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20 January 2022
Howard Man Charged with Production of Child PornographyRead the Press Release
United States Attorney Dennis R. Holmes announced that a Howard, South Dakota, man has been indicted by a federal grand jury for Production of Child Pornography.
Lee James Thames, age 26, was indicted on January 4, 2022. He appeared before U.S. Magistrate Judge Veronica L. Duffy on January 11, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 30 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between on or about March 16, 2021, and April 29, 2021, Thames knowingly employed, used, persuaded, induced, enticed, and coerced a minor to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct, knowing that such depictions would be transported in interstate or foreign commerce or mailed, and such visual depictions would be produced using materials that had been mailed, shipped, and transported in interstate and foreign commerce, including by computer.
The charge is merely an accusation and Thames is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Division of Criminal Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Thames was remanded to the custody of the U.S. Marshals Service pending trial which has been set for March 22, 2022.
Hollywood Executive Pleads Guilty to Defrauding New York Investment Fund of over $30 MillionRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that WILLIAM SADLEIR pled guilty to two counts of wire fraud in connection with his participation in two schemes relating to investments made by a New York-based investment fund (the “Fund”) in Aviron Pictures, LLC and its affiliated entities (collectively, “Aviron”). SADLEIR is scheduled for sentencing on May 10, 2022, at 10:30 a.m., by U.S. District Judge Paul A. Engelmayer, who presided over yesterday’s plea.
U.S. Attorney Damian Williams said: “William Sadleir used his talent for selling stories to con a New York investment fund out of over $30 million using a fake company, fake documents, and even a fake identity. In a brazen plot that could be ripped from one of the films he distributed, Sadleir even made up a character that he named ‘Amanda Stevens,’ and masqueraded as her in an effort to get away with his fraud. We called a wrap on Sadleir’s scheming, and he now faces significant time in federal prison.”
According to the Complaint, Indictment, and other court filings:
The Fund is a publicly traded, closed-end investment fund. Shares in the Fund trade on the New York Stock Exchange. As of in or about December 2019, the Fund had approximately $649.1 million in assets.
WILLIAM SADLEIR was the chairman and chief executive officer of Aviron, and oversaw its operations from in or about 2015 until in or about December 2019. Aviron participated in the distribution of a number of films in the United States, including My All American (2015), Kidnap (2017), The Strangers: Prey at Night (2018), A Private War (2018), Destination Wedding (2018), Serenity (2019), and After (2019).
SADLEIR engaged in two fraudulent schemes relating to an approximately $75 million investment made by the Fund in Aviron.
In one of the schemes (the “Advertising Scheme”), SADLEIR misappropriated millions of dollars in funds from Aviron that had been invested in Aviron by the Fund. SADLEIR represented to the Fund that this money had been invested by Aviron in pre-paid media credits with the advertising placement company MediaCom Worldwide (“MediaCom”), which is a subsidiary of the advertising and media agency GroupM Worldwide. Instead, using the bank account for a sham entity he had created, SADLEIR illicitly transferred out of Aviron over $25 million of those funds. Specifically, SADLEIR created a sham New York-based company called GroupM Media Services, LLC (the “Sham GroupM LLC”) designed to appear to be the legitimate entity, GroupM Worldwide, and a corresponding bank account in the name of that sham entity. SADLEIR then used a significant portion of those illicitly transferred funds for his personal benefit, including to purchase a private residence in Beverly Hills for approximately $14 million. SADLEIR then falsely represented to the Fund that Aviron had purchased an approximately $27 million balance in pre-paid media credits with MediaCom that were available to promote future Aviron films, and pledged a portion of those credits to the Fund as collateral for additional loans, when in fact the claimed credits did not exist. As part of these false representations, SADLEIR also created a fake identity of a purported New York-based female employee of the Sham GroupM LLC named “Amanda Stevens” who corresponded with a representative of the Fund, assuring the Fund that Aviron had an approximately $27 million balance in pre-paid media credits with the Sham GroupM LLC. But SADLEIR himself posed as Amanda Stevens when engaging in email exchanges with a representative from the Fund.
In the other scheme (the “UCC Scheme”), SADLEIR engineered the illicit and fraudulent sale and refinancing of assets worth over $3 million that secured the Fund’s loans to Aviron. The Fund had secured its investment in Aviron by, among other means, obtaining UCC liens in 2017 and 2018 on certain intellectual property and other assets relating to Aviron’s films. In 2019, SADLEIR used the forged signature of one of the Fund’s portfolio managers on releases to remove the Fund’s UCC liens on certain of these secured assets. SADLEIR did so in order to sell or refinance the assets without the Fund’s consent, thus depriving the Fund of its collateral on outstanding loans. Aviron ultimately defaulted on those loans.
* * *
SADLEIR, 67, of Beverly Hills, California, pled guilty to two counts of wire fraud, each of which carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the work of the Federal Bureau of Investigation. He also thanked the Securities and Exchange Commission for its cooperation and assistance in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jared Lenow and Elizabeth Hanft are in charge of the prosecution.
High-Speed Motorcycle Chase on I-75 that Resulted in Two Injured Deputies Leads to Pair Pleading Guilty to Distributing MethRead the Press Release
MACON, Ga. – Co-defendants who led law enforcement on a motorcycle chase on I-75 at speeds of up to 150 mph, resulting in two deputies being struck and injured by a passing car during the pair’s arrest, have pleaded guilty to distributing nearly three kilograms of methamphetamine.
John Terrell Johnson, 34, of Jackson, Georgia, pleaded guilty to possession with intent to distribute more than five grams of methamphetamine on Monday, Jan. 10 and Tosha Danielle Kidd, 31, of Conyers, Georgia, pleaded guilty to possession with intent to distribute methamphetamine on Tuesday, Jan. 18, before U.S. District Judge Tilman “Tripp” Self. Johnson faces a mandatory minimum of five years up to a maximum 40 years in prison to be followed by at least four years of supervised release and a maximum $5,000,000 fine. Kidd faces a maximum 20 years in prison to be followed by at least three years of supervised release and a maximum $1,000,000 fine. Johnson and Kidd are scheduled for sentencing on April 5, 2022. There is no parole in the federal system.
“John Johnson’s poor decision to lead officers on a perilous chase, coupled with Tosha Kidd’s choice to flee on foot after two deputies were injured in the line of duty, endangered the public and easily could have cost lives, including their own,” said U.S. Attorney Peter D. Leary. “Thanks to the bravery displayed by the Monroe County Sheriff’s deputies and a concerned citizen, Johnson and Kidd were caught and will face the consequences of their decision to distribute methamphetamine in Middle Georgia.”
“We appreciate the strong relationship we have with the U.S. Attorney’s Office as we work together to make our community safer,” said Monroe County Sheriff Brad Freeman.
According to court documents, on Dec. 12, 2020, at nearly 9:00 p.m., Monroe County Sheriff’s Office deputies noticed a motorcycle speeding southbound on I-75 near Forsyth. The motorcycle was driven by Johnson, with Kidd riding as the passenger and carrying a camouflage backpack. The pair fled when officers attempted to pull them over, reaching speeds of up to 150 mph while weaving through traffic and using the emergency shoulder to pass other motorists. Eventually, with the help of a civilian motorist, law enforcement blocked Johnson’s motorcycle and brought it to a halt on the side of I-75. Two of the deputies, focused on subduing Johnson, were injured when a passing motorist accidentally struck their patrol vehicles. Kidd seized the opportunity for escape and fled on foot. As she ran, she dumped the camouflage backpack. She was eventually taken into custody near the site where Johnson’s motorcycle had been stopped, and the backpack was recovered. The backpack contained nearly three kilograms of 99% pure methamphetamine, or 2,935 grams. Johnson, a convicted felon, was illegally carrying a stolen handgun in his pocket and $1,075 in cash. The deputies struck by a car in the line of duty sustained physical injuries requiring treatment at the hospital.
A few months prior to this incident, Johnson was arrested under similar circumstances. On Sept. 29, 2020, Monroe County Sheriff’s deputies spotted Johnson speeding on a motorcycle and attempted to conduct a traffic stop; Johnson fled from officers. Deputies were able to bring Johnson to a stop and found a 9mm semi-automatic pistol secured to his shoulder holster plus 11.944 grams of methamphetamine, a digital scale and two smoking devices in a bag clipped to the motorcycle’s handlebars. Johnson told officers he was a convicted felon who had been selling drugs for a long period of time and had bought numerous guns during that time. Johnson also admitted that fleeing from pursuing officers is “just what you do” when possessing drugs. Johnson has two prior felony convictions in Newton County and Butts County, Georgia.
The case was investigated by DEA with the assistance of the Monroe County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Assistant U.S. Attorney Joy Odom prosecuted the case for the Government.
High Speed Chase in Mono County Results in Drug Trafficking Charges for Nevada WomanRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Elizabeth Marie Acuna, 34, of Sparks, Nevada, charging her with possession with intent to distribute cocaine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Oct. 22, 2021, a law enforcement officer observed Acuna driving over 90 mph on Highway 395, in an unincorporated area of Mono County. The officer initiated a traffic stop by activating his overhead lights. In response, Acuna slowed her speed but did not immediately pull over. Instead, she drove her vehicle over the double yellow lines, driving north in the southbound lanes of the highway, before coming to a stop. Acuna admitted to the officer that she had drugs in the back of her vehicle. A subsequent search located 762.3 grams of cocaine wrapped in two cellophane packages.
At the time of the stop, Acuna was on federal pretrial release on a pending August 2021 drug charge in Oregon.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the California Highway Patrol. Assistant U.S. Attorney Alstyn Bennett is prosecuting the case.
If convicted, Acuna faces a mandatory minimum sentence of five years in prison and a maximum statutory penalty of 40 years in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Harrison Man Sentenced to 40 Years in Prison for Sexual Offenses Against MinorsRead the Press Release
BAY CITY – A Harrison man was sentenced to 480 months (40 years) in federal prison after having pleaded guilty to charges of sexual exploitation of children and for engaging in the sexual exploitation of children while required to register as a sex offender, announced United States Attorney Dawn Ison.
Ison was joined in the announcement by Josh P. Hauxhurst, Acting Special Agent in Charge, Federal Bureau of Investigation, Detroit Division.
Sentenced before United States District Court Judge Thomas L. Ludington was Nathanial Alexander Tessner, 29.
According to court records, Tessner met the 14-year-old victim online and caused her to create sexually explicit images as well as meeting her in person and having sexual contact with her. Tessner also caused the victim to create sexually explicit images of herself with a dog and coerced her to create sexually explicit images of a 3-year-old child. Tessner committed those offenses while he was required to register as a sex offender under federal or other law.
“The actions of this defendant are truly reprehensible,” said US Attorney Ison. “Today’s sentence sends a clear message that we will prosecute individuals who prey on our most vulnerable – our children- to the maximum extent allowed by law. “
“This case demonstrates the commitment of the FBI and our law enforcement partners to protect the children in our communities from recidivist sex offenders like Mr. Tessner,” said Acting Special Agent in Charge Josh P. Hauxhurst of the FBI’s Detroit Field Office. “These are serious crimes that inflict great harm on some of the most vulnerable members of our society and the serious consequences imposed on this defendant are an important signal to would-be offenders that they will be found and brought to justice.”
The case was investigated by the Southeast Michigan Trafficking and Exploitation Crimes Task Force (“SEMTEC”) of the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Christopher Rawsthorne.
Grand Jury - January 2022Read the Press Release
United States Attorney Jan W. Sharp announced the federal Grand Jury for the District of Nebraska has returned 13 unsealed Indictments charging 16 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Torey Lee Benson, age 40, of Norfolk, Nebraska, is charged with possession with intent to distribute 500 grams or more of methamphetamine on or about November 27, 2021. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a five-year term of supervised release, and a $100 special assessment.
* Jarrett Turner Chappelear, age 25, of Fremont, Nebraska, is charged in a two-count Indictment. Count I charges Chappelear with distribution of 50 grams or more of methamphetamine (actual) on or about October 29, 2021. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a five-year term of supervised release, and a $100 special assessment. Count II charges Chappelear with possession of a firearm in furtherance of a drug trafficking crime on or about October 29, 2021. The maximum possible penalty if convicted is 5 years’ imprisonment consecutive to Count I, a $250,000 fine, a five-year term of supervised release, and a $100 special assessment.
* Terry L. Dill, age 38, of Grand Island, Nebraska, is charged with failure to register as a sex offender after traveling in interstate commerce on or about September 30, 2020. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a life term of supervised release, and a $100 special assessment.
* Jose Alfredo Ek-Poot, age 49, of San Francisco, California; Esteban Dejesus Huerta Rocha, age 41, of San Francisco, California; and Ricardo Jiminez-Noveno, age 29, are charged with possession with intent to distribute 500 grams or more of methamphetamine on or about November 4, 2021. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a five-year term of supervised release, and a $100 special assessment
* Nicholas J. Franks, age 44, of Council Bluffs, Iowa, is charged in a three-count Indictment. Count I charges Franks with conspiracy to distribute and possession with intent to distribute 50 grams or more of methamphetamine (actual) on or about July 1, 2021 and continuing to on or about December 8, 2021. The maximum possible penalty if convicted is life imprisonment, a $20,000,000 fine, a ten-year term of supervised release, and a $100 special assessment. Count II charges Franks with distribution of 50 grams or more of methamphetamine (actual) on or about October 27, 2021. The maximum possible penalty if convicted is life imprisonment, a $20,000,000 fine, a ten-year term of supervised release, and a $100 special assessment. Count III charges Franks with possession with intent to distribute 50 grams or more of methamphetamine (actual) on or about December 8, 2021. The maximum possible penalty if convicted is life imprisonment, a $20,000,000 fine, a ten-year term of supervised release, and a $100 special assessment.
