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15 April 2022
Former Oklahoma Supervisory Corrections Officer Convicted for Facilitating White Supremacist Assault on Black Inmates and Ordering Other AbuseRead the Press Release
OKLAHOMA CITY – A federal jury in Oklahoma City, Oklahoma, convicted a former Kay County Oklahoma supervisory corrections officer of violating the civil rights of three pretrial detainees held at the Kay County Detention Center (KCDC). Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division and U.S. Attorney Robert Troester of the Western District of Oklahoma made the announcement.
The jury convicted Matthew Ware, 53, of willfully depriving two pretrial detainees of their right to be free from a corrections officer’s deliberate indifference to a substantial risk of serious harm and of willfully depriving a third pretrial detainee of the right to be free from a corrections officer’s use of excessive force. He was ordered to the custody of the U.S. Marshals Service yesterday after the jury rendered its verdict.
"This high-ranking corrections official had a duty to ensure that the civil rights of pretrial detainees in his custody were not violated," said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. "The defendant abused his power and authority by ordering subordinate corrections officers to violate the constitutional rights of several pretrial detainees. The Civil Rights Division will continue to hold corrections officials accountable when they violate the civil rights of detainees and inmates."
"Criminal conduct by any corrections employee violates the public trust and unfairly tarnishes the reputation of all corrections officials who honorably perform their important work each day," said U.S. Attorney Robert J. Troester for the Western District of Oklahoma. "This verdict demonstrates our continuing commitment to protect the civil rights of all Oklahomans, including those in custody. I commend the outstanding work of Assistant U.S. Attorney Julia Barry and Trial Attorney Laura Gilson, who vigorously prosecuted this case, and the FBI Special Agents and other law enforcement officials who conducted this investigation."
"The preservation of civil rights and the investigation of color of law violations are of utmost priority for the FBI," said Special Agent in Charge Ed Gray of the FBI Oklahoma City Field Office. "If we don’t hold our very own law enforcement officials accountable, those sworn to protect and serve, what hope will the American people have? Mr. Ware’s actions were impermissible and undignified, particularly given his leadership role. His conviction is a prompt reminder that no one is above the law."
The evidence and testimony revealed that, on May 18, 2017, while Ware served as the Lieutenant of the KCDC, he ordered lower-ranking corrections officers to move two Black pretrial detainees, D’Angelo Wilson and Marcus Miller, to a cell row housing white supremacist inmates whom Ware knew posed a danger to Wilson and Miller. Later that same day, Ware gave lower-ranking officers a second order: to unlock the jail cells of Wilson and Miller, and those other white supremacist inmates at the same time the following morning. When Ware’s orders were followed, the white supremacist inmates attacked Wilson and Miller, resulting in physical injury to both, including a facial laceration to Wilson that required seven stitches to close.
The evidence and testimony also revealed that, on Jan. 31, 2018, while Ware served as the Acting Captain of the KCDC, he ordered lower-ranking corrections officer to restrain another pretrial detainee, Christopher Davis, in a stretched-out position — with Davis’ left wrist restrained to the far-left side of the bench and his right wrist restrained to the far-right side of the bench — in retaliation for Davis sending Ware a note that criticized how Ware ran the KCDC. Davis was left restrained in this position for 90 minutes, resulting in physical injury.
Ware faces a maximum sentence of 10 years in prison, three years of supervised release and a fine of up to $ 250,000 for each violation. Sentencing will take place in approximately 90 days.
The case was investigated by the FBI’s Oklahoma City Field Office. Assistant U.S. Attorney Julia Barry of the Western District of Oklahoma and Trial Attorney Laura Gilson of the Civil Rights Division prosecuted the case.
Former Michigan Corrections Officer Charged with Drug DistributionRead the Press Release
FLINT– A former Michigan Department of Corrections officer was charged in a federal indictment with possession with intent to distribute methamphetamine; possession with intent to distribute cocaine; and possession with intent to distribute heroin, announced United States Attorney Dawn N. Ison.
Joining in the announcement was Acting Special Agent in Charge Kent Kleinschmidt, Drug Enforcement Administration, Detroit Division.
Charged was Brandon McGaffigan, 29, of Flint, Michigan. McGaffigan was employed as a corrections officer at Thumb Correctional Facility in Lapeer County Michigan.
According to the indictment, McGaffigan is alleged to have possessed with the intent to distribute over 50 grams of methamphetamine as well as cocaine and heroin on January 22, 2022 with the intent of delivering the drugs into the prison. The indictment was returned on April 6, 2022. McGaffigan surrendered to DEA investigators and was arraigned before United States Magistrate Judge Curtis Ivy, Jr., the following day where he was released on bond. A trial date is currently set for June 14, 2022, in Flint, Michigan.
“As a corrections officer, McGaffigan’s duties are to maintain safety and security within the facility,” stated U.S. Attorney Ison. “The allegations that he intended to smuggle drugs into the prison completely undermines his duties as a corrections officer and creates significant dangers within the walls of the prison.”
“Illicit drugs have no place in our society, but they can be especially problematic inside a correctional facility,” said Detroit Division Acting Special Agent in Charge Kent Kleinschmidt. “No matter your profession or background, DEA will investigate anyone who violates the nation’s drug laws.”
The Drug Enforcement Administration Flint Residence Office, in coordination with the Thumb Area Narcotics Unit, the Michigan Department of Corrections, and Michigan State Police investigated this case. The case is being prosecuted by Assistant United States Attorney Timothy Turkelson.
An indictment is only an allegation. A defendant is considered innocent unless and until proven guilty.
Former Local Union Vice President Sentenced to Two Years for Operating Overtime Kickback Scheme in the Allentown Post OfficeRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Joseph Whitbeck, 56, of Tamaqua, PA, was sentenced to two years in prison, three years of supervised release, and ordered to pay a $50,000 fine by United States District Court Judge Edward G. Smith for devising a scheme to defraud fellow union members out of rightfully earned overtime compensation.
In November 2021, the defendant pleaded guilty to multiple charges of wire fraud and honest services wire fraud. While serving as the Vice President for the Local 274 branch of the National Association of Letter Carriers in the Lehigh Valley area, Whitbeck operated a kickback scheme involving certain letter carriers at the Allentown Post Office. As the Vice President, the defendant filed numerous grievances on behalf of groups of letter carriers, claiming that U.S. Postal Service managers violated overtime rules. Whitbeck then settled these class-action grievances for total lump sums, without designating the specific individuals to whom overtime grievance payments were owed, so that he could select the payees at a later time. Meanwhile, Whitbeck offered to secure extra overtime grievance payouts for some letter carriers who agreed to kick back a portion directly to him, generally in cash. This kickback scheme prevented non-participating letter carriers from receiving overtime grievance funds to which they were entitled. The defendant often made false and misleading statements to convince letter carriers to participate in his scheme; for example, he frequently told letter carriers that he would use the kick-backed funds to assist other letter carriers who were out of work.
The defendant’s covert kickback scheme lasted more than a decade and was uncovered only when a concerned letter carrier raised the issue at a union Executive Board meeting in March 2018.
“Union representatives are supposed to act in the best interest of their members, not swindle them out of rightfully earned pay or urge them to participate in fraud,” said U.S. Attorney Williams. “As Vice President of the local branch of Letter Carriers, Whitbeck had a duty to advocate on behalf of all members in the Allentown Post Office in connection with the equitable distribution of overtime grievance settlements. He abused his position and for that he will now spend [months or years] in prison.”
“Mr. Whitbeck used his union position to take financial advantage of the very colleagues he was charged with representing. The U.S. Postal Service Office of Inspector General together with the U.S Attorney’s Office and our law enforcement partners will pursue those individuals who would use their positions of public trust within the Postal Service to victimize or steal from others for personal gain,” said Acting Special Agent in Charge Michael Spolidoro, Mid-Atlantic Area Field Office-Office of Inspector General for the U.S. Postal Service.
The case was investigated by the U.S. Postal Service – Office of Inspector General, the U.S. Department of Labor – Office of Inspector General, and the U.S. Department of Labor – Office of Labor-Management Standards, and is being prosecuted by Assistant United States Attorney Patrick J. Murray.
Former Employee of a Travel Insurance Company Sentenced to over 2 Years in Federal Prison and Must Pay over $496,000 in Restitution for Wire FraudRead the Press Release
INDIANAPOLIS – Maria Caceres, 56, of Coral Springs, Florida and formerly of Hamilton County, Indiana, was sentenced late yesterday to 30 months in federal prison following her conviction of wire fraud, to which she had previously plead guilty.
According to court records, Caceres was employed by Seven Corners, a travel insurance business located in Carmel. Between May 2011 and September 2016, Caceres prepared and submitted thirty fraudulent insurance claims to Seven Corners totaling more than $650.000. As part of the scheme, Caceres and her accomplices created fictitious names under which they purchased insurance policies from the victim company. Caceres and her accomplices created false email addresses in the name of a hospital in Venezuela and submitted claims to the victim company for purported emergency medical services provided to the fictitious individuals during international travel. In fact, none of these expenses were ever incurred and Caceres had created artificial customer accounts and false documents in support of the claims. As a result of the fraud, the victim company paid over $588,000 to accounts controlled by Caceres’ accomplices.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana and FBI Indianapolis Special Agent in Charge Herbert J. Stapleton made the announcement.
The Federal Bureau of Investigation investigated the case. The sentence was imposed by U.S. District Judge Richard L. Young. As part of the sentence, Judge Young ordered that the defendant be supervised by the U.S. Probation Office for one year following her release from prison. Caceres was also ordered to pay over $496,000.00 in restitution.
U.S. Attorney Myers thanked Assistant U.S. Attorneys James M. Warden and Bradly P. Shepard who prosecuted this case.
Former Bank Employee Pleads Guilty to Manipulating U.S. Treasury Securities PricesRead the Press Release
A former trader at a global financial institution pleaded guilty yesterday to manipulating U.S. Treasury securities prices.
According to court documents, Tyler Forbes, 27, of Manlius, New York, was employed as a trader on the U.S. Treasuries desk of a global financial institution. From approximately January to June 2019, Forbes engaged in an unlawful “spoofing” scheme to manipulate the price of certain U.S. Treasury securities traded in the secondary (or “cash”) market — predominantly two and three-year U.S. Treasury notes, as well as 10-year U.S. Treasury notes. Forbes’s spoofing strategy involved electronically placing large, non-bona fide “spoof orders” that he intended to cancel prior to execution on one side of the market, while simultaneously entering smaller, genuine orders that he intended to execute on the opposite side of the market. Many of Forbes’s genuine orders were “iceberg” orders, meaning that only a portion of the order’s full size was visible to other market participants at any given time, whereas all of Forbes’s spoof orders were fully displayed. The purpose of Forbes’s “spoof orders” was to create a false appearance of market depth and activity in order to mislead other traders, and to artificially raise or depress the prevailing market price so that Forbes could execute his genuine orders more easily or more profitably.
Forbes pleaded guilty to one count of manipulation of security prices. He is scheduled to be sentenced on July 28 in the Eastern District of New York and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.
The FBI investigated the case.
Deputy Chief Avi Perry and Trial Attorney Sara Hallmark of the Criminal Division’s Fraud Section are prosecuting the case.
Federal Grand Jury in Paducah Charges Methamphetamine Distribution and Firearms Related OffensesRead the Press Release
Paducah, KY –A federal grand jury returned indictments earlier this week against seven people for their roles in methamphetamine distribution and firearms offenses. According to the indictments filed this week:
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Edward M. Ibold, 37, and Nickole J. Console, 27, both of Grand Rivers, Kentucky, were charged with possession with the intent to distribute methamphetamine. The case is being investigated by the Drug Enforcement Administration and the McCracken County Sheriff’s Office.
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Donald K. Duncan, 51, of Salem, Kentucky, was charged with possession with the intent to distribute methamphetamine. The case is being investigated by the Drug Enforcement Administration, the Kentucky State Police, and the Marshall County Sheriff’s Office.
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Billy J. Burns, 30, of Paducah, Kentucky, was charged with possession with the intent to distribute methamphetamine. The case is being investigated by the Drug Enforcement Administration, the McCracken County Sheriff’s Office, and the Graves County Sheriff’s Office.
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Joseph R. Smith, 31, of Las Vegas, Nevada and Detroit, Michigan, was charged with possession with the intent to distribute methamphetamine. The case is investigated by the Drug Enforcement Administration and the McCracken County Sheriff’s Office.
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Richard Middleton, 41, and Bobby Copeland, 52, both of Tiline, Kentucky, were charged with conspiring to possess with the intent to distribute methamphetamine and with distributing methamphetamine. Middleton was also charged with two additional counts of distributing methamphetamine and with two counts of possession of a firearm by a prohibited person. The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Homeland Security Investigations, the United States Fish and Wildlife Service, the Western Kentucky Violent Crimes Task Force, the Lyon County Sheriff’s Office, the Livingston County Sheriff’s Office, and the Kentucky State Police.
If convicted at trial, the defendants each face not less than 10 years and not more than life in prison for possession with the intent to distribute and distribution of methamphetamine. Middleton faces a 10-year term of imprisonment for possession of a firearm by a prohibited person. There is no parole in the federal system.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky made the announcement.
All cases, except U.S. v Joseph R. Smith, are being prosecuted by Assistant United States Attorney Leigh Ann Dycus. The Smith case is being prosecuted by Assistant United States Attorney Seth Hancock.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Federal Grand Jury Charges 18, Including the “M30 King of Fresno” and His Fentanyl Trafficking RingRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 21-count indictment Thursday against 18 individuals, charging them with illegally trafficking fentanyl, fentanyl analogue, methamphetamine, and cocaine as well as illegally possessing firearms, U.S. Attorney Phillip A. Talbert announced.
Horacio Torrecillas Urias Jr., 22, of Fresno, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl, conspiracy to distribute and to possess with intent to distribute cocaine and methamphetamine, conspiracy to distribute and to possess with intent to distribute fentanyl, conspiracy to possess with intent to distribute and distribute methamphetamine, conspiracy to possess with intent to distribute and to distribute fentanyl (two counts), conspiracy to possess with intent to distribute and to distribute cocaine, and distribution of fentanyl.
Amadeo Sarabia Jr., 22, of Fresno, is charged with conspiracy to possess with intent to distribute and to distribute fentanyl and possession with intent to distribute fentanyl.
Justin Dwayne Riddle, 34, of Las Cruces, New Mexico, is charged with conspiracy to possess with intent to distribute and distribute methamphetamine.
Alma Garza, 21, of Fresno, is charged with conspiracy to distribute and to possess with intent to distribute cocaine and methamphetamine and distribution of fentanyl.
Juan Valencia Jr., 22, of Fresno, is charged with conspiracy to possess with intent to distribute and to distribute fentanyl and distribution of fentanyl.
Abel Lozano, 28, of Sanger, is charged with possession with intent to distribute methamphetamine.
Henry Cox, 22, of Sanger, is charged with conspiracy to distribute and to possess with intent to distribute fentanyl and attempted distribution of fentanyl.
