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Wednesday 10 November 2021
Top Lev Tahor Leaders Convicted at Trial of Child Sexual Exploitation and KidnappingRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that NACHMAN HELBRANS and MAYER ROSNER were convicted in White Plains federal court of child sexual exploitation offenses and kidnapping following a four-week jury trial. The defendants, leaders of an extremist Jewish sect called Lev Tahor, masterminded a scheme to kidnap a 14-year-old girl (“Minor-1”) and a 12-year-old boy (“Minor-2”) from their mother in Woodridge, New York. The defendants then smuggled the children across the U.S. border to Mexico, where they reunited Minor-1 with her adult “husband” to allow him to continue his illegal sexual relationship with Minor-1.
U.S. Attorney Damian Williams said: “Nachman Helbrans and Mayer Rosner brazenly kidnapped two children from their mother in the middle of the night to return a 14-year-old girl to an illegal sexual relationship with an adult man. Today’s verdict makes clear that our Office – and our law enforcement partners – will not be deterred from achieving justice for victims of child sexual exploitation.”
According to the allegations contained in the Superseding Indictment, other court filings, and the evidence presented at trial:
NACHMAN HELBRANS and MAYER ROSNER are U.S. citizens and senior leaders of Lev Tahor, an extremist Jewish sect that has been located in several different jurisdictions, including New York, Israel, Canada, Mexico, and Guatemala. HELBRANS became the leader of Lev Tahor in or about 2017 and ROSNER served as a top lieutenant. After HELBRANS and his leadership team took over, they seized tight control over the group and embraced several extreme practices, including child marriages and underage sex.
In or about 2017, HELBRANS arranged for his then-12-year-old niece, Minor-1, to be “married” to a then-18-year-old man. They were religiously “married” the following year, when Minor-1 was 13 and her “husband” was 19, and immediately began a sexual relationship with the goal of procreation. They were never legally married. Lev Tahor leadership, including HELBRANS and ROSNER, required young brides to have sex with their husbands, to tell people outside Lev Tahor that they were not married, to pretend to be older, and to deliver babies inside their homes instead of at a hospital, to conceal the mothers’ young ages from the public.
In or about October 2018, the mother of Minor-1 determined that it was no longer safe for her children to remain in the Lev Tahor community in Guatemala. The mother escaped from the group’s compound and arrived in the United States in early November 2018. Also in November 2018, a Brooklyn family court granted her sole custody of the children and prohibited the children’s father, a leader within Lev Tahor, from communicating with the children.
After the mother fled and settled in New York with her children, the defendants devised a plan to return Minor-1, then 14 years old, to Guatemala and to her then-20-year-old “husband” so that they could resume their sexual relationship and procreate. Then, in December 2018, they kidnapped Minor-1 and her brother in the middle of the night from a home in upstate New York and transported them through various states and, eventually, to Mexico. The defendants used disguises, aliases, drop phones, fake travel documents, an encrypted application, and a secret pact to execute on their kidnapping plan. At the time of the kidnapping, Lev Tahor leadership was seeking asylum for the entire Lev Tahor community in the Islamic Republic of Iran.
Following a three-week search involving hundreds of local, federal, and international law enforcement entities, Minor-1 and Minor-2 were recovered in Mexico and returned to New York. Then, in or about March 2019 and March 2021, members of Lev Tahor again tried to kidnap the children.
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NACHMAN HELBRANS, 39, of Guatemala, and MAYER ROSNER, 45, of Guatemala, were convicted of (1) conspiring to transport a minor with intent to engage in criminal sexual activity, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; (2) conspiring to travel with intent to engage in illicit sexual conduct, which carries a maximum sentence of 30 years in prison; (3) two counts of international parental kidnapping, which carries a maximum sentence of three years in prison for each count; and (4) one count of conspiring to commit international parental kidnapping, to unlawfully use a means of identification, and to enter by false pretenses the secure area of an airport, which carries a maximum sentence of five years in prison. HELBRANS was also convicted of an additional count of international parental kidnapping in connection with an attempt to kidnap Minor-1 in March 2019.
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 the judge.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation, the New York State Police, the Sullivan County District Attorney’s Office, United States Customs and Border Protection, the Rockland County Sheriff’s Department, the Village of Spring Valley Police Department, Special Agents with the U.S. Attorney’s Office for the Southern District of New York, the Department of State, the Transportation Security Administration, and our law enforcement partners in Mexico, Guatemala, Canada, and Israel.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Sam Adelsberg, Jamie Bagliebter, Jim Ligtenberg, and Daniel Tracer, and paralegal specialist Shannon Becker, are in charge of the prosecution.
Three Individuals Charged with $3.5 Million Scheme to Collect Contributions for Fraudulent Political Action CommitteesRead the Press Release
Two California men and one Texas man have been indicted by a federal grand jury in Austin, Texas, for their alleged involvement a scheme to operate two fraudulent political action committees (PACs) during the 2016 federal election cycle. The indictment was unsealed yesterday after being returned on Nov. 2.
As alleged in the indictment, Matthew Nelson Tunstall, 34, of Los Angeles, California; Robert Reyes, Jr., 38, of Hollister, California; and Kyle George Davies, 29, of Austin, Texas, solicited contributions to Liberty Action Group PAC and Progressive Priorities PAC under the guise that the PACs were affiliated with or meaningfully supporting specified candidates for public office. Between January 2016 and April 2017, the defendants obtained approximately $3.5 million from unwitting donors based on false and misleading representations and used those funds to enrich themselves and to pay for additional fraudulent advertisements soliciting donations. Tunstall and Reyes are also alleged to have laundered more than $350,000 in illegal proceeds from the scheme through a third-party vendor to conceal the use of those funds for their own benefit.
Tunstall and Reyes are both charged with conspiracy to commit wire fraud and to make a false statement to the Federal Election Commission (FEC), multiple counts of wire fraud, and multiple counts of money laundering. Davies is charged with conspiracy commit wire and to make a false statement to the FEC, and multiple counts of wire fraud. Tunstall made his initial appearance yesterday in the U.S. District Court for the Central District of California; Reyes and Davies will make their initial appearances today in the U.S. District Courts for the Northern District of California and the Western District of Texas, respectively. If convicted of all counts, Tunstall and Reyes both face a maximum total penalty of 125 years in prison. If convicted of all counts, Davies faces a maximum total penalty of 65 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office made the announcement.
The investigation was conducted by the FBI’s San Antonio Division, Austin Resident Agency. Trial Attorneys Rebecca M. Schuman and Michael N. Lang of the Criminal Division’s Public Integrity Section are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Thirteen Gangster Disciples Members, Associates and Drug Suppliers Charged in Multistate Drug Trafficking ConspiracyRead the Press Release
BOSTON – Thirteen individuals were charged today in connection with a Lawrence-based drug trafficking conspiracy involving fentanyl, cocaine, suboxone and counterfeit prescription pills containing methamphetamine.
According to court documents, the investigation, which began in August 2020, intercepted communications on numerous cellphones between leaders, members and drug suppliers of the Gangster Disciples street gang operating in the greater Lawrence area. The investigation revealed a large multi-object drug conspiracy centering around the Gangster Disciples in Lawrence, Haverhill and Methuen. According to the charging documents, the defendants actively distributed fentanyl, cocaine and suboxone with drug trafficking activities extending from Massachusetts into Maine and southern New Hampshire as well as into the Essex County Jail. It is also alleged that Justin Suriel and Steven Rios conspired to kidnap, hold captive and traumatize a victim in retaliation for the suspected theft of Rios’ dog.
The investigation also identified defendants as alleged suppliers of methamphetamine disguised as counterfeit Adderall and oxycodone pills. Today, investigators seized four gallon-sized bags of counterfeit Adderall pills containing methamphetamine, weighing approximately 9.67 pounds. An additional gallon-sized bag of counterfeit oxycodone pills containing fentanyl was also seized.
“These defendants allegedly trafficked drugs of all kinds, making money at the expense of addicts and dragging down our community,” said Acting United States Attorney Nathaniel R. Mendell. “Today’s arrests stop a poly-drug pipeline that supplied street-level dealing across New England. Local, state and federal law enforcement worked together to make this happen, and we are not stopping. To the drug traffickers, we say: you will be prosecuted and you will be brought to justice.”
“Today’s arrests targeted many of the key leaders, members, and associates of the Gangster Disciples in the Merrimack Valley who we believe have flooded our neighborhoods with their destructive poison and fueled the violence on city streets under the guise of defending their so-called turf,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Our North Shore Gang Task Force has seized their profits and shut down their distribution networks, and we will not hesitate to use every tool we have to stop others like them from threatening the safety our communities.”
The following individuals were indicted on conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl, 500 grams or more of cocaine and suboxone:
- Justin Suriel, a/k/a “Chachi,” 25, of Methuen;
- Nathaniel Infante, a/k/a “Natti,” 27, of Methuen;
- Jonathan Cruz, a/k/a “Trippy,” 35, of Lawrence;
- Felix Rodriguez, 24, of Methuen;
- Steven Rios, a/k/a “Doofy,” 24, of North Andover;
- Cirio Junior Dolores-Acevedo, a/k/a “Domi,” 38, of Miami, Fla.;
- Celino Guzman Cabreja, 31, of Lawrence;
- Anthony Martinez, 23, of Haverhill;
- Christopher Riley, 38, of Brockton;
- Elijah Declet, a/k/a “Evil,” 24, of Haverhill; and
- Emmanuel Lys, 32, of Watertown.
Suriel and Rios were also charged with one count each of kidnapping conspiracy. Declet was also charged with distribution and possession with intent to distribute methamphetamine.
Two additional defendants were charged by criminal complaint for their involvement in the Gangster Disciples’ trafficking operations. Yoel Mercedes, a/k/a “Capo,” 38, of Lawrence, was charged with distribution of 40 grams or more of fentanyl. Vando Gvozdarevic, 29, of Chelmsford, was charged with possession with intent to distribute 500 grams or more of methamphetamine.
The charge of conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl, 500 grams or more of cocaine and suboxone provides for a sentence of at least five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release and a fine of $5 million. The charge of possession with intent to distribute 500 grams or more of methamphetamine provides for a sentence of at least 10 years and up to life in prison, at least five years and up to a lifetime of supervised release and a fine of $10 million. The charge of kidnapping conspiracy provides for a sentence of up to a lifetime in prison, up to five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Mendell, FBI SAC Bonavolonta and Colonel Christopher S. Mason, Superintendent of the Massachusetts State Police, made the announcement today. The investigation was led by the FBI North Shore Gang Task Force and the Massachusetts State Police. Valuable assistance was provided by the Drug Enforcement Administration, New England Field Division; Homeland Security Investigations in Boston; Maine Drug Enforcement Agency; the Essex County Sheriff's Office; and the Methuen, Andover, Haverhill, Lawrence, Chelmsford and Brockton Police Departments. Assistant U.S. Attorney Philip C. Cheng, of Mendell’s Organized Crime & Gang Unit, is prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Tewksbury Woman Indicted on Bank and Wire Fraud and Identity Theft ChargesRead the Press Release
BOSTON – A Tewksbury woman has been charged in connection with a scheme to embezzle more than $1.8 million from her employer.
Joanne Dinoto, a/k/a “Joanne Mara,” 47, of Tewksbury, was indicted on one count of bank fraud, two counts of wire fraud and one count of aggravated identity theft. Dinoto was released on conditions following an initial appearance today before U.S. District Court Magistrate Judge Jennifer C. Boal.
According to the indictment, between December 2013 and April 2020, Dinoto stole more than $1.8 million from her employer, a flooring company based in Acton. It is alleged that Dinoto inflated her compensation by increasing her hourly rate, falsifying the number of hours she worked and adding phony “reimbursements” to her paycheck, all without authorization. The indictment also alleges that Dinoto used her employer’s corporate credit card for personal expenses, even after her employer directed her to cancel the card, and forged at least two checks to herself from her employer’s checking account. To conceal the scheme, Dinoto allegedly modified her employer’s accounting records.
