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9 December 2021
Convicted Felon with Violent Criminal History Sentenced in PSN InvestigationRead the Press Release
MACON, Ga. – A Macon resident with prior felonies taken into custody on state warrants while in illegal possession of a gun was sentenced to prison this week for violating federal gun law.
Craig R. Harpe, 40, of Macon, was sentenced to serve 37 months in prison to be followed by three years of supervised release by U.S. District Judge Tilman E. (Tripp) Self, III on Dec. 7, after he previously pleaded guilty to possession of a firearm by a convicted felon. There is no parole in the federal system.
“The U.S. Attorney’s Office is working closely with our law enforcement partners to hold individuals with a history of violent criminal activity accountable for illegal gun possession,” said U.S. Attorney Peter D. Leary. “Convicted felons arrested in illegal possession of firearms will face the possibility of federal prosecution for their crime”
“The conviction of Craig Harpe illustrates what can happen when a convicted felon travels on city streets with a gun in their possession. A stop by an alert deputy for a minor traffic violation has resulted in a potentially dangerous individual with a gun being removed from our community,” said Bibb County Sheriff David J. Davis.
According to court documents, Harpe was stopped for a traffic violation in Macon on Oct. 5, 2020. Harpe was wearing an empty gun holster and officers discovered he was wanted on state warrants and was a convicted felon. Officers found a loaded .380 semiautomatic handgun in Harpe’s car. Harpe was previously convicted on two felony armed robbery charges in the Superior Court of Dekalb County, Georgia and served ten years for his crimes. It is illegal for a convicted felon to possess a firearm.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Bibb County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Assistant U.S. Attorney Joy Odom prosecuted the case for the Government.
Columbus Man Sentenced to over 3 Years in Prison for Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Columbus, man was sentenced to 41 months in prison for possession of a firearm by a convicted felon, announced U.S. Attorney Darren J. LaMarca, and Special Agent in Charge Kurt H. Thielhorn of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
According to court documents, Greggory LaShawn Gavin, 44, was found in possession of a firearm by United States Marshals on November 9, 2020, while Gavin was being served with an arrest warrant for an unrelated criminal charge. Gavin had a .38 caliber pistol in his pocket. Gavin has four prior felony convictions. As a convicted felon, it is contrary to federal law for Gavin to possess any firearm.
The United States Marshals Service and the ATF investigated the case.
Assistant U.S. Attorney Charles W. Kirkham prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Colombian National Detained at the Henry E. Rohlsen Airport Following His Attempted Illegal Entry into the United StatesRead the Press Release
St. Croix, USVI – U.S. Attorney Gretchen C.F. Shappert announced that a Colombia national appeared before Magistrate Court Judge George W. Cannon, Jr. for an initial hearing on criminal charges related to his alleged attempted illegal entry into the continental United States.
According to court documents, on December 8, 2021, at the Henry E. Rohlsen airport on St. Croix, Andres Bejarano, age 33, presented to U.S. Customs and Border Protection (CBP) officers for inspection to board a flight from St. Croix to Florida with a Florida driver's license. It was later determined that this license belonged to his brother, Daniel Bejarano. When questioned, Bejarano claimed to be a U.S. Citizen. He later claimed to have a green card. He subsequently admitted that he was using his brother's ID because he was aware that he had an active warrant for his arrest. After being referred to secondary screening, CBP officers conducted a baggage inspection. Officers discovered that Bejarano dropped a black pouch under his seat that contained Ketamine, a schedule III controlled substance, and MDMA, a schedule I controlled substance.
As a result, Bejarano was charged by criminal complaint with Falsely Representing to be a Citizen of the United States, False Statements, Aggravated Identity Theft, and Simple Possession of a Controlled Substance. If convicted, Bejarano faces a up to a potential 5 years in prison and subsequent deportation. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Customs and Border Protection and Homeland Security Investigations are investigating the case. Assistant U.S. Attorney Daniel H. Huston is prosecuting the case.
United States Attorney Shappert reminds the public that a criminal complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
Chicago Man Sentenced to 84 Months for Conspiracy to Distribute CocaineRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Michael C. Henderson, 52, Chicago, Illinois was sentenced today by U.S. District Judge James D. Peterson to 84 months in prison, followed by 5 years of supervised release for conspiracy to distribute cocaine. Henderson pleaded guilty to this charge on July 9, 2021. Judge Peterson also ordered Henderson to forfeit $22,763.59.
In 2020, federal and state law enforcement agencies started investigating several known cocaine traffickers in Dane County, Wisconsin. As part of this joint investigation, the Wisconsin Department of Justice Division of Criminal Investigation (DCI) obtained state-authorized wiretaps on two phones belonging to a suspected trafficker in Madison. Over the course of several months, investigators intercepted numerous calls and text messages between the trafficker and Henderson. Most of these calls centered on Henderson supplying cocaine to the trafficker, negotiating lower costs from the source-of-supply, improving the quality of the cocaine, and recruiting additional customers in Dane County. The conspiracy took place from September through December 2020 and resulted in Henderson selling approximately 9 kilograms of cocaine to the trafficker.
On December 8, 2020, agents from DCI and officers from the Chicago Police Department arrested Henderson in Chicago after the investigators arranged for the purchase of 2 kilograms of cocaine from Henderson. During a post-arrest interview, Henderson admitted he planned to sell the drugs to the Madison-based trafficker.
Officers and agents also searched several houses that Henderson used in Chicago and found $52,600 in cash, a loaded semi-automatic pistol, 100 grams of marijuana, mobile phones, an electronic money counter, and bank deposit receipts. Investigators traced these receipts to a bank account that held $22,763.59 in drug proceeds. The $52,600 in cash was the subject of a forfeiture action in Illinois.
At sentencing, Judge Peterson explained that he felt compelled to impose a significant term of imprisonment because of the seriousness of Henderson’s crime and the quantity of drugs involved. Judge Peterson specifically noted that, while Henderson did not have a large customer base, he had one customer who sold a substantial amount of cocaine in the Madison area.
The charge against Henderson was the result of an investigation conducted by DCI, the Dane County Narcotics Task Force, the Chicago Police Department, the Cook County State’s Attorney’s Office, the Drug Enforcement Administration, and the Federal Bureau of Investigation. Assistant U.S. Attorney Chadwick M. Elgersma prosecuted this case.
Charleston Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to three years and two months in prison for a federal gun crime.
According to court documents and statements made during the plea hearing, Richard Howard King II, 26, was involved in an argument with another individual at a bar in Cross Lanes on March 13, 2021. During the argument, King retrieved a gun from his car and fired a .45 caliber round from it. King admitted that he possessed the round of .45 caliber Tula ammunition that was fired from the gun and that he was prohibited from possessing the ammunition as a result of a 2016 federal conviction. King was still on supervised release for the prior felony conviction at the time.
United States Attorney Will Thompson made the announcement and commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Alex Hamner prosecuted the case.
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 Nos. 2:21-cr-00008 & 2:15-cr-000218.
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Canton Woman Charged with Defrauding HUD Section 8 Housing ProgramRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Christina D. Scaringi, Special Agent in Charge of the Office of Inspector General, U.S. Department of Housing and Urban Development, today announced that a federal grand jury in New Haven has returned an indictment charging DONNA CARNEY, 66, of Canton, with one count of theft of government property.
The indictment was returned on November 16. Carney appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven and entered a plea of not guilty to the charge. She is released on $50,000 bond pending trial.
As alleged in the indictment, in approximately 1995, Carney began receiving Section 8 tenant-based rental assistance under the housing choice voucher program of the U.S. Department of Housing and Urban Development (“HUD”). From approximately 2004 to 2019, Carney failed to report to HUD that she was married to her landlord and therefore had an interest in the home in which she lived, failed to report certain others living in her home, and falsely claimed that unauthorized residents were live-in aides.
If convicted of the charge, Carney faces a maximum term of imprisonment of 10 years.
Acting U.S. Attorney Boyle stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the U.S. Department of Housing and Urban Development – Office of Inspector General for Investigations and the Canton Police Department. The case is being prosecuted by Assistant U.S. Attorney Heather Cherry.
Camden County Man Admits Possessing Child PornographyRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man with a prior child exploitation conviction admitted possessing child pornography, Acting U.S. Attorney Rachael A. Honig announced today.
James Tierney, 56, of Cherry Hill, New Jersey, pleaded guilty before U.S. Senior District Judge Robert B. Kugler in Camden federal court to one count of possession of child pornography.
According to documents filed in this case and statements made in court:
In August 2020, law enforcement agents executed a search warrant at Tierney’s residence after receiving information from the National Center for Missing and Exploited Children that an online cloud account accessed from Tierney’s residence had uploaded images of child sexual abuse. While executing the search warrant, agents recovered Tierney’s cell phone, which contained multiple videos and images of child sexual abuse. Tierney admitted to agents that he used the cell phone and cloud account for possessing images of child sexual abuse.
Tierney has a prior New Jersey state conviction for endangering the welfare of a child/distribution of child pornography. The count of possession of child pornography after a prior child exploitation conviction carries a mandatory minimum penalty of 10 years in prison, a maximum penalty of 20 years in prison, and a maximum $250,000 fine. Sentencing is scheduled for April 12, 2022.
Acting U.S. Attorney Honig credited special agents of the Department of Homeland Security, Homeland Security Investigations, Cherry Hill Office, under the direction of Special Agent in Charge Jason J. Molina in Newark; the Camden County Prosecutor’s Office High Tech Crimes Unit, under the direction of Acting Prosecutor Grace C. MacAulay; and the New Jersey State Police, under the direction of Superintendent Patrick J. Callahan, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jeffrey B. Bender of the U.S. Attorney's Office Criminal Division in Camden.
California Parent Agrees to Plead Guilty in College Admissions CaseRead the Press Release
BOSTON – The owner of a warehousing company for the shipping industry has agreed to plead guilty in connection with his involvement in the college admissions case.
I-Hsin “Joey” Chen, 67, of Newport Beach, Calif., has agreed to plead guilty to one count of wire fraud and honest services wire fraud. A plea hearing for the defendant has not yet been scheduled by the Court. Chen was previously scheduled for trial on Jan. 13, 2022.
Chen will plead guilty 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 will be the 38th, and final parent, in the college admissions case 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.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
California Man Indicted on Methamphetamine ChargeRead the Press Release
BOSTON – A California man was indicted yesterday on a charge of distributing and possessing with intent to distribute methamphetamine.
Cameron Graff, 29, of San Diego, Calif., was indicted on one count of distributing and possessing with intent to distribute 50 grams or more of methamphetamine. Graff is currently in state custody on unrelated charges.
According to the charging documents, in December 2019, Graff began communicating with an undercover agent in Massachusetts about purchasing methamphetamine from Graff. In January 2020, Graff allegedly mailed a parcel containing approximately 690 grams of methamphetamine to the undercover agent.
The charge of distribution of and possession with intent to distribute 50 grams or more of methamphetamine provides for a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of $10 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement today. Special assistance in the investigation was provided by the U.S. Postal Inspection Service, San Diego Division and the Drug Enforcement Administration, San Diego Division. Assistant U.S. Attorney James E. Arnold of Mendell’s Narcotics & Money Laundering Unit is prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Burlington County Man Sentenced to 42 Months in Prison for Role in $350,000 Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man was sentenced today to 42 months in prison for stealing more than $350,000 from a special needs trust, Acting U.S. Attorney Rachael A. Honig announced.
Eugene Young, 70, of Mount Holly, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of wire fraud. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
A special needs trust was established to provide for the supplemental care, maintenance, support, and education of a disabled individual and, in December 2017, had more than $1 million in assets in two bank accounts. In December 2017, Young caused the trust’s trustee, a senior citizen, to execute a power of attorney appointing him as the trustee’s agent.
