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4 May 2022
Alien smuggler faces up to life for three deathsRead the Press Release
LAREDO, Texas – A 23-year-old Laredo resident has pleaded guilty to conspiracy to transport undocumented aliens resulting in death, announced U.S. Attorney Jennifer B. Lowery.
Abraham J. Ahumada admitted to leaving the victims behind after a car accident.
On Nov. 13, 2021, Ahumada drove a black Nissan Murano down U.S. Highway 83. Law enforcement attempted to pull him over, but he proceeded to flee. He did not yield and instead accelerated above the speed limit.
Ahumada disregarded a red light during the pursuit along U.S. 83 and collided with a passenger vehicle crossing the intersection with the right of way. The collision resulted in three deaths.
Two individuals in Ahumada’s vehicle were pronounced dead on the scene as well as a woman who was traveling in the struck vehicle with children. The three children suffered major bodily injuries and were taken to a local hospital for treatment.
Judge Marina Garcia Marmolejo will impose sentencing July 28. At that time, he faces a maximum sentence of life imprisonment.
He has been and will remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation with Customs and Border Protection and Texas Department of Public Safety. Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.
Albuquerque man pleads guilty to carjacking, bank robbery and firearms chargesRead the Press Release
ALBUQUERQUE, N.M. – Lante Porcha, 30, of Albuquerque, pleaded guilty on May 3 in federal court to one count of carjacking, one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence, one count of attempted bank robbery with a dangerous weapon, and one count of being a felon in possession of a firearm and ammunition. Porcha will remain in custody pending sentencing, which has not been scheduled.
A federal grand jury indicted Porcha and codefendant Chaz Estrada, 34, also of Albuquerque, on Feb. 7, 2019. According to the plea agreement and other court records, on Feb. 3, 2019, in the parking lot of Presbyterian Hospital in Albuquerque, Porcha approached a victim who was seated in his vehicle and asked the victim for a cigarette or a lighter. Porcha then pointed a handgun at the victim and threatened to shoot him if he did anything. Porcha entered the passenger seat and ordered the victim to drive to Estrada, who was waiting nearby. Porcha ordered the victim to get out of the vehicle, after which Estrada entered the driver seat and the two fled in the victim’s vehicle.
Later that day, Porcha approached another victim as she was at a drive-up ATM. Porcha pointed the handgun at the victim and demanded that she empty her bank account. The victim refused and pushed the gun downward. The gun discharged and the bullet passed between the victim’s legs. Porcha ran back to the stolen vehicle and fled with Estrada driving.
A short time later, law enforcement stopped the stolen vehicle. Porcha and Estrada attempted to flee on foot but were arrested. The handgun and ammunition were found in the vehicle.
On May 26, 2020, Estrada pleaded guilty to attempted bank robbery with a dangerous weapon, being an accessory after the fact, and being a felon in possession of a firearm and ammunition. On Sept. 15, 2020, Estrada was sentenced to eight years and one month in prison, to be followed by three years of supervised release.
By the terms of the plea agreement, Porcha faces 15 years and eight months in prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with assistance from the Albuquerque Police Department. Assistant United States Attorney Timothy Trembley is prosecuting the case.
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Albuquerque man charged with robbing a mail carrierRead the Press Release
ALBUQUERQUE, N.M. – Daniel Trujeque, 29, of Albuquerque, appeared in federal court today for a preliminary and detention hearing where he was charged with robbery against a U.S. Postal Service employee while the employee was carrying out official duties. Trujeque will remain in custody pending trial, which has not been scheduled.
According to a criminal complaint, on Jan. 11, Trujeque and two accomplices allegedly parked near a U.S. Postal Service letter carrier who was delivering parcels to a neighborhood box unit on the west side of Albuquerque. Trujeque allegedly got out of the vehicle and approached the letter carrier. He then allegedly pointed a handgun at the letter carrier and demanded the carrier’s mail keys. After the carrier handed over the keys, Trujeque allegedly demanded a parcel that had not been placed in a box yet. Trujeque took the keys and the parcel, returned to the vehicle and fled.
A complaint is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Trujeque faces up to 25 years in prison.
The U.S. Postal Inspection Service investigated this case with assistance from the Albuquerque Police Department and the Bernalillo County Sheriff’s Office. Assistant United States Attorney Niki Tapia-Brito is prosecuting the case.
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3 May 2022
Woman Formerly of Bay Area Sentenced to Five Years in Prison for Fraud SchemeRead the Press Release
SAN JOSE – Amanda Christine Riley was sentenced in federal court today to 60 months in prison after pleading guilty to wire fraud in connection with a scheme to solicit donations from individuals to help her pay for cancer treatments she never needed nor received, announced United States Attorney Stephanie M. Hinds and Internal Revenue Service (IRS) Criminal Investigation, Special Agent in Charge Mark H. Pearson. The sentence was handed down by the Honorable Beth Labson Freeman, United States District Judge for the Northern District of California.
Beginning in 2012, Riley, who was then living in San Jose, began to falsely report that she had been diagnosed with Hodgkin’s lymphoma, a type of cancer. Although she was not actually ill, Riley carefully cultivated a social media presence, using Facebook, Instagram, Twitter, and a blog. She used her presence on these sites to “document” her nonexistent medical condition, and to aggressively solicit donations, supposedly to cover her medical expenses. In truth, Riley had no medical expenses. The donations she received were deposited into her personal bank accounts and used to pay her living expenses. In total, the government identified 349 individuals and entities who made contributions with a total value of $105,513 towards Riley’s fabricated medical expenses.
Information provided at the sentencing hearing showed that Riley went to great lengths to maintain her deception: she shaved her head to make it appear as if she were receiving chemotherapy; she falsified medical records; she forged physicians’ letters and medical certifications; she convinced family members to echo her false claims; she gave materially false testimony in several legal proceedings; and she attacked anyone who suggested she was malingering (going so far as to sue one of them). Riley’s scheme continued from 2012 until 2019, when it was uncovered by an investigation of the Internal Revenue Service, Criminal Investigation, and the San Jose Police Department.
Riley was charged by criminal complaint in July 2020 and pleaded guilty to an information charging one count of wire fraud in violation of 18 U.S.C. § 1343 on October 12, 2021. In addition to her 60-month prison sentence, Judge Freeman ordered that Riley pay restitution in the amount of $105,513. The sentence also included a three year period of supervision following her release from prison.
Assistant U.S. Attorneys Michael G. Pitman and Scott Simeon prosecuted the case with the assistance of Sahib Kaur. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation, and the San Jose Police Department.
Woman Awaiting Sentencing in Health Care Fraud Case again Charged with Committing Health Care FraudRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, today announced that NICOLE STEINER, formerly known as Nicole Balkas, 32, of Stratford, was arrested yesterday on a criminal complaint charging her with committing health care fraud after pleading guilty and while released on bond in another health care fraud case.
Following her arrest, Steiner appeared before U.S. Magistrate Judge S. Dave Vatti in Bridgeport and was released on a $250,000 bond into home detention and under electronic monitoring.
According to court documents and statements made in court, on April 28, 2021, Steiner pleaded guilty to one count of health care fraud related to her operation of Helping Hands Academy, LLC, in Bridgeport, which provided applied behavior analysis services to children diagnosed with Autism Spectrum Disorder (ASD), and was enrolled as a participating provider in the Connecticut Medicaid Program (“Medicaid”). From December 2018 to October 2020, Steiner submitted and caused to be submitted fraudulent claims to Medicaid for applied behavior analysis services that were purportedly provided to Medicaid clients. She submitted claims for dates of service when no applied behavior analysis services of any kind had been provided to the Medicaid clients identified in the claims, and she inflated the number of hours for certain claims even when applied behavior analysis had been provided to the Medicaid clients identified in the claims. Steiner also submitted false Medicaid claims in 2020 using a former employee’s name and performing provider number.
After the Connecticut Department of Social Services (DSS), which administers the Medicaid program in Connecticut, terminated Helping Hands Academy as a provider, Steiner made several false statements and submitted an altered document to DSS in an effort to rescind the termination and to receive payment for previously submitted claims.
Medicaid suffered a loss of $551,311.85 as a result of Steiner’s admitted conduct.
After her guilty plea, Steiner was released on a $50,000 bond pending sentencing.
It is alleged that, while she was awaiting sentencing in her case, Steiner was a silent partner in another company that provided applied behavior analysis services to children diagnosed with ASD called New Beginnings Children’s Behavioral Health LLC. Steiner was responsible for billing claims to Medicaid, managing payroll, and recruiting and screening potential employees, and she and had access to and used her business partner’s email and other online accounts to operate the company. Steiner and the company engaged in health care fraud by billing Medicaid for thousands of dollars in services not rendered and, in particular, billing for services not rendered by Steiner.
If convicted of the new charge, Steiner faces a maximum term of imprisonment of 10 years, which must be imposed consecutively to the sentence she receives in her initial health care fraud case.
This investigation is being conducted by the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and the Federal Bureau of Investigation.
U.S. Attorney Boyle acknowledged the valuable cooperation of the Connecticut Department of Social Services in the investigation.
This case is being prosecuted by Assistant U.S. Attorney David T. Huang.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
West Palm Beach Investment Fraudster Sentenced to 42 Months in Federal Prison After Losing Investor Millions in Wire Fraud SchemeRead the Press Release
Miami, Florida – Fifty-four-year-old West Palm Beach, Florida resident Salvatore Renaldi has been sentenced in South Florida federal district court to 42 months in federal prison for orchestrating and running two investment fraud schemes that led victims across the country to collectively lose over $3 million.
Renaldi was the founder and CEO of The Sanctum Group of Companies, Inc., Sanctum Publishing and Marketing, Ltd., and Sanctum Media Group, Inc. (the “Sanctum companies”). Renaldi and others used the Sanctum companies to solicit funds from victim investors. To induce people to invest, Renaldi lied to them, promising to use their money to build a profitable business and guaranteeing a solid return on their investment. In addition, Renaldi failed to tell investors that he had a history of violating federal securities laws and that he used most of their money to pay for his personal expenses, make cash withdrawals, pay prior investors, and pay undisclosed commissions and fees. From about 2011 to 2015, Renaldi defrauded approximately 14 Sanctum company investors out of almost $1.5 million.
Renaldi also was associated with Magnum Health Management, Magnum Media Management, and Magnum Media Mining (the “Magnum companies”). Renaldi admitted that he represented himself to the public as the Magnum companies’ CEO, owner and operator. When soliciting funds for the Magnum companies, Renaldi falsely told investors that he would use their money as working capital and to build diabetes clinics. Instead, Renaldi used almost all the money for his personal use and benefit. From about 2017 to 2019, Renaldi defrauded approximately 14 Magnum company investors out of more than $1.6 million.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, and George L. Piro, FBI Miami, announced the sentence imposed by U.S. District Judge Roy K. Altman.
This case was prosecuted by Assistant U.S. Attorney Yisel Valdes.
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 20-cr-80045.
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Webster City Man to Federal Prison for 15 Years for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced April 28, 2022, to more than fifteen years in federal prison.