The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $1 million or twice the gross gain or loss, whichever is greater. 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 or twice the gross gain or loss, whichever is great. The charge of aggravated identity theft provides a mandatory sentence of two years in prison, to be served consecutively to any other sentence imposed, up to one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Valuable assistance was provided by the Middlesex District Attorney’s Office and the Acton Police Department. Assistant U.S. Attorney Kristen A. Kearney of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Swanton Woman Arrested for Distributing Crack CocaineRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Pamela Yandow, 49, of Swanton, Vermont, was arrested today for distributing cocaine base on multiple occasions in October of 2021. Yandow is scheduled to appear later today on the charge before U.S. Magistrate Judge Kevin J. Doyle.
According to court records, in October of 2021, Yandow distributed cocaine base, commonly known as “crack,” on multiple occasions to a confidential informant at or near her residence in Swanton. This morning, law enforcement executed a search warrant at Yandow’s residence in Swanton, and arrested her pursuant to a federal arrest warrant. Yandow’s extensive criminal history dates back to 1996, and includes a 2003 federal conviction for bank fraud, a 2013 state conviction for narcotics distribution, and a 2019 federal conviction for conspiracy to distribute heroin and cocaine base. Yandow received an 84-month prison sentence in 2019, but was granted compassionate release on April 2, 2021 due to the COVID-19 pandemic.
If convicted of the charge alleged in the complaint, Yandow faces a maximum sentence of 20 years of imprisonment and a $1,000,000 fine. The actual sentence however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. The Acting United States Attorney emphasized that the charge in the complaint is merely an accusation, and that the defendant is presumed innocent unless and until she is proven guilty.
Acting United States Attorney Jonathan A. Ophardt commended the investigatory efforts of Homeland Security Investigations (HSI) and the St. Albans Police Department. He also thanked the Swanton Police Department, the Vermont State Police Drug Task Force, U.S. Customs and Border Protection, and the U.S. Border Patrol for their assistance.
The United States is represented in this matter by Acting U.S. Attorney Jonathan A. Ophardt. Yandow is represented by the Office of the Federal Public Defender.
Steel company forfeits $6 million as part of sentence for immigration violationsRead the Press Release
DAYTON, Ohio – A steel carport business headquartered in Muncie, Indiana, is forfeiting $6 million for knowingly employing dozens of undocumented immigrants. Company executives paid to smuggle the undocumented workers from Mexico to the United States and then used them as cheap labor on construction projects throughout the country.
All Steel Carport, Inc. pleaded guilty in July 2021 to inducing undocumented immigrants to remain in the United States to generate millions of dollars of proceeds for itself.
All Steel performed several millions of dollars’ worth of work in Ohio knowingly using undocumented immigrant workers. The company also purchased trucks in Ohio for the workers, which they titled in the names of “straw owners.”
According to court documents, between 2018 and 2019, the company authorized the hiring of dozens of undocumented immigrants to process steel or install carports for the company. All Steel allowed the employees to use fictitious Social Security numbers and other identifying information. The company also provided incentives to the employees. For example, All Steel helped employees obtain driver’s licenses in other states and purchased vehicles for the employees to pay off through deductions in their paychecks.
As part of this case, All Steel has also forfeited three vehicles – 2020 Chevy Silverados and Ford F-350s and a 2020 Audi R8 – valued collectively at more than $300,000.
Besides forfeiting $6 million and the vehicles, All Steel was sentenced to three years of probation, a $25,000 fine, and was ordered to provide community outreach with Homeland Security Investigations concerning employment practices. All Steel is ordered to obtain IMAGE certification with Immigrations and Customs Enforcement within one year.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, and Vance Callender, Special Agent in Charge, U.S. Homeland Security Investigations, announced the sentence imposed today by Senior U.S. District Judge Walter H. Rice. Patel and Callender acknowledged the cooperation of law enforcement in Oklahoma, Texas and Indiana, as well as the U.S. Attorney’s Office for the Southern District of Indiana. Deputy Criminal Chief Brent G. Tabacchi and Assistant United States Attorney Dwight K. Keller are representing the United States in the case.
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South Bay Man Sentenced to over 8 Years in Prison for Movie Investment Scam and for Fraudulently Selling House Bought with Illicit ProceedsRead the Press Release
LOS ANGELES – A South Bay man was sentenced today to 97 months in federal prison for defrauding Asian investment firms out of $14 million by falsely claiming the money would be used to produce a feature film distributed by Netflix, then, while out on bond, illegally selling the Manhattan Beach house he purchased with his ill-gotten gains by forging the signatures of his victims’ lawyers.
Adam Joiner, 43, of Manhattan Beach, was sentenced by United States District Judge André Birotte Jr., who also ordered him to pay $14 million in restitution. Joiner pleaded guilty in October 2019 to one count of wire fraud and, in December 2019, to an additional count of wire fraud.
Joiner used fake documents and forged signatures to raise millions of dollars from foreign investment firms based in South Korea and China for a movie project he said would be called “Legends” and would depict American folklore icons such as Paul Bunyan and John Henry. But Joiner’s “representations proved to be as fictitious as the legendary figures his film was supposed to depict,” prosecutors wrote in a sentencing memo filed with the court.
Joiner, who operated a company called Dark Planet Pictures, LLC, defrauded Korea Investment Global Contents Fund, a South Korean investment fund whose assets are managed by Korean Investment Partners Co. Ltd., which suffered $8 million in losses. Joiner also defrauded a Chinese investment firm called Star Century Pictures Co. Ltd., and its affiliate PGA Yungpark Capital Ltd., which invested $6 million into “Legends.”
As part of the scheme, Joiner falsely told the investors that Netflix had agreed to distribute the picture, a claim Joiner supported with a bogus distribution agreement that contained the forged signature of a Netflix executive. Joiner subsequently told the investors that he had terminated the distribution agreement with Netflix and had secured a new agreement with Amblin Partners, all of which was false.
Approximately $5.2 million of victim investors’ money was used to purchase Joiner’s Manhattan Beach residence and another $4.3 million was transferred to a bank account held by Joiner that may be linked to developing an unrelated film. Prosecutors noted in their sentencing memo that, while misappropriating the victim investors’ money, Joiner “continued to dissemble, concocting tales of contract negotiations with director Guillermo del Toro and a new distribution agreement with Amblin Partners in an effort to lull his victims into complacency.”
After signing his plea agreement but before he entered his guilty plea in this case, Joiner in October 2019 sold his Manhattan Beach house he had purchased with the proceeds of his fraud. Before doing so, he fraudulently removed the liens his victims had placed on the house by filing documents bearing the forged signatures of attorneys who represented the victims. Caught again, Joiner entered an additional guilty plea to wire fraud in December 2019.
As part of the case, the government seized $5,572,581 from accounts belonging to Joiner, $4 million of which has already been returned to KIGCF.
The FBI investigated this matter.
Assistant United States Attorneys Alexander B. Schwab of the Major Frauds Section and Jonathan S. Galatzan, Chief of the Asset Forfeiture Section, prosecuted these cases. Assistant United States Attorney Robert I. Lester of the Civil Division’s Financial Litigation Section handled the bond forfeiture matter in this case.
Slidell Resident Sentenced to 33 Months for Conspiring to Distribute Cocaine and Crack in the ‘Goose’ Area of New OrleansRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that U.S. District Court Judge Wendy B. Vitter sentenced JOSEPH BROWN, age 46, a resident of Slidell, Louisiana, on November 9, 2021 to 33 months of imprisonment, three (3) years of supervised release, and $200 in mandatory special assessment fees for conspiring to distribute cocaine and crack in New Orleans East, in violation of 21 U.S.C. §§ 841(a)(1), (b)(1)(B), and 846, and using a communication facility to distribute illegal narcotics, in violation of 21 U.S.C. § 843(b). BROWN plead guilty on August 10, 2021.
According to court records, BROWN and four others, Lionel Cooley, Kendrick Demourelle, Kevin Gray, and Blake Monroe, conspired to sell illegal narcotics in New Orleans, including using a broken-down yellow school bus in the ‘Goose’ neighborhood in New Orleans East as a stash house. All five were indicted in February 2020. A seized GMC Sierra pickup truck used by Lionel Cooley contained nearly two kilograms of cocaine and 430 grams of crack.
All five defendants in this case have plead guilty.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration, Jefferson Parish Sheriff’s Office, Hammond Police Department, New Orleans Police Department, and Slidell Police Department in investigating this matter. Assistant United States Attorney David Howard Sinkman is in charge of the prosecution.
Shelby County Man Pleads Guilty to Discharging Oil in Violation of Clean Water ActRead the Press Release
FRANKFORT, Ky. – A Shelbyville, Kentucky, man, John Affourtit, 65, pleaded guilty on Tuesday, before U.S. District Judge Gregory VanTatenhove, to knowingly discharging a harmful quantity of oil into a waterway of the United States.
According to his plea agreement, beginning in March 2017, Affourtit signed an agreement with a company to remove and dispose of the waste material at the company’s abandoned zinc plating facility. In completing the contract, Affourtit admitted to pumping oil waste from the machinery pits into a large 500-gallon water trailer that he had rented. He then took the trailer to his residential property in Shelby County where he discharged it, and it went into a creek that ran through his property. The creek is a perennial stream that flows into waters that are part of the Salt River, a traditional navigable waterway. Affourtit had also disposed of other waste materials, including a container of hazardous waste, from the zinc plating facility on his property in an earthen berm.
Affourtit was indicted in August 2020.
“After agreeing to properly dispose of hazardous materials, the defendant instead chose to endanger the environment and the people that live nearby,” said Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky. “Dangerous choices like this have consequences and the defendant must now face those. We appreciate the dedicated work of our law enforcement partners, whose efforts make this prosecution possible.
“The defendant’s willful disregard of the Clean Water Act put nearby residents and the environment at unnecessary risk,” said Special Agent in Charge Charles Carfagno of EPA’s Criminal Investigation Division in Atlanta. “EPA will continue to hold accountable those that choose to deliberately violate our environmental laws.”
Acting U.S. Attorney Shier; Special Agent in Charge Carfagno; and Anthony R. Hatton, Commissioner, Kentucky Department of Environmental Protection, jointly announced the guilty plea.
The investigation was conducted by EPA-CID and Kentucky Department of Environmental Protection. The United States was represented by Assistant U.S. Attorney Emily Greenfield.
Affourtit is scheduled to be sentenced on February 17, 2022 at 3:30 p.m. He faces a maximum of three years in prison and a fine of not more than $250,000. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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Seven Plead Guilty to Health Care Fraud Conspiracy Involving False Billing for Children’s Behavioral Health ServicesRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that seven criminal defendants have pleaded guilty to charges related to a Medicaid fraud conspiracy arising from the false billing of behavioral health services for children.
The defendants are all former owners, employees, or business associates of Wrights Care Services, LLC, a North Carolina-based provider of rehabilitative behavioral health services. Today’s guilty plea of former owner Daniel Wright marks the seventh guilty plea in the case, the result of a years-long investigation and prosecution led by the United States Attorney’s Office and Federal Bureau of Investigation (FBI) in cooperation with the South Carolina Attorney General’s Office.
“Health care fraud will be prosecuted to the fullest extent of the law.” said Acting U.S. Attorney DeHart. “It is a betrayal of public trust and diverts scarce resources from Americans who need health care coverage.”
“For several years, Wright and the other defendants took advantage of Medicaid, which benefits over one million low-income South Carolinians,” said Susan Ferensic, Special Agent in Charge of the FBI Columbia Field Office. “Healthcare fraud continues to be at the forefront of crimes our office investigates, and this case should serve as an example to individuals and businesses that these schemes will not be tolerated.”
“Not only did this fraud scheme steal millions of dollars from our hardworking taxpayers, it took that money away from legitimate programs to help children who needed it,” South Carolina Attorney General Alan Wilson said. “This case is another example of the close and productive working relationship our office has with the U.S. Attorney’s Office and the FBI and I want to commend them for their diligence in this case.”
