Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
21 December 2021
Hammond Man Sentenced to 18 Months in PrisonRead the Press Release
HAMMOND- Darryl Ivery, Jr., 24, of Hammond, Indiana, was sentenced by United States District Court Chief Judge Jon E. DeGuilio after pleading guilty to making false statements in connection with the acquisition of firearms, announced United States Attorney Clifford D. Johnson.
Ivery was sentenced to 18 months in prison followed by 1 year of supervised release.
According to documents in the case, between February and August 2020, Ivery purchased a total of 26 firearms on 17 different occasions from federally licensed firearms dealers in Lake County, Indiana. In each of the transactions, Ivery falsely certified on federal forms that he was the actual buyer. In reality, Ivery purchased the firearms for other individuals from Chicago, who paid him between $100 and $800 over the cost of the firearms to make the purchase. Law enforcement have recovered seven of the firearms: six in Chicago and one in Gary. Five of the firearms were recovered by law enforcement within one month of purchase, and one was recovered at the scene of a shooting.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Chicago Police Department, and the Gary Police Department. This case was prosecuted by Assistant U.S. Attorney Nicholas J. Padilla.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Guatemalan Man Charged with Misuse of a Social Security NumberRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that CESAR LOPEZ-MATA (LOPEZ-MATA), age 27, a citizen of Guatemala, was charged on December 20, 2021 in federal court in a one-count Bill of Information with misuse of a Social Security Number.
LOPEZ-MATA faces a maximum term of imprisonment of not more than five years, a fine of up to $250,000.00, and a mandatory special assessment fee of $100.00. Additionally, LOPEZ-MATA is subject to a period of supervised release after imprisonment of up to three (3) years.
According to the Bill of Information, on or about December 1, 2021, LOPEZ-MATA, for employment and for other purposes, knowingly and with intent to deceive, did falsely represent that a Social Security Number not issued to him, was assigned to him, in violation of Title 42, United States Code, Section 408(a)(7)(B).
U.S. Attorney Evans reiterated that the bill of information is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement and the Office of the Inspector General, Social Security Administration in investigating this matter. Assistant United States Attorney Julia K. Evans is in charge of the prosecution.
Gilford Man Sentenced to 180 Months for Drug Trafficking and Firearm ChargesRead the Press Release
CONCORD - Stephen Johnstone, 32, of Gilford, was sentenced to 180 months in federal prison for possession of methamphetamine with intent to distribute and possession of a firearm and ammunition by a convicted felon, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on July 21, 2020, New Hampshire State Probation and Parole officers made contact with Johnstone, who was a state parolee under their supervision. Johnstone appeared to be in possession of baggies of methamphetamine. The officers requested assistance from the Laconia Police Department.
Johnstone’s car was impounded and searched pursuant to a state search warrant. Detectives found a backpack containing a Ruger .380 handgun with five rounds of ammunition, over 680 grams of methamphetamine, over 170 grams of cocaine, and other evidence of drug trafficking. As a convicted felon, Johnstone was prohibited from possessing a firearm or ammunition.
“Armed drug dealers pose a significant threat to public safety,” said Acting U.S. Attorney Farley. “Although drug traffickers endanger the lives of our citizens by peddling deadly substances, the danger is enhanced when drug dealers possess firearms. As this case demonstrates, we will seek substantial prison sentences for the armed drug traffickers whose conduct threatens the security of communities in the Granite State.”
This matter was investigated by the Laconia Police Department and New Hampshire State Probation and Parole Office, with assistance from the Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorney Joachim H. Barth.
###
Former U.S. Navy Sailor Sentenced to 2.5 Years for Selling Export-Controlled Military Equipment to ChinaRead the Press Release
Assistant U. S. Attorney Alexandra F. Foster (619) 546-6735
NEWS RELEASE SUMMARY – December 21, 2021
SAN DIEGO – Ye Sang “Ivy” Wang, a former U.S. Navy sailor who was a Logistics Specialist First Class assigned to the Naval Special Warfare Command, was sentenced to 30 months in custody and ordered to pay a $20,000 fine for conspiring with her husband and co-defendant, Shaohua “Eric” Wang, to illegally export sensitive military equipment to China for profit.
Eric Wang pleaded guilty on September 26, 2019, admitting that he illegally sold export-controlled U.S. military equipment to China through his on-line business and that he enlisted his wife to use her Navy position to purchase the equipment for resale. Eric Wang also admitted that he maintained a warehouse in China to house the military equipment, travelled back and forth frequently, and had connections to buyers in China. On February 3, 2020, U.S. District Court Judge Cynthia Bashant sentenced Eric Wang to 46 months for his role in this scheme.
According to Ivy Wang’s plea agreement and the government’s sentencing memorandum, she purchased military equipment for Naval Special Warfare units as part of her duties as a logistics specialist from 2015 to 2019. In March 2018, she used her military email and mailing address to order a device for identifying United States military personnel in the field. This item was subject to U.S. Department of Commerce export controls, and not advertised for sale to civilians. She was deployed in Iraq at the time the device arrived on base in San Diego. She advised her command that the package containing this device was something she had obtained for her husband for a camping trip. In reality, she bought the device on behalf of her husband for him to resell it to China for profit.
Months later, in October 2018, upon returning from deployment to Iraq, Ivy Wang told the interviewing agents that she knew her husband was shipping military equipment to China illegally. Despite being interviewed by law enforcement agents, Ivy Wang took the device from her Navy command, brought it home and gave it to her husband. The device had been secretly disabled by law enforcement. Upon receipt, Eric Wang messaged a customer that he was in receipt of the item, but advised he could not ship the item to China, because “they are still investigating me... My friend is a SEAL who also got involved. They are investigating him as well.”
Ivy Wang told NCIS and HSI agents during her October 2018 interview that her husband sent her an Excel spreadsheet of military equipment items for her to purchase and that she knew those items were going to buyers in China. Eric Wang told her that he could not buy export-controlled military equipment using his personal email address, so he asked her to do it for him, using her position in the U.S. Navy and her military email address. She grew so annoyed at his repeated requests that, after purchasing equipment for him through March 2018, she gave him her password to her military email address and told him to buy the export-controlled military equipment posing as her after she deployed.
“This defendant used her position of trust to put the Navy and the nation at risk, and the sentence imposed today holds her accountable for her actions,” said Acting U.S. Attorney Randy Grossman, who praised the prosecution team, NCIS, HSI and Department of Commerce for their excellent work on this case.
“Ms. Wang betrayed her oath to the U.S. Navy and ultimately threatened the operational readiness and safety of our nation's military by attempting to acquire and illegally export sensitive military equipment to China,” said Special Agent in Charge Joshua Flowers of the NCIS Southwest Field Office. “NCIS and our partners remain committed to protecting our nation’s critical technologies and infrastructure.”
“This individual abused her position of trust to obtain military-grade equipment, which foreign adversaries could have used against American service members and allies,” said Chad Plantz, Special Agent in Charge of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) San Diego. “Fortunately, HSI and our partners were able to prevent this equipment from falling into the wrong hands, but this case serves as a stark reminder of why it’s important for organizations – particularly those involved in national defense – to educate their workforces on how to properly identify and report insider threats.”
DEFENDANTS Case Number 19CR1895-BAS
Shaohua “Eric” WANG Age: 38 San Diego, CA
Ye Sang “Ivy” WANG Age: 37 San Diego, CA
SUMMARY OF CHARGE
Conspiracy to Export Defense Articles Without a License (Title 18, U.S.C., Sec. 371)
Maximum Penalty: Five years in prison, $250,000 fine.
INVESTIGATING AGENCY
Naval Criminal Investigative Service (NCIS);
Homeland Security Investigations (HSI); and
Office of Export Enforcement, Los Angeles Field Office, Department of Commerce
Former U.S. Navy Member Who Possessed Child Pornography Headed to Federal PrisonRead the Press Release
Miami, Florida – A federal district judge in Miami sentenced Anthony Louis Cardona, 30, of Key West, Florida, to 97 months in federal prison, followed by 25 years of supervised release as a sexual offender, for possession of child pornography. Cardona was also ordered to pay restitution to his victims.
In December 2020, FBI agents learned that an individual located at a residence in Key West, Florida was downloading child pornography using peer-to-peer software. On January 25, 2021, FBI agents executed a search warrant at the residence, where Cardona lived. Agents found that Cardona possessed multiple hard drives containing thousands of images and videos of child pornography.
A search of Cardona’s electronics produced over 89,000 images and videos of child pornography dating from 2010-2021. The images and videos included infants and pre-pubescent children engaged in sadomasochism and bestiality. In addition to those images, agents found a videoconference chat message from 2014 where Cardona distributed and received child pornography. In the chat message, Cardona stated that he previously fondled a pre-pubescent female child over her pants.
At the time of his arrest, Cardona was an air traffic controller as an active-duty member of the United States Navy.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami, announced the sentence imposed by United States District K. Michael Moore.
FBI Miami, Key West Office, investigated the case. Assistant United States Attorney Hillary T. Irvin prosecuted it. Assistant United States Attorney Nicole Grosnoff is handling asset forfeiture.
This case was brought as part of Project Safe Childhood (PSC), 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 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 the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-10003.
###
Former Boston Gang Member Sentenced for Crack Cocaine DistributionRead the Press Release
BOSTON – A former member of the St. James/Marcella gang was sentenced today in federal court in Boston for distributing crack cocaine on multiple occasions to a cooperating witness.
Anthony Jackson, a/k/a “Hollywood,” 30, of Boston, was sentenced by United States District Judge Mark L. Wolf to 21 months in prison and three years of supervised release. In August 2021, Jackson pleaded guilty to one count of distribution and possession with intent to distribute cocaine base and one count of possession with intent to distribute cocaine base. Jackson has been in custody since his arrest in October 2020.
Between Sept. 1, 2020 and Oct. 3, 2020, Jackson distributed crack cocaine or cocaine to a cooperating witness on five occasions in Cambridge and Boston. Jackson was also found in possession of crack cocaine and $2,420 in cash at the time of his arrest on Oct. 29, 2020. In total, across the transactions, Jackson distributed approximately 22 grams of crack cocaine and nine grams of powder cocaine. Jackson has prior state convictions for unlawfully carrying a dangerous weapon, carrying a loaded firearm and possession of illegal substances.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Mendell’s Major Crimes Unit 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.
Federal Jury Convicts Wynona Man of Assaulting a Dating PartnerRead the Press Release
A federal jury today convicted a man for assaulting his dating partner in a Broken Arrow hotel room in March 2021, announced Acting U.S. Attorney Clint Johnson.
Craig Wallace Wood, 32, of Wynona, was found guilty of assault with a dangerous weapon with intent to do bodily harm in Indian Country and assault resulting in serious bodily injury in Indian Country.
“Craig Wood brutally assaulted his dating partner,” said Acting U.S. Attorney Clint Johnson. “The U.S. Attorney’s Office and our law enforcement partners are committed to seeking justice on behalf of domestic violence victims. This criminal behavior cannot and will not be tolerated.”
On March 16, 2021, the victim and Wood went out for the evening, but the woman returned to their hotel room early. When Wood returned at 11:30 pm, he accused the victim of nodding at people and saying names of different men under her breath. Wood assaulted the victim for hours, throughout the early morning of March 17, by repeatedly beating her with a hairdryer, straightener, belt, and an electric cord. He then forced the victim to lay beside him.
After he fell asleep, the victim escaped the hotel room, and authorities were contacted. When officers responded, the victim expressed fear, saying that the defendant would find her and kill her for calling the police. They noted facial swelling so severe that the victim’s eyes were swollen shut, among other injuries. They then entered the hotel room and arrested the defendant.
As a result of the assault, the victim suffered injuries including a closed fracture of the nasal bone; fractured ribs; and bruising on her face, back, legs, hands and arms.
The FBI and Broken Arrow Police Department conducted the investigation. Assistant U.S. Attorneys Niko A. Boulieris and Stacey P. Todd are prosecuting the case.
Falconer Man Arrested on Child Pornography Charges After Stalking, Harassing, and Threatening Multiple Minor VictimsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Yusef E. Malik Myrick, 22, of Falconer, NY, was arrested and charged by criminal complaint with production, receipt, and distribution of child pornography. The charges carry a maximum penalty of 30 years in prison and a $250,000 fine.
