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15 December 2021
Detroit Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Detroit, Michigan man pleaded guilty today to a federal drug crime.
According to court documents and statements made in court, on July 28, 2021, law enforcement officers were conducting surveillance on a Bernard Street residence in Huntington when they saw Marcellas Cortez Mitchell, 28, leave the residence in a vehicle. Mitchell was driving with a revoked license and officers stopped the vehicle. Upon approaching the vehicle, officers observed a front seat passenger making furtive movements. A search of the passenger resulted in two baggies containing approximately 11 grams and 8.7 grams of suspected heroin. Officers obtained a search warrant for the residence and found 46 grams of suspected heroin as well as drug paraphernalia. Mitchell admitted that he had given the passenger the baggies to conceal.
Mitchell pleaded guilty to possession with intent to distribute heroin and faces up to 20 years in prison when he is sentenced on March 14, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative efforts of the Huntington Violent Crime and Drug Task Force and the Huntington Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Ryan A. Keefe is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00139.
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Davenport Uncle and Nephew Sentenced to Prison for Drug and Firearm ChargesRead the Press Release
DAVENPORT, Iowa – Two Davenport men, Donnie Spencer, age 70, and Rafiel Lee Owens, age 35, were sentenced on Monday, December 13, 2021 by United States District Court Judge Stephanie M. Rose. Spencer was sentenced to 300 months in prison for Conspiracy to Distribute Heroin and Crack Cocaine, Possession with Intent to Distribute Heroin and Crack Cocaine, and Felon in Possession of Ammunition. Spencer was ordered to serve four years of supervised release to follow his prison term and pay $300 to the Crime Victims’ Fund. Owens was sentenced to 212 months in prison for Conspiracy to Distribute Heroin and Crack Cocaine and Felon in Possession of a Firearm. Owens was ordered to serve four years of supervised release to follow his prison term and pay $200 to the Crime Victims’ Fund.
Spencer and Owens were identified by law enforcement as participants in a conspiracy to distribute heroin and crack cocaine in June 2019 after a female suffered an opioid overdose at a hotel room where Owens was selling heroin. The investigation revealed Spencer was supplying his nephew Owens with drugs. Between June 2019 and December 2019, law enforcement executed several search warrants and recovered various controlled substances at Spencer and Owens’s residences, including heroin, heroin and fentanyl, crack cocaine, cocaine, and methamphetamine.
Spencer traveled to Chicago on a weekly basis to obtain heroin and crack cocaine and transported the drugs back to the Quad Cities. Spencer then supplied Owens, who then sold the drugs on Spencer’s behalf. Spencer also sold the drugs to his own customers. Over the course of approximately four years, Spencer was responsible for transporting and distributing approximately two kilograms of heroin and five kilograms of crack cocaine from Chicago to the Quad Cities.
In May of 2018, a 30-year-old female died from a drug overdose in Davenport after ingesting heroin, fentanyl, and methamphetamine provided to her by Owens. Testimony at the sentencing hearing revealed the night before she passed away, Spencer provided heroin to Owens who provided it to the female. She was found deceased the following morning.
In August of 2019, a 28-year-old female died in Rock Island, Illinois after ingesting a mixture of heroin and fentanyl provided to her by Owens. Testimony at the sentencing hearing revealed that Spencer tricked the female, who was not a heroin user, into consuming the heroin by telling her it was cocaine. Owens had obtained the heroin from Spencer earlier that day. The female was found dead the following morning.
Donnie Spencer was found guilty after a bench trial, presided by Judge Rose, on August 10, 2021. Rafiel Owens pleaded guilty to the charges on February 19, 2021.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Scott County Sheriff’s Office investigated the case.
DC Man Sentenced for Multi-Kilogram Cocaine ConspiracyRead the Press Release
A Washington, DC man was sentenced yesterday to 70 months in prison for conspiring to distribute five kilograms or more of cocaine.
According to court documents, since at least July 2019, Marcelin Saturne, 33, was a source of supply for multi-kilogram quantities of cocaine. Saturne acknowledged that he was personally involved in the distribution of, or it being reasonably foreseeable to him that his co-conspirators distributed, at least 15 kilograms but less than 50 kilograms of cocaine. At one point, Saturne brought cocaine to the greater Washington, DC area through parcels shipped from California where his source of supply was located. Saturne sold his cocaine for approximately $34,000-35,000 per kilogram.
In May 2021, Saturne met a Drug Enforcement Administration (DEA) confidential source (CS) who represented himself to be a source for cocaine. Saturne advised the CS that he wanted to purchase 15 kilograms of cocaine from the CS. In June 2021, the CS advised Saturne that a shipment of cocaine would be arriving to the Washington, DC area soon. Saturne agreed to purchase 10 kilograms of cocaine from that shipment. Saturne was arrested after agreeing to purchase the requested cocaine and his residence was searched. Therein law enforcement located and seized approximately $35,640 in U.S. currency as well as high end jewelry valued at approximately $146,160.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jarod Forget, Special Agent in Charge for the DEA Washington Field Division; and Michael L. Chapman, Loudoun County Sherriff, made the announcement after sentencing by U.S. District Judge Leonie M Brinkema.
Assistant U.S. Attorneys Bibeane Metsch and Michael BenAry prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No 1:21-cr-198.
Court Permanently Enjoins Three Vietnamese Residents from Continuing to Operate a Pandemic-Related Fraud SchemeRead the Press Release
A federal court in Florida permanently enjoined on Friday three residents of Vietnam from operating a pandemic-related scam that targeted American consumers, the Department of Justice announced.
In a complaint filed in August 2020 in the U.S. District Court for the Middle District of Florida, the government alleged that Thu Phan Dinh, Tran Khanh and Nguyen Duy Toan engaged in a wire fraud scheme designed to profit from the COVID-19 pandemic. According to the complaint, the defendants operated more than 300 websites that fraudulently purported to sell products in the United States that became scarce during the pandemic, including hand sanitizer and disinfectant wipes. Thousands of victims in all 50 states paid for items marketed through the websites, but received nothing. The complaint alleged that the defendants set up hundreds of email accounts and accounts with a U.S.-based payment processor to carry out the scheme and keep it hidden from law enforcement. The defendants also allegedly listed fraudulent contact addresses and phone numbers on the websites, which caused unaffiliated individuals and businesses in the United States to receive numerous complaint calls from victims who had been defrauded by the scheme.
After receiving information from American law enforcement, Vietnamese authorities conducted an investigation and arrested the defendants on local charges.
“Scams that take advantage of the global pandemic to prey on American consumers are particularly egregious,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice is committed to working with law enforcement partners in the United States and around the globe to stop anyone who would try to profit through this kind of conduct.”
“The final injunction entered in this civil case sends a strong message of our district’s commitment to ensuring that fraudulent, predatory practices will be confronted in this critically important area,” said Acting U.S. Attorney Karin Hoppmann of the Middle District of Florida. “We thank our partners at the Department of Justice’s Consumer Protection Branch, the Department of Homeland Security and Vietnamese law enforcement who assisted us throughout this effort.”
“HSI works tirelessly to disrupt and dismantle criminal networks around the world who are exploiting the global pandemic for their own personal financial gain,” said Special Agent in Charge John A. Condon of Homeland Security Investigations (HSI) Tampa. “This permanent injunction is the final step in ensuring these defendants can no longer take advantage of people.”
The civil enforcement action, filed in U.S. District Court in Tampa, Florida, is part of the Justice Department’s ongoing efforts to detect, investigate, and prosecute illegal conduct related to the pandemic. U.S. District Judge Kathryn Kimball Mizelle granted the government’s motion for a default judgment and issued the permanent injunction, which extends a preliminary injunction that halted defendants’ scam and shut down the fraudulent websites.
The action was brought based on an investigation conducted by U.S. Immigration and Customs Enforcement’s HSI, in coordination with the Vietnam Ministry of Public Security, Department of Foreign Relations and Hanoi Police.
The government was represented by Assistant U.S. Attorney Carolyn B. Tapie for the Middle District of Florida and Trial Attorney Kathryn A. Schmidt of the Civil Division’s Consumer Protection Branch.
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 and efforts to stop COVID-19 fraud, 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.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the United States Attorney’s Office for the Middle District of Florida, visit its website at www.justice.gov/usao-mdfl.
Court Permanently Enjoins Three Vietnamese Residents from Continuing to Operate a Pandemic-Related Fraud SchemeRead the Press Release
Tampa, FL – A federal court in Florida permanently enjoined on Friday three residents of Vietnam from operating a pandemic-related scam that targeted American consumers, the Department of Justice announced.
In a complaint filed in August 2020 in the U.S. District Court for the Middle District of Florida, the government alleged that Thu Phan Dinh, Tran Khanh and Nguyen Duy Toan engaged in a wire fraud scheme designed to profit from the COVID-19 pandemic. According to the complaint, the defendants operated more than 300 websites that fraudulently purported to sell products in the United States that became scarce during the pandemic, including hand sanitizer and disinfectant wipes. Thousands of victims in all 50 states paid for items marketed through the websites, but received nothing. The complaint alleged that the defendants set up hundreds of email accounts and accounts with a U.S.-based payment processor to carry out the scheme and keep it hidden from law enforcement. The defendants also allegedly listed fraudulent contact addresses and phone numbers on the websites, which caused unaffiliated individuals and businesses in the United States to receive numerous complaint calls from victims who had been defrauded by the scheme.
After receiving information from American law enforcement, Vietnamese authorities conducted an investigation and arrested the defendants on local charges.
“Scams that take advantage of the global pandemic to prey on American consumers are particularly egregious,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice is committed to working with law enforcement partners in the United States and around the globe to stop anyone who would try to profit through this kind of conduct.”
“The final injunction entered in this civil case sends a strong message of our district’s commitment to ensuring that fraudulent, predatory practices will be confronted in this critically important area,” said Acting U.S. Attorney Karin Hoppmann of the Middle District of Florida. “We thank our partners at the Department of Justice’s Consumer Protection Branch, the Department of Homeland Security and Vietnamese law enforcement who assisted us throughout this effort.”
“HSI works tirelessly to disrupt and dismantle criminal networks around the world who are exploiting the global pandemic for their own personal financial gain,” said Special Agent in Charge John A. Condon of Homeland Security Investigations (HSI) Tampa. “This permanent injunction is the final step in ensuring these defendants can no longer take advantage of people.”
The civil enforcement action, filed in U.S. District Court in Tampa, Florida, is part of the Justice Department’s ongoing efforts to detect, investigate, and prosecute illegal conduct related to the pandemic. U.S. District Judge Kathryn Kimball Mizelle granted the government’s motion for a default judgment and issued the permanent injunction, which extends a preliminary injunction that halted Defendants’ scam and shut down the fraudulent websites.
The action was brought based on an investigation conducted by HSI, in coordination with the Vietnam Ministry of Public Security, Department of Foreign Relations and Hanoi Police.
The government was represented by Assistant U.S. Attorney Carolyn B. Tapie of the Middle District of Florida and Trial Attorney Kathryn A. Schmidt of the Civil Division’s Consumer Protection Branch.
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 and efforts to stop COVID-19 fraud, 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.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the United States Attorney’s Office for the Middle District of Florida, visit its website at www.justice.gov/usao-mdfl.
Court Orders GirlsDoPorn and GirlsDoToys Video Rights and $18 Million in Restitution to VictimsRead the Press Release
NEWS RELEASE SUMMARY – December 15, 2021
SAN DIEGO – U.S. District Judge Janis L. Sammartino has ruled that all rights to videos and images produced in the GirlsDoPorn and GirlsDoToys sex trafficking case be awarded to the hundreds of victims who are featured in the footage posted to the adult websites.
Judge Sammartino issued the ruling as part of a restitution order in the prosecution of Ruben Andre Garcia, an adult film performer and producer who was sentenced to 20 years in prison for conspiring with the owners of the GirlsDoPorn (GDP) and GirlsDoToys (GDT) adult websites to recruit young women to appear in the sex videos using force, fraud, and coercion.
In addition to granting the rights to the videos and images to the victims, Judge Sammartino ordered Garcia to pay approximately $18 million in restitution to the victims.
To address the problem that hundreds of victims in this case have been and continue to be victimized by the posting and viewing of their GDP and GDT images and videos, Judge Sammartino outlined the following conditions:
- Garcia, aka “Jonathan,” has no right to use, publish, or otherwise exploit GirlsDoPorn (GDP) or GirlsDoToys (GDT) images, likenesses, or videos;
- All purported model releases and other agreements between GDP and/or GDT and its models purporting to give GDP and/or GDT the right to use, publish, or otherwise exploit its models’ images, likenesses, or videos are void and unenforceable;
- All transfers, licenses, or leases of the right to use, publish, or otherwise exploit the models’ images, likenesses, or videos by GDP and/or GDT to any third parties are void;
- Each model holds superior right, title, and interest in the images, likenesses, and videos depicting that model produced by GDP and/or GDT; and
- Each model shall have and recover all property that GDP and/or GDT took from them, including images, likenesses, videos, and copyrights.
