vehicle and drove away. One shell casing left at the scene was collected as evidence.
Video surveillance captured the suspect’s vehicle in the area and showed Warren enter the gas station prior to the carjacking. Part of the carjacking incident was also captured on video surveillance. During the investigation Kristopher Harris was positively identified.
Kristopher Harris and Kalonji Warren pled guilty to the carjacking charge on October 22, 2021.
On January 21, 2022, United States District Judge Thomas L. Parker sentenced Warren to 70 months in federal prison to be followed by three years’ supervised release. On April 1, 2022, United States District Judge Thomas L. Parker sentenced Harris to 97 months imprisonment and two years’ supervised release.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case.
Assistant United States Attorneys Wendy K. Cornejo and Gregory A. Wagner prosecuted this case on behalf of the government.
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Bronx, New York, Man Admits Scheme to Steal Checks from Mail and Defraud Banks of $550,000Read the Press Release
NEWARK, N.J.– A Bronx, New York, man today admitted his role in a scheme to steal checks from the mail, alter them and deposit them in bank accounts he controlled, U.S. Attorney Philip R. Sellinger announced.
Alique Jordan Clarke, 21, of the Bronx, New York, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to an information charging him with one count of conspiracy to commit bank fraud and one count of conspiracy to receive and possess stolen mail.
According to documents filed in the case and statements made in court:
From February 2020 to November 2020, Clarke and two conspirators stole over 290 checks from mailboxes in and around Morris, Essex, Somerset, and Passaic counties, altered the stolen checks, and then deposited the altered checks into bank accounts controlled by Clarke and his conspirators. After the stolen checks were deposited, Clarke and his conspirators withdrew cash from the accounts totaling more than $550,000.
The conspiracy to commit bank fraud charge carries a maximum penalty of 30 years in prison and a $1 million fine, and the conspiracy to receive and possess stole mail carries a maximum sentence of five years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 8, 2022.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Damon Wood, Philadelphia Division, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit.
Boston Police Officer Agrees to Plead Guilty to Tax ChargeRead the Press Release
BOSTON – A Boston Police Officer was charged and has agreed to plead guilty to allegedly failing to report gambling winnings on his tax returns.
Dana Lamb, 57, of Roslindale, was charged and has agreed to plead guilty to one count of filing a false document with the Internal Revenue Service. A plea hearing has not yet been scheduled by the Court.
In May 2020, while an Officer for the Boston Police Department, Lamb sold a winning lottery ticket worth $10,000 to a convenience store owner for cash rather than properly claiming it with the Massachusetts Lottery Commission. He then failed to report his gambling winnings on his U.S. Individual Tax return for the that year. Lamb’s failure to report the gambling proceeds resulted in an additional tax due and owing for that year of $1,800.
The charge of filing a false document with the Internal Revenue Service provides for a sentence of up to one year in prison, one year of supervised release and a fine of up to $10,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Boston Police Acting Commissioner Gregory Long made the announcement today. Valuable assistance was provided by the Massachusetts State Lottery Commission. Assistant U.S. Attorney Eugenia M Carris, Deputy Chief of Rollins’s Public Corruption 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.
Bessemer Man Convicted on Drug and Gun ChargesRead the Press Release
BIRMINGHAM, Ala. – A Bessemer man was convicted Tuesday on drug and gun charges, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
After two days of testimony, United States District Court Judge Karon O. Bowdre returned a guilty verdict against Christopher James Moton, 42, at a bench trial. Moton was convicted of possession with intent to distribute methamphetamine and heroin and possession of a firearm by a felon.
According to court documents and evidence presented at trial, Moton was found in possession of a firearm despite being a prohibited felon. A search conducted at Moton’s residence found trafficking amounts of methamphetamine and black tar heroin. Evidence at trial revealed that Moton intended to distribute these controlled substances to drug users in the community.
“Yesterday’s verdict is another success in law enforcement’s efforts to eliminate the distribution of dangerous drugs in our communities and remove firearms from the hands of convicted felons,” U.S. Attorney Escalona said. “We will continue to work with our law enforcement partners to investigate and prosecute those who intend to devastate our communities and ruin lives.”
“This conviction was an outstanding example of law enforcement partnerships working together to remove dangerous criminals from our neighborhoods,” SAC Sharp said. “Thanks to the great work of my agents and the Jefferson County Sheriff’s Office, Moton has been held responsible for his crime.”
The maximum penalty for possession of a firearm by a convicted felon is 10 years. The maximum penalty for possession with intent to distribute more than 50 grams of methamphetamine is life in prison.
The Federal Bureau of Investigation investigated the case along with the Jefferson County Sheriff’s Office. Assistant U.S. Attorneys Gregory R. Dimler and Allison J. Garnett are prosecuting the case.
Bellefonte Man Sentenced to 96 Months’ Imprisonment for Drug TraffickingRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ryan Joel King, age 40, of Bellefonte, Pennsylvania, was sentenced to 96 months' imprisonment by Chief U.S. District Court Judge Matthew W. Brann for drug trafficking. According to United States Attorney John C. Gurganus, on November 9, 2021, King entered a guilty plea to possessing methamphetamine and LSD with the intent to distribute them to others. King was the subject of an investigation by the Pennsylvania State Police and was found with 286 grams of methamphetamine, nearly 2 grams of liquid LSD, and drug paraphernalia. King also possessed a .22 caliber handgun in connection with the drug offense which led to a sentencing enhancement.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Bureau of Alcohol, Tobacco, and Firearms, and the Pennsylvania State Police. Assistant United States Attorney Geoffrey W. MacArthur prosecuted the case.
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Baltimore Sex Trafficker Admits to Recruiting a 14-Year-Old Minor Near a Group Home to Engage in Commercial SexRead the Press Release
Baltimore, Maryland – Kyle David Robinson, age 29, of Baltimore, Maryland pleaded guilty today to sex trafficking of a minor.
The plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Chief Gregory J. Der of the Howard County Police Department; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his plea agreement, Robinson knowingly recruited, enticed, transported, and advertised a 14-year-old female (Minor Victim 1) to engage in commercial sex acts for his own financial benefit. Robinson admitted that he was aware that Minor Victim 1 was 14-years old prior to advertising her for commercial sex.
Robinson approached Minor Victim 1 in May 2021 in his vehicle while Minor Victim 1 was sitting on the steps of near a group home where she resided. Robinson told Minor Victim 1 that he was a pimp and referred to himself as “Youngblood”. Despite Minor Victim 1 informing Robinson that she was a minor, Robinson asked for Minor Victim 1’s phone number and sent her a text message. The following day, Robinson picked up Minor Victim 1 from the group home and brought her to his residence.
As detailed in his plea, in May and June 2021, Robinson transported Minor Victim 1 to his residence on multiple occasions. On at least one occasion, Robinson engaged in unprotected sex with Minor Victim 1. After one interaction in which Robinson had intercourse with Minor Victim 1, Robinson told Minor Victim 1 that she had to “break herself” to him, took $50 from Minor Victim 1, and told Minor Victim 1 that she should call him “daddy”.
Robinson advised Minor Victim 1 to download a social media application for the purpose of communicating with potential commercial sex customers. Robinson then scripted responses to potential customers on Minor Victim 1’s behalf. Additionally, Robinson sent verbally hostile messages to Minor Victim 1 and instructed her to always keep her phone with her.
On June 4, 2021, in a text message with Minor Victim 1, Robinson informed Minor Victim 1 that he had to physically assault Victim 2, a 19-year-old female, for having a boyfriend. Robinson arranged for Victim 2 to reside at his residence and for Victim 2 to go on commercial sex dates. Like Minor Victim 1, Robinson had unprotected sex with Victim 2, and required Victim 2 to pay him money to associate with him.
As stated in his plea agreement, after law enforcement received information that Robinson offered young females for commercial sex, investigators arranged for an undercover agent to arrange for commercial sex. In a conversation with the undercover agent, Robinson told the undercover agent that he had young girls and that he had two teenagers available for an hour at the rate of $1,000. The undercover agent offered to pay $500 for half an hour with a tentative date and Robinson agreed. Later in the conversation, Robinson told the undercover agent that he had only one female available because of a conflicting school schedule.
On June 7, 2021, Robinson called the undercover agent to arrange for two victims, including Minor Victim 1, to have commercial sex with the agent at a hotel. Surveillance cameras captured Robinson and Minor Victim 1 as they entered the hotel for the commercial sex date. Within the hotel room, the undercover agent offered $750 to have sex with Minor Victim 1. Robinson then accepted the money for the sex date. Shortly after, law enforcement entered the room and apprehended Robinson and secured Victim 1.
Robinson faces a minimum sentence of 10 years in prison and a maximum of life in prison for sex trafficking of a minor. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for July 22, 2022, at 9:30 a.m.
This case was investigated by law enforcement agencies that are members of the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.mdhumantrafficking.org/.
United States Attorney Erek L. Barron praised the HSI, the Howard County Police Department, and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Mary W. Setzer and Colleen E. McGuinn, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, information on the Maryland Human Trafficking Task Force, and resources available to report human trafficking, please visit https://www.justice.gov/usao-md/human-trafficking.
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Another Defendant in Staged Automobile Collision Scheme Pleads GuiltyRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that LERTRICE JOHNSON (“JOHNSON”), age 45, has pled guilty on April 6, 2022 to Count one (1) of her indictment, which charged her with Conspiracy to Commit Mail Fraud in violation of Title 18, United States Code, Section 371. In pleading guilty to Count 1, the defendant faces a maximum penalty of five (5) years’ imprisonment; a term of supervised release of up to three (3) years; and a fine up to $250,000.00, or the greater of twice the gross gain to the defendant or twice the gross loss to any person under Title 18, United States Code, Section 3571, as well as a mandatory special assessment fee of $100.00. Today’s guilty plea brings the total number of defendants convicted in Operation Sideswipe to thirty-four (34).