Evidence obtained in the investigation revealed that, in 2014, Wrights Care Services was approved by South Carolina Medicaid to provide behavioral health services. Wrights Care maintained associated franchise locations throughout South Carolina, including Columbia, Spartanburg, Pickens, Cheraw, Society Hill, Bennettsville, Hartsville, and Conway. From its inception, Wrights Care Services failed to provide qualified behavioral health services to the children in its care. Nevertheless, in order to receive payment from Medicaid, members of the conspiracy submitted inflated bills and false medical records. In the case of one franchise, members of the conspiracy began billing Medicaid for services before the franchise opened its doors.
In 2015, South Carolina Medicaid sought to audit Wrights Care Services, and members of the conspiracy met in Columbia at a “note party” to forge signatures and falsify records to support the audit. During the course of the scheme, Wrights Care and its affiliated franchises submitted bills to Medicaid in the amount of $6,657,810.43.
The following defendants have pleaded guilty so far:
- Daniel Wright, 39, of Greensboro, North Carolina
- Glenn Pair, 35, of Baltimore, Maryland
- John David Zachariah Wallace, 40, of Sugar Land, Texas
- Kathleen Dubose, 54, of Greensboro, North Carolina
- Sherel Lawson, 47, of Summerfield, North Carolina
- Latasha Bethea, 37, of Fayetteville, North Carolina
- Tonya Strickland Hall, 47, of Greensboro, North Carolina
Each defendant faces a maximum penalty of five years in federal prison for conspiracy to defraud the United States. Each defendant also faces a fine of up to $250,000 and 3 years of supervision to follow the term of imprisonment. United States District Judge Mary G. Lewis accepted the guilty pleas and will sentence the defendants after receiving and reviewing presentencing reports prepared by the United States Probation Office.
This case was investigated by Special Agents Neil Power and Mark McMahon of the FBI, and Assistant Attorney General Brent Yandle and Assistant Chief Investigator Jamie Seales of the South Carolina Attorney General’s Office Medicaid Fraud Control Unit. Assistant United States Attorney Brook Andrews is prosecuting the case.
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Serial Child Sex Offender Convicted of Child Exploitation OffensesRead the Press Release
A federal jury convicted a Texas man today for multiple child exploitation offenses involving an 11-year-old child.
According to court documents and evidence presented at trial, Martin Renteria, 52, of Midland, enticed an 11-year-old into engaging in sexual acts on multiple occasions. Renteria purchased expensive gifts for the child in exchange for the sexual acts. On at least one occasion, he also recorded a video of one of the sexual acts. According to court documents and evidence presented at trial, Renteria had committed similar crimes in the past.
Renteria was convicted of production of child pornography, sex trafficking of a child, possession of child pornography, and committing a new crime against a child while registered as a sex offender. He is scheduled to be sentenced on Feb. 11, 2022 and faces a mandatory minimum of 15 years and maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division and U.S. Attorney Ashley C. Hoff for the Western District of Texas made the announcement.
The Midland Police Department investigated the case, with computer forensics assistance from the Justice Department’s High Technology Investigative Unit.
Trial Attorneys Alicia A. Bove and Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Monica L. Daniels of the Western District of Texas are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Scranton Man Charged with Drug Trafficking, Firearms Offenses and EscapeRead the Press Release
SCRANTON -The United States Attorney’s Office for the Middle District of Pennsylvania announced that on November 9, 2021, Jason Charles Lajoie, age 45, of Scranton, Pennsylvania, was charged by a federal grand jury on a superseding indictment with drug trafficking, firearms offenses, and escape.
According to Acting United States Attorney Bruce D. Brandler, the superseding indictment alleges that Lajoie distributed at least five grams of pure methamphetamine on multiple occasions between June 3, 2019 and February 25, 2021, and Lajoie also possessed with intent to distribute at least five grams of pure methamphetamine on February 25, 2021. It is alleged that the drug transactions occurred after Lajoie had previously been convicted and served a sentence for another serious felony drug trafficking offense. The superseding indictment also alleges that Lajoie possessed multiple firearms during and in relation to his drug trafficking activities as a previously convicted felon. Last, the superseding indictment alleges that Lajoie escaped from custody at the Lackawanna County Prison on October 24, 2021.
The case was investigated by the Federal Bureau of Investigation (FBI), the United States Marshals and the Lackawanna County District Attorney’s Office. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
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.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Scammers Often Target VeteransRead the Press Release
Each year on November 11 our nation sets aside a day to recognize and remember veterans of the armed forces who have served and sacrificed so much to protect us and our freedom. As we thank them for this service, we can also do something to help protect them.
Veterans are often targets of frauds and scams aimed at stealing veterans’ benefits, hard-earned savings, and even their identities. If you are a veteran or know a veteran, I encourage you to view and share information provided by the United States Postal Inspection Service at the USPIS website:
https://www.uspis.gov/veterans
The site provides information about schemes targeting vets. Information and knowledge can be powerful weapons. Please join me to do our part to fight against fraudsters and scammers and help protect those who have given so much to protect us.
Duston J. Slinkard
Acting United States Attorney
U.S. Attorney's Office - District of Kansas
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Saratoga Springs Man Sentenced for Misusing a Social Security Number to Obtain Unemployment Insurance BenefitsRead the Press Release
ALBANY, NEW YORK - Markhwan Berning, age 37, of Saratoga Springs, New York, was sentenced today to a year of probation for misusing a social security number.
The announcement was made by United States Attorney Carla B. Freedman and Jonathan Mellone, Special Agent in Charge, New York Region, U.S. Department of Labor, Office of Inspector General (USDOL-OIG).
As part of his previously entered guilty plea, Berning admitted that between May and July 2020, he obtained unemployment insurance benefits, including federal pandemic-related benefits, by falsely presenting to the New York State Department of Labor a fake social security number as his own.
Senior United States District Judge Lawrence A. Kahn also ordered Berning to pay a $2,000 fine and $16,383 in restitution to New York State.
This case was investigated by DOL-OIG, with assistance from the Federal Bureau of Investigation and the New York State Department of Labor, Office of Special Investigations, and was prosecuted by Assistant U.S. Attorney Joshua R. Rosenthal.
Russian Cybercriminal Sentenced to 10 Years in Prison for Digital Advertising Fraud SchemeRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Aleksandr Zhukov was sentenced by United States District Judge Eric R. Komitee to 10 years’ imprisonment for perpetrating a digital advertising fraud scheme through which the defendant and his co-conspirators stole more than $7 million from U.S. advertisers, publishers, platforms, and others in the U.S. digital advertising industry. The Court also ordered Zhukov to pay $3,827,493 in forfeiture. Zhukov, a Russian national who was arrested in Bulgaria in 2018, was extradited to the United States in 2019, and was convicted following a jury trial in May 2021 of wire fraud conspiracy, wire fraud, money laundering conspiracy, and money laundering.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Sitting at his computer keyboard in Bulgaria and Russia, Zhukov boldly devised and carried out an elaborate multi-million-dollar fraud against the digital advertising industry, and victimized thousands of companies across the United States,” stated United States Attorney Peace. “Today’s sentence holds the defendant accountable for his deception and outright theft of more than $7 million, and sends a powerful message to cyber criminals around the world that there is no escape from the international reach of law enforcement.”
Between September 2014 and December 2016, Zhukov operated a purported advertising network—Media Methane—and carried out a digital advertising fraud scheme that came to be known as “Methbot.” Media Methane had business arrangements with other advertising networks whereby it received payment in return for placing advertisements—primarily video advertisements—on websites. Rather than place advertisements on real publishers’ webpages where human internet users would see them, Zhukov rented more than 2,000 computer servers housed in commercial datacenters in Dallas, Texas, Amsterdam and the Netherlands, and programmed the datacenter computer servers (the “bots”) to simulate humans viewing ads on webpages. Zhukov and his co-conspirators programmed the bots to load real ads on blank webpages while falsely representing that the ads were loading on real webpages, “spoofing” the domains of more than 6,000 publishers, including The New York Times, the New York Post, the New York Daily News, Newsday, and the Staten Island Advance.
To create the illusion that human internet users were viewing the advertisements loaded onto these spoofed webpages, Zhukov and his co-conspirators programmed the bots to appear and behave like human internet users: falsely representing that they had screens and mouses, that they were running operating systems used for personal computers, and that they were running commercially available internet browsers (like Chrome, Internet Explorer, and Firefox), when they were not. Zhukov and his co-conspirators also programmed the bots to click around a screen a randomly determined number of times, simulate a mouse moving around and scrolling down a webpage, start and stop a video player midway, bypass captchas, accept cookies, and falsely appear to be signed into popular social media services such as Facebook, Twitter, and Google.
In addition, the defendant leased more than 765,000 Internet Protocol (“IP”) addresses, assigned multiple IP addresses to each datacenter server, and then fraudulently registered IP addresses in the names of major U.S. internet providers. Zhukov entered the false usage and location information into IP databases that are widely relied upon in the industry to make it appear that the computers in question belonged to human internet users located in homes and businesses around the United States.
Zhukov recruited computer programmers and other employees to help him perpetrate the scheme and build the technical infrastructure required to create fraudulent ad traffic. He referred to these individuals as “my developers,” and referred to himself as the “king of fraud!”
The victim companies collectively paid more than $7 million for ads that were never actually viewed by human internet users and never actually displayed on real webpages.
Zhukov directed and transferred proceeds from the scheme to and through multiple personal and corporate bank accounts in Bulgaria, Russia, the United Kingdom, the Czech Republic, Latvia, and Cyprus. He kept 75% of the scheme’s proceeds for himself and pocketed more than $4.8 million from the fraud.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Saritha Komatireddy, Artie McConnell, and Alexander F. Mindlin are in charge of the prosecution. The Justice Department’s Office of International Affairs, the FBI’s Legal Attachés abroad and foreign authorities in multiple countries provided critical assistance in this case.
The Defendant:
ALEKSANDR ZHUKOV
Age: 41
Russian FederationE.D.N.Y. Docket No. 18-CR-633 (EK)
Rome Business Owners Found Guilty of Tax CrimesRead the Press Release
SYRACUSE, NEW YORK - A federal trial jury in Utica convicted a Rome, New York couple and their son today for conspiring to defraud the United States and for tax evasion, announced United States Attorney Carla B. Freedman, Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, and Thomas Fattorusso, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division, New York Field Office.
According to evidence presented at trial and court documents, John Zourdos, his wife Helen Zourdos, and their son Dimitrios Zourdos, all of Rome, New York, operated the three Dipping Donuts stores with locations in Rome and New Hartford. From 2013 to 2017, the defendants concealed more than $2.8 million in cash sales from the IRS, and evaded more than $650,000 in individual taxes, by depositing cash directly into their personal bank accounts instead of business bank accounts, providing incomplete information to their accountant, and causing their accountant to file false individual and corporate tax returns with the IRS. The defendants also used unreported cash sales to fund a lavish lifestyle that included, among other things, the purchase of multiple luxury vehicles. Evidence at trial further showed that the defendants paid some employees “off the books” cash wages for overtime hours. They paid other employees entirely “off the books” in cash for all hours worked.
John, Helen, and Dimitrios Zourdos were each convicted of one count conspiracy to defraud the United States, seven counts of tax evasion, and seven counts of aiding and assisting in the filing of false corporate tax returns. Sentencing hearings for all three defendants will be scheduled at a later date. All face a maximum penalty of up to five years in prison on each count of conspiracy and tax evasion, and three years in prison on each count of assisting the filing of false tax returns, fines of up to $250,000.00 or twice the pecuniary gain, and a three (3) year term of supervised release to follow any incarceration. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The IRS Criminal Investigation Division investigated the case.
Assistant Chief John N. Kane of the Justice Department’s Tax Division and Assistant U.S. Attorney Michael F. Perry of the U.S. Attorney’s Office are prosecuting the case.
