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7 April 2022
Harrisburg Man Sentenced to 15 Years’ Imprisonment for Firearms OffenseRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Alfred Stewart, age 38, of Harrisburg, Pennsylvania, was sentenced on April 6, 2022, to 15 years’ imprisonment by United States District Court Judge Jennifer P. Wilson for possession of a firearm as an Armed Career Criminal.
According to United States Attorney John C. Gurganus, Stewart was previously convicted by a jury in October 2021, of being a felon in possession of a firearm. The United States Marshal Service arrested Stewart on March 27, 2019, for violating his federal supervised release. When they tried to arrest Stewart, he climbed out onto the roof of the Harrisburg home with a gun in his hand. Stewart tried to hide the gun from police by putting it down the chimney of the home. Police arrested Stewart and searched the chimney flue in the basement and found the gun.
Stewart had previously served approximately 8 years in federal prison for drug trafficking. He had two prior convictions for drug trafficking in 2002 in state court. Judge Wilson also sentenced Stewart to two years in prison for violating the conditions of his supervised release. Stewart must serve the two year sentence consecutively to his 15-year sentence.
The case was investigated by the U.S. Bureau of Alcohol Tobacco Firearms and Explosives (ATF), the U.S. Marshal Service, and the Harrisburg City Police Department. Assistant U.S. Attorney Michael A. Consiglio prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Gloucester County Man Charged with Filing False Tax ReturnsRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man was arrested by federal agents today on charges of filing false claims against the IRS, U.S. Attorney Philip R. Sellinger announced.
Christian L. Whittaker, 41, of Williamstown, New Jersey, is charged by indictment with making false claims against the IRS. He is scheduled to appear today before U.S. Magistrate Judge Matthew J. Skahill in Camden federal court.
According to documents filed in this case and statements made in court:
Whittaker knowingly and willfully prepared, electronically signed, and filed with the IRS false U.S. Individual Income Tax Returns (Forms 1040) for the tax years 2016, 2017, 2018, and 2019. Whittaker knew the information contained in the returns was not true and correct as to every material matter. He used fraudulent income amounts and business losses to prepare the returns, which resulted in $372,278 in federal refunds being paid to or on behalf of Whittaker.
In addition to filings with the IRS, Whittaker prepared, signed, and filed with the New Jersey Department of Treasury false state tax returns for the tax years 2016, 2017, 2018, and 2019, with fictitious income, expenses, and withholdings, which would have paid Whittaker $49,208 in state refunds for tax years 2016 through 2019. However, the New Jersey Department of Treasury did not pay out any refunds to Whittaker for the tax years under investigation.
The charges each carry a maximum penalty of five years in prison.
U.S. Attorney Sellinger credited special agents of the IRS, under the direction of Michael Montanez, with the investigation leading to today’s arrest.
The government is represented by Special Assistant U.S. Attorney John Crockett of the U.S. Attorney’s Office in Camden.
Georgia Man Sentenced to 360 Months for Conspiracy to Distribute Methamphetamine and Firearm OffensesRead the Press Release
LONDON, Ky. – Quinton Hall, 36, of Ellenwood, Georgia was sentenced to 360 months in federal prison on Thursday, by U.S. District Judge Robert E. Wier. Hall was previously convicted by a federal jury of conspiracy to distribute aggravated amounts of methamphetamine throughout Whitley, Laurel, and Knox Counties and of using a firearm in furtherance of his drug trafficking enterprise.
The evidence at trial established that Hall traveled from Atlanta, into Corbin, Kentucky, to distribute methamphetamine. Hall supplied several different methamphetamine dealers in Whitley, Knox, and Laurel Counties. Records established Hall moved drug proceeds through Western Union wire transfers, Green Dot cards, and MoneyGram. Four eyewitnesses testified that Hall was armed when dealing the drugs. According to testimony at trial, Hall engaged in violent debt collection tactics, including assaulting co-conspirators with firearms. On January 24, 2020, the Henry County Sheriff’s Office’s Gang Suppression and Vice Unit (GSVU) executed a warrant at Hall’s Georgia residence. There, officers seized a Sig Sauer p250, Taurus GZC 9mm, Taurus Judge pistol, Keltec subgun 2000 rifle, Aero Precision X15 rifle, and Radom Pioneer Arms Hellpup. Hall attempted to flee by climbing up into the attic of the residence.
Hall was indicted in May 2020, along with eleven co-conspirators, all of whom have also been convicted. The case ultimately involved the seizure of 13 firearms, over $10,000 in U.S. Currency, and a substantial amount of methamphetamine. The conspiracy involved the following sentences:
- Tramone Horne, 36, of Buffalo, New York, was sentenced to 270 months on August 1, 2021.
- Angelia Hammons, 47, of Corbin, sentenced to 68 months on October 29, 2021.
- Larry Tyler Hammons, 25, of Corbin, was sentenced to 40 months on July 20, 2021.
- Glennis Reed Nantz, 49, of Woodbine, Kentucky, was sentenced to 156 months on October 20, 2021.
- Alexander Lebeau, 27, of London, was sentenced to 74 months on May 21, 2021.
- Krysten Powell, 27, of Corbin, was sentenced to 58 months on July 14, 2021.
- Johnathon Ray Proffitt, 29, of London, was sentenced to 75 months on December 2, 2020.
- Larry Elkins, 39, of Calhoun, Georgia, was sentenced to 95 months on August 3, 2021.
- Jennifer Folgman, 41, of Corbin, was sentenced to 86.5 months on January 11, 2021.
- Glennis Kody Nantz, 26, of Corbin, was sentenced to 140 months on October 20, 2021.
Hall was found guilty after a weeklong jury trial, on July 1, 2021.
Under federal law, Hall must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for five years, after his release from prison. Hall was also ordered to pay a $30,000 fine.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge ATF; and Rusty Hedrick, Chief of the Corbin Police Department, jointly made the announcement.
The investigation was conducted by the ATF and Corbin Police Department, with assistance from Georgia’s Henry County Sheriff’s Office. The United States was represented in the case by Assistant U.S. Attorney Jenna E. Reed.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Georgia Cocaine Trafficker and Money Launderer Is Sentenced to 30 Years in Federal PrisonRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell handed down a 30-year sentence to the leader of a drug and money laundering organization operating across the Carolinas, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, U.S. District Judge Kenneth D. Bell ordered Jared Shemaiah Jones, 39, of Alpharetta, Georgia, to serve five years of supervised release.
U.S. Attorney King is joined in making this announcement by Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte; Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina; and Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI).
According to filed documents and court proceedings, between 2014 and September 2020, the drug conspiracy trafficked approximately 1,000 kilograms of cocaine from California into North Carolina and South Carolina and laundered the criminal proceeds. During the investigation, law enforcement seized 30 kilograms of cocaine, one kilogram of heroin, and approximately $500,000 in cash. Jones previously pleaded guilty to conspiracy to distribute and to possess with intent to distribute cocaine, money laundering conspiracy, and possession with intent to distribute cocaine.
In handing down Jones’s sentence, Judge Bell noted that, in addition to harming substance users, Jones also recruited several people into the conspiracy who, but for his influence, would have lived law-abiding lives.
Judge Bell previously sentenced Jones’s co-defendants as follows:
- Jasneko Marquell Wright, 35, of Newberry, S.C., was sentenced to 120 months in prison, followed by five years of supervised release, for conspiracy to distribute and to possess with intent to distribute cocaine and money laundering conspiracy.
- Joel Mark Walker, 36, of Columbia, S.C., was sentenced to 84 months in prison, followed by two years of supervised release, for money laundering conspiracy.
- Jarmel Brownlee, 31, of Charlotte, was sentenced to 60 months in prison followed by four years of supervised release for conspiracy to distribute and to possess with intent to distribute cocaine and money laundering conspiracy.
- Nathasha Lawes, 33, of Clover, S.C., was sentenced to 36 months in prison, followed by two years of supervised release, for conspiracy to distribute and to possess with intent to distribute cocaine and possession with intent to distribute cocaine.
- Phonesavanh Phonesavang, 39, of Charlotte, was sentenced to 36 months in prison, followed by three years of supervised release, for conspiracy to distribute and to possess with intent to distribute cocaine and possession with intent to distribute cocaine.
- Marlaina Nashae Smoot, 27, of Newberry, S.C., was sentenced to 24 months in prison, followed by three years of supervised release, for conspiracy to distribute and to possess with intent to distribute cocaine.
- Judiet Vontella Cooper, 36, of Charlotte, was sentenced to a year and a day in prison followed by two years of supervised release, for conspiracy to distribute and to possess with intent to distribute cocaine, money laundering conspiracy, and possession with intent to distribute heroin.
- Marquita Andrea Hunter, 48, of Columbia, was sentenced to a year and a day in prison, followed by two years of supervised release, for conspiracy to distribute and to possess with intent to distribute cocaine.
Jervonta Antonio Walker, 39, of Los Angeles, California, has pleaded guilty to conspiracy to distribute and to possess with intent to distribute cocaine, money laundering conspiracy, and possession with intent to distribute cocaine, and is currently awaiting sentencing.
An additional defendant indicted in this case, Yannick Anderson, 26, of New York, is charged with conspiracy to distribute and to possess with intent to distribute cocaine, money laundering conspiracy, three counts of possession with intent to distribute cocaine, possession of firearm in furtherance of drug trafficking, and possession of firearm by felon, and remains a fugitive.
Today’s lengthy sentence stems from an investigation led by one of the Western District of North Carolina’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
In making today’s announcement, U.S. Attorney King thanked the DEA, USPIS, HSI, and IRS, as well as the U.S. Bureau of Alcohol Tobacco and Firearms (ATF), the National Insurance Crime Bureau, the Charlotte-Mecklenburg Police Department, the Rowan County Sheriff’s Office, the Rock Hill Police Department, the North Carolina Department of Motor Vehicles, the South Carolina Law Enforcement Division (SLED), the Lexington County, S.C., Sheriff’s Department, the Richland County, S.C., Sheriff’s Department, the York County, S.C., Sheriff’s Office, and the City of Columbia, S.C., Police Department for their investigative efforts.
Assistant United States Attorney Steven R. Kaufman, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Gang Member Involved in Bridgeport Courthouse Shooting Sentenced to More Than 15 Years in PrisonRead the Press Release
LAHEEM JONES, also known as “Heemie,” 27, of Bridgeport, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 190 months of imprisonment, followed by three years of supervised release, for his participation in gang-related drug trafficking and violence, including a shooting in front of a state courthouse in Bridgeport in January 2020.
Today’s announcement was made by Leonard C Boyle, United States Attorney for the District of Connecticut; Joseph T. Corradino, State’s Attorney for the Fairfield Judicial District; Bridgeport Acting Police Chief Rebeca Garcia; James Ferguson, Special Agent in Charge, ATF Boston Field Division; David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, and Acting U.S. Marshal Lawrence Bobnick.
According to court documents and statements made in court, the FBI, ATF, DEA, U.S. Marshals Service and Bridgeport Police have been investigating multiple Bridgeport-based gangs whose members are involved in narcotics trafficking, murder and other acts of violence. Jones was a founding member of the “Greene Homes Boyz” (“GHB/Hotz”), a gang based in the Charles F. Greene Homes Housing Complex in Bridgeport’s North End, whose members and associates distributed heroin, crack cocaine, marijuana and Percocet pills; committed numerous acts of violence against rival gang members and other individuals, and celebrated their criminal conduct on social media websites such as Facebook and YouTube. GHB/Hotz members and associates also committed acts of intimidation and made threats to deter potential witnesses to their crimes and to protect gang members and associates from detection and prosecution by law enforcement authorities. From approximately 2017 until August 2020, GHB/Hotz members were aligned with members of the “Original North End” (“O.N.E.”), a gang based in the Trumbull Gardens area of Bridgeport, against rival groups in Bridgeport, including the East End, East Side and PT Barnum gangs, as well as 150, which is a geographic gang based on the West Side of Bridgeport.
Jones and others attempted to kill members and associates of the East End gang in a brazen afternoon shooting in front of a Bridgeport courthouse on January 27, 2020. At 12:11 p.m. on that date, Bridgeport Police responded to the area of 172 Golden Hill Street in Bridgeport after a Shot Spotter activation detected approximately 20 shots being fired in front of the state courthouse located there. Upon arrival, investigators discovered that four victims had been shot while sitting inside a black Chevrolet Impala. One victim was shot in the side of his chest and was left paralyzed and a second victim sustained multiple gunshot wounds to his back, shoulder and wrist. The victims’ vehicle had approximately 23 entry bullet holes in the driver’s side and windshield area.
Jones and others attempted to destroy a vehicle used during the shooting by setting is on fire in Naugatuck after the shooting.
Jones also appears in YouTube videos and in social media posts, where firearms are present, promoting the gang.
Jones has been detained since August 6, 2020. On November 19, 2021, he pleaded guilty to one count of conspiracy to engage in a pattern of racketeering activity, and one count of attempted murder and aiding and abetting, in violation of the Violent Crimes in Aid of Racketeering (“VCAR”) statute.
This investigation is being conducted by ATF, the FBI’s Safe Streets and Violent Crimes Task Forces, DEA, U.S. Marshals Service, Bridgeport Police Department, Connecticut State Police and the Bridgeport State’s Attorney’s Office, with the assistance of the U.S. Postal Inspection Service, Connecticut Forensic Science Laboratory and the Stratford and Naugatuck Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Jocelyn C. Kaoutzanis, Rahul Kale, Stephanie T. Levick and Karen L. Peck.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN), Project Longevity and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. If a group member elects to engage in gun violence, the focused attention of federal, state and local law enforcement will be directed at that entire group.
OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Former State Employee Sentenced to Two Years in Prison for Role in $2 Million Scheme to Defraud the Office of AIDSRead the Press Release
SACRAMENTO, Calif. — Christine M. Iwamoto, 48, of Sacramento, was sentenced today to two years in prison and ordered to pay $481,200 in restitution for wire fraud and conspiracy to commit money laundering in relation to a scheme to divert funds from the California Department of Public Health, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Iwamoto was employed by the Office of AIDS within the California Department of Public Health until March 2018. The Office of AIDS is responsible for working on behalf of the State of California to combat the HIV and AIDS epidemic.
