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12 November 2021
Chandler Man Sentenced to 30 Months for Securities Fraud and EmbezzlementRead the Press Release
PHOENIX, Ariz. – On Wednesday, Vu Anh Nguyen, 26, of Chandler, Arizona was sentenced by U.S. District Judge James A. Teilborg to 30 months in federal prison and ordered to pay more than $700,000 in restitution to his victims.
Nguyen previously pleaded guilty to orchestrating two fraudulent schemes. In the first, Nguyen committed a type of securities fraud known as “free riding,” consisting of making transfers of funds into stock trading accounts from bank accounts that Nguyen knew were insufficiently funded. Nguyen traded with the transferred funds during the two or three days it took for the insufficiency in funds to be processed, resulting in losses to the trading entities of nearly $650,000.
In the second, Nguyen embezzled from his then-employer, Amazon.com. During the short time he was employed by Amazon, Nguyen used his employee access to issue $96,000 worth of refunds to several buyer accounts that he owned or controlled. Amazon discovered, investigated, and reported the fraud to the FBI.
The Federal Bureau of Investigation, Phoenix Division, conducted the investigation in this case. Monica Klapper, Assistant U.S. Attorney, District of Arizona, handled the prosecution.
CASE NUMBER: CR 20-000796-PHX-JAT
RELEASE NUMBER: 2021-082_Nguyen# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Black Hawk Man Charged with Criminal ContemptRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Black Hawk, South Dakota, man has been indicted by a federal grand jury for Criminal Contempt.
Alan Frederick Dillon, age 56, was indicted on July 16, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno November 12, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up six months in federal prison and/or a $1,000 fine, and $25 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about May 16, 2019, Dillon willfully and unlawfully failed to appear for a court hearing at which he was summoned to in Pierre, South Dakota.
The charge is merely an accusation and Dillon is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Dillon was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Alabama Man Pleads Guilty to Firearms OffensesRead the Press Release
WASHINGTON – Lonnie Leroy Coffman, 71, of Falkville, Alabama, pleaded guilty today to federal and local firearms offenses stemming from the discovery of weapons in his pickup truck parked near the U.S. Capitol on Jan. 6.
According to his plea agreement, Coffman traveled from Alabama to the District of Columbia several days prior to Jan. 6 and parked his red GMC Sierra pickup truck in the 300 block of First Street, SE, on the morning of Jan. 6. Less than half a mile away in the U.S. Capitol Building, a joint session of the U.S. Congress was scheduled to meet in the afternoon to ascertain and count the electoral votes related to the presidential election.
Coffman admitted in the plea agreement that he exited the pickup truck at 9:20 a.m. and walked in the direction of the U.S. Capitol Building, and towards a rally near the National Mall. Inside the pickup truck were several loaded firearms within arms-reach of the driver’s seat, hundreds of rounds of ammunition, large-capacity ammunition feeding devices, a crossbow with bolts, machetes, camouflage smoke devices, a stun gun, and a cooler containing 11 mason jars filled with ignitable ingredients for Molotov cocktail incendiary weapons. Coffman also carried a loaded handgun and a loaded revolver as he walked around the area that day. A search of Coffman’s residence in Alabama later that month led to the discovery of 12 additional mason jars containing ignitable substances, each constituting the component parts of Molotov cocktails.
Coffman did not have a license to carry a pistol in the District of Columbia and had not registered any firearms or destructive devices in the National Firearms Registration and Transfer Record, as required by law.
Coffman has been in custody since his arrest on Jan. 6.
Coffman pleaded guilty in two separate criminal cases, one brought in the District of Columbia on Jan. 6, and the other brought in the Northern District of Alabama and transferred to the District of Columbia for purposes of plea and sentencing. Coffman pleaded guilty to two counts of possession of an unregistered firearm, a federal offense, regarding the component parts of Molotov cocktails discovered in his pickup truck in Washington, D.C., and at his residence in Alabama. Coffman also pleaded guilty to carrying a pistol without a license, a District of Columbia offense.
The Honorable Colleen Kollar-Kotelly scheduled sentencing for April 1, 2022. Coffman faces up to 10 years in prison and a $250,000 fine for each of the federal offenses and faces up to five years in prison and a $12,500 fine for the District of Columbia offense. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Attorney’s Office for the District of Columbia, the U.S. Attorney’s Office for the Northern District of Alabama, and the Department of Justice National Security Division’s Counterterrorism Section are prosecuting the case. The FBI’s Birmingham and Washington Field Offices, and the U.S. Capitol Police are investigating the case.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
Alabama Man Pleads Guilty to Firearms OffensesRead the Press Release
Lonnie Leroy Coffman, 71, of Falkville, Alabama, pleaded guilty today to federal and local firearms offenses stemming from the discovery of weapons in his pickup truck parked near the U.S. Capitol on Jan. 6.
According to his plea agreement, Coffman traveled from Alabama to the District of Columbia several days prior to Jan. 6 and parked his red GMC Sierra pickup truck at the 300 block of First Street, SE, on the morning of Jan. 6. Less than half a mile away in the U.S. Capitol Building, a joint session of the U.S. Congress was scheduled to meet in the afternoon to ascertain and count the electoral votes related to the presidential election.
Coffman admitted in the plea agreement that he exited the pickup truck at 9:20 a.m. and walked in the direction of the U.S. Capitol Building, and towards a rally near the National Mall. Inside the pickup truck were several loaded firearms within arms-reach of the driver’s seat, hundreds of rounds of ammunition, large-capacity ammunition feeding devices, a crossbow with bolts, machetes, camouflage smoke devices, a stun gun and a cooler containing 11 mason jars filled with ignitable ingredients for Molotov cocktail incendiary weapons. Coffman also carried a loaded handgun and a loaded revolver as he walked around the area that day. A search of Coffman’s residence in Alabama later that month led to the discovery of 12 additional mason jars containing ignitable substances, each constituting the component parts of Molotov cocktails.
Coffman did not have a license to carry a pistol in the District of Columbia and had not registered any firearms or destructive devices in the National Firearms Registration and Transfer Record, as required by law.
Coffman has been in custody since his arrest on Jan. 6.
Coffman pleaded guilty in two separate criminal cases, one brought in the District of Columbia on Jan. 6, and the other brought in the Northern District of Alabama and transferred to the District of Columbia for purposes of plea and sentencing. Coffman pleaded guilty to two counts of possession of an unregistered firearm, a federal offense, regarding the component parts of Molotov cocktails discovered in his pickup truck in Washington, D.C., and at his residence in Alabama. Coffman also pleaded guilty to carrying a pistol without a license, a District of Columbia offense.