* Erin Leigh Gehrig, age 39, of Alma, Nebraska, is charged with possession of a stolen firearm on or about April 13, 2021 and continuing to on or about May 4, 2021. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Melissa Grantski, age 50, of Utica, Nebraska, is charged in a seven-count Indictment. Counts 1-7 charge Grantski with willful failure to pay over tax beginning on or about 2015 and continuing to on or about 2017. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Armando Ibarra, age 48, of Hastings, Nebraska is charged in a four-count Indictment. Count I charges Ibarra with conspiracy to distribute 500 grams or more of methamphetamine on or about August 1, 2019 and continuing to on or about May 26, 2021. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a five-year term of supervised release, and a $100 special assessment. Count II charges Ibarra with aid and abet possession with intent to distribute 500 grams or more of methamphetamine on or about November 15, 2019. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a five-year term of supervised release, and a $100 special assessment. Count III charges Ibarra with distribution of 5 grams or more of methamphetamine (actual) on or about March 30, 2021. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a five-year term of supervised release, and a $100 special assessment. Count IV charges Ibarra with possession with intent to distribute 5 grams or more of methamphetamine (actual) on or about May 19, 2021. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a five-year term of supervised release, and a $100 special assessment.
* Raymond E. McGaugh, age 30, of Omaha, is charged in a two-count Indictment. Count I charges McGaugh with possession with intent to distribute 50 grams or more of methamphetamine (actual) on or about June 27, 2021. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a five-year term of supervised release, and a $100 special assessment. Count II charges McGaugh with possession of a firearm in furtherance of a drug trafficking crime on or about June 27, 2021. The maximum possible penalty if convicted is 5 years’ imprisonment consecutive to Count I, a $250,000 fine, a five-year term of supervised release, and a $100 special assessment
* Marco Antonio Mejia, age 46, of Lincoln, Nebraska, is charged with illegal alien in possession of a firearm on or about August 18, 2021. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Ruben Pena Avila, is charged with illegal reentry after deportation on or about December 28, 2021. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Luis Miguel Rodriguez-Ponce, is charged with illegal reentry after deportation on or about June 21, 2021. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Amy Shepherd, age 42, of Wichita, Kansas, and Johnny Bradford, II, age 50, of Lancaster, California, are charged in a four-count Indictment. Counts 1-4 charge Shepherd and Bradford with wire fraud beginning on or about 2018 and continuing to on or about 2019. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
Fresno Parolee Indicted for Illegal Firearm PossessionRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Desmond Lamar Divine, 20, of Fresno, charging him with being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Nov. 8, 2021, Divine fled from officers when they spoke with him. A gun fell from his pocket as he fled. Divine was on parole at that time, and because of his prior felony convictions, he is prohibited from possessing firearms.
This case is the product of an investigation by the Fresno Police Department, Homeland Security Investigations, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Laura Jean Berger is prosecuting the case.
If convicted, Divine faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Four Indicted in Tulare County-Based International Drugs and Firearms Trafficking RingRead the Press Release
FRESNO, Calif. —Four defendants who were Sureno gang members and associates have been indicted today by a federal grand jury in Fresno, U.S. Attorney Phillip A. Talbert announced.
Jonathan Gallegos, 31, of Ivanhoe; Andres Perez, 19, of Visalia; Jesus Angulo, 33, of Woodlake; and Malachai Serrano, 31, of San Antonio, Texas, have been indicted for distributing methamphetamine (Gallegos and Perez), conspiring to distribute and possess with intent to distribute methamphetamine (Gallegos, Perez, and Serrano), using a firearm during and in relation to a drug trafficking offense (Gallegos, Perez, and Serrano), conspiring to use a firearm during and in relation to a drug trafficking offense (Gallegos, Perez, Serrano), and possessing with intent to distribute cocaine (Gallegos and Angulo).
A team of local, state, and federal law enforcement officers recently partnered in an investigation of the Tulare County Surenos. During the investigation, law enforcement discovered that Gallegos and Angulo were traveling to Southern California and into Mexico to obtain illegal drugs, including kilograms of cocaine. Gallegos and Perez were then shipping kilograms of illegal drugs from the local post office in Ivanhoe to residences associated with Serrano, in San Antonio. Serrano and his associates were then selling those illegal drugs in Texas and using some of the proceeds to purchase firearms. Serrano is a felon and cannot lawfully buy firearms himself. He was directing others in Texas to buy firearms for him. Serrano and his associates then shipped firearms back to Gallegos and Perez in California, as payment for the narcotics they had received. Gallegos planned to sell those firearms to his drug suppliers. Gallegos is also a felon who cannot lawfully possess firearms.
Over 8 kilograms of cocaine, several pounds of marijuana, and more than 20 firearms were seized.
This case is the product of an investigation by the Federal Bureau of Investigation; the U.S. Postal Inspection Service; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Tulare County Sheriff’s Office; the Tulare County Area Regencies Gun Enforcement Team; the Visalia Police Department; the California Department of Justice (Bureau of Investigations), the California Highway Patrol (Special Operations Unit), and the Tulare County District Attorney's Office. Assistant U.S. Attorneys Justin J. Gilio and Antonio J. Pataca are prosecuting the case.
If convicted, all four defendants face a range of maximum sentences, including up to life in prison. Several of the defendants also face a range of mandatory minimum sentences of five to 10 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Former Postal Employee Charged with Unlawfully Opening the MailRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that TYRONE DILLING, age 27, of New Orleans, Louisiana was charged with embezzling the mail in a Bill of Information filed today in the Eastern District of Louisiana.
According to documents filed in federal court, DILLING was employed by the United States Postal Service as a letter carrier in New Orleans when he was apprehended after opening and tampering with the content of mail items he was entrusted to handle for the Postal Service.
The maximum penalty for the offense is five (5) years imprisonment and/or a fine of up to $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim followed by up to three (3) years of supervised release, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Postal Service, Office of the Inspector General in investigating this matter. Assistant United States Attorney Richard R. Pickens, II is in charge of the prosecution.
Former Owner of Illicit Massage Parlor Pleads Guilty to COVID-19 Relief FraudRead the Press Release
BOSTON – The former owner of a massage parlor pleaded guilty today in connection with filing for and obtaining fraudulent pandemic-related loans for her illicit business where workers engaged in commercial sex acts with customers.
Chynna Savath, 56, of Woonsocket, R.I., pleaded guilty to two counts of wire fraud. U.S. District Court Judge Richard G. Stearns scheduled sentencing for May 19, 2022. Savath was charged in September 2021.
Savath is the former owner of Thai Body Work, a massage parlor in Franklin, Mass. In June 2020, Savath submitted fraudulent applications to the Small Business Administration for COVID-19 relief through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) program under the Coronavirus Aid, Relief and Economic Security Act. In the applications, Savath falsely certified that the applicant was not engaged in any illegal activity, despite knowing that her employees at Thai Body Work engaged in prostitution with customers and that she collected a portion of fees paid by each customer. In total, Savath obtained $29,646 in fraudulent payments from the EIDL and PPP loan programs.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
First Assistant United States Attorney Joshua S. Levy; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Ketty Larco Ward, Inspector in Charge of the U.S. Postal Inspection Service; and Boston Police Acting Commissioner Gregory Long made the announcement. Special assistance was provided by the Cambridge, Boston, Franklin and Lexington Police Departments. Assistant U.S. Attorney Elysa Wan of the Criminal Division and Suffolk County Assistant District Attorneys Alyssa Tochka and Luke Goldworm, who were appointed as Special Assistant U.S. Attorneys, are prosecuting the cases.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Former Member of Connecticut Latin Kings Chapter Sentenced for Racketeering ConspiracyRead the Press Release
BOSTON – A former member of the Connecticut Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) was sentenced yesterday on racketeering charges.
Esther Ortiz, a/k/a “Queen India,” 50, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to time served (approximately 72 days in prison) and three years of supervised release. The government recommended a sentence of 21 months in prison. On Oct. 12, 2021, Ortiz pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
Ortiz was a member of the Latin Kings and the Latin Kings’ Regional Crown Council. As Regional Crown Council member, Ortiz advised leadership, heard evidence concerning violations of the manifesto and determined punishment for members who violated the rules of the Latin Kings. One such trial, which took place in March 2019, was captured on video. This trial involved complaints against Angel Roldan, a/k/a “King Big A,” the former second-in-command, or Cacique, of the Latin Kings in Massachusetts, who had reportedly robbed fellow gang members of drugs and failed to repay drug debts owed to the leader of the New Bedford Chapter.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Ortiz is the 42nd defendant to be sentenced in the case in the case. Roldan pleaded guilty and was sentenced in July 2021 to seven years in prison.
The United States Attorney’s Office for the District of Massachusetts; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Commissioner Carol Mici of the Massachusetts Department of Correction made the announcement. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Greenup County Sheriff Indicted for Fraudulent Use of Law Enforcement FundingRead the Press Release
FRANKFORT, KY- A Murfreesboro, Tenn., man, and former Greenup County Sheriff has been indicted for fraud and theft.
Last week, a federal grand jury sitting in Covington returned an indictment charging 68-year-old Keith Cooper with one count of mail fraud and one count of theft of property from a federally funded agency.
The indictment alleges that from early 2013 through March 2017, Cooper fraudulently obtained over $50,000 in cash, by making withdrawals and failing to deposit money into a bank account used for law enforcement funds.
Additionally, the indictment alleges that Cooper directed Greenup County Sheriff’s Office Deputy Sheriffs to purchase ammunition that did not correspond to firearms issued to them for official duty purposes and then relocate multiple boxes of the ammunition to his private residence. The indictment alleges that Cooper unlawfully retained approximately 35,000 rounds of ammunition, which was purchased with approximately $30,000 in public funds. The indictment also alleges that Cooper used a vehicle and fuel purchased with Greenup County funds to take a variety of personal out-of-state trips.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office; and Daniel Cameron, Attorney General of Kentucky, announced the indictment.
The investigation preceding the indictment was conducted by the FBI and the Kentucky Attorney General’s Office, with the cooperation of the Greenup County Sheriff’s Office. The indictment was presented to the grand jury by Assistant U.S. Attorney Andrew Boone.
A datefor Cooper to appear in court in the Eastern District of Kentucky has not yet been scheduled. He faces up to 20 years of imprisonment for mail fraud and 10 years of imprisonment for theft of public funds, and a maximum fine of $250,000 for each count. However, any sentence following a conviction would be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.
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Former Defense Contractor Sentenced to 10 Years for Fraud, Money Laundering & ID TheftRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Craig Klund, 58, Yankton, South Dakota, was sentenced today by U.S. District Judge James D. Peterson to 10 years in federal prison for wire fraud, money laundering, and aggravated identity theft.
Klund, formerly from Chippewa Falls, Wisconsin, pleaded guilty to wire fraud against the U.S. Department of Defense, as well as money laundering by moving in increments over $10,000 the proceeds of his fraud scheme into multiple bank accounts. Judge Peterson imposed a 96-month sentence on each of these counts to run concurrently. Klund also pleaded guilty to aggravated identity theft when he used another’s identity as a nominee owner of one of Klund's defense contracting entities. Judge Peterson imposed a 24-month sentence as to this charge to run consecutive to the concurrent 96-month wire fraud and money laundering sentences. Klund's total prison sentence is 120 months, which will be followed by three years of supervised release. Judge Peterson also ordered Klund to pay $435,822.71 in restitution.
According to the indictment, Klund was a military contractor who supplied electrical parts to the various branches of the U.S. military, including the U.S. Army for the Patriot Missile System and the U.S. Air Force for the F-16 jet fighter. From 2011 through July 17, 2019, Klund executed a scheme to defraud the DoD by obtaining defense contracts under false pretenses.
Klund's fraud scheme included: (1) use of 15 shell corporations to hide his control of entities bidding on DoD contracts; (2) use of multiple aliases; (3) repeated identity theft; (4) collusive bids submitted by multiple Klund entities on the same contract; (5) knowingly shipping nonconforming parts and requesting payment for these parts; (6) signing Federal Acquisition Regulation certificates using fake names; (7) lying to Defense Contract Management Agency (DCMA) inspectors by claiming to be someone other than himself; (8) relocating his business from Wisconsin to South Dakota to evade DCMA inspectors who were questioning his operations in Wisconsin; (9) concealing receipt of DoD proceeds by not reporting these monies on his federal income tax returns; and (10) laundering DoD proceeds by moving the funds between accounts.
Using 15 different shell entities, Klund submitted 5,750 bids and was awarded 1,928 contracts worth $7,468,638. These contracts were for parts for the U.S. Army, Air Force, Navy, and Marine Corps. He was paid $2,905,484 during the fraud scheme.
At today's sentencing, after listening to Klund's allocution, Judge Peterson told Klund he thought Klund was a liar, who lied to the Department of the Defense over a long period of time, and to the judge as well. The judge also noted that Klund was an unusual fraud defendant because Klund had three previous federal felony convictions, two of which were for defense contracting fraud, making his criminal history a very important factor in the judge's sentencing analysis.
Judge Peterson explained that this case involved an extensive fraud scheme that caused significant harm to the government because it was duped into contracting with a two-time convicted defense contracting felon and was receiving parts from someone with whom it did not want to deal. The Court noted that deserving contractors, who played by the rules, were also victimized by Klund's criminal conduct.
In imposing this substantial sentence, Judge Peterson noted the need to protect the public and the U.S. government from a repeated fraudster who is dishonest, and who was supplied defective parts to the military that had the capacity to harm military personnel and the public.
The charges against klung were the result of an investigation conducted by the U.S. Department of Defense - Office of Inspector General, Defense Criminal Investigation Service; General Services Administration - Office of Inspector General; IRS Criminal Investigation; Air Force Office of Special Investigations; Army Criminal Investigation Command, Major Procurement Fraud Unit; and Naval Criminal Investigative Service. Assistant U.S. Attorney Daniel Graber handled the prosecution.
Former Chick-fil-A Employees Sentenced for Scheme to Steal FundsRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced two former Chick-fil-A employees for their roles in a conspiracy to defraud their former employer, announced U.S. Attorney Prim F. Escalona and U.S. Secret Service Special Agent in Charge Patrick M. Davis.
