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18 November 2021
Texas Doctor Sentenced to Prison for Tax EvasionRead the Press Release
ST. PAUL, Minn. – A Texas doctor was sentenced to two years in prison and ordered to pay $857,127.24 in restitution for failing to pay income taxes for 10 years.
According to court documents, Mark B. Reimer, 69, is a physician who operated his own medical practice in Texas from 2003 through 2007 and then, from 2007 through 2015, worked as a physician for a private employer in Minnesota. From 2003 through 2012, Reimer earned an annual salary of more than $440,000. Reimer and his wife, Ana C. Reimer, 69, filed joint tax returns admitting that he had earned more than $4.3 million during that 10-year period, and that he owed more than $1.2 million in federal income taxes. In addition, Reimer owed a $20,000 personal penalty because he had failed to pay employment taxes arising out of his Texas medical practice between 2005 and 2007.
According to court documents, despite having the ability to pay them in full, Mark and Ana Reimer willfully evaded the payment of their tax liabilities. The defendants withdrew more than $337,000 in cash from bank accounts they controlled for the express purpose of preventing the IRS from collecting it. Instead of paying their tax liabilities, Mark and Ana Reimer transferred more than $353,000 to their four adult children and spent more than $251,000 on airline, furniture, and other retail purchases. In 2013 and again in 2015, the defendants jointly filed for bankruptcy for the sole purpose of evading the IRS. During the bankruptcy proceedings, the defendants falsely testified under oath that they had made no monetary transfers or gifts to their children prior to filing for bankruptcy, when, in fact, they had.
On January 13, 2021, the defendants each pleaded guilty to one count of tax evasion. Mark Reimer was sentenced to 24 months in prison, followed by one year of supervised release. Ana Reimer was sentenced to 24 months of probation. The defendants were jointly ordered to pay $857,127.24 in restitution.
Acting U.S. Attorney Charles J. Kovats made the announcement after Senior U.S. District Judge Paul A. Magnuson sentenced the defendant.
This case is the result of an investigation conducted by the IRS Criminal Investigation Division.
This case was prosecuted by Assistant U.S. Attorney David J. MacLaughlin.
Tech Company and CEO Plead Guilty to Twenty Counts of Wire Fraud Mid-TrialRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Micfo, LLC, a tech company located in Charleston, and its chief executive officer (CEO), Amir Golestan, 38, of Charleston, have both pleaded guilty to twenty counts of wire fraud. Specifically, both defendants pled mid-way through a federal trial after evidence presented in the case showed Golestan, acting through Micfo, created fictitious persons and companies to sell fraudulently obtained Internet address rights for millions of dollars.
“Corporate and executive malfeasance can be difficult to detect and even harder to prosecute, and this case is an excellent example of the success we can achieve in spite of this difficulty when we work with our federal and agency partners,” said Acting U.S. Attorney DeHart. “This office greatly appreciates the hard work of the Federal Bureau of Investigation (FBI) and the American Registry for Internet Numbers (ARIN) on this case. I want to especially recognize the efforts of ARIN’s Chief Customer Officer John Sweeting, General Counsel Michael Abejuela, and their outside counsel Steve Ryan and Sam Neel from McDermott Will & Emery LLP.”
“Corporate wrongdoers often avoid accountability by obscuring their criminal conduct through complicated business procedures or by operating in areas unfamiliar to most people,” said Criminal Chief Nathan Williams, who prosecuted the case alongside Assistant United States Attorney Amy Bower. “The world of Internet resources is one of those areas. However, this case shows that the FBI and U.S. Attorney’s Office, along with other agency partners, are capable of detecting complex crimes and prosecuting corporate and executive criminals.”
“Like many corporate fraud criminals often do, Golestan made the mistake of assuming his scheme would not be discovered,” said Susan Ferensic, Special Agent in Charge of the FBI Columbia Field Office. “Make no mistake, the FBI along with our local, state, and federal partners, will work nonstop to uncover and pursue charges for criminals who adversely affect our Internet infrastructure.”
“ARIN is grateful for the hard work by the U.S. Attorney’s Office in South Carolina and the FBI to hold Mr. Golestan and Micfo accountable for the complex fraud perpetrated against ARIN,” said John Curran, ARIN’s President and CEO. “Mr. Golestan’s scheme harmed ARIN and our community of Internet registry customers, and we hope that this outcome will send a clear message to any other parties contemplating fraudulent schemes to obtain or transfer Internet resources”
Evidence presented during the trial showed that Golestan started Micfo in Charleston in 1999. The company represented itself as providing web hosting and other Internet-based services. From February 2014 until the federal indictment in this case in May 2019, Golestan, as CEO of Micfo, created ten separate and fictitious companies which he referred to as “Channel Partners.” The purpose of these Channel Partners was to obtain address rights to Internet Protocol (IP) version 4 addresses (IPv4) from ARIN.
IPv4 addresses are numerical labels assigned to each device connected to a computer network that uses the Internet for communication. ARIN is a nonprofit organization that administers IP address rights, allocations, and transfers in the United States, Canada, and parts of the Caribbean. To obtain an IP address allocation from ARIN, per its policies, an entity must provide a need-based justification. ARIN’s pool of IPv4 addresses has been depleted so there has been an increasing demand, which has resulted in a secondary market where prices for a single IPv4 address have increased dramatically.
Golestan created the fictitious Channel Partners, which would sometimes include creating web pages and fictional employees, to make the companies look legitimate and meet ARIN’s need-based justification policies for allocation of IPv4 addresses. Golestan, using the fake companies, was granted the rights to hundreds of thousands of IPv4 addresses from ARIN worth tens of millions of dollars. Once Golestan had fraudulently obtained the IPv4 address rights, he began to sell those rights for millions of dollars.
As a result of his fraudulent scheme, Golestan pocketed approximately $3.5 million dollars, with another $6.2 million dollars waiting in escrow that would have went to Golestan had he not been caught. Although Golestan and his company initially went to trial, after two days and testimony from eight Government witnesses, both Micfo and Golestan pleaded guilty to all twenty counts of wire fraud without a plea agreement.
Golestan faces of maximum penalty under each count of 20 years in federal prison, a fine of $250,000, 3 years of supervision to follow the term of imprisonment, and restitution. Micfo, the company, faces a maximum fine under each count of $500,000. United States District Judge Richard M. Gergel accepted the guilty pleas and will sentence Golestan after receiving and reviewing a sentencing report prepared by the United States Probation Office.
The case was investigated by the FBI. Assistant United States Attorneys Nathan Williams and Amy Bower are prosecuting the case.
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Tallahassee Doctor Sentenced to Seven Years in Federal Prison for Performing Unnecessary Surgical Procedures on Patients and Defrauding Health Insurance Providers of $29 MillionRead the Press Release
TALLAHASSEE, FLORIDA – Dr. Moses de-Graft Johnson, 47, a dual citizen of the United States and Ghana, was sentenced to seven years in federal prison, for committing health care fraud, conspiracy to commit health care fraud, and aggravated identity theft. The sentence, following the defendant’s guilty plea on December 18, 2020, was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
Court documents reflect, for almost four years, beginning in early 2016 until his arrest in February 2020, deGraft-Johnson performed hundreds of unnecessary, invasive surgical procedures of his patients in the Tallahassee area. deGraft-Johnson solicited his victims by establishing relationships with churches, nursing homes, a hospital, and an outreach organization. In addition to subjecting his patients to unnecessary surgical procedures, deGraft-Johnson victimized others by falsifying their medical records – reflecting surgical procedures that he did not perform. This conduct resulted in the creation of erroneous and misleading records that could cause future doctors to determine a mistaken course of medical treatment for many of his patients.
“This physician compromised the health and safety of his patients in favor of illegal profit,” stated Acting U.S. Attorney Coody. “His acts not only violated the law, but the trust of his patients. With the assistance of our law enforcement partners, we remain vigilant to investigate and prosecute all who defraud our citizens for their own personal gain.”
“It's disturbing that a physician would be so driven by greed and indifferent to the well-being of his patients that he would perform medically unnecessary, invasive procedures and steal medical identities to boost profits," said Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services Office of the Inspector General. "With our law enforcement partners, we will hold accountable individuals who perpetrate such egregious fraud and violate their oaths as physicians and Medicare providers.”
In addition to the term of imprisonment, the sentence included the forfeiture of assets in the United States and overseas, including luxury vehicles; jewelry; and homes in Manhattan, Southampton, New York, Miami, and Houston; as well as an order of $28,423,846 in restitution.
"This case is a direct result of the commitment by the FBI and our law enforcement partners to aggressively pursue those who willingly defraud American citizens,” said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. “Instead of caring for his patients, this defendant targeted vulnerable members of our community, subjected them to unnecessary surgical procedures, and falsified documents so he could line his pockets with millions of taxpayer dollars. Fraud, like this, reduces the availability of critical resources and contributes to the rising cost of healthcare for all. The FBI and our law enforcement partners will continue to investigate these crimes and prosecute all those who defraud the American public for their own personal gain."
This conviction was the result of the collaborative work of the U.S. Department of Health and Human Services, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Department of Commerce, the Internal Revenue Service, Homeland Security Investigations, and the Florida Attorney General. Assistant United States Attorney Andrew J. Grogan prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Stroudsburg Man Charged with Drug Trafficking OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on November 16, 2021, Keith Parson, age 49, of Stroudsburg, Pennsylvania, was indicted by a federal grand jury for drug trafficking offenses.
According to United States Attorney John C. Gurganus, the indictment charges Parson with two counts of distributing heroin and fentanyl on October 25 and November 1, 2021, and one count of possession with intent to distribute heroin and fentanyl on November 10, 2021, in Monroe County.
The matter was investigated by the Federal Bureau of Investigation and its state and local law enforcement partners in Monroe County. Assistant United States Attorney Jeffery St John is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin and fentanyl. 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.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses is 20 years 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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Stroudsburg Man Charged with Drug Trafficking and Firearm OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on November 16, 2021, Malik Adoyi, age 24, of Stroudsburg, PA, was indicted by a federal grand jury for drug trafficking and firearm offenses.
According to United States Attorney John C. Gurganus, the indictment charges Adoyi with five counts of distribution of heroin and fentanyl, one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl between July 16 and November 10, 2021, in Monroe County, and one count of being a felon in possession of a firearm on November 10, 2021.
The matter was investigated by the Federal Bureau of Investigation and its state and local law enforcement partners in Monroe County, Pennsylvania. Assistant United States Attorney Jeffery St John is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin and fentanyl. 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.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses is 40 years 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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St. Tammany Parish Traffic Stop Results in Florida Man Being Sentenced for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that KENNIE SANTOS-PAYANO, age 26, a resident of Kissimmee, Florida, was sentenced to 51 months’ imprisonment by United States District Court Judge Mary Ann Vial Lemmon for possession with the intent to distribute more than five kilograms of cocaine hydrochloride. Additionally, SANTOS-PAYANO was ordered to serve five (5) years of supervised release and pay a $100 mandatory special assessment fee. No fines were imposed in this case.
According to court records, on September 25, 2019, a Louisiana State Police Trooper conducted a traffic stop in Madisonville, St. Tammany Parish, Louisiana, on Interstate 12 eastbound on a vehicle bearing a Florida license plate. The stop was based on a traffic violation. The trooper identified the driver and sole occupant of the vehicle as SANTOS-PAYANO.
Shortly after the traffic stop, troopers deployed a trained and qualified K-9 drug detection dog, and the dog performed a free air sniff test on the exterior of SANTOS-PAYANO’s vehicle. The K-9 alerted to the presence of narcotics in the vehicle. A subsequent search of the vehicle resulted in the discovery of 8.5 kilograms of cocaine hydrochloride.
The Office of Homeland Security Investigations and the Louisiana State Police investigated this case. Assistant United States Attorney Bayonle Osundare is in charge of the prosecution.
