Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 4 March 2022
21 Alleged Gang Members and Associates Charged in RICO IndictmentRead the Press Release
A federal indictment was unsealed today charging 21 alleged members and associates of the Simon City Royals gang with a racketeering conspiracy involving murder, attempted murder, narcotics trafficking, witness tampering, obstruction of justice, wire fraud and money laundering.
The indictment charges Allen Posey, 47; Jonathan Davis, 38; Jeremy Holcombe, 42; Jonathan Burnett, 38; Hank Chapman, 37; Jason Hayden, 41; Joshua Miller, 40; Gavin Pierson, 32; Justin Shaw, 35; Bobby Brumfield, 42; Jordan Deakles, 30; Bryce Frances, 42; Anthony Murphy, 29; Chancey Bilbo, 30; Dillon Heffker, 31; Douglas Jones, 33; Cody Woodall, 30; and Michael Muscolino, 42, with racketeering conspiracy. The indictment also charges those individuals and Valerie Madden, 53; Samuel Conwill, 43; and Jason Collins, 38, with narcotics conspiracy and money laundering conspiracy. Nine of the defendants – Shaw, Posey, Brumfield, Jones, Pierson, Deakles, Davis, Frances, Heffker and Murphy – are additionally charged with murder in aid of racketeering, attempted murder in aid of racketeering, or assault in aid of racketeering.
“The Criminal Division is committed to dismantling gangs, like the Simon City Royals, that use violence and intimidation to damage our communities and interfere with our justice system,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “This indictment demonstrates that the Department of Justice is dedicated to protecting people victimized by these gangs and holding the alleged offenders accountable.”
“This case is an example of ATF’s dedication and commitment to combating violent crime in our communities,” said Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) New Orleans Field Division. “ATF is proud to work with our law-enforcement partners to bring violent criminals to justice and to help make our neighborhoods safer.”
According to the indictment, the Simon City Royals are a national criminal gang whose dealings include extortion, narcotics, identity-theft, money laundering and violent crime. The gang has a formalized hierarchy involving numerous “boards” and “teams,” including a team dedicated to carrying out violent gang punishments, and a “money team” responsible for earning revenue through fraud, illegal gambling, and identity theft.
According to the indictment, the defendants murdered or attempted to murder numerous individuals, including a suspected law-enforcement cooperator, a rival gang leader, and individuals perceived to have shown disrespect to the gang. The defendants employed various methods to conceal their activities and finances, including communicating via encrypted messages and filing articles of incorporation to establish a fraudulent nonprofit organization with the state of Mississippi.
If convicted, the defendants face penalties ranging from 10 years and life for narcotics conspiracy; up to 20 years for money laundering conspiracy; 20 years to life imprisonment for the racketeering conspiracy; up to 10 years in prison for attempted murder in aid of racketeering; and up to 20 years for assault in aid of racketeering; and a mandatory life in prison sentence for murder in aid of racketeering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The defendants were arrested yesterday, March 3, and are scheduled to make their initial court appearances today at 2 p.m. before U.S. Magistrate Judge Roy Percy of the U.S. District Court for the Northern District of Mississippi.
The Bureau of Alcohol, Tobacco, and Firearms; the Drug Enforcement Administration; the U.S. Marshals Service; the U.S. Secret Service; the FBI’s Jackson Field Office; the Mississippi Department of Corrections; and local law enforcement agencies across multiple states are investigating the case. The Tupelo Police Department, Marshall County Sheriff's Department, Benton County Sheriff's Department and Tippah County Sheriff's Department provided valuable assistance.
Trial Attorneys Brendan Woods, Christopher Taylor and Conor Mulroe of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Samuel Stringfellow for the Northern District of Mississippi are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
20 Members of a Violent Gang Charged with Drug Trafficking and Firearms Violations in Vega Alta, Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On March 3, 2022, a federal grand jury in the District of Puerto Rico returned an indictment charging 20 violent gang members from the municipality of Vega Alta with conspiracy to possess with intent to distribute and possession with intent to distribute controlled substances, as well as firearms violations, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation (FBI), and the Puerto Rico Police Bureau (PRPB), Bayamón Strike Force, led the investigation, with assistance from the United States Marshals Service, Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), and the Drug Enforcement Administration (DEA).
“Today’s arrests reflect the unwavering commitment of the U.S. Department of Justice and its law enforcement partners to investigate and prosecute those who fuel violence in our streets through their illegal drug trafficking activities” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico.
The indictment alleges that from 2018, until the date of the return of the indictment, the drug trafficking organization distributed cocaine base (commonly known as “crack”), heroin, cocaine, marihuana, Oxycodone (Percocet), and Alprazolam (Xanax) within 1,000 feet of Las Violetas and El Batey Public Housing Projects, and the Sabana Hoyos Ward, and also within 1,000 feet of a real property comprising a public or private school and/or playground. The object of the conspiracy was the large-scale distribution of controlled substances in Vega Alta for significant financial gain and profit.
The 20 defendants acted in different roles to further the goals of their organization, including as leaders, enforcers, runners, sellers, lookouts and facilitators. Eight of the defendants are facing one charge of possession of firearms in furtherance of a drug trafficking crime. All the defendants are facing a narcotics forfeiture allegation of $6,451,375.
As part of the conspiracy, the drug trafficking organization would import wholesale quantities of narcotics from the Dominican Republic, and other places, into Puerto Rico, to distribute in street- quantity amounts at their drug distribution points. The defendants and their co-conspirators established a drug distribution point that would move within different areas inside the public housing projects to avoid police detection. Some of the co-conspirators used different types of barriers and diversionary devices to avoid law enforcement detection, including fences, altered public housing amenities, dogs, and barbed wire.
Members of the organization would steal cars and use them to further their drug trafficking activities. Some members of the organization belonged to a musical group called “Los Piratas.” They would draw graffiti resembling this group near the drug points that belonged to the organization.
The members of the gang used force, violence, and intimidation to maintain control of the areas in which they operated. They often abducted and assaulted rival drug traffickers, as well as members of their own drug trafficking organization, to intimidate and maintain control of the drug trafficking operation. Some of the members of this organization marked themselves with a tattoo with the letters LSR, which stands for the phrase “Lealtad Sin Rango” (Loyalty with no rank). This tattoo symbolized loyalty among the members of the organization.
The defendants charged are:
Marcos Pagán-Rodríguez, a.k.a. “Papin”
Miguel Santana-Avilés, a.k.a. “Macho/Machito”
John Morales-Rodríguez, a.k.a. “Gordo”
Michael Nieves-Lacend, a.k.a. “Pinto”
Christian Sifonte-Ramos, a.k.a. “Peluche”
Joseph Israel-Ramos, a.k.a. “Mena”
Alex Jomar Negrón-García
Said David Adorno-Martínez, a.k.a. “Saiid”
Raymond Santana-Avilés
William Rodríguez-Reyes, a.k.a. “Willy”
Juan Lozada-González, a.k.a. “Picu”
Luis Alfonso-Cabrera, a.k.a. “Javi”
José Rosado-Vega, a.k.a. “Manos Mongas”
José Negrón-Rodríguez, a.k.a. “Pepo”
David Rodríguez-Reyes
Steven Pacheco-Melecio
Josué Rosado-Rivera, a.k.a. “Cano/Patineta”
Ismael Figueroa-Maldonado, a.k.a. “Capo”
Gabriel Aguayo-Santana, a.k.a. “Gaby”
Mizrain López-Feliciano, a.k.a. “Mizra/Flaco”
Assistant U.S. Attorney and Chief of the Gang Section Alberto López-Rocafort, Deputy Chief of the Gang Section, AUSA Tereza Zapata-Valladares, AUSA Pedro Casablanca, and Special AUSA Cristina Caraballo are in charge of the prosecution of the case. If convicted on the drug charges, the defendants face a mandatory minimum sentence of 10 years, and up to life in prison. If convicted of both the drug and firearms charges, the defendants face a mandatory minimum sentence of 15 years, and up to life in prison.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Thursday 3 March 2022
Young man pleads guilty after crashing into patrol unitRead the Press Release
BROWNSVILLE, Texas – An 18 year-old Mexican man illegally residing in Brownsville has entered a plea of guilty to transporting illegal aliens within the United States, announced U.S. Attorney Jennifer B. Lowery.
Christopher Rodriguez-Martinez admitted his guilty today.
On Dec. 7, 2021, authorities observed Rodriguez-Martinez and Guillermo Villasenor-Sanchez in a silver vehicle near the Los Fresnos canal. Soon after, they saw six individuals run from the canal and get into the vehicle.
Rodriguez-Martinez was the driver and fled the area at a high rate of speed. As law enforcement approached the vehicle, Rodriguez-Martinez lost control and made impact with the Border Patrol (BP) unit.
After the crash, the occupants of the vehicle attempted to run away. Authorities soon apprehended them.
Upon the arrests, authorities located a total of $30,000 in cash along with several cell phones in the vehicle.
Villasenor-Sanchez, 31, Matamoros, Mexico, had previously pleaded guilty and is set for sentencing May 4. Rodriguez-Martinez is set to be sentenced May 25.
At that time, each face up to 10 years in federal prison and a possible $250,000 maximum fine.
Both remain in custody pending their hearings.
Customs and Border Protection and Border Patrol conducted the investigation. Assistant U.S. Attorney Ana C. Cano is prosecuting the case.
York County Couple Indicted on Child Exploitation ChargesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 2, 2022, Wyatt Jones, age 26 and Marisel Toro, age 21, of York, Pennsylvania, were indicted by a federal grand jury for child exploitation offenses.
According to U.S. Attorney John C. Gurganus, the indictment charges Jones and Toro with conspiracy to produce child pornography, production of child pornography, distribution of child pornography, and possession of child pornography. The indictment alleges that Jones and Toro committed the offenses between October 2020 and April 2021.
The case was investigated by the Federal Bureau of Investigation, the York City Police Department, and the United States Probation Office. Assistant United States Attorney Paul J. Miovas, Jr. is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab.
If convicted, the maximum penalty under federal law for the offenses charged in the indictment is life imprisonment, a lifetime term of supervised release following imprisonment, and a fine. There is also a mandatory minimum sentence of 15 years’ imprisonment for the defendants if convicted of production of child pornography. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
# # #
Woman Sentenced for Embezzling $429,732 from her Small Business EmployerRead the Press Release
A woman was sentenced Wednesday in federal court for stealing $429, 732 from a veteran-owned small business in operation for 38 years, announced U.S. Attorney Clint Johnson.
U.S. District Judge Gregory K. Frizzell sentenced Carol A. Broyles, 49, of Tulsa, to 27 months in federal prison followed by three years of supervised release. She was further ordered to pay $429,732 in restitution to the business owners.
“Carol Broyles embezzled almost $430,000 from her employers, who treated her like family,” said U.S. Attorney Clint Johnson. “She repaid them by violating their trust and gambling away their hard-earned profits. She will now spend more than two years in prison to account for her corrupt actions.”
“Ms. Broyles’ theft has negatively affected multiple people for the rest of their lives,” said Special Agent in Charge Christopher J. Altemus Jr., Dallas Field Office. “Her greed has destroyed a business and the owners who trusted her to help protect it. This sentencing should give her time to consider her actions and detour criminals from committing similar crimes.”
Broyles pleaded guilty on Nov. 3, 2021, to wire fraud and to subscribing to a false tax return. She admitted that while employed at a small business in Tulsa from January 2012, through October 2016, she devised a scheme to misappropriate the businesses’ funds to enrich herself and to pay for personal expenses. She used her access to the company’s cash collections to take funds, and she cashed several checks from the company’s account.
Broyles further admitted that she did not report the misappropriated funds on her 2015 tax form. Boyles knowingly failed to report $86,081 in stolen funds, and signed the form under penalty of perjury.
At sentencing, the victims described the financial devastation incurred because of Broyles’ criminal acts. Additionally, Assistant U.S. Attorney Reagan Reininger pointed to Broyles’ lack of personal accountability. She noted that Broyles claimed to have stolen the money to pay for expensive family medical bills, but instead Broyles spent nearly all the money gambling. She further noted that since Broyles became aware of the criminal investigation and throughout criminal proceedings, Broyles made little to no effort to make any restitution to the victims.
IRS-Criminal Investigation and the FBI conducted the investigation. Assistant U.S. Attorney Reagan V. Reininger prosecuted the case.
Woman Facing Federal Charges for Filing and Receiving Social Security Benefits Under Two Social Security NumbersRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Dinorah De Denis, age 72, of Frederick, Maryland, for the federal charges of theft of government property and social security fraud.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division; and Lead Investigator Pam Shank of the Office of Inspector General, Maryland Department of Human Services.
According to the two-count indictment, De Denis allegedly obtained two social security numbers and did not report to the Social Security Administration or the State of Maryland that she was receiving widows insurance benefits (WIB) payments under another social security number. Allegedly, she received supplemental security income (SSI) Medicaid and Food Supplement benefits through the State of Maryland under her first social security number when she applied for and was awarded SSA WIB under the other social security number. As a result, De Denis received $89,085 in benefits to which she was not entitled.
As alleged in the indictment, De Denis applied for her first social security number in 1973 under her birth name, Dinorah Cepeda Ulloa, on May 7, 1973. After De Denis married her husband later that year, De Denis obtained a second social security number under her married surname “De Denis”. The indictment alleges that De Denis applied for SSI in 2005 and was awarded SSI in 2006 under her first social security number and then applied for WIB after her husband died in 2012 under her second social security number and was awarded monthly payments thereafter. According to the indictment, De Denis did not disclose to the Social Security Administration that she was receiving WIB under another social security number, which would have disqualified her from receiving SSI.