Between December 2017 and November 2018, Iwamoto participated in a scheme that was coordinated by Schenelle Flores, also employed at the Office of AIDS, to defraud the Office of AIDS. Flores, Iwamoto, other participants in the scheme, and their families and friends obtained at least $2 million in personal benefits, including cash and purchased items.
According to court documents, as part of the scheme, Flores directed a state contractor to make payments allegedly on behalf of the Office of AIDS and caused the contractor to charge those payments to the state. Flores caused the contractor to pay for personal expenses on its debit cards, order gift cards for personal use, and pay false invoices to shell companies for services allegedly provided to the Office of AIDS.
According to court documents, Iwamoto set up a shell company and coordinated with Flores to submit invoices to the state contractor. Those invoices falsely claimed that Iwamoto’s company had provided various consulting and meeting facilitation services to the Office of AIDS. Iwamoto received $450,000 in payments as a result of the invoices. Iwamoto then gave thousands of dollars in cash and blank checks to another employee of the Office of AIDS who was participating in the scheme. Iwamoto also participated in obtaining the gift cards from the state contractor and received hundreds of the gift cards for her personal use.
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the California Department of Public Health and the California Highway Patrol. Assistant U.S. Attorneys Miriam R. Hinman and Christopher S. Hales are prosecuting the case.
On March 3, 2022, Flores was sentenced to 70 months in prison and ordered to pay over $2 million in restitution in a related case, United States v. Flores, 2:21-cr-025 TLN.
Former President and Employee of Auto Parts Manufacturing Company Sentenced for Conspiring to Defraud the United StatesRead the Press Release
DETROIT - The former president and a former employee of H/A Industries, Inc., located in Sterling Heights, Michigan, were sentenced today on charges they conspired to defraud the United States by failing to report income on their federal tax returns, United States Attorney Dawn N. Ison announced. They pleaded guilty to the charges in November 2021 before U.S. District Judge Stephen J. Murphy, III.
Ison was joined in the announcement by Sarah Kull, Special Agent in Charge of the Internal Revenue Service Criminal Investigation Division.
Sentenced by Judge Murphy were Gordon J. Pesola, 60, of Oakland Township, and Kenneth R. Sanborn, 78, of Grosse Pointe Park. Pesola received a sentence of 21 months in prison and a $10,000 fine and was ordered to pay restitution to the United States in the amount of $1,004,000. Sanborn received a sentence of one year of home confinement and a $10,000 fine and was ordered to pay restitution to the United States in the amount of $1,004,000, jointly and severally with Pesola.
According to court records, Pesola was the president of H/A Industries, Inc., a company that designed and assembled systems used to manufacture component parts, mostly for the automotive industry. Sanborn was an employee of H/A Industries. From 2009 through 2013, Pesola transferred H/A Industries funds to himself, Sanborn, and a third conspirator through the use of shell companies, most of which were established in the British Virgin Islands. By using the shell companies, the defendants were able to make the transfer of H/A Industries funds appear to be payments by H/A Industries to its suppliers and contractors when in fact they used the funds for their own personal benefit and the personal benefit of their families. Neither Pesola nor Sanborn reported that income on their federal income tax returns. The total income not reported to the IRS by the Pesola, Sanborn, and the third conspirator was approximately $3,375,000. The income tax loss to the government was approximately $1,004,000. The third conspirator passed away in 2015.
The investigation of this case was conducted by the Internal Revenue Service – Criminal Investigation, and it was prosecuted by Assistant U.S. Attorney Stephen Hiyama
Former Doctor Sentenced to 78 Months for Drug Offenses Arising from Tabor City Pill MillRead the Press Release
NEW BERN, N.C. – A former doctor who operated a “pill mill” in Columbus County, where he improperly prescribed opioids and other controlled substances was sentenced today to 78 months in prison for unlawfully distributing Oxycodone, Hydrocodone, Methadone, and Marijuana.
According to court documents, John Whan Kim, 75, and co-defendant Tammy Thompson, were charged with violating federal drug trafficking laws in a Second Superseding Indictment. The co-defendant, Thompson, pled guilty to multiple counts and is scheduled to be sentenced later this year. On December 28, 2021, Kim pled guilty to Conspiracy to Unlawfully Distribute a Quantity of Oxycodone, Hydrocodone, Methadone, and Marijuana, in violation of 21 U.S.C. §846, multiple counts of Unlawful Dispensation and Distribution of Oxycodone, in violation of 21 U.S.C. §841(a)(1), and Distribution of Marijuana and Aiding and Abetting, in violation of 21 U.S.C. §841(a)(1) and 18 U.S.C. §2. Kim was also required to surrender all medical licenses and is prohibited from ever practicing medicine again.
In March of 2017, Kim was forced to resign from the medical practice where he was previously employed due to concerns over his prescribing practices, particularly opioids. Kim proceeded to establish his own clinic in Tabor City, NC and from October 2017 to June 28, 2018, Kim unlawfully and improperly prescribed opioids and other controlled substances to “patients” who paid $200 cash at each appointment. The investigation revealed that Kim often failed to meet the basic standards of legitimate medical care. Kim wrote controlled substance prescriptions to virtually every patient he saw, often despite not having a patient’s prior medical records, not conducting a real physical examination or considering alternative treatments, and often despite having evidence of patient misuse and diversion.
Word of Kim’s willingness to improperly prescribe controlled substances spread quickly and people came from across Eastern North Carolina, and even other states to get prescriptions from Kim. The volume of patients and associated activity that often took place in the parking lot of Kim’s clinic created safety concerns for the adjacent Tabor City Elementary School, which was forced to restrict outdoor activities for students until a privacy fence was constructed. In January 2018, a confidential source began conducting a series of controlled purchases from Kim and Thompson, which were audio and video recorded. On June 29, 2018, search warrants were executed at Kim’s clinic and residence and Kim and Thompson were arrested. A medical expert who reviewed Kim’s records found no evidence that Kim was providing real medical care and concluded that Kim was merely exchanging prescriptions for money.
“The defendant abused his position as a doctor to illegally distribute opioids, jeopardizing the safety of the community and the school adjacent to his office,” said Michael Easley, U.S. Attorney for the Eastern District of North Carolina. “My office will continue to collaborate with law enforcement at all levels to dismantle criminal organizations that are contributing to the drug problems in eastern North Carolina.”
“When Dr. Kim dispensed nearly 2 million doses of addictive prescription medications under the guise of a doctor’s care, it was not about the good of the community or an individual’s specific health needs – it was about his selfishness and greed,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “DEA and its law enforcement partners will continue to stem the tide against the growing opioid epidemic. Dr. Kim will now serve a lengthy sentence in federal prison.”
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Drug Enforcement Administration’s Charlotte Tactical Diversion Squad, Columbus County Sheriff’s Office, and the North Carolina State Bureau of Investigation, DECU investigated the case and Assistant U.S. Attorneys Nick Miller, Bryan Stephany and Tim Severo prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:18-CR-00200-FL.
Former Deputy Sheriff Pleads Guilty to Making False StatementRead the Press Release
NEW ORLEANS - U.S. Attorney Duane A. Evans announced that, on April 6, 2022, TIANNA HART, age 32, of LaPlace pled guilty to making a false statement to the United States Small Business Administration, in violation of Title 18, United States Code, Section 1001(a)(2). In pleading guilty to Count 1 of the bill of information, the defendant faces a maximum sentence of five years, up to three years of supervised release, a restitution order, a fine of up to $250,000.00, and a mandatory special assessment fee of $100.
As part of the plea, HART admitted to submitting false information in order to obtain a $20,832.00 Payroll Protection Program (PPP) loan from the United States Small Business Administration. HART falsely attested that she was the owner/sole proprietor of a nail salon that was started on January 1, 2018. In truth, the business was owned by a third party and was not formed until on or about March 26, 2021.
Sentencing in this matter is scheduled for July 13, 2022, before United States District Judge Lance M. Africk.
U.S. Attorney Evans praised the work of the United States Secret Service and the St. John’s Parish Sheriff’s Office. Assistant United States Attorney Andre J. Lagarde is in charge of the prosecution.
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.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
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Former Congressional Staffer Pleads Guilty to Theft of Public FundsRead the Press Release
A former Congressional staffer pleaded guilty today to theft of public funds in connection with his scheme to fraudulently inflate his salary and bonus payments, thereby paying himself more than he was legitimately owed.
According to court documents, Sterling Carter, 24, of Glenwood, Georgia, was employed as the Director of Operations by a Member of Congress. In that position, Carter was responsible for managing the office’s budget and processing payroll and bonus payments for all employees in the office. Between November 2019 and January 2021, Carter submitted fraudulent paperwork which purported to authorize a higher salary and bonus payments for himself. Carter concealed this theft from the Congressperson and the office’s Chief of Staff by falsely representing, in both communications and a budget spreadsheet, that he was only being paid what he was legitimately owed. In total, Carter received $79,491.67 in unauthorized salary and bonus payments.
Carter pleaded guilty in the U.S. District Court for the District of Columbia to theft of public funds. Carter will be sentenced on July 28 and faces up to 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Matthew M. Graves for the District of Columbia; and Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement.
The FBI investigated this matter. Trial Attorneys Nicole Lockhart and Jordan Dickson of the Criminal Division’s Public Integrity Section and the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.
Former Congressional Staffer Pleads Guilty to Theft of Public FundsRead the Press Release
WASHINGTON – A former Congressional staffer pleaded guilty today to theft of public funds in connection with his scheme to fraudulently inflate his salary and bonus payments, thereby paying himself more than he was legitimately owed.
According to court documents, Sterling Carter, 24, of Glenwood, Georgia, was employed as the Director of Operations by a Member of Congress. In that position, Carter was responsible for managing the office’s budget and processing payroll and bonus payments for all employees in the office. Between November 2019 and January 2021, Carter submitted fraudulent paperwork which purported to authorize a higher salary and bonus payments for himself. Carter concealed this theft from the Congressperson and the office’s Chief of Staff by falsely representing, in both communications and a budget spreadsheet, that he was only being paid what he was legitimately owed. In total, Carter received $79,491.67 in unauthorized salary and bonus payments.
Carter pleaded guilty in the U.S. District Court for the District of Columbia to theft of public funds. Carter will be sentenced on July 28, 2022. He faces up to 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Matthew M. Graves for the District of Columbia, and Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement.
The FBI investigated this matter. Trial Attorneys Nicole Lockhart and Jordan Dickson of the Criminal Division’s Public Integrity Section and the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.
Former Associate Director Admits Embezzling Hundreds of Thousands of Dollars from Global Maritime Service Group and Tax ChargeRead the Press Release
NEWARK, N.J. – A former associate director of a global maritime service group today admitted embezzling hundreds of thousands of dollars and to failing to collect, account for, and pay over hundreds of thousands in federal payroll taxes, U.S. Attorney Philip R. Sellinger announced.
David Buckingham, 38, of Chatham, New Jersey, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to a superseding information charging him with one count of wire fraud and one count of failure to collect, account for, and pay over federal payroll taxes. Buckingham was originally charged by indictment in December 2019 with five counts of wire fraud.
According to documents filed in this case and statements made in court:
Buckingham held the title of associate director and head of the New York office of a global maritime service group headquartered in London, England. From 2016 through 2018, Buckingham used his position and access to the company’s bank accounts to embezzle hundreds of thousands of dollars by writing checks to himself or to “cash.” Buckingham falsified the company’s books and records in an effort to make the payments appear to be legitimate business expenses and to cover up his fraud. From in or around February 2016 to October 2018, Buckingham also willfully failed to account for and pay over to the IRS payroll taxes for the employees of the company in the amount of $277,051.
The wire fraud count carries a potential maximum penalty of 20 years in prison and a $250,000 fine. The tax count carries a potential maximum penalty of five years in prison and a $10,000 fine. Sentencing is scheduled for Sept. 14, 2022.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Damon Wood, Philadelphia Division, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jonathan Fayer of the U.S. Attorney’s Office Economic Crimes Unit.
Former Air Force Officer Sentenced to More Than Five Years in Prison for Theft of Government Property and Bankruptcy FraudRead the Press Release
MOBILE, AL – A Maine man was sentenced to 63 months in prison for theft of government property and bankruptcy fraud.
According to court documents, Brandon LeRoss Bailey, 43, of Holden, Maine, stole $818,918.36 from the U.S. Air Force over a more than six-year period. Bailey, a former Major in the Air Force, was dismissed from the military in 2010 after being convicted of several drug and theft offenses at a general court martial. Due to an administrative error, however, Bailey was mistakenly kept on the Air Force’s payroll from October 2010 to March 2017.
Rather than notify the Air Force of the error, Bailey took advantage of the mistake and continued to receive unearned Air Force payroll checks and periodic healthcare at military treatment facilities. At various times, he accessed his former Air Force MyPay account, an online personnel page, to obtain annual W 2s and monthly payroll statements. Bailey periodically used these documents to falsely represent his income and employment status to different entities, including but not limited to the Social Security Administration and the U.S. Department of Agriculture, for personal financial gain. Bailey also falsely portrayed himself publicly as an active-duty Air Force member and relied on Air Force documents to open bank accounts and obtain loans, credit cards, and other items of value that he was not lawfully entitled to receive.
In February 2019, Bailey filed for bankruptcy in the Southern District of Alabama. In connection with his bankruptcy case, Bailey knowingly and fraudulently concealed certain property from the bankruptcy administrator. The concealed property included tens of thousands of dollars in rental property income, consulting and teaching income from a private university in Alabama, and income from Disabled American Veterans.
United States Attorney Sean P. Costello said, “This defendant’s selfish theft of taxpayer money is the antithesis of the honor and integrity shown by those who serve our country. We will continue to work with our law enforcement partners to hold accountable whose who take advantage of the armed forces and the taxpayers.”Paul W. Brown, Special Agent in Charge of the Mobile Division of the FBI said, “Mr. Bailey’s criminal acts betrayed his oath of service to the Air Force and undermined our court system. The FBI will continue to work with our law enforcement partners to aggressively investigate and hold accountable those who commit similar crimes.”