Young used the power of attorney to gain access to the trust’s bank accounts and, between December 2017 and June 2019, used a variety of means to divert funds from the trust. Young used a debit card associated with the bank accounts to make more than 650 purchases and approximately 200 ATM withdrawals. He also wrote checks from the accounts to himself, made other withdrawals from the accounts, and cashed portions of annuity checks that were the property of the trust. The funds were not used for the benefit of the trust’s beneficiary, as required by the terms of the trust, but rather for Young’s personal use. Young misappropriated more than $350,000 from the trust before his scheme was discovered.
In addition to the prison term, Judge Rodriguez sentenced Young to three years of supervised release and ordered to pay restitution of $359,560.
Acting U.S. Attorney Honig credited special agents of FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty; and special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
Burlington County Man Charged with Cell Phone SIM Swap SchemeRead the Press Release
NEWARK, N.J. – A Burlington County, New Jersey, man was arrested today for swapping cell phone customers’ Subscriber Identity Module (SIM) numbers into mobile devices controlled by an individual who was paying the defendant for the swaps, Acting U.S. Attorney Rachael A. Honig announced.
Jonathan Katz, 40, of Marlton, New Jersey, is charged by complaint with one count of gaining unauthorized access to a protected computer. He is scheduled to appear before U.S. Magistrate Judge Michael A. Hammer and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
In May 2021, Katz, who was employed as a manager at a telecommunications store, used his managerial credentials to access several customer accounts and swapped the SIM numbers associated with the customers’ phone numbers into mobile devices controlled by another individual, enabling this other individual to control the customers’ phones and access the customers’ electronic accounts. This technique is often used to defeat accounts with two-factor authentication including but not limited to email, social media, and financial accounts.
In exchange for the swaps, Katz was paid in Bitcoin, which was traced back to Katz’s cryptocurrency account.
The charge of unauthorized access to a computer carries a statutory maximum of five years in prison and a fine of not more than $250,000 or twice the pecuniary gain to the defendant or twice the gross loss involved, whichever is greatest.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George Crouch Jr. in Newark, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Vera Varshavsky of the U.S. Attorney’s Cybercrimes Unit in Newark.
Bellevue, Washington, CPA pleads guilty to tax fraudRead the Press Release
Seattle – A 70-year-old Bellevue, Washington, Certified Public Accountant pleaded guilty today in U.S. District Court in Seattle to attempt to evade or defeat tax, announced U.S. Attorney Nick Brown. Steven G. Shimizu, owned and operated a tax preparation business, S&S CPA Corporation (“S&S Corp.”). In tax years 2013, 2014 and 2015, Shimizu admits he hid income from his business by attributing it to other entities. In this way he underpaid his taxes by more than $884,000. Shimizu faces up to 5 years in prison when sentenced by U.S. District Judge John C. Coughenour on March 15, 2022.
According to the plea agreement, Shimizu admits he used two business entities, Shimizu & Shimizu (“S&S Partnership”) and CS Medical Consultants (“CS Partnership”) to evade taxes. In the years at issue, the entities had no business activity and thus no income or expenses. However, for tax years 2013 and 2014, Shimizu attributed income that he earned from his CPA corporation, as income to S&S Partnership. He then created phony business expenses attributable to S&S Partnership. Those expenses reduced the amount of income taxes owed. In tax years 2013-15 Shimizu used the same scheme with the CS Partnership. The scheme hid income from the CPA firm, and then the creation of phony business expenses reduced the income taxes owed.
Additionally, in tax years 2013-15, Shimizu sought to record personal expenses as business expenses on the tax returns for the CPA business. Shimizu characterized withdrawals from business accounts as business expenses, but they were actually cash withdrawals for his personal benefit, personal insurance, personal legal expenses, and payments to family members.
“Tax professionals are essential to the operation of our tax system, and the public puts their utmost trust in these professionals to prepare tax returns truthfully,” said Special Agent in Charge Bret Kressin, IRS Criminal Investigation (IRS-CI), Seattle Field Office. “When individuals like Mr. Shimizu break that trust by fraudulently filing false tax returns out of greed, they put their clients and the public at risk by undermining that trust. IRS-CI is continually committed to investigating those who think they are above paying their fair share.”
Attempting to evade or defeat tax is punishable by up to 5 years in prison and a $100,000 fine. The actual sentence will be determined by Judge Coughenour after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI).
The case is being prosecuted by Assistant United States Attorney Michael Dion.
Beckley Man Pleads Guilty to Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – A Beckley man pleaded guilty today to a federal drug crime.
According to court documents, on June 17, 2021, Rashad Lewis Morris, 29, was contacted by a confidential informant working with the Beckley Raleigh County Drug and Violent Crime Unit to purchase fentanyl. Morris met with the informant at a location on Johnstown Road in Beckley where he distributed approximately 2.9 grams of fentanyl to the informant in exchange for money.
Morris pleaded guilty to distribution of fentanyl and faces up to 20 years in prison when is sentenced on March 25, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Beckley Raleigh County Drug and Violent Crime Unit, and the Raleigh County Sheriff’s Department.
United States District Judge Frank W. Volk presided over the hearing. Assistant U.S. Attorney Courtney L. Cremeans is prosecuting the case.
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. 5:21-cr-00238.
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Bay Point Man Sentenced to over 17 Years in Prison for Production of Child PornographyRead the Press Release
OAKLAND - Sergio Luiz Cruz Esparza was sentenced today to 210 months in prison for producing child pornography, announced Acting United States Attorney Stephanie M. Hinds and Homeland Security Investigations Special Agent in Charge Tatum King. The sentence was handed down by the Hon. Yvonne Gonzalez Rogers, U.S. District Judge.
Cruz Esparza, 23, of Bay Point, pleaded guilty to the charge today and was sentenced during the same proceeding. According to the guilty plea, Cruz Esparza admitted that during 2019 and 2020, when he was 20 or 21 years old, he used social media applications, including Snapchat, to communicate with female minors for the purpose of requesting or persuading the minors to meet him in person and have sexual contact. Cruz Esparza admitted he told the minors he was younger than his real age. The plea agreement describes Cruz Esparza’s encounter with a 15-year-old in June of 2019. In the plea agreement, Cruz Esparza acknowledged how he initiated contact with the 15-year old on Snapchat, told the girl he was 17 years old, and sent the teenage girl images depicting sexually explicit conduct involving minors. Cruz Esparza arranged to meet this teenage minor in June 2019. During the meeting, Cruz Esparza molested her; and, using his telephone, created digital images as the intercourse occurred. Further, according to his guilty plea, Cruz Esparza sent images in March of 2020 to another user of a social media application of sexually explicit conduct by a minor female.
According to the sentencing memorandum filed by the government, during 2019-2020, Cruz Esparza enticed thirteen minor victims to send him images depicting sexually explicit conduct using social media platforms, and he had sexual contact with five of the victims, including sexual intercourse with four of them.
On December 14, 2020, the United States filed a three-count Superseding Information charging Cruz Esparza with one count each of distribution of child pornography, in violation of 18 U.S.C. § 2252(a)(2) and (b)(1); coercion and enticement of a minor, in violation of 18 U.S.C. § 2422(b); and production of child pornography, in violation of 18 U.S.C. § 2251(a). Cruz Esparza pleaded guilty to the production count; the other two counts were dismissed.
In addition to the prison term, Judge Gonzalez Rogers ordered a 10-year term of supervised release and set a restitution hearing for February 9, 2022. Cruz Esparza is in custody and will begin serving his prison term immediately.
Assistant U.S. Attorney Jonathan U. Lee is prosecuting the case with the assistance of Jessica Gonzalez Rodriguez and Kathleen Turner. The prosecution is the result of an investigation by the Department of Homeland Security, Homeland Security Investigations, and the Silicon Valley Internet Crimes Against Children Task Force.
Baltimore Drug Dealer Sentenced to Eight Years in Federal Prison for Conspiracy to Distribute Narcotics and Conspiracy to Commit Money LaunderingRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell sentenced Gregory Jones, age 44, of Lithonia, Georgia to eight years in federal prison, followed by four years of supervised release, for conspiracy to distribute narcotics and conspiracy to commit money laundering.
The sentence 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; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; and Chief Daniel DeWolf of the Troy Police Department (New York).
According to his plea agreement, from 2017 to February 2019, Jones conspired with others to distribute heroin, fentanyl, and other narcotics in Maryland.
During an investigation conducted by the FBI and Maryland state investigators, investigators worked with a confidential informant who regularly engaged with the conspiracy. Throughout the investigation law enforcement monitored and recorded phone calls between the confidential informant and a co-conspirator of Gregory Jones. In these phone calls the informant and co-conspirator frequently discussed ongoing or future drug deals. Additionally, on at least two occasions, investigators arranged controlled purchases of heroin from the co-conspirator.
In 2018, investigators began a wiretap of Jones’s and the co-conspirator’s cell phones. During the wiretaps, Jones frequently engaged in phone calls with the co-conspirator and with customers. During the communications, Jones arranged to distribute narcotics to customers or acquired money from customers, often by having the co-conspirator conduct the transactions.
For example, on January 11, 2019, the co-conspirator contacted Jones and the co-conspirator engaged in a phone call. During the call, the two discussed numbers in a manner that indicated they were talking about quantities of narcotics. At one point in the conversation, Jones instructed the co-conspirator to “take those two, that 30 and that 11 and mix those together. Like run them through the strainer a couple times like how you did the joint last time.” Jones further instructed the co-conspirator to “mix those two together and then you gonna take that to him.”
Later that day, law enforcement observed the co-conspirator enter a car and began driving. While the co-conspirator was in route to their intended destination, law enforcement conducted a traffic stop of the co-conspirator’s vehicle. The vehicle was then scanned by a police canine that alerted a positive response for the presence of narcotics. Upon a search of the vehicle, investigators found 38.96 grams of a heroin/fentanyl mixture.
Jones agrees that the conspiracy involved the distribution of at least 700 grams of heroin.
Further, the federal and state investigation into Jones’ drug trafficking conspiracy revealed that the organization also engaged in in a conspiracy to commit money laundering in furtherance of narcotics activity. Jones and other members of the conspiracy would plan and/or conduct financial transactions, including the payment of money to drug suppliers, to promote and carry on the narcotics conspiracy. The organization transmitted narcotics profits through various means, including by sending wire transmissions of money.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron praised the FBI, the Maryland State Police, the Cumberland Police Department, the Allegany County Sheriff’s Office, the Troy Police Department (New York), and the West Virginia Potomac Highlands Violent Crime and Drug Task Force for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Michael C. Hanlon and Lindsey McCulley, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Attorney General Garland Participates in Quintet Meeting of Attorneys GeneralRead the Press Release
The annual meeting of the five Attorneys General from New Zealand, Australia, Canada, the United Kingdom and the United States was held this year by video conference on Dec. 2 and 3, 2021.
Though it is the second time the COVID-19 pandemic has prevented the Quintet from meeting in person, the Attorneys General were able to meet virtually to progress this important work.
The meeting, chaired by the Hon. David Parker from New Zealand, brought together the Hon. Michaelia Cash (Australia), the Hon. David Lametti (Canada), the Hon. Suella Braverman QC MP (England and Wales) and the Hon. Merrick Garland (the United States of America) to discuss and share information about complex legal issues, in which they have a mutual interest.
“The opportunities for cooperation among our five countries are both wide-ranging and vital to our success in promoting access to justice for all in light of the COVID-19 pandemic; protecting our democratic institutions; and countering the threat of terrorism,” said U.S. Attorney General Merrick B. Garland. “The United States Department of Justice thanks New Zealand for bringing us together virtually this year, and we look forward to hosting next year’s Quintet.”
