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9 February 2022
Seven More Charged in Staged Automobile Collision SchemeRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans recently unsealed the indictment of FLORENCE RANDLE (“RANDLE”), age 70, of Gibson; STACIE WHEATEN (“WHEATEN”), age 50, of Atlanta; JOSEPH BREWTON (“BREWTON”), age 56, of Houma; DAVID BROWN (“BROWN”), age 50, of Morgan City; GILDA HENDERSON (“HENDERSON”), age 69, of Morgan City; LATRELL JOHNSON (“JOHNSON”), age 30, of New Orleans; and LARRY PICOU (“PICOU”), age 56, of Gibson. The indictment was handed down by a federal grand jury on February 3, 2022 and unsealed after the arrests of BROWN and PICOU. This indictment brings the total number of defendants charged in the federal probe into the staging of accidents with tractor-trailers to 47.
All seven defendants were charged in a 10-count federal indictment. All of the defendants were charged in Count 1 with Conspiracy to Commit Mail Fraud in violation of Title 18, United States Code, Section 371. BREWTON was charged in Counts 2-7 with Mail Fraud in violation of Title 18, United States Code, Sections 1341 and 2. BROWN, HENDERSON, JOHNSON, and PICOU were charged in Counts 5 and 6 with Mail Fraud in violation of Title 18, United States Code, Sections 1341 and 2. RANDLE and WHEATEN were charged in Counts 7 through 10, which charge Mail Fraud in violation of Title 18, United States Code, Sections 1341 and 2.
If convicted, the defendants face a maximum penalty of five (5) years for Count 1 and twenty (20) years as to each of the Mail Fraud counts. Upon their release from prison, each defendant can be placed on a term of supervised release for up to five (5) years and fined up to $250,000.00 per count. A mandatory special assessment fee of $100 per count is also applicable.
According to court documents, BREWTON, RANDLE, and WHEATEN served as intermediaries who directed passengers to participate in staged automobile accidents. BREWTON helped to arrange collisions that took place on March 27, 2017 and May 11, 2017. RANDLE and WHEATEN helped to coordinate collisions on May 17, 2017 and June 5, 2017.
The indictment alleges that BROWN, HENDERSON, JOHNSON, and PICOU falsely claimed that they were passengers in a car that was struck by a tractor-trailer on May 11, 2017. In fact, the defendants conspired with BREWTON, Damian Labeaud (“Labeaud”), Mario Solomon (“Solomon”), and others to intentionally collide with a tractor-trailer in the area of Chef Menteur Highway and Downman Road in New Orleans. After the intentional collision, BROWN, HENDERSON, JOHNSON, and PICOU made a false police report, lied in depositions, and filed fraudulent lawsuits claiming that the tractor-trailer was at fault. This scheme caused the insurance company for the tractor-trailer to pay over $140,000.00 in settlement funds.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The U.S. Attorney’s Office would like to acknowledge the assistance of the Federal Bureau of Investigation, the Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Maria M. Carboni; Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant U.S. Attorney Edward Rivera; and Assistant U.S. Attorney Brandon S. Long.
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Serial Bank Robber Sentenced to 10 Years’ Imprisonment in Brooklyn Federal CourtRead the Press Release
Earlier today, in federal court in Brooklyn, Gerod Woodberry was sentenced by United States District Judge Dora L. Irizarry to 10 years’ imprisonment for a series of bank robberies in December 2019 and January 2020 in Manhattan and Brooklyn. Woodberry pleaded guilty in July 2021.
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), announced the sentence.
“The defendant has been held accountable in federal court for a 16-day crime spree in which he robbed or attempted to rob six banks,” stated United States Attorney Peace. “I commend the members of law enforcement who apprehended the defendant and ended his string of robberies.”
Woodberry robbed or attempted to rob six New York City banks over a 16 day-period. After committing or attempting to commit robberies on December 30, 2019, January 3, 2020, January 6, 2020, and January 8, 2020, in Manhattan, Woodberry was arrested and charged in state court in New York County with the December 30, 2019 bank robbery. On January 10, 2020, Woodberry was released pending trial on the state charges. Several hours after Woodberry’s release from state custody, he entered a Chase Bank branch located at 20 Flatbush Avenue in Brooklyn, presented a demand note to the teller that read, “THIS IS A ROBBERY BIG BILLS ONLY NO DYE PACKS.” Woodberry received $1,000 in cash and fled the bank. On January 14, 2020, Woodberry attempted a sixth robbery at a Citibank branch in Manhattan, where he received no money and fled the bank. In total, Woodberry stole $3,100 from the three banks that he robbed.
Assistant United States Attorneys Jack Dennehy, Devon Lash and Anna Karamigios are in charge of the prosecution.
The Defendant:
GEROD WOODBERRY
Age: 44
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-31 (DLI)
Scranton Man Sentenced to Two Years’ Imprisonment for Straw Purchasing FirearmsRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Edwin Smith, age 27, of Scranton, Pennsylvania, was sentenced yesterday to 24 months’ imprisonment by U.S. District Court Judge Robert D. Mariani for aiding and abetting another to make false statements to a federally licensed firearms dealer in order to acquire a Smith & Wesson Shield .45 caliber handgun.
According to United States Attorney John C. Gurganus, Smith paid another individual to purchase ten firearms from several Scranton-area firearms dealers and make false statements as to the identity of the actual buyer of the firearms. Upon the execution of a search warrant at Smith’s residence, one of the falsely purchased firearms was recovered.
In addition to the two-year imprisonment sentence, Judge Mariani order Smith to serve two years of supervised release upon his release from custody. Judge Mariani also ordered that the sentence run consecutive to an unrelated sentence imposed in Lackawanna County Court of Common Pleas for a 2020 robbery offense.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Pennsylvania State Police, Lackawanna County District Attorney’s Office, and the Scranton Police Department. Assistant United States Attorney James Buchanan and Special Assistant United States Attorney Brian Gallagher prosecuted the case.
This case was 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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Rhode Island Man Sentenced in COVID-19 Related Fraud SchemeRead the Press Release
PROVIDENCE, R.I. – A Warwick man charged with executing a scheme to defraud the Paycheck Protection Program (PPP), an element of the CARES Act passed by Congress on March 29, 2020, in response to the national crisis brought about by the COVID-19 pandemic, was sentenced in federal court in Providence today to three years of supervised release, the first six months of which are to be served in home confinement with electronic monitoring, announced United States Attorney Zachary A. Cunha.
David Andrew Butziger, 53, previously admitted to the court that he, along with co-conspirator David Adler Staveley, 54, of Andover, MA, sought to defraud the PPP by seeking $543,959 in forgivable loans guaranteed by the SBA, claiming to have dozens of employees earning wages at four business, when, in fact, there were no employees working at any of them.
Staveley pleaded guilty on May 17, 2021, to conspiracy to commit bank fraud and failure to appear in court as required. He was sentenced by U.S. District Court Judge Mary S. McElroy on October 7, 2021, to fifty-six months in federal prison to be followed by three years of federal supervised release.
Three weeks after appearing in U.S. District Court in May 2020, and released to home detention with electronic monitoring, Staveley removed his electronic monitoring device, staged his own suicide, and fled. Staveley left suicide notes with associates and left his wallet in his unlocked car that he parked along the ocean in Massachusetts. Further investigation determined that between May 26 and July 23, 2020, Staveley, who was to have appeared in federal court on June 2, 2020, traveled to various states using false identities and stolen license plates. He was apprehended by the United States Marshals Service in Alpharetta, GA., on July 23, 2020.
Staveley’s co-conspirator, Butziger, pleaded guilty on October 18, 2020, to conspiracy to commit bank fraud, admitting to the court that he himself sought a bank loan for $105,381.50 to pay seven employees at an unincorporated entity he called Dock Wireless. According to the government’s evidence, Dock Wireless had no employees, and no wages were ever paid by the company.
Butziger also admitted that he conspired with Staveley to submit three fraudulent bank loan applications for SBA loans under the PPP totaling $438,577. The loans were to be used to pay employees at three restaurants Staveley claimed to own, Top of the Bay and Remington House in Warwick and On The Trax in Berlin, MA. According to government’s evidence, Staveley had no ownership interest in any of the business; none of them were open at the time; and there we no employees at time the loan applications were filed.
Today, Butziger was sentenced by U.S. District Court Judge McElroy to three years of supervised release, the first six months to be served in home confinement with electronic monitoring, and ordered to pay a fine of $5,000.
The cases were prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The matter was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.
The Justice Department acknowledges and thanks the SBA Office of Inspector General and the FDIC, Office of Inspector General for their assistance in the investigation.
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Registered Sex Offender Sentenced to 12.5 Years in Prison for Possessing Child PornographyRead the Press Release
MINNEAPOLIS – A Minneapolis man has been sentenced to 150 months in prison followed by 10 years of supervised release for possessing images and videos depicting the sexual abuse of minors. Acting U.S. Attorney Charles J. Kovats made the announcement after U.S. District Judge Eric C. Tostrud sentenced the defendant.
According to court documents, Gene Paul Schave, 50, is a registered sex offender who was convicted in 2010 in Minnesota state court for possessing child pornography. On October 3, 2019, while on supervised release for his previous conviction, Schave was found to be in possession of an Asus tablet that contained more than 3,000 images and videos depicting the sexual abuse of minors.
On August 12, 2021, following a four-day trial, a federal jury convicted Schave on one count of possession of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was the result of an investigation conducted by the FBI, the Bureau of Criminal Apprehension, and the Minneapolis Police Department.
This case was prosecuted by Assistant U.S. Attorneys Emily A. Polachek and Miranda E. Dugi.
Pittsburgh Man Pleads to Bank Robbery and Attempted Bank RobberyRead the Press Release
PITTSBURGH, Pa. - A resident of Allegheny County, Pennsylvania, pleaded guilty in federal court in Pittsburgh, Pennsylvania, to charges of Bank Robbery and Attempted Bank Robbery, United States Attorney Cindy K. Chung announced today.
Timothy Sowinski, age 53, of Pittsburgh, pled guilty to the charges before United States District Judge Cathy Bissoon.
According to information presented to the Court at the time of the plea, Sowinski entered the Northwest Bank on Smithfield Street in downtown Pittsburgh on March 12, 2018, and handed a demand note to the teller, stating that he had a gun and wanted cash. The teller complied with the demand and gave cash to Sowinski, who then fled the bank. Two days later, Sowinski entered the PNC Bank on Walnut Street in Pittsburgh and presented a similar note, but the teller did not immediately understand what Sowinski wanted. Another teller saw what was happening and activated the bank’s alarm. Sowinski then fled the scene. The Pittsburgh Police received information that Sowinski was likely the robber in both instances, and on the following day they located him and interviewed him. Sowinski then confessed and admitted that he had been the perpetrator at both banks.
Judge Bissoon scheduled sentencing for Sowinski for June 1, 2022. The law provides for a maximum total sentence of 40 years in prison, a fine of $50, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation, along with the City of Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case.
Pine Ridge Man Charged with Second Degree MurderRead the Press Release
United States Attorney Dennis R. Holmes announced that a Pine Ridge, South Dakota, man has been indicted by a federal grand jury for Second Degree Murder.
Julian Hard Heart, age 19, was indicted on January 20, 2022. He appeared before U.S. Magistrate Judge Daneta Wollmann on January 26, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is life in federal prison and/or a $250,000 fine, up to five years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about November 28, 2021, Hard Heart murdered Devon Elk Boy. The charges are merely an accusation and Hard Heart is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Hard Heart was detained pending trial. A trial date has been set for April 5, 2022.
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Passaic County Man Charged with Attempted Robbery of Two U.S. Postal Service EmployeesRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was indicted today for assaulting and attempting to rob two U.S. Postal Service (USPS) mail carriers in January 2021, U.S. Attorney Philip R. Sellinger announced.
Yeniser Cruz Perez, 20, of Paterson, New Jersey, was charged by indictment with two counts of assault and attempted robbery of persons having control over mail matter and government property. He will be arraigned at a date to be determined.
