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22 March 2022
Virginia Man Pleads Guilty to Attempted Production and Possession of Child PornographyRead the Press Release
ALEXANDRIA, Va. – A Fairfax man pleaded guilty last week to attempted production of child pornography and possession of child pornography.
According to court documents, Brian Scott McGalem, 24, repeatedly engaged in sexually explicit discussions with at least six minors where he attempted to persuade several of the victims to produce sexually explicit pictures of themselves and send them to him. At least three of the minor victims were under the age of 12 at the time of the offense. During these discussions, which took place on several social media platforms under the monikers “Random Hipster#2429” and “Sircoolbeans,” McGalem attempted to groom and entice the minors to record themselves engaging in sexually explicit activity and he sent some of the minors sexually explicit images of himself. Moreover, McGalem’s electronic devices contained several images and videos of child sexual abuse material.
McGalem is scheduled to be sentenced on August 17. He faces a mandatory minimum of 15 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Raymond Villanueva, Special Agent in Charge U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea.
Assistant U.S. Attorney Jonathan S. Keim and Special Assistant U.S. Attorney Whitney Kramer are prosecuting the case.
The Department of Homeland Security, Homeland Security Investigations, continues to attempt to identify additional victims. Anyone with information regarding these crimes is encouraged to e-mail the HSI Tip Line: www.ice.gov/tips or by calling: 1-866-DHS-2-ICE.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-48.
VIPD Crime Prevention Bureau, Project Safe Neighborhoods, and Community Leaders Invite Everyone to Support the Oswald Harris Court Community on St. Thomas with a Walk Through the Neighborhood on Thursday, March 24th a 4:00 p.m.Read the Press Release
St. Thomas, USVI - United States Attorney, Gretchen C.F. Shappert announced today that members of the Virgin Islands Police Department Crime Prevention Bureau, the U.S. Virgin Islands Project Safe Neighborhood initiative, and Community leaders, together with representatives from the neighborhood, will be meeting at Oswald Harris Court on Thursday, March 24th at 4:00 p.m. to walk the neighborhood and hear concerns from community residents.
U.S. Attorney Shappert noted that the Oswald Harris Court community has experienced tragic violence and death in the past several years. “On September 13th of 2020, residents of the Oswald Harris Court community heard gunshots in the vicinity of the basketball court. Moments later, 31-year-old Secori Akeel Elmes was found dead. His tragic death was one of several homicides for that year within the U.S. Virgin Islands,” Shappert said. “Recently, on February 16th, law enforcement officers responded on a report of a large fight and of shots being fired. During which, a 26-year-old man was stabbed in the neck. These senseless acts of violence profoundly impact our community,” said Shappert.
For more information about the Oswald Harris Court walk, please contact 340-244-6539.
Project Safe Neighborhoods (PSN) is a nationwide Department of Justice initiative to reduce gun crime in America through strategic partnerships between federal, local, and community stakeholders. PSN targets gun crime and gun-related violence, while supporting violence reduction strategies and the coordination of community-based partnerships. The goal is to create safer neighborhoods by reducing gun violence and fostering public safety.
United States and Canada Welcome Negotiations of a CLOUD Act AgreementRead the Press Release
The United States and Canada have entered into formal negotiations for a bilateral agreement under the Clarifying Lawful Overseas Use of Data (CLOUD) Act, to enhance the existing robust law enforcement cooperation between the two allies.
Attorney General Merrick Garland welcomed the opening of negotiations.
“The United States looks forward to working with the Government of Canada on negotiating this agreement,” said Attorney General Garland. “Such an agreement, if finalized and approved, would pave the way for more efficient cross-border disclosures of data between the United States and Canada so that our governments can more effectively fight serious crime, including terrorism, while safeguarding the privacy and civil liberties values that we both share. By increasing the effectiveness of investigations and prosecutions of serious crime, including terrorism, in both countries, we seek to enhance the safety and security of citizens on both sides of the U.S.-Canada border.”
The United States enacted the CLOUD Act in 2018 to streamline access to electronic information held by providers that is critical to investigations of serious crime, including terrorism, while maintaining strong protections for the rule of law, privacy, and civil liberties. The act creates a new paradigm: an efficient, privacy and civil liberties-protective approach to ensure effective access to electronic information through executive agreements between the United States and trusted foreign partners. Pursuant to such agreements, legal barriers prohibiting service providers subject to U.S. laws from responding to lawful orders to disclose electronic evidence that are issued by the other party will be lifted, and reciprocal access will be permitted under the laws of the trusted foreign partner.
While such electronic information can currently be sought through the mutual legal assistance (MLA) process, the CLOUD Act provides an alternative expedited framework for obtaining it while protecting privacy and civil liberties. The number of MLA requests for electronic information held by service providers in the United States has increased dramatically in recent years, straining resources and slowing response times under the current MLA process. The CLOUD Act addresses delays in that process by providing an additional path for trusted partner countries to obtain electronic information.
For more information on the CLOUD Act, visit: https://www.justice.gov/dag/cloudact and https://www.justice.gov/dag/page/file/1153466/download.
United States Attorney’s Office Announces Partnership with Special Inspector General for Pandemic Recovery to Address FraudRead the Press Release
OKLAHOMA CITY – United States Attorney Robert J. Troester and Special Inspector General Brian D. Miller of the Office of the Special Inspector General for Pandemic Recovery (SIGPR) jointly announced today that their offices have entered into a Memorandum of Understanding (MOU) to further strengthen and enhance the already existing cooperative efforts to investigate and prosecute fraud involving loans, loan guarantees and other relief made by the Secretary of the Treasury under the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020, which included over $2 trillion in emergency financial assistance designed to provide immediate help for American businesses and individuals.
"It is regrettable that the government relief programs provided by Congress to aid those in need, as a result of the pandemic, have been exploited by fraud," said U.S. Attorney Troester. "We have already been working closely with SIGPR to address these fraudulent schemes. This partnership with SIGPR strengthens and enhances that on-going effort."
"Our partnership with the U.S. Attorney’s Office for the Western District of Oklahoma has already produced results," said Special Inspector General Miller. "We continue to work together to hold accountable those who would misuse pandemic funds meant to support vulnerable businesses and individuals in their time of need."
The MOU outlines four key objectives: (1) Provide a coordinated response to CARES Act-funding fraud, with an emphasis on organized criminal activity, as well as criminal and civil fraud affecting federal money, vulnerable victims, and fraud recidivists; (2) facilitate legal process, case intake, and swift prosecution of CARES Act-related fraud; (3) link and associate isolated CARES Act-related complaints with larger schemes and related unlawful activity; and (4) deter future CARES Act funding fraud through an enhanced awareness of criminal and civil penalties and successful prosecution of individuals and companies involved in CARES Act related financial fraud. The partnership will help ensure regular communication and coordination with regulators and law enforcement so that just results can be achieved through the strategic use of criminal and civil remedies to address fraudulent schemes.
Oklahomans who believe they are victims or witnesses of fraudulent activity related to the pandemic should report it to the following:
- SIGPR Hotline Complaint
- SIGPR Whistleblower Complaint
- FBI’s Internet Crime Complaint Center
- For more information from the Department of Justice about reporting frauds related to the pandemic, see https://www.justice.gov/coronavirus
Two admit to trafficking $29M in methRead the Press Release
McALLEN, Texas – Two Houston-area residents have pleaded guilty to possessing with intent to distribute 777 kilograms of meth, announced U.S. Attorney Jennifer B. Lowery.
Eduardo Figueroa Jr, 26, Cleveland, and Cynara Lucia Sarmiento, 23, Conroe, pleaded guilty to both counts of possession with intent to distribute meth.
Figueroa hired Sarmiento as his personal assistant and tasked her with leasing the warehouse space and forming Hive Logistics, a business warehouse located in Houston.
On May 12, 2021, authorities executed a search at the location and discovered 777 kilograms of meth, 10 kilograms of cocaine, ledgers, two pistols and five magazines. The meth was located inside metal barrels marked as mango puree.
As part of the plea, Figueroa admitted the meth was part of a larger shipment he had received, of which approximately 800 kilograms had already been delivered to several individuals. Sarmiento admitted to creating a ledger for the drugs and delivering them on at least one occasion with Figueroa.
The estimated street value of the meth is $29 million.
Sentencing has been set for June 1 before U.S. District Judge Ricardo H. Hinojosa. At that time, Figueroa and Sarmiento each face up to life in prison and a possible $10 million maximum fine.
Figueroa has been and will remain in custody pending that hearing, while Sarmiento was permitted to remain on bond.
This case is part of an exportation and straw purchasing of firearms investigation from March 2021 in which where Figueroa was identified as a recruiter. He also pleaded guilty to conspiracy to straw purchase five shotguns on Nov. 22, 2021.
Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney M. Alexis Garcia is prosecuting the case.
The U.S. and Canada Reestablish the Cross-Border Crime ForumRead the Press Release
Guided by our shared commitment outlined in President Biden and Prime Minister Trudeau’s February 2021 Roadmap for a Renewed U.S.-Canada Partnership to re-establish the Cross-Border Crime Forum (CBCF), the Attorney General of the United States, Merrick Garland, and the U.S. Secretary of Homeland Security, Alejandro N. Mayorkas, along with Canada’s Minister of Justice and Attorney General, David Lametti, and Minister of Public Safety, Marco Mendicino, met today in Washington, D.C. to discuss how to enhance collaboration between our two countries to counter cross-border crime and make our communities safer.
Cybercrime
Given the interconnectedness of U.S. and Canadian industry and economies, we affirm our shared commitment to work bilaterally to combat common cyber threats, such as ransomware attacks, and to strengthen critical infrastructure cyber security and resilience. We will work together to improve coordination around reporting of ransomware attacks that can affect cross-border critical infrastructure. Further, we will identify and implement options to strengthen sectors of our economies that are increasingly targeted by criminals and to implement effective responses. We have agreed to promote the adoption of best practices on cyber hygiene to help defend against these threats as well as provide stakeholders with the tools needed to effectively and rapidly report cyber incidents. We are working vigilantly to protect the cybersecurity of our critical infrastructure sectors given Russia’s further invasion of Ukraine. We also reiterated our commitment to work together through the G7+ REPO Task Force to locate and freeze virtual and physical assets of sanctioned Russian individuals and entities, and to forfeit the proceeds of kleptocracy or other crimes.
We welcomed negotiations for a potential bilateral agreement in relation to the U.S. Clarifying Lawful Overseas Use of Data Act (CLOUD Act). Such an agreement, if finalized and approved, would allow Canadian and U.S. investigative authorities to, more efficiently and effectively, access communications and associated data in the other country when this information is needed for the prevention, detection, investigation, and prosecution of serious crime, such as terrorism, child sexual exploitation and abuse, and cybercrime, while respecting privacy and civil liberties.
Violent Extremism
Violent extremism poses a real and ongoing threat to our communities, and we remain committed to addressing it in all its forms. We applaud the ongoing efforts of the bilateral working group established under the Roadmap to enhance cooperation to counter exploitation of social media, strengthen threat-related information sharing, and improve our respective prevention strategies to address violent extremism in both countries. We will continue to advance these efforts and to counter the rise of violent extremism while staying vigilant against the threat of international terrorism. In doing so, we recognize that due process, respect for the rule of law, and the protection of human rights are critical to the success of these efforts.