U.S. District Judge Madeline H. Haikala sentenced Larry James Black, Jr., 37, of Center Point to 30 months in prison. Black pleaded guilty to conspiracy to commit wire fraud and bank fraud in September 2021. Joshua Daniel Powell, 40, of Moody was sentenced to 15 months in prison. Powell pleaded guilty to conspiracy to commit wire fraud in June 2021. During the time period charged in the indictment, Black and Powell were both directors at the Chick-fil-A location in the Five Points South neighborhood of Birmingham.
According to the plea agreement, between April 2018 and January 2020, Black and Powell devised and implemented a scheme to divert $492,000 in customer payments away from Chick-fil-A Five Points and direct them instead to bank accounts under their control. Black and Powell used these accounts to receive customer credit card payments intended for Chick-fil-A Five Points. Many of these payments were for catering orders from large customers. To effectuate the scheme, Black and Powell used fraudulent email and digital payment accounts that imitated the look of official Chick-fil-A accounts. In addition to these fraudulent “Chick-fil-A” accounts, Black and Powell also utilized a personal email account belonging to Powell to intercept virtual credit card payments that were made on behalf of an additional customer.
In addition to conspiring to defraud Chick-Fil-A Five Points, Black acknowledged in his plea agreement that he provided a false social security number to various financial institutions and executed a scheme to defraud his mortgage lender. In January 2020, Black applied for a mortgage loan. In connection with his loan application, Black forged payroll records and made misrepresentations regarding his income from the Chick-fil-A franchise. As a result of these material misrepresentations, Black was able to secure a mortgage in the amount of $159,948.00 to finance the purchase of a home in Center Point, Alabama.
The U.S. Secret Service Cyber Fraud Task Force investigated the case. Assistant U.S. Attorney Edward J. Canter prosecuted the case.
Former Bank Employee Sentenced to 21 Months in Prison for Conspiracy to Commit Bank FraudRead the Press Release
WASHINGTON – Danielle Bartley, 26, a former Capital One Bank employee from Silver Spring, Maryland, was sentenced today to 21 months in prison for conspiracy to commit bank fraud, a conspiracy that compromised the account information of at least nine bank account holders and sought at least $253,000 in fraudulent withdrawals and transfers.
The announcement was made by U.S. Attorney Matthew M. Graves, Matthew R. Stohler, Special Agent in Charge, Washington Field Office, U.S. Secret Service, and Greg L. Torbenson, U.S. Postal Inspector in Charge for the Washington Division, U.S. Postal Inspection Service.
Bartley pleaded guilty in October 2021, in the U.S. District Court for the District of Columbia, to one count of conspiracy to commit bank fraud. In addition to the prison term, the Honorable Thomas F. Hogan today ordered her to pay restitution of $50,000 for the losses that were suffered and entered a forfeiture money judgment in the amount of $3,750.
As Bartley admitted in her guilty plea, at the time of the conspiracy in 2017, she worked as a branch associate in Washington, D.C. Between June and August 2017, Bartley and her co-conspirators, including Krishna Jannor-John Marsh, posed as nine different actual bank account holders and sought at least $253,000 in fraudulent withdrawals and transfers. They succeeded in obtaining one $50,000 wire transfer using personal identifiers of an account holder that Marsh purchased on the dark web. Other attempts were stopped, including one by an alert teller.
In September 2018, as part of his broader conspiracy, Marsh was sentenced to 46 months in prison, ordered to pay $338,100 in restitution, and had a forfeiture money judgment of $50,000 entered against him. After initially agreeing to plead guilty in 2018, Bartley fled to Jamaica and was extradited back to the United States in 2021.
In announcing the sentence, U.S. Attorney Graves, Special Agent in Charge Stohler, and Inspector in Charge Torbenson commended the work of those who investigated the case from the U.S. Secret Service and U.S. Postal Inspection Service. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Paralegal Specialists Joshua Fein and Kristy Penny. Finally, they commended the work of Assistant U.S. Attorney Arvind Lal and former Assistant U.S. Attorney Anthony Saler, who investigated and prosecuted the case.
Florida Study Coordinator Sentenced in Scheme to Falsify Clinical Drug Trial DataRead the Press Release
A federal judge sentenced a Florida man to 30 months in prison today in connection with his participation in a conspiracy to falsify clinical drug trial data.
U.S. District Judge Robert N. Scola Jr. of the Southern District of Florida entered the sentence against Duniel Tejeda, 35, of Clewiston. The court also ordered Tejeda to pay $2.1 million in restitution.
According to court documents, Tejeda worked as a project manager and study manager for a clinical research firm based in Miami called Tellus Clinical Research. As part of his plea agreement, Tejeda admitted that he agreed with others to falsify data in medical records in connection with clinical trials intended to evaluate various medical conditions, including opioid dependency, irritable bowel syndrome and diabetic nephropathy. Among other things, Tejeda falsified data to make it appear as though subjects were participating in the trials when, in truth, they were not.
“Clinical trials help ensure that new drugs are safe and effective for the public,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Falsifying clinical trial data undermines a critical component of the drug approval process. The Department of Justice will continue to work with our partners at the Food and Drug Administration (FDA) to investigate and prosecute anyone who puts personal profit over public health by falsifying clinical trial data.”
“Reliable and accurate data from clinical trials is the cornerstone of FDA’s evaluation of a new drug,” said Assistant Commissioner Catherine A. Hermsen for the FDA Office of Criminal Investigations (OCI). “Compromised clinical trial data could impact the agency’s decisions about the safety and effectiveness of the drug under review. We will continue to monitor, investigate and bring to justice those whose actions may subvert the FDA approval process and endanger the public health.”
FDA OCI is investigating the case.
Trial Attorneys Lauren M. Elfner, Joshua D. Rothman and Matthew M. Ryan of the Civil Division’s Consumer Protection Branch are prosecuting the case. The U.S. Attorney’s Office for the Southern District of Florida has provided critical assistance.
Florida Man Arrested at U.S./Canada Border, Charged with Human SmugglingRead the Press Release
ST. PAUL, Minn. – A federal criminal complaint has been filed against a Florida man charging him with human smuggling, announced Acting United States Attorney Charles J. Kovats.
According to court documents, on January 19, 2022, law enforcement agents with Homeland Security Investigations responded to a request for assistance from the U.S. Border Patrol (USBP) based out of Pembina, North Dakota. USBP initiated a traffic stop on a white-colored, fifteen passenger van less than one mile south of the U.S./Canadian border in a rural area between the official ports of entry located at Lancaster, Minnesota and Pembina, North Dakota. The driver of the vehicle was identified as Steve Shand, 47, a U.S. citizen. Law enforcement asked for identification of the two passengers in the van and determined them to be undocumented Indian nationals.
According to court documents, law enforcement discovered cases of plastic cups, bottled water, bottled juice, and snacks located in the extreme rear of the passenger van. Law enforcement also discovered receipts dated January 18, 2022, for the drinks and snacks, and rental agreement receipts in Shand’s name for the van, with the return date listed for January 20, 2022. USBP arrested Shand for smuggling undocumented foreign nationals. While Shand and the two passengers were being transported to the Pembina Border Patrol Station in North Dakota, law enforcement encountered five additional Indian nationals approximately a quarter mile south of the Canadian border walking in the direction of where Shand was arrested. They appeared to be headed to an unstaffed gas plant located in St. Vincent, Minnesota. The five Indian nationals explained that they had walked across the border expecting to be picked up by someone. The group estimated they had been walking around for over 11 hours. One of the group members was in possession of a backpack that did not belong to him. He stated he was carrying the backpack for a family of four Indian nationals that had earlier walked with his group but had become separated during the night. The backpack contained children’s clothes, a diaper, toys, and some children’s medication.
According to court documents, later during the day on January 19, 2022, USBP received a report from the Royal Canadian Mounted Police that four bodies were found frozen just inside the Canadian side of the international border. The dead bodies were tentatively identified as the family of four that was separated. Two of the surviving Indian nationals sustained serious injuries and were transported to a hospital.
Shand is charged with one count of knowing or in reckless disregard of the fact that an alien had come to, entered, or remained in the United States in violation of law, having transported, and moved or having attempted to transport and move such aliens. He made his first appearance today before U.S. District Court Magistrate Judge Hildy Bowbeer. Shand was ordered to remain in custody pending a preliminary and detention hearing, currently scheduled for January 24, 2022, at 3:00 p.m. before Magistrate Judge Bowbeer.
This case is the result of an investigation conducted by Homeland Security Investigations with assistance from U.S. Customs and Border Protection.
Assistant U.S. Attorney Laura Provinzino is prosecuting the case.
A complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Fitchburg Man Sentenced for Role in Fentanyl, Heroin, Crack and Cocaine ConspiracyRead the Press Release
BOSTON – A Fitchburg man was sentenced yesterday in federal court in Worcester for his role in a wide-ranging fentanyl, heroin, crack and cocaine trafficking conspiracy.
Pablo Vidarte Hernandez, 48, was sentenced by U.S. District Court Judge Timothy S. Hillman to 81 months in prison and three years of supervised release. On Sept. 20, 2021, Vidarte Hernandez pleaded guilty to conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, 280 grams or more of cocaine base (commonly known as crack cocaine) and 500 grams or more of cocaine.
According to court documents, following a fatal fentanyl overdose in September 2018, law enforcement began an investigation into a drug trafficking organization (DTO) in the Fitchburg area led by co-conspirators Pedro Baez and Anthony Baez. Beginning in July 2019, electronic communications revealed that Vidarte Hernandez, and others, distributed a fentanyl and heroin mixture on a regular basis to individuals in the Fitchburg area, including to Pedro and Anthony Baez, who redistributed that mixture to others.
Over the course of the investigation, over 1.8 kilograms of a heroin and fentanyl mixture, over 3.6 kilograms of cocaine and over 50 grams of crack cocaine were seized, as well as a stolen, loaded handgun, drug manufacturing equipment and over $376,000. Vidarte Hernandez was responsible for distributing over a kilogram of a fentanyl and heroin mixture.
Vidarte Hernandez was charged along with 17 others in July 2020. He is the third defendant to be sentenced in the case. In December 2020, Anthony Baez was sentenced by Judge Hillman to 13 years in prison. Pedro Baez pleaded guilty on Feb. 3, 2021 and is scheduled to be sentenced on May 17, 2022. Six other defendants have pleaded guilty and are awaiting sentencing.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. The Fitchburg Police Department, U.S. Postal Inspection Service and the Lunenburg Police Department also provided valuable assistance. Assistant U.S. Attorney Alathea Porter of Rollins’ Narcotics and Money Laundering Unit is prosecuting the case.
The operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Felon and escapee sentenced for gun crimeRead the Press Release
CORPUS CHRISTI, Texas – A 39-year-old Corpus Christi resident has been ordered to federal prison after unlawfully possessing a firearm as a convicted felon, announced U.S. Attorney Jennifer B. Lowery.
Jacob Andrew Rosenblum pleaded guilty Sept. 23, 2021.
Today, U.S. District Judge Nelva Gonzales Ramos ordered him to serve a 77-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard additional information detailing Rosenblum’s extensive criminal history, including a recent successful escape from local law enforcement custody after being placed under arrest for an unrelated offense.
On March 29, 2021, authorities observed Rosenblum attempting to break into a storage container. As they approached, he fled which led to a brief foot pursuit.
Law enforcement began to detain him, but quickly observed him attempting to move his hands towards his waistband. Officers then located a revolver containing five rounds of ammunition concealed within his waistband area.
They also found to be in possession of multiple locks and a master key. The investigation revealed he had previously used the same key to slip out of custody on a previous occasion and flee on foot.
Rosenblum will return to state custody to serve that sentence and later transferred to a U.S. Bureau of Prisons facility to be determined in the future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Corpus Christi Police Department. Assistant U.S. Attorney Roland Swanson prosecuted the case.
Felon Sentenced to over 8 Years in Federal Prison for Firearms PossessionRead the Press Release
FAYETTEVILLE – A Springdale man was sentenced today to 100 months in prison followed by three years of supervised release on one count of being a Felon in Possession of a Firearm. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court documents, on October 22, 2020, detectives with the 4th Judicial District Drug Task Force made contact with Johnta Martez Dixon, 30, at his residence in Springdale, Arkansas. Dixon is a parolee on active supervision and has a warrantless search wavier on file. After asking and receiving permission to search, a search was conducted on the residence. The search resulted in detectives locating a .300 rifle in Dixon’s bedroom. The investigation also revealed Dixon was involved in the trafficking of methamphetamine. Dixon is a convicted felon and is prohibited from possessing any firearms.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The 4th Judicial District Drug Task Force investigated the case.
Assistant U.S. Attorney David Harris prosecuted the case.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Federal Court Shuts Down Michigan Tax Return PreparerRead the Press Release
A federal court in the Eastern District of Michigan has permanently barred a Detroit-area tax return preparer and her business from preparing federal tax returns for others.
The injunction was entered against Jennifer Sherman and her tax preparation business, Sherman Management Co. Inc. According to the complaint filed against the defendants, Sherman and her company had returns prepared that, among other things, reported false business income and expenses and claimed excessive deductions, resulting in undeserved refunds. The complaint also alleged that Sherman impermissibly lowered some of her customers’ tax liabilities by falsely claiming head of household status for individuals not entitled to claim it. According to the complaint, the fraudulent tax returns that Sherman and her business prepared for customers cost the United States hundreds of thousands of dollars in tax revenue.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a list of steps to take to make the 2022 filing season easier.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Edmond Woman Pleads Guilty to Cares Act Main Street Lending Program FraudRead the Press Release
OKLAHOMA CITY – Today, Jill Nicole Ford, 31, of Edmond, Oklahoma, pleaded guilty to bank fraud and money laundering related to a loan obtained through the Main Street Lending Program, a lending facility established by the Federal Reserve Board and supported with funding authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), announced United States Attorney Robert J. Troester.
The CARES Act provided more than $2 trillion in relief for individuals and businesses adversely affected by the coronavirus pandemic. The CARES Act also authorized the Secretary of the Treasury and the Federal Reserve Board to create the Main Street Lending Program to promote lending to small- and medium-sized businesses affected by the pandemic.