Special Assistant U.S. Attorney Dawn M. Carter, who is handling the case, stated that according to the complaint, Myrick is accused of engaging in both online and sexual relationships with numerous minor females. When the relationships ended, Myrick cyberstalked, harassed, and threatened the minor females and their families with both physical and psychological harm. Myrick communicated with and sexually exploited at least seven victims primarily through Facebook, Snapchat, and Instagram. He used names such as Azrael Lust and Chi Fazo on Facebook, Sef Johnson on Instagram, and Lovely Lil Sociopath and Antwan Johnson on Snapchat.
“I commend our law enforcement partners for tracking down this defendant, who is accused of engaging in a pattern of threatening behavior to numerous minor victims and taking him into custody” stated U.S. Attorney Ross. “I would encourage other victims to come forward and report any unlawful experience they may have had with Myrick.”
Chautauqua County Sheriff James B. Quattrone stated, “As we continue working alongside our Federal, State, and Local partners we are able to arrest predators like this defendant. We must continue the interagency cooperation and working partnership with our community to eliminate these types of crimes and keep vulnerable people safe.”
Members of the public who have information related to this case are asked to contact the Chautauqua County Sherriff’s Office at 716-753-4973, the Homeland Security Investigations Tip Line at 716-464-6070, or [email protected].
The criminal complaint is the result of an investigation by the Chautauqua County Sheriff’s Office, under the direction of Sheriff James B. Quattrone; the Jamestown Police Department, under the direction of Chief Timothy Jackson; and Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
Essex County Man Sentenced to 28 Months in Prison for Conspiring to Steal Mail and Commit Bank FraudRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 28 months in prison for his role in a conspiracy to commit bank fraud, including by soliciting U.S. Postal Service (USPS) employees to steal check books and credit cards from the mail, depositing fraudulent checks, including pandemic relief checks, and using stolen credit cards without authorization, U.S. Attorney Philip R. Sellinger announced.
Jahaad Flip, 21, of Newark, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiracy to commit bank fraud. Judge Wigenton imposed the sentence by videoconference.
Three of Flip’s conspirators, Jeffrey Bennett, 27, of Irvington, New Jersey, Tashon Ragan, 21, of Newark, New Jersey, and Janel Blackman, 42, of Newark, pleaded guilty before Judge Wigenton earlier this year to conspiracy to commit bank fraud. Blackman also pleaded guilty to filing fraudulent applications with the U.S. Small Business Administration (SBA) for Economic Injury Disaster Loans. Ragan was sentenced in October 2021. Bennett and Blackman are awaiting sentencing.
According to documents filed in this case and statements made in court:
From February 2019 to May 2020, Flip conspired to fraudulently obtain money from victim financial institutions by, among other things, depositing counterfeit checks and checks stolen from the mail into accounts at these financial institutions and withdrawing funds from those accounts before the financial institutions identified the fraudulent checks and blocked further withdrawals. Flip and his conspirators arranged for USPS employees to steal credit cards and blank check books from the mail in exchange for cash payments. USPS employees provided the checks to Flip and his conspirators. Flip and his conspirators fraudulently forged the signatures of the accountholders and negotiated the checks by making them payable to individuals, some of whom were New Jersey high school students, and who had given Flip and his conspirators access to their accounts, also in exchange for cash. Flip and his conspirators created counterfeit checks, including counterfeit pandemic relief checks. Flip and his conspirators deposited the fraudulent checks online and at various bank ATMs throughout New Jersey and later withdrew funds from the bank accounts before the victim financial institutions identified the checks as fraudulent and could block further withdrawals. Through the conspiracy, Flip and his conspirators obtained and attempted to obtain approximately $366,000 from victim financial institutions.
In addition to the prison term, Judge Wigenton also sentenced Flip to five years of supervised release and ordered him to pay restitution of $61,438.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero; special agents with the U.S. Postal Service – Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi; special agents with IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; and special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s sentencing. He also thanked the Summit Police Department, the New Providence Police Department, the Piscataway Police Department, the Newark Police Department, the South Orange Police Department, and the Little Falls Police Department for their assistance.
The government is represented by Assistant U.S. Attorneys Jonathan Fayer and Elaine K. Lou in Newark.
Essex County Man Admits Conspiring with His Brother - a Federal Safety and Health Officer - to Extort ContractorsRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted to conspiring to extort multiple general contractors of approximately $14,000 by using his brother’s position as a compliance safety and health officer (CSHO) with the U.S. Department of Labor, Occupational Safety and Health Administration (OSHA), U.S. Attorney Philip R. Sellinger announced.
Paul Idrovo, aka “Jose Diaz” and “Paul Mejia,” 48, of Nutley, New Jersey, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to an information charging him with one count of conspiring to defraud the United States and to commit an offense against the United States, specifically to commit an act of extortion under color of his brother’s office or employment with OSHA. Paul Idrovo was previously charged by complaint in September 2020, together with his brother, Alvaro Idrovo, with one count of conspiring to commit an offense against the United States based on the extortion of a single contractor.
According to documents filed in this case and statements made in court:
Alvaro Idrovo misrepresented to contractors engaged in construction sites in New Jersey that they were facing significant OSHA fines, penalties and possibly jail, if they did not get OSHA safety training from a specific individual. He would provide the contractors with the phone number for the required trainer, allegedly named “Jose Diaz” or “Paul Mejia.” The phone number actually belonged to Paul Idrovo, posing under these names to conceal their relationship. Paul Idrovo was an authorized trainer for certain OSHA Outreach Training Programs, but was not an employee of OSHA.
Although initially demanding higher sums, the two men eventually charged the contractors $4,000 to $6,000 each for the alleged safety training, which was required to be paid in cash. Paul Idrovo collected the cash and provided the contractors with fraudulent computer-generated safety and health certificates for their individual employees, which falsely stated that the employees had received various type of OSHA certified safety training from “Jose Diaz” and “Paul Mejia,” when no training had been provided. As part of the charged fee, Paul ldrovo and Alvaro Idrovo also furnished the contractors with alleged necessary safety and health plans, which were prepared from a template rather than created or modified in any substantial way for the contractor. Paul Idrovo shared with Alvaro Idrovo approximately $5,000 of the cash collected as part of the extortion conspiracy.
When OSHA officials learned of the attempt to extort one of the contractors, the OSHA officials referred the matter to federal law enforcement, who arranged for that contractor to make consensual recordings with both Alvaro Idrovo and Paul Idrovo. During an April 2020 meeting surveilled by law enforcement, the contractor paid Paul Idrovo $6,000 in cash in exchange for ladder and safety awareness training certificates and a safety and health plan. Alvaro Idrovo thereafter attached copies of the training certificates and the plan to his OSHA reports regarding the contractor’s violation despite knowing that the training certificates falsely claimed that training had been provided to the noted individuals in March 2020, “Jose Diaz” had provided training, and the alleged training was OSHA certified.
The conspiracy charge against Paul Idrovo carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for May 22, 2022.
The complaint against Alvaro Idrovo remains pending and he is presumed innocent unless and until proven guilty.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone in New York, and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Senior Trial Counsel Leslie Faye Schwartz, of the U.S. Attorney’s Office’s Special Prosecutions Division in Newark.
Eagle Butte Man Charged with Aggravated Sexual Abuse of a ChildRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child.
Mitchum Dupris, age 32, was indicted on December 14, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 21, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is life in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The indictment alleges that between October 8, 2014, and March 4, 2017, in Eagle Butte and Cherry Creek, South Dakota, Dupris engaged in and attempted to engage in sexual acts with minors who had not attained the age of 12 years old.
The charges are merely accusations and Dupris is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Dupris was released on bond pending trial. A trial date for February 8, 2022 has been set.
Detroit Man Sentenced to 120 Months for Armed Fentanyl TraffickingRead the Press Release
LEXINGTON, Ky.— A Detroit man, Edward Pryor Jr., was sentenced to 120 months in federal prison on Monday, by U.S. District Judge Karen Caldwell, after pleading guilty to possession with intent to distribute 40 grams or more of fentanyl and possession of a firearm in furtherance of drug trafficking.
According to Pryor’s plea agreement, in August 2020, law enforcement, found Pryor outside of a Lexington apartment building, with a backpack containing a Glock 42 gun, 55 grams of fentanyl, and 160 grams of methamphetamine. Pryor admitted that he possessed more than 40 grams of fentanyl and he intended to distribute it to others. Further, he admitted that he possessed the gun in furtherance of his distribution of drugs.
Pryor pleaded guilty in July 2021.
Under federal law, Pryor must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department; jointly announced the sentence.
The investigation was conducted by the DEA and Lexington Police Department. The United States was represented by Assistant U.S. Attorney David Kiebler.
This case was prosecuted as part of the Organized Crime and Drug Enforcement Task Force’s (OCDETF) Operation Synthetic Opioid Surge (SOS), a Department of Justice initiative designed to target trafficking of dangerous synthetic opioids.
– END –
Dawn N. Ison Sworn in as United States AttorneyRead the Press Release
DETROIT - Dawn N. Ison was sworn in as the United States Attorney for the Eastern District of Michigan by Chief United States District Judge Denise Page Hood.
Ison, who most recently served in the U.S. Attorney’s Office’s Public Corruption Unit, will lead one of the largest U.S. Attorney’s Offices in the country. The office currently employs approximately 221 personnel in three locations (Detroit, Flint and Bay City) and serves more than 6.5 million residents.
“It has been a privilege to serve as an Assistant United States Attorney for over 19 years. I could not be more honored to extend my service to my hometown in this significant way as the United States Attorney, which serves as the pinnacle of my career. We will continue to work hard to ensure the protection and safety of every citizen in this district and make sure the people of this richly diverse community feel valued.”
President Joseph Biden nominated Ison on November 12, 2021, and she was confirmed by the Senate on December 14, 2021. Ison succeeds Saima S. Mohsin who was appointed as the Acting U.S. Attorney in January.
Since 2002, Ison has served as an Assistant United States Attorney for the Eastern District of Michigan, where she has prosecuted drug trafficking offenses at the highest level in the Office’s Drug Task Force Unit. She also served as Chief of that unit, which is the largest unit in the U.S. Attorney’s Office. Since 2014, Ison has served as the Office’s District Election Officer, and also represented the Office in the federal court’s alternative to prison program. Early in her career, Ison spent twelve years as a criminal defense attorney.
Over the course of her career, Ison has successfully handled large-scale, complex, multi-defendant prosecutions. Ison’s work has been nationally recognized on several occasions by the Department of Justice and more recently by the U.S. Department of Homeland Security. She has also received U.S. Attorney’s Awards for Outstanding Service and for Superior Performance by a Litigation Team. During her career, Ison has taken more than 50 cases to trial both as a prosecutor and a defense attorney.
After law school, Ison served as a Prehearing Attorney for the Michigan Court of Appeals. She graduated from Spelman College in 1986 and received her law degree from Wayne State University Law School in 1989.
Cortland County Woman Sentenced to 190 Months for Sexually Exploiting a 3-Year-OldRead the Press Release
SYRACUSE, NEW YORK – Brittany Berry, age 27, of Marathon, New York was sentenced today by United States District Court Judge David N. Hurd to 190 months in prison for sexual exploitation of a child. The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
As part of her previously entered guilty plea, Brittany Berry admitted that she conspired with Lawrence Berry (who was sentenced in November to 30 years’ imprisonment for his role in the offense) to sexually exploit a 3-year-old minor child in August and September 2018. Brittany Berry acted at Lawrence Berry’s direction and sexually exploited the child on five different occasions for the purpose of creating and sending images and videos (live and recorded) of the sexual abuse to Lawrence over the internet.
In addition to the imprisonment term, Judge Hurd sentenced Brittany Berry to 15 years of supervised release to begin after she serves her term of imprisonment. Upon release from prison, Brittany Berry also will be required to register to as a sex offender in any state where she lives, is employed, or is a student.
This case was investigated by the FBI and the City of Cortland Police Department and was prosecuted by Assistant U.S. Attorney Michael D. Gadarian and Special Assistant U.S. Attorney Adrian LaRochelle as part of Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney's offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal 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 https://www.justice.gov/psc.
Columbus Woman Guilty of Wire Fraud, Stole $240k from Non-ProfitsRead the Press Release
COLUMBUS, Ga. – A Columbus resident and teacher who volunteered for two local non-profit organizations pleaded guilty to wire fraud resulting from an FDIC-led investigation.
Trenna Denise Trice, 59, of Columbus, pleaded guilty to wire fraud before U.S. District Clay Land on Monday, Dec. 20. Trice is facing a maximum twenty years in prison to be followed by three years of supervised release and a $250,000 fine. Sentencing is scheduled for March 29, 2022.