“This is an extremely important ruling that returns power to the victims by giving them control of the images and videos that caused them so much pain and suffering,” said Acting U.S. Attorney Randy Grossman. “We hope this helps the victims close a difficult chapter in their lives.” Grossman thanked the prosecution team and the FBI for the relentless pursuit of justice in this case.
“An important step in this long healing process is for the victims to be able to take back control of their lives,” said FBI Special Agent in Charge Suzanne Turner. “This ruling helps to facilitate that shift while the FBI aggressively pursues the lone outstanding fugitive in this case - and its ringleader - Michael James Pratt.”
According to court documents, Garcia admitted that beginning in approximately 2013 and continuing up to October 2019, Michael James Pratt, Matthew Isaac Wolfe, Ruben Andre Garcia, Theodore Wilfred Gyi, Valerie Moser, and others, allegedly participated in a scheme to recruit victims to engage in commercial sex acts using force, fraud, and coercion.
To recruit victims to appear in videos for the websites, the defendants lied to the victims and told them that the videos would never be posted on-line, that the videos would never be released in the United States, and that no one who knew the women would ever find out about the videos, representations that the defendants knew were false. Hundreds of women from cities throughout the United States and Canada were recruited to appear in videos based upon these material misrepresentations. The defendants illegally obtained the images and videos of the victims using force, fraud, and coercion.
The victims’ sex acts were posted on the GDP and GDT websites. GDP and GDT charged visitors a subscription fee to access the websites’ content. The GDP and GDT websites generated at least $17 million in revenue for its owners.
Throughout the conspiracy, GDP and GDT received millions of views. To promote the websites, video content from both sites was posted on free porn sites such as Pornhub.com, one of the world’s most visited websites. The snippets of videos from GDP and GDT posted on Pornhub.com were often viewed millions of times, according to Pornhub’s view counters.
The next hearing in the ongoing case is March 11, 2022, at 2 p.m. for motions as to defendant Mathew Wolfe, whose trial is slated to begin June 20, 2022.
Any victims seeking the right to enforce this order and any additional victims of these alleged crimes are encouraged to call the FBI at 1-800-CALL-FBI or go to https://tips.fbi.gov/
The FBI is offering a reward of up to $50,000 for information leading to the arrest of Michael James Pratt. Individuals with information about Pratt should contact their local FBI office or the nearest American Embassy or Consulate.
For further information, please see:
- Wanted Poster: MICHAEL JAMES PRATT — FBI
- Press Release: FBI Seeking Public’s Assistance to Locate Michael James Pratt, Wanted for Sex Trafficking and Production of Child Pornography — FBI
DEFENDANTS Case Number 19cr4488-JLS
Michael James Pratt Age: 36 Fugitive
Matthew Isaac Wolfe Age 37 San Diego, CA
Theodore Gyi Age: 42 Rancho Aliso, CA**
Valorie Moser Age: 38 San Diego, CA**
SUMMARY OF CHARGES
Count 1 (charging all defendants)
Conspiracy to Commit Sex Trafficking by Force, Fraud and Coercion, 18 U.S.C. § 1591(a) and (b)(1)
Maximum Penalty: Life in prison, $250,000 fine, and a special assessment of $5,000 under 18 U.S.C. § 3014.
Count 2 (Pratt)
Production of Child Pornography, 18 U.S.C. § 2251(a) and (e)
Maximum penalty: Thirty years in prison with mandatory minimum 15 years; $250,000 fine, and a special assessment of $5,000 under 18 U.S.C. § 3014.
Count 3 (Pratt)
Sex Trafficking of a Minor by Force, Fraud and Coercion, 18 U.S.C. § 1591(a)(1) and (2)
Maximum penalty: Life in prison, mandatory minimum 15 years; $250,000 fine, and a special assessment of $5,000 under 18 U.S.C. § 3014.
Counts 4 (Pratt, Wolfe, Garcia), 5 (Pratt, Garcia), 6 (Pratt, Wolfe, Garcia), 7 (Pratt, Garcia, Gyi), 8 (Pratt, Garcia, Gyi)
Conspiracy to Commit Sex Trafficking by Force, Fraud and Coercion, 18 U.S.C. § 1594
Maximum penalty: Life in prison, mandatory minimum 15 years; $250,000 fine, and a special assessment of $5,000 under 18 U.S.C. § 3014.
INVESTIGATING AGENCY
FBI
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Convicted Sex Offender Sentenced to 78 Months for Possession of Child PornographyRead the Press Release
EAST ST. LOUIS, Ill. – A Centralia man has been sentenced for his possession of child pornography.
Dakota Olson, 27, was sentenced on Tuesday, December 14, 2021, to 78 months in federal prison on one count of transportation of child pornography and one count of possession of child pornography.
According to court documents and statements made in federal court, Olson came to the attention of law enforcement based on a cyber tip that a Dropbox user had files containing child pornography.
Law enforcement discovered that between July 19, 2019, and February 13, 2020, Olson possessed over
1,500 images and over 150 videos of child pornography in his Dropbox account. Olson had received images and videos containing child sexual abuse material on the internet and organized them within his Dropbox account. Olson had previously been convicted of Criminal
Sexual Abuse and was required to register as a sex offender.As part of his sentence, Olson was ordered to serve a 5-year term of supervised release following his incarceration.
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.”The investigation was conducted by the Jefferson County Police Department and the Department of
Homeland Security Investigations.
The case was prosecuted by Assistant United States Attorney Alexandria Burns.Columbus Man Convicted of Tampering with a Witness in a Federal Gun CaseRead the Press Release
COLUMBUS, Ga. – A Columbus resident with a lengthy criminal history was sentenced to prison after he orchestrated others from jail to compel a witness in a separate federal case against him to make false statements.
Aubrey Crittenden aka Frog, 36, of Columbus, was sentenced to serve 56 months in prison to be followed by three years of supervised release by U.S. District Clay Land on Tuesday, Dec. 14, after he previously pleaded guilty to tampering with a witness. There is no parole in the federal system.
“It’s a highly serious criminal offense to attempt to interfere with the administration of justice by tampering with a witness,” said U.S. Attorney Peter D. Leary. “Our office will not hesitate to pursue lawful prosecution against those who threaten, coerce or otherwise wrongfully influence or tamper with a witness.”
According to court documents, Columbus Police Department (CPD) officers were patrolling the area of Pecan Street and Benner Avenue in Columbus, looking for Crittenden, who was a wanted person. A witness called 911 to alert CPD that Crittenden was on Pecan Street with a gun. Officers spotted Crittenden exiting from and standing by a car and after a brief foot chase, he was taken into custody. Crittenden had a loaded 9mm pistol in the car. Crittenden was indicted by a federal grand jury on Feb. 12, 2020 of possession of a firearm by a convicted felon and was detained pre-trial at the Lee County, Alabama, jail. While incarcerated, Crittenden made multiple jail calls, including between May 20, 2021 and June 9, 2021, coordinating with and directing individuals to draft an affidavit containing false statements and to pressure the witness who reported his whereabouts to police to sign it. The affidavit signed by the witness under duress was delivered to Crittenden’s attorney, and a trial was scheduled. Crittenden has a lengthy criminal history, including convictions for terroristic threats and theft by taking in Muscogee County, Georgia, Superior Court.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Assistant U.S. Attorney Christopher Williams prosecuted the case.
Colorado Man Charged with Assault on a Federal Officer in Rocky Mountain National ParkRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Daron Marquel Ellis has been charged by criminal complaint with assault on a federal officer by use of a deadly weapon in violation of Title 18, United States Code, Section 111(a)(1), (b). According to court documents, the alleged assault occurred on or about December 8, 2021, in Rocky Mountain National Park. Ellis made his initial appearance in Federal Court in Denver on Monday where he was advised by a Federal Magistrate Judge of the charge pending against him and ordered to remain in custody.
Assault on a federal officer by use of a deadly weapon carries a potential penalty of up to 20 years in prison and/or a fine of up to $250,000.
Assistant United States Attorney Laura Cramer-Babycz is handling the prosecution.
The charge in the criminal complaint is an allegation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Case Number: 21-mj-0204
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Clayton, NC Resident Sentenced for Conspiring to Defraud the North Carolina Medicaid SystemRead the Press Release
NEW BERN, N.C. – A Clayton, North Carolina man, Luis Angel Lozada, was sentenced today to 70 months in prison and three years of supervised release for conspiracy to commit health care fraud. On September 18, 2020, Lozada pleaded guilty to the charge. As part of sentencing, Lozada was also ordered to pay $1,130,137 in criminal restitution to the North Carolina Fund for Medical Assistance.
According to court documents and other information presented in court, between 2016 and 2020, Lozada conspired with multiple individuals to defraud the North Carolina Medicaid system by submitting over $1 million in false and fraudulent claims for the reimbursement of behavioral health services. Medicaid is a federally funded health care benefit program that helps pay for medical-related services for low-income individuals and their families. In North Carolina, Medicaid is administered by the North Carolina Department of Health and Human Services, Division of Health Benefits.
In March 2016, Lozada formed a behavioral health business in North Carolina known as Cornerstone Family Services Group (“Cornerstone”). Cornerstone was headquartered in Zebulon initially and later opened offices elsewhere in the district. Cornerstone submitted high-volume Medicaid claims for services that were never rendered; the false claims relied on stolen beneficiary and clinician information that was incorporated into the fraudulent billings. Between 2016 and 2017, for example, Lozada partnered with co-conspirators Reginald Van Reese, Jr., and Ruben Samuel Matos to source and integrate the stolen Medicaid beneficiary data into Cornerstone’s billings. The beneficiary information, in turn, was used to back-bill Medicaid for the maximum number of units allowed, notwithstanding the fact that the beneficiary had never been treated by Cornerstone. Another co-conspirator, Humberto Mercado, was recruited to fabricate treatment records and began to do so before the first billings were submitted to Medicaid.
Reese, Matos, and Mercado each pleaded guilty to conspiracy to commit health care fraud in separate related cases. Mercado was sentenced today to 15 months imprisonment, three years of supervised release, and restitution in the amount of $494,688. Reese and Matos were previously sentenced.
Michael F. Easley, Jr., United States Attorney for the Eastern District of North Carolina, made the announcement after sentencing by United States District Judge Louise W. Flanagan. The Federal Bureau of Investigation and the North Carolina Medicaid Investigations Division investigated the case. Assistant United States Attorney Adam F. Hulbig prosecuted the case for the government.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-340-FL.
Centralia Man Pleads Guilty to Felony Gun PossessionRead the Press Release
EAST ST. LOUIS, Ill. – Chris Jamison, 18, of Centralia, Illinois, entered a plea of guilty to one count of felon in possession of a firearm in federal court in East St. Louis, Illinois, on Tuesday, December 14, 2021.
According to court documents, Mr. Jamison admitted possessing a Smith and Wesson handgun after having been previously convicted of Aggravated Discharge of a Firearm at an Occupied
Vehicle in Marion County, Illinois, Circuit Court, case number 20-CF-120. Jamison was on probation for this offense when he was found with another firearm on March 1, 2021. Law enforcement officials utilized DNA testing to establish Jamison’s possession of the firearm.Jamison is scheduled to be sentenced on March 24, 2022 at 1:30 p.m. and faces a maximum penalty of
10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.This case was investigated by the FBI’s Safe Streets Task Force that focuses enforcement efforts in
Centralia, Marion County, Illinois. The FBI Safe Streets Task Force consists of members of the
FBI, Centralia Police Department, Marion County Sheriff’s Office, and the Illinois State
Police.
The case was prosecuted by Assistant United States Attorney Jennifer Hudson.Centennial Man Sentenced to Federal Prison for COVID-related FraudsRead the Press Release
The U.S. Attorney’s Office for the District of Colorado announces that Anthony Zaghab, age 52, of Centennial, Colorado, was sentenced to 30 months in federal prison for wire fraud based on his submission of numerous false applications for COVID-related relief funds. Zaghab was also ordered to pay $708,141 in restitution.
According to the plea agreement, beginning in April 2020, and continuing until early February of 2021, Zaghab knowingly engaged in a scheme to defraud the United States, the State of Colorado, and a bank to obtain pandemic-relief funds to which he was not entitled. He did this by submitting false and fraudulent Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) applications to the Small Business Administration and to a bank. From these SBA programs, Zaghab obtained $666,630. He also sought and obtained $41,511 in Pandemic Unemployment Insurance payments from the State of Colorado for ineligible family members.
With respect to the false EIDL applications, Zaghab falsely stated the number of employees, the purported gross revenues, and the purported cost of goods sold for certain business entities under his name. Zaghab also applied for and attempted to obtain EIDLs on behalf of fictitious or purported business entities created in the names of his family members without the knowledge or consent of these family members. Zaghab falsely represented that the funds would be used to pay payroll and other permissible expenses when, in fact, Zaghab used the majority of these proceeds for his personal benefit.