“Working closely with our international partners is essential as we face common challenges and strive to keep our citizens safe,” said New Zealand Attorney General David Parker.
“Collaboration among Quintet partners is essential to addressing shared legal challenges in our respective justice systems,” said Minister of Justice and Attorney General of Canada David Lametti. “This year’s discussions included valuable exchanges on the impacts of the COVID-19 pandemic, the importance of upholding the rule of law and the promotion of access to justice for all.”
“It’s been an honor to meet my Quintet counterparts and discuss our shared goals to protect the safety of our citizens,” said Attorney General for England and Wales Suella Braverman. “We stand together in the face of challenges like the pandemic, terrorism and foreign interference, bound by a mutual respect for the rule of law.”
“It is invaluable to have the opportunity to discuss priorities such as enhancing our approach to foreign influence and foreign interference and collaborating further to strengthen our frameworks across borders,” said Australia Attorney General Michaelia Cash.
The Attorneys General discussed their respective institutions’ responses to the challenges created by the COVID-19 pandemic, ways to enhance cooperation to address foreign influence and foreign interference in democratic processes, and the approaches each country takes in seeking to prevent terrorist acts.
The Quintet Communiqué jointly issued at the conclusion of the meeting is available here: /media/1179586/dl?inline
Armed Robber Sentenced to over 14 Years in Prison for Committing Two February 2020 Armed Robberies of Bethlehem-Area BusinessesRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Joshua Obed Altruz, 26, of Bethlehem, PA, was sentenced to 14 years and one month in prison, five years of supervised release, and was ordered to pay a $1,000 fine and restitution by United States District Judge Edward G. Smith for committing two armed robberies on February 6, 2020.
In July 2021, the defendant pleaded guilty to an Indictment charging him with two counts of Hobbs Act robbery, and two counts of using, carrying, and brandishing a firearm during a crime of violence. The charges stemmed from two incidents on the same afternoon last February: a robbery of the Taylor Family Fuel and Mini Mart, followed by a robbery of a Rite Aid pharmacy a few hours later. Each of the crimes were captured on surveillance, which ultimately enabled law enforcement to link the robberies back to the same assailant. In both videos, the defendant was seen wearing the same clothing, brandishing a distinctive two-tone black and brown semi-automatic Glock pistol, and fleeing the scene in a gold Honda Civic with tinted windows and an indentation on the driver side door.
Immediately after the second robbery at the pharmacy, Bethlehem Police Department officers responded to a call and conducted a traffic stop on a car matching the description above. The defendant was found in possession of the distinctive handgun, which was fully loaded with ten rounds of ammunition.
“This defendant brazenly robbed two neighborhood businesses, and for that he will now spend over fourteen years in prison,” said U.S. Attorney Williams. “Hopefully others will learn from the example set here -- if you rob a business in our District with a firearm, you are going to face serious federal prison time as a result. Our Office is committed to being ‘All Hands On Deck’ working with our law enforcement partners to bring criminals to justice.”
“Determined to score money and pills, Joshua Altruz committed two armed robberies in less than four hours,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “He did so toting a fully loaded gun, which he pointedly showed his victims. Fortunately, Bethlehem police officers quickly saw and stopped Altruz’s vehicle, taking him into custody before he could target any other businesses. Getting violent criminals like this off the street is a priority for the FBI and our local law enforcement partners, as we all work our hardest to keep the public safe.”
The case was investigated by the Federal Bureau of Investigation, with assistance from the City of Bethlehem Police Department and the Northampton County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Kelly A. Lewis Fallenstein.
Arizona Man Sentenced to 4 Years’ Probation, Community Service, and Fine for Smuggling Marijuana in Luggage on Flight from San Francisco to St. CroixRead the Press Release
St. Croix, USVI – United States Attorney Gretchen C.F. Shappert announced today that Armando Antonio Mena, age 29, of Arizona, was sentenced by District Court Judge Wilma Lewis today to four years of federal probation, a fine of $3000, special assessment fee of $100, and 100 hours of community service. He had pleaded guilty on February 5, 2021 in federal court to possession of marijuana with intent to distribute.
According to court documents, Armando Antonio Mena traveled to St. Croix, U.S. Virgin Islands on May 27, 2020, on a flight that originated in San Francisco, California. On that flight, he transported checked luggage containing twenty-two individually wrapped vacuum sealed bags that contained just under ten kilograms of marijuana, the amount and packaging being consistent with drug distribution.
The case was investigated by Homeland Security Investigations and U.S. Customs and Border Protection. It is being prosecuted by Assistant U.S. Attorney Melissa P. Ortiz.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Albuquerque man sentenced to 4 years in prison for weapons and identity violationsRead the Press Release
ALBUQUERQUE, N.M. – Travis Fanning, 26, of Albuquerque, was sentenced on Dec. 8 in federal court to four years and nine months in prison for being a felon in possession of a firearm and ammunition and possession with intent to use or transfer five or more identification documents or authentication features. Fanning pleaded guilty on May 20.
According to the plea agreement and other court records, on Aug. 22, 2020, Fanning was a passenger in a vehicle that was stopped for a traffic violation. Law enforcement found Fanning in possession of a loaded, stolen pistol. Three months later on Nov. 19, 2020, police responded to a report at an apartment complex regarding a man smoking methamphetamine and sleeping in a shared laundry room. Officers found Fanning with a loaded firearm and a folder filled with identification documents, including Social Security cards, driver licenses, bank statements and blank checks.
At the time of these incidents, Fanning had six previous felony convictions in Illinois and New Mexico. As a convicted felon, Fanning could not legally possess a firearm or ammunition.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with assistance from the Albuquerque Police Department. Assistant U.S. Attorney Jaymie L. Roybal prosecuted the case.
Albany Man Pleads Guilty to Possessing a Firearm as a Felon at Albany International AirportRead the Press Release
ALBANY, NEW YORK – Josef Jarvis, age 32, of Albany, pled guilty today to unlawfully possessing a firearm as a felon at the Albany International Airport on August 16, 2021.
The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Jarvis, who has prior felony convictions for racketeering and weapons offenses, admitted that he possessed a loaded handgun and ammunition while attempting to pass through a security checkpoint at Albany International Airport on August 16, 2021.
Jarvis faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years when Chief U.S. District Judge Glenn T. Suddaby sentences him on April 28, 2022. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the FBI’s Joint Terrorism Task Force (JTTF) and the Albany County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Alexander Wentworth-Ping.
Abingdon Man Pleads Guilty to Possession of Stolen Mail, Bank FraudRead the Press Release
ABINGDON, Va. – An Abingdon, Virginia man who stole hundreds of pieces of mail from over 100 different addresses in the Abingdon area, including a check he altered and cashed at a local bank, pleaded guilty today to related charges.
Bradley Alan Wolfe, 38, admitted today to possessing hundreds of pieces of mail that he stole from residential mailboxes in the Abingdon area in March, April, and September 2021. Items taken include multiple packages, cash, a United States passport, and checks ranging from a couple hundred dollars to thousands of dollars. Wolfe altered one of the checks he stole by replacing the payee’s name with his own and cashed the check at Eastman Credit Union in Abingdon for $4,890.
Wolfe pleaded guilty to possession of stolen mail and one count of bank fraud. He is scheduled to be sentenced on February 28, 2022 and faces a maximum sentence of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia made the announcement.
The Washington County Sheriff’s Office and the United States Postal Inspection Service investigated the case, with assistance provided by the United States Marshals Service.
Assistant U.S. Attorney Lena L. Busscher is prosecuting the case.
A Bankruptcy Petition Preparer in Goshen, Indiana was SentencedRead the Press Release
SOUTH BEND – Ronya Phillips, age 47, of Goshen, Indiana, was sentenced by United States District Court Judge Damon R. Leichty upon her plea of guilty to two counts of suborning perjury, announced United States Attorney Clifford D. Johnson.
Phillips was sentenced to serve 18 months home detention.
According to documents in this case, Phillips was formerly a bankruptcy petition preparer (a “BPP”) in the Northern District of Indiana. In that capacity she prepared bankruptcy petitions and other documents for debtors who filed cases in the United States Bankruptcy Court for the Northern District of Indiana.
As part of her guilty plea, Phillips admitted that she willfully suborned and procured individuals to commit perjury by submitting materially false declarations in federal bankruptcy proceedings. Certain debtors and clients of Phillips reported that she had induced them to falsely state on their bankruptcy documents that they had paid her half of the amount they had actually paid her for her services. Phillips also persuaded her clients to testify falsely under oath as to how much they had paid her when questioned by the bankruptcy trustee. Finally, Phillips herself submitted false sworn statements in disclosures which only disclosed half of the amount of money she actually had received from clients.
“The U.S. Attorney’s office will vigorously enforce federal laws that govern the conduct of persons participating in the bankruptcy system and, as this case shows, we will prosecute individuals whose conduct undermines the integrity of the bankruptcy process,” said United States Attorney Clifford D. Johnson.
“Abuse of the bankruptcy system by having consumers falsify documents and provide false testimony strikes at the very core of the integrity of the bankruptcy system, undermines public confidence in that system and is a practice against which consumers need to be protected,” stated Nancy J. Gargula, U.S. Trustee for Indiana, Central Illinois, and Southern Illinois. “I am grateful to U.S. Attorney Clifford Johnson and our law enforcement partners for their strong commitment to combating fraud and abuse in bankruptcy cases.”
The charges resulted from a referral by the U.S. Trustee for Indiana and Central and Southern Illinois (Region 10) to the U.S. Attorney for the Northern District of Indiana. The case was investigated by the United States Postal Inspection Service in collaboration with the Northern Indiana Bankruptcy Fraud Working Group coordinated by the U.S. Trustee for Region 10. This case is being prosecuted by Assistant United States Attorney Luke N. Reilander and Special Assistant United States Attorney Jennifer W. Prokop from the U.S. Trustee’s Office.
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2 defendants charged in T&A Crips case each sentenced to at least 18 years in prisonRead the Press Release
COLUMBUS, Ohio – Two of the 19 defendants convicted in a Columbus gang-related racketeering conspiracy were sentenced in federal court this week.
Brandon Martin, 29, was sentenced yesterday to 24 years in prison. Martin shot and killed William Moore, a rival Poindexter Thug Life Bloods gang member, in March 2013.
Terrell Scott Hansard, 24, was sentenced today to 18 years in prison. Hansard drove the vehicle when gang members shot and killed 7-year-old Deoante Fisher in March 2016.
The racketeering conspiracy first charged in 2018 includes five murders, at least 26 attempted murders, and other violent and drug-trafficking crimes.
The local T&A Crips gang derived its name from Trevitt and Atcheson streets in the King-Lincoln District of Columbus, where its members predominantly resided.
T&A controlled the neighborhood through intimidation, fear and violence. Gang members were expected to retaliate with acts of violence when their members and associates were disrespected, threatened, intimidated or subjected to acts of violence.
Specifically, co-conspirators in this case have been convicted of five murders:
the murder of Franky Tention on July 1, 2012, in the area of 431 Ellison Street;
the murder of William Moore on March 15, 2013;
the murder of Marvin Ector on December 23, 2013, on East 5th Avenue;
the murder of Quincy Story on January 24, 2015; and
the murder of seven-year-old Deonte Fisher on March 4, 2016.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Roland H. Herndon, Jr., Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Columbus Police Chief Elaine Bryant; and United States Marshal Pete Tobin announced the sentences imposed by U.S. District Judge Michael H. Watson. Assistant United States Attorneys Kevin W. Kelley and Noah R. Litton are representing the United States in this case.
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8 December 2021
Woman Sentenced for Aggravated Identity Theft and Mail FraudRead the Press Release
RALEIGH, N.C. – A Winston-Salem woman was sentenced today to 28 months incarceration, two years supervised release and a $7,005.00 in restitution for impersonating the identity of two victims. On August 24, 2021, Melanie Alecia Ruona pled guilty to two counts of a six-count indictment charging her with Aggravated Identity Theft and Mail Fraud.