Alejandro Guzman, 28, of Fresno, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl and possession with intent to distribute methamphetamine and fentanyl.
Erica Ramirez, 22, of Fresno, is charged with conspiracy to distribute and to possess with intent to distribute fentanyl and possession with intent to distribute fentanyl.
Brayan Cruz, 24, of Fresno, is charged with conspiracy to possess with intent to distribute and to distribute fentanyl.
Jacob Valles, 26, of Fresno, is charged with possession with intent to distribute cocaine and fentanyl and possession of a firearm in furtherance of a drug trafficking crime.
Cody Fyfe, 22, of Fresno, is charged with possession with intent to distribute fentanyl.
Christian Harris-Blanchette, 26, of Fresno, is charged with possession with intent to distribute fentanyl.
Marvin Carreno, 23, of Fresno, is charged with possession with intent to distribute fentanyl.
Victor Yair Torrecillas-Urias, 27, of Fresno, is charged with conspiracy to possess with intent to distribute and to distribute cocaine.
Oscar Jaramillo-Cortez, 26, of Fresno, is charged with conspiracy to possess with intent to distribute and to distribute cocaine and possession with intent to distribute cocaine.
Alex Garcia, 23, of Fresno, is charged with distribution of fentanyl.
Agustin Hernandez, 28, of Fresno, is charged with possession with intent to distribute fentanyl.
According to court documents, the investigation began after a series of fentanyl-pill overdoses in the Fresno area. These overdoses were caused by counterfeit oxycodone M30 tablets containing fentanyl, referred to on the street as M30s. Similar to authentic oxycodone M30 tablets, they are small, round, and light blue or green in color with “M” stamped on one side and “30” on the other. The investigation, dubbed “Operation Killer High,” aimed to search for the drug dealers believed to have supplied the toxic pills that caused the recent spike in fentanyl-related overdoses. The operation uncovered a large drug-trafficking ring led by Horacio Torrecillas Urias Jr., the self-proclaimed “M30 king of Fresno.”
According to the criminal complaint, Torrecillas Urias Jr. was obtaining, directly from sources in Mexico, tens of thousands of counterfeit M30 fentanyl pills and large quantities of fentanyl powder, cocaine and methamphetamine. He and his co-defendants were then distributing these illicit narcotics to drug dealers inside and outside of California. During the investigation, federal, state, and local law enforcement agents conducted traffic stops, intercepted packages, and executed residential search warrants that resulted in the recovery of over 55,000 counterfeit M30 fentanyl pills, 6 pounds of fentanyl powder, 10 pounds of methamphetamine, a pound of cocaine, 25 firearms, and hundreds of rounds of ammunition
The case was the result of an investigation by FORT (a multi-agency team composed of Homeland Security Investigations, the Drug Enforcement Administration, and the Fresno Police Department), the U.S. Postal Inspection Service, the Clovis Police Department, the Fresno County Sheriff’s Office, and the Fresno County District Attorney’s Office. The Bakersfield Police Department and the California Highway Patrol assisted in the case. Assistant U.S. Attorneys Justin J. Gilio and Laurel J. Montoya are prosecuting the case.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
If convicted, the defendants each face a statutory penalty range including a minimum of 10 years and a maximum of life in prison and fines up to $1 million to $10 million. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fayette County Woman Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Fayette County woman pleaded guilty to the distribution of methamphetamine.
According to court documents, Brittany Ellen Flint, 32, of Fayetteville, admitted that she sold approximately 6.893 grams of methamphetamine to a confidential informant on January 10, 2022, in Oak Hill.
Flint pleaded guilty Thursday and is scheduled to be sentenced on July 20, 2022. Flint faces a maximum penalty of 20 years in prison.
United States Attorney Will Thompson made the announcement and commended the Drug Enforcement Administration (DEA), the Central West Virginia Drug Task Force and the Oak Hill Police Department for conducting the investigation.
United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Nick Miller is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-35.
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Convicted Felon Sentenced to Prison for Possessing Rifle That He Displayed on Social MediaRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Christian Agosto (22, Brandon) to four years and three months in federal prison for possessing a firearm as a convicted felon. Agosto had pleaded guilty on December 15, 2021.
According to court documents, Agosto, a convicted felon, held and displayed an assault rifle during an Instagram live video on July 22, 2021. Agosto was on community control at the time of the video and was being supervised by the Florida Department of Corrections. On July 28, 2021, Agosto’s probation officer and other law enforcement officers searched Agosto’s residence and recovered a Ruger AR-556 rifle, loaded with ammunition, from inside a closet. The firearm matched the rifle Agosto had displayed during the Instagram live video.
This case was investigated by the Federal Bureau of Investigation, the Tampa Police Department, the Hillsborough County Sheriff’s Office, and the Florida Department of Corrections. It was prosecuted by Assistant United States Attorney Michael Sinacore.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Cleveland Tax Return Preparer Charged with Submitting False Returns for ClientsRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that a federal grand jury returned a fifteen-count indictment charging Eiahnna Pique, 42, of Cleveland, with aiding and assisting in the preparation and presentation of a false and fraudulent income tax return.
According to the indictment, the defendant acted as a tax return preparer and operated two tax preparation franchises. The indictment states that the defendant collected information from clients, including income, names, addresses, social security numbers and dates of birth, to use when preparing tax returns.
The indictment states that for the tax years 2015-2018, the defendant used information obtained from clients to file false and fraudulent tax returns in the names of clients and charged a fee for these services. It is also alleged that the defendant added false Schedule C expenses and fictitious business losses to client tax returns and submitted at least one return with a false dependent. Additionally, the defendant is accused of depositing a portion of refunds received from client returns into bank accounts controlled by the defendant without client approval or knowledge.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it is the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This case was investigated by IRS Criminal Investigation (CI) and is being prosecuted by Assistant U.S. Attorney Kathryn G. Andrachik.
Cleveland Man Previously Sentenced to Life Convicted of Drug Trafficking and Possession of a Firearm as a FelonRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that a federal jury returned guilty verdicts on Thursday, April 14, 2022, against Defendant Andre Badley, 49, of Cleveland, Ohio, following a four-day trial before U.S. District Judge John R. Adams in Akron. Badley was convicted of possession with intent to distribute crack cocaine, cocaine, fentanyl and heroin, and being a felon in possession of a firearm.
Badley was previously convicted in 1997 in the United States District Court for the Northern District of Ohio and sentenced to life in prison for distribution of crack cocaine and cocaine. Badley served more than 23 years of that sentence and was released in 2019 under the First Step Act.
According to court documents, on March 5, 2021, law enforcement authorities executed a search warrant at a residence known to be occupied by Badley after receiving information regarding suspected drug trafficking activity. During the search, a K-9 unit alerted authorities to the presence of controlled substances, and investigators found large quantities of crack cocaine, cocaine, fentanyl and two firearms in the residence. Then, on March 25, 2021, Badley was found to be in possession of another large quantity of crack cocaine in his vehicle.
Badley is prohibited from possessing a firearm due to a previous conviction of drug trafficking in the United States District Court for the Northern District of Ohio.
A sentencing date has yet to be scheduled. Badley faces a statutory maximum penalty of life in prison.
This case was investigated by the Shaker Heights Police Department, with assistance from the DEA and ATF. This case is being prosecuted by Assistant U.S. Attorneys Robert J. Kolansky and Vanessa V. Healy.
California Man Convicted of COVID-19 Relief FraudRead the Press Release
A federal jury convicted a California man today of misappropriating hundreds of thousands of dollars in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
According to evidence presented at trial, Oumar Sissoko, 59, whose last known residence was in Temecula, submitted a PPP loan application on behalf of his company, Road Doctor California LLC, and obtained $7.25 million. The loan application certified that the funds would be used to retain workers and maintain payroll or make mortgage-interest payments, lease payments, and utility payments. In early May 2020, Sissoko misappropriated hundreds of thousands of dollars of the PPP loan proceeds to use for impermissible purposes, including the purchase of a luxury car for more than $100,000, the satisfaction of a loan made to Sissoko in connection with his prior acquisition of a different luxury car, and the purchase of a computer for almost $6,000. Sissoko also attempted to transmit approximately $150,000 to accounts in Mauritania associated with a different company for which Sissoko purported to serve as CEO.
Sissoko was convicted of four counts of wire fraud. He is scheduled to be sentenced on July 18 and faces up to 20 years in prison for each count of conviction. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Tracy L. Wilkison for the Central District of California; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Assistant Director in Charge Kristi K. Johnson of the FBI’s Los Angeles Field Office; Special Agent in Charge Weston King of the U.S. Small Business Administration’s Office of Inspector General’s (SBA-OIG) Western Region; and Special Agent in Charge Jeffrey D. Pittano of the San Francisco Regional Office of the Federal Deposit Insurance Corporation’s Office of Inspector General (FDIC-OIG) made the announcement.
The FBI, SBA-OIG, and FDIC-OIG investigated the case.
Assistant U.S. Attorney Carolyn Small for the Central District of California and Trial Attorney Jason Covert of the Criminal Division’s Fraud Section prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Baton Rouge Man Charged with Wire Fraud, Extortion in Interstate Communications, Attempted Escape, and Assault on an OfficerRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that a federal grand jury recently returned a fifteen-count indictment charging Monty Matthews, age 52, of Baton Rouge, Louisiana, with wire fraud, extortion in interstate communications, attempted escape, and assault on an officer.
According to the indictment, between the summer of 2017 and March 2022, Matthews devised a fraud scheme targeting elderly victims through false representations about the existence of companies and investment opportunities, resulting in a loss of more than $1M. During the period of the scheme, Matthews would send false and, at times, threatening messages via cellular phone to the victims to induce them to make and continue to make investments in the form of cash that could only be delivered to him. Matthews, however, never invested any of the cash on behalf of the victims, nor returned any type of refund, profit, dividend, interest, or any other thing of value to them. After his arrest on March 23, 2022, Matthews attempted to escape from the custody of FBI agents and, in the process of attempting to escape, assaulted two FBI special agents.
This matter is being investigated by the Federal Bureau of Investigation and East Baton Rouge Sheriff’s Office, with assistance by Acadian Ambulance personnel, and is being prosecuted by Assistant United States Attorney Paul L. Pugliese.
NOTE: An indictment is an accusation by a grand jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Attleboro Gun Trafficker Sentenced to Nearly Five Years in PrisonRead the Press Release
BOSTON – An Attleboro man previously convicted of illegal gun possession in Rhode Island was sentenced yesterday for trafficking dozens of guns from Georgia into Massachusetts.
Richard Philippe, 42, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 57 months in prison and three years of supervised release. On Dec. 17, 2021, Philippe was convicted by a federal jury of transporting firearms into Massachusetts from Georgia without a license and being a felon in possession of ammunition.
Between April and June 2019, Philippe purchased dozens of handguns from a straw purchaser in Georgia. Philippe returned with the guns to a warehouse in Taunton where he sold them for cash. Philippe, who had a prior felony firearms conviction in Rhode Island, had neither the lawful ability to possess firearms or ammunition, nor a federal license to deal in firearms.
The investigation arose following a July 2019 undercover purchase of two guns from a long-time Brockton drug dealer, who had purchased those two guns and more than a dozen other guns from Philippe and had been selling them into criminal commerce on the South Shore. The undercover operation triggered a search of Philippe’s warehouse in Taunton, which revealed Philippe’s firearm trafficking. The weapons were traced back to multiple purchases by Philippe’s straw purchaser from a pawn shop in Georgia specializing in selling low-cost guns.
Several guns that Philippe transported and sold were found by police in the possession of criminals and drug dealers. One gun trafficked by Philippe was used by a gang member to fire at rival associates at the Braintree Mall, but tragically struck an innocent 15-year-old girl twice, in the hand and in the chest. The victim survived.
Other guns were hazardously abandoned, such as one gun that was discovered within a pile of leaves in a parking lot in Taunton, loaded with 12 bullets. Another gun was found by cleaning staff in a vacated hotel room in Brockton.
United States Attorney Rachael S. Rollins and James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement. Valuable assistance was provided by the Massachusetts State Police, Brockton Police Department, Taunton Police, the Plymouth County Sheriff’s Department, the North Carolina State Highway Patrol and the Rhode Island State Police. Assistant U.S. Attorneys Fred M. Wyshak III and John T. McNeil of Rollins’ Organized Crime & Gang Unit prosecuted the case.
14 April 2022
Woman Sentenced to over 20 Years in Federal Prison for Second Degree Murder on the Isabella Indian ReservationRead the Press Release
BAY CITY - A 22-year-old resident of Blanchard, Michigan, was sentenced today to 250 months in federal prison after having pleaded guilty to murder in the second degree announced United States Attorney Dawn N. Ison.
Joining in the announcement was James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Division.
Sentenced was Kaden Elizabeth Gilbert. The sentencing took place in Bay City, Michigan before the Honorable Thomas Ludington.
According to court records, in November of 2020, Gilbert went to the victim’s residence and intentionally stabbed her with a knife severing her femoral artery. The victim lost a significant amount of blood and died due to the stabbing. The crime occurred on the Isabella Reservation in Mt. Pleasant, Michigan. Gilbert is a non-Indian. The victim was Indian.
“My office extends its deepest condolences to the family of the victim in this case,” stated U.S. Attorney Ison. “It is our sincerest hope that this sentence brings a measure of justice to the victim’s family and friends.”
“The FBI is committed to serving and protecting members of the Native American community – especially when they are victimized on Tribal land,” said Special Agent in Charge James A. Tarasca of the FBI’s Detroit Field Office. “I would like to thank the Mount Pleasant Police Department and the Bureau of Indian Affairs for their partnership during this investigation.”
The case was investigated by the Mount Pleasant Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Roy Kranz and Assistant United States Attorney J. Michael Buckley.
Wilmington Man Federally Indicted for Failing to Register as a Sex OffenderRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced today the unsealing of an indictment charging Rafaelito Rivera, 51, of Wilmington, Delaware, with failing to register as a sex offender. The grand jury returned the indictment on March 22, 2022. Members of the U.S. Marshals Service located and arrested Mr. Rivera today.
The Indictment alleges that for the past 10 years, Rivera, also known as “Omar Velez Perez,” knowingly failed to update his registration as required by the federal Sex Offender Registration and Notification Act (“SORNA”).
SORNA establishes a comprehensive national system for the registration of sex offenders. It requires a sex offender to register in each jurisdiction where the offender resides, or where the offender is an employee. SORNA also requires sex offenders to keep this registration information current by updating it after each change of name, residence, or employment. Sex offenders have three days to provide notice of any changes.
If convicted of violating SORNA, Rivera faces a maximum penalty of 10 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case is being investigated by the U.S. Marshals Service. Assistant U.S. Attorney Briana Knox is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER.
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.
William Stenger Sentenced to 18 months in Prison in Connection with the AnC Vermont EB-5 Project in the Northeast KingdomRead the Press Release
UPDATE
The Press Release has been updated to detail the name of the FDA Office of Criminal Investigations.