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Southern California Man Charged in Cryptocurrency Fraud SchemeRead the Press Release
SAN FRANCISCO – Ryan Mark Ginster was arrested today in Los Angeles on federal charges filed in San Francisco of wire fraud and money laundering, announced Acting United States Attorney Stephanie M. Hinds and Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service-Criminal Investigation Washington D.C. Field Office. Ginster will appear in Los Angeles federal court, the first step in a procedure to obtain Ginster’s appearance in United States District Court in San Francisco.
The complaint’s affidavit alleges that Ginster, 34, of Corona, California, engaged in an online investment fraud scheme that began as early as February 2018 and continued to February 2021. During this time, Ginster ran multiple websites, including one he created and operated named Socialprofimatic.com. Socialprofimatic.com offered a high-yield investment program that promised outlandishly high returns on investments with little or no risk to investors. Investors could only invest with cryptocurrency, which creates transactions that are irrevocable even in instances of fraud. The complaint describes that the Socialprofimatic.com website falsely represented that investors’ funds would be used to support social media marketing campaigns, that the invested funds would generate returns of 8% per day, and that investors could withdraw funds at any time. Socialprofimatic.com received approximately $844,667 from investors, and then it shut down without warning after only 38 days of operation. The complaint affidavit describes that Ginster used proceeds of this fraud for his own personal benefit.
Ginster ran other similar investment websites during the fraud scheme time period, according to the complaint. Those websites included MyMicroProfits.com, Automaticbitcome.com, eProfithub.io, and YourNetProfits.com. As did Socialprofimatic.com, each website promised enormously high yields on investments and required individuals to invest only with cryptocurrencies. Also like Socialprofimatic.com, the websites were short-lived, shutting down or ceasing to communicate with investors within weeks after taking in the investors’ cryptocurrency. Lastly, as with Socialprofimatic.com, Ginster diverted investors’ funds to himself.
The cryptocurrency received from investors in the above five websites, including Socialprofimatic.com, was valued at the time at more than $5 million.
Ginster is charged by a federal complaint with one count of wire fraud in violation of Title 18, United States Code, Section 1343, and six counts of engaging in monetary transactions to conceal or disguise (money laundering), in violation of Title 18, United States Code, Section 1956(a)(1)(B)(i). Title 18, United States Code, Section 1343 carries a maximum sentence of 20 years in prison. Title 18, United States Code, Section 1956(a)(1)(B)(i) carries a maximum sentence of 10 years in prison. Both statutes carry a fine as well as mandatory restitution. Any sentence following conviction, however, would be imposed by a judge only after its consideration of the United States Sentencing Guidelines and the federal statute governing sentencing, 18 USC § 3553.
Charges contained in a criminal complaint are mere allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office for the Northern District of California. This prosecution is the result of an investigation by the IRS-CI Washington D.C. Cyber Crimes Unit.
The Los Angeles Regional Office of the Securities and Exchange Commission also announced today the filing of a civil enforcement action against Ginster in the Central District of California.
If you believe you have been a victim of this fraud scheme, please contact IRS-Criminal Investigation at [email protected]. The criminal complaint in this matter can be viewed on PACER and by visiting the U.S. Attorney’s Office for the Northern District of California website at www.usdoj.gov/usao/can.
South Side Man Pleads Guilty to Selling Drugs for Darccide/Smash 44 Street GangRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
Henry Johnson, age 30, formerly of the South Side, pleaded guilty to one count before United States District Judge William S. Stickman.
In connection with the guilty plea, the court was advised that in 2017, the Greater Pittsburgh Safe Streets Task Force, led by the Federal Bureau of Investigation, initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and drug-trafficking activity in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, from approximately February 2019 through June 2019, the United States received authorization to intercept communications on 9 telephones as part of the investigation, including the phone belonging to lead defendant Christopher Highsmith. During the investigation, the United States intercepted Henry Johnson over the tapped phone line of Christopher Highsmith.
The investigation revealed that in this conspiracy, Highsmith and other co-defendants worked together to distribute controlled substances, including but not limited to heroin and fentanyl, in and around the South Side of Pittsburgh. Customers who wanted to purchase heroin and fentanyl would make contact with Highsmith or a co-defendant, either by phone call or text message. Highsmith and co-defendants would sometimes physically distribute the quantity of heroin and fentanyl to the customer, and other times, would direct a runner to physically distribute the fentanyl and heroin and/or to collect the money for the drugs from customers.
Between March and April 2019, physical surveillance and intercepted communications revealed that Highsmith supplied the defendant with controlled substances for distribution. For example, on March 11, 2019, physical surveillance observed the defendant briefly enter Highsmith’s vehicle before exiting to conduct a hand-to-hand transaction in the South Side of Pittsburgh. Additionally, in an April 3, 2019 interception, the defendant asked Highsmith if he could get “30 at one forty.” Highsmith agreed to do so after making another “transaction.” Later that day, Highsmith texted the defendant an address in Verona, Pennsylvania, and the defendant responded that he would see him in 20. Subsequently, physical surveillance observed Highsmith exit that Verona residence and enter the driver’s seat of a parked BMW. Physical surveillance then observed the defendant exit a different vehicle, enter the parked BMW where Highsmith was waiting, and exit approximately two minutes later holding a bag. Finally, in a series of interceptions on April 8, 2019, Highsmith agreed to sell the defendant 15 bricks and later complained that the defendant “shorted” him on the payment of “1900.” The defendant agreed to pay the defendant an additional “buck an a quarter.”
In addition to the interceptions and physical surveillance, on December 6, 2018, the West Homestead Police Department responded to reports of drug trafficking at a hotel in West Homestead. Upon arrival, law enforcement observed the defendant throw two bags from his hotel balcony onto the parking lot. The bags contained 17 bricks of a fentanyl and heroin mixture, approximately 12 grams of cocaine base, and approximately 6 grams of cocaine. Some of the bricks bore the same stamp as other bricks seized in the investigation into the defendant’s coconspirators. A search of the defendant incident to his arrest resulted in the seizure of $693.00 and a cellular phone. The phone contained texts indicative of drug trafficking.
Judge Stickman scheduled sentencing for March 24, 2022 at 10:00 a.m. The law provides for a maximum total sentence of 30 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court remanded Johnson back into the custody of the U.S. Marshals Service.
Assistant United States Attorney’s Brendan J. McKenna and Carolyn Bloch are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult
Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Slidell Woman Sentenced Two Years of Probation After Guilty Plea to Conspiracy to Alter Postal Money OrdersRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that CHASITY DOTEY a/k/a “CHASITY PINES”, age 27, of Slidell, Louisiana, was sentenced to two (2) years of probation after she pleaded guilty to one count of conspiracy to alter U.S. Postal Money Orders before United States District Court Judge Mary Ann Vial Lemmon today.
According to court records, DOTEY cashed two altered U.S. Postal Money Orders in the amounts of $530.00 each at a U.S. Post Office located in Slidell, Louisiana. The two Postal Money Orders had been purchased in California for minimal value and then altered to reflect a higher amount by unknown co-conspirators.
In addition to probation, DOTEY was given three (3) years of supervised release and ordered to pay restitution to the government in the amount of $7,540. There is also a $100 mandatory special assessment fee due after conviction.
U.S. Attorney Evans praised the work of the United States Postal Inspection Service in investigating this matter. Assistant U.S. Attorney Edward J. Rivera was in charge of the prosecution.
Sioux Falls Woman Sentenced for Concealing Person from ArrestRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, woman convicted of Concealing Person from Arrest was sentenced on November 17, 2021, by U.S. District Judge Lawrence L. Piersol.
Kristina Ann Fuller, age 27, was sentenced to two years of probation and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Fuller was indicted by a federal grand jury on March 2, 2021. She pled guilty on August 23, 2021.
The conviction stemmed from incidents starting on an unknown date through on or about February 25, 2020, when Fuller harbored and concealed a person who was wanted by the U.S. Marshals Service. Fuller knew that person had an active arrest warrant.
This case was investigated by the U.S. Marshals Service and the Sioux Falls Area Fugitive Task Force. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Salt Lake City Estate Planning Attorney Pleads Guilty to Embezzling at least 9.5 Million Dollars from ClientsRead the Press Release
SALT LAKE CITY – Attorney Calvin Curtis, 61, of Salt Lake City, pleaded guilty in federal court today to two counts involving wire fraud and money laundering for his role in embezzling at least $9.5 million dollars from clients of his estate planning law firm based in Salt Lake City, known as Calvin Curtis Attorney at Law PLLC, and Curtiselderlaw.com. Prosecutors and defense attorneys have agreed to recommend a sentence of 73 months in federal prison during Curtis’s sentencing which is scheduled to occur on March 15, 2022.
In the plea agreement, Curtis admitted that he is an attorney who specializes in special needs trusts and that beginning in January 2008, he began a fraudulent scheme to defraud a client known as “G.M.” out of money. Curtis admitted that due to his role, he had access to millions of dollars in two different trust accounts belonging to victim G.M. and that he transferred at least $9,500,000 intended for the care of G.M. into his own accounts and then used this money for his own personal use. Curtis admitted that he also created fake financial statements and submitted these to the court ordered conservator of G.M. to conceal the fraud.
In pleading guilty to the wire fraud charge, Curtis admitted that on January 25, 2018, that he caused a wire communication from a Schwab Investment Account to his own Wells Fargo account, resulting in a transfer of $1,485,000. Curtis admitted that he used the money for his own personal benefit to make mortgage payments on his combined home and office located on South Temple Street in Salt Lake City, Utah; to support a lavish lifestyle with frequent travel; to purchase tickets to basketball and football games; to give lavish gifts to others; and to support the operations of his law firm.
In pleading guilty to the money laundering count, Curtis admitted that he fraudulently caused $135,000 to be transferred online from G.M. to his own Wells Fargo account, and that he used these funds to wire $95,000 to The Fechtel Company for the remodel of his home in Tampa, Florida. Curtis admitted that he knew these transactions were illegal at the time they occurred, and that the money was not used for the benefit of G.M
At this time, it is alleged that Curtis embezzled funds from at least 22 additional trusts in amounts more than $9,500,000. Anyone who believes they may be a victim of this crime is encouraged to call the FBI at (801) 579-1400 to file a report.
“Defrauding vulnerable and elderly adults is a reprehensible and greedy act that is deserving of federal prison time,” said Acting United States Attorney Andrea T. Martinez. “The United States Attorney’s Office is committed to prosecuting and holding those accountable who defraud elderly and vulnerable clients. Our concern is with the victims of these crimes and their ability to obtain basic needs moving forward.”
“Calvin Curtis’ greed had devastating consequences for his clients, who placed their trust and money in his hands,” said Special Agent in Charge Dennis Rice of the Salt Lake City FBI. “Sadly, financial fraud cases like this are not limited to a few victims. We hope this case sends a strong message that the FBI will do what it takes to make sure such crimes don’t go unpunished.”
"The IRS is proud to collaborate with our law enforcement partners to combat the seemingly ever present fraud in Utah,"¬ stated IRS Phoenix Field Office Special Agent in Charge Darren Lian. "This plea brings the United States one step closer to justice for the many victims who have serious losses in this unfortunate case."
Assistant United States Attorneys are prosecuting the cases against Curtis and Special Agents from the FBI and IRS Criminal Investigations are conducting the investigation.
Rogersville Man Indicted for Sexual Exploitation of Three ChildrenRead the Press Release
SPRINGFIELD, Mo. – A Rogersville, Missouri, man has been indicted by a federal grand jury for the sexual exploitation of three child victims.
Jake Ethan Patterson, 26, was charged in a four-count indictment returned by a federal grand jury in Springfield, Mo., on Wednesday, November 17. The federal indictment replaces a criminal complaint that was filed against Patterson on November 2, 2021. Patterson has been detained in federal custody since his arrest on the complaint.
The indictment charges Patterson with three counts of the sexual exploitation of a child, each involving a separate child victim. Patterson allegedly used each of the child victims to produce child pornography. Patterson is also charged with one count of receiving and distributing child pornography.
