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Wednesday 20 October 2021
Gulfport Man Sentenced to 5 Years in Federal Prison for Possession of a Firearm in Furtherance of a Drug Trafficking CrimeRead the Press Release
Gulfport, Miss. – A Gulfport man was sentenced to 60 months in prison for possessing a firearm in furtherance of a drug trafficking crime, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration (“DEA”).
According to court records, Javaris Jamir Ramsey, 23, was a passenger in a vehicle stopped by Gulfport police officers on November 21, 2020. Officers smelled marijuana and inquired as to whether the occupants possessed marijuana. Ramsey then removed a plastic bag containing a green leafy substance from his pocket and surrendered it to the officer. A subsequent search of the vehicle resulted in the discovery of a bag which contained 16 baggies of a green leafy substance, two suspected THC vapor pens, a digital scale, and a stolen Glock Model 22 handgun, which was loaded. One of the suspected vape pens tested positive for Tetrahydrocannabinol.
Ramsey was indicted by a federal grand jury on January 12, 2021. He pled guilty on June 24, 2021, to possession of a firearm in furtherance of a drug trafficking crime.
The case was investigated by the DEA and the Gulfport Police Department, and prosecuted by Assistant United States Attorney Jonathan Buckner.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Gulfport Man Pleads Guilty to Firearm OffenseRead the Press Release
Gulfport, Miss. – A Gulfport man pled guilty today to being an unlawful user of a controlled substance in possession of a firearm, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad Byerley of the Drug Enforcement Administration (“DEA”).
According to court records, on July 27, 2021, law enforcement officers observed Michael Anthony Hamilton, 27, engage in a drug transaction with another individual. Subsequent investigation revealed that Hamilton was in possession of a Taurus, 9mm handgun and oxycodone pills. Hamilton admitted to the habitual use of prescription medication and marijuana.
Hamilton is scheduled to be sentenced on January 21, 2022. He faces a maximum sentence of ten years imprisonment. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the DEA and Gulfport Police Department, and prosecuted by Assistant U.S. Attorney Jonathan Buckner.
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.
Gang Member Admits Role in Bridgeport Courthouse ShootingRead the Press Release
ASANTE GAINES, also known as “Santi,” 24, of Bridgeport, pleaded guilty yesterday before U.S. District Judge Janet Bond Arterton in New Haven to racketeering and attempted murder offenses stemming from his participation in a Bridgeport gang.
Today’s announcement was made by Leonard C Boyle, Acting United States Attorney for the District of Connecticut; Joseph T. Corradino, State’s Attorney for the Fairfield Judicial District; Bridgeport Acting Police Chief Rebeca Garcia; James Ferguson, Special Agent in Charge, ATF Boston Field Division; David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, and Acting U.S. Marshal Lawrence Bobnick.
According to court documents and statements made in court, the FBI, ATF, DEA, U.S. Marshals Service and Bridgeport Police have been investigating multiple Bridgeport-based gangs whose members are involved in narcotics trafficking, murder and other acts of violence. Gaines has been a member of the “Greene Homes Boyz” (“GHB/Hotz”), a gang based in the Charles F. Greene Homes Housing Complex in Bridgeport’s North End, whose members and associates distributed heroin, crack cocaine, marijuana and Percocet pills; committed numerous acts of violence against rival gang members and other individuals, and celebrated their criminal conduct on social media websites such as Facebook and YouTube. GHB/Hotz members and associates also committed acts of intimidation and made threats to deter potential witnesses to their crimes and to protect gang members and associates from detection and prosecution by law enforcement authorities. From approximately 2017 until August 2020, GHB/Hotz members were aligned with members of the “Original North End” (“O.N.E.”), a gang based in the Trumbull Gardens area of Bridgeport, against rival groups in Bridgeport, including the East End, East Side and PT Barnum gangs, as well as 150, which is a geographic gang based on the West Side of Bridgeport.
In pleading guilty, Gaines admitted that he participated in gang-related drug trafficking, and helped plan the retaliation shootings of members of opposition gangs. On January 27, 2020, he assisted GHB/Hotz and O.N.E. members who attempted to kill East End gang members and associates in a brazen afternoon shooting in front of a Bridgeport courthouse. At 12:11 p.m. on that date, Bridgeport Police responded to the area of 172 Golden Hill Street in Bridgeport after a Shot Spotter activation detected approximately 20 shots being fired in front of the state courthouse located there. Upon arrival, investigators discovered that four victims had been shot while sitting inside a black Chevrolet Impala. One victim was shot in the side of his chest and was left paralyzed and a second victim sustained multiple gunshot wounds to his back, shoulder and wrist. The victims’ vehicle had approximately 23 entry bullet holes in the driver’s side and windshield area.
Gaines pleaded guilty to one count of conspiracy to engage in a pattern of racketeering activity, and one count of attempted murder and aiding and abetting, in violation of the Violent Crimes in Aid of Racketeering (“VCAR”) statute. Judge Arterton scheduled sentencing for February 7, 2022, at which time Gaines faces a maximum term of imprisonment of 30 years.
Gaines is detained.
This ongoing investigation is being conducted by ATF, the FBI’s Safe Streets and Violent Crimes Task Forces, DEA, U.S. Marshals Service, Bridgeport Police Department, Connecticut State Police and the Bridgeport State’s Attorney’s Office, with the assistance of the U.S. Postal Inspection Service, Connecticut Forensic Science Laboratory and the Naugatuck Police Department. The case is being prosecuted by Assistant U.S. Attorneys, Jocelyn C. Kaoutzanis, Rahul Kale, Peter D. Markle, Karen L. Peck and Stephanie T. Levick.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN), Project Longevity and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
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.
Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. If a group member elects to engage in gun violence, the focused attention of federal, state and local law enforcement will be directed at that entire group.
OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Fulton Man Sentenced to 50 Years in Prison for Receipt and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Gary Goodale, age 41, of Fulton, New York, was sentenced today to serve 50 years in federal prison for receipt and possession of child pornography, announced United States Attorney Carla B. Freedman and Matthew Scarpino, Acting Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his previous guilty plea, Goodale admitted that he used his personal computer to receive images of child pornography over the internet, and that he possessed child pornography on three electronic devices. A forensic review of Goodale’s cellular telephone and two portable electronic storage devices revealed that all three contained numerous image files depicting child pornography. Goodale also admitted that the images he possessed include sexually explicit photographs of two minors that he produced himself.
Goodale was previously convicted on December 8, 1999, in Oswego County Court for Sodomy in the First Degree in violation of New York Penal Law, Section 130.50(3), which makes it unlawful to engage in deviate sexual intercourse with another person who is less than eleven years old, and was sentenced at that time to 8 years imprisonment.
Senior United States District Judge Thomas J. McAvoy also imposed a lifetime term of supervised release, which will start after Goodale is released from prison, and ordered Goodale to pay a $400 special assessment. Goodale will also be required to register as a sex offender.
Goodale’s case was investigated by Homeland Security Investigations, Syracuse Office with assistance from the New York State Police Troop D Computer Crimes Unit, the Oswego County District Attorney’s Office and the Fulton Police Department, and was prosecuted by Assistant United States Attorney Geoffrey J. L. Brown as a part of Project Safe Childhood.
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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Fugitive for over Twenty Years Sentenced to Twelve Years in Prison for Large-Scale Heroin TraffickingRead the Press Release
Urbana, Ill. – A Chicago, Ill., man, Hector Castaneda, 59, of the 2400 block of South Springfield Avenue, has been sentenced to twelve years in federal prison for his role in a 1997 drug conspiracy involving almost twenty kilograms of heroin.
From 1996 to 1997, Castaneda and his four co-defendants, Ramiro S. Trevino, Raul Cruz-Velasco, Joseph L. Cuevas, and Jose G. Villanueva, were involved in a conspiracy to transport heroin from Texas to Chicago. The conspirators transported five kilograms of heroin from Texas to Chicago on four occasions. On the last occasion, July 5, 1997, a deputy with the Kankakee County Sheriff’s Office intercepted the heroin during a traffic stop of Villanueva. The Drug Enforcement Administration and Kankakee Area Metropolitan Enforcement Group conducted further investigation, resulting in the arrest of the other conspirators, including Castaneda when he travelled from Chicago to a motel room in Kankakee, Illinois, and picked up the five kilograms of heroin.
On July 9, 1997, Castaneda was released from custody on bond. He then fled from the United States to Mexico, where he lived for over twenty years. In the meantime, a trial was held in Urbana, Illinois, his four co-defendants were all convicted, and the court-imposed sentences on them ranging from twelve years and seven months to ten years of imprisonment in the Federal Bureau of Prisons.
Castaneda returned to Chicago in 2019 and was arrested on his outstanding federal warrant on February 18, 2020, and ordered detained. On March 17, 2021, Castaneda pleaded guilty to conspiracy to distribute more than a kilogram of heroin and the attempted possession of more than a kilogram of heroin.
At Castaneda’s sentencing hearing on October 18, 2021, U.S. District Court Judge Michael M. Mihm found that Castaneda was responsible for transporting almost 20 kilograms of heroin and that he had obstructed justice by fleeing the United States while on federal bond.
The Drug Enforcement Administration, the Kankakee Area Metropolitan Enforcement Group, and the Kankakee County Sheriff’s Department investigated the case. Supervisory Assistant U.S. Attorney Eugene L. Miller represented the government in the prosecution.
Four Individuals Indicted for Drug Trafficking and Money LaunderingRead the Press Release
SAN JUAN, Puerto Rico – On September 23, 2021, a Federal Grand Jury in the District of Puerto Rico returned a 14-count indictment against four defendants for conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute cocaine, conspiracy to import a controlled substance, attempted importation of a controlled substance, conspiracy to launder monetary instruments, laundering of monetary instruments, and engaging in monetary transactions, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The agencies in charge of the investigation are the Drug Enforcement Administration, Hormigueros Office, assisted by Homeland Security Investigations.
This prosecution 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 four individuals charged were arrested on October 12 and 13, 2021, and are:
- Ramón Antonio Vega-Ortiz, a.k.a. “Gago/Moncho,” designated by OCDETF as a Regional Priority Organization Target (RPOT);
- Osvaldo Calderín-Pascual, a.k.a. “Cubano/Calde”;
- Luis Almonte-Cruz, a.k.a. “Fiscal”; and
- Reinaldo Feliciano-Troche, a.k.a. “Chano”.
The defendants conspired to coordinate and facilitate the maritime importation of hundreds of kilograms of cocaine from outside the United States, including from Colombia and the Dominican Republic, into Puerto Rico, for profit. From May 2019 until the return of the indictment, the defendants employed a network of international cocaine suppliers, boat captains and crew members, recruiters, coordinators, facilitators, and loading and unloading crews to obtain, transport, and distribute cocaine.
The criminal enterprise used two primary methods to obtain the cocaine shipments. First, the drug organization recruited and paid boat captains to conduct at sea transfers of the narcotics with boats arriving from outside of the United States. Second, the organization coordinated and paid unloading or receiving crews to transport narcotics that were smuggled into Puerto Rico. Three of the defendants also conspired to launder monetary instruments to legitimize and disguise the true nature, location, source, ownership, and control of illicit proceeds derived from their drug trafficking activities. For example, the defendants laundered drug proceed by purchasing winning lottery tickets, real estate, vehicles and boats.
“Ramón Antonio Vega-Ortiz, designated as a priority target by our OCDETF program, and his organization imported large quantities of cocaine into the United States,” said U.S. Attorney Muldrow. “These arrests demonstrate the collaboration and cooperation by the Department of Justice and our law enforcement partners, and our commitment and resolve to combat transnational criminal organizations.”
Assistant Special Agent in Charge of the DEA, Caribbean Division said: “The DEA and our law enforcement partners will keep working non-stop until we find and disrupt these Transnational Criminal Organizations. Know this, you may run, but you can’t hide, we will find you!”
If found guilty, the defendants are facing narcotics and money laundering forfeiture allegations to include the forfeiture of the following real and personal property:
- Property located at Urbanization Extensión La Rambla in Ponce;
- Property located at Urbanization Estancias del Golf Club in Ponce;
- Solar property in Cabo Rojo;
- One 2014 Porsche, 911 Turbo;
- One 2015 Acura, TLX;
- One 2015 BMW, M4;
- One 2021 Lamborghini, Huracan Evo;
- One 2016 Dodge, Ram 1500;
- One 2016 Dodge, Ram 2500;
- One 2017 Ford, F-150;
- One Avanti, Center Console, 25 foot boat;
- One Sea Star, Center Console 24 foot boat;
- All assets held in two bank accounts;
In addition, at the time of their arrests, some defendants were found in possession of large sums of cash and high value jewelry that were also seized by law enforcement.
Assistant U.S. Attorney Jawayria Z. Auchter from the Transnational Organized Section is in charge of the prosecution of the case. The defendants face a possible sentence of 10 years up to life in prison for the drug trafficking charges, up to 20 years for the money laundering charges, and up to 10 years for the monetary transaction charges.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Fort Wayne Man Sentenced to 62 Months in PrisonRead the Press Release
FORT WAYNE – Franklin D. Wright, 30 years old, of Fort Wayne, Indiana, was sentenced by U.S. District Court Judge Holly A. Brady after pleading guilty to possessing a firearm after having been convicted of a felony offense, announced United States Attorney Clifford D. Johnson.
Wright was sentenced to 62 months in prison followed by 2 years of supervised release.
According to documents in the case, Wright was a passenger in a vehicle stopped by Fort Wayne Police for a traffic violation. When officers approached the vehicle, Wright had his hands inside a bag which contained a Smith & Wesson handgun with an inserted loaded 50 round drum style magazine. Wright was prohibited from possessing a firearm due to a 2014 felony conviction for Carrying a Handgun without a License and a 2011 felony Battery conviction.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with the assistance of the Fort Wayne Police Department and Indiana State Police Crime Lab. This case was prosecuted by Assistant United States Attorney Stacey R. Speith.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Former SE Polk High School Teacher Sentenced to 24 Years in Federal Prison for Sexually Exploiting StudentRead the Press Release
DES MOINES, IA – On October 19, 2021, United States District Court Judge Stephanie M. Rose sentenced Abraham Christopher Smith, age 39, formerly of Pleasant Hill, to 288 months in prison for Enticement of a Minor announced Acting United States Attorney Richard D. Westphal. Smith pleaded guilty to the offense on June 10, 2021. Following completion of his prison term, Smith is required to register as a sex offender and will be on supervised release for ten additional years. Under federal law, Enticement of a Minor carries a mandatory minimum term of 10 years in prison and a maximum term of life in prison.
According to court documents, Smith was a full-time teacher at Southeast Polk High School for several years. Beginning by at least early October 2020 and continuing to on or about October 28, 2020, Smith used a cell phone and the internet to persuade, induce, and entice Minor Victim #1—a minor student at the school—to engage in sexual activity with Smith. Additionally, Smith used his own iPhone to record Minor Victim #1 engaging in sexual activity with Smith.