In addition to the fraudulent EIDL applications, Zaghab submitted four fraudulent PPP loan applications to a bank. All four PPP loan applications were approved and funded. In these applications, Zaghab falsely represented when the alleged businesses had been established and the monthly payroll for each fictitious entity. Zaghab obtained a total of $83,330 in PPP loan proceeds based on these false representations, which he used for his own personal benefit instead of to pay permissible expenses, like payroll.
Zaghab also applied for and obtained approximately $41,511 in Colorado Pandemic Unemployment Assistance (PUA) for ineligible family members without their knowledge and consent. Specifically, in April 2020, Zaghab applied for and obtained PUA for his sister and his mother, both of whom resided outside of the United States. Zaghab submitted these applications without the knowledge of his sister or mother and used the money for his own personal benefit. In or around April 2020, Zaghab also applied for and obtained PUA for his father who is and was deceased at the time of the application.
“Pandemic-relief funds were supposed to be used to save small businesses and to support individuals devastated by COVID-19,” said United States Attorney Cole Finegan. “Together with our law enforcement partners, we are holding criminals accountable for stealing from the generosity of the American taxpayer.”
“This prison sentence and restitution order should serve as a strong deterrent against COVID-19 related fraud,” said Marc DellaSala, Special Agent in Charge, U.S. Secret Service Denver Field Office. “We will vigorously pursue anyone stealing from government aid programs intended for struggling small businesses and families. I want to thank the U.S. Attorney’s Office and our pandemic fraud task force partners for their continued dedication to protecting America’s financial infrastructure.”
“Today’s sentencing in the Zaghad fraud case is an example of how the statewide task force we set up earlier this year is working. With our state and federal partners, we are investigating and going after those who committed fraud against the state’s unemployment insurance program and the identity theft that has affected thousands of Coloradans during the pandemic. Our work continues, and when wrongdoers can be identified, we’ll hold them accountable,” said Colorado Attorney General Phil Weiser.
"Program integrity has and will continue to be a focus of the Unemployment Insurance division, ensuring that those who engage in fraud within the program are brought to justice and stolen funds recovered" said Phil Spesshardt, Colorado Unemployment Insurance Division Director.
United States District Court Judge R. Brooke Jackson sentenced Zaghab on December 15, 2021.
The United States Secret Service and the Colorado Department of Labor and Enforcement conducted the investigation. Assistant United States Attorneys Martha A. Paluch and Rebecca S. Weber handled the prosecution of the case.
Case number: 21-cr-0188
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California Parent Pleads Guilty in College Admissions CaseRead the Press Release
BOSTON – The owner of a warehousing company for the shipping industry pleaded guilty today in federal court in Boston in connection with his involvement in the college admissions case.
I-Hsin “Joey” Chen, 67, of Newport Beach, Calif., pleaded guilty to one count of wire fraud and honest services wire fraud. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for April 20, 2022. Chen was previously scheduled for trial on Jan. 13, 2022.
Chen admitted to his role in a scheme to defraud ACT, Inc. by paying William “Rick” Singer $75,000 to bribe Igor Dvorskiy, a corrupt test administrator, to allow Mark Riddell, a corrupt test “proctor,” to secretly correct Chen’s son’s ACT exam answers to obtain a fraudulently inflated score.
Singer, Dvorskiy and Riddell have pleaded guilty for their respective roles in the scheme.
Under the terms of the plea agreement, the defendant has agreed to a sentence, subject to the Court’s approval, of nine weeks in prison, one year of supervised release with 100 hours of community service and a fine of $75,000.
Chen is the 38th, and final parent, in the case involving Singer’s exam cheating and athletic recruitment scheme, to either plead guilty or be convicted by a jury following trial.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail and wire fraud and honest services mail and wire fraud provides for a sentence of up 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Kristen A. Kearney, Ian J. Stearns and Leslie Wright of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
California Man Gets Life Sentence for Methamphetamine TraffickingRead the Press Release
Gulfport, Miss. - A California man was sentenced to life in prison for conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation in Mississippi.
According to court documents, following an investigation that began with the July 24, 2019, seizure of 12 pounds of methamphetamine in Pascagoula, Sharard Collier, 44, of Inglewood, CA, was arrested on November 4, 2019, at a home in Pass Christian where law enforcement found 24 kilos of methamphetamine and close to a kilo of fentanyl.
Surveillance had followed Collier when he met with co-defendant Gerald Wayne Jones, of Mobile, AL, at a truck stop. A semi-truck owned by the two was searched and contained an additional 28 kilos of methamphetamine. Subsequent lab results showed the methamphetamine had purity levels of 99% and 100%. The investigation revealed Collier had been supplying narcotics traffickers on the Gulf Coast for years.
Collier was indicted on November 19, 2019, for conspiracy to possess with intent to distribute methamphetamine. He pled guilty on December 2, 2020. Collier’s co-defendant Aaron Whavers, of Pass Christian, pled guilty and was sentenced to 292 months in prison. Gerald Wayne Jones pled guilty and was sentenced to 120 months in prison.
“According to the Drug Enforcement Administration, two milligrams of fentanyl can be lethal depending on a person’s body size, tolerance and past usage,” said U.S. Attorney Darren LaMarca. “This defendant possessed with the intent to distribute enough fentanyl to kill 500,000 people. We will never know the number of overdoses he caused when he combined this killer with methamphetamine. But, what we do know is he won’t do it again.”
FBI Special Agent in Charge Jermicha Fomby stated: “The FBI Safe Streets Task Force and our partnering agencies forged this team to investigate criminal enterprises operating within our communities. The tireless efforts of law enforcement and the sentence handed down today reflect the determination with which we are combating and deterring the distribution of illegal, potentially deadly, narcotics. In this case, the severity of the sentence matches the seriousness of the crime.”
The FBI Safe Streets Task Force, which is comprised of members from the FBI, Mississippi Bureau of Narcotics (MBN), Jackson County Sheriff's Office, Pascagoula Police Department, Ocean Springs Police Department, Gautier Police Department, and Moss Point Police Department, investigated the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This OCDETF case is the result of an extensive investigation targeting illegal narcotics distribution in Mississippi.
Assistant U.S. Attorney Annette Williams prosecuted the case.
Bloods Gang Members Plead Guilty to RacketeeringRead the Press Release
Earlier today, in federal court in Central Islip, Dylan Cruz and Richard Michel, members of the Red Lane Gorillas set of the Bloods street gang, pleaded guilty before United States District Judge Joanna Seybert to racketeering charges. Cruz admitted his roles in two murders committed on Long Island, an attempted murder and conspiring to murder rival gang members in Brooklyn. Michel admitted his role in a murder committed with Cruz, a kidnapping and an attempted murder of a disloyal Bloods member. When sentenced, Cruz and Michel each face a maximum sentence of life imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the guilty pleas.
“With today’s guilty pleas, the defendants have admitted their involvement in a slew of senseless violent crimes, including murders, committed in furtherance of a criminal enterprise, the Bloods gang,” stated United States Attorney Peace. “This Office, along with its federal and state law enforcement partners, will continue its unrelenting efforts to eradicate gang violence in the district and hold accountable all those who threaten the safety and well-being of our communities.”
According to court filings and statements made by the defendants at the guilty plea proceedings, Cruz and Michel, along with other members of the Red Lane Gorillas engaged in a violent gang war against rival gangs, including the Crips and the 5-9 Brims set of the Bloods, in Nassau County and Brooklyn. Additionally, Cruz and Michel engaged in extreme violence against anyone suspected of disloyalty or disrespecting their gang.
Cruz and Michel admitted their roles in the July 15, 2012 murder of Anthony Richard, an individual that they wrongly suspected of assisting the Crips in the 2010 murder of a member of their gang. Cruz and Michel, together with fellow gang members and associates to locate the victim, obtained a firearm, and followed the victim’s vehicle to Baldwin Harbor, New York. When Richard victim parked his vehicle, Cruz exited the vehicle he was travelling in, walked up to the victim’s car and fired approximately 15 shots into the victim’s vehicle at close range. Richard was killed and a passenger in the vehicle was wounded. In addition, Cruz admitted to November 17, 2010 shooting of a rival gang member in Roosevelt, New York, as well as conspiring to kill members of the 5-9 Brims, including the February 20, 2016 shooting of a rival gang member in Queens, New York. Michel also admitted to the October 13, 2011 kidnapping and assault of a gang member in Hempstead, New York and the September 9, 2016 attempted murder of a disloyal fellow Bloods member in Uniondale, New York.
Cruz also admitted to committing the October 15, 2014 murder of Ehrik Williams in Hempstead, New York. Cruz wrongly believed that Williams was the individual who had robbed an associate of the defendant. Cruz walked up behind Williams in broad daylight and fired multiple shots at him, killing him.
This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. As part of the program, U.S. Attorneys’ Offices work in partnership with federal, state, local and tribal law enforcement and their local communities to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Nicole Boeckmann, Michael Maffei and Oren Gleich are in charge of the prosecution.
The Defendants:
DYLAN CRUZ (also known as “L Banga” and “Red Lane Banga”)
Age: 30
Brooklyn, New YorkRiCHARD MICHEL (also known as “G-Light” and “Gangsta Light”)
Age: 41
Brooklyn, New YorkE.D.N.Y. Docket Nos. 18-CR-664 (S-1) and (S-3) (JS)
Baltimore Woman Facing Federal Indictment for Allegedly Obtaining More Than $1.6 Million in Federal Funds Intended to Relieve Financial Distress Caused by the Covid-19 PandemicRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Nichelle Henson, age 35, of Baltimore, Maryland, for false statements and bank fraud in connection with fraudulent applications Henson allegedly filed to obtain Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans in the names of multiple businesses. The indictment was returned on December 7, 2021 and unsealed today. Henson will have her initial appearance virtually on Thursday, December 16, 2021, at 2:15 p.m., before U.S. Magistrate Judge A. David Copperthite.
The indictment 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; and Brian D. Miller, Special Inspector General for Pandemic Recovery (SIGPR).
“It is reprehensible that fraudsters try to take advantage of this global pandemic to line their own pockets,” said United States Attorney Erek L. Barron. “As charged in the indictment unsealed today, Nichelle Henson allegedly fraudulently obtained more than $1.6 million in federal funds at the expense of honest business owners who were actually experiencing financial distress as a result of COVID-19. The U.S. Attorney’s Office and our law enforcement partners are committed to investigating, stopping, and prosecuting these crimes.”
“We are pleased that SIGPR is getting results for the Pandemic Response Accountability Committee (PRAC) Task Force,” said Brian D. Miller, Special Inspector General for Pandemic Recovery.
According to the 18-count indictment, Henson incorporated businesses with the State of Maryland, including Crowns Construction, LLC; Nichelle Henson Campaign, LLC; One Stop for Services, LLC; Your Friendly Tax Preparation Services, LLC; Women Entrepreneurs Can Succeed, LLC, and Peace of Mind Services Inc. Henson often opened bank accounts in the names of businesses she incorporated and obtained Tax Identification Numbers (TINs) from the IRS for the businesses. In tax year 2019, Crowns Construction, LLC; Nichelle Henson Campaign, LLC; Your Friendly Tax Preparation Services, LLC; and Peace of Mind Services, Inc. and Women Entrepreneurs Can Succeed LLC, had no employees. Henson filed forms with the IRS for tax year 2019 indicating that One Stop For Services LLC had three employees, but no forms indicating the required taxes were withheld or deposited with the IRS for those employees.
The indictment alleges that beginning in April 2020, Henson filed fraudulent applications on behalf of her businesses through the EIDL and PPP programs, which were intended to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic.
Specifically, the indictment alleges that Henson made false statements on six fraudulent applications filed on the Small Business Administration’s website to obtain EIDL grants. Henson allegedly obtained a total of $18,000 for two of the applications, but the remaining four application were declined. As detailed in the indictment, Henson’s alleged false statements included that the businesses had between five and fourteen employees, had gross revenue of at least $36,000 and up to more than $1.3 million, and that the cost of goods sold was between $13,000 and $700,000 for the various businesses.
The indictment alleges that Henson also submitted six fraudulent applications to obtain a total of $998,590 in loans under the PPP program. The applications allegedly contained false statements, misrepresentations and omissions related to her purported businesses including their existence, address, payroll expense, and number of employees. Henson allegedly opened bank accounts specifically to receive PPP funds, did not disclose that she had incorporated other businesses, and falsely promised to spend PPP funds on allowable expenses, such as payroll, business rent and business utilities. In fact, the indictment alleges that Henson used the funds on personal expenses such as personal plastic surgery, home renovations for herself and relatives, rent and utilities for personal residences, and family expenses.
As detailed in the indictment, the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act (Economic Aid Act), which was part of the Consolidated Appropriations Act, 2021 package, extended the Paycheck Protection Program (PPP) to include a second round of funding to certain businesses that received funding under the original PPP, referred to as “Second Draw PPP Loans.”
Henson filed six PPP Second Draw Borrower applications, again allegedly including false statements and misrepresentations as to her businesses, number of employees, that the initial PPP loan was used to pay allowable expenses, and including fraudulent documentation, such as IRS forms that had never been filed with the IRS. As a result, the indictment alleges that Henson attempted to obtain $818,750 in Second Draw PPP loans and actually received $676,250.