The United States Attorney’s Office announced that William Stenger, 73, of Newport, Vermont, was sentenced today to 18 months in prison by Chief Judge Geoffrey W. Crawford in United States District Court. Chief Judge Crawford also ordered a 3-year term of supervised release and ordered Stenger to pay $250,000 in restitution. Today’s sentencing follows Stenger’s August 2021 guilty plea to a felony count of knowingly and willfully submitting false documents to the Vermont Regional Center (“VRC”) in connection with his involvement in the Jay Peak Biomedical Research Park EB-5 investment project, also called the AnC Vermont project.
According to court records and proceedings, the AnC Vermont project was designed to raise $110 million from 220 immigrant investors in order to construct and operate a biotechnology facility in Newport, Vermont. EB-5 immigrant investors could qualify for permanent resident status (commonly known as a green card) by investing $500,000 in a commercial enterprise approved by the VRC, which had the authority to approve and monitor EB-5 projects in Vermont, and by USCIS. In order to obtain a green card, each investor needed to demonstrate to USCIS that his or her investment had created, or would create within a few years, ten jobs. So, for the AnC Vermont project, it was necessary for Stenger and his co-defendants to demonstrate a plan to create at least 2,200 jobs in a short timeframe in order to obtain USCIS approval. From 2012 to 2016, approximately 169 investors invested approximately $85 million in the AnC Vermont project, in addition to paying approximately $8 million in “administrative fees.” Fundraising was never completed, and the AnC Vermont facility was never constructed.
Stenger pleaded guilty to submitting false documents to the VRC in January of 2015 as part of his effort to convince the VRC to allow him to continue marketing the AnC Vermont project. As Stenger admitted during his change of plea hearing, due to VRC’s concerns about a number of aspects of the AnC project, Stenger had agreed with the VRC in late June 2014 to suspend offering and marketing of the project. Stenger knew that he had to provide answers to questions from VRC about the project’s financial projections and about the status of U.S. Food and Drug Administration (“FDA”) approvals needed for commercialization of the products in order to be permitted to market the project again. Stenger’s January 2015 submission addressed, among other things, these topics. Both the financial projections and the FDA timeline impacted whether the project would create the number of jobs needed for the investors to obtain immigration benefits.
The AnC Vermont fraud involved two aspects: the defendants’ misrepresentations about job creation and future revenues, and the defendants’ misuse of investor funds. Stenger’s guilty plea centered on the misrepresentation aspect of the fraud. In connection with his sentencing, Stenger agreed not to dispute a broader set of facts asserted by the government in a sentencing-related brief, including that he participated in the misuse of investor funds along with co-defendants Ariel Quiros and William Kelly. Their misuse of funds was principally caused by debts and cost overruns on earlier EB-5 projects, for which Stenger bore significant responsibility. Stenger was the general partner for the EB-5 projects and assumed responsibility for how investors’ funds were used. While Stenger was not principally responsible for executing the misuse of investor funds, he knew about and assisted in it. Stenger hid the projects’ financial problems from the VRC, U.S. Citizenship and Immigration Services (USCIS), and investors, and he repeatedly abused his position of trust to assure regulators and investors that the projects were successful, and nothing was wrong.
Co-defendant William Kelly pleaded guilty to wire fraud conspiracy and concealment charges in July 2021. His sentencing hearing is scheduled to occur before Chief Judge Crawford on April 20, 2022. Co-defendant Ariel Quiros pleaded guilty to wire fraud conspiracy, money laundering, and concealment charges in August 2020. His sentencing is scheduled to occur before Chief Judge Crawford on April 29, 2022. Both Quiros and Kelly agreed to cooperate in the government’s ongoing matters. Co-defendant Choi remains at large.
Nikolas P. Kerest, United States Attorney, expresses his gratitude for the outstanding investigation assistance by the Federal Bureau of Investigation, IRS Criminal Investigation, the FDA Office of Criminal Investigations, and for the assistance of the Justice Department’s Fraud Section and Office of International Affairs. The prosecutors handling the case are Assistant U.S. Attorneys Nicole Cate and Paul Van de Graaf. William Stenger is represented by Brooks McArthur, Esq. and David Williams, Esq. Ariel Quiros is represented by Neil Taylor, Esq. and Robert Katims, Esq. William Kelly is represented by Robert Goldstein, Esq. and Mary Kehoe, Esq.
Wilder, Vermont Man Charged for Unlawful Possession of Firearm and Explosive DevicesRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that William Hillard, 51, of Wilder, Vermont was charged by criminal complaint with (1) being a felon in possession of a firearm, and (2) possessing a destructive device. Hillard was arrested on April 13, 2022, in connection with a search of his Wilder, Vermont residence. Hillard’s initial appearance was held on April 14, 2022, and a detention hearing is scheduled for April 15, 2022.
According to an affidavit in support of the criminal complaint, law enforcement received information that Hillard was in possession of explosive devices. A search warrant was executed at Hillard’s Wilder, Vermont residence and during the execution of the warrant law enforcement located explosive devices and materials as well as an AR-15-style rifle and ammunition.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Hartford Police Department, Vermont State Police Bomb Squad, and the Federal Bureau of Investigation (FBI).
A criminal complaint is merely an accusation and the defendant is presumed innocent unless and until proven guilty. If convicted of the charged offense, the defendant faces up to 20 years of imprisonment.
The Assistant United States Attorney handling the prosecution is Nate Burris. Hillard is represented by the Federal Public Defenders Office.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. https://www.justice.gov/psn
West Sacramento Man Indicted for Illegal Possession of Handgun, Ammunition, and MethamphetamineRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Rudy Tafoya, 54, of West Sacramento, charging him with being a felon in possession of a firearm and ammunition and possession of methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in May 2021, Tafoya was stopped for a traffic violation and found to be in possession of ammunition, a firearm, and methamphetamine. At that time, Tafoya was on supervised release for a previous conviction of being a felon in possession of a firearm. Tafoya is prohibited from possessing firearms or ammunition on account of six prior felony convictions, including two felony crimes of violence.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Yolo County District Attorney’s Office; and the West Sacramento Police Department. Assistant U.S. Attorney Emily Sauvageau is prosecuting the case.
If convicted, Tafoya faces a maximum statutory penalty of 10 years in prison and a $250,000 fine on the ammunition and firearm counts and up to an additional year for the methamphetamine count. Any sentence, however, would be determined at the discretion of the court after considering any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney and IRS Warn Potential Tax Cheats to Timely File Accurate and Complete Tax ReturnsRead the Press Release
SCRANTON - With the deadline for filing federal individual income tax returns rapidly approaching, the U.S. Attorney’s Office for the Middle District of Pennsylvania, and the Philadelphia Field Office, IRS Criminal Investigation Division, jointly announced a warning to those who are thinking about breaking the law by committing tax crimes. Willfully filing false tax returns or deliberately evading paying taxes are serious criminal offenses and can result in prison and substantial fines and penalties.
“Those who fail to pay their taxes put an added burden on honest taxpayers and cheat the government out of much needed revenue that finances our government’s operations,” said U.S. Attorney John C. Gurganus. “Our office will aggressively investigate and prosecute those individuals who knowingly and willfully evade their tax obligation and violate our tax laws.”
“With the tax filing deadline right around the corner, those who may think about committing tax fraud should consider the negative consequences of their actions, which could include jail time,” said Tim Connelly, Acting Special Agent in Charge of IRS-Criminal Investigation. “People who file accurate and honest returns can be assured that IRS-CI and the U.S. Attorney’s office will continue to seek out and prosecute those who willfully attempt to defraud the tax system.”
Throughout the past year, the U.S. Attorney’s Office for the Middle District of Pennsylvania prosecuted a broad array of tax offenses including tax evasion, employment tax fraud, and refund fraud. Enforcement efforts are continually ongoing. Here are a few recent examples:
- On March 24, 2022, Erin Hossler, of Pottsville, Pennsylvania, was sentenced to 15 months’ imprisonment for tax evasion and ordered to pay $153,539.70 in restitution to the IRS. Hossler stole hundreds of thousands of dollars from Cressona Borough, where she previously worked as Secretary/Treasurer and failed to file income tax returns during the years 2015, 2016, and 2017.
- Joseph Rinker, of Lycoming County, Pennsylvania, was sentenced on February 25, 2022, to two years of probation for using his position as the manager of the Harvest Moon Restaurant in Williamsport, Pennsylvania, to embezzle over $300,000, that he subsequently failed to report as income to the IRS from 2014 to 2017. Rinker was ordered to pay $64,250 in restitution to the IRS.
- On February 18, 2022, Charles R. Ehrenberg, owner of Ehrenberg Roofing and Construction, Inc., located in Hazleton, Pennsylvania, pleaded guilty to failing to pay over to the IRS federal employment taxes, including Federal Insurance Contribution Act (FICA) taxes for the period from 2017 through 2020, in the total amount of $185,681.90.
- On March 3, 2022, Ricky Long, of Mount Carmel, Pennsylvania, was sentenced to 12 months plus one day in prison for failure to account for and pay over employment taxes for a home healthcare business known as Warm Hearts Home Care Agency, Inc. operating in Sunbury, Pennsylvania. Long failed to file tax returns or pay over $296,484.89 in employment and trust fund taxes collected from employees over several years. Rather than turning the money over to the IRS, Long used the money to open a wine bar in Shamokin, Pennsylvania and to pay personal expenses such as vacations and tickets to sporting events. Long was also ordered to make full restitution.
- Giuseppe Tomasino, age 45, and Andrea Tomasino, age 71, co-owners of Tomasino’s Restaurante Italiano, located in Dallas, Pennsylvania, were sentenced on March 8, 2022, for failure to pay income and employment taxes between 2014 and 2019 related to the operation of their restaurant. Giuseppe Tomasino was sentenced to serve a 6-month period of home detention with electronic monitoring and Andrea Tomasino was sentenced to two years of probation and to pay restitution to the IRS in the amount of $214,347.
- On April 12, 2022, Ronald Halko, of Scranton, Pennsylvania, was indicted by a federal grand jury for attempting to evade payment of Trust Fund Recovery Penalty (TFRP) taxes in the approximate amount of $144,864.43 by concealing sources of income and other assets from the IRS.
Indictments and Criminal Informations are only allegations. A defendant is presumed innocent unless and until proven guilty.
Tax Scam Warning
The U.S. Attorney’s Office and the IRS remind taxpayers to exercise caution during tax season to protect themselves against tax schemes ranging from identity theft to return preparer fraud. Illegal scams can lead to significant penalties and interest and possible criminal prosecution. IRS Criminal Investigation works closely with the Department of Justice to shutdown scams and to prosecute the criminals behind them.
Each year, taxpayers’ personal information is compromised through phishing scams or by unscrupulous tax preparers. IRS Criminal Investigation (IRS-CI) wants taxpayers to be aware of tax-related fraud. Tips to avoid tax season fraud include:
- Choose a tax preparer wisely. Look for a preparer who is available year-round.
- Ask your tax preparer for their IRS Preparer Tax Identification Number (PTIN). All paid preparers are required to have one.
- Don’t use a ghost preparer. They won’t sign a tax return they prepare for you.
- Don’t fall victim to tax preparers’ promises of large refunds. Taxpayers must pay their fair share of taxes.
- Don’t sign a blank tax return. Taxpayers are ultimately responsible for what appears on tax returns filed with the IRS.
- Make sure you receive your refund. Your refund should be deposited into your bank account, not your tax preparer’s.
- The IRS will not call you threatening legal action. If you receive a call like this, hang up.
- Don’t respond to text messages, emails or social media posts claiming to be the IRS. They may contain malware that could compromise your personal information.
- Don’t click links or open attachments in unsolicited emails or text messages about your tax return. These messages are fraudulent.
- Protect your personal and financial information. Never provide this information in response to unsolicited text messages, emails or social media posts claiming to be the IRS.
For more tips on choosing a tax professional or how to file a complaint against one, visit IRS.gov. Taxpayers who suspect tax violations by a person or business, may report it to the IRS using Form 3949A, Information Referral. Taxpayers can report phishing emails to [email protected] or IRS impersonation scams to TIGTA.gov.
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Two Vieques Residents Plead Guilty to Concealing over One Million Dollars in Cash on a Vessel Outfitted for Smuggling in USVI WatersRead the Press Release
St. Thomas, USVI – Julius Alvarez-Gonzalez and Jimmy Garcia-Quinonez, of Vieques, PR, each entered guilty pleas to the charge of concealing over one million dollars in cash on a vessel outfitted for smuggling, United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced today.
According to court documents, on July 26, 2021, Customs and Border Protection (CBP) Air and Marine (AMO) agents stopped a vessel traveling without navigational lights, heading toward the western portion of St. Thomas, USVI. Prior to boarding, agents observed the defendants onboard the vessel. When the defendants saw the agents, they threw a large duffel bag overboard. Agents subsequently recovered and searched the duffel bag, which contained over one million dollars in US currency.
The boat captain, Defendant Alvarez, faces 33 months incarceration and Defendant Garcia faces 30 months incarceration. Both Defendants face a maximum fine of up to $250,000 dollars, and a term of supervised release of up to 3 years. Sentencing will be scheduled at a later date.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces’ (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Two Utica Men Plead Guilty to Fentanyl Conspiracy and Firearms ChargesRead the Press Release
SYRACUSE, NEW YORK – DAEQUON D. PERKINS, age 25, and MARK W. BAKER, age 44, both of Utica, New York, pled guilty today for their participation in a fentanyl conspiracy.
The announcement was made by United States Attorney Carla B. Freedman; Oneida County District Attorney Scott McNamara, New York State Police Superintendent Kevin P. Bruen, Timothy Foley, Acting Special Agent in Charge. U.S. Drug Enforcement Administration (DEA), New York Division; John B. Devito, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Mark Williams, Utica Police Department.
PERKINS pled guilty today to conspiring to distribute and possess with intent to distribute 40 grams or more of a mixture and substance containing fentanyl, and to distribution of a mixture and substance containing fentanyl. As part of his guilty plea, Perkins admitted that beginning no later than May 2021, he agreed with others to distribute 40 grams or more of a mixture containing fentanyl to customers in the Utica, New York area. Perkins also admitted that on May 27, 2021, he distributed approximately 1.75 grams of a fentanyl mixture in Utica.
At sentencing on August 10, 2022, PERKINS faces a minimum term of 5 years and up to 40 years in prison, a post-incarceration term of at least 4 years and up to life of supervised release, and a maximum fine of $5,000,000.
BAKER pled guilty to conspiring to distribute and possess with intent to distribute 40 grams or more of a mixture and substance containing fentanyl, possession with intent to distribute a mixture and substance containing fentanyl, possession of a firearm in furtherance of a drug-trafficking crime, and possession of a firearm and ammunition by a felon. As part of his guilty plea, Baker admitted that beginning no later than May 2021, through at least August 4, 2021, he agreed with others to distribute 40 grams or more of a mixture containing fentanyl to customers. Baker further admitted that on August 4, 2021, at his residence in Utica, he possessed a fentanyl mixture he intended to distribute to others, a .40 caliber semiautomatic pistol, two 12-gauge shotguns, and multiple rounds of ammunition of various calibers, which he possessed in furtherance of drug-trafficking. Baker also acknowledged that in 2010, he was convicted of drug conspiracy charges in the United States District Court for the Northern District of New York, for which he was sentenced to 27 months’ imprisonment.
