Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
16 November 2021
Department of Justice Awards over $2 Million in Grants to Improve Public Safety and Serve Crime Victims in Western District of Michigan Tribal CommunitiesRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Andrew Birge announced today that, as part of a national rollout, the Department of Justice awarded $2,438,323 in grants to improve public safety, serve victims of crime and support youth programs in tribal communities in the Western District of Michigan.
“The Justice Department is pleased to make the Coordinated Tribal Assistance Solicitation available to federally recognized tribes, providing a transparent and simple process to apply for grants that best align with their community’s needs,” said Associate Attorney General Vanita Gupta. “This one-step application makes it possible for tribes to access critical resources to help them meet the critical public safety needs of their communities.”
“These awards underscore the Department of Justice’s commitment to help federally recognized Tribes keep their communities safe,” explained U.S. Attorney Birge.
More than four in five of American Indian and Alaska Native adults have experienced some form of violence in their lifetime, according to the Bureau of Justice Statistics. This equates to nearly three million people who have experienced stalking, sexual violence, psychological aggression or physical violence by intimate partners.
“Each year, the department invests millions of dollars to help our Tribal partners confront the challenges of violent crime and domestic abuse in their communities and strengthen their public safety infrastructure,” said Acting Assistant Attorney General Amy L. Solomon for the Justice Department’s Office of Justice Programs. “We are pleased to support the critical work that Tribal nations are undertaking in communities across the country.”
More than $73 million will be awarded under CTAS, a streamlined application which helps tribes apply for tribal-specific grant programs that enhance law enforcement and tribal justice practices, expand victim services and sustain crime prevention and intervention efforts. CTAS grants are administered by OJP ($48 million) and the Office of Community Oriented Policing Services (COPS Office) ($25 million).
“These grants provide vital resources to Tribal law enforcement and their communities by offering equipment and training, along with resources to help officers understand and better serve their communities in areas of domestic abuse, stalking and sex trafficking, and alleviate the detrimental effects that substance abuse and crime have on individuals and their families,” said Acting Director Robert Chapman of the COPS Office
The COPS Office also awarded $400,000 to Western Oregon University to create a structured and tribal-centered innovative approach to enhance the operation of the criminal justice system to address the concerns of the American Indian and Alaska Native communities regarding missing and murdered indigenous people, particularly missing and murdered women and girls.
In addition to CTAS funding, OJP has awarded more than $100 million through the Tribal Victim Services Set-Aside to improve services for crime victims in Tribal communities. OJP’s Office for Victims Crime is supporting tribal grantees with capacity building, training and technical assistance (more than $6.8 million) and an update of the Tribal Resource Tool ($199,999), which maps the availability of victim services in tribal communities. An additional $2.9 million will be awarded under the Children’s Justice Act Partnership to tribes to enhance the handling of cases centered around criminal child abuse and neglect.
The department also funded $6.5 million through OJP’s Office of Sex Offender Sentencing, Monitoring, Apprehending Registering and Tracking to help Tribes comply with federal law on sex offender registration and notification.
The following tribes in the Western District of Michigan received funding:
- Bay Mills Indian Community: $508,245
- Tribal Youth Program (OJJDP)
- Lac Vieux Desert Band of Lake Superior Chippewa Indians: $851,176
- Tribal Justice Systems (BJA)
- Sault Sainte Marie Tribe of Chippewa Indians: $1,078,902
- Public Safety and Community Policing (COPS Office): $628,902
- Children’s Justice Act Partnerships for Indian Communities (OVC): $450,000
Information about FY 2021 grant awards from the Office of Justice Programs can be found online on the OJP Grant Awards Page: https://www.ojp.gov/fy21-ojp-grant-awards. The page will be updated as awards are made.
Information about FY 2021 grant awards from the COPS Office can be found online at the COPS Grant Page: https://cops.usdoj.gov/grants.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
The COPS Office is the component of the U.S. Department of Justice responsible for advancing the practice of community policing by the nation's state, local, territorial and Tribal law enforcement agencies through information and grant resources. More information about the COPS Office can be found at https://cops.usdoj.gov/.
###
- Bay Mills Indian Community: $508,245
Cumberland County Man Charged with Child PornographyRead the Press Release
CAMDEN, N.J. – A Cumberland County, New Jersey, man was arrested today for allegedly distributing and possessing images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.
Edwin Torres, aka “Macho Torres,” 38, of Bridgeton, New Jersey, is charged by complaint with one count of distribution of child pornography and one count of possession of child pornography. He appeared today via videoconference before U.S. Magistrate Judge Ann Marie Donio in Camden federal court and was detained without bail.
According to documents filed in this case and statements made in court:
In May 2020, a user of a social media application uploaded to a public chat group multiple videos of child sexual abuse from an internet provider address linked to Torres’ residence. In September 2021, law enforcement agents executed search warrants at Torres’ residence and on a Google account associated with the social media account used to distribute the videos in May 2020. The Google account, which also had been accessed from Torres’ residence, contained over 100 videos of child sexual abuse, including videos whose content matched the videos distributed in May 2020. During the search of Torres’ residence, agents seized Torres’ cellular telephone, which had been used to access the same Google account.
The count of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a fine of $250,000. The count of possession of child pornography carries a maximum penalty of 10 years in prison, and a fine of $250,000.
Acting U.S. Attorney Honig credited special agents of the FBI, Atlantic City Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s charges. She also thanked the Cumberland County Prosecutor’s Office, under the direction of Prosecutor Jennifer Webb-McRae, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the Camden Office.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Clarksville Restaurant Owner Sentenced to Federal Prison for Alien Harboring and Tax Fraud ConspiracyRead the Press Release
NASHVILLE – Quanwei Shi, 31, of Clarksville, Tennessee, was sentenced Friday to 20 months in federal prison for conspiracy to harbor illegal aliens; harboring illegal aliens; money laundering; tax evasion; and employment tax fraud, announced Acting U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Shi, the majority owner of the New China Buffett & Grill (NCBG) in Clarksville, and co-owner Chongqiang Chen, 30, also of Clarksville, were arrested in April 2020, after a 14-count indictment charged them in a scheme to harbor undocumented workers and to defeat the tax laws of the United States. Shi pleaded guilty in March.
According to court documents, between 2017 and April 2019, Shi conspired to conceal and harbor illegal aliens from China and Guatemala, profiting from their employment at NCBG. The undocumented workers were not required to complete any forms related to their immigration status and were paid in cash, outside the regular payroll system. The undocumented workers lived with Shi at his residence on D Street in Clarksville and were transported to NCBG and back daily. Shi assigned the workers to work in the kitchen where they would not be able to interact with the patrons of the restaurant.
In addition to harboring the undocumented workers, Shi underreported gross receipts on NCBG’s corporate tax returns for tax years 2017 through 2019, and failed to collect, account for, and pay over employment taxes for an overall tax loss of $440,941.
U.S. District Judge Eli J. Richardson also ordered the forfeiture of Shi’s house in Clarksville and two vehicles and ordered restitution in the amount of $417,149.
Chongqiang Chen pleaded guilty in July and will be sentenced on February 25, 2022.
This case was investigated by Homeland Security Investigations; the IRS-Criminal Investigation; the Diplomatic Security Service of the U.S. Department of State; the Tennessee Bureau of Investigation; the Tennessee Bureau of Workers Compensation; the Clarksville Police Department; and the Montgomery County Sheriff’s Office. Assistant U.S. Attorneys Sara Beth Myers and Robert Levine are prosecuting the case.
# # # # #
Charlotte Man Convicted of Armed Robbery and Firearms Offenses Is Sentenced to 26+ Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced today that Ron McQuay Garland, 39, of Charlotte, was sentenced to 319 months in prison and five years of supervised release, for his role in a string of armed robberies, attempted armed robberies, and related firearms offenses.
Acting U.S. Attorney Stetzer is joined in making today’s announcement by Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte-Mecklenburg Police Department.
According to filed court documents, evidence presented at Garland’s trial, and witness testimony, on August 19, 2019, Garland, robbed at gunpoint a Zaxby’s fast food restaurant, located at 8905 Albemarle Road in Charlotte. Garland entered the restaurant while brandishing a black semiautomatic pistol at the employees. Garland then ordered an employee to open the cash register and took approximately $1,000 in cash. Garland subsequently fled the scene with a co-defendant. According to trial evidence, on September 21, 2019, Garland also robbed a Family Dollar store located at 4130 Rozzelles Ferry Road, in Charlotte. As witnesses testified, Garland entered the store and brandished a handgun at a store employee. Garland then forced the employee to open the register and Garland stole approximately more than $1,000 before fleeing.
According to court documents and trial evidence, Garland also attempted to rob two other Charlotte area businesses. On August 21, 2019, Garland attempted to rob an Arby’s fast food restaurant, located at 2501 Little Rock Road in Charlotte. Garland entered the restaurant, pointed a handgun at the employees and demanded money from the cash register. Garland was unable to open the register but took an employee’s cell phone before fleeing the scene with a co-defendant. On February 11, 2020, Garland also attempted to rob a Jack-in-the-Box restaurant, located at 10121 North Tryon Street in Charlotte. Garland pointed a firearm at an employee who was taking out the trash and attempted to enter the restaurant, first through the back door and then through the front door but was ultimately unsuccessful. Garland stole a wallet from a customer in the parking lot after eventually abandoning the attempted robbery. Garland fled the scene with a co-defendant and was apprehended early the next morning by the FBI and CMPD.
In July 2021, a federal jury convicted Garland of two counts of robbery of a business affecting interstate commerce, or “Hobbs Act” Robbery; two counts of attempted Hobbs Act Robbery; two counts of possession of a firearm during and in relation to a crime of violence; and one count of felon in possession of a firearm. Garland’s co-defendant, Chan Tate, was previously sentenced after pleading guilty to aiding and abetting Hobbs Act Robbery and attempted Hobbs Act Robbery.
The investigation was handled by the FBI’s Violent Crimes Task Force and CMPD.
Assistant U.S. Attorneys William Bozin and Taylor Stout of the of the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.
Charleston Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to a federal drug crime.
According to court documents and statements made in court, law enforcement officers executed a search warrant at the Charleston residence of Donavan Hardison, 31, on January 4, 2021. The officers found approximately 2.826 grams of fentanyl on Hardison and approximately 3.672 grams of cocaine base in Hardison’s vehicle. Hardison admitted that he intended to distribute both controlled substances. At the time, Hardison was serving terms of supervised release in conjunction with two prior federal convictions.
Hardison pleaded guilty to possession with intent to distribute quantities of fentanyl and cocaine base, for which he faces up to 20 years in prison when he is sentenced on February 17, 2022. In addition, Hardison faces up to four years in prison for his supervised release violations.
Senior United States District Judge John T. Copenhaver, Jr. presided over the plea hearing. Assistant United States Attorney Nick Miller is handling the prosecution.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the Charleston Police Department, the Metropolitan Drug Enforcement Network Team (MDENT), the Putnam County Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Drug Enforcement Administration (DEA).
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00130; 2:18-cr-00040; and 2:15-cr-00135.
###
Camden Man Sentenced to 200 Months in Prison for Robbing Two Banks, Attempting to Rob ThirdRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 200 months in prison for robbing two banks, and attempting to rob a third bank over a 10-day period in July 2018, Acting U.S. Attorney Rachael A. Honig announced.
Anthony L. Livingston, 50, was convicted in May 2019 of two counts of bank robbery, and one count of attempted bank robbery following a one-week trial before U.S. District Judge Renee Marie Bumb, who imposed the sentence today in Camden federal court.
According to documents filed in this case and the evidence at trial:
On July 14, 2018, Livingston entered the Gloucester Township PNC Bank wearing sunglasses and a hat. He presented a demand note to the teller and then left the bank with the stolen cash.
On July 24, 2018, Livingston attempted to recruit a homeless man to rob the Stratford PNC Bank on his behalf. Livingston instructed the man on how to rob the bank, gave him a demand note to show to the teller, and drove the man to the bank. The man walked into the bank and told the employee that he had been sent there to rob the bank and that he did not want to do it, and that the bank should call the police because the person who had sent him was waiting for him outside.
Four hours later, Livingston recruited co-defendant Laque Hunter to rob the Collingswood Ocean First bank on his behalf, and drove Hunter to the bank. Hunter robbed the bank with a demand note. Livingston served as the getaway driver, and the two split the proceeds. Hunter pleaded guilty on April 2, 29019, and is awaiting sentencing.
At the time of these crimes, Livingston was on federal supervised release. On July 13, 2018, one day before the first bank robbery, Livingston completed a 220-month term of imprisonment for having robbed eight banks in southern New Jersey in 2000 and 2001.
In addition to the prison term, Judge Bumb sentenced Livingston to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI-Cherry Hill, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Camden County Sheriff’s Office, under the direction of Sheriff Gilbert “Whip” Wilson; the Collingswood Police Department, under the direction of Chief Kevin J. Carey; the Gloucester Township Police Department, under the direction of Chief W. Harry Earle; and the Stratford Police Department, under the direction of Chief Ronald M. Morello, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Kristen M. Harberg and Patrick C. Askin of the Camden Office.
Camden County Man Sentenced to One Year and One Day in Prison for Conspiring with White Supremacists to Vandalize Synagogues Across the CountryRead the Press Release
CAMDEN, N.J. – A Camden County man was sentenced today to one year and one day in prison for his role in conspiring with members of a white supremacist hate group to threaten and intimidate African Americans and Jewish Americans by vandalizing minority-owned properties throughout the country in September 2019, Acting U.S. Attorney Rachael A. Honig announced.
Richard Tobin, 20, of Brooklawn, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with conspiracy against rights. Judge Kugler imposed the sentence today in Camden federal court.
“Richard Tobin encouraged hateful acts of violence against individuals and their houses of worship, based on their religion or the color of their skin,” Acting U.S. Attorney Rachael A. Honig said. “Justice demanded that he be held accountable for these racist and antisemitic actions, and we are proud to have joined with our colleagues in the Civil Rights Division and the Joint Terrorism Task Force in doing so in this case. Our commitment to protecting the civil rights of all in New Jersey is steadfast.”