Further, the indictment seeks the forfeiture of any proceeds obtained as a result of the crime, including $678,073.82 seized during the investigation from six bank accounts in the names of some of Henson’s businesses, as well as a money judgment in the amount of proceeds obtained as a result of the scheme to defraud.
If convicted, Henson faces a maximum sentence of 30 years in federal prison for each of the 12 counts of bank fraud and a maximum of five years in federal prison for each of the six counts of making a false statement. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
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.
United States Attorney Erek L. Barron commended the FBI and the Office of the Special Inspector General for Pandemic Recovery, which conducted the investigation on behalf of the Pandemic Response Accountability Committee (PRAC) Fraud Task Force, for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Joyce K. McDonald, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Augusta man convicted of multi-million-dollar scheme to defraud a mortgage lenderRead the Press Release
AUGUSTA, GA: An Augusta man has been convicted of fraud by a federal jury who found he committed fraud when he borrowed nearly $3 million to refinance an Augusta apartment complex, and then filed for bankruptcy protection when facing foreclosure.
Jerome Walter Kiggundu, 37, the registered agent and managing member of Nakaddu LLC, a/k/a Kiggun Properties LLC, was found guilty after a two-day trial in U.S. District Court on charges of Bank Fraud, Bankruptcy Fraud, and False Statements Under Oath, said David H. Estes, U.S. Attorney for the Southern District of Georgia. Kiggundu faces a sentence of up to 30 years in prison along with substantial fines and restitution, followed by a period of supervised release.
There is no parole in the federal system.
“Jerome Kiggundu spun a web of financial lies to obtain a loan for millions of dollars, and then compounded those falsehoods by committing bankruptcy fraud and lying under oath when he was confronted about it,” said U.S. Attorney Estes. “Thanks to exceptional investigative work from the FBI and the alertness of the employees at the United States Trustees Program, the jury saw through his fraud and is holding him accountable.”
As spelled out during the trial before U.S. District Court Chief Judge J. Randal Hall, Kiggundu borrowed $2,831,250 from a mortgage lender in March 2019 by submitting fraudulent bank statements to falsely claim that his company had an average monthly operating balance of approximately $100,000. In truth, his account had an average of approximately $500 during this period. Kiggundu also submitted a false personal financial statement overstating his net worth and assets to qualify for the loan.
When the scheme started to unravel, Kiggundu filed for bankruptcy protection under Chapter 11 in an attempt to avoid foreclosure by the lender. Kiggundu then doubled down on his scheme and submitted another set of fake bank statements in his bankruptcy to conceal his bank fraud and cover his tracks. He also lied under oath about his finances when questioned by employees of the United States Trustee Program who suspected this fraud.
“No matter how elaborate or complicated the fraud scheme, the FBI will work to uncover it,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Kiggundu will now be held accountable for the damage he has done, sending a strong message to anyone considering such fraud that it is a serious crime with serious consequences.”
The case was investigated by the FBI and prosecuted for the United States by Assistant U.S. Attorneys Patrick J. Schwedler and Jennifer A. Stanley.
Armed Career Criminal Sentenced to 15 Years for Possessing a Firearm on the Outer BanksRead the Press Release
NEW BERN, N.C. – An Elizabeth City man was sentenced today to 180 months in prison as an Armed Career Criminal after being found with a stolen firearm in Kill Devil Hills, NC. On June 8, 2021, Deangelo Maurice Joyner pled guilty to felon in possession of a firearm in connection with the case.
According to court documents and other information presented in court, Joyner, 46, was involved in a hit-and-run accident in Dare County. Deputies from the Dare County Sheriff’s Office with assistance by the Kill Devil Hills Police Department quickly located Joyner driving the truck involved in the accident and conducted a traffic stop on the vehicle. After deputies saw an open container of alcohol and suspected drug paraphernalia on the passenger seat of the truck, Joyner was removed from the vehicle. After a search of his person, deputies located a 9mm handgun with an extended magazine loaded with ammunition in his waistband. The gun had been reported stolen from Currituck County.
Joyner has many prior violent felony convictions, making him an Armed Career Criminal under federal law, including: Robbery by Force, Use of a Firearm in the Commission of a Felony, Robbery, and Robbery with a Dangerous Weapon. He also has prior convictions for Felony Attempted Grand Larceny from the Person, Fleeing or Eluding Arrest with a Motor Vehicle, Reckless Driving, and DUI.
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Dare County Sheriff’s Office and the Kill Devil Hills Police Department investigated the case and Assistant U.S. Attorney Robert J. Dodson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 2:20-CR-00011-FL.
Albuquerque man appears in court on bank robbery chargeRead the Press Release
ALBUQUERQUE, N.M. – Angel Lara, 33, of Albuquerque, appeared in federal court on Dec. 14 for a preliminary and detention hearing on a charge of attempted bank robbery. Lara will remain in custody pending trial, which has not been scheduled.
According to a criminal complaint, on Nov. 30, Lara allegedly entered a Wells Fargo Bank in Albuquerque and presented a demand note to a teller. The note included instructions to alert the media. The teller pressed an alarm button. As Lara was approached by security, Lara allegedly kept his hand in his jacket pocket and claimed to have a firearm. Police later arrived at the bank, negotiated with Lara, and took him into custody.
A complaint is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Lara faces up to 20 years in prison.
The FBI Violent Crimes and Gangs Task Force investigated this case with assistance from the Albuquerque Police Department. Assistant U.S. Attorney Samuel A. Hurtado is prosecuting the case.
Additional defendants charged with trafficking young girls for sexRead the Press Release
HOUSTON – Three more people have been indicted and additional charges filed in human trafficking conspiracy involving young runaway girls on what it known as the “Blade,” announced Acting U.S. Attorney Jennifer B. Lowery
Law enforcement arrested Chantel Deshay Collins, 28, Houston, and Asia Monae Hailey aka Momo, 21, Galveston, this morning. They are expected to appear for an initial appearance tomorrow before U.S. Magistrate Andrew Edison. Michael Gonzalez aka Mumbles, 21, Houston, is currently in Harris County jail on other charges and is expected to be transferred to federal court to answer these charges by the end of the week.
Also charged are Clarence Chambers aka Chris aka Crazzi Chris, 29, Javon Opoku aka Glizzy, 20, Damarquis McGee aka Lil Blue, 23, Jerreck Hilliard, aka JMoney, Vanessa Sillabi aka Chocolate, 21, and Andres Portillo aka Andro, 20. They are also expected to appear on the new charges in the superseding indictment Dec. 23 before Judge Edison.
The defendants are charged with trafficking young runaway girls on what it known as the “Blade” or the Bissonnet Track. This is an area near Southwest 59 Freeway and Bissonnet Street in Houston where traffickers commonly place their victims, according to the charges.
In addition to the sex trafficking allegations, the superseding indictment includes new charges against many for kidnapping, sexual exploitation of a child, attempted obstruction of justice and attempted coercion/enticement of a child.
According to the superseding indictment, the defendants worked to recruit underage teenage girls and forced them to engage in sex acts for money in cars and hotels around the Blade. They allegedly passed around or reassigned victims amongst one another, taught each other “the pimp game” and required the young girls to walk the Blade and sell their bodies. They also kept the proceeds, according to the charges.
The superseding indictment further alleges if any of the girls wanted to switch between pimps, they would have to pay an exit fee or get “beat out” to do so. In one instance, a minor girl had allegedly wandered onto a rival pimp’s territory. The charges allege she was kidnapped and raped as a consequence.
Some of those charged also required daily quotas each night from their victims, according to the charges. The superseding indictment further alleges if the girls failed to meet their daily quotas, they were severely punished through beatings and humiliation. In some cases, pimps allegedly instructed other females to carry out these beatings as punishment. At other times, some defendants worked with the pimps to help harbor, manage, maintain, transport or collect sex trafficking proceeds from the minor victims, according to the charges.
If convicted, they all could face up to life in prison.
The Houston Police Department initiated the investigation and later partnered with Homeland Security Investigations and the Harris County District Attorney’s Office as part of the Human Trafficking Rescue Alliance (HTRA). Established in 2004, the U.S. Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorneys Richard Bennett and Kate Suh are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law .Acting United States Attorney Announces Dilworth, MN, Man Sentenced to Federal Prison for Violent Gang RobberiesRead the Press Release
FARGO - Acting United States Attorney Nicholas W. Chase announced that on December 13, 2021, U.S. District Court Chief Judge Peter D. Welte sentenced Josiah Thomas Aguilar, age 21, Dilworth, MN, to 100 months in federal prison for two counts of Interference with Commerce by Threats and Violence – Hobbs Act Robbery; Use of a Firearm During and in Relation to a Crime of Violence; Conspiracy to Possess with Intent to Distribute and Distribute Controlled Substances; and Aiding and Abetting. Chief Judge Welte also sentenced Aguilar to 3 years supervised release and a $400 Special Assessment.
It is alleged that from January 2019 through May 2019, Abbot Aho, led a criminal gang known as the "Slither Gang," members of which conspired with Aho and other individuals to target robbery victims who were themselves alleged drug traffickers in North Dakota, Minnesota, and elsewhere. Aguilar and the co-conspirator gang members carried out a string of robberies by threats of violence, the infliction of violence, and the brandishing of firearms and other dangerous weapons. Aguilar and the co-conspirators often resorted to home invasions or setting up victims to meet at a public place, and then robbed them of drugs, money, firearms and personal property, later selling the drugs they stole.
"The defendants engaged in a string of vicious and violent attacks, including multiple armed robberies" said Acting US Attorney Nicholas W. Chase, and "The US Attorney’s Office is committed to targeting these most violent offenders for federal prosecution and we commend the outstanding work of the Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and our local and state law enforcement partners for their steadfast commitment to identifying and investigating prolific violent criminal organizations, enforcing the law, and protecting our communities from acts of violence."
"ATF is committed to working with our local, state and federal partners to remove violent offenders from our communities, regardless of who the offenders target in their crimes," said ATF Special Agent in Charge William McCrary, of the St. Paul Field Division. "The acts these individuals committed were dangerous and could have easily caused injury or death to innocent bystanders. We simply cannot allow illegal guns, drugs, and armed violent gang members to plague our neighborhoods. We are grateful for the tireless efforts of the U.S. Attorney’s Office in their successful prosecutions which disrupted and dismantled this criminal enterprise."
In addition to numerous similar though unrelated federal prosecutions across the state as a part of this initiative, several of Aguilar’s co-conspirators have also been indicted in North Dakota and are awaiting trial and/or have been sentenced for their involvement in the violent robberies:
• Cory Carlson, age 24, Robbinsdale, MN: Sentenced on December 9, 2021, to 100 months in federal prison and 3 years supervised release for the charges of Interference with Commerce by Threats and Violence – Hobbs Act Robbery and Use of a Firearm During and in Relation to a Crime of Violence.
• Sarah Ann Carlson, age 21, Minneapolis, MN: Sentenced on July 19, 2021, to 80 months imprisonment and 3 years supervised release for the charges of Conspiracy to Interfere with Commerce by Threats and Violence – Hobbs Act Robbery; Interference with Commerce by Threats and Violence – Hobbs Act Robbery; Use of a Firearm During and in Relation to a Crime of Violence; and Aiding and Abetting.
• Jared Christopher Kaul, age 21, Fridley, MN: Sentenced on December 8, 2021, to 32 months in federal prison and 3 years supervised release for the charges of Conspiracy to Interfere with Commerce by Threats and Violence – Hobbs Act Robbery; Conspiracy to Possess with Intent to Distribute and Distribute Controlled Substances.
• Nicholas Dakota May, age 22, Fargo ND: Sentenced on November 23, 2021 to 28 months imprisonment and 3 years supervised release for the charges of Interference with Commerce by Threats and Violence – Hobbs Act Robbery and Conspiracy to Possess with Intent to Distribute and Distribute Controlled Substances.
• Shelby Lynn Dallman, age 23, Faribault, MN: Sentenced on August 23, 2021 to 24 months imprisonment and 3 years supervised release for the charge of Interference with Commerce by Threats and Violence – Hobbs Act Robbery.
• Abbot William Aho, a/k/a Boogie, age 26, Fergus Falls, MN: Indicted on the charges of Continuing Criminal Enterprise, Conspiracy to Interfere with Commerce by Threats and Violence – Hobbs Act Robbery; Interference with Commerce by Threats and Violence – Hobbs Act Robbery; Use of a Firearm During and in Relation to a Crime of Violence; Conspiracy to Possess with Intent to Distribute and Distribute Controlled Substances; and Aiding and Abetting. Mr. Aho is pending trial; Grand Jury Indictments are allegations and are not evidence of guilt. Mr. Aho is presumed innocent unless and until he is proven guilty beyond a reasonable doubt at trial.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Fergus Falls MN Police Department; and the Ottertail County Attorney’s Office, and the case is being prosecuted by the United States Attorney’s office, with Assistant United States Attorney Chris C. Myers assigned to the case.