Jose Sandoval, 39, originally from Webster City, Iowa, received the prison term after a November 5, 2013, guilty plea to conspiring to distribute methamphetamine. After entering a guilty plea, Sandoval absconded from federal authorities and lived in Mexico for eight years to avoid the consequences of his criminal activity. In 2021, Sandoval turned himself in to federal law enforcement at the U.S.-Mexico border. Sandoval received an obstruction of justice sentencing enhancement for his flight from federal supervision.
At the plea and sentencing hearings, evidence showed that Sandoval was involved in a conspiracy distributing methamphetamine from about January 2012 through January 2013. Sandoval admitted to selling up to quarter pound quantities of methamphetamine every 1-2 weeks throughout 2012 up to January 9, 2013, throughout central Iowa. On January 9, 2013, officers executed a search warrant of Sandoval’s residence and seized various items of drug distribution paraphernalia, including digital scales and $3,000, as well as six firearms. Sandoval also admitted to purchasing the firearms with the expectation of selling them for profit.
Sandoval was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Sandoval was sentenced to 188 months’ imprisonment. Sandoval must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Sandoval is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Iowa Division of Narcotics Enforcement, Webster City Police Department, Hamilton County Sheriff’s Office, Wright County Sheriff’s Office, Iowa State Patrol, and Iowa Division of Criminal Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 13-3003. Follow us on Twitter @USAO_NDIA.
Violent Offenders Sentenced in April for Crimes in and Around Tuba CityRead the Press Release
PHOENIX, Ariz. – Several violent offenders, all enrolled members of the Navajo Nation Tribe, were sentenced to prison in April for crimes they committed in and around Tuba City, Arizona.
On April 7, 2022, Joshua June, 40, of Tuba City, Arizona, was sentenced by U.S. District Judge John J. Tuchi to 54 months in prison, followed by 3 years of supervised release. June attacked an elderly victim with a metal chair and broke numerous bones in her body. He pleaded guilty to Assault with a Dangerous Weapon.
On April 13, 2022, Deon Manson, 45, of Page, Arizona, was sentenced by U.S. District Judge Susan M. Brnovich to 46 months in prison, followed by 3 years of supervised release. Manson attacked the victim with a shovel, causing several broken bones and two amputated fingers. He pleaded guilty to Assault with a Dangerous Weapon.
On April 18, 2022, Lisa Benally, 42, of Tuba City, Arizona, was sentenced by U.S. District Judge Steven P. Logan to 46 months in prison, followed by 3 years of supervised release. Benally recruited another person to shoot the victim in retaliation for minor property damage. She pleaded guilty to Aiding and Abetting Assault with a Dangerous Weapon.
On April 26, 2022, Zachary Smith, 27, of Shiprock, New Mexico, was sentenced by U.S. District Judge Douglas L. Rayes to 27 months in prison, followed by lifetime supervised release. Smith had repeated sexual contact with the minor victim. He pleaded guilty to Sexual Abuse of a Minor.
The Navajo Nation Division of Public Safety and the FBI conducted the investigations in these cases. The United States Attorney’s Office, District of Arizona, Phoenix, handled the prosecutions.
CASE NUMBER: CR-20-8090-PCT-JJT (June)
CR-21-8037-PCT-SMB (Manson)
CR-21-8038-PCT-SPL-002 (Benally)
CR-20-8121-PCT-DLR (Smith)RELEASE NUMBER: 2022-058_Tuba City
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Vacaville Man Sentenced to over 8 Years in Prison for Being a Felon in Possession of AmmunitionRead the Press Release
SACRAMENTO, Calif. — Guy Joseph Bass, 30, of Vacaville, was sentenced today by U.S. District Judge John A. Mendez to eight years and 10 months in prison for being a felon in possession of ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between August 2020 and November 2020, Bass possessed three different loaded firearms. On Aug. 17, 2020, Bass’ acquaintance drove him to the hospital, where Bass falsely reported to law enforcement that he had been shot by an unknown assailant, before eventually admitting that he had shot himself by accident. Officers recovered a stolen Walther P22 semi-automatic pistol from the acquaintance’s vehicle. On Sept. 18, 2020, Bass was arrested for an outstanding warrant. During the arrest, Bass admitted to having a firearm on his person. The loaded firearm was a non-serialized, privately made firearm, also known as a “ghost gun.” Finally, on Nov. 18, 2020, law enforcement officers spotted Bass and another individual parked in Vacaville. After a police dog alerted to the presence of narcotics, Bass handed an officer a bag of methamphetamine. A search of the vehicle resulted in the discovery of a another loaded, privately made firearm. Bass is prohibited from possessing firearms or ammunition because he has been convicted of several felonies, including a prior state conviction for possessing a firearm as a felon.
This case was the product of an investigation by the Fairfield Police Department, the Vacaville Police Department, the Solano County District Attorney’s Office, the FBI’s Solano County Violent Crimes Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Adrian T. Kinsella prosecuted the case.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Files False Claims Act Lawsuit Against Maryland Contractor and OwnerRead the Press Release
The United States has filed a lawsuit against government contractor Intelligent Fiscal Optimal Solutions LLC (iFOS) and its owner, Tawanda M. Smith, both of Columbia, Maryland, alleging that they violated the False Claims Act by submitting false invoices to the Department of Homeland Security (DHS) in connection with a contract for staff augmentation services awarded by DHS to iFOS.
According to the United States’ complaint, iFOS and Smith coordinated with then DHS official Kenneth J. Buck, to steer a contract to iFOS. iFOS and Smith planned for Buck to enter into a subcontract with iFOS following his departure from DHS pursuant to which Buck would serve as the Strategic Advisor for the DHS contract, a role that would necessitate him communicating directly with his successor at DHS on behalf of iFOS. iFOS and Smith were allegedly aware of federal conflict-of-interest rules that limited Buck’s ability to communicate directly with DHS officials on behalf of iFOS during a mandatory “cooling off” period that applies to former government officials such as Buck, and they allegedly misled DHS contracting personnel by falsely representing that a different iFOS employee would serve as the Strategic Advisor and concealing their planned involvement of Buck. After the contract was awarded, iFOS and Smith allegedly submitted false invoices to DHS contracting personnel that concealed the extensive work performed by Buck on the contract, which allegedly included improper communications with his DHS successor that violated federal conflict-of-interest laws. The complaint further alleges that iFOS and Smith violated material contract requirements that mandated a background investigation be completed for all iFOS personnel, which Buck never completed. Earlier this month, Buck settled civil claims relating to his alleged role in the scheme.
“The government’s conflict-of-interest rules protect the integrity of the government’s procurement process,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This lawsuit demonstrates the Justice Department’s commitment to pursue those who make false statements that undermine the government’s ability to enforce these important safeguards, or who otherwise misrepresent their compliance with critical contractual requirements.
“The federal procurement system has strict policies to prevent corruption and contract manipulation,” said U.S. Attorney Erek L. Barron for the District of Maryland. “These ethics and conflict of interest policies must be enforced to ensure that government contract awards are beyond reproach. In partnership with our investigative partners, our office will continue to hold accountable those who weaken the integrity of our procurement system.”
“I appreciate the continued partnership between DHS OIG and the Justice Department, which helps ensure the integrity of DHS programs,” said Inspector General Joseph V. Cuffari of DHS Office of Inspector General (OIG). “This lawsuit should serve as a deterrent to individuals intent on defrauding the government.”
The lawsuit is captioned United States v. Intelligent Fiscal Optimal Solutions LLC, et al., No. 22- CV No. 1:22-cv-01053-JMC (D. Md.), and is being handled by the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the District of Maryland.
DHS OIG is investigating.
Senior Trial Counsel Alicia J. Bentley of the Justice Department's Civil Division and Assistant U.S. Attorney Sarah Marquardt for the District of Maryland are handling the case.
The claims asserted in the United States’ complaint are allegations only, and there has been no determination of liability.
Uniontown Man Indicted on Child Sexual Exploitation ChargesRead the Press Release
PITTSBURGH - A resident of Uniontown, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of Production and Attempted Production of Material Depicting the Sexual Exploitation of a Minor and Possession of Material Depicting the Sexual Exploitation of a Minor, United States Attorney Cindy K. Chung announced today.
The 13-count Indictment named David Straitiff, age 48, as the sole defendant.
According to the Indictment, on April 4, 2010; July 5, 2010; January 3, 2011; January 21, 2011; January 25, 2011; February 2, 2011; February 3, 2011; February 15, 2011; June 12, 2012; June 29, 2012; and July 2, 2012, Straitiff persuaded and coerced Minor A, a minor female known to the grand jury, to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct. The grand jury further alleges that on June 1, 2021, and December 17, 2021, Straitiff knowingly possessed visual depictions, the production of which involved the use of minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of not less than 15 years, nor more than 30 years in prison, a fine of $3,250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Karen Gal-Or is prosecuting this case on behalf of the government.
Homeland Security Investigations (HSI) conducted the investigation leading to the Indictment in this case.
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 https://www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Uniontown Man Indicted on Child Sexual Exploitation ChargesRead the Press Release
PITTSBURGH - A resident of Uniontown, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of Production and Attempted Production of Material Depicting the Sexual Exploitation of a Minor and Possession of Material Depicting the Sexual Exploitation of a Minor, United States Attorney Cindy K. Chung announced today.
The 13-count Indictment named David Straitiff, age 48, as the sole defendant.
According to the Indictment, on April 4, 2010; July 5, 2010; January 3, 2011; January 21, 2011; January 25, 2011; February 2, 2011; February 3, 2011; February 15, 2011; June 12, 2012; June 29, 2012; and July 2, 2012, Straitiff persuaded and coerced Minor A, a minor female known to the grand jury, to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct. The grand jury further alleges that on June 1, 2021, and December 17, 2021, Straitiff knowingly possessed visual depictions, the production of which involved the use of minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of not less than 15 years, nor more than 30 years in prison, a fine of $3,250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Indicate relevant bond/detention information if known
Assistant United States Attorney Karen Gal-Or is prosecuting this case on behalf of the government.
Homeland Security Investigations (HSI) conducted the investigation leading to the Indictment in this case.
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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Announces New Federal Violent Crime StrategyRead the Press Release
MINNEAPOLIS – U.S. Attorney Andrew Luger, along with federal, state, and local law enforcement partners, today announced a new federal strategy to address violent crime in the Twin Cities metro area.
“Violent crime is at an all-time high in the Twin Cities. We have before us an urgent task. Every Minnesotan deserves the right to live safely and securely, without fear of shootings, car jackings, and violence,” said U.S. Attorney Luger. “This new strategy is designed to bring swift justice to our communities and to the victims of violent crimes. But it is also designed as a signal to violent offenders to stop. This violence cannot continue – it is causing far too much fear, too much pain and too much heartbreak for families and our community.”
The federal violent crime strategy announced today establishes expanded capacity within the U.S. Attorney’s Office to prosecute violent crime cases. Every federal prosecutor in the office will now take on violent crime cases. The U.S. Attorney’s Office will also be hiring additional prosecutors to assist in these efforts. With this expanded capacity, the office will prioritize the intake of all adult federal carjacking cases; cases involving the illegal possession of firearms and/or ammunition; firearms trafficking cases; straw purchasing cases; as well as cases involving the illegal possession of auto sears and ghost guns. Finally, U.S. Attorney Luger has created a new gang prosecution team that will work directly with law enforcement in addressing the gang violence that is plaguing the metro.