“A teacher sexually exploiting a student is a very serious crime. Students must be safe at school. Parents deserve to have confidence that educators to whom they entrust their children are not preying on them. This prosecution and sentence should send a message to any school staff member contemplating exploiting a minor that the consequences may be decades in prison,” said Acting United States Attorney Westphal.
This case was investigated by the Iowa DCI Internet Crimes Against Children Task Force, Altoona Police Department, Polk County Attorney’s Office, and the FBI Child Exploitation Task Force.
The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the United States Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children.
Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Former Phone Company Employee Sentenced to Three Months Probation for Role in Sim Swap Scam Conspiracy That Targeted at Least 19 Customers, Including New Orleans ResidentRead the Press Release
NEW ORLEANS – U.S. Attorney Duane Evans announced that STEPHEN DANIEL DEFIORE age 36, a resident of Brandon, Florida, was sentenced on October 19, 2021 to three (3) months probation, with one year of home confinement by United States District Judge Jay C. Zainey after previously pleading guilty to a one-count Bill of Information charging with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Sections 371 and 1343, for his role in a SIM Swap scam that targeted at least nineteen people, including a New Orleans-area physician. DEFIORE was also sentenced to 100 hours of community service, payment of $77,417.50 in restitution and payment of a $100 mandatory special assessment fee.
According to court documents, a SIM Swap scam is a cellular phone account takeover fraud that results in the routing of a victim’s incoming calls and text messages to a different phone. Once a perpetrator is able to swap the SIM card, it is likely he is able to obtain access to a victim’s various personal accounts, including email accounts, bank accounts, and cryptocurrency accounts, as well as any other accounts that use two-factor authentication.
From August 2017 until November 2018, DEFIORE worked as a sales representative for Phone Company A. In that capacity, DEFIORE had access to the accounts of Phone Company A’s customers, including the ability to switch the subscriber identification module (SIM) card linked to a customer’s phone number to a different phone number. Between October 20, 2018, and November 9, 2018, DEFIORE accepted multiple bribes, typically in the amount of approximately $500 per day, to perform SIM swaps of Phone Company A customers identified by a co-conspirator. For each SIM swap, a co-conspirator sent DEFIORE a customer’s phone number, a four-digit PIN, and a SIM card number to which the phone number was to be swapped. In total, DEFIORE received approximately $2,325 in a series of twelve payments. Among the individuals whose accounts DEFIORE accessed was Victim A, a New Orleans resident, who phone number was swapped on November 10, 2018, to a SIM card contained in an Apple iPhone 8 that was in the possession of Richard Li. Li was charged with his role in the offense in June 2020 and was charged in a superseding indictment in August 2021.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation. Assistant United States Attorney Jordan Ginsberg, Chief of the Public Corruption Unit, is in charge of the prosecution.
Former Pain Management Doctor Charged in Manhattan Federal Court with Sexually Abusing Patients Across Multiple States over the Course of over 15 YearsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that RICARDO CRUCIANI was arrested this morning and charged in connection with his sexual abuse of numerous pain management patients over the course of over 15 years. The Indictment unsealed today alleges that from at least in or about 2002 up to and including at least in or about 2017, CRUCIANI enticed and induced multiple victims to travel to his medical offices in New York, New York, Hopewell, New Jersey, and Philadelphia, Pennsylvania, to subject them to unlawful sexual abuse. CRUCIANI was arrested this morning and is expected to be presented later today before U.S. Magistrate Judge Robert W. Lehrburger in Manhattan federal court. The case is assigned to U.S. District Judge John P. Cronan in the Southern District of New York.
U.S. Attorney Damian Williams said: “Doctors like the defendant take an oath to do no harm. It is difficult to imagine conduct more anathema to that oath than exploiting patients’ vulnerability in order to sexually abuse them. As alleged, Ricardo Cruciani’s sexual abuse involved developing personal relationships with victims to engender trust, and prescribing addictive pain medication that caused his patients to become dependent on him as he engaged in a course of increasingly abusive conduct. The alleged pattern of abuse in this case is outrageous, and Cruciani now faces federal charges for it.”
If you believe you are a victim of the sexual abuse perpetrated by RICARDO CRUCIANI, please contact the United States Attorney’s Office for the Southern District of New York at (646) 372-0364, and reference this case.
According to the Indictment[1] unsealed today in Manhattan federal court:
CRUCIANI was a pain management doctor who treated patients from multiple states who suffered from, among other things, severe and chronic pain. Between at least in or about 2001 and in or about 2014, CRUCIANI was employed by and affiliated with a prominent medical hospital and medical center located in New York, New York, and maintained medical offices in New York, New York. Between at least in or about 2013 and in or about 2016, CRUCIANI was a practicing pain management doctor employed by and affiliated with a prominent medical hospital and medical center located in Hopewell, New Jersey, and maintained medical offices in Hopewell, New Jersey. Between at least in or about 2016 and in or about 2017, CRUCIANI was a practicing pain management doctor employed by and affiliated with a prominent medical hospital and university located in Philadelphia, Pennsylvania, and maintained medical offices in Philadelphia, Pennsylvania.
Over the course of at least approximately 15 years, between at least in or about 2002 and in or about 2017, CRUCIANI sexually abused numerous adult female patients who suffered from severe and chronic pain and were under his medical care as a pain management doctor. CRUCIANI exploited and leveraged his position of trust as a healthcare provider at prominent medical institutions, the significant pain suffered by the victims, and his ability to prescribe or withhold pain medication, including highly addictive opioids, so that he could sexually abuse his patients. In order for them to obtain prescription refills, CRUCIANI required victims to travel to his medical offices and other locations for in-person appointments. CRUCIANI enticed and induced victims to travel interstate at least in part for the purpose of subjecting them to unlawful sexual abuse.
CRUCIANI’s sexual abuse of victims involved developing personal relationships with victims to engender trust, and prescribing addictive pain medication that caused the victims to become dependent on CRUCIANI as he engaged in a course of increasingly abusive conduct. The abusive sexual conduct included, among other things, forcible kissing, touching victims’ breasts and genitals, oral sex acts, vaginal sexual intercourse, and attempted anal sexual intercourse.
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CRUCIANI, 63, of Wynnewood, Pennsylvania, is charged with five counts of enticing and inducing individuals to travel interstate to engage in illegal sexual activity, each of which carries a maximum sentence of 20 years in prison. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by a judge.
Mr. Williams praised the outstanding investigative work of the Special Agents of the United States Attorney’s Office for the Southern District of New York.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jane Kim and Jacqueline Kelly are in charge of the prosecution.
The charges contained in the Indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described therein should be treated as an allegation. The defendant is presumed innocent unless and until proven guilty.
Former NFL Player Pleads Guilty to Access Device Fraud and Aggravated Identity Theft Scheme Involving CARES Act Unemployment Insurance FundsRead the Press Release
Miami, Florida – South Florida native and former National Football League (NFL) Player Kenbrell Armod Thompkins, 33, pled guilty this week in federal district court to stealing other peoples’ identities to fraudulently obtain Covid-19-related unemployment insurance benefits.
Thompkins admitted that from August 16, 2020 through September 25, 2020, he used the social security numbers and other protected personal information of unsuspecting Florida residents to obtain prepaid unemployment insurance debit cards from California and to withdraw thousands of dollars from such cards. Thompkins pled guilty to one count of unauthorized access device fraud and one count of aggravated identity theft. U.S. District Court Judge Robert N. Scola, Jr. will sentence Thompkins on January 6, 2022 at 8:30 a.m. in Miami. He faces up to 12 years in prison.
Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida, and Brian Swain, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, made the announcement.
USSS Miami and the Aventura Police Department investigated the case. The case is being prosecuted by Assistant United States Attorney Eduardo Gardea, Jr.
In 2020, Congress passed the Covid Aid, Relief, and Economic Security (CARES) Act to help individuals and businesses financially survive the COVID-19 pandemic, including through the provision of federal funds to state unemployment insurance benefit programs.
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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-20136.
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Former Lawyer Agrees to Plead Guilty to Conning Clients via Sham Court Documents Containing Forged Judge SignaturesRead the Press Release
LOS ANGELES – A former California lawyer has agreed to plead guilty to a fraud charge, admitting he lied to clients about winning cases and deceiving them with bogus documents, some with the forged signatures of judges.
Matthew Charles Elstein, 51, of Redondo Beach, agreed to plead guilty to one count of wire fraud in a plea agreement filed this afternoon in United States District Court. An arraignment in this case is scheduled for October 28.
Elstein was a licensed California attorney from December 1994 until the State Bar of California ordered him inactive in March 2019. According to his plea agreement, from June 2015 to July 2018, Elstein engaged in a scheme to defraud his clients by claiming he obtained favorable legal resolutions for them, when in fact the favorable resolutions had never been obtained. In many cases, Elstein never initiated any legal action. Elstein also admitted to misappropriating funds by informing victims their fees were going into his client trust account, when in fact he directed them to deposit money into his personal bank account.
For example, in June 2016, Elstein falsely informed a corporate client that it had won a $52 million default judgment. He emailed the victim-client a fake court order that contained a judge’s forged signature. Having never actually filed a lawsuit on his client’s behalf, Elstein further misrepresented that the case was improperly under seal due to a United States Department of Justice investigation. To further his fraudulent scheme, Elstein presented his clients with a fake settlement agreement between the client and the United States Attorney’s Office for the Eastern District of California. It was not until the company reached out to that United States Attorney’s Office to authenticate the settlement agreement that it discovered that the agreement was a forgery.
Elstein also admitted to fabricating depositions in a federal case in Washington state in September 2015. Because these depositions were fake, no one appeared for them. Nonetheless, Elstein had a court stenographer present and made a formal record of the nonappearances. Elstein also billed the client for attending the fake depositions and his travel expenses to Seattle.
Elstein also falsely told the victim that he had obtained a $4.25 million judgment in the victim’s favor and provided the victim with a fake court order containing the forged signature of a judge. When the victim traveled to Seattle to collect the judgment, he was informed by the court that no such case existed.
In total, Elstein’s conduct resulted in losses of at least $358,855 to his victims.
Upon entering his guilty plea in this case, Elstein will face a statutory maximum sentence of 20 years in federal prison.
The FBI investigated this matter.
Assistant United States Attorney Agustín D. Orozco of the Public Corruption and Civil Rights Section is prosecuting this case.
Former IRS Employee Charged with Tax FraudRead the Press Release
A federal grand jury in Philadelphia, Pennsylvania, returned an indictment in July, which was unsealed yesterday, charging a South Carolina man with tax evasion and attempting to obstruct an IRS civil audit and an IRS criminal investigation.
According to the indictment, Wayne M. Garvin, currently of Columbia, South Carolina, and previously of Philadelphia, allegedly filed individual income tax returns for the years 2012 through 2016 on which he claimed fraudulent deductions and expenses, including charitable contribution deductions and expenses associated with rental properties that he owned for some years. For the year 2013, Garvin also allegedly claimed he had expenses associated with service in the U.S. Army Reserves even though he did not perform any reservist duty that year. At the time Garvin filed his false tax returns, he was employed as a Supervisory Associate Advocate with the IRS’s Taxpayer Advocate Service in Philadelphia.
The indictment also alleges that after the IRS began an audit of Garvin’s 2013 and 2014 tax returns, Garvin submitted fraudulent documents to the IRS revenue agent conducting the audit. Among other fraudulent documents, Garvin allegedly created receipts from a church, invoices from a contractor and a letter from the Department of the Army in an attempt to convince the IRS he was entitled to claim the deductions and expenses on his returns. Garvin allegedly submitted the fraudulent documents to the IRS to prevent the IRS from assessing additional taxes against him for 2013 and 2014. Finally, the indictment alleges that after the IRS notified Garvin that he was under criminal investigation for filing false tax returns, Garvin provided the same fraudulent documents to IRS Criminal Investigation that Garvin previously provided to the IRS revenue agent.
Garvin is charged with three counts of tax evasion and two counts of corruptly endeavoring to impair and impede the due administration of the internal revenue laws. The defendant made his initial court appearance today. If convicted, he faces a maximum penalty of five years in prison on each count of tax evasion, and a maximum penalty of three years in prison on each count of endeavoring to impair the internal revenue laws. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Jennifer Arbittier Williams of the Eastern District of Pennsylvania made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Melissa S. Siskind of the Justice Department’s Tax Division and Assistant U.S. Attorney Tiwana Wright of the U.S. Attorney’s Office for the Eastern District of Pennsylvania are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former CEO, CFO, and VP of Email Security Company Charged with $50 Million Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that ROBERT BERNARDI, the founder, and former Chief Executive Officer of the Virginia-based email security company GigaMedia Access Corporation, d/b/a GigaTrust (“GigaTrust”), NIHAT CARDAK, GigaTrust’s former Chief Financial Officer, and SUNIL CHANDRA, GigaTrust’s former Vice President of Business Development, were charged in an Indictment in Manhattan federal court with participating in a scheme to defraud investors and lenders of millions of dollars through false and misleading misrepresentations, including fabricated bank statements and audit reports, and by impersonating a purported customer, auditor, and GigaTrust lawyer.
BERNARDI, CARDAK, and CHANDRA were arrested this morning. They will be presented later before Magistrate Judge Michael S. Nachmanoff in the United States District Court for the Eastern District of Virginia. The case is assigned to United States District Judge Paul G. Gardephe.
U.S. Attorney Damian Williams said: “As alleged, the defendants—the founder and other senior executives at GigaTrust—participated in a scheme to trick investors into providing the company millions of dollars. Today’s indictment alleging a fraud scheme of over $50 million ensures that they will be held accountable for their conduct.”
FBI Assistant Director-in-Charge Michael J. Driscoll said: “Luring investors under false pretenses and misappropriating their money for personal gain is exactly what Giga Trust’s defendants are charged with today. The money they allegedly made from this scheme totals tens of millions of dollars. No matter how lucrative schemes of this nature may appear from the start, they will ultimately result in federal criminal charges.”
According to the allegations in the Indictment[1] unsealed today in Manhattan federal court:
From in or about 2016 through at least in or about 2019, GigaTrust was a private company headquartered in Virginia that purported to be a market-leading provider of cloud-based content security solutions. BERNARDI founded GigaTrust and served as its CEO, while CARDAK and CHANDRA were GigaTrust’s CFO and Vice President of Business Development, respectively. The defendants devised a scheme to defraud investors and lenders by (a) fabricating and disseminating false and misleading bank account statements that overstated GigaTrust’s cash deposits; (b) fabricating and disseminating false and misleading audit materials that purported to have been issued by GigaTrust’s auditors and overstated GigaTrust’s performance; (c) forging and disseminating a false and misleading letter purporting to be from GigaTrust’s New York-based counsel; and (d) impersonating or causing others to impersonate a purported customer and auditor of GigaTrust on telephone calls with a prospective lender.