“Mr. Bailey deceptively gained entitlement to Social Security Disability Insurance (SSDI) benefits, by manipulating and concealing material information. He not only defrauded SSA, but also improperly received other federal benefits intended for those who served our country with honor. His sentence reflects our commitment to protect Social Security benefits and to hold accountable those who misuse its programs,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I thank the Federal Bureau of Investigation and the Air Force Office of Special Investigations for their investigative efforts. I also thank the U.S. Attorney’s Office for prosecuting this case.”
Senior United States District Judge Callie V.S. Granade ordered Bailey to serve a three-year term of supervised release upon his release from prison, during which time he will undergo drug testing and treatment and will be subject to credit restrictions. The court did not impose a fine, but Judge Granade ordered Bailey to pay $1,454,623.28 in victim restitution and $200 in special assessments. The court also ordered that Bailey forfeit the property he obtained with the stolen funds, including a 4-bedroom house in Holden, Maine; 78 acres of real property in Butler, Alabama; and various investment and bank accounts.
The Federal Bureau of Investigation, the Social Security Administration Office of the Inspector General, and the Air Force Office of Special Investigations Detachment 405 investigated the case.
Assistant U.S. Attorneys Sinan Kalayoglu and Justin Roller prosecuted the case on behalf of the United States.
Florida Man Sentenced to Probation for Filing False Claims on U.S. Navy ContractsRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Raymond Lofthouse, age 59, of Florida, was sentenced on April 6, 2022, to one month of probation to be followed by 6 months of home confinement by U.S. District Court Judge Sylvia H. Rambo for filing false claims on Navy Contracts. Judge Rambo also ordered Lofthouse to pay $60,000 in restitution to the U.S. Navy.
According to U.S. Attorney John C. Gurganus, Lofthouse was awarded a contract for $60,000 to repair three electric motors for the U.S. Naval Supply Systems Command, in Mechanicsburg, PA. Lofthouse billed the Navy for the contract, knowing the work was not complete and then never completed the work.
"The Department of Defense (DoD) Office of the Inspector General's Defense Criminal Investigative Service (DCIS) prioritizes investigations involving contractors that submit false claims to the DoD for work that was not performed," stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “Today’s sentencing demonstrates our commitment to working with the Naval Criminal Investigative Service and the United States Attorney’s Office for the Middle District of Pennsylvania to hold individuals accountable for defrauding the DoD."
“Mr. Lofthouse jeopardized the safety of our Sailors and wasted valuable taxpayer money by falsely claiming that Soldiers Supply repaired three motors critical to supporting the Auxiliary Machine Cooling Water system used in the steam and electric propulsion plant on aircraft carriers,” said Special Agent in Charge Michael T. Wiest of the Northeast Field Office. “NCIS and our law enforcement partners remain committed to fully investigating allegations of procurement fraud that threaten the integrity of the Department of the Navy’s procurement process and degrade the Navy’s ability to project sea power necessary to promote regional stability, deter conflict, respond to crisis, and influence outcomes.”
The matter was investigated by the Naval Criminal Investigative Service and the Department of Defense Office of the Inspector General, Defense Criminal Investigative Service. Assistant U.S. Attorney Scott R. Ford prosecuted the case.
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Five Previously Deported Men Charged with Illegal Re-EntryRead the Press Release
HARRISBURG –The United States Attorney’s Office for the Middle District of Pennsylvania announced that on April 6, 2022, five previously deported aliens were indicted separately by a federal grand jury for illegal reentry into the United States. These matters arose in counties throughout the district including Franklin, Luzerne, Lackawanna, and York Counties.
According to United States Attorney John C. Gurganus, Luis Zavala-Cruz a/k/a Jose Luis Zavala-Palacios, age 49, was previously deported from the United States to Mexico in March 2010. He is alleged to have illegally reentered the United States again sometime after March 2010. He was found in the United States in York County, Pennsylvania, after an October 6, 2021, arrest which eventually led to an accident – damage to vehicle/property conviction.
Maynor Garcia-Gomez, age 27, was previously deported from the United States to Guatemala in May 2019. He is alleged to have illegally reentered the United States again sometime after May 2019. He was found in the United States in Franklin County, Pennsylvania, after being involved in a vehicle accident and charged with Driving Under the Influence.
Jose Melendez, age 34, was previously deported from the United States to Honduras 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 Lackawanna County, Pennsylvania, after a March 18, 2022, arrest by the Carbondale City Police on charges of endangering the welfare of a child.
Darwin Alexis Pasos-Santos, age 32, was removed from the United States to Honduras in August 2014. He is alleged to have illegally reentered the United States at some point after August 2014 after eluding examination or inspection by immigration officers. He was found in the United States in Lackawanna County, Pennsylvania on March 26, 2022, after having been arrested for driving under the influence.
Lazar Sava a/k/a Adrian Sandu, age 35, of Romania, departed the United States while an order of deportation was outstanding against him. He is alleged to have illegally reentered the United States. He was found in the United States in Luzerne County, Pennsylvania on April 26, 2019, after having been arrested in Maryland and extradited to Pennsylvania due to numerous active warrants for theft related offenses.
Zavala-Cruz, Garcia-Gomez, Melendez, Pasos-Santos and Sava all face a maximum penalty of 2 years of imprisonment, a term of supervised release following imprisonment, and a fine.
These matters were investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO) and are being prosecuted by Assistant United States Attorney Joanne M. Sanderson.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Federal Jury Finds Raleigh County Man Guilty of Attempting to Entice a Minor to Produce Child PornographyRead the Press Release
BLUEFIELD, W.Va. – After two days of trial, a federal jury convicted Kenneth Owens, 58, of Surveyor, today of attempted enticement of a West Virginia minor to engage in sexual activity.
Evidence at trial established that Owens attempted to entice a 15-year-old female relative to send him sexually explicit photos of herself from April 1, 2020 through Jan. 12, 2021. Owens provided the minor with cigarettes, vapes and alcohol in exchange for the images. Owens initially communicated with the minor female relative through Facebook, and then by cell phone.
Senior United States District Judge David A. Faber presided over the jury trial. Owens is scheduled to be sentenced on July 18, 2022, in Bluefield and faces a mandatory minimum of 10 years and up to life in prison.
“Bringing this case to trial and securing a guilty verdict underscores the commitment by this office and its many law enforcement partners to bring predators of children to justice,” United States Attorney Will Thompson said. “I commend the West Virginia State Police, the Beckley Police Department, and the Department of Homeland Security Investigations for their work in the case. I congratulate Assistant United States Attorneys Kristin Scott and Steve Loew along with the rest of our trial team for this successful prosecution.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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. 1:21-cr-236.
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Federal Inmate Sentenced to Ten Years for Brutal Prison AssaultRead the Press Release
CHARLESTON, SOUTH CAROLINA - George Junior Hall, 50, an inmate in the federal Bureau of Prisons, has been sentenced to 120 months in federal prison after a federal jury found him guilty in November 2021 of assault with a dangerous weapon with intent to cause injury and assault resulting in serious injuries.
At the time of the offense, Hall was an inmate finishing a sentence at the Federal Correctional Institution in Estill, South Carolina. Evidence presented to the jury, including graphic video footage, showed Hall attacking another inmate from behind with a prison weapon known as a “lock-in-a-sock,” a nylon belt attached to a metal combination lock slipped inside of a sock. Hall struck the victim in the back of the head and knocked him to the ground, then stood over him beating him repeatedly with the weapon until he fled. Prison officials found the victim bleeding in his cell after following a trail of blood from the scene of the attack. The victim survived but was hospitalized with numerous lacerations, a fractured skull, and a subarachnoid hemorrhage, and he suffered temporary hearing loss and permanent scarring.
Hall has a long history of violence, including a 1993 Florida conviction for aggravated battery arising from an incident where he shot his own brother. At the time of the prison assault, Hall was serving a twenty-year sentence on federal convictions for attempted murder and assault on a United States Postal carrier arising from a 1996 incident where he shot a mail carrier while attempting to steal welfare checks. Disciplinary records presented to the Court showed that Hall continued this pattern of violence while incarcerated, assaulting a cellmate with hot grits, striking a prison guard with a lock-in-a-sock, and trying to smother another inmate with a mattress, beating him, and biting off a part of his ear.
United States District Judge Richard M. Gergel granted the Government’s motion for an “upward departure,” increasing the sentencing guidelines to account for Hall’s history of violence while incarcerated. The Court observed that “[t]he record firmly establishes a persistent pattern of extreme violence over the entirety of [Hall’s] adult life.”
The case was investigated by the FBI with assistance from the United States Bureau of Prisons. Former Acting United States Attorney Rhett DeHart and Assistant United States Attorney Chris Schoen tried the case on behalf of the United States.
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Fairbanks Man Sentenced to 14 Years in PrisonRead the Press Release
FAIRBANKS – A Fairbanks man was sentenced yesterday to 14 years in prison followed by eight years of supervised release for distributing counterfeit pills containing fentanyl resulting in the death of another individual. In issuing the sentence, U.S. District Judge Ralph R. Beistline noted that the 21-year-old victim had his entire life ahead of him when he overdosed on the counterfeit pills.
According to court documents, Andre Ronell Brown, 48, distributed counterfeit pills made to resemble pharmaceutical grade 30 milligram Oxycodone Hydrochloride pills, but which actually contained an unknown amount of fentanyl. On October 26, 2020, Brown distributed two of these pills via a co-conspirator to J.L. in Fairbanks. Two days later, J.L. was discovered deceased as a result of a drug overdose. The Medical Examiner confirmed that the cause of J.L.’s death was fentanyl, which was contained in the pills that originated from Brown.
Brown’s alleged co-conspirators, Christopher Kearney, 27, and Ladarius Edwards, 27, were each previously sentenced to five-years in prison based on their sales of pills obtained from Brown, which caused two additional non-fatal drug overdoses. Brown’s additional co-conspirator, Winston Crockett, previously pleaded guilty and is awaiting sentencing.
“Distributing counterfeit Oxycodone pills is a particularly insidious crime because the consumer is misled about how potent or potentially lethal they are,” said U.S Attorney John E. Kuhn, Jr., District of Alaska. “When the pills are laced with fentanyl – as most are – the predictable outcome is a potentially deadly overdose. Traffickers like Brown are directly responsible for killing Alaskans, and my office and our law enforcement partners will do everything in our power to bring them to justice.”
The Drug Enforcement Administration, Federal Bureau of Investigation, Alaska State Troopers, Fairbanks Police Department and North Pole Police Department investigated the case.
Assistant U.S. Attorney Ryan Tansey prosecuted the case.
This case is part of Alaska’s High Intensity Drug Trafficking Area (HIDTA). HIDTA was established in 2018 to enhance and coordinate efforts among local state and federal law enforcement agencies, providing equipment, technology and additional resources to combat drug trafficking and its harmful consequences in critical regions of Alaska.
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Eleven Charged with Arranging Sham Marriages and Submitting Fraudulent "Green Cards" Applications for over 400 Non-CitizensRead the Press Release
BOSTON – Eleven California-based individuals have been indicted in connection with running a large-scale marriage fraud “agency” that allegedly arranged hundreds of sham marriages entered into for the primary purpose of circumventing immigration laws.
The following defendants were indicted today on conspiracy to commit marriage fraud and immigration document fraud:
- Marcialito Biol Benitez, a/k/a “Mars,” 48, a Philippine national residing in Los Angeles;
- Engilbert Ulan, a/k/a “Angel,” 39, a Philippine national residing in Los Angeles;
- Nino Reyes Valmeo, 45, a Philippine national residing in Los Angeles;
- Harold Poquita, 30, a Philippine national residing in Los Angeles;
- Juanita Pacson, 45, a Philippine national residing in Los Angeles;
- Felipe Capindo David, a/k/a “Pilipi” or “Peebles,” 49, a Philippine national residing in Los Angeles;
- Peterson Souza, 34, a Brazilian national residing in Anaheim, Calif.;
- Devon Hammer, 26, of Palmdale, Calif.;
- Tamia Duckett, 25, of Lancaster, Inglewood and Palmdale, Calif.;
- Karina Santos, 24, of Lancaster, Calif.; and
- Casey Loya, 33, of Lancaster and Palmdale, Calif.
Eight of the defendants, including Benitez, were arrested today in California. They will appear in federal court in the Central District of California today and appear in Boston at a later date.
According to the indictment, Benitez operated what he and others referred to as an “agency” that arranged hundreds of sham marriages between foreign national “clients” and United States citizens. One of those foreign national clients resided in Massachusetts. The agency then allegedly prepared and submitted false petitions, applications and other documents to substantiate the sham marriages and secure adjustment of clients’ immigration statuses for a fee of between $20,000 and $30,000 in cash.
“Marriage fraud is a serious crime that threatens the integrity of our nation’s lawful immigration system,” said United States Attorney Rachael S. Rollins. “These defendants’ alleged exploitation of this system for profit is an affront to our nation’s tradition of welcoming immigrants and prospective citizens. Their alleged fraudulent behavior makes things harder for the vast majority of immigrants who follow the law and respect our immigration system. Beyond that, by allegedly submitting false applications that claimed domestic abuse, these charged defendants did further harm, this time to real victims and survivors of domestic violence. Today’s arrests are the result of impressively comprehensive, cross-country agency collaboration. My office will continue to work with our law enforcement partners across the country to identify and hold accountable those who seek to violate U.S. law by fraud of any sort.”
“It is the utmost honor and privilege to become an American citizen, and the individuals we arrested today have allegedly made a sham of that process by running a large-scale marriage fraud “agency” that arranged hundreds of fake marriages for foreign nationals, racking up millions of dollars in profits. We believe their alleged scheme broke immigration laws that are in place to protect public safety and created a disadvantage for those seeking to earn their citizenship lawfully,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office “This case should serve as a warning to others that the FBI and our law enforcement partners are united in our efforts to disrupt and dismantle criminal enterprises that seek to circumvent our laws by fraudulent means.”