“Trenna Trice abused the trust of two non-profits, a small business and many individual citizens when she choose to steal money intended for others to fund her gambling addiction,” said U.S. Attorney Peter D. Leary. “I commend the FDIC-OIG investigators who unraveled her web of lies through their extensive investigation. Our office, along with our law enforcement partners, will do everything in our power to bring fraudsters to justice.”
“The criminal conduct in this case is even more egregious because Ms. Trice is a public servant, occupied a position of trust in charitable organizations, and stole from those organizations – all while pocketing the funds for her personal use,” said FDIC OIG Special Agent in Charge Kyle A. Myles. “The FDIC Office of Inspector General is committed to working with our law enforcement partners to investigate matters of fraud which impact both the banking system and the community as a whole.”
According to court documents, the Federal Deposit Insurance Corporation-Office of the Inspector General (FDIC-OIG) initiated an investigation into the financial activities of Trice in May 2019, following reports of significant casino losses sourced by an unidentified income stream. The investigation into possible sources of income for her casino activity revealed that her sole source of income was working as a teacher for the Muscogee County School District (MCSD). Prior to teaching, she worked for a dental office and she worked as a volunteer campaign coordinator for the Columbus branch of the United Negro College Fund (UNCF) from 2005 – 2017.
Trice was responsible for organizing the annual Columbus Mayor’s Masked Ball, UNCF’s primary fundraising activity. Her duties included collecting cash, credit card contributions and check payments for donations and ticket sales. During the course of the investigation, agents determined that while the larger contribution checks from bigger sponsorship companies had made their way to UNCF, Trice diverted numerous smaller contributions for her own personal use. UNCF ended their relationship with Trice in 2017, following questions regarding financial irregularities that were indicative of embezzlement. It was later discovered that Trice had also
been terminated by the dental office following similar allegations. Trice was also collecting donations for a nonprofit corporation known as SAMARC run by two former NBA basketball players who conduct an annual basketball camp for underprivileged kids in Columbus.
In total, agents identified 109 checks and 265 credit card transactions fraudulently deposited into Trice’s own accounts without authorization. Trice told investigators she had a crippling gambling addiction for the last decade and the money was stolen to fuel her gambling addiction and compensate for her gambling losses. Trice said she was always careful to conceal her actions by using only outside ATMs to deposit checks with fraudulent endorsements and by changing the settings in the Square App to disguise that she was the actual recipient of a donation intended for others. In total, with checks and credit cards, Trice is known to have stolen $240,259 from the following victims: UNCF ($162,044), the dental office ($70,231), SAMARC ($7,784) and the Georgia Dental Society ($200).
This case was investigated by the FDIC-OIG.
Assistant U.S. Attorney Crawford Seals is prosecuting the case
Chambersburg Man Sentenced to 15 Years’ Imprisonment for Production and Possession of Child PornographyRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that David Robinson, age 32, of Chambersburg, Pennsylvania, was sentenced on December 20, 2021, to 15 years’ imprisonment by United States District Court Judge Christopher C. Conner for production and possession of child pornography. The sentence also includes a 15-year term of supervised release, which will follow the term of imprisonment.
According to United States Attorney John C. Gurganus, Robinson previously admitted that in July 2020 he sexually abused his 8-month-old daughter and filmed and photographed the abuse. Robinson then uploaded the videos and images to a public file-sharing program so that others could view the abuse. Additionally, Robinson downloaded and possessed images and videos depicting child pornography and child sexual abuse from on-line websites. He was arrested in July 2020 and subsequently pleaded guilty to the two offenses.
The case was investigated by the Pennsylvania State Police and Homeland Security Investigations. Assistant U.S. Attorney Daryl F. Bloom and Assistant U.S. Attorney Paul J. Miovas, Jr. prosecuted the 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.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
# # #
Cedar Rapids Man Receives over Six Years in Federal Prison for Being a Prohibited Person in Possession of AmmunitionRead the Press Release
A man who possessed ammunition after having prior convictions for felonies and domestic abuse assaults, and who was subject to no contact orders, was sentenced today to 77 months in federal prison.
Daryl Harden, age 41, of Cedar Rapids, Iowa, received the sentence after a June 28, 2021 guilty plea to one count of being a prohibited person in possession of ammunition. At the plea hearing, Harden admitted that, on January 11, 2020, he knowingly possessed five rounds of ammunition after having been convicted of six crimes punishable by more than one year of imprisonment, after having been convicted of nine misdemeanor crimes of domestic violence, and while he was subject to two no contact orders.
Harden was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Harden was sentenced to 77 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Cedar Rapids Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 20-46.
Follow us on Twitter @USAO_NDIA.
California Man Sentenced for Possessing with Intent to Distribute Methamphetamine, Cocaine, and MarijuanaRead the Press Release
Acting United States Attorney Jan Sharp announced that Lawrence Henderson, 52, of Stockton, California, was sentenced today in federal court in Omaha, Nebraska, for possessing with intent to distribute 500 grams or more of methamphetamine, 5 kilograms or more of cocaine, and marijuana. Senior United States District Judge Joseph F. Bataillon sentenced Henderson to 60 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a three-year term of supervised release.
On August 28, 2018, law enforcement stopped a tractor semi-trailer for a vehicle violation of no front plate in Hall County, Nebraska. Upon contact with the occupants, the trooper had indicators of criminal activity and asked for consent to search the vehicle. Consent was granted for the trailer but not for the truck. A K9 was requested, and upon arrival and deployment, indicated to the odor of narcotics coming from the vehicle. The trooper located eight total bags, with four bags containing vacuum sealed bags of marijuana with a total weight of approximately 94.6 lbs., 3 bags that had 36 pounds of methamphetamine and 51 pounds of cocaine.
This case was investigated by the Nebraska State Patrol.
Business Owner Sentenced to Prison and Ordered to Pay over $145,432 in RestitutionRead the Press Release
HAMMOND- Daniel Urquiza, 46, of Burr Ridge, Illinois, was sentenced by United States District Court Chief Judge Jon E. DeGuilio today following his June 2021 guilty plea for evading assessment of federal income taxes, announced United States Attorney Clifford D. Johnson.
Urquiza was sentenced to 6 months in prison and 6 months of home detention. He was also ordered to pay $145,432 in restitution to the Internal Revenue Service.
According to court documents, between 2014 and 2018, Urquiza concealed over $700,000 in income from the IRS. During this time, Urquiza owned and operated Lost Marsh Restaurant and RSR Demolition LLC, two businesses that received most of its revenue from contracts with the City of Hammond, the Hammond Port Authority, and other local government entities. In addition to issuing himself a salary, Urquiza spent hundreds of thousands of dollars on personal expenses from the proceeds of these businesses and from his family’s business, Meyer’s Castle, an event venue in Dyer, Indiana. In tax years 2014 through 2016, Urquiza issued himself falsified W-2 forms and filed false federal tax returns that did not include his personal spending from the business revenue. Urquiza did not file federal tax returns for tax years 2017 and 2018.
This case was investigated by Internal Revenue Service-Criminal Investigation. This case was prosecuted by Assistant U.S. Attorney Abizer Zanzi.
Buffalo Man Going to Prison for Throwing A Burning Basket into Buffalo City Hall During Violent ProtestsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that Courtland Renford, 22, of Buffalo, NY, who was convicted of rioting, was sentenced to serve 60 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Jeremiah E. Lenihan, who handled the case, stated that on May 30, 2020, the defendant participated in the looting and rioting of a 7-11 convenience store located on the corner of Elmwood Avenue and Summer Avenue in Buffalo. At approximately 10:10 p.m., a large group shattered the front door of the 7-11 and began looting the store. Renford was one of the first individuals to enter the 7-11 and his conduct was captured on surveillance footage.
Later that same evening, at approximately 11:25 p.m., Renford participated in a public protest near Buffalo City Hall, resulting in significant property damage and looting. During the protest Renford threw a burning laundry basket into a broken window of Buffalo City Hall, resulting in a fire inside the building. Buffalo firefighters extinguished the fire, which damaged and/or destroyed items inside Buffalo City Hall.
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
# # # #
Bronx Man Admits Possession with Intent to Distribute FentanylRead the Press Release
NEWARK, N.J. – A Bronx man today admitted possessing with intent to distribute fentanyl, U.S. Attorney Philip R. Sellinger announced.
Jose Sanchez Matos, 31, of the Bronx, New York, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an indictment charging him with possession with intent to distribute 400 grams or more of a mixture and substance containing fentanyl.
According to documents filed in this case and statements made in court:
On Aug. 27, 2019, a confidential source (the “CS”) met with Matos and agreed to purchase one kilogram of fentanyl for $40,000. Matos then provided the CS with a powdery substance wrapped in plastic, stating that the substance was fentanyl.
The charge of possession with intent to distribute 400 grams or more of fentanyl carries a statutory mandatory minimum sentence of 10 years in prison, a maximum sentence of life in prison, and a maximum fine of $10 million. Sentencing is scheduled for April 28, 2022.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the Violent Crimes Unit in Newark.
Brazilian National Pleads Guilty to Role in Nationwide Rideshare and Delivery Account Fraud SchemeRead the Press Release
BOSTON – A Brazilian national pleaded guilty on Friday, Dec. 17, 2021 in connection with a nationwide conspiracy to open fraudulent driver accounts with rideshare and delivery service companies.
Flavio Candido da Silva, 36, of Malden, pleaded guilty in federal court in Boston to one count of conspiracy to commit wire fraud and one count of aggravated identity theft. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for April 22, 2022.
In May 2021, da Silva was charged along with 18 co-defendants with conspiracy to commit wire fraud by using stolen identities and falsified documents to create fraudulent driver accounts for rent or sale to individuals who might not otherwise qualify to drive for the rideshare or delivery services.
According to the charging documents, the defendants allegedly used victims’ identifying information to apply for driver accounts with the rideshare and delivery companies – enabling the defendants to pass those companies’ required background checks and create driver accounts in victims’ names. At times, it is alleged that the defendants edited victims’ driver’s license images to display photos of the drivers renting or buying the fraudulent accounts in order to circumvent facial recognition technology that the rideshare and delivery companies used as a security measure. The defendants allegedly obtained victims’ names, dates of birth, driver’s license information and or Social Security numbers from co-conspirators and other sources, including sites on the Dark Net. The defendants and co-conspirators also obtained driver’s license images directly from victims, by photographing victims’ licenses while completing an alcohol delivery through one of the services or while exchanging information with victims following vehicle accidents, some of which defendants or co-conspirators intentionally caused in order to obtain victims’ license information. As a result of the scheme, Internal Revenue Service Forms 1099 were generated in victims’ names for income that conspirators earned from the rideshare and delivery companies.
It is also alleged that the defendants used fraudulent driver accounts to exploit referral bonus programs offered by the rideshare and delivery companies and used “bots” and GPS “spoofing” technology to increase the income earned from the companies.
In connection with the scheme, da Silva admitted that he rented and sold driver accounts opened in the names of individual victims. Between June 2019 and December 2020, da Silva received approximately $200,000 in payments from individual renters and purchasers of fraudulent driver accounts. Da Silva also referred drivers to other co-conspirators and coordinated with co-conspirators about preventing accounts from being flagged for fraud by the rideshare and delivery companies.
Sixteen of the defendants have been arrested in connection with the conspiracy and three remain at large. If you believe that you may be a victim of the allegations in this case, please visit: https://www.justice.gov/usao-ma/victim-and-witness-assistance-program/us-v-wemerson-dutra-aguiar-and-us-v-priscila-barbosa-et-al.
The charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss from the offense, whichever is greater. The charge of aggravated identity theft provides for a sentence of at least two years in prison to be served consecutive to any other sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by the Massachusetts State Police; the Concord, Lexington, Plymouth, Wilmington, Marlborough and Village of Rye Brook (N.Y.) Police Departments; U.S. Customs and Border Protection; U.S. Postal Inspection Service and the National Crime Insurance Bureau. Assistant U.S. Attorneys Kristen A. Kearney and David M. Holcomb of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
Barbour County man admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Calvin Crockett Mullins, of Philippi, West Virginia, has admitted to a firearms charge, United States Attorney William J. Ihlenfeld, II announced.
Mullins, 29, pleaded guilty today to one count of “Unlawful Distribution of a Firearm.” Mullins admitted to selling a 16-gauge shotgun to a person prohibited from having firearms. The crime took place in February 2020 in Barbour County.