Enhancing Public Safety
Our two countries have longstanding and effective bilateral cooperation on law enforcement issues. These partnerships strengthen our ability to maximize law enforcement resources and make our communities safer. As partners, we must adapt law enforcement efforts and information sharing as priority areas evolve and new challenges arise, including, but not limited to facilitating investigations, and to improving prosecutorial processes. We are committed to combatting transnational crime such as human smuggling across our shared border. We are equally committed to minimizing ongoing threats posed by serious offenders, including convicted child sex offenders, by exploring actions we can take to improve reciprocal information sharing processes.
Reducing Firearms Violence
To keep our communities safe and secure, it is essential to reduce firearms violence on both sides of the border. We reiterate our commitment to advance our shared understanding of the threat posed by firearms violence and to work collaboratively, including sharing data, to reduce cross-border firearms smuggling and trafficking. Our law enforcement agencies will leverage their collective resources, including intelligence, to identify the source and movement of unlawful firearms into our countries, including those moving across our shared border.
Access to Justice
The United States and Canada are committed to strengthening and expanding access to justice by changing policies and practices that lead to inequality and injustice for marginalized and underserved communities in our countries. Our respective Access to Justice offices will work together and with key stakeholders toward meeting the goal of the United Nations 2030 Agenda “to leave no one behind.” We have agreed to discuss our respective criminal justice system data collection and strategies to overcome systemic racial inequality, discrimination, and overrepresentation within the criminal justice system. We will also share research, innovative data collection techniques, and the use of data science to inform our legislation and policies. These discussions will support our collective efforts to realize the United Nations Sustainable Development Goals (UNSDGs), in particular SDG16, which seeks to advance peaceful, just, and inclusive societies and equal access to justice for all.
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The United States and Canada reiterated our commitment to advance law enforcement cooperation between our two countries and look forward to Canada hosting the next CBCF in 2023.
Ten Texas Doctors and a Healthcare Executive Agree to Pay over $1.68 Million to Settle Kickback AllegationsRead the Press Release
SHERMAN, Texas – Ten additional Texas doctors and a healthcare executive have agreed to pay a total of $1,680,430 to resolve False Claims Act allegations involving illegal kickbacks in violation of the Anti-Kickback Statute and Stark Law, and to cooperate with the Department’s investigations of and litigation against other parties, announced Eastern District of Texas U.S. Attorney Brit Featherston today.
“There is nothing more paramount to justice than holding all individuals accountable for committing and profiting from healthcare fraud, no matter their station in life,” said U.S. Attorney Brit Featherston. “These additional settlements with these physicians and another healthcare executive exude our office’s continued dedication to pursuing all individuals who have tried to disguise their illegal kickback schemes under a fig-leaf of legitimacy through purported investment opportunities in order to enrich themselves at the expense of taxpayer-funded healthcare programs.”
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. The Stark Law forbids a hospital or laboratory from billing Medicare for certain services referred by physicians that have a financial relationship with the hospital or laboratory. The Anti-Kickback Statute and the Stark Law are intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The settlements announced today resolve allegations that ten Texas doctors violated the Anti-Kickback Statute by receiving thousands of dollars in remuneration from eight management service organizations (MSOs) in exchange for ordering laboratory tests from Rockdale Hospital d/b/a Little River Healthcare (Little River), True Health Diagnostics LLC (True Health), and/or Boston Heart Diagnostics Corporation (Boston Heart). Little River allegedly funded the remuneration to certain doctors, in the form of volume-based commissions paid to independent contractor recruiters, who used MSOs to pay numerous doctors for their referrals. The MSO payments to the doctors were allegedly disguised as investment returns but in fact were based on, and offered in exchange for, the doctors’ referrals.
- Tamar Brionez, M.D., of Spring, Texas, agreed to pay $85,006 to settle allegations that from March 14, 2016 to March 16, 2017 she received kickbacks from an MSO, Tomball Medical Management, Inc., in exchange for ordering laboratory tests from Little River.
- Gary Goff, M.D., of Dallas, Texas, and two affiliated entities, Gary Goff, MD, PA and DFW Primary Medical Alliance, LLC, agreed to pay $454,088 to settle allegations that from August 5, 2015 to September 7, 2018 he and his entities received kickbacks from two MSOs, Alpha Rise Health, LLC and HALOS Clinical Management, LLC, in exchange for ordering laboratory tests from True Health and Little River.
- John Hierholzer, M.D., of San Antonio, Texas, agreed to pay $24,850 to settle allegations that from May 18, 2015 to February 12, 2016, he received kickbacks from an MSO, Alpha Rise Health, LLC, in exchange for ordering laboratory tests from Boston Heart and Little River.
- Bruce Maniet, D.O., of Bells, Texas, agreed to pay $175,436 to settle allegations that from January 18, 2016 to October 23, 2017 he received kickbacks from two MSOs, Ascend MSO of TX, LLC and Herculis MG LLC, in exchange for ordering laboratory tests from Boston Heart and Little River.
- Huy Chi Nguyen, M.D., of Arlington, Texas, agreed to pay $211,821 to settle allegations that from October 30, 2015 to December 31, 2017 he received kickbacks from (a) one MSO, Ascend MSO of TX, LLC, in exchange for ordering laboratory tests from True Health and Little River; and (b) another MSO, Geminorium MG LLC, in exchange for ordering laboratory tests from Boston Heart.
- Dung Chi Nguyen, M.D., of Arlington, Texas, agreed to pay $211,721 to settle allegations that from November 4, 2015 to December 31, 2017 he received kickbacks from (a) one MSO, Ascend MSO of TX, LLC, in exchange for ordering laboratory tests from True Health and Little River; and (b) another MSO, Geminorium MG LLC, in exchange for ordering laboratory tests from Boston Heart.
- Rakesh Patel, D.O., of Houston, Texas, agreed to pay $174,539 to settle allegations that from August 25, 2015 to April 19, 2017 he received kickbacks from an MSO, SYNRG Partners LLC, in exchange for ordering laboratory tests from True Health and Little River.
- Cuong Trinh, M.D., of Houston, Texas, agreed to pay $45,056 to settle allegations that from July 28, 2015 to August 30, 2016 she received kickbacks from an MSO, SYNRG Partners LLC, in exchange for ordering Boston Heart laboratory tests from Little River.
- Randall Walker, M.D., of Magnolia, Texas, agreed to pay $60,898 to settle allegations that from November 7, 2014 to August 28, 2015 he received kickbacks from two MSOs, North Houston MSO Group, Inc. and Tomball Medical Management, Inc., in exchange for ordering laboratory tests from Little River.
- Michael Whiteley, D.O., of Tomball, Texas, agreed to pay $52,015 to settle allegations that from January 5, 2015 to July 10, 2015 he received kickbacks from two MSOs, North Houston MSO Group, Inc. and Tomball Medical Management, Inc., in exchange for ordering laboratory tests from Little River.
As part of their settlements, the ten physicians have agreed to cooperate with the Department of Justice’s investigations of and litigation against other parties involved in the alleged violations of law.
In addition, the United States announced a settlement with Brett Markowitz, the founder and CEO of Florida Rejuvenation Holdings, LLC, which operates medical practices in Tampa, Florida (collectively, the Tampa Practices). From October 18, 2016 through February 19, 2018, True Health representatives allegedly arranged for True Health to pay for each patient that physicians at the Tampa Practices referred to True Health for clinical laboratory services. True Health allegedly initially paid $25 per referral to The Blood Spot, Inc. (TBS), a company associated with and controlled in part by a True Health representative, and True Health allegedly subsequently paid $35 per referral to Express Mobile Labs, LLC (EML), a company associated with and controlled in part by Markowitz. True Health, TBS, EML, and Markowitz allegedly disguised the payments as purported processing and handling (P&H) fees. As alleged, True Health and Markowitz knew and intended that TBS and EML would pay some or all of True Health’s P&H fee payments to Markowitz, directly or indirectly, in cash or in kind. Pursuant to the alleged arrangement, True Health billed the resulting claims to Medicare and other federal healthcare programs. Under the terms of the settlement agreement, Markowitz agreed to pay $185,000 and to cooperate with the Department’s investigations of and litigation against other parties.
“Health care providers engaging in kickback schemes undermine both the public’s trust in medical institutions and the financial integrity of federal health care programs. Medical decision-making should be based on the well-being of patients, rather than the desire for ill-gotten profits,” said HHS-OIG Special Agent in Charge Miranda L. Bennett. “Working with our law enforcement partners, our agency is committed to thoroughly investigating such allegations of fraud.”
“As the investigative arm of the DoD Office of Inspector General, the Defense Criminal Investigative Service (DCIS) and our colleagues work hard to hold accountable those who undermine Federal health care programs such as TRICARE,” said Acting Special Agent in Charge Gregory P. Shilling of the DCIS Southwest Field Office. “Today’s announcement is another example of those efforts in making the Government, and ultimately taxpayer, as whole as possible.”
“These additional settlements send a clear message that all who would seek to defraud federal healthcare programs will be held accountable,” said Special Agent in Charge Jeffrey Breen of the Department of Veterans Affairs Office of Inspector General’s South Central Field Office. “The VA OIG will continue to work with the U.S. Attorney’s Office and our law enforcement partners to enforce the Stark Law and the Anti-Kickback Statute and act as a safeguard for taxpayer-funded veteran healthcare programs.”
The civil settlements were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Texas and the Civil Division’s Commercial Litigation Branch, Fraud Section, with assistance from HHS-OIG, DCIS, and VA-OIG. As a result of its efforts, the United States has recovered over $29.6 million relating to conduct involving Boston Heart, True Health, and Little River, including False Claims Act settlements with seventeen physicians, two healthcare executives, and one laboratory. This matter and the related matters were handled by Assistant U.S. Attorneys James Gillingham, Adrian Garcia, and Betty Young, Senior Trial Counsel Christopher Terranova, and Trial Attorney Gavin Thole.
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
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Sioux City Man Off to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced March 15, 2022, in federal court in Sioux City, to more than 7 and ½ years.
Daniel Dickey, 34, from Sioux City, Iowa, pled guilty on October 18, 2021, to conspiracy to distribute methamphetamine.
At the plea and sentencing hearings, evidence showed that between December 2020 and April 2021, Dickey and others conspired to distribute over 30 pounds of methamphetamine in the Sioux City and surrounding area. Dickey was recruited to assist in the receipt of multiple shipments of liquid methamphetamine for a Texas-based methamphetamine distribution conspiracy. The Texas distribution conspiracy involved importation of liquid methamphetamine (for lab-based meth conversion) plus traditional vehicle transport of methamphetamine from Mexico to Texas to Iowa to South Dakota. In March and April of 2021, law enforcement conducted multiple controlled drug/money transactions with Dickey in Sioux City, Iowa. These transactions resulted in the seizure of more than one pound of methamphetamine, a sizable amount of liquid ready for chemical conversion into methamphetamine, and about $40,000 in drug proceeds from Dickey. Dickey also admitted to wiring money from drug sales to sources in Texas and Mexico at the request of another.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Dickey was sentenced to 93 months’ imprisonment and must serve a three year term of supervised release following imprisonment. There is no parole in the federal system. Dickey remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4042. Follow us on Twitter @USAO_NDIA.
Russian National Indicted in East Texas for Cyber Hacking EnterpriseRead the Press Release
TYLER, Texas –A 23-year-old Russian man has been indicted in the Eastern District of Texas for offenses related to operating a cyber-criminal marketplace that sold thousands of stolen login credentials, personal identifiable information, and authentication tools, announced Eastern District of Texas U.S. Attorney Brit Featherston.