Further, the indictment alleges that on September 28, 2017, during an interview with Social Security Administration representatives regarding her continued eligibility for supplemental security income under her first social security number, De Denis allegedly falsely stated that she was currently married to her husband and that they had been separated since 1984. Allegedly, De Denis also stated that her husband lived in Puerto Rico and that she was not aware of his whereabouts, despite the fact that she had applied for widows insurance benefits upon his death in 2012.
If convicted, De Denis faces a maximum sentence of 10 years in federal prison for theft of government property and 5 years in federal prison for social security fraud. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the SSA-OIG and the Maryland Department of Human Services Office of Inspector General for their work in the investigation. Mr. Barron thanked Special Assistant U.S. Attorney Michael Davio, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
# # #
Whitefish man sentenced to six years in prison for defrauding Montana investor of $2.3 million in scheme to fund fake CIA rescue missionsRead the Press Release
MISSOULA — A Whitefish man who admitted to defrauding a Montana investor of $2.3 million by falsely claiming to be a former Force Recon Marine and CIA operative who needed funds to run fake CIA rescue missions in foreign countries but instead used the money for personal gain was sentenced today to six years in prison, followed by three years of supervised release, U.S. Attorney Leif M. Johnson said.
Matthew Anthony Marshall, 51, pleaded guilty in November 2021 to wire fraud, money laundering and tax evasion.
U.S. District Judge Donald W. Molloy presided. Judge Molloy also ordered a total of $3,254,327 restitution, with $2,355,000 to be paid to the victim, identified as John Doe, and $899,327 to be paid to the IRS. Judge Molloy accepted a plea agreement in the case and dismissed eight other counts. Marshall was allowed to self-surrender to the Bureau of Prisons.
“Marshall promoted a fantasy world filled with fake missions carried out by fictitious operatives for clandestine agencies in faraway lands for phony purposes. It was all fake, but unfortunately it was paid for with real money from a real victim. And the money never went anywhere except to Marshall’s personal accounts,” U.S. Attorney Johnson said. “The lengths to which Marshall went to carry off this fraud can hardly be overstated. He used a phone application to send fake text messages; he created false emails; he sent the victim prayer beads collected during a fake mission; and he got a tattoo to falsely signify that he was a member of ‘Force Recon,’ etc. The list goes on. I want to thank Assistant U.S. Attorneys Tim Racicot and Ryan Weldon, Trial Attorney S. Derek Shugert, National Security Division, U.S. Department of Justice, and the federal agents who poured countless hours into uncovering this scheme and bringing Marshall to justice,” U.S. Attorney Johnson added.
“Mr. Marshall devised an elaborate scheme layered in lies to defraud the victim,” said Special Agent in Charge Dennis Rice of the Salt Lake City FBI. “Like most fraud cases, Mr. Marshall’s motive was simply greed. The FBI's Salt Lake City Field Office would like to acknowledge the many special agents across the country, the intelligence community, and witnesses, who worked together to hold this accomplished fraudster and manipulator accountable and seek justice for the victim.”
“Tax evasion and fraud of this magnitude and with this degree of dishonesty and deceit, deserves to be punished. I applaud the investigative efforts of our agents and federal law enforcement partners in uncovering this elaborate scheme and bringing Mr. Marshall to justice,” said Andy Tsui, IRS Criminal Investigation Special Agent in Charge, Denver Field Office. “Today’s sentencing serves as a reminder to others that operating outside of the law and failing to pay taxes on income gained through legal or illegal means has severe consequences.”
In court documents, the government alleged that in Spring 2013, Marshall began working for John Doe. In a scheme that involved numerous lies, fake emails and phony texts, Marshall convinced John Doe that he was a former CIA operative and a former member of an elite Force Reconnaissance unit in the U.S. Marine Corps who had engaged in covert missions around the world.
Marshall asked John Doe if he would fund “off the books” CIA-backed rescue missions, which Marshall said would involve assault teams he would lead in foreign countries. Based on Marshall’s false representations, John Doe wired Marshall a series of payments, totaling about $2,355,000, from 2013 to 2016, all under the guise of funding five missions for the CIA as described by Marshall.
As part of the scheme, Marshall forwarded John Doe fake text messages, allegedly from Cofer Black, a former CIA officer who was the director of the CIA Counterterrorist Center, lauding his success. To further the myth that he worked for the CIA under Cofer Black, Marshall obtained fake phone numbers using a phone application, called Burner, and logged two numbers with Virginia area codes into his account as being affiliated with Cofer Black. He then sent himself fake messages, purportedly from Cofer Black. Cofer Black has never been associated with either Virginia number Marshall used with the Burner app and does not know Marshall.
In fact, Marshall was never affiliated with the CIA in any capacity and never served in an elite Force Reconnaissance unit in the Marine Corps. Marshall received an Other Than Honorable discharge from the Marine Corps Reserve in November 1999.
Marshall did not use John Doe’s money for any missions. Rather, Marshall spent the money on personal expenses and loans and gifts to friends and family members. Marshall also failed to report money received from John Doe in 2013 for two purported missions as income on his tax return, resulting in a tax evasion of $356,756.
Assistant U.S. Attorneys Timothy J. Racicot and Ryan G. Weldon and Trial Attorney S. Derek Shugert, National Security Division, U.S. Department of Justice, prosecuted the case, which was investigated by the IRS Criminal Investigation and FBI.
Note: Click to view
Marshall Sentencing MemoPACER case reference. 20-32
XXX
Watauga Man Indicted for LarcenyRead the Press Release
United States Attorney Dennis Holmes announced that a Watauga, South Dakota, man has been indicted by a federal grand jury for Larceny.
Arlen Eugene Kern, age 57, was indicted on December 14, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 1, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to five years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between April 2018 and June 2020, in McIntosh, South Dakota, Kern stole over $1,000 in United States currency and tangible goods from his place of employment.
The charge is merely an accusation and Kern is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Corson County Sheriff’s Office. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Kern was released on bond pending trial. A trial date has not been set.
Wakpala Man Charged with Embezzlement and Theft from Indian Tribal OrganizationsRead the Press Release
United States Attorney Dennis R. Holmes announced that a Wakpala, South Dakota, man has been indicted by a federal grand jury for Embezzlement and Theft from an Indian Tribal Organization.
Joshua Iron Cloud, Sr., age 38, was indicted on September 8, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 23, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to five years in prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between March and May 2020, Iron Cloud embezzled, stole, and converted more than $1,000 of monies, funds, and credits belonging to Oyate Community Development Corporation of the Standing Rock Sioux Tribe, an Indian Tribal Organization. It is alleged that Iron Cloud used those monies on personal items and expenditures.
The charge is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the U.S. Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the U.S. Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
The investigation is being conducted by the U.S. Attorney’s Office and Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy Jehangiri is prosecuting the case.
Iron Cloud was released on bond pending trial. A trial date has not been set.
United States Files Enforcement Action to Stop Deceptive Marketing of Herbal Tea Product Advertised as Covid-19 TreatmentRead the Press Release
UPDATE
The Complaint described in the press release below was dismissed by the Court on March 18, 2025, pursuant to a stipulation of voluntary dismissal entered into by the parties. See No. 22-CV-1159 (ENV), ECF No. 71.
BROOKLYN, NY – The United States Attorney’s Office for the Eastern District of New York and the Department of Justice, Consumer Protection Branch, together with the Federal Trade Commission (FTC) and the Food and Drug Administration (FDA), today announced a civil enforcement action against defendants B4B Earth Tea LLC, B4B Corp., and Andrew Martin Sinclair for alleged violations of the COVID-19 Consumer Protection Act, the Federal Trade Commission Act, and the Federal Food, Drug, and Cosmetic Act.
According to a complaint filed in federal court in Brooklyn, the defendants advertised that their herbal tea product, Earth Tea, could prevent or treat COVID-19. For example, the defendants allegedly advertised on social media that Earth Tea is the “most effective [t]reatment against” COVID-19, that it “works within minutes” and will enable consumers to “get out of quarantine within 24 hours guaranteed.” The defendants had no competent or reliable scientific evidence to support those claims. Further, the defendants allegedly made deceptive statements about a purported scientific study to bolster their unproven COVID-19 claims. The complaint also alleges that Earth Tea is an unapproved new drug that the defendants are selling in violation of the Federal Food, Drug, and Cosmetic Act. The complaint seeks civil penalties, as well as a permanent injunction to stop the defendants from continuing their unlawful marketing and sales of Earth Tea.
The COVID-19 Consumer Protection Act, passed by Congress in December 2020, prohibits deceptive acts or practices associated with the treatment, cure, prevention, mitigation, or diagnosis of COVID-19. Persons who violate the COVID-19 Consumer Protection Act may be subject to civil penalties, injunctive relief, and other remedies available under the FTC Act. The complaint also alleges violations of the FTC Act, which prohibits unfair and deceptive conduct and false advertising.
The Federal Food, Drug, and Cosmetic Act provides that a product is an unapproved new drug if it is intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in humans but is not generally recognized as safe and effective for its intended uses and is not the subject of an FDA approval. Remedies for violation of the Federal Food, Drug, and Cosmetic Act include injunctive relief.
“COVID-19 has tragically claimed nearly one million lives in this country and close to six million lives worldwide,” stated United States Attorney Breon Peace. “Unfortunately, there are too many people who are taking advantage of this crisis by pushing alleged treatment products that are nothing more than snake oil. We will not tolerate attempts to make a dishonest dollar while putting our communities at risk during a pandemic.”
“The Department of Justice will not tolerate individuals or companies seeking to profit from the COVID-19 public health emergency by unlawfully advertising unproven products,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “The department is committed to protecting consumers and enforcing the COVID-19 Consumer Protection Act and the FDCA against those who unlawfully market unproven COVID-19 treatments.”
“Products like this may delay patients from seeking proven treatments from their health care provider. Preying on patients’ vulnerabilities during the COVID-19 pandemic is unacceptable,” stated Judy McMeekin, Pharm.D., FDA’s Associate Commissioner for Regulatory Affairs. “The FDA will continue to actively monitor the U.S. market for any companies or individuals falsely marketing products with claims it prevents or treats COVID-19, and will take actions against those who violate the law and endanger patients.”
“Without any scientific evidence, the defendants claimed that drinking their herbal tea is more effective in preventing COVID-19 than approved vaccines, and cures anyone who has gotten ill within 24 hours,” stated Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “In bringing this matter with our partners at the Department of Justice and the Food and Drug Administration, the Commission continues its commitment to using every tool available to stop and deter those who would treat the pandemic as opportunity to peddle bogus treatments.”
This matter is being handled by Assistant U.S. Attorney Michael Blume of the U.S. Attorney’s Office for the Eastern District of New York, Senior Trial Attorney James T. Nelson and Trial Attorney Zachary A. Dietert of the Civil Division’s Consumer Protection Branch. Robert Van Someren Greve represents the FTC, and Michael Shane represents the FDA.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit its website at https://www.FTC.gov.
The United States Attorney’s Office for the Eastern District of New York recently announced a Consumer Protection Team in the Office’s Civil Division at https://www.justice.gov/usao-edny/pr/united-states-attorney-breon-peace-announces-formation-consumer-protection-team-office. The Consumer Protection Team will pursue all appropriate measures to stop culpable entities and individuals that engage in conduct threatening the health, safety, economic security, or dignity of potentially vulnerable individuals. For more information on the U.S. Attorney’s Office, or to report suspected consumer fraud, please visit https://www.justice.gov/usao-edny.
The Defendants:
B4B Earth Tea LLC
B4B Corp.
Andrew Martin Sinclair
E.D.N.Y. Docket No. 22-CV-1159
Two Men Sentenced to Prison for Roles in $4.3 Million Fraud and Money Laundering SchemeRead the Press Release
CHARLESTON, W.Va. – James Pinson, 46, of Wayne County, and Frank Russo, 69, of North Carolina, were sentenced today for their roles in defrauding Toyota of over $4.3 million in connection with a Toyota Customer Support Program. Both men also will be required to pay restitution of up to $4.3 million to Toyota.
Pinson was sentenced to six years in federal prison. A federal jury convicted Pinson in December 2021 of three counts of wire fraud, six counts of mail fraud, one count of aggravated identity theft, and two counts of conspiring to commit money laundering. Pinson was the owner of Big Blue Motor Sales, a Kentucky used car dealership. Evidence at trial revealed that to carry out his scheme, Pinson bought Toyota trucks at wholesale prices at auction, obtained hundreds of copies of Kentucky and West Virginia residents’ driver’s licenses, fraudulently titled the trucks in the name of those residents, and fraudulently induced Toyota to repurchase the trucks at 150% of their retail value. Toyota issued 350 checks in the names of individual false owners between 2013 and 2015. Pinson forged signatures on all 350 checks and deposited them into his bank account. Pinson then used the money from this fraud scheme to buy more Toyota trucks at wholesale to run through the scheme. He also paid cash bribes to Frank Russo and Stanley Clark. Earlier this week, Clark was sentenced to one year and three months in prison. Pinson further used the criminally-derived money from the fraud scheme to purchase a beach house in Pawley’s Island, South Carolina.
Russo was sentenced to two years in federal prison for wire fraud. Russo pleaded guilty to the charge in July 2020. Russo was employed as service manager by a Toyota dealership in Kanawha County. Russo admitted that he participated in the fraud scheme by ensuring that vehicles brought to the Toyota dealership qualified for the extended warranty extension program. Russo admitted that he sent false ownership information to Toyota by electronic wire in furtherance of the scheme. Russo admitted that he received bribes or kickbacks from Big Blue Motor Sales for his participation in the scheme.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Postal Inspection Service, the Federal Bureau of Investigation, the West Virginia State Police and the West Virginia Office of the Insurance Commissioner.
United States District Judge Joseph R. Goodwin imposed the sentences. Assistant United States Attorneys Steve Loew and Andrew Tessman handled the prosecution.
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 Nos. 2:19-CR-00250 and 2:19-cr-00222.