Mullins 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 Brandon S. Flower is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Baltimore Heroin Dealer Pleads Guilty to Federal Drug Conspiracy ChargeRead the Press Release
Baltimore, Maryland – Larry Gardner, a/k/a “Little Larry,” age 40, of Baltimore, Maryland, pleaded guilty today to participating in a conspiracy to distribute and possess with intent to distribute controlled substances, including heroin.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Postal Inspector in Charge Daniel A. Adame of the U.S. Postal Inspection Service - Washington Division.
According to his guilty plea, between November 2019 and December 2020, Gardner participated in a drug trafficking organization (DTO) that distributed large quantities of controlled dangerous substances, including heroin, in the Baltimore area.
As detailed in the plea agreement, between June and November 2020, federal agents assigned to the Baltimore Organized Crime Drug Enforcement Task Force Strike Force intercepted hundreds of electronic and wire communications between Gardner and the leader of the DTO which revealed that Gardner was a mid-level distributor of heroin and that the DTO leader was his source of supply.
Gardner exchanged coded text messages with the DTO’s leader negotiating the price and amount of heroin. After one such exchange on November 4, 2020, a covert camera captured the DTO leader entering an apartment in downtown Baltimore used as a stash house, then leave eight minutes later. A few minutes later, agents conducting surveillance outside Gardner’s residence saw the DTO leader arrive and intercepted a message from the DTO leader to Gardner stating, “Here cuz”. The DTO leader rang the bell at Gardner’s residence and Gardner answered the door and accompanied the DTO leader to his car, where they conducted the heroin transaction.
On December 16, 2020, law enforcement conducted a search at Gardner’s residence, which was occupied at that time by Gardner, his wife, and three minor children. Law enforcement recovered a ballistic vest, a kilogram press and more than 1,000 empty gel capsules in the basement. In the bathroom, officers found white residue around a toilet and on the floor next to the toilet; plastic bags containing a white powder substance; and at least one plastic bag with a crystalline white rock-like substance that was subsequently analyzed and identified as approximately 19 grams of cocaine.
Gardner admitted that it was reasonably foreseeable to him that the conspiracy involved the distribution of between 100 and 400 grams of heroin.
Gardner and the government have agreed that, if the Court accepts the plea agreement, Gardner will be sentenced to five years in federal prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for February 24, 2022 at 11:30 a.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The specific mission of the Baltimore OCDETF Strike Force is to reduce violent, drug-related, and gang crime in the Baltimore area and surrounding region.
United States Attorney Erek L. Barron commended the FBI, the DEA, and the U.S. Postal Inspection Service for their work in the investigation and thanked the Baltimore Police Department for its assistance. Mr. Barron thanked Assistant U.S. Attorney Jeffrey J. Izant, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
# # #
Auburn Man Charged with Receipt and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Deryk Paul Burdick, 32, of Auburn, New York was arrested yesterday and charged with receipt and possession of child pornography. The announcement was made by United States Attorney Carla B. Freedman, Matthew Scarpino, Acting Special Agent in Charge of Homeland Security Investigations (HSI), Buffalo Field Office, and New York State Police Superintendent Keith M. Corlett.
According to the complaint, Burdick purchased child pornography on the internet and had a collection of child pornography on a laptop computer found in his home, including the child pornography files that he purchased online.
The charges filed against Burdick carry a mandatory minimum sentence of five years’ imprisonment and a maximum of 20 years’ imprisonment, a post-release term of supervision of between five years and life, and a fine of up to $250,000. Burdick would be required to register as a sex offender if convicted.
Burdick appeared yesterday before United States Magistrate Judge Hon. Thérèse Wiley Dancks for an initial appearance and was detained pending further proceedings.
Burdick was previously employed as a school bus driver in Skaneateles, New York and Buffalo, New York. Individuals who believe they have information relevant to this investigation should contact HSI Special Agent Brad Brechler at 315-569-9155.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Burdick’s case is being investigated by the Department of Homeland Security Investigations (HSI), the New York State Police, the Auburn Police Department, and the New York State Internet Crimes Against Children Taskforce (ICAC). The joint effort is a part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The case is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian.
Attleboro Gun Trafficker Convicted by Federal JuryRead the Press Release
BOSTON – An Attleboro man was convicted on Friday, Dec. 17, 2021, by a federal jury in Boston of offenses related to firearms trafficking.
Richard Philippe, 42, was convicted following a four-day jury trial of transporting firearms into Massachusetts from Georgia without a license and being a felon in possession of ammunition. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for April 4, 2022. Philippe was indicted in September 2019.
Between April and June 2019, Philippe purchased dozens of handguns from an unlicensed straw purchaser in Georgia. Philippe returned with the guns to a warehouse in Taunton where he sold them for cash. Philippe, who had a prior felony firearms conviction in Rhode Island, had neither the lawful ability to possess firearms or ammunition, nor a federal license to deal in firearms.
The investigation arose following a July 2019 undercover purchase of firearms from a long-time Brockton drug dealer, who had purchased more than a dozen firearms from Philippe and had been selling them into criminal commerce on the South Shore. The undercover operation triggered a search of Philippe’s warehouse in Taunton, which revealed Philippe’s firearm trafficking. The weapons were traced back to multiple purchases by Philippe’s associate from a pawn shop in Georgia, which specialized in selling low-cost handguns.
The charge of possessing ammunition after being convicted of a felony provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of transportation and receipt of firearms acquired outside of state of residency provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Valuable assistance was provided by the Massachusetts State Police, Brockton Police Department, Taunton Police, the Plymouth County Sheriff’s Department, the North Carolina State Highway Patrol, and the Rhode Island State Police. Assistant U.S. Attorneys Fred M. Wyshak, III and John T. McNeil of Mendell’s Organized Crime & Gang Unit, are prosecuting the case.
Arcadia Man Sentenced for Illegal Possession of FirearmsRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that Casey Michael Taylor, 35, of Arcadia, Louisiana, has been sentenced by United States District Judge Elizabeth E. Foote for illegal possession of firearms.
Taylor was sentenced to 68 months in prison, followed by 3 years of supervised release. According to information presented to the court, on February 2, 2021, deputies with the Bienville Parish Sheriff’s Office lawfully stopped Taylor’s pickup truck in response to a be-on-the-lookout or “BOLO” alert. Deputies placed Taylor into custody and found inside his truck several loaded handguns, ammunition, methamphetamine, and smoking paraphernalia. Investigators later searched and seized multiple firearms from Taylor’s gun safe pursuant to a search warrant. Taylor later admitted that he was addicted to and a daily user of methamphetamine making him prohibited from possessing firearms.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Bienville Parish Sheriff’s Office investigated this case, and it was prosecuted by Assistant U.S. Attorney Mike Shannon. This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
# # #
50-Year Sentence for Virginia Man Who Produced Child PornographyRead the Press Release
ABINGDON, Va. – A Bland County, Virginia man was sentenced last week to 50 years in prison for making and producing child pornography at his home and illegally possessing a firearm after previously being convicted of a felony offense.
William Dean Blankenship, 42, was a previously convicted felon residing in Bland County. On February 12, 2021, the Bland County Sheriff’s Office and Virginia State Police executed a state search warrant at Blankenship’s home after receiving information that the defendant had engaged in sexual acts with children and was in possession of child pornography.
During that search, a cellular phone and other electronic devices that belonged to Blankenship were recovered. Blankenship’s phone contained over 50 video files of child pornography made by the defendant that showed him engaging in sexual intercourse with two minors under the age of 18. The investigation revealed that Blankenship routinely coerced and enticed the two minors to engage in sexual activity with Blankenship, and with one another, after he gave the minors narcotics and other controlled substances. Blankenship’s abuse began when the minors were approximately 13 and 14 years old. Law enforcement also located a firearm in the defendant’s home.
“Today’s lengthy sentence shows the commitment of the Department of Justice to protecting children from the type of abuse and coercive exploitation this defendant exhibited over several years,” United States Attorney Christopher R. Kavanaugh said today. “My Office will continue to investigate and prosecute all those who prey on our most vulnerable victims. I am grateful to the work of the Department of Homeland Security and the Virginia State Police for their work on this case.”.
“Now, Mr. Blankenship will begin to pay for the horrific atrocities he committed,” said Ray Villanueva, Special Agent in Charge of Homeland Security Investigations (HSI), Washington, D.C. “This sentencing serves as another example to anyone who seeks to victimize our children, that we will work tirelessly to bring them to justice. HSI was proud to have partnered the Virginia State Police, as well as the Bland County and Giles County Sheriff’s Offices on this case.”
In September 2021, Blankenship pleaded guilty to 17 counts of production of child pornography and one count of illegal possession of a firearm by a previously convicted felon.
The Department of Homeland Security Investigations, the Bland County Sheriff’s Office, the Giles County Sheriff’s Office, and Virginia State Police investigated the case.
Assistant U.S. Attorney Daniel J. Murphy prosecuted the case.
20 December 2021
Yonkers Man Pleads Guilty to March 2011 MurderRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, announced that MARCUS CHAMBERS, 30, a/k/a “Chino,” a/k/a “Chi D,” a/k/a “SP,” pled guilty today to participating in the murder of Jonathan Johnson, 21, on March 18, 2011, in White Plains, New York.
U.S. Attorney Damian Williams said: “In March 2011, Jonathan Johnson was shot dead, the victim of senseless drug-related violence. Marcus Chambers has now admitted to participating in the murder while robbing Johnson of marijuana. Thanks to the dedication and hard work of our law enforcement partners, Chambers now faces significant prison time for this terrible crime.”
According to the allegations in the Indictment and statements made in public court proceedings[1]:
On or about March 18, 2011, CHAMBERS and his codefendant Darnell Kidd murdered Jonathan Johnson by shooting him during the course of an armed robbery for marijuana in White Plains, New York. CHAMBERS arranged by phone to purchase the marijuana from Johnson. CHAMBERS and Kidd met with Johnson to rob him of marijuana, and during the robbery, Johnson was shot and killed.
* * *
CHAMBERS pled guilty to one count of Hobbs Act robbery, in violation of 18 U.S.C. § 1951 and 18 U.S.C. § 2, which carries a maximum penalty of 20 years in prison. In connection with his guilty plea, CHAMBERS admitted his role in the murder. CHAMBERS also pled guilty to one count of conspiracy to commit Hobbs Act robbery, in violation of 18 U.S.C. § 371, which carries a maximum penalty of five years in prison.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
CHAMBERS will be sentenced on March 22 or 23, 2022, by U.S. District Judge Nelson S. Román, to whom the case is assigned.
Mr. Williams praised the outstanding investigative work of the White Plains Police Department and the FBI Westchester County Safe Streets Task Force, which comprises agents and task force officers from the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Probation Office, New York State Police, New York City Police Department, Mount Vernon Police Department, Putnam County Sheriff’s Office, Town of Ramapo Police Department, Yonkers Police Department, Greenburgh Police Department, Peekskill Police Department, Westchester County Police Department, and Westchester County District Attorney’s Office. Mr. Williams also thanked the Westchester County District Attorney’s Office for its assistance in this matter.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Olga Zverovich and Christopher Brumwell are in charge of the prosecution.
The Indictment against Darnell Kidd is merely an accusation, and he is presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described regarding Darnell Kidd should be treated as an allegation.
Waterloo Man Sent Back to Federal Prison for a Year After Escaping from CustodyRead the Press Release
A Waterloo man, who escaped from federal custody was sentenced December 17, 2021, to twelve months in prison.
Darnell Henderson, age 25, from Waterloo, Iowa, received the prison sentence after an August 11, 2021 guilty plea to escape from custody.
Information disclosed at sentencing and at his plea hearing showed that, in October 2019, Henderson was sentenced to 31 months in federal prison after being convicted of possession of a firearm by a felon. As part of his sentence, Henderson was released to the custody of the Gerald Hinzman Center in Cedar Rapids following his release from the Bureau of Prisons. In April 2021, Henderson fled from the Hinzman Center and did not return. He was not located by law enforcement until June 30, 2021.
Henderson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Henderson was sentenced to twelve months’ and one day imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorneys Ashley Corkery and Devra Hake and investigated by the United States Marshal’s Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number 21-CR-27.
Follow us on Twitter @USAO_NDIA.