“The defendant conspired with a white supremacist hate group to vandalize and destroy property owned by Jewish and Black Americans, intending to instill fear into those communities across the country,” Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division said. “This sentence makes clear that targeting persons owning and using property simply based on their race or religion will not be tolerated. The Department of Justice will continue to prosecute civil rights conspiracies and vindicate the rights of victims of bias motivated crimes.”
“Richard Tobin’s white supremacist beliefs are abhorrent, but his beliefs aren’t why he’s going to prison,” Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division, said. “He actively conspired with others to commit a crime of violence, to victimize innocent people because of who they are or how they worship. That’s what crossed a line and made it the FBI’s business. We’re always going to pursue individuals inciting violent, hateful acts meant to intimidate and isolate members of our community.”
According to documents filed in this case and statements made in court:
Tobin admitted that from Sept. 15 to Sept. 23, 2019, he was a member of a white supremacist group, “The Base,” and during that time, he communicated online with other members and directed them to destroy and vandalize properties affiliated with African Americans and Jewish Americans. Tobin dubbed this coordinated attack “Kristallnacht,” or “Night of Broken Glass,” after an attack in Germany on Nov. 9 and 10, 1938, in which Nazis murdered Jewish people and burned and destroyed Jewish homes, synagogues, stores and schools. Tobin implored members of The Base to post propaganda flyers and to break windows and slash tires belonging to African Americans and Jewish Americans. On Sept. 21, 2019, members of The Base vandalized synagogues in Racine, Wisconsin, and Hancock, Michigan, by spray painting them with hate symbols.
A conspirator, Yousef Omar Barasneh, previously pleaded guilty to conspiracy against rights in federal court in the Eastern District of Wisconsin, for his role in vandalizing the synagogue in Racine, Wisconsin.
In addition to the prison term, Judge Kugler sentenced Tobin to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI Philadelphia Division’s South Jersey Resident Agency, under the direction of Special Agent in Charge Maguire, and the Joint Terrorism Task Force and its member agencies, including the Department of Homeland Security – Homeland Security Investigations, the New Jersey Office of Homeland Security and Preparedness, the New Jersey State Police and the Camden County Police Department, with the investigation leading to today’s sentencing. She also thanked the Brooklawn and Cherry Hill police departments for their assistance.
The government is represented by Assistant U.S. Attorney Kristen M. Harberg of the U.S. Attorney’s Office in Camden and Trial Attorney Eric Peffley of the Civil Rights Division, Criminal Section.
California Woman Sentenced to 235 Months for Involvement in Meth and Money Laundering ConspiracyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that an Escondido, California, woman convicted of Conspiracy to Distribute Controlled Substances and Conspiracy to Launder Monetary Instruments was sentenced on November 1, 2021, by U.S. District Judge Karen E. Schreier.
Maribel Torres, age 37, was sentenced to 235 months in federal prison, followed by five years of supervised release. She was also ordered to pay $100 to the Federal Crime Victim Fund.
Torres was indicted for Conspiracy to Distribute Controlled Substances and Conspiracy to Launder Monetary Instruments by a federal grand jury on July 20, 2020. She pled guilty on June 21, 2021.
Beginning on an unknown date and continuing until on or about July 2020, Torres reached an agreement or came to an understanding to distribute 500 grams or more of a mixture of a substance containing methamphetamine in the District of South Dakota. During her involvement, she facilitated and directed the transportation and distribution of methamphetamine in South Dakota and elsewhere.
Additionally, beginning at an unknown date and continuing to on or about July 2020, in the District of South Dakota and elsewhere, Torres reached an agreement or came to an understanding to conduct and attempt to conduct financial transactions affecting interstate and foreign commerce. During her involvement, she wired funds derived from the sale of methamphetamine by utilizing various financial institutions. She also directed co-conspirators to do the same on her behalf. Further, she helped coordinate with co-conspirators the movement of cash drug proceeds across state lines.
This case was investigated by the Drug Enforcement Administration, Internal Revenue Service, South Dakota Division of Criminal Investigation, Sioux Falls Area Drug Task Force, and the South Dakota Highway Patrol. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Torres was immediately turned over to the custody of the U.S. Marshals Service.
Bulgarian National and Washington State Man Charged in Connection with International Enterprise That Operated Sexually Exploitive “Child Modeling” WebsitesRead the Press Release
Tampa, Florida – Acting United States Attorney Karin Hoppmann announces the unsealing of two indictments in connection with an international enterprise based in Florida that operated subscription-based sexually exploitative “child modeling” websites. Plamen Georgiev Velinov (48, Sofia, Bulgaria) is charged with conspiring to advertise and distribute child pornography in connection with the Florida-based enterprise. Anthony Lee Kendall (55, Mossyrock, WA) is charged with money laundering and money laundering conspiracy in connection with his laundering of approximately $1 million for the enterprise.
Arrests of Defendants Velinov and Kendall
Velinov was arrested yesterday in Sofia, Bulgaria by officers from Bulgarian National Investigative Service and the Sofia Metropolitan Police at the request of the United States. Kendall was arrested yesterday in Washington.
If convicted, Velinov faces a minimum mandatory penalty of 15 years’ imprisonment for conspiring to advertise child pornography, a minimum 5 years’ imprisonment for conspiring to distribute child pornography, and a total maximum penalty of 50 years’ imprisonment for both offenses. The indictment also notifies Velinov that the United States intends to forfeit more than $434,000 in assets that are alleged to be traceable to proceeds of the offenses. If convicted, Kendall faces up to 20 years in federal prison for each count of the five-count money laundering charges in the indictment. The indictment also notifies Kendall that the United States intends to forfeit $944,678 in assets that are alleged to be traceable to proceeds of the offenses.
According to court documents, Velinov assisted with directing and controlling the foreign functions of the Newstar Enterprise—an internet-based business aimed at for-profit sexual exploitation of vulnerable children under the guise of “child modeling” through a collection of websites called the Newstar Websites. Velinov helped maintain and update the Newstar Websites. Kendall performed financial functions essential to the Newstar Enterprise. Kendall fraudulently opened payment processing, merchant, and bank accounts for the Newstar Enterprise and facilitated, conducted, and concealed monetary transactions involving approximately $1 million in revenue from the Newstar Websites. Kenneth Power (deceased at 58, of Weston), was a principal member of the Newstar Enterprise who directed and controlled its operations. Patrice Eileen Wilowski-Mevorah (53, of Tampa) and Mary Lou Bjorkman (58, of Lutz) recently pleaded guilty to laundering money for the Newstar Enterprise. Kenneth Power’s wife, Tatiana “Tanya” Power (41, of Weston), is currently pending trial on money laundering charges in connection with the Newstar Enterprise. Other members of the Newstar Enterprise resided in Europe.
The Newstar Enterprise and Status of Other Defendants
According to court documents, founded around 2005, the Newstar Enterprise built, maintained, hosted, and operated the Newstar Websites on servers in the United States and abroad. To populate the Newstar Websites with content, Newstar Enterprise members sourced, enticed, solicited and recruited males and females under the age of 18, some of whom were prepubescent, to use as “child models” for the Newstar Websites. Using the recruited child-victims, the Newstar Enterprise produced more than 4.6 million sexualized images and videos to distribute and sell on the Newstar Websites. Some of those images and videos, though non-nude, depicted minors engaged in sexually explicit conduct. For example, images and videos sold on the Newstar Websites depicted children as young as 6 years old in sexual and provocative poses, wearing police and cheerleader costumes, thong underwear, transparent underwear, revealing swimsuits, pantyhose, and miniskirts. Most of the child-victims—recruited from Ukraine, Moldova, and other nations in Eastern Europe—were particularly vulnerable due to their age, family dynamics and poverty. Law enforcement officers have disabled the servers hosting the Newstar Websites.
The Newstar Enterprise maintained a membership list for subscribers and customers of the Newstar Websites, who originated from 101 nations across the world. Images in the websites’ galleries were freely available to the public to preview, but greater access and more content required purchasing a subscription. The sale of purported “child modeling” content on the Newstar Websites generated more than $9.4 million during the course of the conspiracy. To process, receive and distribute this money, Newstar Enterprise members fraudulently opened merchant and bank accounts in the United States and laundered proceeds using a bogus jewelry company.
To date, six members of the Newstar Enterprise have been charged in connection with the Newstar Websites. The chart below shows the status of each case.
Name
Case Number
Charge(s)
Status
Maximum Penalty
Tatiana Power
8:21-cr-244-MSS-AAS
Conspiracy to commit money laundering; international promotion money laundering; concealment money laundering
Indicted,
pending trial
100 years’ imprisonment
Kenneth Power
8:21-cr-00032-SDM-AAS
Conspiracy to advertise child pornography; conspiracy to distribute child pornography
Defendant deceased; case dismissed
60 years’ imprisonment
Plamen Velinov
8:21-cr-342-VMC-SPF
Conspiracy to advertise child pornography; conspiracy to distribute child pornography
Indicted, pending extradition
50 years’ imprisonment
Patrice Wilowski-Mevorah
8:21-cr-00206-MSS-TGW
Conspiracy to commit money laundering
Pleaded guilty, sentence pending
20 years’ imprisonment
Anthony Lee Kendall
8:21-cr-358-SCB-TGW
Conspiracy to commit money laundering; promotion money laundering; concealment money laundering
Indicted, pending trial
100 years’ imprisonment
Mary Lou
Bjorkman
8:21-cr-00227-SDM-AAS
Conspiracy to commit money laundering
Pleaded guilty, sentence pending
20 years’ imprisonment
The defendants have also been notified that the United States intends to forfeit a total of $9.4 million, which are alleged to be traceable to proceeds of the offenses, in addition to real property located in Florida.
These cases were investigated by Homeland Security Investigations in Tampa and the High Technology Investigative Unit of the Department of Justice Criminal Division’s Child Exploitation and Obscenity Section (CEOS), with substantial assistance provided by Homeland Security Investigations offices in Fort Lauderdale, Athens, and the Hague, U.S. Customs and Border Protection in Sofia, Bulgaria, as well as the IRS Criminal Investigation in Tampa.
Assistant U.S. Attorney Frank Murray of the Middle District of Florida and Trial Attorney Kyle Reynolds of the CEOS are prosecuting these cases.
This investigation benefited from foreign law enforcement cooperation and substantial assistance by the Republic of Bulgaria, Supreme Cassation Prosecution Office and National Investigation Service; the Republic of Moldova, Office of the Prosecutor General and National Inspectorate of Investigations; International Legal Assistance Center (IRC), North-Holland Unit; the Cantonal Police (Berne); and the Czech Republic, Supreme Public Prosecutor’s Office, Czech Police. The Justice Department’s Office of International Affairs and Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) provided investigative assistance.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
Boston Man Charged with Child Exploitation OffenseRead the Press Release
BOSTON – A Boston man, who is on probation following a state conviction for child exploitation offenses, including trafficking, was charged yesterday with allegedly soliciting a minor on TikTok.
Hector Acevedo, 31, of Jamaica Plain, was charged with one count of sexual exploitation of children. On Oct. 20, 2021, Acevedo was arrested on related state charges and has been in custody since. Acevedo will make an initial appearance in federal court in Boston at a later date.
According to the charging documents, Acevedo is a Level 3 registered sex offender. Acevedo was previously convicted in Suffolk County Superior Court on multiple child and sexual exploitation offenses including trafficking of a person for sexual servitude, extortion by threat of injury, posing or exhibiting a child in state of nudity or sexual conduct, dissemination of matter harmful to minors, dissemination of child pornography and purchase or possession of child pornography. On Feb. 13, 2018, Acevedo was sentenced to five-to-seven years in state prison and three years of probation. While on state probation, Acevedo allegedly solicited a minor via TikTok and coerced the victim to engage in sexual conduct over video chat.
The charges of sexual exploitation of children provides for a sentence of at least 15 years and up to 30 years in prison, at least five years and up to a lifetime of supervised release, a fine of up to $250,000 and restitution. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Acting Commissioner Gregory Long made the announcement today. Valuable assistance was provided by the Arlington and Revere Police Departments. Assistant U.S. Attorney Elianna Nuzum of Mendell’s Major Crimes Unit is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Berkeley County woman admits to role in drug trafficking conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Angela Dawn Gregory, of Martinsburg, West Virginia, has admitted to a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Gregory, 47, pleaded guilty today to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin, Fentanyl, Cocaine Base, and Cocaine Hydrochloride.” Gregory admitted to working with others to distribute fentanyl, heroin, cocaine base, and cocaine hydrochloride from August 2020 to June 2021 in Berkeley County and elsewhere.
Gregory faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Assistant U.S. Attorneys Lara Omps-Botteicher and Timothy D. Helman are prosecuting the cases on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police; Customs and Border Protection; FBI-New York Safe Streets Task Force; and the New Jersey State Police investigated. The U.S. Attorney’s Office for the District of Maryland and the U.S. Attorney’s Office for the Middle District of Pennsylvania assisted.
U.S. Magistrate Judge Robert W. Trumble presided.
Baystate Medical Center Agrees to Settle Allegations of Americans with Disabilities Act ViolationsRead the Press Release
BOSTON – Baystate Medical Center (Baystate) has agreed to resolve allegations that it violated the Americans with Disabilities Act (ADA) by failing to provide effective communication during scheduled labors and deliveries of individuals who are deaf or hard of hearing.
The agreement resolves a complaint by an individual who is deaf and uses American Sign Language (ASL) to communicate. The complaint alleges that Baystate failed to provide the aggrieved party with effective ASL communication during her scheduled labor and delivery, in violation of the ADA. While investigating this complaint, another aggrieved party who was not provided with an ASL accommodation during two scheduled labors and deliveries was identified.
Under the terms of the agreement, Baystate will ensure effective communication by providing appropriate auxiliary aids and services, including ASL interpreters, and implementing personnel training. Additionally, Baystate will pay a total of $135,000 to the aggrieved parties.