According to documents filed in this case and statements made in court:
On Jan. 20, 2021, in Wyckoff, New Jersey, Cruz Perez approached Victim 1, a USPS mail carrier and demanded that the victim give him a USPS key that is used to access mail collection boxes and apartment panels. Cruz Perez displayed what appeared to be a firearm. Cruz Perez fled after learning that Victim 1 did not possess such a key.
Later that day, in Woodland Park, New Jersey, Cruz Perez approached Victim 2, another USPS mail carrier, and again demanded a USPS key. Cruz Perez again pulled what appeared to be a firearm from his clothing. Cruz Perez again fled after learning that Victim 2 did not have the key.
Each count of assault and attempted robbery charged in the indictment carries a maximum penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero; the Wyckoff Police Department, under the direction of Chief David V. Murphy; and the Woodland Park Police Department, under the direction of Chief John Uzzalino with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Katherine Calle of the Health Care Fraud Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Passaic County Doctor Charged with 34 Counts of Unlawful Distribution of Controlled SubstancesRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, doctor was charged today with multiple counts of illegally prescribing medicines to his patients, U.S. Attorney Philip R. Sellinger announced.
Evangelos Megariotis, 68, of Clifton, New Jersey, an orthopedic surgeon who owned and operated Clifton Orthopedic Associates, is charged by indictment with 34 counts of illegally prescribing controlled substances to his patients.
According to the documents filed in this case:
From November 2016 to February 2018, Megariotis prescribed controlled substances, including oxycodone, alprazolam (or “Xanax”), cough syrup with codeine, and stimulants, outside the usual course of professional practice and without a legitimate medical purpose.
The counts charging illegal prescribing of Schedule II opioids and stimulants are punishable by a maximum of 20 years in prison and a $1 million fine. The counts charging illegal prescribing of alprazolam, a Schedule IV controlled substance, are punishable by a maximum of five years in prison and a $250,000 fine. The counts charging illegal prescribing of cough syrup with codeine, a Schedule V controlled substance, are punishable by a maximum of one year in prison and a $100,000 fine.
U.S. Attorney Philip R. Sellinger credited special agents, diversion investigators and task force officers from the Drug Enforcement Administration’s New Jersey Division under the direction of Special Agent in Charge Susan A. Gibson.
The government is represented by Assistant U.S. Attorney Emma Spiro of the Opioid Abuse Prevention & Enforcement Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Parkersburg Man Pleads Guilty to Federal Firearm ChargeRead the Press Release
CHARLESTON, W.Va. – A Parkersburg man pleaded guilty today to a federal firearm charge.
According to statements made in court, on or about January 26, 2021, Shawn Mackenzie Tant, 43, was in possession of a Harrington and Richardson .38 caliber revolver. Tant was sitting in the driver’s seat of a vehicle parked in front of a retail establishment on the south side of Parkersburg when he had contact with officers from the Parkersburg Police Department. The firearm was located by officers on the dash of the vehicle near the windshield. Tant admitted that he knew he was not legally permitted to possess a firearm due to three prior felony convictions in Wood County Circuit Court for delivery of a controlled substance. Tant has a long criminal history to include three domestic battery convictions as well as convictions for domestic assault, battery, and battery of a police officer.
Tant pleaded guilty to being a felon in possession of a firearm and faces up to 10 years in prison when sentenced on May 12, 2022.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Parkersburg Police Department.
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Jeremy B. Wolfe is handling 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-00232.
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Parent Sentenced in College Admissions CaseRead the Press Release
BOSTON – A former senior gaming and hospitality executive was sentenced today in federal court in Boston for his participation in a conspiracy to facilitate his daughter’s admission to the University of Southern California (USC) as a purported basketball recruit through bribery and fraud.
Gamal Abdelaziz, 65, of Las Vegas, Nev., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to one year and one day in prison, two years of supervised release, 400 hours of community service and a fine of $250,000. On Oct. 8, 2021, Abdelaziz was convicted following a four-week jury trial of one count of conspiracy to commit mail fraud and wire fraud and honest services mail fraud and wire fraud; and one count of conspiracy to commit federal programs bribery.
In 2017, Abdelaziz agreed to pay a co-conspirator, William “Rick” Singer, $300,000 to facilitate the admission of Abdelaziz’s daughter to USC as a purported basketball recruit. At the time, Abdelaziz’s daughter had not played basketball in well over a year and she had never been a member of her high school’s varsity basketball team.
As part of the scheme, a co-conspirator created a basketball profile for Abdelaziz’s daughter which included a photo of a different athlete and listed falsified awards and athletic honors. Another co-conspirator who was employed in the USC athletic department, then used that fake profile to secure the admission of Abdelaziz’s daughter to USC as a purported basketball recruit. Abdelaziz later wired $300,000 to Singer’s sham charity, the Key Worldwide Foundation, in exchange for the fraudulent admission.
Singer previously pleaded guilty and is awaiting sentencing.
Case information, including the status of each defendant, is available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Stephen E. Frank, Leslie A. Wright, Kristen A. Kearney and Ian Stearns of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
UPDATE: In May 2023, The First Circuit Court of Appeals vacated the defendant’s jury conviction. In June 2023, the government moved to dismiss all criminal charges against defendant Gamal Abdelaziz.
Monroe Area Men Sentenced in Federal Court for Illegally Possessing Firearms and DrugsRead the Press Release
MONROE, La. – Two men from the Monroe, Louisiana area were sentenced today by United States District Judge Terry A. Doughty in separate cases on charges of illegal possession of firearms and drugs, announced United States Attorney Brandon B. Brown.
Brent Thomas Chavers, 36, of West Monroe, Louisiana, was sentenced to 216 months (18 years) in prison, followed by 5 years of supervised release. Chavers pleaded guilty on October 18, 2021, to one count of possession of a firearm in furtherance of drug trafficking and one count of possession with intent to distribute methamphetamine. The charges stem from two separate incidents involving Chavers. The first incident occurred on October 3, 2019, when a deputy with the Ouachita Parish Sheriff’s Office stopped the vehicle Chavers was driving for a traffic violation. When the deputy approached the vehicle, he observed a shotgun in the backseat in plain view. Chavers admitted to the deputy that he was a previously convicted felon, and he was arrested. After a search of the vehicle, the deputy found a bag in the front seat which contained methamphetamine. Chavers admitted to possessing the gun and drugs.
The second incident occurred on January 5, 2021, when deputies stopped Chavers for operating a four wheeler in the wrong lane of traffic. Deputies conducted a pat search and found methamphetamine in a clear plastic baggie in his waistband. He admitted to deputies that he had been driving around attempting to sell narcotics and was returning home. Deputies transported Chavers to his residence and after he consented, they searched the residence and found a safe inside his bedroom with more plastic bags containing methamphetamine, as well as other narcotics packaged for sale. Chavers admitted to possession of the methamphetamine to law enforcement officers.
In a separate and unrelated case, Dondurius Oshay Scott, 29, of Monroe, Louisiana, was sentenced to 102 months (8 years, 6 months) in prison, followed by 3 years of supervised release for possession of a firearm by a convicted felon. On July 11, 2018, deputies with the Ouachita Parish Sheriff’s Office stopped a vehicle being driven by Scott for a traffic violation. Deputies observed a loaded pistol magazine on the front passenger seat, then saw a pistol on the ground near the front driver’s side tire. Scott admitted to being in possession of the firearm knowing that as a convicted felon he was prohibited from doing so. Scott has a prior felony conviction for conspiracy to commit second degree murder in 2015.
These cases were investigated by the ATF and Ouachita Parish Sheriff’s Office and were prosecuted by Assistant U.S. Attorneys Mike Shannon and Leon H. Whitten.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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Mid-State Man Charged in Million Dollar Investment Fraud SchemeRead the Press Release
NASHVILLE – A federal indictment unsealed today, charges Gregory Michael Vogel, aka Gregory Michael Schneider, 49, formerly of Hendersonville, Tenn. and Gallatin, Tenn., with eight counts of wire fraud and one count of money laundering in relation to an investment scheme, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Vogel was arrested this morning by federal agents and will make an appearance before a U.S. Magistrate Judge later today.
According to the indictment, between April 2015 and May 2019, Vogel devised a scheme to defraud investors by soliciting individuals to make investments with his company in foreign currency exchange (forex) websites and software. Vogel claimed that these forex websites would generate substantial revenue, providing investors with thousands of dollars in monthly profits, before eventually being sold to a third party, so that Vogel and the investor could both realize an even greater return on the investment.
The indictment also alleges that Vogel induced investors to make investments in the forex websites by omitting and concealing material information about Vogel’s background and investment history, his management of the forex websites, his breaches of promises and contractual provisions, and the actual ownership structure of the forex websites.
Some of the omitted material information included that Vogel, under his prior name of Gregory Michael Schneider, had been sued by investors for a previous investment offering and was found liable for committing fraud, breach of fiduciary duty, and conversion, among other acts. As a result, Vogel was permanently enjoined from soliciting or providing any business investments or investment advice in the future. Vogel had also been sued by the Commodity Futures Trading Commission (CFTC) and entered into a consent order in which he was permanently enjoined from trading or participating in certain transactions supervised by the CFTC.
As a result of this scheme, Vogel and his business received more than $1 million from more than a dozen investors, much of which he converted to his own personal use.
If convicted, Vogel faces up to 20 years in prison on each wire fraud count, and up to 10 years in prison for money laundering. The indictment also contains a forfeiture allegation in which the government seeks to forfeit any property derived from the proceeds of the crimes, including a money judgement in the amount of at least $1,177,540.00.
This case was investigated by the IRS-Criminal Investigation and the United States Postal Inspection Service. Assistant U.S. Attorney Chris Suedekum is prosecuting the case.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
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Marine Based at Camp Pendleton Arrested on Federal Charges Alleging Cyberstalking of Young Women in Sextortion CampaignRead the Press Release
LOS ANGELES – An active-duty Marine stationed at Camp Pendleton was arrested Tuesday on charges that he cyberstalked multiple young women with ties to his former hometown of Torrance in a “sextortion” campaign.
Johao Miguel Chavarri, 25, of Oceanside, is expected to make his initial appearance this afternoon in United States District Court in downtown Los Angeles.
According to the criminal complaint unsealed following his arrest, from 2019 through 2021, Chavarri, using the online alias “Michael Frito,” created and used numerous online accounts to repeatedly stalk, harass, and threaten women who would not give in to his demands that, among other things, they send him nude, sexually explicit or otherwise compromising photos and videos of themselves. This type of conduct is commonly referred to as sextortion. According to the complaint, in some cases, his cyberstalking, threats and sextortion demands continued for over a year.
Chavarri’s harassing and extortionate threats and demands of the victims generally followed a pattern outlined in complaint affidavit. In some instances, he allegedly demanded that the victims provide him with sexual photos or videos of themselves, or photos or videos of their feet. In other instances, he demanded that they respond to him and communicate online with him.
According to the complaint, in multiple instances, Chavarri threatened that, if his victims refused to comply with his demands, he would publish sexually explicit photos and videos of the victims online or on well-known pornography websites. He also allegedly threatened to distribute the photos or videos to the victims’ boyfriends, friends, families or employers, whom he would often identify by name.
According to the complaint, one message sent by Chavarri to multiple victims via Instagram stated that he would spend his “whole life ruining” their lives. Chavarri allegedly also created fake social media accounts mimicking some of the victims’ names and sent harassing messages to some of the victims’ friends and family members.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Chavarri is charged with stalking. If convicted, he faces a statutory maximum sentence of five years in federal prison.
The FBI is investigating the case, with assistance from the Naval Criminal Investigative Service.
Anyone who believes they are a victim in this case or is aware of a victim in this case is urged to contact the FBI’s Los Angeles Field Office, which can be reached 24 hours a day at (310) 477-6565.
Assistant U.S. Attorney Lauren Restrepo of the Cyber and Intellectual Property Crimes Section and Justice Department Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.