At sentencing on August 10, 2022, BAKER faces a minimum term of 15 years and up to life in prison, a post-incarceration term of at least 8 years and up to life of supervised release, and a maximum fine of $8,000,000.
A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by New York State Police-Special Investigations Unit (NYSP-SIU), investigators from the Oneida County District Attorney’s Office, members of the City of Utica Police Department, DEA, ATF, and is being prosecuted by Assistant U.S. Attorney Matthew J. McCrobie.
Two Marketers Sentenced for Engaging in an Illegal Health Care Kickback SchemeRead the Press Release
Two men were sentenced in federal court Wednesday for helping orchestrate a scheme where physicians received kickback payments in exchange for writing and referring expensive compounded drug prescriptions to OK Compounding, announced U.S. Attorney Clint Johnson.
Johnathon Yates Boyd III, 50, of Katy, Texas, was sentenced to 12 months of probation and ordered to pay $391,475.41 in restitution. Bryan Fred Woodson, 61, of Beach City, Texas, was sentenced to 12 months of probation and ordered to pay $553,232.45 in restitution.
Boyd III and Woodson each pleaded guilty to conspiracy to pay kickbacks.
It is illegal to pay or receive “kickbacks” in conjunction with federal health care insurance. Prohibitions against kickbacks are crucial to ensure that financial motives do not undermine the medical judgment of physicians and other health care providers.
Boyd III and Woodson admitted to conspiring together with Christopher Parks, 60, of Jenks, and Dr. Gary Lee, 61, of Tulsa, to enrich themselves through the scheme at the expense of the federal government.
According to court documents, Boyd III and Woodson, formed R&A Marketing Group LLC around 2012. R&A Marketing introduced its recruited physicians to OK Compounding, a pharmacy controlled and operated by Parks and Lee, for the purpose of entering into a referral relationship with the pharmacy. The conspirators provided illegal kickbacks and bribes to the physicians, and in return, the physicians wrote expensive patient prescriptions for compounded drugs and referred those prescriptions to OK Compounding. The pharmacies then submitted large claims for payment of the costly prescriptions to various federal health care programs.
Physicians were allegedly provided pre-printed prescription pads that listed compounded formula choices. They would then check a box with their preferred selection then fax it directly to OK Compounding, rather than writing a prescription tailored to the patient who could then take it to a pharmacy of their choice.
Payments to physicians were disguised through various sham business arrangements. For example, physicians would enter into agreements with a pharmacy to serve as “medical directors” or “consulting physicians.” However, physicians did not provide any services to OK Compounding nor any other pharmacies controlled by Parks and/or Lee.
In exchange for recruiting physicians to enter into contracts as “medical directors” or “consulting physicians”, R&A Marketing was paid a commission based on the reimbursed prescriptions.
Compounding prescriptions is a practice in which a pharmacist or physician combines, mixes or alters ingredients of a drug or multiple drugs to create a medication that is tailored to the specific needs of a patient. These medications are prescribed when standard Food and Drug Administration (FDA) approved drugs are unsuitable for the patient. They are also more expensive and reimbursed at a far higher rate by federal and private insurance companies. Compounded drugs are not to be mixed or marketed in bulk.
OK Compounding is no longer in operation. Charges are currently pending against Parks and Lee. They are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Veteran’s Affairs- Office of Inspector General, Defense Criminal Investigative Service, Department of Labor- Office of Inspector General (OIG), IRS- Criminal Investigation, U.S. Postal Service- OIG, FBI and the Department of Health and Human Services-OIG conducted the investigation. Assistant U.S. Attorneys Melody Noble Nelson and Richard M. Cella prosecuted the case.
Two Defendants Admit to Participating in the Kidnapping of a Victim at Maryland Hotel and CasinoRead the Press Release
Greenbelt, Maryland – Anthony Erik Hebron, a/k/a “Pain”, age 23, of Washington, D.C., and Darius Lawrence Young, a/k/a “Mup”, age 29, also of Washington, D.C., pleaded guilty today and Tuesday, respectively, to conspiracy to commit kidnapping, in connection with the kidnapping of a victim from a Maryland hotel and casino. Darius Young also pleaded guilty to possession of firearms and ammunition by a felon.
The guilty pleas were announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Wayne Jacobs of the Federal Bureau of Investigation - Washington Field Office Criminal Division; and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to their guilty pleas, on February 3, 2021, Young, Hebron, co-defendant Christopher Young, age 26, of Washington, D.C., co-defendant Lamar Perkins, age 27, of Washington, D.C., and Co-conspirator 1 worked together to kidnap a victim from a Maryland casino and hotel.
As stated in their pleas, Hebron and Co-conspirator 1 met Victim A at a hotel and casino, where they made the false promise that they would get women for Victim A if Victim A accompanied them to Southeast Washington, D.C. At approximately 7:30 a.m., Victim A agreed to travel to Southeast Washington, D.C. in Co-conspirator 1’s car with Hebron.
At 8:13 a.m., co-defendant Christopher Young called Darius Young to report that Hebron and Co-conspirator 1 had “snatched” Victim A. Soon after Co-conspirator 1, Hebron, and Victim A arrived in Southeast D.C., Darius and Christopher Young entered into Co-conspirator 1’s vehicle with Victim A inside. Hebron then pointed a gun at Victim A. At that time, Hebron, Darius and Christopher Young, and Co-conspirator 1 took Victim A’s personal items including Victim A’s wallet, cell phone, hotel room key, and a watch valued at $500.
Hebron, Darius and Christopher Young, and Co-conspirator 1 then demanded the code to Victim A’s hotel safe. When Victim A refused, Hebron struck Victim A in the forehead with the gun. In response, Victim A told the co-conspirators the code to the hotel safe. Hebron then forced Victim A out of the car. Darius and Christopher Young then exited the vehicle with Victim A as Hebron and Co-conspirator 1 drove back to the hotel and casino to burglarize Victim A’s hotel room.
As Hebron and Co-conspirator 1 traveled back to the hotel and casino, Darius and Christopher Young led Victim A at gunpoint to a boiler room inside a Southeast D.C. apartment building. Darius Young then called Perkins and directed him to look out for police or anyone else that might hear or see Darius and Christopher Young with Victim A. Inside the boiler room, Darius and Christopher Young repeatedly assaulted Victim A, threatened his life, demanded Victim A’s PIN number to his ATM card, and demanded information about the items located in his hotel room. Darius and Christopher Young then relayed this information to Hebron and Co-conspirator 1 by phone.
Simultaneously, Hebron and Co-conspirator 1 accessed Victim A’s hotel room where they stole Victim A’s property, including a gaming system, $1,500 in casino chips, and approximately $6,000 in cash.
As stated in their plea agreements, after conspiracy members stole Victim A’s hotel items, and left Victim A inside the Southeast D.C. apartment building, law enforcement saw Darius and Christopher Young walking away from the building. Moments later, law enforcement located Victim A, who had sustained several injuries, including a bloody wound on his forehead, a broken nose, and cuts on his mouth and eye.
Co-defendants Lamar Perkins and Christopher Young pled guilty to conspiracy to commit kidnapping in February 2022 and are scheduled to be sentenced in May 2022.
Darius Young and the government have agreed that, if the Court accepts the plea agreement, Young will be sentenced to between 12 and 13.5 years in federal prison. Hebron and the government have agreed that, if the court accepts his plea agreement, Hebron will be sentenced to 14 years in federal prison. U.S. District Judge George J. Hazel has scheduled their sentencings for June 27, 2022, at 10 a.m. and August 8, 2022, at 10 a.m.; respectively.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron commended the FBI Washington, and the FBI Baltimore Field Offices for their work in the investigation. Mr. Barron also praised the Prince George’s County Police Department for their assistance in the investigation. Mr. Barron thanked Assistant U.S. Attorney Jeffrey J. Izant and Special Assistant U.S. Attorney Jared Engelking, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Two Convicted Felons from Lake Charles Area Sentenced in Federal CourtRead the Press Release
LAFAYETTE, La. – Two men from the Lake Charles, Louisiana area were sentenced today in the U.S. District Court, on firearms charges, announced United States Attorney Brandon B. Brown. United States District Judge James D. Cain, Jr. sentenced the two individuals as follows:
Nathan Allen Boutte, 32, of Lake Charles, Louisiana, was sentenced to 60 months in prison, followed by 3 years of supervised release, for being a convicted felon in possession of a firearm. On June 27, 2020, officers with the Lake Charles Police Department received a complaint that an individual had exited a vehicle with a firearm and approached the complainant’s apartment carrying the weapon. Upon arrival at the scene, officers located the subject and determined it to be Boutte. He was sitting in front of the apartment and officers noticed the odor of PCP emitting from his person and observed his speech was slurred and he appeared to be incoherent and seemed confused. Officers located an AR style rifle nearby and found that it had been modified by the barrel having been cut down and made shorter. Officers learned that Boutte had prior felony convictions and took him into custody. After a period of approximately eight hours had passed and he was sobered up and coherent, officers questioned Boutte about the incident. He admitted to possessing the firearm even though he knew he was prohibited from doing so. Boutte has prior felony convictions for possession of controlled substances and simple criminal damage to property.
This case was investigated by the ATF and Lake Charles Police Department and was prosecuted by Assistant U.S. Attorney Daniel J. Vermaelen.
Nicholas Ryan, 37, of Sulphur, Louisiana, was sentenced to 46 months in prison, followed by 3 years of supervised release, for being a convicted felon in possession of a firearm. On July 7, 2020, a Calcasieu Parish Sheriff’s Office deputy attempted to stop a vehicle for several traffic violations. The vehicle refused to stop and during the pursuit that followed, the deputy observed an object being thrown from the passenger side of the vehicle. The vehicle was eventually stopped, and Ryan was identified as the driver. Ryan and a passenger in the vehicle were detained while the deputy searched the area where the object was thrown from the vehicle. The deputy located a Glock 9mm pistol in that area and Ryan admitted that it was his and he had thrown it from the vehicle. Ryan has a prior felony conviction for aggravated second degree battery (2011) prohibiting him from possessing any firearm or ammunition.
This case was investigated by the ATF and Calcasieu Parish Sheriff’s Office and was prosecuted by Assistant U.S. Attorney Craig R. Bordelon.
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Tucson Man Sentenced to 46 Months for Prohibited Possession of FirearmsRead the Press Release
TUCSON, Ariz. – On Tuesday, Javier Rafael Haro-Aguilar, 24, of Tucson, Arizona, was sentenced by U.S. District Judge Raner C. Collins to 46 months in prison, followed by three years of supervised release. Haro-Aguilar previously pleaded guilty to possession of a firearm and ammunition by an illegal alien.
A federal search warrant executed at Haro-Aguilar’s residence revealed multiple firearms and ammunition, as well as evidence of narcotics trafficking and the use of a Snapchat account to traffic drugs and sell firearms. As a citizen of Mexico who lacks legal status in the United States, Haro-Aguilar was prohibited from possessing firearms and ammunition.
The Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorney Stefani Hepford, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-20-02592-TUC-RCC
RELEASE NUMBER: 2022- 042_Haro-Aguilar# # #
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.Towaoc Man Sentenced to Prison for Assaulting His BrotherRead the Press Release
DURANGO – The United States Attorney’s Office for the District of Colorado announces that a federal jury in Durango has found Alonzo Gary Summa, age 36, guilty of assault resulting in serious bodily injury and assault with a dangerous weapon. The judge sentenced him to 96 months in prison.
At trial, the government presented evidence that on August 11, 2020, Summa cut his half-brother with a knife during an argument in Towoac, Colorado, on the Ute Mountain Ute Indian Reservation. Around the time of the assault, Summa sent the victim a Facebook message that said “I suggest u watch where u go from now And watch your back…I’m comeing [sic] after u.” Summa’s assault left the victim with a seven-inch, permanent scar. Evidence presented at trial showed that the victim feared retaliation from Summa for his participation in the case. At the time of the assault, the defendant was on supervision for a federal conviction for an assault that also involved a knife, 17-cr-00147-REB.
The jury announced its verdict on November 12, 2021. Summa was sentenced by the Honorable Senior District Court Judge Robert E. Blackburn on February 11, 2022, to serve 78 months in prison, to be followed by a three-year term of supervised release. Summa was also sentenced to serve an additional 18 months in prison for violating his prior federal supervised release, which he was on at the time of this offense.
“Prosecuting violence inflicted towards family members always presents challenges, especially in a small community such as Towaoc,” said United States Attorney Cole Finegan. “Our office remains committed to holding accountable violent offenders in Indian Country.”
The Bureau of Indian Affairs at the Ute Mountain Ute Indian Reservation investigated this matter. Assistant United States Attorneys R. Josh Player and Jeffrey K. Graves handled the prosecution.
Case number: 20-cr-00262-REB-GPG
Texas man sentenced for smuggling $1.1M of crystal methRead the Press Release
LAREDO, Texas – A 20-year-old Dallas resident has been sent to federal prison for illegally importing approximately 25.16 kilograms of meth, announced U.S. Attorney Jennifer B. Lowery.
Luke Law pleaded guilty Dec. 1, 2021.
Today, U.S. District Judge Marina Garcia Marmolejo sentenced him to serve a total of 60 months in federal prison to be immediately followed by three years of supervised release. As a condition of his supervised release, Judge Marmolejo ordered the defendant must speak to high schools at least three times a year about avoiding drugs and avoiding the choices he made.
On June 6, 2021, Law attempted to cross into the United States after vacationing in Monterrey, Mexico. Authorities referred his vehicle to the secondary inspection area where a K-9 alerted to the presence of narcotics. An X-ray scan revealed anomalies behind the vehicle’s gas tank. Upon further investigation, law enforcement discovered a total of 29 bundles of meth wrapped in clear tape weighing approximately 25.16 kilograms.
The drugs have an estimated street value of approximately $1.1 million.
Law has been and will remain in custody pending transfer to a U.S. Bureau of Prisons Facility to be determined in the near future.
Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Michael Makens prosecuted the case.
Ten Members of International Stock Manipulation Ring Charged in Manhattan Federal CourtRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of three indictments charging ten individuals with engaging in a long-running “pump-and-dump” stock manipulation scheme involving the stocks of numerous companies traded on United States-based stock exchanges. The scheme spanned the globe and the ten defendants charged were residents of Canada, the United Kingdom, Bulgaria, Spain, Monaco, Turkey and the Bahamas. RONALD BAUER was arrested in the United Kingdom. CURTIS WILLIAM LEHNER, COURTNEY VASSEUR, and JULIUS CSURGO were arrested in Canada. ANTHONY KORCULANIC was arrested in Spain. PETAR MIHAYLOV was arrested in Bulgaria. Finally, DOMENIC CALABRIGO was arrested in the Bahamas. The United States intends to seek the extradition of BAUER, LEHNER, VASSEUR, CSURGO, KORCULANIC, MIHAYLOV, and CALABRIGO to the United States. CRAIG AURINGER, a citizen of Canada and resident of the United Kingdom, HASAN SARIO, a citizen and resident of Turkey, and DANIEL FERRIS, a citizen of the United Kingdom and resident of Monaco, were also charged and remain at large.
