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Newest first across public DOJ and U.S. Attorney press releases.
27 April 2022
Hollygrove Man Sentenced for Drug, Carjacking, and Firearm ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – BRIAN JONES (JONES), a/k/a “Turk,” age 26, was sentenced in federal court today to 30 years imprisonment for violations of the Federal Controlled Substances Act ,Title 21 United States Code, Sections 841(a)(1), 841(b)(1)(A), and 846, carjacking, Title 21 United States Code, Section 2119, and use of a firearm in furtherance of a crime of violence, Title 21 United States Code Section 924(c)(1)(A)(iii)JONES previously pled guilty to a three count second superseding indictment. on October 19, 2021
According to court documents, in 2017 and 2018, JONES and his co-conspirators sold drugs in the Hollygrove area of New Orleans in and around a neighborhood corner-store.
In October 2017, JONES pistol-whipped and shot a victim multiple times from point blank range, and then ran the victim over with a car. The victim survived.
This case was brought as part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Duane A. Evans praised the work of the Federal Bureau of Investigation’s New Orleans Gang Task Force. The prosecution was handled by Assistant United States Attorneys Kathryn McHugh and Myles Ranier.
Hertford County Methamphetamine Cook ConvictedRead the Press Release
ELIZABETH CITY, N.C. – A federal jury convicted Craig Wayne Simpson, 53, of Como, North Carolina, yesterday on multiple drug charges. Simpson will be sentenced on July 11, 2022, and is facing a mandatory minimum of 5 years and a maximum of 40 years in prison.
“This conviction was a result of a coordinated effort by federal, state and local law enforcement officers to put those responsible for producing and peddling dangerous drugs behind bars and keep our communities safe,” said Michael Easley, United States Attorney for the Eastern District.
Simpson was convicted of the following charges:
- Conspiracy to Manufacture, Distribute and Possess with the Intent to Distribute Fifty grams or more of a mixture and substance containing a Detectable mount of Methamphetamine;
- Possession with the Intent to Distribute Fifty grams or more of a mixture and substance containing a detectable amount of methamphetamine;
- Possession of Equipment, Chemicals, Products and Material with the intent to Manufacture a Controlled Substance; and
- Using and Maintaining a place for the purpose of Manufacturing Methamphetamine.
According to court records and evidence presented at trial, Simpson, conspired with others to manufacture and distribute methamphetamine from 2013 to 2019. In 2016, Simpson was stopped at a Hertford County checkpoint and law enforcement discovered a bag containing materials for making methamphetamine along with 170 grams of liquid methamphetamine. In 2019, Simpson’s property was searched, and powder methamphetamine and more liquid methamphetamine were seized. Law enforcement also recovered all the chemicals, materials, and tools for manufacturing methamphetamine. These were stashed throughout the residence and vehicles present on the property. Records presented to the jury showed an extensive pseudoephedrine purchase history by Simpson at local pharmacies from 2013 to 2019. Pseudoephedrine is a required ingredient for manufacturing methamphetamine the way Simpson did.
This investigation is part of operation “Speed Bump” which is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. Operation Speed Bump targeted individuals engaged in the dangerous and hazardous production of methamphetamine in clandestine laboratories throughout Eastern North Carolina. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Terrence W. Boyle accepted the verdict. The North Carolina State Bureau of Investigations, Hertford County Sheriff’s Office, and the Ahoskie Police Department are investigating the case and Special Assistant U.S. Attorney Tyler Lemons and Assistant U.S. Attorney Dennis Duffy are prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.2:20-cr-00018-BO-1.
Harvey Woman Sentenced for Conspiring to Stage Automobile Collision to Defraud Insurance and Trucking CompaniesRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that DONISESHA LEE, a/k/a DONISHA LEE (“DONISHA LEE”), age 32, of Harvey, Louisiana, was sentenced today for Conspiracy to Commit Mail Fraud, in violation of Title 18, United States Code, Section 371, by United States District Court Judge Sarah S. Vance, arising out of a staged automobile collision with a tractor-trailer occurring in New Orleans.
According to documents filed in federal court, DONISHA LEE, along with her co-defendants, Dewayne Coleman (“Coleman”), Erica Lee Thompson (“Erica Lee”), Aisha Thompson (“Thompson”), Passenger A, and another individual, conspired to commit mail fraud in connection with a staged collision with their former co-defendant, occurring on September 6, 2017. Thus far, the total number of defendants convicted in “Operation Sideswipe” is thirty-seven (37).
DONISHA LEE admitted that on September 6, 2017, on the I-10 near the Almonaster exit, she was a passenger in Erica Lee’s 2015 RAV4 being driven by their former co-defendant, when he intentionally crashed into a tractor-trailer owned by Averitt Express. After the staged accident, the driver exited the RAV4 and told Erica Lee to get behind the wheel of the RAV4 to make it appear that Erica Lee was driving the vehicle at the time of the staged accident. The defendants contacted the NOPD and falsely claimed that Erica Lee was the driver at the time of the collision. Passenger A falsely claimed to the NOPD that she was Thompson.
Approximately one or two days after the staged accident, Coleman, DONISHA LEE, Erica Lee, Thompson, and another individual went to an attorney’s office for the purpose of collecting money from the insurance and trucking company. Coleman, DONISHA LEE, Erica Lee, Thompson, and another individual sought medical treatment from doctors and healthcare providers. Thompson was treated despite not being in the RAV4 at the time of the staged accident. DONISHA LEE retained counsel and made a claim for damages. The total settlement for the Averitt accident was $30,000.
On March 26, 2019, DONISHA LEE, and two of her co-defendants, provided false testimony in depositions taken in conjunction with the Thompson Lawsuit. On April 9, 2019, Thompson provided false testimony in a deposition taken in conjunction with the Thompson Lawsuit. In these depositions, DONISHA LEE, and her co-defendants, lied about the September 6, 2017 accident including, but not limited to, who was driving the RAV4 and the extent of their injuries.
United States District Court Judge Sarah S. Vance sentenced DONISHA LEE to 10 months imprisonment, 3 years of supervised release, 100 hours community service, restitution in the amount of $121,076.75, and a $100.00 special assessment fee.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant U.S. Attorney Edward J. Rivera; Assistant U.S. Attorney Maria Carboni; and Assistant U.S. Attorney Brandon Long.
Hartford Man Pleads Guilty to Cocaine Trafficking ChargeRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, announced that JAVIER ACEVEDO, 41, of Hartford, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to a cocaine trafficking offense.
According to court documents and statements made in court, the U.S. Postal Inspection Service’s Narcotics and Bulk Cash Trafficking Task Force has been investigating the shipment of parcels containing controlled substances from Puerto Rico to Connecticut. In May 2021, investigators identified a suspicious package that was destined for an address on Giddings Street in Hartford. On May 15, 2021, investigators made a controlled delivery of the package. Approximately one hour after it was delivered, Acevedo picked up the package and then drove it to his residence on South Street, where he was encountered by law enforcement. A subsequent court-authorized search of the package revealed approximately two kilograms of cocaine.
Acevedo pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
Acevedo was arrested on a federal criminal complaint on July 7, 2021. He is released on a $200,000 bond pending sentencing.
The U.S. Postal Inspection Service’s Narcotics and Bulk Cash Trafficking Task Force includes members from the U.S. Postal Inspection Service, the U.S. Postal Service – Office of the Inspector General, the Connecticut Army National Guard, and the Hartford, New Britain, Meriden and Town of Groton Police Departments.
The case is being prosecuted by Assistant U.S. Attorney Robert S. Ruff.
Hamilton County Woman to Federal Prison for Meth Possession with Intent to DistributeRead the Press Release
A woman who possessed with intent to distribute methamphetamine was sentenced on April 25, 2022, to 5 years in federal prison.
Kelly Beightol, 58, from Webster City, Iowa, pled guilty on December 2, 2021, to possessing methamphetamine with intent to distribute. Beightol was previously convicted of Delivery of Methamphetamine in 1992, Possession with the Intent to Deliver and Delivery of Methamphetamine in 2015, all in the Iowa District Courts.
At the plea and sentencing hearings, evidence proved that on September 6, 2021, during a traffic stop in Hardin County, Iowa, Beightol was found in possession of roughly 53 grams of pure methamphetamine and ½ pound of marijuana. Law enforcement also seized indicia of drug distribution, including drug packaging, a digital scale, and nearly $1,700 in cash. Beightol said she intended to distribute some or all of the methamphetamine to another person or persons.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Beightol was sentenced to 60 months’ imprisonment and must serve a four-year term of supervised release following the imprisonment. There is no parole in the federal system. Beightol remains in custody of the United States Marshal until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Iowa Division of Narcotics Enforcement, the Hardin County Sheriff’s Office, the Iowa Division of Criminal Investigation Laboratory, the Hamilton County Sheriff’s Office and the Webster City Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-3035. Follow us on Twitter @USAO_NDIA.
Four Charged in Connection with Multibillion-Dollar Collapse of Archegos Capital ManagementRead the Press Release
An indictment was unsealed today charging Sung Kook (Bill) Hwang, the founder and head of a private investment firm known as Archegos, and Patrick Halligan, Archegos’s Chief Financial Officer, with racketeering conspiracy, securities fraud, and wire fraud offenses in connection with interrelated schemes to unlawfully manipulate the prices of publicly traded securities in Archegos’s portfolio and to defraud many leading global investment banks and brokerages. Deputy Attorney General Lisa O. Monaco, U.S. Attorney Damian Williams for the Southern District of New York and Assistant Director-in-Charge Michael J. Driscoll of the FBI's New York Field Office made the announcement. Both defendants were arrested earlier today and will be presented this afternoon before U.S. Magistrate Judge Jennifer E. Willis. The case has been assigned to U.S. District Judge Andrew L. Carter, Jr.
Also unsealed today are the guilty pleas of Scott Becker and William Tomita in connection with their participation in the conspiracy. Becker pleaded guilty pursuant to an information before U.S. District Judge Laura Taylor Swain on April 21. Tomita pleaded guilty pursuant to an information before Judge Swain on April 21. Both are cooperating with the government.
“Today’s announcement demonstrates the department’s unwavering commitment to hold accountable individuals who distort and defraud our financial markets, including those who occupy the C-Suite,” said Deputy Attorney General Monaco. “That is especially true for this kind of crime — the kind that leaves a financial crater in its wake.”
“We allege that these defendants and their co-conspirators lied to banks to obtain billions of dollars that they then used to inflate the stock price of a number of publicly-traded companies,” said U.S. Attorney Williams. “The lies fed the inflation, and the inflation led to more lies. Round and round it went. In one year, Hwang allegedly turned a $1.5 billion portfolio and pumped it up into a $35 billion portfolio. But last year, the music stopped. The bubble burst. The prices dropped. And when they did, billions of dollars of capital evaporated nearly overnight.”
“As alleged, Hwang and his co-conspirators convinced major financial institutions to enter into agreements with them based on lies, the result of which ultimately led to a massive market manipulation scheme,” said FBI Assistant Director-in-Charge Michael J. Driscoll. “We allege the defendants caused harm to U.S. financial markets and ordinary investors alike, causing significant losses to banks, market participants and Archegos employees. Today’s charges highlight our commitment to making sure the investment arena remains free from fraudulent activity of all kinds.”
According to the allegations in the indictment unsealed today in Manhattan federal court:
Sung Kook (Bill) Hwang is the founder and owner of Archegos Capital Management and its related business entities, which are collectively known as Archegos. As alleged, Hwang, along with Patrick Halligan, Scott Becker and William Tomita lied to banks to obtain billions of dollars that they then used to artificially inflate the stock price of a number of publicly traded companies.
Hwang and his co-conspirators invested in stocks mostly through special contracts with banks and brokers called “swaps.” As alleged, these swaps allowed Hwang to cause massive buying of certain stocks, including at carefully selected days and times, to artificially pump up stock prices. Hwang, Halligan and their co-conspirators lied to banks and used a series of manipulative trading techniques to keep those prices high and prevent them from falling. This led to inflation of these stock prices. In one year, Hwang turned a $1.5 billion portfolio and fraudulently pumped it up into a $35 billion portfolio.
Last year, when the prices fell, Hwang’s positions were sold off and he could no longer manipulate the prices, and billions of dollars of capital evaporated nearly overnight.
As alleged, the defendants committed this fraud in secret. Since 2014, Hwang has run Archegos as a private hedge fund or “family office,” meaning that Archegos, unlike other large hedge funds, was not required to tell regulators information about its holdings and debt that might have shined a light on the fraud and allowed the crisis to be averted.