###
Two Men Sentenced to Federal Prison for Violently Robbing Suburban Chicago Jewelry StoreRead the Press Release
CHICAGO — A federal judge today sentenced two men to federal prison for stealing expensive watches and jewelry at gunpoint from a suburban Chicago store.
TOBIAS DIGGS, 28, of Chicago, and JOSHUA MCCLELLAN, 32, of Oak Lawn, Ill., robbed Razny Jewelers in Hinsdale, Ill., on the morning of March 17, 2017. More than $400,000 in merchandise was stolen during the heist, including watches by luxury brands Frederique Constant, Patek Phillipe, and Tudor. The defendants later sold, attempted to sell, or disposed of some of the stolen items in the Chicago area and Atlanta, Ga.
A federal jury in 2020 convicted Diggs and McClellan on robbery and firearm charges. U.S. District Judge Gary S. Feinerman today sentenced Diggs to eleven years in federal prison, and McClellan to eight years.
The sentences were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Angie Salazar, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations. Valuable assistance was provided by the Hinsdale Police Department, Oak Lawn Police Department, and the FBI Chicago Field Office’s Cellular Analysis Survey Team (CAST). Additional support was provided by the Felony Investigation Assistance Team (FIAT), a multi-jurisdictional law enforcement task force in the western suburbs of Chicago. The government was represented by Assistant U.S. Attorney Albert Berry III.
Two other individuals allegedly participated in the robbery. MARVON HAMBERLIN, of Chicago, was indicted and is a fugitive. A warrant has been issued for his arrest. The fourth individual has not been identified.
According to evidence presented at trial, the robbers planned in advance to rob Razny Jewelers. On the day of the heist, McClellan drove the getaway car – a Lexus sport-utility vehicle – while Diggs and the other robbers entered the store and pointed a gun at a female employee. After the unidentified robber tackled a store security guard, Diggs hit the female employee with the gun and dragged her by her hair to a back room, while he and the others gained accessed to the store’s safe and stole the jewelry.
Tulsa Man Sentenced to Life in Prison for Aggravated Sexual Abuse of a Child and Possession of Child PornographyRead the Press Release
A Tulsa man who repeatedly sexually abused a child under the age of 12 was sentenced Thursday in federal court, announced U.S. Attorney Clint Johnson.
Chief U.S. District Judge John F. Heil III sentenced Joshua David Slinkard, 41, to life in federal prison and a lifetime supervised release.
On Sept. 2, 2021, Slinkard pleaded guilty to two counts of aggravated sexual abuse of a minor in Indian Country and one count of possession of child pornography. Slinkard later tried to withdraw his plea, but his request was denied.
“The U.S. Attorney’s Office, FBI, and Tulsa Police Department are committed to seeking justice on behalf of children who have suffered at the hands of sexual predators like Joshua Slinkard. This life sentence serves as a reminder that such criminal behavior will not be tolerated,” said U.S. Attorney Clint Johnson.
“The FBI works tirelessly in collaboration with our federal, state, and local law enforcement partners to ensure child predators face justice for their unspeakable crimes,” said Edward J. Gray, Special Agent in Charge of the FBI Oklahoma City Field Office. “This sentencing reaffirms our unwavering commitment to protecting our most vulnerable citizens from abuse and exploitation.”
In a sentencing memorandum, Assistant U.S. Attorney Julie Childress called Slinkard a danger to all children. She stated that Slinkard’s criminal history exhibited “a predilection to sexually abuse children.” In addition to abusing the victim in this case, Slinkard also touched the victim’s eight-year-old friend inappropriately and was convicted in Mayes County for an offense that involved him touching a 5-year-old child. Childress further noted that Slinkard was found to be in possession of child pornography.
The abuse charged in this case occurred from Jan. 1, 2009, through Nov. 26, 2010. According to court documents, the victim was frequently left in Slinkard’s care. Slinkard sexually abused the victim and often called her derogatory names.
The defendant warned the victim not to tell anyone. When she did, he consistently attempted to discredit the child’s pleas for help. The child repeatedly reported the abuse to her mother and other family members, but she was not believed.
In 2011, the child finally disclosed the abuse to a school counselor after watching a school presentation about sexual abuse. The counselor contacted authorities, and Slinkard was arrested. Even after his arrest, Slinkard attempted to obstruct justice by writing a letter to the child’s mother pleading with her to convince the child to say she lied about the abuse.
During the investigation, law enforcement also found Slinkard to be in possession of video files containing the sexual abuse of children, including those of children who were younger than 12 years of age.
At the sentencing hearing, the victim, now an adult, emphasized that when a child discloses abuse, others need to listen to them and believe them. The victim further stated that although it has been difficult, she is striving to live a full life by working and taking college courses.
In 2011, Slinkard pleaded guilty to sexual abuse and child pornography charges in Tulsa County District Court, but the conviction was subsequently dismissed based on the Supreme Court’s decision in McGirt v Oklahoma. Because the crime occurred within the boundaries of the Muscogee Nation reservation and the defendant is an enrolled tribal citizen, the federal government prosecuted the case.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Julie A. Childress prosecuted the case.
Titusville Woman Pleads Guilty in Meth ConspiracyRead the Press Release
ERIE, Pa. - A resident of Titusville, Pennsylvania, pleaded guilty in federal court to a charge of violating federal drug laws, United States Attorney Cindy K. Chung announced today.
Kimberly Ann Gesin, 44, pleaded guilty to one count before United States District Judge Susan Paradise Baxter.
In connection with the guilty plea, the court was advised that from in and around June 2018, to on or about February 28, 2020, Gesin conspired with her co-defendants to distribute methamphetamine as they participated in a methamphetamine distribution network that trafficked methamphetamine from Akron, Ohio and Erie, Pennsylvania into Crawford, Venango and Warren Counties.
Judge Baxter scheduled sentencing for June 29, 2022 at 1:30 p.m. The law provides for a total sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Gesin on bond.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police, Troop E, Vice Unit, the Titusville Police Department, the Warren County Drug Task Force, the Warren County Sherriff’s Office and the Crawford County Sherriff’s Office conducted the investigation that led to the prosecution of Gesin.
Thirteen Individuals Indicted in Connection with Their Roles in Conspiracy to Traffic Firearms from Beckley to PhiladelphiaRead the Press Release
BECKLEY, W.Va. – United States Attorney Will Thompson and Special Agent in Charge Shawn Morrow, Louisville Field Division for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced today that a federal grand jury returned a 19-count indictment charging 13 individuals in connection with their roles in a conspiracy to traffic over 130 firearms from the Beckley area to Philadelphia, Pennsylvania. More than 30 of the firearms have been recovered in Philadelphia and have been connected to two homicides, crimes of domestic violence, and other violent crimes.
Charged with conspiracy to travel interstate with the intent to engage in dealing firearms without a license are:
Bisheem Jones, also known as “Bosh,” 36, of Philadelphia, Pennsylvania
Derrick Woodard, also known as “D,” 26, of Philadelphia, Pennsylvania
Shyheem Woodard-Smith, also known as “Peanut” and “Nut,” 22, of Philadelphia, Pennsylvania
Hassan Abdullah, also known as “San,” 27, of Philadelphia, Pennsylvania
Denise Johnson, 24, of Beckley, West Virginia
Shakyrah Ross, 23, of Beckley, West Virginia
Tyana Bly, also known as “Biggie,” 22, of Beckley, West Virginia
Stephanie Cohernour, 32, of Fayetteville, West Virginia
Maurice Johnson, 35, of Mount Hope, West Virginia
Arileah Lacy, also known as “Leah,” 23, of Beckley, West Virginia
Terri Lawhorn, 27, of Oak Hill, West Virginia
Lakeshia Nicole Simon, 22, of Beckley, West Virginia
Donte Webster, 22, of Beckley West Virginia
According to the indictment, from approximately June 2020 to July 2021, Jones, Woodard, Woodard-Smith, and Abdullah recruited individuals to straw purchase firearms on their behalf. The indictment further alleges that Jones caused the straw purchases to be conducted to obtain firearms for himself, Woodard, Woodard-Smith and Abdullah without there being a record that they were the actual buyers. As part of the conspiracy, Jones, Woodard, Woodard-Smith and Abdullah traveled from Philadelphia to the Beckley area to acquire firearms for the purpose of reselling them for profit in Philadelphia and often accompanied the straw purchasers to various gun stores. Jones, Woodard, Woodard-Smith and Abdullah are also charged with travelling interstate with the intent to engage in the business of dealing in firearms without a license.
Defendants Bly, Cohernour, Maurice Johnson, Lacy, Lawhorn, Simon and Webster are charged with providing false information during the acquisition of firearms at various gun stores in the Beckley area. The indictment alleges that these defendants made false statements on ATF Form 4473 certifying that they were the buyers of the firearms when they knew they were actually purchasing the firearms for others.
The indictment alleges that during the scheme straw purchasers bought over 130 firearms in or near Beckley and delivered them to others in the conspiracy for transfer to Philadelphia.
The indictment also charges Jones with being a felon in possession of a firearm, alleging that he possessed a Ruger, Model-LC9S, 9-mm pistol on March 11, 2021. Jones is prohibited from possessing a firearm as a result of a 2010 felony conviction for robbery in Pennsylvania.
“The gun trafficking pipeline through which these defendants were supplying crime guns to Philadelphia has been shut down as a result of this investigation,” said United States Attorney Will Thompson. “We will continue to work with ATF and our state and local law enforcement partners to investigate and prosecute gun traffickers and straw purchasers that put guns in the wrong hands and fuel violence in our cities.”
“One of the ways we accomplish our mission is by identifying sources of crime guns and those who illegally supply firearms used to commit acts of violence,” said ATF Special Agent in Charge Shawn Morrow of the Louisville Division. “Along with our law enforcement partners, we disrupt and dismantle illegal supply networks to keep firearms from being trafficked to places where they are used to harm our communities. Firearms trafficking is not a victimless crime. It is illegal and it puts firearms into the hands of prohibited persons and criminals who often use them to commit acts of violence. No community is immune to gun violence. What’s happening in one community impacts others, and today highlights how West Virginia law enforcement is working together to protect our communities and our neighbors.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation with assistance from the Philadelphia Field Division of the ATF, the U.S. Attorney’s Office, Eastern District of Pennsylvania, the Philadelphia District Attorney’s Office, the Internal Revenue Service – Criminal Investigations, the Fayette County Sheriff’s Office, the Oak Hill Police Department, the Raleigh County Sheriff’s Office, the Beckley Police Department, the Charleston Police Department, the Philadelphia Police Department and the West Virginia Fusion Center.
Assistant U.S. Attorney Negar M. Kordestani is handling the prosecution.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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-00046.
###
The Pennsylvania State University Agrees to Pay $899,824.55 to Settle A Voluntary Disclosure Related to the Penn State Psychological ClinicRead the Press Release
HARRISBURG, PA —The United States Attorney’s Office for the Middle District of Pennsylvania announced that Penn State has agreed to pay $899,824.55 to resolve allegations of civil liability for the submission of claims by the Penn State Psychological Clinic in State College, PA, to Medicare, TRICARE and Medicaid between February 1, 2015 and July 31, 2020 for behavioral health and Evaluation & Management services that violated Medicare rules and regulations.
According to U.S. Attorney John C. Gurganus, Penn State, through the Clinic, is alleged to have submitted improper claims related to behavioral health services with respect to the supervision of doctoral students, “incident-to” billing requirements, and/or the credentialing of licensed practitioners for Medicare participation. Additionally, the Clinic is alleged to have submitted claims for Evaluation & Management services that were not supported by the medical record. After discovering the problems, Penn State took prompt corrective action and disclosed the matter to the United States Attorney’s Office. Restitution is $599,883.03 of the settlement amount.
This matter was handled by the Department of Health and Human Services (HHS), Office of Counsel to the Inspector General (OCIG), the Defense Health Agency (DHA), acting on behalf of the TRICARE program, and Assistant U.S. Attorney Tamara Haken of the Affirmative Civil Enforcement Unit of the U.S. Attorney’s Office for the Middle District of Pennsylvania.
###
Texan admits guilt to multiple charges under Project Safe ChildhoodRead the Press Release
LAREDO, Texas – A 30-year-old Laredo resident has pleaded guilty to receiving and possessing child pornography, announced U.S. Attorney Jennifer B. Lowery.
The investigation began after authorities linked David De Los Santos to child exploitative materials in the internet.
Law enforcement conducted a search of his residence in Laredo and seized numerous digital devices. A forensic analysis revealed 832 image and video files depicting children engaged in sexually explicit conduct. According to court documents, the files included children under the age of 5 and images involving elements of bondage or bestiality.
Today, he admitted to receiving and possessing pornographic images, but challenged the content of those items.
U.S. District Judge Diana Saldaña will consider all factors and impose sentencing on a later date. At that time, De Los Santos faces a up to 20 years in federal prison and a possible $250,000 maximum fine.
He has been and will remain in custody pending sentencing.
Homeland Security Investigations conducted the investigation with the assistance of the Royal Canadian Mounted Police and the Laredo Police Department.
Assistant U.S. Attorney Aaron Petters is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
TV Producer for Russian Oligarch Charged with Violating Crimea-Related SanctionsRead the Press Release
A federal court in the Southern District of New York today unsealed the first-ever criminal indictment charging a violation of U.S. sanctions arising from the 2014 Russian undermining of democratic processes and institutions in Ukraine.
According to court documents, John Hanick, aka Jack Hanick, 71, a U.S. citizen, is charged with violations of U.S. sanctions and false statements in connection with his years-long work for the sanctioned Russian oligarch Konstantin Malofeyev.
