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10 March 2022
Mexican National Man Pleads Guilty to and is Sentenced for Immigration CrimeRead the Press Release
CHARLESTON, W.Va. – A Mexican national man pleaded guilty to the felony offense of reentry of a removed alien. Enoc Lopez-Garcia, 29, was found guilty by the Court and sentenced to “time served,” having spent approximately four months in federal custody. Lopez-Garcia was subsequently remanded to ICE custody for possible removal proceedings from the United States.
According to court documents and statements made during the hearing, on November 9, 2021, Lopez-Garcia was found in Parkersburg by members of ICE who had identified him during the course of an investigation. ICE agents spoke to the defendant to confirm his identity. Lopez-Garcia had no identification documents permitting him legal status in the United States, and he was placed under arrest.
Fingerprinting matched Lopez-Garcia to three prior administrative removals from the United States, one in 2014 and two in 2019. Lopez-Garcia has misdemeanor convictions in Jackson County for battery and brandishing deadly weapons. Lopez-Garcia never obtained permission to legally enter the United States and had not sought legal status or citizenship. Lopez-Garcia is a citizen of Mexico.
United States Attorney Will Thompson made the announcement and commended the investigative efforts of the U.S. Immigration and Customs Enforcement (ICE), the Street Crimes Unit of the Parkersburg Police Department, and the United States Marshals Service.
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorneys Ryan A. Keefe and Erik S. Goes handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00248.
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Member of Brockton-Based Drug Trafficking Organization Sentenced to 19 Years in PrisonRead the Press Release
BOSTON – The member of a violent Brockton-based drug trafficking organization (DTO) was sentenced today in federal court in Boston for his role in a heroin trafficking conspiracy.
Lutherson Bonheur, a/k/a “Boogs,” 29, of Brockton, was sentenced by U.S. Senior District Court Judge William G. Young to 19 years in prison and five years of supervised release. In October 2020, Bonheur pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin and cocaine; one count of possession with intent to distribute heroin; two counts of possession with intent to distribute 100 grams or more of heroin and cocaine; two counts of being a felon in possession of a firearm; one count of possession of a firearm in furtherance of a drug trafficking offense; and one count of possession of a firearm in furtherance of a drug trafficking offense resulting in death.
Bonheur was arrested and charged in November 2015 along with four co-conspirators as part of a coordinated enforcement operation dubbed “Operation Heroin Highway.” The investigation identified co-conspirator Marvin Antoine to be the leader of a DTO involved in drug and sex trafficking in the Brockton area. Eventually, 10 defendants were charged and convicted in this case.
Bonheur was Antoine’s trusted right-hand man and lived at the DTO’s stash house which maintained heroin, cocaine, and firearms. The stash location also housed women who Bonheur and Antoine trafficked for commercial sex acts and were used by Bonheur and Antoine to test new batches of heroin before selling to customers. On a daily basis, Bonheur and his co-conspirators packaged and delivered drugs to a wide customer base between Brockton and the South Shore.
In addition to selling drugs, Bonheur collected drug debts owed to the DTO and at times used violence to do so. In September 2015, approximately three weeks after being released on bail for possession of heroin, Bonheur lured a heroin customer to a location in Hyde Park, under the guise that Bonheur needed the victim to conduct counter-surveillance while he purchased heroin. When they arrived in Hyde Park, Bonheur shot and killed the victim with a handgun. Bonheur subsequently drove to Antoine’s residence where they arranged a sale of the murder weapon. The handgun was later intercepted by investigators.
First Assistant United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Barnstable Police Chief Matthew Sonnabend made the announcement today. Special assistance was provided by the Boston Police Department and the Suffolk District Attorney’s Office. Assistant U.S. Attorneys Leah B. Foley and Stephen W. Hassink of the Narcotics & Money Laundering Unit prosecuted the case.
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.
Member of "Boogaloo Bois" Sentenced to Prison for Conspiring to Provide Material Support to HamasRead the Press Release
MINNEAPOLIS – Michael Robert Solomon, 31, of New Brighton, was sentenced today to 36 months in prison followed by five years of supervised release for conspiring to provide material support and resources, to Hamas, a designated foreign terrorist organization, for use against Israeli and U.S. military personnel overseas.
According to court documents, in late May of 2020, the FBI initiated an investigation into Solomon and co-defendant Benjamin Ryan Teeter, two members of the “Boogaloo Bois,” and a sub-group called the “Boojahideen.” The Boogaloo Bois are a group of individuals who espouse violent anti-government sentiments.
According to court documents, on June 10, 2020, Solomon and Teeter met with a confidential human source (“CHS”), whom the defendants believed to be a member of Hamas. During this meeting, Solomon and Teeter proposed assisting Hamas as a means of furthering the goals of the Boogaloo Bois. Throughout the course of the conspiracy, Solomon used encrypted messaging applications to communicate with Teeter and the CHS about various aspects of the conspiracy.
On June 28, 2020, Solomon, Teeter, and the CHS, met an undercover employee of the FBI (“UCE”) that Solomon believed was a member of Hamas. During this meeting, Solomon and Teeter proposed manufacturing suppressors, untraceable firearms, and fully automatic firearms for Hamas.
On July 6, 2020, Solomon and Teeter purchased a drill press for the purpose of manufacturing suppressors for Hamas. Solomon admits that he and Teeter had planned to use the drill press to also manufacture suppressors for members of the Boogaloo Bois. Solomon and Teeter brought the drill press to Solomon’s home and later used the drill press to manufacture five suppressors.
On July 30, 2020, Solomon and Teeter delivered the suppressors to the CHS and UCE believing those devices would be used by the militant wing of Hamas. During that meeting, the defendants agreed to manufacture additional suppressors for Hamas believing that the next batch of suppressors would be used against Israeli and U.S. military personnel overseas.
Solomon admitted that he and Teeter again met the UCE on August 29, 2020. During this meeting, the defendants gave the UCE a 3-D printed “auto sear” believing that the auto sear would be used by Hamas to convert semi-automatic rifles into fully automatic rifles. At this time, Solomon and Teeter agreed to obtain, and did obtain, another order of auto sears for the CHS and the UCE.
On May 4, 2021, Solomon pleaded guilty to one count of conspiracy to provide material support to a designated foreign terrorist organization.
Acting U.S. Attorney Charles J. Kovats for the District of Minnesota; Assistant Attorney General Matthew G. Olsen for the Justice Department’s National Security Division; and Special Agent in Charge Michael Paul of the FBI’s Minneapolis Field Office made the announcement after Senior U.S. District Judge Michael J. Davis sentenced the defendant. In sentencing the defendant, the Court recognized the extensive assistance to multiple investigations that Solomon provided to the FBI following his arrest.
The FBI’s Joint Terrorism Task Force is investigating the case, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant U.S. Attorney Andrew R. Winter and Trial Attorney Jessica Fender of the National Security Division's Counterterrorism Section are prosecuting the case.
Medical Assistant Admits Health Care Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – A former medical assistant today admitted defrauding New Jersey state and local health benefits programs and other insurers of more than $1 million by submitting fraudulent claims for medically unnecessary prescriptions, Attorney for the United States Vikas Khanna announced.
Aaron Jones, 27, of Willingboro, New Jersey, pleaded guilty by videoconference before U.S. District Judge Robert B. Kugler to a superseding information charging him with one count of conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Jones previously worked for a medical practice in Stratford, New Jersey, owned by Dr. Michael Goldis. Jones was paid by a pharmaceutical sales representative, Richard Zappala, to identify patients at the medical practice who had insurance plans that would cover compounded prescription medications. Jones forged Goldis’ signature on numerous compounded medication prescriptions, including on prescriptions for individuals who were not Goldis’ patients. Jones also arranged for Goldis to sign prescriptions for the compounded medications, regardless of whether or not the individuals receiving the prescriptions had a medical necessity for them. Jones received approximately $10,000 in cash for his role in the scheme.
Jones was previously indicted for conspiracy to commit health care fraud and wire fraud and other offenses, along with Goldis, Steven Monaco, and Dr. Daniel Oswari. Oswari pleaded guilty in December 2019 to fraud and kickback charges. Goldis pleaded guilty in June 2020 to four counts of making false statements relating to health care matters. Zappala pleaded guilty to conspiracy to commit health care fraud in September 2017. The charges remain pending against Monaco, who is scheduled for trial before Judge Kugler in Camden federal court on April 4, 2022.
Jones faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 12, 2022.
Attorney for the United States Khanna credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and special agents of the U.S. Department of Labor Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys R. David Walk, Jr. and Christina O. Hud of the Criminal Division.
The charges and allegations against Monaco are merely accusations, and he is presumed innocent unless and until proven guilty.
Martinsburg man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Damian Lovett, of Martinsburg, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Lovett, 39, pleaded guilty today to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine Base and Cocaine Hydrochloride.” Lovett admitted to working with others to distribute cocaine base, also known as “crack,” and cocaine hydrochloride, also known as “coke,” from November 2020 to March 2021 in Berkeley County and elsewhere.
Lovett faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The FBI; the United States Marshals Service; the Department of Homeland Security; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the West Virginia Air National Guard; the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police; and the Washington County, Maryland, Narcotics Task Force investigated.
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.
U.S. Magistrate Judge Robert W. Trumble presided.
Martinsburg man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Ryan Ramney, of Martinsburg, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Ramney, 38, pleaded guilty today to one count of “Possession with Intent to Distribute Cocaine Hydrochloride.” Ramney admitted to having cocaine hydrochloride, also known as “coke,” in July 2021 in Berkeley County.
Ramney faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Eleanor F. Hurney is prosecuting the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, and the Department of Homeland Security investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Maple Valley, Washington, man sentenced to 10 years in prison for dealing drugs and illegally possessing firearmsRead the Press Release
Seattle – A Maple Valley, Washington, man was sentenced today in U.S. District Court in Seattle to 10 years in prison and 5 years of supervised release for Possession with Intent to Distribute Methamphetamine and Heroin. Daryl Brandon Dennis, 33, was arrested in July 2021, following a 6-month investigation by the King County Sheriff’s Office. At today’s sentencing hearing, U.S. District Judge Richard A. Jones noted the harm Dennis’ drug dealing did to the community saying, “the large volume of drugs” he possessed has an “impact on a large number of lives” and that Dennis has no idea who is harmed once he “put the drugs into the stream.”
“Sadly, fentanyl-involved deaths more than doubled in King County from 2020 to 2021. That troubling statistic highlights the importance of stopping the trafficking of these deadly drugs,” said U.S. Attorney Nick Brown. “Mr. Dennis’ storage trailer contained thousands of fentanyl pills, heroin, meth and cocaine, as well as a dozen firearms – four of them stolen. A dangerous combination for our community.”
According to records filed in the case, Dennis’ drug dealing came to the attention of King County Sheriff’s deputies in January 2021. For the next few months, detectives surveilled Dennis and arranged some undercover purchases. On July 2, 2021, investigators searched his home and car. Just prior to the court authorized search officers noticed Dennis loading duffel bags into the car – inside investigators found guns and drugs. Dennis led police to his storage trailer in Kent, Washington. Where they found 12 more guns, 2 grenades, and drugs including fentanyl, methamphetamine, heroin, cocaine and crack cocaine, mushrooms, MDMA and prescription narcotics such as Xanax.
“Illegal drugs have touched too many lives in King County,” said Interim Sheriff Patti Cole-Tindall. “I could not be more proud to lead the men and women of the Sheriff’s Office. Together, we share a commitment to make communities throughout our region safer.”
Dennis was indicted federally in September 2021. He pleaded guilty in November 2021.
The case was investigated by the King County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
King County Sheriff's Office Drugs and guns seized in U.S. v. DennisManchester Man Pleads Guilty to Methamphetamine Trafficking and Firearm ChargesRead the Press Release
CONCORD - Patrick R. Baker, 32, of Manchester, pleaded guilty in federal court to possession of methamphetamine with intent to distribute and possession of a firearm in furtherance of drug trafficking, United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on February 23, 2020, Hooksett police officers were surveilling a local motel generally associated with drug use and distribution. After an encounter with Baker, additional investigation revealed that Baker’s girlfriend was the subject of several outstanding warrants and was likely inside the motel with Baker. Officers went to the motel room and located Baker and his girlfriend. Baker was located in the bathroom where officers observed evidence of drug use in plain view. The room was secured and officers obtained a search warrant. While executing the warrant, officers seized Baker’s wallet and ID as well as a backpack belonging to Baker which contained a ledger consistent with drug activity, $1,951 in cash, a loaded 9mm handgun, and various baggies containing 112 grams of methamphetamine.
Baker is scheduled to be sentenced on June 22, 2022. In addition to his sentence, Baker will forfeit $1,951 in cash and the handgun.
“Armed drug traffickers pose a substantial threat to our community,” said U.S. Attorney Farley. “By selling a dangerous and addictive drug while armed, this defendant’s actions endangered public health and safety. We are working closely with our law enforcement partners to prevent violent crime by holding armed drug dealers responsible for their dangerous and illegal conduct.”
This matter was investigated by the Hooksett Police Department. The case is being prosecuted by Assistant U.S. Attorney Joachim H. Barth. The forfeiture portion of the case is being handled by Assistant U.S. Attorney Robert Rabuck.
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Man Sentenced for Hurling Molotov Cocktail at Newark Planned ParenthoodRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that 20-year-old Samuel Gulick, of Middletown, was sentenced in federal court yesterday for crimes associated with fire-bombing a Planned Parenthood facility in Newark, Delaware in January 2020. U.S. District Judge Leonard P. Stark imposed a sentence of 26 months in prison, to be followed by three (3) years of supervised release. While under court supervision, the defendant will participate in a structured mental-health treatment plan in a controlled environment. This sentence was a joint request from the parties, and is based on a threat assessment performed by the FBI’s Behavioral Analysis Unit (BAU).