And because Hwang traded mostly through swaps, he was able to do the buying alleged in the indictment without anyone knowing that Archegos was actually behind all the trading. Regular market participants, and even the companies themselves, were duped into thinking the price increases were caused by the normal interplay of supply and demand when, instead, as alleged, they were the artificial result of Hwang’s manipulative trading.
For example, as alleged, by March 24, 2021, Hwang effectively controlled more than 50% of the freely trading shares of Viacom – and no one outside of Archegos knew about it — not investors purchasing Viacom in the market, or the executives at Viacom itself, or even the banks and brokerages who held the stock as part of the swaps. Because, as alleged, by using various banks and brokerages for his swaps, Hwang made sure that no single institution would have any idea that he was behind all of this trading.
The indictment further alleges that in order to get the billions of dollars Archegos needed to sustain this market manipulation scheme, Hwang and his co-conspirators lied to and misled some of Wall Street’s leading banks about how big Archegos’s investments had become, how much cash Archegos had on hand and the nature of the stocks that Archegos held. As alleged, they told those lies so that the banks would have no idea what Archegos was really up to, how risky the portfolio was, and what would happen if the market turned.
As alleged, just over a year ago, the market turned and the stock prices Hwang and his co-conspirators had artificially inflated crashed, causing immense damage to U.S. financial markets and ordinary investors. In a matter of days, the companies at the center of Archegos’s trading scheme lost more than $100 billion in market capitalization, Archegos owed billions of dollars more than it had on hand, and Archegos collapsed. Market participants who purchased the relevant stocks at artificial prices lost the value they believed their investments held, the banks lost billions of dollars, and Archegos employees, many of whom were required to invest 25% or more of their bonuses with Archegos as deferred compensation, lost millions of dollars.
* * *
A chart containing the names, ages, residences, charges and maximum penalties for the defendants is attached. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
This case was investigated by the U.S. Attorney’s Office for the Southern District of New York and the FBI. The Justice Department’s Organized Crime and Gang Section provided valuable assistance. The U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission, each of which today filed a parallel civil action, assisted and cooperated in this investigation.
If you think you are a victim of the scheme alleged in this press release, you are encouraged to contact law enforcement at [email protected].
This case is being handled by the office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Andrew Thomas, Matthew Podolsky and Alex Rossmiller are in charge of the prosecution.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Defendant
Age
Residence
Charges
Maximum Potential Sentence(s)
United States v. Sung Kook (Bill) Hwang and Patrick Halligan, 22 Cr. 240
HWANG
58
Tenafly, NJ
Racketeering Conspiracy, 18 U.S.C. § 1962(d) (Count One)
Securities Fraud, 15 U.S.C. §§ 78j(b) & 78ff (Counts Two and Ten)
Market Manipulation, 15 U.S.C. §§ 78i & 78ff (Counts Two through Nine)
Wire Fraud,
18 U.S.C. § 1343 (Count Eleven)
20 years
20 years (on each count)
20 years (on each count)
20 years
HALLIGAN
45
Syosset, NY
Racketeering Conspiracy, 18 U.S.C. § 1962(d) (Count One)
Securities Fraud, 15 U.S.C. §§ 78j(b) & 78ff (Count Ten)
Wire Fraud,
18 U.S.C. § 1343 (Count Eleven)
20 years
20 years
20 years
United States v. Scott Becker and William Tomita, 22 Cr. 231 (LTS)
BECKER
38
Goshen, NY
Conspiracy to Commit Racketeering Conspiracy, 18 U.S.C. § 1962(d) (Count One)
Securities Fraud, 15 U.S.C. §§ 78j(b) & 78ff (Count Two)
Wire Fraud,
18 U.S.C. § 1343 (Count Three)
20 years
20 years
20 years
TOMITA
38
Greenwich, CT
Racketeering Conspiracy, 18 U.S.C. § 1962(d) (Count One)
Securities Fraud, 15 U.S.C. §§ 78j(b) & 78ff (Counts Two and Four)
Market Manipulation, 15 U.S.C. §§ 78i & 78ff (Count Three)
Wire Fraud,
18 U.S.C. § 1343 (Count Five)
20 years
20 years (on each count)
20 years
20 years
Four Charged in Connection with Multi-Billion Dollar Collapse of Archegos Capital ManagementRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Deputy United States Attorney General Lisa O. Monaco, 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 an indictment charging SUNG KOOK (BILL) HWANG, the founder and head of a private investment firm known as Archegos, and PATRICK HALLIGAN, Archegos’s Chief Financial Officer, with racketeering conspiracy, securities fraud, and wire fraud offenses in connection with interrelated schemes to unlawfully manipulate the prices of publicly traded securities in Archegos’s portfolio and to defraud many leading global investment banks and brokerages. Both defendants were arrested earlier today and will be presented this afternoon before U.S. Magistrate Judge Jennifer E. Willis. The case has been assigned to U.S. District Court Judge Andrew L. Carter, Jr..
Also unsealed today are the guilty pleas of SCOTT BECKER and WILLIAM TOMITA in connection with their participation in the conspiracy. BECKER pled guilty pursuant to an Information before U.S. District Judge Laura Taylor Swain on April 21, 2022. TOMITA pled guilty pursuant to an Information before Judge Swain on April 21, 2022. Both are cooperating with the Government.
U.S. Attorney Damian Williams said: “We allege that these defendants and their co-conspirators lied to banks to obtain billions of dollars that they then used to inflate the stock price of a number of publicly-traded companies. The lies fed the inflation, and the inflation led to more lies. Round and round it went. In one year, Hwang allegedly turned a $1.5 billion portfolio and pumped it up into a $35 billion portfolio. But last year, the music stopped. The bubble burst. The prices dropped. And when they did, billions of dollars of capital evaporated nearly overnight.”
Deputy Attorney General Lisa O. Monaco said: “Today’s announcement demonstrates the department’s unwavering commitment to hold accountable individuals who distort and defraud our financial markets, including those who occupy the C-Suite. That is especially true for this kind of crime—the kind that leaves a financial crater in its wake.”
FBI Assistant Director-in-Charge Michael J. Driscoll said: “As alleged, Hwang and his co-conspirators convinced major financial institutions to enter into agreements with them based on lies, the result of which ultimately led to a massive market manipulation scheme. We allege the defendants caused harm to U.S. financial markets and ordinary investors alike, causing significant losses to banks, market participants, and Archegos employees. Today’s charges highlight our commitment to making sure the investment arena remains free from fraudulent activity of all kinds.”
According to the allegations in the Indictment unsealed today in Manhattan federal court:[1]
SUNG KOOK (BILL) HWANG is the founder and owner of Archegos Capital Management and its related business entities, which are collectively known as Archegos. As alleged, HWANG, along with PATRICK HALLIGAN, SCOTT BECKER, and WILLIAM TOMITA lied to banks to obtain billions of dollars that they then used to artificially inflate the stock price of a number of publicly traded companies.
HWANG and his co-conspirators invested in stocks mostly through special contracts with banks and brokers called “swaps.” As alleged, these swaps allowed HWANG to cause massive buying of certain stocks, including at carefully selected days and times, to artificially pump up stock prices. HWANG, HALLIGAN, and their co-conspirators lied to banks and used a series of manipulative trading techniques to keep those prices high and prevent them from falling. The lies fed the inflation, and the inflation led to more lies. The scale of this alleged fraud was stunning. In one year, Hwang turned a $1.5 billion portfolio and fraudulently pumped it up into a $35 billion portfolio.
Last year, the music stopped. The prices dropped and HWANG was unable to keep the prices propped up. When the prices fell, HWANG’s positions were sold off and he could no longer manipulate the prices, and billions of dollars of capital evaporated nearly overnight.
As alleged, the defendants committed this fraud in secret. Since 2014, HWANG has run Archegos as a private hedge fund or “family office,” meaning that Archegos, unlike other large hedge funds, was not required to tell regulators information about its holdings and debt that might have shined a light on the fraud and allowed the crisis to be averted.
And because HWANG traded mostly through swaps, he was able to do the massive buying alleged in the Indictment without anyone knowing that Archegos was actually behind all the trading. Regular market participants, and even the companies themselves, were duped into thinking the price increases were caused by the normal interplay of supply and demand when, instead, as alleged, they were the artificial result of HWANG’s manipulative trading.
To take just one example, as alleged, by March 24, 2021, HWANG effectively controlled more than 50% of the freely trading shares of Viacom – and no one outside of Archegos knew about it—not investors purchasing Viacom in the market, or the executives at Viacom itself, or even the banks and brokerages who held the stock as part of the swaps. Because, as alleged, by using various banks and brokerages for his swaps, HWANG made sure that no single institution would have any idea that he was behind all of this trading.
The Indictment further alleges that in order to get the billions of dollars Archegos needed to sustain this massive market manipulation scheme, HWANG and his co-conspirators lied to and misled some of Wall Street’s leading banks. They lied about how big Archegos’s investments had become. They lied about how much cash Archegos had on hand. They lied about the nature of the stocks that Archegos held. And, as alleged, they told those lies for a purpose: so that the banks would have no idea what Archegos was really up to, how risky the portfolio was, and what would happen if the bubble burst one day.
As alleged, that day ultimately came. Just over a year ago, the market turned and the stock prices HWANG and his co-conspirators had artificially inflated crashed, causing immense damage to U.S. financial markets and ordinary investors. In a matter of days, the companies at the center of Archegos’s trading scheme lost more than $100 billion in market capitalization, Archegos owed billions of dollars more than it had on hand, and Archegos collapsed. Market participants who purchased the relevant stocks at artificial prices lost the value they believed their investments held, the banks lost billions of dollars, and Archegos employees, many of whom were required to invest 25% or more of their bonuses with Archegos as deferred compensation, lost millions of dollars.
* * *
A chart containing the names, ages, residences, charges, and maximum penalties for the defendants is attached. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding work of the FBI. Mr. Williams thanked the Department of Justice’s Organized Crime and Gang Section for its assistance. Mr. Williams further thanked the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission, each of which today filed a parallel civil action.
If you think you are a victim of the scheme alleged in this press release, beginning tomorrow, April 28th, you are encouraged to contact law enforcement at [email protected].
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Andrew Thomas, Matthew Podolsky, and Alex Rossmiller are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant
Age
Residence
Charges
Maximum Potential Sentence(s)
United States v. Sung Kook (Bill) Hwang and Patrick Halligan, 22 Cr. 240
HWANG
58
Tenafly, NJ
Racketeering Conspiracy, 18 U.S.C. § 1962(d) (Count One)
Securities Fraud, 15 U.S.C. §§ 78j(b) & 78ff (Counts Two and Ten)
Market Manipulation, 15 U.S.C. §§ 78i & 78ff (Counts Two through Nine)
Wire Fraud,
18 U.S.C. § 1343 (Count Eleven)
20 years
20 years (on each count)
20 years (on each count)
20 years
HALLIGAN
45
Syosset, NY
Racketeering Conspiracy, 18 U.S.C. § 1962(d) (Count One)
Securities Fraud, 15 U.S.C. §§ 78j(b) & 78ff (Count Ten)
Wire Fraud,
18 U.S.C. § 1343 (Count Eleven)
20 years
20 years
20 years
United States v. Scott Becker and William Tomita, 22 Cr. 231 (LTS)
BECKER
38
Goshen, NY
Conspiracy to Commit Racketeering Conspiracy, 18 U.S.C. § 1962(d) (Count One)
Securities Fraud, 15 U.S.C. §§ 78j(b) & 78ff (Count Two)
Wire Fraud,
18 U.S.C. § 1343 (Count Three)
20 years
20 years
20 years
TOMITA
38
Greenwich, CT
Racketeering Conspiracy, 18 U.S.C. § 1962(d) (Count One)
Securities Fraud, 15 U.S.C. §§ 78j(b) & 78ff (Counts Two and Four)
Market Manipulation, 15 U.S.C. §§ 78i & 78ff (Count Three)
Wire Fraud,
18 U.S.C. § 1343 (Count Five)
20 years
20 years (on each count)
20 years
20 years
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Founders of Fake "Hedge Fund" Plead Guilty to Federal Charges for Orchestrating A $4 Million Ponzi SchemeRead the Press Release
CHARLOTTE, N.C. – The founders of a fake “hedge fund” appeared in court today and pleaded guilty to federal charges for orchestrating a $4 million Ponzi scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Austin Delano Page, 26, of Grover, N.C., pleaded guilty to wire fraud, and Brandon Alexander Teague, 26, of Belmont, N.C., pleaded guilty to securities fraud. U.S. Magistrate Judge David C. Keesler accepted the defendants’ guilty pleas.
North Carolina Secretary of State Elaine F. Marshall, Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte, join U.S. Attorney King in making today’s announcement.