According to court documents and other information presented in court, Melanie Alecia Ruona, 34, and others perpetrated a scheme to illegally access the North Carolina Division of Motor Vehicles’ computers and steal the identities of the individuals she accessed. By doing this Rouna was responsible for stealing the identity of two victims. Rouna used the identity of one of the victims to open a credit account at a local department store in Greensboro and purchased $4,071.50 in goods. Rouna also applied for unemployment benefits in the identity of the victim for a loss of $2,934 to North Carolina Division of Employment Security.
In October of 2020, the North Carolina Division of Motor Vehicles, License and Theft Bureau in conjunction with the U.S. Secret Service and the U.S. Postal Inspection Service, identified a criminal scheme involving multiple individuals who had assumed the identities of hundreds of victims and then perpetrated various crimes using the victims’ identity.
Rouna is the fourth defendant to be prosecuted in the Eastern District based on similar schemes to illegally access the North Carolina Division of Motor Vehicles computers, that were identified previously.
Michael F. Easley, Jr. U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Task Force comprised of the North Carolina Division of Motor Vehicles, License and Theft Bureau, U.S. Secret Service, and U.S. Postal Inspection Service investigated the case and Assistant U.S. Attorney Gabriel Diaz 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. 5:21-CR-202-1BO, 5:21-CR-339-1D, 5:21-CR-284-FL, and 5:21-CR-338-1FL.
Winston-Salem Nurse Pleads Guilty to Tampering with Medical SuppliesRead the Press Release
GREENSBORO, N.C. - A Winston-Salem woman pleaded guilty today to attempting to tamper with consumer products, announced U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina.
According to court filed documents, Emilee Kathryn Poteat, 32, removed and opened packages containing vials of injectable Hydromorphone from Novant Health Forsyth Medical Center (NHFMC) while employed as a contact nurse in the Clinical Pre/Post Procedure Unit. From July, 2020 to November, 2020, Poteat removed vials for the purpose of converting and consuming the Hydromorphone by injecting the drug into herself. Poteat then replaced the used vials with tampered vials containing a saline solution. Poteat knew that, in doing so, nurses at NHFMC might unknowingly administer the contents of compromised vials to patients.
Virginia Department of Health Investigator Laura Pezzulo began an investigation into Poteat’s handling of the drugs after NHFMC provided vials they suspected had been tampered with by Poteat. Poteat later admitted to tampering with the injectable Hydromorphone in an interview with Investigator Pezzulo.
“The FDA oversees the U.S. drug supply to ensure that it is safe and effective, and those who knowingly tamper with medicines put patients’ health at risk,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations Metro Washington Field Office. “We will continue to protect the public health and bring to justice health care professionals who take advantage of their unique position and compromise their patients’ health and comfort by tampering with needed drugs.”
U.S. District Judge Loretta C. Biggs will set sentencing at a later date. At sentencing, Poteat faces a maximum sentence of ten years in prison, a period of supervised release, and monetary penalties.
Sandra J. Hairston, U.S. Attorney for the Middle District of North Carolina, made the announcement. Agents with the Food and Drug Administration/Criminal Investigation Division investigated the case. The case is being prosecuted by Assistant U.S. Attorney Frank J. Chut.
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Williamsport Man Sentenced to Five Years’ Imprisonment for Firearm OffenseRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on December 7, 2021, Joshair Jones, age 19, of Williamsport, Pennsylvania, was sentenced to five years’ imprisonment to be followed by three years of supervised release by Chief U.S. District Court Judge Matthew W. Brann for possession of a firearm with an obliterated serial number.
According to United States Attorney John C. Gurganus, Jones possessed the firearm between August 1 and August 16, 2020. The firearm was recovered by law enforcement on August 16, 2020, and further analysis of the weapon revealed fingerprints that were a match for Joshair Jones.
At the sentencing hearing, the United Stated presented evidence of Jones’s involvement in a shooting that occurred on July 31, 2020, in Williamsport, along with Jones’s possession of a rifle on August 16, 2020. The Court listened to recorded phone calls in which Joshair Jones acknowledged his role in the shooting and discussed a potential retaliatory shooting that individuals threatened would occur in a residential neighborhood in Williamsport. The United States also played a phone call in which Jones directed another individual to bring him a semi-automatic rifle on August 16, 2020. That rifle was recovered by law enforcement on August 19, 2020.
In sentencing the defendant to the maximum allowed, Chief Judge Brann called Jones one of the more dangerous individuals who had come before him.
The investigation was conducted by the Pennsylvania State Police, the Williamsport Bureau of Police, the Lycoming County Narcotics Enforcement Unit, the Federal Bureau of Investigation, and the Drug Enforcement Administration. Assistant United States Attorney Alisan V. Martin prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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USP Lee Inmate Sentenced for Possessing WeaponRead the Press Release
ABINGDON, Va. – An inmate at United States Penitentiary (USP) Lee in Jonesville, Virginia was sentenced this week to 18 months in prison for possessing a weapon inside the prison.
Inmate Marquell Alonzo Derrington, 26, was convicted of possessing an 8-inch long, prison-made sharpened weapon, and pleaded guilty on September 7, 2021.
The investigation of the case was conducted by the Federal Bureau of Prisons.
Special Assistant United States Attorney Debbie Stevens prosecuted the case for the United States.
U.S. Virgin Islands Law Enforcement and Prosecutors Honored in Organized Crime Drug Enforcement Task Force National Awards Virtual Ceremony for Operation Py Beto KiloRead the Press Release
St. Thomas, USVI — United States Attorney Gretchen C.F. Shappert announced today that federal, state, local and territorial law enforcement and prosecutors were honored in a virtual Organized Crime Drug Enforcement Task Force (OCDETF) ceremony this morning. The awards ceremony included presentation of the OCDETF National Award for Outstanding Investigation to the District of the Virgin Islands OCDETF Program for Operation Py Beto Kilo. Awards presenters included OCDETF Executive Office and Regional Office personnel, representatives from the Drug Enforcement Administration, USVI Superior Court Judge and former federal prosecutor Alphonso Andrews, and VIPD Assistant Commissioner Elskoe.
The awards ceremony acknowledged the contributions of 48 law enforcement officers, agents and prosecutors who contributed to the successful multi-year investigation, disruption, and dismantlement of a notorious drug trafficking organization that transported hundred-kilo cocaine loads from Colombia through Venezuela on fishing vessels across the Caribbean to St. Croix, Puerto Rico and Florida.
Operation Py Beto Kilo lead to the June 26, 2018 conviction at trial of drug kingpin Sergio Quinone-Davila and five codefendants on cocaine-related charges. The investigation ultimately resulted in convictions for 14 defendants, and seizure of 87 kilograms of cocaine and 8 boats.
According to U.S. Attorney Shappert, "Today’s ceremony acknowledges the tremendous contributions of dedicated law enforcement agencies and prosecution offices that work collaboratively to disrupt and dismantle major drug organizations. National recognition of our efforts in the Virgin Islands is a testament to the excellent work and dedication of our OCDETF Task Force partners."
Established in 1982, OCDETF is the largest anti-crime task force in the United States. It operates as an independent component of the U.S. Department of Justice and is the centerpiece of the Attorney General’s strategy to combat transnational organized crime. OCDETF identifies, disrupts, and dismantles the highest level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Virgin Islands Law Enforcement and Prosecutors Honored in Organized Crime Drug Enforcement Task Force National Awards Virtual Ceremony for Operation Py Beto KiloRead the Press Release
St. Thomas, USVI — United States Attorney Gretchen C.F. Shappert announced today that federal, state, local and territorial law enforcement and prosecutors were honored in a virtual Organized Crime Drug Enforcement Task Force (OCDETF) ceremony this morning. The awards ceremony included presentation of the OCDETF National Award for Outstanding Investigation to the District of the Virgin Islands OCDETF Program for Operation Py Beto Kilo. Awards presenters included OCDETF Executive Office and Regional Office personnel, representatives from the Drug Enforcement Administration, USVI Superior Court Judge and former federal prosecutor Alphonso Andrews, and VIPD Assistant Commissioner Elskoe.
The awards ceremony acknowledged the contributions of 48 law enforcement officers, agents and prosecutors who contributed to the successful multi-year investigation, disruption, and dismantlement of a notorious drug trafficking organization that transported hundred-kilo cocaine loads from Colombia through Venezuela on fishing vessels across the Caribbean to St. Croix, Puerto Rico and Florida.
Operation Py Beto Kilo lead to the June 26, 2018 conviction at trial of drug kingpin Sergio Quinone-Davila and five codefendants on cocaine-related charges. The investigation ultimately resulted in convictions for 14 defendants, and seizure of 87 kilograms of cocaine and 8 boats.
According to U.S. Attorney Shappert, "Today’s ceremony acknowledges the tremendous contributions of dedicated law enforcement agencies and prosecution offices that work collaboratively to disrupt and dismantle major drug organizations. National recognition of our efforts in the Virgin Islands is a testament to the excellent work and dedication of our OCDETF Task Force partners."
Established in 1982, OCDETF is the largest anti-crime task force in the United States. It operates as an independent component of the U.S. Department of Justice and is the centerpiece of the Attorney General’s strategy to combat transnational organized crime. 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.
Two Florida Men Arrested and Charged in Insider Trading SchemeRead the Press Release
BOSTON – Two Florida men were arrested today in connection with their roles in an alleged insider trading scheme that generated at least $4 million in profits.
Kris Bortnovsky, a/k/a “Kris Bort,” 40, of Surfside, Fla., and Ryan Shapiro, 44, of Bay Harbor Island, Fla., were charged with one count each of conspiracy to commit securities fraud. The defendants will make an initial appearance in federal court in the Southern District of Florida later today. They will appear in Boston at a later date.
As alleged in the charging document, from at least August 2017 to November 2021, Bortnovsky, a financial services professional for more than 20 years, and Shapiro, an entrepreneur and founder of two privately held companies, conspired to trade in the stocks of certain publicly traded companies, including At Home Group, Inc., Aphria, Inc., DSW, Inc., and Rite Aid Corp., among others, based on material nonpublic information (MNPI) regarding the earnings results and merger-and-acquisition activity of those companies. In many instances, Bortnovsky and Shapiro allegedly obtained the information from a co-conspirator who was a relative of one or more officers or directors of these companies, or of companies involved in proposed acquisitions of the companies. In other instances, Bortnovsky shared MNPI that he had obtained with Shapiro and their co-conspirator.
The charging statute provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Wayne A. Jacobs, Special Agent in Charge of the Federal Bureau of Investigation’s Criminal/Cyber Division, Washington Field Office, made the announcement today. The Securities & Exchange Commission and the Federal Bureau of Investigation, Miami Field Office, provided valuable assistance in this matter. Assistant U.S. Attorneys Stephen E. Frank and Seth B. Kosto – Chief and Deputy Chief, respectively, of Mendell’s Securities, Financial & Cyber Fraud Unit – are prosecuting the case.
The details contained in the charging document are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Defendants Plead Guilty to Unemployment Fraud SchemeRead the Press Release
DETROIT - Two defendants pleaded guilty today to charges related to unemployment insurance benefit fraud schemes, announced Acting United States Attorney Saima Mohsin.
Joining in the announcement were Special Agent-in-Charge Timothy Waters, Federal Bureau of Investigation; Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General and Julia Dale, Director of the Michigan Unemployment Insurance Agency.
Pleading guilty were Mitchacole Johnson, 45, of Shelby Township, and Larry Witherspoon, 46, of Harper Woods. Both pleaded guilty to charges of wire fraud and will be sentenced before United States District Judge Gershwin Drain on March 22, 2022.