Manchester Man Sentenced to 24 Months for Illegally Possessing Firearms and AmmunitionRead the Press Release
CONCORD - Adrian Hardin, 27, of Manchester, was sentenced to 24 months in federal prison for possession of firearms and ammunition by a convicted felon, United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on June 5, 2020, Manchester police officers responded to a domestic violence call and observed Hardin inside the residence. The caller advised police that Hardin possessed a firearm. While speaking with the caller, officers observed Hardin walking away from the residence. Officers followed Hardin and saw him run into a parking garage and exit moments later. A police dog went through the garage and located a handgun in the area of the garage where an officer had observed Hardin. After his arrest, Hardin agreed to speak to officers and admitted he possessed the firearm.
On March 18, 2021, Hardin was arrested by Merrimack police officers on a state warrant. At the time, Hardin was driving a stolen vehicle. After the vehicle was towed, an employee of the towing company located two loaded firearms in the center console. Hardin is forbidden from possessing firearms and ammunition due to a previous felony conviction in 2016.
Hardin previously pleaded guilty on November 1, 2021. He will serve his sentence concurrent to a state prison sentence.
“To protect our community from violent crime, it is vital to keep guns out of the hands of criminals,” said U.S. Attorney Farley. “This defendant’s possession of multiple firearms created a clear risk to public safety. Thanks to good law enforcement work, this defendant has been held responsible for his unlawful conduct and our community has been protected from potential violence.”
“The unlawful possession of firearms by a convicted felon is a violation of federal law that ATF takes very seriously as it threatens the safety of our communities,” said James M. Ferguson ATF Boston Special Agent in Charge. “This investigation exemplifies ATF’s mission to work with our local and state law enforcement partners to combat the illegal possession of firearms, which in the wrong hands, could be used in crimes of violence against our citizens or law enforcement officers.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Manchester Police Department, and the Merrimack Police Department. The case was prosecuted by Assistant U.S. Attorney Debra M Walsh.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Manchester Man Sentenced to 13 Years for Drug Trafficking and Firearm ChargesRead the Press Release
CONCORD - Jonathan Sargent, 39, of Manchester, was sentenced on Tuesday to 156 months in federal prison for possession of fentanyl and 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 October 22, 2019, Manchester Police detectives and Drug Enforcement Administration agents executed a search warrant at Sargent’s apartment and arrested him on a warrant for distributing controlled substances. The search revealed several assault-style rifles, a handgun, ammunition, cash, and other items consistent with drug trafficking. Law enforcement officers also seized approximately 850 grams of methamphetamine and approximately 56 grams of fentanyl from Sargent’s apartment.
Sargent previously pleaded guilty on October 20, 2021. As part of his plea, Sargent agreed to forfeit multiple firearms that were in his possession at the time of his arrest.
“This case demonstrates the danger that armed drug traffickers pose to our community,” said U.S. Attorney Farley. “Not only was this defendant distributing significant quantities of methamphetamine and fentanyl, but he also possessed multiple guns to further his drug trafficking activities. These firearms could have been used to endanger innocent people. Thanks to excellent law enforcement work, this armed drug dealer will spend 13 years in prison and will no longer be a threat to the citizens of Manchester.”
This matter was investigated by the Drug Enforcement Administration and the Manchester Police Department. The case was prosecuted by Assistant U.S. Attorney Joachim H. Barth and Special Assistant U.S. Attorney Alexander S. Chen. Assistant U.S. Attorney Robert Rabuck handled the forfeiture aspects of this case.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Man Sentenced to 27 Years in Federal Prison for Drug Trafficking he Arranged and Directed from his Oklahoma Prison CellRead the Press Release
FAYETTEVILLE – A former inmate at an Oklahoma State Prison was sentenced today to 324 months in prison followed by five years of supervised release on one count of Conspiracy to Distribute Phencyclidine (PCP) and one count of Conspiracy to Distribute Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court documents and evidence presented at trial, Jeremy Dewight Foreman, 39, was an inmate at the Mack Alford Correctional Center in Atoka, Oklahoma, in late 2020/early 2021. In October 2020, from his prison cell, Foreman orchestrated the sale of two ounces of PCP to a confidential source working with the Drug Enforcement Administration at a residence in Springdale. Foreman arranged the PCP sale utilizing a contraband cellular phone, giving directions to both a third party that handled the delivery of the PCP as well as the confidential source. Foreman then directed the confidential source to pay for the PCP using Cash App, a mobile payment service.
In January 2021, Foreman orchestrated the delivery of over a kilogram of methamphetamine from his Oklahoma prison cell into Fayetteville. Foreman utilized a runner, Sergio Rodriguez, who was also convicted and sentenced to prison for 60 months for his role in the conspiracy, to deliver 360 grams of methamphetamine to a confidential source working with the Drug Enforcement Administration in the parking lot of a Fayetteville business. After the delivery to the confidential source, Rodriguez was stopped in a traffic stop and found to be in possession of an additional 751 grams of methamphetamine bound for an address in Fayetteville.
A federal jury convicted Foreman on September 10, 2021, after a 3-day jury trial.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Drug Enforcement Administration investigated the case with the assistance of the Fayetteville Police Department and the Benton County Sheriff’s Office.
Assistant U.S. Attorney’s Aaron Jennen and Hunter Bridges prosecuted the case.
Leader of Newburgh Street Gang “Southside” Charged with Murder and Firearms OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), today announced the unsealing of an indictment charging ARDAE HINES, a/k/a “Young Money,” a/k/a “YM,” a leader of a street and drug gang known as “Southside” in the City of Newburgh, New York, with the August 2016 murder of Deandric Little. HINES is currently in federal custody serving a 2019 sentence for racketeering and narcotics conspiracy, and was presented in White Plains federal court today. The case is assigned to U.S. District Judge Cathy Seibel.
U.S. Attorney Williams said: “Ardae Hines, a leader of the violent street gang, ‘Southside,’ is alleged to have engaged in and promoted violence in furtherance of Southside’s activities, including directing a fellow gang member to commit murder. We thank our FBI partners for their continued efforts in eliminating gang violence, which affects everyone in communities where it exists, victimizing innocent New Yorkers by instilling fear and apprehension in many going about their daily lives.”
FBI Assistant Director Michael J. Driscoll said: "Levels of criminal street gang activity in Newburgh, NY remain high, similar to other areas in this country recently. Unfortunately, shootings, drugs, and murders have become all too familiar for the community, which has been battling the rise in violence for years. We work daily with our partners at the Newburgh City Police Department and other members of the Hudson Valley Safe Streets Task Force, to ensure those responsible for the violence face justice.”
As alleged in the Indictment filed today in White Plains federal court[1]:
From at least 2014 through June 2017, the Southside Gang was a criminal enterprise centered in and around the intersection of South Street and Chambers Street in an area of Newburgh known as the “Southside.” In order to gain funds for the gang, protect the gang’s territory, and promote the gang’s standing, members of Southside engaged in, among other things, narcotics trafficking, robbery, and acts involving murder. To that end, Southside members sold heroin, crack cocaine, and marijuana in the gang’s territory, promoted their gang affiliation on social media sites such as Facebook, possessed firearms, and engaged in shootings as part of their gang membership. As alleged in the Indictment, on or about August 1, 2016, ARDAE HINES argued with Deandric Little in Newburgh, and in the course of that argument, instructed another person (“CC-1”) to shoot and kill Little, which CC-1 did.
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ARDAE HINES, 33, is charged with (1) murder in aid of racketeering, which carries a mandatory sentence of life in prison, (2) murder in connection with a drug crime, which carries a mandatory minimum sentence of twenty years in prison and maximum sentence of life imprisonment, and (3) murder through use of a firearm, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of life in prison. The mandatory minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the FBI and the City of Newburgh Police Department. Mr. Williams thanked the Orange County District Attorney’s Office for its invaluable ongoing assistance in the case. Mr. Williams also thanked the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Town of Newburgh Police Department, the New York State Police, the Orange County Sheriff’s Department, the Town of New Windsor Police Department, and the New York Department of Corrections and Community Supervision for their assistance in the case.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Lindsey Keenan, Jacqueline Kelly, and Samuel Raymond are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Las Vegas Felon Sentenced to over Five Years in Prison for Unlawful Possession of A FirearmRead the Press Release
LAS VEGAS – A Las Vegas man was sentenced yesterday to 63 months in prison for unlawful possession of a firearm while on supervised release for a prior felony.
Ralph Alexander Medina, 37, pleaded guilty in October 2021 to one count of felon in possession of a firearm. In addition to the prison term, U.S. District Judge Jennifer A. Dorsey sentenced Medina to three years of supervised release.
According to court documents, Medina was convicted in March 2015 for felon in possession of a firearm and sentenced to imprisonment followed by supervised release. On January 4, 2020, while on supervised release for that conviction, Medina assaulted his spouse, pinning her to the floor and placing a 9mm semiautomatic pistol against her head. Several weeks later, on January 29, Medina reported to the U.S. Probation Office where he tested positive for opiates and methamphetamine. Law enforcement officers arrested Medina and recovered a loaded pistol that was hidden in an air conditioning access panel in his home. Medina is prohibited from possessing a firearm due to his March 2015 felony conviction.
Acting U.S. Attorney Christopher Chiou for the District of Nevada made the announcement.
This case was investigated by the Las Vegas Metropolitan Police Department with assistance by the FBI Criminal Apprehension Team. Assistant U.S. Attorney Dan Cowhig prosecuted the case.
The case was brought as 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. For more information about PSN, visit www.justice.gov/usao-nv.
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Lackawanna County Man Found Guilty of Drug Distribution Resulting in DeathRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania has announced that on February 8, 2022, Robert Jackson, age 44, of Scranton, Pennsylvania, was found guilty of unlawfully distributing a controlled substance resulting in death after a six-day trial before U.S. District Court Judge Malachy E. Mannion.
According to United States Attorney John C. Gurganus, jurors deliberated for approximately one hour before rendering guilty verdicts against Jackson for the July 28, 2020 death of a 58-year-old Monroe County man. Jackson was also found guilty of conspiracy to distribute controlled substances resulting in death and possession with intent to distribute controlled substances.
Prosecutors from the U.S. Attorney’s Office presented the testimony of Dr. Rameen Starling-Roney, a Forensic Pathologist, and Dr. Michael Coyer, a Forensic Toxicologist, who opined that fentanyl caused the death of the Monroe County man. Additional testimony was provided by officers and detectives from the Monroe County District Attorney’s Office, the Pocono Mountain Regional Police Department, and the FBI – Scranton Office who testified that Jackson sold fentanyl to the victim in the evening of July 25, 2020, resulting in his death on July 28, 2020.
The investigation was conducted by the Federal Bureau of Investigation (FBI) in Scranton, the Monroe County District Attorney’s Office, and the Pocono Mountain Regional Police Department. Assistant United States Attorneys Michelle Olshefski and Robert O’Hara prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin and other opioids. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin and opioid traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case was also part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The maximum penalty under federal law is life in prison, a term of supervised release following imprisonment, and a fine.
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Key defendant in drug trafficking network sentenced to nearly 20 years in federal prisonRead the Press Release
SAVANNAH, GA: One of the leaders of a violent Savannah-area drug trafficking network has been sentenced to nearly 20 years in federal prison.
Kashif Collins, a/k/a “Fat Boy,” 35, of Savannah, was sentenced to 220 months in prison after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine, and two counts of Maintaining a Drug Involved Premises, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker also ordered Collins to serve five years of supervised release after completion of his prison sentence.
There is no parole in the federal system.
“The investigation in Operation Deadlier Catch methodically identified and disrupted a major drug trafficking network in the Coastal Georgia area, and our office continues the work of bringing the 29 defendants to justice,” said U.S. Attorney Estes. “Kashif Collins is being held accountable as a leader of this group that for too long funneled illegal drugs and the associated violence into our community.”
Investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Deadlier Catch involved multiple federal agencies who traced a major source of cocaine distributed in Chatham County to a drug trafficking organization that channeled drugs from Mexico through a California supplier. The network operated at least as early as 2016, through 2020, when the 29 defendants were named in a 27-count federal indictment in U.S.A. vs. Bulloch, et al.