According to filed plea documents and the plea hearings, from October 2020 to December 2021, Page and Teague engaged in an investment scheme that defrauded hundreds of investors, some of whom were at or near retirement age, of more than $4 million. Court documents show that the defendants falsely represented to victims that Page and Teague were running a hedge fund in Kings Mountain, N.C., D&T Investment Group (D&T), that invested in various securities, including stock of well-known companies like Apple. Contrary to representations made to victim investors, D&T was not a hedge fund and it did not hold any securities licenses or registrations. Also, Page and Teague were not licensed to sell securities and did not have a background associated with the sale of securities. In fact, prior to orchestrating the investment scheme the defendants sold campers.
According to court documents and admissions made in court, Page and Teague required investors to sign, among other documents, an investment contract with D&T. These documents contained false information, including that D&T would guarantee 100% of the investors’ initial investment, and that investors would receive 70% of the trading profits. In reality, the investors’ money was not guaranteed, and the purported “profits” investors received were Ponzi-style payments, whereby the defendants used new investors’ money to make payments to existing investors. To cover up the fraud, Page and Teague sent victim investors monthly statements that reflected fictitious trading gains. When certain investors and D&T employees began to question the legitimacy of D&T’s operations, Page created fictitious screenshots of various financial accounts that reflected inflated D&T account balances. For example, Page created a fake screenshot of a D&T brokerage account that reflected a balance of over $16,000,000, when in reality the account had a balance of less than $7.00.
Contrary to representations made to victims, their money was not generally invested in securities. In addition to making Ponzi payments to investors, a significant portion of the funds was used to pay excessive salaries and other compensation to D&T employees, including to members of Page’s family. For example, Page paid several D&T employees annual salaries of over $100,000 and also paid certain employees several thousand dollars each for getting the D&T company logo tattooed on their bodies. The defendants also squandered victims’ money on personal expenses such as clothing, jewelry, travel, luxury car rentals, and to make cash withdrawals.
On December 2, 2021, as the fraudulent scheme was collapsing, the defendants traveled to Italy. On the same day, Page informed D&T employees, who did not know that D&T was a fraud, that they would be closing the company. The pair was arrested on New Year’s Eve at JFK Airport in New York upon their voluntary return to the United States.
The defendants were released on bond with home detention and location monitoring following the plea hearings. Page pleaded guilty to one count of wire fraud, which carries a maximum prison term of 20 years and a $250,000 fine. Teague pleaded guilty to one count of securities fraud, which carries a maximum prison term of five years and a $250,000 fine. A sentencing date for the defendants has not been set.
In making today’s announcement U.S. Attorney King thanked the Securities Division of the North Carolina Secretary of State, the FBI and USPIS for their investigation of the case.
Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte, is in charge of the prosecution.
Fort Bend man sentenced for possession of child pornography filesRead the Press Release
HOUSTON – A 64-year-old Sugar Land resident has been ordered to prison following his convictions of receiving and possessing videos and images of child pornography, announced U.S. Attorney Jennifer B. Lowery.
A federal jury sitting in Houston convicted Gregory Eugene Baker Nov. 10, 2021, following a three-day trial.
Today, U.S. District Judge Keith P. Ellison ordered Baker to serve 90 months in prison for the receipt and possession of child pornography convictions. The court also heard additional information today including an impact statement from a victim. Baker had 231 photos of her in his collection. She described how she is revictimized every time individuals like Baker download and view images of her abuse. Baker will serve five years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Baker will also be ordered to register as a sex offender.
At trial, the jury heard that authorities discovered Baker’s IP address requesting child pornography files on the Freenet file sharing system which was run on the dark web. On April 4, 2019, law enforcement executed a search warrant at Baker’s residence and seized multiple devices.
Forensic examination of 13 devices revealed three virtual machines and the discovery of 380 videos and 12,762 images of young children engaged in sexually explicit conduct. They included toddlers, bondage, bestiality and sadomasochism. Additionally, Baker had images of Christmas cards containing child pornography surrounded by ornaments, garland and holiday greetings.
A forensics expert further testified that there were artifacts involving child pornography search terms as well as other peer-to-peer file sharing programs in which the device’s user requested files with titles that were consistent with child pornography. They also testified that the devices belonged to Baker.
Baker testified in his own defense and attempted to convince the jury that although the devices were his, he did not know how the child pornography was downloaded on them. The jury did not believe his claims and found him guilty as charged.
Baker was ordered to surrender to a U.S. Bureau of Prisons facility on April 29, 2022.
The Fort Bend District Attorney’s Office conducted the investigation with the assistance of the Pearland Police Department and FBI.
Assistant U.S. Attorneys Kimberly Ann Leo and Sherri Zack prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Former port IT director pleads guilty to transporting stolen computersRead the Press Release
CORPUS CHRISTI, Texas – A 39-year-old man has admitted to transporting over a hundred stolen computers across state lines, announced U.S. Attorney Jennifer B. Lowery.
Tyler Wright Fuhrken, Corpus Christi, pleaded guilty to using $320,098 from the Port of Corpus Christi to purchase Apple computers for personal use while employed as its IT director.
The investigation revealed that from May 22, 2016, to Feb. 4, 2021, Fuhrken authorized the purchase of 162 Apple computers. He had the authority to do so as necessary for the port. However, he did not record the purchased computers in the port’s asset control system or inventory.
Authorities traced a series of suspicious PayPal deposits into Fuhrken’s bank account. They were from a computer reseller located in New York who acknowledged purchasing many Apple computers from Fuhrken. Fuhrken would invoice the reseller for the computers on PayPal and would ship the computers from Texas to the resale shop located in New York.
The reseller provided authorities with a list of the computers he purchased. They were able to identify the 162 Apple computers missing from the port.
U.S. District Judge Nelva Gonzales Ramos will impose sentence July 27. At that time, Fuhrken faces up to 10 years in prison and a possible $250,000 maximum fine. As part of his plea agreement Fuhrken also agreed to pay restitution in the amount of $421,233.93.
He was permitted to remain on bond pending his sentencing hearing.
The FBI conducted the investigation with the assistance of the Corpus Christi Police Department. Assistant U.S. Attorney Robert D. Thorpe is prosecuting the case.
Former Monahans Businessman Ordered to Pay $1.3M for Failure to Pay Withholding TaxesRead the Press Release
ALPINE – Yesterday a former Monahans businessman was ordered to pay $1.3 million in restitution for failure to pay withholding taxes.
According to court documents, George Wayne Johnson, 74, of Lawrenceburg, TN, was the owner of Wayne’s Welding Services (WWS) in Monahans. From 2015 to 2018, WWS withheld tax payments from its employees’ paychecks but failed to pay $1,308,797 in required payroll tax to the Internal Revenue Service (IRS). Through his company, Johnson spent hundreds of thousands of dollars on his salary and personal expenses.
In addition to the restitution ordered, Johnson was sentenced to five years of probation.
“Employers have critical tax obligations with respect to their businesses and the defendant in this case skirted them so that he could enrich himself,” said U.S. Attorney Ashley C. Hoff. “We will continue to work closely with IRS Criminal Investigations to prosecute these matters.”
“This is an appalling act, not just because he stole more than a million dollars from our nation, but because he expected his own employees to pay the price for his extravagant lifestyle,” said Ramsey E. Covington, Special Agent in Charge of IRS Criminal Investigation’s Houston Field Office. “I am proud of our team at IRS CI for the investigative work on this case and I am proud of the unwavering support of the U.S. Attorney’s Office to prosecute those who choose to violate our tax laws.”
The IRS investigated the case.
Assistant U.S. Attorney Lance Kennedy prosecuted the case.
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Former Healthcare System Employee Admits Role in Embezzlement SchemeRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that LORITA FAIR, 51, of Rock Hill, South Carolina, formerly of New Haven, waived her right to be indicted and pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to one count of theft in connection with health care.
According to court documents and statements made in court, Yale New Haven Health Systems (“YNHHS”) is a healthcare system with more than 30,000 employees that provides medical care to patients at several locations in Connecticut and elsewhere. In January 2020, Fair began working in the payroll department of YNHHS as a temporary employee performing payroll functions. In May 2020, Fair was hired as a full-time employee as a Payroll Processing Associate at YNHHS. Shortly thereafter, Fair began engaging in a scheme to embezzle money and funds from YNHHS by creating fraudulent entries in the YNHHS payroll system that resulted in Fair and two other individuals receiving payroll payments to which they were not entitled.
As part of the scheme, Fair made fraudulent entries in the YNHHS payroll system, either by directly entering the fraudulent payments into the online system, or by manually adding lines to a spreadsheet of payroll payments after the spreadsheet had been reviewed and approved internally at YNHHS. The fraudulent payments would then be made by direct deposit from the YNHHS payroll system into Fair’s and the other two individuals’ personal bank accounts. The other two individuals then kicked back to Fair a portion of the fraudulent payroll funds they each received. Between June and December 2020, Fair caused a total of $116,260.41 in fraudulent payroll payments to be made to herself and the other two individuals.
Judge Dooley scheduled sentencing for July 27, at which time Fair faces a maximum term of imprisonment of 10 years. Fair has agreed to make full restitution to YNHHS.
Fair is released on a $50,000 bond pending sentencing.
This ongoing investigation is being conducted by the Federal Bureau of Investigation, with the assistance from YNHHS. The case is being prosecuted by Assistant U.S. Attorney David J. Sheldon.
Former Alabama Resident Sentenced to over Seven Years in Prison for Concealing Terrorism FinancingRead the Press Release
A former Alabama resident was sentenced today to 90 months, the equivalent of seven and a half years, in prison followed by 10 years of supervised release for concealing the transmission of funds to be provided as material support to al-Qaida, a designated foreign terrorist organization.
Alaa Mohd Abusaad, 26, pleaded guilty to concealment of terrorism financing in September 2019. According to the plea agreement, between February and April 2018, Abusaad instructed an FBI undercover employee (UCE) about how to send money to the mujahideen – fighters engaged in jihad. Abusaad told the UCE that money “...is always needed. You can’t have a war without weapons. You can’t prepare a soldier without equipment.” Abusaad also advised the UCE on how to send money in a manner that would avoid detection by law enforcement, including by using fake names and addresses when conducting electronic money transfers. Subsequently, Abusaad introduced the UCE to a financial facilitator who could route the UCE’s money to “brothers that work with aq” (meaning al-Qaida).
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Prim F. Escalona for the Northern District of Alabama, and Special Agent in Charge Johnnie Sharp Jr. of the FBI’s Birmingham Field Office made the announcement.
The FBI’s Birmingham, Memphis and Cleveland Field Offices investigated the case.
Assistant U.S. Attorneys Henry Cornelius and Manu Balachandran for the Northern District of Alabama and Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section prosecuted the case.
Former Airman Enters Guilty Plea to Possessing More than 15,000 Child Sexual Assault Material Images, Videos in Project Safe Childhood CaseRead the Press Release
ALBANY, Ga. – A former U.S. Air Force servicemember previously stationed at Moody Air Force Base admitted he possessed child sexual assault materials resulting from a Project Safe Childhood case.
Ricardo Garcia, 25, of Valdosta, Georgia, pleaded guilty to two counts of possessing of child pornography before U.S. District Judge Louis Sands on April 26. Garcia faces a maximum of 20 years of imprisonment to be followed by five years to life of supervised release and a maximum $250,000 fine per count. In addition, Garcia will have to register as a sex offender upon his release from federal prison. There is no parole. Sentencing has been scheduled for July 26, at the Albany, Georgia, federal courthouse.
“Downloading child sexual assault material is a hideous crime against the most innocent people in our society. Our office will pursue federal prosecution against these types of child predators,” said U.S. Attorney Peter D. Leary. “The successful outcome in this case—and others like it—is the direct result of a cohesive response from a mixture of caring citizens, responsible businesses, child advocacy groups, plus local, state and federal law enforcement. Rooting out child predators and bringing them to justice takes all of us.”
“This sentence sends the message to Garcia and others like him that relish in the horrific images of children being abused, that we are determined to find you and ensure you face justice,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI and its law enforcement partners are committed to protecting our most vulnerable population from exploitation.”
According to court documents and evidence submitted in court, the Lowndes County Sheriff’s Office received a tip from the National Center for Missing and Exploited Children (NCMEC) via the Georgia Bureau of Investigation (GBI) Internet Crimes Against Children (ICAC) Task Force in August 2020. The tip revealed Dropbox, Inc. captured an upload of two child pornography videos, which an investigation ultimately revealed belonged to Garcia. A search warrant was executed at Garcia’s Valdosta, Georgia, apartment on Sept. 11, 2020, and a number of electronic devices were seized. A forensic investigation found Garcia’s Dropbox contained approximately 15,000 images and 40 videos of child sexual assault material. The images contained child victims including infants, toddlers, prepubescent and teens. They also contained bondage, bestiality and sodomy.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the U.S. Department of Homeland Security (HSI) with assistance from and the Lowndes County Sheriff’s Office, GBI and the National Center for Missing and Exploited Children (NCMEC).