According to court records, Johnson and Witherspoon are responsible for filing at least 66 claims for fraudulent unemployment insurance benefits in at least 4 states, including Michigan. Their illegal activity caused actual losses of over $1.3 million and attempted losses of nearly $3.5 million. Johnson filed a number of claims in her own name, while Witherspoon filed multiple claims in the names of people who had names similar to his own, such as “Lawrence Witherspoon”. Both Johnson and Witherspoon filed their claims using other people’s Social Security Numbers and had the benefits deposited into a variety of bank accounts, some connected to pre-paid debit cards.
These cases are both being prosecuted by Assistant United States Attorney Ryan A. Particka. The investigations are being conducted jointly by agents from the Department of Labor Office of the Inspector General, the Federal Bureau of Investigation and the Michigan Unemployment Insurance Agency.Two Brooklyn Men Plead Guilty to 1989 MurderRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that WILLIAM SKINNER and DORIAN BROOKS, a/k/a “Kool-Aid,” pled guilty today in Manhattan federal court to charges relating to their involvement in the murder of Efren Cardenas on February 10, 1989, in Brooklyn, New York. SKINNER is scheduled to be sentenced on March 10, 2022, and BROOKS is scheduled to be sentenced on April 6, 2022, by U.S. District Judge Edgardo Ramos, who accepted today’s pleas.
U.S. Attorney Damian Williams said: “Today, William Skinner and Dorian Brooks admitted their participation in murdering Efren Cardenas over three decades ago, in February 1989. Today’s guilty pleas demonstrate that law enforcement will never give up on murder victims and their loved ones, no matter how long it takes to achieve justice.”
According to the allegations in the Indictment, and other filings and statements made in court:
On February 10, 1989, SKINNER and BROOKS killed Efren Cardenas, 30, in the vicinity of 280 Herkimer Street in the Bedford-Stuyvesant neighborhood of Brooklyn. During the murder, SKINNER and BROOKS shot Cardenas over 20 times. SKINNER and BROOKS committed the murder in furtherance of a conspiracy to distribute more than five kilograms of cocaine.
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SKINNER, 51, and BROOKS, 51, each pled guilty to one count of conspiring to distribute cocaine and crack cocaine, which carries a maximum prison term of 20 years. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the New York City Police Department’s Cold Case Homicide Squad and the Special Agents of the U.S. Attorney’s Office for the Southern District of New York.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Andrew K. Chan, Adam S. Hobson, and Frank J. Balsamello are in charge of the prosecution.
Three Directors Charged in Federal Indictment Alleging Criminal Conspiracies at Failed Chicago BankRead the Press Release
CHICAGO — An ongoing federal investigation into the failure of Washington Federal Bank for Savings in Chicago has resulted in criminal charges against three former members of the bank’s Board of Directors who allegedly conspired to obstruct regulators and falsify bank records.
Washington Federal was closed in December 2017 after the Office of the Comptroller of the Currency determined that the bank was insolvent and had at least $66 million in nonperforming loans. Several former Washington Federal employees, including the bank’s Chief Financial Officer and Treasurer, were previously indicted for allegedly conspiring with an Illinois attorney – ROBERT M. KOWALSKI, of Chicago – and other individuals to embezzle money from the bank. On Tuesday, a federal grand jury in Chicago returned a 37-count superseding indictment that added four new defendants, including the three former Board members, bringing the total number of charged defendants to fourteen.
The three former Board members charged in the superseding indictment are WILLIAM M. MAHON, 55, of Chicago, JANICE M. WESTON, 63, of Orland Park, Ill., and GEORGE F. KOZDEMBA, 71, of Fort Myers, Fla. Mahon, Weston, and Kozdemba are charged with conspiracy to falsify bank records and to deceive and obstruct the OCC. Mahon also faces tax charges for allegedly willfully filing false income tax returns.
The fourth newly charged defendant is Robert Kowalski’s brother, real estate developer WILLIAM A. KOWALSKI, 56, of Chicago, who is charged with conspiracy to embezzle bank funds.
Arraignments in U.S. District Court in Chicago have not yet been scheduled.
The superseding indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jay N. Lerner, Inspector General of the FDIC’s Office of Inspector General; Justin Campbell, Special Agent-in-Charge of IRS Criminal Investigation in Chicago; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Catherine Huber, Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General; Michael Powell, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General in Chicago; Sally Luttrell, Assistant Inspector for Investigations of the Department of the Treasury, Office of Inspector General; and Kathryn B. Richards, Chicago Housing Authority Inspector General. Valuable assistance was provided by the City of Chicago Inspector General’s Office and the U.S. Trustee Program. The government is represented by Assistant U.S. Attorneys Brian Netols, Michelle Petersen, and Jeremy Daniel, and Special Assistant U.S. Attorney Jeffrey Snell.
The superseding indictment alleges that the bank’s former Vice President - JAMES R. CROTTY, of Tinley Park, Ill. – and two other employees made false entries and documents in Washington Federal’s records to support insider loans to Mahon and others. The employees – former Corporate Secretary JANE V. IRIONDO, of Boise, Idaho, and former loan officer CATHY M. TORRES, of Chicago – allegedly altered and caused to be altered appraisals for two properties owned by Mahon that served as collateral for two mortgages at Washington Federal. The false items on the altered appraisals include inflated appraisal values and inflated values for the listed comparable sales, the indictment states. The superseding indictment also alleges that Mahon concealed a loan he received from Washington Federal’s president in applications for loans from Washington Federal.
The new charges allege that when the OCC was evaluating Washington Federal’s loan portfolio prior to its failure, Crotty, Mahon, Weston, and Kozdemba made and caused to be made false entries in bank records and provided them to the OCC with the intent to deceive the agency and obstruct its examination. The defendants also falsified records to make it appear that Washington Federal was operating in compliance with banking rules and internal policies and controls, the indictment states.
In addition to the new defendants and charges, the superseding indictment renews the charges previously filed against the other defendants. Those charges allege a conspiracy to embezzle at least $31 million in bank funds. Crotty and other bank employees allegedly transferred bank funds to Robert Kowalski and other individuals outside the bank without all of the required documentation and often without any documentation whatsoever. One of the individuals outside the bank – real estate developer BOGUSLAW KASPROWICZ, of Burbank, Calif. – allegedly embezzled $14.3 million, at least $1.6 million of which was used by Kasprowicz for the benefit of the bank’s former president, who has since died and is not charged in the indictment. Kasprowicz allegedly paid credit card accounts in the name of the bank president or an entity associated with him, and also made payments to another bank for a loan on the purchase of a $450,000 Sea Ray powerboat called “Expelliarmus.”
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Three Coconspirators in a Paycheck Protection Program Loan Scheme Plead GuiltyRead the Press Release
In the last week, three women who were alleged to have applied for and received almost $800,000 in Paycheck Protection Program loans guaranteed by the Small Business Administration under the CARES Act have pleaded guilty in federal court, announced Acting U.S. Attorney Clint Johnson.
Leader of the scheme Aleta Necole Thomas, 43, pleaded guilty to two counts of making false statements to a financial institution. Katrina West, 38, and Pepper Jones, 42, pleaded guilty to false statement. In total, the defendants will have to pay restitution in the amount of $795, 158.50. The government previously seized $209, 991.11 from bank accounts held by Thomas pursuant to federal seizure warrants, which will go toward restitution.
“For more than a year, Aleta Thomas applied for and secured Paycheck Protection Program loans under false pretenses,” said Acting U.S. Attorney Clint Johnson. “The nearly $800,000 of taxpayer money Thomas and her accomplices stole should have gone to legitimate small business owners serving and economically enhancing their communities. The U.S. Attorney’s Office and our federal law enforcement partners will investigate and prosecute anyone who misdirects federal emergency assistance in order to illegally enrich themselves.”
“The actions of the defendants sought personal gain at the expense of taxpayers and eligible small businesses,” said Inspector General Hannibal “Mike” Ware. “OIG will aggressively pursue fraud in the PPP and other SBA programs aimed at assisting the nation’s small businesses during the pandemic. I want to thank the U.S. Attorney’s Office for its leadership and dedication to pursuing justice.”
“Those who defraud the federal government of pandemic relief funds will be vigorously pursued and held accountable for their actions,” said Cory Nootnagel, Acting Special Agent in Charge, Western Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection. “I commend our agents and their federal law enforcement partners for their hard work and persistence, which ultimately led to this result.”
In her plea agreement, Thomas stated that on May 27, 2020, she submitted false statements and reports to Cross River Bank when she applied for a Paycheck Protection Program loan. Thomas submitted a borrower application form falsely stating “Coming Correct Community Ministry” had an average monthly payroll of $35,000 and was in operation since Feb. 15, 2020. Thomas further claimed that she had 26 employees for whom she paid payroll taxes or independent contractors as reports in IRS Form 1099-MISC. Thomas also falsely certified that all information in the application and supporting documents was correct and submitted documentation that included forged bank statements and false 2019 IRS Schedule C (Form 1040).
Thomas further stated that on June 16, 2020, she submitted a false statements and reports to First Electronic Bank when she applied for another Paycheck Protection Program loan where she made similar claims.
West admitted that on March 25, 2021, she knowingly made false statements and affirmed their truthfulness when applying for a Paycheck Protection Program loan from Fountainhead Commercial Capital, a matter within the jurisdiction of the U.S. Small Business Administration. In her application and supporting documents, she claimed she owned a small business that was in operation on Feb. 15, 2020, with a gross annual income of $100,000.
Jones admitted that on March 16, 2021, she knowingly made false statements and affirmed their truthfulness when applying for a Paycheck Protection Program loan from Harvest Small Finance, LLC, a matter within the jurisdiction of the U.S. Small Business Administration. In her application and supporting documents, Jones claimed that in 2019, she owned a small business that had been in operation since Feb. 15, 2020, with an annual gross income of $100,000.
The Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection Office of Inspector General; U.S. Department of Treasury Inspector General for Tax Administration; Small Business Administration Office of Inspector General, and the Federal Bureau of Investigation are the investigative agencies. Assistant U.S. Attorneys Kristin Harrington and Cymetra Williams are prosecuting the case.
To learn more about the Justice Department’s COVID response, visit: https://www.justice.gov/coronavirus. For further information on the Criminal Division’s enforcement efforts on PPP fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/ppp-fraud.
To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-for
Texas Woman Convicted of COVID-19 Relief FraudRead the Press Release
A federal jury convicted a Texas woman today for defrauding the Paycheck Protection Program (PPP) of over $1.9 million in loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents and evidence presented at trial, Lola Shalewa Barbara Kasali, 24, of Houston, submitted two fraudulent loan applications to two different lenders on behalf of her companies, Lola’s Level and Charm Hair Extensions. Through these loan applications, Kasali sought over $3.8 million in PPP loan funds. Kasali falsely represented the number of employees and payroll expenses in each of the PPP loan applications. To support these applications, Kasali also submitted fraudulent tax records. Kasali ultimately received over $1.9 million in PPP loan funds. The Justice Department, along with its law enforcement partners, seized the funds that Kasali fraudulently obtained.
Kasali was convicted of two counts of making false statements to a financial institution and two counts of bank fraud. She is scheduled to be sentenced on Feb. 25, 2022, and faces a maximum penalty of 30 years in prison for each count of conviction. 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; Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) – Central Region; Special Agent in Charge Sharon Johnson of the Small Business Administration Office of Inspector General (SBA-OIG) – Central Region; and Acting Inspector in Charge Dana Carter of the U.S. Postal Inspection Service (USPIS) – Houston Division made the announcement.
FHFA-OIG, SBA-OIG, and the USPIS investigated the case.