U.S. Attorney Damian Williams said: “As alleged, for years, the defendants, collectively, made over $100 million by orchestrating ‘pump-and-dump’ stock manipulation schemes of publicly traded shares of U.S.-based issuers. These pernicious ‘pump-and-dump’ schemes made the defendants rich while causing real harm to ordinary, retail investors who were left swallowing the losses. These defendants used a web of nominee entities and shell companies located all over the world attempting to disguise their own orchestration of these schemes. Today’s charges should send a clear message to all of those who think they can make millions running ‘pump-and-dump’ schemes --- no matter where in the world you are located, and no matter how many fake accounts and offshore shell companies you try to hide behind, our Office will vigorously pursue and prosecute you.”
FBI Assistant Director Michael J. Driscoll said: “Stock manipulation schemes such as the one charged here today serve to undermine confidence in our financial markets and create a playing field designed to illegally benefit a greedy few fraudsters at the expense of many honest investors. As alleged, the 10 charged defendants operated a global scheme that reaped more than $100 million in illicit proceeds. Our action today should serve as a reminder of our commitment to insure free and fair markets for all investors.”
As alleged in the three Indictments unsealed in Manhattan federal court[1]:
The Defendants
United States v. Ronald Bauer et al., 22 Cr. 155
RONALD BAUER, CRAIG AURINGER, PETAR MIHYALOV, and DANIEL FERRIS participated in a conspiracy that, collectively, involved “pump-and-dump” stock manipulation schemes of the securities of at least 12 United States-based issuers, resulting collectively in at least approximately $75 million in total proceeds.
RONALD BAUER, a/k/a “Patek,” a citizen of Canada and the United Kingdom who resided in the United Kingdom, orchestrated numerous “pump-and-dump” schemes. BAUER controlled the various aspects of the schemes.
CRAIG AURINGER, a citizen of Canada who resided in the United Kingdom, participated in multiple “pump-and-dump” schemes including by coordinating stock promotion campaigns and by providing funding in furtherance of the stock manipulation schemes.
PETAR MIHAYLOV, a/k/a “Petar the Bulgarian,” a/k/a “PDM,” a citizen and resident of Bulgaria, participated in multiple “pump-and-dump” schemes by coordinating stock manipulation promotion campaigns and providing funding in furtherance of the stock manipulation schemes.
DANIEL FERRIS, a citizen of the United Kingdom who resided in Monaco, participated in multiple “pump-and-dump” stock manipulation schemes including by opening accounts that were then used to trade shares and transfer funds in furtherance of the schemes and by taking various actions necessary to prepare the publicly traded companies that were used as the vehicles for the stock manipulation schemes. FERRIS also served as the Chief Executive Officer of at least one of the companies whose shares the group thereafter manipulated.
United States v. Curtis Lehner et al., 21 Cr. 121
CURTIS LEHNER, COURTNEY VASSEUR, HASAN SARIO, and DOMENIC CALABRIGO participated in a conspiracy that, collectively, involved “pump-and-dump” stock manipulation schemes of the securities of at least 9 United States-based issuers, resulting collectively in at least approximately $35 million in total proceeds.
CURTIS LEHNER, a/k/a “Santa,” a citizen and resident of Canada, and COURTNEY VASSEUR, a/k/a “Black Water Resource Management,” a/k/a “Black Water,” a/k/a “Cyrill Vetsch,” a/k/a “Arctic Shark,” a/k/a “Oscar Devries,” a citizen and resident of Canada, both orchestrated numerous “pump-and-dump” schemes.
HASAN SARIO, a/k/a “Ali,” a/k/a “H,” a citizen of Germany and Turkey who resided in Turkey, furthered the stock manipulation schemes by, among other things, acting as a designated “trading specialist” who directed the group’s stock trading across various nominee entity accounts that the group controlled. SARIO also utilized a network of nominee entities and nominee entity bank accounts that he controlled in order to both trade shares and transfer funds in furtherance of the schemes.
DOMENIC CALABRIGO, a/k/a “Raider,” a citizen of Canada who resided in the Bahamas, furthered the stock manipulation schemes by, among other things, coordinating stock promotion campaigns.
United States v. Julius Csurgo and Anthony Korculanic, 22 Cr. 190
JULIUS CSURGO and ANTHONY KORCULANIC participated in a conspiracy that collectively, involved “pump-and-dump” stock manipulation schemes of the securities of at least 19 United States-based issuers, resulting collectively in at least approximately $35 million in total proceeds.
JULIUS CSURGO, a/k/a “Gyula Karoly Csurgo,” a citizen of Canada and Hungary who resided in Canada, orchestrated numerous “pump-and-dump” stock manipulation schemes. In connection with the schemes, CSURGO owned and operated an entity called Antevorta Capital Partners, Ltd. (“Antevorta”), which CSURGO used as a vehicle for the “pump-and-dump” schemes. CSURGO, directly and through Antevorta, furthered the schemes by purchasing and selling numerous stocks in connection with the scheme and funding certain fraudulent stock promotion campaigns that were used to drive up the share prices as CSURGO and his co-conspirators sold off the shares that they controlled.
ANTHONY KORCULANIC, a/k/a “Remy,” a/k/a “Viper,” a citizen of Canada and Croatia who resided, at certain relevant times, in Spain, participated in multiple “pump-and-dump” schemes including by coordinating stock promotion campaigns and by providing funding in furtherance of the stock manipulation schemes.
Overview of the “Pump-and-Dump” Stock Manipulation Schemes
As alleged, the defendants participated in “pump-and-dump” schemes that followed a typical pattern. First, the defendants and their co-conspirators secretly amassed control of the vast majority of the stock of certain publicly traded companies that were traded on the over-the-counter (“OTC”) market in the United States. Second, the defendants and their co-conspirators then manipulated the price and trading volume for these stocks, causing the share price and trading volume to become artificially inflated, through coordinated trading and false and misleading promotional campaigns that they funded. Third, and finally, the defendants sold out of their secretly amassed positions at these inflated values at the expense of the investing public.
In furtherance of the scheme, the defendants used a network of nominee entities to trade shares and funnel proceeds of these schemes back to the defendants and their co-conspirators. Holding the shares through the network of nominee entities allowed the defendants and their co-conspirators to conceal the fact that, in reality, they controlled the vast majority of the shares of the issuer.
The securities that the defendants and their co-conspirators sought to manipulate were issued by small companies, were thinly traded, and typically traded at less than $2 per share. These publicly traded shell companies frequently had few, if any, actual assets or actual business operations. While on paper the defendants and their co-conspirators had no connection to these companies, in reality they exercised substantial control, including installing management at the companies, financing the companies’ operations, and funding payments for attorneys in order to prepare public filings with OTC Markets Group, Inc. and the Securities and Exchange Commission (the “SEC”). In order to attract investor interest, the defendants and their co-conspirators, at times, caused private businesses to be merged or “vended” into the publicly traded shell companies. The private businesses were often in industries likely to attract the investing public’s interest.
In connection with the scheme, the defendants and their co-conspirators frequently engaged in manipulative trading activity in order to artificially increase the trading volume and share price of the stocks. This manipulative trading included, at times, coordinated “match” trades in which the defendants and their co-conspirators caused one nominee entity or other brokerage account subject to their control to sell a certain quantity of shares while causing another nominee entity or brokerage account subject to their control to buy a similar quantity of shares that same day. These match trades, which often occurred on days when there was low trading volume, had the effect of artificially increasing the share price and trading volume of the stock.
As part of the “pump-and-dump” schemes, the defendants and their co-conspirators financed and coordinated promotional campaigns through which promotional materials touting the stocks were distributed to the investing public. These stock promotional materials frequently contained false and misleading claims about the issuer, as well as omitting material information, with the objective of inducing retail investors to purchase the shares of the issuer, which allowed the defendants and their co-conspirators to sell of their substantial positions for a profit. The defendants and their co-conspirators often expended hundreds of thousands of dollars on these stock promotion campaigns. Furthermore, certain of the defendants used a “boiler room” to solicit investors, including investors based in the United States, to purchase shares of certain of the companies. These “boiler rooms” involved multiple individuals working in a coordinated effort to contact potential investors, often through unsolicited “cold calls,” and providing investors with false, misleading, unfounded, and/or exaggerated information about the relevant issuer in order to induce the potential investors to purchase shares.
The defendants and their co-conspirators profited from the scheme by selling their shares into the market at the artificially high prices they had created through their manipulative activities. By selling their shares while the share price was artificially inflated, the defendants and their co-conspirators were able to realize millions of dollars in illicit profits. Once the defendants and their co-conspirators had sold off their shares and ceased the stock promotion campaign and their manipulative trading tactics, the share price of the relevant companies typically dropped precipitously. The defendants and their co-conspirators then laundered the proceeds of the schemes back to themselves in a manner designed to conceal the source of the funds and/or the identity of the recipients. Such laundering was frequently accomplished through the use of fabricated invoices, contracts and agreements.
* * *
Each of the defendants is charged with conspiracy to commit securities fraud, which carries a statutory maximum sentence of five years in prison. Each of the defendants is further charged with conspiracy to commit wire fraud, which carries a statutory maximum sentence of 20 years in prison. Each of the defendants is further charged with multiple counts of securities fraud pursuant to Title 15 of the United States Code, which carry a statutory maximum sentence of 20 years in prison per count. Each of the defendants is further charged with wire fraud, which carries a statutory maximum sentence of 20 years in prison. Finally, each of the defendants is charged with conspiracy to commit money laundering, which carries a statutory maximum sentence of 20 years in prison.
The statutory maximum sentences 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 investigative work of the FBI. He further thanked the Justice Department’s Office of International Affairs of the Department’s Criminal Division, as well as authorities in the United Kingdom (in particular the National Extradition Unit), Canada (in particular the Royal Canadian Mounted Police, the Alberta Securities Commission, and the Toronto Police Service Fugitive Squad), Spain (in particular the Spanish National Police), Bulgaria (in particular the National Police Service), and the Bahamas (in particular the Royal Bahamas Police Force). Finally, Mr. Williams also thanked the Securities and Exchange Commission, which initiated civil proceedings against nine of the ten defendants today.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Noah Solowiejczyk, Jason Richman, and Vladislav Vainberg are in charge of the prosecution.
The allegations in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictments, and the description of the Indictments set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Tax Preparer Sentenced to Prison for Conspiracy and Filing Fraudulent Tax Returns for ClientsRead the Press Release
A Louisiana woman was sentenced today to one year and one day in prison for conspiring to defraud the United States and helping clients file false tax returns.
On Nov. 14, 2019, Brittany Patterson, of St. John the Baptist Parish, pleaded guilty to conspiracy to defraud the United States and aiding and assisting in the filing of false tax returns. According to court documents, Michegel Butler owned Crown Tax Service LLC, where Patterson worked as a tax return preparer. From approximately January 2013 through April 2013, Patterson, Butler and others conspired to inflate their clients’ refunds by preparing tax returns claiming false Schedule C businesses, dependents and dependent care expenses. To substantiate the false income and expenses reported on their tax returns, Patterson and the other co-conspirators directed clients to fill out fraudulent receipts. They also encouraged some clients to buy or sell the personal identification information of dependents that could be falsely reported on tax returns.
In addition to the term of imprisonment, U.S. District Judge Carl J. Barbier ordered Patterson to serve three years of supervised release and pay approximately $90,856 in restitution to the United States.
On Feb. 4, 2021, Butler was sentenced to two years in prison for his role in the conspiracy.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Duane A. Evans for the Eastern District of Louisiana made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorney Jessica Kraft of the Justice Department’s Tax Division and Assistant U.S. Attorney Dall Kammer of the U.S. Attorney’s Office for the Eastern District of Louisiana prosecuted the case.
Tax Preparer Sentenced to Prison for Conspiracy and Filing Fraudulent Tax Returns for ClientsRead the Press Release
WASHINGTON – A Louisiana woman was sentenced today to one year and one day in prison for conspiring to defraud the United States and helping clients file false tax returns.
On Nov. 14, 2019, Brittany Patterson, of St. John the Baptist Parish, pleaded guilty to conspiracy to defraud the United States and aiding and assisting in the filing of false tax returns. According to court documents, Michegel Butler owned Crown Tax Service LLC, where Patterson worked as a tax return preparer. From approximately January 2013 through April 2013, Patterson, Butler and others conspired to inflate their clients’ refunds by preparing tax returns claiming false Schedule C businesses, dependents and dependent care expenses. To substantiate the false income and expenses reported on their tax returns, Patterson and the other co-conspirators directed clients to fill out fraudulent receipts. They also encouraged some clients to buy or sell the personal identification information of dependents that could be falsely reported on tax returns.
In addition to the term of imprisonment, U.S. District Judge Carl J. Barbier ordered Patterson to serve three years of supervised release and pay approximately $90,856 in restitution to the United States.
On Feb. 4, 2021, Butler was sentenced to two years in prison for his role in the conspiracy.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Duane A. Evans for the Eastern District of Louisiana made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorney Jessica Kraft of the Justice Department’s Tax Division and Assistant U.S. Attorney Dall Kammer of the U.S. Attorney’s Office for the Eastern District of Louisiana prosecuted the case.
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Stockton Man Indicted on Firearms ChargesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Jeffrey James Bray, 36, of Stockton, charging him with being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Bray sold at least six firearms to an undercover agent or confidential source in 2019. During the investigation, Bray also sold over 300 rounds of ammunition. Bray cannot lawfully buy or possess firearms or ammunition himself because he has sustained numerous felony convictions, including evading a police officer, vehicle theft, being a felon in possession of a firearm and ammunition, and twice for second degree burglary.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Yolo County District Attorney’s Office, the California Department of Corrections and Rehabilitation, the Yuba City Police Department, and the Sacramento Police Department. Assistant U.S. Attorney Alstyn Bennett is prosecuting the case.
If convicted, Bray faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Statement of U.S. Attorney Breon Peace on Sentencing of Edward and Linda ManganoRead the Press Release
“In the federal courthouse behind me, a short time ago, former Nassau County Executive Edward Mangano was sentenced by the Court to 12 years in prison, and his wife, Linda Mangano, to 15 months in prison.
Nearly two years ago, a federal jury found Edward Mangano guilty of conspiracy to obstruct justice and multiple counts of taking bribes and kickbacks from a businessman in exchange for pressuring local officials to guarantee the businessman’s loans. Linda Mangano was found guilty of obstructing the investigation by lying to the FBI about getting a lucrative “no show” job from that businessman, which was a bribe to her husband.
Edward Mangano’s blatant acts of corruption, and the defendants’ concerted efforts to obstruct a federal grand jury investigation, display a stunning abuse of power. The defendants’ conduct is an affront to our system of government and, quite frankly, a betrayal to the people of Nassau County, especially the residents of the Town of Oyster Bay.
