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16 March 2022
Previously Convicted Baltimore Felon Pleads Guilty to Federal Charges for Illegal Possession of a Stolen FirearmRead the Press Release
Baltimore, Maryland – Tarance Damon Cousar, age 44, of Baltimore, Maryland, pleaded guilty today to the federal charge of illegal possession of a stolen firearm. Cousar was a previously convicted felon and knew that he was prohibited from possessing a firearm or ammunition. Cousar admitted that he knew, or had reason to know, that the gun was stolen.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge L.C. Cheeks, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, in 2021, law enforcement began investigating drug trafficking and firearms-related incidents in the area of the 1200 block of West Baltimore Street in Baltimore. Investigators used CCTV to monitor members of a suspected drug trafficking organization (“DTO”) who conducted hand-to-hand transactions of suspected controlled dangerous substances (“CDS”). Individuals, including Tarance Cousar, were seen on CCTV exchanging cash for vials containing suspected CDS, frequently out in the open.
In April 2021, investigators purchased a total of 11 vials of suspected MDMA, also known as Ecstasy. Lab analysis of the drugs determined that it was Eutylone, a controlled substance that is a substitute of MDMA. On June 17, 2021, investigators watching the CCTV feed again observed Cousar conduct a hand-to-hand drug transaction.
As detailed in the plea agreement, on June 24, 2021, law enforcement executed court-authorized search warrants at Cousar’s residence, on his vehicle, and on his person. When law enforcement arrived at Cousar’s residence, Cousar was found in the living room. Investigators recovered: a 9mm pistol and 13 rounds of 9mm ammunition located in the pistol’s magazine; one black plastic bag containing 62 grams of Eutylone, along with empty packaging material; a digital scale with a white powdery residue; a black plastic bag containing drug packaging material; and a cell phone. Law enforcement checked the serial number on the firearm and learned that it had been stolen from North Carolina.
Cousar admitted that everything found in the house belonged to him. Further, Cousar knew that as a result of previous convictions for possession with intent to distribute CDS, voluntary manslaughter, and use of a handgun in a crime of violence, he was prohibited from possessing a firearm or ammunition.
Cousar and the government have agreed that, if the Court accepts the plea agreement, Cousar will be sentenced to between 102 and 120 months in federal prison. U.S. District Judge Deborah L. Boardman has scheduled sentencing for June 9, 2022, at 10:00 a.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Erek L. Barron commended the ATF and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Anatoly Smolkin, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Ohio County Man Sentenced to 235 Months in Federal Prison for Child Exploitation CrimesRead the Press Release
OWENSBORO, Kentucky – An Ohio County, Kentucky man was sentenced yesterday to 235 months in prison followed by a 10-year term of supervised release for distribution and possession of child pornography. There is no parole in the federal system.
According to court documents, Freddie Fulton, 41, of Beaver Dam, Kentucky used a messaging application to upload an image of child pornography. After identifying Fulton as the likely sender, law enforcement searched Fulton’s phone, finding 286 images and 25 videos of child pornography. Fulton’s laptop contained additional images of child pornography, and the investigation found that Fulton had created certain images by misrepresenting his identity and then engaging in sexual acts with a victim.
Officers sent materials found on Fulton’s electronic devices to the National Center for Missing and Exploited Children (NCMEC) for victim identification, resulting in the identification of numerous image and video files involving known child sexual abuse material. Altogether, Fulton’s collection included victims from 21 identified child pornography series that are circulated on the internet from around the world, including Germany, Lithuania, Moldova, the Netherlands, Russia, Slovenia, Ukraine, and the United States.
“Outstanding investigative work by HSI Nashville and the Kentucky State Police,” stated United States Attorney Michael A. Bennett. “We will continue to aggressively prosecute individuals who sexually exploit and abuse our children. The victims of such offensive criminal conduct deserve nothing less.”
“Our agents are committed to protecting vulnerable children from exploitation by predators involved with the production, distribution and possession of child sexual abuse material,” said HSI Nashville Special Agent in Charge Jerry C. Templet, Jr. “We will continue to use every investigative tool available, working in collaboration with our law enforcement partners, to ensure these perpetrators are apprehended and punished for their appalling crimes.”
United States Department of Homeland Security, Homeland Security Investigations (HSI) investigated the case with assistance from the Kentucky State Police.
Assistant U.S. Attorney Madison Sewell prosecuted the case.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
New York Man Pleads Guilty in Multimillion-Dollar Fraud SchemeRead the Press Release
A New York resident pleaded guilty today in the Eastern District of New York to participating in a fraudulent multimillion-dollar mass-mailing scheme that tricked consumers into paying fees for falsely promised cash prizes.
According to court documents, from August 2014 through August 2019, Scott Gammon, 47, of Broad Channel, New York, engaged in a direct-mail scheme that sent fraudulent prize notification mailings to thousands of consumers. The mailings induced consumers to pay a fee, purportedly in return for a large cash prize. None of the consumers who sent a fee ever received such a prize. Gammon is the third defendant to plead guilty to conspiracy to commit mail fraud in connection with this scheme.
“Fraudulent prize notices often cause victims, including the elderly, to send money based on false promises of large cash prizes,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This guilty plea is the latest example of the Department of Justice continuing to pursue and prosecute the perpetrators of these schemes.”
“The defendant admitted he deceived elderly and vulnerable victims into believing they had won cash prizes by inducing them to pay bogus ‘fees’ to him and his co-conspirators,” stated U.S. Attorney Breon Peace for the Eastern District of New York. “This office will continue to protect our seniors and other consumers from harm caused by predatory solicitation schemes.”
“Postal Inspectors remind consumers, if you have to pay to win a prize, you’ll lose your money,” said Inspector in Charge Daniel B. Brubaker of the U.S. Postal Inspection Service. “These are all scams designed to lure consumers into sending their hard-earned money — not for a prize, but to fatten the pockets of a fraudster. Mr. Gammon may have thought he got away with this scheme, but he was sadly mistaken when he was confronted by the full investigative power of law enforcement.”
Two other defendants previously pleaded guilty to conspiracy to commit mail fraud for participating in the scheme. Christopher King, 36, of Oceanside, New York, pleaded guilty on Sept. 15, 2021. Natasha Khan, 38, of Elmont, New York, pleaded guilty on Dec. 15, 2021.
Gammon’s plea took place before Magistrate Judge Steven I. Locke. Gammon is scheduled to be sentenced at a later date. Each of the three defendants faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Postal Inspection Service investigated the case.
Trial Attorneys Daniel Zytnick and Timothy Finley of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Charles P. Kelly of the U.S. Attorney’s Office for the Eastern District of New York are prosecuting the case.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch.
Nevada Man Pleads Guilty to Interference with Flight Crew Members and Assault Aboard Aircraft En Route to Las VegasRead the Press Release
RENO, Nev. – A Gardnerville, Nevada man pleaded guilty on Monday to interference with flight crew members and assault during a flight from Seattle to Las Vegas.
Daniel A. Parkhurst (38) pleaded guilty to one count of interference with flight crew members and attendants, and one count of simple assault in the special aircraft jurisdiction of the United States. U.S. Chief Judge Miranda M. Du scheduled a sentencing hearing for June 24, 2022.
According to court documents and admissions made in court by Parkhurst, on October 31, 2019, he intimidated flight crew members and flight attendants on a Southwest Airlines flight from Seattle to Las Vegas. During the flight, he assaulted another passenger. The resulting disturbance involved flight attendants and other passengers, and interfered with the performance of the flight crew’s and flight attendants’ duties. Parkhurst’s actions caused the aircraft to be diverted from its flight to Las Vegas, instead landing in Reno.
The statutory maximum penalty is 20 years in prison for interference with flight crew members and attendants, and six months in prison for simple assault in the special aircraft jurisdiction of the United States.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Acting Special Agent in Charge W.M. Herrington for the FBI made the announcement.
This case was investigated by the FBI, Reno-Tahoe International Airport Police Department, Office of the Nevada Attorney General, Douglas County Sheriff’s Office, and Carson City Sheriff’s Office. Assistant U.S. Attorneys Randolph St. Clair and Penelope Brady are prosecuting the case.
If you think you are a victim of assault aboard an aircraft, please report the incident to your flight crew and to the FBI at www.tips.fbi.gov or call 1-800-CALL-FBI, or contact your local FBI office.
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Naval Flight Officer Sentenced to Four Years in Prison for Conspiring to Violate Firearms Law and Lying During Security Clearance Background InvestigationRead the Press Release
A Florida man was sentenced today to four years in prison followed by three years of supervised release for conspiring to violate U.S. firearms laws, making false written statements to federally licensed firearms dealers during the purchase of two firearms, and making false written statements as part of a security clearance background investigation.
Fan Yang, 37, of Jacksonville, was convicted by a federal jury on Nov. 12, 2021. According to court documents, Yang is a Lieutenant in the U.S. Navy, trained in anti-submarine warfare. As a Naval Flight Officer, he flew in the back of the Navy’s P-8 Poseidon, a land-based patrol aircraft, and operated sensors and coordinated tactics.
“Fan Yang held a position of trust with the U.S. government working on anti-submarine warfare,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today, the court held him accountable for violating that trust by lying to the government about significant foreign relationships.”
“This case is about more than federal firearms law. It’s about a former Naval flight officer with top-secret security clearance and trained in anti-submarine warfare, who lied about his connections to the People’s Republic of China on U.S. government employment forms,” said Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division. “To ensure only the most trustworthy people have access to sensitive information and military technology, U.S. Government employees have a duty to be truthful in their background investigations. The FBI is grateful to its partners who were instrumental in investigating this case. “
“Lt. Fan Yang swore an oath to protect this country, but instead he posed a significant risk to U.S. national security when he failed to report his contact with the head of a Chinese Defense Contracting firm,” said Special Agent in Charge Sherri E. Onks of the FBI’s Jacksonville Field Office. “This act was even more egregious considering Lt. Yang’s Top Secret security clearance and active-duty status as an officer in the U.S. Navy. The FBI and our law enforcement partners will continue to use our full investigative capabilities to investigate, expose and prevent further threats to U.S. national security posed by foreign competitors and adversaries.”
“Lt. Yang brought discredit to the Navy and threatened military operational readiness when he decided to make straw purchases of firearms for a foreign national and lie about that relationship during his security clearance background investigation,” said Special Agent in Charge Michelle Kramer of the Naval Criminal Investigative Service (NCIS) Office of Special Projects. “This sentence should serve as a warning that NCIS and our law enforcement partners are committed to rooting out criminality that jeopardizes U.S. warfighter superiority. We sincerely thank the NCIS Southeast Field Office and the FBI for their substantial efforts during this investigation.”
Prior to becoming a commissioned naval officer, Fan Yang formed a relationship online with Songtao Ge, a citizen of the People’s Republic of China. Photographs admitted at trial showed that the two eventually met in person in 2013, while Yang was in Navy flight training in Pensacola. In 2016, while Yang was stationed in Jacksonville, Yang recommended that Ge hire Yang’s wife, Yang Yang, as an employee of Shanghai Breeze Technology Co. Ltd., Ge’s company headquartered in Shanghai, China. That company purchased in the United States and exported to China maritime equipment designed for law enforcement and military missions.
From the time that she was hired, Yang Yang received more than $300,000 in payments from Shanghai Breeze, its creditors, and Ge’s executive assistant and co-defendant, Zheng Yan. The money was used to pay Yang Yang’s salary, Shanghai Breeze’s expenses in the United States, and for goods that Ge Songtao ordered the Yangs to purchase. The funds were frequently routed through the Yangs’ family business, BQ Tree LLC.
In 2017 and again in 2018, acting on Ge’s instructions, Fan Yang purchased two handguns for him, specifically a Sig Sauer 9 mm pistol and a Glock 9mm pistol. Songtao reimbursed the Yangs for both purchases and had the Sig Sauer pistol engraved with his initials – “G.S.T.” – and the phrase “Never Out of the Fight.” Each time he purchased a firearm, Fan Yang completed a Firearms Transactions Record (known as ATF Form-4473) on which he falsely represented that he was purchasing the firearm for himself, rather than for Ge.
The evidence at trial showed that although Ge employed Yang Yang, had been to the Yangs’ home, and had paid for the Yangs to travel and visit him, Fan Yang consistently hid their relationship from the Navy. For example, in July 2018, Yang asked for time off from his Navy chain of command, claiming that he was travelling with his family to “Disney” when in fact, he and his wife secretly travelled to Nebraska and met with Ge.
Then, in January 2019, while assigned as a tactics instructor at the Maritime Patrol and Reconnaissance Weapons School in Jacksonville, Fan Yang completed and signed a background questionnaire as part of the renewal of his top secret security clearance. That questionnaire (called an SF-86 or eQIP) required the disclosure of a variety of information, including any close or continuing contact with foreign nationals. Yang failed to disclose the extent of his contacts with Ge, and hid that he had maintained a bank account in China, sometimes worked for his family business, BQ Tree LLC, and possessed an expired Chinese passport.
On Nov. 2, 2020, Ge pleaded guilty to conspiring to submit false export information through the federal government’s Automated Export System and to export special forces maritime raiding craft and engines to China fraudulently, and attempting to export that equipment fraudulently, in violation of U.S. law. On July 14, 2021, he was sentenced to three years and six months years in federal prison. On September 15, 2020, Yang Yang pleaded guilty to the same two charges to which Ge had pleaded guilty, and on Dec. 9, 2020, was sentenced to time-served, or the equivalent of approximately 14 months’ imprisonment. On Aug. 13, 2020, co-defendant Zheng Yan pleaded guilty to conspiring to submit false export information and to export the raiding craft and engines fraudulently, in violation of U.S. law, and on March 31, 2021, was sentenced to a time-served sentence or the equivalent of approximately six months’ imprisonment and 11 months’ home-detention.
This case was investigated by the FBI, NCIS, the U.S. Department of Commerce – Bureau of Industry and Security, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys Michael J. Coolican and Kirwinn Mike for the Middle District of Florida, as well as Senior Trial Attorney Heather Schmidt of the National Security Division’s Counterintelligence and Export Section are prosecuting the case.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
Naval Flight Officer Sentenced to Four Years in Prison for Conspiring to Violate Firearms Law and Lying During Security Clearance Background InvestigationRead the Press Release
Jacksonville, Florida – U.S. District Judge Harvey E. Schlesinger today sentenced Fan Yang (37, Jacksonville) to 48 months in federal prison, followed by 3 years’ supervised release, for conspiring with his co-defendants Ge Songtao (52, Nanjing, People’s Republic of China) and Yang Yang (36, Jacksonville) to violate U.S. firearms laws, making false written statements to federally licensed firearms dealers during the purchase of two firearms and making false written statements as part of a security clearance background investigation. The Court also ordered Yang to forfeit the firearms that he purchased as a part of the conspiracy, specifically, a Sig Sauer 9mm pistol and a Glock 9mm pistol. A federal jury found Yang guilty on November 12, 2021.