Assistant Chief Jonathan Robell of the Criminal Division’s Fraud Section and Trial Attorney Matthew Grisier of the Criminal Division’s Money Laundering and Asset Forfeiture Section are prosecuting the case, with assistance from Assistant U.S. Attorney Jim McAlister of the U.S. Attorney’s Office.
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.
Suburban Pittsburgh Man Sentenced to More than 5 Years in Prison for Violating Federal Firearms and Explosives LawsRead the Press Release
PITTSBURGH - A former resident of Whitehall, Pennsylvania, has been sentenced in federal court to five years and four months (64 months) of incarceration, to be followed by three years of supervised released on his conviction of violating federal firearms and explosives laws, United States Attorney Cindy K. Chung announced today.
United States District Judge William S. Stickman IV imposed the sentence on Kurt Cofano, 34, formerly of Pittsburgh, PA 15227.
According to the information presented to the court, on July 9 and July 10, 2020, Cofano was in possession of unregistered destructive devices. The court was also advised that from May 2020 through July 2020, Cofano knowingly and unlawfully and without registering and obtaining approval made destructive devices.
Specifically, the court was advised that on July 9, 2020, Cofano was driving his vehicle, observed a Mt. Lebanon police car, and waved the police car over to him. When police approached Cofano’s vehicle, they observed weapons in plain view. Cofano stated that he had M80 type devices in his vehicle, as well as firearms. Local police sought and obtained a search warrant for the vehicle. They recovered, among other things, components for making destructive devices such as detonators, triggers, and fuses; short-barreled long guns; ammunition; and marijuana. Federal search warrants were sought and obtained for Cofano’s residence, wherein 14 improvised grenades and nine devices labeled “M101” as well as components for making destructive devices; and marijuana and drug paraphernalia were recovered.
“I commend our law enforcement partners who worked seamlessly to avert a potential tragedy on July 9, 2020,” said U.S. Attorney Chung. “They had the knowledge, the training, the equipment and the commitment to render the defendant’s numerous explosive devices safe. We could not have brought this case without the quick action of our local partners.”
“This defendant was in possession of very dangerous weapons and appeared intent to use them,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “This type of behavior places our entire community in danger. I commend the outstanding work of our local, state, and federal partners who acted swiftly and were able to arrest this individual before any harm could be done. I would also like to acknowledge the dedicated work of the US Attorney’s Office for prosecuting this case.”
“The cooperation between local and federal agencies brought this potentially tragic threat to a quick and safe resolution,” said Allegheny County Police Supt. Chris Kearns. “The strong working relationships show in these situations.”
: “The successful investigation and prosecution of this case epitomizes a true team effort amongst federal, state, and local authorities,” said Mt. Lebanon Police Chief Aaron V. Lauth. “Everything worked as it should and a dangerous situation was resolved without harm to the community.""The Whitehall Police Department truly appreciates the collective efforts of everyone involved in this investigation," said Whitehall Police Chief Jason Gagorik. We are especially thankful for the community members that alerted us to Mr. Cofano's suspicious behaviors. This investigation once again reminds us that the public can be the best eyes and ears of law enforcement. So please remember, when you see something suspicious, do not hesitate to say something to the proper authorities."
U.S. Attorney Chung and Assistant United States Attorney Jonathan D. Lusty prosecuted this case on behalf of the government.
The Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the prosecution of Kurt Cofano. The Mt. Lebanon Police Department, the Whitehall Police Department, the Allegheny County Police Department and the Pittsburgh Bureau of Police provided substantial assistance with the investigation.
Statement Regarding the Investigation of Deceased Caroline County Circuit Judge Jonathan NewellRead the Press Release
Baltimore, Maryland – 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; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; and Dorchester County State’s Attorney William H. Jones and Caroline County State’s Attorney Joe Riley provided the following statement regarding the investigation of Jonathan Newell:
A federal criminal complaint was signed on September 9, 2021, and unsealed on September 10, 2021, that charged Jonathan Newell with sexual exploitation of a minor to produce child pornography. Following Newell’s suicide on September 10, 2021, the investigation continued. Investigators have determined that there were no other individuals involved in the alleged exploitation and that Newell did not distribute any of the images.
The criminal complaint is publicly available, Case No. 1:21-mj-02533-JMC.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
If you or someone you know would like assistance obtaining counseling regarding this matter, please contact the FBI Baltimore Field Office at (410) 265-8080.
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Serial Fraudster Pleads GuiltyRead the Press Release
Greenbelt, Maryland – Jude Egbufoama, a/k/a Chino, age 37, of Beltsville, Maryland, pleaded guilty today to conspiracy to commit bank fraud and bank fraud, in connection with two separate fraud schemes.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Matthew R. Stohler of the United States Secret Service - Washington Field Office; and Postal Inspector in Charge Daniel A. Adame of the U.S. Postal Inspection Service - Washington Division.
According to his guilty plea, between September 2018 and February 2019, Egbufoama conspired with William Gunn, Trishan Deva, Montee Gibson, and other co-conspirators to execute a bank fraud scheme, taking over and withdrawing funds from individual victims’ accounts. Egbufoama also admitted that from January 2020 to November 2020, he engaged in a second fraud scheme, stealing checks from the U.S. mail, altering and depositing the stolen checks into bank accounts opened for that purpose (the drop accounts), then obtaining and depositing the fraudulent proceeds of the stolen and altered checks into Egbufoama’s personal checking account before the fraud was discovered.
Bank Fraud Scheme
Specifically, as detailed in the plea agreement, at the direction of Egbufoama and Co-conspirator 3, Gibson and Deva, who were bank employees, accessed the bank’s internal signature card database to retrieve account information for accounts with high balances (“the victim accounts”). Using the internal bank database, Gibson and Deva unlawfully acquired the victims’ account numbers and the account holders’ personal identifying information, which they provided to co-conspirators, including Egbufoama and Co-conspirator 3. Egbufoama and Co-conspirator 3 then produced or obtained fraudulent identification cards that Gunn and Co-Conspirator 2 used to conduct account takeovers of the victim accounts by going to branch offices of the bank in Montgomery, Baltimore, and Anne Arundel Counties in Maryland and making large withdrawals of cash and/or cashier’s checks. The cashier’s checks were later deposited into business accounts opened under the names of shell companies controlled by co-conspirators. The fraudulent identification documents that Egbufoama produced or obtained displayed the personally identifiable information of the victim account holders, but the photographs of the co-conspirators who entered the bank to withdraw the funds.
On at least 14 occasions between October 20, 2018 and February 14, 2019, the conspirators conducted account takeover transactions involving at least seven individual victims and several companies. In total, the intended loss reasonably foreseeable to Egbufoama and within the scope of the bank fraud scheme was between $550,000 and $1,500,000. The intended loss was at least $780,550 and the actual loss suffered by the victims as a result of the bank fraud scheme was at least $393,858.
Check Fraud Scheme
According to the plea agreement, Egbufoama also conspired with others to steal checks from the U.S. Mail, alter and deposit the stolen checks into drop accounts, and then purchase U.S. Postal money orders using debit cards tied to the drop accounts and cashier’s checks drawn on the drop accounts. Many of the money orders and cashiers’ checks were later deposited into Egbufoama’s checking account.
For example, on April 13, 2020, Co-conspirator 3 deposited a stolen and altered check in the amount of $50,000 into Drop Account 1 held in the name of Entity 1. Using the debit card linked to Drop Account 1, co-conspirators used approximately $26,000 of the proceeds of the stolen check to purchase multiple U.S. Postal money orders made payable to Egbufoama in denominations up to $1,000, each of which was deposited to Egbufoama’s checking account between April 21, 2020, and May 20, 2020.
Similarly, on February 4, 2020, Egbufoama deposited a $5,000 stolen and altered check to Drop Account 2 held in the name of Individual 1. On February 15, 2020, Egbufoama deposited a $1,000 U.S. Postal money order into his checking account that was purchased with the partial proceeds of the stolen check.
In total, as a result of the check fraud scheme, at least approximately $94,515 in U.S. Postal money orders traceable to the proceeds of stolen and altered checks were deposited into Egbufoama’s checking account between January 2020 and November 2020.
The proceeds of stolen and altered checks were also withdrawn from the drop accounts via cashier’s checks and personal checks made payable to Egbufoama that were later deposited into Egbufoama’s checking account.
For example, on June 4, 2020, a stolen and altered check in the amount of $350,978 was deposited into Drop Account 5 held in the name of Entity 2. On June 22, 2020, Egbufoama deposited into his personal checking account, a business check in the amount of $80,000 payable to himself that was funded with the partial proceeds of the stolen and altered check.
According to the plea agreement, after depositing the U.S. Postal money orders and cashier’s and personal checks into his checking account, Egbufoama spent a portion of the proceeds on personal expenses and transferred the remaining fraud proceeds to his savings account. Egbufoama admitted in his plea agreement that between January 2020 and November 2020, he transferred approximately $109,100 from his checking to his savings account.
In total, as a result of the check fraud scheme, at least approximately $116,750 in cashier’s checks and personal checks made payable to Egbufoama traceable to the proceeds of stolen and altered checks were deposited into his personal checking account between February 2020 and September 2020. The intended loss reasonably foreseeable to Egbufoama and within the scope of the check fraud scheme was between $550,000 and $1,500,000. The intended loss attributable to the stolen checks and money orders involved in the check fraud scheme was at least $705,109.68, and Egbufoama obtained at least $211,265 in proceeds as a result of the check fraud scheme.
On March 29, 2021, law enforcement executed search and seizure warrants at Egbufoama’s residence and on his checking and savings accounts. The government seized a total of $172,186 from Egbufoama’s savings and checking accounts.
Upon entering the residence to execute the search warrant, federal agents saw Egbufoama attempting to flush multiple checks down the toilet in the bathroom of the residence. Egbufoama locked himself in the bathroom and agents broke into the bathroom, ordered Egbufoama to stop destroying evidence, and arrested him.
Law enforcement seized the following items from the residence: hundreds of personal checks all bearing unidentified names that are suspected to be victims of mail theft; additional checks payable to various entities that appear to be counterfeit; approximately $51,463 in cash; money orders, including Postal money orders; debit and credit cards displaying names of suspected identity theft victims; and blank check stock. Law enforcement also seized five Apple iPhones, laptop and desktop computers, tablets, two printers, a camera with two SD card and a USB drive. One of the printers was loaded with blank check stock at the time of seizure.
Additionally, law enforcement seized firearms and ammunition, including: a .380 caliber handgun; a military style semi-automatic pistol manufactured without a serial number equipped with a high-capacity magazine that could chamber 300AAC ammunition; and six rounds of.380 caliber ammunition. Egbufoama admitted that he possessed the firearms and ammunition in connection with the fraud schemes.
Egbufoama faces a maximum sentence of 20 years in federal prison for the conspiracy and for bank fraud. U.S. District Judge Paula Xinis has scheduled sentencing for March 10, 2022 at 10:00 a.m. As part of his plea agreement, Egbufoama agreed to forfeit to the United States $223,649 in fraud proceeds and money orders totaling $1,500. Egbufoama also agreed to abandon all interests in the seized firearms and ammunition and the recovered electronics. Egbufoama also will be required to pay restitution in the full amount of the victims’ losses, which is at least $393,858 for the bank fraud scheme and up to $705,109.68 for the check fraud scheme.
Co-conspirators William Gunn, age 59, of Upper Marlboro, Maryland; Trishan Deva, age 25, of Adelphi, Maryland; and Montee Gibson, age 33, of Beltsville, Maryland, have all pleaded guilty to their roles in the fraud scheme and are awaiting sentencing.
United States Attorney Erek L. Barron commended the U.S. Secret Service and the U.S. Postal Inspection Service for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Kelly O. Hayes and Jennifer L. Wine, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, or to report fraud, please visit www.justice.gov/usao-md, https://www.justice.gov/usao-md/community-outreach and https://www.justice.gov/usao-md/report-fraud.