“Effective communication between moms and healthcare providers is important – never more so than at childbirth,” said Acting United States Attorney Nathaniel R. Mendell. “This settlement is another example of the ADA at work – in this case ensuring that moms who are deaf or hard of hearing will receive services that provide necessary, effective communication with health care providers at Baystate Medical Center.”
“At no time should any person have to undergo a health care procedure or receive services without the basic ability to communicate with their health care providers. This agreement underscores that the availability of auxiliary aids and services are essential to meaningful access to quality health care,” said Lisa J. Pino, Director of the U.S. Department of Health and Human Services, Office for Civil Rights. “Providers must understand their obligations under law and ensure patients can understand and communicate effectively so that no one’s health is jeopardized simply because a person is deaf or hard of hearing.”
Acting U.S. Attorney Mendell and HHS OCR Director Pino made the announcement today. Assistant U.S. Attorney Gregory Dorchak of Mendell’s Civil Rights Unit and Erin Walker of HHS’s Office for Civil Rights handled the matter.
Baltimore Woman Admits Assisting the Murder of a Woman and Her Seven-Year-Old Son During a 2015 Drug-Related RobberyRead the Press Release
Baltimore, Maryland – Kiara Haynes, age 36, of Baltimore, pleaded guilty today to two counts of aiding and abetting the use and discharge of a firearm in relation to a drug trafficking crime and crime of violence, causing the death of Jennifer Jeffrey and her seven-year-old child. Haynes has been detained since her arrest in Texas on June 18, 2021, on a related federal criminal complaint.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; and Chief Mark K. Lewis of the Cambridge Police Department.
“The murders of Jennifer Jeffrey and her child were a tragedy,” said U.S. Attorney Erek L. Barron. “The loss of any life is tragic, and never more so than a child. If you threaten or harm a witness, especially a child, the full weight of federal law enforcement will be harnessed to hold you accountable and bring you to justice, no matter how long it takes.”
According to Haynes’s plea agreement, Haynes helped her co-defendant, with whom she was romantically involved, plan to steal heroin from Jennifer Jeffrey, a long-time friend of Haynes. On May 26, 2015, the co-defendant arrived at Haynes’s apartment from the co-defendant’s home in Cambridge and the two went to the phone store, where the co-defendant bought a new phone. During the course of the evening, the co-defendant explained that Jeffrey had heroin and he planned to rob and kill Jeffrey to get the heroin. The co-defendant confirmed to Haynes his intention to kill not only Jeffrey, but her minor child if the child were present at the time of the robbery. Haynes offered to help the co-defendant get a gun.
Haynes subsequently contacted a relative whom she knew to have a gun. The relative was incarcerated at the time. Haynes told the relative on a recorded jail line that she needed the gun so the co-defendant could rob Jeffrey of her drugs. In exchange for allowing Haynes to use the gun, Haynes promised to give the inmate “like 30 [grams]” of the stolen heroin and his gun back. The inmate agreed to loan Haynes the gun. After the call, Haynes and the co-defendant met with the inmate’s brother, who gave Haynes a .45 caliber firearm. Haynes and the co-defendant returned to Haynes’s apartment with the gun.
Later that night, as detailed in the plea agreement, the co-defendant left Haynes’s apartment to go hang out with Jeffrey at Jeffrey’s nearby home. When Haynes woke up later and realized that the co-defendant had not returned, Haynes got upset. Between 4:00 a.m. and 5:00 a.m. Haynes walked over to Jeffrey’s home and began banging on the door and yelling for the co-defendant to come out. Jeffrey’s relative opened the door and told Haynes that children were in the house asleep and that Haynes should go home, which she eventually did.
According to Haynes’s plea agreement, at approximately 7:23 a.m., the co-defendant walked back from Jeffrey’s residence to Haynes’s apartment. The co-defendant told Haynes that Jeffrey had shown him a large amount of heroin and that Jeffrey’s child did not feel well and had not gone to school that day. At approximately 11:41 a.m. Haynes overheard the co-defendant on the phone with Jeffrey, who was talking about making breakfast for the co-defendant. When the co-defendant got off the phone, he retrieved the .45-caliber gun from Haynes’s bedroom and told Haynes that he was going to Jeffrey’s to get the drugs.
When the co-defendant returned to Haynes’s apartment, Haynes asked him what had happened. The co-defendant told Haynes that Jeffrey and her child were dead and gave Haynes a bag of heroin as her “cut” of Jeffrey’s drugs. When Haynes went to a friend’s house to meet the co-defendant, she overheard individuals telling the co-defendant that the heroin was only worth $8,000. As detailed in the plea agreement, Haynes returned the gun to the inmate’s relative along with the heroin given to her by the co-defendant, as payment for the use of the gun.
On May 28, 2015, after a receiving a call for assistance, the Baltimore Police Department discovered Jeffrey and her child dead in their home.
In the plea agreement, Haynes further admitted that she lied to investigators and prosecutors about these events on five occasions between May 2015 and November 2020.
Haynes faces a mandatory minimum sentence of 10 years in federal prison and a maximum sentence of life in prison on each of the two counts. U.S. District Judge Richard D. Bennett scheduled sentencing for February 24, 2022 at 2:30 p.m.
United States Attorney Erek L. Barron commended the ATF, the FBI, the Baltimore Police Department, and the Cambridge Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Dana J. Brusca, Sandra Wilkinson, and Paul Budlow, who are prosecuting the case, and thanked Assistant U.S. Attorney Michael C. Hanlon for his assistance.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
# # #
Aurora Man Sentenced to 15 Years for illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – An Aurora, Missouri, man was sentenced in federal court today for illegally possessing firearms after leading law enforcement officers on a high-speed chase from Bolivar, Mo., to Springfield, Mo.
Milton W. Sparks, 38, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years in federal prison without parole.
On April 15, 2021, Sparks pleaded guilty to two counts of being a felon in possession of a firearm.
Sparks admitted that he was in possession of a Ruger 9mm handgun on Dec. 20, 2017. Law enforcement officers attempted to stop Sparks, who was driving a stolen Dodge Challenger. Sparks fled from officers at speeds up to 128 miles per hour. At one point, Sparks changed into the right lane of Highway 13 and cut off a dump truck. The right rear tire of the Charger exploded, but Sparks continued driving at about 100 miles per hour. Sparks fled from Bolivar, Mo., to a residential neighborhood in Springfield, Mo., despite officers deploying two tire deflation devices. After running numerous red lights, the Charger driven by Sparks struck the driver’s side of a Chevrolet pickup. Sparks continued driving about 12 more minutes, when he jumped out of the vehicle while it was still running, and began running on foot between houses. Sparks was found hiding under a porch and was arrested. Officers later found the handgun, with a loaded magazine, on the side of the highway where Sparks had thrown it during the pursuit.
Sparks also admitted that he was in possession of a Llama .45-caliber semi-automatic pistol on March 1, 2017. An employee of the Quality Inn in Springfield alerted the police about a noticeable amount of traffic coming and going from the room rented by Sparks, which is consistent with drug activity. According to court documents, the room’s toilet was flushed multiple times while police were outside the room and a police canine detected the scent of drugs near the toilet, indicating that a large amount of drugs was likely flushed during the delay in opening the door. Sparks jumped from a second-floor window of the room and attempted to flee. However, he landed near two police officers, who detained him. Sparks had $1,203 and two cell phones in his possession. When officers searched the hotel room, they found another $3,049, trace amounts of methamphetamine, and the loaded pistol hidden behind the removable panels around a Jacuzzi tub.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Sparks has prior felony convictions for assault (in which he struck another man and knocked out his two front teeth), assault on a law enforcement officer (in which he struck a police vehicle while trying to flee in a stolen vehicle, and injured two officers), and involuntary manslaughter.
According to court documents, the involuntary manslaughter conviction resulted from an incident on Aug. 22, 2010. Police officers responded to a report of an unknown male who had forced entry into a home. Investigators eventually determined the man had come to the home looking for someone and forced his way inside. Sparks admitted to causing the man’s death by punching him while another person restrained him in a chokehold.
This case was prosecuted by Assistant U.S. Attorneys Josephine L. Stockard and James J. Kelleher. It was investigated by the Springfield, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration.
Armed Fentanyl Dealer Sentenced to Seven Years in Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Laquan De’Shay Jones (23, Apopka) to seven years in federal prison for possessing fentanyl with the intent to distribute it and for possessing a firearm in furtherance of a drug trafficking crime. The court also ordered Jones to forfeit the firearm and ammunition that he was carrying as part of the offense.
Jones had pleaded guilty on August 18, 2021.
According to court documents, deputies from the Orange County Sherriff’s Office arrested Jones on an active felony warrant for a violation of probation. During the arrest, agents recovered a loaded Glock pistol from Jones’s vehicle. In the trunk of the vehicle deputies located a duffle bag inside of which were multiple small plastic bags of white powdered fentanyl, cutting agents (chemicals), containers, a scale, and other drug paraphernalia, such as a blender and playing cards bent in half. The total amount of fentanyl was determined to be almost 15 grams. Jones admitted to being a fentanyl dealer.
Jones was previously convicted of multiple felony offenses, including accessory after the fact to a first-degree felony, resisting an officer, burglary, attempted burglary, and trespassing.
This case was investigated by the Orange County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney John Gardella.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Anson County Man Is Sentenced to More Than Six Years on Drug and Gun ChargesRead the Press Release
CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced that Carnell Charles Caple Jr., 32, of Wadesboro, N.C., was sentenced yesterday to 76 months in prison and three years of supervised release on federal drug and gun charges.
Robert R. Wells, Special Agent in Charge of the FBI in Charlotte, and Chief Thedis Spencer of the Wadesboro Police Department join Acting U.S. Attorney Stetzer in making today’s announcement.
According to court documents and the sentencing hearing, on November 12, 2020, a Wadesboro Police Department detective conducted a traffic stop of the vehicle in which Caple was riding as a passenger. Over the course of the traffic stop, the officer asked the driver of the vehicle to step outside and instructed Caper to remain in the car. Caple did not comply and instead attempted to flee on foot. Law enforcement at the scene observed Caple discard a black bag while he ran with a firearm in his hand. Shortly thereafter, Caple tripped and fell and was placed under arrest.
According to court records, officers recovered Caple’s firearm, which was loaded with 15 rounds of ammunition and one additional round in the chamber. Law enforcement later determined that the firearm was stolen. Law enforcement also recovered Caple’s black bag, in which they found narcotics, drug paraphernalia, and another magazine loaded with 10 rounds of ammunition. Court records show that at the time of the offense Caple was on supervised release for a previous federal offense.
On July 22, 2021, Caple pleaded guilty to possession with intent to distribute methamphetamine and cocaine, and possession of a firearm by a convicted felon. He is currently in federal custody and will be transferred to custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the FBI and the Wadesboro Police Department for their investigation of the case. Assistant United States Attorney Regina Pack, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. 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.
Almost $57 Million in Seized Cryptocurrency Being Sold for Victims of BitConnect FraudRead the Press Release
Assistant U. S. Attorneys Daniel C. Silva, Mark W. Pletcher, Lisa Sanniti and Carl Brooker
SAN DIEGO — Pursuant to court order, the U.S. Attorney’s Office for the Southern District of California, in conjunction with the U.S. Postal Investigative Service, will begin liquidation of approximately $57 million in cryptocurrency (at current estimated prices) seized from the top North American promoter of BitConnect. This liquidation is believed to be the largest single recovery of cryptocurrency for victims to date.
On September 1, 2021, Glenn Arcaro, 44, of Los Angeles, pleaded guilty for his participation in a massive conspiracy involving BitConnect, a cryptocurrency investment scheme, which defrauded investors from the United States and abroad of over $2 billion. The BitConnect scheme is believed to be the largest cryptocurrency fraud ever charged criminally.
As part of his plea agreement, Arcaro admitted that he earned no less than $24 million from the BitConnect fraud conspiracy, all of which, according to court documents, he has agreed repay to defrauded investors. The order entered on November 12, 2021, begins the process of making those victims whole by liquidating the fraud proceeds in Arcaro’s possession—the vast majority of which were in the form of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Dash, and several others.
Acting U.S. Attorney Randy S. Grossman praised the work of the prosecutors and law enforcement agencies handling this matter, including the FBI’s Cleveland Field Office, as well as, more locally, IRS-CI, the Financial Investigations and Border Crimes Task Force (the “FIBC”—a multiagency Task Force based in San Diego and Imperial Counties, funded by the Treasury Executive Office of Asset Forfeiture), who are investigating the matter, and the U.S. Postal Investigative Service in the Southern District of California who is liquidating the cryptocurrency.
All investor victims of the BitConnect fraud are encouraged to visit the following webpage - https://www.justice.gov/usao-sdca/us-v-glenn-arcaro-21cr02542-twr for information on their rights as a victim, the ability to submit a victim impact statement, and to identify themselves as a potential victim.
Arcaro’s sentencing is scheduled to occur on January 7, 2022, before U.S. District Judge Todd W. Robinson.
DEFENDANT Case Number 21CR2542-TWR
Glenn Arcaro Los Angeles, CA Age: 44
SUMMARY OF CHARGES
Conspiracy to Commit Wire Fraud—Title 18, U.S.C., Section 1349
Criminal Forfeiture—Title 18, U.S.C., Section 982
Maximum penalty: Twenty years in prison, $250,000 fine or twice the gross gain or loss from the offense, whichever is greater, forfeiture, and restitution
AGENCIES
FBI
IRS Criminal Investigation—Financial Investigations and Border Crimes Task Force
United States Postal Inspection Service
*The charges and allegations contained in an indictment or information are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Alleged Money Launderers for Mexican Cartels IndictedRead the Press Release
Assistant U. S. Attorneys Blanca Quintero (619) 546-7118 and Vivian Sapthavee (619) 546-7696
NEWS RELEASE SUMMARY – November 16, 2021
SAN DIEGO – An indictment was partially unsealed yesterday in federal court charging 29 alleged members of an international money laundering organization that is tied to the Sinaloa Cartel and Jalisco New Generation Cartel in Mexico.
