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9 February 2022
Federal charges filed against St. Louis woman linked to multiple overdose deathsRead the Press Release
ST. LOUIS – On February 8, 2022, federal charges were filed against Chuny Ann Reed, age 46. Reed is accused of distribution of crack cocaine (cocaine base) and fentanyl. These charges were a result of an investigation that began after a series of fatal overdoses that occurred at 4451 Forest Park Avenue, St. Louis, Missouri on February 5, 2022.
According to the charging documents, on February 5, 2022, law enforcement was notified about a series of suspected fentanyl related overdoses that occurred at 4451 Forest Park Avenue, St. Louis, Missouri, located within the Eastern District of Missouri. Drug Enforcement Administration (DEA) investigators responded to assist the SLMPD with the investigation.
It was determined at least nine victims suffered fentanyl overdoses at 4451 Forest Park Avenue on the day in question. Investigators further determined five of the nine victims died as a result. Agents and detectives developed information that Chuny Reed was distributing crack cocaine on February 5, 2022, from her residence located at 4451 Forest Park Avenue.
Investigators learned that video surveillance footage from inside the apartment complex was available via the SLMPD Real Time Crime Center because the apartment complex is affiliated with the St. Louis Housing Authority. While reviewing the previously mentioned surveillance footage, investigators observed a black male arrive at Reed’s apartment on February 5, 2022. The black male entered Reed’s apartment and stayed for several minutes. He then departed and returned directly to his apartment. Later in the day, this individual was discovered dead inside his apartment from an apparent overdose. At the scene of the overdose death, investigators recovered and seized a crack pipe with trace amounts of a suspected controlled substance inside the pipe. This evidence was taken to the SLMPD Crime Laboratory for analysis on February 6, 2022. Investigators received an analysis report that confirmed the trace substance found on the pipe was in fact a mixture of fentanyl and cocaine base, both Schedule II controlled substances.
On February 7, 2022, a federal search warrant was executed at the residence of Reed, where she was located and subsequently arrested.
Additional federal charges will be considered upon the completion of the current investigation as well as the investigative and toxicology reports forthcoming from the Medical Examiner’s Office.
Charges set forth are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the St. Louis Metropolitan Police Department and the Drug Enforcement Administration.
Federal Grand Jury Indicts Savoy Man on Sexual Exploitation ChargesRead the Press Release
URBANA, Ill. – A federal grand jury has indicted a Savoy, Illinois, man, David I. Berry, 21, of the 800 block of Hartwell, for alleged sexual exploitation of a minor on October 4 and 5, 2021. Berry appeared in federal court in Urbana today in front of Magistrate Judge Eric I. Long for an initial appearance and arraignment, at which the indictment against him was unsealed.
Magistrate Judge Eric I. Long ordered that Berry remain in the custody of the U.S. Marshals Service pending a detention hearing on February 15, 2022.
If convicted, the maximum statutory penalties for the alleged crimes charged are no less than 15 years up to 30 years in prison.
Berry was previously arrested and charged by the Champaign County State’s Attorney in October 2021. The case was brought as part of an ongoing, collaborative effort between federal and local law enforcement to address the rise in child exploitation since March 2020.
Agencies participating in the investigation include U.S Immigration and Customs Enforcement Homeland Security Investigations, the Champaign County Sherriff’s Office, the Urbana Police Department, and the Champaign County State’s Attorney’s Office. Assistant U.S. Attorney Elly Peirson is representing the government in the prosecution.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a Department of Justice initiative led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), to marshal federal, state, and local resources to 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.
Fargo, ND, Man Sentenced to Federal Prison for His Involvement in a String of Violent RobberiesRead the Press Release
FARGO - United States Attorney Nicholas W. Chase announced that U.S. District Court Chief Judge Peter D. Welte sentenced Jordan Daniel Kraft, age 22, Fargo, ND, to 134 months in federal prison for Conspiracy to Commit Robbery and Robbery. Chief Judge Welte also sentenced Kraft to 3 years supervised release and a $100.00 Special Assessment.
Investigation revealed that from May and continuing through June 2019, Kraft and Harleigh Haugen, age 21, Fargo, ND, conspired with a group of young males and females to rob customers of commercial sex. Kraft, Haugen and others posted advertisements on "Skip the Games" promoting prostitution with adult women. The defendants sought to take advantage of a group of commercial sex customers whom they believed would be unwilling to go to law enforcement if they were robbed. The defendants arranged to meet the victims in their private residences and in local apartments controlled by the defendants. Using dangerous weapons, the defendants robbed the commercial sex customers by threats of force and violence, and in some instances the victims were physically assaulted by the defendants before they were robbed.
Several of Kraft’s co-defendants were indicted in North Dakota and pleaded guilty:
• ZACHARY RONZELL MITCHELL, age 30, Fargo, ND: Pleaded guilty to One Count of Interfere with Commerce by Threats and Violence – Hobbs Act Robbery, sentenced to 72 months in federal prison, followed by 3 years supervised release.
• SHELTON LEE MOSEBY, IV, age 21, Fargo, ND: Pleaded guilty to One Count of Interfere with Commerce by Threats and Violence – Hobbs Act Robbery, sentenced to 51 months in federal prison, followed by 3 years supervised release.
• TEAJAHA SHANETTE LAYSHA GRANGER, age 24, Fargo, ND: Pleaded guilty to One Count of Interfere with Commerce by Threats and Violence – Hobbs Act Robbery, sentenced to 2 years in federal prison, followed by 3 years supervised release.
• TATYANNA DESHUAN GRANGER, age 21, Fargo, ND: Pleaded guilty to One Count of Interfere with Commerce by Threats and Violence – Hobbs Act Robbery, sentenced to 20 months in federal prison, followed by 3 years supervised release.
• TEON TYRIK BERRY, age 19, Fargo, ND: Pleaded guilty to One Count of Interfere with Commerce by Threats and Violence – Hobbs Act Robbery, sentenced to 57 months in federal prison, followed by 3 years supervised release.
• JACOBY RASHAWN LEE, age 30, Fargo, ND: Pleaded guilty to One Count of Interference with Commerce by Threats or Violence—Hobbs Act Robbery, sentenced to 7 years in federal prison, followed by 3 years supervised release.
• HARLEIGH JOSETTE HAUGEN, age 21, Fargo, ND: Pleaded guilty to Conspiracy to Commit Robbery and Robbery, sentenced to 45 months in federal prison, followed by 3 years supervised release.
"Kraft and his associates were motivated by greed and showed a willingness to harm others for profit," said acting Special Agent in Charge Jamie Holt of HSI St. Paul. "This case represents another successful collaborative effort by law enforcement to help victims and lock up violent criminals."
This case was investigated by the Fargo Police Department and the Homeland Security Investigations and the case was prosecuted by the United States Attorney’s Office, with Assistant United States Attorney Jennifer Puhl assigned to the case.
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Dillsburg Company Pleads Guilty to Clean Air Act ViolationRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Lobar, Inc., of Dillsburg, Pennsylvania entered a plea of guilty to beginning a demolition project of a former weaving mill prior to removing regulated asbestos containing material as required in 40 C.F.R. § 61.145(c)(1) and 42 U.S.C. § 7413(c)(1).
Asbestos was designated a hazardous air pollutant in 1971 which can become airborne and can be inhaled into the lungs. There is no known safe amount of exposure.
According to United States Attorney John C. Gurganus, the criminal charge is the result of Lobar’s activity, as the general contractor, on the Berwick Area School District project, to demolish the former weaving mill in Berwick Pennsylvania and construct a new elementary school.
Prior to purchasing the mill in January 2014, the Berwick Area School District obtained an environmental assessment report that identified hazardous substances, including asbestos, located in the old facility. The existence of asbestos was confirmed by an environmental consultant. The findings of both assessments were shared with Lobar, and its subcontractors responsible for asbestos removal and demolition. Despite this, the demolition went forward before the asbestos was properly removed until stopped by the United States Environmental Protection Agency.
“The defendant was responsible for the integrity of the work site and failed to ensure safe and legal removal of asbestos,” said Special Agent in Charge Jennifer Lynn of EPA’s criminal enforcement program in Pennsylvania. “The defendant placed public health at risk and is being held accountable.”
A ten-count indictment filed in January 2020, charged Lobar Inc., First Capital Insulation, Inc., Francis Richard Yingling, Jr., Dennis Lee Charles, Jr., M&J Excavation, Inc., John August Sidari, Jr., and Ty Allen Barnett, with various violations of the federal Clean Air Act arising from disturbing and removing asbestos in violation of the National Emission Standards for Hazardous Air Pollutants regulations. The remaining defendants have pleaded not guilty and are currently scheduled for trial in June 2022 before U.S. District Court Judge Jennifer P. Wilson.
Howard P. Stewart, Senior Litigation Counsel from the Environmental Crimes Section of the Environment and Natural Resources Division of the Department of Justice, Assistant United States Paul Miovas and Special Assistant United States Patricia Miller of the Middle District of Pennsylvania are prosecuting the case. The case was investigated by the Criminal Investigation Division of the United States Environmental Protection Agency.
A defendant is presumed innocent unless and until proven guilty.
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Delaware man sentenced for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Durrion Joshua Morrison, of Wilmington, Delaware, was sentenced today to time served for a cocaine charge, United States Attorney William Ihlenfeld announced.
Johnson, also known as “Nephew,” age 33, pleaded guilty in August 2021 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine Base.” Johnson admitted to distributing and possessing more than 12 grams of cocaine base, also known as “crack,” in July 2016 in Berkeley County.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Cocaine Trafficker Sentenced to More than Ten Years in PrisonRead the Press Release
MOBILE, AL – A Mexican national was sentenced today to 121 months in federal prison after a federal jury convicted him in October 2021 for possessing with intent to distribute 16 kilograms of cocaine.
According to court documents and evidence presented at trial, Gilberto Gonzalez-Gonzalez, 44, of Houston, Texas, was driving a flatbed truck from Houston to Atlanta, Georgia when he was stopped by a Baldwin County sheriff’s deputy for a traffic violation on Interstate 65. The jury heard evidence that on January 25, 2021, Gonzalez had driven the truck from Texas to Alabama while his passenger and codefendant, Daniel Eric Corona, slept. Gonzalez and Corona lacked proper paperwork for the load that they were purporting to haul and had no valid proof of insurance.
During a consent search of the truck, deputies pried open a locked compartment and found a duffel bag containing 16 individually wrapped bundles of cocaine weighing more than 35 pounds in total. According to expert testimony presented at trial, the cocaine had a wholesale value of more than $500,000 and a street value of more than $6 million. The jury also reviewed evidence from Gonzalez’s cell phone containing images of cocaine and WhatsApp messages discussing “kilos” and prices of cocaine.
United States District Court Judge Terry F. Moorer ordered Gonzalez to serve a five-year term of supervised release upon his release from prison, during which time he will undergo testing for substance abuse. The court did not impose a fine, but Judge Moorer ordered Gonzalez to pay $100 in special assessments.
Corona pleaded guilty to conspiracy to possess with intent to distribute cocaine in September 2021. Judge Moorer sentenced him to serve a 70-month prison sentence in December 2021.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The Drug Enforcement Administration, Homeland Security Investigations, and the Baldwin County Sheriff’s Office Drug Task Force investigated the case.
Assistant U.S. Attorneys Justin Roller and Deborah Griffin prosecuted the case on behalf of the United States.
Clinton Meth Dealer in Possession of Firearms Sentenced to 106 Months in PrisonRead the Press Release
WILMINGTON, N.C. – A Clinton man was sentenced today to 106 months in prison for possession of methamphetamine with intent to distribute, and for possessing a firearm in furtherance of a drug trafficking crime. On October 19, 2021, Javaun Delano Jaleel Johnson pled guilty to the charges.
According to court documents and other information presented in court, Johnson, 30, was stopped on September 2, 2020 at a checkpoint in Clinton. Johnson did not possess a valid driver’s license. Upon searching Johnson’s car, officers recovered marijuana, methamphetamine, $5,000 in cash, a scale, and a .45 caliber handgun. A few months later, in January of 2021, after another automobile stop, Johnson was found in possession of more methamphetamine, and a loaded .380. caliber firearm.
At sentencing the court denied the defendant’s request for a departure from the sentencing guidelines, citing the defendant’s multiple firearm possession events. At the time of the offense, the defendant had previously been convicted on a state charge for being a felon in possession of a different firearm than those involved in the federal case.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Clinton Police Department investigated the case and Assistant U.S. Attorneys William M. Gilmore and Evan Rikhye prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:21-CR-25-M.