According to court documents and statements made in open court, at approximately 2:16 a.m., on January 3, 2020, Samuel Gulick drove to the Planned Parenthood facility in Newark, Delaware. Video surveillance captured Gulick standing on the front porch of the building and spray-painting the phrase “Deus Vult” – Latin for “God Wills” – in red letters. Gulick then stepped off the front porch, lit an object and threw it at the front window. The object, a Molotov Cocktail, exploded and Gulick ran away. The fire burned for approximately one minute before self-extinguishing; the front window and porch of the building were damaged.
Law enforcement arrested Gulick the following day. At the time, Gulick was still in high school. Shortly after his arrest, the FBI’s BAU performed a comprehensive threat assessment of the defendant. This included a review of his prior psychological and medical records, an independent diagnosis by a clinical forensic psychologist, and an extended in-person interview. Based on this data, BAU opined that an extended period of incarceration could entrench the defendant’s mindset, without providing him with the skills needed to change his life.
Thereafter, the U.S. Attorney’s Office worked with the BAU, defense counsel, U.S. Probation, and a nationally-renowned behavioral analyst to craft a long-term treatment plan to address the defendant’s medical, developmental, and behavioral needs. The defendant will adhere to this plan for three years and be under court supervision. For the first year, the defendant will be housed at a Residential Reentry Center – a facility that will enable him to participate in therapy sessions in a secure environment. Thereafter, if he makes appropriate progress, Gulick will be released to a less restrictive setting.
In announcing the sentence, U.S. Attorney Weiss stated, “This was an egregious crime. I applaud the investigative efforts of local, state, and federal law enforcement who worked quickly to identify and bring Mr. Gulick to justice. But this was a team effort in more ways than one. I also want to thank the mental health and behavioral science professionals – including those in FBI’s BAU – for the hard work and many hours they devoted to this case.”
“My appreciation goes out to the multiple law enforcement agencies who quickly worked together to identify and arrest Mr. Gulick. In only a few hours following his attack, investigative operations were successful, ensuring Mr. Gulick would not pose a further threat to the citizens of Delaware.” said SAC Thomas J. Sobocinski. “Today’s sentencing should serve as a deterrence to others who use violence to discourage women from receiving lawful services those facilities provide.”
“Attacking and terrorizing law-abiding citizens to achieve personal political goals is a heinous act, one which ATF and our law enforcement partners will not tolerate,” said ATF Acting Special Agent in Charge L.C Cheeks, Jr. “We are grateful that no one was injured as a result of this defendant’s criminal actions and that the hard work of investigators’ efforts has resulted in him being held accountable for them.”
The FBI Baltimore Division's Wilmington Resident Agency investigated the matter with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, Delaware State Police, Newark Police Department, Delaware State Fire Marshal’s Office, New Castle County Police Department and University of Delaware Police. Assistant U.S. Attorneys Shawn A. Weede and Ruth Mandelbaum prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 21-cr-01.
Man Charged with Federal Gun Crime in Connection with Death of ChildRead the Press Release
SAN ANTONIO – Yesterday, Joshua Christopher Ramirez, 32, of San Antonio was arrested in San Antonio on criminal charges related to allegations that a gun he possessed was used to kill a two-year-old child.
According to court documents, on February 18, 2022, San Antonio police officers responded to a 911 call regarding the shooting of a two-year-old female. Officers found the child with a single gunshot to the head. The child was transported to the hospital where she eventually died. During the investigation, it was reported the child had shot herself with a gun owned by Ramirez who was the boyfriend of the victim’s mother. During a search of Ramirez’ residence, a duffel bag was found that contained a Glock Model 35, .40 caliber handgun. Ramirez had a previous felony conviction and cannot legally possess a firearm.
Ramirez is charged by a federal criminal complaint with being a Felon in Possession of a Firearm. If convicted, Ramirez faces up to 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Fred J. Milanowski, Houston Division, made the announcement.
The ATF is investigating the case.
Assistant U.S. Attorney Brian M. Nowinski 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.
A criminal complaint 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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Mahoning County Man Charged with Sexual Exploitation of a MinorRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that a federal grand jury returned a two-count indictment charging Joseph Andrew Garchar, 36, of Lowellville, Ohio, with sexual exploitation of a child.
According to the indictment, in April and October of 2021, the defendant is accused of engaging in sexually explicit conduct with a minor for the purpose of producing child pornography.
Acting U.S. Attorney Michelle M. Baeppler and FBI Special Agent in Charge Eric B. Smith made the announcement.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it is the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
The case was investigated by the Youngstown Field Office of the Federal Bureau of Investigation and the Mahoning Valley Violent Crimes Task Force. This case is being prosecuted by Assistant U.S. Attorney Michael A. Sullivan.
Luzerne County Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Thomas Evanchik, age 41, formerly of Kingston, Pennsylvania, pleaded guilty on March 9, 2022, before U.S. District Court Judge Robert D. Mariani, to the charge of conspiracy to distribute more than 40 grams of fentanyl.
According to United States Attorney John C. Gurganus, Evanchik admitted to conspiring with other individuals to distribute, and possess with intent to distribute, between 160 and 280 grams of fentanyl in the Luzerne County area in 2020. Judge Mariani ordered that a presentence report be completed for Evanchik. Sentencing will be scheduled at a later date.
This matter was investigated by the Bureau of Alcohol, Tobacco and Firearms (ATF), the Kingston Police Department, the Luzerne County Drug Task Force, and the Pennsylvania State Police. Assistant United States Attorney Robert J. O’Hara 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.
Evanchik faces a mandatory minimum 5-year imprisonment term. The maximum sentence under federal law is up to 40 years’ imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Louisiana Man Convicted of Traveling Across State Line to Engage in Sex with a MinorRead the Press Release
Oxford, MS – A federal jury convicted a Louisiana man this week of traveling from one state to another with the intent to engage in sexual conduct with a minor.
According to court documents and evidence presented at trial, Ronald Joseph Latiolais, III, age 26, met a Mississippi teen online and drove from Louisiana to Mississippi to meet the 13-year old in April of 2019. Despite knowing she was underage, Latiolais went to the teen’s house during the night, cut the screen on the minor’s bedroom window, and escaped with the teen. Latiolais admitted to committing sexual acts on the minor during a stop on the drive from Mississippi to Louisiana. The jury considered the testimony of the minor and her parents, as well as a Special Agent from the FBI and a Special Agent with the Mississippi Bureau of Investigation. Latiolais was found guilty of transporting a minor in interstate commerce with the intent to engage in unlawful sexual activity. He will be sentenced by Judge Michael P. Mills in June of 2022.
U.S. Attorney Clay Joyner of the Northern District of Mississippi; and FBI Special Agent in Charge Jermicha Fomby made the announcement concerning the jury’s guilty verdict.
The FBI and MBI investigated the case with assistance from local law enforcement agencies.
Assistant U.S. Attorneys Parker Kline and Julie Addison are prosecuting the case.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Jan Sharp announced that Enrique Steven Abarca, 26, of Lincoln, Nebraska, was sentenced today to 27 years for conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine mixture with two prior serious drug felonies by United States District Judge John M. Gerrard. Following his release from prison, Abarca will serve 10 years on supervised release. There is no parole in the federal system.
Abarca was convicted of the conspiracy charge by a federal jury in December of 2021 after a four-day trial. He was held responsible for the distribution of more than 10 kilograms (11 pounds) of methamphetamine mixture in the Lincoln area between May and August of 2019.
Abarca had prior felony convictions for delivery of methamphetamine for which he received a sentence of one to three years from Platte County, Nebraska in 2016 and conspiracy to deliver cocaine for which he was sentenced to two years in prison from Dodge County, Nebraska in 2017. As a result of these two prior convictions for serious drug felonies, he faced a statutory minimum sentence of 25 years.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force with assistance from the Saline County Sheriff’s Office.
Leader of Violent Gang on Staten Island Indicted for Murder in-Aid-of RacketeeringRead the Press Release
A superseding indictment was filed today in federal court in Brooklyn charging John Pena, also known as “Tragedy,” “Don Tragg,” “Last Don” and “Money Baggz,” with murder in-aid-of-racketeering for the March 10, 2021 murder of Mark Bajandas on Staten Island. The superseding indictment also charges Pena with causing death through use of a firearm, being a felon in possession of ammunition, and conspiring to distribute and possess with intent to distribute marijuana and crack cocaine. Pena was previously arrested in June 2021 on an indictment charging him with being a felon in possession of ammunition related to Bajandas’s murder and he was ordered detained in federal custody pending trial. Pena will be arraigned at a later date.
Breon Peace, United States Attorney for the Eastern District of New York and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the charges.
“As alleged, the defendant, a leader of a violent street gang, unleashed a barrage of gunfire on a public street, killing the victim and placing our community in grave danger,” stated United States Attorney Peace. “This Office, working closely with our federal and local law enforcement partners, is relentlessly pursuing gang members who terrorize our neighborhoods with senseless acts of gun violence, and we will not rest until this threat is neutralized.”
Mr. Peace expressed his appreciation to the Richmond County District Attorney’s Office for its assistance on the investigation.
“As alleged, Pena murdered a perceived rival, who sustained 18 gunshot wounds in the attack,” stated FBI Assistant Director-in-Charge Driscoll. “His apparent lack of respect for the sanctity of human life will now be met with appropriate consequences imposed by the federal criminal justice system. Along with our NYPD partners, we will continue to be relentless in addressing the scourge of gang and gun violence that plagues our city.”
“The elimination of violent streets gangs is an absolute precondition to the sustainable prosperity and justice that New Yorkers deserve,” stated NYPD Commissioner Sewell. “Everyone has a right to live in peace and safety. But gang activity – particularly the carrying and indiscriminate shooting of illegal guns on our streets – injects fear into the daily lives of people in our communities. The NYPD, in close partnership with the FBI and the U.S. Attorney for the Eastern District, will continue to use every tool at our disposal to identify, arrest, and hold accountable these criminals.”
As alleged in the superseding indictment, the Gorilla Stone Mafia (or “GSM”) is a subgroup of the Untouchable Gorilla Stone Nation, which is a faction of the nationwide Bloods street gang comprised primarily of individuals residing in and around the Stapleton neighborhood of Staten Island. Members of GSM use intimidation, threats of violence and acts of violence, including murder, robbery and assault, to preserve and protect GSM’s power, territory, and criminal ventures, and to expand the GSM’s criminal operations. They use drug trafficking, gun trafficking, robbery, fraud and trafficking in stolen identities as means of obtaining money.
According to court filings, Pena was the leader of the Gorilla Stone Mafia. In the early morning hours of March 10, 2021, Pena fired multiple gunshots from close range at Bajandas, a former GSM associate and perceived rival, killing him. Bajandas suffered at least 18 gunshot wounds to his upper torso and extremities. The murder occurred after Pena and Bajandas had attended a memorial earlier in the evening to commemorate the death of Avanti Brock, a former GSM member who was murdered approximately one year earlier.
If convicted, Pena faces a mandatory sentence of life in prison.
The charges in the superseding indictment are allegations and the defendant is presumed innocent unless and until proven guilty.
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. As part of the program, U.S. Attorney’s Offices work in partnership with federal, state, local, and tribal law enforcement and their local communities to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Saritha Komatireddy, Matthew R. Galeotti, Tara B. McGrath, and Garen Marshall are in charge of the prosecution.
The Defendant:
JOHN PENA
Age: 31
Staten Island, New YorkE.D.N.Y. Docket No. 21-CR-176 (S-1) (AMD)
Law Enforcement Operation Results in 25 Arrests for Drug-trafficking Conspiracy, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – An investigation into an armed and violent drug-trafficking organization led to the arrests of 25 Kansas City, Missouri, area residents this week in an operation that involved more than 200 law enforcement officers from multiple local and federal agencies.
“This operation removed a large number of armed and dangerous drug dealers from the streets of our community,” said U.S. Attorney Teresa Moore. “After a nearly year-long investigation, our law enforcement partners worked together to take down a significant drug-trafficking organization and reduce the threat of violent crime in our neighborhoods.”
The operation resulted in 21 arrests on Wednesday, March 9, and four arrests on Tuesday, March 8. Officers seized 27 firearms, 1,877 rounds of ammunition, more than 11.1 kilograms of marijuana, 300.9 grams of cocaine, 278.91 grams of other illegal drugs, and $34,439 in cash. Additional seizures are still in the process of being logged into evidence.
More than 200 law enforcement officers were involved in the operation from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the U.S. Marshals Service, the Kansas City, Mo., Police Department and the Independence, Mo., Police Department.
“This operation sends a very clear message to those using firearms in crime, selling narcotics and terrorizing our neighborhoods,” said Frederic Winston, Special Agent in Charge of ATF’s Kansas City Field Division. “Law enforcement is working together at every level, to hold you accountable for the crimes you commit and the havoc you have brought to our community.”
“We know that violence and drug trafficking go hand in hand,” said Assistant Special Agent in Charge Miles Aley, supervisor of DEA operations in Western Missouri. “Working with our federal and local partners in operations like the one yesterday, DEA is one step closer toward reversing the devastating trends of overdoses and drug-related violence threatening Kansas City.”
