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Wednesday 15 December 2021
Albuquerque man appears in court on bank robbery chargeRead the Press Release
ALBUQUERQUE, N.M. – Angel Lara, 33, of Albuquerque, appeared in federal court on Dec. 14 for a preliminary and detention hearing on a charge of attempted bank robbery. Lara will remain in custody pending trial, which has not been scheduled.
According to a criminal complaint, on Nov. 30, Lara allegedly entered a Wells Fargo Bank in Albuquerque and presented a demand note to a teller. The note included instructions to alert the media. The teller pressed an alarm button. As Lara was approached by security, Lara allegedly kept his hand in his jacket pocket and claimed to have a firearm. Police later arrived at the bank, negotiated with Lara, and took him into custody.
A complaint is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Lara faces up to 20 years in prison.
The FBI Violent Crimes and Gangs Task Force investigated this case with assistance from the Albuquerque Police Department. Assistant U.S. Attorney Samuel A. Hurtado is prosecuting the case.
Additional defendants charged with trafficking young girls for sexRead the Press Release
HOUSTON – Three more people have been indicted and additional charges filed in human trafficking conspiracy involving young runaway girls on what it known as the “Blade,” announced Acting U.S. Attorney Jennifer B. Lowery
Law enforcement arrested Chantel Deshay Collins, 28, Houston, and Asia Monae Hailey aka Momo, 21, Galveston, this morning. They are expected to appear for an initial appearance tomorrow before U.S. Magistrate Andrew Edison. Michael Gonzalez aka Mumbles, 21, Houston, is currently in Harris County jail on other charges and is expected to be transferred to federal court to answer these charges by the end of the week.
Also charged are Clarence Chambers aka Chris aka Crazzi Chris, 29, Javon Opoku aka Glizzy, 20, Damarquis McGee aka Lil Blue, 23, Jerreck Hilliard, aka JMoney, Vanessa Sillabi aka Chocolate, 21, and Andres Portillo aka Andro, 20. They are also expected to appear on the new charges in the superseding indictment Dec. 23 before Judge Edison.
The defendants are charged with trafficking young runaway girls on what it known as the “Blade” or the Bissonnet Track. This is an area near Southwest 59 Freeway and Bissonnet Street in Houston where traffickers commonly place their victims, according to the charges.
In addition to the sex trafficking allegations, the superseding indictment includes new charges against many for kidnapping, sexual exploitation of a child, attempted obstruction of justice and attempted coercion/enticement of a child.
According to the superseding indictment, the defendants worked to recruit underage teenage girls and forced them to engage in sex acts for money in cars and hotels around the Blade. They allegedly passed around or reassigned victims amongst one another, taught each other “the pimp game” and required the young girls to walk the Blade and sell their bodies. They also kept the proceeds, according to the charges.
The superseding indictment further alleges if any of the girls wanted to switch between pimps, they would have to pay an exit fee or get “beat out” to do so. In one instance, a minor girl had allegedly wandered onto a rival pimp’s territory. The charges allege she was kidnapped and raped as a consequence.
Some of those charged also required daily quotas each night from their victims, according to the charges. The superseding indictment further alleges if the girls failed to meet their daily quotas, they were severely punished through beatings and humiliation. In some cases, pimps allegedly instructed other females to carry out these beatings as punishment. At other times, some defendants worked with the pimps to help harbor, manage, maintain, transport or collect sex trafficking proceeds from the minor victims, according to the charges.
If convicted, they all could face up to life in prison.
The Houston Police Department initiated the investigation and later partnered with Homeland Security Investigations and the Harris County District Attorney’s Office as part of the Human Trafficking Rescue Alliance (HTRA). Established in 2004, the U.S. Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorneys Richard Bennett and Kate Suh are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law .Acting United States Attorney Announces Dilworth, MN, Man Sentenced to Federal Prison for Violent Gang RobberiesRead the Press Release
FARGO - Acting United States Attorney Nicholas W. Chase announced that on December 13, 2021, U.S. District Court Chief Judge Peter D. Welte sentenced Josiah Thomas Aguilar, age 21, Dilworth, MN, to 100 months in federal prison for two counts of Interference with Commerce by Threats and Violence – Hobbs Act Robbery; Use of a Firearm During and in Relation to a Crime of Violence; Conspiracy to Possess with Intent to Distribute and Distribute Controlled Substances; and Aiding and Abetting. Chief Judge Welte also sentenced Aguilar to 3 years supervised release and a $400 Special Assessment.
It is alleged that from January 2019 through May 2019, Abbot Aho, led a criminal gang known as the "Slither Gang," members of which conspired with Aho and other individuals to target robbery victims who were themselves alleged drug traffickers in North Dakota, Minnesota, and elsewhere. Aguilar and the co-conspirator gang members carried out a string of robberies by threats of violence, the infliction of violence, and the brandishing of firearms and other dangerous weapons. Aguilar and the co-conspirators often resorted to home invasions or setting up victims to meet at a public place, and then robbed them of drugs, money, firearms and personal property, later selling the drugs they stole.
"The defendants engaged in a string of vicious and violent attacks, including multiple armed robberies" said Acting US Attorney Nicholas W. Chase, and "The US Attorney’s Office is committed to targeting these most violent offenders for federal prosecution and we commend the outstanding work of the Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and our local and state law enforcement partners for their steadfast commitment to identifying and investigating prolific violent criminal organizations, enforcing the law, and protecting our communities from acts of violence."
"ATF is committed to working with our local, state and federal partners to remove violent offenders from our communities, regardless of who the offenders target in their crimes," said ATF Special Agent in Charge William McCrary, of the St. Paul Field Division. "The acts these individuals committed were dangerous and could have easily caused injury or death to innocent bystanders. We simply cannot allow illegal guns, drugs, and armed violent gang members to plague our neighborhoods. We are grateful for the tireless efforts of the U.S. Attorney’s Office in their successful prosecutions which disrupted and dismantled this criminal enterprise."
In addition to numerous similar though unrelated federal prosecutions across the state as a part of this initiative, several of Aguilar’s co-conspirators have also been indicted in North Dakota and are awaiting trial and/or have been sentenced for their involvement in the violent robberies:
• Cory Carlson, age 24, Robbinsdale, MN: Sentenced on December 9, 2021, to 100 months in federal prison and 3 years supervised release for the charges of Interference with Commerce by Threats and Violence – Hobbs Act Robbery and Use of a Firearm During and in Relation to a Crime of Violence.
• Sarah Ann Carlson, age 21, Minneapolis, MN: Sentenced on July 19, 2021, to 80 months imprisonment and 3 years supervised release for the charges of Conspiracy to Interfere with Commerce by Threats and Violence – Hobbs Act Robbery; Interference with Commerce by Threats and Violence – Hobbs Act Robbery; Use of a Firearm During and in Relation to a Crime of Violence; and Aiding and Abetting.
• Jared Christopher Kaul, age 21, Fridley, MN: Sentenced on December 8, 2021, to 32 months in federal prison and 3 years supervised release for the charges of Conspiracy to Interfere with Commerce by Threats and Violence – Hobbs Act Robbery; Conspiracy to Possess with Intent to Distribute and Distribute Controlled Substances.
• Nicholas Dakota May, age 22, Fargo ND: Sentenced on November 23, 2021 to 28 months imprisonment and 3 years supervised release for the charges of Interference with Commerce by Threats and Violence – Hobbs Act Robbery and Conspiracy to Possess with Intent to Distribute and Distribute Controlled Substances.
• Shelby Lynn Dallman, age 23, Faribault, MN: Sentenced on August 23, 2021 to 24 months imprisonment and 3 years supervised release for the charge of Interference with Commerce by Threats and Violence – Hobbs Act Robbery.
• Abbot William Aho, a/k/a Boogie, age 26, Fergus Falls, MN: Indicted on the charges of Continuing Criminal Enterprise, Conspiracy to Interfere with Commerce by Threats and Violence – Hobbs Act Robbery; Interference with Commerce by Threats and Violence – Hobbs Act Robbery; Use of a Firearm During and in Relation to a Crime of Violence; Conspiracy to Possess with Intent to Distribute and Distribute Controlled Substances; and Aiding and Abetting. Mr. Aho is pending trial; Grand Jury Indictments are allegations and are not evidence of guilt. Mr. Aho is presumed innocent unless and until he is proven guilty beyond a reasonable doubt at trial.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Fergus Falls MN Police Department; and the Ottertail County Attorney’s Office, and the case is being prosecuted by the United States Attorney’s office, with Assistant United States Attorney Chris C. Myers assigned to the case.
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Absconded human smuggler receives more time for possessing firearmsRead the Press Release
McALLEN, Texas – A 30-year-old Rio Grande City resident has been ordered to federal prison for possessing multiple firearms and hundreds of rounds of ammunition, announced Acting U.S. Attorney Jennifer B. Lowery.
Victor Aleman Jr. had been sentenced for another crime but did not report to prison as ordered. He was then found and charged with being a felon in possession of a firearm. He pleaded guilty Sept. 28.
Today, District Judge Michaela Alvarez sentenced him to serve 40 months in federal prison for the firearms charge to be served consecutively to the previous 18 months on the human transporting conviction. The total 58-month prison term will be immediately followed by three years of supervised release. In handing down the sentence, the court noted the number of firearms involved in the case and how it is especially important that individuals abide by laws that relate to the safety of the public. Judge Alvarez also emphasized how Aleman was on pre-trial release for the human-smuggling case and that possessing the firearms throughout both that time and his post-sentencing release was in violation of the court’s orders and the law.
In April, Judge Alvarez had sentenced Aleman for transporting aliens within the United States. At sentencing, Judge Alvarez ordered Aleman to voluntarily surrender to the U.S. Marshals Service (USMS), but he failed to do so.
Authorities were able to locate him and took him into custody. At that time, they conducted a search of his residence and recreational vehicle and found two assault rifles, a handgun, more than 200 rounds of ammunition and four high-capacity AR-15 magazines.
Aleman admitted he owned the firearms and placed the handgun in the bedroom drawer because he loved the gun.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the U.S. Marshals Service. Assistant U.S. Attorney Lee A. Fry prosecuted the case.
Tuesday 14 December 2021
Wheeling Woman Charged with Stealing Mail while Employed by U.S. Postal ServiceRead the Press Release
PITTSBURGH - One resident of Wheeling, West Virginia, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal Postal laws, United States Attorney Cindy K. Chung announced today.
The one-count Indictment named Cheryl L. Edgell, age 37, as the sole defendant.
According to the Indictment, on April 14, 2021, Edgell engaged in theft of mail matter while employed by the United States Postal Service.
The law provides for a maximum total sentence of not more than 5 years in prison, a fine of not more than $250,000, a term of supervised release of not more than three years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brian W. Castello is prosecuting this case on behalf of the government.
The United States Postal Service Office of Inspector General 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.
Note: The docket for this prosecution indicates that the defendant successfully completed Pretrial Diversion, resulting in the dismissal of this charge on March 26, 2025.
Wausau Man Sentenced to 12 Years for Dealing MethamphetamineRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Jacob A. Willox, 28, Wausau, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 12 years in federal prison for distributing 50 grams or more of methamphetamine and for possessing methamphetamine with intent to distribute. This prison term will be followed by 5 years of supervised release.
In May 2020, a confidential informant purchased three ounces of methamphetamine from Willox in Wausau after Willox indicated he had 12 ounces of methamphetamine for sale. Then, in October 2020, officers arrested Willox at a residence where he attempted to flush additional methamphetamine down a sink. Officers were able to recover some of that methamphetamine. They also found nearly $30,000 in drug proceeds, a drug ledger, a firearm magazine, and brass knuckles at the residence.
Further investigation revealed Willox was responsible for selling multiple pounds of methamphetamine throughout the Wausau area, and regularly possessed firearms during his drug deals. Willox was prohibited from legally possessing firearms as the result of prior felony convictions.
At sentencing, Judge Conley noted that Willox’s crimes contributed to the bigger issue of methamphetamine addiction in the community, and that his possession of firearms while dealing posed an additional danger. Judge Conley reasoned that a sentence of 12 years was appropriate to protect the community and offer rehabilitation to Willox, who has a history of drug addiction.