From the moment he was elected, Edward Mangano sold himself and his office. He cashed in the power, the resources, and the influence of his office to enrich himself and his wife. For Ed Mangano, public service was self-service. He received bribes in the form of vacations, an expensive watch, furniture and hardwood flooring for his house. And, most notably, a $100,000-a-year no-show job for his wife, Linda Mangano.
Simply put, Edward Mangano is going to jail for brazenly abusing the power of his office as the top elected official of Nassau County. He is going to jail for betraying not only the people who elected him, but every resident of Nassau County who believes that government is supposed to do good, make our lives better and serve our communities honestly and without public officials lining their pockets with taxpayers’ hard-earned money.
To this day, neither defendant has shown a trace of remorse for their crimes and maintain they did nothing wrong. Their lack of shame is remarkable.
Edward and Linda Mangano’s flagrant disregard for the law has left them convicted felons and headed for prison. Today’s sentence demonstrates that corruption and obstruction will not be tolerated.
I stand here together with the outstanding prosecutors from my Office and the exceptional FBI agents who successfully brought the Manganos to justice, with a very important message. I want to assure the public that their faith in government and our criminal justice system is not misplaced. The disgraceful and greedy conduct of the Manganos has been exposed and punished.
And the same fate awaits those in public service who abuse their positions to serve themselves and not the people. Officials who choose to deprive the people of the honest services they deserve will find themselves in a courtroom learning that there is a serious price to pay for their corruption. No one is above the law.
I will conclude my remarks on a positive note, praising the prosecutors and FBI agents I mentioned moments ago. I want to commend Assistant United States Attorneys Catherine Mirabile, Christopher Caffarone and former Eastern District Assistant U.S. Attorney Lara Treinis Gatz for their tireless, tenacious and terrific work on the case. I also thank Paralegal Specialist Samantha Schroder and Legal Assistant Kerry Ucci. They were ably assisted in the pursuit of justice by FBI Special Agents Laura Spence, Frank Lomonaco and William Sena, Forensic Analyst William Del Gais and Eastern District of New York Special Agent Michael Cassidy.”
Watch the video of the statement here.
Southwest Colorado Narcotics Traffickers Sentenced to Federal PrisonRead the Press Release
Durango – The United States Attorney’s Office for the District of Colorado announces four defendants were sentenced to federal prison after pleading guilty to possession with intent to distribute illegal drugs. The defendants operated across the southwestern portion of Colorado, ranging from Alamosa to the Southern Ute Indian Reservation.
Camelo Martinez, age 30, was sentenced to 120 months of imprisonment to be followed by 5 years of supervised release for the distribution of pure methamphetamine on the Southern Ute Indian Reservation. According to court documents and facts presented at sentencing, Martinez used an intermediary to distribute 56.2 grams of pure methamphetamine in July 2020. The case was investigated by the Southern Ute Police Department.
Roger Reyes, age 39, was sentenced to 87 months in prison, to be followed by 5 years of supervised release for possession with the intent distribute heroin in Alamosa, Colorado. According to court documents and facts presented at sentencing, In April 2021, law enforcement observed Reyes leaving the home of a known gang member and was found in possession of 122.4 grams of heroin that same night. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) and the Alamosa Police Department.
Aaron Claycomb, age 37, was sentenced to 84 months in prison, to be followed by 4 years of supervised release for distributing heroin in Durango, Colorado. According to court documents and facts presented at sentencing, Claycomb sold 195.6 grams of pure methamphetamine to undercover law enforcement agents at a gas station in Durango, Colorado. At the time, Claycomb was on parole for several other drug-related convictions. The case was investigated in a coordinated effort of the Bureau of Indian Affairs, Southwestern Drug Task Force, and the Southern Ute Police Department.
Abraham Romero, age 33, was sentenced to 30 months in prison, to be followed by 4 years of supervised release for distributing methamphetamine, heroin, and cocaine in Alamosa, Colorado. According to court documents and facts presented at sentencing, law enforcement searched Romero’s residence in June 2021 and found 89 grams of a methamphetamine mixture, 36 grams of heroin, and 13.2 grams of cocaine, separated out into zip lock baggies. The case was investigated by the Drug Enforcement Administration (“DEA”) and the Alamosa Police Department.
“These convictions and sentences show our office’s commitment to vigorously prosecuting drug trafficking in Southwestern Colorado”, said U.S. Attorney Cole Finegan. “Each of these cases involved coordination between state and federal agencies, including our partners with the Southern Ute Tribe and the Bureau of Indian Affairs.”
“During the current opioid epidemic the steadfast dangers of methamphetamine, cocaine and heroin are often eclipsed by the proliferating fentanyl threat. Methamphetamine continues to be one of the most deadly drug threats within our communities,” said DEA Denver Field Division Special Agent in Charge Brian Besser. “DEA Denver is committed to ensuring that the drug laws of this country are upheld even within the farthest reaches of our state, and we are proud to serve alongside our state and local partners to ensure the safety of our neighborhoods.”
United States District Court Judge Robert Blackburn, sitting in Durango, Colorado, sentenced the defendants on April 11, 2022.
Assistant United States Attorney Jeffrey Graves handled the prosecution of these cases.
CASE NUMBERS: Martinez, 21-cr-00069-REB-JMC; Reyes, 21-cr-00160-REB-JMC; Claycomb, 20-cr-00264-REB-JMC; Romero, 21-cr-00260-REB; JMC
Shoreline, Washington man arrested for possessing multiple firearms in violation of protection orderRead the Press Release
Seattle – A 44-year-old Shoreline, Washington man will make his initial appearance in U.S. District Court in Seattle this afternoon, charged with two counts of illegal possession of firearms, announced U.S. Attorney Nick Brown. Rustam Yusupov was arrested without incident late yesterday at his Shoreline residence.
According to the criminal complaint, Seattle Police Officers were called to a downtown Seattle hotel room on March 10, 2022, with reports of a distraught man asking the hotel staff for assistance. When the officers went to the hotel room, they noted that furnishings had been over-tuned, with the mattress moved to block the door. Police found two firearms in the room – including a “ghost gun,” a firearm without a serial number.
Due to his agitated state, Yusupov was transported for medical attention. As officers were preparing to leave the hotel, a staff member working in the garage alerted them to weapons he had seen in Yusupov’s car. In the car were multiple firearms – including two additional “ghost guns.” In all police recovered:
- FMK Firearms Model AR-1 Extreme 5.56 NATO caliber rifle.
- Aero Precision Model X15 5.56 caliber pistol.
- Ruger Model 5.7 5.7x28mm caliber pistol.
- Ruger Model 18029 Precision 6.5mm Creedmoor/.308 Winchester Caliber rifle.
- Kel-Tec Model Sub 2000 9x19mm caliber rifle.
- A North American Arms Corp. Derringer .22 revolver.
- Two Polymer80 9mm caliber pistols with no serial number and
- A skeletonized AR-15 5.56 NATO caliber pistol with no serial number.
Yusupov is the subject of a protection order. He had been ordered by King County Superior Court to surrender all his weapons. In March 2020 and again in May 2021, Yusupov was ordered to surrender his firearms and had signed paperwork and informed law enforcement that he no longer possessed any firearms.
Illegal possession of a firearm is punishable by up to five years in prison.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Seattle Police Department and the Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF).
The case is being prosecuted by Assistant United States Attorneys Todd Greenberg and Thomas Woods.
Sex Trafficking Conspiracy Member Sentenced to Nine Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Lakeya Aldridge age 41, of Federalsburg, Maryland to nine years in federal prison, followed by five years of supervised release, for conspiracy to commit kidnapping.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Attorney General Kristen Clarke of the Department of Justice’s Civil Rights Division; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; Chief Michael McDermott of the Federalsburg Police Department; and Colonel Melissa Zebley of the Delaware State Police Department.
According to her guilty plea, in October 2018, Aldridge participated in a conspiracy to traffic Victim 1 led by Joshua Lankford, age 33, of Federalsburg, Maryland. Victim 1 had been engaging in commercial sex acts on her own before being approached by Lankford. Knowing of Victim 1’s drug addition, Lankford lured Victim 1 into performing commercial sex acts at his direction with the promise that he would help Victim 1 make more money to buy a house and attain custody of her son.
Days after luring Victim 1 to conduct commercial sex dates at his direction, Lankford recruited Aldridge, Kevonne Murphy, age 31, of Federalsburg, Maryland; and David Goodwin, age 29 of Federalsburg, Maryland to participate in the sex trafficking conspiracy. Throughout the conspiracy, Aldridge forced Victim 1 to continue to engage in commercial sex acts and maintained Victim 1 in exchange for money from Lankford.
Specifically, on October 29, 2018, the conspiracy members drove Victim 1 back to Maryland from Delaware where she continued to engage in commercial sex acts and provided all funds she was paid to the co-conspirators. After one commercial sex act, Victim 1 returned to the co-conspirators and gave them the money she had collected. Aldridge and Murphy yelled at Victim 1 for not making enough money. Fearing for her safety, Victim 1 attempted to escape by attempting to jump out of Aldridge’s moving car. Aldridge then removed her belt and another co-conspirator put it around Victim 1’s neck to prevent her from escaping. Murphy then contacted Lankford and informed him of Victim 1’s escape attempt. Subsequently, Aldridge, Lankford, and the other conspiracy members drove to railroad tracks in a dark and remote location where Aldridge and her co-conspirators physically assaulted Victim 1 with Aldridge’s belt to maintain her compliance.
After assaulting Victim 1, Aldridge and her co-conspirators transported Victim 1 to a motel in which Victim 1 was prohibited from wearing clothes for the remainder of the evening. Victim 1 was also forced to take a cold shower to cause her to suffer. Later that night, the co-conspirators drafted a sex acts sheet which listed acts that the victim would be required to perform for customers moving forward. The sex acts sheet was later recovered pursuant to a search warrant of the motel room.
As detailed in his plea agreement, on the morning of October 30, 2018, Victim 1 accessed Aldridge’s cell phone and called 911. Upon arrival at the motel room, Murphy opened the door for Delaware State police troopers. Troopers saw Victim 1 standing behind Murphy and Victim 1 began indicating that she was in distress. The three conspirators were then detained.
Report suspected instances of human trafficking and sex trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Erek L. Barron and Assistant Attorney General Kristen Clarke commended the HSI Baltimore and Philadelphia offices, the Maryland State Police Department, the Federalsburg Police Department, and the Delaware State Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Mary W. Setzer and Leah Branch of the Department of Justice’s Human Trafficking Prosecution unit, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/human-trafficking and https://www.justice.gov/usao-md/community-outreach.
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Scranton Man Charged with Tax EvasionRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ronald Halko, age 79, of Scranton, Pennsylvania, was indicted on April 12, 2022, by a federal grand jury for tax evasion.
According to United States Attorney John C. Gurganus, the indictment alleges that Halko attempted to evade payment of Trust Fund Recovery Penalty (TFRP) taxes (the collecting of employment taxes by the IRS from the owners or corporate officers of a business that has failed to pay the employment taxes) in the approximate amount of $144,864.43 by concealing sources of income and other assets from the IRS.
The case was investigated by the IRS Criminal Investigation and Assistant U.S. Attorney Todd K. Hinkley is prosecuting the case.
The maximum penalty under federal law for these offenses is five years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Scott County Man Sentenced to 324 Months for Production of Child PornographyRead the Press Release
LEXINGTON, Ky. — A Georgetown, Ky., man, Phillip Christopher Abel, 36, was sentenced on Thursday, to 324 months in federal prison, by U.S. District Judge Karen Caldwell, after previously pleading guilty to enticing a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of that conduct.
According to his Abel’s plea agreement, law enforcement received information that he was using Freenet, a peer-to-peer file sharing network to request files associated with the sexual exploitation of children. Additionally, law enforcement found at least 30 deleted photos of a pre-pubescent female in various sexual poses that were taken at Abel’s property. Abel admitted that he knowingly used the victim to engage in sexually explicit conduct for the purpose of producing visual depictions of the sexually explicit conduct.
Abel pleaded guilty in September 2021.
Under federal law, Abel must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for life. In addition to his prison time, Abel is required to pay $15,000 in restitution.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jerry Templet, Special Agent in Charge, Department of Homeland Security, Homeland Security Investigations (HSI); Daniel Cameron, Attorney General of Kentucky; and Michael D. Bosse, Chief of Police, Georgetown Police Department, announced the sentence.
The investigation was conducted by HSI, Kentucky Attorney General’s Office, and Georgetown Police Department. The United States was represented in the case by Assistant U.S. Attorney Erin Roth.
This case was prosecuted 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.
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Russian Legislator and Two Staff Members Charged with Conspiring to Have U.S. Citizen Act as an Illegal Agent of the Russian Government in the United StatesRead the Press Release
Russian Legislator Aleksandr Mikhaylovich Babakov and Staff Members Aleksandr Nikolayevich Vorobev and Mikhail Alekseyevich Plisyuk, Allegedly Conspired to Violate U.S. Sanctions, Have a U.S. Citizen Act as an Illegal Agent of Russia, and Fraudulently Obtain Visas to Enter the U.S. in Furtherance of a Global Foreign Influence Scheme for the Russian Government
Three citizens of the Russian Federation (Russia) are charged in an indictment, which was unsealed today, with conspiring to use an agent of Russia in the United States without prior notice to the Attorney General, conspiring to violate U.S. sanctions and conspiring to commit visa fraud.
According to court documents, beginning in or around January 2012 through at least June 2017, Aleksandr Mikhaylovich Babakov, 59; Aleksandr Nikolayevich Vorobev, 52; and Mikhail Alekseyevich Plisyuk, 58, operated an international foreign influence and disinformation network to advance the interests of Russia.
“The indictment alleges that a high-ranking Putin-aligned legislator and his closest staffers, all three of whom are sanctioned, engaged in a global campaign to influence and gain access to U.S. elected officials,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Department will not hesitate to prosecute those who seek to covertly influence the American political process and evade U.S. sanctions.”
“Russian legislator Aleksandr Babakov and two of his staffers allegedly orchestrated a covert Russian propaganda campaign in the United States in order to advance Russia’s malevolent political designs against Ukraine and other countries, including the United States.,” said U.S. Attorney Damian Williams for the Southern District of New York. “Today’s indictment demonstrates that Russia’s illegitimate actions against Ukraine extend beyond the battlefield, as political influencers under Russia’s control allegedly plotted to steer geopolitical change in Russia’s favor through surreptitious and illegal means in the United States and elsewhere in the West. Such malign foreign interference will be exposed, and we will pursue justice against its perpetrators.”
“This FBI investigation highlights the lengths the Russian government will go to undermine our rule of law,” said Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division. “The FBI is committed to protecting the United States from foreign malign influence and upholding the sanctions in place to keep our democracy safe.”