On January 7, 2022, Ford was charged by information with fraudulently obtaining a Main Street Lending Program Loan for her business, Oliver & Olivia Apparel, Inc. Public documents filed in the case reflect that Ford obtained the loan from Citizens Bank of Edmond on September 11, 2020, and executed a loan agreement falsely representing she would use Main Street Lending Program funds for working capital and payroll only. She also falsely represented she would not make financial distributions to herself as the owner of Oliver & Olivia Apparel, Inc. The information further alleged that Ford laundered the loan proceeds by using them to pay for construction of her personal home. Other loan funds were used to purchase a luxury SUV for Ford’s personal use.
Today, Ford pleaded guilty to both charges in the information before U.S. District Judge Jodi D. Dishman. As part of her plea, Ford admitted that she made false representations in obtaining the Main Street Loan and laundering the proceeds by engaging in a financial transaction with those proceeds in an amount greater than $10,000. At sentencing, Ford faces up to 30 years in prison and a $1,000,000 fine for the bank fraud offense. She faces up to 10 years in prison and a $250,000 fine for the money laundering charge. She must pay a $200 special assessment and may be sentenced to a term of up to five years of supervised release following any term of imprisonment. Ford also agreed the court will enter a restitution order in the amount of $252,143.35. Sentencing will take place in approximately 90 days.
This case is the result of an investigation by the Special Inspector General for Pandemic Recovery (SIGPR), the Oklahoma City FBI Field Office, the Internal Revenue Service–Criminal Investigations, the United States Secret Service, the Federal Reserve Board Office of Inspector General, and the Small Business Administration Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Jessica L. Perry.
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.
Reference is made to court filings for further information.
Defendant Charged with Attempted Enticement of 5-Year-Old BoyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced charges against RICHARD VIET NGUYEN for attempted enticement of one minor boy in Manhattan, New York. NGUYEN was arrested this morning and presented in Manhattan federal court today before U.S. Magistrate Judge Sarah L. Cave.
U.S. Attorney Damian Williams said: “The conduct alleged against Richard Nguyen is as chilling and disturbing as one can imagine. The protection of our youth from predators has been and will remain of critical importance to this Office and our law enforcement partners.”
FBI Assistant Director Michael J. Driscoll said: "It's unfathomable to believe anyone would see a five-year-old boy as a sexual being. What's more despicable in this investigation, we allege the subject brought Benadryl to drug the child. The work these agents do is truly difficult, but so tremendously important to protecting children from predators. I want to commend what they do, and the fact that they show up every day despite how difficult their job can be."
As alleged in the Complaint filed today in Manhattan federal court[1]:
On or about October 20, 2021, an individual identified to be NGUYEN initiated a series of conversations on an instant messaging platform with an undercover FBI agent (“UC-1”), posing as the father of an 8-year-old boy and a 5-year-old boy. Thereafter, UC-1 and NGUYEN had numerous communications, include one oral communication, via the instant messaging platform.
In these conversations, NGUYEN expressed his desire to engage in sexual activity with both children – including both oral and anal sex – and discussed potential arrangements for NGUYEN to engage in sexual activity with either child.
UC-1 and NGUYEN arranged to meet at a coffee shop in Manhattan on the morning of January 20, 2022, with the understanding that they would return to UC-1’s apartment afterward and NGUYEN would then engage in sexual activity with the youngest boy. On the morning in question, NGUYEN met UC-1 at the agreed-upon location. After the two of them left the coffee shop and began walking toward UC-1’s purported apartment, law enforcement arrested NGUYEN. NGUYEN was in possession of, among other things, children’s Benadryl and a condom in his pocket.
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NGUYEN, 29, of Manhattan, New York, is charged with one count of attempted enticement of a minor to engage in illegal sexual activity, in violation of Title 18, United States Code, Sections 2422(b) and 2, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.
Mr. Williams praised the outstanding investigative work of the FBI Child Exploitation and Human Trafficking Task Force.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Edward C. Robinson Jr. is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Columbia Man Sentenced for Enticing a Minor for Illicit SexRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Missouri, man was sentenced in federal court today for attempting to meet a law enforcement officer, posing online as a 14-year-old girl, for illegal sexual activity.
Darren Wade Lasley, 33, was sentenced by U.S. District Judge Brian C. Wimes to 10 years in federal prison without parole.
On Aug. 18, 2021, Lasley was found guilty at trial of attempting to entice a minor to engage in illegal sexual activity.
On June 14, 2017, Lasley responded by email to an online classified advertisement on Craigslist, which was placed as part of an undercover operation by a detective in the Boone County Sheriff’s Department Cyber Crimes Task Force posing as a 14-year-old girl. In a series of email exchanges over the course of the next several days, Lasley described his plans for a sexual encounter with the decoy. Lasley proposed visiting her residence while her mother was at work or out of town.
On June 21, 2017, Lasley asked in an email if the decoy could sneak out of her house to meet him for a sexual rendezvous. Lasley was arrested when he arrived at the arranged location.
This case was prosecuted by Assistant U.S. Attorneys Ashley S. Turner and Aaron M. Maness. It was investigated by the Boone County, Mo., Sheriff’s Department and the FBI.
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."
Charleston Man Sentenced to Prison to Five Years in Prison for Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to five years in prison for using and carrying a firearm during and in relation to a drug trafficking crime.
According to court documents and statements made in court, Shawn Le, 28, sold fentanyl, a .22 caliber revolver and 214 rounds of .22 caliber ammunition to a confidential informant working with law enforcement on February 19, 2021.
United States Attorney Will Thompson made the announcement and commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Steve Loew handled the prosecution.
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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00156.
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Charleston Felon Pleads Guilty to Possessing FirearmRead the Press Release
CHARLESTON, W.Va. -- Denzil Weatherspoon, 29, of Charleston, pleaded guilty today to a single-count indictment charging him with being a felon in possession of a firearm.
According to court documents and statements made during the plea hearing, Weatherspoon ran from officers with the Charleston Police Department on February 4, 2020. Upon detaining Weatherspoon, officers recovered a loaded .22 caliber revolver in his jacket pocket. Weatherspoon is prohibited from possessing firearms by virtue of his prior felony convictions. Weatherspoon has a 2016 felony conviction for aggravated assault in the Circuit Court of Davidson County, Tennessee and a 2014 felony conviction for unlawful wounding in the Circuit Court of Kanawha County, West Virginia.
Weatherspoon faces up to 10 years in federal prison when he is sentenced on May 5, 2022.
United States Attorney Will Thompson made the announcement and commended the excellent work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charleston Police Department.
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Nick Miller is handling the prosecution.
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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00138.
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Career Offender Sentenced for Possessing a Firearm while Distributing FentanylRead the Press Release
NEWPORT NEWS, Va. – An Ahoskie, North Carolina, man was sentenced yesterday to 18 years in prison for possessing a firearm while distributing narcotics throughout Hampton Roads.
According to court documents, in or around July 2020, the Newport News Police Department was informed that Marcus Dewayne Smith, 39, was distributing narcotics from various hotels throughout the City of Newport News. In Smith’s hotel room, law enforcement discovered 82 prepackaged glassine packets individually stamped “FIREBALL,” containing a mixture of heroin, fentanyl, and tramadol. Also in Smith’s room was a distribution amount of cocaine, approximately $8,000 in cash, tools and packaging materials for drug distribution, and two loaded semiautomatic handguns. Smith, a prior convicted felon, is prohibited from possessing firearms. Smith’s lengthy and violent criminal history over the past two decades qualifies him as a “Career Offender.”
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; and Steve R. Drew, Chief of Newport News Police, made the announcement after sentencing by Senior U.S. District Judge Raymond A. Jackson.
Assistant U.S. Attorney Peter Osyf prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:21-cr-43.
Canton Man Sentenced to 228 Months for Sexual Exploitation of ChildrenRead the Press Release
DETROIT – A Canton man was sentenced to 228 months in prison on charges of sexual exploitation of a minor, announced United States Attorney Dawn Ison.
Ison was joined in the announcement by Josh P. Hauxhurst, Acting Special Agent in Charge, Federal Bureau of Investigation, Detroit Division.
Sentenced was Shailesh Patel, 54. In sentencing Patel, United States District Court Judge George Steeh also ordered Patel to pay a $50,000 fine.
According to court records, Patel admitted that in approximately 2010, on at least one occasion, he gave a 10-year-old female his cellular phone and told her to make a video that produced a visual depiction constituting child pornography. The victim estimated that this occurred on approximately 30 occasions. Patel abused this victim, and others, for years, beginning when she was as young as five and continuing until she was 12. The victim stated that the abuse is a “burden that I will carry for the rest of my life, and so will those people in my life who love me the most, my family and friends.”
US Attorney Dawn N. Ison stated, “The victim in this case demonstrated great courage coming forward with her story, stopping Patel’s abuse and likely preventing future victims. The United States Attorney’s Office remains dedicated to the safety of children and holding abusers like Patel responsible for their actions.”
"Creating child sexual abuse material is a serious offense that causes incalculable damage to young victims,” said Josh P. Hauxhurst, Acting Special Agent in Charge of the FBI’s Detroit Division. “Today’s sentence in combination with the sentences he is facing in state court holds Mr. Patel accountable for his conduct and ensures he cannot harm any more children, but it will never make up for the lifetime of painful memories he inflicted on his victims and their families. Cases like this one illustrate the FBI’s commitment to identify, investigate, and hold predators like him accountable.”
Patel has also pleaded guilty in the Third Judicial Circuit Court to 15 to 35 years in prison for a first-degree criminal sexual conduct charge, 9 to 15 years for two second-degree criminal sexual conduct charges, and probation for a fourth-degree criminal sexual conduct charge. The conduct giving rise to these charges involves two minor female victims, one of which is the same victim as the federal case. He is awaiting sentencing on these charges.
The case was the result of a joint investigation by the Canton Police Department and the Southeast Michigan Trafficking and Exploitation Crimes Task Force (“SEMTEC”) of the Federal Bureau of Investigation, as well as a cooperative effort between the Wayne County Prosecutor’s Office and the United States Attorney’s Office.
Canterbury Man Charged with Illegally Possessing Machinegun and Other FirearmsRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, and James Ferguson, Special Agent in Charge, ATF Boston Field Division, today announced that a federal grand jury in Bridgeport returned an indictment yesterday charging ANDRES VASQUEZ, 34, of Canterbury, with offenses related to the unlawful possession of a machinegun and other firearms.
As alleged in court documents and statements made in court, on April 28, 2020, federal agents executed a search warrant at an apartment in New Britain and seized drugs, drug paraphernalia, a 9mm handgun and ammunition. The handgun was registered to Vasquez and had not been reported stolen. The investigation revealed that Vasquez had several other firearms registered to him. On June 5, 2020, a search of Vasquez’s Canterbury residence revealed five semi-automatic rifles, three handguns, a machinegun bearing no serial number, additional unserialized firearms, firearm parts, ammunition, and drug paraphernalia. Vasquez was a heroin user when he was in possession of the firearms.
The indictment charges Vasquez with one count of possession of firearms by a user of a controlled substance, and one count of unlawful possession of a machinegun. Each offense carries a maximum term of imprisonment of 10 years.
U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Vasquez was arrested on a federal criminal complaint on December 14, 2020. He is released on a $25,000 bond and is scheduled to be arraigned on January 27.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Connecticut State Police, with the assistance of the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Angel M. Krull.
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.
Calloway County Man Sentenced for Illegal Firearms, MarijuanaRead the Press Release
JEFFERSON CITY, Mo. – An Auxvasse, Missouri, man was sentenced in federal court today for growing marijuana and illegally possessing dozens of firearms.
Darrin Dale Smithee, 56, was sentenced by U.S. District Judge Brian C. Wimes to 10 years in federal prison without parole.
On Aug. 31, 2021, Smithee pleaded guilty to one count of manufacturing marijuana and one count of being a felon in possession of a firearm.
On Sept. 21, 2018, Callaway County sheriff’s deputies and members of the MUSTANG Task Force executed a search warrant at Smithee’s residence. Deputies located a room in the basement that contained two large industrial LED lights that ran off 1,000-watt amplifiers, several types of hoses used for ventilation, air filters, fertilizer and a water source. In the same room was a plastic tub containing marijuana stems, branches and leaves.
Also in the basement was a concrete bunker-type room with a bank vault-style door. Smithee used a combination and opened the vault door; officers found 66 firearms inside, including an S&S 12-gauge Street Sweeper, a Rohm .22-caliber rifle, a Smith & Wesson .357-caliber rifle, and a Norinco SKS .762/39 caliber rifle. Officers also found two small hard plastic children’s swimming pools, each of which contained several pounds of marijuana buds that were drying.
Officers searched Smithee’s bedroom and found a loaded pump action pistol grip Mossberg shotgun underneath a mattress. In the closet was a Ruger .22-caliber rifle with a loaded magazine. Officers also found several ounces of marijuana in a clear tub and in several sections of a dresser.
Officers saw marijuana plants during an aerial search of Smithee’s property. Officers then found 29 fully mature marijuana plants during a search of the field. The total weight of the marijuana plant material submitted for testing to the crime laboratory was 2,697.96 grams.
According to court documents, some of the firearms seized by officers were stolen. Officers also found a short-barrel shotgun which was altered to possibly be a boobytrap in a kitchen drawer. Officers found thousands of rounds of ammunition in the house. Court documents note that two juveniles were found inside the residence when officers entered the house.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Smithee has five prior felony convictions for violating an order of protection, as well as prior felony convictions for burglary, stealing, and receiving stolen property.
This case was prosecuted by Assistant U.S. Attorney Aaron M. Maness. It was investigated by the Callaway County, Mo., Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the MUSTANG Task Force, the Mid-Missouri Drug Task Force, the Fulton, Mo., Police Department, the Missouri State Highway Patrol, and the Missouri National Guard Counter Drug Program.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
CFO of KC Company Pleads Guilty to $3 Million EmbezzlementRead the Press Release
KANSAS CITY, Mo. – A former Overland Park, Kansas, man pleaded guilty in federal court today to embezzling $3.1 million from his employer and failing to pay nearly $1 million in taxes owed to the federal government and the state of Kansas.