According to evidence presented at trial, Yang is a Lieutenant in the U.S. Navy, trained in anti-submarine warfare. As a Naval Flight Officer, he flew in the back of the Navy’s P-8 Poseidon, a land-based patrol aircraft, and operated sensors and coordinated tactics.
Prior to becoming a commissioned naval officer, Yang formed a relationship online with Ge Songtao, a citizen of the People’s Republic of China. Photographs admitted at trial showed that the two eventually met in person in 2013, while Yang was in Navy flight training in Pensacola. In 2016, while Yang was stationed in Jacksonville, Yang recommended that Ge Songtao hire Yang’s wife, Yang Yang, as an employee of Shanghai Breeze Technology Co. Ltd., Ge Songtao’s company headquartered in Shanghai, China. That company purchased in the U.S. and exported to China maritime equipment designed for law enforcement and military missions.
From the time that she was hired, Yang Yang received more than $300,000 in payments from Shanghai Breeze, its creditors, and Ge Songtao’s executive assistant and co-defendant, Zheng Yan. The money was used to pay Yang Yang’s salary, Shanghai Breeze’s expenses in the U.S., and for goods that Ge Songtao ordered the Yangs to purchase. The funds were frequently routed through the Yangs’ family business, BQ Tree LLC.
In 2017 and again in 2018, acting on Ge Songtao’s instructions, Fan Yang purchased two handguns for him, specifically a Sig Sauer 9mm pistol and a Glock 9mm pistol. Ge Songtao reimbursed the Yangs for both purchases and had the Sig Sauer pistol engraved with his initials – “G.S.T.” – and the phrase “Never Out of the Fight.” Each time he purchased a firearm, Fan Yang completed a Firearms Transactions Record (known as ATF Form-4473) on which he falsely represented that he was purchasing the firearm for himself, rather than for Ge Songtao.The evidence at trial showed that although Ge Songtao employed Yang’s wife, had been to the Yangs’ home, and had paid for the Yangs to travel and visit him, Fan Yang consistently hid their relationship from the Navy. For example, in July 2018, Yang asked for time off from his Navy chain of command, claiming that he was travelling with his family to “Disney” when in fact, he and his wife secretly travelled to Nebraska and met with Ge.
Then, in January 2019, while assigned as a tactics instructor at the Maritime Patrol and Reconnaissance Weapons School in Jacksonville, Yang completed and signed a background questionnaire as part of the renewal of his top secret security clearance. That questionnaire (called an SF-86 or eQIP) required the disclosure of a variety of information, including any close or continuing contact with foreign nationals. Yang failed to disclose the extent of his contacts with Ge Songtao, and hid that he had maintained a bank account in China, sometimes worked for his family business, BQ Tree LLC, and possessed an expired Chinese passport.
On November 2, 2020, Ge Songtao pleaded guilty to conspiring to submit false export information through the federal government’s Automated Export System and to export special forces maritime raiding craft and engines to China fraudulently, and attempting to export that equipment fraudulently, in violation of U.S. law. On July 14, 2021, he was sentenced to three years and six months years in federal prison. On September 15, 2020, Yang Yang pleaded guilty to the same two charges to which Ge Songtao had pleaded guilty, and on December 9, 2020, was sentenced to time-served, or the equivalent of approximately 14 months’ imprisonment. On August 13, 2020, co-defendant Zheng Yan pleaded guilty to conspiring to submit false export information and to export the raiding craft and engines fraudulently, in violation of U.S. law, and on March 31, 2021, was sentenced to a time-served sentence or the equivalent of approximately 6 months’ imprisonment and 11 months’ home-detention.
“Lt. Fan Yang swore an oath to protect this country, but instead he posed a significant risk to U.S. national security when he failed to report his contact with the head of a Chinese Defense Contracting firm,” said Sherri E. Onks, Special Agent in Charge of the FBI Jacksonville Division. “This act was even more egregious considering Lt. Yang’s Top Secret security clearance and active duty status as an officer in the U.S. Navy. The FBI and our law enforcement partners will continue to use our full investigative capabilities to investigate, expose, and prevent further threats to U.S. national security posed by foreign competitors and adversaries.”
“Lt. Yang brought discredit to the Navy and threatened military operational readiness when he decided to make straw purchases of firearms for a foreign national and lie about that relationship during his security clearance background investigation,” said Special Agent in Charge Michelle Kramer of the NCIS Office of Special Projects. “This sentence should serve as a warning that NCIS and our law enforcement partners are committed to rooting out criminality that jeopardizes U.S. warfighter superiority. We sincerely thank the NCIS Southeast Field Office and the FBI for their substantial efforts during this investigation.”
This case was investigated by the Federal Bureau of Investigation, the U.S. Naval Criminal Investigative Service, the U.S. Department of Commerce – Bureau of Industry and Security, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys Michael J. Coolican and Kirwinn Mike, as well as Heather Schmidt, Senior Trial Attorney, Counterintelligence and Export Section, U.S. Department of Justice.
Navajo man sentenced to 14 years in federal prison for sexual abuse of a minor in Indian CountryRead the Press Release
ALBUQERQUE, N.M. – Bryan Bull, 40, of Shiprock, New Mexico, and an enrolled member of the Navajo Nation, was sentenced on March 15 in federal court to 14 years in prison for aggravated sexual abuse of a minor in Indian Country.
Bull pleaded guilty on Aug. 30, 2021. According to the plea agreement and other court records, on June 3, 2019, Bull and Jeremiah Elijah Jim, 32, of Teec Nos Pos, Arizona, and an enrolled member of the Navajo Nation, used intimidation and force on then 14-year-old John Doe and sexually abused him. The abuse took place in Shiprock on the Navajo Nation.
Upon his release from prison, Bull will be subject to five years of supervised release and must register as a sex offender.
Jim pleaded guilty to sexual abuse of a minor and was sentenced on Oct. 27, 2021, to 24 years in prison and must register as a sex offender.
The Farmington Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department.
Montour County Man Charged with Distributing MethamphetamineRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kevin Murry, age 44, of Montour County, Pennsylvania, was indicted on March 10, 2022, by federal grand jury on two counts of distribution of methamphetamine.
According to United States John C. Gurganus, the indictment alleges that Murry distributed more than 50 grams of methamphetamine in Montour County on February 18 and March 7, 2022.
The investigation was conducted by the Federal Bureau of Investigation. Assistant United States Attorney Alisan V. Martin is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The maximum penalty for each charge is up to 40 years of imprisonment, a life term of supervised release, and a fine of $5,000,000. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Missouri Man Sentenced to 180 Months’ Imprisonment for Production of Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that James Tyler Murphy, age 25, of Amoret, Missouri, was sentenced on March 15, 2022, to 180 months’ imprisonment to be followed by 20 years of supervised release by U.S. District Court Judge Christopher C. Conner for production of child pornography.
According to U.S. Attorney John C. Gurganus, in July 2021, Murphy entered a guilty plea to one count of production of child pornography. Murphy produced pornographic videos of a 12-year-old York County child between April 3 and April 28, 2018.
This case was investigated by the Federal Bureau of Investigation Harrisburg Resident Office. Assistant United States Attorney Christian Haugsby prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Middlesex County Man Admits $1.6 Million Paycheck Protection Program and Economic Injury Disaster Loan Fraud SchemeRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man today admitted his role in a scheme to defraud lenders and the Small Business Administration (SBA) by fraudulently obtaining approximately $1.6 million in federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL), U.S. Attorney Philip R. Sellinger announced.
Jordan C. Larkins, 32, of Edison New Jersey, pleaded guilty before U.S. District Judge Zahid N. Qurashi by videoconference to an information charging him with one count wire fraud, one count bank fraud, and one count money laundering.
According to documents filed in this case and statements made in court:
From May 2020 through July 2020, Larkins submitted three fraudulent PPP loan applications to three different lenders and 11 EIDL applications to SBA on behalf of numerous purported businesses.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses. The EIDL program was an SBA program that provided low-interest financing to small businesses, renters, and homeowners in regions affected by declared disasters. The CARES Act authorized the SBA to provide EIDLs of up to $2 million to eligible small businesses that were experiencing substantial financial disruption due to the COVID-19 pandemic.
On his 14 fraudulent PPP and EIDL applications, Larkins made false representations to the participating lenders and the SBA, including fake federal tax return documentation for his purported businesses and fake bank statements. He also fabricated the identities of certain individuals listed as applicants and the corresponding driver’s licenses of those purported applicants.
Based on Larkins’ misrepresentations, he obtained approximately $1.6 million in PPP and EIDL funds. Larkins then misused the funds by making a series of cash withdrawals, transferring funds to foreign banks, and for various other personal expenses.
The charge of bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine; the charge of wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine; the charge of money laundering carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest. Sentencing is scheduled for July 21, 2022.
U.S. Attorney Sellinger credited inspectors of the U.S. Postal Inspection Service, Newark Division, under the direction of Inspector in Charge Damon Wood; special agents of the IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; and special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Sharon MacDermott, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the U.S. Attorney’s Office’s Government Fraud Unit in Newark.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Mexican National Sentenced for Theft of Social Security BenefitsRead the Press Release
DEL RIO – A Mexican national was sentenced last week to 45 months in prison for stealing Social Security benefits.
According to court documents, in May 2006 Jaime Aguilar, 60, applied for Social Security Insurance (SSI) benefits, claiming to be a U.S. citizen. Aguilar also applied and received Medicaid benefits beginning in March 2012, again claiming he was a U.S. citizen. It was later determined that Aguilar was a Mexican citizen and had fraudulently received $247,477.68 in government assistance payments.
On March 31, 2021, Aguilar pleaded guilty to one count of Theft of Public Money. In addition to the prison sentence, Aguilar was ordered to pay $247,477.68 in restitution. Aguilar has remained in federal custody since his arrest on April 18, 2019.
“We are pleased with the outcome of this case and thank our law enforcement partners for their diligence in investigating this matter and bringing it to a successful conclusion,” said U.S. Attorney Ashley C. Hoff. “This office is resolved to investigate and prosecute those crimes where people attempt to steal from finite resources that go to support the most vulnerable in our communities.”
“By concealing material information, Mr. Aguilar fraudulently gained entitlement to SSI, a critical safety net for eligible persons. He not only defrauded SSA, but in doing so, he also improperly received other federal benefits. His sentence shows our commitment to protect Social Security benefits and to hold accountable those who misuse its programs,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I thank Homeland Security Investigations and the Texas Health and Human Services Commission Office of the Inspector General for their investigative efforts. I also thank the U.S. Attorney’s Office for prosecuting this case.”
The Office of Inspector General - Social Security Administration and the Texas Health and Human Services Office of the Inspector General, with invaluable help from Homeland Security Investigations, investigated the case.
Assistant U.S. Attorney Joshua Banister prosecuted the case.
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Memphis Man Charged with Trafficking 14-Year-Old Female into the New Orleans Area to Perform Commercial Sex ActsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that JEREMY TALBERT, age 26, from Memphis, Tennessee, was charged today in a one-count bill of information for his role in bringing a fourteen-year-old female from Memphis, Tennessee to New Orleans, Louisiana for the purpose of having her perform commercial sex acts in or about October 2020 and continuing until on or about December 17, 2020. For this alleged conduct, the bill of information charges TALBERT with Sex Trafficking of a Minor, in violation of Title 18, United States Code, Sections 1591(a)(1), 1591(b)(2), 1594(a), and 2.
If convicted, TALBERT faces a minimum sentence of ten (10) years imprisonment up to life imprisonment. The defendant also faces supervised release for a term of five years to life, up to a $250,000 fine, a requirement that the defendant participate in the sex offender registration and notification program, and a mandatory $100.00 special assessment fee.
U.S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. Assistant United States Attorneys Maria Carboni and Jordan Ginsberg, Supervisor of the Public Corruption Unit, are in charge of the prosecution.
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Man from Los Lunas pleads guilty to federal gun chargeRead the Press Release
ALBUQERQUE, N.M. – Diego Fernandez, 23, of Los Lunas, New Mexico, pleaded guilty in federal court on March 7 to being a felon in possession of a firearm and ammunition.
Fernandez was indicted by a federal grand jury on July 12, 2021. According to the plea agreement and other court records, on April 7, 2021, as law enforcement attempted to execute a traffic stop, Fernandez attempted to flee, driving recklessly and towards oncoming traffic in Bernalillo County, New Mexico. Shortly after, law enforcement located Fernandez with the assistance of air support and apprehended him as he tried to escape on foot.
At the time of the arrest, Fernandez possessed a loaded firearm. As a convicted felon, Fernandez could not legally possess a firearm or ammunition.
Fernandez faces up to 10 years in prison.
The FBI’s Albuquerque Violent Crime and Gang Task Force (VCGTF) investigated this case with assistance from the New Mexico State Police. Assistant U.S. Attorney Samuel A. Hurtado is prosecuting the case.
Man from Albuquerque sentenced to 10 years in federal prison for sex trafficking conspiracyRead the Press Release
ALBUQERQUE, N.M. – Devin Perkins, 26, of Albuquerque, was sentenced in federal court on Feb. 23 to 10 years in prison for conspiracy to commit sex trafficking of a minor. Perkins pleaded guilty on May 9, 2019.
Perkins and his co-conspirators, including Jason Jackson, 27, of Rio Rancho, New Mexico, and Keron “Smash Bro” Lucious, 24, of Albuquerque, were charged with various crimes, including conspiracy to recruit minors to engage in commercial sex acts.
In his plea agreement, Perkins admitted that from April 2017 to July 2017, he conspired with Lucious, Jackson and others to recruit, entice, harbor, transport and advertise a minor child for the purpose of prostitution. In furtherance of the conspiracy, Perkins rented hotel rooms, advertised on internet sites and transported the victim for commercial sex acts.
Upon his release from prison, Perkins will be subject to five years of supervised release.
The case was investigated by the FBI, Homeland Security Investigations (HSI), the Bernalillo County Sheriff’s Office and the Bernalillo County District Attorney’s Office. Assistant U.S. Attorney Letitia Carroll Simms is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 http://www.justice.gov/psc/.
Malden Man Sentenced to Serve 7 Years in Federal Prison for Unlawfully Possessing FirearmRead the Press Release
CAPE GIRARDEAU - The United States Attorney's Office announced that KEITH D. FARR, age 25, of Malden, Missouri, was sentenced to serve 84 months (7 years) in federal prison for the offense of Felon in Possession of a Firearm. Farr appeared for his sentencing hearing today before United States District Judge Stephen N. Limbaugh, Jr. at the federal courthouse in Cape Girardeau, Missouri.