According to an affidavit filed in support of the original criminal complaint, the investigation began in June 2021 when Canadian law enforcement authorities seized two cell phones belonging to a citizen of Canada. Investigators found Snapchat conversations with Patterson, who was sharing images and videos of child pornography. There were multiple pornographic images and videos of the three child victims, the affidavit says, two of whom were approximately three to five years old and one of whom was approximately 12 years old.
During the Canadian investigation, Snapchat submitted a Cyber Tip on July 4, 2021, alleging that Patterson had uploaded a child pornography file the previous day. A review of the file found that this image was a commonly traded child pornography video often found in child pornography collections and does not depict the three victims in this case.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the FBI, the Southwest Missouri Cyber Crimes Task Force, and the Springfield, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Repeat Sex Offender Is Sentenced to 25 Years for Receipt and Attempted Receipt of Child PornographyRead the Press Release
CHARLOTTE, N.C. – Jonathan Wheeler Johnston, 40, of Norman, Oklahoma, was sentenced today to 25 years in prison and a lifetime of supervised release for receipt and attempted receipt of child pornography, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. As part of his sentence, Johnston was also ordered to register as a sex offender, and to pay $5,900 in restitution and $40,100 in special assessments.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Division, joins Acting U.S. Attorney Stetzer in making today’s announcement.
According to court documents, in April 2019, Johnston began communicating with a 15-year-old minor female located in the Western District of North Carolina, whom he met in an online chatroom for teenagers. After chatting with the teenager online, Johnston mailed the minor a cellphone, for the purpose of exchanging sexually explicit images and engaging in sexually explicit conduct. Court records show that the minor’s parent contacted law enforcement after discovering the cellphone and finding texts and other sexually explicit exchanges between the minor and Johnston. A subsequent forensic analysis of the minor’s cellphone by the FBI revealed that Johnston had repeatedly asked the minor for sexually explicit photos and videos, and had sent the minor links to pornographic material, including videos containing bestiality. In addition, over the course of their communications, Johnston sent the minor sexually explicit images of himself and instructed the minor not to disclose to anyone his name or age because he could get in trouble.
Court records show that when the minor informed Johnston that law enforcement were aware of their communications, Johnston attempted to cover his conduct by wiping his devices of evidence concerning his exchanges with the minor.
According to court records, in 2013, while Johnston was serving in the U.S. Army, he was convicted of possession, manufacture and distribution of child pornography. As a result of that conviction, Johnston was sentenced to six years in prison, was dishonorably discharged and was required to register as a sex offender for six years. His parole from that conviction ended in March 2018, just a little over a year before he began communicating with the 15-year-old minor located in the Western District of North Carolina.
Johnston is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney Stetzer thanked the FBI, the Huntersville Police Department, and the Norman Police Department in Oklahoma for their investigation of the case.
Assistant U.S. Attorney Mark T. Odulio, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
The case was brought by Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Registered Sex Offender Sentenced to 235 Months in Federal Prison on Child Pornography ChargesRead the Press Release
PROVIDENCE, R.I. – A Woonsocket man previously convicted in Rhode Island state court on child molestation and child pornography charges, and later found to be in possession of images and videos of child pornography while serving a term of state probation, was sentenced today to more than nineteen years in federal prison on charges of access with intent to view child pornography and possession of child pornography, announced Acting United States Attorney Richard B. Myrus.
In November 2015, less than two years after being sentenced in state court to a five-year suspended sentence for possessing child pornography, Jason D. Boudreau, 47, was found by law enforcement to be in possession of cell phone on which he had accessed and viewed over 600 images and videos of child pornography. That phone was seized by law enforcement and a month later, he was again found to be in possession of another cell phone with more than 100 images of child pornography.
According to court documents, on November 20, 2015, following a tip that a child pornography video was uploaded to the internet from his home, members of the Rhode Island State Police Internet Crimes Against Children Task Force, Homeland Security Investigations agents, and Woonsocket Police Detectives executed a court-authorized search of Boudreau’s residence. Several digital media storage devices and a cellular telephone were seized. A forensic examination of the devices revealed that during an approximately two-month period, Boudreau had accessed and viewed 677 images of child pornography on his cell phone. The images depict adult males using infants, toddlers, and other prepubescent girls for sexual acts, and included images of sex acts of children involving bondage. A month later, after a criminal complaint and warrant issued for his arrest, law enforcement located Boudreau in Branford, CT. At the time of his arrest, he was found to be in possession of another cell phone containing more than 100 images of child pornography.
Boudreau was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr., to 235 months of incarceration in federal prison to be followed by lifetime federal supervised release. Additionally, the court ordered that Boudreau is subject to searches by U.S. Probation and/or members of law enforcement of his residence, automobile, workplace, computer, and other electronic communication or data storage devices or media with or without reasonable suspicion of a violation of the terms of his supervised release.
According to court records, Boudreau was convicted on a charge of simple assault in Rhode Island State court in December 2009, and that case involved his assault on an eleven-year-old child. Boudreau was next convicted in Rhode Island state court in March 2012 on a charge of 2nd degree child molestation. He was sentenced to eight years in prison, two years to serve, 6 years suspended. In January 2014, Boudreau was convicted in Rhode Island state court for possession of child pornography and sentenced to a five-year suspended sentence with probation and ordered to register as a sex offender. Additionally, in November 2013, Boudreau was arrested on a charge of felony risk of injury to a child filed in Connecticut Superior Court in Danielson, CT based on conduct involving a 14-year-old girl.
The case in federal court in Providence was prosecuted by Assistant U.S. Attorney Denise M. Barton.
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Rapid City Man Indicted for Meth TraffickingRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Galen Cleveland Iron Cloud, age 30, was indicted on September 14, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 16, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 40 years in federal prison, a $5,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between August 3, 2018, and May 14, 2021, in South Dakota and North Dakota, Iron Cloud knowingly and intentionally conspired with others to distribute and possess with intent to distribute 50 grams or more of methamphetamine.
The charge is merely an accusation and Iron Cloud is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, Oglala Sioux Tribe Police Department, Bureau of Indian Affairs, Office of Justice Services, Corson County Sheriff’s Office, Mobridge Police Department, Rapid City Police Department, and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Iron Cloud was remanded to the custody of the U.S. Marshals Service pending trial. A trial date was set for June 21, 2022.
Queens Man Charged with Making Hoax Bomb Threat at New York FBI HeadquartersRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Michael J. Driscoll, Assistant Director‑in‑Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), announced that GERARDO MANUEL CHECO NUNEZ has been charged with making a hoax bomb threat yesterday, November 17, 2021, to FBI personnel at the Jacob K. Javits Federal Office Building (the “Javits Building”), located at 26 Federal Plaza in Manhattan, which houses the headquarters of the New York Field Office of the FBI and other federal agencies. CHECO NUNEZ was arrested yesterday after making the alleged bomb threat and was presented before United States Magistrate Judge Ona T. Wang in Manhattan federal court this afternoon.
U.S. Attorney Damian Williams said: “As alleged, the defendant’s bomb threat caused an immediate mobilization by the FBI and the NYPD appropriate for a real explosive device. Hoax or not, a bomb threat requires the diversion of valuable law enforcement and public safety resources, and causes genuine fear in the public. The defendant now faces a serious federal charge for his alleged conduct.”
FBI Assistant Director‑in‑Charge Michael J. Driscoll said: “While Nunez’s alleged threat to our federal building was deemed a hoax, his actions called for the resources of law enforcement, which were expended in response to one man’s personal gripe. Aside from the fact that these types of hoax threats divert resources and cost taxpayer dollars, they put law enforcement in harm’s way regardless of their intended purpose. Make no mistake about it, this case will be taken as seriously as any other.”
NYPD Commissioner Dermot Shea said: “In a city that has experienced more than 50 terrorist plots and four attacks, making a claim that you have a bomb at a government building is no joke. Mr. Checo Nunez faces serious charges which should serve as an example to others who believe making threats is an effective way to get attention.”
As alleged in the Complaint filed in Manhattan federal court[1]:
On November 17, 2021, CHECO NUNEZ entered the Javits Building and approached a security booth staffed by members of the uniformed security police of the FBI (the “FBI Police”). The security booth is protected by a transparent security screen. CHECO NUNEZ slammed against the security screen a copy of a written complaint he had previously filed through the FBI’s website alleging that a foreign government had hacked his accounts and was trying to extort him.[2] CHECO NUNEZ then stated to the FBI Police that he had an improvised explosive device (“IED”) in his vehicle (“Vehicle‑1”), and that he wanted to turn himself in. The FBI Police asked CHECO NUNEZ to confirm that there was an IED in Vehicle‑1, and CHECO NUNEZ responded affirmatively. FBI Police took CHECO NUNEZ into custody, and alerted members of the FBI’s New York Joint Terrorism Task Force (the “JTTF”).
Members of the JTTF asked CHECO NUNEZ if there was an IED in Vehicle‑1. CHECO NUNEZ responded that there was not an IED in Vehicle‑1, and that he had told the FBI Police that there was an IED in Vehicle‑1 because the FBI had ignored his hacking complaints, and he wanted the FBI to pay attention to those complaints. CHECO NUNEZ provided a description of Vehicle‑1 and its approximate location outside the Javits Building.
Members of the JTTF located Vehicle‑1, which is a full‑size cargo van. Vehicle‑1 was parked on Worth Street near the intersection of Worth Street and Lafayette Street, which is approximately across the street from the Javits Building. Vehicle‑1 was parked in the immediate vicinity of a closed coffee shop and an apartment building in which numerous individuals reside. Law enforcement evacuated the area around Vehicle‑1, including the apartment building, and closed the area to pedestrian and vehicle traffic. At least one law enforcement helicopter began surveilling the scene.
FBI bomb technicians searched Vehicle‑1 and determined that it did not contain an IED or any other type of explosive device or materials. During subsequent searches of Vehicle‑1, members of the JTTF found at least approximately several rounds of .223 caliber ammunition, as well as written materials regarding weapons of mass destruction and the detection of IEDs. From approximately 2006 to 2013, CHECO NUNEZ was enlisted in the United States Marine Corps, including as an Engineer Equipment Operator.
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CHECO NUNEZ, 33, of Queens, New York, is charged with one count of conveying false information and hoaxes in connection with the alleged bomb threat, in violation of Title 18, United States Code, Section 1038, which carries a maximum sentence of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by a judge.
Mr. Williams praised the outstanding efforts of the FBI’s New York JTTF, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorney Benjamin Woodside Schrier is in charge of the prosecution.
The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation.
[2] Communications and statements discussed herein are described in substance and in part.
Puerto Rico Man Sentenced to Prison for Trafficking Cocaine to ConnecticutRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that ROBERTO MUNIZ, 37, of Guaynabo, Puerto Rico, was sentenced today via videoconference by U.S. District Judge Victor A. Bolden to 30 months of imprisonment, followed by three years of supervised release, for trafficking cocaine from Puerto Rico to Connecticut through the U.S. Mail.
According to court documents and statements made in court, the Drug Enforcement Administration’s Hartford Task Force and the U.S. Postal Inspection Service developed evidence regarding a drug trafficking organization that was sending USPS parcels containing kilograms of cocaine from Puerto Rico to Connecticut and Massachusetts. Between July and December 2018, law enforcement intercepted and seized five suspect parcels that were being mailed to addresses in Bristol, Meriden and Burlington, Connecticut, and in Worcester, Massachusetts. All five of the suspect parcels contained multiple kilogram-sized bricks of cocaine. On several occasions, investigators conducted surveillance of the delivery of suspect parcels and the scheduled delivery of seized parcels. During surveillance, investigators observed Miguel Freytes, Marcos Mendez, Omar Mendez and others picking up or attempting to pick up parcels that had been seized. The investigation revealed that the cocaine was being sent from Puerto Rico by Muniz and others.
On January 9, 2019, investigators arrested several members of this drug trafficking organization and seized approximately 2.5 kilograms of cocaine, items used to process and package narcotics, and more than $150,000 in cash. Muniz was arrested in Puerto Rico on January 15, 2019.
On January 23, 2019, a federal grand jury returned an indictment charging, Muniz, Freytes, Marcos Mendez, Omar Mendez, and two others with conspiracy to distribute cocaine and related offenses.