Catholic Medical Center Agrees to Pay $3.8 Million to Resolve Kickback-Related False Claims Act AllegationsRead the Press Release
CONCORD – United States Attorney John J. Farley announced today that Catholic Medical Center (CMC) has agreed to pay $3.8 million to resolve allegations that it violated the civil False Claims Act by providing free call coverage services to a cardiologist to induce patient referrals, in violation of the Anti-Kickback Statute.
According to the settlement agreement, the United States asserted that CMC, a hospital in Manchester, paid its own cardiologists to cover for, and to be available to provide medical services for, another cardiologist’s patients when she was on vacation or otherwise unavailable. The United States further alleged that CMC provided these call coverage services at no charge. The cardiologist who received the free call coverage referred millions of dollars in medical procedures and services to CMC over the decade in which the free services were provided. Because CMC submitted claims for payment to Medicare, Medicaid, and other federal health care programs for the services referred by the cardiologist, the United States alleged that these claims were the result of unlawful kickbacks.
“The False Claims Act and the Anti-Kickback Statute protect patients and federal health care programs from fraud and abuse by removing the corrupting influence of money,” said U.S. Attorney Farley. “When patients are referred for medical services, those referrals should be based solely on medical need and not affected by financial considerations. We work closely with our law enforcement partners to protect the integrity of federal health care programs and we will use all appropriate enforcement tools to combat health care fraud in New Hampshire.”
“Kickback schemes can undermine our healthcare system, compromise medical decisions, and waste taxpayer dollars. As today’s settlement makes clear, the FBI will aggressively investigate those who seek to bolster their bottom line by paying illegal kickbacks—whether directly or indirectly—to circumvent safeguards designed to protect the integrity of federal health care programs,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
“Today’s settlement sends a clear message that these types of financial arrangements will not be tolerated. We will continue to work with our law enforcement partners to ensure that all medical providers properly follow health care rules and regulations,” said Phillip M. Coyne, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General. “I appreciate the partnership with the New Hampshire U.S. Attorney's Office in identifying and prosecuting this type of fraud.”
"Protecting TRICARE, the health care program for active-duty military personnel, retirees, and dependents, is a top priority for the Department of Defense Office of Inspector General's Defense Criminal Investigative Service (DCIS)," said Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. "When health care facilities submit claims to TRICARE for services that are driven by financial reasons and not strictly medical ones, it undermines the integrity of the TRICARE program. Today's settlement agreement demonstrates the DCIS' ongoing commitment to work with the U.S. Attorney's Office, District of New Hampshire, to investigate health care fraud."
The Anti-Kickback Statute makes it illegal for a hospital to pay physicians in exchange for referrals of government insured health care programs, such as Medicare, Medicaid, or Tricare. It arose out of congressional concern that remuneration given to those who can influence health care decisions would result in the provision of medically unnecessary services, or services of poor quality or otherwise harmful to patients.
The False Claims Act permits whistleblowers to file civil lawsuits alleging that false claims have been submitted to the United States. This False Claims Act settlement resolves allegations originally brought in a lawsuit filed by a whistleblower, David Goldberg, M.D., a former CMC employee, who is represented by Douglas, Leonard & Garvey, P.C. As part of the settlement the whistleblower will receive a portion of the settlement amount.
CMC did not admit liability as part of this settlement agreement.
This case was investigated by the Office of Inspector General of the U.S. Department of Health and Human Services, the Office of Inspector General of the Department of Defense, and the Federal Bureau of Investigation. The case was handled by Assistant U.S. Attorney Raphael Katz.
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Career Offender Sentenced to More Than Eight Years for Selling Fentanyl-Laced HeroinRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron today sentenced Jesus Manuel Rodriguez-Castillo (39, Kissimmee) to eight years and four months in federal prison for distributing fentanyl-laced heroin. Rodriguez-Castillo had pleaded guilty on October 5, 2021.
According to court documents, Rodriguez-Castillo sold approximately 290 grams of fentanyl-laced heroin to a cooperating source and an undercover DEA agent on four separate occasions, from December 2018 through August 2019, for a total of $16,790. Rodriguez-Castillo was previously convicted for robbery in 2010 and aggravated assault with a firearm in 2015, and therefore, determined to be a career offender under federal sentencing rules.
This case was investigated by the Drug Enforcement Administration, with assistance from the Polk County Sheriff’s Office and the Winter Park Police Department. It was prosecuted by Assistant United States Attorney Dana E. Hill.
California Man Arrested for Cyberstalking Young Women in Sextortion CampaignRead the Press Release
A California man was arrested yesterday and will make his initial appearance in federal court today to face charges that he cyberstalked multiple young women in California in a “sextortion” campaign.
Johao Miguel Chavarri, 25, aka Michael Frito, of Oceanside and Torrance, was arrested yesterday in Oceanside, where he is stationed as an active-duty member of the U.S. Marine Corps. According to the criminal complaint, from 2019 through 2021, Chavarri, using the online persona “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.
As alleged, Chavarri’s harassing and extortionate threats and demands of the victims generally followed a pattern. 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, he threatened that, if his victims refused to comply with his demands, he would publish sexual photos and videos of the victims online or on well-known pornography websites and/or distribute the sexual photos or videos to the victims’ boyfriends, friends, families or employers, whom he would often identify by name. As alleged, Chavarri 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. One message sent by Chavarri to multiple victims via Instagram stated that he would spend his “whole life ruining” their lives.
Chavarri is charged with cyberstalking. If convicted, he faces up to five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s Los Angeles Field Office 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 for the Central District of California and Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.
A criminal complaint is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Bozeman meth trafficker sentenced to eight years in prisonRead the Press Release
MISSOULA — A Bozeman man who admitted to trafficking methamphetamine was sentenced today to eight years in prison to be followed by five years of supervised release and was ordered to forfeit $17,644, U.S. Attorney Leif M. Johnson said.
Jared Robert Williams, 42, pleaded guilty in September 2021 to possession with intent to distribute meth.
U.S. District Judge Dana L. Christensen presided.
In court documents filed by the government, the Missouri River Drug Task Force began investigating Williams and others for suspected distribution of large quantities of meth. On Nov. 6, 2020, a Montana Highway Patrol trooper stopped Williams, searched his vehicle and found meth, drug paraphernalia, $17,644 in U.S. currency and two cellular phones. About $10,000 of the cash was stacked in a brick fashion and tightly wrapped in plastic wrap. In a search of the cell phones, investigators found photographs and messages consistent with drug trafficking. One witness told investigators that in a two-month period, he received about 3.75 pounds, which is approximately 13,600 doses, of meth from Williams for resale. In an interview of Williams, he admitted he sold meth. He denied the money he possessed was from drug dealing and told detectives he didn’t believe in banks. However, after Williams was booked into jail, he called his girlfriend and told her how much money was in the bank account.
Assistant U.S. Attorney Jennifer S. Clark prosecuted the case, which was investigated by the Missouri River Drug Task Force and the Montana Highway Patrol.
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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Berkeley County man sentenced to nearly 20 years for drug conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Orville Darby, of Martinsburg, West Virginia, was sentenced today to 235 months of incarceration for drug distribution, United States Attorney William Ihlenfeld announced.
Darby, age 36, pled guilty in April 2021 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin, Cocaine Hydrochloride and Cocaine Base.” Darby admitted to working with others to distribute heroin, cocaine hydrochloride, and cocaine base from February 2019 to June 2019 in Berkeley County and elsewhere.
Assistant U.S. Attorney Timothy D. Helman prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration investigated.
Chief U.S. District Judge Gina M. Groh presided.
Barbour County woman admits to drug and firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Kayla Lynn Jenkins, of Philippi, West Virginia, has admitted to drug and firearms charges, United States Attorney William Ihlenfeld announced.
Jenkins, 27, pleaded guilty today to one count of “Distribution of Methamphetamine” and one count of “False Statement in Connection with the Acquisition of a Firearm.” Jenkins admitted to selling methamphetamine, also known as “crystal meth” and “ice,” in August 2020 in Barbour County. Jenkins also admitted to a form to purchase a 9mm pistol from a dealer in September 2020 in Barbour County.
Jenkins faces up to 20 years of incarceration and a fine of up to $1 million for the drug charge and faces up to 10 years of incarceration and a fine of up to $250,000 for the firearms charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Mountain Region Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Attorney General Merrick B. Garland Announces Justice Department Strategy to Combat Human TraffickingRead the Press Release
PITTSBURGH - U.S. Attorney General Merrick B. Garland on January 21, 2022, released the Justice Department’s new National Strategy to Combat Human Trafficking pursuant to the Justice for Victims of Trafficking Act.
Rooted in the foundational pillars and priorities of the interagency National Action Plan to Combat Human Trafficking, which President Biden released on Dec. 3, 2021, the Justice Department's National Strategy is expansive in scope. It aims to enhance the department's capacity to prevent human trafficking; to prosecute human trafficking cases; and to support and protect human trafficking victims and survivors.
“Human trafficking is an insidious crime,” said Attorney General Garland. “Traffickers exploit and endanger some of the most vulnerable members of our society and cause their victims unimaginable harm. The Justice Department’s new National Strategy to Combat Human Trafficking will bring the full force of the Department to this fight.”
“Through our Operation T.E.N. (Trafficking Ends Now) initiative, led by our Human Trafficking Prosecutions Coordinator, we are proactively working with local, state and federal law enforcement, including the Federal Bureau of Investigation and Homeland Security Investigations, to identify and prosecute human traffickers and to empower victims to become thriving survivors,” said U.S Attorney Cindy Chung. “Our outreach efforts include providing the public with education and training on, among other things, defining human trafficking, identifying the “red flags” or indicators, as well as the myths about human trafficking. Interested community groups can reach us at 412-644-3500 to request a presentation.”
U.S. Attorney Chung further said, “Importantly, the Operation T.E.N. team includes victim specialists, at the FBI, HSI and our office, who assist victims through the criminal justice process, and provide emotional support, in conjunction with local organizations who offer victims of, not only human trafficking, but all forms of sexual abuse, with much-needed housing, programming, and an opportunity to reclaim their lives.”
Among other things, the Justice Department’s multi-year strategy to combat all forms of human trafficking will:
• Strengthen engagement, coordination and joint efforts to combat human trafficking by prosecutors in all 94 U.S. Attorneys’ Offices and by federal law enforcement agents nationwide.
• Establish federally-funded, locally-led anti-human trafficking task forces that support sustained state law enforcement leadership and comprehensive victim assistance.
• Step up departmental efforts to end forced labor by increasing attention, resources and coordination in labor trafficking investigations and prosecutions.
• Enhance initiatives to reduce vulnerability of American Indians and Alaska Natives to violent crime, including human trafficking, and to locate missing children.
• Develop and implement new victim screening protocols to identify potential human trafficking victims during law enforcement operations and encourage victims to share important information.
• Increase capacity to provide victim-centered assistance to trafficking survivors, including by supporting efforts to deliver financial restoration to victims.
• Expand dissemination of federal human trafficking training, guidance and expertise.
• Advance innovative demand-reduction strategies.The department’s strategy will be implemented under the direction of the National Human Trafficking Coordinator designated by the Attorney General in accordance with the Abolish Human Trafficking Act of 2017.
If you believe that you or someone you know may be a victim of human trafficking, please contact the National Human Trafficking Resource Center Hotline at 1-888-373-7888, or Text 233733.
To read the National Strategy to Combat Human Trafficking click here.
Atmore Man Sentenced to Five Years for Illegally Possessing a Sawed-Off RifleRead the Press Release
MOBILE, AL – An Atmore man was sentenced to five years in prison for being a felon in possession of a sawed-off rifle.
According to court documents, Cedric Jarrell Pierce, 28, was arrested on November 24, 2020 after he refused to stop for a speeding violation and led sheriff’s deputies on a 13-mile high-speed chase that began in Robertsdale, Alabama. The chase ended in Bay Minette, Alabama after deputies used a spike strip to disable Pierce’s car. Deputies arrested Pierce and searched the car. Underneath the passenger seat, deputies found a Remington .22-caliber rifle with a 14-inch barrel, which is less than the barrel length of 16 inches required by federal law. After recovering the rifle, deputies spoke with Pierce, who admitted that he ran from law enforcement because he knew he had the rifle and was not allowed to possess it as a convicted felon.
Chief United States District Judge Jeffrey U. Beaverstock ordered Pierce to serve a three-year term of supervised release upon his release from prison, during which time he will undergo drug testing and treatment. The court did not impose a fine, but Judge Beaverstock ordered Pierce to pay $100 in special assessments.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Baldwin County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.