The Honorable Colleen Kollar-Kotelly scheduled sentencing for April 1, 2022. Coffman faces up to 10 years in prison and a $250,000 fine for each of the federal offenses and faces up to five years in prison and a $12,500 fine for the District of Columbia offense. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
32 Named in Superseding Indictment Alleging Drug Trafficking ConspiracyRead the Press Release
JOHNSTOWN – Thirty-two residents of Cambria, Indiana, Allegheny, Philadelphia and Montgomery Counties in Pennsylvania, one resident of Long Beach, California, and one resident of
Middletown, Delaware have been indicted by a federal grand jury in Johnstown on charges of violating federal narcotics laws and unlawful possession of firearms, Acting United States Attorney Stephen R. Kaufman announced today.The fourteen-count Superseding Indictment, returned on November 9 and unsealed today, names the following 32 individuals as defendants: Mikal Davis, 44, of Philadelphia, PA; Darren Alston, 29, of Johnstown, PA; Anthony Andrews, 40, of Johnstown, PA; Debra Bailey, 58, of Johnstown, PA; Sandra Box, 55, of Johnstown, PA; Jonathan Brunson, 50, of Johnstown, PA; Hector Concepcion, 32, of Johnstown, PA; Willette Cooper,39, of Johnstown, PA; James Dotson, 43, of Johnstown, PA; Joshua Edmonds, 28, of Johnstown, PA; Azheem Ellis, 45, of Johnstown, PA; Ruby Gil, 30, of Indiana, PA; Shawn Howard, 47, of Johnstown, PA; Kevin Johnson, 35, of Johnstown, PA; Rashim Kennedy-Williams, 41, of, Philadelphia, PA; Perry King, 45, of Johnstown, PA; Amber Lingafelt, 38, of Johnstown, PA; Dwight Logan, 42, of Johnstown, PA; Jeffrey Mann, 43, of Philadelphia, PA; George Mazey, 50, of Johnstown, PA; Timothy Mollett, 40, of Turtle Creek, PA; Mary Lou Nelson, 58, of Johnstown, PA; James Pearcy, 57, of Philadelphia, PA; Gina Petrucci, 51, of Conshohocken, PA; Derrick Polk, 58, of Long Beach, CA; Paul Smith, 43, of Middletown, DE; Rodney Smith, 65, of Johnstown, PA; Joseph Thornton, 31, of Johnstown, PA; Amanda Weidner, 37, of Johnstown, PA; Jessica Wilson, 35, of Johnstown, PA; Blake Young, 32, of Johnstown, PA; and
Daniel Culmer, 54, of Johnstown, PA.The Superseding Indictment charges all defendants with conspiring to distribute and possess with intent to distribute one kilogram or more of a mixture and substance containing a detectable amount of heroin, five kilograms or more of a mixture and substance containing a detectable amount of cocaine, 280 grams or more of a mixture and substance continuing a detectable amount of cocaine base, in the form commonly known as crack, 400 grams or more of a mixture and substance containing a detectable amount of fentanyl, 50 grams or more of methamphetamine, and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine, from April 2019 to July 2021, in the Western District of Pennsylvania. The statue calls for a mandatory minimum sentence of ten years of incarceration.
Jonathan Brunson is charged at Count Two with distributing heroin and fentanyl resulting in serious bodily injury on June 9, 2021. The statue calls for a maximum sentence of 20 years in prison.
Mikal Davis, Jonathan Brunson, James Dotson, Jeffrey Mann, and Derrick Polk are charged at Count Three with distribution and possession with intent to distribute 50 grams or more of methamphetamine, and 500 grams or a mixture and substance containing a detectable amount of methamphetamine from April 14, 2021 through April 18, 2021. That statute calls for a mandatory minimum sentence of 15 years of incarceration.
Mikal Davis, James Dotson, and Jeffrey Mann are charged at Count Four with possession with intent to distribute 50 grams or more of methamphetamine, and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine; 40 grams or more of a mixture and substance containing a detectable amount of fentanyl; and a quantity of a mixture and substance containing a detectable amount of heroin, cocaine, and crack cocaine on July 15, 2021. That statute calls for a mandatory minimum sentence of ten years of incarceration.
Jonathan Brunson and James Dotson are charged at Count Five with possession with intent to distribute 40 grams or more of a mixture and substance containing a detectable amount of fentanyl; and a quantity of a mixture and substance containing a detectable amount of heroin, crack cocaine, and methamphetamine on June 9, 2021. That statute calls for a mandatory minimum sentence of five years of incarceration.
Timothy Mollett is charged at Count Six with possession with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of cocaine; 40 grams or more of a mixture and substance containing a detectable amount of fentanyl; and a quantity of a mixture and substance containing a detectable amount of heroin, crack cocaine, and methamphetamine on July 15, 2021. That statute calls for a mandatory minimum sentence of five years of incarceration.
Dwight Logan is charged at Count Seven with possession with intent to distribute 40 grams or more of a mixture and substance containing a detectable amount of fentanyl; and a quantity of a mixture and substance containing a detectable amount of heroin, crack cocaine, and methamphetamine on July 15, 2021. That statute calls for a mandatory minimum sentence of five years of incarceration.
George Mazey is charged at Count Eight with possession with intent to distribute a quantity of a mixture and substance containing a detectable amount of crack cocaine and fentanyl on April 20, 2021. That statute calls for a mandatory maximum sentence of 20 years of incarceration.
James Dotson and Timothy Mollett are charged at Counts Nine and Thirteen, respectively, with unlawful possession of a firearm or ammunition by a convicted felon. The statute calls for a maximum sentence of ten years in prison.
Hector Concepcion is charged at Count Eleven with unlawful possession of a firearm and ammunition by an alien illegally and unlawfully in the United States, on July 15, 2021. The statute calls for a maximum sentence of ten years in prison.
James Dotson, Timothy Mollett and Hector Concepcion are charged at Counts Ten, Twelve and Fourteen, respectively, with possession of a firearm in furtherance of a drug trafficking crime. That statute calls for a mandatory minimum sentence of five years of incarceration and up to life.
Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Laurel Highlands Resident Agency and Homeland Security Investigations conducted the investigation leading to the Superseding Indictment in this case. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Pennsylvania Office of the Attorney General, Pennsylvania State Police, Cambria County District Attorney’s Office, Indiana County District Attorney’s Office, Cambria County Sheriff’s Office, Cambria Township Police Department, Indiana Borough Police Department, Johnstown Police Department, Upper Yoder Township Police Department, Richland Police Department, Ferndale Police Department and other local law enforcement agencies.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
11 November 2021
Two Little Rock Men Plead Guilty in Sex Trafficking ConspiracyRead the Press Release
LITTLE ROCK – Two Little Rock men have pleaded guilty to conspiracy to commit sex trafficking of a 6-year-old child. Demarcus George, 27, entered his guilty plea Wednesday afternoon before United States District Judge Brian S. Miller. George joins his codefendant, Mario Waters, 33, who pleaded guilty last week. The guilty pleas effectively cancel George and Waters’ upcoming jury trial, which was scheduled to begin on November 15.
In February 2018, a 6-year-old child was taken to Arkansas Children’s Hospital due to symptoms that were later determined to be caused by several sexually transmitted diseases. The child was interviewed by an FBI forensic interviewer and disclosed that a man, later determined to be Demarcus George, had raped her. The child also disclosed that another man, later determined to be Mario Waters, had also raped her. The child told interviewers that the rape occurred in a hotel room with a curtain in the middle of the room, and she described a picture hanging on the wall in the hotel room.
Law enforcement was able to locate a hotel in Little Rock that matched the description provided by the minor, including the picture on the wall and the curtain in the room. Financial records from the hotel showed that the minor’s mother had rented a room at the hotel in March 2018 and paid with a credit card. The child has since been removed from the mother’s custody.
Doctors at Arkansas Children’s Hospital determined that it was unlikely the child had obtained each sexually transmitted disease from the same offender and that there were likely multiple offenders. Officers obtained search warrants for George and Waters’ blood and urine. Results indicated that George and Waters tested positive for sexually transmitted diseases that the minor had contracted. Both George and Waters admitted in court that they had sexual contact with the minor and were involved in trafficking her with others.
“The unspeakable crimes committed against this child remind us how vitally important it is to have law enforcement officers willing to investigate and put a stop to these horrific actions,” stated Acting United States Attorney Jonathan D. Ross. “These guilty pleas will spare the young victim from having to relive her experience on the witness stand at a trial. Our law enforcement partners work hard every day to protect children from this abuse, and our office will continue to aggressively pursue those who commit these deplorable crimes.”