According to court documents, Farr was pulled over for a traffic violation in the City of Cape Girardeau last August. He was asked to exit his vehicle after the officer noticed drug paraphernalia items in the center console area. A stolen 9mm semi-automatic pistol and a small bag of methamphetamine were subsequently discovered during a search of the interior. A criminal background check revealed Farr had prior felony convictions for burglary, theft, and unlawfully possessing a firearm. At his guilty plea hearing last December, Farr admitted that the firearm belonged to him. After serving his 84-month sentence, Farr will be placed on supervised release for a period of three years.
This case was investigated by the Cape Girardeau Police Department. Assistant United States Attorney Jack Koester handled the prosecution for the government.
Magnolia Man Sentenced to 6 Years in Federal Prison for Drug TraffickingRead the Press Release
EL DORADO – A Magnolia man was sentenced today to 72 months in prison followed by three years of supervised release on one count of Distribution of Methamphetamine. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the United States District Court in El Dorado.
According to court documents, on or about September 4, 2020, investigators with the 13th Judicial District Drug Task Force and the Federal Bureau of Investigation (FBI) conducted a controlled purchase of methamphetamine from Rasheed Rahid Muhammad, age 50. The methamphetamine field tested positive and was sent to the crime lab for further testing.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The 13th Judicial District Drug Task Force and the FBI investigated the case.
Assistant U.S. Attorney’s Kim Harris prosecuted the case.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Lincoln Man Sentenced to More than 18 Years in Prison for Methamphetamine and Gun ChargesRead the Press Release
United States Attorney Jan Sharp announced that John Allen Belot, 28, of Lincoln, Nebraska, was sentenced today in federal court in Lincoln to a total of 224 months in prison after pleading guilty to gun and drug charges. United States District Judge John M. Gerrard sentenced Belot to: 140 months in prison for possession with the intent to distribute 50 grams or more of actual methamphetamine and 50 grams or more of a mixture or substance containing methamphetamine, 60 months in prison for use of a firearm during and in relation to and possession of a firearm in furtherance of a drug trafficking crime, and 24 months in prison for possession with the intent to distribute a mixture or substance containing methamphetamine while on pretrial release. Those sentences will run consecutively. After serving his sentence, Belot will be placed on supervised release for 5 years. There is no parole in the federal system.
On August 4, 2020, law enforcement contacted Belot and two others in a vehicle in Lincoln. Belot was searched and investigators found a loaded Taurus PT111 Millennium G2 9mm pistol in his front waistband. The vehicle was searched, and officers found suspected methamphetamine, various pills, methamphetamine pipes, and a black digital scale. The suspected methamphetamine was sent to a lab for testing. The lab confirmed that the substance was about 54 grams of methamphetamine, of which at least 52 grams was actual methamphetamine. Belot had also been found in possession of methamphetamine and a firearm on February 17, 2020 and October 12, 2020 in the Lincoln area.
On July 16, 2021, while on pretrial release, law enforcement arrested Belot on a federal warrant in Lincoln. During the apprehension, officers located a loaded black Berretta .22 caliber handgun, 8.8 grams of suspected methamphetamine, a black digital scale, methamphetamine pipes, and ammunition in his backpack. Officers also recovered 1.4 grams of suspected methamphetamine and $510 in currency from Belot’s person.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Lehigh Acres Couple Pleads Guilty to COVID Relief FraudRead the Press Release
Fort Myers, Florida –United States Attorney Roger B. Handberg announces that Amber Rewis Bruey (35, Lehigh Acres) today pleaded guilty to conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and illegal monetary transactions. Her husband and co-conspirator, Anthony James Bruey, previously pleaded guilty to the same charges on February 4, 2022. A sentencing date has not yet been set.
Defendant
Charge
Maximum Penalty per Count
Amber Rewis Bruey
Conspiracy to Commit Wire Fraud
30 years in federal prison
Wire Fraud (10 Counts)
30 years in federal prison
Conspiracy to Commit Money Laundering
10 years in federal prison
Illegal Monetary Transactions (4 Counts)
10 years in federal prison
Anthony James Bruey
Conspiracy to Commit Wire Fraud
30 years in federal prison
Wire Fraud (2 Counts)
30 years in federal prison
Conspiracy to Commit Money Laundering
10 years in federal prison
Illegal Monetary Transactions (2 Counts)
10 years in federal prison
According to court documents, between April 2020 and June 2020, the Brueys conspired to submit a total of 26 fraudulent Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) applications to Small Business Administration (SBA) approved lenders, loan processing companies, and the SBA. The applications contained numerous false and fraudulent representations, including the applicant’s dates of operation, payroll, gross revenues, total number of employees, and the criminal histories of the applicants or business owners.
The Brueys’ false and fraudulent representations caused PPP lenders and the SBA to approve 12 of the loans and disburse a total of $881,058.35 in PPP and EIDL funds. The Brueys then unlawfully used the funds to purchase a $211,457 residence in North Carolina, a 2019 GMC Yukon SUV, a 2020 Honda Talon, and to make a $23,566 restitution payment as a condition of probation in a criminal court case for Amber Bruey.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if the business spends the proceeds on these expenses within a set time period and uses at least a certain percentage of the loan toward payroll expenses.
The EIDL program is designed to provide economic relied to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities, and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used for the same purpose as the PPP funds.
This case was investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorneys Trent Reichling and Suzanne Nebesky.
Leader of Cartel Del Noreste ArrestedRead the Press Release
SAN ANTONIO – Yesterday, Juan Gerardo Trevino-Chavez, aka Huevo, 39, of Laredo was arrested in San Diego, CA, on criminal charges related to his alleged involvement in drug trafficking in Mexico and the United States.
According to the indictment filed in San Antonio, Trevino is the current leader of the Cartel Del Noreste drug cartel (CDN). CDN is the successor cartel to the Los Zetas drug cartel for which he was a leader, drug trafficker, enforcer, weapons procurer, and plaza leader.
The indictment, unsealed yesterday, charges Trevino with 11 counts, including one count of Conspiracy to Possess with Intent to Distribute Marijuana; one count of Conspiracy to Import Marijuana; one count of Unlawful Distribution of Controlled Substances; one count of Conspiracy to Employ a Person Under 18 in Drug Operations; one count of Conspiracy to Possess with Intent to Distribute Cocaine; one count of Conspiracy to Import Cocaine; one count of Conspiracy to Possess with Intent to Distribute Methamphetamine; one count of Conspiracy to Import Methamphetamine; one count of Conspiracy to Possess Firearms in Furtherance of Drug Trafficking; one count of Possession of a Machine Gun in Furtherance of a Drug Trafficking Crime; and one count of Money Laundering.
If convicted, Trevino faces up to life in prison on each of the Conspiracy to Possess Marijuana, Cocaine and Methamphetamine charges; up to life in prison on each of the Conspiracy to Import Cocaine and Methamphetamine charges; up to life in prison on the Unlawful Distribution of Controlled Substance charge as well as the Conspiracy to Employ a Person Under 18 in Drug Operations charge; up to 10 years in prison on the Conspiracy to Import Marijuana charge; and up to 20 years in prison on each of the Firearm charges and the Money Laundering charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ashley C. Hoff of the Western District of Texas; Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden; and Drug Enforcement Administration (DEA) Special Agent in Charge Daniel Comeaux made the announcement.
HSI, DEA, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the U.S. Marshal Service, with invaluable assistance from the FBI and the Justice Department’s Office of International Affairs, are investigating the case.
Special thanks to the Government of Mexico for their help in the capture and deportation of Trevino, especially the Instituto Nacional de Migración; SEDENA; Fiscalia General de la República; Secretaría de Seguridad y Protección Ciudadana; and the Secretaría de Relaciones Exteriores.
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.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Lansing Man Convicted on 5 Counts Relating to the Production and Receipt of Child Pornography Receives 300 Months in Federal PrisonRead the Press Release
DETROIT – A federal judge today sentenced a Lansing, Michigan man to 300 months in federal prison after having been convicted on multiple charges relating to the production and receipt of child pornography, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Acting Special Agent in Charge James Harris, Homeland Security Investigations and R. Alan Booth, Acting Chief Patrol Agent, Detroit Sector Border Patrol.
Sentenced was Michael McShan, 28.
The 5-day trial, which began on October 28, 2021, was conducted before United States District Judge David M. Lawson in Detroit. The jury deliberated approximately an hour before returning the guilty verdicts.
According to evidence presented during the trial, in December 2018, McShan met a minor female (MV-1) on a social media site called “MeetMe,” and then began communicating with MV-1 via Snapchat, cellphone calls and text messages. McShan quickly began an abusive and sexual relationship with MV-1. McShan enticed and persuaded MV-1 to produce images and videos of herself and another minor female victim (MV-2) engaging in sexually explicit conduct. Over the course of a few months, McShan, became increasingly controlling over MV-1. McShan coerced and enticed MV-1 through flattery, threats, and guilt to manipulate MV-1 into continuing to send him sexually explicit photos and videos as well as money.
Evidence further showed that in an attempt to get released on bond pending his trial, McShan directed his then-girlfriend to write a false confession to the child exploitation crimes.
McShan was convicted of production of child pornography; attempted production of child pornography; receipt of child pornography; coercion and enticement of a minor, and obstruction of justice. Upon release, McShan will be on supervised release for the rest of his life.
“Protecting children from dangerous child predators is a top priority for our office,” said US Attorney Ison. “I commend our law enforcement partners for their hard work and dedication to investigating and prosecuting crimes against children.”
“McShan’s horrific acts underscore the importance of talking with your children about the dangers of interacting with people they don’t know online,” said HSI Detroit acting Special Agent in Charge James C. Harris III. “Our agents along with our Border Patrol and DHS partners remain committed to bringing predators like McShan to justice, and providing care and support to the victims of these crimes.”
“I’m immensely proud of the collaborative effort between Border Patrol agents and HSI agents that led to the conviction of this man who committed heinous crimes,” said R. Alan Booth (A) Chief Patrol Agent, Detroit Sector Border Patrol. “Our mission encompasses many factors but protecting the communities we live in is always our priority.”
The case was investigated by HSI and US Border Patrol agents assigned to the DHS Alliance Human Trafficking Task Force. The case was prosecuted by Assistant United States Attorneys Maggie Smith and Sara Woodward.
KC Woman Pleads Guilty to Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, woman pleaded guilty in federal court today to her role in a conspiracy to distribute methamphetamine after she sold more than three kilograms of methamphetamine to an undercover law enforcement officer.
Megan M. Massie, 32, pleaded guilty before U.S. District Judge Stephen R. Bough to participating in a conspiracy to distribute methamphetamine from September 2019 to Jan. 26, 2020.
By pleading guilty today, Massie admitted that she sold methamphetamine to an undercover detective with the Jackson County Drug Task Force on 14 separate occasions, distributing a total of 3,436.5 grams of methamphetamine.
Massie was also found in possession of 41 grams of methamphetamine when she was stopped by Overland Park, Kansas, police officers for a traffic violation. She is currently serving a 56-month prison term after being convicted in Johnson County, Kan., of possession with the intent to deliver methamphetamine.
Under federal statutes, Massie is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Maureen Brackett and Assistant U.S. Attorney Mary Kate Butterfield. It was investigated by the Jackson County Drug Task Force and the Drug Enforcement Administration.
KC Man Pleads Guilty to Child PornographyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man who was caught discussing plans online to sexually abuse a child pleaded guilty in federal court today to distributing child pornography.
Joshua Evan Lilley, 30, pleaded guilty before U.S. District Judge Howard F. Sachs to one count of distributing child pornography and one count of receiving child pornography over the internet.
According to today’s plea agreement, an FBI employee from the Knoxville, Tennessee, division was acting in an undercover capacity on April 30, 2021, targeting individuals on a social media site (not identified) who were actively engaged in sharing, distributing, and/or producing child pornography. The undercover FBI employee was in contact with a site user (not identified) who sent Lilley images and videos of child pornography, which that individual had produced.
Messages between Lilley and the user involved a conversation about a child victim, to whom the user had access, and whom Lilly wanted to sexually abuse. Lilley sent the user images and videos of child sexual abuse; one involved bestiality. That individual was arrested, and consented for an FBI covert employee to assume their online identity.
Lilley sent at least six videos of child sexual abuse to the FBI covert employee. Lilley also sent a link to approximately 184 videos of child sexual abuse that he had collected.
Lilley said he was involved with other groups on the social media site that shared child pornography. He asked to meet the FBI covert employee for dinner and a drink. Lilley said he wanted to meet in person before going any further in their plans. When Lilley arrived for the meeting, the FBI covert employee sent him a message that he wasn’t going to be able to make it, and there was no meeting. A surveillance team followed Lilley as he returned home.
Law enforcement officers executed a search warrant at Lilley’s residence on May 5, 2021, and seized his iPhone, iPad, laptop computer and a thumb drive, each of which contained child pornography. Investigators also seized five glass containers and eight bags that contained marijuana, a loaded Taurus 9mm semi-automatic pistol with additional ammunition, a Savage Arms .22-caliber rifle, and $12,020 in cash.
Under federal statutes, Lilley is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Alison D. Dunning. It was investigated by- the FBI and the Kansas City, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Justice Department, EPA Propose Settlement to Resolve Federal Hazardous Waste and Oil Spill Prevention Violations on the North Slope of AlaskaRead the Press Release
Today, the Department of Justice and the Environmental Protection Agency (EPA) announced a proposed settlement with the North Slope Borough of Alaska to resolve federal hazardous waste and oil spill violations. The settlement requires the Borough to take comprehensive actions and make infrastructure investments to comply with solid and hazardous waste management rules and oil spill prevention rules. The Borough will also hire an independent third-party auditor to ensure that the compliance requirements in the settlement are successfully implemented and pay a civil penalty of $6.5 million.
A multi-year environmental investigation of the Borough uncovered violations of the Resource Conservation and Recovery Act (RCRA), which regulates solid and hazardous waste, and the Clean Water Act (CWA) at numerous facilities owned and operated by the Borough in Utqiagvik, Anaktuvuk Pass, Atqasuk, Kaktovik, Nuiqsut, Point Hope, Point Lay, Wainwright, Deadhorse and Prudhoe Bay. Many of the violations resulted from the Borough’s failure to properly manage and store thousands of drums of oil and hazardous waste in these communities, some of which led to oil spills.
“Today’s settlement will ensure that the Borough completely upgrades its waste and oil management practices to protect its residents and future generations from exposure to hazardous waste and to prevent spills to the surrounding environment,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The work to be performed under this settlement will protect the vital tundra wetlands and waterways that surround many of the Borough’s communities.”