As part of her plea, JOHNSON admitted her involvement in a scheme to falsely claim she was a passenger in a car that was struck by a tractor-trailer on June 8, 2016. In fact, the government’s evidence showed that the defendant conspired with Damien Labeaud (“Labeaud”), Keishira Robinson (“K. Robinson”), and others to intentionally collide K. Robinson’s Mazda with a tractor-trailer in the area of Chickasaw Street and Louisa Street in New Orleans. JOHNSON later lied in her civil deposition, falsely claiming that K. Robinson was driving the Mazda and that the tractor-trailer was at fault. In fact, Labeaud was driving the car and intentionally hit the tractor-trailer. JOHNSON also claimed that Ashley McGowan (“McGOWAN”) was in the car at the time of the collision when in fact McGowan was not. Moreover, JOHNSON falsely alleged that she had gone to the hospital after the collision. JOHNSON hoped that, through her false statements, she would secure lucrative monetary settlements from the owner, driver, and insurer of the tractor-trailer.
Sentencing in this matter is set for July 13, 2022, before United States District Judge Sarah S. Vance.
The U.S. Attorney’s Office would like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brandon S. Long; Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant U.S. Attorney Maria M. Carboni; and Assistant U.S. Attorney Edward Rivera.
Another Defendant from New Orleans Pleads Guilty in Staged Automobile Collision SchemeRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that DAVIENQUE JOHNSON (“JOHNSON”), age 28; pled guilty to Count one (1) of her indictment, charging Conspiracy to Commit Mail Fraud in violation of Title 18, United States Code, Section 371. In pleading guilty to Count 1, the defendant faces a maximum penalty of five (5) years’ imprisonment; a term of supervised release of up to three (3) years; and a fine up to $250,000.00, or the greater of twice the gross gain to the defendant or twice the gross loss to any person under Title 18, United States Code, Section 3571, as well as a mandatory special assessment fee of $100.00. Today’s guilty plea brings the total number of defendants convicted in Operation Sideswipe to thirty-five (35).
As part of her plea, JOHNSON admitted her involvement in a scheme to falsely claim she was a passenger in a car that was struck by a tractor-trailer on June 8, 2016. In fact, the government’s evidence showed that the defendant conspired with Damien Labeaud (“Labeaud”), Keishira Robinson (“K. Robinson”), and others to intentionally collide K. Robinson’s Mazda with a tractor-trailer in the area of Chickasaw Street and Louisa Street in New Orleans. JOHNSON later lied in her civil deposition, falsely claiming that K. Robinson was driving the car that collided with the tractor-trailer, when in fact Labeaud was driving the car and intentionally hit the tractor-trailer. JOHNSON had relocated from the back row of the Mazda to the front passenger seat after the collision. JOHNSON hoped that, through her false statements, she would secure lucrative monetary settlements from the owner, driver, and insurer of the tractor-trailer. Her case was later settled, which resulted in the mailing of a settlement check.
Sentencing in this matter is set for July 13, 2022, before United States District Judge Sarah S. Vance.
The U.S. Attorney’s Office would like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brandon S. Long; Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant U.S. Attorney Maria M. Carboni; and Assistant U.S. Attorney Edward J. Rivera.
7 MS-13 Members Charged with Double Murder Inside Federal Penitentiary in Beaumont, Texas Resulting in Nationwide Lockdown of Federal Prison SystemRead the Press Release
BEAUMONT, Texas – A federal grand jury in the Eastern District of Texas returned an indictment this week in Beaumont charging seven inmates at U.S. Penitentiary Beaumont, who are members of the violent transnational criminal organization La Mara Salvatrucha, also known as the MS-13, for their involvement in a deadly prison attack on rival gang members on Jan. 31, 2022. All seven defendants are in federal custody. The case has been assigned to U.S. District Judge Marcia Crone.
U.S. Attorney for the Eastern District of Texas Brit Featherston, along with FBI Houston SAC James Smith, Homeland Security Investigations Houston SAC Mark Dawson, and Joint Task Force Vulcan Director (JTFV) John J. Durham, announced today the charges in the 15-count indictment against the MS-13 members identified below. The charges in the Indictment relate to the planning and execution of a violent attack orchestrated by members of MS-13 against Mexican Mafia and Sureños associates that resulted in two deaths, two attempted murders, and a nationwide lockdown of all inmates in the Federal Bureau of Prisons (BOP) for almost a week.
“Deterring prison violence remains a priority for the Department,” said Eastern District of Texas U.S. Attorney Brit Featherston. “Any prisoner who causes physical injury to another, inmate or corrections officer, will be prosecuted to the fullest extent of the law.”
“Disrupting dangerous plots that can arise from gangs like MS-13 in the federal prison system, as alleged in today’s indictment, is a matter of utmost importance for the FBI and to me personally as a former supervisory special agent for the MS-13 National Gang Task Force Unit in the Criminal Investigative Division at Headquarters,” said FBI Houston SAC James Smith. “The FBI served as a force multiplier and the lead investigative agency for this case immediately following the murders. In support of this massive investigation, we completed over 100 interviews, conducted over 60 searches, reviewed hours of surveillance footage, and seized countless weapons and contraband. The FBI remains resolute in our commitment to continue working side by side with our law enforcement partners to defeat and deter gang violence anywhere it occurs.”
“Transnational violent gangs are a significant threat to our national security whether they are entrenched within our communities or incarcerated in our correctional facilities,” said Homeland Security Investigations (HSI) Houston Special Agent in Charge Mark Dawson. “This indictment demonstrates our commitment to disrupting and dismantling this threat.”
“Even while incarcerated, MS-13 members remain committed to the organization’s violent ideology and, as alleged in this indictment, continue to engage in extreme acts of murder and attempted murder,” stated Director Durham. “The Department of Justice and our law enforcement partners will not yield, and we will hold MS-13 members accountable for their crimes, whether in prisons or on the street.” Director Durham extended his sincere appreciation to all members of JTFV, especially the FBI, HSI and BOP’s National Gang Unit, who spearheaded this investigation.
As alleged in the indictment unsealed today:
MS-13 is a transnational criminal organization composed primarily of immigrants or descendants of immigrants from El Salvador, but also includes members from other countries such as Honduras, Guatemala, and Mexico. Although the gang originated in Los Angeles, California, it quickly spread and is now a national and international criminal organization with an estimated 10,000+ members regularly conducting gang activities in nearly all of the United States, including Texas, California, New York, and in El Salvador, Honduras, Guatemala, and Mexico.
The Mexican Mafia controls large portions of the Hispanic prison population in California and Texas and the federal prison system. MS-13 has had a symbiotic relationship with both the Mexican Mafia and the Sureños, which is a close association of Hispanic gangs that pay tribute to the Mexican Mafia while incarcerated in federal and state prisons in the United States. As alleged in the Indictment, however, that symbiotic relationship recently began to fall apart as MS-13’s leadership in El Salvador, the Ranfla Nacional, sought to exert more control and independence of its own members while incarcerated in prisons within the United States, including using MS-13 command and control structure to enforce their orders, including orders to commit murders, even while in prison.
On Jan. 31, 2022, at USP Beaumont, seven MS-13 members, converged in A-A Housing Unit and attacked multiple Sureños members and one Mexican Mafia associate. Defendant Rivas-Moreiera began the prison attack when he came up behind Guillermo Riojas and stabbed Riojas twice in the chest. Riojas fell immediately, and other MS-13 defendants stabbed and kicked Riojas while he lay motionless on the prison floor. The MS-13 defendants then chased, cornered, beat, and repeatedly stabbed Andrew Pineda, and other Sureños members. The prison attack lasted approximately three minutes.
Defendants Rivas-Moreiera, Alfaro-Granado, and Landaverde-Giron are all serving sentences of life imprisonment for their participation in MS-13 and committing murder in aid of racketeering in furtherance of MS-13. Defendant Ramires is also serving a sentence of 27 years’ imprisonment following his conviction for participating in MS-13 and committing a murder on behalf of the gang.
The Victims:
Riojas died as a result of the prison attack. He was inflicted with multiple stab wounds to his heart and lung. Likewise, Pineda died as a result of the prison attack. He suffered more than 45 distinct stab wounds to his body. Sureños member 1 was stabbed multiple times and taken to a hospital by emergency services as a result of the prison attack. Sureños member 2 was also stabbed numerous times. Both victims ultimately survived the attack by the MS-13 defendants.
This indictment is the product of coordination between the U.S. Attorney’s Office for the Eastern District of Texas (EDTX) and Joint Task Force Vulcan (JTFV), which was created in August 2019 as a whole-of-government approach to dismantle transnational criminal organizations, such as MS-13. Since its creation, JTFV has successfully increased coordination and collaboration with foreign law enforcement partners, including El Salvador, Mexico, Honduras and Guatemala; designating priority MS-13 programs, cliques and leaders, who have the most impact on the United States, for targeted prosecutions; and coordinating significant MS-13 indictments in U.S. Attorney’s Offices across the country, including the first use of national security charges against MS-13 leaders, such as the Ranfla Nacional, in El Salvador. JTFV has been comprised of members from U.S. Attorney’s Offices across the country, including EDTX; the Eastern District of New York; the Southern District of New York; the District of New Jersey; the Northern District of Ohio; the District of Utah; the Eastern District of Virginia; the District of Massachusetts; the District of Alaska; the Southern District of Florida; the Southern District of California; the District of Nevada; and the District of Columbia, as well as the Department of Justice’s National Security Division and the Criminal Division. In addition, all Department of Justice law enforcement agencies are involved in the effort, including the Federal Bureau of Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; and the Bureau of Prisons. In addition, Homeland Security Investigations also plays a critical role in JTFV.
The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, the defendants face a maximum sentence of life in prison, and the defendants are eligible for the death penalty.
This case is being prosecuted by Assistant U.S. Attorney Joe Batte from the U.S. Attorney’s Office for EDTX, Assistant U.S. Attorney Christopher A. Eason for the U.S. Attorney’s Office for EDTX and from JTFV, Assistant U.S. Attorney Jacob Warren for the U.S. Attorney’s Office for the Southern District of New York and from JTFV, and Assistant U.S. Attorney Stewart M. Young for the U.S. Attorney’s Office for the District of Utah and from JTFV. The charges in the indictment were investigated by the FBI and the BOP.