Muniz pleaded guilty on July 20, 2020.
Freytes, Marcos Mendez and Omar Mendez, all of Bristol, also pleaded guilty.
This case is being investigated by the Drug Enforcement Administration’s Hartford Task Force and the U.S. Postal Inspection Service. The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. The DEA Puerto Rico Caribbean Corridor Strike Force and U.S. Postal Inspection Service, Newark Division, San Juan (P.R.) Office, have assisted the investigation.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. 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.
Professor-Arsonist Indicted for Setting Fires Behind Firefighters Fighting Dixie FireRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a five-count indictment today against Gary Stephen Maynard, 47, of San Jose, charging him with arson to federal property and setting timber afire, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Maynard engaged in an arson spree in the vicinity of the then ongoing Dixie Fire in areas of the Shasta Trinity National Forest and the Lassen National Forest. Some of the fires Maynard set were new fires behind the firefighters fighting the Dixie Fire. Maynard is charged with setting the following fires during this arson spree: the Cascade Fire (July 20), the Everitt Fire (July 21), the Ranch Fire (Aug. 7), and the Conard Fire (Aug. 7).
This case is the product of an investigation by the U.S. Forest Service, which received assistance from the Federal Bureau of Investigation, CalFire, the California Highway Patrol, and the Lassen County Sheriff’s Department. Assistant U.S. Attorney Michael D. Anderson is prosecuting the case.
If convicted, Maynard faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of arson. Arson to federal property carries a mandatory minimum sentence of five years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Previously Deported Alien Sentenced to Time Served for Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on November 17, 2021, Hector Bienvenido Amador-Medina, age 34, was sentenced to time-served of two months and seven days followed by one year of supervised release, by United States District Court Judge Jennifer P. Wilson for illegal re-entry of a previously deported alien.
According to United States Attorney John C. Gurganus, Amador-Medina previously pleaded guilty to illegally reentering the United States sometime after his last removal in June 2018 after eluding examination or inspection by immigration officers.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Assistant United States Attorney Joanne M. Sanderson prosecuted the case.
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Previously Deported Alien Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on November 3, 2021, Salvador Dionisio-Guillermo, age 42, of Mexico, was indicted by a federal grand jury with illegal re-entry into the United States by a previously deported alien.
According to United States Attorney John C. Gurganus, Dionisio-Guillermo was previously deported from the United States to Mexico in November 2008. He is alleged to have illegally reentered the United States again sometime after November 2008 and was found in the United States in Franklin County, Pennsylvania after eluding examination or inspection by immigration officers.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Assistant United States Attorney Joanne M. Sanderson is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Dionisio-Guillermo faces a maximum penalty of two 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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Pottsville Man Charged with Drug Trafficking and Firearm OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on November 16, 2021, Casian Amir Jackson-Flowers, age 21, of Pottsville, Pennsylvania, was indicted by a federal grand jury for drug trafficking and firearm offenses.
According to United States Attorney John C. Gurganus, the indictment charges Flowers with possession with intent to distribute cocaine and methamphetamine. The indictment also charges Flowers with possessing a Ruger P89 8mm pistol, with an obliterated serial number, in furtherance of a drug trafficking crime.
The matter was investigated by the Federal Bureau of Investigation (FBI), the Schuylkill County District Attorney’s Office, and the Pottsville Police Department. Assistant United States Attorney James Buchanan is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Pittsburgh Man Pleads Guilty to Selling MethamphetamineRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania pleaded guilty in federal court to violation federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, Acting United States Attorney Stephen R. Kaufman announced today.
Doug Austen, age 40, of the Carrick section of the City of Pittsburgh, pleaded guilty to one count of possession with intent to distribute and distribution of 50 grams or more of methamphetamine before United States District Judge Christy Crisswell Wiegand. Austen was one of 47 defendants charged in six related indictments as part of the Return to Sender investigation.
In connection with the guilty plea, the court was advised that on June 9, 2021, Austen sold another individual 84 grams of pure methamphetamine.
Judge Wiegand scheduled sentencing for March 24, 2022 at 10:00 a.m. The law provides for a maximum total sentence of not less than 10 years to a maximum of life in prison, a fine not to exceed $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered the defendant remain in custody.
Assistant United States Attorneys Jonathan D. Lusty and Michael R. Ball are prosecuting this case on behalf of the government.
The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Homeland Security Investigations, Internal Revenue Services, Pittsburgh Bureau of Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Philadelphia Man Sentenced to 12 Years in Prison for Drug TraffickingRead the Press Release
Jackson, Miss.- A Philadelphia man was sentenced to 144 months in federal prison for distribution of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Darren J. LaMarca and Jack P. Staton, Acting Special Agent in Charge of Homeland Security Investigations in New Orleans.
According to court documents, in 2017, Chaddis Demond McAfee, 39, sold methamphetamine to individuals and stored methamphetamine and other narcotics inside his residence. McAfee also possessed a firearm in support of his drug trafficking. This case is the result of an extensive investigation dubbed “Operation Highlife,” which targeted illegal methamphetamine distribute in central Mississippi.
This Operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The case is part of a joint investigation by the United States Immigration, Customs Enforcement, Homeland Security Investigations and Mississippi Bureau of Narcotics, with assistance from US Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Philadelphia Police Department, Neshoba County Sheriff’s Department, Neshoba County District Attorney’s Office, Scott County Sheriff’s Office, Flowood Police Department, Rankin County Sheriff’s Department, Hinds County Sheriff’s Department, Carthage Police Department, Union Police Department, Louisville Police Department, and Mississippi Highway Patrol. The case is being prosecuted by Assistant United States Attorney Erin Chalk.
Pennsylvania Man Sentenced for Trafficking Endangered and Invasive FishRead the Press Release
PITTSBURGH – A Pennsylvania man was sentenced today in the Western District of Pennsylvania to five years’ probation, including 180 days of home detention and 225 hours of community service, for trafficking in endangered and invasive fish in violation of the Lacey Act.
Anthony Nguyen, aka JoJo Nguyen and Jackie Lee, 49, of Pittsburgh, previously entered guilty pleas on July 20, 2021, before U.S. District Judge Nora B. Fischer to counts one and two of the indictment returned against him on Nov. 13, 2020, alleging that he trafficked in endangered Asian arowana and invasive snakehead fish. Nguyen owned and operated a Pittsburgh business, Ichiban Tropical Fish, specializing in the sale of rare and exotic freshwater tropical fish species.
During his plea hearing, Nguyen admitted to violating the Lacey Act in 2016 when he sold illegally imported Asian arowana, which are native to Southeast Asia and are protected under the U.S. Endangered Species Act (ESA). Arowana, also known as “dragon fish” or “Asian bonytongue fish,” are considered the most expensive freshwater fish on earth, with highly sought-after specimens selling for tens of thousands of dollars. Arowana are also listed in Appendix I of the Convention on International Trade in Endangered Species of Flora and Fauna (CITES), which is reserved for the most endangered species of fish and wildlife.
Nguyen also admitted to violating the Lacey Act for selling invasive and injurious snakehead fish in 2019, in violation of Pennsylvania law. Snakeheads are native to Asia, but have been introduced into freshwater habitats in the U.S. Pursuant to the terms of Nguyen’s plea agreement, he will also accept responsibility for falsifying documents related to the snakehead shipment.
The investigation was conducted by the U.S. Fish and Wildlife Service, Office of Law Enforcement. The Pennsylvania Fish and Boat Commission, California Department of Fish and Wildlife, and Texas Parks and Wildlife Department also provided assistance during the investigation. The case was prosecuted by Assistant U.S. Attorney Eric G. Olshan and Trial Attorney Patrick M. Duggan of the Environment and Natural Resources Division’s Environmental Crimes Section.
Oregon Man Charged with Possessing Counterfeit OxyContin Pills Containing FentanylRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Jose Antonio Nunez De Jesus, 27, of Portland, Oregon, charging him with conspiracy to distribute and possess with the intent to distribute fentanyl and possession of fentanyl with the intent to distribute, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, a law enforcement officer on routine patrol saw that the vehicle being driven by Nunez De Jesus had committed a traffic violation. After pulling the vehicle over, a narcotics K-9 alerted to the odor of a controlled substance in the vehicle. Officers found approximately 34,020 counterfeit OxyContin pills that weighed a total of 7.5 pounds. Nunez De Jesus told the officer that he had picked up what he believed to be drugs in Los Angeles at the request of a friend and was returning to Oregon with the pills. A presumptive test of the pills showed that they were fentanyl.
This case is the product of an investigation by the California Highway Patrol and the Fresno High Intensity Investigation Team. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Nunez De Jesus faces a maximum statutory penalty of 10 years to life in prison and a fine up to $10 million. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Ontario Man Who Ran Multimillion-Dollar Unlicensed Bitcoin Exchange Business Sentenced to 3 Years in Federal PrisonRead the Press Release
SANTA ANA, California – A San Bernardino County man was sentenced today to 36 months in federal prison for operating an unlicensed business that exchanged at least $13 million in Bitcoin and cash, often for drug traffickers.
Hugo Sergio Mejia, 50, of Ontario, was sentenced by United States District Judge Cormac J. Carney. Mejia pleaded guilty on July 1 to one count of operating an unlicensed money transmitting business and one count of money laundering.
From May 2018 to September 2020, Mejia operated a virtual currency business that exchanged Bitcoin for cash, and vice versa, charging commissions for these transactions. Mejia never registered his business with the Financial Crimes Enforcement Network, a bureau with the United States Department of the Treasury that collects and analyzes information to combat financial crimes, including money laundering.
During the nearly 2½-year period, according to the plea agreement, Mejia exchanged at least $13 million.
Mejia also established companies to mask his true activity, including Worldwide Secure Communications LLC, World Secure Data, and The HODL Group LLC. Mejia advertised his business online and was referred to customers by word of mouth, communicating with them via encrypted messaging services and meeting them in person at coffee shops.
On several occasions between May 2019 and March 2020, Mejia met with a client, who was working with law enforcement, to exchange Bitcoin for tens of thousands of dollars in cash. On March 12, 2020, Mejia met with the client at a coffee shop in Irvine and facilitated the exchange of 14.273 Bitcoin for $82,150 in cash plus fees. During this meeting, the client informed Mejia that his primary customer was a methamphetamine buyer in Australia who purchased methamphetamine every four to six weeks and sold it in Australia for five times more than the average price in the United States.
Mejia and the client who was working with law enforcement conducted five Bitcoin-cash transactions that cumulatively exceeded $250,000.
“[Mejia] knew about the applicable regulations governing his money exchange business and purposefully flouted them,” prosecutors wrote in a sentencing memorandum. “That is because [Mejia] structured his money exchange business with the intent to establish an anonymous conduit for money laundering of drug trafficking proceeds.”
As part of his plea agreement with the government, Mejia agreed to forfeit all assets derived from the illegal conduct, including $233,987 in cash seized from residences in Santa Ana and Ontario, silver coins and bars, and approximately $95,587 in various cryptocurrency seized.
IRS Criminal Investigation and Homeland Security Investigations investigated this matter and received assistance from the Costa Mesa Police Department.
Assistant United States Attorney Jason C. Pang of the International Narcotics, Money Laundering and Racketeering Section prosecuted this case. Assistant United States Attorney Brett A. Whittlesey of the Asset Forfeiture Section handled the asset forfeiture portion of this case.
Officials Celebrate Five-Year Anniversary of Program that Gives Veterans a Second ChanceRead the Press Release
NEWS RELEASE SUMMARY – November 18, 2021
SAN DIEGO – Federal judges, prosecutors, defense attorneys, court personnel and veterans’ advocates gathered in U.S. District Court today to celebrate the five-year anniversary of a program that offers a second chance to veterans who are facing criminal charges.
The Veterans Diversion Program, which began in 2016, allows qualified veterans to plead guilty, and that plea is set aside until completion of the year-long program. During the year participants are continually evaluated by U.S. Pretrial Services and monitored by the court. That can involve drug, alcohol and mental health testing and treatment, plus employment and education counseling. Participants are required to actively seek or maintain employment or schooling and appear before a magistrate judge at least once a month to discuss progress and monitor compliance.