The charges against Willox were the result of an investigation conducted by the Central Wisconsin Narcotics Task Force and the Drug Enforcement Administration. Assistant U.S. Attorneys Robert A. Anderson and Taylor L. Kraus prosecuted this case.
Virginia Tax Preparer Sentenced to Prison for False ReturnsRead the Press Release
A Virginia man was sentenced today to 38 months in prison for preparing false tax returns on behalf of clients, theft of government funds, and failing to file his own federal income tax returns.
According to court documents and evidence presented at trial, from at least 2013 through 2019, Karl Burden-El Bey (aka Carl L. Burden), 66, of Hampton, created false tax returns for clients of his Hampton tax preparation business. On his clients’ returns, Burden-El Bey claimed false dependent information, residential energy credits, gifts to charity, deductions, and child and dependent care expenses, all to inflate his clients’ refunds from the IRS. As trial evidence showed, Burden-El Bey often concealed his involvement by not signing such false returns as the tax preparer. He also stole $5,000 by directing without authorization a portion of one client’s refund into his personal bank account. Even though he earned income as a tax preparer that exceeded the minimum filing threshold, from 2013 through 2017 Burden-El Bey did not file his own individual income tax returns with the IRS.
In addition to the term of imprisonment, U.S. District Judge David J. Novak ordered Burden-El Bey to serve three years of supervised release and pay approximately $5,000 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jessica D. Aber for the Eastern District of Virginia made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Grace Albinson and Francesca Bartolomey of the Justice Department’s Tax Division and Assistant U.S. Attorneys Brian Samuels and Lisa McKeel of the U.S. Attorney’s Office for the Eastern District of Virginia prosecuted the case.
Union County Man Charged with Unlawful Firearm PossessionRead the Press Release
NEWARK, N.J. – A Union County man made his initial appearance on a charge of possession of a firearm by a convicted felon, Acting U.S. Attorney Rachael A. Honig announced today.
Miguel Aviles, aka “Ricardo Bermudez,” 47, of Elizabeth, New Jersey, is charged by complaint with possessing a firearm after having been convicted of a felony. Aviles made his initial appearance before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court on Dec. 13, 2021 and was detained without bond.
According to documents filed in this case and statements made in court:
On Aug. 27, 2021, two victims reported to Elizabeth police that Aviles had pointed a gun at them, threatened to shoot them, and then fired the weapon, all inside the victims’ residence. Two other occupants of the residence confirmed hearing the shot.
The charge of possession of a firearm by a convicted felon carries a maximum penalty of 10 years in prison and a maximum fine of $250,000.
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews, and the Elizabeth Police Department with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the Violent Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Two Men Sentenced to Prison for Receiving over $600,000 in Global Robocall Scam that Defrauded Elderly VictimsRead the Press Release
CAMDEN, N.J. – Two Indian nationals were sentenced to prison today for their roles in a conspiracy to commit wire fraud by accepting illegally obtained wire transfers from victims across the country totaling over $600,000, Acting U.S. Attorney Rachael A. Honig announced.
Zeeshan Khan, 22, and Maaz Ahmed Shamsi, 24, were each sentenced today to 27 months in prison by U.S. District Judge Joseph Rodriguez in Camden federal court. The defendants previously pleaded guilty before Judge Rodriguez to an information charging each with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
As part of an international fraud scheme, India-based call centers utilized automated robocalls to victims with the intent of defrauding U.S. residents, particularly the elderly. After establishing contact with victims through these automated calls, other members of the conspiracy would coerce or trick the victims into sending large sums of cash through physical shipments or wire transfers to other members of the conspiracy, including Shamsi and Khan. These conspirators used a variety of schemes to convince victims to send money, including impersonating government officials from agencies such as the Social Security Administration, or impersonating law enforcement officers from the FBI or Drug Enforcement Administration, and threatened victims with severe legal or financial consequences if they did not comply. Another method utilized by the callers involved convincing the victims they were speaking with someone from a tech support company and coercing the victims into granting the caller remote access to their personal computers, and through that, to the victims’ bank accounts. By manipulating the victims’ bank accounts, the caller would convince the victims that an overpayment was made to the victims and ultimately instruct them to send money by way of mail or wire transfer to other members of the conspiracy, including Shamsi and Khan.
As part of this scheme, Shamsi and Khan are charged with receiving fraudulent wire transfers from 19 victims across the country totaling approximately $618,000.
In addition to the prison terms, Judge Rodriguez sentenced Shamsi and Khan to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the Social Security Administration, Office of the Inspector General Office of Investigations, New York Field Division, under the direction of Special Agent in Charge John F. Grasso; and special agents of the Department of Homeland Security, Homeland Security Investigations New York Field Office – El Dorado Task Force, under the direction of Special Agent in Charge Peter C. Fitzhugh, with the investigation leading to today’s sentencing.
The government is represented by Special Assistant U.S. Attorney Meriah Russell of the U.S. Attorney's Office Criminal Division in Camden.
Two Kankakee Men Sentenced in Separate Child Enticement CasesRead the Press Release
URBANA, Ill. – Two Kankakee, Illinois, men were sentenced on December 13, 2021, in separate child enticement cases. They were Kyren Williams, 31, of the 1000 block of S. Osborn Ave., and Jazzie Simmons, 30, of the 200 block of Greenwood Ave.
Senior U.S. District Judge Michael Mihm sentenced Simmons to 87 months’ imprisonment, to be followed by eight years of supervised release. Simmons pleaded guilty in August 2021 to one count of attempted enticement of a minor.
Judge Mihm sentenced Williams to 120 months’ imprisonment, to be followed by eight years of supervised release. Williams pleaded guilty in July 2021 to one count of attempted enticement of a minor and one count of attempted sexual exploitation of a child.
Previously, in March 2020, a federal grand jury had charged each of the men by indictment following their February 2020 arrests pursuant to criminal complaints. Also in February, U.S. Magistrate Judge Eric I. Long ordered that the men be detained pending trial. They have remained in the custody of the U.S. Marshals Service since their arrests.
“This operation and other similar ones show our continued commitment, along with the FBI and our other law enforcement partners, to uncover and prosecute sexual predators,” said U.S. Attorney Gregory K. Harris. “Parents and other care givers need to continually monitor their children’s electronic communications to protect them from such offenders.”
“The online environment can be a dangerous place,” said David Nanz, Special Agent in Charge of the Federal Bureau of Investigation's Springfield Office. “That’s why the FBI will never give up the exhaustive work of rooting out those who prey on innocent children. These sentences demonstrate the importance of the collaborative work among our law enforcement partners to hold sexual predators accountable.”
Simmons, and Williams were arrested over Valentine’s Day weekend 2020 as part of a related FBI Springfield Division Operation conducted in Kankakee County. The operation was conducted with the coordination and assistance of the Bradley Police Department, the Kankakee County Sheriff’s Office, and the Kankakee Area Metropolitan Enforcement Group. Assistant U.S. Attorney Elly Peirson represented the government in the prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Tuskegee Man’s Supervised Release Revoked After Being Involved in Shootout Resulting in Murder ChargeRead the Press Release
Montgomery, Alabama – On December 10, 2021, Cornelius Donte Bowen, 32, from Tuskegee, Alabama, was sentenced to 24 months in prison after violating the terms of his supervised release, announced Acting United States Attorney Sandra J. Stewart.
According to court records and statements made in court, in October of 2020, Bowen began serving a three-year period of supervised release following a prison sentence for being a felon in possession of a firearm. Then, on June 12, 2021, Bowen was in the parking lot of a housing complex in Tuskegee and began arguing with others over a fender bender involving a car belonging to the mother of his children. During the argument, Bowen and at least one other person began shooting. One man died and Bowen himself was shot in the exchange. Bowen was arrested on June 13th and, the following day, the United States Probation Office petitioned the court to revoke Bowen’s supervised release. State charges of murder and attempted murder are still pending.
This case was investigated by the Tuskegee Police Department and the United States Probation Office for the Middle District of Alabama, with assistance from the Montgomery Police Department. Assistant United States Attorney Megan Kirkpatrick prosecuted the case.
Three Defendants Charged in $1.3 Million Covid Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Jonathan Mellone, Special Agent in Charge of the New York Regional Office of the U.S. Department of Labor Office of Inspector General (“DOL-OIG”), Ricky Patel, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and Damon Wood, Inspector in Charge, Philadelphia Division of the United States Postal Inspection Service (“USPIS”), announced today the unsealing of a complaint charging MARILUZ FERMIN, BELLANILDA FERMIN, and JUAN NOLASCO with conspiracy to commit wire fraud, theft of government benefits, and aggravated identity theft in connection with a COVID-19 unemployment benefit scheme that attempted to steal more than $1.3 million from the New York Department of Labor (“NY DOL”). MARILUZ FERMIN, BELLANILDA FERMIN, and NOLASCO were arrested this morning in Yonkers, New York, and will be presented this afternoon before United States Magistrate Judge Gabriel W. Gorenstein.
U.S. Attorney Damian Williams said: “As alleged, the defendants, working in concert, fraudulently filed claims for COVID-19 unemployment benefits under the names and social security numbers of at least 75 other people, making off with nearly $700,000 and attempting to steal more than $1.3 million. Now all three are in custody and facing serious federal charges.”
DOL-OIG Special Agent in Charge Jonathan Mellone said: “The Unemployment Insurance Program exists to provide needed assistance to qualified individuals who are unemployed due to no fault of their own. Fraud against the Unemployment Insurance Program distracts state workforce agencies from ensuring that benefits go to individuals who are eligible to receive them. The Office of Inspector General will continue to work closely with our law enforcement partners, to investigate those who allegedly exploit the Unemployment Insurance Program.”
HSI Acting Special Agent in Charge Ricky Patel said: “As alleged in the Complaint, these individuals attempted to manipulate a program designed to help Americans and U.S. businesses pay their bills, retain employees, and keep afloat on the heels of a global pandemic that took the lives of millions throughout the world. Each defendant allegedly used the personal information of more than 70 people in this attempt, and succeeded in stealing at least $687,000 in COVID unemployment benefits – stealing not just from the government, but from everyday Americans who need it most. HSI and our partners will use all of our resources to seek out and bring to justice those that attempt to steal benefits meant to help those struggling to get back on their feet from COVID-19.”
USPIS Inspector in Charge Damon Wood said: “These individuals allegedly took advantage of the pandemic and those truly in need of assistance when they developed a scheme to lie and steal from the government and the American public. Today, they have been brought to justice for their alleged crimes by Postal Inspectors and their law enforcement partners whose mission is to keep the public safe from criminal activity.”
As alleged in the Complaint[1]:
From May 2020 through October 2020, MARILUZ FERMIN, BELLANILDA FERMIN, and JUAN NOLASCO engaged in a scheme to obtain COVID-19 unemployment benefits by fraudulently filing and verifying applications using the names and social security numbers of at least 75 other people. The NY DOL was alerted to the suspicious activity based on metadata associated with the applications (the “Fraudulent Applications”), which indicated that the Fraudulent Applications were submitted from the same internet protocol (“IP”) address. During that same time, the IP Address was used to log into unemployment benefits claims – including the Fraudulent Applications – at least approximately 900 times. Further, MARILUZ FERMIN, BELLANILDA FERMIN, and JUAN NOLASCO exchanged text messages that included, among other things, personal identifying information – such as names, email accounts, and dates of birth – used in the Fraudulent Applications. In addition, between in or about June 2020 and in or about August 2020, NOLASCO visited several ATM machines in the Bronx, New York, for the purpose of withdrawing funds issued as a result of the Fraudulent Applications. The scheme filed claims for more than $1.3 million and succeeded in stealing at least $687,000 in COVID-19 unemployment benefits before the fraud was detected.
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MARILUZ FERMIN, 46, BELLANILDA FERMIN, 41, and JUAN NOLASCO, 37, are each charged with (1) conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison, (2) theft of government benefits, which carries a maximum sentence of 10 years in prison, and (3) aggravated identity theft, which carries a mandatory two-year consecutive sentence. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by a judge.