The Defendants:
- Juan Carlos Rivas-Moreiera, aka “Juan Carlos Moriera,” aka “Stocky”
Age: 41
Place of Birth: El Salvador
United States District Court of Prosecution: District of Maryland
- Dimas Alfaro-Granado, aka “Toro”
Age: 39
Place of Birth: El Salvador
United States District Court of Prosecution: Northern District of Georgia
- Raul Landaverde-Giron, aka “Decente,” aka “Humilde”
Age: 32
Place of Birth: El Salvador
United States District Court of Prosecution: District of Maryland
- Larry Navarete, aka “El Socio”
Age: 41
Place of Birth: Nicaragua
United States District Court of Prosecution: Western District of Arkansas
- Jorge Parada, aka “Rama”
Age: 42
Place of Birth: El Salvador
United States District Court of Prosecution: Eastern District of Virginia
- Hector Ramires, aka “Cuervo”
Age: 28
Place of Birth: Honduras
United States District Court of Prosecution: District of Massachusetts
- Sergio Sibrian, aka “Anytime”
Age: 29
Place of Birth: El Salvador
United States District Court of Prosecution: Central District of California
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Wednesday 6 April 2022
York Woman Pleads Guilty to Wire Fraud Conspiracy Related to Pandemic Unemployment Assistance BenefitsRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Tami Mateljan, age 46, of York, Pennsylvania, entered a plea of guilty before United States District Court Judge Sylvia H. Rambo for conspiring to commit wire fraud.
According to United States Attorney John C. Gurganus, between October 2020 and December 2020, conspirators submitted fraudulent applications for pandemic unemployment assistance (PUA) to Colorado and Ohio, using the names and personal information of other individuals without authorization. The states transferred the fraudulently obtained PUA benefits to accounts owned by Mateljan. She then used some of the money for her own benefit and transferred the remaining money to conspirators in other countries, including Nigeria.
The case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Carlo D. Marchioli 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.
If convicted, the maximum penalty under federal law for this offense is 20 years of 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.
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Woman Pleads Guilty for $43.8 Million COVID-19 Relief Fraud SchemeRead the Press Release
An Oklahoma woman pleaded guilty today in the Western District of New York for a scheme to defraud the Paycheck Protection Program (PPP) of over $43.8 million in COVID-19 relief loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Amanda J. Gloria, 45, of Altus, admitted that she conspired to submit at least 153 fraudulent PPP applications seeking a total of approximately $43.8 million on behalf of at least 111 entities between approximately May 2020 and June 2021. Gloria admitted that she falsified or aided and assisted with falsifying various information on these loan applications, including the number of employees, payroll expenses and documentation, and federal tax filings. Gloria then submitted or aided and assisted with the submission of the fraudulent PPP applications to financial institutions. In total, the recipient entities unlawfully obtained approximately $32.5 million in PPP funds. From those fraudulently obtained funds, Gloria personally received at least approximately $1.7 million.
Gloria also admitted that she conspired with Adam D. Arena to submit a fraudulent PPP loan application seeking approximately $954,000 for ADA Auto Group LLC, a previously inactive Florida-based business owned and controlled by Arena. After fraudulently obtaining the PPP loan, Gloria directed Arena to launder the proceeds, including by transferring nearly $25,000 to a bank account held in the name of WildWest Trucking LLC, an Oklahoma-based business owned and controlled by Gloria. Gloria also admitted that she submitted and fraudulently obtained a separate PPP loan for WildWest Trucking LLC for approximately $421,000. Arena pleaded guilty in November 2021 to one count of conspiracy to commit bank fraud and one count of engaging in a monetary transaction with criminally derived proceeds in a related case.
Gloria is scheduled to be sentenced on July 20 and faces up to 30 years in prison for conspiracy to commit bank fraud and up to 10 years in prison for money laundering. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Trini E. Ross for the Western District of New York; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge Stephen Belongia of the FBI’s Buffalo Field Office; and Special Agent in Charge Thomas Fattorusso of IRS Criminal Investigation (IRS‑CI) made the announcement.
The FBI and IRS-CI are investigating the case.
Assistant Chief Cory E. Jacobs and Trial Attorney Jennifer Bilinkas of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Laura A. Higgins for the Western District of New York are prosecuting the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
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.
Woman Pleads Guilty for $43.8 Million COVID-19 Relief Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY – An Oklahoma woman pleaded guilty today in the Western District of New York for a scheme to defraud the Paycheck Protection Program (PPP) of over $43.8 million in COVID-19 relief loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Amanda J. Gloria, 45, of Altus, admitted that she conspired to submit at least 153 fraudulent PPP applications seeking a total of approximately $43.8 million on behalf of at least 111 entities between approximately May 2020 and June 2021. Gloria admitted that she falsified or aided and assisted with falsifying various information on these loan applications, including the number of employees, payroll expenses and documentation, and federal tax filings. Gloria then submitted or aided and assisted with the submission of the fraudulent PPP applications to financial institutions. In total, the recipient entities unlawfully obtained approximately $32.5 million in PPP funds. From those fraudulently obtained funds, Gloria personally received at least approximately $1.7 million.
Gloria also admitted that she conspired with Adam D. Arena to submit a fraudulent PPP loan application seeking approximately $954,000 for ADA Auto Group LLC, a previously inactive Florida-based business owned and controlled by Arena. After fraudulently obtaining the PPP loan, Gloria directed Arena to launder the proceeds, including by transferring nearly $25,000 to a bank account held in the name of WildWest Trucking LLC, an Oklahoma-based business owned and controlled by Gloria. Gloria also admitted that she submitted and fraudulently obtained a separate PPP loan for WildWest Trucking LLC for approximately $421,000. Arena pleaded guilty in November 2021 to one count of conspiracy to commit bank fraud and one count of engaging in a monetary transaction with criminally derived proceeds in a related case.
Gloria is scheduled to be sentenced on July 20 and faces up to 30 years in prison for conspiracy to commit bank fraud and up to 10 years in prison for money laundering. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Trini E. Ross for the Western District of New York; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge Stephen Belongia of the FBI’s Buffalo Field Office; and Special Agent in Charge Thomas Fattorusso of IRS Criminal Investigation (IRS CI) made the announcement.
The FBI and IRS-CI are investigating the case.
Assistant Chief Cory E. Jacobs and Trial Attorney Jennifer Bilinkas of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Laura A. Higgins for the Western District of New York are prosecuting the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
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.
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Wilmington Man Sentenced to 66 Months in Federal Prison for Illegal Possession of AmmunitionRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Donta Thomas, of Wilmington, was sentenced today to 66 months in federal prison by U.S. District Judge Richard G. Andrews for illegally possessing ammunition.
Mr. Thomas, 23, was arrested after he fled from officers during a traffic stop. A foot chase ensued, in which Mr. Thomas was observed tossing a privately made firearm onto the ground. Officers recovered the firearm and discovered it was loaded with one round of ammunition in the chamber and 15 in the magazine. Mr. Thomas was not legally permitted to possess a firearm or ammunition because of his prior felony convictions, which include armed robbery and armed carjacking. Mr. Thomas was taken into custody and admitted to possessing the loaded gun. He has been in custody since his arrest on January 23, 2020.
U.S. Attorney Weiss stated, “Our community is fighting the scourge of gun crime, and illegally possessed weapons are a key part of the problem. That problem is exacerbated when those weapons are privately made firearms, also known as “ghost guns.” Unfortunately, the illegal use of these ghost guns is becoming more prevalent in Delaware. Such firearms lack a serial number, making them nearly impossible for law enforcement to trace. I want to thank the Wilmington Police Department and ATF for their work in ensuring that another illegally possessed weapon has been removed from the streets.”
“Any firearm in the hands of someone who is prohibited from having them is a safety concern, but that concern and risk to the public increases exponentially when it is someone with multiple previous violent, armed offenses,” said ATF Special Agent in Charge Toni M. Crosby. “ATF is committed to working alongside our state and local partners, as well as prosecutors, to ensure that cases like this are investigated and those with violent intentions are removed from our communities.”
The case was investigated by the Wilmington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Former Assistant U.S. Attorney Maureen McCartney and Assistant U.S. Attorney Briana Knox prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER.
Wheeling man sentenced for his role in drug conspiracyRead the Press Release
WHEELING, WEST VIRGINIA – Carlos Leeper, of Wheeling, West Virginia, was sentenced today to 96 months of incarceration for his role in a drug conspiracy, United States Attorney William Ihlenfeld announced.
Leeper, also known as “Los,” 58, pleaded guilty in March 2021 to one count of “Maintaining Drug-Involved Premises within 1000 Feet of a Protected Location.” Leeper admitted to owning a house on South York Street on Wheeling Island for the purpose of storing and selling heroin and cocaine base, also known as “crack.” The house is within 1,000 feet of Jensen Playground. The crime occurred from May 2019 to August 2020.
Assistant U.S. Attorneys Shawn M. Adkins and Clayton J. Reid prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The U.S. Marshal Service, Columbus Police Department Gang Crimes Unit, the Martins Ferry Police Department, and the Bellaire Police Department also assisted.
U.S. District Judge John Preston Bailey presided.
Find the original press release here: https://www.justice.gov/usao-ndwv/pr/26-charged-drug-conspiracy-involving-heroin-fentanyl-crack-cocaine-and-meth-wheeling
Virginia Man Pleads Guilty to Federal Charge for Dealing Firearms Without a LicenseRead the Press Release
Greenbelt, Maryland – Steven Darnell Richers, age 25, of Manassas, Virginia, pleaded guilty yesterday to conspiracy to engage in the business of dealing in firearms and ammunition without a license.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Charles County Sheriff Troy Berry.
According to his guilty plea, from at least January through March of 2019, Richers conspired with another federal defendant, Christopher Heard, to sell firearms and ammunition. For example, on January 22, 2019, Richers exchanged text messages with Heard about firearms trafficking activity and meeting for a transaction. In their conversation, Heard told Richers that he would bring Richers, who was living in Virginia at the time, “endless clients.” Heard also told Richers that Heard was coming from Maryland to meet with Richers in Virginia.
In furtherance of the conspiracy, on or about January 25, 2019, Heard sold an unloaded 9mm semi-automatic pistol and fourteen rounds of 9mm ammunition to a Confidential Source 1 (“CS 1”) in Maryland for $700. On January 26, 2019, Richers sent a text message to Heard that stated in part “I knew you were finna sell that hk lol.”