United States Files Civil Action to Return $150 Million in Embezzled Funds to Sony; FBI Tracks Money to BitcoinRead the Press Release
Assistant U. S. Attorneys Oleksandra Johnson (619) 546-9769) and Aaron P. Arnzen (619) 546-8384
NEWS RELEASE SUMMARY – December 20, 2021
SAN DIEGO – The United States took action in federal court today to protect and ultimately return more than $154 million in funds that were allegedly stolen from a subsidiary of Tokyo-based Sony Group Corporation and then seized by law enforcement during the FBI’s investigation of the theft.
The United States filed a civil forfeiture complaint in the Southern District of California to protect Sony’s interest in the property, which an employee allegedly embezzled in May 2021 and converted to more than 3,879 Bitcoins valued today at more than $180 million. Those funds were seized by law enforcement on December 1, 2021, based on the FBI’s investigation.
According to the government’s complaint, Rei Ishii, an employee of Sony Life Insurance Company Ltd. (“Sony Life”) in Tokyo, allegedly diverted the $154 million when the company attempted to transfer funds between its financial accounts. Ishii allegedly did this by falsifying transaction instructions, which caused the funds to be transferred to an account that Ishii controlled at a bank in La Jolla, California. Ishii then quickly converted the funds to Bitcoin cryptocurrency, the complaint said.
Based on evidence uncovered during the FBI’s investigation, a seizure warrant was authorized in June 2021 by a U.S. Magistrate Judge in the Southern District of California. As alleged in the supporting affidavit, law enforcement was able to trace Bitcoin transfers and identify that approximately 3,879.16 Bitcoins, representing the proceeds of the funds stolen from a subsidiary of Sony Life, had been transferred to a specific Bitcoin address and then to an offline cryptocurrency cold wallet.
The FBI, with significant assistance from Sony and Citibank, continued to investigate in cooperation with Japan’s National Police Agency, the Tokyo Metropolitan Police Department, Tokyo District Public Prosecutors Office, and JPEC (Japan Prosecutors unit on Emerging Crimes). As a result of this coordinated effort, investigators obtained the “private key” – the rough equivalent of a password – needed to access the Bitcoin address. All the Bitcoins traceable to the theft have been recovered and fully preserved. Ishii has been criminally charged in Japan.
“It is our intent to return the stolen money to the victim of this audacious theft, and today’s action helps us do that,” said Acting U.S. Attorney Randy Grossman. “This case is an example of amazing work by FBI agents and Japanese law enforcement, who teamed up to track this virtual cash. Criminals should take note: You cannot rely on cyptocurrency to hide your ill-gotten gains from law enforcement. The United States coordinates extensively with its international partners to forestall crime and retrieve stolen funds.” Grossman thanked the prosecution team, the FBI and Japanese authorities for their excellent work on this case.
“The FBI was able to recover these stolen funds for two very important reasons,” said FBI Special Agent in Charge Suzanne Turner. “First, Sony and Citibank immediately contacted and cooperated with law enforcement as soon as the theft was detected, and the FBI worked in partnership with both to locate the funds. Second, the FBI’s footprint internationally through our Legal Attaché offices and the pre-existing relationships we have established in foreign countries – in this instance with Japan – enabled law enforcement to coordinate and identify the subject. The FBI’s technical expertise was able to trace the money to the subject’s crypto wallet and seize those funds.”
The Major Frauds and Public Corruption Section and Asset Recovery Section of the U.S. Attorney’s Office for the Southern District of California is handling the proceedings, with significant assistance from the Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section and Computer Crime and Intellectual Property Section. The Justice Department’s Office of International Affairs provided investigative assistance. The FBI continues to investigate the alleged crime.
Three Passaic County Men Charged in Scheme to Defraud Moving Company CustomersRead the Press Release
NEWARK, N.J. – Three Passaic County, New Jersey, men have been charged with conspiracy to commit wire fraud in connection with a scheme to extort increased fees for moving services from vulnerable customers, U.S. Attorney Philip R. Sellinger announced today.
Abdal Abuawad, 26, a Jordanian national residing in Paterson, New Jersey, was arrested in New Mexico on Dec. 13, 2021, and made his initial appearance in the District of New Jersey by videoconference today before U.S. Magistrate Judge James B. Clark III. He was released on $300,000 unsecured bond. His brother, Abdalh Abuawad, 28, a Jordanian national, and Yousef AlMallad, 31, both of Paterson, appeared before U.S. Magistrate Judge Michael A. Hammer in Newark federal court on Dec. 10, 2021, following their arrests and were each released on $300,000 unsecured bond. All three are each charged by complaint with one count of conspiring to commit wire fraud.
According to documents filed in this case and statements made in court:
The Abuawad brothers created at least one moving company, Abda Moving LLC, d/b/a 11Even Movers & Storage (11Even), and employed AlMallad as a manager. The defendants and their conspirators utilized 11Even to extort customers to pay drastically increased fees for moving services once the customer was in a vulnerable state and unable to refuse their demands.
Customers often arranged relocation or moving services through a household goods broker that provided the customer with an estimate of the cost of services. Representatives of 11Even, including Abdal and AlMallad, would then arrive at the customers’ homes to move their household goods. Generally, after loading all of a customer’s household goods onto a truck, the representatives of 11Even would then drastically raise the price of the move, often two or three times that of the quoted estimate. Defendants or other representatives of 11Even then demanded that the customer pay at least 50 percent of the inflated cost in cash at that time.
After demanding a higher price, 11Even regularly failed to deliver customers’ household goods for months at a time or at all. When customers called 11Even to complain about the price increase and failed deliveries, Abdalh, AlMallad or other conspirators would field the calls. They often claimed to be looking into complaints but rarely returned any customer phone calls and ultimately failed to answer any subsequent calls or texts.
The charge for conspiring to commit wire fraud carries a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross pecuniary gain/loss, whichever is greatest.
U.S. Attorney Sellinger credited FBI Newark’s Transnational Organized Crime Task Force, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; the Port Authority of New York and New Jersey Police Department, under the direction of Superintendent Edward Cetnar; the Rockaway Borough Police Department, under the direction of Chief Conrad Pepperman; the Medford, Oregon, Police Department, under the direction of Chief Scott Clauson; and the Simi Valley, California, Police Department, under the direction of Chief David M. Livingstone; with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Angelica M. Sinopole of the Organized Crime & Gangs Unit in Newark.
Anyone who believes they may have been a victim of this conspiracy can contact the FBI at: [email protected].
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Texas Man Pleads Guilty to Months’ Long Cyberstalking Campaign Sparked by an Unrequited Love InterestRead the Press Release
Baltimore, Maryland – Desmond Babloo Singh, age 20, of Temple, Texas, pleaded guilty today to two counts of cyberstalking.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to his guilty plea, from April 18, 2020, to November 24, 2020, Singh used more than 100 different social media accounts, phone accounts, and various electronic communication tools to send harassing messages to Victim 1. The hundreds of public social media posts, text messages, and private social media messages included threats of death, bodily injury, sexualized violence, and racial slurs. Many of the accounts created and used by Singh incorporated Victim 1’s name, making it appear as if the accounts were owned and operated by her.
Earlier in 2020, Singh sent Victim 1 online communications expressing his romantic interest in her. After Victim 1 rebuffed Singh’s advances and asked him not to contact her, Singh commenced a months’ long cyberstalking campaign against both Victim 1 and Victim 2, the latter of whom Singh viewed as a romantic rival.
Singh frequently used the fraudulent accounts he created to denigrate Victim 1’s character, appearance, and make the assertion that Victim 1 was “obsessed” with him. Singh’s harassing conduct included, among other things, numerous implied threats of bodily injury or death. For instance, Singh used a fraudulent social media account to send Victim 1 an image in which the faces of her and her family members were superimposed on the faces of several individuals hanging from nooses. In another edited picture, Singh superimposed Victim 1’s mother’s face on the body of a grieving woman at a grave site.
On or about July 19, 2020, Victim 1 received a “follow” request on a social media platform from an account that Singh created. On this account, Singh had posted pictures of Victim 1 and her family home. Additionally, Singh posted Victim 1’s parents’ address in Maryland and stated there would be a party there the following day. The following day, July 20, 2020, a Baltimore County Police Department employee received an anonymous email telling law enforcement to investigate a possible bomb at the parents’ home. Law enforcement officers responded to the residence only to learn that the bomb threat was a hoax. The federal investigation into Singh’s conduct revealed that Singh had solicited another individual to “swat” Victim 1’s parents’ home.
In furtherance of his harassment campaign against Victim 1, Singh also posted Victim 1’s personal information online including her birthdate, name, personal phone number, school, social media identities, and other identifying information online. This form of online harassment is commonly referred to as “doxing”.
During the investigation of Singh’s harassment campaign, investigators discovered notes in Singh’s phone that documented his plans to harass Victim 1 including the plans to physically assault Victim 1’s family members, post over 10,000 messages relating to Victim 1’s friends, harass Victim 2, and take pictures of Victim 1 in real life.
Singh not only harassed Victim 1, but he also harassed Victim 2 whom he perceived to be a romantic rival. Similar to Victim 1, Singh created numerous social media accounts incorporating Victim 2’s real name and publicly posted his personal information. Using an anonymous account, Singh posted a video of an unidentifiable person knocking on Victim 2’s former residence with a caption telling Victim 2 to answer the door. Later, Singh later posted the same video on an online platform which included Victim 2’s name, the former address of Victim 2, and a statement stating that he went to Victim 2’s residence to fight Victim 2.
Singh faces a maximum sentence of five years in federal prison for each count of cyberstalking followed by three years of supervised release. U.S. District Judge Richard D. Bennett has scheduled sentencing for April 5, 2022 at 2:30 p.m.
United States Attorney Erek L. Barron commended the HSI and the Baltimore County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Christopher M. Rigali, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
# # #
Texas Man Indicted on Domestic Violence Charges for Strangling and Stalking Victim on a Carnival Cruise Ship out of the Port of New OrleansRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that GERONIMO FLORES, age 29, of Henderson, Texas, was charged on December 17, 2021 with domestic violence by strangulation and suffocation in violation of Title 18, United States Code, Sections 113(a)(8) and 7(8) and interstate domestic violence in violation of Title 18, United States Code, Sections 2261(a)(1), 2261(b)(5), and 7(8).
According to court documents, FLORES intentionally assaulted and attempted to assault his intimate and dating partner while aboard the Carnival Glory cruise ship on December 2, 2021. The Glory was within the special maritime and territorial jurisdiction of the United States during a voyage that departed from and returned to the Port of New Orleans in the Eastern District of Louisiana. FLORES is specifically accused of assaulting the victim by strangulation and suffocation, as well as striking her in the head with his hand.
If convicted of domestic violence by strangulation or suffocation, FLORES faces a maximum term of up to ten (10) years imprisonment, up to a $250,000 fine, up to three (3) years of supervised release, and a mandatory $100 special assessment fee. If convicted of domestic violence by striking the victim, he faces a maximum term of up to five (5) years imprisonment, up to a $250,000 fine, up to three (3) years of supervised release, and a mandatory $100 special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating the case. Assistant U.S. Attorney Charles D. Strauss is in charge of the prosecution.
Seattle Man Sentenced to 46 Months in Prison for Assaulting Law Enforcement During Capitol BreachRead the Press Release
According to court documents, Devlyn Thompson, 28, of Seattle, was among individuals in a crowd on the Lower West Terrace of the Capitol who were pushing against and assaulting
Metropolitan Police Department (MPD) and U.S. Capitol Police (USCP) officers in the tunnel leading into the U.S. Capitol. Thompson and others in the tunnel yelled obscenities at police and encouraged the continued assault. Thompson was part of a group that threw objects and projectiles at the officers, including flag poles, and grabbed and stole the officers’ riot shields to prevent them from defending themselves against the violence.
At approximately 2:21 p.m., Thompson personally observed police order rioters to stop, physically push the crowd back, and deploy pepper spray in an effort to try to stop the ongoing assault. Later, Thompson entered a tunnel on the West Front Terrace that led to an entrance to the
U.S. Capitol, where members of Congress were sheltering in place. Thompson joined rioters in that tunnel and assisted other rioters in their assault of officers by helping them seize and use stolen law enforcement shields for approximately 13 minutes. Thompson also helped throw a large speaker at the front line of officers, and he later picked up a metal baton from the floor of the tunnel and swung it overhead and downward against the police line in an apparent effort to knock a can of pepper spray from an officer’s hand and stop the officer from pepper-spraying the rioters. After more pepper spray was deployed by the rioters and the officers, Thompson retreated from the archway area.