Richard Scott Simkins, 56, now residing in Ft. Lauderdale, Florida, waived his right to a grand jury and pleaded guilty before U.S. District Judge Roseann Ketchmark to a federal information that charges him with one count of mail fraud and one count of filing a false tax return.
Simkins was the chief financial officer for Genesys Industrial Corporation, doing business as Genesys Systems Integrator in Kansas City, Missouri. Genesys engineers and designs automated production systems and production machinery.
By pleading guilty today, Simkins admitted that he embezzled at least $3.1 million from Genesys from 2013 to September 2020 by writing checks on the Genesys account to pay his personal expenses. In order to hide his thefts, Simkins recorded the checks to improper accounts. He also aided and abetted another Genesys employee’s embezzlement of approximately $325,000 from the company.
Simkins also admitted that he failed to report the stolen income on his federal income tax returns and his Kansas state personal income tax returns. The total federal tax loss caused by Simkins’s fraudulent behavior was at least $867,713; the total Kansas state tax loss was at least $129,131, for a total federal and state tax loss of at least $996,844.
Simkins spent his tax-free embezzled proceeds on retail purchases, including jewelry; travel to Las Vegas, Nevada; Los Angeles, California; Orlando, Florida; Scottsdale, Arizona; and Estes Park, Colorado; household expenses, including pool and lawn care; school expenses, including college tuition, fraternity payments, and extracurricular activities; rent for himself and relatives; and personal mortgage payments.
Under the terms of today’s plea agreement, Simkins must forfeit to the government his residential property in Overland Park and pay a money judgment that represents the proceeds of his embezzlement. Simkins also must pay restitution to Genesys in an amount to be determined by the court, and $867,713 in restitution to the IRS.
Under federal statutes, Simkins is subject to a sentence of up to 23 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the FBI and IRS-Criminal Investigation.
Brazilian National Pleads Guilty to Role in Nationwide Rideshare and Delivery Account Fraud SchemeRead the Press Release
BOSTON – A Brazilian national pleaded guilty today in connection with a nationwide conspiracy to open fraudulent driver accounts with rideshare and delivery service companies.
Wemerson Dutra Aguiar, 29, a Brazilian national formerly residing in Lynn and Woburn, Mass., pleaded guilty in federal court in Boston to one count of conspiracy to commit wire fraud and one count of aggravated identity theft. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for May 10, 2022.
In May 2021, Aguiar was charged along with 18 co-defendants with conspiracy to commit wire fraud by using stolen identities and falsified documents to create fraudulent driver accounts for rent or sale to individuals who might not otherwise qualify to drive for the rideshare or delivery services.
According to the charging documents, the defendants allegedly used victims’ identifying information to apply for driver accounts with the rideshare and delivery companies – enabling the defendants to pass those companies’ required background checks and create driver accounts in victims’ names. At times, it is alleged that the defendants edited victims’ driver’s license images to display photos of the drivers renting or buying the fraudulent accounts in order to circumvent facial recognition technology that the rideshare and delivery companies used as a security measure. The defendants allegedly obtained victims’ names, dates of birth, driver’s license information and or Social Security numbers from co-conspirators and other sources, including sites on the Dark Net. The defendants and co-conspirators also obtained driver’s license images directly from victims, by photographing victims’ licenses while completing an alcohol delivery through one of the services or while exchanging information with victims following vehicle accidents, some of which defendants or co-conspirators intentionally caused in order to obtain victims’ license information. As a result of the scheme, Internal Revenue Service Forms 1099 were generated in victims’ names for income that conspirators earned from the rideshare and delivery companies.
It is further alleged that the defendants used fraudulent driver accounts to exploit referral bonus programs offered by the rideshare and delivery companies and used “bots” and GPS “spoofing” technology to increase the income earned from the companies.
In connection with the scheme, Aguiar admitted that he obtained driver’s licenses and Social Security numbers that his co-conspirators procured from the DarkNet and other sources. Aguiar also admitted that he paid co-conspirators to alter driver’s license photos to display pictures of other individuals and that he used templates to create image files of fraudulent driver’s licenses displaying identity theft victims’ information. Aguiar used these stolen identifiers to create hundreds of fraudulent accounts with the rideshare and delivery companies and supplied these identifiers to other co-conspirators who also created fraudulent accounts. Aguiar advertised fraudulent accounts for sale or rent to Brazilian nationals living in the United States via WhatsApp chat groups and by word of mouth. He managed these accounts and attempted to prevent the accounts from being closed by the companies for fraud. Between June 2019 and January 2021, Aguiar received over $375,000 in rental payments from individuals driving under these accounts and payments from the companies generated with these accounts.
Sixteen of the defendants have been arrested in connection with the conspiracy and three remain at large. Aguiar is the second defendant to plead guilty in the case. If you believe that you may be a victim of the allegations in this case, please visit: https://www.justice.gov/usao-ma/victim-and-witness-assistance-program/us-v-wemerson-dutra-aguiar-and-us-v-priscila-barbosa-et-al.
The charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss from the offense, whichever is greater. The charge of aggravated identity theft provides for a sentence of at least two years in prison to be served consecutive to any other sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by the Massachusetts State Police; the Concord, Lexington, Plymouth, Wilmington, Marlborough and Village of Rye Brook (N.Y.) Police Departments; U.S. Customs and Border Protection; U.S. Postal Inspection Service and the National Crime Insurance Bureau. Assistant U.S. Attorneys Kristen A. Kearney and David M. Holcomb of Rollins’ Securities, Financial & Cyber Fraud Unit are prosecuting the case.
Belarusian Government Officials Charged with Aircraft Piracy for Diverting Ryanair Flight 4978 to Arrest Dissident Journalist in May 2021Read the Press Release
A federal grand jury in New York returned an indictment today charging four Belarusian state officials with conspiracy to commit aircraft piracy.
According to court documents, Leonid Mikalaevich Churo, Oleg Kazyuchits, Andrey Anatolievich Lnu and Fnu Lnu, all of Belarus, allegedly engineered the diversion of Ryanair Flight 4978 (the Flight) – which was carrying four U.S. nationals and more than 100 other passengers on board – while it was in flight on May 23, 2021, to arrest a dissident Belarusian journalist who was on board.
“Since the dawn of powered flight, countries around the world have cooperated to keep passenger airplanes safe,” said U.S. Attorney Damian Williams for the Southern District of New York. “The defendants shattered those standards by diverting an airplane to further the improper purpose of repressing dissent and free speech. Thanks to the extraordinary investigative work of a joint team of FBI counterterrorism and counterintelligence investigators, today’s indictment provides a prompt and public explanation of what actually happened to the Flight. We are committed to holding accountable these central participants in a shocking conspiracy to commit aircraft piracy that not only violated international norms and U.S. criminal law, but also potentially endangered the lives of four U.S. citizens and scores of other innocent passengers on board.”
“We allege the defendants carried out an elaborate scheme to fake a bomb scare which forced an airplane to make an emergency landing in their country so they could arrest a dissident journalist,” said Assistant Director Michael J. Driscoll of the FBI’s New York Field Office. “During the course of our investigation, the FBI identified a detailed operation that subjected passengers from many countries, including the U.S., to the realities of terroristic threats. Not only is what took place a reckless violation of U.S. law, it’s extremely dangerous to the safety of everyone who flies in an airplane. The next pilot who gets a distress call from a tower may doubt the authenticity of the emergency – which puts lives at risk. The FBI and our foreign partners will continue to hold perpetrators responsible for actions which directly threaten the lives of our US citizens and jeopardize the stability of our national security.”
Overview of the Plot
While on its regularly scheduled passenger route between Athens, Greece, and Vilnius, Lithuania, on May 23, 2021, the Flight was diverted to Minsk, Belarus, by air traffic control authorities in response to a purported threat of a bomb on board the aircraft. There was, in fact, no bomb on board the aircraft. Belarusian government authorities fabricated the threat as a means to exercise control over the Flight and force it to divert from its course toward the original destination of Vilnius, and instead land in Minsk.
The purpose of the Belarusian government’s plot diverting the Flight to Minsk was so that Belarusian security services could arrest a Belarusian journalist and political activist (Individual-1) – who was critical of the Belarusian government, living in exile in Lithuania, and wanted by the Belarusian government on allegations of fomenting “mass unrest” – as well as Individual-1’s girlfriend (Individual-2). The Belarusian government conspiracy to divert the Flight was executed by, among others, officers of the Belarusian state security services working in coordination with senior officials of the Belarusian state air navigation authority.
The Defendants
The defendants, all Belarusian government officials and critical participants in this conspiracy, are identified as: Leonid Mikalaevich Churo, Oleg Kazyuchits, Andrey Anatolievich Lnu and Fnu Lnu. At all times relevant to the indictment, Churo was the Director General of Belaeronavigatsia, the Belarusian state air navigation authority. As alleged, Churo personally communicated the false bomb threat to staff at the Minsk air traffic control center before the Flight even took off from Athens, and directed the control center to instruct the Flight divert to Minsk in response to the purported threat.
Kazyuchits was the Deputy Director General of Belaeronavigatsia, and his role in the conspiracy included directing Belarusian air traffic authorities to falsify incident reports regarding the diversion of the Flight in order to conceal the fabrication of the bomb threat and to omit the role of Belarusian security services in directing the diversion.
Andrey Anatolievich Lnu and Fnu Lnu were officers of the Belarusian state security services. Fnu Lnu participated with Churo in conveying the false bomb threat to the Minsk air traffic control tower, personally directed the specific radio communications from the Minsk tower to coerce the Flight to divert to Minsk, and relayed contemporaneous updates on the diversion of the Flight and the progress of the plot to Andrey Anatolievich Lnu, who was Fnu Lnu’s superior in the Belarusian state security services.
The Diversion of the Flight
On May 23, 2021, at approximately 6:45 UTC, Churo and Fnu Lnu arrived at the operations room of the Minsk area air traffic control center with responsibility for Belarusian airspace. Churo and Fnu Lnu conveyed the purported bomb threat to the controllers on duty, even though the Flight had not yet departed Athens. Churo and Fnu Lnu specifically crafted the threat to coerce the pilots of the Flight to avoid continuing to their final destination of Vilnius, by claiming that the purported bomb would explode if the Flight landed there.
In addition, Churo and Fnu Lnu took the telling steps of directing that the Flight be diverted specifically to Minsk, and even though the Flight was still in the adjacent airspace of Ukraine, prohibiting the Minsk air traffic control center from making any notification to Ukrainian authorities of the purported bomb threat. This helped to ensure that the Flight would enter Belarusian airspace, and the plot to obtain and exercise control over the Flight could be executed. Fnu Lnu remained in the operations room at the Minsk air traffic control center from the time that he and Churo conveyed the purported bomb threat and directed that the Flight divert to Minsk, until shortly before the Flight landed in Minsk after being diverted, in order to ensure that the diversion plot was successfully executed.
Once the Flight reached Belarusian airspace, Fnu Lnu instructed the senior air traffic controller who was responsible for communicating with the Flight to inform the pilots of the purported bomb threat, describe that the threat had been sent by email, and make specific statements to ensure the threat seemed credible and to coerce the Flight to divert to Minsk. For example, Fnu Lnu directed that the air traffic controller should falsely inform the pilots that the threat to the aircraft was a level “red” – the most specific and credible category of threat. Fnu Lnu provided updates on the execution of the plot in real time to his superior in the Belarusian security services, Andry Antolievich Lnu, at one point expressing concern that the pilots might be stalling for time and the Flight might soon leave Belarusian airspace, which would jeopardize the success of their diversion scheme. In response to the false information conveyed as part of the defendants’ plot, the pilots of the Flight ultimately declared an emergency and diverted to Minsk National Airport, in accordance with the directives from Churo and Fnu Lnu.
Once the Flight landed in Minsk, Fnu Lnu left the air traffic control operations room and went to the airport tarmac. The Flight was met by Belarusian security services personnel, including individuals dressed in camouflage military-style uniforms, some of whom were wearing ski masks and carrying visible firearms. Fnu Lnu remained on the tarmac supervising the security forces and monitoring the screening of the passengers as they disembarked. Belarusian security services personnel then instructed the passengers to board one of several airport passenger buses.
Belarusian authorities boarded one of the buses and asked Individual-1 to come forward and identify himself, demonstrating that Belarusian authorities were aware that Individual-1 was on board the Flight. Individual-1 was escorted off the bus, where uniformed Belarusian officers separately searched him again on the airport tarmac. Belarusian officers then escorted Individual-1 back onto the bus and traveled with Individual-1 and the rest of the passengers to the airport terminal. Once the bus arrived at the terminal, the Flight’s passengers were detained in an area of the terminal secured by Belarusian security services. Additional Belarusian security officers met Individual-1 and the officers accompanying him, escorted Individual-1 away from the remaining passengers and detained Individual-1. One group of passengers from the Flight, including multiple U.S. nationals and Individual-2, was detained in a narrow hallway for approximately three hours at the airport. During that time, Belarusian authorities also escorted Individual-2 away from the other passengers and detained Individual-2. The Flight was ultimately allowed to depart from Minsk and continue to its original destination of Vilnius later that evening. No bomb was ever on the Flight.
The Cover-Up
Soon after the diversion of the Flight, Belarusian government officials began to cover up what had happened. On or about May 24, 2021, the day after the Flight was diverted, Churo appeared at a press conference in Belarus with other Belarusian officials to address the Flight’s diversion. During the press conference, Churo stated falsely the Belarusian authorities had “done everything according to their technology and their job responsibilities” in handling the Flight. In reality, Churo knew that he and his co-conspirators had contrived the false bomb threat and had directed the Flight to divert to Minsk so that Belarusian security services could arrest Individual-1 and Individual-2. To further conceal the defendants’ plot, Kazyuchits directed Belarusian air traffic authorities to create false incident reports, including by doctoring the reports to misrepresent that the bomb threat was received at approximately the same time that the Flight entered Belarusian airspace and omit the fact that Fnu Lnu of the Belarusian security services was present in the operations room and directed activity during the Flight’s diversion.