“The Justice Department will do everything it can to stamp out Russian aggression and interference,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “As alleged in the indictment, the Russian oligarch Konstantin Malofeyev was previously sanctioned for threatening Ukraine and providing financial support to the Donetsk separatist region. The defendant Hanick knowingly chose to help Malofeyev spread his destabilizing messages by establishing, or attempting to establish, TV networks in Russia, Bulgaria and Greece, in violation of those sanctions.”
“Konstantin Malofeyev is closely tied to Russian aggression in Ukraine, having been determined by OFAC to have been one of the main sources of financing for the promotion of Russia-aligned separatist groups operating in the sovereign nation of Ukraine,” said U.S. Attorney Damien Williams for the Southern District of New York. “The U.S. sanctions on Malofeyev prohibit U.S. citizens from working for or doing business with Malofeyev but as alleged, Hanick violated those sanctions by working directly for Malofeyev on multiple television projects over the course of several years. The indictment unsealed today shows this office’s commitment to the enforcement of laws intended to hamstring those who would use their wealth to undermine fundamental democratic processes. This office will continue to be a leader in the Justice Department’s work to hold accountable actors who would support flagrant and unjustified acts of war.”
“Sanctions imposed by the U.S. government are in place to protect our national interests, as well as the interests of our allies around the world,” said Assistant Director in Charge of the FBI’s New York Field Office. “As alleged, Mr. Hanick worked for the benefit of Konstantin Malofeyev, a Specially Designated National under Executive Order 13,660 who provided significant financing for Russians promoting separatism in Crimea in 2014. The action we have taken today should serve as an example to all that we will use all the resources at our disposal to aggressively enforce our nation's sanctions.”
According to court documents, in 2014 the President issued Executive Order 13,660, which declared a national emergency with respect to the situation in Ukraine. To address this national emergency, the President blocked all property and interest in property that came within the United States or the possession or control of any U.S. person, of individuals determined by the Secretary of the Treasury to be responsible for or complicit in, or who engaged in, actions or policies that threatened the peace, security, stability, sovereignty, or territorial integrity of Ukraine, or who materially assist, sponsor, or provide financial, material, or technological support for, or goods and services to, individuals or entities engaging in such activities. Executive Order 13,660, along with certain regulations issued pursuant to it (the Ukraine-Related Sanctions Regulations) prohibits, among other things, making or receiving any funds, goods, or services by, to, from, or for the benefit of any person whose property and interests in property are blocked.
On Dec. 19, 2014, OFAC designated Konstantin Malofeyev as a Specially Designated National (SDN) pursuant to Executive Order 13,660. OFAC’s designation of Malofeyev explained that he was one of the main sources of financing for Russians promoting separatism in Crimea, and materially assisted, sponsored, and provided financial, material or technological support for, or goods and services to or in support of the so-called Donetsk People’s Republic, a separatist organization in the Ukrainian region of Donetsk.
As alleged in the indictment, Hanick worked directly for and for the benefit of Malofeyev from at least in or about 2013 through at least in or about 2017, and continued to engage in this conduct after OFAC listed Malofeyev as a SDN, in violation of the Ukraine-Related Sanctions Regulations. Beginning in at least 2013, Malofeyev began planning to create a new Russian cable television news network (the Russian TV Network), and Hanick began traveling to Russian in early 2013 to meet with Malofeyev regarding these plans. In or about July 2013, Hanick moved to Russia to work for Malofeyev on the Russian television network, after negotiating the terms of his employment directly with Malofeyev, including the salary he would receive, payment for his housing in Moscow, and his Russian work visa.
Hanick continued to work for and report directly to Malofeyev after OFAC designated Malofeyev as a SDN in December 2014. For instance, in January 2015, Hanick wrote an email to Malofeyev that a draft policy for the Russian TV Network was meant “to implement your vision and to provide you with information for you to make decisions … You are the founder and chief architect of the project. We, as board members have the responsibility to direct the staff to implement your instructions.” The Russian TV Network went on the air in Russia in or about April 2015. Hanick played a leadership role at the network, described at various times in emails from 2015 through 2017 as “Board Chairman,” “General Producer,” “chairman of the HR committee,” and “General Advisor” for the Russian TV Network. Hanick reported directly to Malofeyev regarding the network’s operations and was listed on organizational charts directly below Malofeyev. Hanick was paid for his work through two Russian entities that were nominally separate from the Russian TV Network, but his compensation was overseen by Malofeyev, negotiated with Malofeyev, and was for his work for Malofeyev’s Russian TV Network. Hanick wired a portion of the payments he received from a Russian bank account to a bank account he held at a bank located in New York, New York.
Hanick also worked for Malofeyev on a project to establish and run a Greek television network and on efforts to acquire a Bulgarian television network. At Malofeyev’sdirection, Hanick traveled to Greece and to Bulgaria on multiple occasions in 2015 and 2016 to work on these initiatives, andreported directly back to Malofeyev on his work. For instance, in November 2015, Hanick wrote to Malofeyev that the Greek television network would be an “opportunity to detail Russia’s point of view on Greek TV.” In connection with Malofeyev’sefforts to acquire the Bulgarian television network, Hanick took steps to conceal Malofeyev’s role in the acquisition by arranging to travel to Bulgaria with another person identified by a Greek associate of Malofeyev, so that it would appear the buyer was a Greek national rather than Malofeyev.
In February 2021, FBI agents interviewed Hanick about his work for Malofeyev, and Hanick made false statements about his work for Malofeyev, including the false statements that Malofeyev had no involvement in Hanick’s travel to Bulgaria, and that Hanick did not know that Malofeyev had any connection to the attempt to acquire the Bulgarian television network until afterward.
Hanick is charged with violating the International Emergency Economic Powers Act, which carries a maximum penalty of 20 years in prison and making false statements which carries a maximum penalty of five years in prison. Pursuant to the request of the United States, Hanick was provisionally arrested on Feb. 3, in London, with a view toward extradition. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case.
Assistant U.S. Attorneys Thane Rehn and Jessica Greenwood for the Southern District of New York are prosecuting the case.
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.
TV Producer for Russian Oligarch Charged with Violating Crimea-Related SanctionsRead 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 Office of the Federal Bureau of Investigation, announced today the unsealing of the first-ever criminal indictment charging a violation of United States sanctions arising from the 2014 Russian undermining of democratic processes and institutions in Ukraine. JOHN HANICK, a/k/a “Jack Hanick,” a United States citizen, is charged with violations of United States sanctions and false statements in connection with his years-long work for the sanctioned Russian oligarch Konstantin Malofeyev. Pursuant to the request of the United States, HANICK was provisionally arrested on February 3, 2022, in London, the United Kingdom, with a view toward extradition.
U.S. Attorney Damian Williams said: “Konstantin Malofeyev is closely tied to Russian aggression in Ukraine, having been determined by OFAC to have been one of the main sources of financing for the promotion of Russia-aligned separatist groups operating in the sovereign nation of Ukraine. The United States sanctions on Malofeyev prohibit United States citizens from working for or doing business with Malofeyev but as alleged, Hanick violated those sanctions by working directly for Malofeyev on multiple television projects over the course of several years. The Indictment unsealed today shows this Office’s commitment to the enforcement of laws intended to hamstring those who would use their wealth to undermine fundamental democratic processes. This Office will continue to be a leader in the Justice Department’s work to hold accountable actors who would support flagrant and unjustified acts of war.”
“The Justice Department will do everything it can to stamp out Russian aggression and interference,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “As alleged in the indictment, the Russian oligarch Konstantin Malofeyev was previously sanctioned for threatening Ukraine and providing financial support to the Donetsk separatist region. The defendant Hanick knowingly chose to help Malofeyev spread his destabilizing messages by establishing, or attempting to establish, TV networks in Russia, Bulgaria, and Greece, in violation of those sanctions.”
FBI Assistant Director Michael J. Driscoll said: “Sanctions imposed by the United States government are in place to protect our national interests, as well as the interests of our allies around the world. As alleged, Mr. Hanick worked for the benefit of Konstantin Malofeyev, a Specially Designated National under Executive Order 13660 who provided significant financing for Russians promoting separatism in Crimea in 2014. The action we have taken today should serve as an example to all that we will use all the resources at our disposal to aggressively enforce our nation’s sanctions.”
According to the Indictment unsealed today in Manhattan federal court:[1]
In 2014, the President issued Executive Order 13,660, which declared a national emergency with respect to the situation in Ukraine. To address this national emergency, the President blocked all property and interest in property that came within the United States or the possession or control of any United States person, of individuals determined by the Secretary of the Treasury to be responsible for or complicit in, or who engaged in, actions or policies that threatened the peace, security, stability, sovereignty, or territorial integrity of Ukraine, or who materially assist, sponsor, or provide financial, material, or technological support for, or goods and services to, individuals or entities engaging in such activities. Executive Order 13,660, along with certain regulations issued pursuant to it (the “Ukraine-Related Sanctions Regulations”) prohibits, among other things, making or receiving any funds, goods, or services by, to, from, or for the benefit of any person whose property and interests in property are blocked.
On December 19, 2014, the Department of Treasury’s Office of Foreign Assets Control (“OFAC”) designated Konstantin Malofeyev as a Specially Designated National (“SDN”) pursuant to Executive Order 13,660. OFAC’s designation of Malofeyev explained that he was one of the main sources of financing for Russians promoting separatism in Crimea, and has materially assisted, sponsored, and provided financial, material, or technological support for, or goods and services to or in support of the so-called Donetsk People’s Republic, a separatist organization in the Ukrainian region of Donetsk.
As alleged in the Indictment, HANICK worked directly for and for the benefit of Malofeyev from at least in or about 2013 through at least in or about 2017, and continued to engage in this conduct after OFAC listed Malofeyev as a SDN, in violation of the Ukraine-Related Sanctions Regulations. Beginning in at least 2013, Malofeyev began planning to create a new Russian cable television news network (the “Russian TV Network”), and HANICK began traveling to Russian in early 2013 to meet with Malofeyev regarding these plans. In or about July 2013, HANICK moved to Russia to work for Malofeyev on the Russian television network, after negotiating the terms of his employment directly with Malofeyev, including the salary he would receive, payment for his housing in Moscow, and his Russian work visa.
HANICK continued to work for and report directly to Malofeyev after OFAC designated Malofeyev as a SDN in December 2014. For instance, in January 2015, HANICK wrote an email to Malofeyev that a draft policy for the Russian TV Network was meant “to implement your vision and to provide you with information for you to make decisions … You are the founder and chief architect of the project. We, as board members have the responsibility to direct the staff to implement your instructions.” The Russian TV Network went on the air in Russia in or about April 2015. HANICK played a leadership role at the network, described at various times in emails from 2015 through 2017 as “Board Chairman,” “General Producer,” “chairman of the HR committee,” and “General Advisor” for the Russian TV Network. HANICK reported directly to Malofeyev regarding the network’s operations and was listed on organizational charts directly below Malofeyev. HANICK was paid for his work through two Russian entities that were nominally separate from the Russian TV Network, but his compensation was overseen by Malofeyev, negotiated with Malofeyev, and was for his work for Malofeyev’s Russian TV Network. HANICK wired a portion of the payments he received from a Russian bank account to a bank account he held at a bank located in New York, New York.
HANICK also worked for Malofeyev on a project to establish and run a Greek television network and on efforts to acquire a Bulgarian television network. At Malofeyev’s direction, Hanick traveled to Greece and to Bulgaria on multiple occasions in 2015 and 2016 to work on these initiatives, and reported directly back to Malofeyev on his work. For instance, in November 2015, HANICK wrote to Malofeyev that the Greek television network would be an “opportunity to detail Russia’s point of view on Greek TV.” In connection with Malofeyev’s efforts to acquire the Bulgarian television network, HANICK took steps to conceal Malofeyev’s role in the acquisition by arranging to travel to Bulgaria with another person identified by a Greek associate of Malofeyev, so that it would appear the buyer was a Greek national rather than Malofeyev.
In February 2021, FBI agents interviewed HANICK about his work for Malofeyev, and HANICK made false statements about his work for Malofeyev, including the false statements that Malofeyev had no involvement in HANICK’s travel to Bulgaria, and that HANICK did not know that Malofeyev had any connection to the attempt to acquire the Bulgarian television network until afterward.
* * *
HANICK, 71, is a United States citizen who most recently has resided in London. The sanctions charge carries a maximum penalty of 20 years in prison. The false statements charge carries a maximum penalty of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
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.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation, and thanked the support and expertise of the Department of Justice’s Office of International Affairs in the conduct of this matter.
The prosecution is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Thane Rehn and Jessica Greenwood are in charge of the prosecution.
[1] The entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Stockton Man Indicted for Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Olyimpus Shaquille Pereira, 28, of Stockton, charging him with being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Nov. 16, 2021, following a lawful search, officers found a Sig Sauer .40‑caliber semi-automatic handgun in Pereira’s vehicle. Pereira has several prior felony convictions—including assault with a deadly weapon causing great bodily injury and two prior felon in possession of a firearm/ammunition convictions—which prohibit him from possessing a firearm.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives Violent Crimes Task Force, the U.S. Marshals Service Fugitive Task Force, and the Stockton Police Department. Assistant U.S. Attorney Alstyn Bennett is prosecuting the case.
If convicted, Pereira 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.
St. Louis man convicted during a November trial is sentenced to prisonRead the Press Release
ST. LOUIS –On November 2, 2021, a jury convicted Robert Harrison, 41, of St. Louis of one count of being a felon in possession of a firearm after a two-day trial. As a result of the jury verdict, United States District Judge John A. Ross sentenced Harrison to 84 months in federal prison on March 2, 2022.
According to court records, on January 8, 2020, Harrison crashed his vehicle into a retaining wall in front of a residence in the City of St. Louis. When officers responded, Harrison tossed a firearm from his waist band and attempted to kick it under the front of his vehicle without officers noticing. Harrison was previously convicted of a felony and prohibited from possessing a firearm.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Louis Metropolitan Police Department investigated the case. Assistant United States Attorneys Kourtney M. Bell and Rodney H. Holmes prosecuted the case.