Specifically, BERNARDI sent fabricated audit materials to a New York-based investment firm, and BERNARDI and CARDAK used fabricated bank statements to obtain multiple rounds of loans and investments for GigaTrust, worth millions of dollars. After a New York-based bank (“Bank-1”), which had loaned GigaTrust $25 million, declared that GigaTrust had defaulted on the terms of its loan agreement, BERNARDI and CARDAK induced additional investments in GigaTrust through, among other things, forging a letter purporting to be from GigaTrust’s New-York based counsel. Shortly thereafter, while negotiating another $25 million deal with a lender (“Lender-1”), BERNARDI and CARDAK devised a scheme to impersonate a GigaTrust customer and auditor on requested diligence calls, which induced Lender-1 to make a $25 million loan to GigaTrust. BERNARDI recruited CHANDRA to pose as one of GigaTrust’s alleged customers on a call with Lender-1. BERNARDI and CARDAK also fabricated bank statements and sent them to Lender-1 right before closing the $25 million deal.
GigaTrust filed for Chapter 7 bankruptcy protection in the District of Delaware on or about November 27, 2019.
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BERNARDI, 68, and CARDAK, 51, both of Virginia, are each charged with one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison, one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison, one count of conspiracy to commit wire fraud affecting a financial institution, which carries a maximum sentence of 30 years in prison, and one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years’ imprisonment. CHANDRA, 80, of Virginia, is charged with one count of conspiracy to commit wire fraud affecting a financial institution, which carries a maximum sentence of 30 years in prison, and one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years’ imprisonment. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation in this case. Mr. Williams further thanked the Securities and Exchange Commission, which has filed a civil enforcement action against the defendants, for its cooperation and assistance in this investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Peter J. Davis and Emily A. Johnson are 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 the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former Air Force Airman Pleads Guilty to Impersonating FBI, OSI AgentsRead the Press Release
VALDOSTA, Ga. – A former Air Force Airman pleaded guilty to two counts of impersonating an officer after he pretended to be a federal agent at various times, including making a traffic stop, offering to solve a crime, and appearing at crime scene investigations armed while claiming to be an agent.
Marlon De’Adrain Priest, 23, of Valdosta, pleaded guilty to two counts impersonating an officer and an employee of the United States before U.S. District Judge Louis Sands on Tuesday, October 19. Priest faces a maximum three years in prison to be followed by one years of supervised release and a $250,000 fine per count. Sentencing is scheduled for January 20, 2022.
“Marlon Priest created a false appearance of authority and power to scam and intimidate his victims. Impersonating a federal agent is a serious crime that will not be tolerated in the Middle District of Georgia,” said Acting U.S. Attorney Peter D. Leary. “I want to commend the real investigators who brought Priest to justice and who work hard every day to make Middle Georgia a safer place.”
“Impersonating a federal officer for any reason puts the public and law enforcement officers at risk, especially when a firearm is used,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is committed to keeping the public safe from scam artists like Priest, who undermine legitimate police encounters that happen every day.”
According to court documents, an agent with Moody Air Force Base (MAFB) Office of Special Investigations (OSI) contacted the FBI in September 2020 regarding Priest, a former Air Force Airman, who was impersonating an OSI Agent in the Valdosta area. The Remerton Police Department (RPD) had reported to MAFB OSI that Priest had appeared at crime scenes on multiple occasions representing himself as an OSI agent and even arrived at one crime scene carrying an AR-15 rifle and wearing a bullet proof vest. The white sedan Priest was driving had police lights. RPD had recordings of Priest at crime scenes impersonating a federal officer. Priest had been discharged from the Air Force in Feb. 2019, for misuse of a military credit card.
In addition, Priest made a traffic stop on April 9, 2020, identifying himself as an undercover federal agent at Moody Air Force Base. The victim driving the car told authorities that Priest was armed, was wearing a bullet proof vest and that Priest’s vehicle had police lights with a public announcement (PA) system to give the victim orders during the incident. Priest called the stop in to 911, reporting himself as an undercover MAFB agent. Bodycam footage from the scene showed Priest was armed.
In October 2020, Priest impersonated an FBI agent, telling a fraud victim that Priest was an FBI agent who could help her start a case if she paid him $85. The victim gave him $85 and days later Priest accused the victim of lying to him about the case and threatened to press charges against her for her “criminal intent and fraudulent misconduct.” Priest told the victim that she had made false statements, and that he put his name on the line and gave her a discount with the courts to open the case. Priest then told the victim he had to pay a $150 fine and threatened the victim that warrants were going to be taken out for her. The victim paid Priest the $150 demand.
This case was investigated by FBI, Lowndes County Sherriff’s Office and Remerton Police Department.
Assistant U.S. Attorney Sonja Profit is prosecuting the case.
Fitchburg Man Pleads Guilty to Cocaine ConspiracyRead the Press Release
BOSTON – A Fitchburg man pleaded guilty on Monday, Oct. 18, 2021 in federal court in Worcester to his role in a cocaine distribution conspiracy.
Angel Cruz, a/k/a “Papo,” 61, pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Feb. 1, 2022. Cruz was indicted in November 2017.
In the fall of 2016, Cruz conspired with another individual to deliver cash in exchange for cocaine from the San Diego, Calif. area for distribution in Fitchburg. Cruz admitted that he rented a vehicle for the exchange, which was used by his co-conspirator to drive to California to deliver the cash and transport the drugs back to Massachusetts. Law enforcement stopped the co-conspirator when returning to Massachusetts and found the cocaine concealed inside the rented vehicle.
The charge of conspiracy to possess with intent to distribute cocaine provides for a sentence of up to 40 years in prison, at least four years and up to a lifetime of supervised release and a fine of $5 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Fitchburg Police Chief Ernest F. Martineau; and Lunenburg Police Chief Thomas Gammel made the announcement. The Drug Enforcement Administration, Detroit Division and the Ohio State Highway Patrol assisted with the investigation. Assistant U.S. Attorneys Michelle L. Dineen Jerrett and Lucy Sun of Mendell’s Worcester Branch Office are prosecuting the case.
Federal Prosecution of La Placita Robbery Concludes with Final SentencngsRead the Press Release
Bowling Green, Kentucky– Two Honduran nationals, Jonny Alexander Reyes-Martinez and Jorge Santos Caballero-Melgar were sentenced on Monday in U.S. District Court in Bowling Green. Reyes was sentenced to 262 months in prison for his role in a conspiracy to commit a series of armed robberies throughout the southeast, including the robbery of La Placita 710 Morgantown Road, Bowling Green, Kentucky, on March 17, 2017, that resulted in the death of one person, J.C. Also sentenced on Monday was Jorge Santos Caballero-Melgar for his role as the organizer and leader of the group. Caballero was the only defendant to take his case to trial. He was convicted by a jury in Bowling Green earlier this year. Caballero was sentenced to 460 months in prison.
These sentencings culminated the prosecution of 12 persons who were charged with conspiring to commit a total of 15 armed robberies in Kentucky, Tennessee, Indiana, and North Carolina between December 2016 and September 2017. Most of the defendants resided in Nashville, Tennessee. All were present in the United States illegally. Sentences imposed by Chief Judge Stivers in the case ranged from 48 months to 460 months. Reyes, who was directly involved in the robbery of La Placita in Bowling Green, was facing a life sentence prior to entry of a guilty plea. Evidence presented at Caballero’s trial showed that the victim, J.C., interceded and attempted to restrain Reyes inside the store as the robbery concluded and was shot by Reyes during a struggle in close quarters. Reyes’s guideline sentence of up to 405 months was reduced by Chief Judge Stivers on Monday based on the defendant’s substantial assistance in the prosecution of Caballero. Reyes testified at Caballero’s trial last spring, along with four other co-conspirators, and was characterized by Judge Stivers as a “key witness” for the government at trial.
The evidence at trial established that Caballero was the organizer and leader of the robbery conspiracy. Caballero was present for all but one of the 15 charged robberies directing the other co-conspirators from outside the store. Evidence at trial showed that Caballero identified the stores to be robbed; provided firearms to the others for use during each robbery; and drove co-conspirators to and from robbery locations. Cell phone tracking evidence presented at trial showed the movement of the co-conspirators from Nashville to various robbery locations and back. Surveillance video, together with phone records and testimony at trial, established that Caballero on at least one occasion ordered a victim to turn over the cash in the store to the robbers who were inside with her. After each robbery, Caballero met at another location with co-conspirators and divided the proceeds of the robbery. Caballero has illegally entered the United States and been removed five times.
“Those responsible for the senseless and heartbreaking loss of life in this case will now rightfully spend decades in prison for their crimes,” stated Acting U.S. Attorney Michael A. Bennett. “The FBI, the Bowling Green Police Department, the federal and state agencies who provided assistance, and the prosecutors who litigated the cases all worked tirelessly and performed admirably throughout the process to ensure justice was served.”
“This investigation, leading to the arrest, conviction, and sentencing of Caballero and 11 other members of his robbery crew highlights the value and effectiveness of combining local, state, and federal resources to combat violent criminals,” said Special Agent in Charge Jodi Cohen of the FBI’s Louisville Field Office. “It is a tragedy that someone died as a result of the defendants’ brazen conduct; however, we hope that these sentences will provide some solace to the victim’s family and serve as a reminder to those who wish to harm the citizens of the Commonwealth that FBI Louisville and its law enforcement partners will find you and hold you accountable.”
The investigation was led by Special Agents in the FBI’s Bowling Green Resident Agency and the Bowling Green Police Department. The investigation was also assisted by FBI Charlotte; FBI Memphis; DHS/HSI Raleigh; DHS/HSI Bowling Green; Lexington, KY Police Department; Cary, NC Police Department; Clayton, NC Police Department; Snow Hill, NC Police Department; Greene County, NC Sheriff’s Department; Rocky Mount, NC Police Department; Henderson, NC Police Department; Gallatin, TN Police Department; Morristown, TN Police Department; McMinnville, TN Police Department; Metro Nashville Police Department; Clarksville, IN Police Department; Northampton County, VA Sheriff’s Department; and the Kansas Highway Patrol.
Assistant U.S. Attorneys Marisa J. Ford and Alicia P. Gomez prosecuted the case.
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Federal Jury Convicts Felon in Possession of a FirearmRead the Press Release
BIRMINGHAM, Ala. – A federal jury convicted a Marion County man on Tuesday of being a felon in possession of a firearm, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Mickey French.
The jury returned its guilty verdict against Samuel Ernest Byrd, 43, of Hamilton, after one day of testimony before Chief U.S. District Judge L. Scott Coogler. Byrd is prohibited from owning a firearm because he has a prior felony conviction of possession of a controlled substance in 2007, in the Circuit Court of Marion County, Alabama.
Evidence at trial showed that in May 2020 local police officers responded to a home in Hamilton, Alabama, where Byrd lived with his mother, after she was reported missing. Police found Byrd inside the house. In addition to recovering a .22 caliber revolver from Byrd’s truck, police officers also recovered a rifle from the home.
The maximum penalty for being a felon in possession of a firearm is 10 years in prison.
The ATF investigated the case. Assistant U.S. Attorneys Edward J. Canter and John B. Ward are prosecuting the case.
Federal Jury Convicts Ahoskie Man for Robbery and Aiding and AbettingRead the Press Release
NEW BERN, N.C. – A federal jury convicted an Ahoskie man today on charges of Hobbs Act robbery and aiding and abetting.
According to court records and evidence presented at trial, on February 5, 2020, Dytwan Donnelle Chamblee, 27, assisted in the robbery of the Duck-Thru convenience store in Cofield, North Carolina, located in Hertford County. Chamblee committed the robbery while on post-release supervision from a North Carolina state felony conviction. As a part of his supervision, Chamblee was subject to electronic monitoring in the form of an ankle monitor. His co-defendant, Ray’Quan Langford, was also wearing an ankle monitor. The evidence established that Langford robbed the store at gunpoint while brandishing a firearm and demanding money and other items from the clerk. Langford also stole cell phones from customers who were in the store at the time of the robbery. Chamblee’s ankle monitor data, which records GPS location information, established that he was the getaway driver following the robbery. Chamblee is a convicted felon, having previous convictions for possession of a weapon by a prisoner, possession of a firearm by a felon, breaking and entering, and larceny. According to the North Carolina Department of Public Safety, Chamblee is a validated member of the Bloods street gang.
Chamblee faces a maximum penalty of 20 years in prison when sentenced during the January 11, 2022, term of court.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Louise W. Flanagan accepted the verdict. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Hertford County Sheriff’s Office, the Bertie County Sheriff’s Office, and the Ahoskie Police Department investigated the case. The case was prosecuted by Assistant U.S. Attorney Robert J. Dodson.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.2:20-CR-51-1FL.
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Eight People Charged in South Florida Federal Bank Fraud, Money Laundering CaseRead the Press Release
Miami, Florida – In a 30-count indictment unsealed today, a Miami federal grand jury charged eight defendants for their roles in a fraudulent check and money laundering scheme.
The indictment charges Christopher Salermo, 30, from Miami; Rene Ripes III, 22, from Hialeah; Carlo Luvara Escobar, 26, from Miami; Clifton Taylor, Jr., 33, from Miami; Edwin Castillo, 23, from Hialeah; John Anthony Perez, 23, from Hialeah Gardens; Ana Figueroa, 22, from Miami; and Brandon Cooper, 28, from the Bahamas, for participating in a fraud scheme that operated as follows, according to the indictment: Members of the conspiracy would steal bank account and routing numbers belonging to legitimate companies and individuals. Then they would: create fraudulent checks containing the stolen account and routing number information; forge victim signatures on the checks; and deposit the checks into bank accounts under the control of members of the conspiracy. After the checks cleared, but before the financial institutions discovered the fraud, members of the conspiracy would withdraw money from those accounts for their personal gain, it is alleged.
Seven of the eight defendants were arrested today. Defendants Salermo, Ripes, Taylor, Castillo, and Cooper made their initial appearances today in federal magistrate court in Miami before Chief U.S. Magistrate Judge John J. O’Sullivan. Defendants Escobar and Perez will make their initial appearances tomorrow at 10:00 a.m. before Judge O’Sullivan.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office made the announcement.
HSI Miami investigated the case, with assistance from HSI Tampa, Miami Beach Police Department, Miami-Dade State Attorney’s Gang Strike Force, Miami-Dade Police Department, and City of Miami Police Department.
Assistant U.S. Attorney Kurt K. Lunkenheimer is prosecuting this case. Assistant U.S. Attorney Joshua Paster is handling asset forfeiture.
An indictment contains mere allegations and defendants are presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-20491.
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Eight Nigerians Charged with Conspiring to Engage in Internet Scams and Money Laundering from Cape Town, South AfricaRead the Press Release
NEWARK, N.J. – Seven leaders of the Cape Town Zone of the Neo Black Movement of Africa, also known as “Black Axe,” and an eighth man who conspired with a Black Axe leader, were charged with multiple federal crimes relating to internet scams they perpetrated from South Africa, Acting U.S. Attorney Rachael A. Honig announced today.