Since 2016, almost 60 veterans have participated in the Veterans Diversion Program. Thirty-three veterans have graduated so far, and 21 are currently participating. Not everyone graduates; the program is vigorous and requires hard work and accountability. The program continued despite the pandemic.
“I feel strongly that many who have sacrificed so much for their country should be afforded a second chance when possible,” said Acting U.S. Attorney Randy Grossman. “Because of their sacrifices, the country owes them a debt. And being part of the Veterans Diversion Program is our office’s small part in repaying that debt.”
Getting accepted into the program is not easy. The U.S. Attorney’s Office receives dozens of applications every year. Those applications are then presented to a committee of 10 federal prosecutors who are also veterans themselves, representing every service. One the committee votes to admit the veteran, that veteran’s application is forwarded to pretrial for an assessment. This is a complete team effort: The Veteran’s Administration, Pretrial Services, Courage to Call, Wounded Warrior, the mentors, the Court and defense attorneys.
Nine Veterans - from the Army, Navy, Marine Corps, Coast Guard, and the National Guard - graduated in 2021. They were all facing felony convictions for a range of crimes. Some faced mandatory minimum sentences of 10 years in prison. Like the graduates before them, these nine veterans worked hard, embraced treatment, and then saw their charges dismissed.
The Veterans Diversion Program has its roots in the U.S. Attorney’s Office’s original “Diversion Program,” a groundbreaking effort which was started in 2010 in San Diego County through a collaboration between a criminal defendant, a federal prosecutor, a criminal defense attorney, U.S. Pretrial Services and the U.S. District Court. Under that program, certain non-violent offenders who pleaded guilty to human smuggling charges were afforded the opportunity to go through the program and eventually erase their felony conviction. At the time the program was a first-of-its-kind.
Grossman thanked Magistrate Judges William Gallo and Andrew Schopler for dedicating many hours of their valuable time, in addition to their regular duties as Magistrate Judges, to hold monthly court hearings, roundtables, change of plea hearings, bond revocation hearings, and participate in e-mails and phone calls at all hours to help these veterans succeed.
Grossman said: “This program would not be successful without strong leadership and the unwavering commitment from multiple people and organizations who deserve special thanks. This includes Magistrate Judges Gallo and Schopler; Chief U.S. District Judge Dana Sabraw; as well as several dedicated people from the Veteran’s Administration, particularly Joy Villavicencio; Lori Garofalo and her team of outstanding Pretrial Services Officers including Zena Ajou and Justin Garcia; RanDee McLain and her teams from Courage to Call and Wounded Warrior Project; Assistant U.S. Attorneys Blair Perez and Jennifer McCollough; as well as the many defense attorneys including Jami Ferrera, Hector Tamayo, Gary Burcham, and Leila Morgan. Thank you all for making this program a success.”
Grossman thanked the Veterans Diversion Program supporters who attended today’s celebration: Dr. Robert Smith, VHA Regional Director; Dr. Vito Imbasioni, CalVet Secretary; Virginia Wimmer, CalVet Deputy Secretary- Women Veteran Affairs; Mental Health Systems Inc. CEO Jim Callaghan and Vice President Delrena Swaggerty.
North Carolina E-Waste Business Owner Pleads Guilty to Unlawfully Storing Hazardous WasteRead the Press Release
NEW BERN, N.C. – A Greenville man pleaded guilty yesterday to Knowing Storage of Hazardous Waste Without a Permit, in violation of Title 42, United States Code, Section 6928(d)(2)(A).
According to the Criminal Information, and information provided in open court today, Lee Vann Crawford, 51, of Greenville, owned and operated Eastern Electronics Recycling, USA in eastern North Carolina. Eastern Electronics was a company that purported to be engaged in the responsible collection and disposal of e-waste, such as televisions, computer monitors, and other electronic equipment.
Old televisions and computer monitors contain cathode ray tubes (CRTs) which, when improperly maintained and stored, can release toxic levels of lead. Waste containing lead content of five milligrams per liter is considered “hazardous waste.”
As early as 2012, Crawford began collecting and storing large volumes of e-waste, including large amounts of CRTs, at 800 W. Green Street in Robersonville, NC, within Martin County. Much of the waste at this location had been scrapped or otherwise broken down into smaller parts. CRTs had also been shattered, releasing lead. Crawford did not obtain or maintain a permit from the United States Environmental Protection Agency (EPA), or from the State of North Carolina, to store the CRTs at this location. Crawford also did not recycle or otherwise properly dispose of the CRTs.
In June of 2019, the EPA executed a search warrant at Crawford’s storage location found a large quantity of shattered CRTs. Samples of waste were extracted from various locations on the property, yielding findings of hazardous amounts of lead -- 102 to 188 milligrams per liter.
The maximum punishment for Knowing Storage of Hazardous Waste Without a Permit is up to 5 years in prison and a fine of up to $50,000 per day of the violation. The sentencing for the Crawford is scheduled to occur in February of 2022.
“The illegal storage and disposal of Cathode Ray Tube waste (CRT) containing hazardous amounts of Lead contamination needlessly put the lives of the resident of Martin County, NC, and general public at an increased risk to Lead exposure,” said Special Agent in Charge Charles Carfagno of EPA’s Criminal Investigation Division in Atlanta, GA. “Today’s plea agreement related to that illegal activity demonstrates that anyone who intentionally violates the law and puts the public at risk will be held responsible for their actions.”
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. The investigation was conducted by the United States Environmental Protection Agency Criminal Investigative Division and the North Carolina State Bureau of Investigation. Assistant United States Attorney William M. Gilmore represents the United States.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-245-1D(2).
Non-profit Agency Operator Indicted for Falsely Claiming to Hire Ex-ConsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man who operates a non-profit agency has been indicted by a federal grand jury for falsely claiming to employ convicted felons who were on federal court supervised release.
Michael A. Green, 50, was charged in a five-count indictment returned by a federal grand jury in Kansas City, Mo., on Wednesday, Nov. 17.
According to the federal indictment, Green operates Kansas City Community Source, Inc., a non-profit corporation that purports to employ convicted felons after release from incarceration. Various individuals under court-ordered supervision reported KCCS as their employer in order to fulfill their employment obligations. These individuals provided federal probation officers with paystubs purporting to indicate wage earnings from employment at KCCS. The officers subsequently called the phone number provided for KCCS to conduct employment verification. Green told the officers that the various supervisees were in fact employed by KCCS.
KCCS did not in fact employ convicted felons, the indictment alleges. Green allegedly created fictitious employment verification documents, including paystubs, and provided these to individuals under court supervision for a fee. As part of the service provided for this fee, Green allegedly responded to calls and written inquiries from the federal probation officers, and falsely verified the supervisees’ employment with KCCS.
In addition, the indictment says, Green sold fraudulent documents and identifications, including fraudulent state driver’s licenses.
Green is charged with three counts of making false statements to probation officers in relation to three separate individuals, one count of transferring a false identification document (a fraudulent driver’s license) and one count of providing false documents to a probation officer.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Matthew Blackwood. It was investigated by IRS-Criminal Investigation and the Kansas City, Mo., Police Department.
New Jersey Resident Pleaded Guilty to Interstate Travel with Intent to Engage in a Sexual Act with A Minor ChargesRead the Press Release
BAY CITY – A Manalapan, New Jersey resident pleaded guilty yesterday to interstate travel with intent to engage in a sexual act with a minor, announced Acting United States Attorney Saima Mohsin.
Mohsin was joined in the announcement by James C. Harris, Acting Special Agent in Charge of Homeland Security Investigations field offices in Michigan and Ohio.
Jose Ricardo Gomez, 39, of New Jersey, pleaded guilty on November 17, 2021, to one count of interstate travel with intent to engage in a sexual act with a minor before United States Magistrate Judge Patricia Morris. Gomez will be sentenced in February 2022.
According to court documents, in or about July and August, 2020, Gomez used his phone and the internet to knowingly persuade, induce, entice and coerce a 13-year-old minor and a 14-year-old minor to engage in sexual activity for which he could be charged with criminal sexual conduct in the third degree under Michigan state law. Gomez communicated with the minors via Snapchat and traveled to Michigan from New Jersey. He met them at a hotel in Houghton Lake, Michigan, where he sexually abused the two minors on several occasions during that time. He provided alcohol to the victims before the abuse. Gomez also recorded numerous videos with his iPhone of the 13-year-old minor in various states of undress engaging in sexual acts. For the purpose of persuading the victim to engage in the sexual acts and for the purpose of producing the sexually explicit material, Gomez misrepresented his name, age, and residence. Gomez saved these visual depictions to his Snapchat account’s memories folder. Moreover, between May and August, 2020, Gomez, using Snapchat, distributed multiple videos and photographs depicting minor girls lasciviously exposing their genitalia to other Snapchat users. Gomez also solicited and received from minor girls sexually explicit images of themselves or images lasciviously depicting their genitalia, and distributed some of these images back to the minor girls depicted in those images for the purpose of coercing them to continue to produce and send such images of themselves to Gomez. Gomez threatened to post those images in public forums and to expose them to friends, relatives or classmates of the victims. The day after his arrest, Gomez, using the jail telephone system, directed another unknown individual to destroy and conceal evidence material to this investigation stored in Gomez’s online accounts. Soon thereafter, an unknown individual deleted the images stored in Gomez’s iCloud account.
This case was investigated by agents of the Homeland Security Investigations and Roscommon County Sheriff’s Department and is prosecuted by Assistant United States Attorney Anca Pop.
New Haven Man Pleads Guilty to Possessing Firearm in Furtherance of Drug TraffickingRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that TREA FRASER, 27, of New Haven, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Michael P. Shea in Hartford to possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and statements made in court, in 2020, the FBI New Haven Safe Streets Gang Task Force and the West Haven Police Department began investigating the narcotics trafficking activity of Fraser and another individual. Between October and December 2020, investigators made controlled purchases of crack cocaine from Fraser. On February 9, 2021, a search of Fraser’s residence revealed quantities of crack cocaine and heroin, ammunition and $3,900 in cash. A search of his vehicle revealed approximately 100 grams of cocaine and a loaded .45 caliber Glock 41 handgun.
Judge Shea scheduled sentencing for February 11, 2022, at which time Fraser faces a mandatory minimum term of imprisonment of five years and a maximum term of life imprisonment.
Fraser has been detained since his arrest on a federal criminal complaint on March 1, 2021.
This matter is being investigated by the FBI New Haven Safe Streets Gang Task Force and the West Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Konstantin Lantsman.
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.
Nevada Vacuum Distributor and Salesman Both Convicted by Jury in Conspiracy to Defraud the IRSRead the Press Release
A federal jury convicted two Nevada men, Saud Alessa and Jeffrey Bowen, yesterday for conspiring to defraud the IRS. A third co-conspirator, Jackie Hayes, previously pleaded guilty to the same charge on Oct. 15. The jury also convicted Alessa today of tax evasion and filing false tax returns.
According to court documents and evidence presented at trial, from 2010 through approximately March 2014, Alessa, Bowen and Hayes conspired to defraud the IRS relating to more than $500,000 in tax liabilities that Alessa owed for tax years 1998 to 2007. As part of the scheme, Hayes entered into a payment arrangement with Bowen, the owner of a vacuum cleaner distributor, J&L Distributing Inc. (J&L), where commissions earned by Alessa for his work at J&L were falsely recorded in J&L’s books as commission earned by Hayes. Hayes and Bowen then submitted tax forms and filings to the IRS that falsely reported Hayes had earned the income. This scheme allowed Alessa to evade IRS collection efforts and the payment of his outstanding federal tax debt. To further conceal his income and assets, Alessa filed false 2012 and 2013 individual tax returns, and in February 2013, he filed a bankruptcy petition falsely reporting no income.