Igor Dekhtyarchuk, a resident and national of the Russian Federation (Russia), was named in an indictment returned by a federal grand jury on March 16, 2022, charging him with offenses related to operating a cyber-criminal marketplace that sold thousands of stolen login credentials, personal identifiable information, and authentication tools.
According to the indictment, Dekhtyarchuk operated Marketplace A, which claimed to have sold access to more than 48,000 compromised email accounts, more than 39,000 compromised online accounts, and averaged approximately 5,000 daily visitors. Marketplace A specialized in the sale of unlawfully obtained access devices for compromised online payment platforms, retailers, and credit card accounts, including providing the data associated with those accounts such as names, home addresses, login credentials, and payment card data for the victims, who are the actual owners of those accounts. Marketplace A’s business is known as a “carding shop” in the cyber-criminal world.
Dekhtyarchuk was the administrator of Marketplace A and was a Russian hacker who first appeared in hacker forums in November 2013 under the alias “floraby.” Dekhtyarchuk began advertising the sale of compromised account data in Russian-language hacker forums in April 2018 and opened Marketplace A in May 2018. Dekhtyarchuk immediately began advertising Marketplace A and the products it sold in May 2018.
A potential customer who visited Marketplace A to purchase access devices for compromised accounts could select different products just as in a legitimate web store. The options included various combinations of online and credit card accounts for the same victim. For example, one option allowed Dekhtyarchuk’s customers to purchase the information to unlawfully access two online retail accounts plus receive credit card information for the same victim. Some options were broken down by known account balances, which were sold at different price points.
Dekhtyarchuk also sold the usage, in seven-day rental increments, of a program called “[Company A] Auth 1.0,” which was a downloadable software program that the customer could use to input the stolen access devices, and using the provided cookie, to access the compromised Company A accounts.
Beginning in March 2021 and ending in July 2021, the FBI through an online covert employee (OCE) made thirteen purchases of access devices from Dekhtyarchuk while accessing Marketplace A from the Eastern District of Texas. Each purchase varied in number of accounts, ranging from three to twenty accounts, resulting in access devices purchased for a total of 131 accounts. The OCE received the purchased access devices via link or Telegram messenger service shortly after completing each purchase.
Dekhtyarchuk has been placed on the FBI's Cyber Most Wanted List.
“This case exemplifies the need for all of us, right now, to take steps to protect our online identity, our personal data, and our monetary accounts,” said U.S. Attorney Brit Featherston. “Cyber-criminals are lurking behind the glow of computer screens and are harming Americans. These investigations require dedicated professionals who work tirelessly to stop thieves that steal from unknowing innocent people. To those who dedicate their lives to stopping cyber-criminals, we thank you.”
“The cyber-criminal marketplace operated by Dekhtyarchuk promoted and facilitated the sale of compromised credentials, personally identifiable information (PII), and other sensitive financial information,” said FBI Houston Special Agent in Charge Jim Smith. “Cyber-criminal actors behind these marketplaces go to great length to obfuscate their true identities and often utilize other sophisticated methods to further anonymize their activities. Success in these complex investigations is dependent on teamwork and collaboration between the FBI, our international partners, and our private sector partners. It is only through our commitment, coordinated efforts and strategic partnerships that we will be able to defeat the cyber threat.”
If convicted, Dekhtyarckuk faces 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 case is being investigated by the Federal Bureau of Investigation Houston Cyber Task Force with the assistance of the FBI Dallas Field Office, the FBI Cyber Division, the National Cyber-Forensics & Training Alliance, the FBI Legal Attaché Riga office, and the State Police of Latvia. This case is being prosecuted by Assistant U.S. Attorney D. Ryan Locker.
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Rochester Man Sentenced to 204 Months in Prison for Producing Child Pornography via SnapchatRead the Press Release
MINNEAPOLIS – A Rochester man was sentenced today to 204 months in prison, followed by 25 years of supervised release, and ordered to pay $5,000 to the Domestic Trafficking Victims Fund, for producing sexually explicit images and videos of a minor. Acting U.S. Attorney Charles J. Kovats made the announcement after Chief U.S. District John R. Tunheim sentenced the defendant.
According to court documents, between November 8, 2020, and January 8, 2021, Arkady Pavlovich Pichurin, 26, sexually exploited a minor who was between the ages of nine and 10 years old at the time. Pichurin, who contacted the minor using a variety of instant messaging and texting services, including Snapchat, lied about his age and identity to carry out his sexual exploitation of the minor. Pichurin admitted to using similar tactics to sexually exploit and produce pornographic images and videos of more than 20 minors. Pichurin also had thousands of images depicting sexual abuse of infants and toddlers and bestiality.
On September 7, 2021, Pichurin pleaded guilty to one count of producing sexually explicit images and videos of a minor.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
If you know of any child who may have been a victim of exploitation, please call the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.
This case is the result of an investigation conducted by the FBI and the Rochester Police Department, with substantial assistance from the Olmsted County Attorney’s Office.
Assistant U.S. Attorney Alexander D. Chiquoine prosecuted the case.
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Readout of U.S. Attorney General Merrick B. Garland’s Participation in Reestablishing the United States-Canada Cross-Border Crime ForumRead the Press Release
This afternoon U.S. Attorney General Merrick B. Garland, along with U.S. Secretary of Homeland Security (DHS) Alejandro Mayorkas, met in Washington, D.C. with Canada’s Minister of Justice and Attorney General, David Lametti and Canada’s Minister of Public Safety, Marco Mendicino, to reestablish the Cross-Border Crime Forum (CBCF).
Today’s meeting marked the first principal-level meeting of the CBCF in more than a decade and focused upon the key law enforcement issues highlighted in the Roadmap for a Renewed U.S.-Canada Partnership, a blueprint announced in February 2021 by President Biden and Prime Minister Trudeau to guide a renewed U.S.-Canada partnership.
The CBCF was first launched in April 1997 just as Attorney General Garland’s last tour at the Justice Department was coming to a close. For nearly 25 years, the CBCF served as the principal forum for bilateral law enforcement cooperation between the United States and Canada. Under the leadership of the Attorney General, the Secretary of DHS, the Canadian Minister of Public Safety, and the Canadian Minister and Attorney General of the Department of Justice, the reestablished CBCF brings together senior law enforcement officials and prosecutors to address a number of cross-border issues.
“The Justice Department has no higher priority than keeping the American people safe,” said Attorney General Merrick B. Garland. “Our ability to fulfill that obligation depends upon our cooperation with trusted law enforcement agencies both here at home and around the world. Canada is our indispensable friend and partner in that effort. By reestablishing the United States-Canada Cross-Border Crime Forum, we are deepening cooperation on a number of law enforcement challenges — from combatting cybercrime to violent crime and from disrupting terrorist plots and human trafficking. I look forward to continuing to work with our Canadian law enforcement partners in advancing our shared interests and upholding our shared values.”
During today’s constructive dialogue, the leaders discussed enhancing collaboration to counter cybercrime, including by stepping up joint efforts to counter ransomware attacks, and to accelerate our joint efforts to freeze and seize key assets belonging to sanctioned Russian oligarchs worldwide. The leaders also discussed their shared commitment to strengthening information sharing in order to counter domestic and foreign terrorism; combat human trafficking and smuggling threats across North America; and disrupt gun trafficking and smuggling.
In addition, the leaders discussed their shared commitment to increasing access to justice for all, including by tackling racial inequality and discrimination in criminal justice systems.
“As the only agency in our federal government that bears the name of a value, the Justice Department has a unique mission both here at home and around the world,” said Associate Attorney General Vanita Gupta, who joined Attorney General Garland for the bilateral talks on access to justice. “Justice exists only if it is accessible to all. I am grateful for the close and deepening cooperation between the Department’s Office for Access to Justice and Canada’s Access to Justice Secretariat to advance innovative effective strategies to expand equal access to justice for all.”
Alongside Secretary Mayorkas and Associate Attorney General Gupta, the Attorney General was joined by several senior Justice Department officials, including Assistant Attorney General Matt Olsen of the National Security Division.
Prior Felon Pleads Guilty to Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Joseph Weathers, III, 29, of Rochester, NY, pleaded guilty to possession with intent to distribute fentanyl and being a felon in possession of a firearm and ammunition before U.S. District Judge Frank P. Geraci, Jr. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that in February 2013 and June 2014, Weathers was convicted in Monroe County Court of weapons and robbery charges and as a result is legally prohibited from possessing a firearm and ammunition. In the early morning hours of July 17, 2021, while responding to a call of shots fired in the area of 9 Lime Street, Rochester Police Officers observed drugs and drug paraphernalia and encountered Weathers at the top of the stairs of the residence. After securing the location, officers executed a search warrant and recovered a 9mm pistol, a loaded magazine, and loose ammunition. The firearm was reported stolen in September 2020 from Gates, NY. In addition, officers also recovered approximately 10.6 grams of fentanyl, 4.2 grams of cocaine, 55.6 grams of crack cocaine, and approximately $537 in United States currency.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Interim Chief David Smith and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
The case was brought by the U.S. Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. 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.
Sentencing is scheduled for July 15, 2022, at 3:00 p.m. before Judge Geraci.
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Pottsville Man Charged with Obstructing the MailRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Johnathan Sherer, age 29, of Pottsville, Pennsylvania, was charged on March 21, 2022, by criminal information with obstruction of the mail.
According to United States Attorney John C. Gurganus, the information alleges that in 2019 through October 2020, Sherer, at the time a postal employee, delayed the delivery of over 3,000 pieces of mail by failing to deliver it and keeping it in his possession.
The case was investigated by the U.S. Postal Service Office of Inspector General. Assistant U.S. Attorney Sean A. Camoni is prosecuting the case.
The maximum penalty under federal law for this offense is 6 months 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.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Possession of Methamphetamine Sends Shreveport Man to PrisonRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that Chico Terrell Bell, 41, of Shreveport, Louisiana, has been sentenced by Chief United States District Judge S. Maurice Hicks, Jr. to 112 months (9 years, 4 months) in prison, followed by 4 years of supervised release, for possession with intent to distribute 5 grams or more of methamphetamine.
Bell pleaded guilty to the charge on October 14, 2021. According to information presented in court, law enforcement agents with the U.S. Drug Enforcement Administration (DEA) Narcotics Task Force executed a search warrant on September 2, 2020 at Bell’s home in Shreveport. Bell was found inside the home and had one bag of methamphetamine, methamphetamine tablets, and a large sum of cash on his person. A search of the residence resulted in the recovery of two digital scales, nine bags of methamphetamine tablets containing approximately 914 tablets, two additional bags containing approximately 58 grams of methamphetamine, and a bag containing 9mm ammunition.
This case was investigated by the DEA and Caddo Parish Sheriff’s Office and was prosecuted by Assistant U.S. Attorney J. Aaron Crawford.
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Pittsburgh Man Pleads Guilty in Cocaine Trafficking ConspiracyRead the Press Release
PITTSBURGH - A Pittsburgh resident pleaded guilty in federal court to violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Walter Brunson, Jr., 52, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute a quantity of cocaine from June of 2020 through August of 2020, before United States District Judge J. Nicholas Ranjan. Brunson is one of 20 defendants charged in the Superseding Indictment returned in this case.