Perry Osagiede, aka “Lord Sutan Abubakar de 1st,” aka “Rob Nicolella,” aka “Alan Salomon,” 52; Enorense Izevbigie, aka “Richy Izevbigie,” aka “Lord Samuel S Nujoma,” 45; Franklyn Edosa Osagiede, aka, “Lord Nelson Rolihlahla Mandela,” aka, “Edosa Franklyn Osagiede,” aka “Dave Hewitt,” aka, “Bruce Dupont,” 37; Osariemen Eric Clement, aka, “Lord Adekunle Ajasi,” aka, “Aiden Wilson,” 35; Collins Owhofasa Otughwor, aka, “Lord Jesse Makoko,” aka, “Philip Coughlan,” 37; and Musa Mudashiru, aka “Lord Oba Akenzua,” 33; all originally from Nigeria, are charged by superseding indictment with wire fraud conspiracy and money laundering conspiracy, spanning from 2011 to 2021. One defendant remains at large.
Perry Osagiede, Franklyn Osagiede, Clement, and Izevbigie are also charged with wire fraud. Perry Osagiede, Franklyn Osagiede, and Otughwor are charged with aggravated identity theft.
Toritseju Gabriel Otubu, aka “Andy Richards,” aka “Ann Petersen,” 41, also originally from Nigeria, is charged by separate indictment with wire fraud conspiracy, wire fraud, aggravated identity theft, and money laundering conspiracy, spanning from 2016 to 2021.
“Americans are too often victimized by criminal organizations located abroad who use the internet to deceive those victims, defraud them of money, and, many times, persuade the victims to wittingly or unwittingly assist in perpetuating the fraudulent schemes,” Acting U.S. Attorney Honig said. “The public should be on guard against schemes like these. And, more importantly, anyone thinking of engaging in this kind of criminal conduct should understand that the U.S. Attorney’s Office and our partners will find them and bring them to justice, no matter where they are.”
“Transnational organized criminal networks continue to victimize U.S. citizens and threaten the financial infrastructure of the United States,” Secret Service Office of Investigations Assistant Director Jeremy Sheridan said. “The Secret Service, alongside our partner agencies, works tirelessly in its global investigative mission to dismantle these groups and arrest those who lead them. We are proud to be a part of the international law enforcement mission to combat all forms of financial crimes and thank all those involved in this investigation. The U.S. Secret Service extends its gratitude the U.S. Department of State’s Diplomatic Security Service for its assistance.”
“Foreign nationals who think they can hide in another country or in cyberspace while preying on our citizens need to know one thing,” Special Agent in Charge George M. Crouch Jr. said. “The FBI has a global footprint and will use every resource available to protect the American people. The strong working relationship among our federal and international law enforcement partners allows us to reach across geographical boundaries. In other words, anyone who thinks they can avoid American justice simply by operating outside the United States should rethink their strategy.”
According to documents filed in these cases:
Perry Osagiede, Izevbigie, Franklyn Osagiede, Clement, Otughwor, and Mudashiru (the “Black Axe defendants”) were all leaders of the Neo Black Movement of Africa, also known as “Black Axe,” an organization headquartered in Benin City, Nigeria that operates in various countries. The Black Axe is organized into regional chapters known as “zones,” and the defendants were all leaders within the Cape Town, South Africa, Zone. Perry Osagiede founded the Cape Town Zone of Black Axe and worked as its zonal head, along with Izevbigie. The Black Axe defendants and other members of Black Axe took part in, and openly discussed, fraud schemes amongst their membership.
From at least 2011 through 2021, the Black Axe defendants and other conspirators worked together from Cape Town to engage in widespread internet fraud involving romance scams and advance fee schemes. Many of these fraudulent narratives involved claims that an individual was traveling to South Africa for work and needed money or other items of value following a series of unfortunate and unforeseen events, often involving a construction site or problems with a crane. The conspirators used social media websites, online dating websites, and voice over internet protocol phone numbers to find and talk with victims in the United States, while using a number of aliases.
The conspirators’ romance scam victims believed they were in romantic relationships with the person using the alias and, when requested, the victims sent money and items of value overseas, including to South Africa. Sometimes, when victims expressed hesitation in sending money, the conspirators used manipulative tactics to coerce the payments, including by threatening to distribute personally sensitive photographs of the victim.
The conspirators used the bank accounts of victims and individuals with U.S.-based financial accounts to transfer the money to South Africa. On certain occasions, the conspirators convinced victims to open financial accounts in the United States that the conspirators would then be permitted to use themselves. In addition to laundering money derived from romance scams and advance fee schemes, the conspirators also worked to launder money from business email compromise schemes. In addition to their aliases, the conspirators used business entities to conceal and disguise the illegal nature of the funds.
Otubu also engaged in romance scams and used the victims of those scams to obtain money and to launder the proceeds of business email compromises back to South Africa. Otubu conspired with an individual identified in the criminal complaint as Co-conspirator 1, who was a founding member and leader of the Cape Town Zone of Black Axe.
The wire fraud conspiracy and wire fraud charges each carry a maximum term of 20 years in prison and a maximum fine of $250,000. The money laundering conspiracy charge carries a maximum term of 20 years in prison and a maximum fine of $500,000 or twice the value of the property involved in the transaction, whichever is greatest. The aggravated identity theft charges carry a mandatory term of two years in prison, which must run consecutively to any other term of imprisonment imposed on a defendant.
Seven defendants were arrested in South Africa yesterday by the South African Police Service. Those defendants had their initial appearances in South Africa and are awaiting extradition to the United States on these charges. Both cases are before U.S. District Judge Michael A. Shipp in Trenton federal court.
Anyone who believes they may be a victim may visit https://www.justice.gov/usao-nj/blackaxe for information about the case, including a questionnaire for victims to fill out and submit.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; and the FBI Legal Attaché Office at the United States Embassy in Pretoria, South Africa, under the direction of Legal Attaché Jennifer Snell Dent; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt in Newark, Special Agent in Charge John Hamby in Seattle, Resident Agent in Charge Michael K. Burgin in the Pretoria Resident Office and Special Agent in Charge Jason Kane of the Criminal Investigative Division, with the investigation leading to the charges.
Acting U.S. Attorney Honig also thanked the South African Directorate of Priority Crime Investigations (DPCI) HAWKS, the South African Police Service, the South African National Prosecuting Authority & Asset Forfeiture Unit, the Department of Justice and Constitutional Development for the Republic of South Africa, the U.S. Department of Justice’s Office of International Affairs, and Interpol for their valuable assistance in this case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Priority Transnational Organized Crime (PTOC) 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. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorneys Jamie L. Hoxie and Vera Varshavsky of the Cybercrime Unit in Newark.
The charges and allegations contained in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
East Stroudsburg Man Sentenced to 40 Months’ Imprisonment for Drug TraffickingRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert Temple, age 52, of East Stroudsburg, Pennsylvania, was sentenced on October 19, 2021, to 40 months’ imprisonment to be followed by a 4-year term of supervised release, by United States District Court Judge Malachy E. Mannion, for trafficking in fentanyl and other illegal narcotics.
According to Acting United States Attorney Bruce D. Brandler, from approximately October 2018 to October 2019, Temple conspired with others to distribute fentanyl, primarily in Monroe County. On October 3, 2019, following the execution of a search warrant at Temple’s East Stroudsburg residence, authorities seized over 90 grams of fentanyl, along with distribution quantities of cocaine, amphetamine and illegally obtained prescription pills. The 90 grams of fentanyl seized from Temple’s residence corresponds to approximately 3,600 individual doses of the potentially lethal substance.
This case was investigated by the Federal Bureau of Investigation (FBI) and its state and local law enforcement partners in Monroe County. Assistant United States Attorney Jeffery St. John prosecuted the case.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Dominican National Pleads Guilty to Fentanyl TraffickingRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Boston to drug trafficking activities involving fentanyl and oxycodone.
Jose Guerrero, 29, pleaded guilty to two counts of distribution of and possession with intent to distribute fentanyl and oxycodone, three counts of distribution of and possession with intent to distribute 40 grams or more of fentanyl and one count of possession with intent to distribute 400 grams or more of fentanyl. U.S. District Court Judge Indira Talwani scheduled sentencing for Jan. 19, 2022.
Between June and August 2020, Guerrero sold fentanyl and oxycodone powder and pills on five occasions to an undercover law enforcement officer in Lawrence, and was arrested after making the fifth sale. A subsequent search of Guerrero’s residence resulted in the seizure of an additional 830 grams of fentanyl.
The charges of distribution of and possession with intent to distribute fentanyl and oxycodone provide for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. The charges of distribution of and possession with intent to distribute 40 grams or more of fentanyl provide for a sentence of at least five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. The charge of possession with intent to distribute 400 grams or more of fentanyl provides for a sentence of at least 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 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 Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Office, made the announcement today. Valuable assistance was provided by the Lawrence Police Department. Assistant U.S. Attorney Stephen W. Hassink of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
District Court Orders Utah Company to Stop Distribution of Unapproved New Drugs and Adulterated ProductsRead the Press Release
A federal court today ordered Utah company Grandma’s Herbs, Inc. and its owners, Kevin Parr and Tracey Parr, to stop distributing unapproved and misbranded drugs in violation of the Federal Food, Drug, and Cosmetic Act (FDCA), the Department of Justice Department announced.
In a complaint filed on Oct. 18, the United States alleged that Grandma’s Herbs and the Parrs violated the FDCA by distributing products intended to cure, mitigate, treat or prevent disease that were neither approved by the U. S. Food and Drug Administration (FDA) nor exempt from approval. The complaint alleged that the defendants claimed on their website that some of their products have antimicrobial and antiviral capabilities, prevent heart disease or treat urinary tract infections, upper respiratory tract infections, allergies, epilepsy and ulcers, among other health claims. The complaint alleged that the products also were misbranded drugs, because their labeling failed to bear adequate directions for use, as required by the FDCA.
“Products intended to treat or cure diseases require FDA approval,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Consumers are entitled to know that the drugs they take have been shown to be safe and effective. The department is committed to ensuring that companies distributing drugs and nutritional supplements comply with federal law.”
“The U.S. Attorney’s Office is committed to working with our counterparts at the Department of Justice’s Consumer Protection Branch and the FDA to ensure that the health and well-being of consumers is protected from those that attempt to circumvent federal laws and sell potentially dangerous products,” said Acting U.S. Attorney Andrea T. Martinez for the District of Utah.
“The FDA’s action is aimed at protecting consumers who unknowingly put their health at risk by using products with claims to cure, treat or prevent a serious illness,” said Associate Commissioner Judy McMeekin, Pharm.D., for FDA Regulatory Affairs. “We urge consumers to seek proven treatments recommended by licensed health care professionals. We previously warned this manufacturer, but they continued to make claims that their products could treat or prevent serious diseases. We took action to protect consumers.”
The defendants agreed to settle the suit and be bound by a consent decree of permanent injunction. The consent decree requires, among other things, that the defendants stop manufacturing, processing, labeling, holding or distributing any drug, including products the defendants claim can treat or cure disease, until they comply with federal law. Defendants must either obtain FDA approval for all drug products or remove such drug claims from their labels, websites and other promotional materials.
The government was represented by Trial Attorney Ann Entwistle of the Justice Department’s Consumer Protection Branch, with the assistance of William Thanhauser of the FDA’s Office of Chief Counsel. The U.S. Attorney’s Office for the District of Utah provided assistance.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
Defendant Pleads Guilty to Theft of Funds in Connection with COVID-19 Fraud CaseRead the Press Release
LAFAYETTE, La. - Acting United States Attorney Alexander C. Van Hook announced that Burnell Gabriel Zachary, 37, of Arnaudville, Louisiana, has pleaded guilty before United States Magistrate Judge Carol Whitehurst to receiving Coronavirus Food Assistance Program payments to which he was not entitled.
According to information presented to the court, agents with the U.S. Department of Agriculture, Office of Inspector General (USDA), began an investigation in October 2020 after receiving information that Zachary submitted a fraudulent application to obtain monetary benefits through the Coronavirus Food Assistance Program (CFAP). The CFAP was established to provide monetary benefits for agricultural producers whose operations were directly impacted by the Coronavirus pandemic. Eligible producers included those who suffered a 5% or greater decline, or who had losses due to market supply chain disruptions due to COVID-19. The CFAP provided direct relief to livestock producers.
The investigation concerning Zachary revealed that he had submitted a CFAP application via email on June 15, 2020 claiming that his livestock business sustained significant losses due to the COVID-19 pandemic. Zachary made false and fraudulent claims as to his cattle inventory at Zachary’s Ranch, LLC, and received payments from the USDA of over $70,000 due to those claims. Zachary admitted to making the false misrepresentations in the CFAP application and receiving over $70,000 in benefits and depositing them into his checking account.
“The Coronavirus Food Assistance Program and others similar to it were created to assist those who are truly in need of financial assistance following the difficulties that the COVID-19 pandemic has caused,” stated Acting U.S. Attorney Alexander C. Van Hook. “When individuals try to defraud the system like this, it takes benefits from others who have suffered genuine losses. COVID-19 fraud is one of the top priorities of this office and we will continue to work with our federal agency partners to hold these defendants accountable for their cheating ways.”
“The USDA COVID-19 food assistance programs were meant to keep food on tables during this unprecedented time,” said Dax Roberson, Special Agent-in-Charge, U.S. Department of Agriculture-Office of Inspector General. “This prosecution should send a strong zero-tolerance message to those opportunistic fraudsters who would take advantage of a national emergency to enrich themselves.”
Zachary faces a maximum sentence of 10 years in prison, 3 years of supervised release, and a fine of up to $250,000.
The U.S. Department of Agriculture, Office of Inspector General, is investigating the case and Assistant U.S. Attorney Danny Siefker is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department of Justice’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.
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Dayton Jones Pleads Guilty to Producing Child PornographyRead the Press Release
PADUCAH, KY. – Dayton Jones, 27, of Hopkinsville, Kentucky, pleaded guilty to production of child pornography before Senior United States District Judge Thomas B. Russell, earlier today, announced Acting United States Attorney Michael A. Bennett.
According to the Plea Agreement, on October 11, 2014, a group of high school and college students got together at a friend's apartment. The individuals, almost all of whom were under the age of 21, consumed significant amounts of alcohol. A fifteen-year-old boy (John Doe), passed out from alcohol intoxication. When John Doe passed out, several other males took turns sexually assaulting him with a sex toy. Jones made an audio/video recording of the assault. He can be heard talking during the video. Jones distributed the short video to others via the social media application “Snapchat.”