As described in court documents and testimony, Collins was a leader in the network who purchased kilogram amounts of cocaine and supervised lower-level dealers in selling the drugs from “trap houses” located in the Savannah area.
Investigators from the FBI, the U.S. Drug Enforcement Administration (DEA), the U.S. Postal Inspection Service (USPIS), the Chatham-Savannah Counter Narcotics Team (CNT), and the Savannah Police Department monitored and infiltrated the drug trafficking network to trace the source of supply and points of distribution. In a series of searches, investigators seized more than 24 kilograms of cocaine, more than 180 pounds of marijuana, 3 kilos of heroin, and seized at least 14 firearms – many of them in the possession of previously convicted felons.
The U.S. Attorney’s Office for the Southern District of Georgia also has initiated civil forfeiture proceedings for the firearms and $1.5 million in cash and other assets including vehicles and jewelry, along with two homes in Savannah that are alleged to have been used as part of the drug distribution network.
Of the 29 defendants, 13 have pled guilty, with seven sentenced and five awaiting sentencing, while 14 defendants await trail and are considered innocent unless and until proven guilty in court. Two defendants are considered fugitives.
“Thanks to the hard work and collaboration of our law enforcement partners, one of the leaders of this extensive drug distribution network will spend significant time behind bars,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “Collins and his co-defendants were a plague in the community with their drugs, guns and violence and the FBI is committed to removing every single one of these predators from our streets.”
“This high-level cocaine distributor will spend well-deserved time prison and can no longer push insidious cocaine, which poses an imminent risk to the community,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “DEA and its law enforcement partners will continue to target drug traffickers to protect communities in Savannah and elsewhere.”
“This investigation once again shows that through the cooperation of federal, state and local law enforcement agencies, persistent and dangerous narcotics traffickers such as these will ultimately have to face the criminal justice system and potentially decades in prison,” said Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service Miami Division. “The United States Postal Inspection Service is proud to be involved in this multi-agency effort.”
“This case once again demonstrates the importance of a collaborative approach to investigations. I am thankful for the strong relationships between CNT and our federal, state, and local partners. These partnerships are producing positive results for our community,” said Michael G. Sarhatt, Director of the Chatham-Savannah Counter Narcotics Team. “It is essential that these investigations not only take down local organizations, but also successfully target the sources of supply in other locations who are responsible for the toxins being brought into this area. The sentence in this case reflects the defendant’s responsibility for the drugs and violence affecting our community.”
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. It is being investigated by the FBI, the DEA, the U.S. Postal Inspection Service, CNT, the Chatham County Sheriff’s Office, and the Savannah Police Department, and prosecuted for the United States by Assistant U.S. Attorneys Frank M. Pennington and Noah Abrams, with asset forfeitures coordinated by Xavier A. Cunningham, Section Chief of the Asset Recovery Unit of the U.S. Attorney’s Office.
Kentucky Man Criminally Charged for Discharge of Oil and Brine into Adair County CreekRead the Press Release
A federal grand jury in Bowling Green, Kentucky, issued an indictment charging Columbia resident Joshua M. Franklin, 32, with violating the Clean Water Act. The charge stems from a 2018 discharge of oil and brine water into Adair County creeks.
Franklin was an operator at an oil lease tank battery in Columbia. His duties included ensuring that brine water, a waste product from oil production, was separated from the oil before it was delivered to customers. The indictment alleges that on Aug. 22, 2018, the oil/water separator at the site used to remove brine water was not functioning. Instead, to remove the brine water, Franklin attached a conduit to the bottom of the oil tank and placed the open end of the conduit yards from a nearby creek. Franklin opened the tank valve, allowing a mixture of brine water and oil to discharge from the tank. With the valve still open, Franklin left the site. As a result, approximately 100 barrels (about 4,000 gallons) of the oily mixture discharged into a nearby creek and eventually flowed into connecting tributaries.
The Environmental Protection Agency and the Kentucky Department of Environmental Protection conducted the investigation. The maximum penalty under the Clean Water Act is three years’ imprisonment and a fine of $250,000. A court may also impose a restitution payment for the costs of the cleanup.
The government is represented by Senior Trial Attorney Daniel Dooher and Trial Attorney Ryan Connors of the Department of Justice’s Environmental Crimes Section.
An indictment is only an allegation, and the defendant is presumed innocent until proven otherwise before a jury at trial.
Kalispell man sentenced to more than two years in prison for possessing sawed-off, unregistered firearmRead the Press Release
MISSOULA — A Kalispell man was sentenced today to two years and four months in prison to be followed by three years of supervised release on a firearm conviction after admitting he possessed a loaded, sawed-off rifle that had an obliterated serial number, U.S. Attorney Leif M. Johnson said.
Zachary Jon Lindsay, 39, pleaded guilty in October 2021 to possession of an unregistered firearm.
U.S. District Judge Dana L. Christensen presided.
In court documents, the government alleged that in February 2021, Kalispell Police responded to a report of a shoplifter leaving Sportsman & Ski Haus. The officer located the suspect vehicle driven by Lindsay, the sole occupant. A pursuit ensued and ended when Lindsay came to a dead end and fled on foot. The officer caught and arrested Lindsay. During a search of Lindsay, the officer found .22-caliber ammunition and a loaded .22-caliber magazine. When asked if he had any guns on him, Lindsay responded that there was one in the vehicle. A search warrant was served on the vehicle and officers located a loaded, Ruger .22-caliber rifle with a scope, custom pistol grip stock, sawed-off barrel and obliterated serial number. The firearm was under a stolen fly rod. Officers also found several spend .22-caliber casings throughout the car.
Assistant U.S. Attorney Karla E. Painter prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kalispell Police Department.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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KC Man Involved in Shooting, Trafficking Firearms on FacebookRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Kansas, man who was involved in a shooting, which resulted in injuries to several people, was sentenced in federal court today for illegally possessing ammunition.
Dyqwon Deonte Brown, 28, was sentenced by U.S. Chief District Judge Beth Phillips to eight years in federal prison without parole.
On Sept. 20, 2021, Brown pleaded guilty to being a felon in possession of ammunition. According to court documents, Brown was heavily involved in illegally trafficking firearms through his Facebook account. He even engaged in this conduct while in the hospital being treated for a gunshot wound.
The investigation began when Brown was taken to Research Hospital in Kansas City, Missouri, on April 21, 2019, with a gunshot wound to the leg. Hospital security officers found a Glock handgun magazine loaded with 10 rounds of ammunition and one loose round of ammunition in Brown’s pants pocket. He refused to tell police officers his name or provide any information regarding how or where he was shot.
Security footage from the hospital showed Brown was dropped off by a gold Ford Fusion with black rims. Kansas City police officers were dispatched to the scene of a shooting at 2924 Mersington Ave., Kansas City, shortly before Brown was dropped off at the hospital. According to court documents, several innocent bystanders, including young children, were put in grave danger during the shooting. Witnesses told officers that people involved in the shooting occupied a gold Ford Fusion with black wheels. A witness also identified Brown as one of the parties involved in the shooting. Witnesses described one of the shooters wearing the same clothes that Brown was wearing when he arrived at the hospital.
Officers contacted two people suffering from gunshot wounds when they arrived at the scene of the shooting – a man with wounds to his head and a woman with wounds to her arm. Officers recovered nine 9mm shell casings, 13 .40-caliber shell casings, and 22 7.62x39 shell casings.
Investigators reviewed Brown’s Facebook profile, which used the vanity name “Hush Hoodstar.” Brown uses the moniker “Hush” for his rap music. On March 24 and April 6, 2019, Brown posted photos of himself holding firearms. The first photo contains an assault-style firearm and Glock handgun with an extended magazine. The second photo contains four separate handguns. Brown’s Facebook messages shows he was heavily involved in the trafficking of firearms. Brown’s private Facebook messages indicate he was buying, selling, and trading firearms on nearly a daily basis, although as a convicted felon it was illegal for him to possess any firearms or ammunition. In those messages, Brown often sent photos depicting several firearms he purported to possess at that time that were available for sale or trade.
On April 30, 2019, nine days after the shooting, Brown posted a photo of himself depicting bandages to his left hip or thigh area, the location of his gunshot wound. According to court documents, Brown bragged about the shooting in his Facebook conversations, admitting that he was involved in the shooting and that the shooting was retaliation for a firearm stolen from him.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Brown has two prior felony convictions for aggravated robbery and a prior felony conviction for unlawful use of a weapon (carrying a concealed .40-caliber handgun).
This case was prosecuted by Assistant U.S. Attorney Ashleigh A. Ragner and Special U.S. Attorney Sarah Rasalam. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Johnstown Man Pleads Guilty to Failing to Register as a Sex OffenderRead the Press Release
JOHNSTOWN, Pa. – A former resident of Johnstown, PA pleaded guilty in federal court to a charge of failure to register as a sex offender, United States Attorney Cindy K. Chung announced today.
Andrew Gere, 53, pleaded guilty to Count One of the Information before United States District Judge Stephanie Haines.
In connection with the guilty plea, the court was advised that from on or about Feb. 2, 2021, to on or about July 20, 2021, Gere traveled in interstate commerce, and did knowingly, intentionally, and unlawfully, fail to register and update a registration, as required by the Sex Offender Registration and Notification Act.
Judge Haines scheduled sentencing for June 21, at 1:30 p.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Arnold P. Bernard Jr. is prosecuting this case on behalf of the government.
The United States Marshals Service conducted the investigation that led to the prosecution of Gere.
Johnstown Felon Indicted for Illegal Gun and Ammunition PossessionRead the Press Release
JOHNSTOWN, Pa. -- A resident of Johnstown, PA, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Cindy K. Chung announced today.
The one-count Indictment named Hasus L. Hardy, 34, as the sole defendant.
According to the Indictment presented to the court, on or about August 25, 2021, Hardy knowingly, intentionally, and unlawfully, possessed firearms and ammunition, after having previously been convicted of a crime punishable by imprisonment for a term exceeding one year.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Arnold P. Bernard Jr. is prosecuting this case on behalf of the government.
The United States Marshals Service conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Jefferson Parish Man Sentenced for Mail FraudRead the Press Release
NEW ORLEANS, LOUISIANA – KHANH BUI, age 45, a resident of Westwego, Louisiana, was sentenced on February 8, 2022 for mail fraud, announced U.S. Attorney Duane A. Evans. The Honorable Susie Morgan sentenced BUI to 15 months incarceration, 3 years supervised release, $10, 853 in restitution, and payment of a $100 Special Assessment fee.
According to court documents, BUI fraudulently used credit cards and false California driver’s licenses to obtain money and property from home improvement stores.
U.S. Attorney Evans praised the work of the United States Postal Inspection Service in investigating this matter. The prosecution of this case is being handled by Assistant U.S. Attorney G. Dall Kammer, Chief of the General Crimes Unit.
Iranian money launderer and former fugitive sent to U.S. prisonRead the Press Release
LAREDO, Texas – A 51-year-old man who resided in Iran and Laredo has been ordered to prison following his conviction of conspiracy to commit money laundering in a scheme known as the “Black Market Peso Exchange (BMPE),” announced U.S. Attorney Jennifer B. Lowery.
Mohsen Mohammadi-Mohammadi pleaded guilty Dec. 1, 2021.
Today, U.S. District Judge Marina Garcia Marmolejo ordered him to serve a total of 40 months in prison. Not a U.S. citizen, Mohammadi is expected to face removal proceedings following the sentence. In imposing the sentence, the court commented on the seriousness of the offense and Mohammadi’s willing participation in the crime. Judge Marmolejo further ordered the forfeiture of $177,345, the monies his laundered through his business.
From October 2011 to October 2013, Mohammadi and others conspired to launder drug trafficking proceeds. They obtained monies from the sale of illegal drugs in the United States into Mexico using the BMPE, a form of trade-based money laundering. Co-conspirators would launder drug proceeds through international trade. As a result, Mexico-based drug dealers ultimately received their profits in Mexican pesos.