ATF Special Agent in Charge William J. McCrary stated, “I can say without a doubt that our agents are ready and enthused about working alongside U.S. Attorney Luger and his team on this violent crime initiative. We have already identified numerous violent offenders throughout the Twin Cities and other key areas in Minnesota. We are hot on the trails of many individuals who have done violence and those who arm them- who deal in the illegal firearms trade.”
“I commend U.S. Attorney Luger for his renewed focus and priority on violent crime. The FBI is specifically leveraging its Violent Crimes Task Force and its Safe Streets Task Force in the fight against violent crimes and criminal gang activity,” said FBI Special Agent in Charge Michael Paul. “To those who are committing these senseless act of violence, we will find you, we will take you off the street and you will be held accountable.”
“The Minnesota Bureau of Criminal Apprehension has implemented a targeted BCA team of special agents and analysts who are pursuing known suspects in homicides and gun-related crimes, carjackings, aggravated assaults, and felony warrants related to violent crimes. The BCA has also dedicated forensic laboratory resources to complete violent crime evidence testing faster. This brings the full weight of the BCA’s analytical and investigative toolset to data-driven investigations so that we can quickly find and apprehend suspects,” said BCA Deputy Superintendent of Investigations Scott Mueller. “We appreciate U.S. Attorney Luger’s leadership with this work and the partnership of many federal, state, and local law enforcement partners.”
U.S. Attorney Luger announced several recently unsealed cases:
- Dovyion Daquay Glass, 31, of Minneapolis, has been charged in a federal criminal complaint with possession of a firearm as a felon. According to court documents, on March 23, 2022, Glass was in possession of a Glock model 42 .380 caliber semiautomatic pistol. Because of his previous felony convictions, he is prohibited from possessing a firearm or ammunition at any time. According to a law enforcement affidavit, Glass was involved in a March 5, 2022, shooting outside a bar in St. Paul. Glass fired multiple rounds at people standing outside the bar. One of the bullets struck a man in the chest. This case is the result of an investigation conducted by the ATF and the St. Paul Police Department. ( glass_complaint.pdf )
- Nicholas James Bell, 23, of Minneapolis, has been charged in a federal criminal complaint with possession of a machine gun. According to court documents, on February 17, 2022, law enforcement agents intercepted a package sent from China that contained pieces of 21 Glock switches or auto sears. Agents also found that Bell had received four previous shipments from the same company in China over a two-month timeframe. Bell was later found in possession of a handgun outfitted with an auto sear, 70 rounds of ammunition, and seven additional auto sears. This case is the result of an investigation conducted by Homeland Security Investigations, CBP, ATF, and the Blaine Police Department. ( bell_complaint.pdf )
- Jay James Olson, 21, of Sauk Rapids, has been charged in a federal criminal complaint with manufacturing firearms without a license and possession of a machine gun. According to court documents, law enforcement learned that Olson was manufacturing and selling “ghost guns” as well as selling large quantities of other firearms throughout the Metro area. Throughout the investigation, law enforcement seized from Olson multiple ghost guns, high-capacity magazines, a silencer, several unserialized gun kits, and other firearms and accessories. This is the result of an investigation conducted by the ATF, the Hennepin County Sheriff’s Office, the Hennepin County Violent Offender Task Force, and the Stearns County Sheriff’s Office. ( olson_complaint.pdf )
Two Pittsburgh-Area Men Charged with Prison Contraband CrimesRead the Press Release
PITTSBURGH - Omari Patton and Dashawn Burley were indicted by a federal grand jury in Pittsburgh for prison contraband crimes, United States Attorney Cindy K. Chung announced today.
The Indictment charges Patton, age 43, formerly of Pittsburgh, and Burley, age 23, of Monroeville, with multiple counts of providing, or attempting to provide, contraband to an inmate of a federal prison in September and October 2018. The Indictment also charges Patton with multiple counts of possessing, and attempting to obtain, contraband while in federal prison in September 2018. The Indictment states that the contraband was a Schedule I synthetic cannabinoid controlled substance.
The law provides for a maximum total sentence of up to 50 years in prison and a fine of up to $1,250,000. Under the Under States Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation, the federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation.
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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tupelo Man Sentenced to More Than 20 Years in Prison for Drug TraffickingRead the Press Release
Oxford, MS – A Tupelo man was sentenced today to 262 months in prison for conspiracy to distribute methamphetamine and marijuana and possession of firearms by a convicted felon.
According to court documents, Samuel Wilson, III, 32, was convicted following a trial in December of conspiring with members of a drug trafficking organization led by Jeremy Mairidith to sell and distribute methamphetamine and marijuana. Wilson was also convicted of being a convicted felon in possession of two firearms. On Tuesday morning, U.S. District Judge Michael P. Mills sentenced Wilson after hearing arguments and comments from Wilson, his counsel, and prosecutors from the U.S. Attorney’s Office.
Following the sentencing, U.S. Attorney Clay Joyner stated: “Today’s sentence has removed from the streets an individual who has supported himself by distributing illicit drugs in our community and elsewhere. I commend our local, state and federal partners who worked on this investigation for years to see that the individuals involved in the violent and illegal activities of this drug trafficking organization were finally brought to justice.”
“ATF is committed to the disruption of violent gun crime. As with this joint effort, we will continue to focus on violent offenders who possess a firearm in conjunction with narcotics violations,” said ATF Special Agent in Charge Kurt Thielhorn. “Reducing firearm related crimes and keeping our communities safe is the top priority for ATF.”
Wilson is one of nine defendants convicted for his role in the drug trafficking organization.
The Bureau of Alcohol Tobacco, Firearms and Explosives, and FBI Jackson Division’s Oxford Resident Agency investigated the case as part of the Organized Crime Drug Enforcement Task Force (OCDETF) and Project Safe Neighborhoods programs in partnership with state and local law enforcement. Multiple agencies played critical roles in the investigation, including the Tupelo Police Department, Lee County Sheriff’s Office, Mississippi Bureau of Narcotics, North Mississippi Narcotics Unit, DEA, Corinth Police Department, Alcorn County Sheriff’s Office, Mississippi Highway Patrol, United States Postal Inspection Service, Mississippi Department of Corrections and the United States Marshals Service.
Assistant U.S. Attorneys Chad M. Doleac, Jay Hale and Scott Leary prosecuted the case.
This operation was one of many parts 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.
Two Wayne County Employees Arrested and Charged with Embezzling over $1.7 Million in County FundsRead the Press Release
DETROIT - Two Wayne County Roads Division employees were charged with embezzling over $1.7 million in county funds in a federal criminal complaint, which was unsealed today, Wayne County Prosecutor Kym Worthy and United States Attorney Dawn N. Ison announced.
Worthy and Ison were joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, Wayne County Sheriff Raphael Washington, and Warren C. Evans, Wayne County Executive. Wayne County Executive Warren C. Evans and his administration have been assisting and cooperating with the ongoing investigation since they first learned of fraudulent activity within their organization.
Named in the criminal complaint were Kevin Gunn, 64, of West Bloomfield, and John L. Gibson, 54, of Detroit. Gunn manages the Bridge Unit of the Wayne County Roads Division and has been employed by Wayne County for 34 years. Gibson is a foreman within the Bridge Unit. Gibson has been employed by Wayne County for 20 years.
Gunn and Gibson are charged in the complaint with conspiring to commit and committing federal program theft, wire fraud, and money laundering. Wayne County receives over $20 million in federal funds each year to pay for road repair, construction, maintenance. Gibson and Gunn were arrested today by FBI agents, Wayne County Prosecutor’s Office Investigators, and Wayne County Sheriff’s Deputies.
According to the complaint, the Wayne County Sheriff’s Department began the investigation, and then solicited the assistance of the FBI to investigate the criminal actions of Gunn, Gibson, other employees of the Wayne County Roads Division, and vendors to Wayne County. At the beginning of the investigation, the Wayne County Prosecutor’s Office secured a search warrant which broke open the case and led to the uncovering of the embezzlement scheme. Investigators with the Wayne County Prosecutor’s Office have played an ongoing and important role in the investigation.
Gunn, Gibson, and others were engaged in a scheme to defraud Wayne County by using taxpayer dollars to make unauthorized purchases of generators and other power equipment from retailers in Southeast Michigan which they sold for personal profit.
As part of the scheme to defraud, between January 2019, and August 2021, Gunn solicited approved Wayne County vendors to purchase generators and other power equipment from local retailers on behalf of Wayne County. The vendors would then submit invoices for these items to Wayne County. In order to conceal the scheme to defraud, Gunn instructed the vendors to falsify the invoices they submitted to the Roads Division, and list items the vendors were authorized to sell to the county under their contracts, rather than the generators and power equipment they were unlawfully acquiring at Gunn’s request. Roads Division employees would then approve and pay each vendor’s invoice with taxpayer funds. After these fraudulent purchases were verified and approved by Roads Division employees, Gibson, and Gunn took possession of the equipment which was resold over the internet and social media for personal profit.
A review of invoices from Wayne County vendors revealed that between January 16, 2019, and August 3, 2021, Wayne County vendors purchased 596 generators, and a variety of other power equipment including lawnmowers, chainsaws, and backpack blowers. The purchase of these items was not authorized under any vendor contract with Wayne County nor were the items ever provided to or used by Wayne County. The total value of equipment purchased as part of the scheme was approximately $1.7 million in taxpayer funds.
Federal program theft carries a maximum sentence of 10 years’ imprisonment and a fine of $250,000. Wire fraud carries a maximum sentence of up to 20 years’ imprisonment and a fine of up to $250,000. Money laundering carries a sentence of up to 20 years’ imprisonment and a fine of up to $500,000.
“The Wayne County Prosecutor’s Office has never and will never shy away from prosecuting corruption in any form, said Prosecutor Worthy. I am proud of the focus and dedication of all of the investigators, who have worked together with our Wayne County Prosecutor’s Detectives to expose the alleged theft and fraudulent conduct against the citizens of Wayne County. The support of U.S. Attorney Dawn N. Ison, CEO Evans, the Wayne County Sheriff’s Office, and the FBI resulted in the federal complaint against Gibson and Gunn.”
United States Attorney Dawn Ison said, “Today’s arrests reinforce our dedication to prosecuting corrupt public officials who elevate their own greed over the best interests of the public who rely on the safe administration and maintenance of public infrastructures like roads. We thank Wayne County Prosecutor Kym Worthy, and Wayne County Executive Warren C. Evans who have been instrumental in starting and moving this investigation forward.”