Spencer Man Indicted on Child Pornography ChargesRead the Press Release
BOSTON – A Spencer man has been indicted by a federal grand jury in Worcester for possession of child pornography.
Joseph Michael Smith, 59, was indicted on one count of possession of child pornography. Smith will appear before U.S. District Court Magistrate Judge David H. Hennessy tomorrow, March 4, 2022, at 1 p.m. in federal court in Worcester.
According to court documents, investigators received several tips that child pornography was shared from messenger accounts tied to Smith’s address. During a search of Smith’s residence on Nov. 10, 2021, a USB drive was seized. Smith also informed agents that child pornography was located on a black laptop in his basement. A forensic analysis of the USB drive allegedly revealed 35 videos depicting children as young as two-years-old being sexually abused.
The charge of possession of child pornography provides for a sentence of up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations, Boston Field Division; and Spencer Police Chief David Darrin made the announcement today. Assistant U.S. Attorney Kristen Noto of Rollins’s Worcester Branch Office is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Southwest Virginia Man Sentenced for Role in Unemployment Benefits ScamRead the Press Release
ABINGDON, Va. – A Southwest Virginia man, who conspired with more than 30 others in a scheme to defraud the government of more than $499,000 in unemployment benefits, was sentenced this week to 30 months in federal prison.
George Levi Buckles, 32, pleaded guilty in October 2021 to one count of conspiracy to defraud the government, one count of conspiracy to commit mail fraud, and one count of making false statements.
According to court documents, Buckles conspired with Leelynn Danielle Chytka, Gregory Marcus Tackett, Jeffery Ryan Tackett, and others to commit fraud against the United States in connection with the filing of fraudulent claims for pandemic unemployment benefits.
Over the course of nine months, members of the conspiracy filed fraudulent claims with the Virginia Employment Commission on behalf of at least 37 individuals, with a total actual loss to the United States of at least $499,000. Chytka, the mastermind behind the scheme, was sentenced to nine years in prison, as were both Tacketts.
U.S. Attorney Christopher R. Kavanaugh of the Western District of Virginia; Syreeta Scott, Special Agent-in-Charge, Philadelphia Regional Office, U.S. Department of Labor - Office of Inspector General, Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service – Criminal Investigation Washington, D.C., Field Office made the announcement.
The Department of Labor - Office of the Inspector General, the Internal Revenue Service – Criminal Investigation Washington, D.C., Field Office, the Norton Police Department, and the Russell County Sheriff’s Office investigated the case.
Assistant United States Attorneys Daniel J. Murphy and Michael Baudinet prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
South Texas woman convicted for arranging smuggling attempt that led to deathRead the Press Release
VICTORIA, Texas – A 24-year-old Edinburg resident has entered a plea of guilty to conspiracy to transport of illegal aliens, announced U.S. Attorney Jennifer B. Lowery.
Viriam Lizeth Huerta-Garcia admitted she accepted monies from the family members of a now deceased Mexican citizen to get him into the United States.
On July 21, 2021, authorities learned that a smuggled undocumented non-citizen had been abandoned along the roadside during a smuggling attempt. A family member of the victim had reported smugglers told them that the male victim had become ill during the trip and provided the location where he was left behind.
Law enforcement responded to the scene and discovered a Hispanic male laying down in a brushy area a short distance from the roadway. They pronounced him dead on the scene. The investigation revealed the victim was the same as the one the family member reported missing.
The victim had recently left the country to assist his ailing mother but had been trying to return to the United States. He was last heard from July 18, 2021.
Huerta-Garcia admitted today that she accepted $3,600 from his family members as payment for smuggling him into the United States.
Sentencing has been set before Senior U.S. District Judge John Rainey May 26. At that time, Huerta-Garcia faces up to 10 years in federal prison and a possible $250,000 maximum fine.
She has been and will remain in custody pending that hearing.
Homeland Security Investigations and the Victoria County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Patti Hubert Booth is prosecuting the case.
South Bend Man Sentenced to 168 Months in PrisonRead the Press Release
SOUTH BEND –George W. Fowler, Jr., 33 years old, of South Bend, Indiana, was sentenced by United States District Court Chief Judge Jon E. DeGuilio after pleading guilty to possession with intent to distribute more than 500 grams of methamphetamine, announced United States Attorney Clifford D. Johnson.
Fowler was sentenced to 168 months in prison followed by 5 years of supervised release.
According to documents in the case, in August 2020, law enforcement searched Fowler’s home and discovered a kilogram of methamphetamine, over 350 grams of heroin, and nearly 150 grams of fentanyl along with four handguns and $57,000 cash. Fowler was involved in distributing drugs with his brother, Rashawn Fowler, who was sentenced on January 19, 2020, by Chief Judge DeGuilio to 121 months in prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration with the assistance of the South Bend Police Department. The case was prosecuted by Assistant United States Attorney Joel Gabrielse.
###
Six Indicted for Distribution of Cocaine and Methamphetamine along Wasatch FrontRead the Press Release
SALT LAKE CITY – A federal grand jury in the District of Utah has issued a16-count indictment, which alleges that six individuals associated with a drug trafficking organization are responsible for conspiring to distribute cocaine, in addition to the distribution of methamphetamine, along the Wasatch Front.
The charges are the result of an investigation into a drug trafficking organization which was allegedly responsible for transporting kilograms of cocaine from California into Utah for distribution. Using court authorized investigative techniques, Special Agents from the FBI and the Wasatch Metro Narcotics Task Force identified six defendants allegedly responsible for the distribution of narcotics.
From November of 2021 until February of 2022, agents completed several controlled buys of cocaine and methamphetamine from the defendants listed in the indictment. During the investigation, agents seized over 1.8 kilograms of cocaine, over one pound of methamphetamine, two firearms, and over $102,000 in cash.
The indictment charges Leonardo Ortiz-Rios, aka Gerardo Ortiz Benitez, 45, of West Valley City, with one count of conspiracy to distribute cocaine and one count of distribution of cocaine.
Teresa Sanchez, 45, of West Valley City, is charged with one count of conspiracy to distribute cocaine, and one count of possession with intent to distribute cocaine.
Jacinto Perez, 61, of Taylorsville, is charged with one count of conspiracy to distribute cocaine, four counts of distribution of cocaine, three counts of distribution of methamphetamine, and one count of possession with intent to distribute cocaine.
Alejandro Santana-Brito, 35, of West Valley City, is charged with one count of conspiracy to distribute cocaine and two counts of distribution of cocaine and one count of reentry of a previously removed alien
Justin Archuleta, aka Philip Zachary Colvin, 50, of Salt Lake City, is charged with one count of conspiracy to distribute cocaine, one count of possession of cocaine with intent to distribute, and one count of felon in possession of a firearm.
Jose Guadalupe Ruiz, 53, of Tooele, is charged with one count of conspiracy to distribute cocaine and one count of possession with intent to distribute cocaine.
Assistant U.S. Attorneys Stephen L. Nelson and Stewart M. Young in the Utah U.S. Attorney’s Office are prosecuting the case, Special Agents from the FBI and the Wasatch Metro Narcotics Task Force conducted the investigation.Indictments are not findings of guilt. Defendants charged in indictments are presumed innocent unless or until proven guilty in court.
Shelby County Woman Charged with Stealing from HOAs and EmployerRead the Press Release
BIRMINGHAM, Ala. – Federal prosecutors have charged a Shelby County woman for wire fraud for embezzling from her employer and the homeowners’ associations they managed, announced U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Johnnie Sharp Jr.
A one-count information filed this week in U.S. District Court charges Aimee Louise Statham, 47, of Chelsea, with embezzling from her employer, Rouland Management Services (RMS), and the homeowners’ associations that RMS managed. In conjunction with the charge, the government also filed a plea agreement with Statham. She must appear before a judge to enter a guilty plea.
According to the information, between January 2018 and August 2021, while employed as the bookkeeper by RMS, Statham made unauthorized transfers of funds from an RMS bank account and various homeowners’ associations bank accounts to her personal account. Statham used the unauthorized funds received for personal expenses.
The maximum penalty for wire fraud is 20 years in prison and a $250,000 fine.
FBI investigated the case, with assistance from the Pelham Police Department and the United States Secret Service Cyber Fraud Task Force. Assistant U.S. Attorney Ryan Rummage is prosecuting the case.
An information contains only charges. A defendant is presumed innocent unless and until proven guilty.
###
Shasta County Woman Arrested for Lying to Federal Agents Regarding Kidnapping and Defrauding the Victim Compensation BoardRead the Press Release
SACRAMENTO, Calif. — Sherri Papini, 39, of Redding, was arrested today on charges of making false statements to a federal law enforcement officer and engaging in mail fraud, U.S. Attorney Phillip A. Talbert, FBI Special Agent in Charge Sean Ragan, and Shasta County Sheriff Michael L. Johnson announced.
According to the criminal complaint filed in this case, on Nov. 2, 2016, Papini was reported missing, and extensive searches were conducted for her in Shasta County and California as well as in several other states. On Nov. 24, 2016, Papini was found in Yolo County near Woodland. Papini had various bindings on her body and injuries including a “brand” on her right shoulder.
At that time, Papini told law enforcement officers and others that she had been abducted and held by two Hispanic women at gunpoint and held against her will. She also provided details of the alleged abductors to an FBI sketch artist. Based on her account, law enforcement agencies were on the lookout for Hispanic women matching Papini’s description. The investigation eventually showed, however, that this was a false narrative Papini fabricated. In truth, Papini had been voluntarily staying with a former boyfriend in Costa Mesa and had harmed herself to support her false statements.
During an interview conducted by a federal agent and a Shasta County Sheriff’s Office detective in August 2020, Papini was warned that it was a crime to lie to federal agents. She was presented with evidence that showed she had not been abducted. Instead of retracting her kidnapping story, Papini continued to make false statements about her purported abductors. In addition, Papini caused the California Victim’s Compensation Board to pay victim assistance money based on her kidnapping story. From 2017 through 2021, Papini’s request for victim assistance caused approximately 35 payments totaling over $30,000, including for visits to her therapist and for the ambulance that transported her to the hospital after her return.
“When a young mother went missing in broad daylight, a community was filled with fear and concern,” said U.S. Attorney Talbert. “Shasta County Sheriff’s Office immediately began investigating, calling on the assistance of the FBI. Countless hours were spent following leads, all in an effort to bring this woman back to her family. Three weeks later, she was found 146 miles south of where she disappeared, and the focus went from trying to find her to trying to find her abductors. Ultimately, the investigation revealed that there was no kidnapping and that time and resources that could have been used to investigate actual crime, protect the community, and provide resources to victims were wasted based on the defendant’s conduct.”
“This case exemplifies the FBI’s commitment to working tirelessly with law enforcement partners and prosecutors to examine all facts and seek the truth, no matter how long that process takes or how complex the analysis may be,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “We are grateful for the dedication of the agents, investigators, lab technicians, professional staff, and prosecutors who aided our collaborative fact-finding efforts. We are relieved that the community is not endangered by unknown, violent kidnappers, and thank the public and media for their patience and strong support for this case since the initial reports of Sherri Papini’s disappearance.”
“The Shasta County Sheriff’s Office is very thankful for the partnerships with all of the local, state, and federal allied agencies that have been involved with this investigation for the last five plus years,” said Sheriff Johnson. “The arrest of Sherri Papini was made possible by the outstanding hard work of a multitude of agents, detectives, DOJ criminalist, forensic analyst, crime scene investigators and support staff members that were assigned to this investigation. Everyone involved in this investigation had one common goal; to find the truth about what happened on Nov. 2, 2016 with Sherri Papini and who was responsible. The 22-day search for Sherri Papini and subsequent five-year search into who reportedly abducted her was not only taxing on public resources but caused the general public to be fearful of their own safety, a fear that they should not have had to endure. The Sheriff’s Office has appreciated the support and patience from the citizens of Shasta County and abroad. This investigation has always been a priority to get solved for the Sheriff’s Office as well as for our investigating partners at the FBI and the California Department of Justice’s Bureau of Forensic Services and Bureau of Investigation.”
“At the California Department of Justice, we're proud of the work that our investigators and forensic experts do each and every day to provide critical investigative leads to our law enforcement partners across California,” said California Attorney General Rob Bonta. “No matter the circumstances, our team is committed to the facts. While this case deals with a tough situation, we'll continue to do our part to help secure justice. Thank you to our partners at the federal and local level for your commitment to seeing this case through.”
This case is the product of an investigation by the FBI and the Shasta County Sheriff’s Office with assistance from the California Department of Justice’s Bureau of Forensic Services and Bureau of Investigation, and the California Highway Patrol. Assistant U.S. Attorneys Veronica M.A. Alegría and Shelley D. Weger are prosecuting the case.
If convicted of making false statements to a federal law enforcement officer, Papini faces a maximum statutory penalty of five years in prison and a fine up to $250,000. If convicted of mail fraud, she faces a maximum statutory penalty of 20 years in prison and a fine up to $250,000. 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.
Second St. Thomas Man Pleads Guilty to Robbing a St. Thomas Jewelry Store While Carrying a PistolRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert announced today that Shemar G. Webster, a resident of St. Thomas, appeared before United States Magistrate Judge Ruth Miller in the District Court yesterday and entered a guilty plea to the charge of interference with commerce by threats or violence and use of or carrying a firearm during a crime of violence. He faces up to life in federal prison. The sentencing date will be set by the Court.