Bowen and Alessa are scheduled to be sentenced on Feb. 22, 2022. Hayes is scheduled to be sentenced on Jan. 18, 2022. All three face a maximum penalty of five years in prison for the conspiracy charge. Alessa also faces a maximum penalty of five years in prison for the tax evasion charge and three years in prison for each count of filing a false tax return. 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 Special Agent in Charge C. Darren Lian of IRS-Criminal Investigation made the announcement.
IRS-Criminal Investigation investigated the case. Acting Deputy Assistant Attorney General Goldberg and Acting Special Agent in Charge Lian also thank the U.S. Trustee’s Office for its cooperation in the investigation.
Trial Attorneys Michael Landman and Eric Taffet of the Justice Department’s Tax Division are prosecuting the case.
Nashotah man sentenced for attacking U.S. Service MemberRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on November 18, 2021, Ian Alan Olson of Nashotah, Wisconsin, was sentenced to 14 months in prison, to be followed by one year of supervised release, for attacking United States Servicemen on account of their status as servicemen, in violation of 18 U.S.C. § 1389(a).
According to court records, on March 15, 2021, Olson drove his vehicle to the U.S. Army Reserve station in Pewaukee, Wisconsin. Olson’s vehicle was spray painted on all sides with words and symbols associated with the “QAnon” conspiracy theory. Olson then got out of his vehicle, produced what appeared to be a rifle, pointed it at two uniformed U.S. Army servicemen who were in the station’s parking lot, and exclaimed, “This is for America.” Olson then fired the weapon, which turned out to be a paintball gun, directly at the two servicemen. After Olson’s paintball gun jammed, the servicemen tackled him to the ground. Both servicemen initially believed Olson was holding a real firearm, and they feared that Olson intended to shoot and kill them.
In announcing sentence, U.S. District Judge Brett Ludwig noted the seriousness of Olson’s conduct, saying that it showed disrespect for the country, for the rule of law, and for U.S. military service personnel. Judge Ludwig commented that any feelings of anger or frustration that Olson had about world events did not justify his unprovoked attack on the servicemen.
This case was investigated by the FBI and the Village of Pewaukee Police Department. It was prosecuted by Assistant United States Attorney Benjamin Proctor of the Eastern District of Wisconsin and Trial Attorney Justin Sher of the U.S. Department of Justice National Security Division.
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For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
Modesto Man Charged with Being a Felon in Possession of AmmunitionRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Myron Kilgore, 42, of Modesto, charging him with being a felon in possession of ammunition, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Kilgore was arrested on Feb. 2, 2021, in Modesto after an unserialized, privately made firearm (or ghost gun) was discovered under the driver’s side floorboard during a search of his vehicle. The gun was loaded with six rounds of ammunition. Kilgore is a convicted felon prohibited from possessing firearms and ammunition.
This case is the product of an investigation by the Federal Bureau of Investigation, the Modesto Police Department, and the Stanislaus County District Attorney’s Office. Assistant U.S. Attorney Katherine E. Schuh is prosecuting the case.
If convicted, Kilgore faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Mission Man Indicted on Firearm ChargesRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Felon in Possession of a Firearm.
Cassius Farmer, age 28, was indicted on November 9, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 16, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on October 21, 2021, in Mission, Farmer having been previously convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed a firearm.
The charge is merely an accusation and Farmer is presumed innocent until and unless proven guilty.
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.
The investigation is being conducted by the U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Farmer was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mexican National Found Guilty of Marijuana DistributionRead the Press Release
PECOS – Today a federal jury in Pecos convicted a Mexican national for his role in distributing marijuana.
According to court documents and evidence presented at trial, Tomas Herrera-Quinones, 33, and six other co-defendants were charged with one count of conspiracy to possess with intent to distribute marijuana and one count of possession of over 100 kilograms of marijuana. A federal jury found Herrera guilty of both counts.
Herrera faces a maximum penalty of 20 years in prison on each count and is scheduled for sentencing in March 2022.
Six co-defendants, all from Mexico, have pleaded guilty in this case. Jesus Olegario Chaparro-Fontes, 28; Wenceslao Chaparro-Fontes, 26; Martin Eduardo Torres-Bojorquez, 22; Francisco Vasquez-Baldenegro, 35; and Eliceo Vasquez-Baldenegro, 30, pleaded guilty to one count of possession with intent to distribute marijuana. Juan Torres-Chaparro, 33, pleaded guilty to one count of conspiracy to possess with intent to distribute marijuana.
Wenceslao Chaparro; Martin Torres; Juan Torres; Francisco Vasquez; and Eliceo Vasquez are scheduled for sentencing on January 25, 2022. Jesus Chaparro is scheduled for sentencing on February 22, 2022.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and Drug Enforcement Administration (DEA) Acting Special Agent in Charge Greg Millard made the announcement.
The DEA is investigating the case.
Assistant U.S. Attorneys Lance Kennedy and Scott Greenbaum are prosecuting the case.
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Member of International Movie Piracy Ring Pleads GuiltyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty plea of GEORGE BRIDI, a citizen of the United Kingdom, for his role in the Sparks Group, an international piracy group that illegally distributed movies and television shows on the Internet. BRIDI pled guilty today before U.S. District Judge Richard M. Berman.
U.S. Attorney Damian Williams said: “As he admitted in court today, George Bridi participated in an international video piracy ring that illegally distributed worldwide on the Internet nearly every movie released by major production studios, as well as television shows. Bridi circumvented copyright protections on DVDs and Blu-Ray discs to illegally share movies online, but he and his crew could not evade law enforcement scrutiny, and Bridi now awaits sentencing for his crime.”
As alleged in the Indictment and statements made in open court:
Between 2011 and the present, GEORGE BRIDI and others known and unknown were members of the Sparks Group, a criminal organization that disseminated on the Internet movies and television shows prior to their retail release date, including nearly every movie released by major production studios, after compromising the content’s copyright protections.
In furtherance of its scheme, the Sparks Group fraudulently obtained copyrighted DVDs and Blu-Ray discs from wholesale distributors in advance of their retail release date by, among other things, making various misrepresentations to the wholesale distributors concerning the reasons that they were obtaining the discs prior to the retail release date.
Sparks Group members then used computers with specialized software to compromise the copyright protections on the discs, a process referred to as “cracking” or “ripping,” and to reproduce and encode the content in a format that could be easily copied and disseminated over the Internet. Sparks Group members then uploaded copies of the copyrighted content onto servers controlled by the Sparks Group, where other members further reproduced and disseminated the content on streaming websites, peer-to-peer networks, torrent networks, and other servers accessible to public. The Sparks Group identified its reproductions by encoding the filenames of reproduced copyrighted content with distinctive tags, and also uploaded photographs of the discs in their original packaging to demonstrate that the reproduced content originated from authentic DVDs and Blu-Ray discs.
BRIDI arranged for discs to be picked up, mailed, or delivered from distributors located in Manhattan, Brooklyn, and New Jersey to other members of the Sparks Group prior to their official release date. BRIDI then reproduced, and aided and abetted the reproduction of, these discs by using computer software that circumvented copyright protections on the discs and reproducing the copyrighted content for further distribution on the Internet.
The Sparks Group has caused tens of millions of dollars in losses to film production studios.
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BRIDI, 52, pled guilty to conspiracy to commit copyright infringement, which carries a maximum sentence of five years in prison. The maximum potential sentence is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
BRIDI is scheduled to be sentenced on January 20, 2022, at 12:00 p.m.
Mr. Williams praised the outstanding investigative work of Homeland Security Investigations and the U.S. Postal Inspection Service. Mr. Williams also thanked Europol and Eurojust as well as law enforcement authorities in the following countries for their assistance in the investigation: Canada, Cyprus, Czech Republic, Denmark, France, Germany, Italy, Republic of Korea, Latvia, Netherlands, Norway, Poland, Portugal, Romania, Spain, Sweden, Switzerland, and the United Kingdom.
This case is being handled by the Office’s Violent & Organized Crime Unit. Assistant United States Attorneys Andrew K. Chan, Mollie Bracewell, and Christy Slavik are in charge of the prosecution. The Justice Department’s Office of International Affairs (OIA) provided significant and ongoing assistance with facilitating the execution of dozens of mutual legal assistance requests in 18 different countries necessary for taking down servers and gathering evidence. OIA also provided critical support in working with Eurojust and Europol in planning the coordinated operation in August 2020.
McAllen man sent to prison for attempting to entice minor through social mediaRead the Press Release
McALLEN, Texas – A 27-year-old McAllen resident has been ordered to federal prison after admitting he intended to engage in sexual activity with a minor female, announced Acting U.S. Attorney Jennifer B. Lowery.
David Montelongo pleaded guilty June 24.
Today, U.S. District Judge Randy Crane sentenced him to 120 months in federal prison. In handing down the sentence, the court noted that Montelongo had committed a very serious offense which was not impulsive as it had taken place over some length of time. Judge Crane also referenced how Montelongo knew his conduct was wrong. Montelongo was further ordered to serve five years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children. He will also be required to register as a sex offender.
On Jan. 21, Montelongo began to entice and coerce an individual he believed to be a 13-year-old female on a popular social media application. In their communications, Montelongo discussed the sexual acts he desired to perform on the minor and take her virginity.
Montelongo requested to meet the alleged minor in person at a park in McAllen, at which time he expected to engage in sexual activity with her. Montelongo saw authorities and fled upon arrival. Law enforcement later took him into custody March 10.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations - Rio Grande Valley Child Exploitation Investigations Task Force conducted the investigation.
Assistant U.S. Attorney Michael Mitchell prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Maryland Cattle Brokers Plead Guilty to Defrauding the United StatesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on November 2, 2021, Daniel Gutman and Benjamin Gutman, both age 39 and residents of Maryland, pleaded guilty to conspiracy to defraud the United States and commit offenses against the United States before United States District Court Judge Jennifer P. Wilson.
According to United States Attorney John C. Gurganus, the United States Department of Agriculture certifies that U.S. agricultural and food products shipped to international markets meet both U.S. and foreign requirements. When it comes to dairy cattle, this process relies upon the services of USDA-accredited veterinarians and the animal exporters to whom these veterinarians provide services. Federal law requires cattle transported in interstate and foreign commerce to be tested for certain diseases prior to shipment. These diseases may include, depending on the destination, Tuberculosis, Brucellosis, Leucosis, and Bovine Viral Diarrhea, among others.
The USDA initiated an investigation of Dr. Donald Yorlets, a USDA-accredited veterinarian, several years ago. Yorlets conducts business under the name Circle Y Veterinary Services, located in New Oxford, PA. On August 31, 2020, Yorlets pleaded guilty to a one-count criminal Information charging him with conspiracy to defraud the United States.
Daniel Gutman and Benjamin Gutman are brothers who own and operate a livestock exporting business known as Gutman Brothers Dairy Cattle (“Gutman Brothers”). Though the business is headquartered in Maryland, Gutman Brothers has a large cattle farm in Spring Grove, PA, in the Middle District of Pennsylvania.
Daniel Gutman and Benjamin Gutman are brokers of dairy cattle, both domestically and internationally. The use of false and fraudulent interstate and international health certificates—known, respectively, as Certificates of Veterinary Inspection (CVIs) and International Certificates of Veterinary Inspection (ICVIs)—allowed Gutman Brothers to acquire and quickly sell cattle from other dairy farms to customers in other states and foreign jurisdictions. In order to carry out their scheme, the Gutman Brothers needed a compliant USDA-accredited veterinarian to sign health certificates, knowing that the tests had not been appropriately conducted. For years, Dr. Yorlets played this role.
The USDA’s investigation revealed that Yorlets and the Gutman Brothers conspired to carry out a scheme to defraud the USDA and the governments of Puerto Rico and foreign countries. They did so by submitting non-authentic, bovine blood samples for the detection of disease to a USDA-accredited testing laboratory located in Harrisburg, Pennsylvania and by issuing false and fraudulent health certificates for the untested animals. In addition, Yorlets also falsely claimed in health certificates that cattle had tested negative for Bovine Tuberculosis when, in fact, the required caudal skin fold test had not been administered. Furthermore, Yorlets submitted these false and fraudulent health certificates to a USDA Veterinary Services Endorsement Office. The USDA’s endorsement of these health certificates permitted dairy cattle to be shipped in interstate and foreign commerce.