Wayne County Executive Warren Evans said: “I take public corruption very seriously which is why when we first learned of the fraudulent activities, my office immediately offered to cooperate and provide any needed assistance to the Wayne County Sheriff’s Office, Wayne County Prosecutor’s Office, Federal Bureau of Investigation (FBI), and the U.S. Attorney’s Office. It is unfortunate that a few individuals put their personal gain ahead of the work the county has done over the last 7 years to stabilize our fiscal outlook, continue improvements to our infrastructure and provide services to our residents throughout a global pandemic. These individuals have undoubtedly put a stain on the fabric of our system; however, they do not represent the hundreds of hardworking and dedicated Wayne County Employees who come to work every day to serve our residents with respect and integrity. I will continue to pursue every avenue to fully prosecute these employees and vendors.”
“The alleged actions of these individuals are nothing short of disgraceful,” said Sheriff Raphael Washington. “To brazenly steal from hardworking taxpayers and fraudulently line their own pockets while holding positions of public trust make these crimes all the more deplorable. Today’s charges are another example of our strong commitment to working together.”
“Today’s charges are an example of how government and law enforcement agencies work together to ensure public officials are using taxpayer money for its intended purpose — in this case the repair and maintenance of roads and bridges — and not for their personal benefit,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Division. “I commend the Wayne County Prosecutor, Wayne County Executive, and the Wayne County Sheriff’s Office for their early work on this investigation and their continued cooperation.”
The investigation of this case was conducted by the Wayne County Prosecutor’s Office, the Wayne County Sheriff’s Department, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Eaton P. Brown.
South Texas man sentenced for smuggling 17 kilos of methRead the Press Release
CORPUS CHRISTI, Texas – A 55-year-old Ennis resident has been ordered to federal prison following his conviction of possession with the intent to distribute kilograms of meth, announced U.S. Attorney Jennifer B. Lowery.
Enrique Perez pleaded guilty Feb. 8.
Today, U.S. District Judge Drew B. Tipton ordered Perez to serve 120 months in federal prison to be immediately followed by five years of supervised release.
On Dec. 1, 2021, Perez arrived at the Javier Vega Jr. Border Patrol (BP) checkpoint driving a maroon Chrysler sedan. Authorities believed he was carrying illegal narcotics and referred him to secondary inspection.
There, they discovered Zip-loc packages containing a crystal-like substance in the doors and trunk of the vehicle. It was later determined to be 17.659 kilograms of meth with an estimated street value of $529,770.
At the time of his plea, Perez admitted that he agreed to transport the drugs to Houston for $6,000.
Previously released on bond, Perez was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney J. Parker Gochenour prosecuted the case.
South Florida Towing Company Owner Pleads Guilty to Tax EvasionRead the Press Release
Miami, Florida – On Friday, Craig Goldstein, 60, of Boca Raton, Florida the owner of a Lauderdale Lakes towing company, pled guilty to three counts of Tax Evasion for underreporting income and failing to pay federal tax on money he received through a Personal Injury Protection (PIP) kickback scheme and other cash-based fraud. The sentencing has been set for August 16.
As part of his change of plea, Goldstein admitted the following: He was an owner of West Way Towing, a Lauderdale Lakes company that towed -- and stored at its yard -- disabled vehicles, including ones involved in accidents. Goldstein referred accident victims to certain attorneys and chiropractors who would then illegally charge insurance companies for unneeded services under Florida’s Personal Injury Protection Program. Goldstein charged a fee for each patient referral, which he collected in cash and failed to report to the IRS, according to the charges. Goldstein also failed to report cash he received from vehicle storage lien fees and from auctions of vehicles the sales prices of which were manipulated to falsely reflect that Goldstein made no profit, says the information.
Goldstein faces up to 15 years’ imprisonment and a fine up to $750,000.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and Matthew D. Line, Special Agent in Charge, Internal Revenue Service (IRS), Miami Field Office, made the announcement.
IRS Miami Field Office investigated this matter. The case is being prosecuted by Assistant U.S. Attorneys Jeffrey N. Kaplan and Paul Schwartz.
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-cr-60002.
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Sex Offender Sentenced to Twenty Years in Federal Prison for Child Exploitation OffensesRead the Press Release
PENSACOLA, FLORIDA – Last week, Cody Dewayne Jones, 27, of Laurel Hill, Florida, was sentenced to twenty years in federal prison after pleading guilty on January 11, 2022, for attempted enticement of a minor, attempted transfer of obscene material to a minor, and for committing a felony while a registered sex offender. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“This sentence acknowledges the deviant acts of a child predator,” said U.S. Attorney Coody. “Ensuring the safety of our communities is a top priority. With the assistance of our law enforcement partners, we remain vigilant to investigate and prosecute those who seek to harm our most vulnerable.”
In December 2020, an undercover Okaloosa County Sheriff’s Office (OCSO) investigator began chatting online to identify individuals interested in exploiting children. An individual, later identified as Jones, sent a private message via a social media platform to the investigator, who was posing as a 14-year-old girl. Over the next few days, Jones solicited pornographic photographs and discussed engaging in sexual activity with “her.” Law enforcement identified Jones as a previously convicted sex offender. On December 17, 2020, Jones traveled from Laurel Hill, Florida, to a predetermined location for the purpose of engaging in sexual activity with a person he believed to be a 14-year-old girl and was arrested by law enforcement.
“Protecting innocent children is one of the most important missions we have,” said HSI Jacksonville Assistant Special Agent in Charge K. Jim Phillips. “Our HSI special agents moved quickly to identify and take a child predator off the streets. HSI will always protect our children and will act swiftly to prosecute those who seek to do them harm.”
Jones’ federal prison sentence will be followed by 10 years of supervised release. Jones will continue to be required to register a sex offender and will be subject to all registration conditions.
“It’s very gratifying to see this lengthy sentence, to be followed by a decade of supervised release, for a registered sex offender who had attempted to continue to exploit and molest children,” said Okaloosa County Sheriff Eric Aden. “Through the joint efforts of all involved, that opportunity has been extinguished for decades to come.”
This conviction was the result of an investigation conducted by the Homeland Security Investigations and the Okaloosa County Sheriff’s Office. Assistant United States Attorney Jeffrey M. Tharp prosecuted the case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Seminole County Man Extradited from Croatia to Face COVID Relief Fraud ChargesRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that Don V. Cisternino (45, Chuluota) has been successfully extradited from Croatia to face charges of wire fraud, aggravated identity theft, and illegal monetary transactions. A federal grand jury in Orlando previously returned an indictment against Cisternino for these charges in February 2021. If convicted, Cisternino faces a maximum penalty of 20 years in federal prison for each wire fraud count, up to 10 years’ imprisonment for each illegal monetary transaction count, and a mandatory consecutive term of two years for the aggravated identity theft counts.
Cisternino arrived in Orlando and had his initial appearance on the charges on April 29, 2022, following which he was ordered detained pending trial.
According to the indictment, in May 2020, Cisternino fraudulently secured more than $7.2 million in emergency funds through a Paycheck Protection Program (“PPP”) loan.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted March 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in potentially forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if the business spends the proceeds on these expenses within a set time-period and uses at least a certain percentage of the loan towards qualifying business expenses.
Cisternino’s PPP loan application falsely claimed that Cisternino’s New York business, MagnifiCo, had 441 employees and monthly payroll expenses in 2019 of more than $2.8 million. In truth, MagnifiCo, had few, if any, employees other than Cisternino and his girlfriend, and MagnifiCo did not report any wages to the IRS for 2019. In support of his PPP loan application, Cisternino submitted false W-2s for MagnifiCo’s purported employees, many of which listed the names and social security numbers of actual persons who were not MagnifiCo employees and who had not authorized Cisternino to use their identities.
Once he obtained the emergency loan of $7.2 million, Cisternino did not use these funds for qualifying expenses. Instead, he spent the funds for unauthorized purposes and for his own personal enrichment, including the purchase of Lincoln Navigator, Maserati, and Mercedes-Benz vehicles, and an approximately 12,579 sq. ft. residence in Seminole County, Florida, pictured below.
“Financial fraud targeting COVID-relief funds is a serious crime,” stated U.S. Attorney Roger B. Handberg. “Our successful extradition of this defendant from Croatia back to Orlando shows that we and our law enforcement partners will pursue every lawful avenue to locate and prosecute those engaged in such fraud.”
Department of Justice Director of COVID-19 Fraud Enforcement Kevin Chambers stated, “This matter demonstrates that the Department will aggressively go after anyone who stole pandemic relief funds, whether they are in the United States or hiding overseas. I applaud the tireless work of the Middle District of Florida in achieving this important step and thank our international partners for their assistance.”
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Internal Revenue Service – Criminal Investigation, Tampa Field Office. The Justice Department’s Office of International Affairs provided valuable assistance in securing Cisternino’s arrest and extradition. It is being prosecuted by Assistant United States Attorney Chauncey A. Bratt.
Schenectady Felon Pleads Guilty to Illegally Possessing Loaded FirearmRead the Press Release
ALBANY, NEW YORK – Thomas Hendricks Jr., age 40, of Schenectady, New York, pled guilty today to illegally possessing a loaded pistol as a felon.
The announcement was made by United States Attorney Carla B. Freedman and John B. DeVito, Special Agent in Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
As part of his plea, Hendricks admitted that on June 20, 2021, he brandished a 9mm semi-automatic pistol while live-streaming on his Facebook account. He further admitted that on June 28, 2021, he possessed the same loaded pistol in his residence in the city of Schenectady, at which time it was seized by the Schenectady Police Department as part of an investigation. Two prior felony convictions, for criminal possession of a weapon and aggravated cruelty to animals, prevented Hendricks from legally possessing the firearm in New York.
Hendricks faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years when he is sentenced on September 13, 2022, by Senior United States District Judge Thomas J. McAvoy.
A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by ATF and the Schenectady Police Department, with assistance provided by the Schenectady County District Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
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.
Saugus Woman Sentenced to 54 Months in Prison for Scheme to Defraud Elderly Uncle of over $490,000Read the Press Release
BOSTON – A Saugus woman was sentenced today in federal court in Boston in connection with a scheme to defraud her elderly uncle of his life’s savings.
Jayne Carbone, 54, was sentenced by U.S. District Court Judge Richard G. Stearns to 54 months in prison and three years of supervised release. Carbone was also ordered to pay $493,279 in restitution and forfeiture. On Oct. 12, 2021, Carbone was convicted by a federal jury of four counts of wire fraud and four counts of aggravated identity theft.
Carbone was the caretaker for her uncle for over a decade from 2007 to 2018. Carbone systematically defrauded her uncle of $493,279, by using her uncle’s name and Social Security number to withdraw the funds from his bank accounts. To conceal the scheme, Carbone intercepted her uncle’s mail, removed his bank statements and then delivered him fake statements reflecting inflated balances. Once the scheme was uncovered, Carbone refused to return the funds and made various threats against her uncle and other family members.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division made the announcement today. Assistant U.S. Attorneys Christopher J. Markham, James R. Drabick and Leslie Wright of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
Santa Clarita Man Agrees to Plead Guilty to Securities Fraud for Bilking Investors Who Purchased Real Estate ‘Coupon Bonds’Read the Press Release
LOS ANGELES – A Santa Clarita resident who invested in real estate and sold “coupon bonds” that promised regular interest payments on top of principal repayment has agreed to plead guilty to a federal criminal charge for defrauding investors out of more than $1.7 million, the Justice Department announced today.