Assistant U.S. Attorney Katelyn Semales is prosecuting the case.
Former Adult Day Care Owner Sentenced for Health Care Fraud SchemeRead the Press Release
SAN ANTONIO – On Monday a San Antonio woman was sentenced to 60 months in prison and ordered to pay $1,784,817.96 in restitution for her role in a health care fraud scheme and theft of Social Security benefits. The Court also entered a money judgment against the defendant in the amount of $1,784,817.96. The money judgment represents the proceeds that she obtained as part of her scheme.
According to court documents, Scherry Lynn Moses, 54, owned and operated adult day care centers in and around the San Antonio area. Doing business as Scherry’s Adult Day Activity Center, Moses defrauded the Texas Medicaid Program by fraudulently billing for items and services that had not been provided to the clients of the day care centers. Moses also ran New Creation Residential Care Homes, a room and board business for Social Security recipients. Moses was also the representative payee for Social Security recipients who resided in her boarding homes. She charged each boarder from $500 to $700 a month to live in a rental property, often placing five to seven boarders to a property. Moses inconsistently provided the boarders with basic needs and at times left them to fend for themselves. In addition, she would refuse to make rent payments on the properties resulting in forcible evictions of the boarders. Moses used the money from the scheme for her own personal gain.
The defendant carried out the scheme between 2008 and 2016, resulting in an actual loss of $1,784,817.96.
On March 4, 2020, Moses pleaded guilty to one count of Health Care Fraud, one count of wire fraud and one count of theft of government funds.
“Instead of providing necessary services to trusting elderly and disabled Texas citizens, this defendant chose to fleece them of their Medicaid and Social Security benefits for her own selfish gain,” said U.S. Attorney Ashley C. Hoff. “We will continue to seek justice on behalf of these vulnerable members of our society and the critical government programs that serve them.”
“Organizational representative payees are a vital resource to Social Security beneficiaries who need help managing their benefits. Scherry Moses knowingly abused her role and ignored her responsibilities when she misused multiple Social Security beneficiaries’ benefit payments for her own use,” said Gail S. Ennis, Inspector General for the Social Security Administration. “We will continue to work with the Social Security Administration and other agencies to identify organizations and people who abuse their role as representative payees and steal program funds from beneficiaries. I thank the Medicaid Fraud Control Unit for their partnership in this investigation, and the U.S. Attorney’s Office for their efforts to hold Ms. Moses accountable for her crimes.”
The Social Security Administration Office of Inspector General and the Texas Attorneys General’s Office Medicaid Fraud Control Unit investigated this case.
Assistant U.S. Attorneys Fidel Esparza III, and Rex Beasley prosecuted this case on behalf of the government.
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Foreign National Sentenced to 25 Years in Federal Prison for Exploiting Children Online, Illegal ReentryRead the Press Release
Miami, Florida – A 29-year-old Mexican national living in Boca Raton and Pompano Beach, Florida was sentenced yesterday in West Palm Beach federal court to 25 years in prison for posing on social media as a nine-year-old girl named “Sophia 12901,” encouraging young children to produce sexual exploitation material, trading child sexual exploitation material with others online, and being in the United States illegally.
In 2020, Andres Rivera Reyes used a social media messenger application to find young girls for live video chats. During the chats, Reyes would try to convince the children to take pornographic images of themselves. A law enforcement investigation revealed that from January to May 2020, Reyes had engaged in these interactions with dozens of girls who were between eight and 12-years-old. The investigation also revealed that Reyes had over 5,000 images and videos of child sexual exploitation material in his cellular telephone and that he exchanged this material with others using social media applications. Reyes was previously removed from the United States in 2013 and was in the country illegally when he committed these crimes.
On August 19, 2021, Reyes pled guilty to one count of attempted production of child pornography, two counts of receipt of child pornography, one count of distribution of child pornography, one count of possession of child pornography, and one count of illegal reentry after removal.
In addition to his 25-year prison sentence, Reyes will be placed on supervised release for the remainder of his life as a registered sex offender. He was also ordered to pay in excess of $160,000 restitution to victims.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami announced the sentence imposed by U.S. District Judge Robin L. Rosenberg.
FBI Miami’s West Palm Beach Office investigated this child exploitation case, with assistance from Homeland Security Investigations (HSI), Miami’s West Palm Beach Office and the Lincoln Police Department of Lincoln, Nebraska.
Assistant U.S. Attorney Gregory Schiller prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-80064.
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Florida Tax Preparers IndictedRead the Press Release
Tampa, Florida –United States Attorney Roger B. Handberg announces the return of an indictment charging Jamica Nelms, Capriesha Cummings, Camille Harper, and Ashley Flournoy with conspiracy to commit tax fraud and aiding or assisting in the preparation of false income tax return documents. If convicted on all counts, each faces a maximum penalty of eight years in federal prison.
According to the indictment, from January 2017 through April 2019, Nelms, Cummings, Flournoy, and Harper were income tax return preparers at Business #1 in St. Petersburg. The defendants conspired to defraud the United States by preparing false income tax returns for numerous Business #1 clients in order for the Internal Revenue Service to issue tax refunds in amounts in excess of what the clients were entitled to receive. In doing so, the defendants prepared fraudulent Individual Income Tax Return Forms 1040 and Schedule C forms that resulted in fraudulent Earned Income Tax Credits, fraudulent fuel tax credits, and education credits.
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 was investigated by Internal Revenue Service – Criminal Investigation. It will be prosecuted by Assistant United States Attorneys Gregory Pizzo and Maria Guzman.
Florida Man Sentenced for Wire Fraud Conspiracy SchemeRead the Press Release
BOSTON – A Florida man was sentenced today in federal court in Boston in connection with a scheme to defraud a Massachusetts-based company by falsifying invoices.
Brian Halpern, 49, was sentenced by U.S. District Judge George A. O’Toole Jr. to time served (one day in prison) and three years of supervised release with the first 18 months to be served in home confinement. Halpern was also ordered to pay forfeiture in the amount of $1,516,186 and restitution in the amount of $3,032,272. On Aug. 12, 2021, Halpern pleaded guilty to conspiracy to commit mail and wire fraud, wire fraud and money laundering.
Between approximately 1998 and March 2019, Halpern and others defrauded the uniform-supply company by causing the company to pay fake invoices for products that were not actually delivered, and by diverting other products that they re-sold for their own benefit. In addition, Halpern and his co-conspirators created a fake supply company and caused the uniform-supply company to pay more than $3 million in fraudulent invoices for purported products that he knew would never be delivered or used.
Halpern is the third person to be sentenced in connection with the conspiracy. On Sept. 8, 2021, co-conspirator Richard Ritz was sentenced to 21 months in prison and two years of supervised release. On Oct. 12, 2021, co-conspirator Keith Smedley was sentenced to three years in prison and two years of supervised release.
United States Attorney Rachael S. Rollins and Joseph Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Ian J. Stearns of Rollins’ Securities, Financial & Cyber Fraud Unit and First Assistant U.S. Attorney for the District of Rhode Island Sara Miron Bloom prosecuted the case.
Financial Advisor Charged in White Plains Federal Court with Embezzlement from ClientRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment in White Plains federal court charging ADAM BELARDINO, the Chief Executive Officer of the Maddox Group, a financial advisory firm in New York City and elsewhere, with wire fraud in connection with his embezzlement of more than $313,000 from a Maddox client, a 64 year old New Rochelle resident. BELARDINO was arrested this morning and will be presented in White Plains federal court later today.
U.S. Attorney Damian Williams said: “Adam Belardino abused the trust his client placed in him by stealing more than $313,000 the client gave him to be invested. Clients like the victim in this case need to be able to entrust their money to financial advisors with confidence that the money will be invested in a manner that is appropriate for them. This Office will aggressively pursue financial advisors and others who steal money entrusted to them by clients.”
FBI Assistant Director-in-Charge Michael J. Driscoll said: “Belardino is charged today for allegedly stealing several hundred thousand dollars from a client in an illegal investment fraud scheme. Financial crimes of this nature can cause significant disruptions to the lives of those who are victimized. We urge everyone to exercise their due diligence when investing their money and to report suspicious activity to authorities as soon as possible.”
According to the Indictment unsealed today in White Plains federal court[1]:
BELARDINO had managed the victim’s investments at another firm before he founded Maddox in July 2019. In August 2019, BELARDINO convinced the victim to liquidate some of her portfolio and to transfer the liquidated funds to Maddox for investment. The victim then transferred more than $313,000 to Maddox in eight separate transactions between August 2019 and October 2020. Instead of investing the victim’s money as he had promised, BELARDINO used the victim’s money to pay the operating expenses of Maddox, including payroll and office rent; to pay down prior debt; to pay credit card charges, which consisted primarily of personal items; and to pay for personal travel.
In September 2021, the victim directed BELARDINO to transfer her portfolio at Maddox to her brokerage account at another firm. From September 2021 to February 2022, BELARDINO sent the victim and members of her family emails and texts in which he said he was liquidating the portfolio and would return the funds shortly. BELARDINO also provided the victim’s family with documents suggesting that a wire transfer of the funds to the victim’s bank account was imminent or pending. BELARDINO also deposited checks drawn on a checking account held by Maddox into the victim’s bank account for what he claimed was the full value of the victim’s portfolio.
The victim never received any funds by wire and the checks BELARDINO deposited into her bank account were returned because the Maddox account did not have sufficient funds to cover the checks. BELARDINO sent members of the victim’s family emails and texts in which he said in substance and in part that he was working with bank officials to resolve the problem and that his family would repay the victim if he was unable to do so. BELARDINO also sent members of the victim’s family a document that falsely stated that the Maddox bank account had sufficient funds to repay the victim.
BELARDINO, 37, of New York City, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
* * *
Mr. Williams praised the investigative work of the FBI.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney James McMahon is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Fentanyl Dealer Pleads Guilty to Distributing NarcoticsRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Marvin “MJ” Mitchell (36, St. Petersburg) has pleaded guilty to conspiracy to possess with the intent to distribute heroin, crack cocaine, and fentanyl, and possession with the intent to distribute heroin, crack cocaine, and fentanyl. Mitchell faces a maximum penalty of 20 years in federal prison on each count. A sentencing date has not yet been set.
According to the plea agreement, between approximately April and June 2019, Mitchell sold heroin, fentanyl, and crack cocaine from the Express Inn located in Clearwater. Mitchell used co-conspirators to distribute his product. During April, May, and June 2019, confidential informants conducted several controlled purchases from room #126 at the Express Inn. The CI’s would go to the Express Inn to purchase heroin from either Mitchell or one of his co-conspirators. In exchange for cash, they would receive small, silver aluminum foil packages containing a grayish, white powdery substance, which later tested positive for heroin, fentanyl, or both.
On June 17, 2019, law enforcement executed a search warrant at the Express Inn, rooms #126, 128, and 130, and upon entering room #130, detained Mitchell. In that room, officers found one tin foil bindle that was identical in appearance to those bindles found in room #126. Officers also found $2,219 in cash, 38 insulin syringes, and an electronic scale. Upon entry into room #126, officers detained two of Mitchell’s co-conspirators. Agents seized multiple tin foil bindles, five doses of NARCAN, used syringes, cash, and a ledger partially hidden between a headboard and the wall.
This case was investigated by the Drug Enforcement Administration, and the Pinellas Park Police Department, with assistance from the Pinellas County Sheriff’s Office, and the Pasco and Pinellas County Medical Examiner’s Office. It is being prosecuted by Assistant United States Attorney Diego F. Novaes.
Felon indicted for washateria carjacking and related chargesRead the Press Release
HOUSTON – A 31-year-old local man has been indicted for carjacking and illegally possessing and discharging a firearm, announced U.S. Attorney Jennifer B. Lowery.
Today, a federal grand jury returned the three-count indictment against Zachary Smith, Houston. Previously in state custody on related charges, he is expected to make his initial appearance before a U.S. magistrate judge on the federal indictment in the near future.
The charges allege that on Feb. 6, Smith discharged a firearm while stealing a vehicle from the parking lot of a washateria on Melbourne Drive. He was also allegedly involved in a shooting Feb. 7 on the 2000 block of Broadway Street. On that day, Smith led law enforcement in a pursuit that came to an end when he crashed into a patrol unit, according to the charges.
The indictment alleges his is a previous felon and is prohibited from possessing firearms per federal law.