Judge Miller will sentence George and Waters at a later date. Conspiracy to commit human trafficking of a minor is punishable by any term of imprisonment up to life and not less than five years of supervised release. The case was investigated by the FBI and the Little Rock Police Department and is being prosecuted by Assistant United States Attorneys Kristin Bryant and Allison W. Bragg.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Minneapolis Felon Pleads Guilty to Armed Robbery of Two Banks and Minneapolis Apparel StoreRead the Press Release
ST. PAUL, Minn. – A Minneapolis man pleaded guilty to multiple armed robberies, announced Acting U.S. Attorney Charles J. Kovats.
According to court documents, on February 4, 2018, Richard Alonzo Woods, 38, and two accomplices entered Project SoZo, an apparel store in Minneapolis, wielding guns and threatening customers and employees. Woods and his accomplices stole jewelry, money, and cell phones from the customers, and approximately $600 in cash from the register and other store merchandise, including $1,900 Nike Air Jordan shoes.
According to court documents, on February 22, 2018, Woods and two accomplices entered Lake Area Bank in White Bear Lake brandishing guns and demanding money from the tellers. Surveillance video footage from the bank showed Woods jump over a counter and take cash from the teller’s drawer. Woods and his accomplices stole approximately $9,816 in cash from the bank.
According to court documents, on May 4, 2018, Woods and an accomplice entered Bremer Bank in Brooklyn Center brandishing guns and demanding money from the tellers. A third accomplice was waiting in a getaway car. Woods and his accomplices stole approximately $88,618 in cash from the bank.
Woods pleaded guilty yesterday before U.S. District Judge Wilhelmina M. Wright to one count of interference with commerce by robbery (Hobbs Act), two counts of armed bank robbery, two counts of carrying a firearm during and in relation to a crime of violence, and one count of conspiracy to commit armed bank robbery. A sentencing hearing will be scheduled at a later time.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is the result of investigations conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the United States Marshals Service, the Minneapolis Police Department, the White Bear Lake Police Department, and the Brooklyn Center Police Department.
Assistant U.S. Attorney Samantha H. Bates and former Acting U.S. Attorney W. Anders Folk prosecuted the case.
Media AdvisoryRead the Press Release
MEDIA ADVISORY
WHEN: Friday, November 12, 2021 at 11:00 AM
WHERE: New Hanover County Historic Courthouse
Commissioners Assembly Room 301
24 North 3rd Street
Wilmington, NC 28401
Re: Operation Tiny Toons
RALEIGH – The United States Attorney’s Office announces a press conference to discuss the sentencing of multiple gang members in a multi-year heroin/fentanyl conspiracy investigation in Wilmington and New Hanover County. We will also highlight the important partnerships between all levels of law enforcement and the partnership between the United States Attorney’s and the District Attorney’s Offices in this and other investigations during the preceding year. The Bureau of Alcohol Tobacco, Firearms & Explosives (ATF), Federal Bureau of Investigation, Wilmington Police Department, New Hanover Sheriff’s Office, Holly Ridge Police Department, and Brunswick County Sheriff’s Office investigated these cases.
In addition to Acting United States Attorney G. Norman Acker, III, representatives from the ATF, FBI, Wilmington Police Department, New Hanover County Sheriff’s Office, and the Holly Ridge Police Department are expected to be present at this event.
Credentialed members of the media are invited to attend. For additional information, please e-mail Don Connelly at [email protected]. Please RSVP your intentions to attend the event.
Knoxville Man Sentenced for Fraud and Money LaunderingRead the Press Release
KNOXVILLE, Tenn. – On November 10, 2021, Hugh Leroy Murphy, 81, currently of Knoxville, Tennessee, was sentenced by the Honorable Katherine A. Crytzer, in the United States District Court for the Eastern District of Tennessee at Knoxville.
As part of the written plea agreement, Murphy agreed to plead guilty to one count of mail fraud in violation of 18 U.S.C. § 1341; and one count of money laundering in violation of 18 U.S.C. § 1957. Murphy was sentenced to 46 months in prison, followed by one year of supervised release. In addition, Murphy was ordered to pay $2,215,202.08 in restitution to his victims.
According to court documents, in November 2018, a federal grand jury in the Eastern District of Tennessee returned a twelve-count indictment against Murphy, charging him with eight counts of wire fraud and four counts of money laundering. The indictment resulted from a lengthy investigation by the U.S. Postal Investigation Service and the Internal Revenue Service.
Investigators found that from approximately May, 2002 through September 2016, Murphy defrauded individuals by offering fictitious annuity and purported equity policy investments in commercial real estate. Instead of investing the funds as promised, however, Murphy diverted the funds to his own personal use and benefit. Murphy created the appearance of returns on investment by paying earlier investors with funds received from later investors. In addition, Murphy created the appearance of legitimacy by mailing statements containing fictitious information to his victims. Over the course of the scheme, Murphy received at least $6,294,461.07 from 47 victims, who suffered a net loss of $2,215,202.08.
The criminal indictment was the result of an investigation by the U.S. Postal Inspection Service and the Internal Revenue Service.
Assistant United States Attorney Frank M. Dale, Jr. represented the United States.
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Bringing the Fight to Them: Acting U.S. Attorney Ganjei Highlights EDTX’s Successes in International Drug Investigations and Anti-Cartel ProsecutionsRead the Press Release
DALLAS, Texas – Acting United States Attorney Nicholas J. Ganjei addressed the North Texas Crime Commission (NTCC) today via Zoom for their regular monthly meeting.
Acting U.S. Attorney Ganjei was introduced by NTCC Chair David Dean:
“David, thank you so much for that kind introduction. Good morning everyone. I want to thank you all for taking the time to join us on this Veterans Day holiday. To that end, I would especially thank all the fighting men and women that have made incredible sacrifices, and continue to make such sacrifices, to keep our great nation strong and free.
Today I’d like to speak to you about the robust international drug investigation, extradition, and prosecution practice happening in your Eastern District of Texas. Colloquially known as “959” cases, these investigations and prosecutions result in the identification, capture, and conviction of some of the world’s largest and most notorious drug traffickers. Through joint action with the DEA, HSI, other federal law enforcement partners, as well as our foreign law enforcement counterparts, EDTX can interdict bulk shipments of narcotics before they reach American shores and prosecute those trafficker kingpins who believe themselves above the law simply because they reside overseas. I’d also like to speak to some of EDTX’s success in this space, and how these cases are, and will remain, a priority for the Eastern District.
I want to speak to you today about what the Eastern District and its law enforcement partners are doing to stem the tide of the international drug trade – not just inside the borders of its own district, but on the soil of foreign nations and even on the high seas. But before I do that, it’s probably best that I provide some background on what 959 cases are, and how these cases come to be. Specifically, how does the United States prove its case when the drugs never actually enter the country, and, just as importantly, what is the process for bringing these drug traffickers from their homes to face justice in United States courts?
The international dimension of 959 cases makes them particularly worthwhile endeavors. By looking internationally, EDTX can focus on the investigation and prosecution of the leadership class of these drug trafficking organizations, who invariably reside overseas. When drugs are seized in a routine domestic narcotics investigation, those drugs have already been paid for, and that purchase money is either in the hands of the cartel, or on its way. However, by interdicting drug shipments before they make landfall in the U.S., we can stop this addictive poison from ever infecting our communities, and we can disrupt a lucrative drug transaction from ever taking place. This has a ripple effect on other related criminal activity, which is often financed by narco-dollars. All of us, for example, have heard how drug cartels are expanding into human smuggling, including the smuggling of children, through our southern border. By depriving cartels and other criminal organizations of drug proceeds, we help prevent other criminal activity—including financial crimes, public corruption, even terrorism—from ever taking root.