Matthew Skinner, 45, who in 2014 founded a company called Empire West Equity, Inc. and later established Simple Growth, LLC, was charged today with securities fraud in a one-count information filed in United States District Court.
Federal prosecutors today also filed a plea agreement in which Skinner agreed to plead guilty to the offense and admitted he fraudulently sold securities.
Skinner used social media platforms such as Facebook and YouTube to promote himself, falsely claiming to be an experienced and successful real estate investor with more than $200 million in deals under his belt, according to court documents.
After Empire West experienced financial troubles – Skinner was unable to pay his staff and investors – he established Simple Growth in 2018 and falsely told investors who purchased Simple Growth coupon bonds “that their money would be used to purchase real estate that [Skinner] and Empire West would develop and resell at a profit,” according to the plea agreement.
Skinner admitted that he did not intend to purchase, develop or resell real estate, and that he instead used investor funds to pay older investors, his employees and himself.
Skinner “used investor funds from those entities and accounts to pay for personal trips, his mortgage, his utility bills, cosmetic surgery, and alimony payments to his ex-wife,” he acknowledged in the plea agreement.
Simple Growth raised approximately $1,744,946 from more than 20 investors – none of whom received any of their money back.
The securities fraud charge against Skinner carries a statutory maximum penalty of 20 years in federal prison.
Skinner has agreed to surrender to federal authorities and make his initial court appearance on May 25.
The FBI conducted the investigation into Skinner.
Assistant United States Attorney Jeff Mitchell of the Major Frauds Section is prosecuting this case.
Rapid City Man Sentenced to 8 Years Imprisonment for Drug Trafficking ConspiracyRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Rapid City, SD man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on May 2, 2022 by United States District Judge Jeffrey L. Viken.
Patrick Greenfield, age 32, was sentenced to 8 years in federal prison, followed by 4 years' supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Greenfield was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on September 17, 2020. He pleaded guilty on December 6, 2021. Greenfield was responsible for distributing between 1.5 and 5 kilograms of methamphetamine in western South Dakota. Others charged in the conspiracy have been sentenced already and others have trial dates pending.
This case was investigated by the Unified Narcotics Enforcement Team (UNET), Drug Enforcement Agency, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, the Rapid City Police Department, South Dakota Division of Criminal Investigation, the South Dakota National Guard and the South Dakota Highway Patrol. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Greenfield was immediately returned to the custody of the U.S. Marshals Service.
Providence Resident Sentenced for Distributing Crack CocaineRead the Press Release
PROVIDENCE – A Providence resident who sold crack cocaine on at least three occasions while under surveillance by members of the FBI’s Safe Street Task Force was sentenced today to five years in federal prison, announced United States Attorney Zachary A. Cunha.
Michael Rodriguez, 26, pled guilty on August 31, 2021, to two counts of distribution of 28 grams or more of cocaine base and distribution of cocaine base.
According to court documents, on July 30, 2020, Rodriguez cooked crack cocaine inside a family member’s Providence apartment while two children were inside the apartment. Rodriguez later sold the crack cocaine, engaging in one transaction that day, and two other sales on later dates.
U.S. District Court Chief Judge John J. McConnell, Jr., today sentenced Rodriguez to 60 months of incarceration to be followed by four years of federal supervised release.
The matter was prosecuted by Assistant U.S. Attorney Ly T. Chin.
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Providence Man Sentenced to 10 Years in Prison for Fentanyl and Heroin TraffickingRead the Press Release
BOSTON – A Providence man was sentenced yesterday in federal court in Worcester in connection with drug trafficking activities involving fentanyl and heroin.
Darwin J. Gonzalez Reyes a/k/a “España,” 36, was sentenced today by U.S. District Court Judge Timothy S. Hillman to 10 years in prison and five years of supervised release. On Sept. 29, 2021, Gonzalez Reyes pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and 100 grams or more of heroin, one count of distribution of and possession with intent to distribute 40 grams or more of fentanyl and 100 grams or more of heroin and one count of distribution of and possession with intent to distribute 40 grams or more of fentanyl and heroin.
In June 2019, Gonzalez Reyes coordinated the delivery of 200 grams of fentanyl to an individual and, in August 2019, coordinated the delivery of another 300 grams of fentanyl and 40 grams of heroin to the same individual. Gonzalez Reyes directed another individual to make both deliveries on his behalf.
United States Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by the Worcester Police Department, Massachusetts State Police, U.S. Postal Inspection Service and the Providence Police Department. Assistant U.S. Attorney Kristen M. Noto of Rollins’ Worcester Branch Office prosecuted the case.
Prince George Man Pleads Guilty to Multimillion Dollar Fraud SchemeRead the Press Release
RICHMOND, Va. – A Prince George man pleaded guilty yesterday to tax fraud and executing a conspiracy to defraud individual lenders, financial institutions, and his employer out of almost $9 million.
According to court documents, from 2012 to 2020, Robert W. Guidry, 54, conspired with Christopher W. Elko, 51, Petersburg, to enrich themselves by, among other methods, falsely purporting to sell ownership interests in businesses where the conspirators worked, obtaining fraudulent loans and other forms of credit from individual lenders and financial institutions, and embezzling money from their employer. As part of the conspiracy, Guidry solicited and induced individuals to lend him money under false pretenses, claiming that the loans would be used for investment purposes—when, in fact, Guidry actually used the money to pay for personal expenses or to repay other lenders.
The conspirators also obtained loans and lines of credit from various financial institutions, relying on misrepresentations and deliberate omissions about Guidry’s personal financial status, such as the value of his assets and the amount of his liabilities. To repay the individual lenders and financial institutions they had fraudulently borrowed money from, and to pay their own personal expenses, the conspirators concocted a scheme to defraud their employer by misappropriating money through various frauds. For instance, the conspirators diverted customer payments owed to their employer to a bank account controlled by the conspirators, and fabricated payables to their employers’ vendors and others, depositing the payments into bank accounts they controlled.
In total, the conspirators' actions caused a total loss of more than $8.8 million to investors, banks, and their former employer.
Guidry is scheduled to be sentenced on September 7, 2022. He faces a maximum penalty of 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Darrell J. Waldon, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after U.S. District Judge David J. Novak accepted the plea.
Assistant U.S. Attorneys Kashan K. Pathan and Thomas A. Garnett and former Assistant U.S. Attorney Katherine Lee Martin prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-42.
Previously-Convicted Sex Offender Charged with Producing, Distributing, Possessing Child PornographyRead the Press Release
PROVIDENCE – A registered level three sex offender living in Narragansett who is alleged to be the administrator of at least three chat groups on a social media platform often used to download and share child pornography, appeared today in federal court in Providence on charges that he allegedly produced, distributed, and possessed child pornography, announced United States Attorney Zachary A. Cunha.
Jeremy P. Barton, 41, arrested this morning by FBI agents, is charged by way of a federal criminal complaint with production of child pornography; distribution of child pornography; and possession and access with intent to view a visual depiction of a minor in sexually explicit conduct. He was ordered detained following his appearance in federal court.
According to charging documents, in March and April 2022, an FBI online covert employee in Tennessee communicated with multiple members of an online-based social media platform, and observed users trading download links containing child sexual abuse material. The FBI employee communicated with the administrator of least three accounts, later identified by the FBI as Jeremy Barton.
It is alleged that during communications with the FBI employee, Barton discussed online interactions he had with two boys, one known to be 12 years old and another who Barton believed to be 13 or 14. It is alleged that Barton had each of the boys provide him with a video of themselves performing a sex act. Barton allegedly shared the images with the FBI employee.
On Tuesday morning, FBI agents in Rhode Island executed a court-authorized search of Barton’s residence and seized a cell phone belonging to the defendant. The phone is alleged to contain an app that was used to access the accounts allegedly administered by Barton and used when communicating with the FBI employee.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Christine D. Lowell.
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Philadelphia Father Sentenced to 13 Years for Attempted Armed Bank Robbery in Which His Sons Were Charged as AccomplicesRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Ronald DeWitt Vines, 50, of Philadelphia, PA, was sentenced to 13 years in prison and five years of supervised release by United States District Court Judge Paul S. Diamond for an armed robbery he and his accomplices, who were two of his sons, attempted to carry out in Bucks County in late 2017.
In August 2021, the defendant pleaded guilty to charges of attempted armed bank robbery, and using, carrying, and brandishing a firearm during a crime of violence, in connection with his attempt to commit the armed robbery of the PNC Bank branch on Buck Road in Holland, PA, in November 2017. To execute the robbery, Vines’ son, Elijah Vines (who was previously sentenced to five years and one month in prison), placed a handgun against the side of a bank employee’s head, forcing her to open the bank door as she arrived for work that morning. A second bank employee screamed when she realized the bank was being robbed. Vines and his accomplices, sons Elijah and Solomon Vines, quickly fled the bank in a getaway vehicle before being stopped by Northampton Township Police Officers responding to a 911 call. A search by officers of the getaway vehicle uncovered one loaded semi-automatic handgun, one loaded rifle, and two body armor vests.
“This defendant terrified and threatened the lives of bank employees who were just attempting to do their jobs, and he convinced his sons – young men with their whole lives ahead of them – to help him pull it off,” said U.S. Attorney Williams. “The simple fact is that this family is a danger to the community. This case demonstrates why our All Hands On Deck initiative is so important: we are investigating and prosecuting the most violent criminals to get them off the streets and behind bars.”
“Imagine the terror of that bank employee when the gun was put to her head,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Make no mistake, this was a violent crime, and the fact that Vines and his sons fled empty-handed doesn’t lessen the severity of their actions one bit. Fortunately, local police officers quickly saw and stopped the family’s getaway car before they could try again somewhere else. The FBI is gratified Vines is finally being held accountable for this shameful scheme in which he involved his own children.”
The case was investigated by Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Northampton Township Police Department, and is being prosecuted by Assistant United States Attorney José R. Arteaga.
Orangeburg Man Indicted on Federal Gun Charges Detained After Contested Bond HearingRead the Press Release
Columbia, South Carolina --- Marcus Duran Singleton, 38, of Orangeburg, was indicted for being a felon in possession of a firearm and ammunition and has been detained following a contested bond hearing in federal court in Columbia.
A federal Grand Jury in Columbia indicted Singleton following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Orangeburg Department of Public Safety (ODPS), the Norway Police Department (NPD), and the South Carolina Law Enforcement Division (SLED). Singleton was charged with being a felon in possession of a firearm and ammunition. ATF, with the assistance of NPD and SLED, arrested Singleton, and he appeared in Court upon his request for a bond. After a contested hearing, United States Magistrate Judge Paige J. Gossett ordered Singleton detained without bond pending resolution of the federal charge against him.
During the hearing, an ATF special agent testified that Singleton was allegedly involved in unlawfully pointing and presenting of a firearm at the employees of the fast-food establishment, Cook-Out, located in Orangeburg, on September 4, 2021. As a result of the federal charge, Singleton faces a maximum term of imprisonment of 10 years, a fine of $250,000, and court-ordered supervision to follow any term of imprisonment.