Kevin C. Cokes, also known as “Big K” and “Uncle,” 60, Mercedez M. Gardner, also known as “Twin,” 36, November D. Gardner, also known as “October” and “Nuttie,” 23, Idella Gardner, also known as “Lupi,” 34, Delmar L. Hatcher, 51, Nathaniel B. Chapple, 24, Treandre R. Walker, 24, Hazel M. Berymon, 64, Carlton L. Burns, also known as “Pooder,” 24, Christopher J. Hicks-Berry, 35, Kyeir C. Theus, 35, Tony L. Davis, 52, Michael R. Parks, 62, Brian T. Boxly, 45, Parris J. Walker, 27, Jachobette J. Gardner, 42, Reginald L. Mitchem, 42, Eliot E. Cox, 32, Martell C. Cratch, 30, Anthony D. Stuckey, 66, Matthew Rogers, 59, Gloria Hutchinson, 37, Eddie L. Nicholson, Jr., also known as “Junior,” 54, Toneisha R. Blackmon, 29, and Shania N. Bailey, 23, all of Kansas City, Mo., and Deone D. Gardner, also known as “Twin,” 28, of Belton, Mo., were charged in an 86-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on March 1, 2022.
The federal indictment alleges that all 26 defendants have participated in a conspiracy since Jan. 28, 2019, to distribute crack cocaine, fentanyl, cocaine, and marijuana in Jackson County. That indictment was unsealed and made public yesterday following the arrests of most of the defendants.
According to court documents, the Bureau of Alcohol, Tobacco, Firearms and Explosives began investigating an armed drug trafficking organization operating primarily in east Kansas City, Mo., in April 2021. Members are known to sell marijuana, crack cocaine, powder cocaine, purported ecstasy pills, purported Percocet pills (believed to be counterfeit pills made with fentanyl), purported OxyContin pills, carry firearms, and commit acts of violence.
In a motion seeking his detention in federal custody without bond, the government alleges that Cokes is the main supplier for the organization. The motion cites several instances in which various defendants have been stopped by law enforcement officers, while they were in possession of illegal drugs and firearms. In some instances, defendants attempted to flee from officers.
Among the incidents cited in the government’s detention motion are shootings that occurred at 208 Westport Road in Kansas City, Mo., on April 17, 2021, and in the area of 24th Street and Van Brunt in Kansas City, Mo., on Nov. 26, 2019. Three victims were wounded in the early afternoon shooting at Westport, and witnesses described two shooters with AK-style weapons. Numerous shots were fired at the 24th Street shooting but no injuries were reported. A Nissan Pathfinder rental vehicle, which was parked at that location, was struck by gunfire.
In addition to the conspiracy, various defendants are charged in 16 drug-trafficking counts and 57 counts of illegally using a telephone to facilitate the conspiracy.
November Gardner and Deone Gardner were also charged together in one count of possessing firearms in furtherance of drug-trafficking crimes.
November Gardner was also charged in two counts of possessing a firearm in furtherance of a drug-trafficking crime and two counts of being a user of a controlled substance in possession of firearms.
Cokes and Walker were also charged together in one count of conspiracy to possess a firearm in furtherance of a drug-trafficking crime.
Deone Gardner and Theus were also charged in separate counts with being felons in possession of firearms.
November Gardner and Hicks-Berry were charged in one count of aiding and abetting each other in the destruction of a motor vehicle with the intent to endanger the safety of another person and with reckless disregard for the safety of human life. The indictment alleges they destroyed a parked Nissan Pathfinder rental vehicle on Nov. 26, 2021. They are also charged with one count of aiding and abetting each other to use a firearm in relation to that crime.
November Gardner and Burns are also charged together in one count of conspiracy to commit robbery.
Additional Defendants
Two additional defendants were arrested as part of the investigation, but charged separately in federal indictments that also were unsealed yesterday.
John E. Johnson, 29, of Kansas City, Mo., was charged with one count of being a felon in possession of a firearm. John Johnson allegedly was in possession of a Smith and Wesson .40-caliber semi-automatic handgun on Feb. 8, 2022.
Arron L. Hall, 42, of Kansas City, Mo., was charged with three counts of distributing methamphetamine and marijuana from May 5 to June 10, 2021.
The charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, who Eddie L. Nicholson, Jr., also known as “Junior,” 54, se duty is to determine guilt or innocence.
These cases are being prosecuted by Assistant U.S. Attorney Byron H. Black and Special Assistant U.S. Attorney Stephanie C. Bradshaw. They were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kansas City, Mo., Police Department, the Drug Enforcement Administration, the U.S. Marshals Service, the Independence, Mo., Police Department, Missouri State Highway Patrol, the Buchanan County, Mo., Sheriff’s Department, the Johnson County, Kan., Sheriff’s Department and the St. Joseph, Mo., Police Department.
KC Metro Strike Force
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
Law Enforcement Cooperation Between United States and Mexico Leads to Mexican Takedown of Significant Human SmugglersRead the Press Release
PHOENIX, Ariz. – The United States Attorney’s Office for the District of Arizona announced today that extensive bilateral cooperation between the United States and Mexico resulted in Mexico’s Attorney General’s Office, Fiscalía General de la República (FGR), conducting a significant enforcement operation last week to dismantle a prolific transnational human smuggling organization operating in Nogales, Sonora, along the U.S.-Mexico border.
The targeted human smuggling organization is alleged to be responsible for illegally smuggling large numbers of individuals from Mexico, Central America, and South America into the District of Arizona and other locations throughout the United States. The enforcement operation on March 2, 2022 included the execution of six arrest warrants in Mexico for smuggling coordinators: Arturo Tienda-Garcia, aka “Tuercas,” Jose Guadalupe Tienda-Garcia, aka “Pantera,” Gilberto Escalante-Osuna, aka “Mochomo,” Uriel Cruz-Tienda, aka “Quiqui,” Cristal Tolentino-Hernandez, and Alfonso Sotelo-Contreras, aka “Pajaro.”
United States authorities provided assistance to Mexico’s Attorney General’s Office through coordination under Joint Task Force Alpha (JTFA), which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras. The Task Force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, or endanger migrants, pose national security threats, and are involved in organized crime.
To date, the United States Attorney’s Office, District of Arizona, has prosecuted U.S.-based coordinators and operators with alleged ties to the same smuggling organization including Benjamin Gallegos, Amalia Gonzalez-Lara, Sergio Vazquez-Flores, Macario Ulises Barragan-Cisneros, Jaziel Tienda-Ibarra, Daniel Garcia-Salgado, Cesar Bermeo-Diaz, Isamar Chaparro-Vizcarra, and Oswaldo Tienda-Castro. These nine individuals have been convicted of Conspiracy to Transport and Harbor Illegal Aliens for Profit. Additional alleged coordinators for the organization have been indicted by a federal grand jury on alien smuggling charges including Enrique Villalobos-Lopez and Ian Esteban Serrano.
“The Attorney General established Joint Task Force Alpha to address the threat posed by transnational human smuggling networks, and this operation is a prime example of its impact,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “JTFA marshals the investigative and prosecutorial resources of the Department, and its law enforcement partners, to target human smugglers and enhances coordination in transnational law enforcement efforts to better combat these criminal organizations.”
“Border security is less about erecting barriers between nations, and more about increasing cooperation among neighbors,” said Gary Restaino, United States Attorney for the District of Arizona. “This operation is a stellar example of what can be accomplished when U.S. and Mexican authorities work together across the border. For years, these individuals have violated the laws of the United States and Mexico with impunity, and their apprehension will make citizens of both countries safer.”
“HSI-Phoenix is grateful for its collaboration with HSI Mexico City and their partnership with the Government of Mexico. These joint efforts demonstrate the commitment of both of our nations to not let borders be barriers when it comes to confronting the transnational criminal organizations that negatively impact both of our nations,” said Scott Brown, Special Agent in Charge for HSI-Phoenix.
HSI-Nogales led the investigation in the United States, working in concert with United States Border Patrol. Support by HSI-Mexico City, with the assistance of HSI's Transnational Criminal Investigative Unit (TCIU)-Mexico, was critical in providing coordination between United States and Mexican law enforcement agencies. The Department of Justice, including the United States Attorney’s Office for the District of Arizona in Tucson, the Criminal Division’s Human Rights and Special Prosecutions Section, and the Office of International Affairs, provided significant assistance in this matter.
CASE NUMBERS: CR-21-1322-TUC-SHR-BGM (Gallegos)
CR-21-0613-TUC-RCC-JR (Gonzalez-Lara/Vazquez-Flores)
CR-21-2672-TUC-SHR-MSA (Barragan-Cisneros)
CR-21-1882-TUC-JAS-MSA (Tienda-Ibarra)
CR-21-1615-TUC-JAS-MSA (Garcia-Salgado)
CR-21-1245-TUC-JCH-BGM (Bermeo-Diaz)
CR-21-0869-TUC-RCC-BGM (Chaparro-Vizcarra/Serrano)
CR-21-1038-TUC-SHR-LCK (Tienda-Castro)
CR-21-1323-TUC-RM-LCK (Villalobos-Lopez)RELEASE NUMBER: 2022-022_Pollos Hermanos
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Law Enforcement Cooperation Between United States and Mexico Leads to Mexican Takedown of Significant Human SmugglersRead the Press Release
Extensive bilateral cooperation between the United States and Mexico resulted in the Mexico Attorney General’s Office’s “Fiscalía General de la República” (FGR) conducting a significant enforcement operation to dismantle a prolific transnational human smuggling organization operating in Nogales, Sonora, along the U.S.-Mexico border.
The targeted human smuggling organization is alleged to be responsible for illegally smuggling large numbers of individuals from Mexico, Central America and South America into Arizona and other locations throughout the United States. The enforcement operation included the execution of six arrest warrants in Mexico for smuggling coordinators: Arturo Tienda-Garcia aka Tuercas, Jose Guadalupe Tienda-Garcia aka Pantera, Gilberto Escalante-Osuna aka Mochomo, Uriel Cruz-Tienda aka Quiqui, Cristal Tolentino-Hernandez, and Alfonso Sotelo-Contreras aka Pajaro.
“The Attorney General established Joint Task Force Alpha to address the threat posed by transnational human smuggling networks, and this operation is a prime example of its impact,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “JTFA marshals the investigative and prosecutorial resources of the department, and its law enforcement partners, to target human smugglers and enhances coordination in transnational law enforcement efforts to better combat these criminal organizations.”
“Border security is less about erecting barriers between nations, and more about increasing cooperation among neighbors,” said U.S. Attorney Gary Restaino for the District of Arizona. “This operation is a stellar example of what can be accomplished when U.S. and Mexican authorities work together across the border. For years, these individuals have violated the laws of the United States and Mexico with impunity, and their apprehension will make citizens of both countries safer.”
“HSI-Phoenix is grateful for its collaboration with HSI Mexico City and their partnership with the Government of Mexico,” said Special Agent in Charge Scott Brown of HSI-Phoenix. “These joint efforts demonstrate the commitment of both of our nations to not let borders be barriers when it comes to confronting the transnational criminal organizations that negatively impact both of our nations.”
U.S. authorities provided assistance to the Mexico Attorney General’s Office through coordination under Joint Task Force Alpha, which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador and Honduras. The task force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit and endanger migrants, pose national security threats or are involved in organized crime.
The U.S. Attorney’s Office for the District of Arizona has also prosecuted other U.S.-based coordinators and operators with ties to the smuggling organization, including Benjamin Gallegos, Amalia Gonzalez-Lara, Sergio Vazquez-Flores, Macario Ulises Barragan-Cisneros, Jaziel Tienda-Ibarra, Daniel Garcia-Salgado, Cesar Bermeo-Diaz, Isamar Chaparro-Vizcarra and Oswaldo Tienda-Castro. These nine individuals have been convicted of conspiracy to transport and harbor illegal aliens for profit. Additional alleged coordinators for the organization have been indicted by a federal grand jury on alien smuggling charges including Enrique Villalobos-Lopez and Ian Esteban Serrano. For more information on individual cases, see the below case numbers:
CR-21-1322-TUC-SHR-BGM (Gallegos)
CR-21-0613-TUC-RCC-JR (Gonzalez-Lara/Vazquez-Flores)
CR-21-2672-TUC-SHR-MSA (Barragan-Cisneros)
CR-21-1882-TUC-JAS-MSA (Tienda-Ibarra)
CR-21-1615-TUC-JAS-MSA (Garcia-Salgado)
CR-21-1245-TUC-JCH-BGM (Bermeo-Diaz)
CR-21-0869-TUC-RCC-BGM (Chaparro-Vizcarra/Serrano)
CR-21-1038-TUC-SHR-LCK (Tienda-Castro)
CR-21-1323-TUC-RM-LCK (Villalobos-Lopez)
HSI-Nogales led the investigation in the United States, working in concert with the U.S. Border Patrol. Support from HSI-Mexico City, with the assistance of HSI’s Transnational Criminal Investigative Unit (TCIU)-Mexico, was critical in providing coordination between American and Mexican law enforcement agencies. The Justice Department, including the U.S. Attorney’s Office for the District of Arizona in Tucson, the Criminal Division’s Human Rights and Special Prosecutions Section, and the Office of International Affairs, provided significant assistance in this matter.
Las Vegas Police Officer Charged in Casino RobberyRead the Press Release
LAS VEGAS – A Las Vegas Metropolitan Police Department (LVMPD) officer made his initial appearance in federal court today for allegedly robbing a casino.
Caleb Mitchell Rogers (33) was arrested on February 27, 2022. He is charged in a criminal complaint with one count of interference with commerce by robbery and one count of brandishing a firearm during and in relation to a crime of violence. U.S. Magistrate Judge Elayna J. Youchah scheduled a preliminary hearing for March 24, 2022.