Atlanta Man Pleads Guilty to CyberstalkingRead the Press Release
CHATTANOOGA, Tenn. – On February 9, 2022, Zachary Hood, 36, of Atlanta, Georgia, pleaded guilty to one count of cyberstalking. Sentencing has been set for June 16, 2022, before United States District Judge Charles E. Atchley, Jr.
A federal cyberstalking charge carries a maximum of five years in prison; $250,000 in fines; and supervised release for three years.
As part of a plea agreement filed with the court on December 27, 2021, Hood waived indictment by a Federal Grand Jury and agreed to plead guilty to the aforementioned charge. Hood created a fake Facebook account and assumed the identity of a female victim whose name is being withheld for privacy reasons. Hood admitted that, using the Facebook account, he sent intimate photographs of the victim to the victim’s friends and associates. For example, while claiming to be the victim, Hood sent photos featuring the victim’s breasts and buttocks to a friend of the victim’s husband, asking if the friend liked those photos. Hood also contacted the victim’s husband directly, sending the husband nude photographs of the victim and making lewd and sexually suggestive comments about the victim’s appearance. Hood also contacted eight other women, sending each woman intimate photographs of herself, sometimes accompanied by his own commentary.
This prosecution is the result of a joint effort between the United States Attorney’s Office and Federal Bureau of Investigation offices in the Southern District of New York and the Eastern District of Tennessee.
Assistant United States Attorney Kyle J. Wilson, the District’s Computer Hacking and Intellectual Property Crimes Coordinator, represented the United States in court.
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Armed drug dealer who sold drugs with child in house pleads guiltyRead the Press Release
CORPUS CHRISTI, Texas – A 30-year-old Corpus Christi man has pleaded guilty to conspiring to possess with intent to distribute meth and carrying a firearm in relation to a drug trafficking crime, announced U.S. Attorney Jennifer B. Lowery.
Authorities executed a search warrant at a residence in Corpus Christi in August 2021. At that time, they arrested Alec Michael Garcia and his co-conspirators. During the search, they found over 50 grams of meth; nearly two kilograms of pills containing fentanyl, alprazolam and meth; LSD; approximately two kilograms of marijuana as well as numerous THC products, 9 firearms, hundreds of rounds of ammunition, body armor, and U.S. currency.
At the time of search, authorities observed an 8-year-old boy at the residence.
Garcia faces a minimum of 10 years in federal prison up to a maximum of life as well as a $10 million fine. For the firearms conviction, he will receive an additional five years that must be served consecutively to any other prison term imposed.
Garcia has been and will remain in custody pending that hearing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration conducted the investigation with the assistance of the Corpus Christi Police Department’s Gang Unit. Assistant U.S. Attorney Barbara J. De Peña prosecuted the case.
Armed Career Criminal Sentenced to 30 Years in Prison for Firearm PossessionRead the Press Release
GAINESVILLE, FLORIDA – Kenneth Michael Burton, 48, of Alachua, Florida, was sentenced to 30 years in federal prison after pleading guilty on August 17, 2021, to possessing a firearm as a convicted felon. Jason R. Coody, United States Attorney, for the Northern District of Florida announced the sentence.
“The collaborative efforts of our partners in the Gainesville Gun Violence Initiative continue to produce impactful results, and we will continue working tirelessly to make North Florida safer,” said U.S. Attorney Coody. “This sentence ensures that our community will be safer and sends a message that there are real and severe consequences for federal firearm offenses.”
On the night of July 10, 2020, Burton confronted his ex-girlfriend in the parking lot of Bahama Breeze in Gainesville, Florida in violation of a permanent domestic violence injunction. After Burton initiated a verbal confrontation with the ex-girlfriend and her male friend, Burton struck the male in his face, leaving a deep laceration to his chin. Burton then unlawfully entered the ex-girlfriend’s vehicle and retrieved a pistol she had purchased to protect herself from Burton. Once the ex-girlfriend saw that Burton had armed himself with her firearm, she quickly jumped into her vehicle and fled the area. As she was driving away, she observed Burton chasing after her vehicle with the gun still in his possession, she then heard a gunshot go off. As she was fleeing the area, she and other witnesses called 911 to report the incident. Gainesville Police Department (GPD) officers responded and quickly began tracking a blood trail from the Bahama Breeze parking lot towards a retention pond nearby. Ultimately, a GPD officer located the stolen firearm in the rocks along the edge of the retention pond. GPD officers were eventually able to speak with Burton on the phone and convince him to surrender. When officers made contact with Burton, they observed that he had suffered a gunshot wound to his leg. While receiving treatment at the hospital, Burton admitted to a detective that he retrieved the firearm from his ex-girlfriend’s car and claimed that he accidentally shot himself in the leg as he was running away from the scene. Burton was arrested on numerous state charges stemming from this incident.
“The Gainesville Police Department is extremely satisfied with the outcome of this case as it demonstrates a commitment to both our victims of domestic violence as well as our firm conviction to combating armed suspect violence in every available venue. This incident could have very easily escalated into a domestic-related homicide investigation had it not been for the quick retreat of the intended victims. The cooperation of all the agencies involved in the Gun Violence Initiative has once again culminated in a violent felon being delivered an impressive sentence commensurate with the history and proclivities, he demonstrated that summer day.”
After Burton’s arrest, his case was adopted for federal prosecution by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) as part of the Gainesville Gun Violence Initiative (GVI). The Gainesville GVI was established in April 2019, by the United States Attorney’s Office for the Northern District of Florida in an effort to stem the escalating gun violence in Gainesville and the surrounding area. As GVI partners, the State Attorney’s Office for the Eight Judicial Circuit, the Bureau of Alcohol, Tobacco and Firearms, the Federal Bureau of Investigation, the U.S. Marshals Service, the Florida Department of Law Enforcement, the Gainesville Police Department, the Alachua County Sheriff’s Office, the Alachua Police Department, the University of Florida Police Department, and the Florida Department of Corrections share this commitment to protecting public safety.
“This sentence highlights how strong partnerships with our local law enforcement, help us to pursue, and bring to justice felons in possession of firearms, in our continued efforts to protect the public,” said ATF Special Agent in Charge, Craig W. Saier.
Burton had multiple prior felony convictions, including six-armed robberies, and attempted armed robbery convictions from South Carolina, and Florida convictions for felony battery – repeat offender (x2) and battery on a law enforcement officer. Burton was determined to qualify as an Armed Career Criminal, which provided for an enhanced sentence, including a fifteen year minimum mandatory term of imprisonment.
This sentencing resulted from the collaborative work of the Gainesville Police Department and the Bureau of Alcohol, Tobacco and Firearms. The case was prosecuted by Assistant United States Attorney Chris Elsey.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Arizona Man Sentenced to 32 Months in Federal Prison for Fraudulent Applications for Economic Injury Disaster LoansRead the Press Release
DENVER - The U.S. Attorney’s Office for the District of Colorado announced that Michael Lain, 56, of Queen Creek, Arizona, was sentenced to 32 months in federal prison for his role in a wire fraud scheme that stole pandemic relief money from the Small Business Administration (SBA).
On March 27, 2020, the President of the United States signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which provided emergency assistance, administered by the SBA to small business owners affected by the Coronavirus (COVID-19) pandemic. The two primary sources of funding for small businesses were the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loans (EIDL) program.
From March through June 2020, defendant Michael Lain submitted fraudulent EIDL applications to the SBA on behalf of more than 70 limited liability companies (LLCs) seeking both loans and grants from the program. In these applications, Lain made false statements about the number of employees and the amount of gross revenues and cost of goods sold that the LLCs had in the 12 months prior to January 31, 2020. In the applications, Lain also falsely agreed to use the funds as working capital for the LLCs when, in fact, he intended to use the funds for other purposes, including the purchase of a new home. 70 of those EIDL applications were approved and funded by the SBA out of its Denver Finance Center. As a result, LLCs controlled by Lain received $3,830,400 in EIDL proceeds and $336,000 in Economic Injury Disaster Grant (EIDG) proceeds.
“Stealing this money is stealing from the generosity of American taxpayers,” said U.S. Attorney Cole Finegan. “Because of the pandemic, Americans stepped up to help their neighbors who were in danger of losing their businesses. Together with our law enforcement partners, we are holding criminals accountable for taking this money to line their pockets.”
“Today’s sentencing demonstrates our continued resolve to deter pandemic-related fraud and protect Americans from exploitation,” said U.S. Secret Service Special Agent in Charge Marc DellaSala, Denver Field Office. “I want to thank the U.S. Attorney’s Office and our task force partners for their tireless pursuit of those attempting to compromise our financial infrastructure by defrauding taxpayer-funded relief.”
“OIG stands beside the nation’s small businesses by securing and safeguarding SBA programs that support and uplift them through difficult times,” said SBA OIG’s Special Agent in Charge Weston King. “OIG remains committed to rooting out bad actors and protecting the integrity of SBA programs. I want to thank the U.S. Department of Justice and our law enforcement partners for their dedication and pursuit of justice.”
U.S. District Judge William J. Martinez sentenced Lain on February 9, 2022. In addition to 32 months of incarceration, the sentence also included an order to pay $622,683.40 in restitution, a $20,000 fine, and will be followed by a three-year term of supervised release. Defendant Lain had repaid the majority of his fraudulently obtained loans prior to his sentencing. In addition to repaying his fraudulently obtained EIDL loans and grants, as part of his plea agreement, Lain also agreed to repay $294,900 that he received as a result of fraudulent PPP applications he submitted.
The investigation in this case was conducted by the United States Secret Service and the Small Business Administration-Office of Inspector General in connection with their work on the Colorado-based EIDL Fraud Task Force. The prosecution was handled by Assistant United States Attorneys Pegeen Rhyne and Patricia Davies.
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.
CASE NUMBER: 21-cr-00175-WJM
Albuquerque man will remain detained on bank robbery chargeRead the Press Release
ALBUQUERQUE, N.M. – Jason Scott Deane, 57, of Albuquerque, appeared in federal court on Feb. 4 for a preliminary and detention hearing on a charge of bank robbery. Deane will remain in custody pending trial, which has not been scheduled.
According to a criminal complaint, on Sept. 23, 2021, Deane allegedly entered the Bank of the West on Central Avenue SW in Albuquerque and handed a teller a demand note and a plastic bag. The teller complied with the demand, and Deane allegedly fled the bank on an orange motorcycle. Deane allegedly proceeded to the Sky City Casino in Cibola County, New Mexico, where he told an employee to call the police.
Cibola County Sheriff’s Deputies detained Deane until an FBI Task Force officer arrived. Deane was arrested on a New Mexico state warrant for robbery.
A complaint is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Deane faces up to 20 years in prison.
The FBI Albuquerque Field Office investigated this case. Assistant United States Attorney Timothy Trembley is prosecuting the case.
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17-Count Indictment Unsealed, 22 Defendants in Custody Resulting from Middle GA to Metro Atlanta Meth InvestigationRead the Press Release
MACON, Ga. – Arrest warrants were executed today and 22 individuals are facing federal charges resulting from an ongoing methamphetamine trafficking investigation in Milledgeville, Georgia, with ties to metro Atlanta. An indictment is only an allegation of criminal conduct. All of the defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt.