According to Court documents, on Saturday, September 19, 2020, a white Suzuki Vitara arrived in the area of Gems & Gold Corner jewelry store located on the waterfront near Veteran’s Drive, St. Thomas, Virgin Islands. Webster and a co-defendant exited the white Suzuki Vitara with firearms and entered the Gems & Gold Corner jewelry store. Webster brandished the pistol he possessed and threatened the jewelry store employees and others. Webster physically assaulted the jewelry store owner using the firearm, striking the owner’s head. Webster and a co-defendant broke the jewelry showcases and took jewelry from the store. They then retreated from the jewelry store, got back into the white Suzuki Vitara, and were driven away from the area.
This case is being investigated by the Federal Bureau of Investigation and the Virgin Islands Police Department. It is being prosecuted by Assistant United States Attorney Juan A. Albino.
This case is part of the Department of Justice’s Project Safe Neighborhood Initiative. Project Safe Neighborhood is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. For
more information on the Department of Justice’s Project Safe Neighborhoods, please see: https://www.justice.gov/psn.Savannah man sentenced to decades in prison for sexual abuse of a childRead the Press Release
SAVANNAH, GA: A Savannah man has been sentenced to more than two decades in federal prison after admitting he sexually abused a child at an overseas military base during an eight-year period.
Paul Francis Dunn III, 46, of Savannah, was sentenced to 293 months in prison after pleading guilty to Abusive Sexual Contact Committed by a Person Employed by the Armed Forces Outside the United States, and Sexual Abuse of a Minor Committed by a Person Employed by the Armed Forces Outside the United States, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker also ordered Dunn to serve a life term of supervised release and to register as a sex offender after completion of his prison term. There is no parole in the federal system. A hearing will be held at a later date to determine the amount of restitution Dunn must pay.
“Sexual abuse of a child creates a lifetime of trauma,” said U.S. Attorney Estes. “While this sentence can’t undo the abuse, at least it can ensure that Paul Dunn will be locked away for his horrific crimes.”
As described in court documents and testimony, Dunn admitted that while he served in the U.S. Army and later as a civilian U.S. employee in Belgium, from 2006 to 2014, he repeatedly sexually abused a child under age 16. He was arrested in 2018 after the victim reported the abuse, and Dunn pled guilty to the charges in U.S. District Court in June 2021.
“Sexual assault against a child is an unspeakable crime that deserves the harshest penalties,” said Gregory Ford, Director of the U.S. Army Criminal Investigation Division (CID). “This sentence is a reflection of the dedication our CID Special Agents and our law enforcement partners maintain, to seek justice for the most vulnerable among us.”
“It is beyond comprehension that someone in a position sworn to protect American citizens would take advantage and traumatize a vulnerable child,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “Maybe Dunn thought he could keep his crimes buried overseas, but that will not stop the FBI from pursuing child predators. Thanks to the help of our partners, he will now serve a lengthy prison sentence where he won’t be able to victimize any more children.”
The case was investigated by the U.S. Army Criminal Investigation Division’s Fort Stewart office and the FBI, and prosecuted by Trial Attorneys Kaylynn Foulon and Eduardo Palomo of the U.S. Department of Justice Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Marcela Mateo of the U.S. Attorney’s Office for the Southern District of Georgia.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
Santa Barbara Man Charged in $12 Million Investment Scam Faces New Allegations of Failing to Pay Millions of Dollars in TaxesRead the Press Release
LOS ANGELES – A Santa Barbara man who allegedly stole approximately $12 million from victims who thought their investments would be used to purchase annuities today faces new charges of failing to pay over $3 million in federal income tax and concealing bank accounts in Monaco used to hide ill-gotten gains.
A superseding indictment filed today in United States District Court charges Darrell Arnold Aviss, 64, with three counts of tax evasion, six counts of failing to report foreign bank and financial accounts, and one count of aggravated identity theft.
Aviss was arrested last June and initially charged with five counts of wire fraud and six counts of money laundering for allegedly operating a Ponzi scheme that promised to invest victims’ money in annuities from Swiss insurance companies. The original 11 charges are included in today’s superseding indictment that alleges Aviss used none of the victim funds to purchase annuities.
Aviss, who was jailed for about three months before a judge ordered him released in September on a $200,000 bond, is currently scheduled to go on trial July 26. He will be directed to appear for an arraignment on the superseding indictment in the coming weeks.
Aviss allegedly operated the fraud scheme from at least 2012 through mid-2020, soliciting money from people who wanted to purchase annuities from insurance companies based in Switzerland. Even though he arranged for the victims to receive statements showing the value of the annuities were increasing, the indictment alleges Aviss did not use the victims’ money to purchase annuities. Victims, most of whom were over the age of 60, gave Aviss more than $12 million, with most of that money coming from just one victim, according to court documents. Some money was paid back to victims to keep the scheme running.
Instead of purchasing annuities, Aviss allegedly used the victims’ money for his own purposes and to support his lavish lifestyle, which included luxury cars, expensive watches and trips to Monaco.
The superseding indictment alleges that Aviss also defrauded the United States by failing to file tax returns for 2014, 2015 and 2016 and failing to pay any income taxes for those years. Aviss allegedly evaded paying more than $3 million in income taxes.
Aviss also failed to file with the Department of the Treasury Reports of Foreign Bank and Financial Accounts for the years 2015 through 2020 relating to accounts he controlled in Monaco. The superseding indictment alleges that he transferred victims’ money to these offshore accounts, one of which was established with information from an identity theft victim.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of the charges in the superseding indictment, Aviss would face decades in federal prison. For example, each of the five counts of wire fraud carries a statutory maximum sentence of 20 years in federal prison.
The FBI and IRS Criminal Investigation are conducting the investigation in this matter.
Assistant United States Attorney Monica E. Tait of the Major Frauds Section is prosecuting this case.
San Diego Man Sentenced to More than 20 years for Three Armed RobberiesRead the Press Release
Assistant U. S. Attorney Mario J. Peia (619) 546-9706
NEWS RELEASE SUMMARY – March 3, 2022
SAN DIEGO – A man who committed three armed robberies, including a robbery in which he fired his gun at a clerk, was sentenced in federal court today to 248 months in prison.
Devon Dwayne Brooks pleaded guilty in July to two counts of Hobbs Act Robbery, one count of Attempted Hobbs Act Robbery, and two counts of Brandishing a Firearm in Furtherance of a Crime of Violence.
According to his plea agreement, Brooks admitted that he robbed the Alpha and Omega Jewelry store in National City on March 26, 2019; the Valerio’s Bakeshop in National City on December 30, 2019; and the Winchell’s Donut House in National City on January 2, 2020. A gun was used in all three robberies. During the Winchell’s Donut House robbery, Brooks used a revolver to demand money from the cash register. When the clerk resisted, a struggle ensued. Brooks took a step back, aimed his revolver, and fired one shot, ultimately missing the clerk. Brooks then punched and pistol-whipped the clerk before fleeing empty handed.
“This defendant terrorized and injured store clerks and put their lives at risk,” said U.S. Attorney Randy Grossman. “He changed their lives forever. This is a prime example of why the Department of Justice prioritizes violent crime. The U.S. Attorney’s Office and our law enforcement partners will continue to prioritize the investigation and prosecution of violent crimes in a manner that promotes victim rights and ensures just consequences for those who perpetrate violent crimes.” Grossman thanked the prosecution team, the FBI and the National City Police Department for their excellent work on this case.
“Today’s sentence should send a very clear message to violent criminals throughout the county – the FBI’s Violent Crimes Task Force will utilize all investigative resources and law enforcement partnerships to track down and bring to justice those who commit violent acts and put lives in danger,” said FBI Special Agent in Charge Suzanne Turner. “The FBI is proud to work alongside our partners at the National City Police Department and the United States Attorney’s Office to help keep our communities safe. I hope this sentence brings a sense of justice and closure to those victims whose lives were viciously impacted.”
DEFENDANT Case Number 20cr0239-WQH
Devon Dwayne Brooks Age: 23 San Diego, CA
SUMMARY OF CHARGES
Hobbs Act Robbery/Attempted Hobbs Act Robbery – Title 18, U.S.C., Section 1951
Maximum penalty: Twenty years in prison
Brandishing a Firearm in Furtherance of a Crime of Violence – Title 18, U.S.C., Section 924(c)
Maximum Penalty: Life; Consecutive Mandatory Minimum: Seven years per count
AGENCY
Federal Bureau of Investigation
National City Police Department
This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section. Formed in 2019, the VCHT is tasked with leading collaborations between federal and local law enforcement in the investigation and prosecution of cases involving violent crimes, firearms and gang cases; sex trafficking and child exploitation; civil rights, and labor trafficking. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood. The VCHT Section also provides federal prosecutors to the downtown San Diego Violent Crimes Task Force-Gang Group, the North County Gang Task Force, and the East County Gang Task Force.
St. Croix Man Pleads Guilty to Stashing Five Kilograms of Cocaine in Life Vest Compartments Onboard American Airlines Flight to MiamiRead the Press Release
ST. THOMAS, USVI – U.S. Attorney Gretchen C.F. Shappert announced that Luis Ortiz, Jr., 25, of St. Croix pleaded guilty on March 1, 2022, before Magistrate Judge Ruth Miller to Conspiracy to Possess with Intent to Distribute Five or more Kilograms of Cocaine. Ortiz remains on supervised release pending sentencing.
According to court documents, on June 20, 2019, Ortiz and a co-defendant recruited two individuals to smuggle five bricks of cocaine from St. Croix to Miami, FL, onboard American Airlines flight #2227 on July 11, 2019. On the evening of July 10, 2019, surveillance footage from the Henry E. Rohlsen Airport captured Ortiz, who was employed as a contractor to clean the aircrafts, boarding the American Airlines aircraft wearing an oversized jacket. While onboard, Ortiz walked directly to rows 17 and 18 and closed the windows of both rows. Eight minutes later, Ortiz exited the aircraft carrying packages that were consistent in size with the life vests that were removed from rows 17 and 18.
Later that morning, Ortiz’s co-defendant arranged with an American Airlines gate agent to preboard two persons who were later identified as the smugglers. Once onboard, Ortiz’s codefendant instructed one of the two smugglers to retrieve cocaine from the life vest compartments located under seats 17A and 17B.
Flight #2227 departed the Henry E. Rohlsen Airport at approximately 8:00 a.m., and upon its arrival in Miami at approximately 11:00 a.m., the two smugglers were arrested by Customs and Border Protection officers. Both pleaded guilty to Possession with Intent to Distribute Cocaine and were sentenced in the Southern District of Florida District Court.
At sentencing, Ortiz faces a mandatory minimum sentence of 10 years of incarceration and a maximum fine of $10,000,000.00. Ortiz also faces a term of five years of supervised release and a special assessment of $100.00.
This case was investigated by Homeland Security Investigations, St Croix Resident Office,
and prosecuted by Assistant United States Attorney Delia Smith.The investigation 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.Rye Ophthalmologist Sentenced to 96 Months in Prison for Prolific Seven-Year Healthcare Fraud Scheme and Covid-19 Loan FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that AMEET GOYAL, M.D., (“GOYAL”) an ophthalmologist in Rye, New York, was sentenced today to 96 months in prison for orchestrating a seven-year healthcare fraud scheme by falsely billing for millions of dollars of upcoded procedures, and also for fraudulently obtaining two Government-guaranteed loans intended to help small businesses during the COVID-19 pandemic while he was facing charges on pretrial release for the healthcare fraud scheme. In imposing the sentence today, U.S. District Judge Cathy Seibel noted, “Fraud doesn’t fully capture how blatant this was and how unjustified this was… This was not about need, it was about greed.” GOYAL previously pled guilty to all charges in a six-count superseding Indictment before Judge Seibel on September 13, 2021.
In addition to the prison term, GOYAL was sentenced today to five years of supervised release, and ordered to pay forfeiture of $3.6 million and restitution of $3.6 million. GOYAL has already paid approximately $1.79 million toward these obligations.
U.S. Attorney Damian Williams said: “A prominent ophthalmologist and oculoplastic surgeon who has now surrendered his medical license, AMEET GOYAL was blinded by greed. Over a seven-year period, he preyed on the trust placed in him and cheated patients and insurance companies of $3.6 million in false charges. To cover his tracks, he created fictitious operative reports, seeded across hundreds of patient files, violating the integrity of patients’ medical records and making it more difficult for subsequent doctors to evaluate their care. He sent patients who could not pay the upcoded bills to a collection agency, decimating their credit. He pressured other doctors to join the scheme and threatened to retaliate against their livelihood and careers. Even after being arrested for this scheme, GOYAL committed a breathtaking new fraud and stole $637,200 from the Paycheck Protection Program in the early days of a devastating pandemic. For his crimes, GOYAL will serve a substantial sentence in prison.”
According to the allegations contained in the Indictment, court filings, and statements made during court proceedings:
At all relevant times, GOYAL owned and operated the ophthalmology practice Ameet Goyal M.D. P.C., doing business as Rye Eye Associates, with offices in Rye, Mt. Kisco, and Wappingers Falls, New York, and Greenwich, Connecticut (the “Practice”). Between 2010 and 2017, GOYAL engaged in widespread healthcare fraud by consistently “upcoding” simpler, lower-paying surgical procedures and examinations as complex, higher-paying major operations in fraudulent billings submitted to Medicare, private insurance companies, and patients. As a result, GOYAL fraudulently obtained at least $3.6 million in payments for procedures he did not perform. GOYAL failed to obtain proper and, at times, any consent for the upcoded procedures he falsely claimed to have performed. As part of the scheme, GOYAL routinely falsified patient medical records, authoring fictitious templated operative reports that matched the complex operation he billed rather than the different minor procedure he actually performed. GOYAL also pressured other employees in his Practice to engage in the scheme, and threatened the livelihood of employees who refused to comply. GOYAL caused patients to pay thousands of dollars out of pocket for fraudulently billed charges, and initiated debt collection proceedings against patients who did not pay the full amounts of those false charges. As a result of his fraudulent billings, GOYAL was the highest-billing doctor in the tri-state area for several of his fraudulently billed codes, one of which he billed seven times more frequently than all doctors in the tri-state area combined. GOYAL was indicted for the healthcare fraud charges in November 2019 and was released on bail.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses through the SBA’s Paycheck Protection Program (“PPP”). Applicants with pending criminal charges are ineligible for PPP loans. The PPP also limits each eligible borrower to one loan, and a maximum loan amount calculated based on a business’s average monthly payroll expenses.