Each cow has a unique antibody profile in its blood. If all of the blood specimens submitted by Yorlets were authentic, antibody profile testing would have shown that each blood sample had a unique antibody profile. Instead, forensic testing conducted on blood samples submitted by Yorlets for Gutman Brothers shipments confirmed that over a several year period, a small percentage of blood samples—only about one in ten—were authentic. These results showed that Yorlets repeatedly submitted the same blood for different cows and issued false health certificates for hundreds of animals that were never tested.
The fraudulent disease tests, and the false and fraudulent health certificates supported by these tests, enabled the Gutman Brothers to unlawfully export untested animals to Mexico, Canada, Qatar, and Puerto Rico. These false and fraudulent certificates were also transmitted, in turn, to customers of the Gutman Brothers, who needed these certificates in order to meet import requirements in their respective countries. For example, in April 2018, Gutman Brothers exported approximately 2,900 head of cattle to a buyer in Qatar. This buyer was unaware that it was receiving dairy cattle that had not been properly tested and that the international health certificates used for this sale were fraudulent. This buyer paid Gutman Brothers over $5.3 million in U.S. currency.
Daniel and Benjamin Gutman admitted as part of their guilty pleas that they were not only aware of Yorlets’ activities; at times they also took part in the process of obtaining blood samples, knowing that those samples would be used in a fraudulent manner. Gutman Brothers also admitted to providing ear tags for the identification of dairy cattle, knowing that the ear tags would be used to falsely represent that the cattle had been disease tested prior to shipment.
In connection with their guilty plea, Daniel and Benjamin Gutman have agreed to forfeit $1,438,646.42 in U.S. currency. They must also make full restitution to all victims for the losses those victims have suffered as a result of their conduct. The specific restitution amount will be determined by the Court following a hearing, and restitution payments will be made according to a schedule to be determined by the Court. The defendants have also agreed that any information in the Government’s possession can be shared with regulatory authorities for purposes of debarment proceedings.
The case was investigated by the United States Department of Agriculture and Homeland Security Investigations. Assistant U.S. Attorneys Ravi Romel Sharma and Philip J. Caraballo are prosecuting the case. Now retired Assistant U.S. Attorney Kim Douglas Daniel previously worked on the case.
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 criminal conspiracy is 5 years’ imprisonment. This charge may also carry a fine and a term of supervised release following imprisonment. 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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Managers of New York Fish Dealer Plead Guilty to Fishing Fraud ConspiracyRead the Press Release
Bryan Gosman and Asa Gosman, both of Montauk, New York, pleaded guilty today in federal court in Central Islip, New York, to one felony count of criminal conspiracy for their role in a scheme to purchase illegal summer flounder and black sea bass from a local fisherman. In addition, the company which they partially own, Bob Gosman Co. Inc., a federally-licensed fish dealer also located in Montauk, pleaded guilty to two counts of misdemeanor Lacey Act Fish Trafficking.
On April 20, a federal grand jury indicted Christopher Winkler, Bryan Gosman, Asa Gosman and Bob Gosman Co. Inc. with one count of conspiracy, among other crimes. The indictment charged a conspiracy to commit mail and wire fraud as well as to unlawfully frustrate the National Ocean and Atmospheric Administration's (NOAA) efforts at regulating federal fisheries.
The indictment alleges that between May 2014 and July 2016, Winkler, as captain of the New Age, went on dozens of fishing trips where he caught fluke or black sea bass in excess of applicable quotas. Bryan and Asa Gosman admitted that this fish was then sold to a now-defunct company, an unindicted co-conspirator, in the New Fulton Fish Market in the Bronx, New York. Both Asa Gosman and Bryan Gosman had an ownership interest in the defunct company. After the Bronx company went under, Bryan and Asa Gosman contend that Winkler sold a much smaller quantity of his illegal catch directly to Bob Gosman Co. Inc. In court documents, Bryan and Asa Gosman admit that the sales of illegal fish (to both companies) totaled at least $240,000 wholesale.
Under federal law, a fishing captain is required to accurately detail his catch on a form known as a Fishing Vessel Trip Report (FVTR), which is sent to NOAA. Similarly, the first company that buys fish directly from a fishing vessel is termed a fish dealer, and fish dealers are required to specify what they purchase on a federal form known as a dealer report, which is transmitted electronically to NOAA. Pursuant to statutory mandate, NOAA utilizes this information to set policies designed to ensure a sustainable fishery. Bryan and Asa Gosman stated that part of the conspiracy was to falsify both FVTRs and dealer reports to cover-up the fact that fish were taken in excess of quotas. The pair also admitted to obstructing NOAA’s investigation into the conspiracy through the joint destruction of incriminating business records that Bryan Gosman had removed from the defunct Bronx company in March 2017. These records would have been responsive to a then-outstanding grand jury subpoena.
As part of the plea deal for the company, Bob Gosman Co. Inc. agreed to pay a criminal fine of $50,000 and be placed on probation for four years. The company also would have to implement an Environmental Compliance Plan with enhanced monitoring, training, and inspection requirements. Sentencing hearings for these defendants will be set at a future date. The trial of the remaining defendant, Christopher Winkler, is yet to be scheduled.
Assistant Attorney General Todd Kim made the announcement.
The case was investigated by agents of NOAA’s National Marine Fisheries Service as part of Operation One-Way Chandelier. The case is being prosecuted by Christopher L. Hale and Kenneth Nelson of the Justice Department’s Environmental Crimes Section, Environment and Natural Resources Division.
Man from Albuquerque sentenced to 18 years in federal prison for armed robbery of medical suppliesRead the Press Release
ALBUQERQUE, N.M. – Joseph Matney, 41, of Albuquerque, was sentenced in federal court on Nov. 16 to 18 years in prison for armed robbery of a pharmacy, theft of medical products and possession with intent to distribute Oxycodone and Alprazolam.
Matney pleaded guilty on Feb. 4. According to the plea agreement, Matney entered and robbed an Albuquerque pharmacy on Jan. 31, 2018. Matney and a juvenile accomplice held the employees at gunpoint and demanded opioid painkillers, anxiety pills and money from behind the counter. They fled with more than 2,500 pills before law enforcement arrived. On Feb. 12, 2018, law enforcement in Denver, Colorado, arrested Matney after searching his vehicle and finding 1,600 of the stolen prescription pills and a firearm.
Upon his release from prison, Matney will be subject to 5 years of supervised release.
The Drug Enforcement Administration and the Albuquerque Police Department investigated this case with assistance from the Denver Police Department. Assistant U.S. Attorney Peter J. Eicker prosecuted the case.
Man Sentenced for Methamphetamine and Fentanyl Distribution in Magic ValleyRead the Press Release
BOISE – Luis Leyva Verduzco was sentenced to 82 months in federal prison for possession of methamphetamine with the intent to distribute.
According to court records, beginning in early 2020, law enforcement received information that Verduzco, 32, a Mexican national living in Jerome, was involved in the distribution of methamphetamine in the Magic Valley. Using investigative techniques, officers expanded their investigation. In March 2021, Verduzco was monitored by officers as he traveled to and from a milk house located at a dairy farm in Gooding County. Verduzco was observed entering the milk house for a short period of time, and then he exited and returned to his vehicle. Officers later conducted a search of the milk house and discovered 1,308.61 grams (2.88 pounds) of methamphetamine and 46.64 grams of fentanyl hidden in the drawer of a filing cabinet. The investigation further revealed that Verduzco was in possession of these drugs and attempted to hide them in the milk house before they were discovered by law enforcement. It is expected that Verduzco will be deported to Mexico upon the completion of his sentence.
Acting U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Idaho State Police, Gooding County Sheriff’s Office, Jerome County Sheriff’s Office, Gooding County Prosecutor’s Office, and the Drug Enforcement Administration, which led to charges.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Madison County Man Sentenced for Sex Offender Registration ViolationRead the Press Release
SYRACUSE, NEW YORK – Gregory Malecki, age 49, of Bridgeport, New York, was sentenced yesterday to time served (6 months) and 25 years of supervised release for failing to register an email address with the New York State Sex Offender Registry, as required by law.
The announcement was made by United States Attorney Carla B. Freedman and David L. McNulty, United States Marshal for the Northern District of New York.
As part of his previously entered guilty plea, Malecki admitted that in 2009 he was convicted in the United States District Court for the Northern District of New York of Attempted Coercion and Enticement of a Minor, for which he served a sentence of 10 years in federal prison. That conviction requires Malecki to register as a sex offender and to keep his registration current with personal identifying information, including internet and email accounts. Malecki admitted that although he maintained registration as a sex offender in the State of New York, for nearly two years he intentionally failed to register an email account that he created despite knowing he has a continuing obligation under the law to do so.
In addition to the term of imprisonment for failing to update his sex offender registration, Malecki was sentenced to a concurrent term of time served (202 days) for violating the conditions of his supervised release, including committing new criminal conduct, possessing sexually explicit images, failing to truthfully provide required information on his monthly probation reports, and possessing an undisclosed internet capable device.
This case was investigated by the United States Marshals Service Sex Offender Investigation Branch with assistance from the United States Probation Office for the Northern District of New York and was prosecuted by Assistant United States Attorney Lisa M. Fletcher.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney's offices, 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 http://www.justice.gov/psc/.
Lower Elwha S’Klallam Tribal Member Charged with Sexual Abuse of MinorsRead the Press Release
Tacoma – A 68-year-old member of the Lower Elwha S’Klallam Tribe was indicted this week on multiple counts of sexual abuse of minors, announced U.S. Attorney Nick Brown. Joseph Anthony Turrey, of Port Angeles, Washington, was arrested November 10, 2021 and will be arraigned on the federal charges on November 26, 2021. He remains in federal custody.
According to records filed in the case, one young victim recently disclosed the abuse to the Lower Elwha S’Klallam child welfare authorities. The Lower Elwha S’Klallam Tribal Police and the FBI immediately began investigating. Special forensic investigators from the National Park Service assisted with the interview of the victim. The investigation determined that another victim was sexually assaulted by Turrey as early as 2008. Both victims were as young as 6 and 7-years-old when the assaults began. The assaults occurred on tribal land, triggering federal jurisdiction.
Turrey is charged with two counts of aggravated sexual abuse of a minor and one count of sexual abuse of a minor.
Aggravated sexual abuse of a minor is punishable by a mandatory minimum 30 years in prison. Sexual abuse of a minor is punishable by up to 15 years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.The case is being investigated by the FBI and Lower Elwha S’Klallam Police Department, with assistance from the National Park Service.
The case is being prosecuted by Assistant United States Attorney Angelica Williams.
Loves Park Office Manager Charged with Fraudulently Obtaining More Than $1 Million from EmployerRead the Press Release
ROCKFORD — A Loves Park woman was charged with fraudulently obtaining more than $1 million from her employer, according to a criminal information filed today by the U.S. Attorney’s Office in Rockford.
The information charges TAMMY E. MOORE, 54, with one count of wire fraud. Moore will be arraigned in U.S. District Court in Rockford on a date to be determined.
The charge 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. The Loves Park Police Department assisted in the investigation. The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.
According to the information, Moore was an office manager for a company in Loves Park that made custom components for a variety of industries. Between 2012 and 2020, Moore fraudulently obtained more than $1 million from the company. Specifically, Moore issued company checks to herself and her husband’s business from the company’s account, forged the signature of the company’s owner on checks, deposited the checks into her personal bank account and her husband’s business account for her personal benefit, and then initiated online transfers to move the money. Moore concealed these transactions by making it appear as though the checks were for legitimate business purposes and by deleting the company’s records of the forged checks.
Wire fraud carries a maximum sentence of up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that information is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Lewis County residents admit to firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Matthew J. Duncan, of Weston, West Virginia, and Crystal Dawn Roth, of Walkersville, West Virginia, have admitted to firearms charges, United States Attorney William J. Ihlenfeld, II announced.