In connection with the guilty plea, the court was advised that in 2020, the Federal Bureau of Investigation began investigating a drug trafficking organization, of which Brunson was a member, that operated throughout Washington County, Pennsylvania; Pittsburgh, Pennsylvania; and New Jersey. Beginning in April of 2020 and continuing through October of 2020, the FBI received authorization to conduct a Title III wiretap investigation into the organization. Brunson was intercepted agreeing to sell distribution quantities of cocaine to his coconspirator and codefendant. In addition to the intercepted communications, agents seized cocaine, cocaine base, heroin, fentanyl, firearms, and bulk United States Currency from members of the organization, including Brunson. Specifically, on November 19, 2020, investigators executed a search warrant at Brunson’s residence and recovered distribution quantities of cocaine.
Judge Ranjan scheduled sentencing for July 18, 2022. The law provides for a total sentence of not more than 20 years’ imprisonment, a fine not to exceed $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Mark V. Gurzo and Jerome A. Moschetta are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police Drug Law Enforcement Division conducted the investigation that led to the prosecution of Brunson. 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.
Phoenix Man Sentenced to 8 Years for Possessing Methamphetamine with Intent to DistributeRead the Press Release
PHOENIX, Ariz. – Angel Joe Valenzuela, 50, of Phoenix, Arizona, was sentenced yesterday by U.S. District Judge Diane J. Humetewa to eight years in prison, followed by four years of supervised release.
On February 4, 2021, Valenzuela was found in possession of more than five grams of actual methamphetamine, several small baggies, multiple scales, cell phones, and a Ruger pistol. This was the first of three occasions in 2021 where Valenzuela was caught on the Gila River Indian Community with illegal drugs in quantities consistent with distribution. On December 21, 2021, Valenzuela pleaded guilty to possession of five grams or more of actual methamphetamine with the intent to distribute.
The Gila River Police Department conducted the investigation in this case. Assistant U.S. Attorney Raynette Logan, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-00682-PHX-DJH
RELEASE NUMBER: 2022-029_Valenzuela# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Notorious Gang Leader and Members of His Enterprise Convicted on Racketeering Charges in the U.S. Virgin IslandsRead the Press Release
WASHINGTON – Three members of a violent criminal gang were convicted today in the U.S. Virgin Islands (USVI) by a federal jury for RICO conspiracy, murder, attempted murder, robbery, and drug dealing.
According to court documents and the evidence presented at trial, the Paul Girard criminal enterprise committed murders and was involved in other acts of violence, targeted jewelry stores and banks for robberies, and distributed illegal drugs.
“These defendants terrorized the U.S. Virgin Islands through violence and theft,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Today’s verdicts, and the guilty pleas of seven additional co-defendants in this case, demonstrate that the Department of Justice, and our law enforcement partners, are committed to combating the threat of gang violence.”
“Today’s verdict makes clear that the people of the Virgin Islands will not tolerate violent criminal activity directed against their fellow islanders,” said U.S. Attorney Gretchen Shappert for the U.S. Virgin Islands. “These convictions mark the dismantlement of the Paul Girard Criminal Enterprise. This was a team effort. We are hugely grateful for the dedication of the prosecution team.”
"The use of violence and intimidation by these gang members to try and assert power over the people of the Virgin Islands failed,” said Assistant Director Luis Quesada of the FBI's Criminal Investigative Division. “These criminals thought they were untouchable, but today's verdict demonstrates the ongoing commitment of the FBI to investigate and disrupt criminal enterprises like this and demand justice for their victims."
“There is no greater threat to our nation than that of violence and fear in our communities,” said Special Agent in Charge Joseph Gonzalez of the FBI’s San Juan Field Office. “With this verdict, the people of the U.S. Virgin Islands can rest assured in the FBI’s commitment to work aggressively to curtail violence in our streets. I’d like to thank our local partners for their work on this case and their continued support to the FBI mission.”
Evidence presented at trial showed that Paul Girard, aka Bogus, 34, of St. Croix, USVI, was the leader of the group. Girard ordered shootings against rival gang members, as well as individuals he believed had stolen from or otherwise disrespected the gang. Girard planned, and his crew executed, several armed robberies including of the Divi Carina Bay Casino in St. Croix, as well as Gems and Gold Corner jewelry store, Signatures Jewelry, and 3Gs Jewelry and Repair located in St. Thomas. Most of the criminal activity was orchestrated by Girard from prison, where he is currently serving sentences for multiple prior criminal convictions.
According to evidence presented at trial, Tyler Eugene, aka Lucc, 24, of St. Croix, committed acts of violence on behalf of the gang, including murdering a rival gang member outside a convenience store at Girard’s direction. Kareem Harry, aka Crumbull, 34, of St. Croix, committed acts of violence on behalf of the gang including participating in the murder of a victim who was believed to have stolen money from the Girard gang. Harry also set up the shooting death of a rival gang member outside of the victim’s child’s daycare.
Girard was convicted of racketeering conspiracy, drug conspiracy, three counts of murder in aid of racketeering, three counts of the use of a firearm resulting in death, three counts of attempted murder in aid of racketeering, three counts of Hobbs Act Robbery, one count of kidnapping in aid of racketeering, and four counts of using of a firearm during a crime of violence. Eugene was convicted of racketeering conspiracy, one count of murder in aid of racketeering, one count of the use of a firearm resulting in death, two counts of attempted murder in aid of racketeering, and two counts of using a firearm during a crime of violence. Harry was convicted of racketeering conspiracy, two counts of murder in aid of racketeering, two counts of use of a firearm resulting in death, and one count of kidnapping in aid of racketeering. Because each defendant was convicted of murder in aid of racketeering, each faces a mandatory sentence of life in prison. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Seven additional defendants indicted in the same case have already pleaded guilty to various racketeering charges.
The case was investigated by the FBI and the Virgin Islands Police Department.
Trial Attorney Christopher Taylor of the Criminal Division’s Organized Crime and Gang Section, Trial Attorney Marie Zisa of the Criminal Division’s Human Rights and Special Prosecutions Section, and Assistant U.S. Attorney Meredith Edwards for the U.S. Virgin Islands prosecuted the case.
Notorious Gang Leader and Members of His Enterprise Convicted on Racketeering Charges in the U.S. Virgin IslandsRead the Press Release
Three members of a violent criminal gang were convicted today in the U.S. Virgin Islands (USVI) by a federal jury for RICO conspiracy, murder, attempted murder, robbery, and drug dealing.
According to court documents and the evidence presented at trial, the Paul Girard criminal enterprise committed murders and was involved in other acts of violence, targeted jewelry stores and banks for robberies, and distributed illegal drugs.
“These defendants terrorized the U.S. Virgin Islands through violence and theft,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Today’s verdicts, and the guilty pleas of seven additional co-defendants in this case, demonstrate that the Department of Justice, and our law enforcement partners, are committed to combating the threat of gang violence.”
“Today’s verdict makes clear that the people of the Virgin Islands will not tolerate violent criminal activity directed against their fellow islanders,” said U.S. Attorney Gretchen Shappert for the U.S. Virgin Islands. “These convictions mark the dismantlement of the Paul Girard criminal enterprise. This was a team effort. We are hugely grateful for the dedication of the prosecution team.”
“The use of violence and intimidation by these gang members to try and assert power over the people of the Virgin Islands failed,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “These criminals thought they were untouchable, but today's verdict demonstrates the ongoing commitment of the FBI to investigate and disrupt criminal enterprises like this and demand justice for their victims."
“There is no greater threat to our nation than that of violence and fear in our communities,” said Special Agent in Charge Joseph Gonzalez of the FBI’s San Juan Field Office. “With this verdict, the people of the U.S. Virgin Islands can rest assured in the FBI’s commitment to work aggressively to curtail violence in our streets. I’d like to thank our local partners for their work on this case and their continued support to the FBI mission.”
Evidence presented at trial showed that Paul Girard, aka Bogus, 34, of St. Croix, USVI, was the leader of the group. Girard ordered shootings against rival gang members, as well as individuals he believed had stolen from or otherwise disrespected the gang. Girard planned, and his crew executed, several armed robberies including of the Divi Racino Casino in St. Croix, as well as Gems and Gold Corner jewelry store, Signatures Jewelry, and 3Gs Jewelry and Repair located in St. Thomas. Most of the criminal activity was orchestrated by Girard from prison, where he is currently serving sentences for multiple prior criminal convictions.
According to evidence presented at trial, Tyler Eugene, aka Lucc, 24, of St. Croix, committed acts of violence on behalf of the gang, including murdering a rival gang member outside a convenience store at Girard’s direction. Kareem Harry, aka Crumbull, 34, of St. Croix, committed acts of violence on behalf of the gang including participating in the murder of a victim who was believed to have stolen money from the Girard gang. Harry also set up the shooting death of a rival gang member outside of the victim’s child’s daycare.
Girard was convicted of racketeering conspiracy, drug conspiracy, three counts of murder in aid of racketeering, three counts of the use of a firearm resulting in death, three counts of attempted murder in aid of racketeering, three counts of Hobbs Act Robbery, one count of kidnapping in aid of racketeering, and four counts of using of a firearm during a crime of violence. Eugene was convicted of racketeering conspiracy, one count of murder in aid of racketeering, one count of the use of a firearm resulting in death, two counts of attempted murder in aid of racketeering, and two counts of using a firearm during a crime of violence. Harry was convicted of racketeering conspiracy, two counts of murder in aid of racketeering, two counts of use of a firearm resulting in death, and one count of kidnapping in aid of racketeering. Because each defendant was convicted of murder in aid of racketeering, each faces a mandatory sentence of life in prison. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Seven additional defendants indicted in the same case have already pleaded guilty to various racketeering charges.
The case was investigated by the FBI and the Virgin Islands Police Department.
Trial Attorney Christopher Taylor of the Criminal Division’s Organized Crime and Gang Section, Trial Attorney Marie Zisa of the Criminal Division’s Human Rights and Special Prosecutions Section, and Assistant U.S. Attorney Meredith Edwards for the U.S. Virgin Islands prosecuted the case.
North Hills Man Indicted for Attempted Coercion of a Minor for SexRead the Press Release
PITTSBURGH, PA. - A suburban Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal child exploitation laws, United States Attorney Cindy K. Chung announced today.
The one-count Indictment named Vikash Mishra, 40, of Ross Township, as the sole defendant.
According to the Indictment, from on or about October 30, 2021, until on or about February 25, 2022, Vikash is alleged to have attempted to coerce and entice a minor to engage in illegal sexual activity.
The law provides for a minimum total sentence of 10 years in prison, up to a term of life, a fine of $250,000 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.
Assistant United States Attorney Robert C. Schupansky is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Newaygo Woman Sentenced for Defrauding Social Security and Veterans Programs of over $650,000Read the Press Release
GRAND RAPIDS, Michigan -- A Newaygo woman was sentenced today in U.S. District Court for engaging in a fraudulent scheme that targeted children’s benefits programs administered by the Social Security Administration and the United States Department of Veterans Affairs.
On October 27, 2021, Terrie Lynn Christian, 58, pled guilty to defrauding the Social Security Administration (“SSA”) of over $550,000 by obtaining benefits for two fictitious children. The fraud began in 2002 and was not discovered until 2019. She also admitted to perpetrating the same fraud against the United States Department of Veterans Affairs (“VA”). This scheme netted her over $109,000 between 2003 and 2019.
Christian appeared before U.S. District Judge Hala Jarbou today for sentencing. The judge imposed a sentence of 30 months in prison, supervised release for three years after release, and an order of restitution. Judge Jarbou stated that Christian deserved this sentence because she had stolen benefits from money earmarked to help the children of military benefits and the poor.