Romanian National Sentenced for Stealing $80K from Credit Union AccountsRead the Press Release
TULSA, Okla. – A Romanian national was sentenced today in federal court for conspiring with others to steal close to $80,000 from credit union customers’ accounts after installing skimmers and pinhole cameras on ATM machines in Yukon, Moore, south Oklahoma City and Tulsa, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge Claire V. Eagan sentenced Iancu Ovidiu Florea, 53, to time served plus five years of supervised release. He was further ordered to pay $79, 660 in restitution to Tinker Federal Credit Union.
Florea pleaded guilty to conspiracy to commit financial institution fraud on Aug. 18, 2021.
Florea admitted in his plea agreement that he and codefendant Marinel Muchie, also a Romanian citizen, committed fraud against Tinker Federal Credit Union in July and August 2019. The credit union incurred losses totaling $79,660 from 110 compromised customer accounts.
The two defendants carried out their scheme by placing “skimming” devices, also called “shimmers,” into ATM machines at various Tinker Federal Credit Union locations in the Oklahoma City area and Tulsa. The skimmers were electronic devices that gathered and stored account data from ATM customers when they used their debit cards to conduct transactions at the ATMs. Florea admitted that the two installed tiny cameras at the ATMs that recorded the customer’s personal identification numbers (PINS) as the customers typed on the keypad to access their accounts.
The skimmers ran on power from the ATM and stored customers’ account information until the conspirators downloaded the information onto a card inserted into the ATMs. The pinhole cameras were powered by batteries and used SIM cards to store video. Florea stated in the plea agreement that he helped check the devices and also removed them from the ATMs.
Once the electronic account data was obtained by the skimmers and the PINs were recorded by the cameras, the defendants had enough information to create false access cards and used those to conduct fraudulent financial transactions at ATMs, withdrawing money from the credit union’s customer accounts. Floreau and his codefendant withdrew money from those accounts at ATMs in Albuquerque, New Mexico, and Las Vegas, Nevada, usually about $80 to $100 per withdrawal.
To cover their tracks, the codefendants used false identities to rent vehicles and places to stay. For example, Florea used the name “Joel Sterk” to rent a vehicle which he was driving when arrested by authorities in Illinois.
A Secret Service Task Force in Oklahoma City opened the investigation on Aug. 5, 2019, after the credit union reported finding skimmers on their ATMs. The Task Force was eventually able to track down the defendant in the rental car and contacted authorities in Elmhurst, Illinois, to inform them a suspect was in their jurisdiction. Elmhurst Police Officers stopped Florea for a traffic violation, and after a positive identification was made based on surveillance footage from Tinker Federal Credit Union, he was arrested. Secret Service Agents also discovered there was an FBI active arrest warrant for Florea in the Eastern District of Michigan. He was eventually convicted and sentenced there in regard to an earlier, unrelated fraudulent scheme.
Codefendant Muchie pleaded guilty Sept. 16, 2021 to conspiracy to commit financial institution fraud and aggravated identity theft. He will be sentenced on Feb. 1, 2022.
The U.S. Secret Service and Oklahoma City Police Department conducted the investigation. Assistant U.S. Attorneys David D. Whipple and Kevin C. Leitch conducted the investigation.
River Valley Group Sentenced to over 206 Years Combined in Federal Prison for Drug TraffickingRead the Press Release
FORT SMITH, Ark. – The final members of an Arkansas River Valley group have been sentenced to federal prison for the Distribution of Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearings for the United States District Court in Fort Smith.
In the fall of 2019, Agents with the DEA and the FBI launched an investigation into drug trafficking and money laundering in the Western District of Arkansas. For approximately a year between September 2019 and September of 2020, agents conducted extensive investigative activities into a large, River Valley-based drug trafficking organization led by Manuel “Chuy” De Jesus Perez-Echeverria.
This investigation resulted the arrest, prosecution, and imprisonment of twenty-two (22) individual drug traffickers and money launderers and the seizure of approximately 6.5 kilograms of methamphetamine, 15 firearms, and $146,687 in funds derived from drug trafficking.
The sentencings of the drug trafficking organization members are as follows:
WDAR Case No. 2:20 CR 20014 – 001-004 – (Indictment issued July 28, 2020)
Alexis Tirado - age 27, Fort Smith, Arkansas – sentenced April 8, 2021 to 180 months BOP and $100 special assessment for Aiding and Abetting in the Distribution of More Than 50 Grams of Methamphetamine.
Emmanuel Miranda – age 25, Fort Smith, Arkansas – sentenced April 1, 2021 to 78 months BOP and $100 special assessment for Conspiracy to Distribute More Than 5 Grams of Methamphetamine.
Israel Miranda-Zapata – age 30, Fort Smith, Arkansas – sentenced April 1, 2021 to 108 months BOP and $100 special assessment for Conspiracy to Distribute More Than 5 Grams of Methamphetamine.
Brenda Golden Day – age 36, Fort Smith, Arkansas – sentenced April 1, 2021 to 60 months BOP and $100 special assessment for Distribution of More Than Five Grams of Methamphetamine.
WDAR Case No. 2:20 CR 20017-001-018 (Original Indictment issued August 26, 2020, Superseding Indictment issued October 7, 2020)
Manuel “Chuy” De Jesus Perez-Echeverria - age 36, Fort Smith, Arkansas – sentenced October 22, 2021 to 360 months BOP, $100 special assessment, and $20,000 fine for Conspiracy to Distribute More Than Five Hundred (500) Grams of a Mixture or Substance Containing Methamphetamine.
Humberto “Beto” Acosta-Martinez – age 33, Poteau, Oklahoma – sentenced October 12, 2021 to 48 months BOP, $100 special assessment, $300 fine for Conspiracy to Distribute a Mixture or Substance Containing Methamphetamine.
Shaun Michael Easton – age 40, Fort Smith, Arkansas – sentenced November 9, 2021 to 108 months BOP, $100 special assessment, $900 fine for Distribution of More Than Five (5) Grams of Methamphetamine.
Julio Ivan Enriquez-Munoz – age 41, Oklahoma City, Oklahoma – sentenced November 8, 2021 to 51 months BOP, $100 special assessment, $400 fine for Conspiracy to Distribute a Mixture or Substance Containing Methamphetamine.
Alberto Ledesma – age 43, Fort Smith, Arkansas – sentenced October 18, 2021 to 188 months BOP, $100 special assessment and $2,900 fine for Distribution of More than Fifty (50) Grams of Methamphetamine.
Efrain Maciel-Martinez – age 54, Fort Smith, Arkansas – sentenced October 14, 2021 to 78 months BOP, $100 special assessment, $300 fine for Possession of More Than Fifty (50) Grams of a Mixture or Substance Containing Methamphetamine with Intent to Distribute.
Makayla Nicole Martin – age 22, Fort Smith, Arkansas – sentenced October 15, 2021 to 63 months BOP, $100 special assessment and $1,400 fine for Money Laundering.
Traye Everett Martin – age 26, Fort Smith, Arkansas – sentenced October 14, 2021 to 57 months BOP, $100 special assessment, $1,400 fine for Conspiracy to Distribute a Mixture or Substance Containing Methamphetamine.
Nicholas “Nico” Moron-Rivera – age 29, Fort Smith, Arkansas – plead guilty on September 16, 2021 to Distribution of Methamphetamine. Sentencing has not yet been scheduled.
Julie Ann Pyles - age 42, Fort Smith, Arkansas – sentenced October 13, 2021 to 78 months BOP, $100 special assessment, $1,400 fine for Money Laundering.
Paula Lynne Rider – age 58, Fort Smith, Arkansas – sentenced October 6, 2021 to 87 months BOP, $100 special assessment and a $900 fine for Conspiracy to Distribute a Mixture or Substance Containing Methamphetamine.
Ezequiel Rodriguez – age 43. Heavener, Oklahoma – sentenced October 21, 2021 to 210 months BOP, $100 special assessment, $14,653.19 in restitution to the DEA for methamphetamine laboratory cleanup/abatement for Conspiracy to Distribute More Than Five-Hundred (500) Grams of a Mixture or Substance Containing Methamphetamine.
Ronal Salinas – age 24, Fort Smith, Arkansas – sentenced October 5, 2021 to 33 months BOP, $100 special assessment, $900 fine for Distribution of More Than Five (5) Grams of Methamphetamine.
Benjamin Valdez – age 38, Paris, Arkansas – sentenced October 21, 2021 to 262 months BOP, $100 special assessment and a $5,000 fine for Distribution of More Than Five (5) Grams of Methamphetamine.
Amber Renee Vance – age 35, Fort Smith, Arkansas – sentenced July 21, 2021 to 130 months BOP and a $100 special assessment for Conspiracy to Distribute a Mixture or Substance Containing Methamphetamine.
Richard James Vineyard – age 33, Fort Smith, Arkansas – sentenced November 9, 2021 to 120 months BOP, $100 special assessment, $900 fine for Conspiracy to Distribute a Mixture or Substance Containing Methamphetamine.
Emily Elizabeth Williams – age 31, Fort Smith, Arkansas – sentenced October 5, 2021 to 70 months BOP, $100 special assessment, $900 fine for Conspiracy to Distribute a Mixture or Substance Containing Methamphetamine.
Michael Dean Wilson – age 38, Hot Springs, Arkansas – sentenced October 13, 2021 to 110 months BOP, $100 special assessment, $1900 fine for Conspiracy to Distribute a Mixture or Substance Containing Methamphetamine.
Acting U.S. Attorney David Clay Fowlkes of the Western District of Arkansas, FBI Little Rock, Special Agent in Charge Jim Dawson, and DEA Little Rock, Assistant Special Agent in Charge Jarad Harper made the announcement.
DEA – Fort Smith, AR; McAllister, OK; Atlanta, GA, FBI – Fort Smith, AR; Oklahoma City, OK; Miami, FL, U.S. Marshals Service, ATF – Fort Smith, AR, State & Local Agencies - Logan County Sheriff’s Office, Fort Smith Police Department, Sebastian County Sheriff’s Office, Greenwood Police Department, Paris Police Department, Crawford County Sheriff’s Office, 12th/21st Judicial District Drug Task Force, Arkansas State Police, and the Oklahoma Highway Patrol investigated the case.
Assistant U.S. Attorney Brandon Carter prosecuted the case for the United States.
Today’s announcement is part of the Western District of Arkansas’ Operation Bear Mountain Bingo, which is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s illicit drug supply.
Rhode Island Man Admits Stealing and Selling Luxury Car Tires and RimsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that MICHAEL FARIAS, 56, of Providence, Rhode Island, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to an offense related to his role in a scheme to steal tires and rims from new vehicles at car dealerships in northeastern states and then sell the stolen items to individuals across the country.
According to court documents and statement made in court, between May 2015 and August 2018, Farias and others stole tires and rims from numerous luxury vehicles at car dealerships in Connecticut, Rhode Island, New York and Maine. The co-conspirators then sold the stolen goods to others around the U.S.
In pleading guilty to one count of interstate transportation of stolen property, Farias specifically admitted that, on August 1, 2016, he and others stole the rims and tires from four 2016 Chevrolet Suburbans at a car dealership located in Darien, Connecticut.
Farias was arrested on November 17, 2020.
Farias faces a maximum term of imprisonment of 10 years. He is released on a $100,000 bond pending sentencing, which is not scheduled.
This matter has been investigated by the Federal Bureau of Investigation, the Shelton, Milford, Waterbury, Stonington, Vernon, Darien, Westchester County (N.Y.), Bedford (N.Y.) and Portland (Maine) Police Departments, and the York County (Maine) Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Joseph Vizcarrondo.
Quincy Man Sentenced for Fentanyl and Cocaine ConspiracyRead the Press Release
BOSTON – A Quincy man was sentenced yesterday for his involvement in a drug conspiracy involving fentanyl and cocaine.