According to allegations in the complaint, on February 27, 2022, Rogers entered a Las Vegas casino. He ran toward two employees in the sportsbook area and yelled: “Get away from the money. I’ve got a gun. I will shoot you!” Rogers climbed over the counter and shoved one of the employees to the floor, before grabbing money and placing it into a bag.
Rogers fled when the employees triggered an alarm. As Rogers ran toward the parking garage, a casino security officer tackled him. Rogers drew a revolver and, with his finger on the trigger, threatened: “I’m going to shoot you!” Security officers were able to disarm Rogers and restrain him until LVMPD officers arrived. The officers arrested Rogers and seized his firearm. Checking the revolver’s serial number, officers learned that it belonged to the LVMPD.
The criminal complaint further alleges that: (a) on November 12, 2021, Rogers robbed a casino in the western part of Las Vegas (obtaining approximately $73,810); and (b) on January 6, 2022, he robbed a casino in North Las Vegas (obtaining approximately $11,500).
The statutory maximum penalty is 20 years in prison for interference with commerce by robbery, and life imprisonment for brandishing a firearm during and in relation to a crime of violence.
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 and the LVMPD. Assistant U.S. Attorney Dan Cowhig is prosecuting the case.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Las Vegas Man Pleads Guilty to Committing COVID Relief Fraud While on Pretrial ReleaseRead the Press Release
LAS VEGAS – A Las Vegas man pleaded guilty yesterday to participating in a scheme to defraud the Small Business Administration and a Paycheck Protection Program (PPP) lender while he was on pretrial release, by filing fraudulent loan applications seeking over $100,000 in loans guaranteed by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security Act.
Keyawn Lloyd Cook Jr. (27) pleaded guilty to one count of wire fraud. U.S. District Judge Gloria M. Navarro scheduled sentencing for June 8, 2022. Cook faces a statutory maximum penalty of 30 years in prison.
According to court documents and admissions made in court, Cook — while on pretrial release for an attempted robbery charge — submitted at least five fraudulent loan applications over a 15-month period for Economic Injury Disaster Loan (EIDL) funding and for PPP funding. As part of the fraudulent scheme, Cook submitted loan applications in the names of multiple fake businesses claiming to operate in various industries. Cook falsely claimed to have between nine and 12 employees in applications for EIDL funding and, in his PPP application, he falsely claimed gross revenues of $50,000 by a non-existent barber shop. In fact, these businesses were non-existent and had no such employees or revenue. Cook sought to fraudulently obtain over $100,000 in COVID relief funds for which he was not eligible.
In a separate case, Cook was sentenced yesterday to five years in prison for an attempted robbery of an armored car employee during a delivery to a bank in 2019.
Christopher Chiou, Acting U.S. Attorney for the District of Nevada; W.M. Herrington, Acting Special Agent in Charge of the FBI’s Las Vegas Field Office; Weston King, Special Agent in Charge of the Small Business Administration Office of the Inspector General’s (SBA OIG) Western Region Office; Albert Childress, Special Agent in Charge of the IRS-Criminal Investigation (IRS-CI); and Cory Nootnagel, Acting Special Agent in Charge, Western Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection (FRB-OIG) made the announcement.
This case was investigated by the FBI, SBA OIG, IRS-CI, and FRB-OIG. Assistant U.S. Attorneys Jessica Oliva and Kimberly Frayn are prosecuting the case.
In May 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.
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La Crosse Man Charged with Producing, Distributing & Receiving Child PornographyRead the Press Release
MADISON, WIS. – A La Crosse, Wisconsin man is charged with child exploitation crimes in an indictment returned yesterday by a federal grand jury sitting in Madison. The charges are announced by Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin.
The indictment charges Harry L. Euler, 45, with two counts of producing child pornography, two counts of receiving child pornography, and one count of distributing child pornography. The indictment alleges that these activities took place in May of 2021.
The indictment was unsealed following Euler’s arrest today in La Crosse. Euler made an initial appearance in U.S. District Court in Madison today and remains in federal custody pending a trial date in July.
If convicted, Euler faces a mandatory minimum of 15 years in prison and a maximum penalty of 30 years in prison on each production charge and a mandatory minimum of 5 years in prison and a maximum penalty of 20 years on the other charges. Each charge also carries a mandatory minimum of 5 years and a maximum term of life on supervised release. The charges against him are the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation; U.S. Immigration and Custom Enforcement’s Homeland Security Investigations; and the La Crosse Police Department. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Killeen Man Found Guilty of Carjacking and Armed RobberiesRead the Press Release
WACO – Today a federal jury convicted Darius Letrayal King, 29, of Killeen for carjacking and armed robberies of area Killeen stores.
According to court documents and evidence presented at trial, King, along with his codefendant Corey Labon Jackson, 51, of Killeen committed armed robberies in January 2020 of a 7-Eleven and a Family Dollar store. King drove Jackson to the stores and Jackson robbed the stores at gun point. On January 3, 2020, King also committed carjacking, taking a vehicle at gunpoint from an acquaintance.
King was found guilty of one count of Carjacking; three counts of Brandishing a Firearm During the Commission of a Crime of Violence; two counts of Interference with Commerce by Robbery; and one count of Possession of a Firearm by a Convicted Felon. King faces up to 15 years in prison on the Carjacking count; a mandatory seven-year sentence to run consecutive to any other sentence received on each of the Brandishing of a Firearm counts; up to 20 years in prison on the Interference with Commerce counts; and up to 10 years in prison on the Possession of a Firearm by a Convicted Felon count.
On February 22, 2022, Jackson pleaded guilty to one count of Interference with Commerce by Robbery and one count of Brandishing a Firearm During the Commission of a Crime of Violence. Jackson faces up to 20 years in prison on the Interference with Commerce count and a mandatory seven-year sentence to run consecutive on any other sentence for the Brandishing of a Firearm count.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and FBI Acting Special Agent in Charge Jason Hudson made the announcement.
The FBI, with invaluable assistance from the Temple Police Department and the Killeen Police Department’s Violent Crime Unit, is investigating the case.
Assistant U.S. Attorney Mark Frazier 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.
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KC Man Sentenced for Shooting Female Z-Trip Driver 26 Times During RobberyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man has been sentenced in federal court for the armed robbery of a female Z-Trip driver whom he shot approximately 26 times with a rifle from the back seat.
Derron D. Nevels, 21, was sentenced by U.S. District Judge Howard F. Sachs on Wednesday, March 9, to 13 years in federal prison without parole.
On Aug. 27, 2021, Nevels pleaded guilty to one count of robbery and one count of discharging a firearm during a violent crime.
Nevels was picked up by a Z-Trip driver on Wabash Avenue in Kansas City, Mo., on the evening of Dec. 4, 2018. The Z-Trip taxi in which the crime was committed is equipped with interior and exterior cameras. The cameras show Nevels getting into the rear passenger seat at approximately 8 p.m. The Z-Trip driver took him to Benton Avenue in Kansas City, Mo.
When they arrived at the destination, they waited in the vehicle for somebody to bring out the fare. When a second suspect approached the vehicle, Nevels held a Smith and Wesson Military & Police .22-caliber rifle up to the victim’s head and demanded she give him everything. The victim attempted to explain that Nevels was being recorded, to which Nevels responded, “I don’t care; give me everything.” Nevels also appeared to be taking a photo or video with his cell phone.
The victim turned toward the back seat and grabbed onto the rifle, and a struggle ensued. The second suspect hit the victim in the face, then reached around the driver’s seat and began striking the victim in the back and the back of the victim’s head. The victim released Nevels’ rifle and then Nevels leaned back in his seat, chambered a live round, and opened fire on the victim from close range. Nevels fired approximately 26 times into the victim. Nevels and his accomplice then ran from the scene.
About 10 minutes later, Nevels and another suspect returned to the victim’s vehicle to retrieve a cell phone Nevels had left behind when he fled from the scene of the earlier robbery and assault. Nevels can be heard on the Z-Trip vehicle’s video asking the victim if she is okay. The victim indicates she has been shot. Nevels asked the victim if she had called the police. He got into the rear driver’s side of the taxi and picked up the cell phone, then left the scene.
When police officers arrived, the victim was transported to an area hospital in critical condition. According to court documents, she continues to suffer from her serious and debilitating injuries inflicted by Nevels.
Investigators used cell phone and Facebook data to identify Nevels and the distinctive rifle he used in the robbery. On Dec. 10, 2018, Nevels was seen getting onto a bus near Prospect Avenue and Swope Parkway. Nevels was arrested when he got off the bus at 11th Street and Grand Avenue. Nevels was carrying the loaded rifle hidden in his waistband with the barrel going down his right pant leg. The rifle was later positively identified as the weapon used to shoot the Z-Trip driver during the robbery.
Co-defendants Bailee Anna Maria Prieto, 21, of Kansas City, Kansas, and Melani Yitzel Collazo Jimenez, also known as “Mel,” 24, of Kansas City, Mo., have each pleaded guilty to being accessories after the fact to the robbery. Prieto was sentenced on Nov. 23, 2021, to three years in federal prison without parole. Jimenez was sentenced on Nov. 18, 2021, to two years and six months in federal prison without parole.
Prieto used or allowed her phone to be used to order the Z-Trip that was robbed. Prieto disposed of her phone after the robbery to avoid the police searching it.
Jimenez went to the scene to help Nevels retrieve his telephone from the Z-Trip where he left it after the robbery and shooting. Jimenez provided her apartment for Nevels, Prieto, and others to stay the night after the robbery.
Neither Prieto nor Jimenez reported anything to law enforcement. The two of them communicated with and were associated with Nevels and others, before, during, and after the robbery and shooting.
This case was prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Justice Department and Federal Trade Commission to Hold Joint Spring Enforcers SummitRead the Press Release
The Justice Department’s Antitrust Division and the Federal Trade Commission (FTC) will cohost a Spring Enforcers Summit on April 4. Assistant Attorney General Jonathan Kanter and FTC Chair Lina M. Khan, as well as senior staff from both agencies, will facilitate discussions on modernizing merger guidelines and interagency collaboration. The summit will be held in a hybrid format, with international enforcers and state Attorneys General participating both in-person and virtually. Throughout the day, the agencies will livestream several panel discussions and interviews to the public. The Enforcers Summit agenda and viewing instructions are available at https://www.justice.gov/atr/events/spring-2022-enforcers-summit.
“This summit provides a great opportunity for enforcers across the country and world to gather together and learn from each other,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Hearing from our international and state counterparts will help us to ensure that our enforcement practices and guidelines reflect modern market realities.”
“Mounting evidence of high concentration across markets and a variety of consequent harms have prompted a broad reassessment of our antitrust enforcement tools and frameworks,” said FTC Chair Lina M. Khan. “As we seek to update our approach to match economic realities, learning from and collaborating with our state and international enforcement partners will best equip us to tackle challenges and chart the right path ahead.”
The Enforcers Summit will include conversations about merger enforcement as well as discussions on how to work with industry regulators as part of a whole of government approach to competition policy. These discussions will inform the agencies’ joint public inquiry on modernizing merger guidelines. As the Antitrust Division and FTC work to revise their joint merger guidelines, the agencies are encouraging input from a wide range of stakeholders and are holding listening sessions throughout the spring to hear from members of the public. This summit will provide a valuable opportunity to gather both international and domestic perspectives on how U.S. merger reform can help us meet the challenges and realities of the modern economy.
Justice Department Announces Director for COVID-19 Fraud EnforcementRead the Press Release
Today, the Justice Department announced the appointment of a Director for COVID-19 Fraud Enforcement to lead the department’s criminal and civil enforcement efforts to combat COVID-19 related fraud, along with the latest results of criminal and civil enforcement actions that include alleged fraud related to over $8 billion in pandemic relief.
Effective immediately, Associate Deputy Attorney General Kevin Chambers will serve as the Director for COVID-19 Fraud Enforcement. Mr. Chambers will lead Justice Department efforts that to date have resulted in criminal charges against over 1,000 defendants with alleged losses exceeding $1.1 billion; the seizure of over $1 billion in Economic Injury Disaster Loan proceeds; and over 240 civil investigations into more than 1,800 individuals and entities for alleged misconduct in connection with pandemic relief loans totaling more than $6 billion.
“The Justice Department remains committed to using every available federal tool — including criminal, civil, and administrative actions — to combat and prevent COVID-19 related fraud,” said Attorney General Merrick B. Garland. “We will continue to hold accountable those who seek to exploit the pandemic for personal gain, to protect vulnerable populations, and to safeguard the integrity of taxpayer-funded programs.”
“As our thousands of COVID-19 fraud investigations demonstrate, our message to those who seek to line their own pockets and benefit from the suffering of so many Americans is: your crimes are not and will not be forgotten,” said Deputy Attorney General Lisa O. Monaco.
“I look forward to this new role and to supporting the excellent work of the department’s prosecutors and trial attorneys since the very beginning of the pandemic,” said Mr. Chambers. “We are receiving an extraordinary amount of data from our state workforce agency partners. This data holds the key to identifying and prosecuting certain types of fraud, including unemployment insurance fraud. Our Strike Teams will enhance the department’s existing efforts and will include analysts and data scientists to review data, agents to investigate the cases, and prosecutors and trial attorneys to bring charges and try the cases. Again, this is on top of the great work our folks in the field are already doing.”
Mr. Chambers plans to focus on large-scale criminal enterprises and foreign actors who sought to profit at the expense of the American people. This will include establishing Strike Teams to prepare for the next phase in the Justice Department’s efforts to fight pandemic fraud.