U.S. Attorney Andrew Birge stated, “This was a brazen long-term fraud that succeeded as long as it did only because Christian knew how to exploit the safeguards built into these two child-welfare programs for years. Fortunately, law enforcement caught up with her and now she must face the consequences.”
Gail S. Ennis, Inspector General for the SSA, said: “Ms. Christian created fictitious identities and falsified documents to obtain Social Security benefits for non-existent people for nearly 17 years. Her egregious acts resulted in a fraud loss of over $540,000. My office will continue to uphold the integrity of SSA and investigate those who defraud and misuse its programs. I thank the Newaygo County Sheriff’s Office and the Veterans Affairs Office of the Inspector General for their assistance in this investigation. I also thank the U.S. Attorney’s Office for holding her accountable for her criminal actions.”
“The VA OIG will continue to vigorously pursue those who would steal from VA benefits programs and taxpayers,” said Special Agent in Charge Greg Billingsley of the Department of Veterans Affairs Office of Inspector General’s Central Field Office. “We thank the U.S. Attorney’s Office and our law enforcement partners for their efforts in this joint investigation.”
The Inspector General offices of the SSA and VA investigated this case. Assistant U.S. Attorney Timothy VerHey prosecuted it.
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Navy Deserter Sentenced to 25 Months in Prison for Identity TheftRead the Press Release
GREENEVILLE, Tenn.– On March 21, 2022, Jerry Leon Blankenship, 65, currently of Newport, Tennessee, was sentenced to 25 months in prison by the Honorable J. Ronnie Greer, in the United States District Court for the Eastern District of Tennessee at Greeneville.
As part of the plea agreement filed with the court, Blankenship agreed to plead guilty to an indictment charging him with one count of fraud involving a Social Security number, in violation of 42 U.S.C. § 408(a)(7)(B), and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A. Following his release from prison, Blankenship will be on supervised release for three years.
According to filed court documents, in 1976, Blankenship enlisted in the United States Navy. The following year, after he completed basic training, he deserted, with a goal of avoiding future military service. Blankenship then assumed the name and identity of another individual. By doing so, Blankenship established a new life under the stolen name in Newport, Tennessee. According to court records, Blankenship had “been dishonest about his name with almost everyone, including his girlfriend of thirty years” and the mother of his three children. Since 2005, Blankenship had obtained three fraudulent Tennessee driver’s licenses in the victim’s name. Blankenship also used the victim’s name in a business that he and his girlfriend ran in Newport, Tennessee.
Authorities discovered Blankenship’s true identity after he obtained a COVID-19 vaccination at a Newport pharmacy. The real victim was notified of the vaccination that the real victim had not received. Store surveillance video showed Blankenship was the person who had obtained the vaccination under the victim’s name.
It is anticipated that Blankenship will face a military tribunal for his desertion.
The criminal indictment was the result of an investigation led by the Criminal Investigative Division of the Tennessee Highway Patrol, Sergeant James Knipper.
Assistant United States Attorney Mac D. Heavener, III represented the United States.
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Nampa Woman Sentenced to Federal Prison for Failure to Account for and Pay over Employment TaxRead the Press Release
BOISE – A Nampa woman was sentenced to 12 months and one day in federal prison for failure to account for and pay over employment tax.
According to court records, from approximately 1999 to 2019, Nicole Beth Howerzyl, 69, was a corporate officer for Dave’s Motorcycle, Inc. (DMI) in Nampa. DMI was in the business of selling and servicing motorcycles. During that time, Howerzyl handled the bookkeeping for DMI, and exercised control over DMI’s financial affairs, including approving all payments by DMI and controlling all of DMI’s bank accounts.
For the calendar years 2013 to 2019, DMI employed approximately 15 to 25 people per year. During that period, DMI withheld taxes from its employees’ paychecks, including federal income taxes, Medicare, and social security taxes, often referred to as "payroll taxes." Howerzyl directly issued payroll checks twice per month and withheld payroll taxes from employees’ paychecks. Howerzyl also issued annual Forms W-2 to the employees of DMI, which reflected their gross wages, as well as their payroll taxes.
As a corporate officer of DMI, Howerzyl was aware that she had the corporate responsibility to collect, truthfully account for, and pay over DMI’s payroll taxes to the Internal Revenue Service (IRS) and file an Employer’s Quarterly Federal Income Tax Return (Form 941) following the end of each calendar quarter.
DMI, however, made no payments to the IRS for the calendar years 2013 to 2019. DMI further failed to file quarterly employment tax returns (Forms 941) with the IRS. Specifically, for the tax years 2013 to 2019, Howerzyl failed to account for $4,874,572.73 in wages at DMI and pay over $1,161,135.25 to the IRS in payroll taxes.
U.S. District Judge Scott W. Skavdahl, from the District of Wyoming, sitting by designation, also ordered Howerzyl to pay $373,552.21 in outstanding restitution to the Internal Revenue Service, pay a separate $10,000 fine, and to serve one year of supervised release following her prison sentence. Howerzyl pleaded guilty to the charge on December 13, 2021.
“Collecting payroll taxes from workers then failing to pay over those amounts to the federal government is a severe breach of trust and an assault on dutiful taxpayers,” said U.S. Attorney Rafael M. Gonzalez, Jr. “It is stealing not only from the workers, but from the public at large. Those who flaunt federal tax laws, must know that they will be investigated and prosecuted," he said.
“IRS Criminal Investigation is committed to investigating individuals who defraud the government for personal gain by failing to submit payroll taxes to the IRS,” said Andy Tsui, IRS Criminal Investigation Special Agent in Charge. “Ms. Howerzyl’s misconduct is a crime against all honest tax payers and we will continue to identify and bring to justice those who evade their tax responsibilities.”
U.S. Attorney Rafael M. Gonzalez, Jr. commended the efforts of the Internal Revenue Service Criminal Investigation, which led to charges.
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Mother and son indicted for dealing counterfeit goodsRead the Press Release
LAREDO, Texas – A South Korean woman and a local Texan have been indicted for trafficking counterfeit goods, announced U.S. Attorney Jennifer B. Lowery.
A federal grand jury returned the two-count indictment against Bok Nyo Kim, 72, a legal permanent residing in Laredo, and Henry Yuseok Kim, 45, Laredo. Both were originally charged by criminal complaint. They are expected to appear before U.S. Magistrate Judge Diana Song Quiroga for their initial appearance on the indictment in the near future.
The investigation began Feb. 3. At that time, Henry Kim, part-owner of Fashion Outlet, allegedly sold a counterfeit t-shirt purporting to be Louis Vuitton. Authorities then seized approximately 346 items of counterfeit merchandise from the store, according to the charges. The indictment alleges that during the seizure, Bok Kim identified herself as part-operator of Fashion Outlet.
According to the complaint, both admitted to selling counterfeit clothing at Fashion Outlet for financial gain and shared control over the business. Bok Kim allegedly admitted to purchasing counterfeit merchandise from wholesalers in California. The indictment further alleges both individuals had knowledge of a prior seizure notice authorities had sent.
If convicted, both face up to 10 years in prison as well as a possible $250,000 maximum fine.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Matthew Isaac is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Moorhead Felon Sentenced to 57 Months in Prison for Possession of a Loaded Firearm in his HomeRead the Press Release
ST. PAUL, Minn. – A Moorhead man was sentenced to 57 months in prison, followed by three years of supervised release, for illegally possessing a firearm in his residence after a minor was shot and killed with his gun, announced Acting U.S. Attorney Charles J. Kovats.
According to court documents, on March 21, 2021, Phillip Neal Jones, Jr., 34, possessed a Walther .40 caliber pistol in his Moorhead residence. While Jones was away from the residence, a visiting child found the loaded gun under a large snack chip box in the kitchen. The gun went off, hitting and killing a second child.
Jones has multiple prior felony convictions in Hennepin and Anoka Counties and therefore is prohibited from possessing firearms or ammunition at any time.
Jones was sentenced today by U.S. District Court Judge Paul A. Magnuson.
This case is the result of investigations conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Moorhead Police Department.
Assistant U.S. Attorney Amber M. Brennan prosecuted the case.
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Minneapolis Man Sentenced to Four Years in Prison for Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS – A Minneapolis man has been sentenced to 48 months in prison followed by three years of supervised release for illegal possession of a firearm. Acting U.S. Attorney Charles J. Kovats made the announcement after Senior U.S. District Judge Michael J. Davis sentenced the defendant.
According to court documents, on June 29, 2021, officers with the Minneapolis Police Department approached a man who had an outstanding warrant for his arrest. Cody Lennell Taylor, 29, was standing next to the man and fled on foot as officers approached. As he ran, Taylor threw a red bag he had been wearing. Officers recovered the bag, and inside found a Kimber model Micro 9 9mm semi-automatic pistol. Officers later apprehended Taylor who admitted that the red bag was his, and that he threw it because the police approached him.
Because Taylor has prior felony convictions in Hennepin County, he is prohibited under federal law from possessing firearms or ammunition at any time.
On November 19, 2021, Taylor pleaded guilty to one count of possession of a firearm as a felon.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Minneapolis Police Department.
This case was prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.
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Metro-Atlanta Meth Supplier and Courier Plead Guilty to Federal ChargesRead the Press Release
MACON, Ga. – Two metro-Atlanta residents admitted guilt to their roles in distributing a large amount of methamphetamine in Middle Georgia.
Christian Jesus Pineda, 27, of Duluth, Georgia, pleaded guilty to possession with intent to distribute methamphetamine on March 21. Co-defendant Victor Penaloza Sanchez, 26, of Cartersville, Georgia, pleaded guilty to aiding and abetting Pineda’s distribution of methamphetamine on March 15. Both defendants face a maximum sentence of 20 years in prison to be followed by at least three years of supervised release and a maximum $1,000,000 fine. U.S. District Judge Hugh Lawson presided over Pineda’s hearing and U.S. District Judge Tilman E. “Tripp” Self, III presided over Sanchez’s hearing. The defendants will be sentenced on June 7.
According to court documents, a confidential informant (CI) told law enforcement that Sanchez was selling large amounts of methamphetamine. The informant and Sanchez, via multiple text messages and phone calls, agreed to the CI purchasing approximately 500 grams of methamphetamine from Sanchez and that a courier would meet the CI at a gas station in Byron, Georgia, on April 28, 2021, to conduct the transaction. Agents with DEA, Peach County Sheriff’s Office, Byron Police Department and K-9, working with the CI, observed a vehicle driven by Pineda pull into the gas station at the appointed time. The CI approached Pineda, who showed him a clear bag containing a half kilogram of methamphetamine.
The case was investigated by DEA and the Peach County Sheriff’s Office, with assistance from the Byron Police Department.
Assistant U.S. Attorney Will Keyes prosecuted the case.
McDowell County Man Pleads Guilty to Federal Fraud ChargeRead the Press Release
CHARLESTON, W.Va. – A McDowell County man pleaded guilty to a federal fraud charge relating to an arson and insurance fraud scheme.
According to court documents and statements made in court, Douglas Vineyard, 52, of Welch, admitted that on July 1, 2019, he bought a house on Princeton Street in Bluefield, West Virginia for $5,000. On July 31, 2019, Vineyard bought an insurance policy on the house. The coverage included for $285,500 for the dwelling, $142,750 for the contents and $14,275 for other structures. On the insurance application, Vineyard stated that the purchase price for the house was $50,000. In early August, Vineyard made an agreement with other individuals to burn the house down and collect the insurance proceeds. On August 6, 2019, the individuals set the house on fire. The house was a total loss. On August 16, 2019, Vineyard faxed a Sworn Statement of Proof of Loss seeking $285,500 in insurance proceeds for the house. The insurance company spent over $13,000 investigating Vineyard’s false claim, ultimately denying it.