In or about April 2020, GOYAL applied to the SBA and Bank-1, a federally insured institution, for over $630,000 in Government-guaranteed loans through the PPP. Specifically, on or about April 21, 2020, GOYAL applied for a loan in the amount of $358,700 for the business “Ameet Goyal,” with his own social security number and e-mail address. On or about April 29, 2020, GOYAL applied for a second loan in the amount of $278,500, with a business name “Rye eye associates,” using the Employer Identification Number for Ameet Goyal, M.D. P.C and a different email address controlled by GOYAL. To substantiate each loan, however, GOYAL submitted the exact same underlying payroll expense report, showing the same employees and payroll costs.
On both applications, GOYAL falsely answered that he was not facing any pending criminal charges, and electronically placed his initials “AG” directly under his “No” response. GOYAL also falsely certified, among other things, that his business would not receive another PPP loan until the end of the year. After obtaining approval from Bank-1 and the SBA through his fraudulent misrepresentations, GOYAL executed loan notes for two loans. On May 4, 2020, GOYAL received the first loan of $358,700, and on May 11, 2021, GOYAL received the second loan of $278,500. GOYAL used the business checking account into which these funds were deposited to pay business and personal expenses, including by making a payment to a country club in Westchester, New York within days of receiving the first loan, as well as payments to a California vineyard and golf merchandise website.
* * *
GOYAL, 58, of Rye, New York, pled guilty to all six counts in the Superseding Indictment. The first count charged healthcare fraud; the second count charged wire fraud; and the third count charged making false statements relating to health care matters. Counts four, five, and six charged that while on pretrial release, the defendant committed the following offenses, respectively: bank fraud, making false statements on a loan application, and making false statements in a matter within the jurisdiction of the executive branch of the Government of the United States.
Mr. Williams praised the work of the Federal Bureau of Investigation, the U.S. Department of Health and Human Services, Office of Inspector General, and the Office of the Inspector General of the SBA.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Vladislav Vainberg, David Felton, and Margery Feinzig are in charge of the prosecution. A civil fraud lawsuit relating to healthcare fraud under the False Claims Act is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Jeffrey K. Powell is in charge of the pending civil case.
Russellville Man Sentenced for Meth TraffickingRead the Press Release
JEFFERSON CITY, Mo. – A Russellville, Missouri, man was sentenced in federal court today for distributing more than a kilogram of methamphetamine.
William Austin Lee Crabtree, 30, was sentenced by U.S. District Judge Roseann Ketchmark to 12 years in federal prison without parole.
On Aug. 24, 2021, Crabtree pleaded guilty to one count of possessing methamphetamine with the intent to distribute.
A Moniteau County, Mo., sheriff’s deputy saw Crabtree in the driver’s seat of a Cadillac parked behind an apartment complex in Tipton, Mo., on Oct. 17, 2017. The deputy parked in front of the Cadillac and, as he got out of his vehicle, another man began walking away from the Cadillac. As the deputy was speaking to him, Crabtree got out of the Cadillac and began walking away. The deputy told Crabtree to stop, but he continued walking away until the deputy produced his taser.
A police dog alerted to the driver’s side door of the Cadillac. The deputy searched Crabtree’s car and found a white bag that contained two baggies with a total of 298.4 grams of methamphetamine.
According to court documents, during a series of telephone calls made by Crabtree while incarcerated in the Moniteau County jail, Crabtree spoke with his girlfriend and discussed amounts of money owed to him by his various drug customers. Based on those conversations, Crabtree was held accountable for more than one kilogram of methamphetamine.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Drug Enforcement Administration, the Moniteau County, Mo., Sheriff’s Department, and the Jefferson City, Mo., Police Department.
Rosebud Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Dennis Holmes announced that a Rosebud, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on February 28, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Jason Kimmel, Sr., age 40, was sentenced to 31 months in federal prison, to run concurrently with 18 months sentenced in another file, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Kimmel was indicted by a federal grand jury on April 13, 2021. He pled guilty on November 22, 2021.
Kimmel was convicted of Sexual Abuse of a Minor in 2005. As a result of this conviction, he is required to register as a sex offender. Between February 10, 2021, and April 1, 2021, Kimmel, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender and update his registration.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Kimmel was immediately turned over to the custody of the U.S. Marshals Service.
Rockford Man Sentenced to 10 Years for Second Federal Conviction for Possessing Child PornographyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that John Woodward, 33, Rockford, Illinois, was sentenced today by Chief U.S. District Judge James D. Peterson to 10 years in federal prison for possessing child pornography. This term of imprisonment is to be followed by a lifetime period of supervised release. Woodward pleaded guilty to this offense on December 8, 2021.
On February 11, 2010, Woodward was sentenced in the Northern District of New York to 10 years in prison for possessing child pornography. He was released to supervision on August 24, 2017. On June 26, 2018, that supervision was transferred from New York to the Northern District of Illinois.
On July 11, 2018, agents searched Woodward’s home and found at least nine printed images of child pornography and 20 images of child erotica. Agents also determined that he viewed child erotica on his cell phone. His supervised release was revoked, and he was sentenced to 24 months in prison to be followed by a life-time period of supervised release.
As it relates to the conduct charged in this case, on March 24, 2020 Woodward was again released to federal supervision. This time he was placed at Rock Valley Community Center in Janesville, Wisconsin. On August 14, 2020, while at Rock Valley he was found in possession of an unauthorized cell phone. The phone was seized and later analyzed. Woodward was interviewed following the confiscation of the phone and said he used the phone to view child pornography. An analyst was able to recover hundreds of deleted explicit images on the phone.
The charge against Woodward was the result of an investigation conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Elizabeth Altman prosecuted this case.
Repeat Fraudster Sentenced for Fraudulent Loan and Bank Bribery SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ADEDAYO ILORI, a recidivist fraudster with multiple prior fraud convictions and who continued to engage in fraudulent conduct even following his guilty plea, was sentenced today to 63 months’ imprisonment for his role in a commercial loan fraud and bank bribery scheme. ILORI’s sentence was imposed by United States District Judge Lewis J. Liman. Codefendants Herode Chancy and Michael Albarella, who at the time of offense were employed as managers at a Manhattan branch of a national bank (“Bank-1”), were previously sentenced to 30 months’ and six months’ imprisonment, respectively.
U.S. Attorney Damian Williams said: “Adedayo Ilori has a history of engaging in fraud using the identities of other people. Here, Ilori worked with bank insiders to obtain over $1 million in commercial loans for fake businesses. Ilori used stolen identities to apply for the loans and open bank accounts to receive the loan proceeds. His co-conspirators used a stolen identity provided by Ilori to launder a portion of the loan proceeds. Today’s sentence sends the message to Ilori and others engaged in fraud using stolen identities that such conduct will be seriously punished.”
According to the allegations in the Complaint, Indictment, and statements made in court:
From at least in or about March 2019 up to and including at least in or about March 2020, ILORI and Chancy conspired to fraudulently obtain business loans from a third-party commercial lender with the intent not to repay the loans – i.e., with the intent to “bust out” the loans. ILORI and Chancy together submitted eight fraudulent business loan applications for a total of $1,020,000 in business loans. The business loan applications submitted by ILORI and Chancy included doctored bank statements and listed the identities of other persons as the loan applicants, including stolen identities provided by ILORI. ILORI and Chancy also opened bank accounts using the identities of those other persons in order to receive the loan payments from the third-party commercial lender. ILORI and Chancy subsequently conspired with Albarella to open a bank account at Bank-1 using a stolen identity provided by ILORI to launder approximately $200,000 of the expected proceeds of the loan scheme. Albarella opened the bank account at Bank-1 using the stolen identity provided by ILORI and Chancy, and Albarella accepted a $10,000 bribe to open the bank account.
ILORI and Chancy believed that the underwriter for the third-party commercial lender was participating in the scheme and agreed to pay the underwriter a “commission” for the underwriter’s role in the scheme. In reality, however, the underwriter was an undercover law enforcement officer.
After pleading guilty in this case, ILORI continued to engage in fraudulent conduct using stolen identities by renting an apartment using a stolen identity, leasing a vehicle using a stolen identity, making purchases using a bank card in the name of a stolen identity, and possessing bank cards and identification cards in the names of several stolen identities. Separately, ILORI has been indicted in this District in 21 Cr. 746 for engaging in a multi-million dollar COVID-19 loan fraud scheme, and the case is pending before Judge Vyskocil. The charges contained in Indictment 21 Cr. 746 are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
* * *
In addition to the prison term, ILORI, 43 of Queens, New York, was sentenced to three years of supervised release and ordered to forfeit $10,000 in fraudulent proceeds.
Mr. Williams praised the outstanding investigative work of the New York FBI’s Eurasian Organized Crime Task Force and the El Dorado Task Force of Homeland Security Investigations.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Tara M. La Morte and Cecilia E. Vogel are in charge of the prosecution.
Reading Drug Boss Sentenced to 32 Years for Supplying Large Areas of Berks, Lehigh, Montgomery and Northampton CountiesRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that David Cooper, 47, of Reading, PA, was sentenced to 32 years in prison, eight years of supervised release, and was ordered to pay $2,000 fine by United States District Court Judge Joseph F. Leeson, Jr. for organizing and directing a prolific drug gang from his home located outside of Reading in Muhlenberg Township.
In September 2021, the defendant pleaded guilty just before trial to charges including conspiracy to distribute fentanyl, cocaine, and cocaine base (“crack”); possession with intent to distribute narcotics; possession of a firearm in furtherance of a drug trafficking crime; and possession of a firearm by a convicted felon. The charges stem from Cooper’s role in leading a drug trafficking organization which supplied large quantities of fentanyl, cocaine, and cocaine base to other drug dealers and drug users in Pottstown, Allentown, and the surrounding communities.
During the investigation into Cooper’s organization, detectives received permission to install court-ordered wiretaps on phones used by the defendant. Using extensive surveillance and the intercepted telephone calls, Montgomery County Detectives and FBI agents arrested the defendant as he attempted to resupply his organization with 200 grams of fentanyl, enough for more than six thousand individual doses. Investigators also seized narcotics, drug packaging materials, and a firearm. During the same operation, Cooper’s drug customer Comese Robinson, of Pottstown, PA, was also arrested and later convicted of similar charges in Montgomery County Court. Robinson was sentenced in December 2021 to 7 ½ to 15 years in state prison. Additionally, Cooper’s supplier, Miguel Figueroa, Jr., also of Reading, PA, was convicted of similar charges in Montgomery County Court and was sentenced to 18 to 40 years in state prison, and Cooper’s federal co-defendant, Edwin Andino, 39, of Allentown, PA, was also convicted of similar charges and sentenced to 18 years in federal prison.
“This case is an excellent example of all levels of law enforcement collaborating to dismantle a dangerous drug trafficking operation putting deadly narcotics on streets all across the Eastern District of Pennsylvania,” said U.S. Attorney Williams. “Cooper personally threatened the safety of his neighbors in Reading, and all communities in our District, through his dangerous and illegal actions, for which he will now spend over three decades behind bars.”
“Illegal drugs continue to kill thousands of people every year,” said Special Agent in Charge Jacqueline Maguire. “The FBI shares concern over this serious problem with our federal and local law enforcement partners, and we vow to the communities we serve that we will continue to track down the criminals who are reaping monetary rewards by pushing potentially deadly drugs on the streets of our neighborhoods.
“We are pleased to see David Cooper sentenced for his role in flooding Montgomery County and surrounding areas with large quantities of deadly drugs, including fentanyl,” said Montgomery County District Attorney Kevin R. Steele. “The investigation began with concerned citizen reports and ended after a lengthy investigation in the arrest of Cooper and more than two dozen others. Thank you to all of our local, regional, state and national partners for their efforts with this case and their ongoing commitment to ridding our communities of these deadly poisons.”
The case was investigated by the Montgomery County Detective Bureau’s Violent Crime Unit; the Federal Bureau of Investigation and the FBI Bucks and Montgomery County Safe Streets Task Force; the Office of the Pennsylvania Attorney General’s Bureau of Narcotics Investigation; Pottstown Borough Police Department; Pennsylvania State Police; the Bureau of Alcohol, Tobacco, Firearms and Explosives; Berks County District Attorney’s Narcotics Enforcement Team; Lehigh County Detective Bureau; Reading City Police Department; Allentown Police Department; Muhlenberg Township Police Department; and the Liberty Mid-Atlantic High Intensity Drug Trafficking Area (HIDTA) program; and is being prosecuted by Assistant United States Attorney Christopher E. Parisi.
Rapid City Man Sentenced to 14 Years in Federal Prison for Attempted Enticement of a Minor Using the InternetRead the Press Release
United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of Attempted Enticement of a Minor Using the Internet was sentenced on February 28, 2022, by U.S. District Judge Jeffrey L. Viken.
Christopher Truax, age 35, was sentenced to 14 years in federal prison, followed by lifetime supervised release and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Truax will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Truax was arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2020 Sturgis Motorcycle Rally, targeting internet predators. Following multiple chats and text messages with a person Truax believed to be a 13-year old girl, but who was in fact an undercover agent, he proceeded to negotiate a time and place he would meet the minor to engage in unlawful sex acts. When Truax went to the pre-determined location to meet the minor, he was instead met by law enforcement agents and placed under arrest.