Tre Fernandes, a/k/a “OZ” or “OC,” 26, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to three months in prison, nine months of home confinement and three years of supervised release. On May 13, 2021, Fernandes pleaded guilty to conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl and cocaine.
In October 2017, Fernandes delivered 6.91 grams of a substance containing fentanyl to an undercover officer. Fernandes was charged as part of an investigation into a drug trafficking organization distributing large quantities of fentanyl, cocaine and other controlled substances in the greater Boston area.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistant U.S. Attorneys John Mulcahy and Sarah Hoefle of Mendell’s Criminal Division prosecuted the case.
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.
Queens Man Convicted of Securities and Wire Fraud Conspiracies Relating to the Foreign Exchange MarketRead the Press Release
John Won was convicted by a federal jury in Brooklyn yesterday of all five counts of an indictment charging him with securities fraud, wire fraud and money laundering conspiracies, as well as substantive securities fraud. The verdict followed a week-long trial before United States District Judge Raymond J. Dearie. When sentenced, Won faces a maximum of 20 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.
“John Won and his co-conspirators targeted the Korean-American community in our district and cheated them out of hundreds of thousands of their hard-earned dollars through a web of false promises, lies and deceit,” stated United States Attorney Peace. “Today’s verdict demonstrates the resolve of this Office and our law enforcement partners to prosecuting those who engage in fraud and betray the trust of their investors.” Mr. Peace thanked the Commodities and Futures Trading Commission (CFTC) and National Futures Association (NFA) for their significant cooperation and assistance in this case.
As proven at trial, between February 2012 and December 2013, Won conspired with co-defendant Tae Hung Kang and others in a scheme to defraud victims, who were largely members of New York City’s Korean-American community, into investing in foreign exchange trading accounts and in their company, called ForexNPower. The conspirators issued advertisements in Korean-language newspapers and on Korean-language radio stations claiming that ForexNPower had a secret algorithmic trading method used to trade in the foreign exchange market that guaranteed investors 10 percent monthly returns at no risk of loss. In reality, ForexNPower had no successful trading method and all of their customer accounts suffered substantial losses.
The conspirators also induced investors to purchase stock issued by ForexNPower by falsely claiming that the invested funds would be used to expand the business to a new location in New Jersey or pooled and used to trade foreign currencies. In truth, Won and his co-conspirators misappropriated a substantial portion of the funds, spending the remainder on, among other things, the fraudulent advertisements.
In March 2021, co-defendant Tae Hung Kang, also known as “Kevin Kang,” pleaded guilty to conspiracy to commit securities fraud. Kang is awaiting sentencing.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Sarah M. Evans and Nicholas J. Moscow, and Assistant Chief Gerald M. Moody, Jr. of the Department of Justice’s Fraud Section are in charge of the prosecution.
The Defendants:
JOHN WON
Age: 53
Whitestone, New YorkTAE HUNG KANG (also known as “Kevin Kang”)
Age: 57
Bayside, New YorkE.D.N.Y. Docket No. 18-CR-184 (RJD)
Providence Man Pleads Guilty to Illegal Possession of FirearmRead the Press Release
BOSTON – A Providence man pleaded guilty today to being a felon in possession of a firearm and ammunition.
Roland S. Morgan, 38, pleaded guilty to one count of being a felon in possession of a firearm and ammunition. U.S. Senior Court Judge William G. Young scheduled sentencing for March 3, 2022. Morgan was indicted on March 30, 2021.
On Oct. 28, 2020 at approximately 1:00 a.m., a police officer observed a silver Mercedes exiting Interstate 95 in Seekonk. The officer noted that the vehicle’s rear license plate was not luminated, a violation of Massachusetts Law. After observing the vehicle make a number of random U-turns, the officer conducted a motor vehicle stop. Morgan was driving the vehicle and was unable to produce a driver’s license. The officer determined that Morgan had two outstanding arrest warrants issued by Attleboro District Court. Morgan was then removed from his vehicle and booked on the outstanding warrants.
A subsequent search of Morgan’s vehicle recovered, among other things, a loaded .38 caliber Smith and Wesson revolver from under the seat where Morgan had been sitting, 38 rounds of .38 caliber ammunition, 10 metal tipped arrows, a hunting bow, narcotics, a Crossman pellet gun and a body armor vest.
Morgan is prohibited from possessing a firearm or ammunition due to prior felony convictions.
The charging statute provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Bristol County District Attorney Thomas M. Quinn; Seekonk Police Chief Dean Isabella; and Mahanoy Township (Pa.) Police Chief Brandon Alexander made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Mendell’s Major Crimes Unit is prosecuting the case.
Property Manager Pleads Guilty in Homeowner Association Fraud CaseRead the Press Release
Jackson, Miss. – David Luke Lane, 78, pled guilty to bank fraud yesterday before United States District Judge Henry T. Wingate, announced Acting U.S. Attorney Darren J. LaMarca.
According to court documents, David Luke Lane used his position as a property manager to defraud several Homeowners Associations (HOAs) and Community Bank of Mississippi. Lane entered into contracts with the various HOAs to manage their properties and money in return for a fee. Lane’s duties included keeping the funds of each HOA in designated bank accounts and using those funds for the exclusive and sole benefit of each HOA. Instead, Lane defrauded numerous HOAs by making unauthorized withdrawals of funds from HOA bank accounts and by converting those funds to his own use instead of for the benefit of the HOAs. Lane falsely represented to the bank that he was authorized to make these withdrawals from the HOA accounts. The total of funds taken from the HOAs by Lane exceeded two million dollars.
Lane is scheduled to be sentenced on Tuesday, February 11, 2022, and faces a maximum penalty of 30 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation, the United States Postal Inspection Service, and the Internal Revenue Service are investigating the case, with assistance from the District Attorney's Office for Madison and Rankin Counties.
Pittsburgh Man Indicted on Attempted Coercion of a Minor for Sex ChargeRead the Press Release
PITTSBURGH- A resident of Pittsburgh, PA, now in custody at Allegheny County Jail, has been indicted by a federal grand jury in Pittsburgh, on a charge of attempted coercion and enticement of a minor to engage in illegal sexual activity, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Thomas Hunt, 30, of Pittsburgh, PA, as the sole defendant.
According to the Indictment, from on or about September 13, 2021, until on or about October 13, 2021, Hunt attempted to coerce and entice a minor to engage in illegal sexual activity.
The law provides for a term of imprisonment of not less than ten (10) years and not more than life in prison, a fine not greater than $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Benjamin J. Risacher is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Charged with Receiving Material Depicting the Sexual Exploitation of MinorsRead the Press Release
PITTSBURGH, PA - One resident of Pittsburgh, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on a charge of Receipt of Material Involving the Sexual Exploitation of Minorsplain language statement of offense described in indictment or generic description such as violating various federal laws or violating various federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Sean Paul Conley-Refer, currently incarcerated at Allegheny County Jail, as the sole defendant.
According to the Indictment presented to the court, on or about October 8, 2021, in the Western District of Pennsylvania, the defendant did knowingly receive a visual depiction of a minor using any means and facility of interstate and foreign commerce, namely, the Internet and a cellular telephone, the production of which visual depiction involved the use of a minor engaging in sexually explicit conduct, and that depicted a minor engaging in sexually explicit conduct.
The law provides for a mandatory minimum sentence of five years in prison and a maximum total sentence of 20 years in prison, a fine of $250,000, and a term of supervised release of at least five years and up to life. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense(s) and the prior criminal history, if any, of the defendant. Indicate relevant bond/detention information if known
Assistant United States Attorney Benjamin J. Risacher is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania man admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Solomon Williams, of Reading, Pennsylvania, has admitted to his role in a firearms trafficking conspiracy, United States Attorney William J. Ihlenfeld, II announced.
Williams, 28, pleaded guilty today to one count of “Conspiracy.” Williams admitted to working with others to purchase, possess, and transfer firearms to persons who couldn’t legally purchase or possess firearms. The crimes took place from April 2019 to December 2020 in Berkeley County and elsewhere.
Williams faces up to five years of incarceration and fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Penitas city manager pleads guiltyRead the Press Release
McALLEN, Texas – A 38-year-old McAllen resident has pleaded guilty to a criminal information charging him with bribery and bankruptcy fraud, announced Acting U.S. Attorney Jennifer B. Lowery.
Omar X. Romero admitted that in 2018 he utilized a cellular phone to communicate with other public officials individuals regarding a scheme to sell a water tank to Agua Special Utility District (SUD) and compensation to be paid in consideration for board votes.
Romero also admitted he was appointed to serve as the chief restructuring officer of Hidalgo County Emergency Services Foundation on Nov. 4, 2019, in connection with their bankruptcy proceedings. While serving in that role, he obtained at least $50,000 from the debtor’s estate that the bankruptcy court had not authorized or earned as compensation for his services.
U.S. District Judge Ricardo H. Hinojosa will impose sentencing Jan. 20, 2022. At that time, Romero faces up to five years in federal prison on each count of conviction. He was permitted to remain on bond pending that hearing.
The FBI conducted the investigation with the assistance of the Texas Department of Insurance and McAllen Police Department. Assistant U.S. Attorney (AUSA) Roberto Lopez is prosecuting the criminal case. AUSA Richard Kincheloe represents the government in the related bankruptcy proceedings.
Passaic County Man Admits Illegal Possession of Firearm and AmmunitionRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man with a previous felony conviction today admitted illegally possessing a firearm and ammunition, Acting U.S. Attorney Rachael A. Honig announced.
Aazhone Kawashire Edwin, 25, of Paterson, pleaded guilty before U.S. District Judge Claire C. Cecchi to an indictment charging him with possession of a firearm and ammunition by a convicted felon.
According to documents filed in this case and statements made in court:
On June 7, 2020, Edwin possessed a firearm loaded with approximately 15 rounds of 9mm ammunition. Edwin has previously been convicted of at least one felony offense, including possession of controlled substances.
The firearms offense to which Edwin pleaded guilty carries a maximum sentence of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for March 15, 2022.
Acting U.S. Attorney Honig credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark, and members of the Paterson Police Department, under the direction of Director Jerry Speziale and Police Chief Ibrahim Baycora, with the investigation leading to today’s guilty plea.
This case is part of the Violent Crime Initiative (VCI), which was formed in 2020 by the U.S. Attorney’s Office for the District of New Jersey, the Passaic County Prosecutor’s Office, and the City of Paterson’s Department of Public Safety for the purpose of combatting violent crime in and around Paterson. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration, the U.S. Marshals, the Paterson Department of Public Safety, the Paterson Police Department, the Passaic County Prosecutor’s Office, the Passaic County Sheriff’s Office, N.J. State Parole, Passaic County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, and N.J. Department of Corrections.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the U.S. Attorney’s Office Organized Crime and Gangs Unit in Newark.
Defense counsel: James A. Plaisted Esq., Hackensack, New Jersey
Pair indicted for defrauding COVID-19 benefit programsRead the Press Release
Seattle – A Seattle area pair was indicted today in the Western District of Washington, for more than $1 million in fraud on COVID-19 relief programs, announced U.S. Attorney Nick Brown. Bryan Alan Sparks, 40, and Autumn Gail Luna, 22, are charged in a 16-count indictment with defrauding Washington State Employment Security Division (ESD) of more than $500,000 in benefits and defrauding the Small Business Administration of approximately $520,000. The two are currently in federal custody in Washington, D.C. after being arrested at Union Station with cocaine, heroin, and methamphetamine.
According to the indictment, from March 2020 until at least January 2021, the two used stolen personal information of more than 50 Washington residents to apply for unemployment benefits. The pair had benefits loaded onto debit cards and mailed to a variety of addresses in the Seattle area where they or their co-conspirators could retrieve them. They also opened fraudulent bank accounts and had benefits paid directly to those accounts. They also used many of those same stolen identities to apply for loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The Small Business Administration paid approximately $520,000 in Economic Injury Disaster Loan (EIDL) proceeds to the pair. The total unemployment benefits the two fraudulently obtained is more than $500,000.