Mr. Williams praised the outstanding investigative work of the DOL-OIG, the Internal Revenue Service - Criminal Investigation, HSI, USPIS, the Social Security Administration - Office of the Inspector General, and the NY DOL.
The case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Mitzi S. Steiner is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation as to the defendants charged in the Complaint.
Texas Man Arrested for COVID-19 Relief SchemeRead the Press Release
A Texas man was arrested today for allegedly fraudulently obtaining over $3.3 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to allegations in the indictment, Scott Jackson Davis, 46, of Harris County, fraudulently received over $3.3 million in PPP funds through three fraudulent PPP loan applications submitted to a financial institution. Davis submitted applications for three businesses which he claimed to represent: Skilled Trade Investments LP (STILP), Skilled Trade Staffing LLC (STS), and Skilled Trade Investments Group LLC (STIGP). Davis claimed that these businesses had numerous employees and significant payroll, when in fact, they had few if any employees and little to no payroll. Davis also claimed on the applications that he had not been convicted of a felony in the previous five years, when in fact he had pleaded guilty to felony wire fraud charges in the Southern District of Texas in April 2017. Davis spent a large portion of the PPP loan funds on private jet travel, real estate, and luxury vehicles.
Davis is charged with wire fraud, bank fraud, and money laundering. The defendant is scheduled for his initial court appearance today before U.S. Magistrate Judge Christina A. Bryan of the U.S. District Court for the Southern District of Texas. If convicted, he faces a maximum total penalty of 30 years in prison for each count of bank fraud, 20 years in prison for each count of wire fraud, and 10 years in prison for each count of money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Jennifer Lowery for the Southern District of Texas; Inspector General Hannibal “Mike” Ware of the SBA-Office of Inspector General (SBA-OIG); Acting Assistant Director Jay Greenberg of the FBI’s Criminal Investigative Division; and Special Agent-in-Charge Perrye K. Turner of the FBI’s Houston Field Office made the announcement.
The SBA-OIG and FBI’s Houston Field Office are investigating the case.
Trial Attorney Edward E. Emokpae of the Criminal Division’s Fraud Section and Assistant U.S. Attorney John Wakefield of the U.S. Attorney’s Office for the Southern District of Texas are prosecuting the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, 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.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Sussex County Man Sentenced to 64 Months in Prison for Fraudulently Obtaining $5.6 Million Loan Meant to Help Small Businesses During COVID-19 PandemicRead the Press Release
NEWARK, N.J. – A Sussex County, New Jersey, man was sentenced today to 64 months in prison for fraudulently obtaining a federal Paycheck Protection Program (PPP) loan of over $5 million, Acting U.S. Attorney Rachael A. Honig announced.
Azhar Sarwar Rana, 31, of Newton, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of bank fraud and one count of money laundering. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Rana submitted a fraudulent PPP loan application to a lender on behalf of a corporate entity, Azhar Sarwar Rana LLC, that purportedly invested in real estate development. The application falsified payroll and tax information and included internally inconsistent listings of the number of company employees. New Jersey Department of Labor records showed that Azhar Sarwar Rana LLC paid no wages in 2019, and the minimal wages it purportedly paid in 2020 were mostly to individuals whose submitted Social Security numbers did not correspond to their submitted names.
Based on Rana’s misrepresentations, the lender approved Rana’s PPP loan application and provided Azhar Sarwar Rana LLC with approximately $5.6 million in federal COVID-19 emergency relief funds meant for distressed small businesses. Rana used the fraudulently obtained PPP loan proceeds to pay for numerous personal expenses, including to invest millions in the stock market, make a payment to a luxury car dealership, and send hundreds of thousands of dollars to accounts in Pakistan. Rana was arrested on Dec. 12, 2020, after he booked a same-day flight to Pakistan.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
In addition to the prison term, Judge Salas sentenced Rana to five years of supervised release, ordered restitution of $5.58 million. A forfeiture order of $5.68 million was entered in September 2021.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; special agents of the Social Security Administration Office of the Inspector General, New York Field Division, under the direction of Inspector General Gail S. Ennis; and special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Ricky J. Patel in New York, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Jennifer S. Kozar and Carolyn Silane of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Sussex County Man Sentenced to 62 Months in Prison for Unlawfully Possessing Weapons, MarijuanaRead the Press Release
NEWARK, N.J. – A Sussex County, New Jersey, man was sentenced today to 62 months in prison for possessing marijuana and an arsenal of weapons and ammunition, Acting U.S. Attorney Rachael A. Honig announced.
Joseph Rubino, 59, of Lafayette Township, New Jersey, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of possession of marijuana with intent to distribute and one count of possession of firearms and ammunition by a convicted felon. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On July 24, 2019, following a motor vehicle accident, officers with the New Jersey State Police observed numerous weapons and ammunition inside Rubino’s crashed vehicle. After executing court-authorized search warrants on Rubino’s vehicle and residence, law enforcement recovered an arsenal of weapons and ammunition from Rubino’s car and house, including:
- An Intratec Arms Model TEC-DC9 semi-automatic assault handgun;
- A Cobray Arms Mac-11 9mm semi-automatic assault pistol with a high capacity magazine;
- A Keltec CMR30 .22 caliber semi-automatic rifle loaded with sixteen (16) .22 caliber hollow-point cartridges;
- A High Standard Derringer .22 caliber double-barrel handgun;
- A Polymer 80 9mm semi-automatic handgun;
- An Ithaca M-66 20-gauge single shotgun;
- A Remington Model 700 .223 caliber bold action rifle with scope;
- A Thompson Center .50 caliber muzzle-loading rifle with scope;
- A Remington Model 870 Wingmaster 12-gauge pump shotgun;
- A New England Firearms 20-gauge single shot shotgun;
- A Remington Model 760 .300 Savage pump rifle;
- A Glenfield Mod 60 .22 LR caliber semi-automatic rifle;
- Two sawed-off double-barrel shotgun barrels
- Several high-capacity magazines;
- Numerous silencers;
- An assault rifle scope;
- A grenade launcher;
- A ballistics vest; and
- Numerous additional ammunitions of various calibers
In addition to the firearms and ammunition, law enforcement recovered approximately 2.5 kilograms of marijuana from Rubino’s house.
In addition to the prison term, Judge Martini sentenced Rubino to three years of supervised release.
Acting U.S. Attorney Honig credited the New Jersey State Police, under the direction of Col. Patrick J. Callahan, and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark, with the investigation leading to today’s guilty plea. She also thanked the Warren County Prosecutor’s Office, under the direction of Prosecutor James L. Pfeiffer, and the Sussex County Prosecutor’s Office, under the direction of Prosecutor Francis A. Koch for their assistance.
The government is represented by Assistant U.S. Attorney Naazneen Khan of the Organized Crime and Gangs Unit in Newark.
St. Paul Felon Sentenced to 60 Months in Prison for Illegally Possessing a FirearmRead the Press Release
MINNEAPOLIS – A St. Paul man was sentenced to 60 months in prison, followed by three years of supervised release for illegally possessing a firearm as a felon, announced Acting U.S. Attorney Charles J. Kovats.
According to court documents, on February 5, 2019, officers with the St. Paul Police Department observed Michael Antonio Miller, 38, and his girlfriend leave a residence and drive away together in a vehicle. At the time, there was an active Domestic Abuse No Contact Order in place between Miller and his girlfriend. The officers initiated a traffic stop on the vehicle. As officers approached the driver’s side of the vehicle where the girlfriend was seated, she opened the center console and moved some papers out of the way to reveal a loaded Smith and Wesson, .40 caliber pistol. In an interview following his arrest, Miller admitted that the firearm was his. Because of his prior felony convictions in Ransey and Hennepin Counties, Miller is prohibited from possessing a firearm or ammunition at any time.
Miller was sentenced today by Senior U.S. District Judge Michael J. Davis, Acting U.S. Attorney Charles J. Kovats made the announcement after he was sentenced.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is the result of investigations conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the St. Paul Police Department.
Assistant U.S. Attorneys Samantha H. Bates and Ruth S. Shnider prosecuted the case.
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Springfield Man Indicted for Child Sexual ExploitationRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man who contacted hundreds of children through a teen dating website was indicted by a federal grand jury today on child sexual exploitation charges.
Kody Ryan Kelso, 30, was charged in a five-count superseding indictment returned by a federal grand jury in Springfield, Mo. Today’s superseding indictment replaces the original indictment that was filed on June 23, 2021, and includes additional charges. Kelso has been detained without bond since his arrest on June 16, 2021.
Today’s indictment charges Kelso with the sexual exploitation of a child to produce child pornography and with using the internet and cell phone to induce a child under the age of 14 to engage in illicit sexual activity, both of which are related to an undercover law enforcement operation in the United Kingdom in which officers posed as a child.
The indictment also charges Kelso with one count of the sexual exploitation of a child victim to produce child pornography, one count of using the internet and cell phone to induce a second child victim under the age of 14 to engage in illicit sexual activity, and one count of receiving and distributing child pornography.
According to court documents, Kelso used an online service named My LOL, a teen dating site with chat features, to contact a person he believed to be a 13-year-old girl, but in reality was an undercover law enforcement officer in the United Kingdom. Kelso allegedly asked her to have sexual intercourse with him and to send him nude images.
Kelso allegedly contacted more than 560 additional individual MyLOL users between Jan. 7 and Feb. 21, 2021. Each user was between the age of 13 and 17. In numerous instances, according to court documents, Kelso attempted to discuss sexual topics with these users and request sexual images.
In addition to the information from the United Kingdom, investigators received two Cybertips from the National Center for Missing and Exploited Children regarding Kelso’s online activity and posting a child pornography video online.
On June 16, 2021, law enforcement officers executed a search warrant at Kelso’s apartment and he was arrested. Officers seized multiple electronic devices.
This case is being prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the Springfield, Mo., Police Department, the FBI, and Homeland Security Investigations.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
South Carolina Man Admits Interstate Gun Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – A South Carolina man today admitted conspiring to illegally sell firearms, including five pistols and one rifle, in and around Essex County, New Jersey, Acting U.S. Attorney Rachael A. Honig announced.
Carter Wilkerson, 21, of Orangeburg, South Carolina, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiracy to engage in the business of unlicensed firearms dealing.
According to documents filed in this case and statements made in court:
From April 2021 through May 18, 2021, Wilkerson was a member of a gun trafficking conspiracy. In furtherance of the conspiracy, he trafficked six firearms, with the intent to sell these weapons to at least one New Jersey resident.
The count of conspiracy to engage in the business of unlicensed firearms dealing carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for April 26, 2022.
This case 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.
Acting U.S. Attorney Honig credited special agents and task force officers of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark, and special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews, Newark Field Division, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Francesca Liquori, Chief of the OCDETF/Narcotics Unit in Newark and Assistant U.S. Attorney Samantha Fasanello, of the Organized Crime and Gangs Unit in Newark.
Six Individuals, Including a Village of Brewster Police Officer, Charged in Sex Trafficking and Bribery SchemeRead the Press Release
A 14-count indictment was unsealed today in federal court in Brooklyn charging Luz Elvira Cardona, Roberto Cesar Cid Dominguez, Cristian Noe Godinez, Blanca Hernandez Morales, Jose Facundo Zarate Morales and Wayne Peiffer, a Village of Brewster police officer, with conspiracy to transport minors and the transportation of minors, sex trafficking, conspiracy to commit Hobbs Act extortion, promotion of prostitution, use of interstate facilities to commit bribery and related conspiracy counts.
Cardona, Cid Dominguez, Hernandez Morales and Zarate Morales were arrested earlier today in Queens, New York. Peiffer was arrested earlier today in Highland, New York. Godinez is currently a fugitive. The defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge James R. Cho.
Breon Peace, United States Attorney for the Eastern District of New York, Ricky J. Patel, Acting Special Agent-in-Charge, Department of Homeland Security, Homeland Security Investigations, New York (HSI), Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the arrests and charges.