The fact of the matter is that most of the illicit drugs consumed in the United States originate in Central and South America. Mexico is the primary supplier of heroin and a major source of methamphetamine smuggled into this country. Similarly, Colombia is the leading producer of cocaine for the United States market. Even illicit drugs manufactured in other parts of the world are smuggled into the United States through many of these same countries via established drug routes. For example, according to the Drug Enforcement Administration, precursor chemicals used in the production of illicit fentanyl often originate in China, but typically enter the United States through our southern border with Mexico.
Recognizing this threat, as well as the need to attack the drug problem at its source, the United States has enacted “long-arm” statutes. In the civil context, long-arm statutes apply to a particular state or entity’s ability to exercise jurisdiction beyond its borders. In the criminal context, the idea is somewhat similar, insofar as these laws allow for the prosecution of individuals by the American justice system for narcotics crimes that occurred entirely in other countries. These statutes fall into two primary classes. First, there are narcotics trafficking and conspiracy statutes which are focused on the importation of narcotics into the United States. Second, the United States has maritime statutes which are based on the centuries old concept of the “Law of the Sea,” providing law enforcement with statutory authority for interdiction on the high seas. The Eastern District makes vigorous use of both in its international practice. Allow me to elaborate on both.
21 United States Code Section 959 is a criminal statute intended to reach violations committed outside of the United States. Critically, no act needs to actually occur in the United States. It makes it a crime for a defendant to manufacture or distribute a Schedule 1 or Schedule 2 controlled substance (drugs like cocaine, methamphetamine, marijuana, fentanyl, heroin, and the like), intending that the drug be imported into the United States, knowing that the drug will be imported into the United States, or even having reasonable cause to believe that the drug will be imported into the United States. Similarly, Title 21 United States Code Section 963 makes it a crime to conspire to commit a violation of Section 959. Here, the agreement to commit the unlawful act is the crime. No overt act ever has to occur, simply an agreement. Collectively, these two statutes give law enforcement a powerful set of tools to disrupt traffickers on their home turf.
The power and effectiveness of these long-arm statutes, however, is most evident when reviewing what we don’t have to prove. The United States does not have to prove that
(1) The suspect ever entered the United States;
(2) That any criminal act occurred in the United States;
(3) That any drugs were actually successfully imported into the United States;
(4) That the suspect knew the buyers or the specific destination for the drugs in the United States; or that
(5) The suspect actually physically delivered or distributed the drugs.
So, against that statutory backdrop, what exactly are we looking for as we investigate and prosecute these international cases? In other words, how do we prove our case? Chiefly, we rely on three key pieces of evidence.
First, we often rely on judicially authorized wiretap evidence. These are typically wiretaps that are authorized and conducted in foreign countries and shared with us as a part of Mutual Legal Assistance Treaties (otherwise known as MLATs). In certain limited circumstances, we can intercept communications here in the United States even when the communication occurs entirely outside of our borders because some wireless carriers route all conversations (wherever they might occur) through servers in the United States. Naturally, this is some of our best evidence because it captures drug negotiations, delivery and payment coordination, and other logistical discussion. And in situations where law enforcement has already interdicted or seized a drug shipment, targets may even openly speak about previous drug seizures—which is sort of the holy grail of establishing relevant conduct.
Second, we also rely on “locally sourced” evidence, that is money, drugs, and other contraband seized in foreign countries, and shared with us in the MLAT process.
Finally, cooperating witnesses are a critical aspect of these cases, just as they are in all of our cases.
To put a finer point on it, though, how do we prove that a suspect knew, or had reasonable cause to believe, that drugs seized in Colombia, Guatemala, Mexico or elsewhere were destined for the United States?
The first indicator is quantity. In 959 cases we’re dealing with importation-size quantities, amounts measured in thousands of kilograms—quite literally tons—of illicit narcotics. Long experience tells us that drugs seized in this amount are not intended for distribution on the streets of Bogota or Mexico City, rather these drugs are unfortunately headed for the number one illegal drug-consuming country in the world, the United States. Just as the hypothetical seizure of ten kilograms of cocaine in a stash house tells the reasonable person that the drugs are intended for distribution as opposed to personal use, the extreme quantities seen in 959 cases is proof of the intended export of the narcotics
Second, experience with prior investigations has demonstrated that traffickers utilize known drugs routes. When drugs are seized leaving the eastern Pacific side of Colombia or the Western Caribbean, those drugs are headed north through Guatemala, Honduras, and Mexico, with an eventual destination of the United States.
Third, another key piece of evidence demonstrating that a given conspiracy is importing drugs into the United States is the seizure of U.S. currency from traffickers abroad. It is not at all uncommon to find that bulk cash seized in Central or South America is actually United States currency, itself the proceeds of prior drug loads.
Fourth, drug traffickers, like legitimate businessmen, frequently use logos or brands to help advertise and identify their products. When bricks of cocaine are produced and packaged at laboratories in Colombia, they are embossed with logos such as a scorpion, a Texas longhorn, or even the name of the cartel itself—something to signify to the buyer that the packaged drug is of a level of quality that they can trust, as well as a warning to would-be thieves. When kilograms of cocaine are seized in New York, Chicago, Seattle, or right here in Dallas, we can frequently link those bricks to known drug lords and their laboratories through the logos they display.
Lastly, but not least, wire intercepts and cooperating witnesses frequently explicitly discuss the intended destination of the drugs.
Let me know turn to EDTX’s maritime interdiction efforts. Under the nation’s maritime laws, found in Title 46 of the United States Code, there is no need to prove that a group of defendants intended to import a load of narcotics into the United States. Rather, EDTX only needs to prove that the United States has jurisdiction over the vessel itself. Under the laws of the high seas, as codified in Title 46, a sovereign nation has jurisdiction over any vessel on the high seas that is either stateless (meaning it is not flying the flag of any country); or where the flag country consents (in the case of a vessel that is flying a flag).
The Eastern District of Texas coordinates closely with the United States Coast Guard—who have been incredible partners—in order to prosecute many cases involving of these types of seizures. In fact, just last month, we accepted two of these type of seizures for prosecution in our district, one with 1.8 tons of cocaine and another with 4.2 tons of cocaine. Collectively, that is six tons of cocaine that will never reach American towns, and that’s several million dollars that will never reach the wallets of the cartel.
Allow me to provide an example from an already resolved case. A few years ago, a group of Colombian drug traffickers that were targeted by EDTX had arranged to transfer over one ton of cocaine to a vessel which was floating several hundred miles off of the west coast of the Galapagos Islands. When the United States Coast Guard approached the ship, they discovered that it was a Chinese fishing vessel. The Chinese government, in the first known case of its kind, consented to the United States taking jurisdiction over the vessel and its crew. The crew members were subsequently prosecuted in the Sherman Division of the Eastern District and all defendants were convicted.
The Eastern District has aggressively utilized both prosecutorial tools – importation statutes and maritime jurisdiction – doing so with great success. For Fiscal Year 2020, in regard to organizational drug cases, otherwise known as OCDETF, the Eastern District was number one in the country for the number of defendants prosecuted, beating out much larger (and more famous) districts like SDNY, the Southern District of Florida, and the Central District of California. So, when you think drug prosecution, instead of thinking New York, Miami, and Los Angeles, I urge to think Plano, Sherman, and Tyler. EDTX also led the nation in the number of defendants in opioid and fentanyl prosecutions, as well the number of these organizational defendants involved in financial crimes. And the Eastern District was number two in the country for the number of indictments against leadership-level defendants in these organizational cases. And these numbers are driven to a large extent by our office’s relentless pursuit of overseas traffickers, made possible through our valuable 959 partnerships.
In discussing these cases, and 959 practice generally, one question inevitably comes up: Why the Eastern District of Texas? Why does the Eastern District of Texas prosecute so many of the world’s largest drug traffickers?” I think the subtext there is “why does such a small district, particularly one without the major population centers seen in other districts, account for such a large share of international defendants?” The answer is two-fold.