An individual who viewed Jones’ snap of the sexual assault on a friend’s phone recorded it on his/her phone and shared the video and information with law enforcement. The person who shared the information and video with law enforcement surrendered his/her phone for examination. A forensic tool collected and saved the information from the person’s phone – including the video from Jones’ snap. Snapchat is a multimedia messaging application with worldwide use. It allows users to exchange pictures and videos (called snaps) that are meant to disappear after they are viewed. Billions of videos are sent each day. Digital devices, such as cellular telephones, are used to create and send Snaps.
Under the terms of the Plea Agreement entered into the Court’s record today, Jones faces a 10-year sentence and agreed to pay the victim, John Doe, $50,000.00 in restitution. Judge Russell will decide whether Jones should receive credit for the time spent in state custody as well as how long Jones will be under supervision after released. Sentencing is scheduled for February 9, 2022, at 11:30 a.m., CDT, in Paducah, Kentucky.
Assistant United States Attorneys Jo E. Lawless and Seth Hancock prosecuted the case. The FBI's Louisville Field Office and the Christian County Sheriff’s Office conducted the investigation.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
DEA Holds National Prescription Drug Take Back Day to Turn the Tide Against the U.S. Opioid EpidemicRead the Press Release
BIRMINGHAM, Ala. – United States Attorney Prim F. Escalona announces support of DEA’s 21st National Prescription Drug Take Back Day to be held on Saturday, October 23rd from 10am to 2pm. Take Back Day is a bi-annual event that aims to provide a safe, convenient, and responsible means of disposing of prescription drugs, while also educating the public about the potential for abuse of medications.
According to a report published by the Substance Abuse and Mental Health Services Administration (SAMHSA), a majority of people who misused a prescription medication obtained the medicine from a family member or friend. The Centers for Disease Control and Prevention reported that last year, more than 93,000 people died of drug overdoses in the United States, marking the largest number of drug- related deaths ever recorded in a year. Opioid-related deaths accounted for 75 percent of all overdose deaths in 2020.
For more than a decade, DEA’s National Prescription Drug Take Back Day has helped Americans easily rid their homes of unneeded medications—those that are old, unwanted, or no longer needed—that too often become a gateway to addiction. Working in close partnership with local law enforcement, Take Back Day has removed more than 7,000 tons of medication from circulation since its inception. These efforts are directly in line with DEA’s priority to combat the rise of overdoses plaguing the United States.
“Removing unused prescription drugs from our homes prevents pills from making it into the wrong hands, possibly leading to more drug abuse and addiction,” said U.S. Attorney Escalona. “DEA’s National Drug Take Back Day is an excellent opportunity to properly dispose of unused prescription medications and raise awareness to the dangers of prescription drug abuse and addiction.”
“This past year marks the largest number ever recorded of drug-related deaths in a single 12-month period, with more than 93,000 deaths. On average, that’s more than 250 people dying a day of a drug overdose in the United States. This drug overdose crisis is a clear and present public health and safety threat to our nation,” said DEA Special Agent in Charge Brad L. Byerley. “DEA’s Take-Back initiative provides another way to address this epidemic and a safe way for our citizens to dispose of their unwanted prescription drugs, reducing the danger they pose to our youth and to our communities.”
DEA’s National Prescription Drug Take Back Day is more important than ever before. Last month, DEA issued a Public Safety Alert and launched the One Pill Can Kill public awareness campaign to warn Americans of a surge in deadly, fake prescription pills driven by drug traffickers seeking to exploit the U.S. opioid epidemic and prescription pill misuse. Criminal drug networks are shipping chemicals from China to Mexico where they are converted to dangerous substances like fentanyl and methamphetamine and then pressed into pills. The end result—deadly, fake prescription pills—are what these criminal drug networks make and market to prey on Americans for profit. These fake, deadly pills are widely available and deadlier than ever. Fake pills are designed to appear nearly identical to legitimate prescriptions such as Oxycontin®, Percocet®, Vicodin®, Adderall®, Xanax® and other medicines. Criminal drug networks are selling these pills through social media, e-commerce, the dark web, and existing distribution networks.
Along with the alert came a warning that the only safe medications are ones prescribed by a trusted medical professional and dispensed by a licensed pharmacist. Any pills that do not meet this standard are unsafe and potentially deadly. DEA’s National Prescription Drug Take Back Day reflects DEA’s commitment to Americans’ safety and health, encouraging the public to remove unneeded medications from their homes as a measure of preventing medication misuse and opioid addiction from ever starting.
On Saturday, Oct. 23, 2021, DEA, and its partners will collect tablets, capsules, patches, and other solid forms of prescription drugs. Liquids (including intravenous solutions), syringes and other sharps, and illicit drugs will not be accepted. DEA will also continue to accept vaping devices and cartridges provided lithium batteries are removed.
A location finder and partner toolbox are available at www.DEATakeBack.com for easy reference to nearby collection sites. Beyond DEA’s Take Back Day, there are also opportunities to regularly and safely dispose of unneeded medications at more than 13,000 pharmacies, hospitals, police departments, and businesses working to help clean out medicine cabinets throughout the year.
Convicted Felon Sentenced to 87 Months Imprisonment for Illegal Possession of FirearmsRead the Press Release
EAST ST. LOUIS, Ill. – A man from the Metro East will spend more than seven years in prison for
illegally possessing firearms. Michael L. Dawson, 29, of East St. Louis, Illinois, was sentenced to
87 months in federal prison for being a Felon in Possession of a Firearm.The crime occurred in December of 2019 when the United States Marshals Service located Dawson at
his residence in East St. Louis, Illinois, and arrested him on an active arrest warrant. Agents
recovered a total of six different guns. One of the weapons found was a semi-automatic rifle with
a high-capacity magazine. An assortment of miscellaneous ammunition was also discovered
during the search. Federal law prohibits convicted felons from possessing firearms or firearm
ammunition. A federal grand jury indicted Dawson in January of 2020, and Dawson pled guilty on
June 24, 2021.As part of his sentence, Dawson will serve a three-year term of supervised release following his
release from federal prison.The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF),
the United States Marshals Service Great Lakes Regional Fugitive Task Force, and the Illinois State
Police.
Assistant U.S. Attorneys Ali Burns and David Dean prosecuted the case.Christian County Man Indicted for Federal Drug and Firearm OffensesRead the Press Release
Owensboro, KY. – A federal grand jury returned an indictment on October 13, 2021, charging Nigel Sanders, 31, of Christian County, Kentucky, for Possession with the Intent to Distribute and Distribution of Methamphetamine, being a Prohibited Person in Possession of a Firearm, and for Possessing a Firearm in Furtherance of a Drug Trafficking Crime
According to the Indictment, Sanders has multiple prior felony drug trafficking convictions and a prior felony conviction for a weapons offense.
Sanders faces not less than 10 years and not more than life in prison for Possession with the Intent to Distribute and Distribution of Methamphetamine and not more than 10 years in prison for being a Prohibited Person in Possession of Firearm. Sanders faces an additional 5-year consecutive term of imprisonment for Possession of a Firearm in Furtherance of a Drug Trafficking Crime. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. There is no parole in the federal system.
The case is scheduled for arraignment on November 23, 2021, at 10:00 a.m. before Magistrate Judge H. Brent Brennenstuhl.
Acting U.S. Attorney Michael A. Bennett of the Western District of Kentucky made the announcement.
This case is being prosecuted by Assistant United States Attorney Leigh Ann Dycus. It was investigated by the Madisonville Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
An Indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Chicago Investment Manager Sentenced to 17 Years in Federal Prison for Swindling $10 Million from Clients and LendersRead the Press Release
CHICAGO — A Chicago investment manager who swindled more than $10 million from clients and lenders has been sentenced to 17 years in federal prison.
SHAWN BALDWIN owned and controlled various investment firms in Chicago. From 2006 to 2017, Baldwin exaggerated his financial success and professional connections to fraudulently obtain more than $11 million from at least 24 investors and lenders. Baldwin falsely claimed that their funds would be invested in stocks and other investment products, when in reality he spent much of the money for his personal benefit, including jewelry, tuition, and international travel.
Baldwin also deceived investors and lenders by misrepresenting and minimizing the serious disciplinary actions taken against him by regulators. The regulatory actions included the revocation of his certifications with the Financial Industry Regulatory Authority in 2009, and a permanent prohibition from offering securities sales or investment advice, which the State of Illinois imposed in 2013.
A jury in 2019 convicted Baldwin, 55, of Olympia Fields, Ill., on seven counts of wire fraud. U.S. District Judge John Robert Blakey imposed the prison sentence Monday after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.
“Defendant inflated to his victims his credentials, his investment portfolio, and his connections,” Assistant U.S. Attorneys Matthew Getter, Heidi Manschreck, and Michelle Petersen argued in the government’s sentencing memorandum. “He convinced friends, acquaintances, and even childhood friends to trust him with their money based on his representations that he would invest it on their behalves in certain equities or businesses of his own. Defendant lied to his victims to get their money, making bold and untrue assertions about his plans for their money, about what he had done with their money, about the value of their investments, about the value of his businesses, about his efforts to refund their money, and about the reasons he could not give them back their money. Defendant moved from one victim to another, using their money to continue traveling in style around the world to sustain a false image of a successful financier in order to help find new victims and enjoy an extravagant lifestyle.”
Chenango County Man Pleads Guilty to Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Matthew Bormann, age 35, of Sherburne, New York, pled guilty today to possession of child pornography, announced 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, Bormann admitted that on March 12, 2021, during a visit at his home from his United States Probation Officer, Bormann possessed at least 3500 images and video files of child pornography on a cellular telephone he was prohibited from possessing under the conditions of his supervised release.
Bormann was on supervised after a federal conviction in 2014 for possession of child pornography for which he was sentenced on August 18, 2015, to serve 36 months’ imprisonment, and a life term of supervised release.
In addition to his plea to possession of child pornography today, Bormann also admitted to violating the terms of supervised release previously imposed for his 2015 conviction.
Sentencing is scheduled for March 2, 2022 before Senior United States District Judge Thomas J. McAvoy. In addition to any punishment for violating the terms of his supervised release, Bormann faces a mandatory minimum term of 10 years in prison, a maximum term of 20 years in prison, a fine of up to $250,000, and a term of supervised release of between 5 years and up to life. 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 United States Probation Office and the FBI Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI). The case is being prosecuted by Special Assistant U.S. Attorney Adrian S. LaRochelle as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Collinsville Man Sentenced for Distribution of MethamphetamineRead the Press Release
EAST ST. LOUIS, Ill. – Deonta J. Thomas, 29, of Collinsville, Illinois, was sentenced to 10 years
imprisonment for distribution of methamphetamine on October 18, in federal court in East St. Louis.
Thomas previously pled guilty to this offense on May 20, 2021. As part of his guilty plea, Thomas
acknowledged that on September 27, 2018, he sold approximately 442 grams of
crystal methamphetamine to an individual at the Casino Queen in East St. Louis, Illinois, in
exchange for $2,800.In addition to the 10-year term of imprisonment, Thomas will serve a 3-year term of
supervised release following his release from the Bureau of Prisons. Thomas was also ordered to
pay a fine of $500.This case was investigated by the Drug Enforcement Administration.
Assistant United States Attorney Daniel T. Kapsak prosecuted the case.CEO of East Bay-Based Internet Companies Marketing Child-Friendly Services Indicted on Wire Fraud and Securities Fraud ChargesRead the Press Release
SAN FRANCISCO – A federal grand jury has indicted Alan Anderson, charging him with wire fraud and securities fraud charges related to a scheme to use materially false and fraudulent pretenses to induce investors to make contributions to three businesses that were marketed as providing child-friendly internet services, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair.
The indictment filed October 13, 2021, and unsealed today, describes how Anderson, 59, of Walnut Creek, used misrepresentations to solicit investments for the three businesses. According to the indictment, Anderson owned and controlled Imbee, Inc., a Delaware corporation based in Walnut Creek marketed as a child-friendly social media platform; Fanlala, a California corporation marketed as a service providing internet-based music streaming for children; and Fruit Punch, a California corporation marketed as providing music-streaming service for children. The indictment alleges that beginning as early as April of 2010 through May of 2019, Anderson raised money for his companies by making false representations and creating false documents to support his bogus claims. For example, the indictment alleges Anderson created fraudulent income statements and profit and loss statements and misrepresented the companies’ profitability to investors and potential investors; that Anderson created and altered contracts to represent falsely that one or more of his companies would be acquired by larger companies; and that Anderson created and altered contracts to make fraudulent claims that his companies created partnerships with other existing companies. In addition, the indictment describes how Anderson emailed an investor to falsely claim Imbee was worth $21.6 million and that the investor owned 70% of the company.
In sum, the indictment charges Anderson with four counts of wire fraud, in violation of 18 U.S.C. § 1343, and one count of securities fraud, in violation of 15 U.S.C. §§ 78j(b) & 78ff and 17 C.F.R. 240.10b-5. Anderson was arrested today in Walnut Creek. He will make his initial federal court appearance tomorrow at 10:30a.m., before U.S. Magistrate Judge Thomas S. Hixson, in San Francisco.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, each count of wire fraud carries a maximum sentence of 20 years in prison and a maximum $250,000 fine. The securities fraud charge carries a maximum 20 years of imprisonment and a $5,000,000 fine. In addition, the court also may order a term of supervised release, fines or other assessments, and restitution, if appropriate. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Christiaan Highsmith and Scott Joiner of the Office’s Corporate and Securities Fraud Section are prosecuting this case with the assistance of Claudia Hyslop, Morgan Byrne and Ralph Banchstubbs. This prosecution is the result of an investigation by the FBI.
Casper Man Pleads Not Guilty to Possession of Child Pornography ChargeRead the Press Release
Acting United States Attorney Bob Murray announced today that JEREMIAH LINCOLN CURRENT, age 39 of Casper, Wyoming, was charged by indictment for possession of child pornography.
Current appeared before Federal District Court Chief Judge Scott W. Skavdahl on October 15, 2021, for an arraignment hearing and pleaded not guilty to the charge. A jury trial been set to occur on December 20, 2021 in Casper. Current was remanded to the custody of the United States Marshals Service.
This crime carries a term of up to 20 years imprisonment, five years to life of supervised release, a $250,00 fine, a $100 special assessment, and a $5,000 special assessment and mandatory restitution of not less than $3,000 per requesting victim pursuant to the Amy, Vicky, and Andy Child Pornography Victim Assistance Act of 2018.
This crime was investigated by the Wyoming Division of Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Timothy J. Forwood.
An indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty.
Case number: 0:21-cr-00107
Brooklyn Man Charged with Enticement of Two 14-Year-Old ChildrenRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Ricky J. Patel, the Acting Special Agent-in-Charge of the New York Field Office of the Department of Homeland Security (“HSI”), announced today the arrest of FABRICE TONTISABO, a/k/a “Fabrice Williams” for persuading, inducing, enticing and coercing two 14-year-old minors to engage in sexual activity. TONTISABO was arrested this morning and will be presented later today before U.S. Magistrate Judge Robert W. Lehrburger in Manhattan federal court.