Vineyard pleaded guilty to wire fraud and faces up to 20 years in prison when he is sentenced on July 18, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Postal Inspection Service and the West Virginia Offices of the Insurance Commissioner.
Senior United States District Judge David A. Faber presided over the hearing. Assistant U.S. Attorney R. Gregory McVey is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:21-cr-00131.
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Maryland Man Sentenced for Lying to Buy FirearmsRead the Press Release
ALEXANDRIA, Va. – A Hanover, Maryland, man was sentenced today to 15 months in prison for making false statements in an attempt to acquire 11 firearms.
According to court documents, between December 2018 and July 2021, Rakeim T. Richardson, 27, knowingly made false statements with respect to the purchase of 11 firearms from Federal Firearms Licensees. On each Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) form, Richardson falsely stated that he resided in Virginia when, in fact, he resided in Maryland and had done so since at least August 2018. Several firearms purchased by Richardson were recovered by law enforcement in connection with other crimes, including a robbery resulting in homicide.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
Assistant U.S. Attorneys Natasha Smalky and Cristina Stam prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-284.
Marion County man admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Dennis Lee Boyce, of Fairmont, West Virginia, has admitted a firearms charge, United States Attorney William Ihlenfeld announced.
Boyce, 50, pleaded guilty today to one count of “Unlawful Possession of Firearm.” Boyce, a person prohibited from having firearms because of a prior conviction, admitted to having four rifles and two shotguns in January 2020 in Marion County.
Boyce faces up to 10 years of incarceration and fine of up to $250,000. 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 Brandon S. Flower is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Man Indicted in Fraud Scheme Involving the Theft of Vehicles Using Stolen Identities from Car Dealerships in Western PennsylvaniaRead the Press Release
PITTSBURGH – An individual has been indicted by a federal grand jury in Pittsburgh on charges of wire fraud, interstate transportation of a stolen motor vehicle and aggravated identity theft, United States Attorney Cindy K. Chung announced today.
The seven-count Indictment, returned on March 17, named Serge Ahmed Zeba, age 31, who has resided at multiple addresses in several states, as the sole defendant.
According to the Indictment, from November 2020 to January 2022, Zeba schemed with others known and unknown to use victim’s stolen PII to complete online applications to obtain lines of credit in victims’ names from automobile financing companies, without those victims’ permission or knowledge. Zeba then traveled to automobile dealerships throughout the country, including dealerships located in the Western District of Pennsylvania, and presented to employees fraudulent identification in the names of victims whose PII had been stolen, as well as fraudulent money orders, purportedly to cover the down payments for the vehicles. The grand jury further alleges that from August 24, 2021 to November 29, 2021, Zeba transported a stolen motor vehicle, namely, a 2021 Lexus RX350, in interstate commerce. The grand jury further alleges that on August 19, 2021 through August 24, 2021 and on August 29, 2021 through September 2, 2021, in relation to the felony wire fraud, Zeba used a means of identification of another person.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $1,750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Karen Gal-Or is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Homeland Security Investigations, U.S. Department of State (Buffalo Field Office) and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Man Charged Along with his Sons for 2019 Delaware County MurderRead the Press Release
A Grove man has now been charged in a second superseding indictment with a 2019 Delaware County murder, announced U.S. Attorney Clint Johnson.
A federal grand jury indicted James William Buzzard, 49, and his sons, Cody Dwayne Buzzard, 28, and Dakota Chase Buzzard, 20, all of Grove, with the first degree murder of Jerry Tapp.
The three men were charged with first degree murder in Indian Country; assault with a dangerous weapon in Indian Country; and carrying, using, brandishing and discharging a firearm during and in relation to a crime of violence. Cody and Dakota Buzzard were previously indicted in September 2021.
On Aug. 1, 2019, the Delaware County Sheriff’s Office responded to a 911 call reporting a shooting near Jay. Deputies discovered Jerry Tapp deceased in his front yard. It appeared that Tapp sustained multiple gunshot wounds to his body and that a second victim had sustained a gunshot wound to her arm. According to court documents, the victim told investigators that she heard a noise outside the home early that morning and thought Tapp had forgotten his keys to the house. When she turned on the light and opened the door, she heard gunfire and felt a sudden pain in her right wrist. She then shut and locked the front door, crawled to another room, and called 911. While investigating the crime, OSBI agents located and seized approximately 12, .22 caliber spent casings in the yard, driveway and roadway.
During an interview with authorities, Dakota Buzzard stated that he, James, and Cody Buzzard drove toward Tapp’s residence, parked up the road from the home, and waited for him to return from work. James Buzzard allegedly told his sons to retrieve a loaded .22 caliber rifle from the trunk of the car. Dakota stated that once Tapp drove by, the three men followed him to his home. After Tapp stepped out of his vehicle, prosecutors allege the Buzzards aided and abetted one another to shoot and kill Tapp and then shoot his girlfriend.
James Buzzard was initially charged by criminal complaint in February 2022 and was detained pending further criminal proceedings.
The crimes occurred within the Cherokee Nation reservation.
The FBI, Okalhoma State Bureau of Investigation, and Delaware County Sheriff’s Office are the investigative agencies. Assistant U.S. Attorneys Ben Tonkin and Victor A.S. Régal are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Maine Resident Charged with Fraud and Tax Offenses Stemming from $1 Million EmbezzlementRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Joleen D. Simpson, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that a federal grand jury in New Haven has returned a 27-count indictment charging EDWARD F. ZIEGLER II, 63, of Bridgton, Maine, with fraud and tax offenses related to an embezzlement scheme.
The indictment was returned on March 15, 2022, and Ziegler was arrested in Maine on March 16. He appeared today before U.S. Magistrate Judge Thomas O. Farrish in Hartford, entered a plea of not guilty, and was released on a $100,000 bond.
As alleged in court documents and statements made in court, for approximately 25 years, Ziegler was employed as the office manager for a small business, identified in the indictment as “Company A,” based in Berlin, Connecticut. As part of a scheme to defraud, Zeigler opened a bank account in his name and with the qualifying language “Doing Business As [Company A].” Over the course of several years, Ziegler sent invoices to the business’s customers through both the U.S. Mail and e-mail, received checks from the customers for services provided, and deposited checks into the secret bank account he had established. Ziegler also made fraudulent entries in Company A’s books and record keeping system to cover up the fact that he had diverted the checks and used the funds for his own benefit.
It is alleged that, through this scheme, Ziegler caused more than 400 checks totaling more than $1 million to be deposited into his secret account. In addition, Ziegler failed to pay $173,643 in federal income taxes on his embezzled income for the 2015 through 2019 tax years.
The indictment charges Ziegler with 22 counts of wire fraud affecting a financial institution, which carries a maximum term of imprisonment of 30 years on each count, and five counts of tax evasion, which carries a maximum term of imprisonment of five years on each count.
U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division, with the assistance of the Bridgton (Maine) Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.
MS-13 Clique Leader Pleads Guilty to RICO ConspiracyRead the Press Release
BOSTON –The leader of a local MS-13 clique pleaded guilty on Friday, March 18, 2022 in federal court in Boston to RICO conspiracy.
Manuel Adan Yanez Cruz, a/k/a “Rocky,” a/k/a “Flaco,” age 22, a El Salvadoran national, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO or racketeering conspiracy. The Court accepted Yanez Cruz’s guilty plea but deferred acceptance of the proposed plea agreement until sentencing, which U.S. District Court Judge Leo T. Sorokin scheduled for July 13, 2022.
MS-13 is a transnational street gang operating in Massachusetts and numerous other states, as well as countries such as El Salvador, Honduras, and Guatemala. MS-13 gang members often commit acts of extreme violence against suspected rivals, those suspected of cooperating with law enforcement and others whom the gang views as a threat. In recent years, dozens of MS-13 members have been convicted of RICO conspiracy and other serious felonies in the District of Massachusetts.
MS-13 is organized in Massachusetts and elsewhere in the form of so-called “cliques” or smaller groups that operate under the larger mantle of MS-13. Yanez Cruz was a member and local leader of the Huntington Locos Salvatrucha (HLS) clique of MS-13, which operated in the cities of Boston, Lynn, Everett, Chelsea, Somerville and other parts of Massachusetts.
The charge of RICO conspiracy provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Yanez Cruz will also be subject to deportation upon the completion of his sentence. 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.
First Assistant United States Attorney Joshua S. Levy; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Essex County District Attorney Jonathan W. Blodgett; Suffolk County District Attorney Kevin Hayden; Acting Boston Police Commissioner Gregory Long; and Lynn Police Chief Christopher Reddy made the announcement.
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.
Lead Defendant in OCDETF Operation Hustle City Sentenced in Federal CourtRead the Press Release
SHREVEPORT, La. – Shamariay Duntae Locke, 36, of Haughton, Louisiana, has been sentenced on drug conspiracy and drug distribution charges, United States Attorney Brandon B. Brown announced. Chief United States District Court S. Maurice Hicks, Jr. sentenced Locke today to 48 months in prison, followed by 5 years of supervised release.
Locke was the lead defendant in a case which was indicted by a federal grand jury in September 2020 in connection with the Organized Crime Drug Enforcement Task Force (OCDETF) Operation: “Hustle City.” On September 20, 2021, Locke pleaded guilty to one count of conspiracy to possess and distribute marijuana, and two counts of distribution of marijuana. The charges stemmed from a long-term investigation by law enforcement officers with the U.S. Drug Enforcement Administration (DEA) and other federal and local agencies into the distribution and selling of marijuana and methamphetamine in the Shreveport/Bossier City area.
Through their investigation, DEA agents received information that Locke and other co-defendants were possessing and distributing large quantities of marijuana to individuals in the north part of Shreveport. On two occasions in September 2017, agents observed Locke meet an individual in the parking lot of a local business parking lot and instruct him to get into another vehicle. On both occasions, they then drove to another location and the individual obtained from Locke approximately 3,915 grams of marijuana the first time, and 5,155 grams of marijuana the second time. However, at the sentencing hearing, the court found that these two instances were not the extent of Locke’s involvement in illegal drug distribution during the charged conspiracy which ran at least from January 2016 to August 2020.
Ladarrell Cortrell Washington and Schyler Algernon Smith were also charged in connection with this case and have each pleaded guilty. Sentencing for Smith has been set for April 5, 2022 at 2:00. Washington’s sentencing will be April 6, 2022 at 2:00.
Other defendants who were previously convicted and sentenced in connection with this case are as follows:
- Jeremy Richard Francis;
- Robert Lynn Baulkman;
- Danny Glen Roy Welch;
- Frank Gilford Joshua;
- Michael Shane Haynes;
- Henry A. Wright; and
- Arnelius Danta Terrell.
Rico DeAngelo Lawrence is the only remaining defendant charged in this case and is currently a fugitive. Lawrence is aware that he is wanted and should be considered as armed and dangerous and should not be approached by non-law enforcement. Anyone with information concerning the whereabouts of Lawrence, please contact Shreveport DEA Office at 318-676-4080 or the U.S. Marshal’s Service Violent Offender Task Force by contacting their office at 318-934-4300 or by using their online tip portal at: www.usmarshals.gov/tips.