On February 5, 2019, CS 1 introduced Heard to another individual (“CS 2”). During that meeting in Maryland, Heard informed CS 2 that he could get CS 2 a firearm and displayed to CS 2 a .22 long rifle caliber firearm. Later that day, CS 2 had a phone call with Heard. During the call, Heard stated that he could get whatever firearms CS2 needed and that he had someone in Virginia who could get whatever firearm he wanted, including a brand new AR short barrel. Heard stated, “That’s where I get all my joints from Virginia…everything clean and fresh out the box.”
On March 25, 2019, Richers exchanged text messages with Heard about firearms trafficking activity. Richers sent an image of an AR-type rifle that Richers had in his residence at the time. Heard asked, “how much,” and Richers said that the price was $560.
On October 9, 2019, law enforcement officers executed a federal search warrant at Richers’s residence and seized, among other things: approximately 1,727 rounds of assorted ammunition; a 12 Gauge shotgun; a 40-caliber pistol; and .380v caliber pistol. The seized firearms and ammunition were involved in or used in Richers’s business of dealing in firearms without a license.
Richers faces a maximum sentence of five years in prison for conspiracy to engage in the sale of firearms and ammunition without a license. U.S. District Judge George J. Hazel has scheduled sentencing for August 8, 2022 at 2:00 p.m.
Christopher Maurice Heard, age 32, of Waldorf, Maryland previously pleaded guilty to being a felon in possession of firearms and ammunition and is scheduled to be sentenced on April 28, 2022.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. 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.
United States Attorney Erek L. Barron commended the ATF and the Charles County Sheriff’s Office for their work in the investigation and thanked the Mr. Barron thanked Assistant U.S. Attorney Dwight J. Draughon, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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U.S. Citizen Sentenced to 20 Years’ Imprisonment for Attempting to Provide Material Support to ISISRead the Press Release
Earlier today in federal court in Brooklyn, Bernard Raymond Augustine was sentenced by United States District Judge Sterling Johnson, Jr. to 20 years’ imprisonment for attempting to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham (“ISIS” or “the Islamic State”). Augustine, a U.S. citizen and California resident, was convicted by a federal jury after a one-week trial in August 2021.
Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Today’s sentence ensures this dangerous defendant will not join ISIS as he tried to do in 2016, and testified at trial that he would do again if the jury acquitted him. The trial evidence demonstrated that Augustine is a committed supporter of ISIS, that he glorified beheadings and other acts of terror, and that he intended to support the terrorist organization by encouraging more English speakers to join its ranks,” stated United States Attorney Peace. “Detecting and thwarting terrorism and keeping the people of this country safe will always be priorities of this Office.” Mr. Peace praised the work of the FBI’s New York Joint Terrorism Task Force on the case.
“The sentence Mr. Augustine received today insures he will never achieve his stated ambition of joining ISIS and supporting the terrorist group's pursuit of its reprehensible goals. Protecting our nation from terrorism in all its forms remains the FBI's top priority, and today's outcome is the latest example of our commitment to pursuing this mission both domestically and globally,” stated FBI Assistant Director-in-Charge Driscoll.
“Protecting our nation’s security is paramount, and this case illustrates our continued commitment to fight terrorism in every form, both here and abroad,” stated NYPD Commissioner Sewell. “Any person who puts American lives at risk will be held accountable to the fullest extent of the law, and I want to thank the U.S. Attorney’s Office for the Eastern District of New York, the Justice Department’s National Security Division, the Federal Bureau of Investigation, the members of the FBI/NYPD Joint Terrorism Task Force, and everyone else who prevented this threat and kept Americans safe.”
The evidence at trial established that in February 2016, Augustine traveled from San Francisco, California to Northern Africa, with the goal of joining ISIS, a designated foreign terrorist organization. After arriving in Tunisia, Augustine was detained by local authorities before he could make it to ISIS-controlled territory across the border in Libya. He was returned to the United States in 2018 and prosecuted in the Eastern District of New York.
In the months leading up to his travel, Augustine watched ISIS propaganda, including videos glorifying ISIS’s violence, such as “The Flames of War.” He conducted internet searches for, among other things, “how to safely join ISIS,” and reviewed websites related to ISIS recruitment practices, including one titled “How does a Westerner join ISIS? Is there a recruitment or application process?” Augustine also posted numerous statements in support of ISIS and violent extremism, such as “the Islamic State is the true Islam,” “Muslims who leave the west . . . answer the call for the struggle, and march until they are victorious or martyred are the true believers,” and the ISIS caliphate “can’t be established and maintained except through the blood of the mujahideen who practice the true belief.”
The defendant represented himself at trial and testified that he maintained his interest in supporting ISIS. Augustine testified that ISIS videos of members executing Syrian captives and beheadings were “good” and “really cool.” He admitted that one way he intended to provide material support to ISIS was to participate in ISIS propaganda videos, by providing the necessary English-language voice over. When asked to confirm his testimony that he “would do it all again and would go back today,” Augustine responded, “No, tomorrow, when they let me off.”
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Craig R. Heeren, Josh Hafetz, and Jonathan E. Algor are in charge of the prosecution, with assistance provided by Trial Attorney Justin Sher of the Counterterrorism Section of the Department of Justice.
The Defendant:
BERNARD RAYMOND AUGUSTINE
Age: 25
Keyes, CaliforniaE.D.N.Y. Docket No. 18-CR-383 (SJ)
Two Louisville Men Indicted by Federal Grand Jury for Illegal Possession of Firearms and AmmunitionRead the Press Release
LOUISVILLE, KY – A federal grand jury in Louisville, Kentucky, returned indictments in two separate cases on April 5, 2022, charging two Louisville men with illegal possession of firearms and ammunition.
According to court documents, Rajae Tinker, 19, of Louisville was indicted for possession of a firearm by a convicted felon on September 11, 2021, and on January 20, 2022.
Isaiah Stoner, 23, of Louisville was indicted for possession of ammunition by a convicted felon and for possession of fentanyl with intent to distribute on March 21, 2022.
Tinker will be scheduled for an initial court appearance in the U.S. District Court for the Western District of Kentucky. Stoner is currently scheduled for an initial court appearance on April 14, 2022, before U.S. Magistrate Judge Regina S. Edwards of the U.S. District Court for the Western District of Kentucky. If convicted of the firearm and ammunition offenses, both face a maximum penalty of 10 years in prison. If Stoner is convicted of the additional fentanyl related charge, he faces a maximum penalty of 40 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge R. Shawn Morrow of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement.
The ATF and the Louisville Metro Police Department are investigating the cases.
Assistant U.S. Attorney Joshua Porter is prosecuting the Tinker case and Assistant U.S. Attorney Alicia Gomez is prosecuting the Stoner case.
Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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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Texas Man Sentenced in Cryptocurrency Money Laundering ConspiracyRead the Press Release
TYLER, Texas – An Irving man has been sentenced to federal prison for his role in a cryptocurrency money laundering conspiracy in the Eastern District of Texas, announced U.S. Attorney Brit Featherston.
Deependra Bhusal, 46, pleaded guilty on April 30, 2021, to conspiracy to commit money laundering and was sentenced to 46 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.
According to information presented in court, Bhusal was involved in a multi-year money laundering conspiracy involving the laundering of criminal proceeds derived from various scams. Bhusal’s role in the money laundering conspiracy was to open bank accounts and mailboxes that were used to receive and transact victim funds, to receive the victim funds, to engage in subsequent financial transactions, routinely structured in amounts under $10,000 in an effort to evade reporting requirements and to conceal the nature and source of the criminal proceeds, and to move the criminal proceeds to foreign co-conspirators. Bhusal and his co-conspirators routinely exchanged the criminal proceeds for cryptocurrency and directed the cryptocurrency to wallets under the control of their foreign co-conspirators. In August 2020, Bhusal and his co-conspirators traveled to Longview, Texas, where they attempted to exchange approximately $450,000 in criminal proceeds for Bitcoin.
In the course of the operation, Bhusal was personally responsible for laundering $1,437,358.99 in criminal proceeds.
On March 10, 2022, co-conspirators Lois Boyd, 75, of Amelia Court House, Virginia, and Manik Mehtani, 33, of McLean, Virginia, were named in an indictment returned by a federal grand jury, charging them with a violation of the Travel Act, money laundering, and money laundering conspiracy.
If convicted, Boyd and Mehtani face up to 20 years in federal prison. A grand jury indictment is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being investigated by the U.S. Secret Service and the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and L. Frank Coan, Jr.
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Texas Man Chartered Private Plane to Transport Cocaine from Houston to PittsburghRead the Press Release
PITTSBURGH, PA – A resident of Houston, Texas, pleaded guilty in federal court to violating federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Cindy Chung announced today.
Adrian Alvarez, age 28, pleaded guilty to one count of conspiracy and one count of possession with intent to distribute five kilograms or more of cocaine before United States District
Judge Christy Criswell Wiegand. Alvarez was one of 47 defendants charged in six related indictments as part of the Return to Sender investigation.
In connection with the guilty plea, the court was advised that on October 22, 2020, Alvarez and three other individuals chartered a private plane and transported six kilograms of cocaine from Houston to Pittsburgh International Airport. Investigators obtained a search warrant for the plane and seized the cocaine from two pieces of luggage.
Judge Wiegand scheduled sentencing for August 23, 2022, at 10:00 a.m. The law provides for a maximum total sentence of not less than 10 years to a maximum of life in prison, a fine not to exceed $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued the defendant on bond.
Assistant United States Attorneys Jonathan D. Lusty and Michael R. Ball are prosecuting this case on behalf of the government.
The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department.
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.
Tax Preparer Pleads Guilty to Aiding in the Preparation of False Tax ReturnsRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Eugene Fanfan has pleaded guilty to one count of aiding in the preparation of filing a false tax return. He faces a maximum penalty of three years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Fanfan helped to prepare numerous false and fraudulent income tax returns on behalf of clients in 2016. Those tax returns contained false information about clients’ business income and loss, as well as false claims relating to the American Opportunity Credit. As a result of those false entries, Fanfan’s clients were able to claim and receive substantial refunds from the IRS which his clients were not lawfully entitled to receive. Those refunds exceeded $100,000.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Tiffany E. Fields.
Statement on Attorney General Merrick B. GarlandRead the Press Release
Attorney General Garland this afternoon tested positive for COVID-19 through antigen tests. He asked to be tested after learning that he may have been exposed to the virus. At the time, he is not experiencing symptoms. The Attorney General is fully vaccinated and boosted.