In furtherance of their scheme, Sparks and Luna used the stolen personal information to create counterfeit driver’s licenses and obtain fraudulent driver’s licenses from the Washington State Department of Licensing. They maintained over a dozen phone numbers on as many cell phones, each of which were labeled with the phone number and names of stolen identities. The defendants also maintained detailed ledgers and electronic files of stolen personal information, credit card numbers, and financial transactions associated with each stolen identity.
The pair are charged with conspiracy, 5 counts of mail fraud, 6 counts of wire fraud and 4 counts of aggravated identity theft.
Conspiracy is punishable by 5 years in prison. Wire fraud and mail fraud that relate to a presidentially declared major disaster or emergency is punishable by up to 30 years in prison. Aggravated identity theft is punishable by a mandatory minimum two years in prison to run consecutive to any other sentence imposed in the case.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The investigation of this case is led by the Social Security Administration, Office of the Inspector General and U.S. Postal Inspection Service, with partners: Colusa County Sheriff’s Office (CA); Washington State Employment Security Department; Small Business Administration, Office of the Inspector General; Amtrak Police Department (D.C.); FBI (Sacramento, CA office); FBI Cyber Task Force (D.C.); Washington State Department of Licensing, Driver and Vehicle Investigations; and the Department of Labor, Office of the Inspector General.
The case is being prosecuted by Assistant United States Attorneys Cindy Chang and Seth Wilkinson.
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.
sparks-luna_indictment.pdfOver 60 Undocumented Noncitizens Concealed in Box TruckRead the Press Release
ALPINE – A Las Cruces man was arrested yesterday in Brewster County on criminal charges related to his alleged involvement in human trafficking.
According to court documents, Javier Duarte, 22, was driving a box truck through the Highway 118 checkpoint when U.S. Border Patrol Agents referred him to secondary inspection. Agents found 67 people concealed in the truck. Four of the individuals were minors, ranging from eight to 13 years old. In addition, three of the individuals were found to have prior aggravated felonies to include rape, possession with intent to distribute drugs and crimes involving moral turpitude.
Duarte is charged by criminal complaint with one count of transportation of aliens and one count of aiding or assisting aliens to enter the U.S. who were previously convicted of an aggravated felony. If convicted, Duarte faces a maximum penalty of 10 years in prison on both counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ashley C. Hoff of the Western District of Texas; Homeland Security Investigations (HSI) Acting Special Agent in Charge Taekuk Cho; and Big Bend Sector Chief Patrol Agent Sean McGoffin made the announcement.
HSI and U.S. Border Patrol are investigating the case.
Assistant U.S. Attorneys Lance Kennedy and Kevin Eaton are prosecuting the case.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Omaha Man Sentenced for Drug and Firearm ChargesRead the Press Release
Acting United States Attorney Jan Sharp announced that Robert Sullivan, 45, of Omaha, Nebraska, was sentenced today in federal court for possessing methamphetamine with the intent to distribute and as a felon in possession of a firearm. United States District Court Judge Brian C. Buescher sentenced Sullivan to 87 months’ imprisonment on each count to run concurrently. Sullivan will serve a four-year (Count I) and three-year (Count II) term of supervised release following his release from the Bureau of Prisons to be served to run concurrently. There is no parole in the federal system.
On January 26, 2021, Omaha Police Department officers executed a search on Sullivan’s Omaha residence. Officers searched the defendant and found a baggie of more than 35 grams of methamphetamine which was laboratory tested and confirmed as to purity. This amount of methamphetamine is indicative of distribution. Officers also recovered a Hiawatha Model 567 20-gauge shotgun at the residence. The shotgun was cut down in length, measuring 24 inches overall, with a 12.5-inch barrel. As a previously convicted felon for possessing a controlled substance in 2017, Sullivan was prohibited from possessing a firearm.
This case was 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.
This case was investigated by the Omaha Police Department.
Newark Man Sentenced to 41 Months in Prison for Firearms Violations Including Illegal Possession of MachinegunRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 41 months in prison for illegal possession of a machinegun, possession of a firearm by a convicted felon, and possession of an unregistered firearm, Acting U.S. Attorney Rachael A. Honig announced.
Anthony Reynolds, 28, previously pleaded guilty before U.S. District Judge Brian R. Martinotti, who imposed the sentence today.
According to documents filed in this case and statements made in court:
On May 2, 2020, while on patrol near Summer Avenue and May Street, Newark police officers saw Reynolds remove a .40-caliber Glock handgun from his waistband and place it underneath a parked vehicle. The gun was loaded with 11 rounds of ammunition and was fitted with a “Glock Switch,” which effectively converted it into a machinegun. The machinegun was not registered in the National Firearms Registration and Transfer Record, as required by law. Reynolds was previously convicted in federal court in the District of New Jersey of carjacking, an offense punishable by more than one year’s imprisonment.
In addition to the prison term, Judge Martinotti sentenced Reynolds to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews, with the investigation leading to today’s sentencing. She also thanked the Newark Department of Public Safety, under the leadership of Director Brian O’Hara, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys Sophie E. Reiter of the Cybercrime Unit and Sarah A. Sulkowski of the Violent Crimes Unit in Newark.
Defense counsel: Chester Keller Esq., First Assistant Federal Public Defender, Newark
New York Donut Shop Operators Convicted of Tax EvasionRead the Press Release
A federal jury in Utica, New York, convicted a New York couple and their son today for conspiring to defraud the United States and for tax evasion.
According to evidence presented at trial and court documents, John Zourdos, his wife Helen Zourdos, and their son Dimitrios Zourdos, all of Rome, New York, operated three Dippin Donuts stores with locations in Rome and New Hartford. From 2013 to 2017, the defendants concealed more than $2.8 million in cash sales from the IRS, and evaded more than $650,000 in individual taxes, by depositing cash directly into their personal bank accounts instead of business bank accounts, providing incomplete information to their accountant and causing their accountant to file false individual and corporate tax returns with the IRS. The defendants also used unreported cash sales to fund a lavish lifestyle that included, among other things, the purchase of multiple luxury vehicles. Evidence at trial further showed that the defendants paid some employees “off the books” cash wages for overtime hours. They paid other employees entirely “off the books” in cash for all hours worked.
John, Helen and Dimitrios Zourdos were each convicted of one count conspiracy to defraud the United States, seven counts of tax evasion, and seven counts of aiding and assisting in the filing of false corporate tax returns. Sentencing hearings for all three defendants will be scheduled at a later date. All face a maximum penalty of five years in prison on each count of conspiracy and tax evasion, and three years in prison on each count of assisting the filing of false tax returns. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Carla B. Freedman of the Northern District of New York made the announcement.
IRS-Criminal Investigation investigated the case.
Assistant Chief John N. Kane of the Tax Division and Assistant U.S. Attorney Michael F. Perry for the Northern District of New York are prosecuting the case.
New Orleans Man Sentenced for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – The Honorable Sarah S. Vance sentenced ROY LEE SR., age 58, of New Orleans, Louisiana, to 96 months in the Bureau of Prisons for violating the Federal Controlled Substances Act, announced U.S. Attorney Duane A. Evans.
According to the court records, LEE SR. conspired to possess with the intent to distribute and to distribute a quantity of a mixture or substance containing a detectable amount of heroin.
United States District Court Judge Sarah S. Vance sentenced LEE SR. to 96 months custody in the Bureau of Prisons, to be followed by five (5) years of supervised release. LEE SR. was also ordered to pay a $100 mandatory special assessment fee.
This case was investigated by Special Agents of the Federal Bureau of Investigation (FBI). The prosecution is being handled by Assistant United States Attorney David Haller.
Myrtle Beach Man Sentenced to 8 Years in Federal Prison on Fentanyl ChargeRead the Press Release
Florence, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Shamar Jabarns McCollum, 24, of Myrtle Beach, was sentenced to 8 years in federal prison after pleading guilty to possession of fentanyl with the intent to distribute.
Evidence presented to the court showed that on July 1, 2020, officers from the Myrtle Beach Police Department Street Crimes Unit and Patrol located McCollum in Myrtle Beach and placed McCollum under arrest for an outstanding warrant. During a search of McCollum incident to arrest, officers located a digital scale and two wax slips containing heroin and fentanyl.
Chief United States District Judge R. Bryan Harwell sentenced McCollum to 96 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Myrtle Beach Police Department Street Crimes Unit and Patrol.
Assistant United States Attorney Lauren Hummel prosecuted the case.
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Member of Boston Latin Kings Chapter Sentenced for Racketeering and Drug ConspiraciesRead the Press Release
BOSTON – A former member of the Boston-based Devon Street Kings Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) was sentenced yesterday on racketeering and drug charges.
Steven Familia-Valdez, a/k/a “King Haze,” 27, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to one year in prison and three years of supervised release. The government recommended a sentence of two years in prison. On June 23, 2021, Familia-Valdez pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine and cocaine base and to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
Named for its origin on Devon Street in Boston, the Devon Street Kings or D5K Chapter of the Latin Kings, included approximately a dozen members. The Devon Street Kings reported to the Massachusetts State Leadership of the Latin Kings, providing information, structure, funds and other resources to further the Latin Kings’ goals and directives in the state. Familia-Valdez admitted to conspiring with other gang members to further the operations of the Latin Kings, attending meetings of the Latin Kings and discussing crimes of violence and witness retaliation with his fellow gang members.
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.
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. Familia-Valdez is the 39th defendant to be sentenced in the case.
Acting United States Attorney Nathaniel R. Mendell; 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 New Bedford Police Chief Joseph C. Cordeiro 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. Attorneys Philip A. Mallard of Mendell’s Organized Crime and 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.
McKeesport Felon Allegedly Possessed a GunRead the Press Release
PITTSBURGH, PA. One resident of McKeesport, PA, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Yadell Eric Jones, age 49, as the sole defendant.
According to the Indictment, Jones is alleged to have possessed a firearm as a convicted felon on or about October 26, 2021. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Douglas C. Maloney is prosecuting this case on behalf of the government.
The Drug Enforcement Agency conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.Mayor of Stonecrest and bookkeeper arraigned on federal charges relating to theft of COVID-19 relief fundsRead the Press Release
ATLANTA - Jason Lary, the Mayor of Stonecrest, Georgia, has been arraigned on federal charges of wire fraud, conspiracy, and federal program theft. The charges relate to a scheme to allegedly steal federal relief funds granted to Stonecrest to address the economic fallout of the COVID-19 pandemic. Lania Boone, a bookkeeper for the entity hired by Stonecrest to disburse the relief funds, has also been arraigned on a federal charge of conspiring with Lary to steal relief funds.
“Lary allegedly abused the power and trust conferred on him as Mayor of Stonecrest to steal hundreds of thousands of dollars intended for COVID-19 relief,” said Acting U.S. Attorney Kurt R. Erskine. “Instead of providing aid to Stonecrest’s deserving citizens, Lary allegedly diverted funds for his own use, including to pay off his taxes and the mortgage on his lakefront home.”
“It is very troubling when an elected official, someone sworn to protect the community they serve, violates that oath by stealing relief funds intended to aid their community during a global pandemic,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The allegations against Lary and Boone indicate an abuse of a position of trust and blatant disrespect for the law, which will not be tolerated by the FBI.”
According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: In March 2020, the President signed the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act into law in response to the economic fallout of the COVID-19 pandemic. Under the CARES Act, the federal government distributed COVID-19 relief funds to individual Americans, federal agencies, and state and local governments, including $125 million to DeKalb County. The federal government permitted DeKalb County to further disburse these relief funds to its municipalities. In July 2020, the DeKalb County Board of Commissioners voted to disburse some of the relief funds to its municipalities, including a $6.2 million grant to Stonecrest.