A federal indictment was unsealed this morning charging the following individuals:
- Jarvis Havior aka J Bo, 30, of Milledgeville, is charged with one count conspiracy to distribute controlled substances, six counts distribution of methamphetamine, two counts possession of methamphetamine with intent to distribute, two counts possession of cocaine or cocaine base with intent to distribute, two counts possession of a firearm in furtherance of a drug trafficking crime and one count maintaining a drug-involved premises;
- Paris Binion, 28, of Milledgeville, is charged with one count conspiracy to distribute controlled substances, two counts possession of cocaine or cocaine base with intent to distribute, one count possession of a firearm in furtherance of a drug trafficking crime, one count possession of a firearm by a convicted felon and one count maintaining a drug-involved premises;
- Maegan Simmons, 24, of Milledgeville, is charged with one count conspiracy to distribute controlled substances, one count possession of methamphetamine with intent to distribute and one count possession of a firearm in furtherance of a drug trafficking crime;
- Dwight Turner aka Wight, 56, of Milledgeville, is charged with one count conspiracy to distribute controlled substances and two counts distribution of methamphetamine;
- Bruce Harrison, 39, of Milledgeville, is charged with one count conspiracy to distribute controlled substances and one count possession of methamphetamine with intent to distribute;
- Ronald Brewer, 58, of Milledgeville, is charged with one count conspiracy to distribute controlled substances and one count possession of methamphetamine with intent to distribute;
- Matthew Cameron, 47, of Milledgeville, is charged with one count conspiracy to distribute controlled substances and one count possession of methamphetamine with intent to distribute;
- Annie Collins, 20, of Milledgeville, is charged with one count conspiracy to distribute controlled substances and one count possession of methamphetamine with intent to distribute;
- Anrico Taylor aka Rico, 33, of Milledgeville, is charged with one count conspiracy to distribute controlled substances and one count possession of methamphetamine with intent to distribute;
- Noe Canela, 32, of Lilburn, Georgia, is charged with one count conspiracy to distribute controlled substances;
- Nicholas Cuevas-Flores, 36, of Lawrenceville, Georgia, is charged with one count conspiracy to distribute controlled substances;
- Tyrone Hitchcock aka T Y, 47, of Milledgeville, is charged with one count conspiracy to distribute controlled substances;
- Macarthur Reeves aka Mac, 66, of Milledgeville, is charged with one count conspiracy to distribute controlled substances;
- Perry Miller, 26, of Milledgeville, is charged with one count conspiracy to distribute controlled substances;
- Arturo Marshall aka Turo, 40, of Milledgeville, is charged with one count conspiracy to distribute controlled substances;
- Paul Bentley aka Old School 56, of Milledgeville, is charged with one count conspiracy to distribute controlled substances;
- Alicia Nugent, 37, of Milledgeville, is charged with one count conspiracy to distribute controlled substances;
- Dawn Carey, 46, of Milledgeville, is charged with one count conspiracy to distribute controlled substances;
- Paul Collins, 59, of Milledgeville, is charged with one count conspiracy to distribute controlled substances;
- Amber Vanclief, 31, of Milledgeville, is charged with one count conspiracy to distribute controlled substances;
- Ryan Rickard, 48, of Milledgeville, is charged with one count conspiracy to distribute controlled substances; and,
- Lamont Jackson, 47, of Milledgeville, is charged with one count conspiracy to distribute controlled substances.
The charge of conspiracy to distribute controlled substances carries a maximum life imprisonment, the charge of distribution of methamphetamine carries a maximum life imprisonment, the charge of possession of methamphetamine with intent to distribute carries a maximum life imprisonment, the charge of possession of a firearm in furtherance of a drug trafficking crime carries a maximum life imprisonment, the charge of possession of cocaine or cocaine base with intent to distribute carries a maximum 20 years in prison, the charge of possession of a firearm by a convicted felon carries a maximum ten years in prison and the charge of maintaining a drug-involved premises carries a maximum ten years in prison.
Initial appearances for the defendants will occur before U.S. Magistrate Judge Charles H. Weigle on Feb. 9 and Feb. 10.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is being investigated by DEA, FBI, GBI, Ocmulgee Drug Task Force, Baldwin County Sherriff’s Office, Laurens County Sheriff’s Office, Washington County Sheriff’s Office, Georgia Department of Corrections, Milledgeville Community Supervision Office, Wilkinson County Sheriff’s Office, Jones County Sheriff’s Office, Atlanta-Carolina’s HIDTA Office and Gwinnett Metro Task Force.
Assistant U.S. Attorney Alex Kalim is prosecuting the case.
- Jarvis Havior aka J Bo, 30, of Milledgeville, is charged with one count conspiracy to distribute controlled substances, six counts distribution of methamphetamine, two counts possession of methamphetamine with intent to distribute, two counts possession of cocaine or cocaine base with intent to distribute, two counts possession of a firearm in furtherance of a drug trafficking crime and one count maintaining a drug-involved premises;
8 February 2022
Wilmington Man Who Illegally Possessed Firearm Sentenced to 46 Months in Federal PrisonRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Victor Adams, 45, was sentenced today to 46 months in prison by Chief U.S. District Judge Colm F. Connolly on the charge of possession of a firearm by a convicted felon.
According to court documents, Mr. Adams was not legally permitted to possess a firearm because of his prior felony convictions. On November 28, 2020, a Wilmington Police Department (“WPD”) officer arrested Mr. Adams on an outstanding warrant charging Mr. Adams with aggravated menacing. While placing Mr. Adams under arrest, the WPD officer discovered a loaded handgun concealed in a shopping bag Mr. Adams was carrying. Mr. Adams admitted to possessing the handgun at various points during the months prior to his arrest, and further admitted to using a firearm in the aggravated menacing incident.
U.S. Attorney Weiss stated, “Our community is fighting the scourge of gun crime, and illegally possessed weapons are a key part of the problem. My Office is committed to working with our law enforcement partners to get guns off our streets and out of the hands of individuals who are not legally permitted to possess them. My thanks to the ATF and WPD for their diligence in investigating this case.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from WPD, and prosecuted by Assistant U.S. Attorney Briana Knox.
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.
Westmoreland County Man Charged with Late December Robbery of Dollar BankRead the Press Release
PITTSBURGH, PA – A resident of Westmoreland County has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on a charge of bank robbery, United States Attorney Cindy K. Chung announced today.
The one-count Indictment named James Smith, age 43, formerly of Herminie, PA 15637, as the sole defendant.
According to the Indictment, on or about December 29, 2021, Smith robbed Dollar Bank in Pleasant Hills of $604.00.
The law provides for a maximum total sentence of 20 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.
Assistant United States Attorney Christopher M. Cook is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pleasant Hills Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Westborough Man Sentenced for Trafficking in Smokeless TobaccoRead the Press Release
BOSTON – A Westborough man was sentenced yesterday in federal court in Worcester for trafficking contraband smokeless tobacco into Massachusetts.
Muhammad Mushtaq Balaparaya, 60, was sentenced by U.S. District Court Judge Timothy S. Hillman to one year and one day in prison and two years of supervised release. In April 2021, Balaparaya pleaded guilty to two counts of trafficking in contraband smokeless tobacco.
Between February 2014 through April 2018, Balaparaya transported more than 500 units of contraband smokeless tobacco in violation of federal law. Balaparaya imported the contraband smokeless tobacco into Massachusetts from Pennsylvania, where he had obtained it. At no time was Balaparaya licensed to sell or distribute tobacco products in Massachusetts, nor had Balaparaya paid the required excise tax on the smokeless tobacco products that was seized from him.
United States Attorney Rachael S. Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. Assistant U.S. Attorney John T. Mulcahy of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
Wayne County Man Pleads Guilty to Selling HeroinRead the Press Release
HUNTINGTON, W.Va. – Jonathan Walker, 29, of Ceredo, pleaded guilty today to distribution of heroin.
According to the plea agreement and statements made during the hearing, Walker admitted that on March 8, 2021, he met an informant in the driveway of his residence on D Street in Ceredo and sold the informant one ounce of heroin for $2,750.
Walker faces up to 20 years in prison when he is sentenced on May 23, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA).
United States District Judge Robert C. Chambers presided over the plea hearing. Assistant United States Attorney Stephanie S. Taylor prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00115.
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Washington County Woman Admits Filing False Federal Income Tax Returns for Business She Co-OwnsRead the Press Release
PITTSBURGH - A resident of West Alexander, Pennsylvania, pleaded guilty in federal court to a charge of filing a false income tax return, United States Attorney Cindy K. Chung announced today.
Tina L. Beck pleaded guilty to one count before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that Beck filed federal income tax returns with the Internal Revenue Service for the calendar years 2015, 2016, 2017 and 2018, on which she willfully underreported gross receipts from the operation of the business she jointly owned with her husband known as “Beck’s Refuse Service”. Beck acknowledged underreporting receipts in excess of $986,000, resulting in a tax loss to the Internal Revenue Service of more than $232,000.
Judge Horan scheduled sentencing for June 21, 2022, at 9:00 a.m. The law provides for a total sentence of not more than three years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued bond.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Internal Revenue Service – Criminal Investigation conducted the investigation that led to the prosecution of Beck.
United States Army Research Biologist and Contractor Charged in Bribery Scheme at Aberdeen Proving GroundRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Jason Edmonds, age 43, of North East, Maryland, with conspiracy and bribery. Co-defendant John Conigliaro, age 60, of Kingsville, Maryland was separately charged with conspiracy in an Information filed on February 1, 2022.
The Indictment against Edmonds was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General; and Special Agent in Charge L. Scott Moreland of the Army Criminal Investigation Division.
As stated in the Indictment, Edmonds was employed by the Army as a Research Biologist at the U.S. Army Combat Capabilities Development Command (CCDC) Chemical Biological Center (CB Center) located at the Aberdeen Proving Ground (APG). The CCDC CB Center was the nation’s principal research and development center for non-medical chemical and biological weapons defense. The CB Center developed technology in the areas of detection, protection, and decontamination.
According to the seven-count Indictment, from 2012 to 2019, Edmonds accepted cash and other financial benefits from John Conigliaro, the owner and CEO of EISCO, Inc. in exchange for favorable action on CB Center contracts. For example, the Indictment alleges that in July 2013, Edmonds directed a $300,000 CB Center project to EISCO. The Indictment alleges that, three months later, in October 2013, Conigliaro gave Edmonds $40,000 in cash so that Edmonds could purchase two rental real estate properties. Once Edmonds purchased the rental properties, the Indictment alleges that Conigliaro paid for thousands of dollars of renovations to the rental properties. The Indictment alleges that Edmonds executed a “Promissory Note,” in which Edmonds wrote that he repaid Conigliaro a portion of the funds that Conigliaro had given him with CB Center projects.
Additionally, the Indictment alleges that from 2016 to 2018, Edmonds directed four CB Center projects to EISCO. Over that same time period, Conigliaro allegedly paid for more than $30,000 in renovations to Edmonds’ personal residence.
Conigliaro is scheduled to appear for an initial appearance and arraignment on February 24, 2022, at 9:30 a.m. before U.S. District Judge Deborah L. Boardman.
If convicted, Edmonds and Conigliaro face a maximum sentence of five years in federal prison for conspiracy, and Edmonds faces fifteen years in federal prison for bribery. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the FBI, the Department of Defense Office of Inspector General, and the Army Criminal Investigation Division for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Matthew P. Phelps and Harry Gruber, who are prosecuting the federal 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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U.S. Attorney’s Office Resolves ADA Investigation of Ascension Providence Hospital and Related Medical FacilityRead the Press Release
DETROIT, MI.— The U.S. Attorney’s Office for the Eastern District of Michigan has resolved its investigation into allegations that Ascension Providence Hospital and an Ascension-affiliated medical facility, Washington Primary Care, violated the Americans with Disabilities Act (ADA) by denying patients with disabilities from bringing their service animals into their facilities, U.S. Attorney Dawn N. Ison announced today.
The agreement resolves two complaints received by the U.S. Attorney’s Office. The first alleged that Ascension Providence Hospital refused to allow a service dog to accompany a patient with a disability into the pre- and post-operative areas of the hospital. The second alleged that a doctor at Washington Primary Care refused to allow a patient to bring her service dog into an examination room, demanded to see “paperwork” for the animals, and told the patient that she would not continue treatment if she insisted on bringing her service animal. At all times, both Ascension entities cooperated with the investigation, which was conducted by the U.S. Attorney’s Office’s Civil Rights Unit.
Under the resolution, Ascension agreed to revise its service animal policy and its non-discrimination policy applicable to all Ascension Michigan entities, and train its relevant staff on the new policies, including the need to conduct an individualized assessment before any service animal is excluded or prohibited from any area of an Ascension Providence Hospital or Washington Primary Care facility.
“The ADA protects the right of individuals who use a service animal for their disability to have their animal with them in virtually all areas, even in hospitals and medical offices. There is no requirement that they provide any documentation for entry and a person should never be denied health services simply because they use a service animal,” said Dawn N. Ison, United States Attorney for the Eastern District of Michigan. “We are pleased that Ascension shares the United States’ commitment to ensuring the people with disabilities are able to fully access all needed medical care.”
The ADA prohibits discrimination against individuals with disabilities by hospitals and other health care providers. Among other things, the ADA requires doctors, hospitals, and other health care providers to make reasonable modifications in their policies, practices, or procedures when necessary to accommodate people with disabilities, including allowing service animals into their facilities. Enforcing the ADA is a top priority of the Civil Rights Unit of the U.S. Attorney’s Office for the Eastern District of Michigan. Those interested in finding out more about the obligations of hospitals and other health providers under the ADA may call the Department of Justice’s toll-free ADA information line at 800-514-0301 or 800-514-0383(TDD), or access the ADA website at www.ada.gov. ADA complaints within the Eastern District of Michigan can be made to the U.S. Attorney’s Office Civil Rights Hotline at (313) 226- 9151 or [email protected].
U.S. Attorney’s Office Announces New Court Guide for Mass Violence TrialsRead the Press Release
COLUMBIA, SOUTH CAROLINA — The U.S. Attorney’s Office for the District of South Carolina announced today the launch of a Planning and Implementation Guide designed to provide a framework to assist those who work with victims, and to help them effectively support survivors and victims’ families through the preparation, planning, and implementation phases of such high-profile cases.