“Homeland Security Investigations and our law enforcement partners will continue to prosecute individuals and criminal organizations, who profit from manipulating the immigration system,” said Chad Plantz, Special Agent in Charge of Homeland Security Investigations in San Diego. “Today’s arrests are a result of an extensive multi-agency marriage and document fraud investigation. HSI will continue to conduct criminal investigations into immigration benefit fraud as this crime threatens the integrity of the lawful immigration system.”
“This case is a prime example of multiple agencies working as a team to uphold and protect our countries lawful immigration system,” said Alanna Ow, Director of U.S. Citizenship & Immigration Services, San Diego District. “Protecting America’s promise is at the core of what we do and I’m very proud of our Fraud Detection and National Security unit for the steadfast work they do to fulfill the agency’s mission on a daily basis.”
Benitez allegedly operated the agency out of brick-and-mortar offices in Los Angeles, where he employed his co-conspirators as staff. Specifically, it is alleged that Valmeo, Ulan, Poquita and Pacson assisted with arranging marriages as well as submitting fraudulent marriage and immigration documents for the agency’s clients, including false tax returns. Hammer, Duckett, Santos and Loya allegedly served as “brokers,” who recruited U.S. citizens willing to marry the agency’s clients in exchange for an upfront fee and monthly payments from the client spouses following the marriage – to keep the U.S. citizen responsive and cooperative until the client spouse obtained lawful permanent resident status. It is also alleged that Souza and Capindo David referred prospective foreign national clients to the agency for a commission, typically around $2,000 per referral.
After pairing foreign national clients with citizen spouses, Benitez and his staff allegedly staged fake wedding ceremonies at chapels, parks and other locations, performed by hired online officiants. For many clients, the agency would take photos of undocumented clients and citizen spouses in front of prop wedding decorations for later submission with immigration petitions.
Benitez and his staff then allegedly submitted fraudulent, marriage-based immigration petitions to U.S. Citizenship and Immigration Services (USCIS), the federal agency responsible for granting lawful permanent resident status. It is alleged that Benitez and his staff coached clients and spouses through interviews with USCIS and advised clients about maintaining the appearance of legitimate marriage to their spouses. According to the indictment Benitez and his co-conspirators arranged sham marriages and submitted fraudulent immigration documents for at least 400 clients between October 2016 and March 2022.
It is further alleged that Benitez and his co-conspirators would assist certain clients – typically those whose spouses became unresponsive or uncooperative – with obtaining green cards under the Violence Against Women Act (VAWA) by claiming the undocumented clients had been abused by alleged American spouses. Specifically, the agency would allegedly submit fraudulent applications on clients’ behalf for temporary restraining orders against spouses based on fabricated domestic violence allegations. Benitez and his co-conspirators would then allegedly submit the restraining order documentation along with immigration petitions to USCIS, in order to take advantage of VAWA provisions that permit non-citizen victims of spousal abuse to apply for lawful permanent resident status without their spouses’ involvement.
The charge of conspiracy to commit marriage fraud provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins, Boston FBI SAC Bonavolonta, San Diego HSI SAC Plantz and San Diego USCIS Director Ow made the announcement today. U.S. Attorney Rollins personally thanked U.S. Attorney for the Central District of California Tracy Wilkison for their valuable assistance in this matter. Assistant U.S. Attorney David M. Holcomb of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Drug Traffickers from Shreveport and Monroe Receive Lengthy Federal Prison SentencesRead the Press Release
SHREVEPORT/MONROE, La. - United States Attorney Brandon B. Brown announced that four defendants have been sentenced in U.S. District Court in connection with three separate cases. The defendants and their sentences are as follows:
Schyler Algernon Smith and Ladarrell Cortrell Washington, both of Shreveport, Louisiana, have been sentenced by Chief United States District Judge S. Maurice Hicks, Jr. on drug trafficking charges. Smith, 33, was sentenced to 262 months (21 years, 10 months) in prison, followed by 4 years of supervised release, for conspiracy to distribute and possess with intent to distribute methamphetamine. Washington, 41, was sentenced to 63 months (5 years, 3 months) in prison, followed by 3 years of supervised release, for distribution of methamphetamine.
Smith pleaded guilty on October 21, 2021 to conspiracy to distribute and possess with intent to distribute methamphetamine. Washington pleaded guilty on August 17, 2021 to distribution of methamphetamine. The charges in this case stem from an investigation by agents with the U.S. Drug Enforcement Administration (DEA). On February 7, 2019, agents conducted surveillance of Washington as he met his suspected source of supply of narcotics, who was later determined to be Smith. Through their investigation, agents were able to prove that the package delivered to Washington by Smith and later sold to another individual, contained 500 MDMA tablets. Those tablets were sent to the DEA Criminalistics Laboratory and determined to be 102.9 grams of a mixture and substance containing methamphetamine.
The case was investigated by the DEA and prosecuted by U.S. Attorney Brandon B. Brown and Assistant U.S. Attorney Jessica D. Cassidy.
Billy Ray Murphy, Jr., 37, of Shreveport, was sentenced by United States District Judge Donald E. Walter to 151 months (12 years, 7 month), followed by 5 years of supervised release. Murphy was indicted and pleaded guilty on December 2, 2021 to one count of possession with intent to distribute methamphetamine. On April 18, 2021, a Louisiana State Police trooper conducted a traffic stop of a vehicle being driven by Murphy. When Murphy opened the glove box to retrieve the vehicle paperwork, the trooper observed a handgun in the glove box. Murphy told the trooper that the firearm belonged to his girlfriend and gave consent to search the vehicle. Inside the trunk, troopers found 2.37 pounds of cocaine, 19.9 pounds of MDMA (more than 60,000 pills), and 21.5 pounds of synthetic marijuana. The MDMA was tested and found to contain methamphetamine. In addition, Murphy had four cell phones, a scale and a large amount of cash in the vehicle.
The case was investigated by the DEA and Louisiana State Police and prosecuted by Assistant U.S. Attorney J. Aaron Crawford.
Jeremy Michael Davis, 37, of Monroe, Louisiana was sentenced by United States District Judge Terry A. Doughty to 196 months (16 years, 4 months) in prison, followed by 5 years supervised release, for conspiracy to possess with intent to distribute methamphetamine. Agents with the U.S. Drug Enforcement Administration (DEA) began an investigation into the drug trafficking activities of Davis and his co-defendants. Through their investigation, they learned that beginning in October 2018 and continuing through March 2020, Davis conspired with three other individuals to possess methamphetamine with the intent to distribute it. On November 7, 2019, agents were able to intercept a phone call with Davis wherein he discussed the purchase price and sale of methamphetamine. Agents then conducted surveillance and confirmed Davis’ participation in the sale of methamphetamine. Agents ultimately seized the narcotics, and it was tested and confirmed to contain 88.6 grams of actual methamphetamine.
The case was investigated by the DEA and prosecuted by Assistant U.S. Attorney Brian C. Flanagan.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Dominican National Pleads Guilty to Drug Trafficking, Firearm, Illegal ReentryRead the Press Release
PROVIDENCE, RI – A Dominican national living in Providence faces sentencing in U.S. District Court and deportation proceedings after pleading guilty today to drug trafficking, firearm, and illegal reentry charges, announced United States Attorney Zachary A. Cunha.
Stevens Morales-Rivera, 46, who previously identified himself using several aliases, pleaded guilty to possession of cocaine with the intent to distribute, possession of a firearm by a prohibited person, and illegally re-entry of a removed alien.
According to charging documents, in August 2021, a Newport Police Department Detective and other members of the Rhode Island DEA Drug Task Force began a Project Safe Neighborhoods investigation into Morales-Rivera’s drug trafficking activities. The investigation included several DEA supervised purchases of cocaine from the defendant.
On October 19, 2021, members of the DEA Task Force conducted a court-authorized search of Morales-Rivera’s residence and seized six kilograms of cocaine, a .25 caliber semiautomatic pistol, a kilogram-press, $8,995 in cash, and various items used in the preparation and distribution of narcotics.
According to information presented to the court, at the time of his arrest, Morales-Rivera was found to have fingerprints on file with law enforcement under a different name; he had criminal records under two names, including a conviction in Massachusetts for trafficking cocaine; and he had been deported and re-entered the United States illegally.
Morales-Rivera, detained since his arrest in October 2021, is scheduled to be sentenced by U.S. District Court Judge Mary S. McElroy on June 23, 2022. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant U.S. Attorney G. Michael Seaman.
The Rhode Island DEA Drug Task Force is comprised of personnel from the DEA; United States Postal Service Office of Inspector General; Rhode Island Attorney General’s Office Bureau of Criminal Identification and Investigation; Rhode Island State Police; the East Providence, Cranston, Coventry, Newport, North Kingstown, Pawtucket, Providence, South Kingstown, Warwick, West Warwick, and Woonsocket Police Departments; and Amtrak Police Department.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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District Man Sentenced to 151 Months in Prison for Receipt of Child PornographyRead the Press Release
WASHINGTON – Ruben Verastigui, 29, of Washington, D.C., was sentenced today to 151 months in prison on a federal charge of receipt of child pornography.
The announcement was made by U.S. Attorney Matthew M. Graves, Raymond Villanueva, Special Agent in Charge, Washington, D.C. Field Office, Department of Homeland Security, Homeland Security Investigations (HSI), and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Verastigui pleaded guilty on July 9, 2021, in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Amit P. Mehta. Upon completion of his prison term, Verastigui will be placed on five years of supervised release. He also will be required to register as a sex offender for at least 15 years.
According to the government’s evidence, from April 2020 through February 2021, Verastigui was active in an online group devoted to trading child pornography and discussing child sexual abuse. Verastigui shared child pornography videos with another member of the group and made numerous comments about sexually abusing children. Verastigui indicated his preference for babies, saying they were his “absolute favorite,” and solicited another group member for videos of babies being raped. The other group member promptly sent Verastigui a video of a baby being raped, to which Verastigui responded enthusiastically. The other group member then sent Verastigui numerous other videos of child pornography.
Verastigui was arrested on Feb. 5, 2021. He has been in custody ever since.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
In announcing the sentence, U.S. Attorney Graves, Special Agent in Charge Villanueva, and Chief Contee commended the work of those who investigated the case from Homeland Security Investigations and the Metropolitan Police Department. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Caroline Burrell and former Assistant U.S. Attorney April Russo, who prosecuted the case.
Detroit man admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Keejuan Mayes, of Detroit, Michigan, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Mayes, 30, pleaded guilty today to one count of “Distribution of Heroin within 1000 feet of a Protected Location.” Stout admitted to distributing heroin near a playground in Clarksburg in March 2019.
Mayes faces at least one year and up to 40 years of incarceration and fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Greater Harrison Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
DOJ and Port of Edmonds resolve complaint regarding violations of the Americans with Disabilities ActRead the Press Release
Seattle – The U.S. Department of Justice and the Port of Edmonds, Washington have resolved a complaint that the Port violated the Americans with Disabilities Act (ADA) when it altered the parking lot at the Port marina and failed to provide appropriate accessible parking spaces, announced U.S. Attorney Nick Brown. As part of the settlement, the Port of Edmonds will pay a complainant $3,522 for discrimination and inability to use the marina.
“This resolution is a good reminder that federal law requires full and equitable access. It is not enough to simply designate a parking space with a blue accessible parking marker—that space must also have special characteristics that will allow those with mobility issues to enjoy full access,” said U.S. Attorney Nick Brown. “Once our office became involved, the Port of Edmonds quickly reconfigured their spaces with appropriate space and access aisles so that the spaces were usable by those using assistive devices such as walkers or wheelchairs.”
According to the settlement agreement, in February 2021, the Port of Edmonds reconfigured its parking lot and constructed a dumpster area where accessible parking had been. Soon after the work, the complainant notified the Port of Edmonds that the new configuration violated the ADA. Nevertheless, the Port did not make any changes.
On August 12, 2021, a representative of the U.S. Attorney’s Office viewed the North and South parking areas at the marina. The review found multiple violations of the ADA including a lack of aisle space next to the accessible parking spaces, and no designated van accessible parking spaces. The U.S. Attorney’s Office concluded the parking area did not comply with the ADA.
After receiving notice of non-compliance from the U.S. Attorney’s Office, the Port of Edmonds quickly made changes. By August 31, 2021, the Port reconfigured its parking areas to include accessible spaces with access aisles and designated van accessible areas. The accessible parking spaces were moved to shorten the distance to Port facilities.
The Port has agreed to designate an ADA coordinator, and place signs throughout its facilities identifying the ADA coordinator and how he or she can be contacted. The coordinator will be responsible for investigating any complaints regarding discrimination against individuals with disabilities.
The Port will pay the complainant who could not use Port facilities $3,522 and agrees in the settlement not to retaliate in any way against anyone who brings a complaint regarding ADA access.
The Port of Edmonds will certify its compliance with the ADA to the U.S. Attorney’s Office. The U.S. Attorney’s Office will monitor compliance for two years following the settlement. If no further issues arrive, the matter will be closed.
The matter was investigated and resolved by former Assistant United States Attorney Sarah Morehead and subsequently by Assistant United States Attorney Heather Costanzo.
Convicted health care fraudsters charged under False Claims ActRead the Press Release
CORPUS CHRISTI, Texas – The owner and administrator of Texas-based Merida hospice and home health entities have been named in a multi-million-dollar whistleblower lawsuit, announced U.S. Attorney Jennifer B. Lowery.
Rodney Mesquias and Henry McInnis, both 51, and formerly from Harlingen, were convicted of criminal health care fraud and conspiracy charges following a lengthy trial in Brownsville on Nov. 6, 2019.
“All health care providers who submit claims to the Medicare program are on notice that when they enroll in Medicare, they are subject to both criminal and civil consequences for the submission of false and fraudulent claims,” said Lowery.