As alleged in the indictment, Babakov, a member of the Russian legislature, Vorobev, his Chief of Staff, and Plisyuk, another member of Babakov’s staff, used a nonprofit organization based in Russia, the Institute for International Integration Studies, as a front for this global foreign influence campaign to advance Russia’s foreign policy objectives. Through these operations aimed at influencing the course of international affairs, the defendants worked to weaken U.S. partnerships with European allies, undermine Western sanctions and promote Russia’s illicit actions designed to destroy the sovereignty of Ukraine. The defendants schemed to affect U.S. policy towards Russia through staged events, paid propaganda and the recruitment of at least one American citizen (CC-1) to do their bidding in an unofficial capacity and without notice to the Attorney General, as required by law. In pursuit of these goals, the defendants sought to co-opt U.S. and European politicians and to influence public opinion in their favor, using American and European citizens as their proxies to validate them, bring them access to power, evade sanctions and obscure their true objective to advance Russia’s foreign policy.
Among other things, the defendants contacted members of the U.S. Congress from 2012 into 2017 to seek meetings and to offer free travel to at least one Congressmember on behalf of Babakov, as well as other foreign officials aligned and associated with Babakov. For example, in 2012, at the direction of the defendants, CC-1 sought to secure a meeting for Babakov with multiple members of Congress, including by offering an “all expenses paid” trip to a particular Congressmember to meet with European politicians and receive “an award.” Congressmembers rebuffed these efforts.
In March 2017, the defendants sought to arrange a meeting for Babakov with a member of the U.S. Congress in pursuit of the objective of “strengthen[ing] the ties of cooperation between” Russia and the United States. To secure that meeting, the defendants, through CC-1, transmitted a letter drafted by CC-1 and signed by Babakov to a particular Congressmember.
Also in March 2017, the defendants contacted at least one member of the U.S. Congress to offer free travel to a Babakov-affiliated conference in Yalta, part of Russia-controlled Crimea, as a service to benefit the purported “Prime Minister of Crimea,” Sergey Aksyonov. Aksyonov was organizing and attending the conference, and had been sanctioned by the Department of Treasury’s Office of Foreign Assets Control (OFAC) as a Specially Designated National (SDN) since 2014 based on his role in actions and policies threatening the sovereignty of Ukraine. The defendants worked together and with their associates to organize, facilitate and promote the Yalta conference, including by soliciting Americans to attend and present at the conference and receive funding from Aksyonov’s organizing committee, for the benefit of Akysonov and his Russia-backed purported government of Crimea. The Congressmember did not accept the offer.
In connection with these foreign influence activities, the defendants also submitted fraudulent visa applications in February 2017 seeking to travel to the United States under the false pretense of each traveling alone for a “vacation,” when in fact they planned to conduct unofficial meetings with U.S. politicians and advisors to further their influence objectives. In June 2017, OFAC sanctioned the three defendants as SDNs. The defendants’ visa applications were ultimately denied in January 2018, disrupting the defendants’ planned meetings in the United States.
Babakov currently serves as the Deputy Chairman of the State Duma, the lower house of the Russian legislature. From approximately September 2014 to October 2021, Babakov served as a member of the Russian Federation Council, the upper house of the Russian legislature, and therefore had the title of Senator. From approximately 2003 to 2014, Babakov served as a member of the State Duma, where he held prominent roles such as Chair of the State Duma Commission on Legislative Provisions for Development of the Military-Industrial Complex of the Russian Federation. In or around 2011, Babakov joined the United Russia party, which is the political party of Russian President Vladimir Putin. On or around June 17, 2012, Putin appointed Babakov to be the Russian Federation’s Special Representative for Cooperation with Organizations Representing Russians Living Abroad. Babakov has become a leader in the “For Truth” party formed in or about 2021, which supports Putin. At all times relevant to the indictment, Vorobev has held the position of Chief of Staff for Babakov, and Plisyuk has served on Babakov’s staff.
Babakov, Vorobev and Plisyuk are charged with one count of conspiring to have a U.S. citizen act as a Russian agent in the United States without notifying the Attorney General, which carries a maximum sentence of five years in prison; one count of conspiring to violate and evade U.S. sanctions, in violation of the International Emergency Economic Powers Act, which carries a maximum sentence of 20 years in prison; and one count of conspiring to commit visa fraud, which carries a maximum sentence of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case is being investigated by the FBI’s New York Field Office with valuable assistance provided by the National Security Division’s Counterintelligence and Export Control Section.
Assistant U.S. Attorneys Kimberly J. Ravener and Kyle A. Wirshba for the Southern District of New York are prosecuting the case, with assistance from Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section.
On March 2, the Attorney General announced the launch of Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. The task force will leverage all the Department’s tools and authorities against efforts to evade or undermine the economic actions taken by the U.S. government in response to Russian military aggression.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This press release has been modified to reflect precise statutory language.
Russian Legislator and Two Staff Members Charged with Conspiring to Have A U.S. Citizen Act as an Illegal Agent of the Russian Government in the United StatesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Matthew G. Olsen, the Assistant Attorney General for National Security, and Michael J. Driscoll, the 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 ALEKSANDR MIKHAYLOVICH BABAKOV, ALEKSANDR NIKOLAYEVICH VOROBEV, and MIKHAIL ALEKSEYEVICH PLISYUK, citizens of the Russian Federation (“Russia”), with conspiring to act in the United States as an illegal agent of Russia, conspiring to violate United States sanctions, and conspiring to commit visa fraud. BABAKOV, a Deputy Chairman in the Russian legislature, VOROBEV, and PLISYUK are based in Russia and remain at large.
U.S. Attorney Damian Williams said: “Russian legislator Aleksandr Babakov and two of his staffers allegedly orchestrated a covert Russian propaganda campaign in the U.S. in order to advance Russia’s malevolent political designs against Ukraine and other countries, including the U.S. Today’s indictment demonstrates that Russia’s illegitimate actions against Ukraine extend beyond the battlefield, as political influencers under Russia’s control allegedly plotted to steer geopolitical change in Russia’s favor through surreptitious and illegal means in the U.S. and elsewhere in the West. Such malign foreign interference will be exposed, and we will pursue justice against its perpetrators.”
Assistant Attorney General Matthew G. Olsen said: “The indictment alleges that a high-ranking Putin-aligned legislator and his closest staffers, all three of whom are sanctioned, engaged in a global campaign to influence and gain access to U.S. elected officials. The Department will not hesitate to prosecute those who seek to covertly influence the American political process and evade U.S. sanctions.”
FBI Assistant Director-in-Charge Michael J. Driscoll said: “Beginning as far back as 2012, Aleksandr Babakov, an oligarch who has served as a leader in the Russian legislature along with two of his deputies, operated a nonprofit organization as a subterfuge for an international foreign influence and disinformation network to advance the interests of the Russian Government. As alleged, Babakov sought to undermine Western sanctions - including those imposed against him - promote Russia’s illicit actions designed to destroy Ukrainian sovereignty, and co-opt and cultivate relationships with U.S. politicians to advance Russia’s malign foreign policy objectives. Today’s action demonstrates the FBI’s unwavering commitment to the identification and disruption of Russian Government schemes to target the national security and foreign policy of the United States.”
According to the allegations contained in the Indictment unsealed today in Manhattan federal court[1]:
Beginning in or around January 2012 and continuing into at least June 2017, Babakov, a member of the Russian legislature, Vorobev, his Chief of Staff, and Plisyuk, another member of Babakov’s staff, operated an international foreign influence and disinformation network to advance the interests of Russia. The defendants used a nonprofit organization based in Russia, the “Institute for International Integration Studies,” as a front for this global foreign influence campaign to advance Russia’s foreign policy objectives. Through these operations aimed at influencing the course of international affairs, the defendants worked to weaken U.S. partnerships with European allies, undermine Western sanctions, and promote Russia’s illicit actions designed to destroy the sovereignty of Ukraine. The defendants schemed to affect U.S. policy towards Russia through staged events, paid propaganda, and the recruitment of at least one American citizen (“CC-1”) to do their bidding in unofficial capacities. In pursuit of these goals, the defendants sought to co-opt U.S. and European politicians and to influence public opinion in their favor, using American and European citizens as their proxies in an effort to validate them, bring them access to power, evade sanctions, and obscure their true objective to advance Russia’s foreign policy.
Among other things, the defendants contacted members of the U.S. Congress from 2012 into 2017 to seek meetings and to offer free travel to at least one Congressmember on behalf of BABAKOV, as well as other foreign officials aligned and associated with BABAKOV. For example, in 2012, at the direction of the defendants, CC-1 sought to secure a meeting for BABAKOV with multiple members of Congress, including by offering a trip to a particular Congressmember “all expenses paid” to meet with European politicians and receive “an award.” Congressmembers rebuffed these efforts.
In March 2017, the defendants sought to arrange a meeting for BABAKOV with a member of the U.S. Congress in pursuit of the objective of “strengthen[ing] the ties of cooperation between” Russia and the United States. To secure that meeting, the defendants, through CC-1, transmitted a letter drafted by CC-1 and signed by BABAKOV to a particular Congressmember.
Also in March 2017, the defendants contacted at least one member of the U.S. Congress to offer free travel to a BABAKOV-affiliated conference in Yalta, part of Russia-controlled Crimea, as a service to benefit the purported “Prime Minister of Crimea,” Sergey Aksyonov, who was organizing and attending the conference, and had been sanctioned by the United States Department of Treasury’s Office of Foreign Assets Control (“OFAC”) as a Specially Designated National since 2014 based on his role in actions and policies threatening the sovereignty of Ukraine. The defendants worked together and with their associates to organize, facilitate, and promote the Yalta conference, including by soliciting Americans to attend and present at the conference and receive funding from Aksyonov’s organizing committee, for the benefit of Akysonov and his Russia-backed purported government of Crimea. The Congressmember did not accept the offer.
In connection with these foreign influence activities, the defendants also submitted fraudulent visa applications in February 2017 seeking to travel to the United States under the false pretense of each traveling alone for a “vacation,” when in fact they planned to conduct unofficial meetings with U.S. politicians and advisors to further their influence objectives. In June 2017, OFAC sanctioned the three defendants as Specially Designated Nationals. The defendants’ visa applications were ultimately denied in January 2018, disrupting the defendants’ planned meetings in the U.S.
BABAKOV currently serves as the Deputy Chairman of the State Duma, the lower house of the Russian legislature. From approximately September 2014 to October 2021, BABAKOV served as a member of the Russian Federation Council, the upper house of the Russian legislature, and therefore had the title of “Senator.” From approximately 2003 to 2014, BABAKOV served as a member of the State Duma, where he held prominent roles such as Chair of the State Duma Commission on Legislative Provisions for Development of the Military-Industrial Complex of the Russian Federation. In or about 2011, BABAKOV joined the United Russia party, which is the political party of Russian President Vladimir Putin. On or about June 17, 2012, Putin appointed BABAKOV to be the Russian Federation’s Special Representative for Cooperation with Organizations Representing Russians Living Abroad. BABAKOV has become a leader in the “For Truth” party formed in or about 2021, which supports Putin. At all times relevant to the Indictment, VOROBEV has held the position of Chief of Staff for BABAKOV, and PLISYUK has served on BABAKOV’s staff.
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BABAKOV, 59, VOROBEV, 52, and PLISYUK, 58, of Russia, are charged with one count of conspiring to have a U.S. citizen act as an illegal agent in the United States for Russia and Russian officials without notifying the Attorney General, which carries a maximum sentence of five years in prison; one count of conspiring to violate and evade U.S. sanctions, in violation of the International Emergency Economic Powers Act, which carries a maximum sentence of 20 years in prison; and one count of conspiring to commit visa fraud, which carries a maximum sentence of five years in prison. The maximum potential sentences 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 investigative work of the FBI and its New York Field Office, Counterintelligence Division, and thanked the Department of Justice’s National Security Division, Counterintelligence and Export Control Section, for their assistance.
On March 2, 2022, the Attorney General announced the launch of Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed, along with allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. The task force will leverage all the Department’s tools and authorities against efforts to evade or undermine the economic actions taken by the U.S. government in response to Russian military aggression.
The case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Kimberly J. Ravener and Kyle A. Wirshba are in charge of the case, with assistance from Trial Attorney Scott Claffee of the Counterintelligence and Export Control Section.
The charges in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
This press release has been modified to reflect precise statutory language
Registered Sex Offender Arrested on Charges of Possession and Distribution of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that John Fadden, 48, of Savona, NY, was arrested and charged by criminal complaint with possession and distribution of child pornography by an individual who has a prior conviction involving the sexual abuse of a child. The charges carry a mandatory minimum penalty of 10 years in prison and a maximum of 40 years in prison.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that in March 2021, The National Center for Missing and Exploited Children received two cybertip reports from Yahoo! Inc. that in February and March, 2021, user [email protected] uploaded approximately 185 image files of suspected child pornography. In October 2021, investigators executed a search warrant at Fadden’s residence and seized multiple electronic devices and storage media. A forensic analysis recovered more than 100 files of child pornography on a Sandisk thumb drive.
Fadden is a Level 3 registered sex offender. He was convicted in 1991, 1992, and 2001 of Sexual Abuse 1st: Sexual Contact with Individual Less Than 11 Years Old. In 2013, Fadden was convicted of Sex Offender Fail to Report Change of Address/Status In 10 Days.
The indictment is a result of an investigation by Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino, and the New York State Police, under the direction of Major Eugene Staniszewski.
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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Raleigh County Man Pleads Guilty to Federal Firearm ChargeRead the Press Release
BECKLEY, W.Va. – A Raleigh County man pleaded guilty today to being a felon in possession of a firearm.
According to court documents, Joshua Radcliffe, 39, of Shady Spring, admitted that he used a Cobray Model D, .45/.410-caliber Derringer pistol to rob the Shop Rite convenience store in Shady Spring, Raleigh County, on December 1, 2021. Law enforcement officers found the firearm in his residence on December 6, 2021.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Radcliffe was aware that he was prohibited from possessing a firearm because of his August 2019 felony conviction in U.S. District Court for the Southern District of West Virginia for conspiracy to use firearms in a drug trafficking crime.
Radcliffe is scheduled to be sentenced on July 29, 2022, and faces a maximum penalty of 10 years in prison.
United States Attorney Will Thompson made the announcement and commended the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Raleigh County Sheriff’s Department for their work in the investigation.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Andrew D. Isabell is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-62.
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Postal Service Letter Carrier Pleads Guilty to Stealing MailRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that JAVONTE RICHARD, age 29, of New Orleans, Louisiana, has pleaded guilty to Theft of Mail by a Postal Service employee in violation of Title 18, United States Code, Section 1709.
According to court documents, the U.S. Postal Service, Office of Inspector General (“USPS-OIG”) received complaints from the public concerning missing parcels received by the Johnson Post Office in Metairie, that were later determined to be entrusted to RICHARD. On November 14, 2019, USPS-OIG Special Agents placed a package in the mail to be processed and delivered by RICHARD while on her route. The item was a mail package addressed to a fictitious person and address from another fictitious person and address. While on her route, RICHARD opened the package. Shortly after, USPS-OIG Special Agents stopped RICHARD and observed her retaping the package. RICHARD later admitted to opening the package and removing it from the mail.