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Absconded human smuggler receives more time for possessing firearmsRead the Press Release
McALLEN, Texas – A 30-year-old Rio Grande City resident has been ordered to federal prison for possessing multiple firearms and hundreds of rounds of ammunition, announced Acting U.S. Attorney Jennifer B. Lowery.
Victor Aleman Jr. had been sentenced for another crime but did not report to prison as ordered. He was then found and charged with being a felon in possession of a firearm. He pleaded guilty Sept. 28.
Today, District Judge Michaela Alvarez sentenced him to serve 40 months in federal prison for the firearms charge to be served consecutively to the previous 18 months on the human transporting conviction. The total 58-month prison term will be immediately followed by three years of supervised release. In handing down the sentence, the court noted the number of firearms involved in the case and how it is especially important that individuals abide by laws that relate to the safety of the public. Judge Alvarez also emphasized how Aleman was on pre-trial release for the human-smuggling case and that possessing the firearms throughout both that time and his post-sentencing release was in violation of the court’s orders and the law.
In April, Judge Alvarez had sentenced Aleman for transporting aliens within the United States. At sentencing, Judge Alvarez ordered Aleman to voluntarily surrender to the U.S. Marshals Service (USMS), but he failed to do so.
Authorities were able to locate him and took him into custody. At that time, they conducted a search of his residence and recreational vehicle and found two assault rifles, a handgun, more than 200 rounds of ammunition and four high-capacity AR-15 magazines.
Aleman admitted he owned the firearms and placed the handgun in the bedroom drawer because he loved the gun.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the U.S. Marshals Service. Assistant U.S. Attorney Lee A. Fry prosecuted the case.
14 December 2021
Wheeling Woman Charged with Stealing Mail while Employed by U.S. Postal ServiceRead the Press Release
PITTSBURGH - One resident of Wheeling, West Virginia, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal Postal laws, United States Attorney Cindy K. Chung announced today.
The one-count Indictment named Cheryl L. Edgell, age 37, as the sole defendant.
According to the Indictment, on April 14, 2021, Edgell engaged in theft of mail matter while employed by the United States Postal Service.
The law provides for a maximum total sentence of not more than 5 years in prison, a fine of not more than $250,000, a term of supervised release of not more than three years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brian W. Castello is prosecuting this case on behalf of the government.
The United States Postal Service Office of Inspector General conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Note: The docket for this prosecution indicates that the defendant successfully completed Pretrial Diversion, resulting in the dismissal of this charge on March 26, 2025.
Wausau Man Sentenced to 12 Years for Dealing MethamphetamineRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Jacob A. Willox, 28, Wausau, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 12 years in federal prison for distributing 50 grams or more of methamphetamine and for possessing methamphetamine with intent to distribute. This prison term will be followed by 5 years of supervised release.
In May 2020, a confidential informant purchased three ounces of methamphetamine from Willox in Wausau after Willox indicated he had 12 ounces of methamphetamine for sale. Then, in October 2020, officers arrested Willox at a residence where he attempted to flush additional methamphetamine down a sink. Officers were able to recover some of that methamphetamine. They also found nearly $30,000 in drug proceeds, a drug ledger, a firearm magazine, and brass knuckles at the residence.
Further investigation revealed Willox was responsible for selling multiple pounds of methamphetamine throughout the Wausau area, and regularly possessed firearms during his drug deals. Willox was prohibited from legally possessing firearms as the result of prior felony convictions.
At sentencing, Judge Conley noted that Willox’s crimes contributed to the bigger issue of methamphetamine addiction in the community, and that his possession of firearms while dealing posed an additional danger. Judge Conley reasoned that a sentence of 12 years was appropriate to protect the community and offer rehabilitation to Willox, who has a history of drug addiction.
The charges against Willox were the result of an investigation conducted by the Central Wisconsin Narcotics Task Force and the Drug Enforcement Administration. Assistant U.S. Attorneys Robert A. Anderson and Taylor L. Kraus prosecuted this case.
Virginia Tax Preparer Sentenced to Prison for False ReturnsRead the Press Release
A Virginia man was sentenced today to 38 months in prison for preparing false tax returns on behalf of clients, theft of government funds, and failing to file his own federal income tax returns.
According to court documents and evidence presented at trial, from at least 2013 through 2019, Karl Burden-El Bey (aka Carl L. Burden), 66, of Hampton, created false tax returns for clients of his Hampton tax preparation business. On his clients’ returns, Burden-El Bey claimed false dependent information, residential energy credits, gifts to charity, deductions, and child and dependent care expenses, all to inflate his clients’ refunds from the IRS. As trial evidence showed, Burden-El Bey often concealed his involvement by not signing such false returns as the tax preparer. He also stole $5,000 by directing without authorization a portion of one client’s refund into his personal bank account. Even though he earned income as a tax preparer that exceeded the minimum filing threshold, from 2013 through 2017 Burden-El Bey did not file his own individual income tax returns with the IRS.
In addition to the term of imprisonment, U.S. District Judge David J. Novak ordered Burden-El Bey to serve three years of supervised release and pay approximately $5,000 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jessica D. Aber for the Eastern District of Virginia made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Grace Albinson and Francesca Bartolomey of the Justice Department’s Tax Division and Assistant U.S. Attorneys Brian Samuels and Lisa McKeel of the U.S. Attorney’s Office for the Eastern District of Virginia prosecuted the case.
Union County Man Charged with Unlawful Firearm PossessionRead the Press Release
NEWARK, N.J. – A Union County man made his initial appearance on a charge of possession of a firearm by a convicted felon, Acting U.S. Attorney Rachael A. Honig announced today.
Miguel Aviles, aka “Ricardo Bermudez,” 47, of Elizabeth, New Jersey, is charged by complaint with possessing a firearm after having been convicted of a felony. Aviles made his initial appearance before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court on Dec. 13, 2021 and was detained without bond.
According to documents filed in this case and statements made in court:
On Aug. 27, 2021, two victims reported to Elizabeth police that Aviles had pointed a gun at them, threatened to shoot them, and then fired the weapon, all inside the victims’ residence. Two other occupants of the residence confirmed hearing the shot.
The charge of possession of a firearm by a convicted felon carries a maximum penalty of 10 years in prison and a maximum fine of $250,000.
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews, and the Elizabeth Police Department with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the Violent Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Two Men Sentenced to Prison for Receiving over $600,000 in Global Robocall Scam that Defrauded Elderly VictimsRead the Press Release
CAMDEN, N.J. – Two Indian nationals were sentenced to prison today for their roles in a conspiracy to commit wire fraud by accepting illegally obtained wire transfers from victims across the country totaling over $600,000, Acting U.S. Attorney Rachael A. Honig announced.
Zeeshan Khan, 22, and Maaz Ahmed Shamsi, 24, were each sentenced today to 27 months in prison by U.S. District Judge Joseph Rodriguez in Camden federal court. The defendants previously pleaded guilty before Judge Rodriguez to an information charging each with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
As part of an international fraud scheme, India-based call centers utilized automated robocalls to victims with the intent of defrauding U.S. residents, particularly the elderly. After establishing contact with victims through these automated calls, other members of the conspiracy would coerce or trick the victims into sending large sums of cash through physical shipments or wire transfers to other members of the conspiracy, including Shamsi and Khan. These conspirators used a variety of schemes to convince victims to send money, including impersonating government officials from agencies such as the Social Security Administration, or impersonating law enforcement officers from the FBI or Drug Enforcement Administration, and threatened victims with severe legal or financial consequences if they did not comply. Another method utilized by the callers involved convincing the victims they were speaking with someone from a tech support company and coercing the victims into granting the caller remote access to their personal computers, and through that, to the victims’ bank accounts. By manipulating the victims’ bank accounts, the caller would convince the victims that an overpayment was made to the victims and ultimately instruct them to send money by way of mail or wire transfer to other members of the conspiracy, including Shamsi and Khan.
As part of this scheme, Shamsi and Khan are charged with receiving fraudulent wire transfers from 19 victims across the country totaling approximately $618,000.
In addition to the prison terms, Judge Rodriguez sentenced Shamsi and Khan to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the Social Security Administration, Office of the Inspector General Office of Investigations, New York Field Division, under the direction of Special Agent in Charge John F. Grasso; and special agents of the Department of Homeland Security, Homeland Security Investigations New York Field Office – El Dorado Task Force, under the direction of Special Agent in Charge Peter C. Fitzhugh, with the investigation leading to today’s sentencing.
The government is represented by Special Assistant U.S. Attorney Meriah Russell of the U.S. Attorney's Office Criminal Division in Camden.
Two Kankakee Men Sentenced in Separate Child Enticement CasesRead the Press Release
URBANA, Ill. – Two Kankakee, Illinois, men were sentenced on December 13, 2021, in separate child enticement cases. They were Kyren Williams, 31, of the 1000 block of S. Osborn Ave., and Jazzie Simmons, 30, of the 200 block of Greenwood Ave.
Senior U.S. District Judge Michael Mihm sentenced Simmons to 87 months’ imprisonment, to be followed by eight years of supervised release. Simmons pleaded guilty in August 2021 to one count of attempted enticement of a minor.
Judge Mihm sentenced Williams to 120 months’ imprisonment, to be followed by eight years of supervised release. Williams pleaded guilty in July 2021 to one count of attempted enticement of a minor and one count of attempted sexual exploitation of a child.
Previously, in March 2020, a federal grand jury had charged each of the men by indictment following their February 2020 arrests pursuant to criminal complaints. Also in February, U.S. Magistrate Judge Eric I. Long ordered that the men be detained pending trial. They have remained in the custody of the U.S. Marshals Service since their arrests.
“This operation and other similar ones show our continued commitment, along with the FBI and our other law enforcement partners, to uncover and prosecute sexual predators,” said U.S. Attorney Gregory K. Harris. “Parents and other care givers need to continually monitor their children’s electronic communications to protect them from such offenders.”
“The online environment can be a dangerous place,” said David Nanz, Special Agent in Charge of the Federal Bureau of Investigation's Springfield Office. “That’s why the FBI will never give up the exhaustive work of rooting out those who prey on innocent children. These sentences demonstrate the importance of the collaborative work among our law enforcement partners to hold sexual predators accountable.”
Simmons, and Williams were arrested over Valentine’s Day weekend 2020 as part of a related FBI Springfield Division Operation conducted in Kankakee County. The operation was conducted with the coordination and assistance of the Bradley Police Department, the Kankakee County Sheriff’s Office, and the Kankakee Area Metropolitan Enforcement Group. Assistant U.S. Attorney Elly Peirson represented the government in the prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Tuskegee Man’s Supervised Release Revoked After Being Involved in Shootout Resulting in Murder ChargeRead the Press Release
Montgomery, Alabama – On December 10, 2021, Cornelius Donte Bowen, 32, from Tuskegee, Alabama, was sentenced to 24 months in prison after violating the terms of his supervised release, announced Acting United States Attorney Sandra J. Stewart.
According to court records and statements made in court, in October of 2020, Bowen began serving a three-year period of supervised release following a prison sentence for being a felon in possession of a firearm. Then, on June 12, 2021, Bowen was in the parking lot of a housing complex in Tuskegee and began arguing with others over a fender bender involving a car belonging to the mother of his children. During the argument, Bowen and at least one other person began shooting. One man died and Bowen himself was shot in the exchange. Bowen was arrested on June 13th and, the following day, the United States Probation Office petitioned the court to revoke Bowen’s supervised release. State charges of murder and attempted murder are still pending.
This case was investigated by the Tuskegee Police Department and the United States Probation Office for the Middle District of Alabama, with assistance from the Montgomery Police Department. Assistant United States Attorney Megan Kirkpatrick prosecuted the case.
Three Defendants Charged in $1.3 Million Covid Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Jonathan Mellone, Special Agent in Charge of the New York Regional Office of the U.S. Department of Labor Office of Inspector General (“DOL-OIG”), Ricky Patel, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and Damon Wood, Inspector in Charge, Philadelphia Division of the United States Postal Inspection Service (“USPIS”), announced today the unsealing of a complaint charging MARILUZ FERMIN, BELLANILDA FERMIN, and JUAN NOLASCO with conspiracy to commit wire fraud, theft of government benefits, and aggravated identity theft in connection with a COVID-19 unemployment benefit scheme that attempted to steal more than $1.3 million from the New York Department of Labor (“NY DOL”). MARILUZ FERMIN, BELLANILDA FERMIN, and NOLASCO were arrested this morning in Yonkers, New York, and will be presented this afternoon before United States Magistrate Judge Gabriel W. Gorenstein.
U.S. Attorney Damian Williams said: “As alleged, the defendants, working in concert, fraudulently filed claims for COVID-19 unemployment benefits under the names and social security numbers of at least 75 other people, making off with nearly $700,000 and attempting to steal more than $1.3 million. Now all three are in custody and facing serious federal charges.”