The civil complaint filed today, alleges Mesquias and McInnis conspired to violate the civil False Claims Act by submitting false and fraudulent claims to Medicare for medically unnecessary hospice and home health services. It also alleges they paid illegal kickbacks to Merida medical directors for patient referrals and created false patient medical records in support of the false and fraudulent claims. These included hospice and home health certifications that were material to Medicare payments.
Mesquias and McInnis are currently in the custody of the Bureau of Prisons serving 240 months and 180 months, respectively, for their criminal convictions. Mesquias also has been ordered to pay $120 million in restitution to the Medicare program.
The United States is also entitled to recover triple the damages for violations of the civil False Claims Act as well as civil monetary penalties between $11,803 and $23,607 for each false claim submitted to Medicare.
The Department of Health and Human Services - Office of Inspector General, FBI and Texas Health and Human Services Commission conducted the investigation. Assistant U.S. Attorney Julie Redlinger is handling the matter.
Convicted Felon Going to Prison on Methamphetamine Charge Involving A DeathRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Jason Yelder, 39, of Buffalo, NY, who was convicted of possessing with intent to distribute five grams or more of methamphetamine, was sentenced to serve 135 months in prison and eight years supervised release by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that in 2017, Yelder was convicted of methamphetamine trafficking and sentenced to serve 20 months in prison and five years post-release supervision, which began on May 25, 2018. In February 2019, Yelder broke off all contact with probation personnel. In July 2019, the U.S. Marshal’s Service located Yelder at a hotel on Delaware Avenue in Buffalo, he had rented and was using distribute methamphetamine. On July 15, 2019, Yelder was arrested and found to be in possession of 21 baggies containing a total of approximately 30 grams of between 98% and 99% pure methamphetamine.
Subsequent investigation determined that on May 28, 2019, an individual identified as K.L. was found dead by the train tracks near 355 Lakefront Boulevard in Buffalo. Previously, K.L. had been at another hotel room rented by Yelder on Pearl Street. While at the hotel, the defendant gave K.L. a vial of liquid methamphetamine. The toxicology report for K.L. revealed methamphetamine in K.L.’s system, and the medical examiner concluded that, but for the methamphetamine in K.L.’s system, K.L. would not have died. The defendant admitted his role in the overdose death of K.L.
The sentencing is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia, the Drug Enforcement Administration, under the direction of Acting Special Agent-in-Charge Timothy Foley, New York Field Division, and the U.S. Marshals Service, under the direction of Marshal Charles Salina.
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Convicted Felon Admits Trying to Bring Loaded Gun on Plane at Newark Liberty International AirportRead the Press Release
NEWARK, N.J. – A Newburgh, New York, man today admitted possessing a stolen and loaded firearm that he tried to get through security at Newark Liberty International Airport, U.S. Attorney Philip R. Sellinger announced.
Desmond Herring, 48, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with one count of possession of a firearm and ammunition by a convicted felon and one count of carrying a weapon on an aircraft.
According to documents filed in this case and statements made in court:
On Nov. 29, 2021, Herring submitted a carry-on bag for inspection at Newark Liberty International Airport. During the screening of Herring’s luggage, a Transportation Security Administration (TSA) agent identified ammunition and a suspected firearm and contacted the Port Authority Police Department. Upon seeing that his bag had attracted additional attention, Herring left the security checkpoint area without his bag and walked to a departure gate for his flight to Atlanta, Georgia.
Further investigation of Herring’s bag revealed that it contained a 9 millimeter pistol, 10 rounds of 9 millimeter ammunition loaded into a magazine, and 150 additional rounds of 9 millimeter ammunition. Herring was prohibited from possessing a firearm due to a 2010 federal conviction for conspiracy to distribute controlled substances.
Both charges carry a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 17, 2022.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; officers of the Port Authority Police Department, under the direction of Superintendent Edward Cetnar; and officers of the TSA with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office National Security Unit in Newark.
Colorado’s Top Federal Prosecutor Joins Law Enforcement Partners to Send Warning about Fentanyl DeathsRead the Press Release
Colorado Springs – The United States Attorney’s Office for the District of Colorado and law enforcement leaders gathered media together to bring attention to the alarming increase in fentanyl-related deaths in Colorado. Together with law enforcement leaders from the FBI, DEA, 4th Judicial District Attorney’s Office, Colorado Springs Police Department, El Paso County Sheriff’s Office, El Paso County Coroner and Fountain Police Department, officials highlighted the dangers of fentanyl and what is being done to hold manufacturers and dealers accountable.
“In the four months I’ve been U.S. Attorney, it’s been astonishing to watch what is happening with fentanyl. It is a public health crisis and a public safety crisis. Fentanyl is dangerous, scary, and deadly,” said United States Attorney Cole Finegan. “Our offices are taking aggressive measures to use every tool at our disposal to prosecute anyone who makes or distributes this deadly drug. Our intent is to prosecute dealers and hold them accountable. They are killing our children and fellow Coloradans.”
“Disrupting drug trafficking organizations is a top priority for FBI Denver. At the same time, we recognize that lethal drugs like fentanyl are already here. Collaborations with our partners mean we can also find ways to bring justice to these criminal organizations even after they have caused death in our communities,” said FBI Denver Special Agent in Charge Michael Schneider.
“We stand with the U.S. Attorney and our national and local law enforcement partners to aggressively identify and bring to justice those greed-driven enterprises responsible for proliferating this deadly fentanyl scourge expanding across our country” said DEA Denver Field Division Special Agent in Charge Brian Besser. “DEA Denver is committed to interdicting the poison that is driving the overdoses in our communities; investigating the traffickers, and providing priority access to all of DEA’s global resources to better assist with this lethal drug threat.
“Those dealing Fentanyl in our community are not welcome here. We will hold you accountable for dealing Fentanyl in the El Paso and Teller County communities. If you kill somebody with this poison, you will be prosecuted to the fullest extent of the law and you should expect to spend an extended amount of time in prison,” said District Attorney Michael Allen from the 4th Judicial District.
“The El Paso County Sheriff’s Office is determined and committed to leveraging our regional, state, and federal enforcement and prosecutorial partnerships to stem the tide of what I believe can be preventable fentanyl overdoses and deaths in our community. My agency remains committed to serving the almost 800,000 citizens in El paso County by combatting this emergent law enforcement and public health challenge to make the Pikes Peak Region a safe place in which to live and work,” said Undersheriff Joe Roybal.
“Fentanyl is a lethal danger unlike any other, threatening the citizens of Colorado and indeed the Nation. CSPD is dedicated to working with our local and federal partners to disrupt the distribution of fentanyl in our community and to do everything we can to keep our citizens safe,” said Colorado Springs Interim Chief Adrian Vasquez.
“The mean age of fentanyl deaths is 12 years younger (35) than the average age of all other drug-related deaths (47). This shift to a younger population is due in part to the current pill form that is easily trafficked and ingested, its widespread contamination of other drugs of abuse, its high toxicity even in small amounts, and its pervasiveness in the community exposing even toddlers to fentanyl,” said Dr. Leon Kelly, El Paso County Coroner.
Under federal law, individuals convicted of distributing or conspiring to distribute fentanyl that causes death face a sentence of at least 20 years in prison and can receive up to a life sentence.
Examples of recent federal cases include:
- Douglas Floyd, Marlene McGuire, and Maria Davis-Conchie, of Colorado Springs, were charged with conspiring to distribute fentanyl and para-fluorofentanyl resulting in death, distribution of fentanyl and para-fluorofentanyl resulting in death, and distribution of fentanyl and para-fluorofentanyl to persons under age 21. Their case is pending in federal district court in Denver. Case number 22-cr-080-RMR.
- Alexis Nicole Wilkins, of Colorado Springs, was charged with allegedly distributing fentanyl resulting in death, and distributing fentanyl to persons under age 21. Her case is pending in federal district court in Denver. Case number 22-cr-101-CMA.
- Nathaniel David Corser, of Colorado Springs, was charged with distribution of fentanyl resulting in death, distribution of fentanyl within 1,000 feet of a high school, and possession of a firearm in furtherance of a drug trafficking offense. His case is pending in federal district court in Denver. Case number 22-cr-331-DDD.
- Bruce Holder of Grand Junction was found guilty of distributing counterfeit oxycodone pills containing fentanyl, which resulted in the death of a young man in Carbondale Holder is scheduled to be sentenced on May 4, 2022. Case number 18-cr-381-CMA.
- Ernesto Ibarra Jr. of Fort Collins, was sentenced to 175 months in federal prison for distributing fentanyl resulting in death. Blue pills resembling prescription oxycodone contained fentanyl, killing one victim. Case number 19-cr-074-PAB.
- Lewis Robertson, of Boulder, was sentenced to 60 months in federal prison for distributing fentanyl resulting in death. He distributed blue pills resembling prescription oxycodone, killing one victim. Case number 20-cr-251-RBJ.
According to the Drug Enforcement Administration, opioids are the leading of cause of overdose deaths in the United States, with fentanyl being the primary driver. The U.S. Attorney’s Office for the District of Colorado remains committed to working with our partners at the local, state and federal levels to protect Coloradans from the flood of fentanyl and fentanyl-laced pills coming into our state.
For more information, please visit: https://www.dea.gov/onepill
Charges contained in indictments are allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Colorado CEO and Fund Manager Admits to $11 Million Securities Fraud SchemeRead the Press Release
NEWARK, N.J. – A Denver, Colorado, CEO today admitted conducting a securities scheme to fraudulently obtain $11 million from investors through various misrepresentations about fund operations, his background, and his contribution to the fund, U.S. Attorney Philip R. Sellinger announced.
Samuel J. Mancini, 55, pleaded guilty before U.S. District Court Judge Cecchi in Newark federal court to an information charging him with one count of securities fraud.
According to documents filed in this case and statements made in court:
Mancini managed and controlled Outdoor Capital Partners LLC (OCP), which he purported to be a venture capital and private equity firm. OCP served as the managing director of OCP Italia Fund LLC (OCP Italia), a private investment fund. Mancini used OCP and OCP Italia to engage in the fraudulent scheme.
From February 2020 through July 2021, Mancini promised investors that he was raising $20 million, including $5 million of his own money, for OCP Italia to invest solely in acquiring controlling interests in three Italian cycling companies. Mancini represented to investors that the acquisitions would take place soon after the fund closed. To induce investments, Mancini promised investors approximately 70 percent of OCP Italia’s operating profits.
Mancini repeatedly misrepresented his finances and his contribution to OCP Italia. Mancini also misrepresented OCP Italia’s ability to close on the acquisitions. OCP Italia never acquired any of the Italian cycling companies. Instead, Mancini defaulted on contracts, diverted investor funds out of OCP Italia, and, in certain instances, paid investor funds to other investors seeking redemption.
Mancini also misled investors about his educational background by representing himself as a graduate of a prestigious military academy when, in fact, Mancini had failed to graduate from the academy due to an ethical violation.
When confronted with requests for transparency and redemptions by certain investors in OCP Italia, Mancini failed to honor the redemption requests, made misrepresentations about his inability to honor the redemption requests, misstated and omitted material facts, and provided certain investors with forged, modified, or otherwise fraudulent documentation and financial records. Mancini fraudulently obtained approximately $11 million from victims.
The securities fraud count carries a maximum penalty of 20 years in prison and a $5 million fine. Sentencing is scheduled for Aug. 17, 2022.
The U.S. Securities and Exchange Commission has filed a civil complaint against Mancini based on the allegations underlying the securities fraud scheme to which Mancini pleaded guilty today.
U.S. Attorney Sellinger credited special agents and intelligence analysts of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea. He also thanked the FBI Denver Field Office, under the direction of Special Agent in Charge Michael H. Schneider, for its assistance.
The government is represented by Assistant U.S. Attorney Lauren E. Repole, Chief of the General Crimes Unit.
Chinese National Sentenced for Economic Espionage ConspiracyRead the Press Release
A Chinese national formerly residing in Chesterfield, Missouri, was today sentenced to 29 months in prison followed by three years of supervised release and a $150,000 fine for conspiring to commit economic espionage.
Xiang Haitao, 44, pleaded guilty to the charge in January 2022. According to court documents, Xiang conspired to steal a trade secret from The Climate Corporation, a subsidiary of Monsanto, an internationally based company doing business in St. Louis, Missouri, for the purpose of benefitting a foreign government, namely the People’s Republic of China (PRC).
“Xiang conspired to steal an important trade secret to gain an unfair advantage for himself and the PRC,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The victim companies invested significant time and resources to develop this intellectual property. Economic espionage is a serious offense that can threaten U.S. companies’ competitive advantage, and the National Security Division is committed to holding accountable anyone who steals trade secrets to benefit a foreign government.”
“The defendant took advantage of living and working in the United States to steal a valuable trade secret for the benefit of PRC entities,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “This type of theft threatens employers large and small in every state, and it imperils our economic competitiveness as a nation. Individuals entrusted with valuable trade secrets should be on notice that if they abuse that trust – especially for the benefit of foreign nations – we will hold them accountable.”
“Those who conspire to steal technology from U.S. businesses and transfer it to China cause tremendous economic damage to our country," said Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division. "The government of China does not hesitate to go after the ingenuity that drives our economy. Stealing our highly prized technology can lead to the loss of good-paying jobs here in the United States, affecting families, and sometimes entire communities. Our economic security is essential to our national security. That’s why at the FBI protecting our nation’s innovation is both a law enforcement and a top national security priority.”
“This is the first economic espionage conviction ever in the history of the Eastern District of Missouri,” said Acting Special Agent in Charge Akil Davis of FBI’s St. Louis Field Office. There are less than two dozen such convictions nationwide. Economic espionage convictions are rare because the elements required to prove state-sponsored theft is extremely difficult,” “Today’s sentencing is a culmination of more than five years of tenacity and dedication by our agents and federal prosecutors. I commend their success in protecting the victim company and ultimately our U.S. economy.”
According to court documents, Xiang was employed by Monsanto and its subsidiary, The Climate Corporation, from 2008 to 2017, where he worked as an imaging scientist. Monsanto and The Climate Corporation developed a digital, online farming software platform that was used by farmers to collect, store and visualize critical agricultural field data and increase and improve agricultural productivity for farmers. A critical component to the platform was a proprietary predictive algorithm referred to as the Nutrient Optimizer. Monsanto and The Climate Corporation considered the Nutrient Optimizer a valuable trade secret and their intellectual property.