“As alleged, the defendants conspired to lure young women and minor girls to travel to the United States based on false promises of a better life and forced them into prostitution once they arrived. The defendants allegedly received assistance in carrying out this conspiracy from a corrupt police officer who traded the honor of his badge and sworn oath for free sexual services,” stated United States Attorney Peace. “This Office is committed to bringing sex traffickers to justice and dismantling organizations that victimize women.” Mr. Peace thanked the Putnam County Sheriff’s Department, Putnam County District Attorney’s Office and Westchester Putnam County Real Time Crime Center for their invaluable assistance with the case.
“As alleged, the individuals named in the indictment were part of an elaborate network of conspirators that used deception and coercion to sell dreams of a better life in the United States to young and impressionable women, who arrived only to be forced into a miserable life of torment, sexual abuse and prostitution at the hands of their captors,” stated HSI Acting Special Agent-in-Charge Patel. “The criminal organization also allegedly retained the services of a corrupt cop, who betrayed the badge and the people that he swore to protect by being complicit in these deplorable acts and accepting payments in sexual favors. This case involved true collaboration between federal, state and local law enforcement partners to bring the hierarchy of this trafficking organization to justice.”
“Our arrest of a police officer isn't the most egregious facet of this investigation. We allege Mr. Peiffer had sex with the girls being trafficked as payment for his protection of the traffickers. The oath law enforcement officers take affirms they will serve and protect law abiding citizens and vulnerable members of the community, not aid and abet criminals who are abusing young girls and forcing them to have sex against their will. The FBI New York Child Exploitation and Human Trafficking Task Force and our law enforcement partners have done outstanding work searching out the leaders of these criminal organizations and holding them accountable. However, that's only half of the story of their incredible work. Now they're helping the victims through the trauma they experienced, and getting them the help they need to heal,” stated FBI Assistant Director-in-Charge Driscoll.
“The allegations in today’s indictment – that these two illicit organizations were aided for years by a sworn officer who betrayed his solemn oath to protect the public – represent among the most heinous crimes we confront. The NYPD and our law enforcement partners share an unwavering commitment to protect survivors of human trafficking and to ensure that anyone seeking to profit through the abuse and exploitation of others is brought to justice. I commend our NYPD officers, government partners, and the United States Attorney’s Office in the Eastern District of New York for their tireless work in dismantling these entities and for successfully pursuing this important case,” stated NYPD Commissioner Shea.
As set forth in court filings, the charges relate to the operation of two sex trafficking and prostitution organizations – the Cid-Hernandez Sex Trafficking Organization and the Godinez Prostitution Business – and the years-long bribery of Peiffer, who allegedly accepted free sexual services by the two organizations in exchange for protecting the organizations from law enforcement detection and arrest.
Since approximately May 2002, members of the Queens-based Cid-Hernandez Sex Trafficking Organization allegedly engaged in the sex trafficking of young women and minor girls and the promotion of prostitution. Cardona, Cid Dominguez, Hernandez Morales and Zarate Morales used force, threats of force, fraud and coercion to cause young women and minor girls from Mexico to engage in prostitution in the United States. Members of the organization pressured the victims to travel to the United States with false promises of employment and a better life. Once smuggled into the United States, the victims were forced to engage in prostitution. The young women and minor girls were transported to prostitution clients throughout the State of New York.
The Godinez Prostitution Business also regularly caused women to be transported from a location in Queens to various locations, including Brewster, New York, for the purpose of engaging in prostitution. Noe Godinez worked as a driver for the Godinez Prostitution Business and transported women along preassigned routes to prostitution clients.
Both the Cid-Hernandez Sex Trafficking Organization and the Godinez Prostitution Business operated in Brewster, where they received protection from Peiffer. Since at least 2006, Peiffer has been a police officer with the Village of Brewster Police Department (“BPD”). For more than eight years, Peiffer allegedly directed members of the Cid-Hernandez Sex Trafficking Organization and the Godinez Prostitution Business to deliver women to him, including at the BPD police station, so that he could engage in sexual activity with the women at no cost to Peiffer. In exchange, Peiffer provided the Cid-Hernandez Sex Trafficking Organization and the Godinez Prostitution Business protection from arrest, including by advanced warning of law enforcement operations and intervening to prevent arrest.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the office’s Civil Rights Section. Assistant United States Attorneys Margaret Lee, Nicholas Moscow and Rachel A. Bennek are in charge of the prosecution.
The Defendants:
LUZ ELVIRA CARDONA
Age: 33
Queens, New YorkROBERTO CESAR CID DOMINGUEZ
Age: 54
Queens, New YorkCRISTIAN NOE GODINEZ
Age: 42
Queens, New YorkBLANCA HERNANDEZ MORALES
Age: 51
Queens, New YorkJOSE FACUNDO ZARATE MORALS
Age: 32
Queens, New YorkWAYNE PEIFFER
Age: 48
Highland, New YorkE.D.N.Y. Docket No. 21-CR-622 (LDH)
San Diego Man Indicted for Multimillion-Dollar Investment SchemeRead the Press Release
Assistant U. S. Attorney Andrew J. Galvin (619) 546-9721
NEWS RELEASE SUMMARY – December 14, 2021
SAN DIEGO – A indictment unsealed today charges San Diego resident Denny Bhakta with securities fraud and money laundering for running an investment fraud scheme that took in at least $28 million from investors since 2016.
According to court documents and statements made in court, Bhakta solicited investments in his companies, Fusion Hotel Management, LLC and Fusion Hospitality Corporation (collectively “Fusion”). Bhakta falsely told investors that Fusion routinely acquired discounted blocks of hotel rooms from Hilton, which Fusion then sold to United Airlines at a higher price for a significant profit. Instead of buying blocks of hotel rooms with investors’ funds, however, Bhakta used the money for personal expenses and to make payments to other investors.
The indictment alleges that Bhakta provided investors with fabricated documents, including bank records that purported to show payments from Fusion to Hilton and fake agreements between Fusion and United Airlines. These documents gave the false appearance that Fusion bought large blocks of hotel rooms from Hilton and sold them to United Airlines. According to statements made in court, Bhakta laundered the proceeds of his fraud scheme by using investor funds from Fusion’s bank accounts at various casinos, including the ARIA Resort & Casino and The Cosmopolitan of Las Vegas.
Bhakta was arrested at his San Diego residence on Tuesday morning.
“We will do everything we can to protect investors and to seek justice when they fall victim to scammers,” said Acting U.S. Attorney Randy Grossman. “Investors, be suspicious of high-pressure sales tactics, promises of returns that are too good to be true, and always verify the license and legitimacy of the person making the pitch.” Grossman thanked the prosecution team and the FBI for their excellent work on this case.
“The defendant allegedly spent the last five years making millions of dollars based on false promises supported by fraudulent financial statements and fake business agreements,” said FBI Special Agent in Charge Suzanne Turner. “This case should serve as a warning – the FBI will continue to partner with the U. S. Securities and Exchange Commission to root out all forms of investment fraud.”
The next hearing is scheduled for January 21 at 1:30 p.m.
DEFENDANT Case Number 21-CR-3352-JLS
Denny Bhakta Age: 39 San Diego, CA
SUMMARY OF CHARGES
Securities Fraud – Title 15, U.S.C., Sections 78j(b), 78ff, and Title 17, C.F.R., Section 240.10b-5
Money Laundering – Title 18, U.S.C., Section 1957
Maximum penalty: Twenty years in prison
AGENCY
Federal Bureau of Investigation
Securities and Exchange Commission
*The charges and allegations contained in an indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
San Antonio Man Sentenced to 14 Years in Prison for Attempted Coercion of a MinorRead the Press Release
SAN ANTONIO – Today a San Antonio man was sentenced to 168 months in prison for attempting to coerce and entice a minor.
According to court documents, Rick Benavides, 48, responded to a post purportedly from a 14-year-old who was visiting a relative on Joint Base San Antonio – Lackland (LAFB). Benavides requested multiple times that the child send him naked photos. He also stated numerous times he wanted to engage in sexual acts with the minor. Benavides made plans to pick the child up at the park on LAFB and take the minor to his house to engage in sexual activities.
Unbeknownst to Benavides, he was chatting with U.S. Air Force—Office of Special Investigations (AFOSI) undercover agents. When Benavides entered LAFB and attempted to meet the child, he was arrested by AFOSI agents.
“Mobile applications are great tools which have enhanced many areas of our lives in recent years; however, we must protect our children from predators hiding behind the cloak of anonymity they provide,” said U.S. Attorney Ashley C. Hoff.
On July 8, 2021, Benavides was found guilty by a federal jury of one count of attempted coercion and enticement of a minor.
The AFOSI investigated the case.
Assistant U.S. Attorney Bettina Richardson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Salem County Man Admits Possession of Child PornographyRead the Press Release
CAMDEN, N.J. – A Salem County, New Jersey, man today admitted possessing images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.
Rickie Wayne Patton, 40, of Pennsville, New Jersey, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with one count of possession of child pornography.
According to documents filed in this case and statements made in court:
On Feb. 10, 2020, a Task Force Officer with the FBI’s Child Exploitation and Human Trafficking Task Force identified an IP Address that was sharing suspected child sexual abuse materials over a peer-to-peer file sharing network. From Feb. 10, 2020, to March 15, 2020, the officer downloaded several video files containing images of child sexual abuse from a computer at the same IP Address. The IP Address was then traced to Patton’s residence, where the FBI executed a search warrant on May 19, 2020. The FBI found laptop computers and digital storage media belonging to Patton. Forensic examination later confirmed those devices contained images of child sexual abuse.
The count of possession of child pornography carries a maximum sentence of 20 years in prison and a fine of up to $250,000. Sentencing is scheduled for April 18, 2022.
Acting U.S. Attorney Honig credited special agents and task force officers of the FBI, Philadelphia Division, Child Exploitation and Human Trafficking Task Force, under the direction of Special Agent in Charge Jacqueline Maguire, with the investigation leading to today’s guilty plea. She also thanked the Pennsville Police Department, under the direction of Chief Vincent Green, and the Salem County Prosecutor’s Office, under the direction of Acting Prosecutor Kristin J. Telsey, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Andrew B. Johns of the Criminal Division in Camden.
Rockford Man Sentenced to Four Years in Federal Prison for Illegally Possessing HandgunRead the Press Release
ROCKFORD — A Rockford man has been sentenced to four years in federal prison for illegally possessing a loaded handgun with an obliterated serial number.
DONTREL U. BROWN, 24, illegally possessed the gun on May 13, 2020, in Rockford. Brown at the time was on probation for previous felony convictions and was prohibited by federal law from possessing the firearm.
U.S. District Judge Iain D. Johnston imposed the sentence Monday after a hearing in federal court in Rockford.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, & Explosives. The Rockford Police Department provided valuable assistance in the investigation. The government was represented by Assistant U.S. Attorney Jessica S. Maveus.
Rochester Man Pleads Guilty to Distribution of FentanylRead the Press Release
CONCORD - Michael Rand, 36, of Rochester, pleaded guilty on Monday in federal court to distribution of fentanyl, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in October of 2019 the Federal Bureau of Investigation (FBI) received a tip that Rand was selling heroin, fentanyl, and methamphetamine in the Dover and Rochester areas. Working with a cooperating individual, the FBI arranged for a controlled purchase of fentanyl at Rand’s apartment in November of 2019.
Rand is scheduled to be sentenced on March 22, 2022.
“Fentanyl trafficking endangers lives and damages communities,” said Acting U.S. Attorney Farley. “We work closely with the FBI and all our law enforcement partners to identify and prosecute the drug dealers who are peddling fentanyl and other dangerous drugs in the Granite State.”
“Today, Michael Rand admitted to selling the deadly drug fentanyl which is associated with the vast majority of drug overdose deaths in New Hampshire,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The FBI will continue to work closely with our law enforcement partners to stop the distribution of fentanyl and to bring to justice those like Rand who are pushing highly addictive drugs on our streets and into the hands of addicts.”
This matter was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Kasey Weiland.