Stonecrest was required to spend the relief funds in accordance with the CARES Act. In general, according to the Department of the Treasury, relief funds could “only be used to cover costs that – [were] necessary expenditures incurred due to the public health emergency . . . . and were incurred during the period that [began] on March 1, 2020, and [ended] on December 30, 2020.” Examples of eligible expenditures were medical expenses, public health expenses, and grants to small businesses to reimburse the costs of business interruption caused by required closures.
In September 2020, Jason Lary, the Mayor of Stonecrest, signed a resolution acknowledging these CARES Act requirements. The resolution also adopted a funding plan for most of Stonecrest’s relief funds. The plan provided $1 million to the Stonecrest Cares Program for mask distribution, COVID-19 education and testing, and other purposes. In practice, the Stonecrest Cares Program directed relief funds to churches and non-profit organizations in and around Stonecrest. The plan also provided $5 million to the COVID-19 CARES Act Small Business Program (“Small Business Program”).
Stonecrest did not disburse the $6 million allocated to the Stonecrest Cares Program and Small Business Program. Instead, the city contracted with Municipal Resource Partners Corporation, Inc. (“MRPC”) to provide accounting services and to disburse the relief funds as directed by Stonecrest. Before the contract was signed, Lary allegedly worked behind the scenes to assist MRPC, including by recruiting its CEO, opening its bank accounts, and ensuring that Lania Boone would be hired as MRPC’s bookkeeper.
In or about November 2020, Stonecrest published an application on its website for businesses to apply for relief funds under the Small Business Program. The application included the question, “are you willing to allocate 25% of your grant to marketing your business?” Hundreds of businesses applied for relief funds, but most of the applicants were rejected. From about November 2020, until in or about February 2021, Lania Boone signed dozens of checks on behalf of MRPC, directing millions of dollars of relief funds to individuals, businesses, churches, and non-profit organizations. Lary allegedly helped decide where the relief funds were directed.
Lary allegedly abused his position to devise and execute a scheme to steal relief funds after they were distributed by MRPC. First, Lary allegedly told churches that received relief funds under the Stonecrest Cares Program that they were required to contribute a portion of those funds for purposes identified by Lary.
For example, Lary presented a check for $150,000 in relief funds to “Church 1,” on the condition that $50,000 be given to a company called Real Estate Management Consultants, LLC (“REMC”). Lary allegedly did not tell Church 1 at this time that he actually controlled REMC. Lary allegedly falsely stated that the $50,000 would be used to assist with home repairs for people who could not afford them due to COVID-19. In reality, Lary allegedly used the money for his own purposes, including to pay off his outstanding federal, state and local tax liabilities.
As another example, Lary presented a check for $50,000 to “Church 2.” Later, a person acting on Lary’s behalf told Church 2 to contribute $4,500 of the relief funds to REMC, purportedly for rent assistance. Lary allegedly spent the money to pay his own property expenses and his dues to the Georgia Campaign Finance Committee.
In addition, Lary and others acting on his behalf allegedly solicited relief funds from businesses that received grants under the Small Business Program. Lary and others allegedly falsely claimed that the money would be each business’s “contribution” to Stonecrest-related marketing and advertising. But Lary and others asked that these “contributions” be given not to Stonecrest, but to entities called Visit Us, Inc., and Battleground Media, LLC. Lary allegedly did not tell the businesses that he controlled these entities.
In total, businesses were allegedly defrauded out of hundreds of thousands of dollars of relief funds. The relief funds deposited into the Visit Us and Battleground Media accounts were allegedly used by Lary to benefit himself and others. For example, Lary allegedly used relief funds held by Visit Us to pay for an associate’s political advertising.
Finally, Lary allegedly conspired with Lania Boone, MRPC’s bookkeeper, to steal relief funds before they were disbursed by MRPC. In January 2021, Boone allegedly used her access to one of MRPC’s bank accounts to wire transfer approximately $108,000 of relief funds to a mortgage servicing company. Lary and Boone allegedly knew the purpose of the transfer was to pay off the mortgage on a lakefront home owned by Lary. Around the same time, Lary allegedly directed approximately $7,600 in stolen relief funds to be paid by Visit Us for Boone’s son’s college tuition and rent.
Jason Lary, 59, of Stonecrest, Georgia, and Lania Boone, 60, of Decatur, Georgia, were each arraigned on a criminal information on November 10, 2021 before U.S. Magistrate Judge Regina D. Cannon. Members of the public are reminded that each criminal information only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Trevor C. Wilmot is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Mauston Man Sentenced to 70 Months for Distributing MethamphetamineRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Jerry Scheerer, 38, Mauston, Wisconsin, today pleaded guilty to distributing methamphetamine and was sentenced by Chief U.S. District Judge James D. Peterson to 70 months in federal prison. This prison term will be followed by 4 years of supervised release.
On November 3, 2020, law enforcement agents arranged for a confidential informant to purchase methamphetamine from Scheerer in Mauston. After the confidential informant purchased just over 25 grams of methamphetamine from Scheerer, Scheerer asked the confidential informant if they would like to buy a “dirty” gun. The confidential informant agreed and purchased a Ruger revolver from Scheerer later on that same day. The legal owner of the Ruger reported it stolen to Mauston police on October 27, 2020.
At the time of this offense Scheerer was under Wisconsin state probation in Juneau County Case No. 19CF2 as a result of a conviction for possessing methamphetamine with intent to deliver. The sentence imposed by Chief Judge Peterson will run concurrently to the 6-year sentence Scheerer is serving because of the revocation of his probation in that case.
The charges against Scheerer were the result of an investigation conducted by the Wisconsin Department of Justice Division of Criminal Investigation, Mauston Police Department, Sauk County Sheriff’s Office, Juneau County Sheriff’s Office, Drug Enforcement Administration, and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Taylor L. Kraus.
Maryville Man Sentenced to 45 Years in Federal Prison for Child Exploitation CrimesRead the Press Release
KNOXVILLE, Tenn. – The Honorable Thomas A. Varlan, United States District Judge for the Eastern District of Tennessee, sentenced Tywan Montrease Sykes, 46, of Louisville, Tennessee, a previously registered sex offender, to serve 45 years in federal prison on child exploitation charges. A federal jury convicted Sykes’s in March 2021 of charges of production of child pornography, enticement of a minor for illegal sex, committing those offenses while being required to register as a sex offender, and possession of child pornography. Sykes had been previously convicted of statutory rape in 1998 and aggravated statutory rape in 2012.
Following his release from prison, the United States Probation Office will supervise the defendant for 30 years and he will be required to register as a sex offender in any state in which he resides, works, or attends school.
“This case demonstrates our commitment to protecting our children through the prosecution of recidivist child predators to the fullest extent of the law,” said Acting United States Attorney Francis M. Hamilton, III.
“The lengthy sentence in this case shows the significant punishment child predators face for their incomprehensible actions,” said Homeland Security Investigations (HSI) Nashville Special Agent in Charge Jerry C. Templet, Jr. “HSI will continue to work with our law enforcement partners to remove these offenders from our communities and protect their vulnerable young victims.”
According to the evidence presented at trial, the investigation began after Facebook notified the National Center for Missing and Exploited Children (NCMEC) that Sykes was soliciting a 15-year-old girl for sex and child pornography with messages he sent to the girl through Facebook. NCMEC notified the Knoxville Police Department’s Internet Crimes Against Children unit (KPD-ICAC), which immediately contacted the local Department of Children’s Services office to help identify the girl and ensure her safety. KPD-ICAC arrested the defendant within 48 hours after the minor was interviewed. Federal search warrants were used to obtain the defendant’s and the victim’s Facebook communications and to search the defendant’s phone, which revealed substantial evidence that was used at trial to convict Sykes.
The case was investigated by KPD-ICAC in partnership with HSI. The case was prosecuted by Assistant United States Attorneys Matthew T. Morris and Gretchen Mohr.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about PSC, please visit www.projectsafechildhood.gov.
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Maryland Man Sentenced to 151 Months in Prison for Kidnapping, Assault, and Other CrimesRead the Press Release
WASHINGTON – A Maryland man has been sentenced to 151 months in prison for carjacking and kidnapping a grandmother and her 13-year-old granddaughter at gunpoint in Prince George’s County, Maryland, and driving them into Southeast Washington, where he then assaulted and threatened others, including a police officer.
The announcement was made by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Jamal Gilmore, 34, of Mount Rainier, Md., pleaded guilty in July 2021, in the U.S. District Court for the District of Columbia, to federal charges of kidnapping and possession of a firearm and ammunition by a felon, as well as District of Columbia charges of assault with a deadly weapon and assault on a police officer while armed. He was sentenced on Nov. 8, 2021, by the Honorable Royce C. Lamberth. Following his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, the chain of events began at about 8 p.m. on Saturday, May 2, 2020. The woman and her granddaughter were utilizing a rental moving truck on Southview Drive in Oxon Hill, Md. The woman was in the driver’s seat and the teenager in the front passenger seat. Gilmore approached the passenger side of the vehicle, brandished a semi-automatic handgun, got into the vehicle, and demanded the woman drive or he would kill her. He took her cellphone and ordered her to drive to a police station. However, she made a wrong turn and entered a parking lot in the rear of a building in the 2200 block of Southern Avenue SE. The parking lot led into a dead end, and Gilmore left the vehicle with the woman’s cellphone and the gun that he was carrying.
At this point, Gilmore jumped a fence and ran into an apartment complex on 22nd Street SE. He attempted to gain access to one of the ground-floor apartments, where three people were inside—including a 10-year-old child. He demanded someone open the door. When no one complied, he fired a gunshot through the front window of the apartment. No one was injured by the shooting. Two of the apartment’s occupants fled out the back window, and one was injured while fleeing.
Gilmore then went back outside and flagged down a police officer, banging on the rear driver’s side window of the officer’s patrol car with the handgun he was carrying. He then fled into the hallway of another nearby apartment building as other MPD officers responded to the scene. As officers arrived, he made his way to the landing between the first and second floor. He used the firearm to break the glass window on the landing, jumped out the window, and fell to the ground – still with the firearm in his hand. Gilmore was arrested on the scene and has been detained ever since.
This investigation was conducted by the FBI Washington Field Office’s Violent Crime Task Force, in partnership with MPD and the Prince George's County Police. The task force focuses on identifying, investigating, and bringing prosecutable cases against violent offenders in the Washington, D.C. region.
In announcing the sentence, U.S. Attorney Graves, Special Agent in Charge Jacobs, and Chief Contee commended the work of those who investigated the case from the FBI’s Washington Field Office and Metropolitan Police Department. They also expressed appreciation for the assistance provided by the Prince George’s County, Md. Police Department. Finally, they commended the efforts of Victim/Witness Advocate Yvonne Bryant, Paralegal Specialist Catherine O’Neal, and Assistant U.S. Attorney Rachel A. Fletcher, of the Violent Crime and Narcotics Trafficking Section, who prosecuted the case.
Marshall County man admits to firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Edward Lee Nelson, of Moundsville, West Virginia, has admitted to a firearms charge, United States Attorney William J. Ihlenfeld, II announced.
Nelson, 29, pleaded guilty today to one count of “Unlawful Possession of Ammunition.” Nelson, a person prohibited from having firearms because of a prior conviction, admitted to having 20 cartridges of ammunition in November 2020 in Marshall County.
Nelson faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Clayton J. Reid is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearm & Explosives and the Marshall County Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Marion County man sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Terrance Cecil Clark, of Fairmont, West Virginia, was sentenced today to 41 months of incarceration for a firearms charge, United States Attorney William J. Ihlenfeld, II announced.
Clark, 28, pled guilty in March 2021 to one count of “Unlawful Possession of Firearm.” Clark, a person prohibited from having a firearm because of prior convictions, admitted to having 9mm pistol in May 2020 in Marion County.
Assistant U.S. Attorney Sarah E. Wagner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, & Explosives investigated.
U.S. District Judge Thomas S. Kleeh presided.