If convicted, Smith faces up to life for discharging the firearm during a crime of violence, 15 years for the carjacking and a maximum of 10 years for being a felon in possession of a firearm.
The FBI conducted the investigation with the assistance of the Texas Department of Public Safety, Houston Police Department and Harris County Sherriff’s Office. Assistant U.S. Attorney Britni Cooper is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Feds Indict Two Philadelphia Men for Carjacking Spree in Philadelphia and Delaware CountiesRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Tarik Chambers, 20, and Nikeem Leach-Hilton, 22, both of Philadelphia, PA were charged by Indictment with conspiracy, three counts of carjacking, three counts of carrying a firearm during and in relation to a crime of violence, and related charges in connection with a spate of armed carjackings in Philadelphia and Delaware County late last year.
The Indictment alleges that in the early morning hours of December 19, 2021, the defendants carjacked two victims at gunpoint in the Lawncrest section of the city. Then, approximately 20 minutes later, the defendants carjacked two more victims at gunpoint in the Germantown section. Finally, the Indictment also alleges that defendants used a privately made “ghost” gun to carjack yet another victim at gunpoint about six hours later in the rear parking lot of a retail store along Baltimore Pike in Springfield Township. The defendants then fled from the police, leading officers from multiple agencies on a high-speed car chase through Delaware County before crashing into the car of another motorist, who suffered severe, life-threatening injuries including broken bones and significant head trauma.
Earlier this month, U.S. Attorney Williams announced that the defendants had been charged by Criminal Complaint with the Delaware County carjacking. This Indictment returned by a federal grand jury now formally charges them with all three carjackings and related offenses.
“The charges announced today against these two defendants exemplify the type of rapid results we have promised to deliver through the Carjacking Task Force and the ‘All Hands On Deck’ initiative,” said U.S. Attorney Williams. “These two terrorized no less than six victims in three different neighborhoods across our region in roughly six hours -- actions which are being met with very serious federal charges. Enough is enough – if you commit a serious violent crime in our city, you can expect the feds to show up on your doorstep.”
“ATF’s main objective will always be keeping our citizens safe,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “This indictment is indicative of ATF’s continued efforts working with our partners and proudly serving as part of the joint carjacking task force, being led by the Philadelphia Police Department. We will continue working with our local, state, and federal partners in making sure violent individuals are held accountable when they threaten the safety of the community.”
The swift action to investigate and federally charge these defendants is the result of the newly formed Philadelphia Carjacking Task Force, which is comprised of members of the U.S. Attorney’s Office Violent Crime Unit; the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Philadelphia Police Department. The goal of the Taskforce is to stem the wave of armed carjackings and violent crimes through investigative and enforcement techniques meant to identify and refer for federal prosecution all who terrorize innocent victims through commission of these offenses within Philadelphia and surrounding areas.
If convicted on all charges, the defendants face a mandatory 21 years in prison with a maximum possible sentence of life.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Springfield Township Police Department, and the Delaware County District Attorney’s Office and is being prosecuted by Assistant United States Attorney J. Jeanette Kang and Special Assistant United States Attorney Sandra M. Urban.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal agent charged with violating civil rightsRead the Press Release
McALLEN, Texas – A 28-year-old former Border Patrol (BP) employee is facing charges that he deprived the constitutional rights of a Honduran teenager, announced U.S. Attorney Jennifer B. Lowery.
Authorities took Gregson Martinez into custody today. He is set to make his initial appearance before U.S. Magistrate Anne Berton tomorrow at 2 p.m.
On July 21, 2021, BP agents apprehended a 17-year-old unaccompanied Honduran citizen near Hidalgo, according to the charges. They then allegedly transported him to the Donna Processing Center.
Martinez reportedly worked at the Donna facility as a Border Patrol Processing Coordinator.
While authorities questioned him, Martinez allegedly struck the 17-year-old male across the face.
Martinez was terminated Aug. 2, 2021.
If convicted, he faces up to a year in federal prison and a possible $100,000 maximum fine.
Department of Homeland Security - Office of Inspector General and Customs and Border Protection - Office of Professional Responsibility conducted the investigation. Assistant U.S. Attorney Laura Garcia is prosecuting the case.
A criminal information is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Federal Jury Convicts Bryan Cornelius on Multiple Drug Trafficking Conspiracies, Money Laundering Conspiracies, and Possession and Discharge of A Firearm in Furtherance of His Drug Trafficking CrimesRead the Press Release
KNOXVILLE, Tenn. – On April 26, 2022, following a six-day trial in United States District Court, Knoxville, Tenn., a jury convicted Bryan Cornelius, 31, of Knoxville, Tennessee, of Conspiracy to Distribute over 50 grams of Methamphetamine, Conspiracy to Distribute over one kilogram of heroin and over 40 grams of Fentanyl, Conspiracy to Distribute over 100 kilograms of marijuana, Conspiracy to commit Money Laundering, Distributing over 50 grams of Methamphetamine, and Possession and Discharge of a Firearm in furtherance of his drug trafficking crimes.
Sentencing for Cornelius is set for October 3, 2022, at 2:00 p.m., in the United States District Court before United States District Court Judge Thomas A. Varlan, in Knoxville, Tennessee. Cornelius faces a sentence of life in prison.
The evidence presented at trial included wiretaps of multiple cellular phones, multiple search warrants at various Knoxville residences, narcotics, firearms, and cash seizures. The evidence showed that Cornelius, a member of the Gangster Disciples street gang, was ordering narcotics from different sources of supply in California and receiving packages of methamphetamine and marijuana through the United States Postal Service (USPS), Fed-Ex, and UPS throughout 2019 and that he maintained multiple addresses across Knoxville to stash his narcotics, firearms, and cash to facilitate his narcotics distribution. In addition, the evidence showed that, in furtherance of his drug trafficking, at approximately 2:45 p.m. on November 21, 2019, Cornelius, along with two others, drove by the Stop-n-Go on Brooks Avenue and Cornelius fired fifteen rounds of 7.62mm into a Mercedes-Benz. The driver sustained two non-life-threatening gunshot wounds.
Cornelius was the one defendant in a 23-person indictment who proceeded to trial; all other defendants entered guilty pleas.
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Cornelius included the Federal Bureau of Investigation (FBI) HIDTA Task Force and the United States Postal Inspection Service (USPIS). The FBI HIDTA Task Force includes the Roane County Sheriff’s Office, Knoxville Police Department, Knox County Sheriff’s Office, Blount County Sheriff’s Office, and Sevier County Sheriff’s Office. The Tennessee Bureau of Investigation, the Drug Enforcement Administration, also assisted in this investigation by conducting drug analysis on seized narcotics in the case.
“This prosecution is part of the Department of Justice’s comprehensive strategy to reduce violence and increase safety in the community by prosecuting violent criminals who use firearms in furtherance of their distribution of highly addictive and dangerous drugs, such as fentanyl and methamphetamine,” said United States Attorney Francis M. Hamilton III.
“Illegal drugs are the scourge of society and the cause of devastation for many families. The FBI, along with our federal, state, and local law enforcement partners are committed to identifying, disrupting, and holding those accountable who are responsible for harming our communities through their illegal activities,” said FBI Special Agent in Charge Joe Carrico.
“The Postal Service has no interest in being the unwitting accomplice to anyone using the U.S. Mail to distribute illegal drugs or other harmful substances,” said Tommy D. Coke, U.S. Postal Inspector in Charge of the Atlanta Division. “We will continue to work with our law enforcement partners to keep dangerous drugs out of the communities we serve.”
Assistant U.S. Attorneys Cynthia Davidson and Alan Kirk represented the United States at trial.
This case was part of the Department's Organized Crime Drug Enforcement Task Force (OCDETF) and the HIDTA programs. OCDETF is the primary weapon of the United States against the highest-level drug trafficking organizations operating within the United States, importing drugs into the United States, or laundering the proceeds of drug trafficking. The HIDTA program enhances and coordinates drug control efforts among local, State, and Federal law enforcement agencies. The program provides agencies with coordination, equipment, technology, and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States.
This case is also 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 working together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Federal Inmate Sentenced to Serve More Than Six Additional Years for Assault on Prison GuardRead the Press Release
OKLAHOMA CITY – Yesterday, ZACHARY GAGE PEBLEY, 24, of El Reno, Oklahoma, was sentenced to serve more than six years in federal prison for assaulting an officer of the Federal Bureau of Prisons, announced United States Attorney Robert J. Troester.
On February 18, 2021, a federal grand jury sitting in the Western District of Oklahoma returned a one-count Indictment against Pebley. It charged him with assault on a federal officer causing bodily injury, for conduct in November 2020 at the Federal Correctional Institution at El Reno. On July 12, 2021, Pebley pleaded guilty to the Indictment.
Yesterday, U.S. District Court Judge Stephen Friot sentenced Pebley to serve 77 months in federal prison. This sentence is to run after he finishes his current federal sentence of 144 months for armed bank robbery from the Eastern District of Oklahoma. In support of his sentence, Judge Friot cited the nature and circumstances of the offense, as well as Pebley’s criminal history. Judge Friot also ordered Pebley to serve three years of supervised release upon release from federal prison.
This case arises from an investigation by Special Investigative Services at the Federal Correctional Institution-El Reno and the Federal Bureau of Investigation’s Oklahoma City Field Office. Assistant U.S. Attorney Ashley Altshuler prosecuted this case.
Federal Grand Jury Issues Indictment Alleging Irvine Man Concealed Material Support and Financing to Foreign Terrorist OrganizationRead the Press Release
SANTA ANA, California – A federal grand jury today returned a four-count indictment that charges an Irvine man with attempting to provide material support to two foreign terrorist organizations – Hay’at Tahrir al-Sham (HTS) and Hamas.
Jason Fong, 26, allegedly attempted in the spring of 2020 to provide to HTS tactical, combat and weapons training material – as well as information regarding the making of chemical weapons and improvised explosive devices.
The indictment further alleges that in May 2020 Fong attempted to fundraise for Hamas. The indictment further alleges that at the time he committed these offenses, Fong knew that each organization had been designated a foreign terrorist organization by the United States government.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Fong has been summonsed to appear for an arraignment in United States District Court on May 23. A trial in this matter was previously set for October 25.
If he were to be convicted of the charges in the indictment, Fong would face a statutory maximum sentence of 20 years in prison for each of the four counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI, the Naval Criminal Investigative Service, Homeland Security Investigations, the Irvine Police Department, and the New York Police Department are participating in the ongoing investigation.
Assistant United States Attorneys Christine Ro and Mark Takla of the Terrorism and Export Crimes Section, and Trial Attorney John Cella from the Counterterrorism Section of the Justice Department’s National Security Division are prosecuting this case.
Federal Grand Jury Indicts El Reno Man for Firearms TheftRead the Press Release
OKLAHOMA CITY – JEFFERY DEWAYNE MOSELEY, 32, of El Reno, Oklahoma, was indicted by a federal grand jury in Oklahoma City with theft of firearms from a federally licensed firearms dealer and with being a convicted felon in possession of firearms, announced U.S. Attorney Robert J. Troester.
On April 6, 2022, a federal grand jury in the Western District of Oklahoma returned a two-count indictment against Moseley. Count 1 charges Moseley with theft of nine firearms from a licensed firearms dealer in Yukon, Oklahoma, on February 20, 2022. Count 2 charges Moseley with being a felon in possession of the same nine firearms in February 2022. Federal law prohibits convicted felons from possessing firearms.
If convicted, Moseley faces up to ten years in prison and three years of supervised release on each Count.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney David Nichols, Jr. is prosecuting the case.
The public is reminded that these charges are merely allegations and that the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public records for more information.
Elyria Man Convicted of Illegal Possession of Ammunition After Discharging Weapon During AltercationRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that a federal jury returned a guilty verdict on Tuesday, April 26, 2022, against Defendant Jeffery Grandberry, 38, of Elyria, Ohio, following a two-day trial before Judge Sara Lioi in Akron. Grandberry was convicted of being a felon in possession of ammunition.
According to court documents, on June 6, 2021, officers with the Elyria Police Department arrived at an Elyria-area bar after receiving reports of a disturbance concerning an individual who had fired a gun in the establishment’s parking lot. Witnesses told officers that an individual, later identified as Grandberry, became involved in an altercation, brandished a semiautomatic weapon and then fired one shot into the air while in the parking lot.
Officers reviewed video footage of the incident, searched the parking lot and located a single spent 9mm casing.
Grandberry is prohibited from possessing a firearm due to previous convictions of attempted murder and felonious assault, aggravated burglary, burglary and assault on a police officer, all in the Lorain County Common Pleas Court.