During the past week, federal, state, and local law enforcement officials have arrested
21 defendants throughout San Diego, Calexico, and Bakersfield, California, who were allegedly involved in a sophisticated international money laundering scheme.According to the indictment and other public records, this Imperial Valley-based money laundering organization (MLO) laundered in excess of $32 million in drug proceeds from the United States to Mexico. The money laundering organization secured contracts with drug trafficking organizations in Mexico to pick up drug proceeds in cities throughout the United States, including Baltimore; Detroit; Los Angeles; Philadelphia; Boston; Denver; Chicago; New York City and numerous others.
Once the MLO received a contract, it communicated with couriers and bank account holders using burner phones and code phrases to coordinate bulk cash deposits into fictitious funnel business bank accounts, the indictment said. The defendants allegedly served as either couriers and/or funnel bank account holders. The couriers travelled from San Diego to cities throughout the country to receive the bulk cash after using photographs and codes to verify the meeting details. The bulk cash was typically concealed in trash bags, duffel bags, or shoeboxes. After the illicit cash proceeds were deposited into the fictitious funnel bank accounts, the monies were wired to personal bank accounts in Mexico where the money was then dispersed to the drug trafficking organizations.
“Today we have dealt a serious blow to this Imperial Valley-based international money laundering network with ties to the Sinaloa Cartel and the Jalisco New Generation Cartel,” said Acting U.S. Attorney Randy Grossman. “By dismantling this network, the Department of Justice reaffirms its unwavering commitment to bringing to justice those who corrupt our financial systems by laundering their illicit proceeds.” Grossman commended the prosecution team at the U.S. Attorney’s Office and our law enforcement partners with Homeland Security Investigations (HSI), Drug Enforcement Administration (DEA), and Internal Revenue Service (IRS) Criminal Investigation Division, for their excellent work on this case.
“This complex financial investigation is a perfect example of the unrelenting focus shown by HSI and its partners in the Costa Pacifico Money Laundering Task Force to stop criminal organizations attempting to launder illicit narco dollars,” said HSI San Diego Special Agent in Charge Chad Plantz. “The key to dismantling Drug Trafficking Organizations is disrupting the flow of illicit funds and attacking the money laundering element of the organizations. HSI will continue to work with its fellow law enforcement partners to protect U.S. financial infrastructure and use our comprehensive investigative authorities to stop criminal organizations engaged in drug trafficking and money laundering.”
Acting U.S. Attorney Grossman also praised federal, state, and local law enforcement for the coordinated team effort in the culmination of this investigation. Agents and officers from the United States Marshals Service, Customs and Border Protection, San Diego Sheriff’s Department, and state and local law enforcement from the Imperial Valley area also provided vital assistance for the investigation. Additionally, this investigation was conducted with support from the Treasury Executive Office for Asset Forfeiture (TEOAF) Third-Party Money Laundering (3PML) program and the High Intensity Drug Trafficking Area program.
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. This case was led by the HSI Costa Pacifico Money Laundering Task Force (CPTF), the DEA, and the IRS - Criminal Investigation. The CPTF is a cooperative partnership of federal, state and local law enforcement agencies focusing on domestic and transnational criminal organizations seeking to cleanse and conceal narcotics proceeds via bulk cash smuggling or through national and international financial systems.
An indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
DEFENDANTS Case Number 21cr2546-GPC
Ricardo VALENZUELA-Gale Age: 25 Mexicali, Mexico
David DURAN-Rivera Age: 35 BOP Custody
Gerardo SILVAS Age: 33 Mexicali, Mexico (BOP Custody)
Jose Luis VARGAS-Espinosa Age: 30 BOP Custody
Robert ANZALDO Age: 28 Mexicali, Mexico
Diana Brenda RODRIGUEZ-Sandez Age: 23 Mexicali, Mexico
Christian FERNANDEZ Age: 29 Mexicali, Mexico
Julia Vianney SUAZO-Quirino Age: 23 Mexicali, Mexico
Adrian Rosett VELASQUEZ Age: 23 Mexicali, Mexico
Shantal MACIEL Age: 34 Mexicali, Mexico
Cesar Enrique CANTU Age: 29 Unknown
Nessie Aizu Age: 28 Mexicali, Mexico
Alejandro CABRERA-Herrera Age: 21 Unknown
Adriana Elizabeth VALENZUELA-Gale Age: 28 Mexicali, Mexico
Axel GUADALUPE Age: 20 Unknown
Fidel Alejandro ZAMARANO-Bernal Age: 33 Unknown
Derian SERVIN-Diaz Age: 25 Unknown
Erik D. GALAVIZ Age: 30 Mexicali, Mexico
SUMMARY OF CHARGES
Conspiracy to Launder Monetary Instruments (18 U.S.C. §§ 1956(a)(1) and (h))
Maximum Penalties: Twenty years in prison, $500,000 fine or twice the value of the monetary instrument or funds involved.
AGENCIES
Homeland Security Investigations
Drug Enforcement Administration, Narcotics Task Force
Internal Revenue Service - Criminal Investigation
Customs and Border Protection, Office of Field Operations
San Diego Sheriff’s Department
Alabama Man Sentenced to 22 Years After Conviction of Illegal Possession of Meth, 14 Firearms and Stolen Police Body ArmorRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that on Monday, November 15, 2021, Judge Christopher A. Boyko sentenced Brandon L. Sheridan, 35, of Mobile, Alabama, to 22 years in prison. A jury found Sheridan and codefendant Justin Martin, 34, of Akron, guilty of possession with the intent to distribute methamphetamine and possession of firearms in furtherance of a drug trafficking crime in July of 2021.
According to court documents, on January 10, 2018, law enforcement officers executed a search warrant at a residence on Lake Street in Akron. An investigation revealed that Martin and Sheridan were using the address as a base of operations to conduct drug trafficking activities. During the execution of the warrant, officers encountered Martin and Sheridan inside the residence and located approximately 1 kilo of methamphetamine, 14 firearms (four of which were reported stolen), ammunition, approximately $7,000 in cash drug packaging materials and paraphernalia.
Officers also recovered law enforcement-issued body armor previously reported stolen from a Cuyahoga Falls police officer during a residential burglary.
Judge Boyko sentenced codefendant Justin Martin to 23 years imprisonment on October 29, 2021.
This case was investigated by the Federal Bureau of Investigation and the Akron Police Department. This case is being prosecuted by Assistant U.S. Attorneys Aaron P. Howell and Peter Daly.
Akron Man Found Guilty of Distributing Fentanyl that Led to Fatal OverdoseRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that on Monday, November 15, 2021, a federal jury returned guilty verdicts against Defendant Quentin D. Watson, 35, of Akron, Ohio, following a week-long trial before Judge Pamela A. Barker in Cleveland. Watson was found guilty of distributing a fentanyl substance that led to a fatal overdose, possession with intent to distribute methamphetamine, possession with intent to distribute fentanyl and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and evidence presented at trial, on June 24, 2020, Watson distributed a fentanyl substance to a woman identified in court documents as M.M., who ingested the substance, overdosed and died. Later, in October of 2020, Akron Police stopped and searched a vehicle that Watson was driving and found various amounts of fentanyl, methamphetamine and a 9mm pistol.
Watson faces a mandatory minimum of at least 25 years imprisonment and a max possible sentence of life. A sentencing date has not been scheduled.
This case was investigated by the Akron Police Department, Akron Fire Department, Summit County Medical Examiner’s Office, Ohio Bureau of Criminal Investigation and the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorneys Aaron P. Howell and Christopher J. Joyce.
Aiken Man Sentenced to Ten Years in Federal Prison on Ammunition and Drug ChargesRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Aaron Shawayne Griffin, 29, of Aiken, was sentenced to ten years in federal prison after pleading guilty to felon in possession of ammunition and possession with intent to distribute methamphetamine.
Evidence presented to the court showed that on September 5, 2018, a deputy with the Lexington County Sheriff’s Department stopped Griffin for speeding. As the deputy approached the passenger side of the vehicle, he could smell the odor of marijuana coming from the vehicle. During a search of the vehicle, deputies located a backpack containing a large amount of cash, over 800 grams of methamphetamine, and two firearm magazines loaded with .40 caliber ammunition and 9mm ammunition.
Griffin’s prior record includes a 2010 simple possession of marijuana and resisting arrest and a 2015 misprision of a felony. Griffin is a validated gang member and was on probation at the time of the offense.
United States District Judge J. Michelle Childs sentenced Griffin to 120 months in federal prison, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
This case was investigated by the Drug Enforcement Administration (DEA) and Lexington County Sheriff’s Department.
The case was prosecuted as part of the 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.
Special Assistant United States Attorney Casey Rankin Smith prosecuted the case.
# # # # #
AUSA Maureen Sheehan-Balchon Receives the “Dick Thornburgh Award”Read the Press Release
PITTSBURGH – Assistant U.S. Attorney Maureen Sheehan-Balchon is the 2021 recipient of the Dick Thornburgh Award, Acting U.S. Attorney Stephen R. Kaufman announced today. Former U.S. Attorney Scott Brady established the annual award to recognize outstanding performance by an Assistant U.S. Attorney.
AUSA Sheehan-Balchon, of Westmoreland County, oversees the U.S. Attorney’s Johnstown branch office. She joined the office in March 2019 and is prosecuting several of the western District’s highest profile cases:
- U.S. v. John Bisbee et al. – Forty-two individuals were accused of bringing kilogram quantities of methamphetamine from Atlanta for distribution throughout northcentral Pennsylvania. It is the largest drug investigation and prosecution in the history of Clearfield County.
- U.S. v. Mikal Davis et al. – Thirty-two individuals were accused of conspiring to distribute and possess with intent to distribute heroin, cocaine, crack cocaine, fentanyl, and methamphetamine from April 2019 to July 2021.
- U.S. v. Jon Osewalt – Osewalt was indicted in September 2021 on charges of producing and possessing images of minors engaged in sexually explicit conduct.
- Operation Tri-County – This wiretap investigation resulted in charges against 20 individuals for conspiring to use the U.S. mail to receive kilogram quantities of cocaine for distribution in Lawrence County and surrounding counties from 2017 through May 2019.
AUSA Sheehan-Balchon received the award during an in-office Service Recognition Ceremony.
The Dick Thornburgh Award is presented annually to an outstanding federal prosecutor in the Western District of Pennsylvania who exhibits the commitment to justice and the highest ethical standards that were embodied by General Thornburgh throughout his career. Mr. Thornburgh was a former Attorney General of the United States, U.S. Attorney for the Western District of Pennsylvania, and Pennsylvania Governor.
The inaugural award was presented to AUSA Brendan T. Conway, Chief of the Major Crimes Section, on November 5, 2020.
$56 Million in Seized Cryptocurrency Being Sold as First Step to Compensate Victims of BitConnect Fraud SchemeRead the Press Release
On Friday, U.S. District Judge Todd W. Robinson granted a request from the U.S. Department of Justice and the U.S. Attorney’s Office for the Southern District of California for authority to liquidate approximately $56 million in fraud proceeds seized from the self-described “number one promoter” of BitConnect, a cryptocurrency, who consented to the seizure. This liquidation is the largest single recovery of a cryptocurrency fraud by the United States to date.
According to court documents, on Sept. 1, Glenn Arcaro, 44, of Los Angeles, pleaded guilty to participating in a massive conspiracy to defraud BitConnect investors in the United States and abroad, in which investors were fraudulently induced to invest over $2 billion. The BitConnect scheme is the largest cryptocurrency fraud scheme ever charged criminally.
With entry of the court’s interlocutory sale order, the government will begin the process of seeking to make whole victims of the BitConnect scheme by selling the cryptocurrency and holding the proceeds in U.S. dollars. The government will maintain custody of the seized proceeds in cryptocurrency wallets and intends to use these funds to provide restitution to the victims pursuant to a future restitution order by the court at sentencing.
All potential victims of the BitConnect scheme are encouraged to visit https://www.justice.gov/usao-sdca/us-v-glenn-arcaro-21cr02542-twr for information on rights they may possess as a victim, the opportunity to submit a victim impact statement, and to identify themselves as a potential victim.
Arcaro is scheduled to be sentenced on Jan. 7, 2022, and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and IRS-Criminal Investigation are investigating the case. The U.S. Postal Inspection Service is assisting with the liquidation of the cryptocurrency proceeds.
Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Daniel Silva, Mark W. Pletcher, Carl Brooker, and Lisa Sanniti of the Southern District of California are prosecuting the case. The Department of Justice’s Office of International Affairs provided indispensable assistance to the investigation.
15 November 2021
Zachary A. Myers Sworn in as the U.S. Attorney for the Southern District of IndianaRead the Press Release
INDIANAPOLIS – Today, United States District Court Chief Judge Tanya Walton Pratt swore Zachary A. Myers in as the United States Attorney for the Southern District of Indiana. President Joseph R. Biden nominated the veteran federal prosecutor to serve as U.S. Attorney and he was unanimously confirmed by the U.S. Senate.
“Every day, the dedicated professionals in this U.S. Attorney’s Office work tirelessly to enforce the law and defend the interests of the United States according to the law. I look forward to leading this outstanding team. I will work closely with our federal, state, and local partners to hold offenders accountable and to ensure fair and impartial administration of justice for all Americans. It is an honor and a privilege to serve the people of the Southern District of Indiana and of the United States,” said U.S. Attorney Zachary A. Myers.
As the chief federal law enforcement officer in the district, U.S. Attorney Myers will lead an office of approximately 42 Assistant U.S. Attorneys and 46 support professionals in the office’s criminal prosecutions, civil litigation, and to promote public safety throughout the Southern District of Indiana.
Prior to being sworn in as the new U.S. Attorney, Mr. Myers served as an Assistant United States Attorney for the District of Maryland, where he served since 2014. He worked in the Baltimore Division’s Major Crimes Unit and most recently in the District of Maryland’s National Security and Cybercrime Section, serving as the first Cybercrime Counsel for the District.