Churo, Kazyuchits, Andrey Anatolievich Lnu and Fnu Lnu, all of Belarus, are charged with conspiring to commit aircraft piracy, which carries a minimum sentence of 20 years and maximum statutory penalty of life. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The defendants remain at large. The United States looks forward to working with our foreign partners to bring them to justice.
This case was jointly investigated by the FBI’s New York Field Office, Counterintelligence Division Foreign Influence Task Force and the New York Joint Terrorism Task Force, which principally consists of special agents from the FBI and detectives from the NYPD; as well as the FBI Legal Attaché Offices in Riga, Latvia; Warsaw, Poland; Athens, Greece; Kiev, Ukraine; and London; the National Transportation Safety Board; the Justice Department’s National Security Division Counterterrorism Section and Criminal Division’s Human Rights and Special Prosecutions Section, and the Office of International Affairs. Poland’s Internal Security Agency and the Mazowieckie Regional Prosecutor’s Office; and Lithuanian authorities provided valuable assistance with this investigation.
Assistant U.S. Attorneys David W. Denton Jr. and Elinor L. Tarlow for the Southern District of New York are prosecuting the case, with assistance from Trial Attorneys Jennifer Burke of the National Security Division’s Counterterrorism Section, and Jamie Perry and Christian Levesque of the Criminal Division’s Human Rights and Special Prosecutions Section.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Belarusian Government Officials Charged with Aircraft Piracy for Diverting Ryanair Flight 4978 to Arrest Dissident Journalist in May 2021Read the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Assistant Attorney General for National Security Matthew G. Olsen, Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, Assistant Director-in-Charge Michael J. Driscoll of the Federal Bureau of Investigation (“FBI”) New York Office, and Commissioner Keechant Sewell of the New York City Police Department (“NYPD”), announced the filing of a one-count indictment charging LEONID MIKALAEVICH CHURO, the Director General of Belaeronavigatsia Republican Unitary Air Navigation Services Enterprise (“Belaeronavigatsia”), the Belarusian state air navigation authority; OLEG KAZYUCHITS, the Deputy Director General of Belaeronavigatsia; and two officers of the Belarusian state security services, ANDREY ANATOLIEVICH LNU and FNU LNU, with conspiracy to commit aircraft piracy for engineering the diversion of Ryanair Flight 4978 (the “Flight”)—which was carrying four U.S. nationals and more than 100 other passengers on board—while it was in flight over Belarus on May 23, 2021, for the purpose of arresting a dissident Belarusian journalist who was on board the Flight. The case is assigned to U.S. District Judge Paul A. Engelmayer. The defendants are based in Belarus and remain at large.
U.S. Attorney Damian Williams said: “Since the dawn of powered flight, countries around the world have cooperated to keep passenger airplanes safe. The defendants shattered those standards by diverting an airplane to further the improper purpose of repressing dissent and free speech. Thanks to the extraordinary investigative work of a joint team of FBI counterterrorism and counterintelligence investigators, today’s indictment provides a prompt and public explanation of what actually happened to the Flight. We are committed to holding accountable these central participants in a shocking conspiracy to commit aircraft piracy that not only violated international norms and U.S. criminal law, but also potentially endangered the lives of four U.S. citizens and scores of other innocent passengers on board.”
FBI Assistant Director Michael J. Driscoll said: “We allege the defendants carried out an elaborate scheme to fake a bomb scare which forced an airplane to make an emergency landing in their country so they could arrest a dissident journalist. During the course of our investigation, the FBI identified a detailed operation that subjected passengers from many countries, including the U.S., to the realities of terroristic threats. Not only is what took place a reckless violation of U.S. law, it’s extremely dangerous to the safety of everyone who flies in an airplane. The next pilot who gets a distress call from a tower may doubt the authenticity of the emergency -- which puts lives at risk. The FBI and our foreign partners will continue to hold perpetrators responsible for actions which directly threaten the lives of our US citizens and jeopardize the stability of our national security.”
According to the indictment filed today in Manhattan federal court:[1]
Overview of the Plot
While on its regularly-scheduled passenger route between Athens, Greece, and Vilnius, Lithuania, on May 23, 2021, the Flight was diverted to Minsk, Belarus by air traffic control authorities in Belarus in response to a purported threat of a bomb on board the aircraft. There was, in fact, no bomb on board the aircraft. Belarusian government authorities fabricated the threat as a means to exercise control over the Flight and force it to divert from its course toward the original destination of Vilnius, and instead land in Minsk. The purpose of the Belarusian government’s plot diverting the Flight to Minsk was so that Belarusian security services could arrest a Belarusian journalist and political activist (“Individual-1”)—who was critical of the Belarusian government, living in exile in Lithuania, and wanted by the Belarusian government on allegations of fomenting “mass unrest”—as well as Individual-1’s girlfriend (“Individual-2”). The Belarusian government conspiracy to divert the Flight was executed by, among others, officers of the Belarusian state security services working in coordination with senior officials of the Belarusian state air navigation authority.
The Defendants
LEONID MIKALAEVICH CHURO, OLEG KAZYUCHITS, ANDREY ANATOLIEVICH LNU, and FNU LNU, the defendants, are Belarusian government officials who were critical participants in this conspiracy. At all times relevant to the indictment, CHURO was the Director General of Belaeronavigatsia, the Belarusian state air navigation authority. CHURO personally communicated the false bomb threat to staff at the Minsk air traffic control center before the Flight even took off from Athens, and directed the Minsk air traffic control center to instruct the Flight to divert to Minsk in response to the purported threat. KAZYUCHITS was the Deputy Director General of Belaeronavigatsia, and his role in the conspiracy included directing Belarusian air traffic authorities to falsify incident reports regarding the diversion of the Flight in order to conceal the fabrication of the bomb threat and to omit the role of Belarusian security services in directing the diversion. ANDREY ANATOLIEVICH LNU and FNU LNU were officers of the Belarusian state security services. FNU LNU participated with CHURO in conveying the false bomb threat to the Minsk air traffic control tower, personally directed the specific radio communications from the Minsk tower to coerce the Flight to divert to Minsk, and relayed contemporaneous updates on the diversion of the Flight and the progress of the plot to ANDREY ANATOLIEVICH LNU, who was FNU LNU’s superior in the Belarusian state security services.
The Diversion of the Flight
On the day the flight was diverted, May 23, 2021, at approximately 6:45 UTC, CHURO and FNU LNU arrived at an operations room of the Minsk area air traffic control center with responsibility for Belarusian airspace. CHURO and FNU LNU conveyed the purported bomb threat to the controllers on duty, even though the Flight had not yet departed Athens. CHURO and FNU LNU specifically crafted the threat to coerce the pilots of the Flight to avoid continuing to their final destination of Vilnius, by claiming that the purported bomb would explode if the Flight landed there. In addition, CHURO and FNU LNU took the telling steps of directing that the Flight be diverted specifically to Minsk, and even though the Flight was still in the adjacent airspace of Ukraine, prohibiting the Minsk air traffic control center from making any notification to Ukrainian authorities of the purported bomb threat. This helped to ensure that the Flight would enter Belarusian airspace, and the plot to obtain and exercise control over the Flight could be executed. FNU LNU remained in the operations room at the Minsk air traffic control center from the time that he and CHURO conveyed the purported bomb threat and directed that the Flight divert to Minsk, until shortly before the Flight landed in Minsk after being diverted, in order to ensure that the diversion plot was successfully executed.
Once the Flight reached Belarusian airspace, FNU LNU instructed the senior air traffic controller who was responsible for communicating with the Flight to inform the pilots of the purported bomb threat, describe that the threat had been sent by email, and make specific statements to ensure the threat seemed credible and to coerce the Flight to divert to Minsk. For example, FNU LNU directed that the air traffic controller should falsely inform the pilots that the threat to the aircraft was a level “red”—the most specific and credible category of threat. FNU LNU provided updates on the execution of the plot in real time to his superior in the Belarusian security services, ANDREY ANTOLIEVICH LNU, at one point expressing concern that the pilots might be stalling for time and the Flight might soon leave Belarusian airspace, which would jeopardize the success of their diversion scheme. In response to the false information conveyed as part of the defendants’ plot, the pilots of the Flight ultimately declared an emergency and diverted to Minsk National Airport, in accordance with the directives from CHURO and FNU LNU.
Once the Flight landed in Minsk, FNU LNU left the air traffic control operations room and went to the airport tarmac. The Flight was met by Belarusian security services personnel, including individuals dressed in camouflage military-style uniforms, some of whom were wearing ski masks and carrying visible firearms. FNU LNU remained on the tarmac supervising the security forces and monitoring the screening of the passengers as they disembarked. Belarusian security services personnel then instructed the passengers to board one of several airport passenger buses.
Belarusian authorities boarded one of the buses and asked Individual-1 to come forward and identify himself, demonstrating that Belarusian authorities were aware that Individual-1 was on board the Flight. Individual-1 was escorted off the bus, where uniformed Belarusian officers separately searched him again on the airport tarmac. Belarusian officers then escorted Individual-1 back onto the bus and traveled with Individual-1 and the rest of the passengers to the airport terminal. Once the bus arrived at the terminal, the Flight’s passengers were detained in an area of the terminal secured by Belarusian security services. Additional Belarusian security officers met Individual-1 and the officers accompanying him, escorted Individual-1 away from the remaining passengers, and detained Individual-1. One group of passengers from the Flight, including multiple U.S. nationals and Individual-2, was detained in a narrow hallway for approximately three hours at the airport. During that time, Belarusian authorities also escorted Individual-2 away from the other passengers and detained Individual-2. The Flight was ultimately allowed to depart from Minsk and continue to its original destination of Vilnius later that evening. No bomb was ever on the Flight.
The Cover-Up
Soon after the diversion of the Flight, Belarusian government officials began to cover up what had happened. On or about May 24, 2021, the day after the Flight was diverted, CHURO appeared at a press conference in Belarus with other Belarusian officials to address the Flight’s diversion. During the press conference, CHURO stated falsely that the Belarusian authorities had “done everything according to their technology and their job responsibilities” in handling the Flight. In reality, CHURO knew that he and his co-conspirators had contrived the false bomb threat and had directed the Flight to divert to Minsk so that Belarusian security services could arrest Individual-1 and Individual-2. To further conceal the defendants’ plot, KAZYUCHITS directed Belarusian air traffic authorities to create false incident reports, including by doctoring the reports to misrepresent that the bomb threat was received at approximately the same time that the Flight entered Belarusian airspace and omit the fact that FNU LNU of the Belarusian security services was present in the operations room and directed activity during the Flight’s diversion.
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CHURO, KAZYUCHITS, ANDREY ANATOLIEVICH LNU, and FNU LNU, all of Belarus, are charged with conspiring to commit aircraft piracy, which carries a maximum penalty of life in prison, and a mandatory minimum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
The defendants remain at large. The United States looks forward to working with our foreign partners to bring them to justice.
Mr. Williams, Mr. Olsen, and Mr. Polite praised the outstanding efforts of a joint investigative team from the FBI’s New York Field Office, Counterintelligence Division and the New York Joint Terrorism Task Force, which principally consists of special agents from the FBI and detectives from the NYPD. They also thanked the FBI Legal Attaché Offices in Riga, Latvia; Warsaw, Poland; Athens, Greece; Kiev, Ukraine; and London, England; the National Transportation Safety Board; the Counterterrorism Section of the Department of Justice’s National Security Division; the Office of International Affairs and the Human Rights and Special Prosecutions Section of the Department of Justice’s Criminal Division; Poland’s Internal Security Agency and the Mazowieckie Regional Prosecutor’s Office; and Lithuanian authorities for their assistance with this investigation.
This prosecution is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys David W. Denton, Jr. and Elinor L. Tarlow are in charge of the prosecution, with assistance from Trial Attorneys Jennifer Burke of the Counterterrorism Section and Jamie Perry and Christian Levesque of the Human Rights and Special Prosecutions Section.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
[1] As the introductory phrase signifies, the entirety of the text of the indictment and the description of the indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Baltimore Non-Profit Owner Pleads Guilty to Federal Charges Related to the Gambling of Federal Funds Intended for His Youth Focused Non-Profit and for Filing False Tax ReturnsRead the Press Release
Baltimore, Maryland – Tyrone Sherrod, age 49, of Aberdeen, Maryland, pleaded guilty today to federal charges of wire fraud and filing a false tax return.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Bo Keane of the United States Secret Service - Baltimore Field Office.
“Sherrod gambled away federal grant funding intended to uplift Baltimore youth.” said U.S. Attorney Erek L. Barron. “Our office will continue to prosecute individuals who blatantly misappropriate federal funds intended for our youth and communities and use it to line their own pockets.”
According to his plea agreement, Sherrod owned and operated a non-profit that provided after-school and summer education and sports programs at a Baltimore elementary school from 2015 through 2019. In 2015, Sherrod applied for a grant funded by the U.S. Department of Education through the Maryland State Department of Education to help support those programs and was awarded approximately $1.1 million sub-program federal funding initiative to be paid over three years. The amounts to be paid each year were based on a detailed budget that accompanied the grant application. For each period, Sherrod’s non-profit received a 15% advance payment. The remaining funds were reimbursed every month after Sherrod submitted payroll registers, receipts, and a detailed budget summary referred to as a Project Invoice Summary.
Between 2016 and 2018 Sherrod electronically submitted 19 Project Invoice Summaries that falsely reported a total payroll of $746,005.02. Sherrod’s actual non-profit payroll during this period was $212,622.55. The falsities in the Project Invoice Summaries included the overstatement of wages earned, hours worked, and time periods of employment.
For example, on May 22, 2018, Sherrod submitted a project invoice summary for the month of April 2018. In that summary, Sherrod reported that his payroll totaled $54,200.85, when in reality, the actual payroll paid during this month was $1,000.
As stated in his plea agreement, Sherrod lost a significant amount of the grant funds intended for his non-profit gambling at casinos. For example, on March 5, 2018, Sherrod’s non-profit received a $39,747.29 payment in grant funds. The same day, Sherrod wrote three checks to cash totaling $28,500. Later that day, Sherrod entered a Maryland casino and gambled using $52,270, losing $34,345.