In June 2017, the day after leaving employment with Monsanto and The Climate Corporation, Xiang attempted to travel to China on a one-way airplane ticket. While he was waiting to board his flight, federal officials conducted a search of Xiang’s person and baggage. Investigators later determined that one of Xiang’s electronic devices contained copies of the Nutrient Optimizer. Xiang continued on to China where he worked for the Chinese Academy of Science’s Institute of Soil Science. Xiang was arrested when he returned to the United States in November 2019.
The FBI and the Department of Homeland Security, Customs and Border Protection investigated the case.
Assistant U.S. Attorneys Matthew Drake and Gwendolyn Carroll for the Eastern District of Missouri, Senior Trial Attorney Heather Schmidt and Trial Attorney Adam Small of the National Security Division’s Counterintelligence and Export Control Section, and Senior Counsel Jeff Pearlman and Assistant Deputy Chief Matthew Walczewski of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case.
Carjacker Sentenced to Federal PrisonRead the Press Release
Memphis, TN- Kalonji Warren, 26, has been sentenced to 70 months in federal prison for a carjacking. Joseph C. Murphy, Jr., United States Attorney, announced the sentence today.
According to information presented in court, on July 17, 2019, the victim was seated inside his vehicle at the Pump and Munch gas station on East Shelby Drive in Memphis, TN. Kristopher Harris and Kalonji Warren drove Warren’s tan Jeep SUV to the gas station and pulled alongside the victim's vehicle.
Harris pointed a semi-automatic handgun at the victim, firing one shot into the front passenger-side window of the vehicle. After the victim fled, Warren entered the victim's vehicle and drove away. One shell casing left at the scene was collected as evidence.
Video surveillance captured the suspect’s vehicle in the area and showed Warren enter the gas station prior to the carjacking. Part of the carjacking incident was also captured on video surveillance. During the investigation Kristopher Harris was positively identified.
Kristopher Harris and Kalonji Warren pled guilty to the carjacking charge on October 22, 2021.
On January 21, 2022, United States District Judge Thomas L. Parker sentenced Warren to 70 months in federal prison to be followed by three years’ supervised release. On April 1, 2022, United States District Judge Thomas L. Parker sentenced Harris to 97 months imprisonment and two years’ supervised release.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case.
Assistant United States Attorneys Wendy K. Cornejo and Gregory A. Wagner prosecuted this case on behalf of the government.
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Bronx, New York, Man Admits Scheme to Steal Checks from Mail and Defraud Banks of $550,000Read the Press Release
NEWARK, N.J.– A Bronx, New York, man today admitted his role in a scheme to steal checks from the mail, alter them and deposit them in bank accounts he controlled, U.S. Attorney Philip R. Sellinger announced.
Alique Jordan Clarke, 21, of the Bronx, New York, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to an information charging him with one count of conspiracy to commit bank fraud and one count of conspiracy to receive and possess stolen mail.
According to documents filed in the case and statements made in court:
From February 2020 to November 2020, Clarke and two conspirators stole over 290 checks from mailboxes in and around Morris, Essex, Somerset, and Passaic counties, altered the stolen checks, and then deposited the altered checks into bank accounts controlled by Clarke and his conspirators. After the stolen checks were deposited, Clarke and his conspirators withdrew cash from the accounts totaling more than $550,000.
The conspiracy to commit bank fraud charge carries a maximum penalty of 30 years in prison and a $1 million fine, and the conspiracy to receive and possess stole mail carries a maximum sentence of five years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 8, 2022.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Damon Wood, Philadelphia Division, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit.
Boston Police Officer Agrees to Plead Guilty to Tax ChargeRead the Press Release
BOSTON – A Boston Police Officer was charged and has agreed to plead guilty to allegedly failing to report gambling winnings on his tax returns.
Dana Lamb, 57, of Roslindale, was charged and has agreed to plead guilty to one count of filing a false document with the Internal Revenue Service. A plea hearing has not yet been scheduled by the Court.
In May 2020, while an Officer for the Boston Police Department, Lamb sold a winning lottery ticket worth $10,000 to a convenience store owner for cash rather than properly claiming it with the Massachusetts Lottery Commission. He then failed to report his gambling winnings on his U.S. Individual Tax return for the that year. Lamb’s failure to report the gambling proceeds resulted in an additional tax due and owing for that year of $1,800.
The charge of filing a false document with the Internal Revenue Service provides for a sentence of up to one year in prison, one year of supervised release and a fine of up to $10,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Boston Police Acting Commissioner Gregory Long made the announcement today. Valuable assistance was provided by the Massachusetts State Lottery Commission. Assistant U.S. Attorney Eugenia M Carris, Deputy Chief of Rollins’s Public Corruption Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bessemer Man Convicted on Drug and Gun ChargesRead the Press Release
BIRMINGHAM, Ala. – A Bessemer man was convicted Tuesday on drug and gun charges, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
After two days of testimony, United States District Court Judge Karon O. Bowdre returned a guilty verdict against Christopher James Moton, 42, at a bench trial. Moton was convicted of possession with intent to distribute methamphetamine and heroin and possession of a firearm by a felon.
According to court documents and evidence presented at trial, Moton was found in possession of a firearm despite being a prohibited felon. A search conducted at Moton’s residence found trafficking amounts of methamphetamine and black tar heroin. Evidence at trial revealed that Moton intended to distribute these controlled substances to drug users in the community.
“Yesterday’s verdict is another success in law enforcement’s efforts to eliminate the distribution of dangerous drugs in our communities and remove firearms from the hands of convicted felons,” U.S. Attorney Escalona said. “We will continue to work with our law enforcement partners to investigate and prosecute those who intend to devastate our communities and ruin lives.”
“This conviction was an outstanding example of law enforcement partnerships working together to remove dangerous criminals from our neighborhoods,” SAC Sharp said. “Thanks to the great work of my agents and the Jefferson County Sheriff’s Office, Moton has been held responsible for his crime.”
The maximum penalty for possession of a firearm by a convicted felon is 10 years. The maximum penalty for possession with intent to distribute more than 50 grams of methamphetamine is life in prison.
The Federal Bureau of Investigation investigated the case along with the Jefferson County Sheriff’s Office. Assistant U.S. Attorneys Gregory R. Dimler and Allison J. Garnett are prosecuting the case.
Bellefonte Man Sentenced to 96 Months’ Imprisonment for Drug TraffickingRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ryan Joel King, age 40, of Bellefonte, Pennsylvania, was sentenced to 96 months' imprisonment by Chief U.S. District Court Judge Matthew W. Brann for drug trafficking. According to United States Attorney John C. Gurganus, on November 9, 2021, King entered a guilty plea to possessing methamphetamine and LSD with the intent to distribute them to others. King was the subject of an investigation by the Pennsylvania State Police and was found with 286 grams of methamphetamine, nearly 2 grams of liquid LSD, and drug paraphernalia. King also possessed a .22 caliber handgun in connection with the drug offense which led to a sentencing enhancement.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Bureau of Alcohol, Tobacco, and Firearms, and the Pennsylvania State Police. Assistant United States Attorney Geoffrey W. MacArthur prosecuted the case.
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Baltimore Sex Trafficker Admits to Recruiting a 14-Year-Old Minor Near a Group Home to Engage in Commercial SexRead the Press Release
Baltimore, Maryland – Kyle David Robinson, age 29, of Baltimore, Maryland pleaded guilty today to sex trafficking of a minor.
The plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Chief Gregory J. Der of the Howard County Police Department; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his plea agreement, Robinson knowingly recruited, enticed, transported, and advertised a 14-year-old female (Minor Victim 1) to engage in commercial sex acts for his own financial benefit. Robinson admitted that he was aware that Minor Victim 1 was 14-years old prior to advertising her for commercial sex.
Robinson approached Minor Victim 1 in May 2021 in his vehicle while Minor Victim 1 was sitting on the steps of near a group home where she resided. Robinson told Minor Victim 1 that he was a pimp and referred to himself as “Youngblood”. Despite Minor Victim 1 informing Robinson that she was a minor, Robinson asked for Minor Victim 1’s phone number and sent her a text message. The following day, Robinson picked up Minor Victim 1 from the group home and brought her to his residence.
As detailed in his plea, in May and June 2021, Robinson transported Minor Victim 1 to his residence on multiple occasions. On at least one occasion, Robinson engaged in unprotected sex with Minor Victim 1. After one interaction in which Robinson had intercourse with Minor Victim 1, Robinson told Minor Victim 1 that she had to “break herself” to him, took $50 from Minor Victim 1, and told Minor Victim 1 that she should call him “daddy”.
Robinson advised Minor Victim 1 to download a social media application for the purpose of communicating with potential commercial sex customers. Robinson then scripted responses to potential customers on Minor Victim 1’s behalf. Additionally, Robinson sent verbally hostile messages to Minor Victim 1 and instructed her to always keep her phone with her.
On June 4, 2021, in a text message with Minor Victim 1, Robinson informed Minor Victim 1 that he had to physically assault Victim 2, a 19-year-old female, for having a boyfriend. Robinson arranged for Victim 2 to reside at his residence and for Victim 2 to go on commercial sex dates. Like Minor Victim 1, Robinson had unprotected sex with Victim 2, and required Victim 2 to pay him money to associate with him.
As stated in his plea agreement, after law enforcement received information that Robinson offered young females for commercial sex, investigators arranged for an undercover agent to arrange for commercial sex. In a conversation with the undercover agent, Robinson told the undercover agent that he had young girls and that he had two teenagers available for an hour at the rate of $1,000. The undercover agent offered to pay $500 for half an hour with a tentative date and Robinson agreed. Later in the conversation, Robinson told the undercover agent that he had only one female available because of a conflicting school schedule.
On June 7, 2021, Robinson called the undercover agent to arrange for two victims, including Minor Victim 1, to have commercial sex with the agent at a hotel. Surveillance cameras captured Robinson and Minor Victim 1 as they entered the hotel for the commercial sex date. Within the hotel room, the undercover agent offered $750 to have sex with Minor Victim 1. Robinson then accepted the money for the sex date. Shortly after, law enforcement entered the room and apprehended Robinson and secured Victim 1.
Robinson faces a minimum sentence of 10 years in prison and a maximum of life in prison for sex trafficking of a minor. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for July 22, 2022, at 9:30 a.m.
This case was investigated by law enforcement agencies that are members of the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.mdhumantrafficking.org/.
United States Attorney Erek L. Barron praised the HSI, the Howard County Police Department, and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Mary W. Setzer and Colleen E. McGuinn, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, information on the Maryland Human Trafficking Task Force, and resources available to report human trafficking, please visit https://www.justice.gov/usao-md/human-trafficking.
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Another Defendant in Staged Automobile Collision Scheme Pleads GuiltyRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that LERTRICE JOHNSON (“JOHNSON”), age 45, has pled guilty on April 6, 2022 to Count one (1) of her indictment, which charged her with Conspiracy to Commit Mail Fraud in violation of Title 18, United States Code, Section 371. In pleading guilty to Count 1, the defendant faces a maximum penalty of five (5) years’ imprisonment; a term of supervised release of up to three (3) years; and a fine up to $250,000.00, or the greater of twice the gross gain to the defendant or twice the gross loss to any person under Title 18, United States Code, Section 3571, as well as a mandatory special assessment fee of $100.00. Today’s guilty plea brings the total number of defendants convicted in Operation Sideswipe to thirty-four (34).
As part of her plea, JOHNSON admitted her involvement in a scheme to falsely claim she was a passenger in a car that was struck by a tractor-trailer on June 8, 2016. In fact, the government’s evidence showed that the defendant conspired with Damien Labeaud (“Labeaud”), Keishira Robinson (“K. Robinson”), and others to intentionally collide K. Robinson’s Mazda with a tractor-trailer in the area of Chickasaw Street and Louisa Street in New Orleans. JOHNSON later lied in her civil deposition, falsely claiming that K. Robinson was driving the Mazda and that the tractor-trailer was at fault. In fact, Labeaud was driving the car and intentionally hit the tractor-trailer. JOHNSON also claimed that Ashley McGowan (“McGOWAN”) was in the car at the time of the collision when in fact McGowan was not. Moreover, JOHNSON falsely alleged that she had gone to the hospital after the collision. JOHNSON hoped that, through her false statements, she would secure lucrative monetary settlements from the owner, driver, and insurer of the tractor-trailer.
Sentencing in this matter is set for July 13, 2022, before United States District Judge Sarah S. Vance.
The U.S. Attorney’s Office would like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brandon S. Long; Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant U.S. Attorney Maria M. Carboni; and Assistant U.S. Attorney Edward Rivera.
Another Defendant from New Orleans Pleads Guilty in Staged Automobile Collision SchemeRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that DAVIENQUE JOHNSON (“JOHNSON”), age 28; pled guilty to Count one (1) of her indictment, charging Conspiracy to Commit Mail Fraud in violation of Title 18, United States Code, Section 371. In pleading guilty to Count 1, the defendant faces a maximum penalty of five (5) years’ imprisonment; a term of supervised release of up to three (3) years; and a fine up to $250,000.00, or the greater of twice the gross gain to the defendant or twice the gross loss to any person under Title 18, United States Code, Section 3571, as well as a mandatory special assessment fee of $100.00. Today’s guilty plea brings the total number of defendants convicted in Operation Sideswipe to thirty-five (35).
As part of her plea, JOHNSON admitted her involvement in a scheme to falsely claim she was a passenger in a car that was struck by a tractor-trailer on June 8, 2016. In fact, the government’s evidence showed that the defendant conspired with Damien Labeaud (“Labeaud”), Keishira Robinson (“K. Robinson”), and others to intentionally collide K. Robinson’s Mazda with a tractor-trailer in the area of Chickasaw Street and Louisa Street in New Orleans. JOHNSON later lied in her civil deposition, falsely claiming that K. Robinson was driving the car that collided with the tractor-trailer, when in fact Labeaud was driving the car and intentionally hit the tractor-trailer. JOHNSON had relocated from the back row of the Mazda to the front passenger seat after the collision. JOHNSON hoped that, through her false statements, she would secure lucrative monetary settlements from the owner, driver, and insurer of the tractor-trailer. Her case was later settled, which resulted in the mailing of a settlement check.