RICHARD faces a maximum penalty of five (5) years imprisonment, followed by up to three (3) years of supervised release, a $250,000 fine, and a $100 mandatory special assessment fee. United States Chief District Judge Nannette Jolivette Brown has set sentencing for July 21, 2022.
U.S. Attorney Evans praised the work of the United States Postal Inspection Service, Office of the Inspector General in investigating this matter. Assistant U.S. Attorney Jon M. Maestri is in charge of the prosecution.
Postal Contractor Charged with Mail TheftRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Anthony Collier, Jr., age 39, of Harrisburg, Pennsylvania, was indicted yesterday by a federal grand jury on mail theft charges.
According to United States Attorney John C. Gurganus, the indictment alleges that on November 2, 2021, Collier took mail packages intended to be delivered through the U.S. Postal Service to victims located in Charlotte, North Carolina and Maryland. Collier was acting as a contractor responsible for transporting mail. The value of the items taken were in excess of $10,000.
The case was investigated by the United States Postal Inspection Service and the Penbrook Police Department. Assistant U.S. Attorney Jaime M. Keating is prosecuting the case.
If convicted, the maximum penalty under federal law for this offense is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court
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Philadelphia Man Sentenced to 6 ½ Years in Prison for Stealing Nearly $1 Million in PPP FundsRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Devron Brown, 50, formerly of Philadelphia, PA, was sentenced to six years and six months in prison, five years of supervised release, and ordered to pay $939,350 restitution by United States District Court Judge Chad F. Kenney for his involvement in a scheme to unlawfully obtain and misuse loan proceeds offered through the federal Paycheck Protection Program (“PPP”).
In December 2021, the defendant pleaded guilty to eleven felony counts: two counts of bank fraud and attempted bank fraud, and nine counts of money laundering in connection with fraudulently obtaining approximately $937,500 in PPP loan proceeds by making false representations regarding his alleged construction business, Just Us Construction, Inc. Brown made multiple false characterizations about the business, including the number of employees, the wages paid to them, the payroll taxes paid on those wages, and the intended use of the PPP loan proceeds. Brown then used those PPP loan proceeds for personal and unauthorized purchases, including a new residential property in Florida, a motorcycle, an all-terrain vehicle, a luxury automobile, and diamond jewelry. The defendant also caused a second fraudulent PPP loan application to be submitted for approximately the same amount in early 2021, but that application was denied.
“Paycheck Protection Program funds are intended to help American small-businesses continue paying their employees, even if revenues have dropped dramatically due to the pandemic,” said U.S. Attorney Williams. “Thieves who attempt to take these funds are taking advantage of others’ misfortune – ripping them off while also ripping off all taxpayers who fund the program. Here, the defendant fraudulently obtained nearly $1 million in funds that could have helped struggling businesses and individuals, and instead spent the money on indulgences for himself.”
“Cars, diamond rings, a house — Devron Brown must’ve thought he hit the jackpot when he got that PPP money,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “We’re talking about a program created to keep businesses and employees afloat amid a pandemic battering our economy. The FBI simply won’t stand for opportunists thinking they can defraud the federal government, live large, and get away with it. We will continue to aggressively pursue anyone foolish enough to do so.”
“Joseph Whitbeck, former Vice President of the National Association of Letter Carriers Branch 274, betrayed the trust of the members he served by engaging in a kickback scheme involving the solicitation of cash payments from letter carriers who he assisted in obtaining monetary grievance settlements from the United States Postal Service. We will continue to work with our law enforcement partners and the U.S. Department of Labor’s Office of Labor-Management Standards to investigate union officials who exploit their members for personal benefit,” said Syreeta Scott, Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.
The case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency, Office of the Inspector General, with assistance from the United States Marshals Service, and is being prosecuted by Assistant United States Attorney Kathryn Deal.
Peekskill Man Who Identifies as an “Incel” or “Involuntary Celibate” Is Sentenced to 30 Months in Prison for Stalking, Threatening, and Harassing Multiple VictimsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that DAVID KAUFMAN, a/k/a “David Khalifa,” a/k/a “John Morray,” a/k/a “Big Man,” a self-identified “Incel,” was sentenced to 30 months in prison, after pleading guilty to stalking multiple victims between October 2019 and August 2020. U.S. District Judge Nelson S. Román imposed today’s sentence.
U.S. Attorney Damian Williams said: “David Kaufman, a self-described ‘Incel,’ or ‘Involuntary Celibate,’ expressed his hatred of women by terrorizing and harassing his victims though threats of violence. The Court’s sentence sends a clear message to the public that perpetrators of violence against women will be held accountable for their crimes.”
According to the Complaint, Indictment, other documents in the public record, as well as statements made in public court proceedings:
KAUFMAN self-identifies as an “Incel” or “Involuntary Celibate,” which refers to a group of domestic extremists who adhere to a violent and misogynist ideology of male supremacy. Incels believe they are entitled to sex with women and to women’s bodies, and they blame women for refusing to have sex with them. Incels have an active online community and over the last eight years, Incels also have committed acts of violence against women around the world, including in the United States. For example, in 2014, a self-proclaimed Incel named Elliot Rodger declared a “War on Women” and killed six people and injured fourteen others near a college campus in California. Prior to these attacks, Rodger posted a video manifesto online, in which he explained that he planned his attack to punish women for rejecting him and for depriving him of sex, and to punish sexually active men because he envied them.
In or about 2019 and 2020, KAUFMAN harassed, threatened, and stalked numerous victims. In or about February 2019, KAUFMAN sent a bomb, rape, and death threat to a female victim. A few months later, beginning in or about October 2019, KAUFMAN sent two victims (“Victim-1” and “Victim-2”), among others, violent and threatening messages using over 50 social media accounts. In these messages, KAUFMAN self-identified as an Incel, expressed his hatred of women, and threatened to commit acts of violence. For example:
- On or about June 24, 2020, KAUFMAN sent the following message to Victim-1: “Hey wanna hear a joke? What’s worse than 10 Stacy’s nailed to one tree? One Stacy nailed to ten trees [laughing crying face emoji].” “Stacy” is an Incel term that refers to an attractive female who rejects or refuses to have sex with an Incel, is hated by Incels, and is targeted by Incels for harassment, vitriol, humiliation, and violence.
- On or about June 29, 2020, KAUFMAN sent a series of messages to Victim-2. These messages included an image of one of Elliot Rodger’s victims, a deceased female who had been stabbed to death, accompanied by the following message: “This is what happened when a woman said ‘no’ to Elliot Rodger . . . . Hopefully [Victim-1] never said no to someone just like Elliot Rodger.”
- In or about July 2020, KAUFMAN posted the following messages: “Don’t piss off BIG MAN” and “When [Victim-1] and I are dead, we’ll be in heaven together forever.”
- On or about July 11, 2020, KAUFMAN sent the following message to Victim-1: “Women have done nothing but spit in my face. Soon I’ll be getting a gun.”
- On or about July 12, 2020, KAUFMAN posted the following messages: “A beautiful environment is the darkest hell, if you have to experience it all alone . . . –Elliot Rodger” and “I don’t think [Victim-1] will be laughing too much later on."
KAUFMAN also created social media accounts using the first and last names of Victim-1 and Victim-2, respectively, and impersonated Victim-1 and Victim-2 online.
In the summer of 2020, law enforcement officers approached KAUFMAN and told him to stop harassing Victim-1 and Victim-2. On or about July 14, 2020, KAUFMAN was arrested on state criminal charges and an order of protection was issued in Westchester County prohibiting KAUFMAN from, among other things, communicating or contacting Victim-1 or Victim-2.
Notwithstanding the court order of protection, state charges, and multiple warnings by law enforcement, KAUFMAN continued to harass, threaten, and stalk Victim-1 and Victim-2 until he was federally charged and arrested in August 2020. KAUFMAN also conducted online surveillance of Victim-1’s residence and researched how to illegally purchase a gun and assemble a semi-automatic rifle.
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In addition to the prison sentence, KAUFMAN, 28, of Peekskill, New York, was sentenced to 3 years supervised release, with first six months of home detention, the conditions of which include orders of protection prohibiting KAUFMAN from, among other things, contacting certain victims and their family members.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation’s New York Joint Terrorism Task Force. Mr. Williams also thanked the New York State Police, the U.S. Postal Inspection Service, the Cortlandt County Police Department, the Stamford Police Department, the Peekskill Police Department, the Mt. Pleasant Police Department, and the Westchester County District Attorney’s Office for their assistance and cooperation.
This prosecution is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorney Jane Kim is in charge of the prosecution.
Paroled Murderer Arrested on Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Israel Rivera-Reyes, 48, of Rochester, NY, was arrested and charged by criminal complaint with production of child pornography. The charge carries a mandatory minimum penalty of 15 years in prison and a maximum of 30 years.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that according to the complaint, in March 1995, Rivera was convicted of Murder 2nd Degree: With Intent and sentenced to serve five years to life in prison. Rivera was released in August 2006 on New York State Parole. Rivera’s parole was subsequently revoked in 2012, 2013, and 2014. He was most recently re-paroled on March 14, 2019.
On April 7, 2022, the Irondequoit Police Department received a referral from Child Protective Services (CPS), which stated that Rivera had sexual intercourse with Minor Victim 1 on multiple occasions. At the time, Rivera was approximately 47 years old and Minor Victim 1 was 16 years old. The complaint states that Rivera also sent nude pictures and videos to Minor Victim 1’s phone. A search of Minor Victim 1’s recovered multiple sexually explicit videos. On April 13, 2022, a search warrant was executed at Rivera’s Norcrest Drive residence in Rochester, during which investigators seized Rivera’s cell phone. Rivera was taken into custody at that time.
The complaint is a result of an investigation by the Irondequoit Police Department, under the direction of Chief Alan Laird, the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Monroe County District Attorney’s Office, under the direction of Sandra Doorley.
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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Owner and Operator of Arlington Insurance Agency Convicted by Federal Jury of Stealing Government BenefitsRead the Press Release
BOSTON – The owner and operator of an Arlington-based insurance agency has been convicted by a federal jury in Boston of fraudulently receiving disability benefits from the Department of Veterans Affairs (VA) and the Social Security Administration (SSA).
Patrick Quinn, 50, of Arlington, was convicted on Tuesday, April 12, 2022, following a six-day jury trial of two counts of theft of public funds and two counts of making false statements. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Aug. 17, 2022. Quinn was arrested and charged in December 2019.
Since January 2012, Quinn stole more than $420,000 in veteran benefits and Social Security benefits by falsely telling the VA and SSA that he was unable to work due to a disability, when in reality, he owned and operated Quinn Insurance Group, Inc.
In October 1995, shortly after being discharged from the U.S. Marine Corps, Quinn applied and was approved for disability compensation benefits with the VA based on a series of physical injuries and, later, post-traumatic stress disorder. In March 2005, Quinn applied for Individual Unemployability (IU) benefits with the VA, which is paid to individuals who are unable to maintain substantially gainful employment as a result of their service-connected disabilities. In the application, Quinn claimed that his PTSD prevented him from securing or following any substantially gainful occupation and that he had become too disabled to work. In support of his application, Quinn submitted a letter from his purported final employer, Insurance Management Consultants, Inc., claiming Quinn was let go due to his erratic behavior and was no longer employed at the firm. While receiving IU benefits, Quinn completed and returned four VA employment questionnaires, in each of which he attested he had not worked during the previous year.
Similarly, in November 2005, Quinn applied and was approved for Disability Insurance Benefits with Social Security, this time claiming he had become unable to work due to his disabling condition in September 2004. In June 2006, Quinn applied for Child’s Insurance Benefits, which are paid to the dependent of a disabled individual receiving Disability Insurance Benefits, on behalf of his minor child. Social Security beneficiaries are obligated to report if they return to work to the SSA. In May 2018, Quinn reported to the SSA that he had not worked since May 2006. The SSA continued to pay benefits to Quinn and his son based on this report.
Evidence presented at trial established that Quinn was self-employed as the owner and operator of his own insurance agency, Shannon Francis & Quinn Insurance, which later became Quinn Insurance Group, Inc, since at least March 2003 – contrary to his claims to the VA and SSA. Quinn also served as the President, Treasurer, Secretary and Director of Insurance Management Consultants, Inc. from 2000 through 2007, despite telling the VA and SSA that the company fired him in 2005. While operating his own insurance company, Quinn regularly received payments ranging in amounts of $6,500 to $15,000 and grew his business significantly through acquisitions of nine smaller insurance companies at various times between 2012 through 2019. Further evidence established that Quinn was appointed by 65 insurance companies to conduct business on their behalf and renewed his insurance producer license on numerous occasions.
The charge of theft of public funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of making a false statement provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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; Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; and Sharon MacDermott, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division made the announcement today. Special Assistant U.S. Attorney Karen Burzycki and Assistant U.S. Attorney J. Mackenzie Duane of Rollins’ Major Crimes Unit are prosecuting the case.
Orono Man Sentenced for Possessing Unregistered Short-Barreled RifleRead the Press Release
BANGOR, Maine: An Orono man was sentenced today in federal court for possessing an unregistered firearm, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge Lance E. Walker sentenced Louis J. Dettling, 27, to time served (nine months) and two years of supervised release. Dettling pleaded guilty on December 2, 2021.
According to court records, on March 2, 2021, Dettling was pulled over by the Holden Police Department and arrested on state charges of terrorizing and criminal trespass. A subsequent inventory search of Dettling’s vehicle revealed a short-barreled rifle that was not registered to him in the National Firearms Registration and Transfer Record (NFRTR). Federal law prohibits the possession of a rifle having a barrel length of less than 16 inches unless that weapon is registered to the possessor in the NFRTR.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Hancock County Sheriff’s Office; and the Holden Police Department.
Project Safe Neighborhoods: Project Safe Neighborhoods (PSN) is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, community leaders and other stakeholders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. PSN is coordinated by the U.S. Attorneys’ Offices in the 94 federal judicial districts throughout the 50 states and U.S. territories. PSN is customized to account for local violent crime problems and resources. Across all districts, PSN follows four key design elements of successful violent crime reduction initiatives: community engagement, prevention and intervention, focused and strategic enforcement, and accountability.
Niskayuna Man Arrested for Receiving Child PornographyRead the Press Release
ALBANY, NEW YORK – Aaron Griesche, age 39, of Niskayuna, New York, was arrested today on a federal criminal complaint charging him with receiving child pornography, announced United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The complaint alleges that Griesche used his laptop to download child pornography, which he later transferred to a USB storage device. The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
The charge against Griesche carries a minimum sentence of 5 years and a maximum sentence of 20 years in prison, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Griesche would also have to register as a sex offender if convicted.
Griesche appeared today for an initial appearance before United States Magistrate Judge Daniel Stewart and was ordered detained pending further proceedings.
This case is being investigated by the FBI Child Exploitation Task Force and by the New York State Police Internet Crimes Against Children Task Force, and is being prosecuted by Assistant U.S. Attorney Dustin C. Segovia as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). 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 https://www.justice.gov/psc.