Management Consulting Firm Partner Charged in Insider Trading SchemeRead 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 Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a criminal complaint charging PUNEET DIKSHIT, a partner in a global management consulting firm (the “Consulting Firm”), with securities fraud in connection with a scheme to commit insider trading based on material, nonpublic information regarding the upcoming public announcement that an investment bank (the “Investment Bank”) – which DIKSHIT and the Consulting Firm were advising – would be acquiring GreenSky, Inc. (“GreenSky”). The defendant was arrested earlier today and will be presented this afternoon before U.S. Magistrate Judge Kevin N. Fox.
U.S. Attorney Damian Williams said: “As alleged, Puneet Dikshit, a consulting firm partner, exploited his access to material nonpublic information about a pending acquisition of GreenSky, Inc., to trade in GreenSky call options. This breach of duties to his firm and its investment bank client – and violation of the law – allegedly reaped the defendant nearly half a million dollars in illegal profits. Now Puneet Dikshit has been charged with serious felonies for his alleged conduct.”
FBI Assistant Director Michael J. Driscoll said: “As alleged, Mr. Dikshit exploited his access to material nonpublic information regarding the acquisition of Green Sky to profit from trades he made in options markets. Actions like those we allege serve to undermine the public’s confidence in the integrity of financial markets, and, as we have demonstrated time and again, the FBI and our partners are committed to ensuring a level playing field for all investors. Mr. Dikshit now faces significant federal charges, which should serve as a warning to others considering similar conduct.”
According to the allegations in the Complaint unsealed today in Manhattan federal court:[1]
GreenSky was a publicly traded financial technology company that provided technology to banks and merchants to make loans to consumers for home improvement, solar, healthcare, and other purposes. GreenSky’s common stock traded under the symbol “GSKY” on the NASDAQ.
Between on or about November 2019 and on or about July 2020, and again between on or about April 2021 and on or about September 2021, the Investment Bank engaged the Consulting Firm to provide various consulting services related to its consideration of an acquisition of GreenSky and the post-acquisition integration of GreenSky. DIKSHIT was one of the Consulting Firm partners leading these engagements. In that role, he had access to material, nonpublic information, which he misappropriated and, in violation of the duties that he owed to the Investment Bank and the Consulting Firm, used to trade GreenSky call options.
DIKSHIT engaged in this trading between on or about July 26, 2021, and on or about September 15, 2021 – at the same time he was leading the Consulting Firm team that was advising the Investment Bank about its potential acquisition of GreenSky. At various times between on or about July 26, 2021, and on or about September 13, 2021, DIKSHIT purchased and sold relatively small numbers of GreenSky call options, which had expiration dates weeks or months from the time of purchase. However, in the two days before the September 15, 2021, public announcement that the Investment Bank would be acquiring GreenSky, DIKSHIT sold all of these longer-dated GreenSky call options and purchased approximately 2,500 out-of-the-money GreenSky call options that were due to expire just a few days later, on September 17, 2021. After the deal was announced, DIKSHIT sold these calls and realized profits of approximately $450,000.
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DIKSHIT, 40, of New York, New York, is charged with two counts of securities fraud, each of which has a maximum sentence of 20 years in prison. The statutory maximum sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Williams praised the outstanding work of the FBI. Mr. Williams further thanked the U.S. Securities and Exchange Commission, which today filed a parallel civil action, for its assistance and cooperation in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Joshua A. Naftalis and Matthew Podolsky are 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 in this release constitute only allegations, and every fact described should be treated as an allegation.
Man from Albuquerque sentenced to 24 years in federal prison for multiple armed robberiesRead the Press Release
ALBUQERQUE, N.M. – Lalonzo Simmons, 46, of Albuquerque, was sentenced in federal court on Nov. 4 to 24 years in prison for interference with interstate commerce by robbery and violence, possessing and discharging a firearm in furtherance of a crime and being a felon in possession of a firearm and ammunition.
Simmons pleaded guilty Dec. 26, 2019. According to the plea agreement and other court records, on March 19, 2018, Simmons and his accomplice, Shakeam Kinney, 32, entered an Albuquerque business through the back of the store armed with firearms when they encountered two employees. Kinney demanded the phone of one of the employees, and when the employee initially did not give Kinney the phone Kinney discharged his weapon. Shortly after, Kinney and Simmons fled the store after taking money from the register.
On April 3, 2018, Simmons and Kinney robbed an Albuquerque marijuana dispensary at gunpoint and fled the store with stolen money and large amounts of marijuana. On May 1, 2018, Simmons and Kinney, robbed another Albuquerque dispensary at gunpoint. Kinney entered the business and discharged his weapon into the ceiling, demanding money and merchandise and threatening an employee. Kinney and Simmons fled the store with stolen money and marijuana. Soon after, Simmons was arrested by law enforcement at his residence.
On June 15, Kinney was sentenced to 22 years and five months in prison for interference with interstate commerce by robbery and violence, possessing and discharging a firearm in furtherance of a crime and being a felon in possession of firearm and ammunition.
Upon his release from prison, Simmons will be subject to five years of supervised release.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department investigated the case. Special Assistant U.S. Attorney Timothy D. Trembley prosecuted the case.
Man Sentenced for Armed Robbery and CarjackingRead the Press Release
ALEXANDRIA, Va. – A Washington, DC, man was sentenced today to 357 months in prison for his role in an armed robbery and carjacking that led to a high-speed police chase and resulted in injuries to two police officers.
According to court documents, on August 28, 2019, Antwain Proctor, 36, together with Jovan Doir Johnson, obtained a stolen vehicle at gunpoint in Arlington, taking the driver with them for part of the drive. Proctor and Johnson then drove to a 7-Eleven in Lorton and robbed it at gunpoint, leaving the clerk with a visible injury. Both men then fled the 7-Eleven traveling north on Interstate 95 before taking Interstate 495 toward the Wilson Bridge, where several Virginia State Police cruisers attempted to stop the individuals in the stolen vehicle as it approached the bridge. When one cruiser attempted to stop the stolen vehicle, the vehicle drove into the rear corner of the cruiser, forcing it into the concrete median barrier at a high rate of speed. The first cruiser’s air bag deployed and the trooper was taken to the hospital with injuries as a result of the impact. A second cruiser subsequently advanced and pushed the stolen vehicle into the concrete median just before it reached the bridge. The resulting impact also caused the second cruiser’s driver-side airbag to deploy. The trooper driving that second cruiser was also subsequently taken to the hospital. The Fairfax County Police Helicopter assisted in the stop.
On December 2, 2020, Jovan Doir Johnson was sentenced to 357 months of imprisonment.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; Andy Penn, Arlington County Chief of Police; Kevin Davis, Fairfax County Chief of Police; and Colonel Gary T. Settle, Virginia State Police Superintendent, made the announcement after sentencing by U.S. District Judge Rossie D. Alston, Jr.
Assistant U.S. Attorneys Ron Walutes and Bibeane Metsch prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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. 1:19-cr-351.
Luzerne County Man Charged with Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on November 9, 2021, James Artis-Bryan, age 41, of Wilkes-Barre, Pennsylvania, was indicted by a federal grand jury on two separate drug trafficking charges.
According to Acting United States Attorney Bruce D. Brandler, one indictment alleges that in early 2020, Artis-Bryan conspired with other individuals to distribute and possess with intent to distribute over 500 grams of methamphetamine. A second indictment alleges that on August 9, 2021, Artis-Bryan possessed with the intent to distribute fentanyl and possessed a firearm in furtherance of his drug trafficking activities.
The cases were investigated by Homeland Security Investigations, the Pennsylvania Office of Attorney General, and the United States Postal Inspection Service. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
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.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Louise Larivee Pleads Guilty to Non-Profit EmbezzlementRead the Press Release
The Acting United States Attorney for the District of Vermont announced that Louise Larivee, 63, of Swanton, pleaded guilty today in United States District Court to a federal fraud charge. The guilty plea came on the third day of a jury trial in Rutland. Chief U.S. District Judge Geoffrey Crawford continued Larivee’s release on conditions pending sentencing, which will be scheduled for the spring.
On June 13, 2019, a federal grand jury in Burlington returned a two-count indictment charging Larivee with conspiracy and federal program embezzlement. Candy Thomas, 64, also of Swanton, a separately charged co-conspirator, had previously pled guilty to the federal program embezzlement charge. According to the evidence presented during the trial and other court documents, between 2013 and 2017, Larivee was employed by the Abenaki Self Help Association, Inc. in Swanton as the director of a federal grant program administered by the U.S. Department of Labor. ASHAI functioned as a service arm of the Abenaki Nation, promoting economic and social development through programatic efforts in education, employment and economic development. Each year, ASHAI received tens of thousands of dollars in grant money from the Department of Labor. During that same period, Candy Thomas worked at ASHAI as an office worker and bookkeeper. Thomas had check signing authority on ASHAI’s bank accounts.
According to the indictment and testimony at Larivee’s trial, between 2013 and 2017, Larivee and Thomas conspired to embezzle, and did embezzle, more than $100,000 from ASHAI. Thomas aided the commission of this theft by issuing checks and giving cash to Larivee, at Larivee’s request, in amounts that significantly exceeded Larivee’s authorized compensation. Larivee also received travel reimbursement checks based upon fraudulently inflated mileage claims. Thomas helped cover up this fraud by sending tax forms to the Internal Revenue Service that concealed the true amount of ASHAI funds that were being paid over to Larivee.
Thomas, who testified at Larivee’s trial, is scheduled to be sentenced next month.
Both Larivee and Thomas face up to ten years of imprisonment and a fine of up to $250,000. Their actual sentence will be determined with reference to federal sentencing guidelines.
This case was investigated by the U.S. Department of Labor’s Office of Inspector General.
Larivee is represented by David Kirby. Candy Thomas is represented by Assistant Federal Public Defender Steve Barth. The prosecutors are Assistant U.S. Attorneys Gregory Waples and Spencer Willig.
Local pipe companies face penalties for not cooperating with federal investigationRead the Press Release
HOUSTON – A civil action has been filed against MC Tubular Products and Metal One America for failing to comply with a federal summons, announced Acting U.S. Attorney Jennifer B. Lowery.
MC Tubular Products is a supplier of industrial pipe products used in the oil and gas industry. The company is a subsidiary of Metal One Holdings America, which sources materials, handles logistics and provides import/export management, trade finance, credit and risk management.
MC Tubular Products allegedly made misrepresentations to avoid paying more than $10 million in antidumping duties on metal pipe imported from Japan. As part of the investigation, they were issued a summons compelling the companies to produce documents which are expected to show whether either acted improperly, according to the filing in federal court today.
However, the allegations indicate they did not comply and failed to produce the required documents by the deadline.
Homeland Security Investigations and Customs and Border Protection are conducting the investigation.
Assistant U.S. Attorney Rick Kincheloe is handling the matter in coordination with the Civil Division’s National Courts Section.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Lemoore Union Treasurer Convicted of Embezzlement and Aggravated Identity TheftRead the Press Release
Fresno, Calif. — After a 2–day trial, a federal jury found Kevin Neal Crownover, 49, resident of Lemoore, California, guilty today of one count of embezzlement and theft of union assets and one count of aggravated identity theft, Acting United States Attorney Phillip A. Talbert announced. The trial was held before United States District Judge Dale A. Drozd.
According to evidence presented at trial, Crownover was treasurer of International Association of Machinists (IAM) Local Lodge 2947 at Lemoore Naval Air Station from June 2015 through October 2016. During that time, Crownover made unauthorized cash withdrawals and wrote unauthorized checks to himself, which he then endorsed into his own personal bank account. Crownover used a forged signature on the checks. The total loss was over $50,000.
This case was the product of an investigation by the United States Department of Labor, Office of Labor-Management Standards. Assistant United States Attorneys Laura D. Withers and Vincente A. Tennerelli are prosecuting the case.
Crownover is scheduled to be sentenced by Judge Drozd on February 14, 2022. Crownover faces a maximum statutory penalty of 5 years in prison and a $250,000 fine for embezzlement, with a mandatory 2-year consecutive term for aggravated identity theft. The actual sentence, however, will 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.