In March 2020, Congress passed a $2.2 trillion economic relief bill known as the Coronavirus Aid, Relief, and Economic Security (CARES) Act designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. Anticipating the need to protect the integrity of these taxpayer funds and to otherwise protect Americans from fraud related to the COVID-19 pandemic, the Department of Justice immediately stood up multiple efforts dedicated to identifying, investigating, and prosecuting such fraud. Leveraging data analysis capabilities and partnerships developed through its vast experience combatting economic crime and fraud on government programs, the Justice Department’s response to COVID-19 related fraud serves as a model for proactive, high-impact white-collar crime enforcement, and demonstrates our agility in responding to new and emerging threats. This rapid and nationwide response enabled the Justice Department to quickly ensure accountability for wrongdoing and sent a forceful message of deterrence during an ongoing crisis. The multifaceted and multi-district approach to enforcement during this national health emergency continues and is expected to yield numerous additional criminal and civil enforcement actions in the coming months.
In May 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.
The Justice Department’s efforts to combat COVID-19 related fraud schemes have proceeded on numerous fronts, including cases and investigations involving the Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL) program, Unemployment Insurance (UI) programs, and COVID-19 health care fraud enforcement.
These cases involve the Criminal Division’s Fraud Section, U.S. Attorneys’ Offices across the United States, and the department’s Civil Division. They reflect a degree of reach, coordination, and expertise that is critical for enforcement efforts against COVID-19 related fraud to have a meaningful impact and is also emblematic of the Justice Department’s response to criminal wrongdoing.
Prominent among the department’s efforts have been cases involving PPP and EIDL fraud. Across the department, including the Criminal Division’s Fraud Section and U.S. Attorneys' Offices, approximately 500 defendants have been charged in over 340 cases with alleged intended losses of over $700 million.
Relatedly, the department has seized over $1 billion in EIDL loan proceeds, primarily through the work of the U.S. Attorney’s Office for the District of Colorado and their partners at the U.S. Secret Service.
Due to the COVID-19 pandemic, up to $860 billion in federal funds have been appropriated for UI benefits through September 2021. Early investigation and analysis indicate that international organized criminal groups have targeted these funds by using stolen identities to file for UI benefits. Domestic criminals, ranging from identity thieves to violent street gangs to prison inmates, have also committed UI fraud. In response, the department established the National Unemployment Insurance Fraud Task Force, a prosecutor-led, multi-agency task force with representatives from more than eight different federal law enforcement agencies to coordinate those efforts. U.S. Attorneys’ Offices around the country have worked with law enforcement partners to investigate and arrest those responsible for committing UI fraud. Since the start of the pandemic, over 430 defendants have been charged and arrested for federal offenses related to UI fraud.
The unprecedented pace and tempo of these efforts is made possible only through the diligent work of a wide range of Justice Department partners, including the Criminal Division’s Fraud Section and Money Laundering and Asset Recovery Section, the Civil Division’s Commercial Litigation Branch (Fraud Section) and Consumer Protection Branch, U.S. Attorneys’ Offices throughout the country, and law enforcement partners from the FBI; U.S. Secret Service; IRS-Criminal Investigation; Defense Criminal Investigative Service; Homeland Security Investigations; U.S. Postal Inspection Service; the Offices of Inspectors General from the Small Business Administration, Department of Labor, Department of Homeland Security, Social Security Administration, Federal Deposit Insurance Corporation, Department of Health and Human Services, Department of Veterans Affairs, Federal Housing Finance Agency and Federal Reserve Board; Food and Drug Administration’s Office of Criminal Investigations; Treasury Inspector General for Tax Administration; Financial Crimes Enforcement Network; Special Inspector General for Pandemic Relief; Pandemic Response Accountability Committee; OCDETF Fusion Center and OCDETF’s International Organized Crime Intelligence and Operations Center.
For further information on the Criminal Division’s enforcement efforts on PPP fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/ppp-fraud. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. For further information on the Civil Division’s enforcement efforts, visit the following website: https://www.justice.gov/civil.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
*The subheadline has been updated to reflect a change from $7 billion to $8 billion in pandemic relief. (March 10, 2022)
Jury Convicts Armed Drug Trafficker Caught in Nash County OperationRead the Press Release
ELIZABETH CITY, N.C. – A federal jury convicted an Orangeburg, South Carolina man on Tuesday on charges of distribution of heroin and fentanyl, along with associated firearms violations including possession of a firearm in furtherance of a drug trafficking crime and possession of a firearm by a convicted felon.
According to court records and evidence presented at trial, Anthony Cyquan Herring, 40, was stopped by Nash County Sheriff Keith Stone on I-95 southbound for speeding. Sheriff Stone smelled marijuana coming from the SUV, which other Deputies confirmed. The ensuing search of Herring’s SUV resulted in Deputies finding over thirty-six grams of heroin and fentanyl, fifty grams of cocaine, marijuana, distribution paraphernalia, $2,200.00 cash, and a loaded firearm. Deputies discovered Herring’s young children in the back of the SUV, sleeping and urinating in bottles as their dad drove through the night from Connecticut on the way to Myrtle Beach, South Carolina.
Herring faces a guideline range of 360 months to life imprisonment when sentenced in June 2022.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Terrence W. Boyle accepted the verdict. The Nash County Sheriff’s Office investigated the case and Assistant U.S. Attorney J.D. Koesters and Special Assistant United States Attorney Tyler Lemons is prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.5:20-cr-00347-BO-1.
Judge sentences Webster Groves man to 10 years in federal prison for receipt of child pornographyRead the Press Release
ST. LOUIS – Jonathan Wells, age 39, of Webster Groves, Missouri, appeared before United States District Court Judge Stephen R. Clark on today’s date. Based on a previous plea of guilty, Wells was sentenced to 10 years in federal prison for the receipt of child pornography followed by a lifetime of supervised release and a $5000.00 assessment to the Justice for Victims of Trafficking fund.
According to court documents, on or about November 29, 2019, and January 4, 2020, Wells uploaded from the internet, ninety-four (94) image files of child pornography to an editing software program called "Adobe."
Adobe Systems Inc. reported Well's download of child pornography to the National Center for Missing and Exploited Children on or about December 2, 2019, and January 6, 2020. Law enforcement obtained a search warrant for Well’s residence and determined that Wells possessed numerous items of child sexual abuse material that he had downloaded from the internet. Specifically, Wells possessed over twenty-three thousand (23,000) images of child pornography on his Lenovo Tower computer that had been downloaded from the internet.
This case was investigated by the Saint Louis County Police Department and the Federal Bureau of Investigation.
Judge sentences St. Louis man to 10 years in federal prison for possession of child pornographyRead the Press Release
ST. LOUIS – David Whitener, age 30, of St. Louis, Missouri, appeared before United States District Court Judge Ronnie L. White on today’s date. Based on a previous plea of guilty, Whitener was sentenced to 10 years in federal prison for possession of child pornography as a prior offender to be followed by a lifetime of supervised release.
According to court documents, Whitener was convicted in 2016, in the Circuit Court of St. Louis for promoting child pornography and possession of child pornography and was sentenced to five (5) years in the Missouri Department of Corrections. On or about September 23, 2019, Whitener uploaded via the internet ten (10) videos and seven (7) images depicting child sexual abuse to a social media application.
Law enforcement executed a search warrant at the residence of Whitener, located in the City of St. Louis. The search revealed Whitener to have possessed a cellular telephone that contained seventeen (17) videos and hundreds of images of child sexual abuse depicting child pornography involving minors. Whitener also possessed a Dropbox internet-based cloud storage account in which he knowingly stored and possessed forty-five (45) videos and twenty-one (21) images of child pornography.
This case was investigated by Homeland Security Investigations.
Judge sentences St. Louis County man for robbery and weapon violationsRead the Press Release
ST. LOUIS – Collis Lee, age 25, of St. Louis County, Missouri, appeared before United States District Court Judge Henry E. Autrey on today’s date. Based on a previous plea of guilty, Lee was sentenced to 135 months in federal prison for the armed robbery of O’Reilly Auto Parts store in Jennings, Missouri.
According to the plea agreement, Lee and a co-defendant entered the O’Reilly Auto Parts store on Jennings Station Road on December 5, 2020, with guns and announced a robbery. With the robbers’ attention on the two employees, an O’Reilly’s customer fled the store, went to an adjacent store, and asked employees there to call 911. Meanwhile, Lee and his co-defendant proceeded to force the clerks to open as many cash registers as they could. During the robbery, Lee pistol-whipped the clerk several times.
While this was going on, police were responding to the 911 call. Because the St. Louis County SWAT team happened to be on patrol in the area, many police vehicles were nearby, and four police vehicles were in the O’Reilly’s parking lot before Lee even left the store. As Lee entered a getaway car to flee, witnesses began pointing officers to the suspects. With Lee driving the sedan he fled the parking lot while being pursued by police. Lee lost control of the sedan while attempting to make a right hand turn at high speeds. The car drove over the median and t-boned the second car of a three-car funeral convoy. The car into which he crashed was a funeral limousine transporting grieving family members to a funeral home for a funeral service scheduled that morning. Five of the individuals in that limousine were injured in the accident.
This case was investigated by the Saint Louis County Police Department.
Iowa City Man Sentenced to Federal Prison for Marijuana and Firearm ChargeRead the Press Release
DAVENPORT, Iowa – An Iowa City man, Antonio Deshawn Russell, age 35, was sentenced today to 144 months in prison for Possession with Intent to Distribute Marijuana and Prohibited Person in Possession of a Firearm. Following his prison term, Russell was ordered to serve three years of supervised release. He was also ordered to immediately pay a $200 Special Assessment to the Crime Victims’ Fund.
Law enforcement identified Russell in November 2020 when Iowa City Police Officers responded to a shots-fired incident. In December 2020, officers executed a search warrant at Russell’s residence, where they located a nine-millimeter Taurus handgun with an obliterated serial number, 57 grams of marijuana, a digital scale, and two cell phones. The cell phones contained evidence of drug trafficking.
In February 2021, Coralville police were dispatched to a shots-fired incident and Russell was observed fleeing from the location in a vehicle at a high rate of speed. An officer stopped Russell and observed indicia of intoxication on him when he fled again at a high rate of speed. The officer pursued Russell again and observed Russell crash his vehicle into a light pole. Russell threw a loaded and stolen firearm out of the passenger window. Russell was a convicted felon and ineligible to possess firearms.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Iowa City Police Department and the Coralville Police Department investigated the case.
Illinois Woman Sentenced to 21 Months for Bank FraudRead the Press Release
BOISE – An Illinois woman was sentenced to 21 months in federal prison for bank fraud.
According to court records, Abbi L. Sullivan, 22, of Normal, Illinois, traveled to Idaho with at least three co-defendants in May 2020. On May 6, 2020, Sullivan cashed counterfeit checks at two First Interstate Bank branches in the Treasure Valley. The counterfeit checks had the logo and business information for the company accountholder along with a forgery of the account owner’s signature. The checks were payable to Sullivan. Sullivan presented her Illinois identification card to cash the counterfeit checks. Sullivan falsely told the bank teller that she sold some property to the company whose name appeared on the check. In addition to the checks in Idaho, Sullivan traveled with other co-conspirators to other states, including California, Ohio, and Massachusetts, to cash and attempt to cash counterfeit checks.
Senior U.S. District Judge B. Lynn Winmill also ordered Sullivan to serve five years of supervised release following her prison sentence and to pay $20,209.66 in restitution.
Co-defendants Jakara B. Edwards, 24, and Tatyana A. Love, 21, both of Chicago, pleaded guilty on October 19, 2021, to bank fraud. Edwards and Love are scheduled to be sentenced on June 27, 2022.
U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Federal Bureau of Investigation, Ada County Sheriff's Office, Boise Police Department, Garden City Police Department, Meridian Police Department, Nampa Police Department, Chicago Police Department, Ellisville Police Department, Fort Atkinson Police Department, Gahanna Police Department, Johnson Creek Police Department, Montgomery Township Police Department, Normal Police Department, Peoria County Sheriff’s Office, Redwood City Police Department, San Mateo County Sheriff’s Office, Sioux Falls Police Department, Social Security Administration Office of the Inspector General, Stockton Police Department, Waltham Police Department, and the Wellesley Police Department, which led to charges.
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Idaho Falls Man Sentenced to over 10 Years in Federal Prison for Possessing Child PornographyRead the Press Release
POCATELLO – An Idaho Falls man was sentenced to 121 months in federal prison for possession of child pornography.
According to court records, on October 22, 2019, law enforcement received an investigative lead that Robert Neil Curran, 27, was using Twitter to distribute child pornography. The account’s identifying information led law enforcement to Curran’s phone number.
Curran was later arrested by his parole officer for unauthorized access to the internet and was interviewed on November 19, 2019, in relation to his Twitter usage. After waiving his Miranda rights, he admitted to viewing and receiving child pornography on Twitter. Curran possessed over 1,600 images of child pornography.
Chief U.S. District Judge David C. Nye also ordered Curran to serve fifteen years of supervised release following his prison sentence. Curran pleaded guilty to the charges on September 29, 2021.
U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of Homeland Security Investigations in Idaho Falls, the Idaho Internet Crimes Against Children Task Force, and the Idaho Falls Police Department, which led to charges.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Ice Methamphetamine Dealer Sentenced to Thirty Years in Federal PrisonRead the Press Release
ROCK ISLAND, Ill. – A Marshalltown, Iowa, man, Michael James Grommet, 37, was sentenced on March 9, 2022, to 360 months’ imprisonment, to be followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute at least 50 grams of actual methamphetamine.
At the sentencing hearing, the government established that Grommet worked with associates to distribute over seven kilograms of ice methamphetamine in both Illinois and Iowa. The government detailed Grommet’s criminal history, which included over twenty criminal convictions.