This case was investigated by the Elyria Police Department and the FBI. This case is being prosecuted by Assistant U.S. Attorney Scott Zarzycki.
Dunkirk Man Pleads Guilty to Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY—U.S. Attorney Trini E. Ross announced today that Hector Santos-Morales, 32, of Dunkirk, NY, pleaded guilty to conspiracy to possess with the intent to distribute, and to distribute, 500 grams or more of cocaine before U.S. District Judge Lawrence J. Vilardo. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years in prison and a $5,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that in June 2020, a United States Postal Inspector executed a federal search warrant on a parcel from Puerto Rico addressed to “Hector D. Santos” on Beaver Street in Dunkirk, NY. During the search, the Postal Inspector seized approximately one kilogram of suspected cocaine. On June 29, 2020, investigators replaced the cocaine with “sham” and conducted a controlled delivery of the parcel to the Beaver Street address. After a device inside the parcel alerted investigators that it has been opened, law enforcement approached the residence and took Santos into custody.
The plea is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Ketty Larco-Ward of the Boston Division, the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, and the Southern Tier Regional Drug Task Force, under the direction of the Cattaraugus County Sheriff’s Office and Sheriff Timothy Whitcomb.
Sentencing is scheduled for September 2, 2022, before Judge Vilardo.
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Dingman’s Ferry Man Sentenced to 94 Months’ Imprisonment for Drug TraffickingRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Felix Enrique Carrion, age 49, of Dingman’s Ferry, Pennsylvania, was sentenced to 94 months’ imprisonment to be followed by 6 years of supervised release by U.S. District Court Judge Malachy E. Mannion for conspiracy to distribute cocaine and distribution of cocaine.
According to United States Attorney John C. Gurganus, Carrion previously admitted that he conspired to distribute and distributed cocaine and other controlled substances, including valium and oxycodone. Carrion was arrested by authorities after service of a search warrant at his residence resulted in the seizure of cocaine and drug packaging materials.
Walter Valdivia, Jr. was also arrested at the time of the search at Carrion’s residence. Valdivia was convicted of being a felon in possession of a shotgun which he was reaching for at the time police secured entrance. Valdivia was sentenced to 33 months’ imprisonment in June 2021.
The case was investigated by the ATF and the Pike County Drug Task Force. Assistant U.S. Attorney Todd K. Hinkley prosecuted the case.
This case was part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Department of Justice Launches Law Enforcement Knowledge LabRead the Press Release
The Department of Justice today announced the creation of the National Law Enforcement Knowledge Lab, a free training, technical assistance and resource hub for law enforcement, designed to promote constitutional policing, improve public safety and build trust in communities across the country. Associate Attorney General Vanita Gupta will make the announcement today at the Los Angeles Police Department headquarters where she will be joined by police leaders, civil rights advocates, researchers and others from across the country dedicated to ensuring that law enforcement has access to the tools, trusted guidance and best practices for fair, impartial policing.
“Providing law enforcement with the tools, resources and support they need to do their jobs effectively and fairly makes our communities safer and stronger,” said Associate Attorney General Gupta. “The Knowledge Lab is the latest step in the Justice Department’s ongoing work to listen, learn and take action to build trust between law enforcement and the communities they serve.”
Law enforcement agencies nationwide will be able to turn to the Knowledge Lab for free, voluntary resources, including research summaries, profiles of best practices, training curricula and a roster of constitutional policing experts to support their needs.
It will build on multiple Justice Department initiatives designed to support best practices in policing in America, including the Office of Community Oriented Policing Services’ (COPS Office) Collaborative Reform Initiative, which Attorney General Merrick B. Garland announced in March. Existing resources from across the department will feed into the Knowledge Lab, making it a one-stop-shop for the latest information, training and guidance on strategies to reduce crime, protect civil rights and build public trust.
The Knowledge Lab is managed by the Bureau of Justice Assistance (BJA), a division of the Justice Department’s Office of Justice Programs (OJP), through a partnership with the National Policing Institute in collaboration with 21st Century Policing Solutions, and a diverse cohort of policing experts from across the country. It is intended to grow and adapt over time to meet the needs of law enforcement agencies and communities. This week’s convening in Los Angeles is bringing together police leaders, civil rights advocates and experts to help build the foundation of the Knowledge Lab and inform what it will look like moving forward.
“Constitutional policing is foundational to a just and equitable society, and it remains the bedrock of effective public safety,” said Director Karhlton F. Moore of the BJA. “America’s law enforcement officers work hard to serve our communities. The Knowledge Lab will assist agencies in their efforts to serve with fairness and integrity, and we are determined to help them live up to the highest ideals of their profession.”
For almost 30 years, the Justice Department has used its enforcement authority and has entered into settlements and consent decrees to remedy systemic patterns or practices of unconstitutional conduct. Along with other resources, the Knowledge Lab will make all Justice Department consent decrees and associated materials available online and allow law enforcement agencies to learn from in-the-field experience, not just theory, about how best to promote a positive and healthy relationship between the police and the communities they serve.
The Knowledge Lab will offer free training and technical assistance that adapts this base of information to the needs of individual law enforcement agencies. The National Law Enforcement Knowledge Lab will enable law enforcement agencies to build on a foundation supported by evidence and experience.
Associate Attorney General Gupta was joined in today’s announcement by BJA Director Moore, local officials and law enforcement and civil rights experts from across the country.
Department of Justice Commemorates National Crime Victims’ Rights WeekRead the Press Release
CEDAR RAPIDS, IA – The Department of Justice’s Office for Victims of Crime (“OVC”) and the Acting United States Attorney for the Northern District of Iowa will join communities nationwide in observing National Crime Victims’ Rights Week and celebrating victims’ rights, protections and services. This year’s observance takes place April 24-30 and features the theme, “Rights, access, equity, for all victims.”
In the Northern District of Iowa, Acting United States Attorney Timothy T. Duax announced winners for three awards based on their service to victims in Iowa:
- The Law Enforcement Victim Services Award is presented to Officer Nicholas Berry from the Waterloo Police Department. This award is presented to law enforcement officers in Iowa who go beyond the call of duty to help crime victims. It is the highest federal honor in Iowa for victim services by a law enforcement officer.
Officer Berry showed dedication to victims while investigating multiple cases involving drug overdoses resulting in the death of the victim. In particular, Officer Berry’s work with the family of a drug overdose victim led to the successful prosecution of Eric Griggs. Officer Berry remained in close contact with the victim’s family throughout the investigation and prosecution. His tenacious investigation and empathy for the victim’s family led directly to the successful prosecution of Griggs, resulting in a 40-year prison sentence and restitution for the victim’s family.
- The Award for Excellence in Victim Services is presented to Brandi Lewin from the Delaware County Victim Services Office. Ms. Lewin is the Victim Witness Coordinator and Sexual Assault Response Team Coordinator for multiple counties. In just 15 months in this role, Ms. Lewin has helped numerous victims improve their lives. Ms. Lewin makes herself available to victims at all hours and goes above and beyond to assist them. She has also established training opportunities for law enforcement, helping to ensure that there is an environment of victim-centered service during the investigation and prosecution of crimes.
- The Award for Excellence in Victim Services is presented to Penny Galvin, the director of the Survivors’ Program with Waypoint Services. Ms. Galvin provided outstanding services to those affected by the murder of James Booher by Matthew Robbins and others. Throughout the investigation, prosecution, trial, and sentencing, Ms. Galvin provided outstanding support to the victim’s family, which included the victim’s mother and stepfather, the victim’s siblings, his ex-wife, and the victim’s stepchildren. Ms. Galvin attended court hearings with the family, and regularly communicated with the family to answer questions and provide updates. During the investigation, she provided emotional support to the family, who, for years, were unsure what had happened to their loved one as his body was not recovered. Ms. Galvin’s efforts in this regard were outstanding given the length and complexity of the investigation.
Ronald Reagan proclaimed the first Victims’ Rights Week in 1981, putting crime victims' rights, needs and concerns in a prominent spot on the American agenda. He also established the President's Task Force on Victims of Crime, which laid the groundwork for a national network of services and legal safeguards for crime victims.
For more information on how to create your own public campaigns to raise awareness about crime victims’ rights online and at events throughout the year, please visit: https://ovc.ncjrs.gov/ncvrw2022/overview.html
Defendant Convicted of Defrauding American Express of More Than $4.7 MillionRead the Press Release
BROOKLYN, NY – Earlier today, in federal court in Brooklyn, a federal jury convicted Jasminder Singh of bank fraud and money laundering based on defrauding American Express of more than $4.7 million in charges for iPhone purchases and spending the fraud proceeds on a $1.3 million home and other luxury items. Singh was convicted of bank fraud and unlawful monetary transactions. The verdict followed a one-week trial before United States District Judge Carol Bagley Amon.
Breon Peace, United States Attorney for the Eastern District of New York, Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.
“The jury determined that Singh was a fraudster who used American Express cards to purchase thousands of iPhones, racking up millions of dollars in charges and then spun a web of lies to avoid paying the bill and hide his ill-gotten assets,” stated United States Attorney Peace. “After stiffing American Express, the defendant was living large, until today, when the bill for his crimes came due with today’s verdict.”
As proven at trial, Singh used four business entities that he created and controlled and 10 American Express credit cards in those entities’ names to purchase thousands of Apple iPhones that he then sold overseas for millions of dollars. Between November 2017 and December 2019, the defendant misrepresented to American Express his inability to repay more than $4.7 million in charges incurred from his purchase of iPhones in order to secure additional credit, and used a series of financial transactions to conceal the money he obtained from selling the purchased iPhones. The defendant used the proceeds from his fraudulent scheme to pay for personal expenses and purchase luxury items, including a $1.3 million home in cash in Fremont, California. The defendant made most of the purchases at Apple stores in Oregon and Washington.The evidence at trial included financial and phone records, audio recordings, testimony from the defendant’s co-conspirator Mandeep Singh, and an FBI forensic accountant. Mandeep Singh pleaded guilty to money laundering conspiracy in March 2022 and is awaiting sentencing.
Assistant United States Attorney Michael Gibaldi of the Eastern District of New York and Trial Attorney Patrick J. Campbell of the Criminal Division’s Fraud Section are prosecuting the case with the assistance of paralegal Eleanor Fitzgerald.
Defendant:
JASMINDER SINGH
Age: 45
Fremont, CaliforniaE.D.N.Y. Docket No.: 21-CR-397 (CBA)
Davenport Man Sentenced to Prison for Child Pornography ChargesRead the Press Release
DAVENPORT, Iowa – James Anthony Rogers, age 57, of Davenport, was sentenced Tuesday, April 26, 2022, to 214 months in prison for Production of Child Pornography, Distribution of Child Pornography, and Attempted Enticement of a Minor (two counts). Rogers was ordered to serve seven years of supervised release to follow his imprisonment and pay a $400 Special Assessment immediately payable to the Crime Victims’ Fund.
According to court documents, the Davenport Police Department initiated an investigation into Rogers after receiving information regarding his possible involvement in the sexual solicitation of a minor male. Multiple search warrants revealed that Rogers had attempted contact with over fifty minor males and engaged in sexually explicit conversations with them. Rogers attempted to persuade the minors to send nude photographs of themselves and to meet in-person to engage in sex acts for money or alcohol. A cellphone seized from Rogers contained numerous images of child pornography. On October 12, 2021, Rogers pleaded guilty to all charges.
U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This matter was investigated by the Davenport Police Department.
This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nation-wide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Dallas Man Pleads Guilty to Leading Violent Sex Trafficking OrganizationRead the Press Release
A Dallas man who called himself “Macknificent” pleaded guilty today to human trafficking, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Tremont Blakemore, 42, was first charged in September 2019. He pleaded guilty Wednesday to sex trafficking through force, fraud, and coercion before U.S. District Judge Ada Brown.
“This defendant systematically brutalized his victims, convincing them that they had no choice but to live life according to his dictates,” said U.S. Attorney Chad Meacham. “We formed the North Texas Trafficking Task Force – a coalition of federal, state, and local law enforcement dedicated to ending the scourge of human trafficking – to pursue cases just like this one. We hope that this guilty plea will be a balm to survivors as they work to rebuild their lives.”
“This defendant’s era of coercing and violently forcing individuals into the perils of sex trafficking is over thanks to the work of our special agents and law enforcement partners who investigated and arrested this deviant criminal,” said acting Deputy Special Agent in Charge of HIS Dallas Bradley Hudson. “He will soon face the harsh realities of his transgressions as he spends a good portion of his life behind bars.”
In plea papers, Mr. Blakemore admitted to running a large-scale human trafficking organization, using the threat of grotesque violence to force women to engage in commercial sex acts for his financial benefit.