“When improperly managed, hazardous wastes and oil can damage the environment and pose a health risk to those who come into contact,” said Acting Assistant Administrator Larry Starfield of the EPA’s Office of Enforcement and Compliance Assurance. “This settlement will help protect the health of the communities and the sensitive ecosystems in the North Slope Borough.”
The alleged RCRA violations include the Borough’s unpermitted storage of hazardous waste; failure to identify and characterize hazardous waste; unauthorized transport of hazardous waste; shipment of hazardous waste without proper manifesting and land disposal restriction notices; non-compliant management of universal wastes; and failure to properly label used oil containers. Numerous drums of solid and hazardous waste were improperly stored outdoors, accessible to Borough residents and exposed to the environment. Some drums contained corrosive, ignitable, or toxic waste and were not properly labeled as hazardous.
In addition, the Borough failed to safely store and manage oil in accordance with the CWA’s Oil Pollution Prevention regulations, intended to prevent oil spills, at 70 of its facilities. The violations contributed to at least two oil spills into wetlands near the Kasegaluk Lagoon, Kaktovik Lagoon and Pipsuk Bight. Oil spills in this sensitive arctic tundra habitat can harm fish and other wildlife, as well as downstream waters which are important to Native Alaskans, including for subsistence hunting, fishing and gathering.
To resolve the alleged violations and come into compliance with federal requirements, the Borough has agreed to close all unpermitted hazardous waste storage facilities; develop a comprehensive waste management plan to minimize generation of and ensure proper tracking and management of solid and hazardous waste; build or retrofit a permitted hazardous waste storage facility; revise its CWA Spill Prevention, Control and Countermeasure Plan; install adequate secondary containment around oil storage containers; and develop an integrity testing program for oil storage containers that complies with applicable industry standards. The Borough has also agreed to identify a full-time environmental official and will hire an independent third-party auditor to ensure that the compliance requirements in the consent decree are successfully implemented.
The Borough’s compliance actions represent a significant investment in its waste management and pollution prevention programs to help protect the residents of the North Slope and their environment from exposure to oil spills and hazardous waste. The Borough began making improvements to its hazardous waste management and oil storage programs during negotiations for the proposed settlement.
The North Slope Borough is the northernmost municipality in the United States and the largest of Alaska’s 19 organized boroughs. It includes nearly 95,000 square miles and is bordered to the west by the Chukchi Sea and to the east by the Beaufort Sea. Most of its residents live in eight communities throughout the Borough: Anaktuvuk Pass, Atqasuk, Utqiagvik, Kaktovik, Nuiqsut, Point Hope, Point Lay and Wainwright, in addition to two industrial complexes at Deadhorse and Prudhoe Bay. EPA has taken two previous administrative enforcement actions against the Borough in 1998 and 2015 for RCRA hazardous waste management, storage and treatment violations.
Justice Department Settles E-Verify Discrimination Claims Against Washington State-Based Home Care ProviderRead the Press Release
The Department of Justice announced today that it reached a settlement with Bianchi Home Care Inc. (Bianchi), a home care provider based in Washington state. The settlement resolves the department’s claims that Bianchi violated the Immigration and Nationality Act (INA) when it discriminated against non-U.S. citizens through its use of E-Verify. Run by the Department of Homeland Security, E-Verify is an electronic program that enables enrolled employers to confirm that their employees have permission to work in the United States.
“Employers cannot use E-Verify to discriminate against employees because of their citizenship or immigration status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to protecting workers from unlawful citizenship discrimination and removing discriminatory barriers from all stages of the hiring process.”
The department opened its investigation to determine whether Bianchi discriminated against non-U.S. citizens when using E-Verify. Based on its investigation, the department determined that Bianchi only used E-Verify to confirm the permission to work of its non-U.S. citizen employees and did not use the program for its U.S. citizen employees. Even though E-Verify found that all of Bianchi’s non-U.S. citizen employees had permission to work, by only subjecting them to E-Verify, Bianchi imposed an additional burden on them in the hiring process because of their citizenship or immigration status. Under the INA and the E-Verify program rules, employers cannot discriminate in their use of E-Verify based on citizenship or immigration status.
The settlement prohibits Bianchi from selectively using E-Verify to discriminate against employees based on their citizenship or immigration status. Additionally, Bianchi must train its employees on the requirements of the INA’s anti-discrimination provision, change its policies and procedures and be subject to monitoring for a three-year period.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits citizenship or immigration status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Job applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, can file a charge. The public also can contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER. View the Spanish translation of the press release here.
Justice Department Settles E-Verify Discrimination Claims Against Washington State-Based Home Care ProviderRead the Press Release
WASHINGTON – The Department of Justice announced today that it reached a settlement with Bianchi Home Care Inc. (Bianchi), a home care provider based in Washington state. The settlement resolves the department’s claims that Bianchi violated the Immigration and Nationality Act (INA) when it discriminated against non-U.S. citizens through its use of E-Verify. Run by the Department of Homeland Security, E-Verify is an electronic program that enables enrolled employers to confirm that their employees have permission to work in the United States.
“Employers cannot use E-Verify to discriminate against employees because of their citizenship or immigration status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to protecting workers from unlawful citizenship discrimination and removing discriminatory barriers from all stages of the hiring process.”
The department opened its investigation to determine whether Bianchi discriminated against non-U.S. citizens when using E-Verify. Based on its investigation, the department determined that Bianchi only used E-Verify to confirm the permission to work of its non-U.S. citizen employees and did not use the program for its U.S. citizen employees. Even though E-Verify found that all of Bianchi’s non-U.S. citizen employees had permission to work, by only subjecting them to E-Verify, Bianchi imposed an additional burden on them in the hiring process because of their citizenship or immigration status. Under the INA and the E-Verify program rules, employers cannot discriminate in their use of E-Verify based on citizenship or immigration status.
The settlement prohibits Bianchi from selectively using E-Verify to discriminate against employees based on their citizenship or immigration status. Additionally, Bianchi must train its employees on the requirements of the INA’s anti-discrimination provision, change its policies and procedures and be subject to monitoring for a three-year period.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits citizenship or immigration status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Job applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, can file a charge. The public also can contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Justice Department Applauds Reauthorization of the Violence Against Women ActRead the Press Release
Attorney General Merrick B. Garland, Deputy Attorney General Lisa O. Monaco, and Associate Attorney General Vanita Gupta today applauded the reauthorization of the Violence Against Women Act (VAWA). VAWA was reauthorized as part of the Consolidated Appropriations Act, 2022, which President Joe Biden signed into law this week.
“Domestic violence, dating violence, sexual assault, and stalking are serious violations of criminal law that demand our sustained attention and action,” said Attorney General Garland. “The Department of Justice welcomes the reauthorization of the Violence Against Women Act and will continue to use the resources at our disposal to prevent and respond to gender-based violence and provide critical services for survivors.”
“One of the many achievements of this bipartisan reauthorization of VAWA is recognizing expanded jurisdiction for American Indian and Alaska Native tribes to protect their communities from domestic and sexual violence, which I highlighted as a priority in my testimony before the Senate Judiciary Committee last October,” said Deputy Attorney General Monaco. “It is fitting that this important legislation was passed during Women’s History Month, as it will help combat the epidemic levels of gender-based violence that stand in the way of equality in our society. We have made substantial progress since I worked on the original VAWA in Congress in the 1990s, but VAWA’s programs, protections, and new initiatives remain critical to address unmet needs in our communities.”
“VAWA’s reauthorization helps ensure all survivors can live safe and healthy lives, free from domestic violence, dating violence, sexual violence, and stalking,” said Associate Attorney General Gupta. “Preventing and ending violence creates a more equal and equitable world for women and girls, and people of all genders who experience harm. I look forward to working with the Office on Violence Against Women to implement and administer new programs and services that support underserved communities.”
In addition to recognizing expanded jurisdiction for American Indian and Alaska Native tribes, the VAWA reauthorization addresses numerous Department of Justice priorities, including:
- Reauthorizing until 2027 VAWA’s vitally important grant programs, which will allow communities to provide critical services to survivors, as well as the right tools and training to make sure that responses to these crimes are survivor-centered and trauma-informed.
- Increasing services and support for underserved populations, including culturally specific communities, LGBTQ survivors, individuals with disabilities, immigrant survivors, older adults, and victims in rural communities, among others.
- Closing gaps in federal sex crimes statutes and promoting accountability for law enforcement officers, by strengthening the ability to prosecute federal officers who sexually assault or abuse those in their custody, and by appropriately penalizing defendants who commit civil rights offenses involving sexual misconduct, which includes those who commit sexual assault while acting under color of law and those who commit sexual assault as part of a hate crime.
- Enhancing efforts to reduce homicides through enforcement of federal and state firearms laws, including by enacting the National Instant Criminal Background Check System (NICS) Denial Notification Act to help state law enforcement investigate and prosecute unlawful firearms purchasers and amending the Gun Control Act to make clear that the firearm prohibitions apply to domestic violence offenders convicted under municipal ordinances.
- Improving access to justice for survivors by expanding grant funding for legal services and authorizing post-conviction legal assistance to survivors in matters arising out of their domestic violence, dating violence, sexual assault, stalking, or sex trafficking victimization.
Justice Department Announces Civil Settlement in Cases Arising from 2018 School Shooting in Parkland, FloridaRead the Press Release
Today, the Department of Justice announced that it has settled the 40 civil cases arising out of the February 2018 mass shooting at Marjory Stoneman Douglas High School in Parkland, Florida.
This settlement resolves all of the cases for $127.5 million. The settlement does not amount to an admission of fault by the United States. The parties have been in litigation since late 2018, when the survivors of the shooting, and the families of 16 people killed, sued the government for damages.
On Feb. 14, 2018, a former student walked into Marjory Stoneman Douglas High School armed with a rifle and ammunition concealed in a rifle bag, and opened fire with his semi-automatic weapon, killing 17 and injuring 17 more. In October 2021, the shooter pleaded guilty to 17 counts of premeditated first-degree murder and 17 counts of attempted first-degree murder. This was the deadliest high school shooting in U.S. history.
This case was handled by the Justice Department’s Civil Division and the U.S. Attorney’s Office for the Southern District of Florida.
Indianapolis Man Sentenced to 18 Months in Federal Prison for Illegally Trafficking 167 Firearms, Including Guns Tied to Crimes in ChicagoRead the Press Release
INDIANAPOLIS – Stephen King, 66, of Indianapolis, was sentenced to 18 months in federal prison yesterday, after pleading guilty to dealing firearms without a federal firearms license.
According to court documents, in August 2020, law enforcement officers in Chicago recovered firearms connected to crimes committed in Chicago. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agents in Chicago and Indianapolis discovered that the guns had been purchased by King in Indianapolis four days prior to being recovered by law enforcement officers in Chicago.
King’s email account revealed he had purchased and then unlawfully re-sold approximately 167 firearms between April 12, 2020, and September 2, 2020. King purchased 38 firearms from various Federal Firearm Licensees. King purchased the remaining 129 firearms online from private sellers using online platforms such as Armslist.com and Facebook. King illegally resold approximately 100 of these guns within three days of purchasing them. As of the date of his sentencing, 24 firearms bought and resold by King have been recovered by investigators in connection to crimes including drug trafficking, unlawful possession of a firearm, and firearms trafficking.
Evidence uncovered during the investigation showed that King obtained over $9,900 in profits from his illegal firearms sales. King is prohibited from engaging in the business of selling firearms and ammunition because he is not licensed to do so.
“Illegal trafficking of deadly weapons drives the violence plaguing our communities. Those who choose to knowingly and unlawfully introduce firearms into the underground gun economy will be held accountable,” said U.S. Attorney Zachary A. Myers. “Combatting illegal gun trafficking is a top priority of the Department of Justice as we work to reduce violent crime throughout the country. Together with our federal, state, and local partners, my office is committed to stemming the tide of illegal guns pouring onto our streets and those of our neighbors.”
“The individuals who funnel firearms to prohibited persons directly contribute to violence in our community,” stated Timothy Canon, Acting Special Agent in Charge of ATF’s Columbus Field Division. “ATF will continue to work with our partners to stop the flow of firearms from legal to illegal commerce.”
The ATF investigated the case. The sentence was imposed by U.S. District Judge Jane Magnus-Stinson. As part of the sentence, Judge Magnus-Stinson ordered that King be supervised by the U.S. Probation Office for 2 years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorneys Kelsey Massa who prosecuted this case.
This case was part of the U.S. Department of Justice’s Chicago Gun Trafficking Strike Force. On July 22, 2021, the Department of Justice launched five cross-jurisdictional strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country. These gun trafficking strike forces are designed to ensure coordination across jurisdictions and help stem the supply of illegally trafficked firearms from source cities, through other communities, and into five key market regions: New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region and Washington, D.C.
Additionally, this case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
Home Health Care Business Owner Pleads Guilty to Employment Tax FraudRead the Press Release
A former Kansas businessman man pleaded guilty today to employment tax crimes.
According to court documents, starting in approximately 2010, Lance Ashley was the sole owner and operator of Ashley Home Care Services (AHCS), an Overland Park home health care business that provided daily living services to individuals. Ashley was responsible for all financial matters relating to AHCS, including handling the company’s payroll and collecting and paying over employment taxes to the IRS. From 2013 through 2016, however, AHCS did not pay all the employee withholdings it collected to the IRS. Rather, Ashley used some of the funds to pay corporate expenses and a number of his personal expenses. After the IRS began collecting AHCS’s unpaid taxes in 2016, Ashley provided fraudulent bank records to the IRS and did not fully disclose his bank accounts. In all, Ashley’s conduct caused a tax loss to the IRS of approximately $321,476.
Ashley is scheduled to be sentenced on June 6 and 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 Duston J. Slinkard for the District of Kansas made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorney Julia Rugg of the Tax Division and Assistant U.S. Attorney Ryan Huschka of the U.S. Attorney’s Office for the District of Kansas are prosecuting the case.
Hephzibah, Ga., man sentenced to prison for possession of child pornographyRead the Press Release
AUGUSTA, GA: A Richmond County man was sentenced to federal prison after admitting he possessed hundreds of images of child sexual exploitation.
Justin Bryan, 34, of Hephzibah, Ga., was sentenced to 80 months in prison after pleading guilty to Possession of Child Pornography, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Dudley H. Bowen also ordered Bryan to pay $18,000 in restitution to victims, and to serve 15 years of supervised release and register as a sex offender after completion of his prison term. There is no parole in the federal system.
“Each time an image of sexual exploitation is shared on the internet, a vulnerable child is revictimized,” said U.S. Attorney Estes. “We applaud the work of our law enforcement partners and the National Center for Missing and Exploited Children in identifying predators like Justin Bryan, and our office will continue to ensure they are held accountable for their crimes.”