Federal agencies including DEA, Department of Homeland Security, ATF, FBI, U.S. Marshal’s Service and U.S. Postal Inspection Service, all worked jointly with the Louisiana State Police, Shreveport Police Department, Caddo Parish Sheriff’s Office, Bossier Parish Sheriff’s Office, Bossier City Police Department, Desoto Parish Sheriff’s Office, Lincoln Parish Sheriff’s Office, Ruston Police Department and Ouachita Parish Sheriff’s Office, in conducting this investigation. The case was prosecuted by U.S. Attorney Brandon B. Brown.
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Latvian Citizen Extradited from Norway Made Appearance in Federal Court for Role in Money Laundering ConspiracyRead the Press Release
United States Attorney Dennis R. Holmes announced today that a Latvian woman has been indicted by a federal grand jury for her role in a money laundering conspiracy. She was recently extradited from Norway to face the federal charge and forfeiture allegations in South Dakota.
Lubova Burkute, age 40, was indicted on June 17, 2021. She appeared before U.S. Magistrate Judge Veronica L. Duffy on March 21, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution and forfeiture may also be ordered.
According to the indictment, in approximately 2015 and continuing until 2021, Burkute conspired and agreed with others to knowingly conduct and attempt to conduct financial transactions affecting interstate and foreign commerce. Specifically, Burkute and her co-conspirators engaged in depositing, transferring, wiring, and withdrawing U.S. Currency, foreign currency, and funds at financial institutions, which involved the proceeds of specified unlawful activity – wire fraud. Burkute and her co-conspirators knew that the transactions were designed in whole or in part to conceal and disguise the nature, location, source, ownership, or control of the proceeds of the fraud scheme. While conducting and attempting to conduct such financial transactions, it is alleged that Burkute knew that the property involved in the financial transactions represented the proceeds of some form of unlawful activity. Burkute resided in and operated from Norway, among other places, she is a citizen of Latvia.
The charge is merely an accusation and Burkute is presumed innocent until and unless proven guilty.
The investigation is being conducted by the following agencies:
- Internal Revenue Service Criminal Investigation;
- Federal Bureau of Investigation;
- ØKOKRIM, the Norwegian National Authority for Prosecution and Investigation of Economic and Environmental Crime, Oslo, Norway;
- Oslo, Norway, Police Department;
- Department of Justice’s Office of International Affairs; and
- South Dakota Division of Criminal Investigation.
Assistant U.S. Attorneys Jeremy R. Jehangiri and Ann M. Hoffman are prosecuting the case.
Burkute was remanded to the custody of the U.S. Marshals Service pending further proceedings and trial. A trial date of May 31, 2022, has been set.
LaBelle Man Sentenced to 40 Years in Prison for Armed Robbery of A PawnshopRead the Press Release
Fort Myers, FL – U.S. District Judge Sheri Polster Chappell today sentenced Raynaldo Ray Quiroga (37, LaBelle) to 40 years in federal prison for robbery, brandishing a firearm during a crime of violence, possessing stolen firearms, and possessing a firearm as a convicted felon. A federal jury had found Quiroga guilty on December 16, 2021.
According to evidence presented at trial, Quiroga, a seven-time convicted felon, entered Capital Pawn in LaBelle on the morning of May 19, 2021, falsely impersonating a law enforcement officer by wearing a green sheriff’s deputy uniform, a black tactical vest, a badge, and a duty belt equipped with a firearm. While in the shop, Quiroga brandished his firearm and zip-tied the store’s two employees before stealing six firearms and fleeing the scene. Law enforcement agents quickly identified Quiroga as a suspect and later found multiple pieces of evidence at his residence and in his car connecting him to the robbery.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hendry County Sheriff’s Office, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Simon R. Eth and Jesus M. Casas.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Key West Man Sentenced to 180 Months in Federal Prison for Laundering Victim Funds to NigeriaRead the Press Release
Miami, Florida – A Key West man was sentenced yesterday to 180 months’ imprisonment for laundering approximately $1 million of victim funds that were illegally obtained from romance and investment fraud scams that targeted elderly victims.
After a three-day trial before the Honorable United States District Court Judge K. Michael Moore, a jury found Sean Kerwin Bindranauth, 45, guilty of one count of conspiring to commit money laundering, six counts of substantive money laundering, and one count of conducting an unlicensed money transmitting business. According to court documents and the evidence presented at trial, Bindranauth’s conspirators contacted the victims (who were generally lonely older women) via social media, developed on-line relationships with the victims, and convinced them to send money to Bindranauth via wire transfer, personal checks, or cash.
The trial evidence showed that, once Bindranauth received the money, he sent it from the United States to Nigeria by using international money transfer companies, initiating direct bank transfers, purchasing gift cards and relaying the gift card information, and other means. Over a dozen seniors and other victims were tricked into sending Bindranauth and his co-conspirators approximately $1 million. Evidence at trial demonstrated that other victims sent Bindranauth cash via USPS. A forensic analyst testified that the total loss to victims was impossible to ascertain because of untraceable funds.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office, made the announcement.
HSI Miami investigated the case. Assistant U.S. Attorneys Lindsey Lazopoulos Friedman and Yisel Valdes prosecuted the case, with Assistant U.S. Attorney Daniele Croke handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 19-cr-10016-KMM.
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Kayenta Man Sentenced to 17.5 Years for Second Degree MurderRead the Press Release
PHOENIX, Ariz. - Joshua John Todecheene, 30, of Kayenta, Arizona, was sentenced yesterday by U.S. District Judge Diane J. Humetewa to 17.5 years in prison, followed by five years of supervised release. Todecheene previously pleaded guilty to second degree murder.
In February 2020, after an argument with the victim, Todecheene left the scene of the argument, returned with a rifle, and shot the victim in the chest, killing him. Todecheene and the victim are members of the Navajo Nation.
The Federal Bureau of Investigation and the Navajo Nation Division of Public Safety conducted the investigation in this case. Assistant U.S. Attorney Kiyoko Patterson, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-20-8038-PCT-DJH
RELEASE NUMBER: 2022-030_Todecheene# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Jury finds Greek citizen guilty of stealing Social Security benefitsRead the Press Release
HOUSTON - A 68-year-old legal permanent resident of Houston has been convicted of theft of public money, announced U.S. Attorney Jennifer B. Lowery.
The jury deliberated for approximately 90 minutes before convicting Greek citizen Panagiota Tsigelis following a two-day trial on all 34 counts as charged.
The jury heard that Tsigelis collected benefits intended for a Social Security retiree. However, that individual had passed away in September 2008.
At trial, a Social Security claims representative explained that once a beneficiary passes away, their retirement benefits are supposed to cease. A records review in 2017 showed that the deceased individual was still receiving Social Security retirement benefits directly deposited into his checking account.
The jury also heard from a federal agent who led the investigation and from a local manager from J.P. Morgan Chase bank. According to testimony, Tsigelis claimed she was married to the individual in Greece before he passed away. She said she thought she was still eligible for the benefits as his surviving spouse.
However, she untimely admitted she was never married to him and fabricated relationship because she was scared.
At trial, the defense attempted to convince the jury Tsigelis simply did not understand the rules due to a language barrier and genuinely believed she was entitled to the money. The jury ultimately convicted her as charged.
U.S. District Judge Keith Ellison presided over the trial and set sentencing for June 7. At that time, she faces up to 20 years in federal prison. She could also face loss of her legal status in the United States.
Tsigelis was permitted to remain on bond pending that hearing.
The Social Security Administration - Office of Inspector General conducted the investigation. Special Assistant U.S. Attorney Benjamin C. Sandel and Assistant U.S. Attorney Thomas H. Carter prosecuted the case.
Jefferson Parish Man Pleads Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – Travis CARTER, a/k/a “Tree,” age 42, a resident of Metairie, Louisiana, pled guilty on March 17, 2022, before U.S. District Judge Carl J. Barbier to a one-count indictment charging him with possession with intent to distribute cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), announced U.S. Attorney Duane A. Evans.
According to court documents, on January 7, 2021, Jefferson Parish Sheriff’s Office detectives executed a search of CARTER’s residence in Metairie. During the search, they discovered a digital scale with white powder residue, approximately one gram of suspected crack cocaine, a box of clear plastic bags, and $2,398.00 in U.S. currency. Detectives then transported CARTER to the Jefferson Parish Correctional Center. Correctional officers conducted a search of CARTER’s person, which resulted in the discovery of six clear plastic bags containing approximately 165.27 grams of cocaine located in CARTER’s shoes.
CARTER faces up to twenty (20) years imprisonment, a fine of up to $1,000,000, at least three (3) years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee.
This case was investigated by the Drug Enforcement Administration, Jefferson Parish Sheriff’s Office, and St. John Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers.
Indianapolis Man Sentenced to 24 Months in PrisonRead the Press Release
HAMMOND- Donte White, 26, of Indianapolis, Indiana, was sentenced by United States District Court Chief Judge Jon E. DeGuilio on his plea of guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
White was sentenced to 24 months in prison followed by 2 years of supervised release.
According to documents in the case, on February 2, 2021, White was found by law enforcement to be in possession of a firearm and marijuana in Hammond, Indiana. At that time, White had a prior felony conviction for robbery.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Hammond Police Department. This case was prosecuted by Assistant U.S. Attorney Caitlin M. Padula.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Guatemalan National Sentenced for Entering the United States After a Prior RemovalRead the Press Release
BANGOR, Maine: A Guatemalan national was sentenced today in federal court for entering the United States after a prior removal, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge John A. Woodcock, Jr. sentenced Nelson Obed Mendez-Gomez, 31, to a time-served sentence of three and half months. Mendez-Gomez pleaded guilty on February 9, 2022.
According to court records, in December 2021, Mendez-Gomez was a passenger in a truck driving in Rangeley. The vehicle refused to yield despite being followed by a U.S. Border Patrol Agent who was driving in a law enforcement vehicle with emergency lights and sirens. Once the truck stopped, Mendez-Gomez was removed along with the other vehicle occupants. A subsequent records check revealed that he had previously been deported from the United States on January 1, 2013, and July 12, 2017.
The U.S. Border Patrol investigated the case.
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Gang Leader Sentenced to over 17 Years in Prison for Drug and Gun OffensesRead the Press Release
Tampa, Florida – United States District Judge Thomas P. Barber today sentenced Keon Moore (30, Tampa) to 17 years and 6 months in federal prison for possessing a firearm or ammunition as a convicted felon and possessing controlled substances with the intent to distribute them. Moore had been indicted on June 4, 2020. A jury found him guilty on October 21, 2021.
According to testimony and evidence presented during sentencing and the four-day trial, Moore is a convicted felon and a high-ranking member of Money Power Respect (MPR)—a violent and rapidly growing prison and street gang that operates throughout the greater Tampa Bay area. Prior to being apprehended and convicted in this case, Moore stored guns and drugs for use by himself and others, sold guns and drugs, and threatened violence to collect drug debts. In one of Moore’s private Facebook communications, a person to whom Moore had provided drugs on consignment, but who failed to pay on time, begged Moore not to kill him via drive-by shooting over the $90 he owed Moore.
The charges brought in this case revolved around a Public Storage unit rented by Moore. After a law enforcement drug-detecting dog alerted to Moore’s unit, law enforcement officers executed a search warrant of the unit. Inside the otherwise empty 50 square-foot unit, officers located seven guns, including two rifles; ammunition; approximately 45 grams of pure methamphetamine; 34 grams of cocaine; 53 grams of Eutylone; and 1.6 kilograms of marijuana, among other drugs; and a clothing item containing Moore’s DNA. Ballistics analysis linked one of the guns to five unsolved shootings.