DOL-OIG Special Agent in Charge Jonathan Mellone said: “The Unemployment Insurance Program exists to provide needed assistance to qualified individuals who are unemployed due to no fault of their own. Fraud against the Unemployment Insurance Program distracts state workforce agencies from ensuring that benefits go to individuals who are eligible to receive them. The Office of Inspector General will continue to work closely with our law enforcement partners, to investigate those who allegedly exploit the Unemployment Insurance Program.”
HSI Acting Special Agent in Charge Ricky Patel said: “As alleged in the Complaint, these individuals attempted to manipulate a program designed to help Americans and U.S. businesses pay their bills, retain employees, and keep afloat on the heels of a global pandemic that took the lives of millions throughout the world. Each defendant allegedly used the personal information of more than 70 people in this attempt, and succeeded in stealing at least $687,000 in COVID unemployment benefits – stealing not just from the government, but from everyday Americans who need it most. HSI and our partners will use all of our resources to seek out and bring to justice those that attempt to steal benefits meant to help those struggling to get back on their feet from COVID-19.”
USPIS Inspector in Charge Damon Wood said: “These individuals allegedly took advantage of the pandemic and those truly in need of assistance when they developed a scheme to lie and steal from the government and the American public. Today, they have been brought to justice for their alleged crimes by Postal Inspectors and their law enforcement partners whose mission is to keep the public safe from criminal activity.”
As alleged in the Complaint[1]:
From May 2020 through October 2020, MARILUZ FERMIN, BELLANILDA FERMIN, and JUAN NOLASCO engaged in a scheme to obtain COVID-19 unemployment benefits by fraudulently filing and verifying applications using the names and social security numbers of at least 75 other people. The NY DOL was alerted to the suspicious activity based on metadata associated with the applications (the “Fraudulent Applications”), which indicated that the Fraudulent Applications were submitted from the same internet protocol (“IP”) address. During that same time, the IP Address was used to log into unemployment benefits claims – including the Fraudulent Applications – at least approximately 900 times. Further, MARILUZ FERMIN, BELLANILDA FERMIN, and JUAN NOLASCO exchanged text messages that included, among other things, personal identifying information – such as names, email accounts, and dates of birth – used in the Fraudulent Applications. In addition, between in or about June 2020 and in or about August 2020, NOLASCO visited several ATM machines in the Bronx, New York, for the purpose of withdrawing funds issued as a result of the Fraudulent Applications. The scheme filed claims for more than $1.3 million and succeeded in stealing at least $687,000 in COVID-19 unemployment benefits before the fraud was detected.
* * *
MARILUZ FERMIN, 46, BELLANILDA FERMIN, 41, and JUAN NOLASCO, 37, are each charged with (1) conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison, (2) theft of government benefits, which carries a maximum sentence of 10 years in prison, and (3) aggravated identity theft, which carries a mandatory two-year consecutive sentence. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by a judge.
Mr. Williams praised the outstanding investigative work of the DOL-OIG, the Internal Revenue Service - Criminal Investigation, HSI, USPIS, the Social Security Administration - Office of the Inspector General, and the NY DOL.
The case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Mitzi S. Steiner is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation as to the defendants charged in the Complaint.
Texas Man Arrested for COVID-19 Relief SchemeRead the Press Release
A Texas man was arrested today for allegedly fraudulently obtaining over $3.3 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to allegations in the indictment, Scott Jackson Davis, 46, of Harris County, fraudulently received over $3.3 million in PPP funds through three fraudulent PPP loan applications submitted to a financial institution. Davis submitted applications for three businesses which he claimed to represent: Skilled Trade Investments LP (STILP), Skilled Trade Staffing LLC (STS), and Skilled Trade Investments Group LLC (STIGP). Davis claimed that these businesses had numerous employees and significant payroll, when in fact, they had few if any employees and little to no payroll. Davis also claimed on the applications that he had not been convicted of a felony in the previous five years, when in fact he had pleaded guilty to felony wire fraud charges in the Southern District of Texas in April 2017. Davis spent a large portion of the PPP loan funds on private jet travel, real estate, and luxury vehicles.
Davis is charged with wire fraud, bank fraud, and money laundering. The defendant is scheduled for his initial court appearance today before U.S. Magistrate Judge Christina A. Bryan of the U.S. District Court for the Southern District of Texas. If convicted, he faces a maximum total penalty of 30 years in prison for each count of bank fraud, 20 years in prison for each count of wire fraud, and 10 years in prison for each count of money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Jennifer Lowery for the Southern District of Texas; Inspector General Hannibal “Mike” Ware of the SBA-Office of Inspector General (SBA-OIG); Acting Assistant Director Jay Greenberg of the FBI’s Criminal Investigative Division; and Special Agent-in-Charge Perrye K. Turner of the FBI’s Houston Field Office made the announcement.
The SBA-OIG and FBI’s Houston Field Office are investigating the case.
Trial Attorney Edward E. Emokpae of the Criminal Division’s Fraud Section and Assistant U.S. Attorney John Wakefield of the U.S. Attorney’s Office for the Southern District of Texas are prosecuting the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Sussex County Man Sentenced to 64 Months in Prison for Fraudulently Obtaining $5.6 Million Loan Meant to Help Small Businesses During COVID-19 PandemicRead the Press Release
NEWARK, N.J. – A Sussex County, New Jersey, man was sentenced today to 64 months in prison for fraudulently obtaining a federal Paycheck Protection Program (PPP) loan of over $5 million, Acting U.S. Attorney Rachael A. Honig announced.
Azhar Sarwar Rana, 31, of Newton, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of bank fraud and one count of money laundering. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Rana submitted a fraudulent PPP loan application to a lender on behalf of a corporate entity, Azhar Sarwar Rana LLC, that purportedly invested in real estate development. The application falsified payroll and tax information and included internally inconsistent listings of the number of company employees. New Jersey Department of Labor records showed that Azhar Sarwar Rana LLC paid no wages in 2019, and the minimal wages it purportedly paid in 2020 were mostly to individuals whose submitted Social Security numbers did not correspond to their submitted names.
Based on Rana’s misrepresentations, the lender approved Rana’s PPP loan application and provided Azhar Sarwar Rana LLC with approximately $5.6 million in federal COVID-19 emergency relief funds meant for distressed small businesses. Rana used the fraudulently obtained PPP loan proceeds to pay for numerous personal expenses, including to invest millions in the stock market, make a payment to a luxury car dealership, and send hundreds of thousands of dollars to accounts in Pakistan. Rana was arrested on Dec. 12, 2020, after he booked a same-day flight to Pakistan.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
In addition to the prison term, Judge Salas sentenced Rana to five years of supervised release, ordered restitution of $5.58 million. A forfeiture order of $5.68 million was entered in September 2021.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; special agents of the Social Security Administration Office of the Inspector General, New York Field Division, under the direction of Inspector General Gail S. Ennis; and special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Ricky J. Patel in New York, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Jennifer S. Kozar and Carolyn Silane of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Sussex County Man Sentenced to 62 Months in Prison for Unlawfully Possessing Weapons, MarijuanaRead the Press Release
NEWARK, N.J. – A Sussex County, New Jersey, man was sentenced today to 62 months in prison for possessing marijuana and an arsenal of weapons and ammunition, Acting U.S. Attorney Rachael A. Honig announced.
Joseph Rubino, 59, of Lafayette Township, New Jersey, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of possession of marijuana with intent to distribute and one count of possession of firearms and ammunition by a convicted felon. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On July 24, 2019, following a motor vehicle accident, officers with the New Jersey State Police observed numerous weapons and ammunition inside Rubino’s crashed vehicle. After executing court-authorized search warrants on Rubino’s vehicle and residence, law enforcement recovered an arsenal of weapons and ammunition from Rubino’s car and house, including:
- An Intratec Arms Model TEC-DC9 semi-automatic assault handgun;
- A Cobray Arms Mac-11 9mm semi-automatic assault pistol with a high capacity magazine;
- A Keltec CMR30 .22 caliber semi-automatic rifle loaded with sixteen (16) .22 caliber hollow-point cartridges;
- A High Standard Derringer .22 caliber double-barrel handgun;
- A Polymer 80 9mm semi-automatic handgun;
- An Ithaca M-66 20-gauge single shotgun;
- A Remington Model 700 .223 caliber bold action rifle with scope;
- A Thompson Center .50 caliber muzzle-loading rifle with scope;
- A Remington Model 870 Wingmaster 12-gauge pump shotgun;
- A New England Firearms 20-gauge single shot shotgun;
- A Remington Model 760 .300 Savage pump rifle;
- A Glenfield Mod 60 .22 LR caliber semi-automatic rifle;
- Two sawed-off double-barrel shotgun barrels
- Several high-capacity magazines;
- Numerous silencers;
- An assault rifle scope;
- A grenade launcher;
- A ballistics vest; and
- Numerous additional ammunitions of various calibers
In addition to the firearms and ammunition, law enforcement recovered approximately 2.5 kilograms of marijuana from Rubino’s house.
In addition to the prison term, Judge Martini sentenced Rubino to three years of supervised release.
Acting U.S. Attorney Honig credited the New Jersey State Police, under the direction of Col. Patrick J. Callahan, and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark, with the investigation leading to today’s guilty plea. She also thanked the Warren County Prosecutor’s Office, under the direction of Prosecutor James L. Pfeiffer, and the Sussex County Prosecutor’s Office, under the direction of Prosecutor Francis A. Koch for their assistance.
The government is represented by Assistant U.S. Attorney Naazneen Khan of the Organized Crime and Gangs Unit in Newark.
St. Paul Felon Sentenced to 60 Months in Prison for Illegally Possessing a FirearmRead the Press Release
MINNEAPOLIS – A St. Paul man was sentenced to 60 months in prison, followed by three years of supervised release for illegally possessing a firearm as a felon, announced Acting U.S. Attorney Charles J. Kovats.
According to court documents, on February 5, 2019, officers with the St. Paul Police Department observed Michael Antonio Miller, 38, and his girlfriend leave a residence and drive away together in a vehicle. At the time, there was an active Domestic Abuse No Contact Order in place between Miller and his girlfriend. The officers initiated a traffic stop on the vehicle. As officers approached the driver’s side of the vehicle where the girlfriend was seated, she opened the center console and moved some papers out of the way to reveal a loaded Smith and Wesson, .40 caliber pistol. In an interview following his arrest, Miller admitted that the firearm was his. Because of his prior felony convictions in Ransey and Hennepin Counties, Miller is prohibited from possessing a firearm or ammunition at any time.
Miller was sentenced today by Senior U.S. District Judge Michael J. Davis, Acting U.S. Attorney Charles J. Kovats made the announcement after he was sentenced.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is the result of investigations conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the St. Paul Police Department.
Assistant U.S. Attorneys Samantha H. Bates and Ruth S. Shnider prosecuted the case.
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Springfield Man Indicted for Child Sexual ExploitationRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man who contacted hundreds of children through a teen dating website was indicted by a federal grand jury today on child sexual exploitation charges.
Kody Ryan Kelso, 30, was charged in a five-count superseding indictment returned by a federal grand jury in Springfield, Mo. Today’s superseding indictment replaces the original indictment that was filed on June 23, 2021, and includes additional charges. Kelso has been detained without bond since his arrest on June 16, 2021.
Today’s indictment charges Kelso with the sexual exploitation of a child to produce child pornography and with using the internet and cell phone to induce a child under the age of 14 to engage in illicit sexual activity, both of which are related to an undercover law enforcement operation in the United Kingdom in which officers posed as a child.
The indictment also charges Kelso with one count of the sexual exploitation of a child victim to produce child pornography, one count of using the internet and cell phone to induce a second child victim under the age of 14 to engage in illicit sexual activity, and one count of receiving and distributing child pornography.
According to court documents, Kelso used an online service named My LOL, a teen dating site with chat features, to contact a person he believed to be a 13-year-old girl, but in reality was an undercover law enforcement officer in the United Kingdom. Kelso allegedly asked her to have sexual intercourse with him and to send him nude images.
Kelso allegedly contacted more than 560 additional individual MyLOL users between Jan. 7 and Feb. 21, 2021. Each user was between the age of 13 and 17. In numerous instances, according to court documents, Kelso attempted to discuss sexual topics with these users and request sexual images.
In addition to the information from the United Kingdom, investigators received two Cybertips from the National Center for Missing and Exploited Children regarding Kelso’s online activity and posting a child pornography video online.
On June 16, 2021, law enforcement officers executed a search warrant at Kelso’s apartment and he was arrested. Officers seized multiple electronic devices.
This case is being prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the Springfield, Mo., Police Department, the FBI, and Homeland Security Investigations.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
South Carolina Man Admits Interstate Gun Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – A South Carolina man today admitted conspiring to illegally sell firearms, including five pistols and one rifle, in and around Essex County, New Jersey, Acting U.S. Attorney Rachael A. Honig announced.
Carter Wilkerson, 21, of Orangeburg, South Carolina, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiracy to engage in the business of unlicensed firearms dealing.