Sentencing in this matter is set for July 13, 2022, before United States District Judge Sarah S. Vance.
The U.S. Attorney’s Office would like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brandon S. Long; Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant U.S. Attorney Maria M. Carboni; and Assistant U.S. Attorney Edward J. Rivera.
7 MS-13 Members Charged with Double Murder Inside Federal Penitentiary in Beaumont, Texas Resulting in Nationwide Lockdown of Federal Prison SystemRead the Press Release
BEAUMONT, Texas – A federal grand jury in the Eastern District of Texas returned an indictment this week in Beaumont charging seven inmates at U.S. Penitentiary Beaumont, who are members of the violent transnational criminal organization La Mara Salvatrucha, also known as the MS-13, for their involvement in a deadly prison attack on rival gang members on Jan. 31, 2022. All seven defendants are in federal custody. The case has been assigned to U.S. District Judge Marcia Crone.
U.S. Attorney for the Eastern District of Texas Brit Featherston, along with FBI Houston SAC James Smith, Homeland Security Investigations Houston SAC Mark Dawson, and Joint Task Force Vulcan Director (JTFV) John J. Durham, announced today the charges in the 15-count indictment against the MS-13 members identified below. The charges in the Indictment relate to the planning and execution of a violent attack orchestrated by members of MS-13 against Mexican Mafia and Sureños associates that resulted in two deaths, two attempted murders, and a nationwide lockdown of all inmates in the Federal Bureau of Prisons (BOP) for almost a week.
“Deterring prison violence remains a priority for the Department,” said Eastern District of Texas U.S. Attorney Brit Featherston. “Any prisoner who causes physical injury to another, inmate or corrections officer, will be prosecuted to the fullest extent of the law.”
“Disrupting dangerous plots that can arise from gangs like MS-13 in the federal prison system, as alleged in today’s indictment, is a matter of utmost importance for the FBI and to me personally as a former supervisory special agent for the MS-13 National Gang Task Force Unit in the Criminal Investigative Division at Headquarters,” said FBI Houston SAC James Smith. “The FBI served as a force multiplier and the lead investigative agency for this case immediately following the murders. In support of this massive investigation, we completed over 100 interviews, conducted over 60 searches, reviewed hours of surveillance footage, and seized countless weapons and contraband. The FBI remains resolute in our commitment to continue working side by side with our law enforcement partners to defeat and deter gang violence anywhere it occurs.”
“Transnational violent gangs are a significant threat to our national security whether they are entrenched within our communities or incarcerated in our correctional facilities,” said Homeland Security Investigations (HSI) Houston Special Agent in Charge Mark Dawson. “This indictment demonstrates our commitment to disrupting and dismantling this threat.”
“Even while incarcerated, MS-13 members remain committed to the organization’s violent ideology and, as alleged in this indictment, continue to engage in extreme acts of murder and attempted murder,” stated Director Durham. “The Department of Justice and our law enforcement partners will not yield, and we will hold MS-13 members accountable for their crimes, whether in prisons or on the street.” Director Durham extended his sincere appreciation to all members of JTFV, especially the FBI, HSI and BOP’s National Gang Unit, who spearheaded this investigation.
As alleged in the indictment unsealed today:
MS-13 is a transnational criminal organization composed primarily of immigrants or descendants of immigrants from El Salvador, but also includes members from other countries such as Honduras, Guatemala, and Mexico. Although the gang originated in Los Angeles, California, it quickly spread and is now a national and international criminal organization with an estimated 10,000+ members regularly conducting gang activities in nearly all of the United States, including Texas, California, New York, and in El Salvador, Honduras, Guatemala, and Mexico.
The Mexican Mafia controls large portions of the Hispanic prison population in California and Texas and the federal prison system. MS-13 has had a symbiotic relationship with both the Mexican Mafia and the Sureños, which is a close association of Hispanic gangs that pay tribute to the Mexican Mafia while incarcerated in federal and state prisons in the United States. As alleged in the Indictment, however, that symbiotic relationship recently began to fall apart as MS-13’s leadership in El Salvador, the Ranfla Nacional, sought to exert more control and independence of its own members while incarcerated in prisons within the United States, including using MS-13 command and control structure to enforce their orders, including orders to commit murders, even while in prison.
On Jan. 31, 2022, at USP Beaumont, seven MS-13 members, converged in A-A Housing Unit and attacked multiple Sureños members and one Mexican Mafia associate. Defendant Rivas-Moreiera began the prison attack when he came up behind Guillermo Riojas and stabbed Riojas twice in the chest. Riojas fell immediately, and other MS-13 defendants stabbed and kicked Riojas while he lay motionless on the prison floor. The MS-13 defendants then chased, cornered, beat, and repeatedly stabbed Andrew Pineda, and other Sureños members. The prison attack lasted approximately three minutes.
Defendants Rivas-Moreiera, Alfaro-Granado, and Landaverde-Giron are all serving sentences of life imprisonment for their participation in MS-13 and committing murder in aid of racketeering in furtherance of MS-13. Defendant Ramires is also serving a sentence of 27 years’ imprisonment following his conviction for participating in MS-13 and committing a murder on behalf of the gang.
The Victims:
Riojas died as a result of the prison attack. He was inflicted with multiple stab wounds to his heart and lung. Likewise, Pineda died as a result of the prison attack. He suffered more than 45 distinct stab wounds to his body. Sureños member 1 was stabbed multiple times and taken to a hospital by emergency services as a result of the prison attack. Sureños member 2 was also stabbed numerous times. Both victims ultimately survived the attack by the MS-13 defendants.
This indictment is the product of coordination between the U.S. Attorney’s Office for the Eastern District of Texas (EDTX) and Joint Task Force Vulcan (JTFV), which was created in August 2019 as a whole-of-government approach to dismantle transnational criminal organizations, such as MS-13. Since its creation, JTFV has successfully increased coordination and collaboration with foreign law enforcement partners, including El Salvador, Mexico, Honduras and Guatemala; designating priority MS-13 programs, cliques and leaders, who have the most impact on the United States, for targeted prosecutions; and coordinating significant MS-13 indictments in U.S. Attorney’s Offices across the country, including the first use of national security charges against MS-13 leaders, such as the Ranfla Nacional, in El Salvador. JTFV has been comprised of members from U.S. Attorney’s Offices across the country, including EDTX; the Eastern District of New York; the Southern District of New York; the District of New Jersey; the Northern District of Ohio; the District of Utah; the Eastern District of Virginia; the District of Massachusetts; the District of Alaska; the Southern District of Florida; the Southern District of California; the District of Nevada; and the District of Columbia, as well as the Department of Justice’s National Security Division and the Criminal Division. In addition, all Department of Justice law enforcement agencies are involved in the effort, including the Federal Bureau of Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; and the Bureau of Prisons. In addition, Homeland Security Investigations also plays a critical role in JTFV.
The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, the defendants face a maximum sentence of life in prison, and the defendants are eligible for the death penalty.
This case is being prosecuted by Assistant U.S. Attorney Joe Batte from the U.S. Attorney’s Office for EDTX, Assistant U.S. Attorney Christopher A. Eason for the U.S. Attorney’s Office for EDTX and from JTFV, Assistant U.S. Attorney Jacob Warren for the U.S. Attorney’s Office for the Southern District of New York and from JTFV, and Assistant U.S. Attorney Stewart M. Young for the U.S. Attorney’s Office for the District of Utah and from JTFV. The charges in the indictment were investigated by the FBI and the BOP.
The Defendants:
- Juan Carlos Rivas-Moreiera, aka “Juan Carlos Moriera,” aka “Stocky”
Age: 41
Place of Birth: El Salvador
United States District Court of Prosecution: District of Maryland
- Dimas Alfaro-Granado, aka “Toro”
Age: 39
Place of Birth: El Salvador
United States District Court of Prosecution: Northern District of Georgia
- Raul Landaverde-Giron, aka “Decente,” aka “Humilde”
Age: 32
Place of Birth: El Salvador
United States District Court of Prosecution: District of Maryland
- Larry Navarete, aka “El Socio”
Age: 41
Place of Birth: Nicaragua
United States District Court of Prosecution: Western District of Arkansas
- Jorge Parada, aka “Rama”
Age: 42
Place of Birth: El Salvador
United States District Court of Prosecution: Eastern District of Virginia
- Hector Ramires, aka “Cuervo”
Age: 28
Place of Birth: Honduras
United States District Court of Prosecution: District of Massachusetts
- Sergio Sibrian, aka “Anytime”
Age: 29
Place of Birth: El Salvador
United States District Court of Prosecution: Central District of California
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6 April 2022
York Woman Pleads Guilty to Wire Fraud Conspiracy Related to Pandemic Unemployment Assistance BenefitsRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Tami Mateljan, age 46, of York, Pennsylvania, entered a plea of guilty before United States District Court Judge Sylvia H. Rambo for conspiring to commit wire fraud.
According to United States Attorney John C. Gurganus, between October 2020 and December 2020, conspirators submitted fraudulent applications for pandemic unemployment assistance (PUA) to Colorado and Ohio, using the names and personal information of other individuals without authorization. The states transferred the fraudulently obtained PUA benefits to accounts owned by Mateljan. She then used some of the money for her own benefit and transferred the remaining money to conspirators in other countries, including Nigeria.
The case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
If convicted, the maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Woman Pleads Guilty for $43.8 Million COVID-19 Relief Fraud SchemeRead the Press Release
An Oklahoma woman pleaded guilty today in the Western District of New York for a scheme to defraud the Paycheck Protection Program (PPP) of over $43.8 million in COVID-19 relief loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Amanda J. Gloria, 45, of Altus, admitted that she conspired to submit at least 153 fraudulent PPP applications seeking a total of approximately $43.8 million on behalf of at least 111 entities between approximately May 2020 and June 2021. Gloria admitted that she falsified or aided and assisted with falsifying various information on these loan applications, including the number of employees, payroll expenses and documentation, and federal tax filings. Gloria then submitted or aided and assisted with the submission of the fraudulent PPP applications to financial institutions. In total, the recipient entities unlawfully obtained approximately $32.5 million in PPP funds. From those fraudulently obtained funds, Gloria personally received at least approximately $1.7 million.
Gloria also admitted that she conspired with Adam D. Arena to submit a fraudulent PPP loan application seeking approximately $954,000 for ADA Auto Group LLC, a previously inactive Florida-based business owned and controlled by Arena. After fraudulently obtaining the PPP loan, Gloria directed Arena to launder the proceeds, including by transferring nearly $25,000 to a bank account held in the name of WildWest Trucking LLC, an Oklahoma-based business owned and controlled by Gloria. Gloria also admitted that she submitted and fraudulently obtained a separate PPP loan for WildWest Trucking LLC for approximately $421,000. Arena pleaded guilty in November 2021 to one count of conspiracy to commit bank fraud and one count of engaging in a monetary transaction with criminally derived proceeds in a related case.
Gloria is scheduled to be sentenced on July 20 and faces up to 30 years in prison for conspiracy to commit bank fraud and up to 10 years in prison for money laundering. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Trini E. Ross for the Western District of New York; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge Stephen Belongia of the FBI’s Buffalo Field Office; and Special Agent in Charge Thomas Fattorusso of IRS Criminal Investigation (IRS‑CI) made the announcement.
The FBI and IRS-CI are investigating the case.
Assistant Chief Cory E. Jacobs and Trial Attorney Jennifer Bilinkas of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Laura A. Higgins for the Western District of New York are prosecuting the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Woman Pleads Guilty for $43.8 Million COVID-19 Relief Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY – An Oklahoma woman pleaded guilty today in the Western District of New York for a scheme to defraud the Paycheck Protection Program (PPP) of over $43.8 million in COVID-19 relief loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Amanda J. Gloria, 45, of Altus, admitted that she conspired to submit at least 153 fraudulent PPP applications seeking a total of approximately $43.8 million on behalf of at least 111 entities between approximately May 2020 and June 2021. Gloria admitted that she falsified or aided and assisted with falsifying various information on these loan applications, including the number of employees, payroll expenses and documentation, and federal tax filings. Gloria then submitted or aided and assisted with the submission of the fraudulent PPP applications to financial institutions. In total, the recipient entities unlawfully obtained approximately $32.5 million in PPP funds. From those fraudulently obtained funds, Gloria personally received at least approximately $1.7 million.
Gloria also admitted that she conspired with Adam D. Arena to submit a fraudulent PPP loan application seeking approximately $954,000 for ADA Auto Group LLC, a previously inactive Florida-based business owned and controlled by Arena. After fraudulently obtaining the PPP loan, Gloria directed Arena to launder the proceeds, including by transferring nearly $25,000 to a bank account held in the name of WildWest Trucking LLC, an Oklahoma-based business owned and controlled by Gloria. Gloria also admitted that she submitted and fraudulently obtained a separate PPP loan for WildWest Trucking LLC for approximately $421,000. Arena pleaded guilty in November 2021 to one count of conspiracy to commit bank fraud and one count of engaging in a monetary transaction with criminally derived proceeds in a related case.
Gloria is scheduled to be sentenced on July 20 and faces up to 30 years in prison for conspiracy to commit bank fraud and up to 10 years in prison for money laundering. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Trini E. Ross for the Western District of New York; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge Stephen Belongia of the FBI’s Buffalo Field Office; and Special Agent in Charge Thomas Fattorusso of IRS Criminal Investigation (IRS CI) made the announcement.
The FBI and IRS-CI are investigating the case.
Assistant Chief Cory E. Jacobs and Trial Attorney Jennifer Bilinkas of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Laura A. Higgins for the Western District of New York are prosecuting the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866 720 5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Wilmington Man Sentenced to 66 Months in Federal Prison for Illegal Possession of AmmunitionRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Donta Thomas, of Wilmington, was sentenced today to 66 months in federal prison by U.S. District Judge Richard G. Andrews for illegally possessing ammunition.