This case was investigated by the FBI, the Hillsborough County Sheriff’s Office, the Florida Department of Law Enforcement, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Michael M. Gordon. This case is part of an ongoing effort to disrupt and dismantle the MPR gang.
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 Middle District of Florida, U.S. Attorney Roger B. Handberg coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Former attorney sentenced for detainee list bribery schemeRead the Press Release
LAREDO, Texas - A 32-year-old McAllen attorney has been ordered to federal prison following his convictions of conspiracy to commit bribery and bribery of a public official, announced U.S. Attorney Jennifer B. Lowery.
Roel Alaniz pleaded guilty April 27, 2021.
Today, U.S. District Judge Fernando Rodriguez ordered Alanis to serve a total of 30 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court noted how the serious violation of his conduct and the series of continuing bribes in return for the alien rosters he received merited some incarceration time.
At the time of his plea, Alaniz admitted he paid immigration detention employees for alien detainee roster lists. Benito Barrientez, 43, Lyford, and Damian Ortiz, 31, Weslaco, were two employees of the Willacy County Regional Detention Center who sold the lists to Roel Alaniz or his sister - Cynthia Alanis, 28, Los Fresnos - who was also an attorney in the Rio Grande Valley.
The detainee lists were from the El Valle Detention Center-Raymondville and the Port Isabel Detention Center-Los Fresnos. They contained names, dates of birth, country of origin and A-numbers of alien detainees. The attorneys would then visit them, or instruct others to do so, in order to solicit them to hire his law firm for representation in immigration proceedings.
Barrientos, Ortiz and Exy Adelaida Gomez, 45, Los Fresnos, were also convicted and are pending sentencing. Each faces up to 15 years in federal prison and possible $250,000 maximum fine. Cynthia Alanis was previously sentenced.
Roel Alaniz was permitted to remain on bond and voluntarily surrender in the near future.
Immigration and Customs Enforcement–Office of Professional Responsibility conducted the investigation with assistance from the Department of Homeland Security-Office of Inspector General and Homeland Security Investigations. Assistant U.S. Attorney Oscar Ponce prosecuted the case.
Former UVM ER Doctor Sentenced to 100 Months of Imprisonment for Federal Child Pornography OffenseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on March 22, 2022, Eike Blohm, 39, of South Burlington, Vermont, was sentenced in United States District Court in Burlington, Vermont, to serve 100 months of imprisonment following his guilty plea to one count of possession of child pornography. U.S. District Judge Christina Reiss also ordered Blohm to serve a 12-year term of supervised release, to pay restitution to identified victims, and to pay a special assessment of $100. Blohm’s federal sentence of 100 months will run concurrently with the 80-to-82-month sentence of imprisonment Blohm received in Vermont state court as a result of his guilty pleas to lewd and lascivious conduct and voyeurism.
According to court records and proceedings, an employee at the University of Vermont Medical Center (UVM MC) discovered a camera hidden in a unisex employee bathroom in the Emergency Department. Investigators with the Chittenden Unit for Special Investigations (CUSI) recovered the camera and discovered approximately 1,300 videos on the camera. Approximately 900 videos depicted hospital employees in at least two bathrooms at UVM MC. Thereafter, CUSI investigators obtained a warrant to search Blohm’s residence in South Burlington, Vermont. Investigators seized numerous digital devices during that residential search. A search of the digital devices revealed the presence of child pornography, some of which depicted children under the age of twelve years old and sadistic and masochistic abuse against children.
U.S. Attorney Nikolas Kerest commended the investigative efforts of the Chittenden Unit for Special Investigations, Homeland Security Investigations, and the Vermont Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Barbara A. Masterson handled the prosecution. Lisa B. Shelkrot of Langrock Sperry & Wool, LLP, represented Blohm.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and Child Exploitation Obscenity Section, Criminal Division (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former St. Louis police officer sentenced to one year and one day in fraud caseRead the Press Release
ST. LOUIS – United States District Court Judge Sarah E. Pitlyk sentenced former St. Louis Metropolitan Police Officer Brad Stephens to one year and one day in federal prison for 3 counts of Mail Fraud by obtaining taxpayer moneys from the Tower Grove South Concerned Citizen Special Business District (“Tower Grove South”) by means of material false representations. Stephens pleaded guilty on December 6, 2021.
According to court documents, Stephens was employed as a police officer by the St. Louis Metropolitan Police Department (“SLMPD”) in St. Louis, Missouri, and had been employed by the SLMPD since October 6, 2014.
Tower Grove South was established to provide special police and/or security for the protection and enjoyment of the property owners and the public within the district. The administration and operations of the business district are taxpayer funded. City Wide Security (“CWS”) is a private company that contracts with businesses and organizations to provide private security patrols. CWS contracted to provide security patrols in the Tower Grove South Neighborhood beginning during 2010.
Stephens was employed by CWS beginning in approximately 2015 to work during some of his off-duty hours to patrol the Tower Grove South Neighborhood. Stephens falsely represented to CWS 169 day and night patrol shifts he agreed to work as part of the CWS security patrol in the Tower Grove South Neighborhood when, in fact, Stephens did not actually work those assigned shifts. During 2018, Stephens falsely represented that he worked 93 days, and during 2019, Stephens falsely represented that he worked 76 days. CWS was paid approximately $50,000 by the Tower Grove South organization based upon Stephens’ false representations, all taxpayer funds.
The case was investigated by the Federal Bureau of Investigation and the St. Louis Metropolitan Police Department.
Former IRS Employee Pleads Guilty to Tax EvasionRead the Press Release
A former IRS employee pleaded guilty today to tax evasion for filing false tax returns and providing fabricated records to the IRS in an attempt to obstruct an audit of those returns.
According to court documents, Wayne M. Garvin, 57, currently of Columbia, South Carolina, was a long-time IRS employee who most recently worked as a Supervisory Associate Advocate with the IRS’s Taxpayer Advocate Service in Philadelphia, Pennsylvania. For the years 2012 through 2016, Garvin prepared and filed with the IRS individual income tax returns on which he claimed false deductions and expenses associated with rental properties he owned, fictitious real estate taxes on his personal residence and made-up charitable contributions. On his 2013 tax return, Garvin also deducted nearly $16,000 in false expenses associated with his employment with the U.S. Army Reserves. Although Garvin was formerly a member of the U.S. Army Reserves, he did not perform any reservist duty in 2013 and was not entitled to deduct any expenses related to that employment. In total, Garvin admitted to causing a loss to the IRS of more than $74,000.
Court documents also show that after the IRS began an audit of Garvin’s 2013 and 2014 tax returns, Garvin attempted to obstruct the audit by submitting fictitious documents to the IRS. For example, to justify the false deductions and expenses on his tax returns, Garvin created and submitted receipts from a church, invoices from a contractor and a letter from the Department of the Army. After learning he was under criminal investigation, Garvin later submitted some of the same fraudulent documents to IRS-Criminal Investigation.
Garvin is scheduled to be sentenced on July 6. He faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jennifer Arbittier Williams for the Eastern District of Pennsylvania made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorney Melissa S. Siskind of the Tax Division and Assistant U.S. Attorney Tiwana Wright for the Eastern District of Pennsylvania are prosecuting the case.
Florida Man Is Sentenced to Prison for CyberstalkingRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Max O. Cogburn Jr. sentenced Jalon Carlos Torres, 43, of Boynton Beach, Florida, to 27 months in prison for cyberstalking and making interstate threats, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement.
According to filed documents and today’s court proceedings, from July 2020 to February 2021, Torres used various means of communication to cyberstalk a bank employee and her husband. The cyberstalking began after the bank employee, identified in documents as Jane Doe, informed Torres that his bank account would be closed due to unauthorized activity. Over the next eight months after the initial communication with Torres, the victim and her family endured a campaign of constant harassment and intimidation by the defendant, through dozens of telephone calls, voice mails, and text messages. These communications contained explicit and implicit threats to harm Jane Doe, her husband and her children, racial slurs, racist imagery including Nazi symbols, and pornographic imagery.
On October 1, 2021, Torres pleaded guilty to cyberstalking and two counts of making interstate threats. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the FBI for their investigation.
Assistant U.S. Attorney Matthew Warren of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Fitchburg Woman Sentenced for Role in Fentanyl, Heroin, Crack and Cocaine ConspiracyRead the Press Release
BOSTON – A Fitchburg woman was sentenced today in federal court in Worcester for her role in a wide-ranging fentanyl, heroin, cocaine and crack cocaine trafficking conspiracy.
Amanda Ford, 35, was sentenced by U.S. District Court Judge Timothy S. Hillman to two years in prison and three years of supervised release. On Dec. 3, 2021, Ford pleaded guilty to conspiracy to distribute and possession with intent to distribute fentanyl, heroin, cocaine and cocaine base.
According to court documents, following a fatal fentanyl overdose in September 2018, an investigation began into a drug trafficking organization (DTO) in the Fitchburg area led by co-conspirators Pedro Baez and Anthony Baez. Beginning in July 2019, intercepted electronic communications between Pedro and Anthony Baez, and other members of the DTO, revealed that Ford worked with Pedro and Anthony Baez to distribute a fentanyl and heroin mixture and crack cocaine on a regular basis to individuals in the Fitchburg area who then redistributed that mixture to others.
Over the course of the investigation, over 1.8 kilograms of a heroin and fentanyl mixture, over 3.6 kilograms of cocaine and over 50 grams of crack cocaine, as well as a stolen, loaded handgun, drug manufacturing equipment and over $376,000 was seized. Ford was responsible for distributing over 150 grams of fentanyl.
Ford was charged along with 17 others in July 2020. Ford is the eighth defendant to be sentenced in the case. In December 2020, Anthony Baez was sentenced by Judge Hillman to 13 years in prison and five years of supervised release. Three of the remaining defendants, Pedro Baez, Branny Taveras and Hector Matos have pleaded guilty and are awaiting sentencing.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. The Fitchburg Police Department, U.S. Postal Inspection Service and the Lunenburg Police Department also provided valuable assistance. Assistant U.S. Attorney Alathea Porter of Rollins’ Narcotics and Money Laundering Unit prosecuted the case.
The operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Fentanyl Dealer Sentenced to over 20 Years in Prison for Conspiracy to Distribute Heroin and FentanylRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung has sentenced Antonio Nunez III (34, Palmetto) to 20 years and 10 months in federal prison for conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin and 400 grams or more of fentanyl. Nunez had pleaded guilty on October 31, 2019.
According to court documents, beginning no later than March 2016 and continuing through May 2019, Nunez and his co-defendant, Antoine Waiters, conspired to possess heroin, fentanyl, and other controlled substances and sell the drugs from a trap house located in Palmetto, Florida. Over the course of the conspiracy, Nunez and Waiters distributed at least one kilogram of heroin and at least 400 grams of fentanyl and sold fentanyl to confidential sources on multiple occasions. More than $30,000 in U.S. currency, assorted jewelry, and two vehicles were forfeited as proceeds of the conspiracy.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “Hot Batch.” OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
This case was investigated by the Drug Enforcement Administration, the Manatee County Sheriff’s Office, and the Bradenton Police Department. It was prosecuted by Assistant United States Attorney Michael Sinacore.