From 2011 through 2014, Mr. Myers served as an Assistant United States Attorney for the Southern District of Indiana, where he worked in the General Crimes Unit. He has led investigations, prosecutions, and appeals of a wide variety of federal offenses, with a focus on technology-facilitated crime, including cybercrimes, national security offenses, child exploitation, fraud, public corruption, violent crimes, and sex trafficking.
Prior to joining the U.S. Attorney’s Office, Mr. Myers was an attorney at an Indianapolis law firm. He was also a Legislative Correspondent in the Office of Congresswoman Julia M. Carson.
Mr. Myers grew up in Indianapolis. He earned his J.D. from the Georgetown University Law Center in 2008, his M.A. from the George Washington University in 2005, and his B.A. from Stanford University in 2003.
Woodlands pain doctor pays half million dollars for fraudulent PPP and billing allegationsRead the Press Release
HOUSTON - A 49-year-old local physician has agreed to pay $523,331 to settle allegations he submitted false claims for the placement of electro-acupuncture devices and for making false statements when applying for a loan from the Paycheck Protection Program (PPP), announced Acting U.S. Attorney Jennifer B. Lowery.
Dr. Emad Bishai is an anesthesiologist and pain management physician who practices in The Woodlands. Woodlands Pain Institute PLLC is his primary practice entity.
From July 12, 2017, to May 10, 2019, Bishai billed the Medicare and TRICARE programs for the surgical implantation of neurostimulator electrodes. These are invasive procedures usually requiring use of an operating room for which Medicare pays thousands of dollars. Neither Bishai nor his staff performed this surgical procedure. Instead, patients received devices used for electro-acupuncture. This only involved inserting needles into patients’ ears with the neurostimulator taped behind them with an adhesive.
In addition to the financial settlement, Bishai and Woodlands Pain Institute PLLC have agreed to a seven-year-period of exclusion from participation in any federal health care programs.
To date, the Southern District of Texas has resolved five similar cases, which included settlements from a Katy anesthesiologist, a Houston pain doctor, a Rockport chiropractor, a Houston chiropractor, and a Laredo pain doctor.
In addition to his false medical claims, Bishai allegedly made false statements when submitting an application to the PPP program in May 2020 on behalf of Woodlands Pain Institute PLLC. Specifically, the application included a question whether the applicant (or any individual owning more than 20% equity) is subject to an indictment, criminal information, arraignment or other means by which formal criminal charges are brought in any jurisdiction.
Bishai is 100% owner of Woodlands Pain Institute PLLC. When filling out the application, he falsely checked the box marked “No” and initialed his name beneath the question. However, at the time of the application, Bishai was facing criminal charges in Montgomery County arising from his practice of prescribing opioid medicines. As a result of his fraudulent application, Bishai received a loan to which he was not entitled.
The Department of Health and Human Services – Office of Inspector General and Defense Criminal Investigation Service conducted the investigation with the assistance of Qlarant, the Unified Program Integrity Contractor for Medicare. Assistant U.S. Attorney Brad Gray handled the matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Virgin Islands Woman Convicted by Jury in Tax Fraud Scheme Sentenced to 45 Months of Incarceration, Ordered to Pay Restitution to I.R.S.Read the Press Release
St. Croix, VI – United States Attorney Gretchen C.F. Shappert announced that Jacinta Gussie, age 59 of St. Croix, Virgin Islands, was sentenced on November 12, 2021 by Federal District Court Judge Wilma A. Lewis to 3.75 years in prison for her part in a complex tax fraud scheme. Gussie must also serve a period of three years of supervised release and was ordered to pay $44, 561.11 in restitution to the Internal Revenue Service. Gussie was found guilty by a federal jury on June 15, 2021 after a six-day trial of Conspiracy to Defraud the United States; four counts of Theft of Government Money; and two counts of Aggravated Identity Theft.
According to court documents and evidence presented at the trial, from January 2011 to July 2012, Jacinta Gussie and others participated in a scheme to steal money from the United States Treasury by fraudulently obtaining federal income tax refunds. The scheme involved the acquisition of personal identifying information of Virgin Islanders (i.e. name, social security number, and date of birth) used to electronically file falsified tax returns with a designation of refunds to the acquired bank accounts or debit cards. Defendant and her co-conspirators withdrew the deposited refunds. They subsequently spent the funds, using a debit card, or transferred the funds to other accounts, all for personal use. As a result of the scheme, approximately $44,561.11 of falsely-claimed returns were deposited into Gussie’s bank accounts. By means of the scheme, the defendants obtained over $400,000 in illegal tax refunds. The defendants also claimed additional refunds totaling in excess of $100,000 that were not paid.Of ten defendants charged in the tax fraud scheme, Gussie was the tenth defendant to be convicted. Nine others entered guilty pleas, six of whom have been sentenced. Remaining defendants Thema Liverpool, Nicolette Alexander and Lynell Hughes are pending sentencing.
The case is the culmination of years of investigative work by the Internal Revenue Service, Criminal Investigations, which conducted a probe into a massive stolen identity refund fraud scheme perpetrated in the Virgin Islands and elsewhere.
The case was investigated by the Internal Revenue Service, Criminal Investigations, and is being prosecuted by Assistant U.S. Attorney Melissa P. Ortiz.
Union County Man Admits Bribing Mail Carriers to Steal Credit CardsRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man today admitted his role in a scheme to bribe postal employees to steal credit cards from the mail, Acting U.S. Attorney Rachael A. Honig announced.
Syid Boyd, 26, of Union, New Jersey, pleaded guilty by videoconference before U.S. District Judge Stanley R. Chesler to a two-count Information charging him with bribery of U.S. Postal Service (USPS) employees and credit card fraud.
According to documents filed in this case and statements made in court:
Boyd recruited USPS employees to steal credit cards from the mail in exchange for cash bribes. Once Boyd had taken possession of the stolen credit cards and activated them by posing as the actual accountholders to whom the cards were originally mailed, he and others fraudulently used the stolen credit cards to purchase items, including electronics, at various retail stores throughout New Jersey.
Boyd faces a maximum term of imprisonment of 15 years for the bribery charge and 10 years for the credit card fraud charge. Each charge also carries a maximum fine of $250,000, in part.
Acting U.S. Attorney Honig credited the postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero, and special agents with the USPS-Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, with the investigation leading to today’s guilty plea.
The government is represented by Jihee G. Suh, Deputy Chief of the Special Prosecutions Division in Newark.
Defense counsel: Brooke M. Barnett, Esq.
Two Mexican Natives Sentenced for Conspiracy to Distribute Methamphetamine and Heroin in the Central ValleyRead the Press Release
RESNO, Calif. — Antonio Valencia-Hernandez, 65, and Jose Reyes-Pineda, 48, natives and citizens of Mexico, were sentenced today to 12 years and three months and one and a half years in prison, respectively, for conspiring to distribute methamphetamine and heroin, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Valencia, Reyes, and co-defendants, Antonio Castellanos, 38, of Whittier, and Genaro Serrato-Calles, 49, a native and citizen of Mexico, have pleaded guilty to a two-year conspiracy to distribute methamphetamine and heroin in the Central Valley. Serrato had Valencia pick up about 11 pounds of methamphetamine from Reyes in Anaheim for distribution in Modesto. In addition, Valencia distributed a half-pound of heroin and a pound of methamphetamine during seven undercover transactions in Stanislaus and San Joaquin Counties.
Serrato is scheduled for sentencing on Dec. 13, 2021, and Castellanos is scheduled for sentencing on Jan. 18, 2022. Serrato and Castellanos face a maximum statutory penalty of life in prison, a statutory mandatory minimum prison term of 10 years, and a $10 million fine. The actual sentences, however, will 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.
This case is the product of an investigation by the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; Homeland Security Investigations; the Central Valley High Intensity Drug Trafficking Area (HIDTA) Task Force; the San Joaquin County Metropolitan Narcotics Task Force; the Stanislaus Drug Enforcement Agency; and the Orange County Sheriff’s Special Investigations Bureau. Assistant U.S. Attorney Karen Escobar with assistance from Assistant U.S. Attorney Melanie Alsworth.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Two L.A.-Area Men Found Guilty of Federal Charges for Collecting Ransom Proceeds for Cross-Border Kidnapping ConspiracyRead the Press Release
LOS ANGELES – A federal jury today found two Los Angeles-area men guilty of collecting ransom payments for a criminal conspiracy in which multiple victims were kidnapped near the United States-Mexico border.
Edgar Adrian Hernandez Lemus, 23, of the Central-Alameda neighborhood in Los Angeles, was found guilty of one count of conspiracy and two counts of receiving money from a ransom demand for the release of a kidnapped person. Junior Almendarez Martinez, 23, of Watts, was found guilty of two counts of receiving money from a ransom demand for the release of a kidnapped person.
According to evidence presented at their three-day trial, the kidnapping incidents targeted victims who either were waiting or attempting to cross the border from Mexico into the United States. In each incident, the kidnappers offered to assist in smuggling the victims across the border from Mexico, but instead would hold them for ransom. The kidnappers insisted on ransom payments from the victim’s family members to release the victims.
From March 29 to June 1, 2021, the kidnappers used specific sections at Walmart and other stores in Southern California to meet with the family members to collect the ransom payments. After the payments were made, however, the kidnappers demanded additional money rather than releasing the victims.
Lemus and Almendarez traveled to these stores to pick up ransom payments from the family members of the kidnapped victims. During many of the ransom pickups, the family members of the kidnapped victims remained on the phone with members of the conspiracy who would direct them towards Lemus – who was often on the phone during the ransom pickups. At these stores, Lemus and Almendarez would enter and collect, or attempt to collect, ransom payments from kidnapped victims’ family members. The ransom payments picked up by defendants ranged from $12,000 to $30,000 in cash.
After the ransom pickups, Lemus and Almendarez would use Uber to transport the money, before eventually sending money to co-conspirators in Mexico via MoneyGram. The victims later were assaulted, drugged and released.
United States District Judge John F. Walter has scheduled a January 10, 2022 sentencing hearing, at which time Lemus will face a statutory maximum sentence of 11 years in federal prison and Almendarez will face a statutory maximum sentence of eight years in federal prison.
A co-defendant and fellow ransom collector, Francisco Javier Hernandez Martinez, 21, of the Central-Alameda neighborhood in Los Angeles, pleaded guilty on September 7 to one count of conspiracy. He faces a statutory maximum sentence of five years in federal prison at his sentencing hearing, which is scheduled for November 29.
The FBI investigated this matter. The South Gate Police Department and the Santa Barbara County Sheriff’s Office provided substantial assistance.
Assistant United States Attorneys Jeffrey M. Chemerinsky and Joseph D. Axelrad of the Violent and Organized Crime Section are prosecuting this case.
Three Charged with Mailing Fraudulent Prize NoticesRead the Press Release
The U.S. District Court for the Eastern District of New York unsealed an indictment today charging a New York man, a Florida man and a Canadian national with running a fraudulent mass-mailing scheme that tricked consumers, many of whom were elderly and vulnerable, into paying fees for falsely promised cash prizes.
The indictment charges Shawn Phillips, 52, of British Columbia, Canada; Jeffrey Novis, 79, of Long Island, New York; and Phillip Priolo, 58, of Hallandale Beach, Florida, with conspiracy to commit mail fraud and wire fraud, and multiple counts of mail fraud and wire fraud.
“Elder fraud schemes present a serious threat to the financial security and the well-being of America’s seniors,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice will continue to pursue and prosecute the perpetrators of these schemes.”
The indictment alleges that, from June 2013 to November 2016, Shawn Phillips ran a mail fraud scheme that mailed hundreds of thousands of prize notices that falsely claimed that victims were specially chosen to receive a large cash prize and would receive the prize if they paid a fee, ranging from approximately $20 to $40. Victims who paid the requested fee, however, did not receive the promised cash prize. Although the notices appeared to be personalized correspondence, they were, in fact, mass-produced, boilerplate documents that were bulk mailed to recipients whose names and addresses were on mailing lists. The indictment alleges that in 2016, Jeffrey Novis opened bank accounts for the purpose of depositing checks mailed by the victims of this scheme, and transmitting the funds to Phillips. The indictment further alleges that from 2013 through 2016, victims paid more than $10.8 million in response to these fraudulent prize notices.
The indictment further alleges that from March 2015 through December 2016, Jeffrey Novis and Phillip Priolo owned and controlled a similar mail-fraud scheme that mailed hundreds of thousands of the same type of fraudulent prize notices. The indictment alleges that during that time, victims paid more than $2.2 million in response to these fraudulent prize notices.
The scheme operated by Novis and Priolo used infrastructure shared by the Phillips scheme. All three defendants conspired with Sean Novis and Gary Denkberg, the operators of a direct-mail operation based out of Long Island, New York, to facilitate the printing, mailing and data-management for their mail-fraud schemes. Sean Novis and Denkberg have previously been indicted for their role in aiding and abetting these mail-fraud schemes.
“The defendants in this case allegedly operated a mass-mailing scheme that targeted older Americans — a trend Postal Inspectors unfortunately see on a regular basis,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service Criminal Investigations Group. “Today’s action should serve as a reminder that Postal Inspectors have a long history of protecting consumers, and will always be ready to bring individuals to justice for their crimes against the American public.”
Novis made his initial court appearance Nov. 9 before U.S. Magistrate Judge Steven L. Tiscione of the U.S. District Court for the Eastern District of New York. Priolo made his initial court appearance Nov. 9 before U.S. Magistrate Judge Lurana S. Snow of the U.S. District Court for the Southern District of Florida. If convicted, each charge carries a statutory maximum sentence of twenty years in prison along with a statutory maximum fine of $250,000 or twice the gross gain or gross loss from the offense. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The government is represented by Trial Attorneys Bart Dunn and Ann Entwistle the Civil Division’s Consumer Protection Branch. The U.S. Postal Inspection Service Criminal Investigations Group provided investigative support.