The offense listed in the indictment is merely an allegation, and Singleton is presumed innocent unless and until proven guilty.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) initiative, 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.
Assistant United States Attorneys Elle E. Klein and Elliott B. Daniels of the Columbia office are prosecuting the case.
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North Carolina man sentenced to additional prison time after lying during sentencing in previous case involving theft of company’s trade secretsRead the Press Release
SAVANNAH, GA: A North Carolina man has been sentenced to additional time in prison after being convicted of lying during a prior sentencing for conspiring to steal trade secrets from aircraft manufacturing companies.
Craig German, 60, of Kernersville, N.C., was sentenced to 20 months in prison for Perjury and False Statements to a Government Agency, in addition to the 70-month prison term he already was serving after pleading guilty in February 2020 to Conspiracy to Steal Trade Secrets, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge also fined R. Stan Baker also ordered German to pay a fine of $1,500.
“Craig German and his co-conspirators admitted engaging in illegal and deceptive practices to steal information from private businesses, and then German lied while being sentenced for those crimes,” said U.S. Attorney Estes. “Substantial time behind bars will hold him accountable for his dishonesty.”
German, Gilbert Basaldua, 63, of Hilton Head, S.C., and others were indicted in May 2019 to charges that they conspired to steal proprietary information from aircraft companies for which they worked inside and outside the Southern District, and then used that information to speed the design and regulatory review process for a competing aircraft company.
During his sentencing hearing in 2020, German lied when he testified under oath and denied having copied more than 15,000 proprietary engineering drawings and documents onto a removable storage device while he was employed at an aircraft manufacturing company. German also lied to the FBI during a voluntary meeting when he emphatically denied transferring more than 15,000 proprietary engineering drawings and documents to a removable storage device.
German’s co-defendant awaits sentencing. After two days of trial in September 2021, Basaldua pled guilty to Conspiracy to Steal Trade Secrets and Interstate Transportation of Stolen Property. He faces up to 10 years in prison on each charge, along with substantial financial penalties.
“False testimony undermines the justice process and can have dire consequences on the integrity of the justice system,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “Hopefully this additional sentence demonstrates how seriously the FBI takes perjury and deters other from attempting to deceive the justice system in the future.”
The case was investigated by the FBI and prosecuted for the United States by Assistant U.S. Attorneys Jennifer G. Solari and Steven H. Lee.
Nigerian citizen pleads guilty to COVID-19 unemployment fraud on Washington and 17 other statesRead the Press Release
Tacoma – A 45-year-old resident of Lekki, Nigeria, pleaded guilty today in U.S. District Court in Tacoma to wire fraud and aggravated identity theft for using stolen identities to claim hundreds of thousands of dollars in pandemic-related unemployment benefits, announced U.S. Attorney Nick Brown. Abidemi Rufai has been in custody since his arrest at New York’s JFK airport in May 2021. At the time of his arrest, Rufai was the Special Assistant to the Governor of Nigeria’s Ogun State.
According to the plea agreement, since 2017, Rufai unlawfully obtained the personal identifying information for more than 20,000 Americans to submit more than $2 million in claims for federally funded benefits under a variety of relief programs. The various agencies involved paid out more than $600,000.
The largest amount of fraud was committed against the Washington State Employment Security Department, which paid out $350,763 in fraudulent pandemic unemployment claims to accounts controlled by Rufai. Rufai also submitted fraudulent pandemic unemployment claims in at least 17 other states.
Rufai also defrauded the Small Business Administration (SBA) by attempting to obtain Economic Injury Disaster loans (EIDL) tied to the COVID-19 pandemic. Between April 8, 2020, and June 26, 2020, he submitted 19 fraudulent EIDL applications. SBA paid out $10,000 based on the applications.
Between 2017 and 2020, Rufai attempted to obtain more than $1.7 million in IRS tax refunds by submitting 675 false claims. The IRS paid out $90,877 on these claims.
Rufai’s efforts to enrich himself with false disaster claims did not start with COVID-19. In September and October 2017, he submitted 49 disaster relief claims connected to Hurricane Harvey and Hurricane Irma. He filed $24,500 in false claims and was paid on 13 claims totaling $6,500.
Rufai has agreed to pay full restitution to the defrauded agencies.
Wire fraud in relation to a presidentially declared major disaster or emergency is punishable by up to 30 years in prison. Aggravated identity theft is punishable two years in prison to follow any prison term imposed on another charge. Prosecutors have agreed to recommend no more than 71 months in prison. The recommendation is not binding on U.S. District Judge Benjamin H. Settle, who will determine the appropriate sentence on August 15, 2022, after considering the sentencing guidelines and other statutory factors.
This case was investigated by the FBI, with assistance from the Department of Labor Office of Inspector General, Internal Revenue Service Criminal Investigations, Department of Homeland Security Office of Inspector General, and the United States Small Business Administration Office of the Inspector General. The Washington Employment Security Department is cooperating in the investigation.
The case is being prosecuted by Assistant United States Attorneys Seth Wilkinson and Cindy Chang of the Western District of Washington.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Newark Man Sentenced to 10 Years in Prison for Role in Drug Trafficking OrganizationRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 120 months in prison for his role in a drug trafficking conspiracy, U.S. Philip R. Sellinger announced.
Rahim Jackson previously pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an indictment charging him with conspiracy to distribute heroin. Judge Martinotti imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
From 2018 through July 31, 2019, Jackson and others conspired to distribute and possess with intent to distribute at least one kilogram of heroin. Jackson admitted using the Rotunda Recreation and Wellness Center on Clifton Avenue, where he was employed, in furtherance of the conspiracy.
In addition to the prison term, Judge Martinotti sentenced Jackson to five years of supervised release.
U.S. Attorney Sellinger credited special agents of Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Susan A. Gibson in Newark; members of the Newark Department of Public Safety, under the direction of Director Brian O’Hara; and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s sentencing.
He also thanked the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens II, the Rockaway Township Police Department, under the direction of Chief Martin McParland, and special agents from the ATF, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark.
The Broadway Townhomes investigation was part of the Newark Violent Crime Initiative (VCI). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorney Kendall Randolph of the U.S. Attorney’s Office’s OCDETF Unit in Newark and Assistant U.S. Attorney Heather Suchorsky of the Economic Crimes Unit.
New Orleans Man Indicted for Violation of the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – JARON MCCREE, age 27, a resident of Orleans Parish, was charged on April 29, 2022 in a one-count indictment by a federal grand jury for possessing a firearm while being a convicted felon, announced U. S. Attorney Duane A. Evans.
If convicted, MCCREE faces a maximum term of imprisonment of ten (10) years, a fine of up to $250,000.00, up to three (3) years of supervised release following any term of imprisonment and a $100 mandatory special assessment fee
U. S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
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 Federal Bureau of Investigation and the New Orleans Police Department. The case is being prosecuted by Assistant U. S. Attorney Mike Trummel.
New Haven Man Sentenced to Federal Prison for Possessing Sawed-Off RifleRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that ANGEL RODRIGUEZ-MENDEZ, 25, of New Haven, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 27 months of imprisonment, followed by three years of supervised release, for illegal possession of an unregistered sawed-off rifle.
According to court documents and statements made in court, Rodriguez-Mendez was arrested on August 26, 2020, after a court-authorized search of his residence on East Street in New Haven revealed a loaded sawed-off rifle, a loaded handgun, ammunition, approximately 37 wax folds containing a mixture of heroin and cocaine, and approximately 74 grams of cocaine. Rodriguez also possessed approximately 20 grams of cocaine on his person.
On November 10, 2021, Rodriguez-Mendez pleaded guilty to one count of possession of an unregistered firearm.
Rodriguez-Mendez, who is released on a $100,000 bond, is required to report to prison on June 28.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Drug Enforcement Administration and New Haven Police Department. The case was prosecuted by Assistant U.S. Attorney Kenneth L. Gresham.
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.
New Bedford Man Sentenced for Firearm and Cocaine OffensesRead the Press Release
BOSTON – A New Bedford man was sentenced today in federal court in Boston for illegally possessing a firearm and selling cocaine.
Khyron Thompson, 32, was sentenced by U.S. District Court Judge Denise J. Casper to 57 months in prison and three years of supervised release. On Dec. 13, 2021, Thompson pleaded guilty to one count of being a felon in possession of firearm and ammunition and one count of distribution of and possession with intent to distribute cocaine.
On Feb. 13, 2020, Thompson distributed cocaine and possessed a loaded .32 caliber Hi-Point pistol firearm with an obliterated serial number and six rounds of ammunition. Thompson is prohibited from possessing a firearm due to multiple previous state convictions including assault and battery.
United States Attorney Rachael S. Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Assistant U.S. Attorneys Evan Gotlob and Kenneth G. Shine of Rollins’ Major Crimes Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Nebraska Man Pleads Guilty to Charge Related to Kansas Bank RobberyRead the Press Release
TOPEKA, KAN. – A Nebraska man pleaded guilty to one count of use of a firearm during a crime of violence.
According to court documents, in February 2021, Cody Deichen, 26, of Hastings, Nebraska, admitted to aiding and abetting in the brandishing and use of a home built .223 caliber AR-15 style rifle during a bank robbery at Guaranty State Bank on South Main Street in Burr Oak, Kansas.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. A sentencing hearing is scheduled for July 27.
The FBI and the Kansas Bureau of Investigation are investigating the case.
Assistant U.S. Attorney Sara Walton is prosecuting the case.
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Multi-State Sam’s Club Theft Ring Defendants Sentenced to PrisonRead the Press Release
COLUMBUS, Ga. – Several Columbus-area residents involved in a multi-state Sam’s Club theft ring amounting to $900,567 in loss to the company were sentenced to federal prison for their crimes.
Brian Cowman, 46, of Fortson, Georgia, was sentenced to serve 46 months in prison to be followed by three years of supervised release after he previously pleaded guilty to two counts of conspiracy to transport stolen goods. Marcel Crawford, 68, of Columbus, was sentenced to serve 33 months in prison to be followed by three years of supervised release and Ernest Mitchell, 55, of Columbus, was sentenced to serve 51 months in prison to be followed by three years of supervised release after they previously pleaded guilty to one count conspiracy to transport stolen goods. Mildred Alarcon, 48, of Fortson, previously pleaded guilty to one count of false statements and was sentenced to three years of probation. U.S. District Judge Clay Land handed down the sentences on April 27. There is no parole.
“Brian Cowman profited from this theft ring, reaping hundreds of thousands of dollars, even making a down payment for a new home with the illegal proceeds. These types of large-scale schemes have negative consequences for those of us who do the right thing, including increased prices of goods, business closings and job loss,” said U.S. Attorney Peter D. Leary. “We will take the necessary steps to hold accountable those individuals who scam our citizens.”
“These defendants operated a complex multi-state theft ring that was costly to the economic well-being of our communities,” said Clint Bush, Resident Agent in Charge, United States Secret Service, Albany, Georgia Resident Office. “The United States Secret Service, along with our state, local and federal law enforcement partners will continue to investigate, arrest and support the successful prosecution of the criminals who choose to commit this and other types of fraud in our community and nation.”