Duncan, 24 pleaded guilty today to one count of “Unlawful Possession of a Firearm.” Duncan, a person prohibited from having firearms because of prior convictions, admitted to having a pistol, a rifle, and a shotgun in March 2021 in Braxton County.
Roth, 39, pleaded guilty today to one count of “Unlawful Possession of a Firearm.” Roth, a person prohibited from having firearms because of prior convictions, admitted to having a revolver in March 2021 in Braxton County.
Duncan and Roth each face up to 10 years of incarceration and fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Braxton County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Leader of International Cellphone Fraud Scheme ArrestedRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, and Ricky J. Patel, Acting Special Agent in Charge of the New York Field Office of the Homeland Security Investigations (“HSI”), announced today the arrest of JUAN S. CORDERO, who is charged with leading a fraud ring operating in the United States and the Dominican Republic in which co-conspirators fraudulently purchased iPhones that were billed to compromised accounts of AT&T Wireless (“AT&T”) customers. CORDERO was apprehended by authorities in the Dominican Republic and transported to the Southern District of New York, where he will be presented later today. He is the eighth and final defendant arrested on an Indictment that charges CORDERO, DANIEL A. TORRES, ALEKSEY SERYY, RARNIERY MOLINA, a/k/a “Eddy,” ADAEL ARIEL FIGARO, SALAH SAL ALTAWEEL, JOSE F. CORDERO, and JEANCARLOS URENA with conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. The case is assigned to United States District Judge Alvin K. Hellerstein.
U.S. Attorney Damian Williams said: “As alleged, Juan S. Cordero and his co-conspirators obtained millions of dollars’ worth of iPhones after customers were deceived into providing PIN codes needed to complete the fraudulent transactions. Now, each defendant has been arrested and charged with serious crimes, and the international scheme has been disconnected.”
HSI Acting Special Agent in Charge Ricky J. Patel said: “This arrest closes the final chapter of an alleged fraud network operating in New York and the Dominican Republic that used modern technology to steal and monetize personal information. The co-conspirators’ alleged activities left a trail of unsuspecting victims across the United States and caused significant business losses. HSI prides itself on its ability to couple traditional investigative techniques with cutting edge technical skills to combat cybercrime.”
As alleged in the Indictment[1]:
From at least in or around February 2016 up to and including in or around June 2020, the defendants participated in a criminal fraud ring (the “Fraud Ring”) based in the United States and the Dominican Republic. Participants in the Fraud Ring sought to obtain iPhones and other electronic devices by billing the devices to the wireless service accounts of victim account holders without the account holders’ knowledge or consent.
To effectuate the scheme, the Fraud Ring obtained personally identifying information (“PII”) belonging to AT&T customers in one of two ways:
First, the Fraud Ring purchased from the dark web account information, such as usernames and passwords, belonging to AT&T customers. Having purchased the username and password belonging to a particular AT&T customer, a member of the Fraud Ring was able to log into the account of that customer and add a co-conspirator as an authorized user. In order to complete the addition of an authorized user, a member of the Fraud Ring also had to obtain the resulting confirmatory PIN code sent by AT&T to the true customer. To do so, a member of the Fraud Ring purporting to be an AT&T representative called the customer. When placing these calls, the Fraud Ring used Voice Over Internet Protocol (“VOIP”) Technology, which enables a caller to insert a chosen telephone number into the originating caller field. Often the Fraud Ring input numbers affiliated with, or closely related to, AT&T customer service telephone numbers, leading unsuspecting customers to provide their PIN codes based on their belief that they were communicating with representatives of AT&T.
Alternatively, the Fraud Ring obtained PII of customer accounts through password reset requests. Using this method, a member of the Fraud Ring, purporting to be an AT&T representative, typically placed a VOIP call to a particular wireless customer and alerted the customer to a forthcoming PIN code. At that point, while still on the line with the AT&T customer, a member of the Fraud Ring reset the password on that customer’s account and asked the customer to recite the PIN code just sent via text message. Having obtained the PIN code, the Fraud Ring then changed the password of the customer’s account and added a co-conspirator as an authorized user.
Next, the member of the Fraud Ring whose name had been added to a particular customer account entered either an AT&T retail location or a retailer of iPhones and electronic devices registered to the AT&T network. Once at the retail location, that member of the Fraud Ring purchased one or more electronic devices, typically iPhones cost at least $1000 each. The cost of the devices would be charged to the customer account, while the member of the Fraud Ring making the purchase paid only the taxes and processing fees.
Members of the Fraud Ring made in-store purchases of iPhones and other electronic devices from retailers in the Southern District of New York and elsewhere in New York, and in 45 other states. Once purchased, the iPhones were sold to buyers nationwide.
Following the re-sale of the fraudulently obtained iPhones, co-conspirators wired money to other co-conspirators across the country and in the Dominican Republic.
Over the course of the conspiracy, the Fraud Ring billed over 4,800 iPhones and other electronic devices to AT&T customer accounts, resulting in over $4 million in customer losses, which were ultimately absorbed by AT&T.
* * *
A chart containing the names, charges, and maximum penalties for the defendants is set forth below. 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 HSI.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Marguerite B. Colson and Patrick R. Moroney 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.
COUNT
CHARGE
DEFENDANTS
(Age and Residence)MAX. PENALTIES
1
Conspiracy to Commit Wire Fraud
18 U.S.C. § 1349
JUAN S. CORDERO
(age: 33; Yonkers, NY and Dominican Republic)
DANIEL A. TORRES
(age: 25; Yonkers, NY)
ALEKSEY SERYY
(age: 30; Fairfield, NJ)
RARNIERY MOLINA,
a/k/a “Eddy,”
(age: 28; Yonkers, NY)
ADAEL ARIEL FIGARO
(age: 30; Yonkers, NY)
SALAH SAL ALTAWEEL
(age: 24; Yonkers, NY)
JOSE F. CORDERO
(age: 29; Yonkers, NY)
JEANCARLOS URENA
(age: 32; Yonkers, NY)
20 years in prison
2
Wire Fraud
18 U.S.C. § 1343 and 2
JUAN S. CORDERO,
DANIEL A. TORRES,
ALEKSEY SERYY,
RARNIERY MOLINA,
a/k/a “Eddy,”
ADAEL ARIEL FIGARO,
SALAH SAL ALTAWEEL,
JOSE F. CORDERO, and
JEANCARLOS URENA
20 years in prison
3
Aggravated Identity Theft
18 U.S.C. § 1028A and 2
JUAN S. CORDERO,
DANIEL A. TORRES,
ALEKSEY SERYY,
RARNIERY MOLINA,
a/k/a “Eddy,”
ADAEL ARIEL FIGARO,
SALAH SAL ALTAWEEL,
JOSE F. CORDERO, and
JEANCARLOS URENA
Mandatory consecutive 2 years in prison
[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.
Kern County Man Indicted for Possession of Fentanyl and Heroin with Intent to DistributeRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Jose Luis Santana, 43, of Shafter, charging him with possession with intent to distribute fentanyl and heroin, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Nov. 16, 2021, law enforcement executed a federal search warrant on Santana’s motel room in Bakersfield; they also searched Santana’s vehicle with his consent. As a result, law enforcement seized approximately 2.5 kilograms of fentanyl, 2.5 kilograms of heroin, two firearms, and approximately $5,000 in cash.
This case is the product of an investigation by the Drug Enforcement Administration and the Bakersfield Police Department. Assistant U.S. Attorney Jessica A. Massey is prosecuting the case.
If convicted, Santana faces a mandatory minimum statutory penalty of 10 years in prison, a maximum statutory penalty of life in prison, and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Justice Department announces $139 million for law enforcement hiring to advance community policingRead the Press Release
ATLANTA – The Department of Justice today announced more than $139 million in grant funding through the department’s Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP). The awards provide direct funding to 183 law enforcement agencies across the nation, allowing those agencies to hire 1,066 additional full-time law enforcement professionals. Funding totaling $827,258 was awarded in the Northern District of Georgia.
“We are committed to providing police departments with the resources needed to help ensure community safety and build community trust,” said Attorney General Merrick B. Garland. “The grants we are announcing today will enable law enforcement agencies across the country to hire more than 1,000 additional officers to support vitally important community oriented policing programs.”
“In our district, this means more officers on the beat and in the community working proactively to address the root causes of criminal and disorderly behavior, rather than simply responding to crimes once they have occurred,” said U.S. Attorney Kurt R. Erskine.
The City of Lithonia, Georgia, received an award of $827,258, in the Northern District of Georgia.
CHP is a competitive award program intended to reduce crime and advance public safety through community policing. CHP provides funds directly to law enforcement agencies to hire new or rehire additional career law enforcement officers, thereby increasing their community policing capacity and crime prevention efforts. Of the 183 agencies awarded grants today, approximately half will use the funding to focus on building legitimacy and trust between law enforcement and communities; 41 agencies will seek to address high rates of gun violence; 21 will focus on other areas of violence; and 19 will focus CHP resources on combating hate and domestic extremism or supporting police-based responses to persons in crisis. The complete list of awards can be found here.
Since its creation in 1994, COPS has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and Tribal law enforcement agencies to fund the hiring and redeployment of more than 135,000 officers. CHP, COPS’ flagship program, continues to be in demand today: In FY21, COPS received 590 applications requesting nearly 3,000 law enforcement positions. For FY22, President Biden has requested $537 million for CHP, an increase of $300 million.
To learn more about CHP, please visit https://cops.usdoj.gov/chp-award. For additional information about the COPS Office, please visit https://cops.usdoj.gov/.
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Justice Department Settles with Donut Shop Franchise to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Department of Justice announced today that it reached a settlement with SV Donuts Inc. LLC (SV Donuts), a Maryland corporation that owns two Dunkin Donuts store franchises. The settlement resolves a claim that the company discriminated against a lawful permanent resident because of his immigration status by not allowing him to choose which valid documentation to present to show his permission to work.
Before filing the complaint that prompted the department’s investigation, the aspiring worker called the Civil Rights Division’s Immigrant and Employee Rights Section (IER) hotline for help in overcoming the company’s refusal to accept his unrestricted Social Security card and valid driver’s license — documents that are sufficient to show permission to work in the United States. IER’s hotline offers information and assistance to workers and employers to prevent discrimination and to resolve potential immigration-related employment disputes informally, when workers request such intervention. At the worker’s request, an IER attorney called the store manager and provided information that would have informally resolved the matter and allowed the caller to begin working. Despite receiving this information, the manager insisted that the worker’s Social Security card and valid driver’s license were not acceptable documents and that the worker had to provide an unexpired permanent resident card before he could begin working.
Based on its investigation, the department determined that SV Donuts violated the anti-discrimination provision of the Immigration and Nationality Act (INA) when it rejected the worker’s valid work documentation, requested specific documentation, and delayed his hiring because of his immigration status. The investigation also revealed that the company erroneously believed that the worker had to provide an unexpired permanent resident card in part because of E-Verify requirements.
“Employers must give workers the opportunity to freely choose and present any document from those deemed acceptable for showing that someone has permission to work in the United States,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Employers can contact IER’s hotline and get information to help them avoid committing unlawful discrimination. The Justice Department looks forward to working with SV Donuts to ensure it meets its obligations to avoid employment discrimination in the future.”
Federal law allows all individuals, regardless of citizenship or immigration status, to choose which valid, legally acceptable documentation to present to demonstrate their identity and permission to work in the United States. The INA’s anti-discrimination provision prohibits employers from requesting more or different documents than necessary or limiting employees’ choice of documents based on the employees’ citizenship, immigration status or national origin.
Under the terms of the settlement agreement, SV Donuts will pay a civil penalty to the United States and back pay to the affected worker. Additionally, SV Donuts will train its employees on the requirements of the INA’s anti-discrimination provision, including an IER-provided training, and be subject to monitoring for a three-year period to ensure the company is complying with the agreement.
IER is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits citizenship status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, can file a charge. The public also can contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.