In the late 1970’s the Eastern District of Texas undertook the investigation and prosecution of one of the richest and most powerful men in Texas, Rex Cauble. Cauble was larger-than-life. He owned a chain of western wear stores, a fleet of shrimp boats, ranches, and even a bank. He was worth $100 million or more. He was known, too, as an anti-drug crusader who recorded his own anti-drug commercials. All the while, however, he was using his fleet of shrimp boats and his private jets to transport over $70 million worth of marijuana from Colombia directly into Texas. The Eastern District prosecuted him and his entire organization, making national headlines. This case and other cases led to the establishment of long and lasting relationships with agents and officials in Colombia and throughout Central and South America. These relationships, in turn, led to joint efforts over the decades to prosecute the highest-level drug traffickers in the courts of the Eastern District.
Which leads me to my second point. In East Texas, we have great judges who are both fair-minded and serious about enforcing the law. I honestly cannot sing their praises high enough. They are thorough, prepared, and well-versed in the law. Furthermore, we have fair but tough juries who are no-nonsense when they evaluate these cases. Moreover, years of positive experiences and great case results have shown our federal law enforcement partners, as well as our allies in Colombia and other countries, that EDTX can be counted upon to be aggressive and engaged, and to share the same passion for stomping out the drug trade that they do.
Let me now speak a little bit about the mechanics of how we get defendants here. The short answer is through the herculean efforts of the United States Marshals Service. The work that U.S. Marshal John Garrison and his team do to get extradited defendants to the United States is nothing short of extraordinary.
The longer answer, however, is that extradition is a matter of sovereign discretion. Both treaties and actual practices can differ widely among countries. The required paperwork to extradite defendants from another country may vary from 40 or 50 pages—to literally volumes, or even boxes, of papers. Similarly, extradition proceedings in the foreign country can take anywhere from a few months to a few years, depending on the provisions of the respective treaty. Most countries afford a hearing in a judicial setting, but again, the specifics of the hearing will vary from country to country. Additionally, most countries afford a defendant at least one level of judicial review, as well as a final decision by one or more executive authorities. Obviously, these proceedings will extend the length of the extradition process.
The bulk of our cases come from Colombia and Guatemala. This reflects the reality that Colombia is a major source country for cocaine and heroin, and that Guatemala is the critical waypoint, for reasons of geography, that nearly all loads of narcotics have to pass through on the way to the United States. Mexico is, of course, also a major transit point but it is much more difficult to accomplish extraditions from Mexico, often taking several years, sometimes even up to a decade.
Since 2017, the Eastern District has extradited a total of 92 individuals from Colombia, 11 from Guatemala, and ten from Mexico. There are many more suspects pending arrest in those countries, and even more than that, if one were to include requests to extradite that are currently pending before the State Department. I know these numbers might not mean much when cited in the abstract, but, let me just say, that’s a lot. In fact, one—just one—of our AUSAs in the Plano office is responsible for 70 percent of all of Guatemala’s extraditions. By all accounts, the demand for extradition is only increasing, and EDTX, as part of its commitment to its 959 practice and partnerships, is scaling up in staffing and resources to meet the need.
So, once we have properly investigated the case and our grand jury has handed up an indictment there are four key steps to the process of getting the defendant to the United States. First, we work with our foreign partners to locate the fugitive. This can often be one of the more difficult steps. Second, we submit a formal request asking the foreign jurisdiction to issue a warrant based on our indictment--this is called a Provisional Arrest Warrant (or PAW) because it is conditioned on our promise to follow up with a formal extradition request once the fugitive is arrested. Third, the foreign authorities obtain the requested warrant and arrest our defendant. The defendant then waits in jail while we have a short deadline to have our State Department make a formal extradition request to the foreign ministry of the other nation. Finally, if the formal extradition request is approved, the defendant is transported to the United States, courtesy of the United States Marshals Service. This process can take as little as 30 days and, again, as much as a decade. In our experience, it usually takes around nine months for a extradition from Colombia and several years for one from Mexico.
Having explained the background of how we get our international cases, I would now, if you will indulge me, love to tell you about some of the exciting successes that we have had in the last year or two.
I don’t know if we have any Netflix fans here, but if we do, you may have heard of a series called “Somos.” It is a difficult-to-watch series that chronicles the events that led up to a massacre in a small village in Mexico called Allende by the Los Zetas cartel. The Zetas were notorious for their brutality, even by cartel standards. The Zetas ruthlessly carried out beheadings, hangings, torture, kidnappings, and even boiling or burning people alive, in order to intimidate and demoralize enemies and innocent civilians.
In September of this year, after seven years of extradition efforts, one of the men most responsible for these murders was sentenced to life imprisonment in the Eastern District of Texas. Numerous witnesses described how Hugo Cesar Roman-Chavarria, also known as “El Vecino,” participated in the massacre by traveling around Allende with Zetas gunmen, pointing out the homes of relatives and associates of a person they suspected was providing information to law enforcement, marking these people and their families for death. Zetas gunmen went door-to-door throughout the village, killing men, women, and children, decimating the town. After the Zetas finished their mass murder, they loaded the bodies into a barn and incinerated the building. A definitive conclusion has never been reached as to the number of men, women, and children who lost their lives, but the total is believed to be at least 100, and possibly up to 300.
Over the course of a three-day sentencing hearing in August and September of this year the district court heard from 13 witnesses for the government, including other high-ranking Zetas members, who, like Chavarria, had been extradited to the United States to face charges. These witnesses described not only Chavarria’s willing involvement in this massacre, but also described his role as a major player in the drug importation trade, overseeing the shipment of enormous quantities of cocaine between Piedras Negras, Mexico, and Eagle Pass, Texas on behalf of the Los Zetas cartel. In the end, Chavarria received a well-deserved life sentence, and hopefully some justice and peace was delivered to the families and friends of those who were killed in Allende.
Similarly, just last month, one of the largest and most violent drug traffickers in Guatemala, Wilson Luargas-Garcia, was also sentenced to a term of life imprisonment. Luargas-Garcia was a prolific drug trafficker, responsible for the trafficking of large amounts of cocaine to drug cartels and guerrilla fighters in Central and South America. He coordinated shipments with the Revolutionary Armed Forces of Colombia (also known as the FARC), one of Colombia’s largest and most violent rebel groups. Luargas-Garcia, who had a reputation for employing violence against his rivals, used illicit proceeds from his drug sales to acquire weapons and to train his personal paramilitary security guards. In April 2018, Luargas-Garcia was extradited to the Eastern District of Texas to face drug charges. Despite being in custody, he continued to run his drug trafficking organization from various local jails, using fellow inmates to smuggle cell phones and other contraband into the jail facilities. Federal investigators teamed with the Smith County Sheriff’s Office and the Guatemalan Ministerio Público to uncover these activities and dismantle his drug operation. In retaliation, Luargas-Garcia threatened to kill one of our Eastern District federal prosecutors. Like Chavarria, Luargas Garcia also received a well-deserved life sentence.
One more colorful defendant was Jhon Eduis Viafara Mina, also known as “Futbolista,” “Goleador,” and “Makelele.” Viafara was involved in the logistical preparations of dispatching large cocaine shipments by aircraft or boat from Colombia to Mexico via Central America, with an eventual destination of the United States. Based on this conduct, Viafara was indicted, extradited, and eventually sentenced to 11 years for his involvement in narcotics trafficking. One fun fact is that Viafara Mina was once a star soccer player in Europe, playing for teams in Great Britain and Spain and, notably, the Colombia National Team. Despite all of this, the lure of even greater riches brought him into narcotics trafficking. In the end, it only brought him a lengthy prison sentence.