This case was investigated by Homeland Security Investigations, South Dakota Division of Criminal Investigation, Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Truax was immediately turned over to the custody of the U.S. Marshals Service.
Providence Man Sentenced for Illegal Possession of FirearmRead the Press Release
BOSTON – A Providence man was sentenced today for being a felon in possession of a firearm and ammunition.
Roland S. Morgan, 38, was sentenced by U.S. Senior Court Judge William G. Young to 21 months in prison and two years of supervised release. On Nov. 10, 2021, Morgan pleaded guilty to one count of being a felon in possession of a firearm and ammunition.
On Oct. 28, 2020, at approximately 1:00 a.m., a Seekonk Police Officer observed a silver Mercedes exiting Interstate 95 in Seekonk. The officer noted that the vehicle’s rear license plate was not luminated, a violation of Massachusetts Law. After observing the vehicle make a number of random U-turns, the officer conducted a motor vehicle stop. Morgan was driving the vehicle and was unable to produce a driver’s license. The officer determined that Morgan had two outstanding arrest warrants issued by Attleboro District Court, at which time he was arrested.
A subsequent search of Morgan’s vehicle recovered, among other things, a loaded .38 caliber Smith and Wesson revolver from under the seat where Morgan had been sitting; 43 rounds of .38 caliber ammunition; 10 metal tipped arrows; a hunting bow; narcotics; a Crossman pellet gun; a black holster; and a body armor vest.
Morgan is prohibited from possessing a firearm or ammunition due to prior felony convictions for assault, drug distribution and firearms possession.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Bristol County District Attorney Thomas M. Quinn; Seekonk Police Chief Dean Isabella; and Mahanoy Township (Pa.) Police Chief Brandon Alexander made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Rollins’ Major Crimes Unit prosecuted the case.
Prisoner pleads guilty to escaping from halfway houseRead the Press Release
CORPUS CHRISTI, Texas – A 49-year-old Falfurrias man has pleaded guilty to escaping from federal custody, announced U.S. Attorney Jennifer B. Lowery.
Juan Luis Cruz admitted he knowingly left federal custody without permission.
Cruz had previously pleaded guilty to conspiracy to transport undocumented aliens. On Feb. 19. 2019, he was ordered to serve 40 months of imprisonment and three years of federal supervised release. He was transferred to a halfway house Sept. 1, 2021, to complete the sentence.
Upon being transported to the halfway house in Corpus Christ, Cruz absconded by walking away from the facility without permission and did not return. Authorities located him Dec. 22.
U.S. District Judge Nelva Gonzales Ramos will impose sentencing June 8. At that time, Cruz faces up to five more years in federal prison.
He has been and will remain in custody pending that hearing.
U.S. Marshals Service conducted the investigation. Assistant U.S. Attorney John Marck is prosecuting the case.
Previously Deported Alien Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 2, 2022, Genrry Estuardo Lopez-Ramirez a/k/a Alex Ariel Lopez-Morales, a/k/a Henry Lopez-Ramirez, age 22, was indicted by a federal grand jury for illegal re-entry into the United States by a previously deported alien.
According to United States Attorney John C. Gurganus, Lopez-Ramirez was previously deported from the United States to Mexico in March 2019. He is alleged to have illegally reentered the United States again sometime after March 2019. He was found in the United States in Franklin County, Pennsylvania, after an August 2, 2021, arrest by a Chambersburg police officer, on charges which eventually led to a conviction for DUI: Controlled Substance.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Assistant United States Attorney Joanne M. Sanderson is prosecuting the case.
If convicted, Lopez-Ramirez faces a maximum penalty of 2 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 are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
# # #
Portland Man Pleads Guilty to Drug and Gun ChargesRead the Press Release
PORTLAND, Maine: A Portland man pleaded guilty in federal court today to drug trafficking and firearm charges, U.S. Attorney Darcie N. McElwee announced.
According to court records, on January 31, 2020, Hunter York, 23, distributed a mixture of cocaine and fentanyl to a Saco resident. The resident overdosed on the drugs obtained from York and died. On February 5, 2020, Portland police conducted a traffic stop of a vehicle York was driving. A search of the vehicle resulted in the recovery of MDMA, fentanyl and a firearm. A search of York’s Portland apartment resulted in the recovery of over 800 additional grams of fentanyl and two firearms.
York faces a 15-year mandatory minimum prison sentence and maximum prison term of life. He also faces a $10,000,000 fine and a supervised release term of up to life. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This was a joint investigation involving the Portland, Biddeford, and Saco Police Departments; the Maine Drug Enforcement Agency; the U.S. Drug Enforcement Administration; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
# # #
Pike Road Man Sentenced for Conspiring to Distribute MethamphetamineRead the Press Release
Montgomery, Alabama – On March 1, 2022, Jermaine Mizell Jones, a 38-year-old man from Pike Road, Alabama, was sentenced to 188 months in prison for conspiracy to distribute a controlled substance, announced U.S. Attorney Sandra J. Stewart. In addition to his prison sentence, Jones was ordered to serve five years of supervised release. There is no parole in the federal system.
According to court records, in November of 2018, agents with the Central Alabama Drug Task Force initiated a traffic stop on a vehicle driving in Elmore County. When agents approached, they requested that both the driver and passenger step outside of the vehicle. Once out of the car, agents could see a suspicious bulge in the passenger’s clothing, which turned out to be approximately 83 grams of crystal methamphetamine. The passenger stated that the drugs belonged to the driver, who agents identified as Jermaine Mizell Jones. Both Jones and the passenger were arrested. Jones told law enforcement that he was staying at a hotel in Montgomery and consented to a search of his room. Agents went to the hotel and found a vehicle parked outside Jones’ room that corresponded to a key found in his pocket at the time of arrest. Inside the vehicle, they found another 362 grams of crystal meth. Jones eventually admitted that both the meth found on the passenger and in the vehicle belonged to him.
At the time of the November 2018 arrest, Jones was serving a term of supervised release from a 2016 conviction for federal drug and gun violations. Jones had received and served a 26-month sentence for those previous charges.
Jones was indicted by a federal grand jury for conspiracy to distribute a controlled substance on July 14, 2021. He pleaded guilty to that charge on September 20, 2021.
The Central Alabama Drug Task Force, the Elmore County Sheriff’s Office, the United States Postal Inspection Service, and the Drug Enforcement Administration (DEA) investigated this case. Assistant United States Attorney Brandon Bates prosecuted the case.
Pacific Junction Man Sentenced to over 33 Years in Prison for Offenses Related to 2003 Sexual AssaultsRead the Press Release
COUNCIL BLUFFS, IA – Myron Lee Brandon, age 43, of Pacific Junction, was sentenced yesterday in federal court to 405 months in prison for two counts of Kidnapping and two counts of Transportation of a Minor. His term of imprisonment will be followed by 10 years of supervised release. According to court documents, a jury found Brandon guilty of the charges on October 6, 2021.
According to evidence presented at trial, on June 21, 2003, Brandon was in downtown Omaha and offered two girls, one fourteen and one fifteen years old, a ride. Brandon drove them to a remote location near Pacific Junction. Brandon then brandished a knife, tied the two girls with a rope, and sexually assaulted them. Brandon then burned the victims on their breasts with a cigarette. The girls escaped from Brandon when he retrieved a can of gasoline from the bed of the truck. The victims ran to Interstate 29 and were picked up by two individuals who assisted the girls. The initial police investigation did not locate a suspect, but the victims’ sexual assault kits were stored in evidence.
In 2015, the Iowa Attorney General’s Office implemented the Sexual Assault Initiative, a program that submitted unsolved sexual assault kits to a laboratory to identify any DNA evidence. Following DNA testing, Brandon was identified as a suspect in this matter.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Pottawattamie County Sheriff’s Department, Council Bluffs Police Department, and Omaha Police Department, with assistance from the Iowa Division of Criminal Investigation, Federal Bureau of Investigation, Iowa Attorney General’s Office, and the Nebraska Attorney General’s Office.
Orange Park Man Indicted for Pointing Laser at Coast Guard HelicopterRead the Press Release
Jacksonville, Florida– United States Attorney Roger B. Handberg announces the return of an indictment charging Justin Marland Fisher (41, Orange Park) with knowingly aiming a laser at an aircraft. If convicted, Fisher faces a maximum penalty of five years in federal prison.
According to the indictment, on September 1, 2021, Fisher knowingly aimed the beam of a laser pointer at a United States Coast Guard helicopter while it was conducting a training mission in Green Cove Springs, Florida.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
According to the Federal Aviation Administration (FAA), dangerous laser strikes topped all previous records in 2021. The FAA received 9,723 reports from pilots last year, a 41 percent increase over 2020. Laser strikes on aircraft remain a serious threat to aviation safety. Intentionally aiming lasers at aircrafts poses a safety threat to pilots and violates federal law. Many high-powered lasers can incapacitate pilots flying aircraft that may be carrying hundreds of passengers. Please visit https://www.faa.gov/about/initiatives/lasers/laws for additional information.
This case was investigated by the Coast Guard Investigative Service. It will be prosecuted by Assistant United States Attorney John Cannizzaro.
Northwest Arkansas Couple Sentenced to over 18 Years Combined in Federal Prison for Drug TraffickingRead the Press Release
FAYETTEVILLE – A Northwest Arkansas couple has been sentenced to federal prison for drug trafficking. The Honorable Judge Timothy L. Brooks presided over the sentencing hearings for the United States District Court in Fayetteville.
On or about November 7, 2020, detective with the 4th Judicial District Drug Task Force ("DTF") were notified that a package suspected of containing narcotics had been identified at a local Fed Ex package sorting facility. The label on the package showed it had been sent from Jeanette Mayor from Brawley, California to Brandon Hale at an address in Fayetteville, Arkansas.
Detectives, working in an undercover capacity, delivered the package to Hale’s Fayetteville address. At the residence, undercover officers were greeted at the door by Mayor, who acknowledged that Hale was her boyfriend and that they were expecting a package. Hale subsequently came to the door at the request of undercover officer and accepted the package. Immediately thereafter, detectives identified themselves and conducted a search of the residence, which resulted in the confiscation of approximately 2000 gross grams of methamphetamine and drug paraphernalia.
Brandon Ray Hale, age 42, of Fayetteville, was sentenced on March 1, 2022, to 180 months in prison followed by five years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Due to the nature of Hale’s prior felony convictions, he was sentenced as a Career Offender.
Jeanette Marie Mayor, age 50, of Springdale, was sentenced on February 24, 2022, to 46 months in prison followed by three years of supervised release on one count of Aiding and Abetting in the Distribution of More Than 50 grams of a Mixture or Substance Containing a Detectable Amount of Methamphetamine.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The 4th Judicial District Drug Task Force investigated the case.
Assistant U.S. Attorney Dustin Roberts prosecuted the case for the United States.
North Carolina Man Sentenced for Multi-State Sex Trafficking of a ChildRead the Press Release
NEWPORT NEWS, Va. – A Charlotte, North Carolina, man was sentenced today to 18 years in prison for sex trafficking an Ohio child in numerous states, including Virginia.
According to court documents, in November 2020, Anthony Jermaine Foman, 26, persuaded a 14-year old minor from Ohio on social media to join him and travel to various states to engage in prostitution with promises that he would take care of her. Instead, he used drugs and violence to force her to continue prostituting herself in North Carolina, Florida, South Carolina, Delaware, Georgia, and Virginia. Foman also filmed his sexual encounters with the minor victim and transported this child pornography from South Carolina to Virginia. In December 2020, the child was found in Hampton with Foman and he was arrested shortly thereafter.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of Homeland Security Investigations (HSI) Washington, D.C.; and Mark Talbot, Chief of Hampton Police, made the announcement after sentencing by U.S. District Judge Roderick C. Young.
Assistant U.S. Attorney Lisa McKeel prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:21-cr-28.
Norfolk Man Sentenced for Firearms, Fraud, and Identity TheftRead the Press Release
NORFOLK, Va. – A Norfolk man was sentenced today to 124 months in prison for possessing at least nine illegal firearms, committing credit union fraud in an attempt to gain more than $120,000, and causing financial harm to approximately 34 identity theft victims.
According to court documents, Damarco Antonio Smith, 24, is a documented gang member. From in or around 2018 through March 2020, he conspired with at least three fellow gang members to commit bank fraud in Norfolk and on the Peninsula by negotiating stolen and counterfeit checks. He and his co-conspirators recruited people with bank accounts, stole and deposited checks into those accounts, and quickly withdrew or transferred the funds before the accounts were frozen. Smith also stole credit cards and other personal information, which he used to clone fraudulent debit and credit cards. While executing search warrants at two residences, investigators recovered dozens of stolen, fraudulent, and blank credit, debit, and gift cards, along with access device-making equipment like credit card readers, encoders, printers, and laptops.
During roughly the same period as Smith’s fraud offenses, he was caught with at least nine illegal handguns, including weapons with large-capacity magazines. Of these handguns, he purchased at least four from federally licensed gun stores by lying about not being an unlawful user of controlled substances. Smith similarly lied on his application for a concealed weapons permit.
On March 29, 2020, Smith participated in a gunfight where one of his associates was shot in the back and paralyzed. He and his fellow gang members drove the injured party to the hospital, dropped him at the emergency room, and tried to speed off. They were stopped by police who recovered two firearms from the vehicle, including one belonging to Smith.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; Raymond Villanueva, Special Agent in Charge of Homeland Security Investigations (HSI) Washington, D.C.; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Greg L. Torbenson, Acting Inspector in Charge of the U.S. Postal Inspection Service’s Washington Division; Larry D. Boone, Chief of Norfolk Police; Paul Neudigate, Chief of Virginia Beach Police; and Stephen R. Drew, Chief of Newport News Police, made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen.
Assistant U.S. Attorneys William Jackson and D. Mack Coleman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-83.