The Guide is the result of a collaborative effort among the United States Attorney’s Office for the District of South Carolina and the National Mass Violence Victimization Resource Center (NMVVRC), located within the National Crime Victims Research & Treatment Center at the Medical University of South Carolina in Charleston.
Following the hate-motivated mass killings of nine parishioners at the Mother Emanuel Church in Charleston on June 17, 2015, and the trauma caused to the entire Church and Charleston community, the U.S. Attorney’s Office for the District of South Carolina managed a trial involving 33 federal charges, including 12 charges specific to hate crimes. The office learned that the coordination of multiple entities – prosecutors, victim services staff and their allies in the community, including mental and behavioral health professionals, and multi-faith communities – was essential to ensuring that survivors and community members were treated with dignity and respect. The Guide is a culmination of learned experiences from that trial and many important evidence-based resources provided by the NMVVRC.
“Tragically, our state has experienced the horrific and lasting impact of mass violence incidents in the Mother Emanuel Massacre, and the resulting complexities in investigating and prosecuting such crimes,” said U.S. Attorney Corey F. Ellis “We are hopeful that this resource will be a useful tool for federal and state prosecutors and their victim services staff in supporting the multi-faceted needs of victims and survivors of those impacted by mass violence incidents.”
“Our focus with this important Guide is to make sure that victims’ needs are identified and addressed,” said NMVVRC Director Dr. Dean Kilpatrick. “The experiences of my team – who supported the work of the U.S. Attorney’s Office on the Mother Emanuel AME trial in 2016 – and a foundation of a strong evidence-base of what helps and avoids hurting victims and survivors during criminal justice processes, is the essence of the Planning and Implementation Guide for Comprehensive, Coordinated Victim Assistance for Mass Violence Incident Trials.”
A copy of the Guide is available here.
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U.s. Attorney’s Office for the U.s. Virgin Islands Commemorates National Teen Dating Violence Awareness and Prevention MonthRead the Press Release
St. Thomas, USVI - United States Attorney Gretchen C.F. Shappert announced that February is Teen Dating Violence Awareness and Prevention Month (TDVAPM), a time to raise awareness about this all-too-common issue, focus efforts on ending the violence, and share resources for teens experiencing violence, survivors, and their communities. The U.S. Attorney’s Office for the U.S. Virgin Islands is proud to stand with survivors and share a new resource funded by the Department of Justice Office on Violence Against Women (OVW), the Teens and Technology Resource Series. There is a significant intersection of technology and teen dating violence, and misuse of technology is an increasingly common tactic on the part of harmful partners. The Teens and Technology resources aim to help adults who teach, work with, and care for teenagers understand technology from their perspective to empower teenagers to safely navigate relationships and technology use. These resources include examples of technology abuse, uses and misuses of social media applications, and five ways to engage with young people.
"Our teenage population should not be subjected to dating violence. Those who attempt to control a relationship through physical or emotional abuse lack the moral character to preserve healthy relationships," said U.S. Attorney Gretchen C.F. Shappert. "Speaking about teen dating violence, abuse, and unhealthy relationships is key in providing young people with the tools necessary to build and maintain healthy, meaningful relationships."
"The pandemic has made everything more challenging – for children and youth, advocates across the country have reported an uptick in online abuse as younger folks spend more time spent online," said OVW Principal Deputy Director Allison Randall. "The Teens and Tech Resource Series can help adults meaningfully engage with young people, empowering them to recognize abuse and unhealthy relationships, prevent future violence, and use technology safely. Teen Dating Violence Awareness and Prevention Month gives us the opportunity to put a spotlight on these projects, as well as OVW’s year-round commitment to ending dating violence."
The National Network to End Domestic Violence (NNEDV) Safety Net Project developed the Teens and Tech Resource Series in partnership with eleven24, a teen violence prevention program dedicated to reducing the prevalence of relationship abuse and sexual violence through media literacy and identity affirmation.
The Office on Violence Against Women provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
If you or someone you know is experiencing domestic violence, intimate partner violence, sexual violence, or stalking, there are many services available to help, including:
• Teen Dating Abuse Hotline, 1-866-331-9474, text ‘LOVEIS’ to 22522, or visit loveisrespect.org;
• State, territory and tribal sexual assault and domestic violence coalitions, which can direct you to local resources and services, as well as opportunities to get involved; and
• The StrongHearts Native Helpline, which offers online chat on their website and a hotline – at 1-844-7NATIVE (or 1-844-762-8483) and provides culturally-appropriate services and advocacy to American Indian and Alaska Native survivors of domestic violence, intimate partner violence, and sexual violence.
Two Washington Men and an Oregon Man Charged with Conspiracy to Obtain Controlled Substances by FraudRead the Press Release
United States Attorney Dennis R. Holmes announced that a Kent, Washington man, a Seattle, Washington man, and a Portland, Oregon man, have been indicted by a federal grand jury for Conspiracy to Obtain Controlled Substances by Fraud.
Hakeem Mohamed, age 22, Zekki Kemal, age 23, and Warsame Jama, age 30, were indicted on October 5, 2021. Jama appeared before U.S. Magistrate Judge Veronica L. Duffy on December 14, 2021, Kemal appeared before Judge Duffy on January 4, 2022, and Mohamed appeared before Judge Duffy on February 4, 2022. They all pled not guilty to the Indictment.
The maximum penalty upon conviction is up to four years in federal prison and/or a $250,000 fine, one year of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning at a date unknown and continuing to on or about December 22, 2020, Mohamed, Kemal, and Jama knowingly and intentionally combined, conspired, confederated, and agreed together and with others to acquire and obtain possession of promethazine with codeine syrup, which is a Schedule V controlled substance, as well as oxycodone, which is a Schedule II controlled substance. They obtained those by misrepresentation, fraud, forgery, deception, and subterfuge.
The charge is merely an accusation and Mohamed, Kemal, and Jama are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Drug Enforcement Administration, Brookings Police Department, Division of Criminal Investigation, Minot Police Department, Pierre Police Department, Vermillion Police Department, and the Worthington Police Department. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
Mohamed was remanded to the custody of the U.S. Marshals Service pending trial. Kemal and Jama were released on bond. A trial date has been set for April 12, 2022.
Two Oklahoma Men Indicted for Hate CrimesRead the Press Release
The Justice Department announced today that a federal grand jury in the Western District of Oklahoma returned a two-count indictment charging two men with committing hate crimes.
The indictment alleges that on June 22, 2019, Brandon Killian and Devan Johnson, aiding and abetting each other, willfully caused bodily injury to two victims because of the perceived or actual race of one of the victims, who is a Black man. The victims are identified in the indictment only as J.C. and M.W. The assaults occurred in the parking lot of the Brickhouse Saloon, in Shawnee, Oklahoma.
If convicted, Killian and Johnson each face a maximum sentence of 10 years in prison, three years of supervised release and a fine of up to $250,000.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and Acting U.S. Attorney Robert Troester for the Western District of Oklahoma made the announcement.
The case was investigated by the Oklahoma City FBI Field Office. Assistant U.S. Attorney Julia Barry of the Western District of Oklahoma and Trial Attorney Avner Shapiro of the Civil Rights Division are prosecuting the case.
An indictment is merely an allegation, and the defendants are presumed innocent unless proven guilty.
Two Maryland women admit to drug chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Christine Anders, of Hagerstown, Maryland, and Jackie Devon Thompson, of North Frederick, Maryland, have admitted to drug charges, United States Attorney William Ihlenfeld announced.
Anders, 26, and Thompson, 42, each pleaded guilty today to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin, Fentanyl, Cocaine Base, and Cocaine Hydrochloride.” Anders and Thompson admitted to working with others to distribute fentanyl, heroin, cocaine base, and cocaine hydrochloride from August 2020 to June 2021 in Berkeley County and elsewhere.
Anders and Thompson each face 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. Attorneys Lara Omps-Botteicher and Timothy D. Helman are prosecuting the cases on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Two Hawaii Legislators Charged with Honest Services FraudRead the Press Release
HONOLULU – United States Attorney Clare E. Connors and Federal Bureau of Investigation Special Agent in Charge Steven Merrill announced that the United States Attorney today filed separate informations charging Jamie Kalani English, age 54, and Ty Cullen, age 41, each with one count of honest services wire fraud. Court appearances for both defendants are expected shortly.
Both informations allege that the defendants defrauded the citizens of the State of Hawaii of their right to honest and faithful services as elected legislators through bribery and concealment of material information. According to one of the informations, English is a former state senator and Senate Majority Leader who served the 7th Senatorial District (Hana, East and Upcountry Maui, Molokai, Lanai, and Kahoolawe) from approximately 2000 until 2021. This information alleges that beginning at an unknown date, but at least by 2015, English received benefits such as cash, hotel rooms and other bribes to take official action that would benefit the person providing the bribes. In one instance involving the 2020 state legislative session, English agreed to introduce a bill and also to kill bills in exchange for cash. The gifts and benefits English received totaled in excess of $18,800, which he also failed to report during the applicable reporting period.
Cullen’s information states that he has represented House District 39 (Village Park, Royal Kunia, Waipahu, Makakilo, and West Loch) since 2013, and serves as Vice Chair of the House Committee on Finance. The information alleges that beginning in 2014, Cullen accepted benefits and gifts such as casino chips and cash intended to influence his official actions as a legislator. The information specifically alleges four cash payments totaling $23,000 from September 2019 to March 2020.
United States Attorney Connors said: “Ensuring that government officials provide services free of corrupt practices that violate federal law is a critical priority. We will continue to work with our law enforcement partners to investigate and prosecute government officials who use their positions for illegal enrichment.”
“The FBI makes corruption investigations a priority in Hawaii and will pursue alleged corruption by public officials such as Mr. English and Mr. Cullen to the fullest extent of the law,” said FBI Special Agent in Charge Merrill. “Today’s charges demonstrate the FBI’s commitment to protect the public’s trust through these types of investigations.”
If convicted, each defendant faces a sentence of up to 20 years imprisonment, and a fine of up to $250,000. An information is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI. Assistant United States Attorneys Kenneth Sorenson, Micah Smith, and Michael Albanese are prosecuting the case.
Two Arrested for Alleged Conspiracy to Launder $4.5 Billion in Stolen CryptocurrencyRead the Press Release
View Deputy Attorney General Monaco's Remarks here.
Two individuals were arrested this morning in Manhattan for an alleged conspiracy to launder cryptocurrency that was stolen during the 2016 hack of Bitfinex, a virtual currency exchange, presently valued at approximately $4.5 billion. Thus far, law enforcement has seized over $3.6 billion in cryptocurrency linked to that hack.
“Today’s arrests, and the department’s largest financial seizure ever, show that cryptocurrency is not a safe haven for criminals,” said Deputy Attorney General Lisa O. Monaco. “In a futile effort to maintain digital anonymity, the defendants laundered stolen funds through a labyrinth of cryptocurrency transactions. Thanks to the meticulous work of law enforcement, the department once again showed how it can and will follow the money, no matter what form it takes.”
“Today, federal law enforcement demonstrates once again that we can follow money through the blockchain, and that we will not allow cryptocurrency to be a safe haven for money laundering or a zone of lawlessness within our financial system,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The arrests today show that we will take a firm stand against those who allegedly try to use virtual currencies for criminal purposes.”
Ilya Lichtenstein, 34, and his wife, Heather Morgan, 31, both of New York, New York, are scheduled to make their initial appearances in federal court today at 3:00 p.m. in Manhattan.
According to court documents, Lichtenstein and Morgan allegedly conspired to launder the proceeds of 119,754 bitcoin that were stolen from Bitfinex’s platform after a hacker breached Bitfinex’s systems and initiated more than 2,000 unauthorized transactions. Those unauthorized transactions sent the stolen bitcoin to a digital wallet under Lichtenstein’s control. Over the last five years, approximately 25,000 of those stolen bitcoin were transferred out of Lichtenstein’s wallet via a complicated money laundering process that ended with some of the stolen funds being deposited into financial accounts controlled by Lichtenstein and Morgan. The remainder of the stolen funds, comprising more than 94,000 bitcoin, remained in the wallet used to receive and store the illegal proceeds from the hack. After the execution of court-authorized search warrants of online accounts controlled by Lichtenstein and Morgan, special agents obtained access to files within an online account controlled by Lichtenstein. Those files contained the private keys required to access the digital wallet that directly received the funds stolen from Bitfinex, and allowed special agents to lawfully seize and recover more than 94,000 bitcoin that had been stolen from Bitfinex. The recovered bitcoin was valued at over $3.6 billion at the time of seizure.