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Rochester Man Going to Prison for Receiving Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Joshua Sattora, 37, of Rochester, NY, who was convicted of receipt of child pornography, was sentenced to serve 108 months in prison by Chief U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Meghan K. McGuire, who handled the case, stated that between December 2017, and August 2018, Sattora and co-defendant Rebecca Woodin engaged in a series of text messages during which Woodin sent approximately 14 sexually explicit images of a minor to Sattora. During this same time, Sattora also sent images of child pornography to Woodin. In total, Sattora possessed at least 923 images and 362 videos of child pornography on two cellular telephones and three computers. Rebecca Woodin was previously convicted and sentenced to serve 180 months in prison.
The sentencing is a result of an investigation by the Department of Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino; the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent-in-Charge Stephen Belongia; the New York State Police, under the direction of Major Barry Chase; and the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
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Removed Mexican National Charged with Illegally Re-entering the U.S.Read the Press Release
PITTSBURGH - One Mexican national has been indicted by a federal grand jury in Pittsburgh on a charge of Reentering the United States, United States Attorney Cindy K. Chung announced today.
The one-count Indictment named Isaias Garcia-Hernandez, age 39, as the sole defendant.
According to the Indictment, on September 19, 2021, Mr. Garcia-Hernandez was found in the Allegheny County Jail after he was arrested by the Pittsburgh Bureau of Police. Mr. Garcia-Hernandez has been removed from this country on at least one previous occasion.
The law provides for a maximum total sentence of not more than three years in prison, a fine, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brian W. Castello is prosecuting this case on behalf of the government.
Immigration and Customs Enforcement 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.
Reading Man Pleads Guilty to Wire Fraud and Identity Theft ChargesRead the Press Release
BOSTON – A Reading man pleaded guilty in federal court in Boston today in connection with a scheme to defraud an elderly relative of her interest in a three-family home and a separate scheme to defraud the Massachusetts Department of Unemployment Assistance.
Giorgio “George” Fiorenza, 51, pleaded guilty to two counts of wire fraud and one count of aggravated identity theft. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for April 7, 2022. Fiorenza was charged in August 2020.
Between August and September 2017, Fiorenza defrauded an elderly relative into unknowingly signing a deed conveying her interest in a property she owned with Fiorenza’s spouse and forged the victim’s name on another document necessary to convey title to the property, both of which were recorded in the Middlesex Registry of Deeds. Fiorenza then took out a $750,000 loan in his spouse’s name and secured by the property, and subsequently caused the lender to foreclose on the property.
Between April and June 2020, Fiorenza filed claims for Pandemic Unemployment Assistance (PUA) in the names of third parties and fraudulently diverted some of the funds for his own use. PUA was a temporary federal unemployment insurance program created when Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) in March 2020 in response to the global coronavirus pandemic. The PUA program, which in Massachusetts was administered by the Department of Unemployment Assistance, provided unemployment insurance benefits for individuals who were not eligible for other types of unemployment benefits. Among other things, Fiorenza filed a PUA claim using a victim’s identity, directed the proceeds of the claim to an account in his spouse’s name, and did not disclose to the victim or her husband that she had qualified for assistance.
The charge of wire fraud provides a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. The charge of aggravated identity theft provides a mandatory sentence of two years in prison, one year of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell, Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division and Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations made the announcement. Assistant U.S. Attorneys Kristen A. Kearney and David M. Holcomb of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
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.
Rantoul Man Sentenced to 10 Years in Prison for Child Pornography OffensesRead the Press Release
URBANA, Ill. – A Champaign County man, Alan L. Dodd, 38, of the 100 block of Shady Lawn Drive in Rantoul, Illinois, was sentenced on December 13, 2021, to 10 years’ imprisonment for distribution and possession of child pornography.
At Dodd’s sentencing hearing, Senior U.S. District Court Judge Michael M. Mihm found that Dodd traded child pornography images depicting prepubescent children on multiple social media applications, including Instagram, Twitter, Snapchat, and Discord.
On August 12, 2021, Dodd entered a plea of guilty to the indictment, which charged him with one count of distribution of child pornography on October 25, 2020, and one count of possession of child pornography, on February 11, 2021. Dodd has remained in the custody of the U.S. Marshals since his arrest on February 12, 2021.
Following Dodd’s release from prison, he will be on federal supervised release for 10 years and will be required to register as a sex offender.
“This office will continue to vigorously protect the safety of children from those who would seek to exploit them,” said U.S. Attorney Gregory K. Harris.
The charges were investigated by Department of Homeland Security, Immigration and Customs Enforcement; the Champaign County Sheriff’s Office; and the Internet Crimes Against Children Task Force led by the Illinois Attorney General. Assistant U.S. Attorney Elly Peirson represented the government in the prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Puerto Rican Man Admits Conspiring to Distribute over 250 Kilograms of CocaineRead the Press Release
NEWARK, N.J. – A Puerto Rican man today admitted conspiring to distribute over 250 kilograms of cocaine, Acting U.S. Attorney Rachael A. Honig announced.
Mariano Enrique Arroyo Perez, aka “Humilde,” 29, pleaded guilty before U.S. District Judge Esther Salas to a superseding indictment charging him with conspiracy to distribute five kilograms or more of cocaine.
According to documents filed in this case and statements made in court:
From 2017 through July 2019, Arroyo Perez and his conspirators conspired to distribute approximately 250 kilograms of cocaine. They conspired to transport cocaine on private planes, including approximately 150 kilograms of cocaine from Puerto Rico to New Jersey on a private plane on Nov. 18, 2018, which law enforcement intercepted. After several men boarded a private plane in Puerto Rico destined for a Teterboro Airport in New Jersey, the pilots became suspicious, as the men were not on the manifest for the flight and their luggage was particularly heavy. Their luggage contained the 150 kilograms of cocaine. Law enforcement arrested the four passengers.
After this seizure, law enforcement learned that Arroyo Perez had coordinated this shipment. Law enforcement also reviewed judicially authorized wire intercepts that showed that Arroyo Perez and a conspirator discussed and coordinated the Nov. 18, 2018, events and shared the names of the four passengers.
The count of conspiracy to distribute five kilograms or more of cocaine carries a statutory mandatory minimum sentence of 10 years in prison and a maximum penalty of life imprisonment and a fine of up to $10 million. Sentencing is scheduled for April 21, 2022.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Acting U.S. Attorney Honig credited special agents and task force officers with the Drug Enforcement Administration in New Jersey, under the direction of Special Agent in Charge Susan A. Gibson in Newark, as well as special agents and task force officers with the Drug Enforcement Administration in Colombia, the Dominican Republic, and Puerto Rico. She also thanked the U.S. Office of International Affairs and the U.S. Marshals Service for their assistance with the case.
The government is represented by Assistant U.S. Attorney Lauren Repole of the Economic Crimes Unit in Newark and Assistant U.S. Attorney Francesca Liquori, Chief of the OCDETF Unit in Newark.
President of three Puyallup tribal smoke shops sentenced to prison for money-laundering scheme to evade state tobacco taxesRead the Press Release
Seattle – A 43-year-old President of three Puyallup tribal smoke shops was sentenced late Friday, December 10, 2021, in U.S. District Court in Seattle to 14 months in prison for a sophisticated money-laundering scheme designed to evade state taxes on smokeless tobacco products, announced U.S. Attorney Nick Brown. Anthony Edwin Paul was ordered to pay $1,764,818 in restitution to the Washington State Department of Revenue, plus a $5,000 fine. U.S. District Judge James L. Robart told Paul, “Money laundering is an integral part of criminal activity…. You turned the key that starts this conspiracy.”
“This sophisticated scheme to avoid state tobacco taxes harms all our residents by cutting into state funds used to pay for healthcare and treatment for tobacco related illnesses,” said U.S. Attorney Nick Brown. “The scheme allowed non-tribal tobacco vendors to have a sales advantage over other retailers—encouraging tobacco use, and boosting their profit while they avoided paying state taxes.”
“Mr. Paul conspired to defraud the state for his own greed, cheating Washington State residents out of millions of dollars that otherwise would have been invested into services for the community,” said Bret Kressin, Special Agent in Charge of IRS Criminal Investigation (IRS-CI), Seattle Field Office. “Financial fraud and tax evasion are not victimless crimes, and IRS-CI will continue to investigate and bring to justice those who choose to commit these offenses.”
According to records filed in the case, between 2009 and 2017, Paul was President of three smoke shops on the Puyallup reservation that sold significant quantities of tobacco products to TK Mac, a non-tribal tobacco distributor. Most of the sales were in cash, and TK Mac failed to report the purchases to the state, thus avoiding millions of dollars in excise taxes. When TK Mac then resold the products for cash, the company had a problem, since large deposits of cash would have triggered state scrutiny of its tobacco business. So beginning in 2013 and continuing until 2017, Paul and his coconspirators engaged in a money-laundering scheme: The tribal smoke shops wrote checks to TK Mac as if the tribal smoke shops had purchased tobacco products from the non-tribal store. In fact, TK Mac simply provided the tribal smoke shops with large amounts of cash equal to the checks. No tobacco products changed hands, but TK Mac received an excise tax credit. As a result of this cash-for-check scheme, Washington State suffered losses of roughly $3.86 million. The overall scheme caused the state to incur several more million dollars’ worth of losses.
Paul had an interest in the success of TK Mac, as he had made loans to the owners of the non-tribal retail business, TK Mac, of nearly $2 million. The owners of TK Mac, Hyung Il Kwon and Tae Young Kim, have also entered guilty pleas for their roles in the scheme. One of the employees in the tribal smoke shops, Theodore Kai Silva, has also pleaded guilty. Judge Robart will sentence Kwon, Kim, and Silva in January 2022.
Following the indictment of Paul’s coconspirators, the government seized more than $5 million from Kwon and Kim. The amount of restitution left owing from the cash-for-check scheme is $1,764,818. Judge Robart ordered Paul to pay that amount as restitution (joint and several with Kim and Kwon), along with the $5,000 fine.
The case was investigated by IRS-CI, with assistance from Homeland Security Investigations (HSI).
The case was prosecuted by Assistant United States Attorneys James Oesterle and Jonas Lerman.
Portland Man Sentenced in Connection with Drive-By ShootingRead the Press Release
PORTLAND, Maine—A Portland man was sentenced today in U.S. District Court in Portland for being a felon in possession of a firearm, U.S. Attorney Darcie N. McElwee announced.
Chief U.S. District Judge Jon D. Levy sentenced Abdikareem Hassan, 33, to four years in prison followed by three years of supervised release. He pleaded guilty on July 30, 2021.
According to court records, on July 5, 2020, Hassan fired approximately five shots at the Portland Police Department Headquarters from a black Hyundai Tucson. Hassan was arrested during the early morning hours of July 6, 2020. Law enforcement recovered a gun with Hassan’s DNA on it near the scene of the shooting and bullet casings on the windshield of the Hyundai. Hassan is prohibited from possessing firearms due to a prior felony conviction.
In pronouncing sentence, Chief Judge Levy stated that Hassan’s conduct posed a “grave danger to the community” and reflected “complete disregard for the welfare of other people.”
“Violence directed at anyone, including law enforcement officers, cannot be tolerated,” said U.S. Attorney McElwee. “It is only because of sheer luck that no one was killed or gravely injured as a result of Hassan’s actions. We at the U.S. Attorney’s Office, in partnership with our state, local and tribal partners, are committed to taking all possible steps to address violent crime in Maine.”
The FBI and the Portland Police Department investigated the case with assistance from the U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Plum Felon Charged with Illegally Possessing Multiple Drugs, a Firearm and AmmunitionRead the Press Release
PITTSBURGH - One resident of Plum, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, United States Attorney Cindy K. Chung announced today.
The two-count Indictment named Solomon Givens, 52, as the sole defendant.
According to the Indictment, on or about October 12, 2021, Givens possessed with the intent to distribute para-fluorofentanyl, fentanyl, methamphetamine hydrochloride, cocaine, and crack cocaine. The Indictment further alleges that Givens possessed a firearm and ammunition. His prior felony convictions make it unlawful for him to possess a firearm and ammunition.
The law provides for a maximum total sentence of not less than ten years to a maximum of life in prison, a fine of $20,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendants.