According to documents filed in this case and statements made in court:
From April 2021 through May 18, 2021, Wilkerson was a member of a gun trafficking conspiracy. In furtherance of the conspiracy, he trafficked six firearms, with the intent to sell these weapons to at least one New Jersey resident.
The count of conspiracy to engage in the business of unlicensed firearms dealing carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for April 26, 2022.
This case part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Acting U.S. Attorney Honig credited special agents and task force officers of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark, and special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews, Newark Field Division, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Francesca Liquori, Chief of the OCDETF/Narcotics Unit in Newark and Assistant U.S. Attorney Samantha Fasanello, of the Organized Crime and Gangs Unit in Newark.
Six Individuals, Including a Village of Brewster Police Officer, Charged in Sex Trafficking and Bribery SchemeRead the Press Release
A 14-count indictment was unsealed today in federal court in Brooklyn charging Luz Elvira Cardona, Roberto Cesar Cid Dominguez, Cristian Noe Godinez, Blanca Hernandez Morales, Jose Facundo Zarate Morales and Wayne Peiffer, a Village of Brewster police officer, with conspiracy to transport minors and the transportation of minors, sex trafficking, conspiracy to commit Hobbs Act extortion, promotion of prostitution, use of interstate facilities to commit bribery and related conspiracy counts.
Cardona, Cid Dominguez, Hernandez Morales and Zarate Morales were arrested earlier today in Queens, New York. Peiffer was arrested earlier today in Highland, New York. Godinez is currently a fugitive. The defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge James R. Cho.
Breon Peace, United States Attorney for the Eastern District of New York, Ricky J. Patel, Acting Special Agent-in-Charge, Department of Homeland Security, Homeland Security Investigations, New York (HSI), Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the arrests and charges.
“As alleged, the defendants conspired to lure young women and minor girls to travel to the United States based on false promises of a better life and forced them into prostitution once they arrived. The defendants allegedly received assistance in carrying out this conspiracy from a corrupt police officer who traded the honor of his badge and sworn oath for free sexual services,” stated United States Attorney Peace. “This Office is committed to bringing sex traffickers to justice and dismantling organizations that victimize women.” Mr. Peace thanked the Putnam County Sheriff’s Department, Putnam County District Attorney’s Office and Westchester Putnam County Real Time Crime Center for their invaluable assistance with the case.
“As alleged, the individuals named in the indictment were part of an elaborate network of conspirators that used deception and coercion to sell dreams of a better life in the United States to young and impressionable women, who arrived only to be forced into a miserable life of torment, sexual abuse and prostitution at the hands of their captors,” stated HSI Acting Special Agent-in-Charge Patel. “The criminal organization also allegedly retained the services of a corrupt cop, who betrayed the badge and the people that he swore to protect by being complicit in these deplorable acts and accepting payments in sexual favors. This case involved true collaboration between federal, state and local law enforcement partners to bring the hierarchy of this trafficking organization to justice.”
“Our arrest of a police officer isn't the most egregious facet of this investigation. We allege Mr. Peiffer had sex with the girls being trafficked as payment for his protection of the traffickers. The oath law enforcement officers take affirms they will serve and protect law abiding citizens and vulnerable members of the community, not aid and abet criminals who are abusing young girls and forcing them to have sex against their will. The FBI New York Child Exploitation and Human Trafficking Task Force and our law enforcement partners have done outstanding work searching out the leaders of these criminal organizations and holding them accountable. However, that's only half of the story of their incredible work. Now they're helping the victims through the trauma they experienced, and getting them the help they need to heal,” stated FBI Assistant Director-in-Charge Driscoll.
“The allegations in today’s indictment – that these two illicit organizations were aided for years by a sworn officer who betrayed his solemn oath to protect the public – represent among the most heinous crimes we confront. The NYPD and our law enforcement partners share an unwavering commitment to protect survivors of human trafficking and to ensure that anyone seeking to profit through the abuse and exploitation of others is brought to justice. I commend our NYPD officers, government partners, and the United States Attorney’s Office in the Eastern District of New York for their tireless work in dismantling these entities and for successfully pursuing this important case,” stated NYPD Commissioner Shea.
As set forth in court filings, the charges relate to the operation of two sex trafficking and prostitution organizations – the Cid-Hernandez Sex Trafficking Organization and the Godinez Prostitution Business – and the years-long bribery of Peiffer, who allegedly accepted free sexual services by the two organizations in exchange for protecting the organizations from law enforcement detection and arrest.
Since approximately May 2002, members of the Queens-based Cid-Hernandez Sex Trafficking Organization allegedly engaged in the sex trafficking of young women and minor girls and the promotion of prostitution. Cardona, Cid Dominguez, Hernandez Morales and Zarate Morales used force, threats of force, fraud and coercion to cause young women and minor girls from Mexico to engage in prostitution in the United States. Members of the organization pressured the victims to travel to the United States with false promises of employment and a better life. Once smuggled into the United States, the victims were forced to engage in prostitution. The young women and minor girls were transported to prostitution clients throughout the State of New York.
The Godinez Prostitution Business also regularly caused women to be transported from a location in Queens to various locations, including Brewster, New York, for the purpose of engaging in prostitution. Noe Godinez worked as a driver for the Godinez Prostitution Business and transported women along preassigned routes to prostitution clients.
Both the Cid-Hernandez Sex Trafficking Organization and the Godinez Prostitution Business operated in Brewster, where they received protection from Peiffer. Since at least 2006, Peiffer has been a police officer with the Village of Brewster Police Department (“BPD”). For more than eight years, Peiffer allegedly directed members of the Cid-Hernandez Sex Trafficking Organization and the Godinez Prostitution Business to deliver women to him, including at the BPD police station, so that he could engage in sexual activity with the women at no cost to Peiffer. In exchange, Peiffer provided the Cid-Hernandez Sex Trafficking Organization and the Godinez Prostitution Business protection from arrest, including by advanced warning of law enforcement operations and intervening to prevent arrest.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the office’s Civil Rights Section. Assistant United States Attorneys Margaret Lee, Nicholas Moscow and Rachel A. Bennek are in charge of the prosecution.
The Defendants:
LUZ ELVIRA CARDONA
Age: 33
Queens, New YorkROBERTO CESAR CID DOMINGUEZ
Age: 54
Queens, New YorkCRISTIAN NOE GODINEZ
Age: 42
Queens, New YorkBLANCA HERNANDEZ MORALES
Age: 51
Queens, New YorkJOSE FACUNDO ZARATE MORALS
Age: 32
Queens, New YorkWAYNE PEIFFER
Age: 48
Highland, New YorkE.D.N.Y. Docket No. 21-CR-622 (LDH)
San Diego Man Indicted for Multimillion-Dollar Investment SchemeRead the Press Release
Assistant U. S. Attorney Andrew J. Galvin (619) 546-9721
NEWS RELEASE SUMMARY – December 14, 2021
SAN DIEGO – A indictment unsealed today charges San Diego resident Denny Bhakta with securities fraud and money laundering for running an investment fraud scheme that took in at least $28 million from investors since 2016.
According to court documents and statements made in court, Bhakta solicited investments in his companies, Fusion Hotel Management, LLC and Fusion Hospitality Corporation (collectively “Fusion”). Bhakta falsely told investors that Fusion routinely acquired discounted blocks of hotel rooms from Hilton, which Fusion then sold to United Airlines at a higher price for a significant profit. Instead of buying blocks of hotel rooms with investors’ funds, however, Bhakta used the money for personal expenses and to make payments to other investors.
The indictment alleges that Bhakta provided investors with fabricated documents, including bank records that purported to show payments from Fusion to Hilton and fake agreements between Fusion and United Airlines. These documents gave the false appearance that Fusion bought large blocks of hotel rooms from Hilton and sold them to United Airlines. According to statements made in court, Bhakta laundered the proceeds of his fraud scheme by using investor funds from Fusion’s bank accounts at various casinos, including the ARIA Resort & Casino and The Cosmopolitan of Las Vegas.
Bhakta was arrested at his San Diego residence on Tuesday morning.
“We will do everything we can to protect investors and to seek justice when they fall victim to scammers,” said Acting U.S. Attorney Randy Grossman. “Investors, be suspicious of high-pressure sales tactics, promises of returns that are too good to be true, and always verify the license and legitimacy of the person making the pitch.” Grossman thanked the prosecution team and the FBI for their excellent work on this case.
“The defendant allegedly spent the last five years making millions of dollars based on false promises supported by fraudulent financial statements and fake business agreements,” said FBI Special Agent in Charge Suzanne Turner. “This case should serve as a warning – the FBI will continue to partner with the U. S. Securities and Exchange Commission to root out all forms of investment fraud.”
The next hearing is scheduled for January 21 at 1:30 p.m.
DEFENDANT Case Number 21-CR-3352-JLS
Denny Bhakta Age: 39 San Diego, CA
SUMMARY OF CHARGES
Securities Fraud – Title 15, U.S.C., Sections 78j(b), 78ff, and Title 17, C.F.R., Section 240.10b-5
Money Laundering – Title 18, U.S.C., Section 1957
Maximum penalty: Twenty years in prison
AGENCY
Federal Bureau of Investigation
Securities and Exchange Commission
*The charges and allegations contained in an indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
San Antonio Man Sentenced to 14 Years in Prison for Attempted Coercion of a MinorRead the Press Release
SAN ANTONIO – Today a San Antonio man was sentenced to 168 months in prison for attempting to coerce and entice a minor.
According to court documents, Rick Benavides, 48, responded to a post purportedly from a 14-year-old who was visiting a relative on Joint Base San Antonio – Lackland (LAFB). Benavides requested multiple times that the child send him naked photos. He also stated numerous times he wanted to engage in sexual acts with the minor. Benavides made plans to pick the child up at the park on LAFB and take the minor to his house to engage in sexual activities.
Unbeknownst to Benavides, he was chatting with U.S. Air Force—Office of Special Investigations (AFOSI) undercover agents. When Benavides entered LAFB and attempted to meet the child, he was arrested by AFOSI agents.
“Mobile applications are great tools which have enhanced many areas of our lives in recent years; however, we must protect our children from predators hiding behind the cloak of anonymity they provide,” said U.S. Attorney Ashley C. Hoff.
On July 8, 2021, Benavides was found guilty by a federal jury of one count of attempted coercion and enticement of a minor.
The AFOSI investigated the case.
Assistant U.S. Attorney Bettina Richardson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Salem County Man Admits Possession of Child PornographyRead the Press Release
CAMDEN, N.J. – A Salem County, New Jersey, man today admitted possessing images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.
Rickie Wayne Patton, 40, of Pennsville, New Jersey, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with one count of possession of child pornography.
According to documents filed in this case and statements made in court:
On Feb. 10, 2020, a Task Force Officer with the FBI’s Child Exploitation and Human Trafficking Task Force identified an IP Address that was sharing suspected child sexual abuse materials over a peer-to-peer file sharing network. From Feb. 10, 2020, to March 15, 2020, the officer downloaded several video files containing images of child sexual abuse from a computer at the same IP Address. The IP Address was then traced to Patton’s residence, where the FBI executed a search warrant on May 19, 2020. The FBI found laptop computers and digital storage media belonging to Patton. Forensic examination later confirmed those devices contained images of child sexual abuse.
The count of possession of child pornography carries a maximum sentence of 20 years in prison and a fine of up to $250,000. Sentencing is scheduled for April 18, 2022.
Acting U.S. Attorney Honig credited special agents and task force officers of the FBI, Philadelphia Division, Child Exploitation and Human Trafficking Task Force, under the direction of Special Agent in Charge Jacqueline Maguire, with the investigation leading to today’s guilty plea. She also thanked the Pennsville Police Department, under the direction of Chief Vincent Green, and the Salem County Prosecutor’s Office, under the direction of Acting Prosecutor Kristin J. Telsey, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Andrew B. Johns of the Criminal Division in Camden.
Rockford Man Sentenced to Four Years in Federal Prison for Illegally Possessing HandgunRead the Press Release
ROCKFORD — A Rockford man has been sentenced to four years in federal prison for illegally possessing a loaded handgun with an obliterated serial number.
DONTREL U. BROWN, 24, illegally possessed the gun on May 13, 2020, in Rockford. Brown at the time was on probation for previous felony convictions and was prohibited by federal law from possessing the firearm.
U.S. District Judge Iain D. Johnston imposed the sentence Monday after a hearing in federal court in Rockford.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, & Explosives. The Rockford Police Department provided valuable assistance in the investigation. The government was represented by Assistant U.S. Attorney Jessica S. Maveus.
Rochester Man Pleads Guilty to Distribution of FentanylRead the Press Release
CONCORD - Michael Rand, 36, of Rochester, pleaded guilty on Monday in federal court to distribution of fentanyl, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in October of 2019 the Federal Bureau of Investigation (FBI) received a tip that Rand was selling heroin, fentanyl, and methamphetamine in the Dover and Rochester areas. Working with a cooperating individual, the FBI arranged for a controlled purchase of fentanyl at Rand’s apartment in November of 2019.