Also at the hearing, Chief U.S. District Judge Sara Darrow discussed the seriousness of Grommet’s “major distribution” offense, describing the “extreme physical and mental destruction” methamphetamine has on the community. Judge Darrow stated that Grommet posed “the most severe risk to recidivate” she had seen “in a long time” with “absolutely no regard for other individuals.”
Grommet was convicted following a jury trial in August 2021. Grommet’s co-defendant, Buddy Hal Gunter, who also went to trial, will be sentenced on March 16, 2022.
The statutory penalties for conspiracy to distribute and possess with intent to distribute at least 50 grams of actual methamphetamine are a mandatory minimum term of ten years and up to life in prison, up to a $10 million fine, and at least five years and up to a life term of supervised release.
“As the Court made clear, individuals who make a career out of trafficking highly-addictive, community-devastating drugs will be held accountable,” said Assistant U.S. Attorney Alyssa Raya. “The United States Attorney’s Office and our law enforcement partners will continue to remove these dealers from the streets to keep our communities safe.”
The case investigation was conducted by the Rock Island Police Department, the Iowa Division of Narcotics Enforcement, and the Drug Enforcement Administration, with assistance from the Tri-County Drug Enforcement Task Force and the Bremer County, Iowa, Sheriff’s Office. Assistant U.S. Attorneys Raya and Jennifer Mathew represented the government in the prosecution.
Hyattsville Man Sentenced to Three Years in Federal Prison for Bank Fraud Conspiracy That Intended to Cause a Loss of More Than $4.1 MillionRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Oyekanmi Oworu, age 35, of Hyattsville, Maryland to three years in federal prison, followed by four years of supervised release, for conspiracy to commit bank fraud and aggravated identity theft.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Andrew McKay of the Treasury Inspector General for Tax Administration
According to his guilty plea, between February 2017 and July 2020, Oworu conspired with co-defendant Babtunde Ajibawo, age 55, of Essex, United Kingdom and others to fraudulently obtain checks made out to legitimate businesses, then fraudulently register shell companies to obtain state business certificates in the identical or similar name of the legitimate businesses to which the checks were made payable. The conspiracy also used the Internal Revenue Service’s (IRS) Modernized Internet Employer Identification Number (EIN) online portal and the fraudulently obtained social security numbers of real individuals to obtain an EINs for the fraudulent business.
Specifically, on February 7, 2017, Oworu opened a bank account at a victim financial institution in the name of a real individual and deposited a stolen check made payable to a legitimate business for $265,168.20. Oworu subsequently withdrew the proceeds.
Additionally, on November 20, 2018, Oworu opened a bank account at a victim financial institution in a similar name of a legitimate business using the means and identification of A.S., a real individual. After opening the account, Oworu deposited a stolen check made payable to the legitimate business for $58,713.50.
Further, as detailed in the Superseding Indictment, Oworu and his co-conspirators attempted to conceal their criminal actions and evade law enforcement by relocating the fraud scheme to other jurisdictions. A substantial part of a fraudulent scheme was committed from outside the United States, specifically Nigeria.
In total, Oworu and his co-conspirators intended to cause a loss of at least $4.1 million to victim businesses, caused an actual loss of at least $756,175.30, and compromised the identifying information of more than 50 individual victims.
Co-defendant Ajibawo pled guilty to conspiracy to commit bank fraud and was sentenced to four years of federal prison on December 8, 2021.
United States Attorney Erek L. Barron commended the Treasury Inspector General for Tax Administration for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Mary W. Setzer and Judson T. Mihok, who prosecuted the case.
For more information on fraud and how to report instances of fraud, including identity theft, please visit https://www.justice.gov/usao-md/report-fraud.
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Hooksett Man Receives Prison Sentence for Attempting to Send Obscene Material to a MinorRead the Press Release
CONCORD - Stuart Adams, 61, of Hooksett, was sentenced to 12 months and one day in federal prison for attempted transfer of obscene material to a minor, United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in August, 2020, the Federal Bureau of Investigation (FBI) received information pertaining to a mobile application that allows users to exchange materials over the internet. The information provided that a particular user, later identified as Adams, expressed interest in and was attempting contact with underage females. Adams established contact with an undercover FBI agent (UC) with an online persona portraying a 13-year-old girl. The two maintained contact throughout the month of October 2020.
On October 19, 2020, Adams sent the UC sexually explicit pictures and a video of himself and engaged the UC in a sexually explicit conversation. A federal search warrant was executed at Adams’ home and many electronic devices were seized. Forensic review revealed Adams was engaged in sexually-oriented chats with numerous minor females. Adams denied ever meeting in person anyone he has chatted with online.
Adams previously pleaded guilty on November 23, 2021.
“The defendant’s conduct in this case was appalling,” said U.S. Attorney Farley. “By seeking out young females for sexual conversations and sending explicit photographs to an individual that he believed to be a 13-year girl, the defendant engaged in unacceptable and illegal behavior. Although this case is a painful reminder to parents of the dangers that lurk on the internet, it also demonstrates our ongoing commitment to working with the FBI and our other law enforcement partners to identify and prosecute the predators who seek to use the internet to exploit children.”
“Stuart Adams admitted to sending sexually explicit images of himself to underage girls over the course of several years and while today’s sentence doesn’t erase the harm he inflicted upon his victims, it does hold him accountable for engaging in criminal conduct,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “This case is another example of how easy it is for young people to become victims, and how the FBI’s Child Exploitation-Human Trafficking Task Force will do everything it can to protect them from predators.”
This matter was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Kasey Weiland.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Hollywood Executive Agrees to Plead Guilty to Fraud and Money Laundering Charges for Stealing Money from COVID Relief ProgramRead the Press Release
LOS ANGELES – The former chief executive of Aviron Pictures has agreed to plead guilty to federal fraud and money laundering charges, admitting that he applied for and received $1.7 million in loans under the Paycheck Protection Program (PPP) for Aviron entities when the entire operation was being shuttered as a result of his embezzlement.
In a plea agreement filed today in United States District Court, William Sadleir, 67, of Beverly Hills, agreed to plead guilty to one count of bank fraud and one count of money laundering. Sadleir is scheduled to formally enter the guilty pleas on March 16.
Sadleir filed bank loan applications that fraudulently sought more than $1.7 million dollars in forgivable PPP loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. According to court documents, Sadleir obtained the loans for three Aviron entities by falsely representing that the funds would be used to support payroll expenses for 33 employees at each company, when in fact the entities were no longer operational.
Within days of the loans being funded on May 1, 2020, Sadleir transferred nearly $1 million to his personal checking account.
Sadleir “expended a substantial amount of the fraudulent loan proceeds on utility bills, mortgage expenses, and his personal attorney, among other things,” he admitted in his plea agreement. Sadleir “did not use any of the fraudulent loan proceeds to pay employees of the Aviron companies.”
Following the discovery of the fraudulent loan applications, federal agents seized $308,058 of fraudulent loan proceeds from an Aviron account, and Sadleir returned $1,122,090 to the bank that funded the loans. As a result of the fraudulent PPP loan scheme, the SBA suffered losses of $282,566. In his plea agreement, Sadleir agreed to pay full restitution.
Once he pleads guilty to the two offenses, Sadleir will face a statutory maximum sentence of 50 years in federal prison. Prosecutors have agreed to recommend that whatever sentence is imposed should run concurrent with a sentence to be imposed in a pending case in the Southern District of New York. Sadleir is scheduled to be sentenced in the New York case on May 10 after he pleaded guilty in January to wire fraud for misappropriating more than $25 million that had been invested in Aviron.
The Los Angeles case was investigated by the FBI, the SBA’s Office of Inspector General, and the Federal Deposit Insurance Corporation’s Office of Inspector General.
Assistant United States Attorney Gregory Bernstein of the Major Frauds Section is prosecuting this case.
In May 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 Justice Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Grant County man sentenced for firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – Jeremiah Lincoln Seib, of Petersburg, West Virginia, was sentenced today to five years of probation for a firearms charge, United States Attorney William Ihlenfeld announced.
Seib, 42, pleaded guilty in September 2021 to one count of “Unlawful Possession of a Firearm.” Seib, a person prohibited from having firearms because of a robbery conviction, admitted to having a .380 caliber semi-automatic pistol in December 2020 in Grant County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. District Judge Thomas S. Kleeh presided.
Grand Jury indicts former St. Louis school principal and co-conspirator in murder for hire plotRead the Press Release
ST. LOUIS – A federal grand jury indicted Cornelius M. Green and Phillip J. Cutler on March 9, 2022, for conspiracy to commit murder for hire and murder for hire that resulted in the death of Jocelyn Peters and her unborn child in 2016.
The indictment alleges that Green and Cutler had a longstanding and close friendship and Green, already legally married to another was involved in an ongoing romantic relationship with Jocelyn Peters. In 2015, Ms. Peters became pregnant, with Green being the father of the unborn child.
Beginning at an exact time unknown but including February 29, 2016, through October 11, 2016, within the Eastern District of Missouri and elsewhere, Green devised a plan to murder Peters and her unborn child. Part of that plan was that Green offered cash to Cutler for the murder of Peters and her unborn child.
It is alleged on or about March 7, 2016, Green sent a package via United Parcel Service containing $2500.00 to Cutler, who accepted the package at an address in Oklahoma. As part of the conspiracy, it is alleged that Cutler traveled to St. Louis on March 21, 2016, staying at a residence occupied by Green. The next day, Green traveled to Chicago, Illinois allegedly to distance himself from the homicide.
It was further part of the conspiracy that on or about March 24, 2016, Cutler traveled to the area of 4236 W. Pine in Green’s 2013 Kia Optima, unlawfully entered Jocelyn Peters’ apartment, Unit #201, found Peters in her bed, shot her with a .380 caliber firearm in the head while using a potato as a silencer to muffle the sound of the shot.
Green and Cutler were both charged for a variety of crimes related to the murder of Peters and her unborn child by the St. Louis Circuit Attorney’s Office and are currently incarcerated awaiting trial.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the St. Louis Metropolitan Police Department and the Federal Bureau of Investigation. The case is being prosecuted in cooperation with the St. Louis Circuit Attorney’s Office.
Gang Member Sentenced for 2009 Murder of 17-Year-OldRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JOHNNY NUNEZ GARCIA, a/k/a “Superior,” was sentenced today to 200 months in prison for the June 5, 2009 gang-related murder of 17-year-old Jonathan Ruiz in the Bronx, New York. Today’s sentence is in addition to the 124 months in prison that NUNEZ GARCIA has already served on a prior sentence for related narcotics and firearms offenses. NUNEZ GARCIA was sentenced by U.S. District Judge Andrew L. Carter, Jr. NUNEZ GARCIA previously pled guilty to murdering Ruiz as part of NUNEZ GARCIA’s participation in the Dominicans Don’t Play (“DDP”) gang.
U.S. Attorney Damian Williams said: “Today’s sentence shows that senseless gang violence will be met with severe consequences. Johnny Nunez Garcia participated in the horrific murder of Jonathan Ruiz, who was only 17 years old when he died. For this crime and others, Nunez Garcia will spend 27 years in federal prison.”
According to the allegations contained in the Superseding Information, prior charging instruments and other filings in this case, and statements during court proceedings:
NUNEZ GARCIA was a member of the “Elder Family” set of the DDP gang—an enterprise that distributed crack cocaine and other drugs, and carried out shootings, robberies, and other acts of violence, on and around Elder Avenue in the Bronx, New York. On June 5, 2009, members of the DDP gang attended a party and got into an altercation with individuals they understood to be members of the rival Trinitarios gang. These suspected rivals—who included Jonathan Ruiz—fled down the street, but NUNEZ GARCIA and his accomplices pursued them in a car. Once the DDPs caught up with Ruiz, one of the DDP members exited the car and shot Ruiz from a distance, causing Ruiz to fall wounded to the ground. NUNEZ GARCIA then ran over to the wounded Ruiz, stood over him, and shot him again. NUNEZ GARCIA left Ruiz to bleed out from his injuries.
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In addition to the prison term, NUNEZ GARCIA, 31 of the Bronx, New York, was sentenced to five years of supervised release.
Mr. Williams praised the outstanding work of the New York City Police Department.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Frank Balsamello and Adam Hobson are in charge of the prosecution.
Four Los Angeles Residents Indicted for Operating Illegal Gambling Business and Conspiring to Launder MoneyRead the Press Release
SACRAMENTO, Calif. — A three-count indictment was unsealed yesterday charging four defendants in connection with an illegal gambling business and conspiracies to launder the proceeds of the illegal gambling business, U.S. Attorney Phillip A. Talbert announced.
The indictment charges Los Angeles residents Gal Yifrach, 35, with operating an illegal gambling business and conspiracy to commit money laundering; Nick Shkolnik, 39, with operating an illegal gambling business; and Shalom Ifrah, 32, and Schneur Zalman Getzel Rosenfeld, 33, with conspiracy to commit money laundering.
According to court documents, Yifrach, Shkolnik, and Yosef Yitzchak Beshari, who was charged elsewhere, conducted an illegal gambling business involving video slot machines and devices and bets, in the Eastern District of California and elsewhere. Yifrach and Ifrah conspired to launder the proceeds of the illegal gambling business in multiple ways, including by exchanging the cash for checks, exchanging the cash for casino chips, and conducting cash exchanges of no more than $10,000 at banks to avoid transaction reporting requirements. Rosenfeld is charged with conspiring with Beshari to launder the proceeds of the illegal gambling business in multiple ways, including by providing checks, direct deposits of purported salary, and a wire transfer to an escrow company, all in exchange for cash from the gambling business.