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Schenectady Man Pleads Guilty to Drug Trafficking ChargesRead the Press Release
ALBANY, NEW YORK – James King, age 33, of Schenectady, New York, pled guilty today to possessing with intent to distribute methamphetamine, a Schedule II controlled substance.
The announcement was made by United States Attorney Carla B. Freedman; Acting Special Agent in Charge Keith Kruskall, U.S. Drug Enforcement Administration (DEA), New York Division; and Matthew Scarpino, Acting Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his guilty plea, King admitted that between February and March 2021, he sold methamphetamine twice to another person and possessed methamphetamine with intent to distribute on March 17, 2021 when he was arrested.
King faces at least 10 years and up to life in prison, a fine of up to $10 million, and a post-imprisonment term of supervised release of at least 5 years and up to life when Chief U.S. District Judge Glenn T. Suddaby sentences him on April 28, 2022. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by DEA with assistance from HSI and the Guilderland Police Department, and is being prosecuted by Assistant U.S. Attorneys Alexander P. Wentworth-Ping and Dustin Segovia.
Saugus Woman Pleads Guilty to Bank Fraud ConspiracyRead the Press Release
BOSTON – A Saugus woman pleaded guilty today to her role in a bank fraud scheme that fraudulently obtained more than $300,000 from customer accounts.
Emelyn Clough, 24, pleaded guilty to one count of bank fraud conspiracy. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for March 30, 2022. The defendant was charged on March 15, 2021.
This case arose out of an investigation into schemes to withdraw funds, in the form of checks and cash, from customer accounts at several financial institutions. Organizers of the scheme paid individuals to request bank withdrawals from bank customers’ accounts using falsified identification documents in the names of the bank customers. Bank tellers were also recruited to accept the falsified identification documents without scrutiny and facilitate the withdrawals. The fraudulently obtained funds were then negotiated through accounts at other financial institutions that had been opened in the names of fictitious business entities.
Clough opened a bank account in the name of a fictitious business using a counterfeit driver’s license and helped recruit a TD Bank teller to participate in this scheme. Thereafter, between June and November 2017, co-conspirators utilized the bank account Clough opened and the bank teller Clough recruited to fraudulently obtain more than $300,000 from customer accounts.
The charge of conspiracy to commit bank fraud provides for a sentence of up to 30 years in prison, up to five years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorneys Leslie A. Wright and Christopher J. Markham of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
Salem Man Pleads Guilty to Conspiracy to Distribute MethamphetamineRead the Press Release
CONCORD - Brian Perez, 31, of Salem, pleaded guilty on Tuesday in federal court to conspiracy to distribute methamphetamine, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on May 11, 2021, agents opened a suspicious package sent by UPS from the greater Los Angeles, California area to an unspecified apartment at an address in Salem. The box contained over two kilograms of methamphetamine. Additional shipping records revealed that since April 10, 2021, this was the ninth package sent from the Los Angeles area to the same address in Salem.
On May 19, 2021, investigators intercepted another suspicious UPS package destined for the Salem address. After obtaining a search warrant, they discovered over 2.2 kilograms of methamphetamine. The contents were replaced with an innocuous filler and an undercover officer delivered the package to the front foyer of the Salem address. Later that day agents observed a van arrive at the Salem address. Perez entered the foyer and examined the package. Perez then left the foyer and entered the van. Investigators detained Perez and his passenger. During a safety sweep of the van, investigators observed the subject package in plain view. Perez had a receipt on his person showing a receipt for a parcel that was destined for Miami Beach. The parcel was located and searched pursuant to a warrant. Among other items, it contained a clear plastic bag containing orange pills that contained approximately 363 grams of methamphetamine.
Perez is scheduled to be sentenced on March 17, 2022.
“Drug traffickers are shipping large quantities of methamphetamine to the Granite State for distribution,” said Acting U.S. Attorney Farley. “These traffickers are seeking to profit from the sale of methamphetamine without regard to the drug’s harmful impact on our community. As this case demonstrates, we are working closely with our law enforcement partners to identify and prosecute the drug dealers who are bringing this dangerous substance into New Hampshire and selling it in our local communities.”
This matter was investigated by the Drug Enforcement Administration, New Hampshire State Police and Salem Police Department. The case is being prosecuted by Assistant U.S. Attorney Joachim H. Barth.
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Rocky Mount Bloods Gang Member Sentenced to 65 Months in Prison for Firearms and Heroin Distribution ChargesRead the Press Release
RALEIGH, N.C. – A Rocky Mount man was sentenced yesterday to 65 months in federal prison for possessing a firearm as a convicted felon and distributing fentanyl, heroin, and cocaine. On September 17, 2021, Cedrick Charles Williams pled guilty to Conspiracy to Distribute and Possess with the Intent to Distribute Heroin, Possession of a Firearm by a Convicted Felon, Possession with the Intent to Distribute a Quantity of Heroin and Cocaine, Distribution of a Quantity of Heroin, Distribution of a Quantity of Heroin and Aiding and Abetting, and two counts of Possession with the Intent to Distribute a Quantity of Heroin and Aiding and Abetting.
According to court documents and other information presented in court, between November 2019 and February 2020, the Nash County Sheriff’s Office, the Rocky Mount Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), investigated the drug trafficking activities of Williams, 33, a validated member of the Bloods street gang.
On November 22, 2019, detectives with the Rocky Mount Police Department observed Williams arriving by car at a house in Rocky Mount known for illegal narcotics sales. After conducting what appeared to be a drug transaction, Williams left the residence. Officers with the Rocky Mount Police Department stopped the vehicle for multiple traffic violations and encountered Williams, who refused to provide identification and became increasingly uncooperative. Officers conducted a probable cause search of the vehicle and recovered $4,891 in cash, and a loaded handgun. Williams was also found to be in possession of over 20 grams of cocaine and 21 individual doses of a mixture of heroin and fentanyl.
Between February 5 and 17, 2020, narcotics investigators with the Nash County Sheriff’s Office utilized a confidential informant to purchase 28 individual doses of heroin from Williams. Law enforcement quickly learned that Williams made frequent trips to Henderson, North Carolina, to obtain narcotics. On February 20, 2020, deputies with the Nash County Sheriff’s office stopped William’s vehicle during one of these trips as he was returning to Rocky Mount from Henderson. Also present in the vehicle were William’s wife and two minor children. Investigators recovered 100 doses of a mixture of heroin and fentanyl from Williams.
The next day, on February 21, 2020, narcotics detectives with the Rocky Mount Police Department stopped Williams and his wife on another trip back from Henderson. Law enforcement recovered 201 doses of a mixture of heroin and fentanyl from Williams.
Prior to November 2019, Williams had prior felony convictions for Conspiracy to Commit Breaking and Entering and Larceny, and Discharging a Firearm into an Occupied Property, and was prohibited from possessing firearms. Williams also had prior convictions for Assault on a Government Official, Assault on a Female, and Assault and Battery.
U.S. Attorney Michal F. Easley, Jr. commented: “The Department of Justice and the United States Attorney’s Office for the Eastern District of North Carolina are aggressively combatting drug traffickers and violent gang members. This sentence reflects the coordinated efforts by dedicated federal and local law enforcement agents to protect our community from those who sell heroin and fentanyl on our streets.”
Nash County Sheriff Keith Stone commented, “The collaboration and partnership combined with the exceptional training and dedication the deputies and investigators displayed in this case and others is what reduces crime and makes our communities safer.”
"Our mission here at the Rocky Mount Police Department is to improve the quality of life in the city of Rocky Mount by building partnerships to reduce crime. We value the continued partnership with our Federal Law Enforcement agencies, who assist us in creating a safe environment for all citizens who reside and visit Rocky Mount, NC. The Rocky Mount Police Department will continue to work closely with Federal, State, and Local law enforcement agencies while providing the highest level of police services to the citizens of Rocky Mount," said Rocky Mount Police Chief Robert Hassell.
Michael F. Easley, Jr., United States Attorney for the Eastern District of North Carolina made the announcement after sentencing by Senior U.S. District Judge W. Earl Britt. The Nash County Sheriff’s Office, the Rocky Mount Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case and Assistant U.S. Attorney Aakash Singh 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. 5:20-CR-468-BR.
Rochester Man Sentenced to 15 Years in Prison for Distributing MethamphetamineRead the Press Release
ST. PAUL, Minn. – A Rochester man was sentenced to 180 months in prison followed by 10 years of supervised release for distribution of methamphetamine, announced Acting U.S. Attorney Charles J. Kovats.
According to court documents, from February 2020, through March 2020, Tyler Benjamin Batson, 36, was a part of a conspiracy to distribute methamphetamine in Rochester and surrounding southeastern Minnesotan communities. On March 4, 2020, a Minnesota State Trooper stopped Batson and his passenger who were traveling in a rented vehicle back to Rochester. Batson was returning from the Twin Cities area after meeting with his source of methamphetamine supply. After a canine sniff of the vehicle, officers found a small black bag on the rear passenger side floorboard. Inside the bag, the State Trooper recovered approximately two pounds of methamphetamine. Agents arrested both Batson and his passenger. On September 18, 2020, Batson pleaded guilty to one count of conspiracy to distribute methamphetamine. Baston was sentenced yesterday by U.S. District Judge Donovan W. Frank
This case is the result of an investigation conducted by the Drug Enforcement Administration, the Minnesota Bureau of Criminal Apprehension, the Minnesota State Patrol, the Rochester Police Department, the Southeast Drug and Violent Crime Task Force, and the Olmsted County Sheriff’s Office.
This case was prosecuted by Assistant U.S. Attorney Allen A. Slaughter Jr.
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Repeat Drug Offender Sentenced to Federal PrisonRead the Press Release
A Cedar Rapids man who was convicted of his second federal drug offense was sentenced today to more than 16 years in federal prison.
Curtis Lee Prescott, age 53, from Cedar Rapids, Iowa, received the prison term after a June 28, 2021 guilty plea to conspiracy to distribute a controlled substance after a conviction for a serious drug offense.
At the guilty plea, Prescott admitted he was involved in distributing methamphetamine between January 2019 and July 2020. Prescott’s criminal history includes felony convictions in seven separate cases with a total of twelve separate felony offenses, including a federal conviction for manufacturing methamphetamine. He has numerous misdemeanor offenses as well, including a conviction for domestic assault involving strangulation.
Prescott was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Prescott was sentenced to 197 months’ imprisonment. He must also serve a ten-year term of supervised release after the prison term. There is no parole in the federal system.
Prescott is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Cedar Rapids Police Department; the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Linn County Sheriff’s Office; the Marion Police Department; the Iowa Division of Narcotics Enforcement; and the Drug Enforcement Administration
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-cr-110-CJW-MAR.
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Reno Man Sentenced for Selling Hundreds of Counterfeit Oxycodone Pills Laced with FentanylRead the Press Release
RENO, Nev. – A Reno man was sentenced yesterday to 34 months in prison after pleading guilty to selling hundreds of counterfeit oxycodone pills containing the powerful synthetic opioid fentanyl.
According to court documents, from June 12 to September 2, 2020, Octavio Mendoza Jr. (24) sold counterfeit oxycodone pills stamped with “M30” containing fentanyl. On September 6, law enforcement arrested Mendoza after observing him using drugs in a vehicle in downtown Reno. During a search of the vehicle, law enforcement found approximately 374 counterfeit oxycodone pills containing fentanyl.
Mendoza pleaded guilty in November 2021 to seven counts of distribution of fentanyl and one count of possession with intent to distribute 40 grams or more of fentanyl. In addition to the prison term, U.S. District Judge Howard D. McKibben sentenced Mendoza to three years of supervised release.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI made the announcement.