In accordance with CDC guidelines, the Attorney General will isolate at home for at least five days. He will work virtually during this period and will return to the office following a negative test for the virus. The department will conduct contact tracing in accordance with CDC protocols.
Statement of U.S. Attorney Damian Williams on the Verdict in U.S. V. Lawrence RayRead the Press Release
“Twelve years ago, Larry Ray moved into his daughter’s dorm room at Sarah Lawrence College. And when he got there, he met a group of friends who had their whole lives ahead of them. For the next decade, he used violence, threats, and psychological abuse to try to control and destroy their lives. He exploited them. He terrorized them. He tortured them. Let me be very clear. Larry Ray is a predator. An evil man who did evil things. Today’s verdict finally brings him to justice.
This verdict would not have been possible without the victims who testified in court. We are in awe of their bravery in the face of incredible trauma. I also want to thank the career prosecutors in my Office, the Southern District of New York, and our law enforcement partners, who stood with those victims and worked tirelessly to ensure that justice was done. Thank you.”
St. Cloud Man Sentenced to Prison for Food Stamp, Covid Assistance FraudRead the Press Release
ST. PAUL, Minn. – A St. Cloud man has been sentenced to 30 months in prison followed by three years of supervised release and ordered to pay $4,187,999.72, in restitution for wire fraud, announced U.S. Attorney Andrew M. Luger.
According to court documents, from 2009 through 2021, Hared Nur Jibril, 60, owned and operated Hormud Meat and Grocery Market located in St. Cloud, Minnesota. In 2009, Jibril completed the application and agreement and signed the required certifications for the Hormud Market to participate in the Supplemental Nutrition Assistance Program (SNAP). At that time Hormud Market was also authorized as a Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) vendor. The SNAP and WIC programs are run by the U.S. Department of Agriculture (USDA) in collaboration with the states. Both programs required Jibril to periodically recertify compliance. From 2018 through 2021, Jibril and other employees of Hormud Market devised and participated in a scheme to defraud the USDA by exchanging SNAP and WIC benefits for cash and ineligible items including, phone minutes, personal care products, and prepared food from Jibril’s adjoining restaurant. The scheme resulted in a loss amount of more than $4.1 million to the SNAP and WIC programs.
According to court documents, during the spring and summer of 2020, Minnesota provided unemployment insurance benefits to assist individuals who had lost work due to the COVID-19 pandemic. Despite his continued self-employment at the Hormud Market, Jibril applied to the Minnesota Department of Employment and Economic Development (DEED) for unemployment benefits, falsely claiming that he had been laid off from work due to COVID-19. DEED granted his application for benefits, which were ultimately funded by the United States Department of the Treasury as part of pandemic relief efforts. In total, Jabril received more than $32,724 in unemployment assistance.
Jibril was sentenced yesterday by U.S. District Judge Eric C. Tostrud. On December 1, 2021, Jabril pleaded guilty to one count of conspiracy to commit wire fraud and one count of wire fraud.
This case was the result of an investigation conducted by the USDA-OIG, the FBI, the U.S. Department of Labor-OIG, and the Minnesota Department of Health.
This case was prosecuted by Assistant U.S. Attorney Sarah E. Huddleston.
Sex offender sent to prison for two child pornography convictionsRead the Press Release
HOUSTON – A 40-year-old previous Houston resident has been ordered to federal prison following his admission that he received and possessed child pornography, announced U.S. Attorney Jennifer B. Lowery.
Joshua Tannery pleaded guilty Nov. 16, 2020.
Today, U.S. District Judge George C. Hanks Jr. sentenced him to 97 months in federal prison. At the hearing, the court also heard additional information including a victim impact statement detailing the sexual abuse Tannery committed on a child. The court noted he had a duty to the victims whose voices are not always heard. He hoped the prison term discouraged others from following in his footsteps, gave Tannery the opportunity to change and showed there were consequences to Tannery’s conduct. He will also serve five years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Tannery will also be ordered to register as a sex offender.
In September 2019, law enforcement initiated an investigation of child pornography sharing which led them to Tannery. They executed a search warrant and seized his electronic devices. Forensic analysis resulted in the discovery of child pornography, including images of prepubescent children, some as young as 10 years of age.
Following Tannery’s arrest, a sexual assault victim came forward reporting that Tannery had abused her years ago.
Tannery was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
Assistant U.S. Attorney Zahra Jivani Fenelon is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Scranton Man Charged with Firearm OffenseRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Victorious Minter, age 36, of Scranton, Pennsylvania, was indicted yesterday by a federal grand jury for unlawfully possessing a firearm as a convicted felon.
According to United States Attorney John C. Gurganus, the indictment alleges that on January 5, 2022, Minter possessed a loaded Glock 22 .40 caliber semi-automatic pistol in Lackawanna County, Pennsylvania, after having previously been convicted of a crime punishable by more than one year in prison.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Scranton Police Department, and the Lackawanna County District Attorney’s Office. Special Assistant United States Attorney Brian Gallagher and Assistant United States Attorney James Buchanan are prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The maximum penalty under federal law for these offenses is ten years’ imprisonment and a fine of $250,000. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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San Fernando Valley Man Sentenced to 18 Months in Prison for Starting Fire in Santa Monica Restaurant During May 2020 Civil UnrestRead the Press Release
LOS ANGELES – A West Hills man was sentenced today to 18 months in federal prison for starting a fire that caused substantial damage to a Santa Monica restaurant during the civil disturbances that erupted during the spring of 2020.
Micah Tillmon, 20, was sentenced by United States District Judge Michael W. Fitzgerald. A restitution hearing will be scheduled for a later date.
Tillmon pleaded guilty in September 2021 to one count of possession of an unregistered destructive device.
On May 31, 2020, Tillmon entered Sake House by Hikari, a Japanese restaurant located in downtown Santa Monica, without authorization and while the business was closed because of the civil unrest occurring in the city at that time. While inside the restaurant, Tillmon possessed and used an incendiary device to ignite a fire that rapidly grew, enveloped the entire restaurant space and spread to other areas of the building adjacent to the restaurant.
According to court documents, security video from the restaurant shows Tillmon removing “a red tube-shaped object from his jacket, which he placed behind the reception desk area of the restaurant before walking away. Within seconds of that action, smoke and fire appeared from the area.”
The Santa Monica Fire Department (SMFD) responded to the fire and extinguished the flames using several fire trucks and numerous personnel. Due to safety concerns that accompanied the city’s civil unrest, SMFD prematurely abandoned the scene. As a result, SMFD needed to return to the scene several times throughout the night to extinguish additional flare-ups. The restaurant has since permanently closed.
Tillmon was identified by detectives with the Santa Monica Police Department, who reviewed numerous security videos and social media posts. Tillmon was also linked to the fire when investigators uncovered a video showing his white Ford Explorer parking next to the Sake House four minutes before the fire started and then reversing across the street soon after the fire started, according to court documents.
Tillmon possessed an incendiary device that had not been registered with the National Firearms Registration and Transfer Record, the central federal registry for all items regulated under the National Firearms Act.
“[Tillmon’s] actions on May 31, 2020, were only possible because of a complete breakdown in social order,” prosecutors wrote in a sentencing memorandum. “Riots like the ones that convulsed this district in the summer of 2020 are a stark reminder of the thin line that separates state control and anarchy.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Santa Monica Police Department investigated this matter.
Assistant United States Attorney Shawn T. Andrews of the Violent and Organized Crime Section prosecuted this case.
San Antonio Man Sentenced for Preparing False Tax ReturnsRead the Press Release
SAN ANTONIO – A San Antonio man was sentenced today to five years of home confinement and ordered to pay $273,372 in restitution for preparing false tax returns.
According to court documents, Richard Medina Sr., 68, operated an unnamed and unregistered tax return preparation business out of his residence from 2013 to 2016. Medina prepared false federal income tax returns for his clients by claiming false credits, Individual Retirement Accounts (IRAs), and itemized deductions. Medina fraudulently maximized tax credits to generate undue tax refunds, causing a loss of over $273,000 Medina was also required to notify the bankruptcy trustee of all forms of income after filing for bankruptcy in 2013 but lied under oath about income from his tax preparation business.
On June 23, 2020, Medina pleaded guilty to one count of aiding and assisting in the preparation of a false tax return and one count of false statement in bankruptcy.
“Unscrupulous tax return preparers such as Medina do millions and millions of dollars in harm both to the U.S. Treasury and to their taxpayer clients, who are ultimately responsible for the accuracy of their returns,” said U.S. Attorney Ashley C. Hoff. “Medina’s use of false information extended both to his own personal returns and to his omission of his income from filings he made when he pursued bankruptcy protection.”
The Internal Revenue Service – Criminal Investigation (IRS-CI) investigated the case.
Assistant U.S. Attorney William R. Harris prosecuted the case.
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Russian Oligarch Charged with Violating U.S. SanctionsRead the Press Release
A Russian national is charged with violating U.S. sanctions arising from the 2014 Russian undermining of democratic processes and institutions in Ukraine.
According to the indictment, which was unsealed today in the Southern District of New York, Konstantin Malofeyev, 47, of Russia, is charged with conspiracy to violate U.S. sanctions and violations of U.S. sanctions in connection with his hiring of an American citizen, Jack Hanick, to work for him in operating television networks in Russia and Greece and attempting to acquire a television network in Bulgaria. As alleged, Malofeyev also conspired with Hanick and others to illegally transfer a $10 million investment that Malofeyev made in a U.S. bank to a business associate in Greece, in violation of the sanctions blocking Malofeyev’s assets from being transferred. Along with the indictment, the United States issued a seizure warrant for Malofeyev’s U.S. investment. Malofeyev remains at large and is believed to be in Russia.
“The Justice Department will work relentlessly to counter Russian aggression, including by enforcing U.S. sanctions law,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “As alleged in the indictment, Konstantin Malofeyev is a Russian oligarch who has been sanctioned since 2014 for threatening Ukraine and providing financial support to the Donetsk separatist region. Malofeyev knowingly violated U.S. sanctions by paying for services of a U.S. person and by seeking to transfer money that had been invested in the United States.”