All four defendants were arrested yesterday. Yifrach and Ifrah have been detained pending trial. Shkolnik and Rosenfeld have been released subject to pretrial supervision and other conditions.
This case is the product of an investigation by the Federal Bureau of Investigation and the California Department of Justice – Bureau of Gambling Control. Assistant U.S. Attorney Miriam R. Hinman is prosecuting the case.
If convicted, Yifrach and Shkolnik each face a maximum statutory penalty of five years in prison and a $250,000 fine for conducting an illegal gambling business. In addition, Yifrach, Ifrah, and Rosenfeld each face a maximum statutory penalty of 20 years in prison and a $500,000 fine, or twice the value of the monetary instrument or funds involved, whichever is greater, for conspiracy to commit money laundering. The indictment also seeks the forfeiture of assets, including over $500,000 in U.S. Currency and three real estate properties in Los Angeles. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Founders of Crypto ICO Sentenced to Combined 8 Years in Prison for Tax Evasion After Raising $24 Million from InvestorsRead the Press Release
The owners of a cryptocurrency company have been sentenced to a combined 8 years in federal prison for tax evasion, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Bitqyck founders Bruce Bise, 61, and Samuel Mendez, 65, were charged with tax evasion in August 2021. Mr. Bise pleaded guilty on Sept. 9, 2021 and was sentenced on March 7, 2022 to 50 months in federal prison; Mr. Mendez pleaded guilty on October 12, 2021 and was sentenced this afternoon to 50 months in prison. U.S. District Judge Jane J. Boyle ordered the men jointly and severally liable for $1.6 million apiece.
According to plea papers, Mr. Bise and Mr. Mendez admitted that Bitqyck raised approximately $24 million from more than 13,000 investors. Instead of fulfilling their promises to these investors, the defendants used Bitqyck funds on personal expenses, including casino trips, cars, luxury home furnishings, art, and rent.
“Crypto actors are required to pay their fair share of taxes, just like everyone else,” said U.S. Attorney Chad Meacham. “Not only did these defendants shirk their tax obligations, they lied to investors and made off with their millions. Anyone else contemplating such a scheme should know that the Justice Department and its law enforcement partners have a sharp eye on the cryptocurrency space, and we will not let criminal behavior slide.”
“These criminals committed this scheme to thoroughly deceive and defraud stakeholders and the taxpaying public by cheating cryptocurrency investors,” said Special Agent in Charge Christopher J. Altemus Jr., Dallas Field Office. “The IRS-Criminal Investigation Dallas Field Office is proud to be part of the team that is bringing them to justice and will continue to pursue those who unjustly enrich themselves by not paying their taxes.”
In marketing materials, the pair promoted the company’s cryptocurrency, Bitqy, as a way for “those individuals who missed out on Bitcoin” to get rich. They held their initial coin offering, or ICO, in 2016. (An ICO is a process in which a company attempts to raise capital by selling a new cryptocurrency, which investors may purchase in the hope that the value of the cryptocurrency will increase.) In an attempt to legitimize Bitqy tokens – and to avoid scrutiny over selling unregistered securities – the company characterized the cryptocurrency as an “earned gift” that rewarded consumers for certain internet purchases.
A white paper posted on the Bitqyck website promised investors that each Bitqy token came with 1/10th of a share of Bitqyck common stock. Mr. Bise and Mr. Mendez admitted, however, that they never actually distributed shares to token holders nor embedded the shares within the Ethereum Smart Contract. The only shares of common stock Bitqyck issued were to Bise and Mendez, who collectively owned 100% of Bitqyck’s common stock.
About nine months after launching Bitqy, Mr. Bise and Mr. Mendez began marketing another token, BitqyM, arbitrarily priced at $1. They claimed buying the token allowed investors to join “Bitcoin mining operations,” by paying to power a Bitqyck Bitcoin mining facility in Washington state. In reality, Mr. Bise and Mr. Mendez admitted in plea papers, no such mining facility ever existed. Unbeknownst to investors, the defendants contracted with an overseas third-party company in an attempt to mine the Bitcoin they’d promised to investors.
(Bitcoin mining involves solving complex mathematical problems in order to verify transactions on a public ledger, known as the Blockchain. The problems require computing power, which in turn requires a significant amount of electricity.)
Mr. Bise and Mr. Mendez profited from Bitqyck by diverting income from the company for their personal use at their shareholders’ expense. From 2016 to 2018, Mr. Bise and Mr. Mendez raked in roughly $4.68 million and $4.48 million, respectively.
“By misrepresenting unregistered securities to investors who were lured with the appeal of owning shares of interest in a new and exciting marketplace, the defendants took advantage of unsuspecting individuals and defrauded them out of millions of dollars,” said Ryan L. Korner, Special Agent in Charge of IRS-CI’s Los Angeles Field Office. “Today’s sentencing saw justice served not only on the investors of cryptocurrency, but also on honest, hard-working American taxpayers who choose to pay their fair share of income taxes, rather than enriching themselves by evading their tax-paying responsibilities as both Mr. Bise and Mr. Mendez have done.”
Taxpayers transacting in virtual currency are required by law to report those transactions on their tax returns. For 2016 and 2017, Mr. Bise underreported his income to the IRS, resulting in a tax loss of $371,278. For that same period, Mr. Mendez also underreported his income to the IRS, resulting in a tax loss of $311,155. In 2018, Bitqyck failed to file any corporate tax returns at all despite netting more than $3.5 million from investors. The total tax loss joint and severally to the United States government between Mr. Bise and Mr. Mendez is more than $1.6 million dollars.
The defendants’ guilty pleas came on the heels of a civil settlement with the Securities & Exchange Commission (SEC), in which Bitqyck agreed to pay an $8.3 million penalty to resolve claims that it defrauded investors and operated an unregistered digital asset exchange. As part of that settlement, Mr. Bise and Mr. Mendez agreed to pay disgorgement and penalties of $890,254 and $850,022, respectively.
The Internal Revenue Services’ Criminal Investigations Divisions in Dallas and Los Angeles conducted the investigation. Assistant U.S. Attorney Sid Mody is prosecuting the case.
Former State Highway Patrol Officer Pleads Guilty to Selling Firearms Without a LicenseRead the Press Release
GREENSBORO, N.C. - A Browns Summit man pleaded guilty today to unlawfully transporting and dealing in firearms.
Timothy Jay Norman, age 47, pleaded guilty to dealing in firearms without a license, a violation of Title 18, United States Code, Sections 922(a)(1)(A), 923(a), and 924(a)(1)(D).
According to court-filed documents, beginning in January 2021, the Federal Bureau of Investigation (FBI) learned that Norman was selling firearms to various persons, including a convicted felon, while employed as a North Carolina State Highway Patrol (NCSHP) trooper. During the investigation, the FBI learned that Norman held out for sale, using the convicted felon as a “middleman,” various firearms, which included decommissioned NCSHP service weapons: Sig Sauer P226 .357 semi-automatic pistols; Arma Lite, AR-15 5.56mm semi-automatic rifles, and Beretta, Model 1201FP, 12-gauge shotguns. Thereafter, law enforcement agencies conducted three successful controlled purchase operations.
Specifically, on or about May 12, 2021, law enforcement, using a confidential human source, purchased a decommissioned Sig Sauer P226 .357 semi-automatic pistol, with the NCSHP badge engraved on top of the slide, in a case with two magazines, for $1,600 from Norman. On or about June 8, 2021, agencies, using a source, purchased a Beretta 12-gauge shotgun and an Arma Lite AR-15 semi-automatic rifle, one magazine, one soft black case, and one 50-round drum magazine from Norman at his home in Browns Summit, for $3,200. Finally, on or about June 24, 2021, law enforcement conducted a third successful controlled firearms evidence purchase from Norman, wherein Norman sold a NCSHP Sig Sauer P226 .357 semi-automatic pistol from his patrol car to a source at a closed gas station. Norman received $2,000 in FBI case funds in exchange for the decommissioned weapon. As to all of these firearms, records from the Federal Firearms Licensee (“the FFL”) where Norman purchased them establish that Norman made a significant profit as a result of the various transactions. The records also showed that Norman had purchased thirty-six firearms from the FFL since January 1, 2021.
On July 7, 2021, investigating agencies executed a search warrant on Norman’s home and seized thousands of rounds of ammunition and over fifty firearms. In Norman’s patrol car, they found two more firearms (neither of which was NCSHP-issued), including one AR-15 rifle that Norman purchased from the FFL earlier that year. There was also an envelope with over $2,000 in cash, which included FBI buy money from one of the controlled buy operations referenced above.
Sentencing is scheduled to take place on June 2, 2022, at 9:30 am in Greensboro Courtroom Number Three before the Honorable Catherine C. Eagles. At sentencing, Norman faces a maximum sentence of five years in prison, a period of supervised release of up to three years, and monetary penalties.
Sandra J. Hairston, U.S. Attorney for the Middle District of North Carolina, made the announcement. Agents with the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, North Carolina State Bureau of Investigation, and North Carolina State Highway Patrol-Internal Affairs Division investigated the case. The case is being prosecuted by Assistant U.S. Attorneys JoAnna G. McFadden and John M. Alsup.
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Former Sheriff of Franklin County, Arkansas Sentenced to Four Years in Prison for Assaulting Two People in CustodyRead the Press Release
Former Franklin County, Arkansas, Sheriff Anthony Boen, 51, was sentenced today to four years in prison, followed by two years of supervised release and a $4,800 fine for assaulting two individuals in his custody. After a six-day trial in August 2021, a jury in the Western District of Arkansas convicted Boen of two counts of deprivation of rights under color of law.
Evidence presented at trial established that Boen used unreasonable force to punish pretrial detainees on two separate occasions. On Dec. 3, 2018, Boen struck a detainee multiple times in the head with a closed fist while the detainee was sitting on the floor and shackled to a bench inside the Franklin County Jail. Several minutes later, Boen returned to the detainee’s cell and struck him in the head again, then spit on him. On Nov. 21, 2018, Boen slammed a detainee onto the floor and ripped his hair during an interrogation. Both detainees suffered bodily injury as a result of Boen’s actions. During the subsequent investigation of these offenses, Boen contacted officers who witnessed his assaults and pressured them not to provide truthful information to investigators.
“No one is above the law, especially high-ranking law enforcement officers who have a duty to uphold the Constitution and protect individuals in their custody,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The defendant abused his power as sheriff by assaulting the people he was sworn to protect and pressuring his subordinates to cover up his crimes. The Justice Department will continue to vigorously prosecute law enforcement officials who violate people’s civil rights.”
“Anthony Boen swore an oath to support the U.S. Constitution and the State of Arkansas Constitution,” said U.S. Attorney David Clay Fowlkes of the Western District of Arkansas. “His actions clearly violated not only the civil rights of these individuals but also the trust of the people of Franklin County. Cases like this are very important to our office because they involve the most personal and basic of civil rights: the rights to be protected and unharmed while in the custody of law enforcement officers. Today’s sentencing shows that justice will prevail in cases where a person’s civil rights are violated. We will continue to vigorously pursue cases involving the violation of basic civil rights that should be afforded to everyone.”
"When former Sheriff Boen brutally assaulted individuals in his custody and violated their civil rights, it impacted all Arkansans and their trust in authorities," said Special Agent in Charge James A. Dawson of the FBI’s Little Rock Field Office. “The FBI is committed to maintaining the public's trust in law enforcement. With today's sentencing of Mr. Boen, our community knows we will aggressively investigate and bring to justice any law enforcement officer who would violate the rights of their fellow Americans."
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Brandon T. Carter and Civil Rights Division Trial Attorney Michael J. Songer.
Related court documents may be found on the Public Access to Electronic Records website at www.pacer.gov.
Former Sheriff of Franklin County, Arkansas Sentenced to 4 Years in Federal Prison for Assaulting Two People in CustodyRead the Press Release
FAYETTEVILLE – Former Franklin County, Arkansas, Sheriff Anthony Boen, 51, was sentenced today to 48 months in prison, followed by two years of supervised release, for assaulting two individuals in his custody. After a six-day trial in August 2021, a jury in the Western District of Arkansas convicted Boen of two counts of deprivation of rights under color of law.
Evidence presented at trial established that Boen used unreasonable force to punish pretrial detainees on two separate occasions. On Dec. 3, 2018, Boen struck a detainee multiple times in the head with a closed fist while the detainee was sitting on the floor and shackled to a bench inside the Franklin County Jail. Several minutes later, Boen returned to the detainee’s cell and struck him in the head again, then spit on him. On Nov. 21, 2018, Boen slammed a detainee onto the floor and ripped his hair during an interrogation. Both detainees suffered bodily injury as a result of Boen’s actions. During the subsequent investigation of these offenses, Boen contacted officers who witnessed his assaults and pressured them not to provide truthful information to investigators.
“Anthony Boen swore an oath to support the United States Constitution and the State of Arkansas Constitution,” said U.S. Attorney David Clay Fowlkes of the Western District of Arkansas. “His actions clearly violated not only the civil rights of these individuals but also the trust of the people of Franklin County. Cases like this are very important to our office because they involve the most personal and basic of civil rights: the rights to be protected and unharmed while in the custody of law enforcement officers. Today’s sentencing shows that justice will prevail in cases where a person’s civil rights are violated. We will continue to vigorously pursue cases involving the violation of basic civil rights that should be afforded to everyone.”
“No one is above the law, especially high-ranking law enforcement officers who have a duty to uphold the Constitution and protect individuals in their custody,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The defendant abused his power as sheriff by assaulting the people he was sworn to protect and pressuring his subordinates to cover
up his crimes. The Justice Department will continue to vigorously prosecute law enforcement officials who violate people’s civil rights.”