According to court documents and evidence presented in court, Cowman and Crawford conspired to transport and sell stolen goods taken from numerous Sam’s Club stores located throughout the southeastern and midwestern United States between March 2018 and Feb. 2019, with the assistance of the remaining co-defendants. Often financed and directed by Cowman, Crawford and his co-conspirators traveled to Sam’s Clubs stores in Georgia, Alabama, Mississippi, Louisiana, Florida, Tennessee, North Carolina, South Carolina, Ohio, Indiana and Kentucky, where they would steal various items including ink cartridges, Bose speakers, razors, DVDs, and tick and flea medications and collars for pets. The co-defendants often committed their crimes by emptying large boxes filled with inexpensive paper goods and filling them with more expensive items, paying only the cost of the boxed item and walking out of the store with the pilfered goods.
Following the theft, Crawford delivered the stolen goods to Cowman’s home in Columbus or a storage facility rented by Cowman. Cowman knew many of the items were stolen. Cowman would then sell the goods on his eBay store known as “rockislandoutdoorsllc." Cowman conducted at least 6,474 sales transactions between March 2017 and Feb. 2019; many of these sales were of stolen Sam’s Club merchandise. Cowman is known to have transferred a total of $412,900 from his PayPal account into his personal bank account in 2018 and the first quarter of 2019. A federal search warrant executed at Cowman’s home and storage facility recovered three boxes full of stolen goods plus stolen items valued at approximately $61,000. Cowman reaped the vast majority of the proceeds himself; Crawford estimated he received between $30,000 and $45,000 from Cowman in the year and a half that he sold Cowman stolen merchandise, proceeds from which Crawford used to pay his associates participating in the theft. Cowman used the money for personal expenses, including for a down payment on a new home in Harris County, Georgia. A forensic investigation determined that the total loss to Sam’s Club is $900,567.01.
The following two co-defendants have been indicted by a federal grand jury and remain at-large:
Christopher Brown, 50, of Phenix City, Alabama, and Orlando Brooks, 53, of Columbus, are both charged with one count of conspiracy to transport stolen goods. If convicted, Brown and Brooks face a maximum sentence of five years imprisonment and a fine of up to $250,000.
This case was investigated by the United States Secret Service (USSS) and the Columbus Police Department.
Assistant U.S. Attorney Amy Helmick is prosecuting the case.
Movie Producer Found Guilty in Film Financing SchemeRead the Press Release
Miami, Florida – Following a six-week trial, a federal jury in Fort Lauderdale has convicted a 44-year-old former actor and movie producer from Bartlesville, Oklahoma of conspiracy, wire fraud, and money laundering for his role in a financing scheme that defrauded movie and theatre producers out of more than $60 million.
According to court records and evidence introduced during trial, Jason Van Eman held himself out as a film producer and financier, offering to fund independent motion pictures, Broadway shows, music festivals, and other productions. Van Eman promised the victims (producers and others seeking financing), that his partner (a co-conspirator named Benjamin McConley) would match any cash that the victims contributed to their projects. Then, with the combined starting capital (which made the projects more attractive to investors), McConley would apply for and secure financing from financial institutions.
Based on these lies, victims sent over $60 million to accounts controlled by the fraudsters. Contrary to what Van Eman promised victims, his partner never matched their cash contributions or applied for financing. Instead, Van Eman and his co-conspirators stole the victims’ money by transferring it to their personal and corporate bank accounts, often within days of deposit. To make the scam more believable, Van Eman and McConley recruited Benjamin Rafael, a bank employee, whose role was to assure victims that their cash contributions had been matched and that their money was secure – neither of which was true.
Van Eman, McConley, and Rafael used the stolen money to purchase luxury automobiles, personal watercraft, real estate, jewelry, home furnishings, designer clothes, hotel accommodations, and private and commercial air travel. Van Eman used some of the stolen cash to fund movies in which he was cast.
Van Eman is scheduled to be sentenced on July 21, at 10 a.m. before U.S. District Judge Raag Singhal. He faces up to several decades in prison.
McConley previously pled guilty in this case and was sentenced to a prison term of 13 years. Rafael was sentenced to 42 months’ imprisonment for participating in two frauds: the first, the film financing scheme; the second, concealing his criminal history on applications for COVID-19 relief.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), announced the guilty verdict.
FBI Miami Field Division investigated this case. Assistant U.S. Attorneys Christopher Browne and Yisel Valdes are prosecuting it. Assistant U.S. Attorney Emily Stone is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 19-cr-20447.
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Monongalia County man accused of producing child pornographyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Oliver Matheny, of Maidsville, West Virginia, was indicted today on child pornography charges, United States Attorney William Ihlenfeld announced.
Matheny, 48, was indicted today on three counts of “Attempted Production of Child Pornography – Previous Conviction” and two counts of “Production of Child Pornography – Previous Conviction.” Matheny was previously convicted of sexually abusing a minor in Florida in 1996. He is accused of using minors to produce child pornography from February to September 2018 in Monongalia County.
Matheny faces at least 25 years and up to 50 years of incarceration and a fine of up to $250,000 for each charge. 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 FBI investigated.
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.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Mexican National Sentenced to More Than 15 Years in Prison for Role in Drug Trafficking Organization that Manufactured and Attempted to Distribute 63 Kilos of Meth in Northern OhioRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that Aquileo Perez-Pineda, 52, a Mexican national previously residing in Georgia, was sentenced on Friday, April 29, 2022, by U.S. District Judge Sara Lioi to 188 months or more than 15 years in prison after Perez-Pineda pleaded guilty to his role in a conspiracy to manufacture, possess and distribute large quantities of methamphetamine in Northern Ohio.
According to court documents, from January 2018 through March 2018, Perez-Pineda was part of a drug trafficking organization that conspired to manufacture, possess and distribute approximately 63 kilograms – more than 138 pounds – of methamphetamine in the Northern District of Ohio.
During this time, law enforcement officials had begun an investigation into a drug trafficking organization that established a system to transport liquid methamphetamine from Mexico to the Northern District of Ohio to be manufactured and cooked into crystal methamphetamine and distributed, with the cash proceeds to be sent back to Mexico. Court documents show that co-conspirators hid the liquid methamphetamine in the gas tanks of tractor-trailers.
According to court records, Perez-Pineda, a trusted methamphetamine cook for the Mexican traffickers, came to Ohio from Georgia to coordinate the manufacturing of crystal methamphetamine, converting the liquid methamphetamine to crystal methamphetamine. The manufacturing took place at warehouses in Aurora and Hudson, Ohio, where he was assisted by Hector Manuel Ramos-Nevarez and Gilbert Treviso-Garcia, two other Mexican nationals who had previously come to Ohio.
In the early morning hours of March 24, 2018, law enforcement officials with the DEA executed a search warrant at the warehouse in Hudson as part of their investigation into the drug trafficking organization, seizing a large quantity of crystal methamphetamine.
Immediately after the search, the co-conspirators, unaware that law enforcement had taken the drugs, came to suspect Shauheen Sohrabi of stealing the drugs.
Co-conspirators Deon Johnson and Tyrone Rogers discussed with suppliers in Mexico what to do about the theft, including possible retribution on Sohrabi. Johnson had coordinated the connection between suppliers in Mexico and co-conspirators in Northeast Ohio, all while serving a sentence for a prior crime in state prison.
After the Mexican suppliers told Johnson that they could be killed in Mexico for losing such a large quantity of drugs, Johnson told Rogers, “The call is made; he’s through,” referring to Sohrabi. Rogers then told another individual, “it’s over for” Sohrabi, explaining that “they already put the green light on him, it’s a wrap. I can’t save him now.”
Investigators then intervened, arresting members of the drug trafficking organization who were searching for Sohrabi. Authorities then searched the Hudson warehouse, where they seized additional methamphetamine in its liquid form.
During the two searches, officials seized approximately 63 kilograms of methamphetamine.
At the time investigators intervened in March 2018, Perez-Pineda had not been identified and had left the area. However, less than two months later, according to public reports, Perez-Pineda was arrested in the middle of another large-scale methamphetamine-manufacturing process in Harnett County, North Carolina. In that incident, Harnett County investigators seized 120 gallons of liquid methamphetamine, or more than 450 kilograms, reported to have a street value of approximately $90 million.
Perez-Pineda is also serving a separate 70-month sentence as a result of that incident. Perez-Pineda’s 188-month sentence has been ordered to run consecutive to that sentence.
Additionally charged in this matter as co-conspirators are Johnson, Rogers, Sohrabi, Ramos-Nevarez, Treviso-Garcia, Michelle Dailey, and Joseph Terlizzi, who have all pled guilty and been sentenced for their roles in the drug trafficking organization. Johnson was sentenced to 170 months in prison in March of this year.
Mexico-based supplier Jesus Cota-Medina has also been charged, and his matter remains pending. Cota-Medina is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the DEA. This case was prosecuted by Assistant U.S. Attorneys Elliot D. Morrison and Kevin P. Pierce.
Man from the Ring Thunder Community Indicted for Sexual Abuse of a Minor and Aggravated IncestRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Ring Thunder, South Dakota, man has been indicted by a federal grand jury for Sexual Abuse of a Minor and Aggravated Incest.
Marshall Knife, age 38, was indicted on April 12, 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 29, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in federal prison and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between January 1, 2019, and November 30, 2021, near Ring Thunder, Knife knowingly engaged in, and attempted to engage in, a sexual act with a minor female.
The charges are merely accusations and Knife is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Abby Roesler is prosecuting the case.
Knife was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Maine Man Pleads Guilty to Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD - Sean Chaput, 34, of Bangor, Maine, pleaded guilty on Monday in federal court to conspiracy to possess fentanyl with intent to distribute, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, on November 27, 2020, a New Hampshire state police trooper stopped Chaput’s car for a traffic violation. Over the course of the encounter, the trooper developed suspicions that the car contained evidence of drug trafficking. The trooper obtained a search warrant for the vehicle, and subsequently located cylinders of pressed powder hidden in the car that contained 762 grams of fentanyl. The defendant later admitted to driving to Massachusetts to purchase the fentanyl found in the vehicle so he could bring it to Maine to be sold.
Chaput is scheduled to be sentenced on August 11, 2022.
“The U.S. Attorney’s Office works closely with our law enforcement partners to identify and prosecute the drug dealers who are distributing fentanyl and other deadly drugs,” said U.S. Attorney Young. “I am grateful to the New Hampshire State Police for stopping the distribution of this very substantial amount of fentanyl that could have endangered many lives.”
This matter was investigated by the New Hampshire State Police and the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Anna Dronzek.
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Jury Convicts Dutch National for Participation in Terror Financing RingRead the Press Release
ALEXANDRIA, Va. – Today a federal jury convicted a Dutch woman on charges for her participation in a terrorist financing ring in support of the Somalia-based terrorist group al-Shabaab.
According to court records and evidence presented at trial, Farhia Hassan, 38, was involved with a group of women from more than a dozen countries around the world who ran a fundraising ring to provide financial support to al-Shabaab from in or about February 2011 through in or about July 2014. Through conduits in Nairobi, Kenya, and Hargeisa, Somalia, the group of women funneled cash payments via money remitters directly to members of the terrorist group. According to members of the conspiracy, the money was used to fund safehouses and to purchase trucks and weaponry in support of al-Shabaab. The women coordinated the payments using online chatrooms.