“Konstantin Malofeyev is closely tied to Russian aggression in Ukraine, having been determined by OFAC to have been one of the main sources of financing for the promotion of Russia-aligned separatist groups operating in the sovereign nation of Ukraine,” said U.S. Attorney Damian Williams for the Southern District of New York. “The United States sanctions on Malofeyev prohibit him from paying or receiving services from United States citizens, or from conducting transactions with his property in the United States. But as alleged, he systematically flouted those restrictions for years after being sanctioned. The indictment unsealed today shows this office’s commitment to the enforcement of laws intended to hamstring those who would use their wealth to undermine fundamental democratic processes. This office will continue to be a leader in the Justice Department’s work to hold accountable actors who would support flagrant and unjustified acts of war.”
“The allegations in this case go back many years showing just how much effort the FBI and its partners put into investigating these crimes,” said Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division. “According to the indictment, the defendant used shell companies and other means to hide his deceptions and evade important sanctions meant to ensure the territorial integrity of Ukraine. While this case is about violating sanctions, it’s also about bringing people to justice who think they can violate our laws with impunity.”
“Kremlin-linked Russian oligarch Konstantin Malofeyev played a leading role in supporting Russia’s 2014 invasion of eastern Ukraine, continues to run a pro-Putin propaganda network, and recently described Russia’s 2022 military invasion of Ukraine as a ‘holy war,’” said Assistant Director Michael J. Driscoll of the FBI’s New York Field Office. “The FBI works tirelessly to protect our national interests, and we will continue to use all the resources at our disposal to aggressively counter Russia’s malign activity around the world.”
According to court documents, in 2014, the President issued Executive Order 13660, which declared a national emergency with respect to the situation in Ukraine. To address this national emergency, the President blocked all property and interest in property that came within the United States or the possession or control of any U.S. person, of individuals determined by the Secretary of the Treasury to be responsible for or complicit in actions or policies that threatened the peace, security, stability, sovereignty or territorial integrity of Ukraine, or who materially assist, sponsor or provide financial, material or technological support for, or goods and services to, individuals or entities engaging in such activities.
Executive Order 13660, along with certain regulations issued pursuant to it (the Ukraine-Related Sanctions Regulations) prohibits, among other things, making or receiving any funds, goods or services by, to, from or for the benefit of any person whose property and interests in property are blocked.
On Dec. 19, 2014, the Department of Treasury’s Office of Foreign Assets Control (OFAC) designated Konstantin Malofeyev as a Specially Designated National (SDN) pursuant to Executive Order 13660. OFAC’s designation of Malofeyev explained that he was one of the main sources of financing for Russians promoting separatism in Crimea, and has materially assisted, sponsored, and provided financial, material, or technological support for, or goods and services to or in support of the so-called Donetsk People’s Republic, a separatist organization in the Ukrainian region of Donetsk.
As alleged in the indictment, Malofeyev hired a U.S. citizen named Jack Hanick in 2013 to work on a new Russian cable television news network (the Russian TV Network) that Malofeyev was creating. Malofeyev negotiated directly with Hanick regarding Hanick’s salary, payment for Hanick’s housing in Moscow, and Hanick’s Russian work visa, and Malofeyev paid Hanick through two separate Russian entities through the end of 2018.
After OFAC designated Malofeyev as a SDN in December 2014, Malofeyev continued to employ Hanick on the Russian TV Network, in violation of the Ukraine-Related Sanctions Regulations. Malofeyev also dispatched Hanick to work on a project to establish and run a Greek television network and on efforts to acquire a Bulgarian television network. At Malofeyev’s direction, Hanick traveled to Greece and to Bulgaria on multiple occasions in 2015 and 2016 to work on these initiatives and reported directly back to Malofeyev on his work. For instance, in November 2015, Hanick wrote to Malofeyev that the Greek television network would be an “opportunity to detail Russia’s point of view on Greek TV.” In connection with Malofeyev’s efforts to acquire the Bulgarian television network, Malofeyev instructed Hanick to take steps to conceal Malofeyev’s role in the acquisition by conducting the negotiations through a Greek associate of Malofeyev (the Greek Business Associate), so that it would appear the buyer was a Greek national rather than Malofeyev.
Malofeyev also employed Hanick to assist Malofeyev in transferring a $10 million investment in a Texas-based bank holding company (the Texas Bank) to the Greek Business Associate in violation of the Ukraine-Related Sanctions Regulations. In 2014, Malofeyev used a shell company to make the investment, and beginning in or about March 2015, Malofeyev began making plans to transfer ownership of the shell company to the Greek Business Associate as a means to transfer the investment in the Texas Bank. In or about May 2015, Malofeyev’s attorney drafted a Sale and Purchase Agreement that purported to transfer the shell company to the Greek Business Associate in exchange for one U.S. dollar. In June 2015 Malofeyev had Hanick physically transport a copy of Malofeyev’s certificate of shares in the Texas Bank from Moscow to Athens to be given to the Greek Business Associate. Malofeyev signed the Sale and Purchase Agreement in June 2015, but the agreement was fraudulently backdated to July 2014 to make it appear that the transfer had taken place prior to the imposition of U.S. sanctions. Malofeyev’s attorney then falsely represented to the Texas Bank that the transfer had taken place in July 2014, even though Malofeyev and his attorney well knew that the transfer of the shell company was executed in June 2015.
Along with the unsealed indictment, a seizure warrant was issued in the Southern District of New York for Malofeyev’s Texas Bank investment, which had been converted by the Texas Bank in 2016 to cash held in a blocked U.S. bank account. The United States recovered those funds pursuant to the warrant and will seek forfeiture of those funds as property that constitutes or is derived from proceeds traceable to the commission of the offenses alleged in the indictment.
Each of the two sanctions charges in the indictment carry a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case, with valuable assistance provided by the Justice Department’s National Security Division and Office of International Affairs.
Assistant U.S. Attorneys Thane Rehn, Jessica Greenwood, and Vladislav Vainberg for the Southern District of New York are prosecuting the case, with valuable assistance provided by Trial Attorney Nathan Swinton of the National Security Division’s Counterintelligence and Export Control Section.
Russian Oligarch Charged with Violating United States SanctionsRead 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 Office of the Federal Bureau of Investigation, announced today the unsealing of a criminal indictment charging a violation of United States sanctions arising from the 2014 Russian undermining of democratic processes and institutions in Ukraine. KONSTANTIN MALOFEYEV is charged with conspiracy to violate United States sanctions and violations of United States sanctions in connection with his hiring of an American citizen, Jack Hanick, to work for him in operating television networks in Russia and Greece and attempting to acquire a television network in Bulgaria. MALOFEYEV also conspired with Hanick and others to illegally transfer a $10 million investment that MALOFEYEV had made in a United States bank to a business associate in Greece, in violation of the sanctions blocking MALOFEYEV’s assets from being transferred. Along with the Indictment, the United States Attorney announced the seizure of MALOFEYEV’s United States investment.
U.S. Attorney Damian Williams said: “Konstantin Malofeyev is closely tied to Russian aggression in Ukraine, having been determined by OFAC to have been one of the main sources of financing for the promotion of Russia-aligned separatist groups operating in the sovereign nation of Ukraine. The United States sanctions on Malofeyev prohibit him from paying or receiving services from United States citizens, or from conducting transactions with his property in the United States. But as alleged, he systematically flouted those restrictions for years after being sanctioned. The Indictment unsealed today shows this Office’s commitment to the enforcement of laws intended to hamstring those who would use their wealth to undermine fundamental democratic processes. This Office will continue to be a leader in the Justice Department’s work to hold accountable actors who would support flagrant and unjustified acts of war.”
FBI Assistant Director Michael J. Driscoll said: “Kremlin-linked Russian oligarch Konstantin Malofeyev played a leading role in supporting Russia’s 2014 invasion of eastern Ukraine, continues to run a pro-Putin propaganda network, and recently described Russia’s 2022 military invasion of Ukraine as a ‘holy war.’ The FBI works tirelessly to protect our national interests, and we will continue to use all the resources at our disposal to aggressively counter Russia’s malign activity around the world.”
According to the Indictment unsealed today in Manhattan federal court:[1]
In 2014, the President issued Executive Order 13660, which declared a national emergency with respect to the situation in Ukraine. To address this national emergency, the President blocked all property and interest in property that came within the United States or the possession or control of any United States person, of individuals determined by the Secretary of the Treasury to be responsible for or complicit in, or who engaged in, actions or policies that threatened the peace, security, stability, sovereignty, or territorial integrity of Ukraine, or who materially assist, sponsor, or provide financial, material, or technological support for, or goods and services to, individuals or entities engaging in such activities. Executive Order 13660, along with certain regulations issued pursuant to it (the “Ukraine-Related Sanctions Regulations”) prohibits, among other things, making or receiving any funds, goods, or services by, to, from, or for the benefit of any person whose property and interests in property are blocked.
On December 19, 2014, the Department of Treasury’s Office of Foreign Assets Control (“OFAC”) designated KONSTANTIN MALOFEYEV as a Specially Designated National (“SDN”) pursuant to Executive Order 13660. OFAC’s designation of MALOFEYEV explained that he was one of the main sources of financing for Russians promoting separatism in Crimea, and has materially assisted, sponsored, and provided financial, material, or technological support for, or goods and services to or in support of the so-called Donetsk People’s Republic, a separatist organization in the Ukrainian region of Donetsk.
As alleged in the Indictment, MALOFEYEV hired a United States citizen named Jack Hanick in 2013 to work on a new Russian cable television news network (the “Russian TV Network”) that MALOFEYEV was creating. MALOFEYEV negotiated directly with Hanick regarding Hanick’s salary, payment for Hanick’s housing in Moscow, and Hanick’s Russian work visa, and MALOFEYEV paid Hanick through two separate Russian entities through the end of 2018.
After OFAC designated MALOFEYEV as a SDN in December 2014, MALOFEYEV continued to employ Hanick on the Russian TV Network, in violation of the Ukraine-Related Sanctions Regulations. MALOFEYEV also dispatched Hanick to work on a project to establish and run a Greek television network and on efforts to acquire a Bulgarian television network. At MALOFEYEV’s direction, Hanick traveled to Greece and to Bulgaria on multiple occasions in 2015 and 2016 to work on these initiatives, and reported directly back to MALOFEYEV on his work. For instance, in November 2015, Hanick wrote to MALOFEYEV that the Greek television network would be an “opportunity to detail Russia’s point of view on Greek TV.” In connection with MALOFEYEV’s efforts to acquire the Bulgarian television network, MALOFEYEV instructed Hanick to take steps to conceal MALOFEYEV’s role in the acquisition by conducting the negotiations through a Greek associate of MALOFEYEV (the “Greek Business Associate”), so that it would appear the buyer was a Greek national rather than MALOFEYEV.