Conspirators would pick up drug proceeds from cities in the United States and transported and/or transferred them to Laredo. There, the monies were laundered through commodities businesses such as perfume sellers. Mohammadi owned such a business known as Mav Trading Inc.
At the time of his plea, he admitted he received drug proceeds as payment for merchandise sold to Mexican businesses.
Businesses that receive more than $10,000 must file a Form 8300. Mohammadi filed such, but they had material omissions and false statements in order to conceal the source and origin of the money.
Following the issuance of an arrest warrant, Mohammadi fled the United States to Iran. He traveled to a variety of places and eventually landed in New York City, New York, where authorities took him into custody. He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and IRS-Criminal Investigation conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) operation dubbed Operation Zahhak with the assistance of Customs and Border Protection and the U.S. Marshal Service. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, and transnational 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 on the Department of Justice’s OCDETF webpage. Assistant U.S. Attorney José Angel Moreno and Trial Attorney Keith Liddle of the Department of Justice, Money Laundering and Asset Recovery Section prosecuted the case.
Investment Club Treasurer Going to Prison for Two Years for Embezzling Hundreds of Thousands of DollarsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Thomas Mann, 74, of Addison, NY, who was convicted of wire fraud, was sentenced to serve 24 months in prison by Chief U.S. District Judge Elizabeth A. Wolford. Mann was also ordered to pay restitution totaling $273,571.66.
Assistant U.S. Attorney John J. Field, who handled the case, stated that the Transport Investment Club (TIC), which had approximately 25 investing members, was formed in 1958, in the small community of Wellsboro, PA. Mann, a well-known high school math teacher and long-time friend of most of the TIC members, was elected treasurer of TIC in 1994. Mann’s duties included collecting and disbursing funds, buying, and selling stocks as directed by TIC and its members, maintaining a set of books covering operations and assets, and preparing a monthly statement documenting the club’s liquidating value, which was the total value of the club’s stock holdings. Mann had sole control over the TIC bank account at Citizens and Northern Bank (C&N Bank) and the TIC investment accounts at brokerage firms. Funds collected at TIC monthly meetings were supposed to be used to purchase stocks in the TIC investment accounts as directed by the club members. Over the years, Mann regularly embezzled TIC’s funds for his personal use rather than investing the funds. By February 2020, TIC’s investments should have been worth approximately $290,614.05. In actuality, Mann had embezzled all but $707.74 of TIC’s stock holdings. For more than a decade, Mann routinely provided TIC members with fraudulent liquidation statements, which misrepresented the actual values of TIC’s purported investments. As one of the victims stated: “Mann’s soulless duplicity and clear cunning fooled us all.”
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
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Hardy County man admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – David Lee Hockenberry, of Fisher, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Hockenberry, 48, pleaded guilty today to one count of “Possession with Intent to Distribute More Than Five Grams of Methamphetamine.” Hockenberry admitted to having more than five grams of methamphetamine, also known as “crystal meth” and “ice,” in Hardy County in March 2021.
Hockenberry faces at least five years and up to 40 years of incarceration and a fine of up to $5,000,000. 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 Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Hardy County man admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Roger Allen See, of Wardensville, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
See, 31, pleaded guilty to one count of “Conspiracy to Distribute Methamphetamine.” See admitted to distributing methamphetamine from September to November 2020 in Hardy County.
See 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 Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Guilford County Man Sentenced for Firearm and Drug Trafficking ChargesRead the Press Release
GREENSBORO - Arthur Alexander McQueen, Jr., also known as “Tubb”, 36, was sentenced on February 9, 2022, to 292 months in prison for possession with intent to distribute fentanyl and to 120 months in prison for felon in possession of a firearm to run concurrently with his conviction for the drug trafficking charge. Sandra J. Hairston, United States Attorney for the Middle District of North Carolina, made the announcement.
According to court documents, Homeland Security Investigations (HSI) Charlotte, along with the Albemarle Police Department and the Davie County Sheriff’s Office conducted a controlled drug purchase on May 20, 2021 between McQueen and a confidential informant (CI). The CI contacted McQueen and arranged to purchase 500 grams of fentanyl for $25,000 at a location in Forsyth County. McQueen was surveilled leaving a residence in Guilford County to meet the CI in Forsyth County. After the transaction, officers confiscated the suspected fentanyl. Laboratory tests conducted by the Department of Homeland Security U.S. Customs and Border Patrol confirmed that the contents were 525.1 grams of a fentanyl.
On June 7, 2021, investigators obtained a search warrant for McQueen’s Guilford County residence. The warrant was executed on June 8, 2021 and officers seized a stolen FN Herstal 5.7 caliber handgun with a large capacity magazine, a large quantity of U.S. currency, various drug paraphernalia consistent with drug distribution, several bags of suspected fentanyl, and a bag containing suspected crack cocaine. Later laboratory testing confirmed that these suspected controlled substances amounted to 4.109 kilograms of fentanyl and 26.76 grams of cocaine base (crack cocaine). McQueen was found in the master bedroom trying to dispose of fentanyl in the toilet and bathtub and was arrested. Following his arrest, McQueen consented to an interview and made incriminating statements to investigators regarding his distribution of controlled substances and his purchase of the firearm.
At the time of the offenses, McQueen had previously been convicted of multiple felony offenses related to drug distribution in Forsyth County, North Carolina. Therefore, McQueen knew he was a convicted felon and was barred from possessing a firearm.
“Thankfully, this trafficker’s poison was not able to reach the streets and destroy countless lives,” said Special Agent in Charge Ronnie Martinez, who oversees Homeland Security Investigations (HSI) operations in North Carolina and South Carolina. “Thanks to the outstanding work of our special agents and officers with the Albemarle Police Department, Davie County Sheriff’s Office and federal prosecutors, we have ensured that McQueen is being held fully accountable.”
“The results of this case will have a major impact on the community and ATF was proud to be a part of this collaborative effort,” said ATF Special Agent in Charge Vince Pallozzi. “Removing these dangerous, repeat offenders is a critical step towards improving public safety throughout the area.”
This case was prosecuted by Assistant U. S. Attorney Craig M. Principe. Homeland Security Investigations Charlotte Division, Homeland Security Investigation Southeast Regional Special Response Team, the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives Charlotte Division, Albemarle Police Department, Davie County Sheriff’s Office, Forsyth County Drug Task Force, and Guilford County SWAT were involved in the investigation of the case.
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Guatemalan Man Pleads Guilty to Entering the United States After a Prior RemovalRead the Press Release
BANGOR, Maine: A Guatemalan man pleaded guilty in federal court today to entering the United States after a prior removal, U.S. Attorney Darcie N. McElwee announced.
According to court records, in December 2021, Nelson Obed Mendez-Gomez, 31, was a passenger in a truck driving in Rangeley. The vehicle refused to yield despite being followed by a U.S. Border Patrol Agent who was driving in a law enforcement vehicle with emergency lights and sirens. Once the truck stopped, Mendez-Gomez was removed along with the other vehicle occupants. A subsequent records check revealed that he had previously been deported from the United States on January 1, 2013, and July 12, 2017.
Mendez-Gomez faces up to two years in prison and a $250,000 fine. He also faces not more than one year of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Border Patrol investigated the case.
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Grand Jury indicts area man for his role in a string of violent crimesRead the Press Release
ST. LOUIS – A federal grand jury indicted James Furlow on today’s date for numerous counts related to a crime spree during the last week of December 2021.
The indictment charges that Furlow committed three armed robberies, specifically, two carjackings and a commercial business robbery. In addition, it is alleged that Furlow discharged a firearm while committing the business robbery, severely injuring an employee, and that Furlow brandished a firearm while committing both carjackings.
The indictment alleges on December 26, 2021, Furlow carjacked a victim at gunpoint, stealing a 2017 Kia Sorrento. Later that same day, Furlow robbed a Quik Mart store and shot the clerk during the robbery. On December 30, 2021, Furlow carjacked another victim at gunpoint, stealing a 2020 Volkswagen Tiguan.
Following the December 30, 2021, carjacking, officers saw the Tiguan. Furlow was driving and fled from officers in the Tiguan, before ultimately fleeing on foot. Eventually, Furlow was found and arrested. Furlow is currently in custody.
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 Federal Bureau of Investigation, St. Louis County Police Department, Overland Police Department, North County Police Cooperative, and the St. Ann Police Department.
Grand Jury Returns Indictment Charging Munhall Felon with Illegal Possession of a Gun and AmmunitionRead the Press Release
PITTSBURGH, PA – A resident of Munhall, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney Cindy K. Chung announced today.
The one-count Indictment named Zai Quan Henderson, age 24, as the sole defendant.
According to Indictment, on or about January 12, 2022, Henderson was in possession of a firearm and ammunition as a convicted felon. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
The law provides for a maximum total sentence of ten years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. The defendant is in the custody of the U.S. Marshals.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Allegheny County Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Golden Meadow Man Sentenced to 135 Months Imprisonment for Possession of Child Sexual Abuse MaterialRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that EVERETT J. DILLON (“DILLON”), age 34, of Golden Meadow, Louisiana, was sentenced on February 8, 2022 for Possession of Materials Involving the Sexual Exploitation of Children in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and (b)(2).
According to documents filed in federal court, the case against DILLON developed as a result of a lead to the Louisiana Bureau of Investigation (“LBI”) that a KIK user had sent explicit videos of children, aged approximately ten (10) years of age. On December 1, 2020, Homeland Security Investigations (“HSI”) special agents along with the LBI executed a search warrant at DILLON’s home in Golden Meadow. Agents advised DILLON of his Miranda rights and, after waiving his rights, DILLON admitted that the KIK account and email address were his and that he stored child pornography on his electronic equipment. HSI computer forensic examiners located over 4,000 images and videos depicting the sexual victimization of children on the defendant’s AT&T cellular phone. The images and videos depicted pre-pubescent girls, including toddlers, engaged in sexual acts with adults.
U.S. District Judge Wendy B. Vitter sentenced DILLON to 135 months imprisonment, followed by 8 years of supervised release, $27,000 in restitution, and payment of a $100 mandatory special assessment fee.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Louisiana Bureau of Investigation and the U.S. Department of Homeland Security, Homeland Security Investigations with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
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Fort Wayne Man Sentenced to 72 Months in PrisonRead the Press Release
FORT WAYNE – Benjamin Durnell, 39 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady, after pleading guilty to distribution of material involving the sexual exploitation of minors, announced United States Attorney Clifford D. Johnson.
Durnell was sentenced to 72 months in prison followed by 5 years of supervised release.
According to documents in the case, in May 2019, an FBI undercover employee, using a social media mobile messaging service, began texting with an individual who expressed a sexual interest in juvenile males. During the course of their conversations, the male, later identified as Durnell, sent the undercover two still images and six videos of males engaged in intercourse with juvenile males. Durnell also expressed an interest in engaging in the same conduct with juvenile males.
This case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
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Former SUNY Delhi Student Sentenced for Unemployment Insurance FraudRead the Press Release
BINGHAMTON, NEW YORK – Makahi Daevon Bryant, 20, of Brooklyn, New York was sentenced yesterday to three years of probation for his role in an unemployment insurance fraud scheme, announced United States Attorney Carla B. Freedman; Matthew Scarpino, Acting Special Agent in Charge of Homeland Security Investigations (HSI), Buffalo Field Office; and Jonathan Mellone, Special Agent in Charge, New York Region, United States Department of Labor, Office of Inspector General (USDOL-OIG).
As part of his previously entered guilty plea to one count of access device fraud, Bryant admitted he obtained debit cards containing unemployment insurance benefits issued by the State of California in the names of other people. During September and October 2020, while a student at the State University of New York at Delhi (SUNY Delhi), Bryant effected over $13,000 in transactions using two debit cards to obtain cash, goods, and services. Bryant was not authorized to use the debit cards by the people whose names and other personal information were used to apply for the unemployment insurance benefits, or by the State of California.
Senior United States District Judge Thomas J. McAvoy also ordered Bryant to perform 60 hours of community service, pay restitution to the State of California, and forfeit assets.