Hassan, in particular, was involved in fundraising in the Netherlands under false pretenses by representing to donors that money was being collected to fund charitable ventures, such as schools for orphans, when it was in fact being funneled to terrorists. Two U.S.-based members of the fundraising ring, Muna Osman Jama, 41, of Reston, and Hinda Osman Dhirane, 51, of Kent, Washington, were convicted in 2016 for their participation and were sentenced to 12 and 11 years imprisonment, respectively.
Hassan was convicted of conspiracy to provide material support to a designated foreign terrorist organization. She faces a maximum penalty of 15 years in prison when sentenced on July 22. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Anthony J. Trenga accepted the verdict.
Assistant U.S. Attorneys James P. Gillis and Danya E. Atiyeh are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-230.
Jury Convicts Dutch National for Participation in Terror Financing RingRead the Press Release
Today, a federal jury convicted a Dutch woman on charges stemming from her participation in a terrorist financing ring in support of the Somalia-based terrorist group al-Shabaab.
According to court records and evidence presented at trial, Farhia Hassan, 38, was involved with a group of women from more than a dozen countries around the world who ran a fundraising ring to provide financial support to al-Shabaab from in or about February 2011 through in or about July 2014. Through conduits in Nairobi, Kenya, and Hargeisa, Somalia, the group of women funneled cash payments via money remitters directly to members of the terrorist group. According to members of the conspiracy, the money was used to fund safehouses and to purchase trucks and weaponry in support of al-Shabaab. The women coordinated the payments using online chatrooms.
Hassan, in particular, was involved in fundraising in the Netherlands under false pretenses by representing to donors that money was being collected to fund charitable ventures, such as schools for orphans, when it was in fact being funneled to terrorists. Two U.S.-based members of the fundraising ring, Muna Osman Jama, 41, of Reston, Virginia, and Hinda Osman Dhirane, 51, of Kent, Washington, were convicted in 2016 for their participation and were sentenced to 12- and 11-years’ imprisonment, respectively.
Hassan was convicted of conspiracy to provide material support to a designated foreign terrorist organization. She faces a maximum penalty of 15 years in prison when sentenced on July 22. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Jessica D. Aber for the Eastern District of Virginia, Assistant Director Timothy Langan of the FBI’s Counterterrorism Division, and Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement after U.S. District Judge Anthony J. Trenga accepted the verdict.
Assistant U.S. Attorneys James P. Gillis and Danya E. Atiyeh for the Eastern District of Virginia are prosecuting the case, with valuable assistance provided by Trial Attorney Kathleen Campbell of the National Security Division’s Counterterrorism Section.
The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition from the Netherlands.
Jane E. Young Sworn in as United States Attorney for the District of New HampshireRead the Press Release
CONCORD – The United States Attorney’s Office for the District of New Hampshire announced that the Honorable Jane E. Young was sworn in on Monday as the United States Attorney for the District of New Hampshire. Chief U.S. District Judge Landya McCafferty administered the oath of office at the federal courthouse in Concord.
U.S. Attorney Young is the 58th U.S. Attorney for the District. She was nominated by the President on January 26, 2022 and confirmed by the U.S. Senate on April 27, 2022. As the U.S. Attorney, Ms. Young is the chief federal law enforcement officer in New Hampshire.
Jane E. Young served as the Deputy Attorney General for the New Hampshire Department of Justice from 2018 to 2022. She has held various leadership positions in the office since she joined in 1992, including Director of the Division of Public Protection from 2017 to 2018, Chief of the Criminal Justice Bureau from 2007 to 2017, and Chief of the Drug Unit from 2006 to 2007. From 1990 to 1992, Ms. Young served as an Assistant County Attorney in the Hillsborough County Attorney’s Office.
Ms. Young received her J.D. from the University of New Hampshire Franklin Pierce School of Law in 1989 and her B.A. from Saint Anselm College in 1986.
“I thank President Biden and the Senate for the privilege to serve the State of New Hampshire as the United States Attorney,” said U.S. Attorney Young. “I also thank Senator Shaheen and Senator Hassan for recommending me to the President. I look forward to serving the people of New Hampshire in my new role and will work tirelessly to ensure that the federal laws are enforced and that those who violate those laws are held accountable.”
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Ithaca Man Pleads Guilty to Receipt and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Leroy Reed, age 53, of Ithaca, New York, pled guilty today before Senior United States District Judge Thomas J. McAvoy to one count of receipt of child pornography and one count of possession of child pornography, announced United States Attorney Carla B. Freedman, Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI) and New York State Police Superintendent Kevin P. Bruen.
Reed, who remains detained pending his sentencing scheduled for September 20, 2022, faces at least 15 years in prison and up to 60 years imprisonment on the charges. The Court will also impose a term of supervised release of between 5 years and life. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
As part of his guilty plea, Reed, admitted that from February 2020 to March 2021 he used a computer to download child pornography over the internet using peer-to-peer file sharing software. A subsequent search of Reed’s apartment revealed that he was in possession of 55 images and 94 video files depicting child pornography. Reed is a registered sex offender who was convicted in 2002 of Rape in the First Degree involving a victim who was 15 years old.
Reed’s case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI), with assistance from the Tompkins County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Inmate Pleads and is Sentenced to 18 Months in Prison for Possessing a Prohibited Object in PrisonRead the Press Release
JOHNSTOWN, Pa. – An inmate at Cambria County Prison pleaded guilty in federal court in Johnstown to a charge of possession of a prohibited object in prison, and immediately following, was sentenced to 18 months in prison, followed by 1 year of supervised release, United States Attorney Cindy K. Chung announced today.
Peter Augustus Wright, 43, pleaded guilty to Count One of the Indictment before United States District Judge Stephanie L. Haines.
In connection with the guilty plea, on October 22, 2020, Wright, while an inmate at Moshannon Valley Correctional Center, possessed a cellular telephone, as well as, a six-inch sharpened toothbrush, a weapon.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
Ms. Chung commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Wright.
Idaho I.T. Professional Charged with Misappropriating Pre-Publication Investment Recommendations for Insider Trading SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a complaint charging DAVID STONE with securities fraud in connection with an insider trading scheme. STONE was arrested yesterday and will be presented today in the United States District Court for the District of Oregon.
U.S. Attorney Damian Williams said: “As alleged, David Stone used his computer skills to extract pre-publication stock picks from an investment advice service so he could beat the markets and generate millions in trading profits. Though Stone may have thought that he could hide his scheme behind IP addresses, other losing trades, and donations to his church, he was wrong. This prosecution reflects my office’s commitment to market integrity and a fair playing field for investors.”
FBI Assistant Director Michael J. Driscoll said: “As we allege here today, Mr. Stone exploited his unauthorized access to market-moving stock recommendations to make trades in advance of their release. In relaying tips to another individual, he acknowledged his actions might be illegal and even provided advice to the individual on avoiding detection. As today's action demonstrates, the FBI and our partners remain committed to protecting the integrity of our financial markets from the unscrupulous actions of those who seek to reap illegal gains from them.”
According to the allegations in the complaint unsealed today in Manhattan federal court:[1]
From 2020 up to his arrest in 2022, DAVID STONE exploited market-moving stock recommendations made by an investment recommendation service (“Advisor-1”) before those recommendations were released to paying subscribers. STONE, an information technology (“I.T.”) professional, accessed Advisor-1’s computing system without authorization and viewed information relating to Advisor-1’s recommendations before they were announced to Advisor-1’s paying subscribers.
Advisor-1’s stock recommendations typically, but not always, lead to higher closing prices for the recommended stock as compared to the prior day’s closing price. By trading on those recommendations before they were announced, STONE was able to obtain significant profits unavailable to other market participants. In fact, since in or about November 2020, brokerage accounts associated with STONE traded ahead of Advisor-1 recommendations on more than a dozen occasions for approximately $3 million in gross gains.
In addition to his own trading, STONE supplied trading tips to at least one other person (“Tipee-1”). Between on or about January 20, 2021 up to and including on or about March 17, 2022, on approximately 45 different days, STONE sent emails to Tipee-1 providing stock names and/or ticker symbols ahead of Advisor-1 announcements of stock recommendations to its paying subscribers. Since in or about January 2021, a brokerage account associated with Tipee-1 traded ahead of Advisor-1 recommendations on more than a dozen occasions. As a result of that trading, Tipee-1 profited more than approximately $2.7 million.
Before providing tips to Tipee-1, STONE provided Tipee-1 with “guidelines” for avoiding detection and for donating some of the trading profits to a church. Specifically, on or about January 16, 2021, STONE sent an email to Tipee-1 that included the following:
I’m ok with sharing the weekly trades with you. I have used it so far to generate a significant amount of money and I'm sure you will be able to as well. There is a small possibility that what we are doing could be considered insider trading. [Advisor-1] uses only public information about to make its recommendations and even the recommendations are behind a paywall so it is a stretch to call it insider trading but it certainly behaves like it because it almost guarantees favorable price moves at a certain time.
So with that in mind these are the guidelines I am following:
. . . .
* Purchase a [Service-1] subscription from [Advisor-1] . . . and open some long term position of some of the recommendation that appeal to you
* Do other trades besides just what I tell you. If all your trades are up 5x and you never make a loosing trade it may call attention of regulators. . . .
* Pay your taxes. These trades are short term capital gains and are taxed at your regular income tax rate. You may get a significant tax bill come April 15 2022.
* Pay your tithe. This extra income has been a subject of regular prayer for me. I anticipate I will not need to keep my regular job for long when we are on the mission field. I have opened a donor advised fund which make it easy to contribute large sums of money or stocks directly and then schedule donations to be made to my church and any other charity I choose. It makes it easier to make anonymous donations as well which I feel is important.
. . . .
With these guidelines in place I can email the recommendations as soon as I know. I feel [a particular email provider] will be a more secure form of communication if it works for you.
* * *
STONE, 36, of Nampa, Idaho is charged with one count of securities fraud, which carries a maximum sentence of 25 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 work of the FBI. Mr. Williams also thanked the U.S. Securities and Exchange Commission, which today filed a parallel civil action.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Samuel P. Rothschild and Andrew Thomas are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Huntington Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man was sentenced to three years and one month in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm.
According to court documents and statements made in court, law enforcement officers were conducting surveillance on a residence on Norway Avenue in Huntington as part of a shooting investigation on July 7, 2021. Officers observed a vehicle believed to have been involved in a shooting and subsequently performed a traffic stop on the vehicle. The driver was identified as Jabar Markeith Sellers, 32, and a firearm was found in plain view in the driver’s door panel.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Sellers was aware he was prohibited from possessing a firearm because of felony convictions in Franklin County, Ohio, Court of Common Pleas for aggravated assault in June 2011 and possession of heroin in November 2016.
United States Attorney Will Thompson made the announcement and commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Huntington Violent Crime and Drug Task Force, and the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Ryan A. Keefe prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-120.
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