He compelled the women to travel cross-country to engage in commercial sex and posted ads for them on sites like Backpage.com. He demanded that the women to turn all proceeds over to him and required them to seek permission for personal expenditures.
Mr. Blakemore further admitted that when his victims disobeyed his “rules” – leaving the house without his permission, keeping money for themselves, etc. – he used violence to quell them into submission. According to court documents, victims told law enforcement that he slapped, punched, choked, kicked, and burned them with cigarettes.
“I’m going to make an example out of someone soon,” he wrote in a group text message to victims. “I will not continue to tolerate disrespect that’s one of my biggest pet peeves.”
In an effort to appear successful in order to recruit additional victims to his trafficking organization, Mr. Blakemore admitted, he used proceeds of his victim’s sexual encounters to purchase luxury goods, including multiple pieces of diamond and gold jewelry and multiple Rolex watches. He flouted his lifestyle to impress other traffickers, and even sported multiple trophies touting his success as a “pimp.”
Mr. Blakemore now faces up to 20 years in federal prison. His sentencing has been set for Thursday, Oct. 6.
Homeland Security Investigations’ Dallas Field Office conducted the investigation with the assistance of the Oakridge Police Department, the Dallas Police Department, the Federal Bureau of Investigation’s Dallas Field Office, and the North Texas Trafficking Task Force’s law enforcement partners. Assistant U.S. Attorneys Melanie Smith and Nicole Dana prosecuted the case.
If you believe you or someone you know is a victim of human trafficking, call local law enforcement or the confidential National Human Trafficking Hotline, staffed 24/7, at 1-888-373-7888.
DEA and Partners Hold National Prescription Drug Take Back Day April 30Read the Press Release
Memphis, TN- United States Attorney Joseph C. Murphy, Jr., joins the Drug Enforcement Administration in announcing that on April 30th, DEA will hold its 22nd National Prescription Drug Take Back Day. The biannual event will be held at thousands of collection sites around the country. The event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs. The service is free and anonymous.
With robust public participation, the National Prescription Drug Take Back Day Initiative continues to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they are vulnerable to misuse, theft or abuse by family members and visitors, including children and teens.
"Disposing of unneeded medications can help prevent drugs from being misused," said DEA Administrator Anne Milgram. "Overdose deaths continue to hit tragic record highs. I encourage everyone to dispose of unneeded prescription medications now."
"I encourage everyone to participate in the National Prescription Drug Takeback Day and take just a few minutes to rid their homes of any unneeded or expired medications," said Todd Scott, Special Agent in Charge of DEA’s Louisville Division. "This small act will go a long way in making our communities safer, by providing safe disposal and keeping prescription drugs out of the wrong hands."
Drug overdose deaths are up 16 percent in the last year, claiming more than 290 lives every day. According to a report published by the Substance Abuse and Mental Health Services Administration, a majority of people who misused a prescription medication obtained the medicine from a family member or friend.
The Centers for Disease Control and Prevention estimates that in the United States, more than 106,000 people died as the result of a drug overdose in the 12-month period ending November 2021, marking the most drug-related deaths ever recorded, with opioid-related deaths accounting for 75 percent of all overdose deaths.
For more than a decade, DEA’s National Prescription Drug Take Back Day has helped Americans easily rid their homes of unneeded medications—those that are old, unwanted, or no longer needed—that too often become a gateway to addiction. Working in close partnership with local law enforcement, Take Back Day has removed more than 15 million pounds of medication from circulation since its inception. These efforts are directly in line with DEA’s priority to combat the overdose epidemic in the United States.
On Saturday, April 30, 2022, DEA and its law enforcement partners will collect tablets, capsules, patches, and other solid forms of prescription drugs. Liquids (including intravenous solutions), syringes and other sharps, and illicit drugs will not be accepted. DEA will accept vaping devices and cartridges provided lithium batteries are removed.
A location finder and partner toolbox are available at www.DEATakeBack.com for easy reference to April 30 collection sites.
Year-round receptacles are available at more than 13,000 pharmacies, hospitals, police departments, and business. Additionally, with the passage of the DUMP Opioids Act in 2021, the public may now use drop boxes at Veterans Administration medical centers to dispose of controlled substance prescription medications. Check with your local VA health facility for more information.
With more than 13,000 year-round drop-off locations in the United States, every day can be Take Back Day.
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Court Appoints United States Attorney for the Western District of TennesseeRead the Press Release
Memphis, TN- The United States District Court for the Western District of Tennessee has appointed Joseph C. Murphy, Jr., as the United States Attorney for the Western District of Tennessee pursuant to 28 U.S.C. § 546(d). The appointment took effect on April 25, 2022, and on April 20, 2022, Chief United States District Judge S. Thomas Anderson administered the oath of office for Mr. Murphy’s appointment prior to its effective date. Mr. Murphy will serve in this capacity until the vacancy is filled by a Presidentially appointed, Senate-confirmed nominee.
Mr. Murphy, a graduate of Lambuth College and the Cecil C. Humphreys School of Law at the University of Memphis, has served as an Assistant United States Attorney in the United States Attorney’s Memphis office since 1989. He was named as the office’s First Assistant United States Attorney in July of 2018. Prior to being named First Assistant, Mr. Murphy served as the office’s Criminal Chief beginning in 2011. In that role he supervised 28 Assistant United States Attorneys who investigated and prosecuted criminal cases in the Memphis office and 10 support staff. He also served as Chief of the office’s Organized Crime and Drug Enforcement Task Force for three years before being named Criminal Chief. Between 1991 and 2007, Mr. Murphy served as a line assistant in both the office’s criminal division and drug task force.
During his career with the Justice Department, Mr. Murphy has tried approximately 125 felony cases to verdict in United States District Court. These cases included prosecutions of health care professionals for illegally distributing controlled substances; mail and wire fraud cases; and theft cases involving pension funds and interstate shipments. Mr. Murphy has also represented the government in over 200 cases litigated before the United States Court of Appeals for the Sixth Circuit, and he has argued approximately 48 cases before that court.
A Memphis resident, Mr. Murphy has been married to Sandy Murphy for 33 years and has two adult children. Active in community and legal affairs, he is a member of the Leo Bearman, Sr. Inn of the American Inns of Court and a Fellow of the Memphis Bar Foundation and has served as a volunteer with the Chickasaw Council of the Boy Scouts of America.
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Convicted Sex Offender Sentenced to 39 Months for Failing to Register and Violating Supervised ReleaseRead the Press Release
PHOENIX, Ariz. – Clifton Yazzie, 38, of Fort Defiance, Arizona, was sentenced on Monday by U.S. District Chief Judge G. Murray Snow to 30 months in prison for failing to register as a sex offender. Yazzie received an additional 18 months in prison for violating his supervised release in a related case. Yazzie previously pleaded guilty to Failure to Register as a Sex Offender and admitted to violating his supervised release.
At sentencing, Chief Judge Snow ordered that Yazzie serve 9 months for his supervised release violation after completing his sentence for Failing to Register as a Sex Offender, for a total of 39 months in prison. Yazzie was also sentenced to 10 years of supervised release and will be required to register as a sex offender for life. In order to protect the public, the conditions of supervision include that Yazzie participate in a sex offender treatment program and live at a residence preapproved by his probation officer, as well as restrictions on his involvement in certain vocational and volunteer activities.
The United States Marshals Service conducted the investigation in this case. Assistant U.S. Attorney Christine D. Keller, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-22-00034-GMS; CR-16-01285-GMS
RELEASE NUMBER: 2022-052_Yazzie# # #
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.Convicted Felon Who Fired at Occupied Vehicle Sentenced to Eight Years in Federal PrisonRead the Press Release
Tampa, FL – U.S. District Judge Susan C. Bucklew has sentenced Antonio Phillips (23, Tampa) to eight years in federal prison for possessing a firearm and ammunition as a convicted felon. Phillips had pleaded guilty on January 25, 2022.
According to court documents, on December 1, 2020, in Tampa, Phillips and others were inside a white Infiniti and pulled out in front of another occupied vehicle. The occupants of the Infiniti opened fire into the other vehicle’s windshield. After the shooting, law enforcement air support tracked the Infiniti, which had fled the scene. Video surveillance captured muzzle flashes coming from the passenger side of the Infiniti where Phillips was sitting. Numerous bullet holes were observed on the other vehicle. Phillips and others fled from the Infiniti, discarded weapons, jumped over fences and across yards before they were ultimately apprehended.
Officers recovered the firearms which had been discarded by the suspects. They included a Glock 19 (9mm), an FNH (.40-caliber), and a Glock 26 (9mm), along with a 50-round drum-style magazine and trigger mounted laser. Bullet casings recovered from the scene of the shooting had been fired from the Glock 19 and Glock 26 firearms. An empty semi-automatic magazine was recovered from the Infiniti’s driver's door pocket, and an empty black pistol holster was recovered from the back right passenger’s seat of the vehicle. Spent bullet casings were recovered from the front and back passenger’s compartments. DNA belonging to Phillips and three other men was recovered from the Glock 26.
Prior to these events, Philips had been convicted of multiple felonies and therefore is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Diego F. Novaes.
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.
Convicted Felon on Supervised Release Pleads Guilty to Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY—U.S. Attorney Trini E. Ross announced today that Charles Jones, 49, of Buffalo, NY, pleaded guilty to possession with intent to distribute cocaine before Senior U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 30 years in prison and a $2,000,000 fine. Jones also pleaded guilty to a violation of supervised release.
Assistant U.S. Attorney Meghan E. Leydecker, who is handling the case, stated that Jones was on supervised release following the completion of a 66-month prison sentence for a federal cocaine conviction. As a condition of his supervised release, on August 16, 2021, Jones reported to the U.S. Probation Office in Buffalo. While at the Probation Office, Probation Officers executed a search of Jones’s Broadway Avenue apartment. Jones had not reported this address as required, but U.S. Probation determined that he resided at this apartment. During the search, U.S. Probation Officers recovered quantities of crack cocaine, cocaine, and marijuana, a digital scale, $2,900 in cash, a Rolex watch appraised at $3,450, and two necklaces appraised at $1,350. According to the apartment complex’s manager, the defendant began leasing the apartment in March 2021.
The plea is the result of an investigation by the U.S. Probation Department, under the director of Chief Probation Officer Timothy Englert, the Erie County Sheriff’s Office, under the direction of Sheriff John Garcia, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division..
Sentencing is scheduled for August 3, 2022, at 10:00 a.m. before Judge Skretny.
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Convicted Felon Arrested on Multiple Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, NY—U.S. Attorney Trini E. Ross announced today that Jason Koscielski, 33, of Rochester, NY, was arrested and charged by criminal complaint with enticement of a minor, and possession and distribution of child pornography by an individual with a prior sex offense conviction. The charges carry a mandatory minimum penalty of 10 years in prison and a maximum of 40 years.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that according to the complaint, in December 2011, Koscielski was convicted on federal charges of possession, receipt and distribution of child pornography and sentenced to serve 135 months in prison and 30 years of supervised release. In September 2020, Koscielski was released from the Bureau of Prisons custody and began his term of supervised release. On September 15, 2020, during a meeting with a United States Probation Officer to review the terms of his supervision, Koscielski told the officer that he was in possession of an unmonitored cellular telephone. The officer confiscated the cell phone for review and installation of monitoring software. During a review of the cell phone, probation personnel observed images and videos that they believed could constitute child pornography. An FBI review of the images confirmed that the images and videos were child pornography. On September 16, 2020, Koscielski was charged with violating the conditions of his supervised release for possessing and downloading child pornography.
On December 17, 2020, Kosclelski pleaded guilty to a violation of his supervised release and was sentenced to serve another 12 months in prison. On July 26, 2021, Koscielski was once again released from Bureau of Prisons custody and began his second term of supervised release. In August 2021, Koscielski was placed at the Volunteers of America, Residential Reentry Center in Rochester, NY. However, in November 2021, Koscielski was unsuccessfully discharged from the program, resulting in another charge of violating supervised release. Koscielski was arrested on November 9, 2021.
On November 16, 2021, the Volunteers of America, Residential Reentry Center alerted probation that while bagging up Koscielski’s belongings in his bedroom at the center, another cell phone was located with his personal belongings. A review of the cell phone once again revealed suspected images of child pornography. The FBI examined the cell phone and observed numerous images of child pornography as well as several instant message conversations, during which he exchanged images of child pornography with two unidentified individuals and a 15-yeal-old minor victim.The complaint is the result of an investigation by the U.S. Probation Department, under the director of Chief Probation Officer Timothy Englert and the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent-in-Charge Stephen Belongia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Colorado Man Sentenced for Multiple RobberiesRead the Press Release
RICHMOND, Va. – A Denver, Colorado, man was sentenced today to 40 years in prison for committing at least two armed robberies of commercial businesses.