This case was investigated by Homeland Security Investigations (HSI) and the United States Department of Labor, Office of Inspector General (USDOL-OIG), with assistance from the New York State University Police at Delhi, and prosecuted by Assistant U.S. Attorney John T. Chisholm.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Former Pitt Emergency Official Admits Stealing and Selling PPE Masks During the Covid PandemicRead the Press Release
PITTSBURGH, PA- A resident of Pittsburgh, Pennsylvania, has pleaded guilty to one count of been of Interstate Transportation of Stolen Property, United States Attorney Cindy K. Chung announced today.
Christopher D. Casamento, age 42, of Pittsburgh, PA 15237, pleaded guilty to one count before the Honorable Arthur J. Schwab.
The United States represented that PayPal informed the FBI that a vendor on Ebay known as “Steel-City-Motor-Toys” sold over 13,000 PPE, primarily Aura N-95 Masks, surgical masks and particulate masks at inflated prices during the height of the Covid pandemic in early 2020. FBI confirmed that the registered owner of Steel City Motor Toys was the defendant, Christopher D. Casamento, who admitted to stealing PPE from his former employer, the University of Pittsburgh while serving as the Director of Emergency Management during the Covid pandemic from February 28, 2020, to March 22, 2020. Masks were shipped to buyers in states outside of Pennsylvania, earning Casamento approximately $18,783.50. Casamento was terminated by University of Pittsburgh officials in July 2020.
The court scheduled sentencing for June 15, 2022, at 9:30 a.m. The law provides for a maximum total sentence of not more than 10 years in prison, a fine not to exceed $250,000.00, a term of supervised release of not more than three years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the prosecution of Casamento.
Former NFL Player Sentenced to Prison for Nationwide Health Care Fraud SchemeRead the Press Release
A former National Football League (NFL) player was sentenced today to five years in prison for orchestrating a nationwide scheme to defraud a health care benefit program for retired NFL players.
According to court documents, Robert McCune, 42, of Riverdale, Georgia, defrauded the Gene Upshaw NFL Player Health Reimbursement Account Plan (the Plan). The Plan was established pursuant to the NFL’s 2006 collective bargaining agreement. It provided former players, their spouses and their dependents, up to a maximum of $350,000 per player tax-free reimbursement of out-of-pocket medical care expenses that were not covered by insurance.
Court documents show that McCune submitted false and fraudulent claims to the Plan on his own behalf and on behalf of dozens of other former NFL players. Between June 5, 2017, and April 12, 2018, he submitted 68 claims for 51 other players. The claims typically sought reimbursement of $40,000 or more for expensive medical equipment such as hyperbaric oxygen chambers, ultrasound machines and electromagnetic therapy devices. None of the medical equipment described in the claims was ever purchased or received. In total, McCune and his co-conspirators submitted approximately $2.9 million in fraudulent claims to the Plan.
Court documents further show that McCune obtained identifying information for other participants in the Plan, including the player’s name, insurance identification number, social security number, mailing address and/or date of birth. In exchange for submitting the false and fraudulent claims, McCune demanded kickbacks and bribes in the thousands of dollars for each claim submitted.
McCune pleaded guilty to one count of conspiracy to commit health care fraud and wire fraud, 10 counts of wire fraud, 12 counts of health care fraud and three counts of aggravated identity theft.
Thirteen other defendants have been sentenced for their participation in the nationwide scheme:
- John Eubanks, 38, of Cleveland, Mississippi, was sentenced to 18 months in prison;
- Tamarick Vanover, 47, of Tallahassee, Florida, and Ceandris Brown, 39, of Iowa Colony, Texas, were each sentenced to a year and a day in prison;
- Correll Buckhalter, 43, of Colleyville, Texas, was sentenced to 10 months in prison, followed by 300 days’ home detention;
- Clinton Portis, 40, of Fort Mill, South Carolina, was sentenced to six months in prison, followed by 180 days’ home detention;
- Etric Pruitt, 40, of Theodore, Alabama, was sentenced to three months in prison, followed by 180 days’ home detention;
- James Butler, 39, of Atlanta, Georgia, was sentenced to two months in prison, followed by 180 days’ home detention;
- Carlos Rogers, 40, of Alpharetta, Georgia, was sentenced to 180 days’ home detention and 400 hours of community service;
- Anthony Montgomery, 37, of Cleveland, Ohio; Antwan Odom, 40, of Irvington, Alabama; Darrell Reid, 39, of Farmingdale, New Jersey; and Fredrick Bennett, 38, of Port Wentworth, Georgia, were each sentenced to 180 days’ home detention and 240 hours of community service; and
- Joe Horn, 50, of Columbia, South Carolina, was sentenced to 200 hours of community service.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
This case was investigated by the FBI and included efforts by various FBI Field Offices and Resident Agencies, including Augusta, Georgia; Birmingham and Mobile, Alabama; Cleveland, Ohio; Chicago, Illinois; Columbia, South Carolina; Dallas and Houston, Texas; Denver, Colorado; Jackson, Mississippi; Lexington, Kentucky; New Orleans, Louisiana; Miami, Jacksonville, and Tampa, Florida; Newark, New Jersey; Los Angeles, San Diego, Sacramento, and Newport Beach, California; Phoenix, Arizona; Salt Lake City, Utah; and Washington, D.C.
Assistant Chief John (Fritz) Scanlon and Trial Attorney Alexander J. Kramer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew E. Smith of the Eastern District of Kentucky prosecuted the case.
Former Mexican Federal Police Commander Sentenced to 10 Years’ Imprisonment for Drug Trafficking ConspiracyRead the Press Release
Earlier today in federal court in Brooklyn, Ivan Reyes Arzate, a former Mexican Federal Police Officer and Commander of the Mexican Federal Police’s Sensitive Investigative Unit (“SIU”), was sentenced by United States District Judge Brian M. Cogan to 10 years’ imprisonment for participating in a drug trafficking conspiracy. Reyes Arzate accepted a bribe in exchange for agreeing to assist El Seguimiento 39, a Mexico-based cartel, ship cocaine from Mexico to the United States. The El Seguimiento 39 cartel is associated with the Sinaloa Cartel, the Beltran Leyva Organization and other Mexico-based cartels. Reyes Arzate pleaded guilty to the charge in October 2021.
Breon Peace, United States Attorney for the Eastern District of New York; Timothy Foley, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA); Ricky J. Patel, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI); Keechant L. Sewell, Commissioner, New York City Police Department (NYPD); and Kevin P. Bruen, Superintendent, New York State Police (NYSP), announced the sentence.
“In betraying his oath and partners in law enforcement in exchange for cash bribes, Arzate became a willing participant in drug trafficking and in spreading massive and dangerous amounts of cocaine in our communities,” stated United States Attorney Peace. “Corrupt police officers who use their government positions to further the interests of the drug cartels and harm our communities will be brought to justice and punished for their crimes. Their badges will not shield them from accountability.” Mr. Peace expressed his appreciation to the United States Attorney’s Offices for the Southern District of California and the Northern District of Illinois for their assistance on the case.
“Reyes Arzate’s crimes were an affront to law enforcement, especially those working to suppress illegal drug’s from hitting American streets. Today’s sentencing demonstrates DEA and our law enforcement partners’ commitment to the Rule of Law. I commend the New York Strike Force and the U.S. Attorney’s Office Eastern District of New York for their diligent work,” stated DEA Special Agent-in-Charge Foley.
“Azarte was entrusted with protecting the people of Mexico as a public servant, but instead served himself by lining his pockets with cartel cash,” stated HSI Acting Special Agent- in-Charge Patel. “Azarte betrayed his country, his community, and his brothers and sisters in law enforcement when he took bribes in exchange for valuable law enforcement information and conspired with narcotics traffickers to import hundreds of kilograms of cocaine into the United States. Today’s sentence sends a clear message that anyone who violates their oath of office and decides to partner with drug cartels will face severe consequences and will be held accountable for their reprehensible violation of the public’s trust.”
According to court filings, SIU officers in Mexico routinely work with U.S. law enforcement to combat narcotics trafficking, money laundering and other criminal activities. From 2003 to 2016, Reyes Arzate was a Mexican Federal Police Officer assigned to SIU. In 2008, he was appointed SIU Commander, making him its highest-ranking officer and principal point of contact for information sharing between U.S. and Mexican law enforcement personnel assigned to the SIU.
In approximately November 2016, while participating in a joint investigation of El Seguimiento 39 with U.S. law enforcement authorities, Reyes Arzate met with the leadership of El Seguimiento 39, shared with them information about the U.S. law enforcement investigation, and accepted a $290,000 bribe in exchange for his agreement to assist the cartel. The amount of cocaine involved in the conspiracy attributable to the defendant as a result of his conduct, and the conduct of others, was more than 450 kilograms.
This investigation was led by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime DEA Task Force and the New York/New Jersey High Intensity Drug Trafficking Area. The Strike Force is based at the DEA’s New York Division and includes agents and officers of the DEA, NYPD, NYSP, HSI, U.S. Internal Revenue Service Criminal Investigation Division, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, U.S. Secret Service, United States Marshals Service, New York National Guard, Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department and New York State Department of Corrections and Community Supervision.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section and Public Integrity Section. Assistant United States Attorneys Ryan Harris and Philip Pilmar are in charge of the prosecution.
The Defendant:
IVAN REYES ARZATE
Age: 49
Mexico City, MexicoE.D.N.Y. Docket No. 20-CR-30 (BMC)
Former Little Rock School District Administrator Pleads Guilty to Mail FraudRead the Press Release
LITTLE ROCK—A former Little Rock School District (LRSD) administrator pleaded guilty to mail fraud this afternoon after spending over $230,000 of school district funds on personal online shopping. Karen James, 48, of Little Rock, who had been the Director of Early Childhood Education and Elementary Literacy for LRSD since 2010, entered her guilty plea today before United States District Court Judge Kristine Baker.
James managed procurement for LRSD’s early childhood education programs. As part of that job, she was issued two credit cards to make purchases for the early childhood programs throughout the district. These credit cards were funded by state and federal grants. James was required to read and sign several agreements that stated the cards could not be used for personal purchases or for the purchase of gift cards. LRSD also prohibited shipping items purchased with an LRSD credit card to one’s home residence. The district required James to document each credit card purchase by logging each transaction and providing a receipt or other confirmation of the purchase.
In August 2018, LRSD discovered that James was submitting fabricated receipts and false transaction logs. The receipts and logs were altered to reflect authorized purchases, but LRSD obtained the original receipts from vendors, which showed her actual purchases were for personal use. Many purchases were shipped to her home residence in violation of LRSD policy.
From August 2014 until she was detected in August 2018, James used her LRSD credit cards to shop online for herself. She spent over $4,000 at Wayfair on bath rugs, a recliner, and other home goods. She made 83 unauthorized purchases through PayPal totaling more than $27,000. She purchased 2,462 items on Amazon, spending over $199,200 on items such as clothing, makeup, housewares, knitting materials, pet products, and gift cards. The investigation has revealed $230,635.86 of fraudulent purchases. James’ plea agreement requires her to pay that amount in restitution back to the Little Rock School District.
Judge Baker will sentence James at a later date. The United States Secret Service conducted the investigation, and Assistant United States Attorney Amanda Jegley is prosecuting the case.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Former Ford County Resident Pleads Guilty to Charges Related to Domestic TerrorismRead the Press Release
URBANA, Ill. – Emily Claire Hari, formerly known as Michael B. Hari, 50, of the 200 block of First Street in Clarence, Illinois, pleaded guilty today to conspiracy to interfere with commerce by threats and violence, attempted arson, unlawful possession of a machinegun, and unlawful possession of a firearm by a felon. Sentencing for Hari has been scheduled on June 13, 2022, at 1 p.m. at the U.S. Courthouse in Urbana, Illinois.