In December 2020, the National Center for Missing and Exploited Children (NCMEC) received a cybertip identifying online images of child pornography. NCMEC alerted the FBI, and agents later located and arrested Bryan and seized multiple electronic devices that were found to contain hundreds of videos and images depicting sexual exploitation of children.
“This sentence demonstrates the determination of the FBI and U.S. Attorney’s Office to find those who prey on children in our communities and bring them to justice,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “Our message to these predators is you cannot hide behind the ‘anonymity’ of the internet.”
The case was investigated by the FBI, and prosecuted for the United States by Assistant U.S. Attorneys Jeremiah L. Johnson and Project Safe Childhood Coordinator Tara M. Lyons.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
Harrison County man admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Anthony R. Riley, II, of Shinnston, West Virginia, has admitted a firearms charge, United States Attorney William Ihlenfeld announced.
Riley, 25, pleaded guilty today to one count of “Unlawful Possession of a Firearm.” Riley, a person prohibited from having firearms because of a prior conviction, admitted to having a 9mm pistol in February 2021 in Harrison County.
Riley 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 Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Shinnston Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Garner Man Sentenced for $1.7 Million COVID-19 FraudRead the Press Release
RALEIGH – A North Carolina man was sentenced today to 20 months in prison for fraudulently obtaining over $1.7 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Tristan Bishop Pan, 40, of Garner, submitted numerous fraudulent PPP loan applications to federally insured banks, including on behalf of entities named Pan Insurance Agency, White Walker, Khaleesi, and The Night’s Watch. In support of the fraudulent PPP loan applications, Pan made false statements about the companies’ employees and payroll expenses. The PPP loan applications were supported by fake documents, including falsified tax filings. According to court documents, Pan submitted at least 14 PPP loan applications seeking over $6.1 million and received more than $1.7 million in benefits. Pan pleaded guilty to wire fraud in August 2021.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Michael F. Easley Jr. for the Eastern District of North Carolina; Special Agent in Charge Mark Morini of the U.S. Treasury Inspector General for Tax Administration (TIGTA) – Southeast Field Division; Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) – Atlanta Region; and Special Agent in Charge Robert R. Wells of the FBI’s Charlotte Field Office made the announcement.
The TIGTA, FDIC-OIG, and the FBI, with the assistance of the SBA Office of Inspector General, investigated the case.
Assistant Chief Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Ethan A. Ontjes and John Harris for the Eastern District of North Carolina prosecuted the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Georgia Man Charged with Possession of Firearms with Obliterated Serial Numbers That Were Mailed to St. ThomasRead the Press Release
ST. THOMAS, USVI – U.S. Attorney Gretchen C.F. Shappert announced that Tyrone Ortiz, 37, of Rex, GA, appeared before Magistrate Judge Ruth Miller yesterday for an advice of rights hearing following his arrest for possession of three firearms with obliterated serial numbers.
According to Court records, on March 10, 2022, Customs and Border Protection (“CBP”) officers in San Juan, PR seized a package that contained three (3) handguns with obliterated serial numbers. The handguns were concealed inside large surge protectors, and the package was addressed to a post office box on St. Thomas, from a sender located in Locust Grove, Georgia.
Postal records revealed that both the names and addresses on the package were not associated with the actual addresses, and that the addresses were invalid. Court records further revealed that the telephone number listed on the shipping label of the package was the phone number for the defendant Ortiz.
On March 11, 2022, HSI in San Juan, PR, transferred the USPS package to St. Thomas, and on March 15, 2022, agents removed the firearms and placed sham firearms in the package. Ortiz later collected the package from the post office, and agents tracked the package to Ortiz’s family home in the Estate Tutu area. The defendant was taken into custody and, according to court records, admitted that he was responsible for both shipping and receiving the USPS package. Ortiz also allegedly admitted that he was aware that the USPS package contained firearms.
United States Attorney Shappert reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
This case was investigated by Homeland Security Investigations, St. Thomas Resident Office and the United States Postal Inspection Services and prosecuted by Assistant United States Attorney Everard Potter.
Fresno Man Charged in Schemes to Defraud and Identity TheftRead the Press Release
FRESNO, Calif. — Brian Kenneth Stoffel, 38, of Fresno, was arraigned this week on a seven-count indictment charging him with bank fraud, use of an unauthorized access device, aggravated identity theft, and wire fraud, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Stoffel obtained the name, social security account number, date of birth, and other means of identification of a specific victim. Stoffel used that personally identifiable information to open a checking account at the victim’s bank and drain the victim’s savings account using an unauthorized debit card, to apply for various lines of credit in the victim’s name, and to apply to the Department of Homeland Security Federal Emergency Management Agency (FEMA) for a disaster loan. It is alleged that Stoffel caused at least $420,000 in actual and attempted loss in less than a one-year period of time.
This case is the product of an investigation by the Fresno County Sheriff’s Office, Elder Abuse Unit and the Federal Bureau of Investigation. Assistant U.S. Attorneys Laura D. Withers and Joseph Barton are prosecuting the case.
If convicted, Stoffel faces a maximum statutory penalty of 30 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Founder of Cyberfraud Prevention Company Pleads Guilty to Defrauding Investors of over $100 MillionRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ADAM ROGAS, the co-founder and former CEO, CFO, and member of the board of directors of Las Vegas-based cyberfraud prevention company NS8, Inc. (“NS8”), pled guilty today in Manhattan federal court to securities fraud. ROGAS used fraudulent financial data to obtain over $123 million in financing for NS8, of which he personally obtained approximately $17.5 million. ROGAS pled guilty today before U.S. District Judge John P. Cronan, and is scheduled to be sentenced by Judge Cronan on August 10, 2022.
U.S. Attorney Damian Williams said: “Today, Adam Rogas admitted to being the proverbial fox guarding the henhouse. While claiming to be in the fraud prevention business, Rogas himself defrauded investors in his company of over $100 million. Now Rogas will be held accountable for his fraudulent scheme.”
According to the Complaint, Indictment, and other publicly-filed documents:
ADAM ROGAS was a co-founder of NS8, and served as its CEO, CFO, and a member of its board of directors. ROGAS was also primarily responsible for the company’s fundraising activities. NS8, which was based in Las Vegas, Nevada, was a cyberfraud prevention company that developed and sold electronic tools to help online vendors assess the fraud risks of customer transactions. In the fall of 2019 and the spring of 2020, NS8 engaged in fundraising rounds through which it issued Series A Preferred Shares and obtained approximately $123 million in investor funds.
ROGAS maintained control over a bank account into which NS8 received revenue from its customers, and periodically provided monthly statements from that account to NS8’s finance department so that NS8’s financial statements could be created. ROGAS also maintained control over spreadsheets that purportedly tracked customer revenue, which were also used to generate NS8’s financial statements.
ROGAS altered the bank statements before providing them to NS8’s finance department to show tens of millions of dollars in both customer revenue and bank balances that did not exist. In the period from January 2019 through February 2020, between at least approximately 40% and 95% of the purported total assets on NS8’s balance sheet were fictitious. In that same period, the bank statements that ROGAS altered reflected over $40 million in fictitious revenue.
Altered (L) and original (R) bank statements for NS8’s revenue account. Rogas altered statements for the account to show tens of millions of dollars in revenue (deposits) that did not exist.ROGAS used these materially misleading financial statements to raise approximately $123 million from investors in the fall of 2019 and the spring of 2020. During the fundraising process, ROGAS also provided the falsified bank records he had created to auditors who were conducting due diligence on behalf of potential investors. After these fundraising rounds concluded, NS8 conducted a tender offer with the funds raised from investors, and ROGAS received $17.5 million in proceeds from that tender offer, personally and through a company he controlled.
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ROGAS, 44, of Las Vegas, Nevada, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI in this investigation. Mr. Williams further thanked the Securities and Exchange Commission for its cooperation and assistance in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Richard Cooper and Jared Lenow are in charge of the prosecution.
Fort Kipp woman charged in the death of man hit by a vehicle on Fort Peck Indian ReservationRead the Press Release
GREAT FALLS — A Fort Kipp woman suspected in the death of a man hit by a vehicle on the Fort Peck Indian Reservation was arraigned on March 15 on an indictment, U.S. Attorney Leif M. Johnson said.
Jo Anne Sayetsitty, 34, pleaded not guilty to one count of voluntary manslaughter. If convicted of the most serious crime, Sayetsitty faces a maximum of 15 years in prison, a $$250,000 fine and three years of supervised release.
U.S. Magistrate Judge John T. Johnston presided. Sayetsitty was released pending further proceedings.
The indictment alleges that on Aug. 22, 2019 near Fort Kipp, on the Fort Peck Indian Reservation, Sayetsitty, upon a sudden quarrel or heat of passion, with extreme disregard for human life, recklessly and unlawfully killed the victim, identified as John Doe, by striking him and running over him with her vehicle.
The indictment is merely an accusation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Assistant U.S. Attorneys Jared C. Cobell and Wendy A. Johnson are prosecuting the case, which was investigated by the FBI and Fort Peck Tribal Law Enforcement.
PACER case reference. 22-10.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Former Syracuse Social Security Administration Employee Sentenced for Aggravated Identity Theft and Theft of FundsRead the Press Release
SYRACUSE, NEW YORK - Sean Okrzesik, age 34, of Syracuse, was sentenced today to serve 25-months in federal prison on charges of aggravated identity theft and theft of Supplemental Security Income (SSI) benefits. The charges stemmed from Okrzesik’s use of the names and Social Security numbers of SSI beneficiaries or their representative payees in order to steal SSI benefit payments. Okrzesik’s conduct occurred while he was employed in the Syracuse District Office of the Social Security Administration (SSA). SSI is a federal income supplement program funded by general tax revenue. The program is designed to help the elderly and people with disabilities, with little or no income, cover the costs of basic needs.
The announcement was made by United States Attorney Carla B. Freedman and Sharon B. MacDermott, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, New York Field Office.
As part of his previously entered guilty plea, Okrzesik admitted that from February of 2020 through February of 2021, he opened bank accounts using the names and Social Security numbers of various SSI beneficiaries or their representative payees. Okrzesik also admitted that once these accounts had been created, he would divert SSI benefit payments intended for these beneficiaries into the accounts, which he then used to pay personal expenses including the purchase of video gaming equipment, a custom suit, jewelry, airline tickets to the Caribbean, and online gambling. The total amount of SSI benefits stolen by Okrzesik was $103,798.77.
“Sean Okrzesik stole from Supplemental Security Income funds while working for the Social Security Administration,” said United States Attorney Carla B. Freedman. “Hard working Americans contributed to those funds to support their fellow citizens who need help. The sentence imposed today represents a measure of justice for that breach of faith and serves as notice to those who might consider similar thefts that they will be held fully accountable for their crimes.”
“Mr. Okrzesik used his position of public trust at the Social Security Administration (SSA) to steal Supplemental Security Income funds, a safety net for those in need. We will continue to work with SSA to identify suspected employee fraud,” said Gail S. Ennis, Inspector General for the SSA. “I want to thank SSA, the U.S. Attorney’s Office, and Special Assistant U.S. Attorney Adrian S. LaRochelle for their ongoing commitment in their fight to help ensure public trust in SSA’s vital programs.”
United States District Judge David N. Hurd also imposed a 3-year term of supervised release, which will start after Okrzesik is released from prison, and ordered Okrzesik to pay $103,798.77 in restitution to SSA.
This case was investigated by the SSA Office of the Inspector General and was prosecuted by Special Assistant U.S. Attorney Adrian S. LaRochelle.
Former Pain Clinic Doctor Sentenced to Two Years in Federal Prison for Money StructuringRead the Press Release
Tampa, FL – U.S. District Judge Mary S. Scriven today sentenced Dr. Zachary Bird (51, Tampa) to 24 months in federal prison, followed by 1 year of supervised release, for structuring cash transactions to evade bank reporting requirements. As part of his sentence, the Court also entered a money judgment in the amount of $481,526.76, which represents the total amount of cash illegally structured in the case. A federal jury found Bird guilty of the offense on May 21, 2021. He was acquitted on other counts.
According to court documents, Bird operated Physicians Wellness and Pain Specialists, a pain management clinic, from May 2014 until it shuttered in June 2018. Bird used the proceeds he earned as a doctor to structure cash deposits for the purchase of a piece of real property in LaBelle, Florida. From February 6 through February 12, 2015, Bird structured 22 cash deposits, each under $10,000 and often occurring on the same day and minutes apart, totaling $193,175.76. Between March 10 and October 26, 2015, Bird structured another 38 cash deposits amounting to $288,351. In total, Bird structured $481,526.76 in cash deposits.
This case was investigated by the Drug Enforcement Administration—Tampa District Office. It was prosecuted by Assistant United States Attorneys Greg Pizzo and Kelley Howard-Allen.
Former New York Man Sentenced to 10 Years for Coercion and Enticement of a MinorRead the Press Release
United States Attorney Jan Sharp announced that Shaquille A. Thornhill, 28, formerly of Brooklyn, New York, was sentenced today for attempted coercion and enticement of a minor to engage in sexual activity. United States District Judge Brian C. Buescher sentenced Thornhill to 10 years in prison. There is no parole in the federal system. After his release from prison, Thornhill will begin a five-year term of supervised release.
On April 15, 2021, Thornhill responded to an online advertisement on skipthegames.com offering sex in exchange for money. The ad was posted by law enforcement officers. Between April 15, 2021, and May 11, 2021, Thornhill engaged in text messaging conversations and phone calls with undercover law enforcement. Thornhill was seeking to pay for sex. The undercover agent interacting with Thornhill stated she was 15 years old, and Thornhill recognized that the female (who was an undercover agent) was purportedly 15 years old.
On May 11, 2021, Thornhill agreed with the undercover agent (who he believed to be a 15-year-old female) to meet at a hotel in Omaha, Nebraska, to have sex. Thornhill arrived at the designated hotel room to meet with who he believed to be the 15-year-old female. When officers answered the door of the hotel room, Thornhill ran away. After a foot pursuit, Thornhill was detained. Thornhill had on his possession the $200.00 cash he brought to pay for sex, the phone he used to communicate with the female he believed to be 15 years old, a 3-pack of condoms, and an orange Gatorade that he had agreed to provide to the female. Thornhill admitted to officers that he had agreed to pay $200 for sex with the female he believed to be 15 years old.
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 United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Omaha FBI's Child Exploitation and Human Trafficking Task Force.
Former Louisville, Kentucky, Metro Police Officer Indicted for Using Excessive ForceRead the Press Release
A federal grand jury in Louisville, Kentucky, returned an indictment today charging an Indiana woman with violating an individual’s rights while acting as an officer of the Louisville Metro Police Department.