U.S. Attorney Damian Williams said: “As alleged, Fabrice Tontisabo engaged in abhorrent sexual activities with two 14-year-old children. We will continue to use every law enforcement asset available to protect our children, and we will investigate, prosecute, and punish those who engage in their exploitation.”
Acting HSI Special Agent-in-Charge Ricky J. Patel said: “As alleged, Sidbewende Fabrice Tontisabo preyed upon the most vulnerable members of society, innocent children. Through its investigation, HSI New York’s Human Trafficking Task Force was able to arrest Tontisabo and put an end to his alleged abuse. Working with our local, state, and federal partners, HSI New York utilizes its unique authorities and resources to prevent these predators from harming innocent victims.”
According to the Complaint[1] filed on September 9, 2021 in Manhattan federal court and unsealed today:
Between at least on or about October 2020, up to and including at least on or about March 2021, TONTISABO persuaded a 14-year-old minor (“Minor Victim-1”) to meet him in person on multiple occasions to engage in sexual activities with TONTISABO in exchange for cash, alcohol, and marijuana.
In addition, between at least on or about October 2019, up to and including at least on or about January 2020, TONTISABO persuaded another 14-year-old minor (“Minor Victim-2”) to meet him in person on multiple occasions to engage in sexual activities with TONTISABO in exchange for cash, alcohol, and marijuana.
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TONTISABO, 33, of Brooklyn, New York, is charged with two counts of enticement of a minor, which each carry a mandatory minimum sentence of 10 years in prison and a maximum sentence of life imprisonment. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the efforts of HSI. He added that the investigation is ongoing.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Camille Fletcher and Kevin Mead are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitutes only allegations, and every fact described therein should be treated as an allegation.
Bronx Gang Member Convicted of Two Attempted MurdersRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that a jury returned a guilty verdict yesterday against JOSE CABAN, a/k/a “Nene,” on four counts in a Superseding Indictment, including charges of violent crimes in aid of racketeering, and firearms offenses. CABAN was convicted after a four-day trial presided over by U.S. District Judge Valerie E. Caproni.
U.S. Attorney Damian Williams said: “Jose Caban participated in a violent gang. He helped shoot an 18-year-old who was paralyzed as a result, and he opened fire on a crowded street filled with children. Now convicted of his crimes, Caban will no longer be able to inflict harm on the people of this City.”
According to the Superseding Indictment and the evidence at trial:
The Jack Boyz are a criminal enterprise involved in committing numerous acts of violence, including shootings, in and around the Bronx. Members and associates of the Jack Boyz engage in violence to retaliate against rival gangs, and to promote the standing and reputation of the Jack Boyz.
On June 19, 2018, near East 136th Street and Willis Avenue in the Bronx, New York, CABAN helped another gang member attempt to murder a rival, who was shot in the spine and paralyzed from the chest down.
On February 8, 2019, CABAN fired a gun five times on a street crowded with innocent bystanders, including children, in an attempt to murder a rival near East 135th Street and Willis Avenue in the Bronx.
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CABAN, 22, of the Bronx, New York, was convicted on four counts: (1) two counts of attempted murder and assault with a dangerous weapon in aid of racketeering, each of which carries a maximum prison term of 20 years; and (2) two counts of using and carrying a firearm during, and possessing a firearm in furtherance of, a crime of violence, each of which carries a mandatory consecutive prison term of 10 years and a maximum prison term of life.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
CABAN is scheduled to be sentenced on February 17, 2022.
Mr. Williams praised the outstanding investigative work of the New York City Police Department and Homeland Security Investigations.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jamie E. Bagliebter, Lindsey Keenan, Justin V. Rodriguez, and Mathew Andrews are in charge of the prosecution.
Bloomsburg Couple Plead Guilty to Committing over $430,000 Money Laundering Scheme, Including $300,000 in Covid-Relief FraudRead the Press Release
WILLIAMSPORT- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on October 18, 2021, Darryl Corradini, age 63, and Vicki Hackenberg, age 57, both of Bloomsburg, Pennsylvania, pleaded guilty before Chief District Court Judge Matthew W. Brann to conspiring to commit money laundering. The laundering activities involved hundreds of thousands of fraudulently obtained funds, including nearly $300,000 in COVID-19 relief guaranteed by the Small Business Administration through the Paycheck Protection Program (PPP).
The PPP is designed to help small businesses facing financial difficulties during the COVID-19 pandemic. Funded by the March 2020 CARES Act, PPP funds are offered in forgivable loans, provided that certain criteria are met, including use of the funds for employee payroll, mortgage interest, lease, and utilities expenses.
According to Acting U.S. Attorney Bruce D. Brandler, Corradini and Hackenberg admitted to assisting their coconspirators by creating a shell corporation, CGM Realty LLC, and opening bank accounts and a Bitcoin trading account in the corporation’s name, by using false and forged documents. Corradini and Hackenberg also assisted their conspirators in obtaining over $135,000 in fraudulently obtained funds, and over $296,000 from a PPP loan that was obtained with false and forged documentation. That documentation included false information and certifications about CGM Realty LLC’s employee payroll obligations, and intention to use the funds for approved purposes, when in fact CGM Realty LLC had no employees or legitimate business operations. Forged IRS documentation also was included with the PPP application, containing false information about CGM Realty LLC’s nonexistent payroll obligations. Over $350,000 was then used to purchase Bitcoins, a type of cryptocurrency, with Corradini and Hackenberg obtaining several thousand dollars for their efforts.
As part of their guilty pleas, Corradini and Hackenberg agreed to forfeit several checks to investigators, and to pay over $430,000 in restitution.
“COVID-19 relief fraud is a high priority for the Department of Justice and our office will continue to vigorously investigate and prosecute these offenses,” stated Acting United States Attorney Bruce D. Brandler. “These funds were intended to help people and businesses harmed by the pandemic, not to line the pockets of fraudsters. We will do everything in our power to make sure that individuals involved in this type of criminal behavior are prosecuted to the fullest extent the law allows.”
The case was investigated by the IRS, Criminal Investigations Division. The case is being prosecuted by Assistant U.S. Attorney Phillip J. Caraballo.
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.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the offense is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Billings man sentenced to prison for bad check scheme, illegal possession of firearmRead the Press Release
BILLINGS — A Billings man who admitted to defrauding local businesses by passing stolen and forged checks and to illegally possessing a firearm was sentenced today to five years and five months in prison to be followed by three years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Carl Mark Madden, 47, pleaded guilty in April to wire fraud, aggravated identity theft and felon in possession of a firearm.
U.S. District Judge Susan P. Watters presided. Judge Watters also ordered $7,536 restitution.
The government alleged in court documents that Madden was involved in a scheme to defraud local businesses by passing stolen and forged checks throughout the Billings community. Madden used the identification of multiple victims and forged the signatures of real people so he could pass the checks. Madden was recorded on surveillance video at Shipton’s Big R East forging the signature of a victim on a check. Madden confessed the scheme to law enforcement on Nov. 17, 2020. Prior to the confession, a Billings Police Department officer saw Madden walking down State Avenue and asked if Madden would voluntarily go with him to police headquarters for questioning about the scheme. Madden agreed and during a safety pat down, the officer found drug paraphernalia. Madden consented to a search of a briefcase he was carrying, and the officer found a loaded .45-caliber pistol that had been reported stolen. Madden later admitted to buying the gun from an associate. Madden was prohibited from possessing a firearm because of felony convictions in South Carolina.
Assistant U.S. Attorney Colin M. Rubich prosecuted the case, which was investigated by the Billings Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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Berwick Man Pleads Guilty to Committing over $400,000 in Covid-Relief FraudRead the Press Release
WILLIAMSPORT- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Hayes D. Horner, Jr., age 67, of Berwick, Pennsylvania, pleaded guilty to committing wire fraud in a scheme to obtain and attempt to obtain over $400,000 in COVID-19 relief guaranteed by the Small Business Administration through the Economic Injury Disaster Loan (EIDL) program. Horner pleaded guilty before Chief District Court Judge Matthew W. Brann on October 18, 2021, and was released pending sentencing.
The EIDL program is designed to help small businesses facing financial difficulties during the COVID-19 pandemic. Funded by the March 2020 CARES Act, EIDL funds are offered in low-interest rate loans, designated for specific business expenses, such as fixed debts, payroll, and business obligation.
According to Acting U.S. Attorney Bruce D. Brandler, Horner pleaded guilty to aiding his coconspirators in obtaining and attempting to obtain over $400,000 in EIDL funds by opening two bank accounts that received EIDL funds obtained pursuant to fraudulent loan applications made in the names of identity theft victims. Horner allegedly withdrew over $58,000 in fraudulently obtained EIDL funds, and attempted unsuccessfully to wire approximately $165,000 in fraudulently obtained EIDL funds to other accounts under his coconspirators’ control.
Investigators seized over $100,000 in fraudulently obtained EIDL funds from a bank account under Horner’s control. As part of his guilty plea, Horner agreed to forfeit those seized funds, and to repay nearly $160,000 in restitution.
“COVID-19 relief fraud is a high priority for the Department of Justice and our office will continue to vigorously investigate and prosecute these offenses,” stated Acting United States Attorney Bruce D. Brandler. “These funds were intended to help people and businesses harmed by the pandemic, not to line the pockets of fraudsters. We will do everything in our power to make sure that individuals involved in this type of criminal behavior are prosecuted to the fullest extent the law allows.”
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Berks County Man Sentenced to Five Years for 2019 Lancaster-Area Armed Bank RobberyRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Richard Garland Jones, 24, of Reading, PA, was sentenced to five years in prison, five years of supervised release by United States District Court Judge Joseph F. Leeson, Jr., for committing an armed bank robbery in April 2019.
In March 2021, the defendant pleaded guilty to an Indictment charging him with the gunpoint robbery of a bank on Oregon Pike in Brownstown, PA, stealing approximately $117,000. Jones was the gunman during the robbery, and another defendant (who also pleaded guilty) was the getaway driver. Jones fled the bank and jumped into the getaway car. The police pursued the robbers and apprehended them after they lost control and crashed the vehicle. Police officers found Jones in possession of the $117,000 in cash and other evidence, including the pellet gun that he used during the robbery.
“This may not be common knowledge so it bears repeating: robbing a bank – armed or not – is a serious federal crime which will result in a significant prison sentence for everyone involved,” said Acting U.S. Attorney Williams. “In this case, the defendants may have been after easy money, but Jones is now losing years of his life to a federal prison sentence. It is not worth it.”
The case was investigated by the West Earl Township Police Department, the Akron Borough Police Department, the East Cocalico Township Police Department, the Pennsylvania State Police, the Lancaster County District Attorney’s Office, and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.
Barbour County man indicted on drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Joseph Wayne Dadisman, of Philippi, West Virginia, was indicted today on a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Dadisman, 49, was indicted on one count of “Possession with intent to Distribute Methamphetamine.” Dadisman is accused of having more than 50 grams of methamphetamine, also known as “crystal meth” and “ice,” in June 2021 in Barbour County.
Dadisman faces at least 10 years and up to life incarceration and a fine of up to $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug Task Force and the Barbour County Sheriff’s Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Australian National Sentenced to More Than 9 Years in Prison for Multimillion-Dollar Text-Messaging Consumer Fraud SchemeRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, announced that MICHAEL PEARSE, an Australian national who was extradited to the United States from Australia in January 2021, was sentenced today to 109 months in prison for his participation in a fraudulent scheme to charge hundreds of thousands of mobile phone customers millions of dollars in monthly fees for unsolicited, recurring text messages without the customers’ knowledge or consent – a practice the conspirators referred to as “auto-subscribing.” PEARSE played a key role in the scheme as CEO of a company that created the computer program that was used to enroll victims into the text message services without their knowledge or consent. PEARSE previously pled guilty before United States District Judge Analisa Torres, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “Michael Pearse played a vital role in an international consumer fraud conspiracy that swindled hundreds of thousands of mobile phone customers out of millions, and ‘earned’ Pearse and his co-conspirators at least $50 million, of which Pearse pocketed more than $10 million. Thanks to IRS Criminal Investigation and the FBI, as well as our international partners, Pearse was apprehended, prosecuted, and now sentenced for his crime.”
According to the allegations contained in the Indictment, evidence presented at the trial of co-conspirator Darcy Wedd, court filings, and statements made during plea proceedings:
From in or about 2011 through in or about 2013, PEARSE and his co-conspirators engaged in a multimillion-dollar scheme to defraud U.S.-based consumers (and others) by placing unauthorized charges for premium text messaging services on consumers’ cellular phone bills. To carry out the scheme, PEARSE and others caused unsolicited and recurring text messages to be sent to mobile phone users containing content such as horoscopes, celebrity gossip, or trivia facts. The victims of the fraud scheme never ordered these services, which were known in the industry as premium text messaging (“PSMS”) services, but were fraudulently “auto-subscribed” and billed for them at a rate of $9.99 per month. The $9.99 charge recurred each month unless and until consumers noticed the charges and took action to unsubscribe. Even then, consumers’ attempts to dispute the charges and obtain refunds were often unsuccessful.
During the relevant period, co-conspirator Lin Miao operated a company called Tatto Inc., a/k/a “Tatto Media” (“Tatto”), that offered PSMS services to mobile phone customers. PEARSE was the CEO of a company called Bullroarer, which was affiliated with Tatto. To enable Tatto to auto-subscribe consumers to unwanted PSMS services, PEARSE and co-defendant Yongchao Liu, a/k/a “Kevin Liu,” who worked as a Java Development Engineer for Bullroarer, agreed to build a computer program that could spoof the required consumer authorizations – i.e., a program that could generate the text message correspondence that one would ordinarily see with genuine PSMS subscriptions. PEARSE and Liu agreed to build the program (the “Auto-Subscription Platform”), which was operational by in or about the middle of 2011. PEARSE, Liu, and Miao then used the Auto-Subscription Platform to fraudulently auto-subscribe hundreds of thousands of mobile phone customers, using phone numbers provided by co-conspirators at Mobile Messenger, a U.S. aggregation company operated by Darcy Wedd that served as a middleman between content providers such as Tatto and mobile phone carriers. Through their successful orchestration of the fraudulent scheme, PEARSE and his co-conspirators generated more than $50 million in fraud proceeds for themselves and PEARSE personally pocketed more than $10 million.
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In addition to the prison sentence, PEARSE was ordered PEARSE to forfeit $10,162,937.96, as well as his interest in three real properties in Australia and other assets, representing proceeds traceable to the fraud that PEARSE personally obtained.
To date, nine other defendants – Liu, Miao, Andrew Bachman, Michael Pajaczkowski, Erdolo Eromo, Jonathan Murad, Francis Assifuah, Jason Lee, and Christopher Goff – have pled guilty in connection with their participation in the fraud. Two additional defendants, Darcy Wedd and Fraser Thompson, were convicted in 2017 following jury trials.