In court before Magistrate Judge Eric I. Long, Hari admitted guilt to all four charges contained in the indictment. During the hearing, the government stated that, during the latter part of 2017, Hari started a militia group, which called itself the “Patriot Freedom Fighters,” and which sometime later went by the nickname the “White Rabbits.” In addition to Hari, who served as its founder and leader, the militia group included convicted conspirators Michael McWhorter, Joe Morris, Ellis J. Mack, and Wesley Johnson. Around the latter part of 2017, the conspirators began engaging in repeated criminal acts of violence, which they referred to as “jobs.” As part of their militia activities, the conspirators obtained materials used to make incendiary devices, provided weapons and uniforms to the conspirators, and assigned rank to the conspirators To assist in their militia activities, the conspirators acquired and/or assembled four shotguns and four assault rifles, some of which were fully automatic. The weapons, as well as thermite (a pyrotechnic composition), were stored in a locked safe in the militia group’s “office” in Clarence.
On November 7, 2017, Hari, McWhorter, Morris, and Johnson travelled to the Women’s Health Practice located in Champaign, Illinois. The Women’s Health Practice provided medical services at that location and purchased and distributed medical supplies. The conspirators went to the Women’s Health Practice for the purpose of using an incendiary device (i.e., a pipe bomb) constructed by Hari to set the building on fire. Hari rented a truck in which the conspirators traveled to the Women’s Health Practice. Once there, Morris broke a window and placed the pipe bomb in the building; the pipe bomb did not ignite, however. On the morning of November 7, 2017, a receptionist at the Women’s Health Practice found the pipe bomb on the floor and called law enforcement officers.
On December 16, 2017, with Hari’s approval, the conspirators traveled from Clarence to a residence in Ambia, Indiana, for the purpose of robbing a Hispanic individual they believed to be involved in drug trafficking. The conspirators wore their “White Rabbit” uniforms and were each armed with firearms. Pretending to be law enforcement officers executing a search warrant, the conspirators forced entry to the residence. The conspirators handcuffed and zip-tied the residents, causing injury to the wrists of one of the zip-tied individuals. After searching for cash and drugs, the conspirators left the residence and returned to Clarence.
On two occasions in December 2017, several conspirators traveled to WalMart stores in Illinois (one in Watseka, and one in Mt. Vernon) with Hari’s approval to attempt to obtain money. The conspirators entered the stores armed with dangerous weapons and confronted cashiers.
On January 17, 2018, Hari, McWhorter, and Morris traveled from Clarence to a location near Effingham, Illinois, where they attempted to sabotage railroad tracks owned by the Canadian National Railway, through the use of an incendiary device. Following the attempted sabotage, the conspirators sent an extortionate demand via anonymous e-mail to the Canadian National Railway threatening that that there would be more damage inflicted by the conspirators to railroad tracks if the railroad did not pay the conspirators approximately $190,000 in cryptocurrency.
On February 18, 2018, the conspirators planted bomb-making materials, including a pipe bomb, on the property of an individual in Clarence to attempt to get the individual in trouble with law enforcement prior to a court hearing in Ford County where Hari faced criminal charges for allegedly assaulting the individual in June 2017. Hari then e-mailed an anonymous “tip” to federal authorities that explosive devices were contained in a suitcase and gray bag in a shed at the individual’s property. On the same day, the FBI responded to the address and found multiple explosive devices, including a pipe bomb attached to a small green propane tank, in a shed at the back of the residence.
Following the Clarence search, the conspirators became concerned that the FBI might search the militia group’s office and seize their weapons, including the machineguns. Therefore, Hari and McWhorter moved the weapons, including the machineguns, to the residence of another member of the militia group located in Clarence, where they were later seized by the FBI. The same day the FBI seized the conspirators’ machineguns, the defendant, McWhorter, Morris, and Mack fled Clarence, Illinois, on foot and stayed in the woods and in abandoned barns. While they were “on the run,” the conspirators made a video where they wore masks and requested assistance from other militia members.
Hari remains in the custody of the U.S. Marshals Service pending sentencing in the Central District of Illinois. In December 2020, following a jury trial, Hari was convicted of charges related to the August 2017 firebombing of a mosque in Minnesota, along with McWhorter and Morris. A federal judge in Minnesota previously sentenced Hari to fifty-three years of imprisonment for those charges.
Hari faces statutory penalties of a minimum five-year to maximum twenty-year term of imprisonment for the attempted arson of the Women’s Health Practice, a maximum twenty-year term of imprisonment for conspiracy to interfere with commerce by threats and violence, and a maximum ten-year term of imprisonment for the firearms charges.
The case investigation was conducted by the Federal Bureau of Investigation’s Springfield Office. Supervisory Assistant U.S. Attorney Eugene L. Miller is representing the government in the Central District of Illinois prosecution.
Former Financial Controller Charged with Embezzling over $1.8 Million from Multinational Technology Company Based in Montgomery CountyRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Donna Laansma, 57, of Fairless Hills, PA, was charged by Information with wire fraud and tax evasion in connection with a scheme to embezzle over $1.8 million from her former employer, and for failing to report these fraudulently obtained earnings to the Internal Revenue Service.
The defendant is the former Financial Controller of Astea, a global management software company based in Horsham, PA, and managed the company’s finances worldwide. The Information alleges that Laansma obtained a corporate credit card that she kept hidden from senior management. Between November 2014 and November 2020, the defendant is charged with using the secret card to spend over $1.8 million on personal expenditures such as her son’s college tuition, monthly payments on her personal bank accounts, vacations, shoes, groceries, furniture, and gift cards. She is also charged with using her position as Financial Controller to pay down the corporate card bills, and falsely recording these payments as legitimate business expenses in company books. The secret corporate credit card was discovered in 2020, after Astea was acquired by another global enterprise software company. Laansma, who was a Certified Public Accountant and familiar with the tax code, is also charged with failing to report this extra income as earnings on her tax forms.
“This defendant allegedly swindled almost two million dollars from her former employer, covering her tracks so well that her fraud was only discovered when the company was acquired,” said Acting U.S. Attorney Williams. “Instead of doing the right thing and performing her job honestly as the company’s controller, she chose the greedy path. Our Office will continue to work with our law enforcement partners to protect innocent individuals and businesses from being victimized by financial fraud.”
“When you dip into funds entrusted to you, that don’t belong to you, and spend those monies without authorization, it’s called theft,” said Special Agent in Charge Jacqueline Maguire. “And it doesn’t matter if you are a store clerk, a CPA, or a bank robber, thievery is illegal at every level. In this case, the defendant allegedly stole nearly two million dollars to fund a lifestyle to which she was not entitled. And what she has earned are felony charges that will influence her life for years to come.”
If convicted, the defendant faces a maximum possible sentence of 25 years in prison, a $500,000 fine, three years of supervised release, a special assessment and an order of restitution.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigations, and is being prosecuted by Assistant United States Attorney J. Jeanette Kang.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Federal Officer Sentenced for Stealing Social Security BenefitsRead the Press Release
Miami, Florida – On January 31, 2022, a former federal law enforcement officer was sentenced for stealing over $75,000 in social security benefits paid to his deceased father while serving as a U.S. Customs and Border Patrol Officer in Miami.
According to court documents and statements made in court, Carlos Avila, 54, of Pembroke Pines, was collecting and receiving Social Security Retirement Insurance Benefits for his father, who died in Ecuador in 2010. Because the Social Security Administration was unaware that Avila’s father died, the benefit payments did not stop. Over the course of the next nine years, Avila controlled his deceased father’s bank account so that Avila could continue to withdraw the monthly overpayment of benefits that the SSA intended for his father while he was alive. Even after a temporary payment freeze due to internal checks that indicated Avila’s father was no longer alive, Avila again updated his father’s bank account address seven years after his death and caused the SSA to release a back payment of $22,074, which Avila quickly spent. Avila was sentenced to six months’ imprisonment (home confinement), one year of probation, and mandatory restitution.
U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida and Special Agent in Charge Rodregas W. Owens of the Social Security Administration Office of the Inspector General (SSA-OIG), Atlanta Field Division made the announcement.
U.S. Attorney Gonzalez commended the work of the SSA-OIG. The case was prosecuted by Assistant U.S. Attorney Trevor Jones. Assistant U.S. Attorney Richard Brown is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case no. 21-cr-60109.
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Former Director of Accounting and Human Resources Charged in White Plains Federal Court with Embezzlement from Employer and Aggravated Identity TheftRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment in White Plains federal court charging SUSANA RIVERA, the former Director of Accounting and Human Resources for a kitchen remodeling firm located in Westchester County and Greenwich, Connecticut, with wire fraud and aggravated identity theft in connection with her embezzlement of more than $550,000 from her employer. RIVERA was arrested this morning and will be presented in White Plains federal court later today.
U.S. Attorney Damian Williams said: “Susana Rivera abused the trust her employer placed in her by stealing more than $500,000 in hundreds of individual thefts over 22 months. She stole and used her employer’s identity to further her scheme. She will now be held accountable for her thefts.”
FBI Assistant Director Michael J. Driscoll said: “No more than one month after joining the company she allegedly defrauded, Susana Rivera started down a path of embezzlement that would eventually result in more than half a million dollars in losses to her victim. Spending this money on a variety of luxury and personal items, she jumped headfirst into this scheme with seemingly no signs of slowing down—until we showed up to levy the charge. Financial fraud schemes wreak havoc on private businesses and the economy alike. Any attempt to defraud a victim in this way will most certainly be met with consequences in our justice system.”
According to the Indictment unsealed today in White Plains federal court:[1]
In October 2019, RIVERA was hired as the Director of Accounting and Human Resources at the victim company, a family owned kitchen design and remodeling business in Mamaroneck, Bedford and Greenwich, Connecticut. Starting in November 2019, RIVERA made hundreds of unauthorized charges in a total amount exceeding $175,000 to the victim company’s credit cards for personal expenses, including jewelry, beauty treatments, laser treatments, travel, pets, cosmetic surgery, clothing and cars, including a partial payment on a $100,000 Corvette. RIVERA also caused the victim company’s payroll company to make unauthorized payments in a net amount of more than $370,000 to a fake vendor that RIVERA created to receive the money. RIVERA also caused unauthorized transfers from the victim company’s bank account in an amount exceeding $2,900 to pay her personal utility bills. To get restrictions on the use of the victim company’s credit cards removed, RIVERA posed as an owner of the victim company in telephone calls with the company’s credit card company. RIVERA also sent the credit card company photographs of the owner’s driver’s license to cause credit card company personnel to believe she was the owner.
RIVERA, 40, of the Bronx, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison. The maximum potential sentences in this case are prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
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Mr. Williams praised the investigative work of the FBI.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney James McMahon is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former Delaware Man Who Mailed Death Threats Sentenced to 12 Months in Federal PrisonRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Michael Protack, 64, was sentenced yesterday to 12 months in prison by U.S. District Judge Richard G. Andrews on the charge of mailing threatening communications.
According to court documents, Mr. Protack used the U.S. mail to send a series of threatening communication to his ex-wife’s attorney. One threat, received on January 7, 2021, stated, in part, that the victim should “count on being dead by June 2021. You won’t know when, where or how but your end has been written. Take the time and put your affairs in order because they will not find your body for weeks.” Another threat, received a couple months later, contained nothing more than a graphic image of a dead, mutilated body. One of the last threats received by the victim stated, “I drive past your office every day.” Mr. Protack was arrested on June 11, 2021.
In handing down his sentence, Judge Andrews described Mr. Protack’s conduct as a “campaign of terror” and noted the lengths to which Mr. Protack went to conceal his identity as the perpetrator. Judge Andrews further noted that this was a “very serious offense” and there was a need for just punishment that would promote respect for the law.
U.S. Attorney Weiss stated, “Mr. Protack’s repeated threats to murder another human being is, indeed, a very serious offense, and the court’s sentence reflects that fact. My office is dedicated to obtaining justice for victims of violent crime and holding the perpetrators of these crimes accountable. I want to thank the U.S. Postal Inspection Service and the FBI for their diligence in investigating this case and helping bring Mr. Protack to justice.”