According to court documents, Katie R. Crews, 29, of Jeffersonville, Indiana, has been charged with using a pepperball gun to fire a pepperball at an individual, while the individual was standing on private property and not posing a threat to the defendant or others. The incident took place on June 1, 2020.
Crews is charged with using unreasonable force. If convicted, she faces a maximum of 10 years in prison. A federal district court judge would determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division, U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Jodi Cohen of the FBI’s Louisville Field Office made the announcement.
The FBI and the Louisville Metro Police Department’s Public Integrity Unit jointly investigated the case through the Louisville Public Corruption Civil Rights Task Force.
Civil Rights Trial Attorney Anita Channapati and Assistant U.S. Attorney Amanda E. Gregory of the Western District of Kentucky 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.
Former Louisville, Kentucky Metro Police Officer Indicted for Using Excessive ForceRead the Press Release
WASHINGTON – A federal grand jury in Louisville, Kentucky, returned an indictment today charging an Indiana woman with violating an individual’s rights while acting as an officer of the Louisville Metro Police Department.
According to court documents, Katie R. Crews, 29, of Jeffersonville, Indiana, has been charged with using a pepperball gun to fire a pepperball at an individual, while the individual was standing on private property and not posing a threat to the defendant or others. The incident took place on June 1, 2020.
Crews is charged with using unreasonable force. If convicted, she faces a maximum of ten years in prison. A federal district court judge would determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division, U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Jodi Cohen of the FBI’s Louisville Field Office made the announcement.
The FBI and the Louisville Metro Police Department’s Public Integrity Unit jointly investigated the case through the Louisville Public Corruption Civil Rights Task Force.
Assistant U.S. Attorney Amanda E. Gregory and Civil Rights Trial Attorney Anita Channapati 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.
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Former Government Official in the Dominican Republic Sentenced to 15 Years for Conspiring to Import Cocaine into the United StatesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York announced that the Dominican Republic’s former Consul General to Jamaica, JEREMIAS JIMENEZ CRUZ, was sentenced today to 179 months in prison for using his position and contacts in the government of the Dominican Republic to import cocaine into the United States. JIMENEZ CRUZ was sentenced by U.S. District Judge Kimba M. Wood. JIMENEZ CRUZ previously pled guilty to conspiring to import more than five kilograms of cocaine into the United States.
U.S. Attorney Damian Williams said: “Jeremias Jimenez Cruz abused his position as a government official to traffic vast amounts of cocaine into the United States. Today Jimenez Cruz was rightly sentenced to 15 years in prison for his crime.”
According to the allegations in the Indictment, prior filings in this case, and statements made in Court:
JIMENEZ CRUZ was a high-ranking government official in the Dominican Republic whose positions have included Vice Consul of the Dominican Republic to Germany, Consul General of the Dominican Republic to Jamaica, and president of the National Christian Movement. He has also held himself out to be the half-brother of a former two-term president of the Dominican Republic. JIMENEZ CRUZ used his position, connections, and planes to traffic large quantities of cocaine, including for importation to the United States, and to launder drug proceeds. During the course of the investigation, JIMENEZ CRUZ was caught on tape admitting that with his government connections, he had the capacity to move up to 600 kilograms of cocaine by airplane and up to one ton of cocaine by boat. JIMENEZ CRUZ admitted that he was a leader of this conspiracy that involved the importation of over 50 kilograms of cocaine, and that he abused his position of public trust to commit the offense.
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In addition to the sentence, JIMENEZ CRUZ, age 52, was sentenced to five years of supervised release.
Mr. Williams praised the outstanding investigative work of the DEA. The arrest was the result of an investigation by the New York Strike Force, a crime-fighting unit comprising federal, state, and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force (OCDETF) and the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA).
The Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA, the New York City Police Department, the New York State Police, New York City Sheriff’s Office, Immigration and Customs Enforcement – Homeland Security Investigations, the U. S. Internal Revenue Service Criminal Investigation Division, the Bureau of Alcohol, Tobacco, Firearms, and Explosives , U.S. Customs and Border Protection, U.S. Secret Service, the U.S. Marshals Service, New York National Guard, the Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department, and New York State Department of Corrections and Community Supervision.
The prosecution is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Adam S. Hobson and Mollie Bracewell are in charge of the prosecution.
Former General Counsel and Chief Business Officer for Financial Technology Company Sentenced to More Than Three Years in Prison for Embezzlement SchemeRead the Press Release
SAN FRANCISCO—Brooke Campbell Solis was sentenced to 37 months in prison and ordered to pay $500,000 in restitution for wire fraud charges levied in connection with a scheme to embezzle funds from her former employer, announced United States Attorney Stephanie M. Hinds and FBI Special Agent in Charge Craig D. Fair. The sentence was handed down by the Honorable James Donato, U.S. District Judge.
Solis, 51, of Austin, Texas, pleaded guilty to the charges on August 23, 2021. According to the plea agreement, in January of 2018, Solis was an attorney licensed to practice law in the State of California when she was hired by a San Francisco-based financial technology company as its general counsel. For most of her employment, she was permitted to work remotely from her home in Austin, Texas. In her capacity as general counsel, she managed the legal, financial, and accounting practices for the company and in March, 2019, she was promoted to the position of Chief Business Officer at the company. In connection with her job responsibilities, Solis was given “Super Administrative” privileges within the accounting and expense management programs used by her employer. According to the plea agreement, Solis acknowledged that she used these privileges to defraud her former employer and embezzle money from the company.
One method Solis used to defraud her former employer was by preparing and using fraudulent invoices. Specifically, she requested payment from the employer to a shell company, The Paralegal Group LLC, that she created and controlled. On June 2, 2019, Solis entered into a consulting agreement between The Paralegal Group and her employer. Solis used the initials “R.D.,” to sign the agreement. On the same day that Solis signed the consulting agreement—both on behalf of herself as The Paralegal Group and for her employer—Solis also submitted an invoice for $9,222.50 from The Paralegal Group. The invoice was dated May 31, 2019, before the consulting agreement even came into existence.
Another method Solis used to defraud her former employer was to seek reimbursement for fraudulent expenses. For example, on July 24, 2019, two days after ending her employment with her former employer, Solis submitted a personal expense of $4,575, for 61 days of “Jackson and Oliver boarding” at a dog boarding company. In the plea agreement, Solis admitted that the boarding of the dogs was a personal expense. Nevertheless, at the time she submitted the fraudulent expense, she had access to her previous employers account and still exercised super-administrative privileges which had not yet been taken away from her. In sum, Solis caused payment of the $4,575 to be paid by her former employer and the funds to be electronically deposited into her personal account.
Solis also continued to defraud the company after she left. She was charged with, and pled guilty to, four wire fraud transactions, in which she diverted at least $400,000 of the company’s money to her own personal checking account nearly two months after her employment ended. In total, Solis stole more than $500, 000 from the victim company.
On July 29, 2021, the Office of the United States Attorney for the Northern District of California filed an information charging Solis with six counts of wire fraud, in violation of 18 U.S.C. § 1343. Solis pleaded guilty to all six counts.
Solis agreed to surrender her license to practice law as part of her plea agreement. Judge Donato ordered the defendant to self-surrender and begin serving her prison term on March 21, 2022. In addition, Judge Donato ordered Solis to serve a three-year term of supervised release to begin after the prison term has expired.
Assistant U.S. Attorney Robin Harris is prosecuting the case. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Former Caddo Parish Commissioner and Sister Sentenced to Time in Federal PrisonRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that Lynn D. Cawthorne, 55, a former Caddo Parish Commissioner, and his sister and co-defendant, Belena C. Turner, 50, both of Shreveport, Louisiana, were sentenced today by United States District Judge Elizabeth E. Foote for committing wire fraud.
Cawthorne was sentenced to 46 months in prison for committing wire fraud and 36 months in prison for committing tax fraud, both to run concurrently. He will serve 3 years of supervised release following his release from prison. In addition, Cawthorne was ordered to pay $58,183.95 in restitution to the IRS.
Turner was sentenced to 46 months in prison for committing wire fraud, followed by 3 years of supervised release.
In addition, Cawthorne and Turner were ordered to jointly pay restitution in the amount of $837,690.01 to USDA.
Cawthorne and Turner each pleaded guilty on November 5, 2021, to wire fraud charges in connection with their involvement in a scheme to defraud the Food and Nutrition Service, an agency of the United States Department of Agriculture (USDA) which administers the Child Nutrition Programs. Cawthorne also pleaded guilty to a charge of aiding and assisting in making and subscribing a false tax return in connection with a separate indictment that was returned by a federal grand jury against him in December 2019.
The Child Nutrition Programs administered by the USDA include the Summer Feeding Service Program (SFSP). The SFSP was established to ensure that children in low-income areas continue to receive nutritious meals when school is not in session during the summer. In Louisiana, the SFSP is administered by the Louisiana Department of Education’s (LDOE) Division of Nutrition Support. Meals are prepared and served by SFSP sponsors who are required to follow rules and regulations issued by the USDA and LDOE.
To participate in the SFSP, sponsors are required to submit a “sponsor application” that includes, among other things, a budget estimating revenues and expenses related to the feeding program. Sponsors are also required to submit a “site application” listing the physical address where meals will be served. In the application, sponsors agree to oversee the administration of SFSP at each approved site. Based on guidelines published by the USDA, LDOE regulations require sponsors to maintain certain records, including but not limited to, daily site records documenting the number of Eligible Meals served to Eligible Persons. Sponsors are reimbursed for expenses after electronically submitting claims to LDOE certifying that each claim is true and accurate. Sponsors can also receive an advance of funds to help pay approved expenses.
From 2011 to 2014, Cawthorne and Turner caused their non-profit corporation, United Citizens and Neighborhoods, Inc. (UCAN) to participate in the SFSP. After the discovery of discrepancies by the LDOE, an investigation ensued utilizing multiple agencies. The investigation revealed that Cawthorne and Turner received $1,015,123.54 in claims paid by the LDOE for the SFSP; however, only $56,351.53 was actually spent on food during the 2011 through 2014 time period causing an actual loss of $987,919.72. As part of their sentence, Cawthorne and Turner will be required to pay $837,690.01 in restitution.
In connection with the tax fraud charge, Cawthorne admitted to hiring a tax return preparer to prepare his 2013 tax return and admitted that he assisted in the preparation of his tax return for the 2013 tax year. Cawthorne received income from Harvest Catering that he failed to report, and he fraudulently reported an adjusted gross income of $7,555 during the 2013 calendar year. Cawthorne knew the statement in his 2013 tax return was false and filed the 2013 tax return on or about April 15, 2014, knowing that it contained false information, in that the amount of his income was higher. In relation to his tax fraud charge, Cawthorne will be required to pay $58,183.95 in restitution.
“These programs were created to provide meals to children in low-income areas during the summer months,” said United States Attorney Brandon B. Brown. “Instead of providing services to the children who needed it most, these defendants took advantage of them and in turn added money to their own pocketbooks. It’s a sad day when we cannot put our complete trust in community leaders who have promised to help mankind and those in need, but instead choose to cheat the system in order to benefit themselves. This is not the first instance of this type of fraud involving USDA child nutrition programs in this district in recent years. As in years past, our women and men at the U.S. Attorney’s Office will continue to aggressively investigate and prosecute those who commit criminal acts to take advantage of the ‘least of these’ in our community for personal gain.”
“Today’s sentencing sends a clear message that individuals like Lynn D. Cawthorne and Belena C. Turner who brazenly steal from children in need will be held accountable. Mr. Cawthorne and Ms. Turner, out of personal greed, committed fraud against the USDA Summer Foods Service Program which is designed to provide nutritious meals to children in low-income areas during the summer when school is not in session,” said FBI New Orleans Special Agent in Charge Douglas A. Williams, Jr. “We thank our partners at the United States Attorney’s Office, Western District of Louisiana, Internal Revenue Service Criminal Investigation, Office of State Inspector General, State of Louisiana, and the Office of Inspector General, United States Department of Agriculture.”
Louisiana Inspector General Stephen Street commented, “The federal prison sentences imposed today upon Lynn Cawthorne and Belena Turner are entirely appropriate in light of their brazen theft of well over $800,000 of taxpayer funds intended to feed hungry children. We are hopeful that these significant jail sentences will send the message that such callous disregard for the welfare of children can never be tolerated.” Street added, “I want to thank United States Attorney Brandon Brown and his staff for their usual outstanding work, as well as our partners at the FBI, IRS and Caddo Parish Sheriff’s Office.”
“Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money,” said Special Agent in Charge James E. Dorsey, IRS Criminal Investigation, Atlanta Field Office. “Cawthorne was positioned to service the community but instead took government funds to satisfy his personal desires. Individuals who engage in financial fraud should know they will not go undetected and will be held accountable.”
The Louisiana Office of the State Inspector General, FBI, IRS-Criminal Investigation, USDA-OIG and the Caddo Parish Sheriff’s Office investigated the case. U.S. Attorney Brandon B. Brown, First Assistant Alexander C. Van Hook, and Assistant U.S. Attorney Tennille M. Gilreath prosecuted the case.
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Former AgGeorgia Loan Officer Sentenced for Committing FraudRead the Press Release
MACON, Ga. – A former loan officer convicted of defrauding two agriculture-based financial institutions was sentenced to prison for his crime.
William Spigener, III, 33, of Columbus, was sentenced to serve 40 months in prison to be followed by three years of supervised release by U.S. District Judge Marc T. Treadwell after previously pleading guilty to conspiracy to defraud a financial institution. In addition, Spigener was ordered to pay $474,148.02 to AgGeorgia Farm Credit and $174,489.42 to AgSouth Farm Credit in restitution. Co-defendants Johnnie Farrow, 66, Eary Fuller, 57, and Demetria Bell, 50, all of Macon, were also convicted of conspiracy to defraud a financial institution in this case and are awaiting sentencing. There is no parole in the federal system.
“Our office will do everything within our power to hold fraudsters whose schemes cripple our local businesses, their employees and our citizens accountable for their crimes,” said U.S. Attorney Peter D. Leary. “The negative impact of white-collar fraud is far-reaching and the U.S. Attorney’s Office, working with our law enforcement partners, will seek justice for victims.”
“No matter how elaborate or complicated the fraud scheme, the FBI will work to uncover it to protect American citizens and businesses from further damages,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “Spigener will now be held accountable for the damage his greed caused, sending a strong message to anyone considering such fraud that it is a serious crime with serious consequences.”