In closing, I wish to make one obvious, but crucial point. We could not bring these cases without the tremendous partnerships that we enjoy with our federal, state, local, and international partners. For those agents and officers in attendance, let me say that EDTX is tremendously grateful for your hard work, your dedication, and your commitment to the rule of law. You make a real difference in the lives of Americans, as well in the lives of those who live in countries where the fight against drug cartels is a matter of literal life and death. EDTX will continue to be your partner and your ally as we continue this noble pursuit. Let us, together, bring this fight to the cartels’ front door.
Thank you again for the invitation to come and address you today. I truly appreciate the contribution that the North Texas Crime Commission makes to keeping public safety at the forefront of the public conversation. Thank you for what you do.”
The North Texas Crime Commission (formerly the Greater Dallas Crime Commission) was established in 1950. Its belief is that proper enforcement and enlightened prevention can be achieved through a comprehensive and cooperative effort involving concerned citizens and law enforcement. In addition to monthly membership breakfasts, the NTCC travels to Austin monthly during the Legislative Session to meet with key lawmakers and annually to Washington, D.C. to meet with law enforcement officials and lawmakers.
10 November 2021
Whitefish man claiming to be a former CIA agent admits scheme to defraud investor of $2.3 million to fund bogus “off the books” rescue missionsRead the Press Release
MISSOULA – A Whitefish man accused of defrauding another man of $2.3 million by claiming he was a former CIA agent and needed money to fund “off the books” rescue missions for the CIA but instead used the money for personal expenses admitted charges today, Acting U.S. Attorney Leif M. Johnson said.
Matthew Anthony Marshall, 51, pleaded guilty to wire fraud, money laundering and tax evasion as charged in a second superseding indictment. Marshall faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release on the most serious charge of wire fraud.
A plea agreement filed in the case calls for eight other counts to be dismissed at sentencing if the court accepts the agreement. In addition, restitution is mandatory, and Marshall agrees to be responsible for complete restitution. The government will request restitution of approximately $2,355,000 for the wire fraud and $899,327 for tax evasion for tax years 2013 through 2016. The final figure of fraud restitution will be determined at sentencing.
U.S. District Judge Donald W. Molloy presided. Judge Molloy will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Marshall is to be sentenced on March 3, 2022. Marshall was released pending further proceedings.
In court documents, the government alleged that in the spring of 2013, Marshall began working for the victim, identified as John Doe, in Montana. Marshall convinced Doe that he was a former CIA agent and a former member of an elite Force Reconnaissance unit in the U.S. Marine Corps who had engaged in covert missions around the world. In fact, Marshall was never affiliated with the CIA in any capacity and never served in an elite Force Reconnaissance unit in the Marine Corps. Marshall received an Other Than Honorable discharge from the Marine Corps Reserve in November 1999 after accumulating 82 absences from inactive duty training.
Marshall asked Doe if he would fund “off the books” CIA-backed missions, which Marshall said would involve assault teams he would lead on rescue and other operations in foreign countries. Based on Marshall’s false representations, Doe wired large sums of money, totaling about $2,355,000, to Marshall at least six times, all under the guise of funding missions for the CIA as described by Marshall. Doe first wired Marshall $400,000 in April 2013 for an “off the books” paramilitary mission to Mexico. Marshall asked Doe for money for more purported missions from October 2013 until March 2016, and Doe wired Marshall additional sums.
Marshall did not use the money from Doe for any missions, to Mexico or anywhere else. Instead, Marshall spent the money on personal expenses and loans and gifts to friends and family members. Marshall also failed to report money received from Doe in 2013 for two purported missions as income on his tax return, resulting in a tax evasion of $356,756.
Assistant U.S. Attorneys Timothy J. Racicot and Ryan G. Weldon are prosecuting the case, which was investigated by the IRS Criminal Investigation and FBI.
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Virginia Beach Man Sentenced for Production of Child PornographyRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced yesterday to 22 years in prison for producing images of child sexual abuse.
According to court documents, from December 2018 to January 2019, James Thomas White, 26, knowingly communicated with a thirteen-year-old child on Twitter and repeatedly asked her to send him sexually explicit photographs and videos of herself, which she did. White also used Twitter and other online accounts to find others with whom to trade child sexual abuse material, which he kept on his electronic devices as well as in online cloud storage accounts. After court-authorized searches were executed at White’s residence and in electronic accounts, he was found to possess approximately 1,500 images and 450 videos of child pornography, some of which portrayed the sexual abuse of infants or toddlers.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of Homeland Security Investigations (HSI) Washington, D.C. Office; and Paul Neudigate, Chief of Virginia Beach Police, made the announcement after sentencing by U.S. District Judge Rebecca Beach Smith.
Assistant U.S. Attorney Rebecca Gantt prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-12.
United States Attorney's Office District of Arizona October 2021 Immigration and Border Crimes ReportRead the Press Release
I. Illegal Reentry After Deportation (8 U.S.C. 1326)
289 individuals were charged in October with illegal reentry
A. 217 of those 289 individuals had previously been convicted of non-immigration criminal offenses in the U.S.
Of the 217 individuals with non-immigration criminal records:
1. 49 had violent crime convictions, including:
0 individuals had homicide convictions
11 individuals had sex offense convictions
15 individuals had domestic violence convictions2. 17 had property crime convictions
3. 31 had DUI convictions
4. 115 had drug crime convictions
B. 142 of those 289 individuals had been deported three or more times
II. Alien Smuggling (8 U.S.C. 1324)
48 individuals were charged in October with alien smuggling
III. Illegal Entry (Criminal Consequence Initiative) (8 U.S.C. 1325)
0 individuals were charged in October with illegal entry on the CCI calendar
Criminal conviction information is based on preliminary criminal history reports provided by the arresting agency.
These numbers represent United States Attorney's Office prosecutions only. These numbers do not include individuals apprehended by immigration enforcement officials and subjected solely to administrative process.
RELEASE NUMBER: 2021-081_October Immigration and Border Crimes Report
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Union County Woman Admits Obstructing JusticeRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, woman today admitted that she obstructed an investigation by destroying documents, Acting U.S. Attorney Rachael A. Honig announced.
Latoyia McCollum, 46, of Hillside, New Jersey, pleaded guilty by videoconference before U.S. District Judge Brian Martinotti to an information charging her with obstruction of justice.
According to documents filed in the case and statements made in court:
On Oct. 6, 2020, federal law enforcement officers executed a search at a location pursuant to a court-authorized search warrant. Prior to the execution of the search, Maurice Mills had been charged by complaint with wire fraud for fraudulently obtaining more than approximately $400,000 in unemployment insurance benefits from the state of New York. These fraudulently obtained benefits were often provided on a credit/debit card or by wire transfer into a bank account, where a debit card could then be used to withdraw the money.
Upon entering the location, law enforcement officers observed McCollum in the kitchen area next to a shredder that was on a counter. She was placing what appeared to be a credit/debit card into the shredder while on a face-to-face communication on a handheld mobile device. Law enforcement officers thereafter recovered from the shredder the shreds of what appeared to be a credit/debit card and approximately four credit/debit cards that had been placed into the shredder, but which had not been fully shredded. Law enforcement officers also recovered four credit/debit cards that were on the counter next to the shredder.
After being read and waiving her Miranda rights, McCollum stated that when law enforcement officers entered the location she was on the phone with Mills, who had instructed her to shred the credit/debit cards. Mills pleaded guilty on Sept. 20, 2021, to one count of wire fraud and is scheduled to be sentenced in February 2022.