“People using of the mail to terrorize others is fortunately not that common,” said Damon Wood, the Inspector in Charge of the Philadelphia Division. “The Postal Inspection Service, however, takes such threats seriously and will aggressively investigate anyone who uses the mail to terrorize or threaten another person. Michael Protack thought that by using the mail, he would never be identified. Thanks to the work of local Postal Inspectors and agents of the FBI, he was identified and now has a year in prison to think about his crime. If there are people being threatened through the mail, they should not hesitate to file a complaint with the Postal Inspection Service. We have over two hundred years of experience investigating and identifying criminals who use the mail to commit or facilitate crimes.”
“The FBI is committed to working with our local, state and federal partners to reduce violence in the community and keep the citizens of Delaware safe,” said Thomas J. Sobocinski, Special Agent in Charge of the FBI Baltimore Field Office. “We want the public to know the FBI does not tolerate any threat to life and will continue to hold those like Mr. Protack who violate federal law accountable.”
The case was investigated by the U.S. Postal Inspection Service and the FBI's Delaware Violent Crime and Safe Streets Taskforce in the Wilmington Resident Agency. Assistant U.S. Attorney Briana Knox prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER.
The Domestic Violence Hotline is an important resource for victims of domestic abuse. All hotline numbers are confidential, available 24/7, and staffed by trained professionals who assist with safety planning and resource referrals. Services are available to victims who do not speak English or who are hearing impaired (for Delaware Relay Services, dial 711). New Castle County 302-762-6110 (English and bilingual); Kent and Sussex Counties 302-422-8058; 302-745-9874 (bilingual). TTY 1-800-232-5460.
Former Cobb County sheriff’s deputy indicted for distributing child pornographyRead the Press Release
ATLANTA - Peter Bilardello has been arraigned on federal charges of distribution and possession of child pornography. Bilardello was indicted by a federal grand jury on January 25, 2022.
“Bilardello allegedly shared child pornography through social media while he was employed as a law enforcement officer,” said U.S. Attorney Kurt R. Erskine. “The victimization of children is one of the most heinous crimes imaginable, and distributing images of child sexual abuse compounds the harm. It is especially troubling that these crimes were allegedly committed by someone in a position of public trust.”
“Every time pornographic images are distributed online, that child is continuously re-victimized”, said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “The FBI will not tolerate predators who prey on our children, especially ones like Bilardello, who are sworn law enforcement officers that took an oath to protect the citizens of our community.”
“The Cobb County Police Department is committed to investigating all crimes committed against the members of our various communities. But when it comes to crimes perpetrated against children, the men and women of our Special Victims Unit are the most dedicated and diligent in law enforcement. Our SVU investigators are committed to being the voices for the voiceless and fully investigating the most heinous acts committed against defenseless children,” said Cobb County Police Department Interim Chief Stuart VanHoozer.
According to U.S. Attorney Erskine, the charges, and other information presented in court: In November 2019, the National Center for Missing and Exploited Children (NCMEC) received a report that a MeWe social media user had allegedly uploaded and shared approximately 12 images depicting children under 12 years old in sexually explicit conduct. NCMEC provided that information to the Georgia Bureau of Investigation (GBI), who determined that the account user was likely located in Marietta, Georgia. The GBI then referred the information to the Cobb County Police Department.
On August 10, 2021, Cobb County Police determined that the MeWe account user was Peter Bilardello, who at the time was a Cobb County Deputy Sheriff. He had been employed by Cobb County for more than 15 years. For part of that time, Bilardello worked in the Sex Offender Unit of the Sheriff’s Office.
Cobb County Police obtained and executed search warrants for the MeWe account, as well as Bilardello’s home and cell phone, and confirmed that Bilardello had uploaded and shared child pornography while chatting with other users. Investigators also recovered more than 100 images and videos depicting young children in sexually explicit conduct. Bilardello was immediately arrested and resigned from the Cobb County Sheriff’s Office.
Peter Bilardello, 51, of Marietta, Georgia, was arraigned before U.S. Magistrate Judge Justin S. Anand. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation and the Cobb County Police Department.
Assistant U.S. Attorney Annalise K. Peters is prosecuting the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Five Defendants Charged in $8.4 Million “Boiler Room” Fraud and Money Laundering SchemeRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, Thomas Fattorusso, Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), and John Condon, Special Agent in Charge of the Tampa Office of Homeland Security Investigations (“HSI”), announced today the unsealing of an Indictment charging ROBERT LENARD BOOTH, a/k/a “Trevor Nicholas,” MICHAEL D’URSO, ALYSSA D’URSO, JAY GARNOCK, and ANTONELLA CHIARAMONTE with conspiracy to commit securities fraud and operate unlicensed money transmitting businesses, conspiracy to commit wire fraud, conspiracy to commit money laundering, and operation of unlicensed money transmitting businesses, in connection with a scheme to defraud victim investors in countries around the world and launder the proceeds of the fraud. The case is assigned to U.S. District Judge Jed S. Rakoff.
BOOTH was arrested in August 2021 at John F. Kennedy International Airport and was previously indicted for his role in the scheme. MICHAEL D’URSO, ALYSSA D’URSO, and CHIARAMONTE were arrested in Glen Cove, New York this morning and will be presented before the Honorable Debra Freeman, United States Magistrate Judge for the Southern District of New York, later today. GARNOCK was arrested in West Palm Beach, Florida this morning and will be presented before the Honorable Bruce E. Reinhart, United States Magistrate Judge for the Southern District of Florida later today.
U.S. Attorney Damian Williams said: “Hiding behind fake investment firms and a network of shell companies, these defendants preyed on victims around the world and cheated them of their hard-earned savings. In selling their victims fake investments in American companies, the defendants abused the confidence and trust that investors worldwide have in American securities and American banks. Thanks to the tireless efforts of our law enforcement partners, these defendants now find themselves in hot water, being held accountable for their crimes.”
HSI Tampa SAC John Condon said: “This case is an example of how HSI is uniquely positioned to disrupt transnational criminal organizations allegedly profiting from cross-border crime. Thanks to the partnership with HSI and IRS-CI, an international criminal conspiracy has been stopped.”
IRS-CI SAC Thomas Fattorusso said: “Criminals have become extremely sophisticated in preying on unsuspecting victims, and this alleged boiler room scheme is no exception. This team of fraudsters allegedly went to great lengths to create fake marketing materials, fake contact information, and fake companies to dupe victim-investors and then laundered the funds for personal gain. This case demonstrates that IRS-CI, and its law enforcement partners like Homeland Security Investigations, will work across the globe to track down perpetrators of financial crimes.”
As alleged in the Indictment unsealed today[1]:
Beginning in at least June 2019 and lasting through August 2021, ROBERT LENARD BOOTH, a/k/a “Trevor Nicholas,” MICHAEL D’URSO, ALYSSA D’URSO, JAY GARNOCK, and ANTONELLA CHIARAMONTE participated in a sophisticated international mass-marketing investment fraud scheme to defraud investors from around the world of millions of dollars, and to launder the fraud proceeds and distribute those proceeds among the conspirators.
BOOTH ran a boiler room operation in Thailand that lied to investors and told them the boiler room was in fact a Manhattan-based investment firm. BOOTH and his co-conspirators propped up their lies with fake identities and false and misleading webpages, email addresses, and phone numbers. While purporting to sell investors from around the world securities in privately held and publicly traded American companies, BOOTH stole more than $1 million from victim-investors, depriving them of their savings.
MICHAEL D’URSO, ALYSSA D’URSO, GARNOCK, and CHIARAMONTE (the “D’URSO Crew”) ran a network of shell companies and associated bank accounts in New York. Using these shell companies, the D’URSO Crew partnered with multiple boiler rooms, including BOOTH’s, to receive the stolen “investment” funds from victims and then launder the money and distribute it to the various conspirators. All told, the D’URSO Crew used its shell companies to receive more than $8.4 million that was stolen from victims of the scheme. They then used their shell companies to launder more than $4.6 million of the stolen money and send it back overseas.
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BOOTH, 68, of Brooklyn, New York, MICHAEL D’URSO, 54, of Glen Cove, New York, ALYSSA D’URSO, 28, of Glen Cove, New York, GARNOCK, 75, of Glen Cove, New York, and CHIARAMONTE, 36, of Glen Cove, New York, are each charged with one count of conspiracy to commit securities fraud and operate unlicensed money transmitting businesses, in violation of 18 U.S.C. § 371, which carries a maximum sentence of 5 years in prison; one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, which carries a maximum sentence of 20 years in prison; and one count of conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956, which carries a maximum sentence of 20 years in prison. MICHAEL D’URSO is further charged with three counts, and ALYSSA D’URSO, GARNOCK, and CHIARAMONTE are further charged with one count each, of operating an unlicensed money transmitting business, in violation of 18 U.S.C. § 1960, which carries a maximum sentence of 5 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of these defendants would be determined by a judge.
Mr. Williams praised the outstanding investigative work of HSI and IRS-CI. Mr. Williams further thanked the U.S. Securities and Exchange Commission, which today filed a parallel civil action, for its assistance and cooperation in this investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Andrew Jones and Jane Y. Chong are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictments and the description of the Indictments set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Final Defendant in a Harford County Drug Conspiracy Sentenced to Six Years in Federal Prison for Conspiracy to Distribute Crack CocaineRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Tremayne Murphy, age 40, of Harford County, Maryland to six years in federal prison, followed by four years of supervised release, for conspiracy to distribute and possess with intent to distribute crack cocaine.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Harford County State’s Attorney Albert J. Peisinger, Jr.; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Chief Melissa R. Hyatt of the Baltimore County Police Department; Sheriff Jeff Gahler of the Harford County Sheriff’s Office; and the Harford County Narcotics Task Force comprised of members of the Harford County Sheriff's Office, Aberdeen Police Department, Bel Air Police Department, and Havre de Grace Police Department.
According to his guilty plea, as a result of the Harford County Narcotics Task Force investigation into a drug trafficking organization (DTO) distributing powder and crack cocaine, Murphy, Reginald Leon Bolden, age 37, of Harford County, Maryland; and Joel Hammond, age 35, of Essex, Maryland were identified as DTO members. During the investigation of this case, law enforcement observed numerous instances of drug-related activities.
For example, on February 24, 2020, investigators surveilled Bolden and Murphy as they traveled to Wilmington, Delaware to meet with a cocaine supplier. After completing a drug transaction for nine ounces of cocaine, Bolden and Murphy returned to Harford County to distribute the cocaine. Two days later, Murphy was seen traveling back to Wilmington, Delaware, to return the cocaine to the original supplier, as customers complained about the quality of the cocaine.
After meeting with the source, detectives followed Murphy back to Harford County where Murphy was observed conducting a hand-to-hand drug transaction.
As stated in his plea agreement, on March 15, 2020, Bolden’s communications regarding the purchase of three ounces of crack cocaine from co-defendant Hammond were intercepted. Bolden had arranged the transaction through a co-conspirator, who transported money to Hammond and received a small backpack from Hammond, which investigators believed contained the cocaine.
A co-conspirator, Murphy, and Bolden then determined when Murphy could retrieve the cocaine. After the conversation, investigators observed the co-conspirator exit his residence with the same small backpack of suspected cocaine and briefly enter a vehicle operated by Murphy. Once the conspirator quickly exited Murphy’s vehicle without the backpack, Murphy subsequently traveled to Bolden’s residence.
After a brief period of time, Bolden was seen exiting Hammond’s residence and proceeded to return to Harford County. As Bolden returned to Harford County, members of the Harford County Narcotics Task Force executed a search warrant on his vehicle where law enforcement seized 16 grams of powder cocaine, 41 grams of crack cocaine, and $660 in cash.
As a member of the DTO, Murphy agreed that it is reasonably foreseeable that the amount of crack cocaine sold was at least 112 grams but less than 196 grams.
Co-defendants Joel Hammond and Reginald Bolden were sentenced to six years and nine years in federal prison for their roles in the conspiracy; respectively.
United States Attorney Erek L. Barron commended the DEA, the Harford County State’s Attorney’s Office, the Harford County Narcotics Task Force, and the Baltimore County Police Department for their work in the investigation. Mr. Barron thanked Special Assistant U.S. Attorney Christopher J. Romano, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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