“Cryptocurrency and the virtual currency exchanges trading in it comprise an expanding part of the U.S. financial system, but digital currency heists executed through complex money laundering schemes could undermine confidence in cryptocurrency,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “The Department of Justice and our office stand ready to confront these threats by using 21st century investigative techniques to recover the stolen funds and to hold the perpetrators accountable.”
The criminal complaint alleges that Lichtenstein and Morgan employed numerous sophisticated laundering techniques, including using fictitious identities to set up online accounts; utilizing computer programs to automate transactions, a laundering technique that allows for many transactions to take place in a short period of time; depositing the stolen funds into accounts at a variety of virtual currency exchanges and darknet markets and then withdrawing the funds, which obfuscates the trail of the transaction history by breaking up the fund flow; converting bitcoin to other forms of virtual currency, including anonymity-enhanced virtual currency (AEC), in a practice known as “chain hopping”; and using U.S.-based business accounts to legitimize their banking activity.
“In a methodical and calculated scheme, the defendants allegedly laundered and disguised their vast fortune,” said Chief Jim Lee of IRS-Criminal Investigation (IRS-CI). “IRS-CI Cyber Crimes Unit special agents have once again unraveled a sophisticated laundering technique, enabling them to trace, access and seize the stolen funds, which has amounted to the largest cryptocurrency seizure to date, valued at more than $3.6 billion.”
“Criminals always leave tracks, and today’s case is a reminder that the FBI has the tools to follow the digital trail, wherever it may lead,” said FBI Deputy Director Paul M. Abbate. “Thanks to the persistent and dedicated work of our FBI Investigative teams and law enforcement partners, we're able to uncover the source of even the most sophisticated schemes and bring justice to those who try to exploit the security of our financial infrastructure.”
“Financial crime strikes at the core of our national and economic security. With a hack of this magnitude, public and private sector collaboration is crucial to ensure continued consumer confidence in our financial system,” said Acting Executive Associate Director Steve Francis of Homeland Security Investigations (HSI). “Ilya Lichtenstein and his wife Heather Morgan attempted to subvert legitimate commerce for their own nefarious purposes, operating with perceived anonymity. Today’s action demonstrates HSI’s commitment and ability to work with a collation of the willing to unravel these technical fraud schemes and identify the perpetrators, regardless of where they operate.”
Lichtenstein and Morgan are charged with conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison, and conspiracy to defraud the United States, which carries a maximum sentence of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The investigation was led by IRS-CI Washington, D.C. Field Office’s Cyber Crimes Unit, the FBI’s Chicago Field Office, and HSI-New York. The Ansbach Police Department in Germany provided assistance during this investigation.
The case is being prosecuted by Trial Attorneys Jessica Peck and C. Alden Pelker of the Justice Department’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Christopher B. Brown of the U.S. Attorney’s Office for the District of Columbia. Paralegal Specialists Angela De Falco and Brian Rickers and Legal Assistant Jessica McCormick provided valuable assistance. Significant assistance was also provided by Trial Attorney Christen Gallagher of the Office of International Affairs, the U.S. Attorneys’ Offices for the Eastern District of Pennsylvania and Southern District of New York, HSI-Philadelphia, and former Assistant U.S. Attorney Jessica C. Brooks.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Arrested for Alleged Conspiracy to Launder $4.5 Billion in Stolen CryptocurrencyRead the Press Release
WASHINGTON – Two individuals were arrested this morning in Manhattan for an alleged conspiracy to launder cryptocurrency that was stolen during the 2016 hack of Bitfinex, a virtual currency exchange, presently valued at approximately $4.5 billion. Thus far, law enforcement has seized over $3.6 billion in cryptocurrency linked to that hack.
“Today’s arrests, and the department’s largest financial seizure ever, show that cryptocurrency is not a safe haven for criminals,” said Deputy Attorney General Lisa O. Monaco. “In a futile effort to maintain digital anonymity, the defendants laundered stolen funds through a labyrinth of cryptocurrency transactions. Thanks to the meticulous work of law enforcement, the department once again showed how it can and will follow the money, no matter what form it takes.”
“Today, federal law enforcement demonstrates once again that we can follow money through the blockchain, and that we will not allow cryptocurrency to be a safe haven for money laundering or a zone of lawlessness within our financial system,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The arrests today show that we will take a firm stand against those who allegedly try to use virtual currencies for criminal purposes.”
Ilya Lichtenstein, 34, and his wife, Heather Morgan, 31, both of New York, New York, are scheduled to make their initial appearances in federal court today at 3:00 p.m. in Manhattan.
According to court documents, Lichtenstein and Morgan allegedly conspired to launder the proceeds of 119,754 bitcoin that were stolen from Bitfinex’s platform after a hacker breached Bitfinex’s systems and initiated more than 2,000 unauthorized transactions. Those unauthorized transactions sent the stolen bitcoin to a digital wallet under Lichtenstein’s control. Over the last five years, approximately 25,000 of those stolen bitcoin were transferred out of Lichtenstein’s wallet via a complicated money laundering process that ended with some of the stolen funds being deposited into financial accounts controlled by Lichtenstein and Morgan. The remainder of the stolen funds, comprising more than 94,000 bitcoin, remained in the wallet used to receive and store the illegal proceeds from the hack. After the execution of court-authorized search warrants of online accounts controlled by Lichtenstein and Morgan, special agents obtained access to files within an online account controlled by Lichtenstein. Those files contained the private keys required to access the digital wallet that directly received the funds stolen from Bitfinex, and allowed special agents to lawfully seize and recover more than 94,000 bitcoin that had been stolen from Bitfinex. The recovered bitcoin was valued at over $3.6 billion at the time of seizure.
“Cryptocurrency and the virtual currency exchanges trading in it comprise an expanding part of the U.S. financial system, but digital currency heists executed through complex money laundering schemes could undermine confidence in cryptocurrency,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “The Department of Justice and our office stand ready to confront these threats by using 21st century investigative techniques to recover the stolen funds and to hold the perpetrators accountable.”
The criminal complaint alleges that Lichtenstein and Morgan employed numerous sophisticated laundering techniques, including using fictitious identities to set up online accounts; utilizing computer programs to automate transactions, a laundering technique that allows for many transactions to take place in a short period of time; depositing the stolen funds into accounts at a variety of virtual currency exchanges and darknet markets and then withdrawing the funds, which obfuscates the trail of the transaction history by breaking up the fund flow; converting bitcoin to other forms of virtual currency, including anonymity-enhanced virtual currency (AEC), in a practice known as “chain hopping”; and using U.S.-based business accounts to legitimize their banking activity.
“In a methodical and calculated scheme, the defendants allegedly laundered and disguised their vast fortune,” said Chief Jim Lee of IRS-Criminal Investigation (IRS-CI). “IRS-CI Cyber Crimes Unit special agents have once again unraveled a sophisticated laundering technique, enabling them to trace, access and seize the stolen funds, which has amounted to the largest cryptocurrency seizure to date, valued at more than $3.6 billion.”
“Criminals always leave tracks, and today’s case is a reminder that the FBI has the tools to follow the digital trail, wherever it may lead,” said FBI Deputy Director Paul M. Abbate. “Thanks to the persistent and dedicated work of our FBI Investigative teams and law enforcement partners, we're able to uncover the source of even the most sophisticated schemes and bring justice to those who try to exploit the security of our financial infrastructure.”
“Financial crime strikes at the core of our national and economic security. With a hack of this magnitude, public and private sector collaboration is crucial to ensure continued consumer confidence in our financial system,” said Acting Executive Associate Director Steve Francis of Homeland Security Investigations (HSI). “Ilya Lichtenstein and his wife Heather Morgan attempted to subvert legitimate commerce for their own nefarious purposes, operating with perceived anonymity. Today’s action demonstrates HSI’s commitment and ability to work with a collation of the willing to unravel these technical fraud schemes and identify the perpetrators, regardless of where they operate.”
Lichtenstein and Morgan are charged with conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison, and conspiracy to defraud the United States, which carries a maximum sentence of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The investigation was led by IRS-CI Washington, D.C. Field Office’s Cyber Crimes Unit, the FBI’s Chicago Field Office, and HSI-New York. The Ansbach Police Department in Germany provided assistance during this investigation.
The case is being prosecuted by Trial Attorneys Jessica Peck and C. Alden Pelker of the Justice Department’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Christopher B. Brown of the U.S. Attorney’s Office for the District of Columbia. Paralegal Specialists Angela De Falco and Brian Rickers and Legal Assistant Jessica McCormick provided valuable assistance. Significant assistance was also provided by Trial Attorney Christen Gallagher of the Office of International Affairs, the U.S. Attorneys’ Offices for the Eastern District of Pennsylvania and Southern District of New York, HSI-Philadelphia, and former Assistant U.S. Attorney Jessica C. Brooks.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tuba City Man Sentenced to 51 Months for Involuntary Manslaughter After Rollover CrashRead the Press Release
PHOENIX, Ariz. – Travis Ray Preston, 27, of Tuba City, Arizona, was sentenced yesterday by U.S. District Judge Steven P. Logan to 51 months in prison, followed by three years of supervised release. On June 25, 2021, a federal jury convicted Preston of one count of involuntary manslaughter.
On September 18, 2016, near Tuba City, Arizona, on the Navajo Nation, Preston was operating a vehicle while under the influence of alcohol and driving at a high rate of speed. Preston lost control of the vehicle and caused it to roll multiple times off the road. During this roll, one of Preston’s three passengers was ejected and killed. Later testing revealed that Preston’s blood alcohol content was at least .096 and the vehicle was traveling 69 miles per hour just before the accident. Both Preston and the victim are enrolled members of the Navajo Nation.
The Navajo Police Department conducted the investigation in this case. Assistant U.S. Attorneys Tom Simon and Timothy Courchaine, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-17-08264-PHX-SPL
RELEASE NUMBER: 2022-009_Preston# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Tiffin Man Sentenced to 15 Years in Prison for Intent to Distribute Meth and Illegal Possession of a FirearmRead the Press Release
Justin Rosas, 31, of Tiffin, Ohio, was sentenced today by U.S. District Judge Jack Zouhary to 15 years in prison after Rosas pleaded guilty to possession with the intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime and possession of a firearm as a felon.
According to court documents, on August 21, 2019, Sandusky Police Detectives and DEA investigators executed a search warrant at a residence located on Monroe Street in Sandusky, Ohio. During the execution of the warrant, law enforcement officers encountered Justin Rosas and Fernando Gonzales Jr. inside the residence and seized two semiautomatic pistols located within plain sight of both men. Officers then searched Rosas and located, in his pocket, a substance containing methamphetamine. Rosas is prohibited from possessing a firearm due to a previous conviction of aggravated drug trafficking in the Seneca County Common Pleas Court.
Fernando Gonzales was charged in April 2021 as a felon in possession of a firearm. This case remains ongoing.
This case was investigated by the DEA and Sandusky Police Department. This case was prosecuted by Assistant U.S. Attorney Matthew D. Simko.
Three Buffalo Men Plead Guilty to Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney Trini E. Ross announced today that Kevin Brown, 30, of Buffalo, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to possession of a firearm in furtherance of drug trafficking, which carries a maximum penalty of life in prison. In addition, Reno Sayles, Jr., 32, and Marlon Worthy, 34 of both of Buffalo, NY, pleaded guilty to conspiracy to distribute crack cocaine, fentanyl, and acetyl fentanyl, which carries a maximum penalty of 20 years in prison.
Assistant U.S. Attorneys Jeremiah E. Lenihan and Timothy C. Lynch, who are handling the case, stated that on August 22, 2019, investigators conducting surveillance observed Sayles, Brown and Worthy leaving a residence on Wanda Avenue in Cheektowaga, NY, and getting into two separate vehicles. Both vehicles drove away and stopped shortly after, at which time defendant Brown retrieved a backpack from inside one of the vehicles. Law enforcement seized the backpack and upon searching it, discovered that it contained two loaded handguns, ammunition, magazines, scales, and a bulletproof vest. Officers recovered over 50 grams of cocaine from inside Worthy’s vehicle and another 10 grams inside his pocket. During a search of the Wanda Street residence, investigators also recovered narcotics paraphernalia.
The pleas are the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Cheektowaga Police Department, under the direction of Chief Brian Gould; and the Erie County Sheriff’s Office, under the direction of Sheriff John Garcia with the assistance of their narcotics K-9.
Worthy, Brown and Sayles are scheduled to be sentenced on May 5, 2022, May 6, 2022, and June 2, 2022, respectively, all before Judge Sinatra.