Mr. Thomas, 23, was arrested after he fled from officers during a traffic stop. A foot chase ensued, in which Mr. Thomas was observed tossing a privately made firearm onto the ground. Officers recovered the firearm and discovered it was loaded with one round of ammunition in the chamber and 15 in the magazine. Mr. Thomas was not legally permitted to possess a firearm or ammunition because of his prior felony convictions, which include armed robbery and armed carjacking. Mr. Thomas was taken into custody and admitted to possessing the loaded gun. He has been in custody since his arrest on January 23, 2020.
U.S. Attorney Weiss stated, “Our community is fighting the scourge of gun crime, and illegally possessed weapons are a key part of the problem. That problem is exacerbated when those weapons are privately made firearms, also known as “ghost guns.” Unfortunately, the illegal use of these ghost guns is becoming more prevalent in Delaware. Such firearms lack a serial number, making them nearly impossible for law enforcement to trace. I want to thank the Wilmington Police Department and ATF for their work in ensuring that another illegally possessed weapon has been removed from the streets.”
“Any firearm in the hands of someone who is prohibited from having them is a safety concern, but that concern and risk to the public increases exponentially when it is someone with multiple previous violent, armed offenses,” said ATF Special Agent in Charge Toni M. Crosby. “ATF is committed to working alongside our state and local partners, as well as prosecutors, to ensure that cases like this are investigated and those with violent intentions are removed from our communities.”
The case was investigated by the Wilmington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Former Assistant U.S. Attorney Maureen McCartney and Assistant U.S. Attorney Briana Knox prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER.
Wheeling man sentenced for his role in drug conspiracyRead the Press Release
WHEELING, WEST VIRGINIA – Carlos Leeper, of Wheeling, West Virginia, was sentenced today to 96 months of incarceration for his role in a drug conspiracy, United States Attorney William Ihlenfeld announced.
Leeper, also known as “Los,” 58, pleaded guilty in March 2021 to one count of “Maintaining Drug-Involved Premises within 1000 Feet of a Protected Location.” Leeper admitted to owning a house on South York Street on Wheeling Island for the purpose of storing and selling heroin and cocaine base, also known as “crack.” The house is within 1,000 feet of Jensen Playground. The crime occurred from May 2019 to August 2020.
Assistant U.S. Attorneys Shawn M. Adkins and Clayton J. Reid prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The U.S. Marshal Service, Columbus Police Department Gang Crimes Unit, the Martins Ferry Police Department, and the Bellaire Police Department also assisted.
U.S. District Judge John Preston Bailey presided.
Find the original press release here: https://www.justice.gov/usao-ndwv/pr/26-charged-drug-conspiracy-involving-heroin-fentanyl-crack-cocaine-and-meth-wheeling
Virginia Man Pleads Guilty to Federal Charge for Dealing Firearms Without a LicenseRead the Press Release
Greenbelt, Maryland – Steven Darnell Richers, age 25, of Manassas, Virginia, pleaded guilty yesterday to conspiracy to engage in the business of dealing in firearms and ammunition without a license.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Charles County Sheriff Troy Berry.
According to his guilty plea, from at least January through March of 2019, Richers conspired with another federal defendant, Christopher Heard, to sell firearms and ammunition. For example, on January 22, 2019, Richers exchanged text messages with Heard about firearms trafficking activity and meeting for a transaction. In their conversation, Heard told Richers that he would bring Richers, who was living in Virginia at the time, “endless clients.” Heard also told Richers that Heard was coming from Maryland to meet with Richers in Virginia.
In furtherance of the conspiracy, on or about January 25, 2019, Heard sold an unloaded 9mm semi-automatic pistol and fourteen rounds of 9mm ammunition to a Confidential Source 1 (“CS 1”) in Maryland for $700. On January 26, 2019, Richers sent a text message to Heard that stated in part “I knew you were finna sell that hk lol.”
On February 5, 2019, CS 1 introduced Heard to another individual (“CS 2”). During that meeting in Maryland, Heard informed CS 2 that he could get CS 2 a firearm and displayed to CS 2 a .22 long rifle caliber firearm. Later that day, CS 2 had a phone call with Heard. During the call, Heard stated that he could get whatever firearms CS2 needed and that he had someone in Virginia who could get whatever firearm he wanted, including a brand new AR short barrel. Heard stated, “That’s where I get all my joints from Virginia…everything clean and fresh out the box.”
On March 25, 2019, Richers exchanged text messages with Heard about firearms trafficking activity. Richers sent an image of an AR-type rifle that Richers had in his residence at the time. Heard asked, “how much,” and Richers said that the price was $560.
On October 9, 2019, law enforcement officers executed a federal search warrant at Richers’s residence and seized, among other things: approximately 1,727 rounds of assorted ammunition; a 12 Gauge shotgun; a 40-caliber pistol; and .380v caliber pistol. The seized firearms and ammunition were involved in or used in Richers’s business of dealing in firearms without a license.
Richers faces a maximum sentence of five years in prison for conspiracy to engage in the sale of firearms and ammunition without a license. U.S. District Judge George J. Hazel has scheduled sentencing for August 8, 2022 at 2:00 p.m.
Christopher Maurice Heard, age 32, of Waldorf, Maryland previously pleaded guilty to being a felon in possession of firearms and ammunition and is scheduled to be sentenced on April 28, 2022.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Erek L. Barron commended the ATF and the Charles County Sheriff’s Office for their work in the investigation and thanked the Mr. Barron thanked Assistant U.S. Attorney Dwight J. Draughon, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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U.S. Citizen Sentenced to 20 Years’ Imprisonment for Attempting to Provide Material Support to ISISRead the Press Release
Earlier today in federal court in Brooklyn, Bernard Raymond Augustine was sentenced by United States District Judge Sterling Johnson, Jr. to 20 years’ imprisonment for attempting to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham (“ISIS” or “the Islamic State”). Augustine, a U.S. citizen and California resident, was convicted by a federal jury after a one-week trial in August 2021.
Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Today’s sentence ensures this dangerous defendant will not join ISIS as he tried to do in 2016, and testified at trial that he would do again if the jury acquitted him. The trial evidence demonstrated that Augustine is a committed supporter of ISIS, that he glorified beheadings and other acts of terror, and that he intended to support the terrorist organization by encouraging more English speakers to join its ranks,” stated United States Attorney Peace. “Detecting and thwarting terrorism and keeping the people of this country safe will always be priorities of this Office.” Mr. Peace praised the work of the FBI’s New York Joint Terrorism Task Force on the case.
“The sentence Mr. Augustine received today insures he will never achieve his stated ambition of joining ISIS and supporting the terrorist group's pursuit of its reprehensible goals. Protecting our nation from terrorism in all its forms remains the FBI's top priority, and today's outcome is the latest example of our commitment to pursuing this mission both domestically and globally,” stated FBI Assistant Director-in-Charge Driscoll.
“Protecting our nation’s security is paramount, and this case illustrates our continued commitment to fight terrorism in every form, both here and abroad,” stated NYPD Commissioner Sewell. “Any person who puts American lives at risk will be held accountable to the fullest extent of the law, and I want to thank the U.S. Attorney’s Office for the Eastern District of New York, the Justice Department’s National Security Division, the Federal Bureau of Investigation, the members of the FBI/NYPD Joint Terrorism Task Force, and everyone else who prevented this threat and kept Americans safe.”
The evidence at trial established that in February 2016, Augustine traveled from San Francisco, California to Northern Africa, with the goal of joining ISIS, a designated foreign terrorist organization. After arriving in Tunisia, Augustine was detained by local authorities before he could make it to ISIS-controlled territory across the border in Libya. He was returned to the United States in 2018 and prosecuted in the Eastern District of New York.
In the months leading up to his travel, Augustine watched ISIS propaganda, including videos glorifying ISIS’s violence, such as “The Flames of War.” He conducted internet searches for, among other things, “how to safely join ISIS,” and reviewed websites related to ISIS recruitment practices, including one titled “How does a Westerner join ISIS? Is there a recruitment or application process?” Augustine also posted numerous statements in support of ISIS and violent extremism, such as “the Islamic State is the true Islam,” “Muslims who leave the west . . . answer the call for the struggle, and march until they are victorious or martyred are the true believers,” and the ISIS caliphate “can’t be established and maintained except through the blood of the mujahideen who practice the true belief.”
The defendant represented himself at trial and testified that he maintained his interest in supporting ISIS. Augustine testified that ISIS videos of members executing Syrian captives and beheadings were “good” and “really cool.” He admitted that one way he intended to provide material support to ISIS was to participate in ISIS propaganda videos, by providing the necessary English-language voice over. When asked to confirm his testimony that he “would do it all again and would go back today,” Augustine responded, “No, tomorrow, when they let me off.”
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Craig R. Heeren, Josh Hafetz, and Jonathan E. Algor are in charge of the prosecution, with assistance provided by Trial Attorney Justin Sher of the Counterterrorism Section of the Department of Justice.
The Defendant:
BERNARD RAYMOND AUGUSTINE
Age: 25
Keyes, CaliforniaE.D.N.Y. Docket No. 18-CR-383 (SJ)
Two Louisville Men Indicted by Federal Grand Jury for Illegal Possession of Firearms and AmmunitionRead the Press Release
LOUISVILLE, KY – A federal grand jury in Louisville, Kentucky, returned indictments in two separate cases on April 5, 2022, charging two Louisville men with illegal possession of firearms and ammunition.
According to court documents, Rajae Tinker, 19, of Louisville was indicted for possession of a firearm by a convicted felon on September 11, 2021, and on January 20, 2022.
Isaiah Stoner, 23, of Louisville was indicted for possession of ammunition by a convicted felon and for possession of fentanyl with intent to distribute on March 21, 2022.
Tinker will be scheduled for an initial court appearance in the U.S. District Court for the Western District of Kentucky. Stoner is currently scheduled for an initial court appearance on April 14, 2022, before U.S. Magistrate Judge Regina S. Edwards of the U.S. District Court for the Western District of Kentucky. If convicted of the firearm and ammunition offenses, both face a maximum penalty of 10 years in prison. If Stoner is convicted of the additional fentanyl related charge, he faces a maximum penalty of 40 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge R. Shawn Morrow of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement.
The ATF and the Louisville Metro Police Department are investigating the cases.
Assistant U.S. Attorney Joshua Porter is prosecuting the Tinker case and Assistant U.S. Attorney Alicia Gomez is prosecuting the Stoner case.
Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Texas Man Sentenced in Cryptocurrency Money Laundering ConspiracyRead the Press Release
TYLER, Texas – An Irving man has been sentenced to federal prison for his role in a cryptocurrency money laundering conspiracy in the Eastern District of Texas, announced U.S. Attorney Brit Featherston.
Deependra Bhusal, 46, pleaded guilty on April 30, 2021, to conspiracy to commit money laundering and was sentenced to 46 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.
According to information presented in court, Bhusal was involved in a multi-year money laundering conspiracy involving the laundering of criminal proceeds derived from various scams. Bhusal’s role in the money laundering conspiracy was to open bank accounts and mailboxes that were used to receive and transact victim funds, to receive the victim funds, to engage in subsequent financial transactions, routinely structured in amounts under $10,000 in an effort to evade reporting requirements and to conceal the nature and source of the criminal proceeds, and to move the criminal proceeds to foreign co-conspirators. Bhusal and his co-conspirators routinely exchanged the criminal proceeds for cryptocurrency and directed the cryptocurrency to wallets under the control of their foreign co-conspirators. In August 2020, Bhusal and his co-conspirators traveled to Longview, Texas, where they attempted to exchange approximately $450,000 in criminal proceeds for Bitcoin.
In the course of the operation, Bhusal was personally responsible for laundering $1,437,358.99 in criminal proceeds.
On March 10, 2022, co-conspirators Lois Boyd, 75, of Amelia Court House, Virginia, and Manik Mehtani, 33, of McLean, Virginia, were named in an indictment returned by a federal grand jury, charging them with a violation of the Travel Act, money laundering, and money laundering conspiracy.
If convicted, Boyd and Mehtani face up to 20 years in federal prison. A grand jury indictment is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being investigated by the U.S. Secret Service and the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and L. Frank Coan, Jr.
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Texas Man Chartered Private Plane to Transport Cocaine from Houston to PittsburghRead the Press Release
PITTSBURGH, PA – A resident of Houston, Texas, pleaded guilty in federal court to violating federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Cindy Chung announced today.
Adrian Alvarez, age 28, pleaded guilty to one count of conspiracy and one count of possession with intent to distribute five kilograms or more of cocaine before United States District
Judge Christy Criswell Wiegand. Alvarez was one of 47 defendants charged in six related indictments as part of the Return to Sender investigation.
In connection with the guilty plea, the court was advised that on October 22, 2020, Alvarez and three other individuals chartered a private plane and transported six kilograms of cocaine from Houston to Pittsburgh International Airport. Investigators obtained a search warrant for the plane and seized the cocaine from two pieces of luggage.
Judge Wiegand scheduled sentencing for August 23, 2022, at 10:00 a.m. The law provides for a maximum total sentence of not less than 10 years to a maximum of life in prison, a fine not to exceed $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued the defendant on bond.
Assistant United States Attorneys Jonathan D. Lusty and Michael R. Ball are prosecuting this case on behalf of the government.
The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Tax Preparer Pleads Guilty to Aiding in the Preparation of False Tax ReturnsRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Eugene Fanfan has pleaded guilty to one count of aiding in the preparation of filing a false tax return. He faces a maximum penalty of three years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Fanfan helped to prepare numerous false and fraudulent income tax returns on behalf of clients in 2016. Those tax returns contained false information about clients’ business income and loss, as well as false claims relating to the American Opportunity Credit. As a result of those false entries, Fanfan’s clients were able to claim and receive substantial refunds from the IRS which his clients were not lawfully entitled to receive. Those refunds exceeded $100,000.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Tiffany E. Fields.