Thompson pleaded guilty on Aug. 6, in the District of Columbia, to assaulting, resisting or impeding officers while using a dangerous weapon. Thompson was arrested on that same date and has been in custody ever since. Judge Royce C. Lamberth also ordered him today to pay $2,000 in restitution. He also must serve a period of three years of supervised release following completion of his prison term.
The case was prosecuted by the U.S. Attorney’s Office for the District of Columbia and the
Justice Department's National Security Division. Valuable assistance was provided by the U.S.
Attorney’s Office for the Western District of Washington.
The FBI’s Washington Field Office investigated the case, with valuable assistance from the
FBI’s Seattle Field Office, the U.S. Capitol Police, and the Metropolitan Police Department. The FBI’s
Washington Field Office identified Thompson as #67 in its seeking information photos.
In the 11 months since Jan. 6, more than 700 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including over 220 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing.Russian National Extradited for Role in Hacking and Illegal Trading SchemeRead the Press Release
BOSTON—A Russian national has been extradited to the United States from Switzerland to face charges relating to his alleged involvement in a global scheme to trade on non-public information stolen from U.S. computer networks that netted tens of millions of dollars in illegal profits. Four other Russian nationals were also charged as part of the scheme.
Vladislav Klyushin, also known as “Vladislav Kliushin,” 41, of Moscow, Russia, was arrested in Sion, Switzerland on March 21, 2021 and was extradited to the United States on Dec. 18. Charges were unsealed this morning in U.S. District Court in Massachusetts. Klyushin is charged with conspiring to obtain unauthorized access to computers, and to commit wire fraud and securities fraud, and with obtaining unauthorized access to computers, wire fraud and securities fraud. He will appear later this morning in federal court in Boston.
Ivan Ermakov, also known as “Ivan Yermakov,” 35, and Nikolai Rumiantcev, also known as “Nikolay Rumyantsev,” 33, both of Moscow, Russia, are charged in the District of Massachusetts with conspiring to obtain unauthorized access to computers, and to commit wire fraud and securities fraud and with obtaining unauthorized access to computers, wire fraud and securities fraud. Ermakov, a former officer in the Russian Main Intelligence Directorate (GRU), a military intelligence agency of the General Staff of the Armed Forces of the Russian Federation, was previously charged in July 2018 in federal court in Washington, D.C. for his alleged role in a hacking and influence effort related to the 2016 U.S. elections. In October 2018, Ermakov was also charged in federal court in Pittsburgh in connection with his alleged role in hacking and related disinformation operations targeting international anti-doping agencies, sporting federations, and anti-doping officials.
Mikhail Vladimirovich Irzak, also known as “Mikka Irzak,” 43, and Igor Sergeevich Sladkov, 42, both of St. Petersburg, Russia, are also charged in the District of Massachusetts with conspiracy to obtain unauthorized access to computers, and to commit wire fraud and securities fraud, and with securities fraud.
Ermakov, Rumiantcev, Irzak and Sladkov remain at large.
Acting United States Attorney Nathaniel Mendell stated, “The integrity of our nation’s capital markets and of its computer networks are priorities for my office. Today’s charges show that we, the FBI, and our other law enforcement partners will relentlessly pursue those who hack, steal and attempt to profit from inside information, wherever they may hide.”
“Today’s announcement and the extradition of Vladislav Klyushin is just one more example of how the FBI and our partners are working around the clock and around the world to counter the cyber threat that we face today,” said Albert Murray III, Assistant Special Agent in Charge of the FBI Washington Field Office Criminal and Cyber Division. “As alleged, Klyushin and his co-defendants used various illegal and malicious means to gain access to computer networks to perpetrate their illegal trading scheme. These crimes have real consequences. And, as our efforts in this case demonstrate, the FBI is relentless in our work to identify and locate criminals like Klyushin—no matter where they are—and bring them to the U.S. to face justice.”
According to the charging documents, Klyushin, Ermakov and Rumiantcev worked at M-13, an information technology company based in Moscow, where Klyushin served as the company’s first deputy general director. M-13 purported to offer penetration testing and “Advanced Persistent Threat (APT) emulation”—both services that seek exploitable vulnerabilities in a computer system, purportedly for defensive purposes. M-13’s website indicated that the company’s “IT solutions” were used by “the Administration of the President of the Russian Federation, the Government of the Russian Federation, federal ministries and departments, regional state executive bodies, commercial companies and public organizations.” In addition to these services, Klyushin, Ermakov and Rumiantcev also allegedly offered investment management services through M-13 to investors in exchange for up to 60 percent of the profit
Between at least in or about January 2018 and September 2020, Klyushin, Ermakov, Irzak, Sladkov and Rumiantcev allegedly agreed to trade in the securities of publicly traded companies based on material non-public information (“MNPI”) about the earnings of those companies, in advance of the public announcements of financial results. The MNPI was allegedly acquired through unauthorized intrusions into the computer networks of two U.S.-based filing agents (Filings Agents 1 and 2)—vendors that publicly traded companies used to make quarterly and annual filings through the U.S. Securities and Exchange Commission (SEC).
Armed with this information before it was disclosed to the public, Klyushin and his codefendants allegedly knew ahead of time, among other things, whether a company’s financial performance would meet, exceed, or lag market expectations—and thus whether its share price would likely rise or fall following the public announcement of that performance—and they traded accordingly, in brokerage accounts held in their own names and in the names of others. It is alleged that Klyushin and his co-conspirators earned tens of millions of dollars in illegal profits.
According to the charging documents, Klyushin and his coconspirators obtained unauthorized access to the computer networks of Filing Agents 1 and 2. They allegedly deployed malicious infrastructure capable of harvesting employees’ usernames and passwords and used stolen usernames and passwords to misrepresent themselves as employees in order to obtain access to the filing agents’ computer networks. To conceal the origin of their activities, the coconspirators allegedly leased proxy (or intermediary) computer networks outside of Russia and subscribed to email addresses and payment systems used in furtherance of the attacks in others’ names. Once inside the filing agent networks, it is alleged that they viewed and downloaded MNPI, including quarterly and annual earnings reports that had not yet been filed with the SEC or disclosed to the general public, of hundreds of companies that are publicly traded on U.S. national securities exchanges, including the NASDAQ and the NYSE. The coconspirators allegedly traded in the securities of those companies while in possession of MNPI concerning their financial performance, including by purchasing securities of companies that were about to disclose positive financial results, and selling short securities of companies that were about to disclose negative financial results. It is further alleged that the coconspirators distributed their trading across accounts they opened at banks and brokerages in several countries, including Cyprus, Denmark, Portugal, Russia and the United States, and misled brokerage firms about the nature of their trading activities.
For example, according to court documents, during a single two-week period between Oct. 22, 2018 and Nov. 6, 2018, Ermakov or another coconspirator gained unauthorized access into Filing Agent 2’s computer network using IP addresses hosted at a data center located in Boston, and viewed or downloaded the non-public earnings-related files of several companies, including Capstead Mortgage Corp., Tesla, Inc., SS&C Technologies, and Nevro Corp. Thereafter—days before the companies’ financial results were filed with the SEC and publicly disclosed—Klyushin and other co-conspirators allegedly placed profitable trades in the shares of those companies, buying shares of companies that were about to disclose positive financial results and selling short shares of companies that were about to disclose negative financial results. For example, on or about Oct. 24, 2018, before one company publicly disclosed positive quarterly earnings results, Klyushin or another coconspirator allegedly purchased its securities in Klyushin’s brokerage account at a Russia-based brokerage firm. That same day, Klyushin allegedly sent a message to M-13 investors, Individuals 1 and 2, stating “Pay attention to shares of [the company] now and tomorrow after 16:30 and on how much they go up”.
The charge of conspiracy to obtain unauthorized access to computers, and to commit wire fraud and securities fraud carries a maximum sentence of five years in prison, three years’ supervised release and a $250,000 fine (or twice or the gross gain or loss). The charge of unauthorized access to computers carries a maximum sentence of five years in prison, three years’ supervised release, and a $250,000 fine (or twice the gross gain or loss). The charges of securities fraud and wire fraud each carry a maximum sentence of 20 years in prison, three years of supervised release, and a $250,000 fine (or twice the gross gain or loss). Each of the charges also provide for restitution and forfeiture upon conviction.
Acting United States Attorney Mendell and FBI ASAC Murray made the announcement today. The SEC, the Justice Department’s Office of International Affairs, the Swiss Federal Office of Justice, the Valais and Zurich Cantonal Police authorities and the Federal Bureau of Investigation’s Boston Field Office provided valuable assistance. Stephen E. Frank and Seth B. Kosto, Chief and Deputy Chief respectively, of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
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.
Rosebud Man Indicted for Assaulting a Federal OfficerRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Todd Kal Wilcox, age 41, was indicted on October 13, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 17, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on July 15, 2021, in Todd County, South Dakota, Wilcox did assault, oppose, impede, intimidate, and interfere with a law enforcement officer who was employed by the Rosebud Sioux Tribe Law Enforcement Services, and that such conduct involved the use of a dangerous weapon.
The charge is merely an accusation and Wilcox is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Abby Roesler is prosecuting the case.
Wilcox was released on bond pending trial. A trial date has not been set.
Rhode Island Man Admits to Defrauding COVID Relief Unemployment Programs in Eight StatesRead the Press Release
PROVIDENCE, R.I. – A Rhode Island man today pled guilty to his role in a conspiracy to file fraudulent applications for COVID unemployment relief funds in at least eight states, announced United States Attorney Zachary A. Cunha.
Courtney Hilaire, 29, pleaded guilty to conspiracy to commit wire fraud, fourteen counts of wire fraud, two counts of aggravated identity theft, conspiracy to possess more than fifteen unauthorized access devices, and possession of device making equipment.
Hilaire admitted that, beginning around March 1, 2020, he conspired with others to file fraudulent claims seeking funds from the Economic Injury Disaster Loans (EIDL) Program administered by the Small Business Administration. The EIDL program was created to assist individuals who were unemployed due to the pandemic. Hilaire admitted that he and others used stolen Social Security numbers, dates of birth, and other personal identifying information when filing electronic applications for pandemic relief funds from Rhode Island, Massachusetts, Pennsylvania, New York, California, Florida, Nevada, and Tennessee.
Hilaire’s participation in the conspiracy first came to the attention of law enforcement in July 2020, after he and others were arrested by Warwick Police when they were found sleeping inside a stolen car parked in a hotel parking lot. Inside the vehicle, Warwick Police discovered 33 counterfeit credit cards, fraudulent drivers’ licenses from multiple states, equipment used to read and transfer information onto credit card magnetic strips, listings of individuals identities and personal identifying information, and approximately $13,000 in crisp, clean $100 and $50-dollar bills.
Hilaire is scheduled to be sentenced by U.S. District Court William E. Smith on March 30, 2022.
The case is being prosecuted by Assistant United States Attorney William J. Ferland.
The matter was investigated by Warwick Police and Homeland Security Investigations.
Rhode Islanders who believe their personal identification has been stolen and used to fraudulently obtain unemployment benefits are urged to contact the Rhode Island State Police at [email protected] or the FBI Providence office at (401) 272-8310.
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.
###
Registered Nurse Sentenced for Drug DiversionRead the Press Release
BOSTON – A Dighton registered nurse was sentenced today in federal court in Boston for drug tampering.
Marietta Strickland, 61, was sentenced by U.S. District Court Judge Indira Talwani to 15 months in prison and three years of supervised release. In October 2020, Strickland pleaded guilty to one count of tampering with a consumer product, specifically the Schedule II controlled substance oxycodone, which is used for pain relief.
While working as a registered nurse at Dighton Care and Rehabilitation Center, Strickland tampered with three blister card packages of oxycodone prescribed to an 89-year-old hospice patient who suffered from Alzheimer’s disease, severe dementia and breast cancer. To avoid detection, Strickland replaced the stolen oxycodone pills with other prescription drugs disguised to look like oxycodone. As a result of Strickland’s tampering, the victim was deprived of her prescribed oxycodone for at least a month and ingested at least 77 unnecessary prescription tablets.
Acting United States Attorney Nathaniel R. Mendell; Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; and Acting Commissioner Margaret Cooke, of the Massachusetts Department of Public Health made the announcement today. Assistant U.S. Attorney Elysa Wan of Mendell’s Health Care Fraud Unit prosecuted the case.
Rapid City Man Charged with Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Gregory Kent Davis, age 61, was indicted on December 7, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on December 17, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between June 22, 2021, and July 21, 2021, Davis who had been convicted under State law, and having traveled in interstate commerce, knowingly failed to register and update his registration.