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Team wins Director’s Award for dismantling a major pill mill networkRead the Press Release
U.S. Attorney's Office, Southern District of Georgia Southern District of Georgia U.S. Attorney David H. Estes (from left) recognizes some of the members of the team receiving the Director’s Award for Superior Performance by a Litigative Team from the U.S. Department of Justice, including Vilmarie Alcaraz, Supervisory Paralegal Specialist with the U.S. Attorney’s Office; Matthew A. Josephson, Assistant U.S. Attorney; J. Thomas Clarkson, Former Assistant U.S. Attorney; Jonathan A. Porter, Assistant U.S. Attorney; and Bradford C. Patrick, Assistant U.S. Attorney. Recipients not pictured include former Southern District of Georgia U.S. Attorney’s Office Senior Litigation Technologist Kostantino Athanasopoulos, now with the Eastern District of Pennsylvania; Tierra Bradley, Angelia Coleman, and Eric Kruger with the U.S. Drug Enforcement Administration; Troy Smith, with the Health and Human Services Office of the Inspector General; and Derek Ranger, with the Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service.SAVANNAH, GA: A team led by the Southern District of Georgia U.S. Attorney’s Office received recognition from the U.S. Department of Justice for the successful prosecution of a major pill mill network that illegally funneled millions of opioid pills into the community.
“Our office is justifiably proud of the outstanding work from our professional staff and our law enforcement partners, and this award from the Department of Justice is a well-deserved recognition for their tireless efforts,” said David H. Estes, U.S. Attorney for the Southern District of Georgia. “This investigation, prosecution, and trial victory continues to have a ripple effect throughout our community as related defendants are brought to justice.”
Presented annually by the Director of the Executive Office for United States Attorneys (EOUSA), the award recognizes “steadfast dedication, exemplary professionalism, commitment to excellence, fidelity to the rule of law, and to doing the right thing,” as noted in a congratulatory letter from EOUSA Director Monty Wilkinson to the award recipients. Due to pandemic-related travel restrictions, this year’s 36th Annual Director’s Awards were presented virtually.
The Southern District of Georgia U.S. Attorney’s Office received an award for Superior Performance by a Litigative Team. The recipients are:
- Vilmarie Alcaraz, Supervisory Paralegal Specialist, U.S. Attorney’s Office;
- Kostantino Athanasopoulos, Senior Litigation Technologist, U.S. Attorney’s Office;
- Tierra Bradley, U.S. Drug Enforcement Administration;
- J. Thomas Clarkson, Assistant U.S. Attorney, U.S. Attorney’s Office;
- Angelia L. Coleman, U.S. Drug Enforcement Administration;
- Matthew A. Josephson, Assistant U.S. Attorney, U.S. Attorney’s Office;
- Eric Kruger, U.S. Drug Enforcement Administration;
- Bradford C. Patrick, Assistant U.S. Attorney, U.S. Attorney’s Office;
- Jonathan A. Porter, Assistant U.S. Attorney, U.S. Attorney’s Office;
- Derek Ranger, U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service; and,
- Troy Smith, U.S. Department of Health and Human Services Office of Inspector General.
The team was recognized for the expansive prosecution of a series of cases related to a major pill mill operated by Frank H. Bynes Jr., of Savannah, the leading Medicare prescriber in the country for certain drug cocktails. Over the course of the scheme, Bynes dispensed more than 5 million dosage units, including to addicts and street-level drug dealers. Following a jury trial in U.S. District Court in Savannah, Bynes was convicted and sentenced in February 2020 to 240 months in prison.
The investigative team continued to dismantle the network, securing a prison sentence for another physician who illegally prescribed massive amounts of addictive drugs, along with criminal convictions and civil judgments against pharmacists and pharmacies that dispensed the prescriptions despite numerous red flags. The combined cases resulted in six convictions totaling 321 months of imprisonment; 12 civil recoveries totaling up to $7.75 million; seizure of more than $1 million, 61 firearms, and four vehicles; and several administrative actions.
In addition to these prosecution efforts, the U.S. Attorney’s Office has worked with local hospitals, medical providers, and coroners to address the opioid crisis in the Southern District of Georgia. These efforts have helped to ensure that patients with legitimate pain can continue to receive the medicine they need, and that patients with addiction problems can receive appropriate treatment.
Substance Abuse Treatment Program Agrees to Pay Civil Penalties to Settle Allegations of Controlled Substances Act ViolationsRead the Press Release
NASHVILLE – VCPHCS IX, LLC, which operates a substance abuse treatment program in Nashville, has agreed to pay a civil settlement of $50,000 to resolve allegations that it violated the recordkeeping requirements of the Controlled Substances Act (CSA), announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
The United States alleged that VCPHCS failed to maintain complete and accurate records of the movement of controlled substances, and omitted material information on multiple forms required by the Drug Enforcement Administration (DEA), which are used to order and track controlled substances. Additionally, the United States alleged that VCPHCS failed to include a required form with a return shipment for controlled substances.
“Complete and accurate records are critical to ensure the safe distribution of controlled substances and to protect against diversion,” said U.S. Attorney Wildasin. “For this reason, our Office is committed to expecting total compliance with the Controlled Substances Act.”
“Everyone who is involved in the safe and legal distribution of controlled substances has an obligation to follow the law and do their part to help protect the nation’s prescription drug supply chain against diversion, or other wrong-doing,” said Special Agent in Charge J. Todd Scott, who heads the Drug Enforcement Administration’s Louisville Division. “Proper record keeping is an essential step in this endeavor, and compliance with the Controlled Substances Act is non-negotiable.”
Congress passed the CSA to combat the illegal distribution and abuse of controlled substances, including prescription medications. Under the CSA, entities registered with the DEA who purchase, distribute, dispense, transfer, or sell controlled substances must comply with strict inventory and documentation requirements. Regulations promulgated under the CSA require that each DEA registrant, including narcotic treatment programs, maintain complete and accurate inventories and records of each substance manufactured, received, sold, delivered, dispensed, or otherwise disposed of by the registrant for two years. These requirements play a vital role in ensuring the appropriate handling, accounting, and distribution of controlled substances.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
This case was investigated by the Drug Enforcement Administration’s Nashville Field Office Regulatory Group. The United States was represented by Assistant U.S. Attorney Kaitlin E. Hazard.
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Sherman Oaks Woman Pleads Guilty to Charges for Multimillion-Dollar Scheme to Defraud Health Insurers for Cosmetic ProceduresRead the Press Release
LOS ANGELES – A San Fernando Valley woman pleaded guilty today to federal criminal charges for conspiring to defraud health insurance companies by causing millions of dollars in fraudulent claims to be submitted to provide patients with “free” cosmetic procedures, including Botox injections.
Roshanak Khadem, 54, a.k.a. “Roxanne Khadem” and “Roxy Khadem,” of Sherman Oaks, pleaded guilty to one count of conspiracy to commit health care fraud and one count of subscribing to a false income tax return.
According to her plea agreement, Khadem owned and operated facilities that provided aesthetic services to clients, including R&R Med Spa in Valley Village and Nu-Me Aesthetic and Anti-Aging Center in Woodland Hills.
From January 2012 to April 2016, Khadem caused patients to visit her clinics to receive cosmetic procedures, including Botox injections, facials and laser hair removal. Khadem knew these procedures were not covered by the patients’ health insurers. Khadem also knew that her employees informed some patients that, if they turned over their health insurance information to the Khadem-owned clinics, the patients could receive free or discounted cosmetic procedures pursuant to a “credit” they would earn.
Health insurance information from these patients was provided to the insurance biller for the clinics, knowing and intending that the information would be used to submit false and fraudulent claims to the health insurers for medical procedures that Khadem knew were either not actually provided to the patients or were not medically necessary.
Then, based on the amount that the health insurers paid on those false and fraudulent claims, Khadem and others would calculate an amount, which the co-conspirators referred to as a "credit," that the patients could use to receive free or discounted cosmetic procedures from the clinics. Those patients would then come into the clinics to receive the free or discounted cosmetic procedures.
The proceeds from the health care fraud conspiracy were deposited into bank accounts that were held in the names of doctors who were affiliated with the clinics and who signed off on and caused to be submitted the false and fraudulent claims under their names.
Khadem took possession of the proceeds from the doctors’ accounts in two ways. First, because Khadem had signatory authority on the bank accounts, she was able to obtain the funds by writing checks on the accounts. Second, she would withdraw funds from the bank accounts using pre-signed checks that she obtained from the doctors.
From January 2012 to April 2016, Khadem and her co-conspirators submitted claims, which included false and fraudulent claims for which those companies paid out at least $1,361,200.
Prosecutors estimate the amounts paid based on false and fraudulent claims submitted as part of the health care fraud conspiracy in which Khadem participated could be as much as $7,991,406.
The scheme involving the two clinics defrauded the International Longshore and Warehouse Union, Pacific Maritime Association Benefit Plan, which is the health benefit plan that covers longshore workers in Southern California and their dependents. Another victim was the Federal Employees Health Benefits Program, which provides health insurance for federal employees.
Khadem failed to report this income on her income tax returns for 2013, 2014 and 2015. Khadem’s underreporting of her income for these three years caused a total tax loss of $453,451.
United States District Judge Stephen V. Wilson has scheduled a June 27 sentencing hearing, at which time Khadem will face a statutory maximum sentence of 13 years in federal prison.
The remaining four defendants in this case each have pleaded guilty. Lucine Ilangezyan, 42, of North Hills, pleaded guilty to one count of conspiracy to commit health fraud, and was sentenced to 18 months in federal prison. Gary Jizmejian, 48, of Santa Clarita, a former senior investigator at the Anthem Special Investigations Unit, the anti-fraud unit within Anthem that is responsible for investigating health care fraud committed against the insurance company, pleaded guilty to using his cell phone to send text messages to co-defendants as part of a this commercial bribery scheme– was also sentenced to 18 months in federal prison.
Dr. Roberto Mariano, 63, of Rancho Cucamonga, a physician who helped operate the clinics, and Marina Sarkisyan, 52, of Panorama City, who was the office manager at the clinics, await sentencing.
The United States Department of Labor, Office of Inspector General; the United States Department of Labor, Employee Benefits Security Administration; Internal Revenue Service-Criminal Investigations, and the Office of Personnel Management, Office of Inspector General investigated this matter. The United States Marshals Service provided assistance relating to the asset forfeiture investigation.
Assistant United States Attorneys Valerie L. Makarewicz of the Major Frauds Section and Morgan J. Cohen of the General Crimes Section are prosecuting this case.
Serbian-Hungarian Dual Citizen Pleads Guilty in Manhattan Federal Court to Multi-Million Dollar Business Email Compromise SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that DEJAN MEDIC pled guilty to participating in a business email compromise scheme that stole over $3.7 million from 15 victim companies in the United States and Europe. MEDIC pled guilty to one count of wire fraud before U.S. District Judge Gregory Woods, to whom his case is assigned.
U.S. Attorney Damian Williams said: “As he admitted in court today, Dejan Medic participated in a scheme to defraud Americans, and others worldwide, from thousands of miles away. Medic’s plea today should serve as a warning to those who think they can victimize others and hide behind the anonymity of the internet at a safe distance: the United States and its international partners will find you and hold you accountable.”
According to the Indictment and other documents filed in the case, including the defendant’s statements under oath during his guilty plea:
From in or about July 2018, until approximately March 2019, the defendant engaged in a business email compromise scheme that used fraudulent phone calls and spoofed email accounts to obtain money from at least 15 victim businesses in the United States (the “Victim Companies”). The scheme was typically initiated through a telephone call placed to the U.S.-based Victim Company from a European telephone number. During this call, the caller posed as either a senior executive or a board member of the Victim Company’s Europe-based parent company. During the call, the caller requested the Victim Company’s assistance with a purportedly urgent wire transfer of funds regarding purported debts of the parent company. After the call, the Victim Company then received an initial follow-up email from an email address with a domain name that was either the same, or misleadingly similar to, the Victim Company’s foreign parent company email—a process known as email “spoofing.” The members of the scheme would continue conversations using the spoofed and other email accounts regarding the payment of the alleged debt by the Victim Company’s European parent. The members of the scheme then provided wire transfer information and worked to fraudulently induce the Victim Company into wiring funds to accounts controlled by a member of the scheme.
At least 15 Victim Companies suffered a total loss of approximately $3.7 million through the course of the scheme. In addition, the investigation revealed that the scheme also attempted to obtain approximately $6.8 million in additional fraudulent payments from U.S.-based Victim Companies that were unsuccessful.