According to court documents, Lloyd E. Rhodes, II, 59, committed robberies at establishments both in Richmond and in Colorado Springs, Colorado. On August 3, 2019, Rhodes entered the Old Chicago restaurant, located in Colorado Springs and asked to speak with the restaurant manager. Rhodes was armed with a Taurus handgun and pointed the firearm at the manager and demanded money from the safe. The manager attempted to run out of the office and close and lock the door, but a struggle between Rhodes and the manager ensued, during which Rhodes discharged the firearm at the manager, striking him in the hand. After shooting the manager, Rhodes fled the scene.
On March 13, 2020, after traveling to Richmond, Rhodes entered the Virginia Horseplay, an off-track betting facility, and was seen interacting with other customers for several hours. Once the employees took the cash proceeds into an adjacent room to count the money from the evening business, Rhodes entered the room, displayed what appeared to be a firearm, and ordered the two employees onto the floor. In fear for their lives, the employees relinquished the money they had been counting. Rhodes then proceeded to empty the nearby safe, which contained additional cash proceeds from Virginia Horseplay. In all, Rhodes took over $40,000 in U.S. currency. As part of the plea agreement, the Colorado authorities agreed not to pursue four additional robberies in their jurisdiction.
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, made the announcement after sentencing by U.S. District Judge David J. Novak.
Assistant U.S. Attorney Peter Duffey 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. 3:21-cr-139.
Cheektowaga Man Pleads Guilty to Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Kenneth Ritchie, 31, of Cheektowaga, NY, pleaded guilty to production of child pornography before U.S. District Judge John L. Sinatra, Jr. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that on June 16, 2021, Ritchie engaged in sexually explicit conduct with a minor victim and used a cellular telephone to produce visual depictions of the conduct. The visual depictions were located in image files saved on Ritchie’s cell phone.
The plea is the result of an investigation by the Cheektowaga Police Department, under the direction of Chief Brian Gould, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
Sentencing is scheduled for August 24, 2022, at 10:00 a.m. before Judge Sinatra.
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Charleston man sentenced for firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Jalin Tyref Mcarn, of Charleston, West Virginia, was sentenced today to 30 months of incarceration for a firearms charge, United States Attorney William Ihlenfeld announced.
Mcarn, 28, pleaded guilty in January 2022 to one count of “Unlawful Possession of a Firearm.” Mcarn, a person prohibited from having firearms because of a prior conviction, admitted to having a semi-automatic pistol in June 2021 in Tyler County.
Assistant U.S. Attorney Clayton J. Reid prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Sistersville Police Department investigated.
U.S. District Judge John Preston Bailey presided.
Century Pharmacy, Inc. Agrees to $100,000 Settlement Relating to Controlled Substances Act ClaimsRead the Press Release
Louisville, KY – Century Pharmacy, Inc., doing business as Century Medicines of Elizabethtown, has agreed to pay $100,000 to resolve allegations that it failed to satisfy recordkeeping requirements of the Controlled Substances Act (CSA).
Century Medicines of Elizabethtown, KY, which is no longer in operation, was registered with the Drug Enforcement Administration (DEA) as a retail pharmacy. It was authorized to dispense controlled substances pursuant to provisions of the CSA. The CSA requires that each registered pharmacy maintain complete and accurate records of each controlled substance it receives and dispenses or otherwise discards. These requirements help ensure that controlled substances are properly managed, accounted for, and available for legitimate needs, and not diverted for illegal purposes. Failure to keep proper records subjects DEA registrants to civil monetary penalties.
According to the settlement agreement, between 2016 and 2020, Century Medicines could not account for dispensing or disposing of approximately 85,000 tablets of hydrocodone and oxycodone that it purchased and received. Century Medicines self-reported to DEA a suspected discrepancy between tablets received and dispensed or disposed of, and it cooperated with the investigation. It did not concede liability, but it agreed to pay $100,000 to settle all claims related to the alleged conduct.
“This investigation and settlement agreement confirms our commitment to enforcing the CSA,” said Michael A. Bennett, U.S. Attorney for the Western District of Kentucky. “In partnership with the DEA we will continue to aggressively investigate and pursue violations of the Act throughout the Western District.”
“Improper record keeping can contribute to the diversion of pharmaceuticals and the DEA takes these matters very seriously,” said Special Agent in Charge J. Todd Scott, of the DEA’s Louisville Division. “DEA registrants have an obligation to comply with the Controlled Substances Act or face severe penalties, as evidenced by this case.”
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Western District of Kentucky and the Drug Enforcement Administration.
This case was investigated by the DEA Louisville Division Diversion Program under the leadership of Special Agent in Charge J. Todd Scott, the Kentucky State Police, and the Kentucky Cabinet for Health and Family Services, Office of Inspector General.
Western District of Kentucky Assistant U.S. Attorney Timothy D. Thompson assisted in the oversight of the investigation and represented the United States in the settlement agreement.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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California Man Sentenced to Federal Prison for Role in Eastern Oregon Methamphetamine Trafficking ConspiracyRead the Press Release
PORTLAND, Ore.—A Vacaville, California man was sentenced to federal prison today for his role in a conspiracy to traffic large quantities of methamphetamine from California for distribution in Northeast Oregon and Southeast Washington.
Noel Lomas Murillo, 34, was sentenced to 60 months in federal prison and three years’ supervised release.
According to court documents, in November 2017, the Blue Mountain Enforcement Narcotics Team (BENT), Oregon State Police (OSP), and the FBI began investigating a drug trafficking organization led by Murillo’s brother, Abel Lomas Murillo, 28, of Weston, Oregon.
The investigation revealed that, as early as July 2017, Noel Murillo transported drugs from Vacaville to Klamath Falls, Oregon where a courier would deliver them to his brother. Abel Murillo also made multiple trips to Medford, Oregon to pick up drugs and transport them to Morrow and Umatilla Counties for distribution.
In January 2018, an OSP trooper stopped one of the Abel Murillo’s couriers, Luis Alberto Navarro, 33, of Boardman, Oregon, in a vehicle traveling near Klamath Falls en route to Umatilla County. A search of the vehicle revealed 11 concealed packages containing more than eight kilograms of methamphetamine.
In early May 2018, as the investigation continued, Abel Murillo enlisted another courier, Noel Ponce Villegas, 28, also of Boardman, to drive methamphetamine from Medford to Boardman. Investigators surveilled Abel Murillo as he traveled from Umatilla County to a storage locker in Medford and loaded a trailer pulled by his truck. Abel Murillo paid Villegas to drive his truck and trailer while he followed him to minimize his own risk. In the early morning hours of May 6, 2018, investigators from BENT, OSP and FBI stopped Abel Murillo and Villegas as they drove near mile marker 102 on Interstate 84.
Investigators seized 42 packages of methamphetamine, 36 of which were concealed in the false bottom of a propane tank. The packages contained approximately 17.6 kilograms of methamphetamine. Later the same day, investigators executed a search warrant at Abel Murillo’s residence, seizing 29 firearms and body armor. Pursuant to a separate search warrant, another 10 pounds of methamphetamine and five firearms were found in a Medford storage locker Abel Murillo had visited earlier in the weekend.
On December 19, 2019, a federal grand jury in Portland returned a two-count superseding indictment charging Noel Murillo with conspiring to possess with intent to distribute and distribute methamphetamine and possessing with intent to distribute methamphetamine. On September 28, 2021, he pleaded guilty to the conspiracy charge.
On May 7, 2018, Navarro pleaded guilty to possessing with intent to distribute methamphetamine. He will be sentenced on May 23, 2022.
On April 15, 2019, Abel Murillo pleaded guilty to conspiring to possess with intent to distribute methamphetamine. On September 10, 2019, he was sentenced to 235 months in federal prison and five years’ supervised release.
On April 18, 2019, Villegas pleaded guilty to possessing with intent to distribute methamphetamine. On December 16, 2020, he was sentenced to time served and three years’ supervised release.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by BENT, OSP, and the FBI. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Seized methamphetamine in vehicle trunk.Buffalo Man Pleads Guilty to Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Marquis Workman a/k/a Smurf, 27, of Buffalo, NY, pleaded guilty possession of a firearm in furtherance of drug trafficking before U.S. District Judge John L. Sinatra, Jr. the charge carries a mandatory minimum penalty of five years in prison, a maximum of life, and a fine of $250,000
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that on June 2, 2021, investigators obtained a federal search warrant for a parcel addressed to the residence of Workman and his girlfriend Cameile Garrett on Beverly Road in Buffalo. Inside the parcel were two separate sealed bags of pills containing Methyl 2-(4-fluorophenyl)-2-(piperidin-2-yl) acetate, a controlled substance analogue. During the execution of a search warrant of the Beverly Road residence on June 4, 2021, investigators recovered quantities of cocaine, adinazolam, carisoprodol, clonazepam, $5,753 in cash, a scale consistent with the weighing and measuring narcotics, a loaded handgun, a loaded revolver handgun, and two long guns.
Cameile Garrett was previously convicted and is awaiting sentencing.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division.
Sentencing is scheduled for October 19, 2022, before Judge Sinatra.
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Buffalo Man Accused of Lying on Passport ApplicationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Melvin Leon Lee a/k/a Mohammad Caliph Lei, 70, of Buffalo, NY, was arrested and charged by criminal complaint with making a false statement in application and use of passport. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that according to the complaint, in April 2021, Melvin Leon Lee applied for a United States Passport. When Lee was asked if he had ever used any other names, he left that box on the application blank. The application was denied. Subsequent investigation determined that Lee falsely claimed that two prior passports, issued in July 1976 and March 1980, were lost. The investigation also uncovered Lee’s use of a second identity, “Mohammad Caliph Lei.” The defendant’s “Lei” identity was prevented from receiving a passport because of $12,450 in unpaid child support debt. As a result of that debt, Lei has been certified for passport denial since November 2001.
The complaint is the result of an investigation by the Department of State, Diplomatic Security Service, under the direction of Special Agent-in-Charge Keith J. Byrne, New York Field Office and the Social Security Administration Office of Inspector General, under the direction of Special Agent-in-Charge Sharon B. MacDermott, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Boston Police Officer Pleads Guilty to Tax ChargeRead the Press Release
BOSTON – A Boston Police Officer pleaded guilty today in federal court in Boston to failing to report gambling winnings on his tax returns.
Dana Lamb, 57, of Roslindale, pleaded guilty to one count of filing a false document with the Internal Revenue Service. U.S. District Court Magistrate Judge Jennifer C. Boal scheduled sentencing for June 30, 2022. Lamb was charged on April 7, 2022.
In May 2020, while an Officer for the Boston Police Department, Lamb sold a winning lottery ticket worth $10,000 to a convenience store owner for cash rather than properly claiming it with the Massachusetts Lottery Commission. He then failed to report his gambling winnings on his U.S. Individual Tax return for the that year. Lamb’s failure to report the gambling proceeds resulted in an additional tax due and owing for that year of $1,800.
The charge of filing a false document with the Internal Revenue Service provides for a sentence of up to one year in prison, one year of supervised release and a fine of up to $10,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Boston Police Acting Commissioner Gregory Long made the announcement today. Valuable assistance was provided by the Massachusetts State Lottery Commission. Assistant U.S. Attorney Eugenia M. Carris, Deputy Chief of Rollins’s Public Corruption Unit, is prosecuting the case.
Boise Woman Sentenced for Drug TraffickingRead the Press Release
BOISE – A Boise woman was sentenced to 125 months in federal prison for possessing methamphetamine with the intent to distribute it to others.
According to court records, in April 2019, Angelina Ruth Bustamonte was stopped by police for a traffic violation. During the investigation, a drug detecting canine sniffed Bustamonte’s vehicle and alerted to the odor of a controlled substance. A subsequent search of Bustamonte’s vehicle revealed three pounds of methamphetamine along with other items of drug paraphernalia. These drugs were intended to be distributed throughout the Treasure Valley.
Then, in October 2021, Bustamonte was arrested for failure to follow court orders. During the arrest, Bustamonte refused to follow the officers’ commands and smashed into police vehicles in an attempt to flee. A later search of Bustamonte’s vehicle revealed a firearm, methamphetamine, and additional items of drug paraphernalia.
Chief U.S. District Judge David C. Nye also ordered Bustamonte to serve five years of supervised release following her prison sentence. Bustamonte has three prior felony convictions, one of which involved trafficking in methamphetamine.
U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Drug Enforcement Administration, Ada County Sheriff’s Office, Boise Police Department, and United States Marshals Service Greater Idaho Fugitive Task Force, which led to charges.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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