"When former Sheriff Boen brutally assaulted individuals in his custody and violated their civil rights, it impacted all Arkansans and their trust in authorities," said FBI Little Rock Special Agent in Charge James A. Dawson. "The FBI is committed to maintaining the public's trust in law enforcement. With today's sentencing of Mr. Boen, our community knows we will aggressively investigate and bring to justice any law enforcement officer who would violate the rights of their fellow Americans."
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Brandon T. Carter and Civil Rights Division Trial Attorney Michael J. Songer.
Former San Jose State University Director of Sports Medicine Charged with Sexually Assaulting Female Student-AthletesRead the Press Release
Scott Shaw, 54, the former Director of Sports Medicine and athletic trainer at San Jose State University, has been charged today with civil rights violations for engaging in sexual misconduct with female student-athletes under the guise of treating them for their injuries.
The charges allege that between 2017 and 2020, Shaw violated the civil rights of four students who played on women’s athletics teams by touching their breasts and buttocks without their consent and without a legitimate purpose. Shaw, as a state employee for the California State University system, is further alleged to have acted under color of law when he sexually assaulted the victims.
Shaw faces a maximum of six years in prison if convicted of all counts. However, any sentence following a conviction would be imposed by a court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence.
Shaw will appear to face the charges in U.S. District Court in San Jose on a date that has not yet been set.
Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division, U.S. Attorney Stephanie Hinds of the Northern District of California and Special Agent in Charge Craig D. Fair of the FBI made the announcement.
The case is being prosecuted by Assistant U.S. Attorney Michael Pitman of the Northern District of California and Special Litigation Counsel Fara Gold of the Criminal Section of the Justice Department’s Civil Rights Division. This case is being investigated by the FBI San Francisco Field Office.
Anyone with information should contact the FBI at 510-808-2600.
A charging information is merely a formal accusation of criminal conduct, and the defendant is presumed innocent unless proven guilty.
Former San Jose State University Director of Sports Medicine Charged with Sexually Assaulting Female Student-AthletesRead the Press Release
SAN JOSE – Scott Shaw, 54, the former Director of Sports Medicine and athletic trainer at San Jose State University, has been charged today with civil rights violations for engaging in sexual misconduct with female student-athletes under the guise of treating them for their injuries.
The charges allege that between 2017 and 2020, Shaw violated the civil rights of four students who played on women’s athletics teams by touching their breasts and buttocks without their consent and without a legitimate purpose. Shaw, as a state employee for the California State University system, is further alleged to have acted under color of law when he sexually assaulted the victims.
Shaw faces a maximum of six years in prison if convicted of all counts. However, any sentence following a conviction would be imposed by a court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence.
A charging information, as filed here, is merely a formal accusation of criminal conduct. As with any defendant, Shaw is presumed innocent unless proven guilty.
Shaw is scheduled to appear to face the charges in U.S. District Court in San Jose on March 15, 2022, before United States Magistrate Judge Susan Van Keulen.
United States Attorney Stephanie Hinds of the Northern District of California, Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division, and Special Agent in Charge Craig D. Fair of the FBI made the announcement.
The case is being prosecuted by Assistant U.S. Attorney Michael Pitman of the Northern District of California and Special Litigation Counsel Fara Gold of the Criminal Section of the Justice Department’s Civil Rights Division. This case is being investigated by the FBI San Francisco Field Office.
Anyone with information should contact the FBI at 510-808-2600.
Former Resident of Bergen County Sentenced to 29 Months in Prison for $1.5 Million Investment Fraud SchemeRead the Press Release
NEWARK, N.J. – A former New Jersey resident was sentenced today to 29 months in prison for his role in an investment scheme through which he fraudulently obtained more than $1.52 million from at least three families from 2017 through 2019, U.S. Attorney Philip R. Sellinger announced.
Matthew Benjamin, 54, formerly of Englewood, New Jersey, and now of New York, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of wire fraud and one count of securities fraud. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From May 2017 through August 2019, Benjamin falsely represented to at least three families that his company, Clear Solutions Group LLC, had lucrative contracts to purchase closeout or excess cosmetic inventory from a company, which he would then resell at a mark-up to a second company. Benjamin told the victims that he had access to these closeout goods through his contacts in the cosmetics and fragrance industry, which he purportedly made through his work at his family’s cosmetic wholesale and distribution business prior to starting Clear Solutions Group. Benjamin induced the victims to provide him with money to purchase the inventory from the first company and promised significant profits in return. Instead of investing the money as he promised, Benjamin misappropriated the investors’ money for his own use and benefit.
Benjamin provided the victims with falsified documents, including fake purchase orders, invoices, promissory notes and bank records showing inflated assets of Clear Solutions Group. To lull victims and induce them to continue investing, Benjamin provided them with documents that purported to detail the investors’ profits.
Benjamin misrepresented to certain investors that portions of their profits on the investment contracts were being reinvested in additional deals to purchase and sell cosmetics, which in turn would generate more profits. From time to time, Benjamin made payments to the investors that were purportedly their profits on certain cosmetics contracts.
In reality, Benjamin misappropriated the investors’ money by making payments to other investors in Clear Solutions Group, which were characterized as those investors’ profits from the nonexistent cosmetic contracts, thereby enabling Benjamin to continue to perpetuate his fraudulent scheme and funding Benjamin’s lifestyle, including paying for car and house rental payments, food, international travel, legal fees, technology equipment, and summer camp tuition for his family members.
In addition to the prison term, Judge Cecchi sentenced Benjamin to three years of supervised release and ordered forfeiture of $1.53 million and restitution of $909,539.
The U.S. Securities and Exchange Commission has filed a civil complaint against Benjamin based on allegations underlying the securities fraud charge.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jennifer S. Kozar and Catherine R. Murphy, Chief of the Economic Crimes Unit of the U.S. Attorney’s Office.
Former Columbia Police Chief Indicted by Federal Grand Jury for Stealing Drug MoneyRead the Press Release
Bowling Green, Kentucky – A federal grand jury in Bowling Green, Kentucky returned an indictment today charging the former Columbia, Kentucky Chief of Police with stealing over $25,000 from the city of Columbia, Kentucky.
According to court documents, between February 2020 and February 2021, Jason D. Cross, 44, of Columbia, stole over $25,000 from the police department evidence locker and the city’s drug purchase fund.
Cross is charged with one count of violating Title 18, United States Code, Section 666(a)(1)(A), which makes it a federal offense for a city employee to steal more than $5,000 from a city that received over $10,000 in federal assistance in a calendar year. The defendant made his initial court appearance today before U.S. Magistrate Judge H. Brent Brennenstuhl of the U.S. District Court for the Western District of Kentucky. If convicted, he faces a maximum statutory penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky made the announcement.
The Kentucky State Police are investigating the case and Assistant U.S. Attorney David Weiser is 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 Canadian Government Employee Extradited to the United States to Face Charges for Dozens of Ransomware Attacks Resulting in the Payment of Tens of Millions of Dollars in RansomsRead the Press Release
Tampa, FL – A Canadian man was extradited yesterday from Canada to the United States on an indictment returned in the Middle District of Florida that charges him with conspiracy to commit computer fraud and wire fraud, intentional damage to a protected computer, and transmitting a demand in relation to damaging a protected computer arising from his alleged participation in a sophisticated form of ransomware known as NetWalker. NetWalker ransomware has targeted dozens of victims all over the world, including companies, municipalities, hospitals, law enforcement, emergency services, school districts, colleges, and universities. Attacks have specifically targeted the healthcare sector during the COVID-19 pandemic, taking advantage of the global crisis to extort victims.
According to court documents, Sebastien Vachon-Desjardins, 34, of Gatineau, Quebec, Canada, from April through December 2020, conspired to and did intentionally damage a protected computer and transmit a ransom demand in connection with doing so. The indictment also alleges that the United States intends to forfeit more than $27 million, which is alleged to be traceable to proceeds of the offenses. The defendant will make his initial appearance today in federal court in Tampa before U.S. Magistrate Judge Julie S. Sneed.
“As exemplified by the seizure of cryptocurrency by our Canadian partners, we will use all legally available avenues to pursue seizure and forfeiture of the alleged proceeds of ransomware, whether located domestically or abroad,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The department will not cease to pursue and seize cryptocurrency ransoms, thereby thwarting the attempts of ransomware actors to evade law enforcement through the use of virtual currency.”
“Ransomware is a multi-billion-dollar criminal enterprise that transcends physical and political boundaries. International collaboration is essential to identify the perpetrators of these sophisticated schemes,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “This case illustrates effective international law enforcement cooperation directed at identifying cybercriminals, holding them accountable for their alleged criminal actions, and recovering funds allegedly stolen from their victims.”
“This investigation is yet another example of the outstanding work conducted by the Tampa FBI Cyber program, the Middle District of Florida, the FBI’s Cyber Division, and our law enforcement partners around the world,” said Acting Special Agent in Charge Sanjay Virmani of the FBI’s Tampa Field Office. “It is also a reminder that the FBI continues to work tirelessly to identify, locate, and apprehend those who would prey upon the innocent and bring about justice for the citizens of the United States.”
Vachon-Desjardins was extradited to the United States pursuant to the extradition treaty between the United States and Canada. Pursuant to a request submitted by U.S. authorities, Canadian law enforcement officers arrested Vachon-Desjardins in Gatineau, Quebec, on Jan. 27, 2021, and executed a search warrant at Vachon-Desjardins’s home in Gatineau. During the search, officers discovered and seized 719 Bitcoin, valued at approximately $28,151,582 as of today’s date, and $790,000 in Canadian currency.
The FBI’s Tampa Field Office is investigating the case.
Trial Attorney Sonia V. Jimenez of the Justice Department’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Carlton C. Gammons and Suzanne Nebesky of the U.S. Attorney’s Office for the Middle District of Florida are prosecuting the case. The Justice Department’s Office of International Affairs provided valuable assistance in securing Vachon-Desjardin’s arrest and extradition. The U.S. Marshals Service transported Vachon-Desjardins from Canada to the United States.
The investigation benefited from law enforcement cooperation by the Royal Canadian Mounted Police, Ontario Provincial Police, Gatineau Police Service, and National Cybercrime Coordination Unit.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Canadian Government Employee Extradited to the United States to Face Charges for Dozens of Ransomware Attacks Resulting in the Payment of Tens of Millions of Dollars in RansomsRead the Press Release
A Canadian man was extradited yesterday from Canada to the United States on an indictment returned in the Middle District of Florida that charges him with conspiracy to commit computer fraud and wire fraud, intentional damage to a protected computer, and transmitting a demand in relation to damaging a protected computer arising from his alleged participation in a sophisticated form of ransomware known as NetWalker. NetWalker ransomware has targeted dozens of victims all over the world, including companies, municipalities, hospitals, law enforcement, emergency services, school districts, colleges, and universities. Attacks have specifically targeted the healthcare sector during the COVID-19 pandemic, taking advantage of the global crisis to extort victims.
According to court documents, Sebastien Vachon-Desjardins, 34, of Gatineau, Quebec, Canada, from April through December 2020, conspired to and did intentionally damage a protected computer and transmit a ransom demand in connection with doing so. The indictment also alleges that the United States intends to forfeit more than $27 million, which is alleged to be traceable to proceeds of the offenses. The defendant will make his initial appearance today in federal court in Tampa before U.S. Magistrate Judge Julie S. Sneed.
“As exemplified by the seizure of cryptocurrency by our Canadian partners, we will use all legally available avenues to pursue seizure and forfeiture of the alleged proceeds of ransomware, whether located domestically or abroad,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The department will not cease to pursue and seize cryptocurrency ransoms, thereby thwarting the attempts of ransomware actors to evade law enforcement through the use of virtual currency.”
“Ransomware is a multi-billion-dollar criminal enterprise that transcends physical and political boundaries. International collaboration is essential to identify the perpetrators of these sophisticated schemes,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “This case illustrates effective international law enforcement cooperation directed at identifying cybercriminals, holding them accountable for their alleged criminal actions, and recovering funds allegedly stolen from their victims.”
“This investigation is yet another example of the outstanding work conducted by the Tampa FBI Cyber program, the Middle District of Florida, the FBI’s Cyber Division, and our law enforcement partners around the world,” said Acting Special Agent in Charge Sanjay Virmani of the FBI’s Tampa Field Office. “It is also a reminder that the FBI continues to work tirelessly to identify, locate, and apprehend those who would prey upon the innocent and bring about justice for the citizens of the United States.”
Vachon-Desjardins was extradited to the United States pursuant to the extradition treaty between the United States and Canada. Pursuant to a request submitted by U.S. authorities, Canadian law enforcement officers arrested Vachon-Desjardins in Gatineau, Quebec, on Jan. 27, 2021, and executed a search warrant at Vachon-Desjardins’s home in Gatineau. During the search, officers discovered and seized 719 Bitcoin, valued at approximately $28,151,582 as of today’s date, and $790,000 in Canadian currency.
The FBI’s Tampa Field Office is investigating the case.
Trial Attorney Sonia V. Jimenez of the Justice Department’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Carlton C. Gammons and Suzanne Nebesky of the U.S. Attorney’s Office for the Middle District of Florida are prosecuting the case. The Justice Department’s Office of International Affairs provided valuable assistance in securing Vachon-Desjardin’s arrest and extradition. The U.S. Marshals Service transported Vachon-Desjardins from Canada to the United States.
The investigation benefited from law enforcement cooperation by the Royal Canadian Mounted Police, Ontario Provincial Police, Gatineau Police Service, and National Cybercrime Coordination Unit.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.