As part of the scheme, at least several Victim Companies were fraudulently induced to send funds directly to Hungarian bank accounts opened and controlled by MEDIC. In addition, some of the Victim Companies sent proceeds to other European bank accounts that were converted to gold. Thereafter, on or about April 27, 2019, MEDIC was arrested by Hungarian authorities attempting to cross the border into Serbia in possession of, among other things, three serialized gold bars that were proceeds of the fraud scheme.
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MEDIC, 49, a resident of Szabadk, Serbia, pled guilty to one count of wire fraud, which carries a maximum prison term of 20 years. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the FBI for their outstanding investigative work on this case.
The Justice Department’s Office of International Affairs provided significant assistance in the investigation and securing the extradition of MEDIC from Hungary.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Jilan Kamal and Louis A. Pellegrino are in charge of the prosecution.
Rogers Group Sentenced to over 34 Years Combined in Federal Prison for Drug TraffickingRead the Press Release
FAYETTEVILLE – The final member of a Northwest Arkansas group of drug traffickers has been sentenced to federal prison for Conspiring to Distribute Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearings for the United States District Court in Fayetteville.
According to court documents, in the fall of 2019, Agents with the Drug Enforcement Administration (DEA) identified Jonathan Fullerton, Callie Mann, and Patrick Innes as members of a methamphetamine trafficking organization operating in Northwest Arkansas. During the investigation that spanned approximately one (1) year, agents were able to establish Fullerton as the leader and source of supply to several members of the drug organization. The overall investigation led to the arrest, prosecution, and imprisonment of four (4) individual drug traffickers and the seizure of over 700 grams of methamphetamine. In total, the organization was held responsible for trafficking over 17 pounds of methamphetamine.
The sentencings of the drug trafficking organization members are as follows:
Jonathan Fullerton: age 26, Rogers, Arkansas – Conspiracy to Distribute More Than 50 grams of a Mixture or Substance Containing a Detectable Amount of Methamphetamine – 135 months imprisonment, 4-year term of supervised release, a fine of $1,900, and a $100 special assessment.
Callie Mann: age 42, Rogers, Arkansas – Conspiracy to Distribute More Than 50 grams of a Mixture or Substance Containing a Detectable Amount of Methamphetamine – 96 months imprisonment, 3-year term of supervised release, a fine of $1,400, and a $100 special assessment.
Juan Garcia Maldonado: age 46, Rogers, Arkansas - Distribution of Methamphetamine -120 months imprisonment, a 3-year term of supervised release, a fine of $900, and a $100 special assessment.
Patrick Innes: age 31, Rogers, Arkansas - Conspiracy to Distribute More Than 50 grams of a Mixture or Substance Containing a Detectable Amount of Methamphetamine – 60 months imprisonment, 4-year term of supervised release, a fine of $1,400.00, and a $100 special assessment.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Drug Enforcement Administration, Fayetteville Division, and the Benton County Sherriff’s department investigated the case.
Assistant U.S. Attorney Dustin Roberts prosecuted the case for the United States.
Registered Sex Offender Sentenced to 250 Months in Prison for Distribution of Child Pornography and Online EnticementRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to 250 months in prison for distributing multiple images and videos depicting child sexual abuse and soliciting two children to engage in sexually explicit conduct online, U.S. Attorney Philip R. Sellinger announced.
Christopher Gardiner, 39, of Cranford, New Jersey, previously pleaded guilty before U.S. District Judge Kevin McNulty to an indictment charging him with one count of distributing child pornography and two counts of online enticement of a minor to engage in criminal sexual conduct. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From March 2018 to June 2018, Gardiner engaged an undercover agent in an ongoing sexually graphic conversation on a web-based social media application. During the course of the conversation, Gardiner publicly posted multiple videos depicting the sexual abuse of children in a chatroom and sent similar videos to the undercover agent directly. Law enforcement subsequently discovered numerous images and videos of child sexual abuse on Gardiner’s electronic devices when he was arrested at his home in August 2018. Gardiner was previously convicted of endangering the welfare of a child/distribution of child pornography in Union County in 2007.
In addition to the prison term, Judge McNulty also sentenced Gardiner to five years of supervised release. Gardiner must also register as a sex offender.
U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to today’s sentencing. He also thanked the Cranford Police Department, under the direction of Chief Ryan Greco, for its assistance.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Criminal Division in Newark.
Providence Man Admits to Possessing Cocaine and Fentanyl with Intent to Distribute, Illegally Possessing AmmunitionRead the Press Release
PROVIDENCE, R.I. – A Providence man today admitted in federal court that he possessed over 500 grams of cocaine and approximately 100 fentanyl pills that he intended to distribute; he also admitted that, as a convicted felon, he was illegally in the possession of various magazines of ammunition, announced United States Attorney Zachary A. Cunha.
Henry Arnaut, 26, charged by indictment with possession with intent to distribute 500 grams or more of cocaine, possession with intent to distribute fentanyl, and possession of ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year, pled guilty to all charges.
According to information presented to the court, in November 2020, the U.S. Postal Inspection Service (USPIS), with the assistance of the FBI’s Rhode Island Safe Streets Gang Task Force, began a Project Safe Neighborhoods Investigation into a series of packages shipped to Arnaut’s residence from fictitious addresses in California. Each of the packages bore similar markings and handwriting, consistent with known shipments of illegal drugs by drug traffickers through the U.S. Mail. At least three similar packages were delivered to Arnaut’s residence.
In February 2021, a similar package was identified by USPIS agents as it moved through the mail stream. A court-authorized search of the package determined it contained cocaine. Arnaut was arrested on February 8, 2021, shortly after claiming the package at the U.S. Post Office.
A court-authorized search of Arnaut’s residence on the day of his arrest resulted in the seizure of approximately 100 fentanyl pills, an additional amount of cocaine, high-capacity rifle and pistol magazines, and $1,180 in cash. Arnaut, previously convicted of a felony and sentenced to a term exceeding one year, was legally prohibited from possessing the ammunition. The total amount of cocaine seized from the package and from Arnaut’s residence exceeded 500 grams.
Arnaut is scheduled to be sentenced by U.S. District Court Chief Judge John J. McConnell, Jr., on May 5, 2022.
The case is being prosecuted by Assistant U.S. Attorney Stacey P. Veroni.
This case was investigated and prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Postal Worker Charged with Mail TheftRead the Press Release
BOSTON – A former U.S. Postal Service employee has been charged and has agreed to plead guilty in connection with stealing packages in Gardner.
Roberta Feliz, 32, of Fitchburg, has agreed to plead guilty to one count of theft of mail by an employee of the U.S. Postal Service. A plea hearing is scheduled for March 15, 2022, before U.S. District Court Judge Timothy S. Hillman.
According to the charging documents, from approximately February through August 2020, Feliz stole mail entrusted to her for delivery while a Postal Service employee in Gardner.
The charge of theft of mail by an employee of the U.S. Postal Service provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins and Matthew Modafferi, Special Agent in Charge of the United States Postal Service Office of Inspector General, Northeast Area Office, made the announcement today. Assistant U.S. Attorney Kristen Noto of Rollins’ Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Philadelphia man sentenced for role in drug trafficking enterpriseRead the Press Release
MARTINSBURG, WEST VIRGINIA – Tyrone Kareem Thomas, of Philadelphia, Pennsylvania, was sentenced today to 57 months of incarceration for his role in a drug distribution enterprise, United States Attorney William Ihlenfeld announced.
Thomas, 41, pleaded guilty in May 2021 to one count of “Conspiracy to Participate in a Racketeering Enterprise (RICO Conspiracy).” Thomas admitted to working with others in a drug distribution operation spanning Pennsylvania, Maryland, West Virginia and other locations. The criminal enterprise consisted of racketeering to hide thousands of dollars in proceeds from drug sales, acts of violence, and the distribution of fentanyl, heroin, cocaine base, and cocaine hydrochloride. The crime occurred in Berkeley and Jefferson Counties and elsewhere from June 2019 to October 2020.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The FBI; the Department of Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; and the West Virginia Air National Guard investigated. The Eastern District of Pennsylvania U.S. Attorney’s Office and the Kent County Sheriff’s Office assisted.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Chief U.S. District Judge Gina M. Groh presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/22-people-indicted-drug-trafficking-enterprise-spanned-several-states
Owatonna Sex Offender Arrested, Charged After Threatening to Carry Out a Murder PlotRead the Press Release
MINNEAPOLIS – A federal criminal complaint has been filed against an Owatonna sex offender for sending graphic threats detailing a murder plot against his former child sexual abuse victim, announced Acting United States Attorney Charles J. Kovats.
According to court documents, in March 2021, the Upper Allen Township Police Department in Cumberland County, Pennsylvania, began investigating Michael Lee Kurkowski, 26, regarding the communication and exchange of sexually explicit images of a minor. The investigation revealed that Kurkowski possessed sexually explicit images and videos of a minor and was aware that his victim was, at the time, a minor under the age of 18. Kurkowski also admitted to traveling to Pennsylvania to locate the minor and to try to continue a “relationship” after the minor attempted to end the online communications with Kurkowski. On April 14, 2021, Kurkowski was charged in Cumberland County, Pennsylvania, of multiple felonies related to the sexual exploitation of the minor and was sentenced to 142 days in prison followed by probation. Kurkowski’s probation conditions included, among other things, the requirement to register as a sex offender, refraining from behavior which may present a danger to others, and not possessing weapons.
According to court documents, in December 2021, law enforcement began investigating Kurkowski’s online communications and sexual exploitation of a minor in East Peoria, Illinois. In January 2022, investigators with the East Peoria Police Department (EPPD) reviewed several messages from Kurkowski to the minor describing in graphic detail a plan to travel to Pennsylvania where Kurkowski would murder the parents of his former victim, rape his sister, and then kill her in front of his former victim. EPPD also notified the Cedar Falls Police Department after the investigation revealed that Kurkowski was also engaging in the sexual exploitation of a second minor in Cedar Falls, Iowa.
According to court documents, on February 4, 2022, investigators with the Owatonna Police Department learned that Kurkowski had purchased a Greyhound bus ticket and was currently en route to Harrisburg, Pennsylvania, the general location of Kurkowski’s former victim and his family. FBI investigators developed information on Kurkowski’s whereabouts and were able to track him to a bus stop in Toledo, Ohio, where authorities took Kurkowski into custody. According to court documents, when he was arrested, Kurkowski had with him a bag containing among other things 16 heavy flex cuffs, electrical tape, a taser, a large knife, rubber gloves, and hooded facemasks.
Kurkowski has been charged by complaint in the District of Minnesota with one count of threatening interstate communication. Kurkowski made his initial appearance yesterday before Magistrate Judge Darrell A. Clay in the Northern District of Ohio, who ordered that Kurkowski be detained temporarily and removed to Minnesota, where he will make his initial appearance and have a detention and preliminary hearing at a later date.
This case is the result of an investigation conducted by the FBI, the Owatonna Police Department, the Upper Allen Township (Pennsylvania) Police Department, the East Peoria (Illinois) Police Department, and the Cedar Falls (Iowa) Police Department.
Assistant U.S. Attorney Laura M. Provinzino is prosecuting the case.
A criminal complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
One sentenced, one indicted on separate child exploitation chargesRead the Press Release
AUGUSTA, GA: A Columbia County, Ga., man has been sentenced to federal prison for possession of child pornography, while a second man has been indicted by a federal grand jury in a separate case.
Christopher Dale Smith, 20, of Martinez, Ga., was sentenced to 87 months in prison after pleading guilty to Possession of Child Pornography, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Chief Judge J. Randal Hall also ordered Smith to pay $3,000 in restitution, and to serve 15 years of supervised release and register as a sex offender after completion of his prison term.
There is no parole in the federal system.
“Online images of child pornography perpetually victimize our most vulnerable citizens,” said U.S. Attorney Estes. “Identifying those who exploit children and holding them accountable brings a measure of justice for these victims.”
The investigation of Smith began in January 2021 when the National Center for Missing and Exploited Children received a cyber tip that identified images of child pornography. Agents from the FBI then identified Smith and discovered dozens of images and videos of child exploitation on devices in his possession.
“The facts of this case are upsetting, and unfortunately all too common,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “Smith’s sentence demonstrates the determination of the FBI and U.S. Attorney’s Office to find those who prey on innocent children in our communities and bring them to justice.”
In an unrelated case, Mark Christopher Greene, 46, of Appling, Ga., has been indicted by a U.S. District Court grand jury for possession of child pornography. That investigation, also involving NCMEC, the FBI and the Georgia Bureau of Investigation, led to Greene’s indictment. The charge carries a statutory penalty upon conviction of up to 20 years in federal prison, along with substantial financial penalties and a period of supervised release after any prison sentence.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
The cases are being prosecuted for the United States by Assistant U.S. Attorney Jeremiah L. Johnson and Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara M. Lyons.