The department’s extensive and broad-based efforts to combat elder fraud seeks to halt the widespread losses seniors suffer from fraud schemes. The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. Eastern time. English, Spanish and other languages are available.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
St. Thomas Man Pleads Guilty to Conspiracy to Rob a St. Thomas Jewelry StoreRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert announced today that Jamari S. Benjamin, a resident of St. Thomas, appeared before United States Magistrate Judge Ruth Miller in the District Court and entered a guilty plea to the charge of conspiracy to rob the Gems and Gold Corner jewelry store located in St. Thomas, V.I. He faces up to twenty years in federal prison. The sentencing date will be set by the Court.
According to Court documents, on Saturday, September 19, 2020, a white Suzuki Vitara arrived in the area of Gems & Gold Corner jewelry store located on the waterfront near Veteran’s Drive, St. Thomas, Virgin Islands. Benjamin was the driver of the white Suzuki Vitara. Two men wearing masks, exited the white Suzuki Vitara with firearms and entered the Gems & Gold Corner jewelry store. The two masked men brandished the firearms and threatened the jewelry store employees and others. One of the masked men physically assaulted a jewelry store employee using the firearm, striking the employee’s head. The two masked men broke the jewelry showcases and took jewelry from the store. They then retreated from the jewelry store, got back into the white Suzuki Vitara, and were driven away from the area by Benjamin.
This case is being investigated by the Federal Bureau of Investigation and the Virgin Islands Police Department. It is being prosecuted by Assistant United States Attorney Juan A. Albino.
This case is part of the Department of Justice’s Project Safe Neighborhood Initiative. Project Safe Neighborhood is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. For more information on the Department of Justice’s Project Safe Neighborhoods, please see: https://www.justice.gov/psn.
Santa Clarita Man Sentenced to More Than 4 Years in Prison for Scheming to Fraudulently Obtain $1.8 Million in COVID-Relief FundsRead the Press Release
LOS ANGELES – A Santa Clarita Valley man was sentenced today to 51 months in federal prison for scheming to fraudulently obtain approximately $1.8 million in COVID-19 relief guaranteed by the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP).
Hassan Kanyike, 30, of Santa Clarita, was sentenced by United States District Judge Virginia A. Phillips, who also ordered him to pay a $20,000 fine and $1,302,550 in restitution to the SBA and four victim lenders. Kanyike pleaded guilty on March 29 to one count of wire fraud.
From April 2020 to June 2020, Kanyike submitted six fraudulent PPP loan applications and two fraudulent EIDL applications. The applications sought funds to purportedly pay the salaries of employees whom he claimed worked for two of his businesses. Kanyike successfully obtained approximately $1 million through four PPP loans, and another $300,000 through two EIDL loans.
In support of the fraudulent PPP loan applications, Kanyike submitted fake federal tax filings and payroll reports for a used-car business, the Van Nuys-based Falcon Motors. For example, in one loan application, Kanyike falsely claimed the business had 26 employees and an average monthly payroll of $168,000, and he submitted a fabricated IRS tax form claiming Falcon Motors had paid $2,022,300 to employees in 2019.
In reality, Falcon Motors had no employees on payroll. Kanyike further admitted that he obtained additional Employer Identification Numbers from the IRS in April and May 2020 so he could apply for multiple loans for the same used-car business. Kanyike then used a substantial portion of the PPP loan proceeds for his own personal benefit.
Kanyike schemed to fraudulently obtain eight loans totaling approximately $1.8 million, of which six loans worth a total of $1,302,550 were approved.
At the time of his arrest in December 2020, Kanyike had transferred approximately $762,000 to Uganda, his country of citizenship, from one of the business accounts that had received the loan proceeds, in violation of the terms of the PPP and EIDL program.
Homeland Security Investigations and the Treasury Inspector General for Tax Administration investigated the case.
Assistant United States Attorney Richard E. Robinson of the Major Frauds Section and Assistant Chief William Johnston of the Criminal Division’s Fraud Section at the Department of Justice prosecuted this case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
San Marcos Man Charged Federally with Austin Synagogue ArsonRead the Press Release
AUSTIN – A federal complaint was unsealed charging Franklin Barrett Sechriest, 18, of San Marcos, with arson in connection with the fire intentionally set at the Congregation Beth Israel synagogue in Austin on October 31, 2021. Sechriest had an initial appearance in federal court today in Austin on the complaint.
According to court documents, on October 31, 2021, Sechriest allegedly set the fire at the synagogue, which caused several thousand dollars in damage. Earlier, on October 28, 2021, Sechriest’s vehicle was identified on security footage at the synagogue.
“Arson at a sacred place of worship shakes the very foundations of our society,” said U.S. Attorney Ashley C. Hoff. “This Office strongly condemns the intentional act of violence alleged in the complaint and will vigorously prosecute this type of conduct to the fullest extent possible. I commend the Austin Fire Department, the FBI and our other law enforcement partners for their outstanding investigative work.”
“I would like to thank the Austin Fire Department for their partnership with the FBI’s Joint Terrorism Task Force in Austin, Texas,” said FBI Special Agent in Charge Christopher Combs. “Our dedicated partnership, in this investigation and many others, serves as an innovative and effective model to ensure the protection of our communities and critical infrastructure throughout the United States.”
If convicted of the charge alleged in the complaint, Sechriest faces a maximum penalty of 20 years in prison.
Sechriest is scheduled for a preliminary examination and detention hearing on November 17 at 10:30 a.m. He remains in federal custody since his arrest on November 12, 2021.
Assistant U.S. Attorney Matthew Devlin is prosecuting the case. The FBI and Austin Fire Department are investigating the case.
A criminal complaint is merely an allegation and the defendant is presumed innocent until proven guilty in a court of law.
###
Rochester Man Going to Prison for 30 Years for Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Jeremy Hernandez, 30, of Rochester, NY, who was convicted of producing child pornography, was sentenced to 30 years in prison and 15 years of supervised release by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that in September and October 2018, the National Center for Missing and Exploited Children received information from Tumblr, an electronic service provider, that a user had uploaded several images of child pornography to a blog on Tumblr’s platform. The information was forwarded to investigators at the New York State Police who identified the defendant as the source.
On October 24, 2019, investigators seized several digital devices, including two cell phones, belonging to Hernandez. A forensic analysis uncovered images and videos on the cell phones, which depicted the defendant sexually abusing an 11- to 12-year-old minor on multiple occasions between 2017 and 2019.
The sentencing is the result of an investigation by the National Center for Missing and Exploited Children; the New York State Police Internet Crimes Against Children Taskforce, under the direction of Major Barry Chase; Monroe County Child Protective Services, under the direction of Commissioner Thalia Wright; the Bivona Child Advocacy Center, under the direction of Executive Director Deb Rosen; and Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino.
# # # #
Raleigh Real Estate Developer Sentenced to Decade in Prison for Real Estate Ponzi Scheme and Firearm Possession ChargesRead the Press Release
RALEIGH, N.C. – A Raleigh man was sentenced today to ten years in prison on charges of Wire Fraud, in violation of Title 18, United States Code, Section 1343, and Possession of a Firearm by a Felon, in violation of Title 18, United States Code, Section 922(g). The defendant was also ordered to serve three years of supervised release and to pay restitution to victims in the total amount of $1,771,382.25.
According to court documents and arguments made in court today, Joshua Matthew Houchins, 36, owner of various Raleigh real estate development companies, carried out a Ponzi scheme upon numerous local real estate investors. Houchins also possessed a rifle and several rounds of ammunition after having been convicted of a felony.
According to the superseding indictment, between 2014 and 2018, Houchins owned and operated Rossshire Development LLC, Greenstone Ventures LLC, and Modern South Development LLC, and used these entities to carry out a fraud upon his real estate development investors. Specifically, Houchins solicited investment monies by telling victims that their money would be “put to work” on a specific property, and further represented that the investments would be secured by deeds of trust filed with the county register of deeds. In fact, Houchins did not put all of the investor funds to work on the property on which the investor was solicited to invest, and instead, regularly used investor funds on other properties, or on personal expenses. Likewise, the investor promissory notes were not secured by a deed of trust as promised. In some instances, Houchins did not even own the property that was the subject of the investment, and, as such, could not truthfully grant a deed of trust to the investor.
The indictment alleges that after Houchins diverted investor money away from the property on which the funds were supposed to be spent, Houchins failed to develop and sell the properties, as he represented he would. Houchins then defaulted on the notes by failing to pay investors their promised returns. The investors were unable to foreclose upon the investment properties because Houchins had not secured the promissory notes with a deed of trust filed, thereby resulting in losses to the investors. Houchins specifically pled guilty to Count Nine, which alleged one instance of the above-described fraud on January 6, 2017. As a part of the plea, Houchins agreed to make restitution to all victims for losses arising from the scheme and related schemes.
According to the second part of the superseding indictment, the grand jury began to investigate Houchins in 2018 concerning the aforementioned offenses. Following the issuance of subpoenas to his attorney and to his various real estate companies, Houchins only produced a small number of documents to the grand jury. Instead, the indictment alleges that Houchins admitted in February 2020 letter that he had “destroyed all of the evidence.”
The superseding indictment also alleges that Houchins, who had recently separated from his wife, began to send her harassing messages. The indictment alleges that Houchins’ wife obtained a Domestic Violence Order of Protection (DVPO) barring Houchins from contacting, threatening, or harassing his wife. While Houchins was already prohibited from possessing a firearm due to his status as a convicted felon, the DVPO further prohibited Houchins from possessing a firearm.
The superseding indictment then alleges that in March of 2020, Houchins communicated to friends of his wife that she had, “run to the police” and that Houchins has “no mercy on a lying rat.” Around one month later, the superseding indictment alleges that Houchins sent threatening communications to friends and family of his wife, including photographs of Houchins wearing a mask and tactical vest.
The superseding indictment then charges that, following his internet searches for “killing your wife over love,” Houchins was arrested. At the time of his arrest, Houchins was in possession of a Ruger AR-15, 4 magazines, a double canister magazine containing 100 rounds of ammunition, two boxes of .223 caliber ammunition, and a tactical vest. Houchins pled guilty to Count Fourteen, which alleged that he possessed the Ruger AR-15 despite being a convicted felon.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. The Federal Bureau of Investigation and the North Carolina Secretary of State investigated the case. The Wake County Sheriff’s Office, Apex Police Department, and Sanford Police Department also provided assistance. Assistant U.S. Attorney William M. Gilmore served as the prosecutor.
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).
Previously Convicted Felon Who Shot Another Individual Sentenced to 84 Months in PrisonRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced today to 84 months in prison for illegally possessing a firearm and ammunition in connection with an incident in which he shot another individual in Jersey City, Acting U.S. Attorney Rachael A. Honig announced.
Hassan Mosby, 40, of Jersey City, previously pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an indictment charging him with one count of possession of a firearm and ammunition by a convicted felon. Judge Wigenton imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
On Oct. 12, 2019, members of the Jersey City Police Department were dispatched to the area of Martin Luther King Drive between Woodlawn Avenue and Armstrong Avenue in Jersey City on a report of shots fired in the area.
Officers located a crime scene which included six 9-millimeter shell casings. While the officers were canvassing the area and processing the crime scene, they reviewed video footage from city cameras located near the shooting. The video showed a brief altercation within a group of males on the sidewalk on Martin Luther King Drive. At the end of the altercation, Mosby pointed and fired a handgun several times at a victim, striking the victim.
By viewing additional video footage from other city cameras, officers were able to determine that Mosby walked directly to a nearby residence immediately after the shooting. Officers went to the residence and were let inside by a resident, where they observed Mosby sitting in a chair. Mosby stated, “You got me, I’m who you are looking for. They had nothing to do with it.” Mosby was arrested and a search warrant was obtained for the residence. Officers then found a 9-millimeter semiautomatic handgun, which was loaded with seven rounds of ammunition.
Subsequent ballistics testing determined that five shell casings found at the crime scene were discharged from the firearm found in the residence.
In addition to the prison term, Judge Wigenton sentenced Mosby to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, under the direction of Special Agent in Charge Jeffrey L. Matthews, and the Jersey City Police Department, under the direction of Public Safety Director James Shea, with the investigation leading to today’s sentencing.
The government is represented by Special Assistant U.S. Attorney Stacey E. Zyriek Enriquez of the U.S. Attorney’s Office in Newark.
Defense counsel: Lorraine Gauli-Rufo Esq., Verona, New Jersey
Postal Worker Indicted for Delay or Destruction of MailRead the Press Release
NEW ORLEANS, LOUISIANA – SIERRA HUDSON, age 34, a resident of New Orleans, Louisiana, was charged on November 12, 2021 in a one count indictment for delay or destruction of mail.
According to court documents, HUDSON was employed by the United States Postal Service as a Letter Carrier and was assigned to work at the Central Carrier Station, New Orleans, LA. The indictment alleges that from on or about May 2020 through July 2020, HUDSON secreted, destroyed, detained, and delayed approximately 640 First Class postcards and 573 pieces of political mail that were recovered from a residential trash can. According to court documents, HUDSON also unlawfully secreted, detained, and delayed approximately two First Class letters, 535 advertising flyers, and 20 nonprofit small parcels in the trunk of her personal vehicle.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, the defendant faces a maximum penalty of up to five (5) years imprisonment, up to three (3) years of supervised release, up to a $250,000 fine, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the U.S. Postal Service Office of Inspector General in investigating this matter. Assistant U.S. Attorney Rachal Cassagne is in charge of the prosecution.
###
Pittsburgh Man Sentenced to 15 Years in Federal Prison for Producing Child PornographyRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 15 years’ incarceration, to be served consecutively to a sentence of 10 to 20 years’ incarceration imposed in the Allegheny County Court of Common Pleas, followed by 10 years’ supervised release on his conviction of production and attempted production of material depicting the sexual exploitation of a minor, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge William S. Stickman, IV imposed the sentence on Matthew Joseph Gourley, age 49, of Pittsburgh, Pennsylvania.
According to information presented to the court, on January 6, 2020, Gourley forced Minor A, a minor female victim, to engage in sexually explicit conduct for the purpose of producing a visual depiction, namely, a digital image and a video, depicting Minor A engaging in sexually explicit content. Gourley’s conduct was discovered by law enforcement during an online undercover operation.