MALOFEYEV also employed Hanick to assist MALOFEYEV in transferring a $10 million investment in a Texas-based bank holding company (the “Texas Bank”) to the Greek Business Associate in violation of the Ukraine-Related Sanctions Regulations. In 2014, MALOFEYEV had used a shell company to make the investment, and beginning in or about March 2015, MALOFEYEV began making plans to transfer ownership of the shell company to the Greek Business Associate as a means to transfer the investment in the Texas Bank. In or about May 2015, MALOFEYEV’s attorney drafted a Sale and Purchase Agreement that purported to transfer the shell company to the Greek Business Associate in exchange for one U.S. dollar. In June 2015 MALOFEYEV had Hanick physically transport a copy of MALOFEYEV’s certificate of shares in the Texas Bank from Moscow to Athens to be given to the Greek Business Associate. MALOFEYEV signed the Sale and Purchase Agreement in June 2015, but the agreement was fraudulently backdated to July 2014 to make it appear that the transfer had taken place prior to the imposition of United States sanctions. MALOFEYEV’s attorney then falsely represented to the Texas Bank that the transfer had taken place in July 2014, even though MALOFEYEV and his attorney well knew that the transfer of the shell company was executed in June 2015.
Along with the unsealed Indictment, the United States Attorney announced the issuance of a seizure warrant for MALOFEYEV’s Texas Bank investment, which had been converted by the Texas Bank in 2016 to cash held in a blocked United States bank account. The United States recovered those funds pursuant to the warrant and will seek forfeiture of those funds as property that constitutes or is derived from proceeds traceable to the commission of the offenses alleged in the Indictment.
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MALOFEYEV, 47, of Russia, remains at large, and is believed to be in Russia. Each of the two sanctions charges in the Indictment carries a maximum penalty of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation and thanked the support and expertise of the Department of Justice’s National Security Division and Office of International Affairs in the conduct of this matter.
On March 2, 2022, the Attorney General announced the launch of Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed, along with allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. The task force will leverage all the Department’s tools and authorities against efforts to evade or undermine the economic actions taken by the U.S. government in response to Russian military aggression.
The prosecution is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Thane Rehn, Jessica Greenwood, and Vladislav Vainberg are in charge of the prosecution.
[1] The entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Restraining Order Entered Against Florida Operators of Technical-Support Fraud Scheme Targeting SeniorsRead the Press Release
Miami, Florida – The U.S. District Court for the Southern District of Florida has ordered Florida company, Windows Service Center LLC, and its owner and operator, Erica Herson, 41, of Miami, to stop operating a technical-support fraud scheme that is alleged to have defrauded elderly and vulnerable U.S. victims out of over $1 million.
In a complaint filed on March 30, the United States alleges that Herson operated a scheme through Windows Service Center, as well as through her prior company USEL Support LLC, in which she contacted individuals over the phone and convinced them to purchase overpriced and unnecessary technical support services and anti-virus software by falsely claiming that their computers were infected with viruses or malware or were accessed by hackers. The complaint alleges that, in reality, Herson had no specific knowledge of the security of the victims’ computers prior to making the calls.
The complaint also alleges that Herson charged victims thousands of dollars for the installation of software that is available online for free or for a low cost. In addition, the complaint alleges that once a victim had made a purchase from USEL Support, Herson and USEL Support contacted that same victim repeatedly to try to obtain further payments by falsely claiming that the victim’s computer had additional security problems. The complaint alleges that Herson is continuing the same technical support fraud scheme through her new company, Windows Service Center.
The temporary restraining order entered March 31 prohibits Herson and Windows Service Center from engaging in telemarketing activity related to computer or software technical support and from accepting consumer payments related to any computer or software technical support service.
This case is being handled by Assistant U.S. Attorney James A. Weinkle for the U.S. Attorney’s Office in the Southern District of Florida and Trial Attorneys Amy Kaplan and Ann Entwistle of the Civil Division’s Consumer Protection Branch.
The department’s extensive and broad-based efforts to combat elder fraud seeks to halt the widespread losses seniors suffer from fraud schemes. The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors and other seniors who can use that information to protect themselves.
The public can report suspected fraud to law enforcement and file a complaint at https://reportfraud.ftc.gov/#/ and/or www.ic3.gov/Home/FileComplaint.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. ET. English, Spanish and other languages are available.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cv-20964.
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Putnam Man Sentenced to Prison for Federal Firearm OffenseRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that NICHOLAS SCHNEIDER, 32, of Putnam, was sentenced today by U.S. District Judge Sarah A. L. Merriam in New Haven to six months of imprisonment, followed by two years of supervised release, for a firearm offense. Judge Merriam also ordered Schneider to pay a $3,000 fine.
According to court documents and statements made in court, on June 5, 2020, ATF agents searched a residence in Canterbury where Schneider was living. In Schneider’s bedroom, investigators located numerous rounds of ammunition, various firearm parts, a firearm kit, and firearm magazines.
Schneider’s criminal history includes state convictions for felony narcotics offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Schneider was arrested on a federal criminal complaint on December 14, 2020. On January 12, 2022, he pleaded guilty to unlawful possession of ammunition by a felon.
Schneider, who is released on bond, is required to report to prison on May 18.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Connecticut State Police, with the assistance of the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Angel M. Krull.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
President of Local Chapter of National Treasury Employees Union Convicted of Wire Fraud and False Statements ChargesRead the Press Release
A federal jury found Jonathon Ortino, former president of the National Treasury Employees Union Chapter 165 (Union), guilty of two counts of making false statements and three counts of wire fraud in connection with a scheme to defraud the Union and to hide the fraud by submitting false annual financial reports to the Department of Labor, announced U.S. Attorney Stephanie M. Hinds, Department of Homeland Security, Office of Inspector General (DHS OIG) Special Agent in Charge Matthew Brackett, and U.S. Department of Labor, Office of Labor Management Standards (DOL OLMS) District Director Bruce Edgington. The jury acquitted Ortino of one count of making false statements. The verdict was handed down after a five-day jury trial before the Hon. William Orrick, U.S. District Judge.
Between September 2013 and September 2017, Ortino, 47, of San Bruno, Calif., was the president of the Union, which represents Customs and Border Protection officers in California and Nevada. The evidence submitted at trial demonstrated that, beginning in February 2014, Ortino improperly took more than $84,000 in Union money, using it on himself, his wife, his friends, and other associates. The evidence also showed that Ortino falsely reported the amount of money paid to him in 2014 and 2016 on the Department of Labor’s Form LM-3 Labor Organization Annual Report (“Form LM-3”), which required Ortino to report, among other things, loans and disbursements made to Union officers, and money received by the Union.
On June 4, 2019, a federal grand jury returned a Superseding Indictment charging Ortino with three counts of making false statements to a government agency, in violation of 18 U.S.C. §§ 1001(a)(2) and 2, and three counts of wire fraud, in violation of 18 U.S.C. § 1343. After the trial, the jury convicted Ortino on five counts—all three counts of wire fraud and two of the three false-statements counts.
Ortino faces a statutory maximum term of 5 years in prison and a $250,000 fine for each count of making false statements and a statutory maximum term of 20 years in prison and a $250,000 fine on each count of wire fraud. In addition, as part of Ortino’s sentence, the court may order a term of supervised release, restitution, and additional assessments; however, any sentence following conviction will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. The court has not yet published a date for sentencing.
Assistant U.S. Attorneys Nicholas Parker and Charles Bisesto are prosecuting the case with the assistance of Rebecca Shelton. This case resulted from an investigation by DHS OIG and the DOL OLMS.
Podiatrist pays six figures to settle allegations involving false procedureRead the Press Release
HOUSTON – A 67-year-old podiatrist from Cypress has agreed to pay $865,000 to resolve allegations that she submitted false medical claims for the use of electro-acupuncture devices, announced U.S. Attorney Jennifer B. Lowery.
Dr. Judith Rubin is a podiatrist who practices in Cypress.
From March 1, 2018, to Nov. 30, 2019, Rubin billed Medicare for the surgical implantation of neurostimulator electrodes. This surgical procedure usually requires the use of an operating room. Medicare typically pays thousands of dollars per procedure.
However, neither Rubin nor her staff performed these surgical procedures. Instead, patients received devices used for electro-acupuncture, which only involves inserting needles into patients’ ears and taping the neurostimulator behind them with an adhesive.
To date, this is the eighth case the Southern District of Texas has resolved for similar false claims. The other matters included settlements with a Katy anesthesiologist, Laredo pain doctor, Houston pain doctor, Houston chiropractor, Rockport chiropractor, Woodlands pain doctor and Cypress marketing representative.
The U.S. Attorney’s Office conducted the investigation with the Department of Health and Human Services – Office of Inspector General and Qlarant, the Unified Program Integrity Contractor for Medicare. Assistant U.S. Attorney Brad Gray handled the matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Pocatello Man Convicted by a Federal Jury for Failing to Register as a Sex OffenderRead the Press Release
POCATELLO – A federal jury sitting in Pocatello convicted a Pocatello man on April 5, 2022, for failure to register as a sex offender.
According to court records and evidence presented at trial, Kenneth Shaye Simmons, 46, was previously convicted in the state of Utah of sexual abuse of a child. As a result of his conviction, the Sex Offender Registration and Notification Act (SORNA) required Simmons to register as a sex offender.
In May 2020, Simmons left the state of Nevada, non-compliant with Nevada’s sex offender registry, and moved to Idaho. After moving to Idaho, Simmons failed to register as a sex offender while living in the state. He was apprehended in August 2020, after law enforcement received a tip regarding his location.
Simmons is scheduled to be sentenced on July 26, 2022, and faces a maximum penalty of ten years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“Sex offender registration and notification programs are important for public safety purposes,” said U.S. Attorney Rafael M. Gonzalez, Jr. “Sex offender registration is a system for monitoring and tracking sex offenders following their release into the community. The registration provides important information about convicted sex offenders to local and federal authorities and the public, such as offender's name, current location, and past offenses. This office and our partners take very seriously the failure to register and will bring to justice those sexual offenders, who fail to register,” Mr. Gonzalez concluded.