Assistant United States Attorney Michael R. Ball is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Allegheny County District Attorney’s Narcotics Enforcement Team conducted the investigation leading to the Indictment in this case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice's violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Pleads Guilty to Stealing Nearly $1 Million in PPP FundsRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Devron Brown, 50, formerly of Philadelphia, PA, pleaded guilty before United States District Court Judge Chad F. Kenney for his involvement in a scheme to unlawfully obtain and misuse loan proceeds offered through the federal Paycheck Protection Program (“PPP”).
In June 2021, the defendant was indicted on eleven felony counts: two counts of bank fraud and attempted bank fraud, and nine counts of money laundering for fraudulently obtaining approximately $937,500 in PPP loan proceeds by making false representations regarding his alleged construction business, Just Us Construction, Inc. Brown made multiple false characterizations about the business, including the number of employees, the wages paid to them, the payroll taxes paid on those wages, and the intended use of the PPP loan proceeds. Brown then used those PPP loan proceeds for personal and unauthorized purchases, including a new residential property in Florida, a motorcycle, an all-terrain vehicle, a luxury automobile, and diamond jewelry. The defendant also caused a second fraudulent PPP loan application to be submitted for approximately the same amount in early 2021, but that application was denied. Following his arrest on the indicted charges, Brown failed to appear in court as required and absconded as a fugitive, in violation of the terms of his pretrial release. He was apprehended by authorities and returned to the Eastern District of Pennsylvania earlier this year to face the charges against him.
“Paycheck Protection Program funds are intended to help American small-businesses continue paying their employees, even if revenues have dropped dramatically due to the pandemic,” said U.S. Attorney Williams. “Thieves who attempt to take these funds are taking advantage of others’ misfortune – ripping them off while also ripping off all taxpayers who fund the program. Here, the defendant fraudulently obtained nearly $1 million in funds that could have helped struggling businesses and individuals, and instead spent the money on indulgences for himself.”
The case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency, Office of the Inspector General, with assistance from the United States Marshals Service, and is being prosecuted by Assistant United States Attorney Kathryn Deal.
Philadelphia Felon Pleads Guilty to Illegally Possessing a Firearm Following Incident on I-76Read the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Bernard Giddings, 26, of Philadelphia, PA, pleaded guilty before United States District Court Judge Michael M. Baylson to illegally possessing a firearm as a felon following an incident on a state highway earlier this year.
On March 4, 2021, Pennsylvania State Police responded to an incident that took place on Interstate-76 at approximately 2:30 p.m. Following leads developed in the investigation, PSP investigators obtained a search warrant for the Giddings’ residence in Philadelphia. Upon execution of the search warrant, Troopers recovered a loaded semi-automatic firearm and an extended magazine under the bed where Giddings was sleeping. The defendant ultimately admitted to possessing the gun, and forensic testing found his DNA on the weapon as well. PSP investigators later determined that the firearm had been reported stolen out of North Carolina in 2019. The defendant was thereafter charged by Indictment with one count of possession of a firearm by a felon.
“The crime of being a felon in possession of a firearm is a serious offense, particularly in Philadelphia where gun violence has reached record-breaking levels this year,” said U.S. Attorney Williams. “Bernard Giddings admitted to illegally possessing a firearm which was recovered by Pennsylvania State Police after investigating a serious incident. Our Office is determined to continue doing everything we can to reduce gun violence in Philadelphia by being ‘All Hands On Deck’ to get criminals like this defendant off the streets for a long time.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Pennsylvania State Police and the Bureau of Alcohol, Tobacco, Firearms & Explosives, and is being prosecuted by Special Assistant United States Attorney Martin Howley.
Penn Hills Man Indicted on Child Sexual Exploitation ChargesRead the Press Release
PITTSBURGH - A suburban Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on charges of Coercion and Enticement and Attempted Coercion and Enticement of a Minor to Engage in Illegal Sexual Activity, United States Attorney Cindy K. Chung announced today.
The four-count Indictment named Kaung Myat Kyaw, age 22, of Pittsburgh, Pennsylvania, (Penn Hills) as the sole defendant.
According to the Indictment, during various periods between August 9, 2020 and March 25, 2021, Kyaw knowingly enticed and coerced four minor victims using the Internet and a cellular telephone service to engage in sexual activity for which any person can be charged with a criminal offense.
The FBI is seeking the public's help in identifying potential victims from across the country that were under the age of 18 who may have been asked by an individual to produce sexually graphic videos or photographs or engage in sexual conduct. Anyone who may have been victimized by Kaung Myat Kyaw or has information relevant to this investigation, please visit fbi.gov/7dc and complete a short questionnaire.
The law provides for a maximum total sentence as to each of the four charges of not less than ten (10) years in prison and up to life, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Kyaw was arrested on November 18, 2021, by agents of the Federal Bureau of Investigation and was detained pending trial.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Fairfax County Police Department, and Wright County, Minnesota Sheriff’s Office 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit
www.justice.gov/psc.Panamanian Intermediary Pleads Guilty for His Role in an International Bribery and Money Laundering SchemeRead the Press Release
BROOKLYN, NY – Earlier today, at the federal courthouse in Brooklyn, Ricardo Alberto Martinelli Linares (Ricardo Martinelli Linares) pleaded guilty to conspiracy to commit money laundering for his role in a massive bribery and money laundering scheme involving Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate. On December 2, 2021, Luis Martinelli Linares, the defendant’s brother, pleaded guilty to engaging in the same scheme. Today’s proceeding was held before United States District Judge Raymond J. Dearie.
Breon Peace, United States Attorney for the Eastern District of New York, Kenneth A. Polite Jr., Assistant Attorney General of the Justice Department’s Criminal Division, and Jay Greenberg, Acting Assistant Director of the Federal Bureau of Investigation’s Criminal Investigative Division (FBI), announced the guilty plea.
“The Martinelli Linares brothers have admitted to establishing secret bank accounts in the names of shell companies in foreign countries and the United States in order to disguise close to $30 million in Odebrecht’s bribe payments to one of their close relatives, a high-ranking public official in Panama,” stated United States Attorney Peace. “Through the tenacious efforts of the Department of Justice, this Office and our law enforcement partners, the defendants have now been held to account for their corrupt schemes.”
“Ricardo and Luis Martinelli Linares played integral roles in the corrupt scheme to funnel Odebrecht bribes to a high-ranking Panamanian government official,” stated Assistant Attorney General Polite. “They used the U.S. financial system to further their scheme, took steps to create shell company accounts at offshore banks to try to evade responsibility, and used some of the bribe proceeds for their personal benefit. The guilty pleas of Ricardo Martinelli Linares and Luis Martinelli Linares demonstrate that the Department of Justice remains committed to combating corruption at home and abroad. The Criminal Division will work with its law enforcement partners around the globe to hold individuals who use our financial system to promote corruption and launder illicit funds accountable.”
“Today’s guilty plea demonstrates the FBI’s commitment to working with our law enforcement partners around the world to bring justice to those engaged in international corruption,” stated FBI Acting Assistant Director Greenberg. “The Martinelli Linares brothers’ actions not only violated the law, but they also damaged public trust. The FBI will continue to aggressively pursue public officials and their co-conspirators who engage in this type of corrupt scheme.”
The Odebrecht scheme involved the payment of more than $700 million in bribes to government officials, public servants, political parties, and others in Panama and other countries around the world to obtain and retain business for the company. On December 21, 2016, Odebrecht pleaded guilty in the Eastern District of New York to a criminal information charging it with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act for its involvement in the bribery and money laundering scheme.
At the plea hearing, Ricardo Martinelli Linares admitted that he agreed with his brother, Luis Alberto Martinelli Linares (Luis Martinelli Linares), and others to establish offshore bank accounts in the names of shell companies to receive and disguise over $28 million in bribe proceeds from Odebrecht for the benefit of his close relative, a high-ranking public official in Panama. To advance the scheme, Ricardo Martinelli Linares admitted that he agreed with others to cause the wiring of the Odebrecht bribe funds into and out of the United States.
Ricardo Martinelli Linares and Luis Martinelli Linares were initially arrested at el Aeropuerto Internacional la Aurora in Guatemala on July 6, 2020, pursuant to a provisional arrest request from the United States as they were attempting to depart Guatemala on a private plane. The defendants were charged on February 4, 2021, in an indictment in connection with this bribery and money laundering scheme. Luis Martinelli Linares was extradited from Guatemala to the United States on November 15, 2021, and pleaded guilty to conspiracy to commit money laundering for his role in the scheme on December 2, 2021. Ricardo Martinelli Linares was extradited from Guatemala to the United States on December 10, 2021.
The Department of Justice commended and thanked the Government of Guatemala for its assistance in the extradition of both Ricardo Martinelli Linares and Luis Martinelli Linares to the United States. The Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of both Ricardo Martinelli Linares and Luis Martinelli Linares. The Brazilian Ministerio Publico Federal, Departamento de Polícia Federal, the Federal Office of Justice in Switzerland, law enforcement authorities in Guatemala including the Public Ministry of Guatemala and Specialized Unit for International Affairs, and law enforcement authorities in El Salvador also provided significant cooperation.
The case is being prosecuted by Assistant United States Attorney Alixandra Smith of the Office’s Business and Securities Fraud Section, Trial Attorney Michael Culhane Harper of the Criminal Division’s Fraud Section, and Trial Attorneys Barbara Levy and Michael Redmann of the Criminal Division’s Money Laundering and Asset Recovery Section. Assistant United States Attorney Laura Mantell of the Office’s Civil Division is handling forfeiture matters. The FBI’s International Corruption Unit in New York is investigating this case.
The Defendants:
LUIS ENRIQUE MARTINELLI LINARES
Age: 39
Panama City, PanamaRICARDO ALBERTO MARTINELLI LINARES
Age: 42
Panama City, PanamaE.D.N.Y. Docket No. 21-CR-65 (RJD)
Panamanian Intermediary Extradited to the United States Pleads Guilty to International Bribery and Money Laundering SchemeRead the Press Release
Ricardo Alberto Martinelli Linares (Ricardo Martinelli Linares), 42, a citizen of Panama and Italy, pleaded guilty today in the Eastern District of New York before U.S. District Judge Raymond J. Dearie for laundering $28 million in a massive bribery and money laundering scheme involving Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate.
Ricardo Martinelli Linares was extradited to the United States from Guatemala on Dec. 10. On Dec. 2, his co-defendant and brother, Luis Enrique Martinelli Linares (Luis Martinelli Linares), who also was extradited to the United States, pleaded guilty in connection with the same scheme.
“Ricardo and Luis Martinelli Linares played integral roles in the corrupt scheme to funnel Odebrecht bribes to a high-ranking Panamanian government official,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “They used the U.S. financial system to further their scheme, took steps to create shell company accounts at offshore banks to try to evade responsibility, and used some of the bribe proceeds for their personal benefit. The guilty pleas of Ricardo Martinelli Linares and Luis Martinelli Linares demonstrate that the Department of Justice remains committed to combating corruption at home and abroad. The Criminal Division will work with its law enforcement partners around the globe to hold individuals who use our financial system to promote corruption and launder illicit funds accountable.”
According to court documents, Ricardo Martinelli Linares admitted that he conspired with his brother, Luis Martinelli Linares, and others to establish offshore bank accounts in the names of shell companies to receive and disguise over $28 million in bribe proceeds from Odebrecht for the benefit of his close relative, a high-ranking public official in Panama. These funds were wired into, and out of, the United States.
“The Martinelli Linares brothers have admitted to establishing secret bank accounts in the names of shell companies in foreign countries and the United States in order to disguise close to $30 million in Odebrecht’s bribe payments to one of their close relatives, a high-ranking public official in Panama,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Through the tenacious efforts of the Department of Justice, this Office and our law enforcement partners, the defendants have now been held to account for their corrupt schemes.”
According to court documents, Odebrecht paid more than $700 million in bribes to government officials, public servants, political parties, and others in Panama and other countries to obtain and retain business for the company. On Dec. 21, 2016, Odebrecht pleaded guilty in the Eastern District of New York to a criminal information charging it with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) for its involvement in the bribery and money laundering scheme.