As detailed in his plea agreement, between 2016 and 2018, during the time Sherrod’s non-profit received grant funding, Sherrod incurred approximately $547,000 in gambling losses. During that same time frame, Sherrod withdrew $552,405 in cash from one casino’s ATM.
Additionally, Sherrod caused the filing of a false Form 1040 Individual Income Tax Returns for the years 2016, 2017, and 2018. Sherrod hired a certified personal accountant (CPA) to prepare tax returns and provided the CPA with documents containing fraudulent statements. For example, Sherrod provided the CPA with an Employee Expense Sheet that detailed fraudulent receipts and expenses for Sherrod’s work as a mentoring coach for the non-profit. Within the document, Sherrod treated himself as a contractor to influence the CPA to attach a Form Schedule C to each of the returns. Sherrod admitted that he did not inform the CPA of the grant funding. As a result of underreporting his gross receipts, Sherrod had additional tax due and owing of $148,088.
Sherrod faces a maximum sentence of three years in federal prison for filing a false tax return and a maximum of twenty years in prison followed up by three years of supervised release for wire fraud. U.S. District Judge George L. Russell has scheduled sentencing for June 17, 2022 at 2 p.m.
United States Attorney Erek L. Barron commended the FBI, the IRS, and the United States Secret Service. Mr. Barron thanked Assistant U.S. Attorneys Sean R. Delaney and Aaron S.J. Zelinsky who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Baldwin Hills Man Pleads Guilty to Criminal Charge for Fraudulently Obtaining Luxury Cars from Victims Who Wanted Out of Their LeasesRead the Press Release
LOS ANGELES – A Baldwin Hills man pleaded guilty today to a federal criminal charge for conning victims nationwide into giving him their high-end and exotic vehicles with bogus promises he would find other people to take over their car leases.
Geoffrey Eldridge Hull, 41, pleaded guilty to one count of wire fraud.
According to his plea agreement, from April 2016 to November 2019, Hull marketed himself and his companies as being able to find people to take over leases for high-end and exotic car – such as Bentleys, Ferraris and Maseratis – from individuals no longer wishing to continue those leases. Despite assuring victims that his venture was successful, Hull and his companies did not find people to take over these leases.
Hull agreed to cover monthly lease payments and promised leaseholders that he would quickly find credit-qualified buyers to legally assume the lease through the original finance company. Hull used a longtime friend and business associate to vouch for the quality of the program.
In fact, Hull offered the luxury cars for rent and passed little of the rent money to the original leaseholders, who were still responsible for lease payments. Furthermore, Hull made few, if any, timely car lease payments.
Hull ignored victims’ requests for the return of their vehicles, prompting some to make stolen car reports to law enforcement agencies. When some victims’ cars were returned after law enforcement seizures, repossession and other means, the cars were often damaged, had incurred toll and parking violations, or had been driven over the allotted mileage.
When victims posted negative reviews online about Hull and his company, Hull would change his company name and resume the scheme. The company names Hull used to operate his scheme included Exotic Lease Transfer, Luxe Lease Transfer, Shift Lease, Veer Lease, Torque Transfer, Haven Transfer, Early Lease, and Open Lease Transfer. Hull, who has three prior convictions for grand theft auto, also used a series of aliases as part of the scheme, including “Geoff Eldredge,” “Geoff Eldridge,” “Jefrii Eldridge,” “Geoffrey Hulle,” “Jeff Bluthenthal,” and “Jeff H.”
In total, Hull defrauded at least 128 individuals and caused an actual loss of at least $1,560,321.
United States District Judge Fernando M. Olguin has scheduled a May 26 sentencing hearing, at which time Hull will face a statutory maximum sentence of 20 years in federal prison.
Homeland Security Investigations investigated this matter.
Assistant United States Attorney Carolyn S. Small of the Major Frauds Section is prosecuting this case.
Attorney Pleads Guilty to Fraud Conspiracy and Filing False Tax ReturnRead the Press Release
RALEIGH, N.C. – A Durham attorney pleaded guilty today conspiracy to commit multiple fraud schemes and filing a false federal income tax return.
Tiffany Dawn Russell, age 43, was originally indicted in November 2020 for conspiracy to commit bank fraud, bank fraud, access device fraud, and misuse of a social security number. According to the Indictment, Russell and her co-conspirators applied for loans and credit cards with social security numbers that were not issued to them by the Social Security Administration. By doing so, they created new credit profiles or synthetic identities for themselves to open financial accounts and make purchases from retailers without any intention of paying for the items and services obtained. Russell was charged with using a synthetic identity to purchase a BMW and to obtain a credit card which she used to pay for her 2016 butt augmentation surgery.
Co-conspirators Rahne Cooper and Darius Hinton previously pled guilty to committing bank fraud for their illegal use of synthetic identities.
Russell agreed to plead guilty to participating in an extensive, multi-year conspiracy to obtain more than $2.5 million from at least 12 financial institutions and the United States Small Business Administration. According to the government, Russell used a synthetic identity because she had poor credit. Beginning in August 2017, Russell embarked on a new scheme, known as credit washing, to remove legitimate debt accounts from her credit history by falsely claiming she was the victim of identity theft and had not opened those accounts. Once the credit reporting agencies removed those accounts, her credit score improved, enabling her to obtain credit. She and her unnamed co-conspirators continued to make these false claims of identity theft, demanding the credit reporting agencies remove newly opened accounts. As a result, financial institutions relied on these washed credit reports in deciding whether to extend her credit.
Russell also provided fabricated documents when applying for mortgages to purchase three properties, including an oceanfront residence in Nags Head, North Carolina. Russell gave doctored bank statements and inflated pay stubs to make it appear she had substantial liquid assets and the ability to pay the loans.
Finally, between March 30, 2020 and June 29, 2020, Russell and others fraudulently obtained more than $1,000,000 in loans under the CARES Act, which was enacted by Congress to provide emergency financial assistance to millions of Americans suffering from the COVID-19 pandemic. The ten loan applications, including two for her law firm, contained false representations relating to the number of employees, monthly payroll, revenue, and expenses.
Russell used these illegally obtained proceeds to make the down payment on the Nags Head property and purchase the five other properties in North Carolina, Maryland and Alabama. Russell also used these ill-gotten gains to pay outstanding personal debt, unrelated to any business entity.
“This case is about a North Carolina attorney who funded her lavish lifestyle with an array of frauds,” commented U.S. Attorney Michael Easley. “She took advantage of the global pandemic to fraudulently secure over a million dollars in COVID relief funds, a crime that hurts all taxpayers. The case is also another reminder that it is illegal to defraud banks using so-called “Credit Profile Numbers,” “Credit Privacy Numbers,” or “Credit Protection Numbers,” (CPNs) or other tricks. It is a federal crime with the potential to yield years in federal prison. Our office will continue to prioritize economic crimes, particularly crimes against taxpayers and government programs intended for those in need.”
"Tiffany Russell's website says 'she knew at an early age that she had a passion for helping people.' Unfortunately, at some point she lost sight of that noble vision and began to help herself to other people's money, including $1 million from the federal CARES act intended to help business owners. The FBI and our partners will always work to ensure no one misuses the systems in place to help honest people succeed," said Robert R. Wells, FBI Special Agent in Charge.
“There is one word that describes the defendant’s action: Greed,” said Assistant Special Agent in Charge, Brian G. Thomas of IRS-Criminal Investigation’s Charlotte Field Office. “The American tax system is based on a voluntary compliance and the government is designed to provide services to people in need. IRS special agents work diligently to identify, investigate and recommend prosecution on criminals who take advantage of the system. In Ms. Russell’s case, her desire and fraudulent zealous sprees for personal luxuries were obtained by defrauding the system.”
Russell pleaded guilty to Conspiracy to Commit Mail, Wire and Financial Institution Fraud for which she faces a maximum penalty of 30 years in prison and a $1,000,000 fine. She faces an additional three years in prison and $250,000 fine for Filing a False Tax Return. When Russell is sentenced during the 4/18/2022 term of court, the court must impose a mandatory restitution order of $2,041,605 to the victim financial institutions, the Small Business Administration and the Internal Revenue Service. As part of her plea agreement, Russell consented to the forfeiture of an additional $2,019.571 to the United States.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. Magistrate Judge Robert T. Numbers II accepted the plea. The Federal Bureau of Investigation and the Internal Revenue Office are investigating the case and Assistant U.S. Attorney Susan B. Menzer is prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-cr-00505-D-3.
Ashland man sentenced for assaulting elderly man on Northern Cheyenne Indian ReservationRead the Press Release
BILLINGS — An Ashland man who admitted to assaulting an elderly man on the Northern Cheyenne Indian Reservation in 2019 was sentenced today to time served of approximately 30 months, to be followed by three years of supervised release, U.S. Attorney Leif M. Johnson said.
Terry Lynn Braine, 56, pleaded guilty in July 2021 to assault resulting in serious bodily injury.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that Braine assaulted an elderly man identified as John Doe, who was in his 80s, in an Ashland residence on April 7, 2019. Braine hit Doe numerous times and the victim fell to the ground. The victim was taken to the hospital for treatment of injuries.
Assistant U.S. Attorney Bryan T. Dake prosecuted the case, which was investigated by the Bureau of Indian Affairs.
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Appleton Felon Indicted on Federal Firearms ChargeRead the Press Release
United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on January 19, 2022, a federal grand jury returned an indictment against Mark A. Dreier (age: 64) of Appleton, Wisconsin.
The indictment alleges that Dreier, a convicted felon, possessed a dozen firearms in violation of Title 18, United States Code, Section 922(g)(1) and 924(a)(2). If convicted of possessing the firearms, he faces up to ten years imprisonment and a $250,000 fine.
This case was investigated by the Outagamie County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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For further information contact:
(414) 297-1700
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Appeals Court Affirms Conviction, Sentence, of Former Newark Police OfficerRead the Press Release
NEWARK, N.J. – The Third Circuit Court of Appeals today affirmed by nonprecedential opinion the convictions and sentence of a former Newark police offer who paid kickbacks to the executive director of the Newark Watershed Conservation Development Corporation (NWCDC), U.S. Attorney Philip R. Sellinger announced.
Janell Robinson, 46, of Newark, was sentenced by U.S. District Judge Susan D. Wigenton on Jan. 7, 2021, to 108 months in prison, three years of supervised release and forfeiture of $288,950. Robinson was convicted at trial of one count of conspiracy to defraud the NWCDC facilitated by use of mails and wire transmissions, two counts of mail fraud, and one count of conspiracy to commit extortion under color of official right affecting interstate commerce, following a jury trial before Wigenton.
Robinson appealed her conviction and sentence, arguing that exculpatory evidence would have shown there could not have been any extortion under color of official right because the NWCDC was neither a government agency nor a department of the City of Newark. The Third Circuit rejected that argument, pointing out that under New Jersey law, entities like the NWCDC are deemed to provide essential governmental functions on behalf of a city and exercise the powers and responsibilities of the city with respect to provision of water supply services.
The government was represented on appeal by Assistant U.S. Attorneys Bruce P. Keller of the Special Prosecutions Division and Norman Gross of the Appeals Division in Camden and, at trial, by Assistant U.S. Attorney Leslie Schwartz of the Special Prosecutions Division.
The Court of Appeals decision is attached.
21-Year-Old Sioux City Man Sentenced to More Than 7 Years in Federal Prison for Illegal Possession of a FirearmRead the Press Release
A Sioux City man, who shot a man in the calf after an argument, was sentenced January 7, 2022, to more than 7 years in federal prison.
Alejandro LaPointe, also known as, “Lil Aztek” or “Lil Tek”, age 21, from Sioux City, Iowa received the prison term after an August 23, 2021, guilty plea to possession of a firearm by a prohibited person.
Evidence in the case revealed on or about February 10, 2021 a victim told police he had been chased from a residence, subjected to a warning shot, threatened with a gun, and actually shot in the calf as he fled. The victim identified “Lil Tek” (i.e., LaPointe) as the shooter. Outside of the residence, where the shooting took place, a blood trail, a mushroomed bullet, and bullet jacket fragment were found. LaPointe, along with others, was discovered inside the home. He was shirtless but wearing pants. He was searched by police and a shell casing was found in LaPointe’s pants. During a subsequent search of the home, a .357 revolver, wrapped in a shirt, was discovered in a hole in a wall. A quantity of methamphetamine, and a syringe were also located in other areas of the residence. Forensic analysis confirmed the .357 revolver had fired the mushroomed bullet and jacket fragment found outside the back door of the residence and was consistent with the spent casing found on LaPointe.
LaPointe has an extensive criminal history including convictions for Arson, Felon in Possession of a Firearm, Absence from Custody, and Eluding a Peace Officer. The details of these convictions include the fact that LaPointe attempted to burn a gang rival to death in one attack and threw Molotov cocktails during another.
LaPointe was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. LaPointe was sentenced to 90 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
LaPointe is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Sioux City, Iowa Police Department and was prosecuted by Assistant United States Attorney Forde Fairchild
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4033.
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15-Year Sentence for South Florida Resident Who Attempted to Provide Material Support to TerroristsRead the Press Release
Miami, Florida – U.S. District Judge Jose E. Martinez has sentenced 29-year-old Samuel Baptiste to 15 years in federal prison for attempting to materially support terrorism. The judge ordered that the sentence run consecutive to the 80-month sentence that Baptiste is currently serving for being a felon in possession of a firearm.
According to court documents, in November 2016, Baptiste provided information on constructing explosive devices to persons he believed were acting on behalf of ISIS. He shared the information by posting it on internet links and portions of a munitions manual.
On October 22, 2021, Baptiste admitted his conduct and pled guilty to violating 18 U.S.C. 2339A.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami, announced the sentence.
FBI Miami investigated the case. The case is being prosecuted by Assistant U.S. Attorneys Marc S. Anton and Michael Thakur.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case no. 18-cr-20613.