According to court documents, Spigener orchestrated a scheme to defraud AgSouth Farm Credit and AgGeorgia Farm Credit in Perry, Georgia, where he was employed as a loan officer from Feb. 2012 until his resignation in Feb. 2019. During this time, Spigener recruited co-defendants Farrow, Fuller and Bell to pretend to be borrowers with both institutions. In exchange for using their personal information and appearing at the loan closings, Spigener provided Farrow, Fuller and Bell approximately 10% of the loan proceeds. Spigener would create documentation to ensure the loan applications were approved, even though Farrow, Fuller and Bell were not engaged in farming activity, nor did they have the collateral to back up the loans. Spigener made some repayments on the loans but was unable to repay the vast majority of the loans, and both financial institutions suffered losses. Spigener admits the intended loss amount was more than $550,000 but less than $1.5 million.
The case was investigated by FBI.
Assistant U.S. Attorney Elizabeth Howard is prosecuting the case.
Five Individuals Charged Variously with Stalking, Harassing, and Spying on U.S. Residents on Behalf of the PRC Secret PoliceRead the Press Release
Two complaints were unsealed and one amended complaint was authorized today in federal court in Brooklyn charging five defendants with various crimes related to efforts by the secret police of the People’s Republic of China (PRC) to stalk, harass, and spy on Chinese nationals residing in Queens, New York and elsewhere in the United States. All of the defendants allegedly perpetrated transnational repression schemes to target U.S. residents whose political views and actions are disfavored by the PRC government, such as advocating for democracy in the PRC. In one of these schemes, the coconspirators sought to interfere with federal elections by allegedly orchestrating a campaign to undermine the U.S. congressional candidacy of a U.S. military veteran who was a leader of the 1989 pro-democracy demonstrations in Beijing, PRC. In another of these schemes, three defendants planned to destroy the artwork of a PRC national residing in Los Angeles, California that was critical of the PRC government, and planted surveillance equipment in the artist’s workplace and car to spy on him from the PRC.
Fan “Frank” Liu and Matthew Ziburis were arrested yesterday, while Shujun Wang was arrested this morning. All three arrests occurred in the Eastern District of New York. The defendants’ initial appearances are scheduled this afternoon in Brooklyn before United States Magistrate Judge James R. Cho. The other two defendants remain at large.
Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division, Alan E. Kohler, Jr., Assistant Director of the Federal Bureau of Investigation’s Counterintelligence Division (FBI), and Michael J. Driscoll, Assistant Director-in-Charge, FBI, New York Field Office, announced the arrests and charges.
“The complaints unsealed today reveal the outrageous and dangerous lengths to which the PRC government’s secret police and these defendants have gone to attack the rule of law and freedom in New York City and elsewhere in the United States,” stated United States Attorney Peace. “As alleged, all three cases involve campaigns to silence, harass, discredit and spy on U.S. residents for simply exercising their freedom of speech. The United States will not tolerate blatantly illegal actions that target U.S. residents, on U.S. soil, and undermine our treasured American values and rights.”
“Transnational repression harms people in the United States and around the world and threatens the rule of law itself,” said Assistant Attorney General Olsen. “This activity is antithetical to fundamental American values, and we will not tolerate it when it violates U.S. law. The Department of Justice will defend the rights of Americans and those who come to live, work, and study in the United States. We will not allow any foreign government to impede their freedom of speech, to deny them the protection of our laws, or to threaten their safety or the safety of their families.”
“The Ministry of State Security is more than an intelligence collection agency. It executes the Chinese government’s efforts to limit free speech, attack dissidents, and preserve the power of the Communist Party,” stated FBI Assistant Director Kohler. “When it exports those actions overseas, it violates the fundamental sovereignty of the US and becomes a national security threat. These indictments should serve as a stark warning to the MSS and all foreign intelligence agencies that their efforts at repression will not be tolerated within our borders.”
“As alleged, all of the defendants charged today at the direction of the PRC secret police, engaged in a series of actions designed to silence the free speech of Chinese dissidents in the United States. Transnational repression schemes pose an increasing threat against U.S. residents who choose to speak out against the People’s Republic of China and other regimes. The FBI is committed to protecting the free speech of all U.S. residents, and we simply will not tolerate the attempts of foreign governments to violate our laws and restrict our freedom,” stated FBI Assistant Director-in-Charge Driscoll.
United States v. Qiming Lin
Lin is charged with conspiracy to commit interstate harassment, as well as conspiracy and attempt to use of a means of identification in connection with the interstate harassment conspiracy.
As alleged, Lin, a citizen and resident of the PRC, works on behalf of the PRC’s Ministry of State Security (MSS). The MSS is a civilian intelligence and secret police agency responsible for counterintelligence and political security.
Beginning in September 2021, Lin hired a private investigator (the PI) in New York to disrupt the campaign of a Brooklyn resident currently running for U.S. Congress (the Victim), including by physically attacking the Victim. The Victim was a student leader of the prodemocracy demonstrations in Tiananmen Square in 1989, who later escaped to the United States, served in the U.S. military, and became a naturalized U.S. citizen. In September 2021, the Victim (then living in Long Island) announced his intention to run for a U.S. congressional seat on Long Island in the November 2022 general election.
In hiring the PI, Lin explained that if the Victim was selected during the June 2022 primary election, then he might be “elected to be a legislator. Right now we don’t want him to be elected.” Lin emphasized that “Whatever price is fine. As long as you can do it.” He also promised that “we will have a lot more-more of this [work] in the future . . . Including right now [a] New York State legislator.” Lin explained to the PI that Lin was working with other unidentified individuals in the PRC to stop the Victim from being elected to U.S. Congress.
As alleged, Lin first asked the PI to provide information about the Victim, including the Victim’s address and phone number, which the PI later provided. Lin also requested that the PI unearth derogatory information about the Victim or, if no such information could be found, “manufacture something, like what happened to [a famous concert pianist (the Pianist)]?” That request referred to an incident in Beijing in which the Pianist was reportedly detained after allegedly being found in the company of a prostitute. Lin later reiterated that, if the PI could not uncover a scandal, then “can they create some?” Lin also encouraged the PI to “go find a girl . . . Or see how he goes for prostitution, take some photos, something of that nature.”
In December 2021, Lin proposed that the PI also consider physically attacking the Victim to prevent his candidacy. In a voice message to the PI, Lin stated:
You can start thinking now, aside from violence, what other plans are there? Huh? But in the end, violence would be fine too. Huh? Beat him [chuckles], beat him until he cannot run for election. Heh, that’s the-the last resort. You-you think about it. Car accident, [he] will be completely wrecked [chuckles], right? Don’t know, eh, whatever ways from all different angles. Or, on the day of the election, he cannot make it there himself, right?
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon and David K. Kessler are in charge of the prosecution, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
United States v. Shujun Wang
Wang is charged with acting as an agent of the PRC government, criminal use of means of identification, and making materially false statements, in connection with his participation in a transnational repression scheme orchestrated by the MSS.
As alleged, Wang, who lives in Flushing, Queens, is a former visiting scholar and author who helped start a pro-democracy organization in Queens that memorializes two former leaders of the Chinese Communist Party who promoted political and economic reforms within the PRC and were eventually forced from power. Since at least 2015, however, Wang has secretly operated at the direction and control of several MSS officers.
At the direction of the MSS, Wang used his position and status within the Chinese diaspora community in New York City to collect information about prominent activists, dissidents, and human rights leaders to report that information to the PRC government. While ostensibly lending a sympathetic ear, Wang reported on statements activists made in confidence to him, including on their views on democracy in the PRC, as well as planned speeches, writings, and demonstrations against the Chinese Communist Party. The victims of Wang’s efforts included individuals and groups located in New York City and elsewhere that the PRC considers subversive, such as Hong Kong pro-democracy activists, advocates for Taiwanese independence, and Uyghur and Tibetan activists, both in the United States and abroad. Wang sent email “diaries” to the MSS that contained details of his conversations with prominent dissidents, the activities of pro-democracy activists, as well as relevant phone numbers and other contact information for the targets of the PRC government.
For example, in a series of communications on November 22, 2016, Wang’s MSS handler instructed him to meet with a particular attendee at a pro-democracy event in Queens and to “accomplish the task” assigned by the “Boss.” The MSS handler emphasized that the attendee had contacts with “Tibetans, Uyghurs and Mongolians.” Similarly, on November 16, 2016, Wang informed another MSS handler that he “just finished chatting” with a prominent human rights activist and had asked the “necessary questions” and received “candid” answers. The MSS officer responded “great” and with a thumbs-up emoji, instructing Wang to record that information in a “diary.”
In April 2020, one victim about whom Wang reported—the Hong Kong democracy activist identified in the complaint as “Hong Kong Dissident #1”—was arrested in Hong Kong and jailed on political charges. In addition, in April 2019, Wang flew from the PRC to John F. Kennedy International Airport in Queens carrying a handwritten document with the names and non-public contact information for dozens of other well-known PRC dissidents, including other Hong Kong democracy activists who were subsequently arrested by the PRC in 2019 and 2020.
The complaint also alleges that, during an interview in Queens on August 2, 2017, Wang lied to federal law enforcement, falsely denying that he had contacts with PRC officials or the MSS when in fact he had been secretly reporting on U.S. residents to the MSS. Wang later admitted much of his criminal conduct to an undercover member of law enforcement and during a subsequent interview with agents.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Artie McConnell is in charge of the prosecution, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section, and Assistant United States Attorney Edward Chang of the United States Attorney’s Office for the District of Connecticut.
United States v. Fan “Frank” Liu, Matthew Ziburis, and Qiang “Jason” Sun
Liu and Ziburis are charged with conspiring to act as agents of the PRC government. Liu, Ziburis, and Sun are charged with conspiring to commit interstate harassment and criminal use of a means of identification. Liu and Sun are charged with conspiring to bribe a federal official in connection with their scheme to obtain the tax returns of a pro-democracy activist residing in the United States.
According to the complaint, Liu, a resident of Jericho, Long Island, is president of a purported media company based in New York City, while Ziburis, a resident of Oyster Bay, Long Island, is a former correctional officer for the State of Florida and a bodyguard. Sun is a PRC-based employee of an international technology company.
According to the complaint, Liu and Ziburis have been operating under Sun’s direction and control to discredit pro-democracy PRC dissidents residing in the United States—including in New York City, California, and Indiana—by spying on them and disseminating negative information about them. For example, at Sun’s direction, Liu paid a private investigator in Queens to bribe an Internal Revenue Service employee to obtain the federal tax returns of one of the dissidents. The private investigator was cooperating with law enforcement, and no Internal Revenue Service employee received a bribe payment. The defendants planned to publicly disclose the dissident’s potential tax liabilities to discredit him. The coconspirators also made plans to destroy the artwork of a dissident artist whose work is critical of the PRC government, and the artist’s sculpture depicting PRC President Xi Jinping as a coronavirus molecule was demolished in the Spring of 2021. Sun has paid both Liu and Ziburis for these efforts to stalk, harass, and surveil dissidents residing in the United States.
As part of their efforts, the defendants electronically spied on the pro-democracy activists. For example, posing as an art dealer interested in purchasing the artwork of the dissident artist, Ziburis secretly installed surveillance cameras and GPS devices at the dissident’s workplace and in his car. While in the PRC, Sun watched the live video feed and location data from these devices. The defendants made similar plans to install surveillance equipment at the residences and on the vehicles of two other dissidents. Liu and Ziburis planned to gain access to one such residence by posing as a member of an international sports committee.
The defendants also planned to interview the dissidents in mock media sessions, using the cover of Liu’s purported media organization. Sun provided outlines for these fake interviews and designed questions to elicit answers that were intended to humiliate or discredit the dissidents. The defendants intended that audio or video clips of these statements could be used in PRC propaganda materials targeting the dissidents.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon and Emily J. Dean are in charge of the prosecution, with assistance from Brian D. Morris of the Office’s Asset Forfeiture Section, Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section, and Assistant United States Attorney Christopher D. Grigg of the United States Attorney’s Office for the Central District of California.
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The charges in the complaints are allegations, and the defendants are presumed innocent unless and until proven guilty.
The FBI has created a website for victims to report efforts by foreign governments to stalk, intimidate, or assault people in the United States. If you believe that you are or have been a victim of transnational repression, please visit https://www.fbi.gov/investigate/counterintelligence/transnational-repression.
The Defendants:
QIMING LIN
Age: 59
People’s Republic of ChinaE.D.N.Y. Docket No. 22-MJ-251
SHUJUN WANG
Age: 73
Queens, New YorkE.D.N.Y. Docket No. 22-MJ-250
Fan “Frank” Liu
Age: 62
Jericho, New YorkE.D.N.Y. Docket No. 22-MJ-257
MATTHEW ZIBURIS
Age: 49
Oyster Bay, New YorkE.D.N.Y. Docket No. 22-MJ-257
QIANG “JASON” SUN
Age: 40
PEOPLE’S REPUBLIC OF CHINAE.D.N.Y. Docket No. 22-MJ-257
Five Individuals Charged Variously with Stalking, Harassing and Spying on U.S. Residents on Behalf of the PRC Secret PoliceRead the Press Release
Defendants Participated in Transnational Repression Schemes to Silence Critics of the People’s Republic of China (PRC) Residing in the United States and Abroad – Including by Attempting to Disrupt the Campaign of a U.S. Military Veteran and Candidate for U.S. Congress in Brooklyn Who Expressed Views Critical of the PRC and by Scheming to Destroy a PRC Dissident’s Artwork Criticizing the PRC Government
Two complaints were unsealed, and one amended complaint was authorized today in federal court charging five defendants with various crimes related to efforts by the secret police of the People’s Republic of China (PRC) to stalk, harass and spy on Chinese nationals residing in Queens, New York, and elsewhere in the United States.
Fan “Frank” Liu and Matthew Ziburis were arrested yesterday in the Eastern District of New York, while Shujun Wang was arrested this morning in the Eastern District of New York. Their initial appearances are scheduled this afternoon in Brooklyn before U.S. Magistrate Judge James R. Cho. The other two defendants remain at large.
According to court documents, all the defendants allegedly perpetrated transnational repression schemes to target U.S. residents whose political views and actions are disfavored by the PRC government, such as advocating for democracy in the PRC. In one of these schemes, the co-conspirators sought to interfere with federal elections by allegedly orchestrating a campaign to undermine the U.S. congressional candidacy of a U.S. military veteran who was a leader of the 1989 pro-democracy demonstrations in Beijing, PRC. In another of these schemes, three defendants planned to destroy the artwork of a PRC national residing in Los Angeles that was critical of the PRC government, and planted surveillance equipment in the artist’s workplace and car to spy on him from the PRC.
“Transnational repression harms people in the United States and around the world and threatens the rule of law itself,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “This activity is antithetical to fundamental American values, and we will not tolerate it when it violates U.S. law. The Department of Justice will defend the rights of Americans and those who come to live, work, and study in the United States. We will not allow any foreign government to impede their freedom of speech, to deny them the protection of our laws or to threaten their safety or the safety of their families.”