U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho commended the cooperative efforts of the Bannock County Sheriff's Office, Pocatello Police Department, and the U.S. Marshals Service, which led to charges, and the Assistant U.S. Attorney, who presented the case to the jury.
Simmons was prosecuted for a violation of the Sex Offender Registration and Notification Act (SORNA) passed by Congress in 2006. The Act requires sex offenders to register and keep their registration current in each jurisdiction where they reside. Violations of SORNA can be prosecuted in federal court.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Philadelphia Man Sentenced to 20 Years in Prison After Being Convicted at Trial of Unlawfully Possessing Drugs and GunsRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Jamir Foushee, a/k/a “Jamir Young,” 32, of Philadelphia, PA, was sentenced to sentenced to 20 years in prison by United States District Judge Michael M. Baylson for multiple narcotics and firearms offenses. The charges against the defendant stemmed from his unlawful possession of these items while riding in a car stopped by Philadelphia police in the Kensington section of the city.
In June 2021, the defendant was found guilty by a jury of possession with intent to distribute “crack” cocaine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon. The evidence presented at trial proved that, in April 2019, Foushee was riding as a passenger in his own car when it was stopped for a traffic violation by Philadelphia Police officers. After observing the defendant reach under his seat, officers discovered a handgun under that seat. The defendant then stated to officers that the guns and drugs in the car were his. Police detained Foushee and the driver of the vehicle, searched the car, and found crack cocaine packaged for sale, as well as two additional firearms. At the time of the incident, the defendant was a convicted felon and was not allowed by law to possess a firearm.
“Drug distribution and gun violence are an epidemic in Philadelphia, and the federal government is aggressively prosecuting both; we are ‘All Hands On Deck’ to get dangerous criminals like this defendant off the streets,” said U.S. Attorney Williams. “As a previously convicted felon, Foushee knew all too well that he is prohibited from possessing a firearm, , and his simultaneous possession of illegal narcotics made him even more dangerous. We want to thank our law enforcement partners in this case, the ATF and the Philadelphia Police Department, for their hard work and dedication.”
“A convicted felon carrying drugs and guns clearly threatens the safety of the community,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “A jury convicted this defendant of federal crimes and with this jail sentence, he will no longer be in a position to harm anyone for quite some time. Thank you to our partners at the Philadelphia Police Department and the U.S. Attorney’s Office for their continued support in combatting violent crime.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney David E. Troyer, and Department of Justice Trial Attorney Randall Warden.
Pennsylvania Man Admits Bank Fraud Conspiracy that Operated in South Jersey and Southeastern PennsylvaniaRead the Press Release
CAMDEN, N.J. – A Pennsylvania man today admitted his role in a bank fraud conspiracy that targeted 12 financial institutions in southern New Jersey and southeastern Pennsylvania, U.S. Attorney Philip R. Sellinger announced.
Tunde Adeowo, 41, of Lansdowne, Pennsylvania, pleaded guilty before U.S. district Judge Noel L. Hillman in Camden federal court to an information charging him with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
Adeowo was part of a multi-defendant, Nigerian-based, multi-layered criminal organization that engaged in a massive bank fraud conspiracy in several states, including New Jersey, Pennsylvania, Maryland, and Rhode Island, between June 2016 and March 2020. Members of the group acquired numerous business checks that were stolen from the United States mail, altered the payee on the checks to a fraudulent name. They deposited the checks into bank accounts that had been opened with forged foreign passport documents and fraudulent U.S. visas that matched the names on the stolen checks. Once the banks credited all or a portion of the funds to the accounts, but before the checks had cleared, the defendants withdrew the funds from ATMs or purchased money orders, using debit cards associated with the fraudulent accounts. Members of the organization have used over 400 fraudulent accounts opened with fake identity documents to defraud the victim banks. To date, the total loss to the victim banks is approximately $6 million.
Adeowo admitted his role in the conspiracy, which included using several false identities to open fraudulent bank accounts. He then made numerous deposits of stolen checks to these accounts and withdrew funds from the accounts.
As part of his plea, Adeowo agreed to forfeit his interest in approximately $90,000 worth of money orders which were proceeds of the bank fraud and which were seized from a public storage facility in Philadelphia used by the conspirators to store additional fraudulent identity documents and proceeds of the bank fraud.
The bank fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a maximum fine of $1 million. Sentencing is scheduled for Aug. 11, 2022.
U.S. Attorney Sellinger credited special agents of the U.S. Postal Inspection Service, Bellmawr office and Philadelphia Division Office, under the direction of Damon E. Wood, Inspector in Charge, Philadelphia Division; U.S. Postal Inspection Service, Washington, D.C. Division Office, under the direction of Peter R. Rendina, Washington Division Inspector in Charge; the Department of Homeland Security, Homeland Security Investigations, Cherry Hill Office and Newark Division Office, under the direction of Special Agent in Charge Jason J. Molina; Homeland Security Investigations Philadelphia Division Office, under the Direction of Acting Special Agent in Charge William S. Walker; Homeland Security Investigations Maryland Division Office, under the direction of James R. Mancuso, Special Agent in Charge, Baltimore; Homeland Security Investigations Rhode Island Office, under the direction of Matthew Millhollin, Special Agent in Charge, Boston Division Office; and the U.S. Department of State’s Diplomatic Security Service (DSS), under the direction of R. Mike Escott, Resident Agent in Charge, Philadelphia Resident Office, with the investigation leading to today’s guilty plea.
Two other conspirators have previously pleaded guilty and are awaiting sentencing before Judge Hillman. Charges against nine other defendants remain pending before the District Court.
The government is represented by Assistant U.S. Attorney Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the pending complaints and indictments against the nine conspirators are merely accusations, and the defendants in those cases are presumed innocent unless and until proven guilty.
Passenger sentenced for groping nurse during flightRead the Press Release
ATLANTA - Scott Russell Granden has been sentenced to federal prison for groping and inappropriately touching a female passenger seated next to him on a flight to Atlanta.
“Passengers have the right to fly in peace and to expect that their personal dignity will be respected,” said U.S. Attorney Kurt R. Erskine. “When this defendant started groping and sexually harassing the female passenger in the next seat, he humiliated and degraded her. We will not tolerate this type of behavior on an airplane, and this sentence shows the consequences for such abusive sexual conduct.”
“Reports of sexual assaults on aircraft are increasing and we want the public to know that these assaults are federal crimes with severe consequences”, said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “The FBI will continue to work with our partners to investigate and prosecute these crimes to keep the skies safe for everyone.”
“The Atlanta Police Department takes the safety of aircraft passengers, seriously,” said Atlanta Police Chief Rodney Bryant. “We continuously work closely with our local and federal law enforcement partners to ensure that airport customers and airline passengers feel safe when traveling to and from our great city.”
According to U.S. Attorney Erskine, the charges and other information presented in court: On March 25, 2021, Granden boarded a flight traveling from St. Louis, Missouri, to Atlanta. He sat in a middle seat beside the victim, R.A.K, an emergency room nurse. R.A.K. was exhausted from a hectic day and, shortly after takeoff, tried to rest. She awoke to discover that Granden’s hand was on her thigh. She removed his hand and went back to sleep. But she woke up moments later because Granden had again placed his hand on her thigh, moved his hand towards her groin area, and, at one point, tried to kiss her. R.A.K. warned Granden to stop touching her. But he slapped R.A.K. on the buttocks when she stood up to let him pass her to go to the restroom.
A flight attendant responded to R.A.K.’s complaint about these incidents and moved Granden to a different seat. The airline company notified the Atlanta Police Department (APD) about the assault and arrested Granden when the plane arrived in Atlanta. APD officers obtained statements from R.A.K. and another passenger on the flight. Granden called the officers a series of racist and homophobic slurs during this time.
Scott Russell Granden, 36, of St. Louis, Missouri, has been sentenced to one year and nine months in prison to be followed by one year of supervised release. He must also register as a sex offender. Granden was convicted of the offense of abusive sexual contact aboard an aircraft on September 24, 2021, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation and the Atlanta Police Department.
Assistant U.S Attorney Paul R. Jones prosecuted 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.
Owner of Trucking Business Sentenced to 18 Months’ Imprisonment for Covid-Relief Fraud SchemeRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Keith McConnell, age 43, of Carlisle, Pennsylvania, was sentenced yesterday to 18 months’ imprisonment by United States District Court Judge Christopher C. Conner for perpetrating a wire fraud and money laundering scheme which sought $467,200 in COVID-19 relief funds guaranteed by the U.S. Small Business Administration through the Paycheck Protection Program (PPP).
The PPP was designed to help small businesses facing financial difficulties during the COVID-19 pandemic. Funded by the March 27, 2020 Coronavirus Aid, Relief and Economic Security (CARES) Act, PPP funds were offered in forgivable loans to small businesses for employee job retention and certain other expenses. PPP loan amounts were determined by the number of employees and average monthly payroll costs.
According to United States Attorney John C. Gurganus, McConnell submitted fraudulent PPP loan applications and forged documents on behalf of his Carlisle-area trucking company, KB Transportation LLC. In both 2019 and 2020, KB Transportation LLC was not in business, had no employees, and had no payroll expenses. On June 5, 2020, however, McConnell falsely certified that KB Transportation LLC employed twenty-six employees and had monthly payroll expenses totaling $124,800. As a result of the fraud, McConnell received $312,000 in PPP loan proceeds. Within weeks, McConnell spent the PPP funds on unauthorized expenditures including the purchase of a residential property, two personal vehicles, cash withdrawals, and stock market investments. On January 20, 2021, McConnell used KB Transportation LLC to apply for a second PPP loan in the amount of $155,200, and again submitted false and fraudulent loan applications and documents. The second PPP loan was never disbursed.
In addition to the 18-month prison sentence, the Court ordered Keith McConnell to serve three years of supervised release following incarceration, and to pay $312,200 in restitution for disbursement to the victims of his crimes. To date, McConnell has paid back $237,515.50 in restitution.
The case was investigated by the Internal Revenue Service-Criminal Investigation (IRS-CI). Assistant U.S. Attorney Samuel S. Dalke prosecuted 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.
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