The charge is merely an accusation and Davis is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Davis was remanded to the custody of the State pending trial which has been set for February 22, 2022.
Parma Man Convicted of Illegally Possessing a Firearm and NarcoticsRead the Press Release
U.S. Attorney Bridget M. Brennan announced that a federal jury returned guilty verdicts against Defendant Baha Jaffal, 29, of Parma, Ohio, on Friday, Dec. 17, following a five-day trial before Judge Benita Y. Pearson in Cleveland. Jaffal was convicted of possession with intent to distribute a controlled substance, using or carrying a firearm during and in relation to a drug trafficking crime and being a felon in possession of a firearm and ammunition.
According to court documents and evidence presented at trial, on Nov. 11, 2019, Parma Police Officers responded to a residence on Terrace View Lane for reports of an unconscious male. Upon arrival, officers discovered Defendant Baha Jaffal overdosing and immediately administered Narcan. Officers then searched Jaffal and his belongings to determine what had caused the overdose. During this search, officers found approximately 35 grams of carfentanil and heroin in a jacket pocket.
Separately, on Dec. 12, 2019, Parma Police responded to West 54th and Snow Road for reports of a silver Chevy Suburban driving recklessly. While attempting to stop the vehicle, officers observed the driver throw a pill bottle out the window. Officers then stopped the vehicle and identified Defendant Jaffal as the sole occupant. During a search of the vehicle and Jaffal, officers discovered 27 pills containing fentanyl in Jaffal’s pocket and a loaded firearm magazine in the center console of the vehicle. Officer also recovered a firearm Jaffal threw from the vehicle and the discarded pill bottle.
Jaffal is prohibited from possessing a firearm due to previous felony convictions of burglary, domestic violence, attempted felonious assault and drug possession in the Cuyahoga County Common Pleas Court.
Jaffal is scheduled to be sentenced on April 14, 2022. A federal district court judge will determine a sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Parma Police Department. This case is being prosecuted by Assistant United States Attorneys Scott C. Zarzycki and Marc D. Bullard.
Owners of Bergen County Company Admit $3 Million Mail Fraud SchemeRead the Press Release
NEWARK, N.J. – Two owners of a Bergen County company today admitted their roles in a scheme to deprive the U.S. Postal Service (USPS) of over $3 million in revenue through fraudulently altering postage labels, U.S. Attorney Philip R. Sellinger announced.
Jack Koch, 44, of Elmwood Park, New Jersey, and Steven Koch, 43, of Pompton Lakes, New Jersey, each pleaded guilty before U.S. District Judge William J. Martini to separate informations charging them with mail fraud.
According to the documents filed in this case and statements made in court:
The Kochs owned Fresh N Clear LLC, a company that sold various household items online, including bottled water, and shipped goods to its customers via the United States Postal Service. From January 2020 through September 2020, the defendants deprived the USPS of approximately $3 million in postage revenue through purchasing Flat Rate Envelope postage labels and wrongfully removing the Flat Rate endorsement on the envelopes so they could ship Fresh N Clear’s merchandise in boxes without paying the appropriate postage rate. The defendants purchased Flat Rate Service postage labels and altered those labels by electronically removing the endorsement from the label that confirmed that the package qualified for the Flat Rate Service. After removing the endorsement from the labels, the defendants re-applied the altered labels to packages that did not qualify for the Flat Rate Service and which would have otherwise required higher postage rates. Fresh N Clear then shipped those packages to its customers.
The mail fraud charge to which each defendant pleaded guilty carries a maximum penalty of 20 years in prison and a maximum fine of $250,000 or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest. Sentencing for both defendants is scheduled for July 19, 2022.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service, Newark Division, under the direction of Acting Inspector in Charge Raimundo Marrero, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorneys Perry Farhat and Katherine Romano of the U.S. Attorney’s Office’s Government Fraud Unit in Newark.
Orlando Felon Sentenced to over Seven Years for Possessing A Short-Barreled Rifle and Aggravated Identity TheftRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Jacquavius Smith (21, Orlando), a/k/a 9lokkNine and GlokkNine, to seven years and three months in federal prison for illegally possessing a short barreled semi-automatic rifle, possessing a handgun and ammunition as a convicted felon, and aggravated identity theft. The Court also ordered Smith to serve a three-year term of supervised release and to forfeit the firearms and ammunition related to the offenses.
Smith had pleaded guilty on July 13, 2021.
According to court documents, the Orlando Police Department executed a search warrant at a residence where Smith was known to stay. During the search, officers found a short-barreled semi-automatic rifle with a large capacity magazine, a handgun with an extended magazine, and approximately 70 rounds of ammunition, all belonging to Smith. Because he had previously been convicted of multiple felony offenses, including burglary, grand theft, criminal mischief, and narcotics possession, federal law prohibits Smith from possessing a firearm or ammunition.
While awaiting trial on those charges, Smith stole a victim’s personal identification information and used it to obtain a fraudulent loan under the Paycheck Protection Program (PPP), a component of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) passed to provide assistance to businesses and individuals affected by the COVID-19 pandemic.
After obtaining another search warrant, the Orange County Sheriff’s Office searched the residence where Smith was reportedly staying pending his trial. During that search, Smith was again found with a semi-automatic handgun and several rounds of ammunition. Smith also had in his possession 13 auto sears – devices capable of converting a semi-automatic firearm into a fully automatic firearm.
This case was investigated by the Orlando Police Department, the Orange County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys John Gardella and Amanda Daniels.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll. Anyone with information about allegations of fraud related to COVID-19, including the PPP or the CARES Act, can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Ontario County Man Pleads Guilty to Production of Child Pornography and Methamphetamine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Timothy Wright, 33, of Phelps, NY, pleaded guilty before U.S. District Judge Frank P. Geraci, Jr. to production of child pornography, which carries a mandatory minimum penalty of 15 years in prison and a maximum of 30 years. Wright also pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, 50 grams or more of methamphetamine, which carries a mandatory minimum penalty of 10 years in prison and a maximum of life.
Assistant U.S. Attorneys Melissa M. Marangola and Katelyn M. Hartford, who are handling the case, stated that in July 2019, Snapchat reported a cybertip to the National Center for Missing and Exploited Children involving a Snapchat subscriber who uploaded two files of suspected child pornography. A subsequent investigation determined that the Snapchat subscriber was Timothy Wright. On May 18, 2020, the New York State Police executed a search warrant at Wright’s residence and seized multiple electronic devices, including a cell phone, a laptop, and a hard drive. A forensic analysis of the electronic devices uncovered approximately 8,462 images and video files of child pornography. These included a video and images of Wright sexually abusing a minor child.
On July 29, 2020, Wright provided methamphetamine to his wife and co-defendant Alicia Wright who then sold the methamphetamine to an undercover police officer. After the controlled purchase was complete, the Ontario County Sheriff’s Office executed a search warrant at the Wrights’ residence on Bear Street in Phelps, NY. Investigators recovered approximately $10,000 in United States currency, approximately 64 grams of methamphetamine, and a digital scale. Alicia Wright was charged and convicted and is awaiting sentencing.
The plea is the result of an investigation by the New York State Police, under the direction of Major Barry Chase, and Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino.
Sentencing is scheduled for April 21, 2022, at 3:00 p.m. before Judge Geraci.
# # # #
North Carolina Business Owner Pleads Guilty to Filing False Tax ReturnRead the Press Release
WASHINGTON – A North Carolina man pleaded guilty today to filing a false tax return.
According to court documents and statements made in court, Steve Sloan owned and operated Total Lawn and Landscape Pros LLC (Total Lawn), which provided lawn care services in Greensboro, Chapel Hill, and nearby areas. From 2014 to 2018, Sloan filed false returns with the IRS reporting each year only a portion of the profits actually earned by Total Lawn. For example, on his 2017 tax return Sloan reported total receipts of less than $200,000. In reality, the company’s receipts that year were $464,650. In all, Sloan caused a tax loss to the IRS of approximately $318,735.
Sloan is scheduled to be sentenced on June 21, 2022, and faces a maximum sentence of three years in prison. Sloan also faces a period of supervised release, restitution, and monetary penalties. 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, U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina, and Acting Special Agent-in-Charge Karen Wingerd of the IRS-Criminal Investigation Charlotte Field Office made the announcement.
IRS-Criminal Investigation and the North Carolina State Bureau of Investigation invested the case.
Trial Attorney Kevin Schneider of the Justice Department’s Tax Division and Assistant U.S. Attorney Tanner Kroeger of the U.S. Attorney’s Office for the Middle District of North Carolina are prosecuting the case.
###
Nigerian National Pleads Guilty to A Covid-19 Unemployment Fraud Scheme and an Unrelated Elder Fraud SchemeRead the Press Release
Greenbelt, Maryland – Oluwaseyi Akinyemi, a/k/a “Paddy Linkin”, a/k/a “Joseph Kadin”, age 35, of Hyattsville, Maryland, pleaded guilty today to two counts of mail fraud relating to a social media advanced fee fraud scheme that targeted elderly victims.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent-in-Charge Troy Springer, of the Washington Regional Office, U.S. Department of Labor Office of Inspector General; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Chief Malik Aziz of the Prince George’s County Police Department.
“This office will prosecute anyone misusing this pandemic crisis to line their own pockets,” said U.S. Attorney for the District of Maryland Erek L. Barron. “Akinyemi not only took fraudulent advantage of a nursing care patient, a national health crisis, and an employment crisis, but he also caused significant financial harm to 13 elderly victims.”
According to his guilty plea, from July 10, 2018 to April 29, 2019, Akinyemi and at least one co-conspirator conspired to engage in a social media based elder fraud scheme. Members of the conspiracy targeted elderly victims on social media platforms, impersonating accounts of the victim’s friends in order to vouch for their fraudulent financial scheme and convince the victim to send money in hopes of receiving a financial reward. Within the scheme to defraud, the conspiracy members presented themselves as agents of real and fictitious government programs that offered supposed financial benefits to qualifying individuals.
Once the victims demonstrated interest, other members of the conspiracy utilized a new account or persona to represent themselves as an agent of an agency or community fund. The victim was then instructed to send money in a mail service system to the agency for “taxes and fees.” Believing that they would receive a financial reward, the victims sent cash, money orders, gift cards, and other valuable items through mail services to Akinyemi as well as other members of the conspiracy in order to obtain a financial reward. Akinyemi received packages under the aliases of Paddy Linkin,” “Flex,” “Joseph Kadin,” and “Anna Marcos,” in addition to other aliases. After receiving the fraudulently obtained funds, Akinyemi delivered the fraudulently obtained cash to co-conspirators in Nigeria.
Victim 1, who was 78 years old and lived in Texas, received an application via social media to apply to a purported federal government grant program. The application was accompanied by a message from a person whom Victim 1 believed was a friend, vouching for the program. Victim 1 was told by members of the conspiracy that he had been approved for $100,000 in grant funds, but that in order to receive the grant funds Victim 1 needed to pay taxes. Victim 1 sent multiple packages of money, including to Akinyemi. In order to induce Victim 1 to continue to send money, members of the conspiracy sent Victim 1 electronic “certificates.” One of these certificates was a “Certificate of Completion” bearing the Internal Revenue Service seal, stating that it was from the “Federal and State Tax Institutes.” Victim 1 also received a certificate with a U.S. flag on it with the words “Federal Grants” next to it which included Victim 1’s full name and the text: “Federal Government Grants for the sum of $5,000,000.” After receiving these certificates, Victim 1 continued to send money to Akinyemi and other members of the conspiracy. In total, Victim 1 sent between approximately $70,000 to $80,000 to Akinyemi.
Victim 2, who was 71 years old and lived in Indiana, received a message from someone they believed to be a high school friend regarding a “Strengthening Community Fund.” In reality, a member of the conspiracy was posing as the victim’s high school friend. Ultimately, the conspiracy member told Victim 2 that they received money from the fund in the recent past and that there were different amounts for which a person could apply. The member of the conspiracy then provided Victim 2 with the contact information for a fictitious agent representing the “Fund.”
After Victim 2 contacted and sought information regarding the Fund, a member of the conspiracy masquerading as an agent asked Victim 2 if they were ready to apply. When Victim 2 communicated their desire to do so, the member of the conspiracy sought biographical information from Victim 2, including their monthly income. Once Victim 2 provided this information, the member of the conspiracy informed Victim 2 that they had been “approved.” Victim 2 applied for $80,000, which Victim 2 believed would cost $800 in fees. Victim 2 then sent approximately $50,000 in fictitious fees and taxes in order to obtain money from the fictitious fund.