The charge of obstruction of justice is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to McCollum or twice the gross loss suffered by the victims. McCollum is scheduled to be sentenced March 16, 2022.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Acting Special Agent in Charge Jonathan Mellone in Manhattan; special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., in Newark; postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero in Newark; and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt in Newark, with the investigation leading to today’s guilty plea. She also thanked the New York State Department of Labor, Office of Special Investigations for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Defense counsel: Candace Hom Esq., Assistant Federal Public Defender, Newark
Union County Man Sentenced to 85 Months in Prison for Carjacking Uber Driver in NewarkRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to 85 months in prison for his role in a Newark carjacking in which a firearm was brandished, Acting U.S. Attorney Rachael Honig announced today.
Rakeem McNair, 22, of Roselle, New Jersey, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of carjacking and brandishing a firearm in furtherance of the carjacking. Raquin Tanner, 26, of Newark, pleaded guilty on March 10, 2021, to one count of aiding and abetting the carjacking and was sentenced by Judge Arleo on July 26, 2021, to 78 months in prison.
According to documents filed in this case and statements made in court:
On Aug. 13, 2019, the victim parked her car, which she used for her work as an Uber driver, on Summer Avenue in Newark. At approximately 11:00 p.m., the victim was sitting in the driver’s seat when three males approached her car.
Video surveillance from the scene showed that Tanner walked with the other two males around the corner. As they neared the victim’s car, Tanner spoke to the other two, then went ahead of them, looked into the passenger seat of the car, and upon seeing the lone female driver, signaled the other two males to begin the carjacking.
One of the other males pointed a firearm through the driver’s side window, opened the door and attempted to physically remove the victim from the car. A struggle ensued, and McNair went around the car to aid his conspirator in dragging the victim from the car. McNair and the unidentified male threw the victim violently to the ground and drove away with the vehicle.
In addition to the prison term, Judge Arleo sentenced McNair to three years of supervised release.
Acting U.S. Attorney Honig credited the Newark Police Department, under the direction of Public Safety Director Brian O’Hara; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s sentencing.
The government is represented by Senior Trial Counsel Robert Frazer of the Organized Crime/Gang Unit in Newark.
Defense counsel:
McNair: Charles B. McKenna, Esq., Morristown, New Jersey
Tanner: Joseph R. Rubino Esq., Union, New Jersey
U.S. Attorney's Office Joins in Recognizing National Native American Heritage Month, November 2021Read the Press Release
PORTLAND, Ore.—On October 29, 2021, President Joseph R. Biden Jr. proclaimed November 2021 as National Native American Heritage Month.
The proclamation honors the perseverance of American Indian and Alaska Native peoples and reaffirms the nation’s commitment to upholding trust and treaty responsibilities, strengthen Tribal sovereignty, and advance Tribal self-determination. The proclamation also recognizes the resilience of native peoples despite a painful history of enduring unjust Federal policies, to include assimilation and termination.
The U.S. Attorney’s Office for the District of Oregon joins its Tribal, federal, state, and local partners in taking this opportunity to celebrate the countless contributions of native peoples past and present and honor the influence they have had on the advancement of our nation.
“The U.S. Attorney’s Office is deeply committed to working with our Tribal partners to build and sustain strong, healthy, and safe native communities. The disproportionately high levels of violence experienced by American Indians and Alaska Native peoples, especially Native American women, is unacceptable and requires urgent law enforcement action,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon. “Pursuing justice on behalf of Tribal communities will always be a top priority for this office.”
The U.S. Attorney’s Office has a proud history of actively engaging in government-to-government relationship building with the nine federally recognized Tribal nations in the District of Oregon. A multi-disciplinary team of prosecutors and victim advocates works tirelessly to bring justice to Tribal crime victims and provide statewide leadership on a variety of pressing law enforcement issues impacting Tribal communities.
In June 2020, the U.S. Attorney’s Office announced the hiring of its first Missing and Murdered Indigenous Persons (MMIP) program coordinator and, in February 2021, released its first annual MMIP program report. MMIP is an important and sensitive issue to Tribal communities. To learn more about the U.S. Attorney’s Office MMIP program, please visit www.justice.gov/usao-or/indian-country/mmip.html.
With Veteran’s Day 2021 approaching, the U.S. Attorney’s Office also recognizes and honors American Indians and Alaska Natives who have served or continue to serve in our nation’s Armed Forces. As President Biden’s proclamation states, for more than 200 years, “Native Americans have defended our country during every major conflict and continue to serve at a higher rate than any other ethnic group” in the U.S.
For more information about the U.S. Attorney’s Office Indian Country Program or to sign up for our Indian Country Quarterly Newsletter, please visit www.justice.gov/usao-or/indian-country.
Two Fresno County Residents Indicted for Dealing Fentanyl PillsRead the Press Release
FRESNO, Calif. — A federal grand jury returned two indictments today, charging two Fresno County men with possession of fentanyl with intent to distribute it, Acting U.S. Attorney Phillip A. Talbert announced.
In addition to being charged with possession with intent to distribute fentanyl, Uriel Diaz-Santos, 19, of Fresno, was also charged with possession of a firearm in furtherance of a drug trafficking crime. According to court documents, after two juveniles overdosed on fentanyl pills, investigators interviewed witnesses and reviewed phone records, ultimately developing enough evidence to obtain a search warrant for Diaz-Santos’s residence. On Nov. 2, 2021, investigators searched Diaz-Santos’s house and found thousands of fentanyl pills and a firearm.
This case is the product of an investigation by the Fentanyl Overdose Resolution Team, a multi‑agency team composed of Homeland Security Investigations, the Drug Enforcement Administration, and the Fresno Police Department.
A separate indictment charges David Joseph Yama, 38, of Reedley, with possession of fentanyl with intent to distribute it. According to court documents, on Sept. 1, 2020, police officers went to a gas station in Clovis after a report of suspicious activity and contacted Yama and two associates. A search of the car that Yama had been driving uncovered a large amount of cash, ammunition, plastic baggies, vials containing fentanyl, and over 200 counterfeit oxycodone pills that contained fentanyl.
This case is the product of an investigation by the Clovis Police Department and the Fentanyl Overdose Resolution Team, a multi-agency team composed of the Drug Enforcement Administration, the Homeland Security Investigations, and the Fresno Police Department.
Assistant United States Attorney Justin J. Gilio is prosecuting both cases.
If convicted, Diaz-Santos faces a mandatory minimum of 15 years in prison up to a maximum statutory penalty of life in prison and a fine of up to $1 million. If convicted, Yama faces a maximum statutory penalty of 20 years in prison and a fine of up to $1 million. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
These cases are part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
These cases are 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.
Twin Brothers Plead Guilty to Drug and Gun OffensesRead the Press Release
BOSTON – Twin brothers from Hyannis pleaded guilty in federal court in Boston today to gun and drug offenses.
Di’lon Smith, a/k/a Dilon Smith, and Denzel Smith, 29, each pleaded guilty to one count of possession with intent to distribute a controlled substance analogue called cyclopropyl fentanyl, one count of possession with intent to distribute fentanyl, one count of conspiracy to distribute and to possess with intent to distribute fentanyl and a controlled substance analogue and one count of being a felon in possession of firearms and ammunition. U.S. Chief District Court Judge F. Dennis Saylor IV scheduled sentencing for March 9, 2022. The Smiths were initially indicted in April 2018 on the firearm and ammunition charge and subsequently charged in a superseding indictment in October 2018 on the controlled substances charges.