Mr. Williams praised the outstanding investigative work of the Internal Revenue Service, Criminal Investigation, and the Federal Bureau of Investigation. In addition, Mr. Williams thanked law enforcement partners in Australia, as well as the U.S. Department of Justice’s Office of International Affairs of the Department’s Criminal Division, for their support and assistance with the extradition of PEARSE and codefendant Liu.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Jilan Kamal and Olga I. Zverovich are in charge of the prosecution.
Arizona Man Sentenced to Prison for Trafficking Drugs to ConnecticutRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that NOE CASTRO, 51, of Phoenix, Arizona, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 20 months of imprisonment for trafficking narcotics into Connecticut.
According to court documents and statements made in court, in late 2018, the Drug Enforcement Administration’s New Haven Task Force and New Haven Police Department began investigation an organization that was responsible for trafficking kilogram-quantities of heroin, fentanyl and cocaine from Mexico and Arizona to the New Haven area. Investigators subsequently identified Juan Carlos Gonzalez-Rubio as being responsible for moving narcotics from Arizona to Connecticut. Between March and May 2019, investigators intercepted three packages – two that contained approximately one kilogram of cocaine, and one that contained approximately one kilogram of a mixture of heroin and fentanyl – that Gonzalez-Rubio, with Castro’s assistance, had shipped from Arizona to New Haven. The investigation revealed that Gonzalez-Rubio and Castro trafficked narcotics both through the use of commercial shipping methods, like UPS and FedEx, and by secreting drugs in cars with hidden compartments that were transported on commercial car-haulers.
Castro has been detained since his arrest on March 6, 2020. On June 2, 2021, he pleaded guilty to conspiracy to distribute, and to possess with the intent to distribute, heroin, fentanyl and cocaine.
On August 21, 2021, Gonzalez-Rubio was sentenced to 48 months of imprisonment. Gonzalez-Rubio, who was previously deported to Mexico and returned to the U.S., faces immigration proceedings at the conclusion of his sentence.
This matter was investigated by the DEA Task Force and the New Haven Police Department, with the assistance of the DEA in Tucson and Phoenix, and Homeland Security Investigations (HSI) in New Haven and Tucson. This case was prosecuted by Assistant U.S. Attorneys Jocelyn Courtney Kaoutzanis and Rahul Kale.
Acting U.S. Attorney Gonzalez Encourages Idahoans to Participate in DEA’s National Prescription Drug Take Back Day This SaturdayRead the Press Release
BOISE – Acting U.S. Attorney Rafael M. Gonzalez, Jr. wants to ensure that Idahoans are aware how to rid their homes of unused and unwanted medications.
With opioid overdose deaths increasing during the pandemic, the Drug Enforcement Administration (DEA) is holding its 21st National Prescription Drug Take Back Day this Saturday, October 23, 2021, at locations across the country, including 29 here in Idaho. The nationwide biannual event aims to addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse.
“Prescription medications often end up in the wrong hands, fueling an epidemic that kills more Americans than car accidents,” said Gonzalez. “DEA is providing an actionable way for our communities to step up and help combat this crisis by simply cleaning out their medicine cabinet. I urge Idahoans to do their part by going to a collection site and safely disposing of unused, expired, and dangerous prescriptions. DEA makes it easy for all of us and I thank them for organizing this biannual event.”
According to a report published by the Substance Abuse and Mental Health Services Administration (SAMHSA), a majority of people who misused a prescription medication obtained the medicine from a family member or friend. The Centers for Disease Control and Prevention reported that last year, more than 93,000 people died of drug overdoses in the United States, marking the largest number of drug-related deaths ever recorded in a year. Opioid-related deaths accounted for 75 percent of all overdose deaths in 2020.
For more than a decade, DEA’s National Prescription Drug Take Back Day has helped Americans easily rid their homes of unneeded medications—those that are old, unwanted, or no longer needed—that too often become a gateway to addiction. Working in close partnership with local law enforcement, Take Back Day has removed more than 7,000 tons of medication from circulation since its inception. These efforts are directly in line with DEA’s priority to combat the rise of overdoses plaguing the United States.
“The United States is in the midst of an opioid epidemic—drug overdoses are up thirty percent over the last year alone and taking more than 250 lives every day,” stated DEA Administrator Anne Milgram. “The majority of opioid addictions in America start with prescription pills found in medicine cabinets at home. What’s worse, criminal drug networks are exploiting the opioid crisis by making and falsely marketing deadly, fake pills as legitimate prescriptions, which are now flooding U.S. communities. One thing is clear: prevention starts at home. I urge Americans to do their part to prevent prescription pill misuse: simply take your unneeded medications to a local collection site. It’s simple, free, anonymous, and it can save a life.”
“The DEA Drug Take Back is more important than ever and is a great opportunity for citizens of Idaho to dispose of their unused, unwanted, or expired prescription medications,” said DEA Special Agent in Charge Frank Tarentino. “Properly disposing of these medications will prevent them from falling into the hands of our children. Please help keep our citizens and communities safe by taking the time to responsibly dispose of your unwanted prescription pills during National Drug Take Back Day.”
DEA’s National Prescription Drug Take Back Day is more important than ever before. Last month, DEA issued a Public Safety Alert and launched the One Pill Can Kill public awareness campaign to warn Americans of a surge in deadly, fake prescription pills driven by drug traffickers seeking to exploit the U.S. opioid epidemic and prescription pill misuse. Criminal drug networks are shipping chemicals from China to Mexico where they are converted to dangerous substances like fentanyl and methamphetamine and then pressed into pills. The end result—deadly, fake prescription pills—are what these criminal drug networks make and market to prey on Americans for profit. These fake, deadly pills are widely available and deadlier than ever. Fake pills are designed to appear nearly identical to legitimate prescriptions such as Oxycontin®, Percocet®, Vicodin®, Adderall®, Xanax® and other medicines. Criminal drug networks are selling these pills through social media, e-commerce, the dark web, and existing distribution networks.
Along with the alert came a warning that the only safe medications are ones prescribed by a trusted medical professional and dispensed by a licensed pharmacist. Any pills that do not meet this standard are unsafe and potentially deadly. DEA’s National Prescription Drug Take Back Day reflects DEA’s commitment to Americans’ safety and health, encouraging the public to remove unneeded medications from their homes as a measure of preventing medication misuse and opioid addiction from ever starting.
DEA and its partners will collect tablets, capsules, patches, and other solid forms of prescription drugs. Liquids (including intravenous solutions), syringes and other sharps, and illicit drugs will not be accepted. DEA will also continue to accept vaping devices and cartridges provided lithium batteries are removed.
A location finder and partner toolbox are available at www.DEATakeBack.com for easy reference to nearby collection sites. Beyond DEA’s Take Back Day, there are also opportunities to regularly and safely dispose of unneeded medications at more than 13,000 pharmacies, hospitals, police departments, and businesses working to help clean out medicine cabinets throughout the year.
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Tuesday 19 October 2021
York Man Sentenced to 15 Months’ Imprisonment for Stealing $105,875 Worth of Postage StampsRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Elieze Guilamo, age 20, of York, Pennsylvania, was sentenced today to 15 months’ imprisonment by United States District Court Judge Christopher C. Conner for conspiring to steal government property.
According to Acting United States Attorney Bruce D. Brandler, Guilamo previously pleaded guilty to conspiring with other individuals to purchase $105,875 worth of postage stamps from post offices in the Middle District of Pennsylvania and elsewhere. Guilamo admitted that to purchase the stamps, he used personal checks, knowing that the funds in his bank account were insufficient to cover the cost of the stamps. As part of his plea agreement, Guilamo agreed to pay restitution to the U.S. Postal Service in the amount of $105,875, which represents the value of the postage stamps that Guilamo and his coconspirators unlawfully obtained.
Guilamo’s codefendants, Steven Williams and Arthur Gibson, were previously sentenced to 30 months’ imprisonment and 18 months’ imprisonment, respectively.
The case was investigated by the United States Postal Inspection Service and the Northeastern Regional Police Department. Assistant U.S. Attorney Carlo D. Marchioli prosecuted the case.
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Wisconsin Rapids Man Sentenced to 6 Years on Methamphetamine ChargeRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Doua Moua, 37, Wisconsin Rapids, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to six years in prison for possessing methamphetamine with intent to distribute. Moua pleaded guilty to this charge on August 3, 2021.
On December 10, 2020, an officer from the Buffalo County Sheriff’s Department pulled over a car driven by Moua for a cracked windshield and reckless driving. The officer confirmed that Moua and his passenger, Zakaree Stelzer, both had active state arrest warrants. Officers searched Moua’s car and found a toolbox in the trunk that contained approximately 465 grams, or just over 1 pound of methamphetamine. During post-arrest interviews, Moua and Stelzer admitted buying the methamphetamine together in the Twin Cities. Moua and Stelzer both stated that they intended to sell the methamphetamine in the Wisconsin Rapids area.
At the sentencing hearing, Judge Conley noted that Moua was on active state supervision at the time of his arrest for a prior conviction for methamphetamine trafficking. Judge Conley also noted that Moua had been released from prison less than one year before he was arrested in Buffalo County and his drug trafficking was “escalating.” Judge Conley also noted that Moua’s previous three-year prison sentence for methamphetamine trafficking failed to deter him from selling methamphetamine.
Stelzer pleaded guilty on August 26, 2021 to possessing methamphetamine with intent to distribute and will be sentenced by Judge Conley on November 22, 2021.
The charge against Moua was a result of an investigation conducted by the West Central Drug Task Force, Buffalo County Sheriff’s Department, Mondovi Police Department, and the Drug Enforcement Administration. Assistant U.S. Attorney Aaron Wegner handled the prosecution.
Violent Guatemalan Drug Lord Receives Life Sentence in EDTXRead the Press Release
SHERMAN, Texas – A Guatemalan national who operated an international drug trafficking ring received a life sentence, announced Acting U.S. Attorney Nicholas J. Ganjei.
Wilson Wilfredo Luargas-Garcia, a/k/a “Primazo,” 44, was convicted on Sep. 18, 2019 to conspiracy to manufacture and distribute five kilograms or more of cocaine for distribution into the United States. On Oct. 18, 2021, after a full-day sentencing hearing that stretched into the late evening hours, U.S. District Judge Amos L. Mazzant sentenced Luargas-Garcia to a term of life imprisonment.
According to information presented in court, Luargas-Garcia was a prolific drug trafficker, responsible for the trafficking of large amounts of cocaine to drug cartels and guerrilla fighters in Central and South America. He coordinated shipments with the Revolutionary Armed Forces of Colombia (also known as the FARC), one of Colombia’s largest and most violent rebel groups. Luargas-Garcia, who had a reputation for employing violence against his rivals, used illicit proceeds from his drug sales to acquire weapons and to train his personal paramilitary security guards.
In April 2018, Luargas-Garcia was extradited to the Eastern District of Texas to face drug charges. Despite being in custody, however, he continued to run his drug trafficking organization from various local jails. Fellow inmates helped to facilitate Luargas-Garcia’s drug operation by smuggling cell phones and other contraband into the jail facilities. Federal investigators teamed with the Smith County Sheriff’s Office and the Guatemalan Ministerio Público to uncover these activities and dismantle the drug operation. In retaliation, Luargas-Garcia threatened to kill a federal prosecutor.
“Mr. Luargas-Garcia’s sentence sends a strong message that international drug traffickers are not safe from prosecution simply because they reside overseas,” said Acting U.S. Attorney Nicholas J. Ganjei. “EDTX will continue to be aggressive in its efforts to extradite and prosecute international drug traffickers and to stop their deadly shipments from ever making it to American shores.”
“Today, Mr. Luargas-Garcia is being held responsible for actions he took thousands of miles away that have a direct impact on our neighborhoods and our families,” said DEA Special Agent in Charge Eduardo A. Chávez. “Criminals who attempt to broker and facilitate cocaine shipments into the United States will meet swift justice through DEA Dallas’ tireless efforts to dismantle these Transnational Criminal Organizations across the world.”
“The sentence is a remarkable success,” said Gerson Russell Alegría Meza, Chief Prosecutor for narcotics in Guatemala. “The fundamental strategy to fight against drug trafficking is to work in a safe, immediate, coordinated, and effective manner between the United States and Guatemala.”
This effort is part of an Organized Crime Drug Enforcement Task Force (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 case was investigated by the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the Smith County Sherriff’s Office, and the Fiscalia de Delitos de Narcoactividad, Ministerio Publico, Guatemala. The Justice Department’s Office of International Affairs provided significant assistance in securing his extradition from Guatemala.
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Uniontown Man Charged with Producing Child Porn Videos and ImagesRead the Press Release
PITTSBURGH – A resident of Uniontown, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on a charge of Production of a Visual Depiction of a Minor Engaged in Sexually Explicit Conduct, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Zachary Bosh, age 38, as the sole defendant.
According to the Indictment, on or about April 12, 2019, Bosh produced digital images and videos that depict the sexual exploitation of a minor female.
The law provides for a total sentence of not less than 15 years in prison and a fine not to exceed $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation in conjunction with the FBI Washington Field Office’s (WFO) Child Exploitation and Human Trafficking Task Force Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
U.S. Rep. Jeff Fortenberry Charged with Scheme to Deceive Federal Investigators Probing Illegal Campaign Contributions in 2016Read the Press Release
LOS ANGELES – A federal grand jury today charged U.S. Representative Jeff Fortenberry, who represents Nebraska’s 1st Congressional District, with concealing information and making false statements to federal authorities who were investigating illegal contributions made by a foreign national to the congressman’s 2016 re-election campaign.
Fortenberry, 60, of Lincoln, Nebraska, was named in an indictment that charges him with one count of scheming to falsify and conceal material facts and two counts of making false statements to federal investigators. Fortenberry has served in Congress since 2005.
The indictment alleges that Fortenberry repeatedly lied to and misled authorities during a federal investigation into illegal contributions to Fortenberry’s re-election campaign made by a foreign billionaire in early 2016. Gilbert Chagoury, a foreign national prohibited by federal law from contributing to any U.S. elections, arranged for $30,000 of his money to be contributed through other individuals (conduits) to Fortenberry’s campaign during a fundraiser held in Los Angeles, according to the indictment.
It is illegal for foreign nationals to make contributions to a federal campaign. It also is illegal for the true source of campaign contributions to be disguised by funneling the money through third-party conduits. And it is illegal for a federal candidate to knowingly receive foreign or conduit contributions. Chagoury entered into a deferred prosecution agreement with the United States Attorney’s Office in 2019 in which he admitted providing approximately $180,000 that was used to make illegal contributions to four different political candidates in U.S. elections. Chagoury also agreed to pay a $1.8 million fine and cooperate with federal authorities.