Prior to imposing sentence, Judge Stickman stated “there is no room to debate the seriousness” of Gourley’s crime, calling Gourley’s documentation of his sexual abuse of Minor A “heinous, inexcusable, abhorrent.”
Assistant United States Attorney Heidi M. Grogan prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the FBI Pittsburgh Child Exploitation and Human Trafficking Task Force, including the Federal Bureau of Investigation and the Allegheny County Police Department, for the investigation leading to the successful prosecution of Gourley.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.Pharmacist to pay $275,000 to settle claims related to the alleged unlawful dispensation of controlled substancesRead the Press Release
SAVANNAH, GA: The former owner of a Bryan County pharmacy has agreed to settle claims that he and his pharmacy unlawfully dispensed controlled substances despite the presence of red flags indicating that the prescriptions, written by a convicted pill-mill doctor, were not issued for legitimate medical reasons.
Willie C. “Billy” Conley, Jr., 68, of Pembroke, Ga., the former owner of a Bryan County pharmacy and its former pharmacist-in-charge, will pay $275,000 to resolve allegations by the United States and the State of Georgia, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The civil settlement is the largest paid by an individual pharmacist for the alleged unlawful dispensation of controlled substances that has been obtained to date by the U.S. Attorney’s Office for the Southern District of Georgia.
“Pharmacists that ignore their obligation to scrutinize suspicious controlled substances prescriptions despite the presence of red flags can expect to be held to account,” said Acting U.S. Attorney Estes. “Pill-mill doctors cannot thrive without pharmacists willing to fill their unlawful prescriptions. We will use every tool at our disposal to battle the opioid epidemic at each level of the supply chain.”
The allegations against Conley relate to prescriptions written by Dr. Frank Bynes Jr., who in February 2020 was convicted and sentenced to 240 months’ imprisonment on numerous counts of health care fraud and unlawfully dispensing controlled substances. The settlement resolves allegations that Conley and his pharmacy violated their corresponding responsibility to fill only legitimate prescriptions and that they submitted false claims to Medicare and Medicaid for a highly dangerous combination of controlled substances, called the “holy trinity,” consisting of overlapping opioid, benzodiazepine, and carisoprodol frequently prescribed by Dr. Bynes.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
“Filling medically unnecessary controlled substance prescriptions harms Georgia citizens and the Georgia Medicaid program and is wrong,” said Georgia Attorney General Chris Carr. “We will continue to work diligently to hold accountable those that harm our state and will use all available resources, including the Georgia False Medicaid Claims Act, to remedy this harm and safeguard our communities.”
The case was investigated by the Savannah Resident Office of the Drug Enforcement Administration, and the U.S. Department of Health and Human Services, Office of Inspector General. The State of Georgia was represented by Assistant Attorney General Sara Vann. The United States was represented by Assistant U.S. Attorneys Bradford C. Patrick and Patrick J. Schwedler.
Pascoag Man Admits to Possessing and Distributing Child PornographyRead the Press Release
PROVIDENCE, R.I. – A Pascoag man arrested twice on child pornography charges faces between five and twenty years in federal prison when he is sentenced in February 2022, having pleaded guilty today to charges of distribution and possession of child pornography, announced Acting United States Attorney Richard B. Myrus.
According to court documents and information presented to the court, in November 2018, Homeland Security Investigations (HSI) agents developed information that an IP address in Rhode Island was being used to post child pornography on an Internet messaging and networking application. On November 20, 2018, HSI agents discovered at least 19 videos depicting child pornography posted by the same user at the Pascoag residence, later identified as Jacob S. Munroe, 23.
On June 5, 2019, while executing a court-authorized search of Munroe’s residence, images and videos depicting child pornography were observed on Munroe’s cell phone. Munroe was arrested and released on unsecured bond. In an unrelated investigation, on November 4, 2020, while awaiting trial on charges related to his November 2018 arrest, Munroe was arrested by Rhode Island State Police when it was determined that on August 24, 2020, he downloaded images depicting child pornography.
Appearing today before U.S. District Court Chief Judge John J. McConnell, Jr., Munroe pleaded guilty to one count of distribution of child pornography and two counts of possession of child pornography. He is scheduled to be sentenced on February 22, 2022.
Distribution of child pornography is punishable by a statutory penalty of up to 20 years in federal prison, with a minimum mandatory term of incarceration of 5 years. Possession of child pornography is punishable by a term of incarceration of up to 20 years.
The case is being prosecuted by Assistant U.S. Attorney Terrence P Donnelly.
###
Pasadena Man Who Cyberstalked and Made Threats to Injure, Rape and Kill Sentenced to More Than 3 Years in Federal PrisonRead the Press Release
LOS ANGELES – A British national was sentenced today to 37 months in federal prison for making a series of graphic online threats to harm, rape and kill.
Samuel Trelawney Hughes, 33, of Pasadena, was sentenced by United States District Judge Dale S. Fischer, who described his conduct as “horrendous.” Hughes pleaded guilty in October 2020 to one count of stalking, one count of witness tampering and one count of making threats by interstate communication.
From May 2019 to June 2020, Hughes stalked and sent anonymous threatening communications to multiple victims, according to court documents. For example, in October 2019, after one victim reported prior threats from Hughes to law enforcement authorities, Hughes sent the victim an email stating in part: “someone I can guarantee will come out and first bash you[r] head in, rape you slash your throat and burn your car and house.”
Hughes’ conduct often followed a pattern. He would meet a victim – usually a woman – at a networking event or through his employment. After the event or after having been employed for a period, he would communicate with the victim from an email or social media account, seeking further social interaction with the victim or inviting the victim to meet him at a future date in a one-on-one setting. When the victim would not reciprocate [Hughes’] desire for further social interaction and would indicate that she or he no longer wished to interact with him, he would then send anonymous threats to the victim, often from anonymous online accounts he used and created to disguise his identity.
He sent the threatening communications via numerous email and social media accounts, as well as through the U.S. mail. The messages sent to the victims were direct, graphic and disturbing in nature, and they contained threats to injure, rape and kill victims.
After being contacted by both federal and state law enforcement officers on multiple occasions regarding the threatening communications, Hughes continued to send electronic communications and letters threatening to injure, rape and kill victims who had reported his threats to law enforcement. In his communications to some victims, Hughes threatened that contacting the police would lead to the injury or death of the victim or the victims’ family members.
“[Hughes] used his computer skills to terrorize these victims and their families with harassment and death threats from anonymized accounts,” prosecutors argued in a sentencing memorandum. “His use of anonymizing techniques and planning allowed him to avoid identification – and punishment – for months while he continued his online harassment campaigns. [Hughes’] conduct traumatized the victims, putting many in fear for their lives and the lives of family members. Some feared going to work or even leaving their homes.”
The FBI investigated this matter.
Assistant United States Attorney Lauren Restrepo of the Cyber and Intellectual Property Crime Section prosecuted this case.
Panamanian Intermediary in Alleged Bribery Scheme Charged with Money Laundering Extradited to the United States from GuatemalaRead the Press Release
Luis Enrique Martinelli Linares (Luis Martinelli Linares), 39, a citizen of Panama and Italy, was extradited from Guatemala to the United States today to face an indictment filed in federal court in Brooklyn charging him and his brother, Ricardo Alberto Martinelli Linares (Ricardo Martinelli Linares), 42, a citizen of Panama and Italy, with money laundering offenses in connection with a massive bribery and money laundering scheme involving Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate. He is scheduled to make his initial appearance tomorrow before U.S. Magistrate Judge Marcia M. Henry of the U.S. District Court for the Eastern District of New York.
According to court filings, the scheme involved the payment of more than $700 million in bribes to government officials, public servants, political parties, and others in Panama and other countries around the world to obtain and retain business for the company. On Dec. 21, 2016, Odebrecht pleaded guilty in the Eastern District of New York to a criminal information charging it with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) for its involvement in the bribery and money laundering scheme.
“The successful extradition of Luis Martinelli Linares demonstrates the department’s commitment to work with our international partners to pursue, capture and extradite those who use the U.S. financial system to further their corrupt schemes and launder illicit funds,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Thanks to the efforts of our law enforcement partners in Guatemala, Luis Martinelli Linares will be held accountable in the United States for his alleged crimes.”
“The extradition of Luis Martinelli Linares to the Eastern District of New York is a significant first step in holding him accountable for allegedly laundering millions of dollars in bribe payments through bank accounts in New York and elsewhere,” stated U.S. Attorney Breon Peace for the Eastern District of New York. “Combatting bribery and money laundering by extraditing and prosecuting corrupt foreign actors like Martinelli is a priority of the Department of Justice.”
“Anyone who facilitates bribe payments to government officials contributes to national security risks, whether overtly or inadvertently, and interrupts the free market system of international trade,” said FBI Assistant Director in Charge Michael J. Driscoll. “The FBI will use all available resources to put an end to this type of corrupt behavior.”
Luis Martinelli Linares and Ricardo Martinelli Linares are alleged in the indictment and other court filings to have conspired with others to launder approximately $28 million in bribe payments made by and at the direction of Odebrecht to a then high-ranking government official in Panama (Panama Government Official), who was a close relative of the defendants. The defendants were initially charged by criminal complaint on June 27, 2020. The defendants were arrested at el Aeropuerto Internacional la Aurora in Guatemala on July 6, 2020, pursuant to a provisional arrest request from the United States as they were attempting to depart Guatemala on a private plane. On Feb. 4, 2021, Luis Martinelli Linares and Ricardo Martinelli Linares were charged in a five-count indictment. The indictment charged both defendants with one count of conspiracy to commit money laundering and two counts of concealment money laundering; Luis Martinelli Linares was also charged with two counts of engaging in transactions in criminally derived property.
On May 17, 2021, after several preliminary appeals were dismissed, the Guatemalan Fifth Criminal Sentencing Court granted the request by the United States to extradite Luis Martinelli Linares. On June 21, the Guatemalan Court of Appeals, Criminal Branch affirmed the ruling of the Guatemalan criminal court granting extradition. On Oct. 15, the Guatemalan Ministry of Foreign Affairs notified the United States, via diplomatic note, that the extradition was final and Luis Martinelli Linares was ready for surrender to the United States, resulting in his arrival in the United States on Nov. 15. The United States continues its efforts to have Ricardo Martinelli Linares returned to the United States to face justice.
The Department of Justice commended and thanked the Government of Guatemala for its assistance in the extradition of Luis Martinelli Linares to the United States. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of Luis Martinelli Linares. The Brazilian Ministerio Publico Federal, Departamento de Polícia Federal, law enforcement authorities in Guatemala including the Public Ministry of Guatemala and Specialized Unit for International Affairs, and law enforcement authorities in El Salvador also provided significant cooperation.
The FBI’s International Corruption Unit in New York is investigating this case, and the NY-ICS, New York SWAT and FBI’s International Operations Division conducted the transport of Luis Martinelli Linares from Guatemala to the United States.
Trial Attorney Michael Culhane Harper of the Criminal Division’s Fraud Section, Trial Attorneys Barbara Levy and Michael Redmann of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), and Assistant U.S. Attorney Alixandra E. Smith of the U.S. Attorney’s Office for the Eastern District of New York are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
The Kleptocracy Asset Recovery Initiative in MLARS was formed to prosecute money launderers and forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered asset to benefit the people harmed by the corruption and abuse of office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Panamanian Intermediary Charged with Money Laundering Extradited to the United States from GuatemalaRead the Press Release
BROOKLYN, NY – Luis Enrique Martinelli Linares (Luis Martinelli Linares) was extradited from Guatemala to the United States today on an indictment filed in federal court in Brooklyn charging him and his brother, Ricardo Alberto Martinelli Linares (Ricardo Martinelli Linares), with money laundering offenses for their roles in a bribery and money laundering scheme involving Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate. Luis Martinelli Linares is scheduled to be arraigned tomorrow before United States Magistrate Judge Marcia M. Henry.
Breon Peace, United States Attorney for the Eastern District of New York, Kenneth A. Polite Jr., Assistant Attorney General of the Justice Department’s Criminal Division, and Michael J. Driscoll, Assistant Director-in-Charge of the Federal Bureau of Investigation, New York Field Office (FBI), announced the extradition.
“The extradition of Luis Martinelli Linares to the Eastern District of New York is a significant first step in holding him accountable for allegedly laundering millions of dollars in bribe payments through bank accounts in New York and elsewhere,” stated United States Attorney Peace. “Combatting bribery and money laundering by extraditing and prosecuting corrupt foreign actors like Martinelli is a priority of the Department of Justice.”
“The successful extradition of Luis Martinelli Linares demonstrates the department’s commitment to work with our international partners to pursue, capture and extradite those who use the U.S. financial system to further their corrupt schemes and launder illicit funds,” stated AAG Polite. “Thanks to the efforts of our law enforcement partners in Guatemala, Luis Martinelli Linares will be held accountable in the United States for his alleged crimes.”
“Anyone who facilitates bribe payments to government officials contributes to national security risks, whether overtly or inadvertently, and interrupts the free market system of international trade," stated FBI Assistant Director-in-Charge Driscoll. “The FBI will use all available resources to put an end to this type of corrupt behavior.”
On December 21, 2016, Odebrecht pleaded guilty in the Eastern District of New York to a criminal information charging it with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act for its involvement in the bribery and money laundering scheme.
The overarching Odebrecht scheme involved the payment of more than $700 million in bribes to government officials, public servants, political parties, and others in Panama and other countries around the world to obtain and retain business for the company. Luis Martinelli Linares and Ricardo Martinelli Linares allegedly conspired with others to launder approximately $28 million in bribe payments made by and at the direction of Odebrecht to a then high-ranking government official in Panama (Panama Government Official), who was a close relative of the defendants.
The defendants were initially charged by criminal complaint on June 27, 2020. Pursuant to a provisional arrest request from the United States, they were arrested at el Aeropuerto Internacional la Aurora in Guatemala on July 6, 2020, as they were attempting to depart Guatemala on a private plane. On February 4, 2021, Luis Martinelli Linares and Ricardo Martinelli Linares were charged in a five-count indictment, which charged both defendants with one count of conspiracy to commit money laundering and two counts of concealment money laundering; Luis Martinelli Linares was also charged with two counts of engaging in transactions in criminally derived property.