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Wiscasset Woman Sentenced for Illegally Purchasing a FirearmRead the Press Release
BANGOR, Maine: A Wiscasset woman was sentenced today in federal court for making false statements during the purchase a firearm, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge Lance E. Walker sentenced Laura Love, 44, to three years of probation. Love pleaded guilty on September 1, 2021.
According to court records, in April 2019, Love, formerly of the Augusta area, purchased a 9 mm pistol from a federally licensed firearms dealer in Windsor. When completing the sale, Love filled out a Firearms Transaction Record in which she falsely reported that she was the actual purchaser of the firearm. She was actually purchasing the firearm for someone else. It is a federal felony to knowingly make a false statement in connection with the purchase of a firearm from a federally licensed dealer.
This Augusta Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
The prosecution is part of the Department of Justice’s Project Safe Neighborhoods (PSN) initiative. PSN is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, community leaders and other stakeholders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. PSN is coordinated by the U.S. Attorneys’ Offices in the 94 federal judicial districts throughout the 50 states and U.S. territories. PSN is customized to account for local violent crime problems and resources. Across all districts, PSN follows four key design elements of successful violent crime reduction initiatives: community engagement, prevention and intervention, focused and strategic enforcement, and accountability.
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Urbana Man Charged with Child Pornography CrimesRead the Press Release
URBANA, Ill. – A grand jury today indicted an Urbana, Illinois, man, John Schreyer, 47, of the 300 block of Spring Circle, for allegedly transporting and possessing of child pornography between June and December 2021.
The indictment alleges that Schreyer transported visual depictions of minors engaged in sexually explicit conduct on June 14, 2021, and possessed child pornography on December 16, 2021. According to the affidavit in support of the criminal complaint, Schreyer used an Internet-based peer-to-peer network to traffic videos of prepubescent children engaged in sex acts with adult men.
Schreyer was arrested in Urbana on December 16, 2021, and appeared before U.S. Magistrate Judge Eric I. Long for a detention hearing on December 21, 2021, at which the judge ordered that he be detained. Schreyer has remained in the custody of the U.S. Marshals Service since his arrest.
If covicted, the offense of transportation of child pornography carries a statutory penalty of at least five years to a maximum of 20 years in prison; for possession of child pornography, the penalty is up to 10 years in prison.
Agencies participating in the investigation include the Federal Bureau of Investigation’s Springfield Office and the Urbana Police Department. Assistant U.S. Attorney Elly M. Peirson is representing the government in the prosecution.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a Department of Justice initiative led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), to marshal federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney's Office Collects over $38 Million in Criminal and Civil Actions in Fiscal Year 2021Read the Press Release
PHOENIX, Ariz. – United States Attorney Gary Restaino announced today that the District of Arizona collected $38,381,652 in criminal and civil actions in Fiscal Year 2021. Of this amount, $24,125,534 was collected in criminal actions and $14,256,117 was collected in civil actions.
Additionally, the District of Arizona worked with other U.S. Attorneys’ Offices and components of the Department of Justice to collect an additional $180,168,099 in cases pursued jointly by these offices. Of this amount, $10,637 was collected in criminal actions and $180,157,462 was collected in civil actions.
Included in the civil collections was a settlement with TriWest Healthcare Alliance Corp. in which TriWest agreed to pay the United States $179,700,000 to resolve claims that it received overpayments from the U.S. Department of Veterans Affairs (VA) in connection with its administration of certain VA health care programs.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s Office for the District of Arizona, working with partner agencies and divisions, collected $4,755,309 in asset forfeiture actions in FY 2021. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
RELEASE NUMBER: 2022-005_FY21 Collections
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Two Men Charged in Separate Incidents of Misconduct on AirlinesRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned two indictments today and yesterday charging an Alexandria man and a New York City man in separate incidents of criminal conduct aboard aircraft arriving at Washington Dulles International Airport.
According to the indictment filed today, on December 2, 2021, Elias Fethamlk, 40, knowingly interfered with a flight attendant’s duties by disregarding the flight attendant’s instructions and assaulting the flight attendant while on board an Ethiopian Airlines flight traveling from Dublin, Ireland to Dulles International Airport.
Fethamlk is charged with one count of interference with flight crew members and attendants, and one count of simple assault in the special aircraft jurisdiction of the United States. If convicted, he faces a maximum penalty of 20 years in prison.
A separate indictment filed yesterday charges Ivan Lopez, Jr., age 26, with sexually assaulting another passenger onboard a commercial flight
According to court documents, it is alleged that Lopez was a passenger on a commercial flight from Las Vegas McCarran International Airport to Washington Dulles International Airport on December 24, 2021. During the flight, the passenger seated next to Lopez fell asleep. The indictment alleges that she awoke to Lopez repeatedly rubbing her right breast. When the passenger opened her eyes, she allegedly observed Lopez leaning over her and his right hand was placed on her right breast. The passenger allegedly yelled at Lopez and he moved to the back of the aircraft, where he allegedly admitted to a flight attendant that he sexually assaulted the woman.
Lopez is charged with abusive sexual contact aboard an aircraft in flight. If convicted, he faces a maximum penalty of two years in prison.
Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Michael Glasheen, Special Agent in Charge of the FBI Washington Field Office Counterterrorism Division, made the announcement.
Special Assistant U.S. Attorney Caylee Campbell and Assistant U.S. Attorney Amanda Lowe are prosecuting the case against Fethamlk. Special Assistant U.S. Attorney Rachel L. Rothberg and Assistant U.S. Attorney Marc J. Birnbaum are prosecuting the case against Lopez.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22 cr 006 and Case No. 1:22 cr 10.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Two Everett Men Sentenced for Money Laundering ConspiracyRead the Press Release
BOSTON – Two Everett men were sentenced today for their participation in a scheme to launder money that was fraudulently obtained from customer bank accounts.
Lindsley J. Georges, 27, and Dave Guillaume, 24, were each sentenced by U.S. District Court Judge Allison D. Burroughs to time served and three years of supervised release, with six months spent in home confinement. Georges and Guillaume were also ordered to pay restitution in the amounts of $667,243 and $457,243, respectively. On Sept. 1, 2021, the defendants pleaded guilty to one count each of money laundering conspiracy.
In December 2017 and January 2018, Georges and Guillaume collectively deposited over $600,000 in checks into business bank accounts that they controlled. These checks were provided to Georges and Guillaume by other co-conspirators who had fraudulently withdrawn those funds from customer accounts at other banks. Georges and Guillaume subsequently withdrew a portion of the funds in cash and checks.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, made the announcement. Assistant U.S. Attorneys Leslie A. Wright and Christopher J. Markham of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
Tri City Bombers sentenced for racketeering crimesRead the Press Release
HOUSTON – Two South Texas men have pleaded guilty and received significant sentences for their convictions related to an ongoing racketeering conspiracy, announced U.S. Attorney Jennifer B. Lowery.
Mike Bueno, 50, Edinburg, and Octavio Muniz, 45, McAllen, admitted their roles in the TCB racketeering conspiracy today and were immediately sentenced.
Today, U.S. District Judge Sim Lake sentenced Bueno 262 months in federal prison, while Muniz received a 151-month term of imprisonment.
In handing down the sentences, Judge Lake found Bueno to be a ranking member of the Tri City Bombers (TCB). The court noted his involvement in an ongoing marijuana trafficking conspiracy, a carjacking and a home invasion burglary that resulted in the death of the homeowner. The homeowner’s son was also shot, but survived and was present in court for today’s hearing.
The court found Muniz to be involved in the distribution of marijuana and an attempted murder of a woman the enterprise was hired to kill. The victim was shot six times, but survived.
The TCB is a national gang active in multiple states that was formed in the early 1980s in the Pharr, San Juan and Alamo areas of South Texas. The TCB have an organized decision-making hierarchy, including a person in charge of each city and leaders within the organization who determine whether its members violated the gang’s rule and deserved punishment. To instill loyalty, including participation in gang’s criminal activities and adherence to its strict rule structure, TCB leaders determine and order the severe beating of members and associates for acts of disobedience or non-observance of TCB rules.
The scope of the TCB’s crimes is wide-ranging and consistent in its nationwide operation. This RICO conspiracy includes murder, attempted murder, drug trafficking, firearm crimes, money laundering and other crimes in furtherance of the organization’s enterprise. The TCB brought money into the gang through murders, drug trafficking, home invasion robberies and money laundering.
To date, 25 individuals have been convicted in the case.
Bueno and Muniz have been in custody since their arrests and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI led the Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed “Operation Bomb Disposal,” along with IRS-CI, Drug Enforcement Administration, Customs and Border Protection, Texas Alcoholic Beverage Commission, Hidalgo County Sheriff’s Office and police departments in McAllen, Mission, Edinburg, Weslaco and Pharr. 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 on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorneys Anibal J. Alaniz and Casey N. MacDonald of the Southern District of Texas are prosecuting the case.
Tax preparer sentenced to prison for fraudulent deductions on federal income tax returnsRead the Press Release
Seattle – A 58-year-old resident of Pacific, Washington, was sentenced today in U.S. District Court in Seattle, to a year and a day in prison for 14 counts of aiding and abetting the filing of false tax returns, announced U.S. Attorney Nick Brown. Jean Mpouli worked for 25 years as an aviation inspector for the Federal Aviation Administration (FAA), while on the side he ran a tax preparation business with hundreds of clients, offering his services primarily to African immigrants. At the 3-day trial in September 2021, prosecutors showed how Mpouli falsely increased deductions for unreimbursed business expenses and educational expenses to boost his clients’ tax refunds. Mpouli took a percentage of the refund as his fee, so the higher the refund, the larger the fee. Further, on his personal tax returns, Mpouli hid over $200,000 of revenue generated from his illegal side business.
At today’s sentencing hearing U.S. District Judge John C. Coughenour ordered Mpouli to pay $31,296 in restitution, and imposed one year of supervised release following the prison term.
“Motivated purely by greed, Mr. Mpouli took advantage of the trust placed in him by his community – African immigrants and their descendants,” said U.S. Attorney Nick Brown. “His clients were particularly vulnerable to being used in this way, as they were unfamiliar with U.S. tax law. Mr. Mpouli placed his clients in harm’s way, exposing them to audit, fines and penalties, and potential criminal investigation.”
According to records filed in the case and testimony at trial, in late 2016 an analyst with the IRS noted that an unusually large number of returns prepared by Mpouli claimed deductions for unreimbursed business expenses. In 2017, the IRS Criminal Investigation Division sent an undercover officer into the business to get an up-close look at how Mpouli prepared tax returns. Using the W-2 information the undercover officer supplied, Mpouli rightly determined the agent owed approximately $800 in taxes. However, Mpouli then offered to enter in approximately $34,000 in fraudulent expenses in order to boost the undercover officer’s refund to more than $5,600. Mpouli explained that the undercover officer should consider the refund as a “loan” in the event the officer was audited by the IRS. Mpouli then accepted $250 in cash as his fee for preparing the fraudulent return.
When agents executed court authorized search warrants on the business in September 2017, they found more than 1,200 personal tax returns on Mpouli’s computers. Hundreds of the tax returns show suspiciously high amounts of unreimbursed business expenses and education expenses. In one example, Mpouli claimed a client had driven more than 33,000 miles for business in one year. However, the client did not own a vehicle, did not have a driver’s license, and had never driven a vehicle in the U.S.
When investigators contacted a random sampling of the clients who had used Mpouli’s services, they said they were not aware of the extent of the deductions he had claimed on their behalf. Many did not own vehicles even though Mpouli listed unreimbursed car expenses. Others never attended the educational institution listed on the returns. In some instances, he claimed children were attending the secondary education institution, even though the children were actually enrolled in daycare or elementary school. The clients said Mpouli did not discuss the returns with them before filing, and when they were notified that they were being audited, he refused to assist them.
According to financial records, during the time period of the fraud, Mpouli was sending more than $300,000 to his native Cameroon to pay for the construction of an apartment building.
In all, the government estimated the tax loss to be nearly $3.5 million.
“When those we trust to prepare our taxes take advantage of their clients for their own greed, everybody is harmed. We rely on our tax system to provide resources to fund critical services that we all rely on,” said Bret Kressin, IRS Criminal Investigation (IRS:CI) Special Agent in Charge, Seattle Field Office. “Mr. Mpouli knew on a personal level how critical tax revenue is to public safety, as his prior career as a government employee was funded by taxpayer dollars. However, Mr. Mpouli chose to abuse the system in spite of this for his own illicit gain. Today’s sentence is a reminder that IRS:CI takes attacks on our tax system seriously, because the safety and well-being of our communities are what is at stake.”
The case was investigated by Internal Revenue Service: Criminal Investigation. The case was prosecuted by Assistant United States Attorneys Lyndsie Schmalz and Frances Franze-Nakamura.
St. Louis man pleads guilty for his role in the armed robbery of a local fast-food establishmentRead the Press Release
ST. LOUIS – United States District Court Judge Stephen R. Clark accepted a plea of guilty from Keith Austin, age 25, on today’s date for knowingly robbing a commercial establishment and aiding and abetting his co-defendant, knowing his co-defendant was armed during the robbery. A grand jury in the Eastern District of Missouri previously indicted Austin in August 2020. Judge Clark set sentencing for May 10, 2022.
According to the indictment, on September 18, 2019, Austin and his co-defendant robbed the McDonald's Restaurant located at 1119 North Tucker, Saint Louis, Missouri, within the Eastern District of Missouri. Both suspects were wearing masks and one was wearing a grey backpack.
Austin and his co-defendant left the McDonald's in a silver Chevrolet Impala. Austin removed the cash in the cash register drawer (approximately $300) and threw the drawer in a nearby sewer.
A few days after the armed robbery, Austin was driving the silver Chevrolet Impala and was stopped by St. Louis Metropolitan Police Department officers. Officers discovered McDonald's hats and a McDonald's paycheck stub addressed to Austin’s co-defendant in the Impala. Officers subsequently searched Austin’s home and located a grey backpack that looked like the backpack worn during the robbery. Located in the backpack were two masks, consistent with the masks worn during the robbery. Austin later confessed to his participation in the armed robbery.
The case was investigated by the Federal Bureau of Investigation and the St. Louis Metropolitan Police Department.