This case was investigated by the FBI, the Northern Nevada Safe Streets Task Force, Reno Police Department, Sparks Police Department, Washoe County Sheriff’s Office, Nevada Highway Patrol, Carson City Sheriff’s Office, Nevada Gaming Control Board, and the Douglas County Sheriff’s Office. Assistant U.S. Attorney Andolyn Johnson prosecuted the case.
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Recidivist Fraudster and Co-Conspirator Charged in Covid-19 Relief Loan, Identity Theft, and Money Laundering SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Keith A. Bonanno, Special Agent in Charge of the Department of Justice Office of the Inspector General (“DOJ OIG”) Cyber Investigations Office, announced today that an Indictment was filed in Manhattan federal court charging ADEDAYO ILORI and CHRIS RECAMIER for a fraudulent scheme to obtain more than $7 million in Government-guaranteed loans designed to provide relief to small businesses during the COVID-19 pandemic. In connection with loan applications for relief available from the Paycheck Protection Program (“PPP”) and the Economic Injury Disaster Loan (“EIDL”) Program, ILORI and RECAMIER falsely represented to the Small Business Administration (“SBA”) and private lenders that they operated a number of companies, used stolen identities, and submitted falsified tax documents. This case has been assigned to U.S. District Court Judge Mary Kay Vyskocil. RECAMIER and ILORI are both in custody.
U.S. Attorney Damian Williams said: “As alleged, Adedayo Ilori has made quite a habit of committing loan fraud. While previously facing similar charges in a separate case involving loan and identity fraud – to which Ilori pled guilty in April of this year – he is once again alleged to have committed similar conduct to defraud the SBA and private lenders in an attempt to steal much-needed COVID-19 financial relief. Ilori and his co-defendant, Chris Recaimer, now face criminal charges for attempting to steal over $7 million in funds specifically designated to assist small businesses struggling with financial hardships from the worldwide COVID pandemic.”
DOJ OIG Special Agent in Charge Keith A. Bonanno said: “Ilori and Recamier allegedly stole the identities of individuals and companies and fraudulently obtained over a million dollars intended to help those suffering from hardship due to the COVID-19 pandemic. The Pandemic Response Accountability Committee COVID-19 Task Force is dedicated to rooting out these kinds of schemes and bringing the fraudsters to justice.”
According to the Indictment unsealed today in Manhattan federal court, the Complaint filed against RECAMIER on October 8, 2021, and filings made on public court dockets:[1]
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses through the SBA’s PPP. Pursuant to the CARES Act, the amount of PPP funds a business is eligible to receive is determined by the number of employees employed by the business and its average payroll costs. Businesses applying for a PPP loan must provide documentation to confirm that they have previously paid employees the compensation represented in the loan application. The CARES Act also expanded the separate EIDL Program, which provides small businesses with low-interest loans of up to $2 million that can provide vital economic support to help overcome the temporary loss of revenue they are experiencing due to COVID-19. To qualify for an EIDL loan under the CARES Act, the applicant must have suffered “substantial economic injury” from COVID-19.
From at least in or about August 2020 through at least in or about October 2021, ILORI and RECAMIER, prepared to apply, and applied for numerous PPP and EIDL loans. In applying for these loans, ILORI and RECAMIER claimed stolen identities of third parties. In the role of these assumed identities, ILORI and RECAMIER claimed full control of a number of companies, which they purported, cumulatively, employed more than 200 people and paid more than $3.2 million in monthly wages. In reality, they did not operate these companies. In submitting these applications ILORI and RECAMIER, among other things, submitted falsified tax documents that were never actually filed with the Internal Revenue Service.
ILORI and RECAMIER attempted to obtain over approximately $7.5 million in PPP and EIDL program funds, and successfully obtained more than $1 million as a result of their scheme. ILORI and RECAMIER transferred the majority of these funds toward (1) cryptocurrency investments, (2) the purchase of stocks, (3) cash withdrawals, and (4) personal expenses. The investment accounts were also opened by ILORI and RECAMIER in the stolen identities of third parties.
ILORI committed these offenses while facing charges in a separate case filed in the Southern District of New York involving fraud, identity theft, and money laundering in United States v. Ilori, 20 Cr 378 (LJL). As part of that case, ILORI pled guilty on April 8, 2021, to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering, and is currently awaiting sentencing.
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ADEDAYO ILORI, 42, of Queens, New York, and CHRIS RECAMIER, 58, of New York, New York, are charged with (1) major fraud against the United States, which carries a maximum sentence of 10 years in prison; (2) conspiracy to commit wire and bank fraud, which carries a maximum sentence of 30 years in prison; (3) wire fraud, which carries a maximum sentence of 30 years in prison; (4) bank fraud, which carries a maximum sentence of 30 years in prison; (5) aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison; and (6) conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the investigative work of the DOJ OIG, which conducted the investigation on behalf of the Pandemic Response Accountability Committee (PRAC) COVID-19 Task Force.[2] Mr. Williams also thanked the U.S. Secret Service, the Drug Enforcement Administration, the New York City Police Department, the Federal Bureau of Investigation, and the Federal Aviation Administration for their assistance in this investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Daniel G. Nessim is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and Complaint, and the description of the Indictment and Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
[2] Created by the CARES Act, the PRAC serves the American public by promoting transparency and facilitating coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC’s 22 member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending.
Rachael S. Rollins Confirmed as United States Attorney for the District of MassachusettsRead the Press Release
BOSTON – The United States Senate has confirmed Rachael S. Rollins as the United States Attorney for the District of Massachusetts. Ms. Rollins is the first Black woman to ever be confirmed as U.S. Attorney in the District. She was nominated by President Joseph R. Biden on July 26, 2021. The District of Massachusetts is one of the oldest United States Attorney’s Offices in the country.
“I am truly humbled by today’s confirmation and deeply honored to have the support and confidence of President Biden, Vice President Harris, Senate Majority Leader Schumer, Senate Judiciary Chair Durbin, and my Senators Elizabeth Warren and Ed Markey. I have dedicated much of my career to public service and as I prepare to assume the role of Massachusetts’s chief federal law enforcement officer, I look forward to continuing to serve this great nation. Leading the U.S. Attorney’s Office is a profound honor, and I pledge to serve with continued zeal and passion for justice,” said Ms. Rollins in response to her confirmation.
“Being the DA has been the highlight of my professional career. I am profoundly grateful to the people of Suffolk County. They put their faith in me and I have worked hard every day to improve the relationship between law enforcement and the communities most impacted by violence and harm. I am proud that Boston remains one of the only major cities in the United States where violent crime, including homicides, is down. As United States Attorney, I will continue to work with my law enforcement and community partners to ensure this trend continues and expands across all of Massachusetts.”
A Massachusetts native and an attorney for more than two decades, Ms. Rollins has served as Suffolk County District Attorney (DA) since 2019. She was the first woman to ever be elected DA in Suffolk County and the first woman of color to ever hold the position of DA in the Commonwealth of Massachusetts.
Prior to serving as Suffolk County DA, Ms. Rollins was the General Counsel for the Massachusetts Department of Transportation and the Massachusetts Bay Transportation Authority. She also served as Chief Legal Counsel to the Massachusetts Port Authority. From 2007 to 2011, Ms. Rollins was an Assistant U.S. Attorney for the District of Massachusetts serving in both the Civil and Criminal Divisions. Earlier in her career, Ms. Rollins was an attorney at Bingham McCutchen LLP, focusing on matters involving complex civil litigation and criminal defense, and from 1999 to 2002 she was a field attorney for the National Labor Relations Board where she investigated unfair labor practices and upheld workers’ rights. Ms. Rollins began her legal career as a clerk for Associate Judge Frederick L. Brown of the Massachusetts Appeals Court.
Ms. Rollins earned a Juris Doctor from Northeastern University School of Law and a Masters in Law from Georgetown University Law Center. She graduated from the University of Massachusetts Amherst in 1994.
Possessing Loaded Handgun and Nearly an Ounce of Meth Sends Drug User to Federal Prison for Two YearsRead the Press Release
A methamphetamine user who illegally possessed a loaded handgun was sentenced today to two years in federal prison.
Timothy James Hensley, age 44, from Martelle, Iowa, received the prison term after an August 16, 2021 guilty plea to one count of being an unlawful drug user in possession of a firearm.
Evidence at a prior hearing showed that on October 19, 2020, Hensley was stopped by a Linn County Sheriff’s Deputy for driving a truck with a license plate that belonged to a different vehicle. During the stop, the Deputy learned that Hensley was barred from driving and had an outstanding warrant for failure to appear for court. During a search of Hensley’s person, the Deputy found a container with methamphetamine. During a search of a backpack found on the passenger’s seat, officers found approximately 25 grams of 100% pure methamphetamine and a loaded .45 caliber handgun.
Hensley was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Hensley was sentenced to 24 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Hensley is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Linn County Sherriff’s Office and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21‑CR‑00036‑CJW-MAR.
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Poplar woman sentenced to 40 months in prison for distributing oxycodone on Fort Peck Indian ReservationRead the Press Release
GREAT FALLS — A Poplar woman who admitted to being a long-time dealer of oxycodone pills on the Fort Peck Indian Reservation was sentenced today to 40 months in prison to be followed by three years of supervised release, U.S. Attorney Leif M. Johnson said.
Kaycee Lynn Menz, 31, pleaded guilty in August to possession with intent to distribute oxycodone and to money laundering.
Chief U.S. District Judge Brian M. Morris presided.
In court documents filed in the case, the government alleged that for more than six years, Menz distributed hundreds of thousands of dollars’ worth of oxycodone on and around the Fort Peck Indian Reservation. When arrested in March, Menz admitted to selling up to 3,000 illegal oxycodone pills over the years, at an average price of $70 per pill. Financial records showed Menz was personally responsible for more than $400,000 in cash deposits and money transfers during the time of the conspiracy.
From about June 2014 through at least May 2020, Menz, and her co-defendant and boyfriend, Jason Tyrell Lee, sold illegal oxycodone pills from a house they rented in Poplar, located on the reservation. Law enforcement learned that Lee resided primarily in Minnesota, Menz primarily lived at the Poplar residence and that Lee supplied Menz with the pills she sold. Investigators interviewed many individuals who witnessed Menz and Lee distributing illegal pills. Some individuals occasionally helped by driving Menz around to conduct sales and by wiring or transferring drug proceeds to individuals in Minnesota. Menz also sent money using transfer services to individuals in Minnesota and asked others to send money on her behalf. Lee pleaded guilty to charges in the case and is pending sentencing.
Assistant U.S. Attorney Ethan R. Plaut prosecuted the case, which was investigated by the Drug Enforcement Administration, FBI, Roosevelt County Sheriff’s Office, Fort Peck Tribes Department of Law and Justice and Montana Highway Patrol.
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Plattsmouth Man Sentenced to 66 Months for Transportation of Child PornographyRead the Press Release
Acting United States Attorney Jan Sharp announced that Jeffrey Fox, age 51, of Plattsmouth, Nebraska, was sentenced today in federal court in Omaha, Nebraska, for transportation of child pornography. United States District Judge Brian C. Buescher sentenced Fox to 66 months of imprisonment and a $20,000 fine. There is no parole in the federal system. After completing his term of imprisonment, Fox will begin a 5-year term of supervised release.
On October 21, 2018, Fox uploaded fifteen images of child pornography to his Yahoo account. On January 7, 2019, agents executed a search warrant on the Yahoo account and located ten instances between October 26, 2017, and January 22, 2018, in which Fox uploaded child pornography to the account. Agents later spoke with Fox and he admitted to sending child pornography to the account.
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 United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Douglas County Sheriff’s Office and the Federal Bureau of Investigation.