“Today’s guilty plea demonstrates the FBI’s commitment to working with our law enforcement partners around the world to bring justice to those engaged in international corruption,” said Acting Assistant Director Jay Greenberg of the FBI’s Criminal Investigative Division. “The Martinelli Linares brothers’ actions not only violated the law, but they also damaged public trust. The FBI will continue to aggressively pursue public officials and their co-conspirators who engage in this type of corrupt scheme.”
Ricardo Martinelli Linares pleaded guilty to one count of conspiracy to commit money laundering, and agreed to a forfeiture amount of approximately $18.9 million. He is scheduled to be sentenced on May 13, 2022, and faces a maximum penalty of 20 years in prison. U.S. District Judge Dearie will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Department of Justice commended and thanked the Government of Guatemala for its assistance in the extradition of both Ricardo Martinelli Linares and Luis Martinelli Linares to the United States. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of both Ricardo Martinelli Linares and Luis Martinelli Linares. The Brazilian Ministerio Publico Federal, Departamento de Polícia Federal, the Federal Office of Justice in Switzerland, law enforcement authorities in Guatemala including the Public Ministry of Guatemala, Specialized Unit for International Affairs, and law enforcement authorities in El Salvador also provided significant cooperation.
The FBI’s International Corruption Unit in New York is investigating this case, and the U.S. Drug Enforcement Administration (DEA) conducted the transport of Ricardo Martinelli Linares from Guatemala to the United States.
Trial Attorney Michael Culhane Harper of the Criminal Division’s Fraud Section, Trial Attorneys Barbara Levy and Michael Redmann of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), and Assistant U.S. Attorney Alixandra E. Smith of the U.S. Attorney’s Office for the Eastern District of New York are prosecuting the case. Assistant U.S. Attorney Laura Mantell of U.S. Attorney’s Office for the Eastern District of New York’s Civil Division is handling forfeiture matters.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
The Kleptocracy Asset Recovery Initiative in MLARS was formed to prosecute money launderers and forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by the corruption and abuse of office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
Oswego County Woman Sentenced for Drug Trafficking OffensesRead the Press Release
SYRACUSE, NEW YORK - Alisha Obey, 35, of Fulton, New York, was sentenced today to 57 months in prison for unlawfully possessing with the intent to distribute the synthetic drug eutylone, a Schedule I controlled substance.
The announcement was made by United States Attorney Carla B. Freedman and Matthew J. Scarpino, Acting Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of her prior guilty plea, Obey admitted that on July 14, 2019, November 8, 2019, and December 3, 2019, she possessed eutylone, which she intended to distribute to customers throughout Oswego County. Eutylone is a synthetic cathinone and has pharmacological effects on the central nervous system similar to other Schedule I or II substances such as methylone, pentylone, cocaine, methamphetamine, and MDMA.
Senior United States District Judge Frederick J. Scullin Jr. also imposed a three-year term of supervised release, which will begin after Obey is released from prison.
The case was investigated by Homeland Security Investigations (HSI), the U.S. Internal Revenue Service-Criminal Investigation (IRS-CI), and the Oswego County Drug Task Force, comprised of Special Agents of HSI, members of the City of Oswego Police Department, the City of Fulton Police Department, the Oswego County Sheriff’s Office, Investigators from the Oswego County District Attorney’s Office, the SUNY Oswego Police Department, and Agents of the U.S. Border Patrol. The case was prosecuted by Special Assistant United States Attorney Adrian LaRochelle.
Organized Crime Drug Enforcement Task Force Investigation Leads to 30 Years in Prison for Shreveport ManRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that a Shreveport man was sentenced today by United States District Judge Elizabeth E. Foote for his involvement in a drug trafficking conspiracy.
Demetrius D. Loston, 39, of Shreveport, Louisiana, was sentenced to 360 months (30 years) in prison, followed by 5 years of supervised release. Loston pleaded guilty August 19, 2021 to conspiracy to distribute and possess with intent to distribute methamphetamine.
In July 2020, agents with the U.S. Drug Enforcement Administration (DEA) began an investigation into drug trafficking activities in the Cedar Grove area after receiving information that Loston was distributing large amounts of methamphetamine in the Shreveport area. This Organized Crime Drug Enforcement Task Force (OCDETF) investigation was named “Operation Lost and Found” and resulted in federal indictments against nine defendants for conspiring together to distribute and possess with intent to distribute methamphetamine. During their investigation, agents were able to intercept multiple phone calls between Loston and other co-defendants, wherein they communicated about buying and selling large amounts of methamphetamine for profit. Loston has prior felony convictions for possession with intent to distribute Schedule II controlled substances in 2000, possession of a Schedule II controlled substances in 2005, possession of a firearm by a convicted felon in 2014, and possession with intent to distribute Schedule II controlled substances in 2018.
The investigation was conducted by the DEA, ATF, and Caddo Parish Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney J. Aaron Crawford. This effort is part of an ongoing Organized Crime Drug Enforcement Task Force (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.
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Ohio Man Sentenced to 10 Years for Coercing Minor to Send Him Sexually Explicit Videos, Posting Them on TikTokRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that BRIAN GRINNELL, 36, of Lakewood, Ohio, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 121 months of imprisonment, followed by 15 years of supervised release, for posing as a teenage girl on social media, coercing a minor female to send him sexually explicit photos and videos of herself, and, after threatening the victim, posting some of those videos on TikTok.
According to court documents and statements made in court, in March 2020, Grinnell posed as a 15-year-old girl and met a female, who at the time was under the age of 12, on Omegle, an online chat website and mobile application that allows users to interact with strangers. Shortly thereafter, he began communicating with the minor victim on Snapchat. Grinnell told the minor victim to take sexually explicit photos and videos of herself and send them to Grinnell over Snapchat. After the minor victim began to feel threatened by Grinnell, she unfriended and blocked Grinnell’s account.
Grinnell subsequently contacted friends of the minor victim on TikTok and stated that unless the minor victim got in touch with him, he would post a video of the minor victim naked on TikTok. Grinnell then posted sexually explicit videos of the minor victim on TikTok. When a friend of the minor victim, who is also a minor, begged Grinnell not to post additional videos of the minor victim, Grinnell stated “I want a video of you begging me to not put them up. And you have to be topless in the video. If you don’t want any more of your friend stuff going out.” After the friend told Grinnell that they would call the police, Grinnell responded “How are they gonna find me?” Grinnell then proceeded to post another video of the minor victim on TikTok.
Grinnell subsequently shared additional videos of the minor victim with undercover officers, and bragged about how many videos he had and how easy it would be for him to get more videos from other minors.
Investigators arrested Grinnell on September 23, 2020, and seized his iPhone and other items. Analysis of the iPhone revealed numerous images and videos of child pornography.
Grinnell has been detained since his arrest on September 23, 2020. On April 19, 2021, he pleaded guilty to one count of distribution of child pornography.
Judge Shea ordered Grinnell to pay a $10,000 special assessment.
This investigation was conducted by the Federal Bureau of Investigation and the New Canaan Police Department, with assistance from the Cuyahoga County (Ohio) Prosecutor’s Office and Cuyahoga County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Tara E. Levens through the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
North Carolina Man Sentenced to 28 Months in Prison for Making Threat Against House Speaker Nancy PelosiRead the Press Release
WASHINGTON – A North Carolina man was sentenced today to 28 months in prison after earlier pleading guilty to a felony charge involving a threat he made to shoot House Speaker Nancy Pelosi.
According to court documents, Cleveland Grover Meredith, Jr., 53, of Hayesville, N.C., traveled from Colorado to Washington D.C. and arrived late in the evening of Jan. 6, 2021, after the riots at the U.S. Capitol had ended. He had planned to arrive in Washington on Jan. 5 and attend various rallies. On Jan. 7, while at a hotel in Washington, D.C., he sent a text message to one of his relatives who was then in Georgia. The text message included a threat directed toward House Speaker Pelosi. The relative contacted Meredith’s mother, who then contacted the FBI.
The FBI located Meredith at a hotel approximately one mile from the U.S. Capitol on Jan. 7, and arrested him. He gave consent to search his phone, truck and trailer, which was physically present at the hotel. The FBI found a 9 mm semi-automatic firearm, an assault-style rifle with a telescopic sight, approximately 2,500 rounds of ammunition, and multiple large-capacity ammunition feeding devices inside the trailer. Meredith has been detained since his arrest.
Meredith pleaded guilty on Sept. 10, 2021, in the District of Columbia to interstate communication of threats. At sentencing, Judge Amy Berman Jackson also ordered that Meredith must serve a period of three years of supervised release, following completion of his prison term.
This case was prosecuted by the U.S. Attorney’s Office for the District of Columbia. It was investigated by the FBI’s Washington Field Office.
In the 11 months since Jan. 6, more than 700 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including over 220 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
New Castle Man Charged with Violating Federal Postal LawsRead the Press Release
PITTSBURGH - One resident of New Castle, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal Postal laws, United States Attorney Cindy K. Chung announced today.
The one-count Indictment named Michael Venable, age 32, as the sole defendant.
According to the Indictment, on March 2, 2021, Venable engaged in theft of mail matter while employed for the United States Postal Service.
The law provides for a maximum total sentence of not more than 5 years in prison, a fine of not more than $250,000, a term of supervised release of not more than three years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brian W. Castello is prosecuting this case on behalf of the government.
The United States Postal Service Office of Inspector General 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.
Moore Man Pleads Guilty to Possessing Child PornographyRead the Press Release
OKLAHOMA CITY – MATTHEW DOUGLAS ARMISTEAD, age 62, of Moore, Oklahoma, pleaded guilty yesterday to possession of material containing child pornography that involved a prepubescent minor.
On December 8, 2021, Mr. Armistead was charged by a superseding information with possessing an external hard drive containing child pornography that involved a prepubescent minor. On July 6, 2021, a federal grand jury sitting in the Western District of Oklahoma returned a one-count Indictment that charged Mr. Armistead with knowing receipt of child pornography.
Yesterday, Mr. Armistead pleaded guilty before U.S. District Judge Patrick Wyrick to the same charge alleged in a Superseding Information. As part of his plea, Mr. Armistead admitted that he possessed an external hard drive containing images of child pornography that involved a prepubescent minor in August 2021.
Mr. Armistead faces up to 20 years in prison, a $250,000 fine, at least five years of supervised release, and a $22,100 special assessment. Sentencing will take place in approximately 90 days. Mr. Armistead will have to register as a sex offender under the Sex Offender Registration and Notification Act.
This case is the result of an investigation by the United States Postal Inspection Service. It is being prosecuted by Assistant U.S. Attorney Bow Bottomly.
This case is part of Project Safe Childhood (PSC), a nationwide initiative by the Department of Justice (DOJ) to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the DOJ Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about PSC, please visit www.justice.gov/psc.
Reference is made to court filings for further information.
Monsanto Successor Companies Agree to Clean up Remaining Surface Contamination at Sauget Superfund Sites under Federal SettlementRead the Press Release
Solutia Inc. and Pharmacia LLC, successors to Monsanto Company, will complete the cleanup of four former landfills and waste lagoons in Sauget, Illinois, across the Mississippi River from St. Louis. The settlement will require the companies to reimburse EPA $700,000 in past costs spent at the sites and take responsibility for implementing EPA’s cleanup plan estimated to cost $17.9 million.
“This settlement is one in a series that requires the industry that polluted Sauget and Cahokia, Illinois, to clean up their mess,” said Deputy Assistant Attorney General Bruce S. Gelber of the Justice Department’s Environment and Natural Resources Division. “This settlement demonstrates the Justice Department’s and EPA’s continuing efforts, together with our state partners, to ensure that polluters, not the American public, pay for the investigation and cleanup of Superfund sites.”
“For too long, residents in the Metro East area have been overburdened by legacy sources of pollution,” said Administrator Debra Shore of EPA’s Region 5. “Today’s settlement is the result of years of EPA’s efforts to investigate the extent and sources of soil and surface water contamination in the four former landfills that make up Sauget Area 2, and to hold accountable those who placed it there.”