Victim 3, who was 69 years old, sent $9,720 to Akinyemi based on instructions from a member of the conspiracy. Victim 3 received a check in the mail for $9,770 that she was instructed to cash. The victim then deposited the check into her bank account and subsequently sent the funds to Akinyemi’s Landover Residence, as instructed. The check sent to Victim 3 was issued by Company 1 located in Tacoma, Washington. Company 1 was the victim of a fraud scheme that caused several unauthorized fraudulent checks to be generated and issued on behalf of Company 1.
Law enforcement’s subsequent review of Akinyemi’s phone revealed communications of Akinyemi discussing receipt of these funds from Company 1 through Victim 3. The chat conversation contained Akinyemi’s Landover Residence, his alias (“Paddy Linkin”), a mail service tracking number, and a dollar amount. Akinyemi and the co-conspirator also discussed the percentage of the proceeds that Akinyemi would take as part of his participation in the conspiracy.
During an interview with law enforcement on April 15, 2019, Akinyemi confirmed that he had received packages from victims throughout the country, detailed the scheme to defraud, and informed investigators that individuals in Nigeria were responsible for soliciting the victims to send money to him. Further, Akinyemi stated that he received approximately $80,000 in the mail in the year prior to his interview.
As part of the scheme to defraud elder victims, Akinyemi and his co-conspirators defrauded at least 13 victims, caused significant financial hardship to victims, and caused a loss of at least $478,145.07.
In an unrelated scheme, Akinyemi and other co-conspirators illegally obtained unemployment and COVID-19 related benefits by filing fraudulent unemployment claims under the names of living and deceased victims.
Throughout the scheme, Akinyemi and his co-conspirators used his Landover, Maryland residence as the mailing address for the fraudulent unemployment insurance debit cards. Additionally, the conspiracy listed the home address of a Washington D.C. client whom Akinyemi provided at-home nursing care in order to receive the fraudulently obtained funds in the mail.
As stated in his plea agreement, 10 Maryland Pandemic Unemployment Assistance (“PUA”) claims were filed with the state of Maryland totaling an intended loss of more than $170,000.
As a result of an executed search warrant on April 15, 2021 at Akinyemi’s Hyattsville, Maryland residence, law enforcement found two unemployment insurance debit cards in the names of Victim 24 and Victim 25. The unemployment insurance claims for Victims 24 and 25 were filed using the address of Akinyemi’s D.C. nursing care client.
In total, Akinyemi and his co-conspirators used the identities of 19 real individuals to file fraudulent unemployment insurance and PUA claims, caused an actual loss of more than $7,000, and projected an intended loss of $250,000 in state and federal benefits.
Akinyemi faces maximum 20 years in federal prison for each count of mail fraud followed by up to three years of supervised release. U.S. District Judge Theodore D. Chuang has scheduled sentencing for April 11, 2022 at 11 a.m.
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.
The Pandemic Response Accountability Committee (PRAC) Fraud Task Force was established to serve the American public by promoting transparency and facilitating coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC Fraud Task Force brings together agents from its 22 member Inspectors General to investigate fraud involving a variety of programs, including the Paycheck Protection Program. Task force agents who are detailed to the PRAC receive expanded authority to investigate pandemic fraud as well as tools and training to support their investigations.
The Department of Justice runs the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311), has an interactive tool for elders who have been financially exploited to help determine to which agency they should report their incident, and also a senior scam alert website. Victims are encouraged to file a complaint online with the FBI’s Internet Crime Complaint Center at this website or by calling 1-800-225-5324. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP.
United States Attorney Erek L. Barron commended the HSI, DOL-OIG, and the Prince George’s County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Rajeev R. Raghavan, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
# # #
Nicholas County Man Sentenced to 36 Months for Extensive Crop Fraud SchemeRead the Press Release
LEXINGTON, Ky.— A Mt. Sterling, Ky., man, Timothy Douglas Snedegar, 65, was sentenced to 36 months in federal prison on Monday, by U.S. District Judge Karen Caldwell, after previously pleading guilty to conspiring to commit wire fraud related to his participation in a scheme to defraud a private crop insurance company.
According to his plea agreement, between 2012 and 2015, Snedegar, who worked as a crop insurance adjuster, purported to follow proper adjustment procedures for adjusting claims of loss on private crop insurance policies, by verifying losses on Tobacco Test Sheets and through photographic evidence of the damage. Instead, working with others (including Mike McNew, convicted and sentenced to 86 months’ incarceration) and in exchange for kickbacks, Snedegar helped agricultural producers submit false Tobacco Test Sheets and photographs of damage, from other farms. Snedegar admitted to working with other adjusters in the area to share pre-filled Tobacco Test Sheets and photographs of damage. Snedegar conceded he caused a private insurance company to pay out $2,294,693 in falsified claims of loss during the years in question.
Snedegar pleaded guilty in January 2021.
Under federal law, Snedegar must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for 3 years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jason M. Williams, Special Agent in Charge, United States Department of Agriculture Office of Inspector General; Jodi Cohen, Special Agent in Charge, Federal Bureau of Investigation, Louisville Field Office; Bryant Jackson, Special Agent in Charge, Internal Revenue Service-Criminal Investigation; and Juan Garrett, Director, Kentucky Department of Insurance Fraud Investigation Division, jointly made the announcement.
The investigations were conducted by the United States Department of Agriculture Office of Inspector General, United States Department of Agriculture Risk Management Agency Special Investigations Staff, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and Kentucky Department of Insurance. The United States was represented by Assistant United States Attorneys Kathryn Anderson and Erin Roth.
– END –
New Orleans Felon Indicted on Multitude of Gun ChargesRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that LAIRD JOHNSON, age 23, of New Orleans, Louisiana, was charged on December 17, 2021 with theft of a firearm from a federal firearms licensee in violation of Title 18, United States Code, Sections 922(u) and 924(i)(1), possession of a firearm and ammunition by a convicted felon in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), and possession of a stolen firearm in violation of Title 18, United States Code, Sections 922(j) and 924(a)(2).
According to court documents, JOHNSON stole a Glock Model 19X, nine-millimeter handgun from a federal firearms licensee on June 19, 2021. JOHNSON is prohibited from possessing firearms due to his prior felony convictions in Orleans Parish for aggravated assault with a firearm, simple burglary, and possession of a firearm by a convicted felon. He is charged with possessing a .45 caliber handgun and .45 caliber ammunition on July 23, 2021. JOHNSON is further accused of possessing the stolen Glock Model 19X, the Glock Model 19, and a Zastava Arms, 7.62 rifle on August 10, 2021.
For each of the five counts, JOHNSON faces a maximum term of ten years imprisonment, up to a $250,000 fine, up to three (3) years of supervised release, and a mandatory $100 special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Evans praised the work of the New Orleans Police Department and the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating the case. Assistant U.S. Attorney Charles D. Strauss is in charge of the prosecution.
New Jersey Man Charged with Fraudulently Obtaining and Selling Three Tom Brady Super Bowl Rings, One of Which Sold for $337,000Read the Press Release
LOS ANGELES – Federal prosecutors today filed fraud charges against a New Jersey man who allegedly posed as a former player for the New England Patriots, which allowed him to purchase family versions of the team’s 2016 Super Bowl championship ring – supposedly as gifts to relatives of quarterback Tom Brady – one of which was sold at auction for more than $337,000.
Scott V. Spina Jr., 24, of Roseland, New Jersey, was charged today with one count of mail fraud, three counts of wire fraud and one count of aggravated identity theft in the scheme that allowed him to purchase three Super Bowl rings engraved with the name “Brady” on them and offer them for sale with the false claim that Tom Brady had given the rings to relatives.
In a plea agreement filed today in United States District Court, Spina agreed to plead guilty to the five felony offenses.
Court documents detail the fraudulent conduct that started in 2017 when Spina purchased a Super Bowl LI ring awarded to a Patriots player who subsequently left the team. Spina, who bilked the former player by paying for the ring with at least one bad check, sold the ring soon after for $63,000 to a well-known broker of championship rings.
When Spina obtained the player ring, he also received the information that allowed the former player to purchase Super Bowl rings for family and friends that are slightly smaller than the player rings. “Spina then called the Ring Company, fraudulently identified himself as [the former player], and started ordering three family and friend Super Bowl LI rings with the name ‘Brady’ engraved on each one, which he falsely represented were gifts for the baby of quarterback Tom Brady,” according to the criminal information filed today. “The rings were at no time authorized by Tom Brady. Defendant Spina intended to obtain the three rings by fraud and to sell them at a substantial profit.”
Spina entered into an agreement with the Orange County man who purchased the player’s Super Bowl ring to sell him the three family rings that Spina now claimed Brady had given to his nephews. After agreeing to buy the three rings for $81,500 – nearly three times what Spina paid for the rings – the buyer started to believe that Brady did not have nephews, and he tried to withdraw from the deal. The same day that the buyer tried to back out, and the same day that Spina actually received the rings in November 2017, Spina immediately sold them to an auction house for $100,000. During an auction in February 2018, one of the family rings was sold for $337,219.
In his plea agreement, Spina admitted that he defrauded the Orange County ring broker when he falsely claimed that the rings “were ordered for Tom Brady directly from [the Ring Company] for select family members.” Spina also admitted that he defrauded this victim in relation to three wire transfers for the deposit on the family rings. Spina further admitted he committed identity theft when he posed as the former Patriot to purchase the rings.
Spina has agreed to make his first appearance in this case in federal court in Los Angeles on January 31.
Once he formally enters the guilty pleas, Spina will face a statutory maximum penalty of 92 years in federal prison, but the actual sentence will likely be substantially less once a federal judge considers the United States Sentencing Guidelines and other statutory factors.
As part of the plea agreement, Spina agreed to pay restitution to the former Patriots player who sold his Super Bowl ring and other memorabilia.
The FBI’s Art Crime Team investigated this matter.
Assistant United States Attorney Erik M. Silber of the Environmental and Community Safety Crimes Section is prosecuting this case.
Montana Federal Court Finds Tax Shelter Promoter Liable for over $8 Million in Penalties for Timeshare Donation SchemeRead the Press Release
On Dec. 16, following a bench trial in May 2021, a federal court in the District of Montana ruled that James Tarpey, a Montana-based attorney, is liable for approximately $8,465,000 in penalties for promoting a tax shelter involving improper deductions for donating timeshares.
In 2015, the government initially filed an action to enjoin Tarpey and others from engaging in a scheme of purportedly donating timeshare interests for large tax deductions. The court permanently barred Tarpey from promoting the timeshare donation scheme. The court also ruled that Tarpey made false statements resulting in tax avoidance. Tarpey agreed to an injunction in 2016, which remains in full effect.
According to court documents, Tarpey formed Project Philanthropy Inc. dba Donate for Cause (DFC) as a non-profit organization in 2006, and that “DFC allowed timeshare owners who faced burdensome timeshare fees and expenses to donate their unwanted timeshares.” The court found that Tarpey and others prepared appraisals for timeshares that were donated to DFC, and that Tarpey promised potential customers generous tax savings from donations of their unwanted timeshares. In a March 2019 order, the court concluded that the Treasury Regulations disqualified Tarpey and his appraisers from conducting timeshare appraisals for DFC because they “lacked sufficient independence[.]” The court further concluded that these “false appraisals resulted in tax avoidance” and that “Tarpey knew, or had reason to know, that” “he made false statements.” The court’s 2019 ruling left open the amount of Tarpey’s penalty, however.
In its final order, issued Dec. 16, the court ruled on the amount of the penalty. The court found that the gross income amount that Tarpey derived from the entire scheme was at least $19,623,437, and this would lead to a penalty of over $9.8 million. However, the court agreed with the United States to limit the penalty against Tarpey to $8,465,000 (plus interest), the amount that the government had sought in its counterclaim.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Trial Attorneys Richard G. Rose, Harris J. Phillips and Gretchen E. Nygaard of the Tax Division litigated this case. IRS agents and the attorneys at the IRS Office of Chief Counsel provided support.
Further information about the recent enforcement efforts of the Tax Division against unscrupulous tax-return preparers and tax-fraud promoters is available here on the Justice Department’s website. An alphabetical listing of persons enjoined from promoting tax schemes and preparing returns can be found on this page. If you become aware of an abusive tax scheme being promoted, please report it to the IRS.