On May 17, 2021, after several preliminary appeals were dismissed, the Guatemalan Fifth Criminal Sentencing Court granted the request by the United States to extradite Luis Martinelli Linares. On June 21, 2021, the Guatemalan Court of Appeals, Criminal Branch affirmed the ruling of the Guatemalan criminal court granting extradition. On October 15, 2021, the Guatemalan Ministry of Foreign Affairs notified the United States, via diplomatic note, that the extradition was final and Luis Martinelli Linares was ready for surrender to the United States, resulting in his arrival in the United States earlier today. The United States has also requested to extradite Ricardo Martinelli Linares, and those proceedings are ongoing.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
United States Attorney Peace and Assistant Attorney General Polite thanked the Government of Guatemala for its assistance in the extradition of Luis Martinelli Linares to the United States. The Department of Justice’s Office of International Affairs provided substantial assistance in securing the arrest of Luis Martinelli Linares. The FBI’s International Corruption Squad in New York (ICS-NY) is investigating this case, and the NY-ICS, New York SWAT and FBI’s International Operations Division conducted the transport of Luis Martinelli Linares from Guatemala to the United States."
The case is being prosecuted by Assistant United States Attorney Alixandra Smith of the Office’s Business and Securities Fraud Section, Trial Attorney Michael Culhane Harper of the Criminal Division’s Fraud Section, and Trial Attorneys Barbara Levy and Michael Redmann of the Criminal Division’s Money Laundering and Asset Recovery Section.
The Brazilian Ministerio Publico Federal, Departamento de Polícia Federal, law enforcement authorities in Guatemala including the Public Ministry of Guatemala and Specialized Unit for International Affairs, and law enforcement authorities in El Salvador provided significant cooperation.
The Defendants:
LUIS ENRIQUE MARTINELLI LINARES
Age: 39
Panama City, PanamaRICARDO ALBERTO MARTINELLI LINARES
Age: 42
Panama City, PanamaE.D.N.Y. Docket No. 21-CR-65 (RJD)
Oregon Tax Cheat Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—An Oregon man was sentenced to federal prison today after failing to pay more than $1.7 million in personal income taxes in a complex tax evasion case dating back to 2001.
Robert Andrew Lund, of Lebanon, Oregon, was sentenced to 41 months in federal prison and three years’ supervised release.
According to court documents, in the mid 1980s, after working for several years as a computer engineer and programmer for the Hewlett Packard company, Lund moved to Oregon and started a private computer consulting company called Lund Performance Solutions (LPS). LPS’s clients included large businesses, school districts, and health care companies located throughout the U.S. In 1993, Lund paid $30,000 to an offshore trust promoter to establish layers of trusts to hide his LPS profits from the IRS. From 1994 to 1996, despite LPS being highly profitable, Lund reported almost no income on his personal income tax returns. Soon after, the IRS audited Lund and determined he owed more than $2.7 million in taxes plus penalties.
Lund used his untaxed profits to buy 90 acres of land outside Eugene, Oregon on which he built a 7,000 square foot house that was later appraised at $950,000. Lund, a small aircraft pilot, also built a private landing strip on the property. Lund also purchased the former city hall and post office building in Albany, Oregon, a trailer park with multiple rental units, and two rental houses. Lund ran LPS and several smaller businesses, including a health food store, a bookstore, and a scuba diving equipment and lessons company, from the building in Albany.
Lund challenged his tax assessments in U.S. Tax Court and the Ninth Circuit Court of Appeals. Both affirmed he owed the IRS unpaid taxes. In response, Lund stopped filing tax returns altogether and began creating many limited liability companies (LLC) and trusts to conceal his income and assets. During this time, Lund sought the assistance of a known tax protestor attorney from Georgia named Kyle Weeks. Weeks later surrendered his law license and was convicted for filing false tax returns.
Over the next decade, the IRS sent Lund dozens of letters, bills, and summonses for financial records. Lund replied with his own letters claiming he was not a U.S. citizen and therefore not subject to taxation or the IRS’s authority. During this same time, Lund continued to go to extraordinary lengths to hide his assets and income from the IRS while also stealing from government assistance programs. He repeatedly transferred title to his properties to various straw entities and people; hid rental income by signing leases with the names of at least 16 different LLCs, partnerships, and trusts; applied for and received food stamps and Medicaid benefits; and convinced an employee to open a bank account on behalf of one of Lund’s trusts. On his food stamp and Medicaid applications, Lund boldly claimed to be a part-time handyman earning just $810 a month. In total, Lund stole approximately $70,000 in public benefits, most of which were paid by the federal government.
On June 12, 2019, a federal grand jury in Portland returned an indictment charging Lund with tax evasion, failure to file personal income tax returns, obstructing or impeding the IRS, and theft of government funds. Lund was also charged in a separate federal case with making a false statement in connection with a personal bankruptcy case.
On July 19, 2021, Lund pleaded guilty to tax evasion, failure to file personal income tax returns, and stealing food stamp and Medicaid benefits. All of Lund’s remaining charges were dismissed as part of his plea agreement.
During sentencing, U.S. District Court Judge Michael H. Simon ordered Lund to pay more than $1.7 million in restitution to the IRS and $70,000 to the Oregon Health Authority.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by IRS Criminal Investigation and prosecuted by Seth D. Uram and Meredith D.M. Bateman, Assistant U.S. Attorneys for the District of Oregon.
Oregon Man Sentenced to Federal Prison for Illegal Firearm Possession on the Burns Paiute ReservationRead the Press Release
EUGENE, Ore.—A man staying on the Burns Paiute Indian Reservation was sentenced to federal prison today for illegally possessing a shotgun with an obliterated serial number.
Danny Hank Snapp, 31, was sentenced to two years in federal prison and three years’ supervised release.
According to court documents, on September 13, 2020, a woman called the police after hearing screaming and crying, followed by gunshots, from her neighbor’s residence on the Burns Paiute Indian Reservation. When police arrived on scene, they found Snapp’s ex-wife crying and walking in front of the property. Officers entered the house, removed a child, and placed Snapp under arrest. The officers located a revolver hidden in a floor vent and a shotgun with an obliterated serial number. After initially claiming he had set off fireworks, Snapp admitted to firing the revolver into the air.
Snapp and his ex-wife are not members of the Burns Paiute Tribe.
On September 7, 2021, Snapp pleaded guilty to the firearm charge for which he was sentenced today.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the FBI with assistance from Bureau of Indian Affairs law enforcement and the Burns Police Department, and prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon, and Thomas Weathers, Tribal Prosecutor for the Burns Paiute Tribe.
Ohio man admits to selling cocaineRead the Press Release
WHEELING, WEST VIRGINIA – Antonio Mario Hall, of Cleveland, Ohio, has admitted to a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Hall, age 29, pled guilty to one count of “Aiding and Abetting the Distribution of Cocaine Base.” Hall admitted to selling cocaine in Ohio County in January 2020.
Hall faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Shawn M. Adkins and Clayton J. Reid are prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, the Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The U.S. Marshal Service, Columbus Police Department Gang Crimes Unit, the Martins Ferry Police Department, and the Bellaire Police Department also assisted.
U.S. Magistrate Judge James P. Mazzone presided.
New Orleans Woman Charged for Theft of More Than $61,000 in Social Security FundsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that CATHERINE CAMPBELL WILLIAMS, age 68, of New Orleans, Louisiana, was indicted on November 12, 2021 for Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to the Indictment, beginning in December 2010 and continuing through 2020, WILLIAMS collected Social Security Administration benefits paid to a deceased relative. It is alleged that in total, WILLIAMS fraudulently received approximately $61,324 in Social Security Administration benefits to which she was not entitled.
U.S. Attorney Evans reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, WILLIAMS faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the Social Security Administration, Office of the Inspector General. The prosecution of this case is being handled by Assistant U.S. Attorney Maria Carboni.
New Orleans Man Indicted for a Violation of the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – NELSON RAYMOND, age 28, a resident of New Orleans, was charged on November 12, 2021 in a one count indictment by a Federal Grand Jury for possessing a firearm while being a convicted felon, announced U. S. Attorney Duane Evans.
If convicted, RAYMOND faces a maximum term of imprisonment of up to ten (10) years, a fine of up to $250,000.00, up to three (3) years of supervised release following any term of imprisonment and a $100 mandatory special assessment fee.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U. S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the New Orleans Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U. S. Attorney Mike Trummel.
* * *
Narcotics Trafficker Extradited from Colombia to Face International Cocaine Distribution ChargesRead the Press Release
Fabian Emilio Zapata Taborda, also known as “Milo” and “Milito,” was arraigned today before United States District Judge Kiyo A. Matsumoto at the federal courthouse in Brooklyn on an indictment charging him with leading an international cocaine distribution conspiracy. The defendant, a Colombian citizen, was arrested in Colombia on a provisional arrest warrant issued from the Eastern District of New York and subsequently extradited from Colombia to the United States on November 12, 2021. Zapata Taborda was ordered detained pending trial. The defendant has been designated a Consolidated Priority Organization Target (“CPOT”) by the Department of Justice, a designation given to the most significant narcotics traffickers in the world.
Breon Peace, United States Attorney for the Eastern District of New York, Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), Dermot F. Shea, Commissioner, New York City Police Department (NYPD), and Kevin P. Bruen, Superintendent, New York State Police (NYSP), announced the extradition and arraignment.
“As alleged in the indictment, the defendant was the leader of one of Colombia’s largest drug trafficking enterprises that supplied massive, metric ton quantities of cocaine to some of the most violent drug trafficking organizations in the United States, the Caribbean, Central America, and Europe,” stated United States Attorney Peace. “The Department of Justice is committed to working with our international partners to dismantle destructive networks of drug trafficking organizations that seek to spread dangerous and addictive narcotics throughout the world.” Mr. Peace extended his appreciation to the DEA’s office in Bogota, Colombia, the United States Marshals Service, the United States Department of State, the Department of Justice’s Office of International Affairs, the Colombian National Police, and the Government of Colombia.
“After years of supplying multi-ton quantities of cocaine to American criminal organizations, Zapata Taborda is finally facing justice at the hands of the U.S. government,” stated DEA Special Agent-in-Charge Donovan. “This significant arrest and extradition shows DEA's commitment to save lives and bring criminals to justice in collaboration with our law enforcement partners.”
“The waves of internationally trafficked narcotics alleged in this case, which to our hardworking NYPD officers represent countless lives harmed and threatened across our city, are ended with this extradition and indictment. I commend our investigators, our law enforcement partners and the prosecutors in the United States Attorney’s Office for the Eastern District of New York, for their work in this case and for their continuing promise to fight this illegal scourge with every tool at our disposal,” stated NYPD Commissioner Shea.
“I commend the dedicated teamwork of our federal, state and local partners, which was instrumental in this case and bringing a dangerous drug trafficker to justice. By working together, we are preventing these dangerous narcotics from coming into our communities and removing the violent criminals who profit at the expense of the people we serve. We will continue to be vigilant to keep these harmful narcotics off our streets and our neighborhoods safe,” stated NYSP Superintendent Bruen.
According to the indictment, court filings, and statements made in Court, the defendant supplied metric tons of cocaine to numerous drug trafficking organizations in Colombia, for distribution to locations in the Caribbean, Central America, Europe, and the United States. As part of the investigation, law enforcement authorities seized over 1.9 metric tons of cocaine attributable to Zapata Taborda’s drug trafficking enterprise. The seizures included multi-hundred-kilogram shipments of cocaine sent by the Zapata Taborda drug trafficking organization from Colombia to Jamaica and Costa Rica for ultimate importation to the United States. Among the drug trafficking organizations supplied by the defendant was Clan del Golfo which is one of the most prolific and violent in the world. Colombian law enforcement authorities also seized and destroyed a large-scale cocaine laboratory operated by the Zapata Taborda drug trafficking organization in Antioquia, Colombia.
The extradition of Zapata Taborda is the result of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation led by the United States Attorney’s Office for the Eastern District of New York and the DEA. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. 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.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to life in prison.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Francisco J. Navarro and Margaret Schierberl are in charge of the prosecution. The Justice Department’s Office of International Affairs handled the extradition in this matter.
The Defendant:
FABIAN EMILIO ZAPATA TABORDA
Age: 52
Antioquia, ColombiaE.D.N.Y. Docket No. 19-CR-212 (KAM)
Middlefield Man Pleads Guilty to Defrauding State Jobs ProgramsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that DAVID KANIA, 62, of Middlefield, waived his right to be indicted and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to offenses stemming from his fraud against several state-run wage subsidy and job training programs.
According to court documents and statements made in court, Kania was the owner and operator of three small businesses, principally in the dietary supplement and beverage industry. Between 2013 and 2018, through his companies, Kania applied for and received state subsidies for employing unemployed jobseekers, including veterans, and for providing training to employees. In order to receive funds, Kania submitted false documents to the Connecticut Department of Labor and the Workforce Investment Boards, which administers wage subsidy programs, showing that he had hired certain workers and they worked for his businesses for a certain period of time, when he knew that to be false. Kania also submitted false invoices to the Manufacturing Innovation Fund (“MIF”) Program for training that was never done. Through this scheme, Kania caused $941,723.24 in loss to the wage subsidy programs and $115,000 in loss to the MIF Program.
Kania also underreported his total income on his 2014 through 2018 federal tax returns by failing to account for $299,201.50 in business funds that he used for personal expenses.
Kania pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of filing a false tax return, which carries a maximum term of imprisonment of three years.
Kania is released on a $100,000 bond pending sentencing, which is not scheduled.
This matter is being investigated by the U.S. Department of Labor – Office of the Inspector General, and the Internal Revenue Service – Criminal Investigation Division, with the assistance of the Connecticut Department of Labor. The case is being prosecuted by Assistant U.S. Attorney David E. Novick.