Under the settlement, Solutia and Pharmacia will be required to implement the remedy selected by EPA for over 270 acres designated as Sauget Area 2 Sites O, Q, R and S. The sites were used by area industry to dispose of hazardous and other wastes throughout much of the 20th century. The hazardous waste includes toxic substances and known carcinogens, including PCBs, dioxin, lead, cadmium, benzene and chlorobenzene. Although the industrial area is not readily accessible to the public, the remedial actions required under this settlement will prevent exposure to these harmful contaminants for workers, anglers or others who gain access to the sites.
The cleanup requires placing engineered caps over identified waste areas, conducting vapor intrusion mitigation and controlling access to the sites. This is only the latest in various lawsuits and settlements involving the cleanup of these former landfills dating back 15 years in which Solutia and Pharmacia have conducted extensive investigations, paid for the removal of hazardous wastes and installed a slurry wall to prevent contaminated groundwater from leaching into the nearby Mississippi River.
The consent decree, lodged in the U.S. District Court for the Southern District of Illinois, is subject to a 30-day public comment period and final court approval. The consent decree will be available for viewineg at https://www.justice.gov/enrd/consent-decrees.
Mishawaka, Indiana Man Sentenced to 15 Years in PrisonRead the Press Release
FORT WAYNE – Stephen Jacob Lee Johnson, 49 years old, of Mishawaka, Indiana, was sentenced by United States District Court Judge Holly A. Brady after pleading guilty to possession with intent to distribute 50 grams or more of methamphetamine, announced United States Attorney Clifford D. Johnson.
Johnson was sentenced to 180 months in prison followed by 10 years of supervised release.
According to documents in this case, on October 5, 2019, Officers in LaGrange, Indiana attempted to conduct a traffic stop on a motorcycle driven by Johnson. However, Johnson led the Officers on a high-speed chase at speeds over 100 miles per hour before crashing his motorcycle over an embankment. In a search incident to arrest, Officers found a one-pound package of methamphetamine in Johnson’s coat pocket. At the time of this incident, Johnson had a prior conviction for Robbery, a serious violent felony.
This case was investigated by the Drug Enforcement Administration with the assistance of the LaGrange Police Department and the LaGrange County Sheriff’s Department. The case was prosecuted by Assistant United States Attorneys Sarah E. Nokes and Stacey Speith.
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Minneapolis Man Sentenced to 60 Months in Prison for CyberstalkingRead the Press Release
ST. PAUL, Minn. – A Minneapolis man was sentenced today to 60 months in prison followed by three years of supervised release for cyberstalking, announced Acting United States Attorney Charles J. Kovats.
According to court documents, from 2014 through 2021, Jeffrey Colin Purdy, 30 harassed, intimidated, and threatened Victim A after she declined his romantic advances and asked him to stop contacting her. Specifically, on September 15, 2017, the Mankato Department of Public Safety received a complaint from an individual stating that she had been receiving harassing emails from Purdy, a former classmate from Minnesota State University, Mankato (“Mankato State”). While attending Mankato State, the victim declined repeated romantic advances from Purdy and eventually blocked Purdy from her cellular telephone and social media accounts. From August 30, 2017, through February 21, 2020, Purdy used Mankato State’s Silent Witness Report, an anonymous incident reporting tool, to make frequent and violent threats against the victim. An IP address used to make one of the Silent Witness Reports was traced back to Purdy.
Purdy pleaded guilty on August 24, 2020, to one count of cyberstalking. He was sentenced today by U.S. District Court Judge Susan Richard Nelson.
This case is the result of an investigation conducted by the FBI and the Mankato Department of Public Safety, with assistance from the Blue Earth County Attorney’s Office.
Assistant U.S. Attorney Emily A. Polachek prosecuted the case.
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Mexican National Found Guilty of Transporting Undocumented Noncitizens Near Van HornRead the Press Release
PECOS – Today a federal jury convicted Pedro Ramirez-Urbina, 41, a Mexican national on one count of conspiracy to transport illegal aliens and one count of transportation of illegal aliens in violation of Title 8, United States Code, Section 1324.
According to court documents and evidence presented at trial, on June 27, 2021, U.S. Border Patrol agents from the Van Horn Border Patrol Station responded to a call from a concerned citizen about a deceased male found on the side of the road. Agents located the decedent along with another male waiting beside the body. Both undocumented noncitizens (UNCs) came from Mexico.
Approximately an hour later, another concerned citizen alerted U.S. Border Patrol agents to seven males walking north on Chispa Road near Needle Peak. They were arrested and transported to Van Horn Border Patrol Station for processing where agents determined all UNCs, including the decedent, were part of a group being smuggled into the U.S. from Mexico. Ramirez was identified as the foot guide in charge of the group.
Sentencing is scheduled for March 29, 2022. Ramirez has remained in federal custody since his arrest on June 27, 2021
U.S. Attorney Ashley C. Hoff of the Western District of Texas and Homeland Security Investigations (HSI) Acting Special Agent in Charge Taekuk Cho made the announcement.
HSI is investigating the case.
Assistant U.S. Attorney Lance Kennedy is prosecuting the case.
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Methamphetamine Courier Sentenced to Time in Federal PrisonRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that Juan Francisco Salas, 45, of Houston, Texas, has been sentenced by Chief United States District Judge S. Maurice Hicks, Jr. on drug trafficking charges.
Salas was sentenced to 76 months (6 years, 4 months) in prison, followed by 3 years of supervised release, for possession with intent to distribute methamphetamine. On December 5, 2019, a trooper with the Louisiana State Police conducted a traffic stop on a vehicle being driven by Salas. After a period of questioning, the trooper searched Salas’ vehicle and discovered approximately ten kilograms of methamphetamine inside a box in the rear cargo area. Salas admitted that he knew the illegal narcotics were in the trunk. The U.S. Drug Enforcement Administration’s Laboratory tested the seized methamphetamine and confirmed that the amount seized totaled 9,205 grams.
This case was investigated by the DEA and Louisiana State Police and was prosecuted by Assistant U.S. Attorney Leon H. Whitten.
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Main Defendant in 32 Defendant Drug Distribution Case involving Nortenos Gang sentenced to Fourteen Years in PrisonRead the Press Release
SALT LAKE CITY – Joseph “Norte Joe” Gomez, the lead defendant in a large-scale 32 defendant federal indictment, was sentenced last Tuesday by a U.S. District Court Judge in the District of Utah. Judge Tena Campbell sentenced Gomez to serve 14 years in federal prison with five years of supervised release to follow his incarceration after previously pleading guilty to conspiracy to distribute methamphetamine and conspiracy to launder money. All thirty-one members and associates of the Norteños street gang responsible for distributing drugs around the Salt Lake City area have pleaded guilty and four lower-level defendants have yet to be sentenced. Most of the defendants in this case have received sentences between 72 and 96 months.
Acting U.S. Attorney for Utah Andrea T. Martinez, DEA District Agent in Charge Jay Tinkler, ATF Assistant Special Agent in Charge Brad Engelbert, IRS-Criminal Investigation Special Agent in Charge Darren Lian, and Salt Lake County Sheriff Rosie Rivera announced the sentencing today.
As outlined in the complaint filed in February of 2019, gang investigators documented Utah’s first Norteños group in the mid-1980s, followed by several other sub-sets in the early 1990s. Unaligned or independent street gangs began associating under the Norteños umbrella in the early 2000s. According to the complaint, the Salt Lake Valley has approximately 10 active Norteños sub-sets, with approximately 100-150 active Norteños gang members. Norteños in the Salt Lake Valley have been responsible for drive-by shootings, aggravated assaults, robberies, and homicides.
The Salt Lake Area Metro Gang Unit (MGU) and the ATF opened a proactive investigation that targeted drug and firearms trafficking activities of Salt Lake City gang members, specifically looking at Norteños. The DEA and IRS-CID joined the investigation in August in 2018. Evidence gathered during the investigation shows the defendants named in the charges engaged in a typical drug-trafficking scheme, to which all the defendants pleaded guilty. The complaint alleges they were involved in transporting drugs from Mexico into the United States; moving the drugs to the destination area of Salt Lake City; distributing the drugs to re-distributors who distributed the drugs through the community; and collecting and transporting drug proceeds.
During the investigation, agents learned that Joe Gomez aka “Norte Joe” and Denny Kandt aka “Casper” were working with Mexican drug cartel members to distribute drugs that originated from Mexico in and around the Salt Lake Valley. The investigation demonstrated that Gomez received shipments of methamphetamine and heroin sent by Mexico-based drug traffickers and a Los Angeles-based drug trafficker. Gomez and Kandt supplied drugs to various Salt Lake City-based sub-distributors. In the course of a several-months long and labor-intensive investigation, agents seized more than 30 pounds of methamphetamine, 19 firearms, and more than $20,000 in bulk cash. Agents demonstrated during the investigation that this Nortenos group trafficked approximately 20-30 pounds of methamphetamine each month in the District of Utah. Federal prosecutors ultimately obtained indictments for 38 defendants (in seven separate indictments, with the main indictment naming Joe Gomez, Denny Kandt, and 30 other defendants).“The United States Attorney’s Office remains committed to the federal prosecution of gang members and narcotics dealers who fuel the violent crime epidemic in the Salt Lake Valley,” said Acting United States Attorney Andrea T. Martinez. “This prosecution highlights the high-level narcotics distribution networks that target our state and our communities, along with the law enforcement partnerships that enable us to dismantle drug trafficking organizations from the cartel level down to street dealers.”
“This is one of many investigations that demonstrate the collaboration and partnership with County, State and Federal agencies. The Metro Gang Unit plays an integral part of these types of investigations. The Unified Police Department under the direction of the Sheriff is committed to addressing and abating organized drug distribution efforts and violent crime that victimize residents across Salt Lake County.”
“Through a sophisticated and transnational crime-for-profit scheme; gang members brought illegal guns, drugs and violence to our streets.” said Special Agent in Charge David Booth. “This multi-year investigation is proof there are no boundaries of place or time in our pursuit to stop violent crime. We are grateful for the tireless efforts of the U.S. Attorney’s Office in their successful prosecution which disrupted and dismantled the criminal enterprise.”
“Being able to effectively dismantle this criminal organization, to include it’s leaders, is a testament to the hard work and dedication of the entire investigative team. It is a priority of the DEA, in conjunction with our partners, to target these types of organizations and reduce drug-related violence that diminishes the quality of life of our communities.”
“The IRS is proud to have our agent work so closely and successfully with our Federal, State, and local law enforcement partners in this case,” Special Agent in Charge Darren Lian stated. “Our agent used their specialized skillset to trace the money internationally and was able to show these funds used in furtherance of the scheme to traffic drugs in the United States; because of this work those who were responsible for financing this operation were able to be held accountable.”
Assistant United States Attorneys Stephen L. Nelson, Stewart M. Young and Thaddeus J. May prosecuted the cases arising from the investigation. Special Agents from the ATF, DEA, and IRS Criminal Investigations conducted the investigation along with investigators from the Unified Police Department’s Metro Gang Unit.
Louisville Couple Indicted for Aiding in the Preparation of False Tax ReturnsRead the Press Release
LOUISVILLE – On December 7, 2021, a federal grand jury in Louisville returned an indictment charging a Louisville couple, Krlos Hidalgo and Esther Baldeon, with aiding in the preparation of false tax returns.
According to the indictment, it is alleged that both Esther Baldeon, age 39, and Hidalgo, age 38, assisted in the preparation of false tax returns that contained false dependents. The purpose of the false dependents was to obtain Additional Child Tax Credits for the taxpayers. It is alleged that both Baldeon and Hidalgo knew that the taxpayers were not entitled to the Additional Child Tax Credits.
Baldeon is charged with five counts of violating Title 26, United States Code, Section 7206(2). Hidalgo is charged with four counts of violating Title 26, United States Code, Section 7206(2). On December 13, 2021, the defendants were arraigned on the charges before U.S. Magistrate Judge Regina S. Edwards of the U.S. District Court for the Western District of Kentucky. If convicted, Baldeon faces a maximum penalty of 15 years in prison, and Hidalgo faces a maximum penalty of 12 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Bryant Jackson, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office made the announcement.
The Internal Revenue Service Criminal Investigation is investigating the case.
Assistant U.S. Attorney Amanda E. Gregory is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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