The co-host of the Fortenberry 2016 fundraiser, who is referred to in the indictment as “Individual H,” began cooperating with federal authorities in September 2016 and informed special agents with the FBI and IRS Criminal Investigation about the illegal contributions, the indictment states. In response, investigators began looking into whether the Fortenberry campaign received illegal conduit contributions, whether Fortenberry knew about illegal contributions – both foreign contributions and conduit contributions – at the 2016 fundraiser, whether Fortenberry knew about illegal foreign contributions from Chagoury, and whether Fortenberry had any direct or indirect communications with Chagoury in relation to the contributions made at the 2016 fundraiser.
In the spring of 2018, Fortenberry contacted Individual H about hosting another fundraiser. In a June 2018 call, Individual H told the congressman on multiple occasions that a Chagoury associate – Toufic Joseph Baaklini, who also entered into a deferred prosecution agreement with prosecutors – had provided him with $30,000 cash to route to Fortenberry’s campaign at the 2016 fundraiser, the indictment alleges. Individual H allegedly told Fortenberry that the money – which was distributed to other individuals at the fundraiser so the donations could be made under their names and avoid individual donor limits – “probably did come from Gilbert Chagoury.”
Despite learning of the illegal campaign contributions, Fortenberry did not file an amended report with the Federal Elections Commission, the indictment alleges.
The indictment alleges a scheme in which Fortenberry, after learning this information, “knowingly and willfully falsified, concealed, and covered up by trick, scheme, and device material facts” about the illegal campaign contributions.
As part of the scheme, Fortenberry allegedly made false and misleading statements during a March 23, 2019 interview with investigators who specifically told him it was a crime to lie to the federal government. The indictment alleges that Fortenberry falsely told investigators that he was not aware of Baaklini ever being involved in illegal campaign contributions, that the individuals who made contributions at the 2016 fundraiser were all publicly disclosed, and that he was not aware of any contributions to his campaign from a foreign national.
At a second interview on July 18, 2019 with federal investigators and prosecutors, Fortenberry allegedly made additional false statements, including denying he was aware of any illicit donation made during the 2016 fundraiser, denying that Individual H had told him Baaklini had provided the $30,000 cash at the 2016 fundraiser, and stating that he would have been “horrified” to learn about the illegal conduit contributions, according to the indictment.
During this second interview, Fortenberry also misleadingly stated he ended the June 2018 call with Individual H after that person made a “concerning comment,” when in fact Fortenberry continued to ask Individual H to host another fundraiser for his campaign, the indictment states.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The three felony charges in the indictment each carry a statutory maximum penalty of five years in federal prison.
Through his attorney, Fortenberry has agreed to appear for an arraignment on Wednesday, October 20 in United States District Court in Los Angeles.
The FBI and IRS Criminal Investigation are investigating this matter.
This case is being prosecuted by Assistant United States Attorneys Mack E. Jenkins, Chief of the Public Corruption and Civil Rights Section, and Susan S. Har, also of the Public Corruption and Civil Rights Section.
U.S. Attorney’s Office and Law Enforcement Partners Address Surge in Violent Crime through Strategic Prosecutions and Community OutreachRead the Press Release
Assistant U. S. Attorneys Connie Wu (619) 546-8592 and Cindy Cipriani (619) 546-9608
NEWS RELEASE SUMMARY – October 19, 2021
SAN DIEGO – To address an increase in violent crime, the U.S. Attorney’s Office and its law enforcement partners in the Southern District of California have launched an effort to strategically prosecute the region’s most violent and prolific offenders who are believed to be most responsible for the spike, including those with criminal history and criminal gang affiliation who commit gun crimes.
According to data released in July by the San Diego Police Department (SDPD), gang-related shootings increased 129 percent in the first half of 2021, compared to 2020, and more than 1,000 guns were recovered pursuant to criminal investigations. Responding to this spike, federal gun-related prosecutions in the Southern District of California increased in FY 2021 by almost 50 percent – to the highest levels seen in this office. Most of the defendants were charged with Dealing in Firearms without a license; Possession of Firearms by Prohibited Persons; or Possession of a Firearm in Furtherance of a Drug Trafficking Crime or Crime of Violence.
“Our overriding goal is to reduce violent crime strategically, rather than merely increasing the number of arrests and prosecutions,” said Acting U.S. Attorney Randy Grossman. “Together with our federal, state and local law enforcement partners, we continually direct our focus to the most dangerous people, those responsible for endangering neighborhoods and driving up the violent crime rate.”
“The Bureau of Alcohol, Tobacco, Firearms and Explosives is the lead federal law enforcement agency involved in investigations of firearm trafficking,” said ATF Los Angeles Field Division Special Agent in Charge Monique Villegas. “ATF’s highest priority is reducing gun-related violence. When firearms make their way into the criminal element, violence occurs. ATF’s goal is to reduce violent crime by restricting the flow of firearms to prohibited persons, violent criminals and across the border to Mexico. By focusing on firearms trafficking through intelligence-driven investigations, ATF aims to keeps guns out of the hands of those criminals pulling the trigger.”
“The FBI is committed to working with our law enforcement partners to root out violent, criminal groups who terrorize our communities,” said FBI Special Agent in Charge Suzanne Turner. “The FBI's multiple interagency task forces have proven to be well-versed in identifying, investigating, and mitigating those violent threats and taking guns off the streets to make our communities safer.”
“I’m proud to partner with the U.S. Attorney’s Office and our law enforcement partners to strategically address the spike in gang violence in San Diego,” said San Diego County District Attorney Summer Stephan. “The DA’s Office has seen gang homicide cases nearly triple in the last year. We want to be part of the solution by working with law enforcement partners to curb violent gang crimes, while also investing in prevention efforts with our community members to redirect our youth into positive and healthy lifestyles.”
“Now more than ever, it is essential that we work together to prevent and respond to violent crime. This partnership sends a message to would-be criminals that keeping San Diego safe is a priority,” said Chief David Nisleit. “I'd like to thank our longstanding community and law enforcement partners for joining us in this effort to fight violent crime.”
Consistent with the comprehensive strategy announced by the Attorney General and Deputy Attorney General in May 2021, the Southern District of California has taken several steps to get guns out of the hands of the most violent offenders and prevent violence in our communities. These efforts include firearm prosecutions initiated against dangerous felons known to be members of gangs. These gun prosecutions involve various types of firearms, and many of the defendants committed the firearm offenses while on probation or parole for prior crimes, including drug trafficking, carjacking, robbery, burglary, false imprisonment, and domestic violence. Two cases recently resulted in lengthy sentences:
- In August 2021, Jason John Clipper, aka “Smokey,” a member of the East Side San Diego criminal street gang with ties to the Mexican Mafia prison gang, was sentenced in federal court to 15 years in prison for unlawfully possessing a firearm, possessing methamphetamine and heroin with the intent to distribute, and possessing a firearm in furtherance of a drug trafficking offense. At the time of his arrest, San Diego County Probation officers found Clipper in possession of approximately 20 grams of methamphetamine, 8 grams of heroin, and a loaded firearm. Clipper was on Post Release Community Supervision for a previous narcotics and firearm conviction in the California Superior Court. (https://www.justice.gov/usao-sdca/pr/san-diego-gang-member-sentenced-15-years-prison-dealing-methamphetamine-and-heroin).
- In September 2021, Joseph Anthony Martino, a convicted felon with a long criminal history that prevents him from legally owning guns, was sentenced in federal court to 10 years in prison for kidnapping and possessing firearms. Martino admitted that on April 1, 2019, he held three people hostage at his Lakeside home, pointing loaded guns – including a fully automatic assault rifle - at their heads and threatening them (https://www.justice.gov/usao-sdca/pr/convicted-felon-sentenced-10-years-prison-kidnapping-and-possessing-firearms).
These cases are part of the DOJ’s initiative to reduce gun violence known as Project Safe Neighborhoods. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems in the community and develops comprehensive prosecution and community outreach solutions to address them.
To ensure our firearm prosecutions maintained strategic focus on the most significant threats to public safety, Acting U.S. Attorney Grossman and the district’s PSN Coordinator, Assistant U.S. Attorney Connie Wu, joined forces with the District Attorney’s Office Gangs Division leadership to convene state, local, and federal law enforcement agencies for the Combatting Gang Violence to Restore Public Safety Summit this past summer. This summit, which will now occur quarterly, is a collaborative effort to identify and address the most significant drivers of violent crime in our district.
In addition to individual firearm prosecutions, the U.S. Attorney’s Office has conducted a number of large-scale takedowns with federal and local law enforcement partners that have made a direct impact on public safety in San Diego.
- In April 2021, a federal grand jury indicted 47 people allegedly associated with illegal gambling establishments that were closely tied to gangs, drugs and violence and had become magnets for a wide variety of criminal activity. Many were charged with Felon in Possession of a Firearm and felon in possession of ammunition. In all, 35 people were arrested, and 44 firearms, more than 12 pounds of methamphetamine, $263,000 in cash, and 640 gambling machines were seized during the two-year investigation. Please see https://www.justice.gov/usao-sdca/pr/forty-seven-defendants-charged-illegal-gambling-and-drug-indictments.
- In May 2021, 23 documented gang members and associates were charged with heroin, methamphetamine and firearms trafficking. This yearlong investigation involved federal wiretaps, dozens of undercover drug and gun buys and extensive surveillance. Many of the defendants are documented members or associates of violent South Bay street gangs operating out of National City, San Ysidro, and elsewhere. Many of these gang have long-standing ties to the Mexican Mafia. In total, authorities seized 2.1 kilograms of methamphetamine, 160 grams of heroin, and nine firearms tied to these defendants during the investigation. Please see https://www.justice.gov/usao-sdca/pr/twenty-three-gang-members-charged-crackdown-south-bay-heroin-methamphetamine-and.
- In June 2021, 60 alleged members of a San Diego-based international methamphetamine distribution network tied to the Sinaloa Cartel were charged with drug trafficking, money laundering and firearms offenses. In addition to these arrests, law enforcement has seized more than 220 pounds of methamphetamine and other illegal drugs; 90 firearms; and more than $250,000 in cash. Please see https://www.justice.gov/usao-sdca/pr/sixty-defendants-charged-nationwide-takedown-sinaloa-cartel-methamphetamine-network.
The federal effort to fight violent crime is not limited to prosecutions. “We are using every tool – not just enforcement, but also prevention and intervention – to make our community safer,” Grossman said. “One of our greatest weapons in combatting violent crime is to combine proven law enforcement methods and expertise with the resources of credible “lived experience” messengers and trusted community organizations.”
To that end, the district’s Project Safe Neighborhoods Task Force has made an unprecedented investment in public safety by awarding more than $1 million in federal over the last two years for distribution to local law enforcement and community organizations to prevent gun violence, facilitate reentry, reduce gang membership, foster safer neighborhoods and research/measure program effectiveness. The most recent grants, approved by DOJ’s Bureau of Justice Assistance last week, include:
- The San Diego City Attorney’s Office received money to help fund its Gun Recovery Impact Program, known as GRIP, which proactively seeks Gun Violence Restraining Orders, a life-saving tool created by California’s “red flag” law to prevent predictable acts of gun violence by removing firearms from individuals who pose a threat to themselves or others. Following a hearing in open court, a judge can prohibit the individual from possessing or purchasing firearms or ammunition for at least one year.
- Rise Up Industries’ (RUI) Reentry Program opened in Santee in March 2016. It helps previously incarcerated, formerly gang-involved individuals to successfully reenter society; thereby reducing the gang population and the recidivism rate. RUI’s Reentry Program provides comprehensive services including employment, job-training, case management, tattoo removal, counseling, mentoring, education assistance, financial literacy, life skills training, and work ethic development. RUI pays full-time wages to Reentry Program members as they work their way through the program.
- San Diego Association of Governments, the regional clearinghouse for crime data, received a grant to enhance its tracking of crimes that involve firearms around the region. This would include the use of a firearm in violent crime and providing information regarding where these crimes are occurring, tracking calls for service related to the use of firearms, and interviewing arrestees regarding their use of firearms and ghost guns.
- Vista Community Clinic received a grant to support its “Resilience” program, which helps justice system-involved youth chart a more positive life course. The program serves teens in the City of Oceanside which faces challenges created by multiple gangs with hundreds of members, many of them minors.
The PSN Task Force awarded additional grants in prior months to several mentoring and/or reentry organizations, including Boys & Girls Club of Oceanside; Education COMPACT; El Centro Police Athletic League; the Imperial County Gang Intelligence Coalition; Inner City Athletics; Reality Changers; Star Pal; UPAC; Vista Community Clinic and Youth Empowerment. Moreover, the Kroc Institute for Peace and Justice received a research grant to recommend data collection protocols, measure program effectiveness, and research best practices for “lived experience” mentoring programs.
In addition to PSN grants, the Southern District of California runs two prevention programs that focus on character building and mentoring. Project LEAD – San Diego, an adaptation of the program started in Los Angeles, is an 8-week program designed to help fifth-grade students understand that the choices they make today can affect their lives forever. Since 2016, the U. S. Attorney’s office has recruited 286 volunteer teachers who have reached 2,816 students. Several local and federal agencies were involved in this effort in addition to the U.S. Attorney’s Office, including: the U.S. Coast Guard, DEA, the San Diego City Attorney’s Office, the U.S. Marshals Service, Customs and Border Protection, U.S. Secret Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Food and Drug Administration, San Diego Police Department, U.S. Probation, Pretrial Services, the State Department, Department of Corrections, Homeland Security Investigations, and the Internal Revenue Service.
While currently on hold due to the pandemic, for more than five years the office also ran the Success Agents mentoring program at Porter Elementary. At the Success Agents weekly workshop, law enforcement mentors worked in a fun and interactive way to help 4th and 5th grade students improve life skills, build confidence and promote a positive relationship with law enforcement. The program also supports families through resource referrals, parent meetings and holiday dinners offered by program partners.
The U.S. Attorney’s office is also a longstanding member of the Community Assistance Support Team (CAST), an organization that works to prevent gang-related gun violence and support victims. By building relationships and communicating directly with gang members, residents and law enforcement, CAST volunteers identify the sources of gun violence in specific neighborhoods and connect individuals with the help they may need, such as gang exit resources, mental health services or alternative methods to resolving conflicts. During the recent violent crime spike, the office supported and participated in CAST Season of Peace events calling for an end to gun violence.
- In August 2021, Jason John Clipper, aka “Smokey,” a member of the East Side San Diego criminal street gang with ties to the Mexican Mafia prison gang, was sentenced in federal court to 15 years in prison for unlawfully possessing a firearm, possessing methamphetamine and heroin with the intent to distribute, and possessing a firearm in furtherance of a drug trafficking offense. At the time of his arrest, San Diego County Probation officers found Clipper in possession of approximately 20 grams of methamphetamine, 8 grams of heroin, and a loaded firearm. Clipper was on Post Release Community Supervision for a previous narcotics and firearm conviction in the California Superior Court. (https://www.justice.gov/usao-sdca/pr/san-diego-gang-member-sentenced-15-years-prison-dealing-methamphetamine-and-heroin).