“The complaints unsealed today reveal the outrageous and dangerous lengths to which the PRC government’s secret police and these defendants have gone to attack the rule of law and freedom in New York City and elsewhere in the United States,” stated U.S. Attorney Breon Peace for the Eastern District of New York. “As alleged, all three cases involve campaigns to silence, harass, discredit and spy on U.S. residents for simply exercising their freedom of speech. The United States will not tolerate blatantly illegal actions that target U.S. residents, on U.S. soil, and undermine our treasured American values and rights.”
“As alleged, all of the defendants charged today at the direction of the PRC secret police, engaged in a series of actions designed to silence the free speech of Chinese dissidents in the United States,” said Assistant Director-in-Charge Michael J. Driscoll of the FBI’s New York Field Office. “Transnational repression schemes pose an increasing threat against U.S. residents who choose to speak out against the People’s Republic of China and other regimes. The FBI is committed to protecting the free speech of all U.S. residents, and we simply will not tolerate the attempts of foreign governments to violate our laws and restrict our freedom.”
“The Ministry of State Security is more than an intelligence collection agency. It executes the Chinese government’s efforts to limit free speech, attack dissidents, and preserve the power of the Communist Party,” said Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division. “When it exports those actions overseas, it violates the fundamental sovereignty of the United States and becomes a national security threat. These indictments should serve as a stark warning to the MSS and all foreign intelligence agencies that their efforts at repression will not be tolerated within our borders.”
United States v. Qiming Lin
Qiming Lin, 59, of the PRC, is charged with conspiracy to commit interstate harassment, as well as conspiracy and attempt to use of a means of identification in connection with the interstate harassment conspiracy.
As alleged, Lin works on behalf of the PRC’s Ministry of State Security (MSS). The MSS is a civilian intelligence and secret police agency responsible for counterintelligence and political security.
Beginning in September 2021, Lin hired a private investigator (the PI) in New York to disrupt the campaign of a Brooklyn resident currently running for U.S. Congress (the Victim), including by physically attacking the Victim. The Victim was a student leader of the pro-democracy demonstrations in Tiananmen Square in 1989, who later escaped to the United States, served in the U.S. military, and became a naturalized U.S. citizen. In September 2021, the Victim (then living in Long Island) announced his intention to run for a U.S. congressional seat on Long Island in the November 2022 general election.
In hiring the PI, Lin explained that if the Victim was selected during the June 2022 primary election, then he might be “elected to be a legislator. Right now we don’t want him to be elected.” Lin emphasized that, “Whatever price is fine. As long as you can do it.” He also promised that “we will have a lot more-more of this [work] in the future…Including right now [a] New York State legislator.” Lin explained to the PI that Lin was working with other unidentified individuals in the PRC to stop the Victim from being elected to U.S. Congress.
As alleged, Lin first asked the PI to provide information about the Victim, including the Victim’s address and phone number, which the PI later provided. Lin also requested that the PI unearth derogatory information about the Victim or, if no such information could be found, “manufacture something, like what happened to [a famous concert pianist (the Pianist)]?” That request referred to an incident in Beijing in which the Pianist was reportedly detained after allegedly being found in the company of a prostitute. Lin later reiterated that, if the PI could not uncover a scandal, then “can they create some?” Lin also encouraged the PI to “go find a girl… Or see how he goes for prostitution, take some photos, something of that nature.”
In December 2021, Lin proposed that the PI also consider physically attacking the Victim to prevent his candidacy. In a voice message to the PI, Lin stated:
You can start thinking now, aside from violence, what other plans are there? Huh? But in the end, violence would be fine too. Huh? Beat him [chuckles], beat him until he cannot run for election. Heh, that’s the-the last resort. You-you think about it. Car accident, [he] will be completely wrecked [chuckles], right? Don’t know, eh, whatever ways from all different angles. Or, on the day of the election, he cannot make it there himself, right?
If convicted, Lin faces a statutory maximum penalty of 10 years in prison. Lin remains at large.
Assistant U.S. Attorneys Alexander A. Solomon and David K. Kessler for the Eastern District of New York are prosecuting the case, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
United States v. Shujun Wang
Shujun Wang, 73, of Queens, New York, is charged with acting as an agent of the PRC government, criminal use of means of identification and making materially false statements in connection with his participation in a transnational repression scheme orchestrated by the MSS.
As alleged, Wang is a former visiting scholar and author who helped start a pro-democracy organization in Queens that memorializes two former leaders of the Chinese Communist Party who promoted political and economic reforms within the PRC and were eventually forced from power. Since at least 2015, however, Wang has secretly operated at the direction and control of several MSS officers.
At the direction of the MSS, Wang used his position and status within Chinese diaspora community in New York City to collect information about prominent activists, dissidents, and human rights leaders to report that information to the PRC government. While ostensibly lending a sympathetic ear, Wang reported on statements activists made in confidence to him, including on their views on democracy in the PRC, as well as planned speeches, writings, and demonstrations against the Chinese Communist Party. The victims of Wang’s efforts included individuals and groups located in New York City and elsewhere that the PRC considers subversive, such as Hong Kong pro-democracy activists, advocates for Taiwanese independence, and Uyghur and Tibetan activists, both in the United States and abroad. Wang sent email “diaries” to the MSS that contained details of his conversations with prominent dissidents, the activities of pro-democracy activists, as well as relevant phone numbers and other contact information for the targets of the PRC government.
For example, in a series of communications on Nov. 22, 2016, Wang’s MSS handler instructed him to meet with a particular attendee at a pro-democracy event in Queens and to “accomplish the task” assigned by the “Boss.” The MSS handler emphasized that the attendee had contacts with “Tibetans, Uyghurs and Mongolians.” Similarly, on Nov. 16, 2016, Wang informed another MSS handler that he “just finished chatting” with a prominent human rights activist and had asked the “necessary questions” and received “candid” answers. The MSS officer responded “great” and with a thumbs-up emoji, instructing Wang to record that information in a “diary.”
In April 2020, one victim about whom Wang reported – the Hong Kong democracy activist identified in the complaint as Hong Kong Dissident #1 – was arrested in Hong Kong and jailed on political charges. In addition, in April 2019, Wang flew from the PRC to Queens carrying a handwritten document with the names and non-public contact information for dozens of other well-known PRC dissidents, including other Hong Kong democracy activists who were subsequently arrested by the PRC in 2019 and 2020.
The complaint also alleges that, during an interview in Queens on Aug. 2, 2017, Wang lied to federal law enforcement, falsely denying that he had contacts with PRC officials or the MSS when in fact he had been secretly reporting on U.S. residents to the MSS. Wang later admitted much of his criminal conduct to an undercover member of law enforcement and during a subsequent interview with agents.
Wang was arrested this morning in the Eastern District of New York and is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge James R. Cho. If convicted, Wang faces a statutory maximum penalty of 20 years in prison.
Assistant U.S. Attorney Artie McConnell for the Eastern District of New York is prosecuting the case, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
United States v. Fan “Frank” Liu, Matthew Ziburis, and Qiang “Jason” Sun
Fan “Frank” Liu, 62, of Long Island, New York, and Matthew Ziburis, 49, of Oyster Bay New York, are charged with conspiring to act as agents of the PRC government. Liu, Ziburis and co-defendant Quiang “Jason” Sun, 40, of the PRC, are charged with conspiring to commit interstate harassment and criminal use of a means of identification. Liu and Sun are charged with conspiring to bribe a federal official in connection with their scheme to obtain the tax returns of a pro-democracy activist residing in the United States.
According to the complaint, Liu is president of a purported media company based in New York City, while Ziburis is a former correctional officer for the State of Florida and a bodyguard. Sun is a PRC-based employee of an international technology company.
According to the complaint, Liu and Ziburis have been operating under Sun’s direction and control to discredit pro-democracy PRC dissidents residing in the United States – including in New York City, California and Indiana – by spying on them and disseminating negative information about them. For example, at Sun’s direction, Liu paid a private investigator in Queens to bribe an IRS employee to obtain the federal tax returns of one of the dissidents. The private investigator was cooperating with law enforcement, and no Internal Revenue Service employee received a bribe payment. The defendants planned to publicly disclose the dissident’s potential tax liabilities to discredit him. The co-conspirators also made plans to destroy the artwork of a dissident artist whose work is critical of the PRC government, and the artist’s sculpture depicting PRC President Xi Jinping as a coronavirus molecule was demolished in the Spring 2021. Sun has paid both Liu and Ziburis for these efforts to stalk, harass and surveil dissidents residing in the United States.
As part of their efforts, the defendants electronically allegedly spied on the pro-democracy activists. For example, posing as an art dealer interested in purchasing the artwork of the dissident artist, Ziburis secretly installed surveillance cameras and GPS devices at a dissident’s workplace and in his car. While in the PRC, Sun watched the live video feed and location data from these devices. The defendants made similar plans to install surveillance equipment at the residences and on the vehicles of two other dissidents. Liu and Ziburis planned to gain access to one such residence by posing as a member of an international sports committee.
The defendants also planned to interview the dissidents in mock media sessions, using the cover of Liu’s purported media organizations. Sun provided outlines for these fake interviews and designed questions to elicit answers that were intended to humiliate or discredit the dissidents. The defendants intended that audio or video clips of these statements could be used in PRC propaganda materials targeting the dissidents.
Liu and Ziburis were arrested yesterday in the Eastern District of New York and are scheduled to make their initial appearances this afternoon in Brooklyn before U.S. Magistrate Judge James R. Cho. Sun remains at large.
If convicted, Liu and Ziburis face a maximum statutory penalty of five years in prison for conspiring to commit interstate harassment, and up to 15 years in prison for criminal use of a means of identification. Liu and Sun face up to five years each for conspiring to bribe a federal official. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorneys Alexander A. Solomon and Emily J. Dean for the Eastern District of New York are prosecuting the case, with assistance from Assistant U.S. Attorney Brian D. Morris of the Office’s Asset Forfeiture Section and Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
The FBI is investigating these cases.
If you are in the United States, including a U.S. territory, your freedom of speech is protected, regardless of your citizenship. To report threats or intimidation by a foreign government, contact the FBI online at tips.fbi.gov or call 1-800-CALL-FBI (1-800-225-5324). For more information on transnational repression investigations, visit Transnational Repression | FBI.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Federal Grand Jury Indicts Olean Man for Cyberstalking, Making Interstate ThreatsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned an indictment charging Luke Marshall Wenke, 29, of Olean, NY, with cyberstalking and making interstate threats. The charges carry a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorneys Charles M. Kruly and David J. Rudroff, who are handling the case, stated that according to the indictment and a previously filed complaint, on September 3, 2020, an acquaintance of Wenke’s in Minneapolis, Minnesota, was arrested and charged federally with conspiracy to provide material support and resources to Hamas. On September 22, 2020, Wenke began sending a series of threatening communications via email, text message, letters, and telephone to Victim 1, an attorney representing the individual arrested, based on Wenke’s belief that Victim 1 was not adequately representing the individual. In an email, on January 23, 2022, Wenke stated in part: “I will gladly take a steel chair to your face until I get what I want here. You don't respect me...but you will.” Wenke sent another email on January 24, 2022, which contained a photograph of Victim 1’s residence.
Wenke is scheduled to be arraigned on March 17, 2022, at 10:30 a.m. before U.S. Magistrate Judge H. Kenneth Schroeder, Jr.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia and the Olean Police Department, under the direction of Chief Ron Richardson.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Federal Grand Jury Indicts 5 IndividualsRead the Press Release
PEORIA, Ill. – A federal grand jury returned indictments on March 15, 2022, against the following:
Aaron Rossi, 39, of Bloomington, Illinois, was charged with three counts of making and subscribing a false tax return for calendar years 2015, 2016 and 2017. A summons has been issued for his arraignment.
Vonta Commer, 36, of Springfield, Illinois, was charged with possession with intent to distribute 50 grams or more of methamphetamine. Commer is currently in custody in Macon County, Illinois.
Jason Musselman, 34, of Toulon, Illinois, was charged with five counts of sexual exploitation of a child, one count of distribution of child pornography, and one count of possession of material containing child pornography. Musselman has been released on bond.
Michael Kamphaus, 33, of Payson, Illinois, was charged with attempted trafficking of a minor and attempted enticement of a minor. Kamphaus is currently in the custody of the United States Marshals Service.
Raphael Thompson, 34, of Peoria, Illinois, was charged via a superseding indictment with possession with intent to distribute five grams or more of methamphetamine, possession with intent to distribute cocaine, possession, and use of a firearm with drug trafficking, and possession of a firearm as a felon. Thompson is currently in the custody of the United States Marshals Service.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The cases against Commer and Thompson were brought as part of The Department of Justice’s Project Safe Neighborhoods initiative. The Department’s renewed commitment to Project Safe Neighborhoods establishes four fundamental principles to guide efforts to reduce violent crime: 1) build trust and legitimacy within communities; 2) invest in community-based prevention and intervention programs; 3) target enforcement and priorities to focus resources on identifying, investigating, and prosecuting the most significant drivers of gun violence and other violent crime; and 4) measure results with the goal to reduce the level of violence in our communities and not to increase the number of arrests and prosecutions as if they were ends in themselves.
The cases against Musselman and Kamphaus were brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Elyria Man Convicted of Trafficking Drugs from Motel RoomRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that a federal jury returned guilty verdicts on Monday, March 14, 2022, against Defendant Terry L. Jackson Sr, 50, of Elyria, Ohio, following a three-day trial before U.S. District Judge Donald C. Nugent in Cleveland.
Jackson was convicted of distributing cocaine base, possession with intent to distribute fentanyl, possession with intent to distribute cocaine and possession with intent to distribute methamphetamine.
According to court documents, in February of 2019, law enforcement officers with the Elyria Police Department began an investigation into Terry L. Jackson Sr. after receiving information that Jackson was distributing drugs out of an Elyria-area motel room. As a result, investigators conducted a controlled buy from Jackson and obtained a quantity of cocaine base. After the buy, investigators obtained and executed a search warrant for the hotel room where Jackson was residing.
During the execution of the warrant, investigators encountered Jackson alone in the room and obtained quantities of fentanyl, cocaine and methamphetamine. Jackson was subsequently arrested.
Jackson is scheduled to be sentenced on June 20, 2022. He faces a maximum possible sentence of 30 years in prison.
Acting U.S. Attorney Michelle M. Baeppler and FBI Special Agent in Charge Eric B. Smith made the announcement.
This investigation was conducted by the Elyria Police Department, with assistance from the FBI and the Ohio Adult Parole Authority. This case is being prosecuted by Assistant U.S. Attorneys Robert J. Kolansky and Payum Doroodian.