Rand is scheduled to be sentenced on March 22, 2022.
“Fentanyl trafficking endangers lives and damages communities,” said Acting U.S. Attorney Farley. “We work closely with the FBI and all our law enforcement partners to identify and prosecute the drug dealers who are peddling fentanyl and other dangerous drugs in the Granite State.”
“Today, Michael Rand admitted to selling the deadly drug fentanyl which is associated with the vast majority of drug overdose deaths in New Hampshire,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The FBI will continue to work closely with our law enforcement partners to stop the distribution of fentanyl and to bring to justice those like Rand who are pushing highly addictive drugs on our streets and into the hands of addicts.”
This matter was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Kasey Weiland.
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Rochester Man Going to Prison for Receiving Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Joshua Sattora, 37, of Rochester, NY, who was convicted of receipt of child pornography, was sentenced to serve 108 months in prison by Chief U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Meghan K. McGuire, who handled the case, stated that between December 2017, and August 2018, Sattora and co-defendant Rebecca Woodin engaged in a series of text messages during which Woodin sent approximately 14 sexually explicit images of a minor to Sattora. During this same time, Sattora also sent images of child pornography to Woodin. In total, Sattora possessed at least 923 images and 362 videos of child pornography on two cellular telephones and three computers. Rebecca Woodin was previously convicted and sentenced to serve 180 months in prison.
The sentencing is a result of an investigation by the Department of Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino; the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent-in-Charge Stephen Belongia; the New York State Police, under the direction of Major Barry Chase; and the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
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Removed Mexican National Charged with Illegally Re-entering the U.S.Read the Press Release
PITTSBURGH - One Mexican national has been indicted by a federal grand jury in Pittsburgh on a charge of Reentering the United States, United States Attorney Cindy K. Chung announced today.
The one-count Indictment named Isaias Garcia-Hernandez, age 39, as the sole defendant.
According to the Indictment, on September 19, 2021, Mr. Garcia-Hernandez was found in the Allegheny County Jail after he was arrested by the Pittsburgh Bureau of Police. Mr. Garcia-Hernandez has been removed from this country on at least one previous occasion.
The law provides for a maximum total sentence of not more than three years in prison, a fine, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brian W. Castello is prosecuting this case on behalf of the government.
Immigration and Customs Enforcement conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Reading Man Pleads Guilty to Wire Fraud and Identity Theft ChargesRead the Press Release
BOSTON – A Reading man pleaded guilty in federal court in Boston today in connection with a scheme to defraud an elderly relative of her interest in a three-family home and a separate scheme to defraud the Massachusetts Department of Unemployment Assistance.
Giorgio “George” Fiorenza, 51, pleaded guilty to two counts of wire fraud and one count of aggravated identity theft. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for April 7, 2022. Fiorenza was charged in August 2020.
Between August and September 2017, Fiorenza defrauded an elderly relative into unknowingly signing a deed conveying her interest in a property she owned with Fiorenza’s spouse and forged the victim’s name on another document necessary to convey title to the property, both of which were recorded in the Middlesex Registry of Deeds. Fiorenza then took out a $750,000 loan in his spouse’s name and secured by the property, and subsequently caused the lender to foreclose on the property.
Between April and June 2020, Fiorenza filed claims for Pandemic Unemployment Assistance (PUA) in the names of third parties and fraudulently diverted some of the funds for his own use. PUA was a temporary federal unemployment insurance program created when Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) in March 2020 in response to the global coronavirus pandemic. The PUA program, which in Massachusetts was administered by the Department of Unemployment Assistance, provided unemployment insurance benefits for individuals who were not eligible for other types of unemployment benefits. Among other things, Fiorenza filed a PUA claim using a victim’s identity, directed the proceeds of the claim to an account in his spouse’s name, and did not disclose to the victim or her husband that she had qualified for assistance.
The charge of wire fraud provides a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. The charge of aggravated identity theft provides a mandatory sentence of two years in prison, one year of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell, Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division and Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations made the announcement. Assistant U.S. Attorneys Kristen A. Kearney and David M. Holcomb of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Rantoul Man Sentenced to 10 Years in Prison for Child Pornography OffensesRead the Press Release
URBANA, Ill. – A Champaign County man, Alan L. Dodd, 38, of the 100 block of Shady Lawn Drive in Rantoul, Illinois, was sentenced on December 13, 2021, to 10 years’ imprisonment for distribution and possession of child pornography.
At Dodd’s sentencing hearing, Senior U.S. District Court Judge Michael M. Mihm found that Dodd traded child pornography images depicting prepubescent children on multiple social media applications, including Instagram, Twitter, Snapchat, and Discord.
On August 12, 2021, Dodd entered a plea of guilty to the indictment, which charged him with one count of distribution of child pornography on October 25, 2020, and one count of possession of child pornography, on February 11, 2021. Dodd has remained in the custody of the U.S. Marshals since his arrest on February 12, 2021.
Following Dodd’s release from prison, he will be on federal supervised release for 10 years and will be required to register as a sex offender.
“This office will continue to vigorously protect the safety of children from those who would seek to exploit them,” said U.S. Attorney Gregory K. Harris.
The charges were investigated by Department of Homeland Security, Immigration and Customs Enforcement; the Champaign County Sheriff’s Office; and the Internet Crimes Against Children Task Force led by the Illinois Attorney General. Assistant U.S. Attorney Elly Peirson represented the government in the prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Puerto Rican Man Admits Conspiring to Distribute over 250 Kilograms of CocaineRead the Press Release
NEWARK, N.J. – A Puerto Rican man today admitted conspiring to distribute over 250 kilograms of cocaine, Acting U.S. Attorney Rachael A. Honig announced.
Mariano Enrique Arroyo Perez, aka “Humilde,” 29, pleaded guilty before U.S. District Judge Esther Salas to a superseding indictment charging him with conspiracy to distribute five kilograms or more of cocaine.
According to documents filed in this case and statements made in court:
From 2017 through July 2019, Arroyo Perez and his conspirators conspired to distribute approximately 250 kilograms of cocaine. They conspired to transport cocaine on private planes, including approximately 150 kilograms of cocaine from Puerto Rico to New Jersey on a private plane on Nov. 18, 2018, which law enforcement intercepted. After several men boarded a private plane in Puerto Rico destined for a Teterboro Airport in New Jersey, the pilots became suspicious, as the men were not on the manifest for the flight and their luggage was particularly heavy. Their luggage contained the 150 kilograms of cocaine. Law enforcement arrested the four passengers.
After this seizure, law enforcement learned that Arroyo Perez had coordinated this shipment. Law enforcement also reviewed judicially authorized wire intercepts that showed that Arroyo Perez and a conspirator discussed and coordinated the Nov. 18, 2018, events and shared the names of the four passengers.
The count of conspiracy to distribute five kilograms or more of cocaine carries a statutory mandatory minimum sentence of 10 years in prison and a maximum penalty of life imprisonment and a fine of up to $10 million. Sentencing is scheduled for April 21, 2022.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Acting U.S. Attorney Honig credited special agents and task force officers with the Drug Enforcement Administration in New Jersey, under the direction of Special Agent in Charge Susan A. Gibson in Newark, as well as special agents and task force officers with the Drug Enforcement Administration in Colombia, the Dominican Republic, and Puerto Rico. She also thanked the U.S. Office of International Affairs and the U.S. Marshals Service for their assistance with the case.
The government is represented by Assistant U.S. Attorney Lauren Repole of the Economic Crimes Unit in Newark and Assistant U.S. Attorney Francesca Liquori, Chief of the OCDETF Unit in Newark.
President of three Puyallup tribal smoke shops sentenced to prison for money-laundering scheme to evade state tobacco taxesRead the Press Release
Seattle – A 43-year-old President of three Puyallup tribal smoke shops was sentenced late Friday, December 10, 2021, in U.S. District Court in Seattle to 14 months in prison for a sophisticated money-laundering scheme designed to evade state taxes on smokeless tobacco products, announced U.S. Attorney Nick Brown. Anthony Edwin Paul was ordered to pay $1,764,818 in restitution to the Washington State Department of Revenue, plus a $5,000 fine. U.S. District Judge James L. Robart told Paul, “Money laundering is an integral part of criminal activity…. You turned the key that starts this conspiracy.”
“This sophisticated scheme to avoid state tobacco taxes harms all our residents by cutting into state funds used to pay for healthcare and treatment for tobacco related illnesses,” said U.S. Attorney Nick Brown. “The scheme allowed non-tribal tobacco vendors to have a sales advantage over other retailers—encouraging tobacco use, and boosting their profit while they avoided paying state taxes.”
“Mr. Paul conspired to defraud the state for his own greed, cheating Washington State residents out of millions of dollars that otherwise would have been invested into services for the community,” said Bret Kressin, Special Agent in Charge of IRS Criminal Investigation (IRS-CI), Seattle Field Office. “Financial fraud and tax evasion are not victimless crimes, and IRS-CI will continue to investigate and bring to justice those who choose to commit these offenses.”
According to records filed in the case, between 2009 and 2017, Paul was President of three smoke shops on the Puyallup reservation that sold significant quantities of tobacco products to TK Mac, a non-tribal tobacco distributor. Most of the sales were in cash, and TK Mac failed to report the purchases to the state, thus avoiding millions of dollars in excise taxes. When TK Mac then resold the products for cash, the company had a problem, since large deposits of cash would have triggered state scrutiny of its tobacco business. So beginning in 2013 and continuing until 2017, Paul and his coconspirators engaged in a money-laundering scheme: The tribal smoke shops wrote checks to TK Mac as if the tribal smoke shops had purchased tobacco products from the non-tribal store. In fact, TK Mac simply provided the tribal smoke shops with large amounts of cash equal to the checks. No tobacco products changed hands, but TK Mac received an excise tax credit. As a result of this cash-for-check scheme, Washington State suffered losses of roughly $3.86 million. The overall scheme caused the state to incur several more million dollars’ worth of losses.
Paul had an interest in the success of TK Mac, as he had made loans to the owners of the non-tribal retail business, TK Mac, of nearly $2 million. The owners of TK Mac, Hyung Il Kwon and Tae Young Kim, have also entered guilty pleas for their roles in the scheme. One of the employees in the tribal smoke shops, Theodore Kai Silva, has also pleaded guilty. Judge Robart will sentence Kwon, Kim, and Silva in January 2022.
Following the indictment of Paul’s coconspirators, the government seized more than $5 million from Kwon and Kim. The amount of restitution left owing from the cash-for-check scheme is $1,764,818. Judge Robart ordered Paul to pay that amount as restitution (joint and several with Kim and Kwon), along with the $5,000 fine.
The case was investigated by IRS-CI, with assistance from Homeland Security Investigations (HSI).
The case was prosecuted by Assistant United States Attorneys James Oesterle and Jonas Lerman.
Portland Man Sentenced in Connection with Drive-By ShootingRead the Press Release
PORTLAND, Maine—A Portland man was sentenced today in U.S. District Court in Portland for being a felon in possession of a firearm, U.S. Attorney Darcie N. McElwee announced.
Chief U.S. District Judge Jon D. Levy sentenced Abdikareem Hassan, 33, to four years in prison followed by three years of supervised release. He pleaded guilty on July 30, 2021.
According to court records, on July 5, 2020, Hassan fired approximately five shots at the Portland Police Department Headquarters from a black Hyundai Tucson. Hassan was arrested during the early morning hours of July 6, 2020. Law enforcement recovered a gun with Hassan’s DNA on it near the scene of the shooting and bullet casings on the windshield of the Hyundai. Hassan is prohibited from possessing firearms due to a prior felony conviction.
In pronouncing sentence, Chief Judge Levy stated that Hassan’s conduct posed a “grave danger to the community” and reflected “complete disregard for the welfare of other people.”
“Violence directed at anyone, including law enforcement officers, cannot be tolerated,” said U.S. Attorney McElwee. “It is only because of sheer luck that no one was killed or gravely injured as a result of Hassan’s actions. We at the U.S. Attorney’s Office, in partnership with our state, local and tribal partners, are committed to taking all possible steps to address violent crime in Maine.”
The FBI and the Portland Police Department investigated the case with assistance from the U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Plum Felon Charged with Illegally Possessing Multiple Drugs, a Firearm and AmmunitionRead the Press Release
PITTSBURGH - One resident of Plum, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, United States Attorney Cindy K. Chung announced today.
The two-count Indictment named Solomon Givens, 52, as the sole defendant.
According to the Indictment, on or about October 12, 2021, Givens possessed with the intent to distribute para-fluorofentanyl, fentanyl, methamphetamine hydrochloride, cocaine, and crack cocaine. The Indictment further alleges that Givens possessed a firearm and ammunition. His prior felony convictions make it unlawful for him to possess a firearm and ammunition.
The law provides for a maximum total sentence of not less than ten years to a maximum of life in prison, a fine of $20,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendants.
Assistant United States Attorney Michael R. Ball is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Allegheny County District Attorney’s Narcotics Enforcement Team conducted the investigation leading to the Indictment in this case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice's violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.