Between Oct. 3, 2017 and Nov. 29, 2017, the brothers conspired with others to sell drugs, including fentanyl and cyclopropyl fentanyl. The brothers used a Hyannis apartment rented by Di’lon Smith to store drugs for street-level resale. A search of the apartment on Nov. 29, 2017 found the brothers in possession of fentanyl and more than 100 grams of cyclopropyl fentanyl intended for sale, a Smith & Wesson .22 caliber revolver loaded with six rounds of ammunition, a Heckler & Koch 9mm caliber pistol and magazines loaded with 18 rounds of 9mm caliber ammunition.
The charge of conspiracy to distribute and to possess with intent to distribute fentanyl and a controlled substance analogue provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. The charges of possession with intent to distribute a controlled substance analogue and possession with intent to distribute fentanyl each provide for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. 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; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; and Barnstable Police Chief Matthew Sonnabend made the announcement today. Assistant U.S. Attorneys Christine Wichers and Robert E. Richardson of Mendell’s Major Crimes Unit are prosecuting the case.
Top Lev Tahor Leaders Convicted at Trial of Child Sexual Exploitation and KidnappingRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that NACHMAN HELBRANS and MAYER ROSNER were convicted in White Plains federal court of child sexual exploitation offenses and kidnapping following a four-week jury trial. The defendants, leaders of an extremist Jewish sect called Lev Tahor, masterminded a scheme to kidnap a 14-year-old girl (“Minor-1”) and a 12-year-old boy (“Minor-2”) from their mother in Woodridge, New York. The defendants then smuggled the children across the U.S. border to Mexico, where they reunited Minor-1 with her adult “husband” to allow him to continue his illegal sexual relationship with Minor-1.
U.S. Attorney Damian Williams said: “Nachman Helbrans and Mayer Rosner brazenly kidnapped two children from their mother in the middle of the night to return a 14-year-old girl to an illegal sexual relationship with an adult man. Today’s verdict makes clear that our Office – and our law enforcement partners – will not be deterred from achieving justice for victims of child sexual exploitation.”
According to the allegations contained in the Superseding Indictment, other court filings, and the evidence presented at trial:
NACHMAN HELBRANS and MAYER ROSNER are U.S. citizens and senior leaders of Lev Tahor, an extremist Jewish sect that has been located in several different jurisdictions, including New York, Israel, Canada, Mexico, and Guatemala. HELBRANS became the leader of Lev Tahor in or about 2017 and ROSNER served as a top lieutenant. After HELBRANS and his leadership team took over, they seized tight control over the group and embraced several extreme practices, including child marriages and underage sex.
In or about 2017, HELBRANS arranged for his then-12-year-old niece, Minor-1, to be “married” to a then-18-year-old man. They were religiously “married” the following year, when Minor-1 was 13 and her “husband” was 19, and immediately began a sexual relationship with the goal of procreation. They were never legally married. Lev Tahor leadership, including HELBRANS and ROSNER, required young brides to have sex with their husbands, to tell people outside Lev Tahor that they were not married, to pretend to be older, and to deliver babies inside their homes instead of at a hospital, to conceal the mothers’ young ages from the public.
In or about October 2018, the mother of Minor-1 determined that it was no longer safe for her children to remain in the Lev Tahor community in Guatemala. The mother escaped from the group’s compound and arrived in the United States in early November 2018. Also in November 2018, a Brooklyn family court granted her sole custody of the children and prohibited the children’s father, a leader within Lev Tahor, from communicating with the children.
After the mother fled and settled in New York with her children, the defendants devised a plan to return Minor-1, then 14 years old, to Guatemala and to her then-20-year-old “husband” so that they could resume their sexual relationship and procreate. Then, in December 2018, they kidnapped Minor-1 and her brother in the middle of the night from a home in upstate New York and transported them through various states and, eventually, to Mexico. The defendants used disguises, aliases, drop phones, fake travel documents, an encrypted application, and a secret pact to execute on their kidnapping plan. At the time of the kidnapping, Lev Tahor leadership was seeking asylum for the entire Lev Tahor community in the Islamic Republic of Iran.
Following a three-week search involving hundreds of local, federal, and international law enforcement entities, Minor-1 and Minor-2 were recovered in Mexico and returned to New York. Then, in or about March 2019 and March 2021, members of Lev Tahor again tried to kidnap the children.
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NACHMAN HELBRANS, 39, of Guatemala, and MAYER ROSNER, 45, of Guatemala, were convicted of (1) conspiring to transport a minor with intent to engage in criminal sexual activity, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; (2) conspiring to travel with intent to engage in illicit sexual conduct, which carries a maximum sentence of 30 years in prison; (3) two counts of international parental kidnapping, which carries a maximum sentence of three years in prison for each count; and (4) one count of conspiring to commit international parental kidnapping, to unlawfully use a means of identification, and to enter by false pretenses the secure area of an airport, which carries a maximum sentence of five years in prison. HELBRANS was also convicted of an additional count of international parental kidnapping in connection with an attempt to kidnap Minor-1 in March 2019.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation, the New York State Police, the Sullivan County District Attorney’s Office, United States Customs and Border Protection, the Rockland County Sheriff’s Department, the Village of Spring Valley Police Department, Special Agents with the U.S. Attorney’s Office for the Southern District of New York, the Department of State, the Transportation Security Administration, and our law enforcement partners in Mexico, Guatemala, Canada, and Israel.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Sam Adelsberg, Jamie Bagliebter, Jim Ligtenberg, and Daniel Tracer, and paralegal specialist Shannon Becker, are in charge of the prosecution.
Three Individuals Charged with $3.5 Million Scheme to Collect Contributions for Fraudulent Political Action CommitteesRead the Press Release
Two California men and one Texas man have been indicted by a federal grand jury in Austin, Texas, for their alleged involvement a scheme to operate two fraudulent political action committees (PACs) during the 2016 federal election cycle. The indictment was unsealed yesterday after being returned on Nov. 2.
As alleged in the indictment, Matthew Nelson Tunstall, 34, of Los Angeles, California; Robert Reyes, Jr., 38, of Hollister, California; and Kyle George Davies, 29, of Austin, Texas, solicited contributions to Liberty Action Group PAC and Progressive Priorities PAC under the guise that the PACs were affiliated with or meaningfully supporting specified candidates for public office. Between January 2016 and April 2017, the defendants obtained approximately $3.5 million from unwitting donors based on false and misleading representations and used those funds to enrich themselves and to pay for additional fraudulent advertisements soliciting donations. Tunstall and Reyes are also alleged to have laundered more than $350,000 in illegal proceeds from the scheme through a third-party vendor to conceal the use of those funds for their own benefit.
Tunstall and Reyes are both charged with conspiracy to commit wire fraud and to make a false statement to the Federal Election Commission (FEC), multiple counts of wire fraud, and multiple counts of money laundering. Davies is charged with conspiracy commit wire and to make a false statement to the FEC, and multiple counts of wire fraud. Tunstall made his initial appearance yesterday in the U.S. District Court for the Central District of California; Reyes and Davies will make their initial appearances today in the U.S. District Courts for the Northern District of California and the Western District of Texas, respectively. If convicted of all counts, Tunstall and Reyes both face a maximum total penalty of 125 years in prison. If convicted of all counts, Davies faces a maximum total penalty of 65 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office made the announcement.
The investigation was conducted by the FBI’s San Antonio Division, Austin Resident Agency. Trial Attorneys Rebecca M. Schuman and Michael N. Lang of the Criminal Division’s Public Integrity Section are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Thirteen Gangster Disciples Members, Associates and Drug Suppliers Charged in Multistate Drug Trafficking ConspiracyRead the Press Release
BOSTON – Thirteen individuals were charged today in connection with a Lawrence-based drug trafficking conspiracy involving fentanyl, cocaine, suboxone and counterfeit prescription pills containing methamphetamine.
According to court documents, the investigation, which began in August 2020, intercepted communications on numerous cellphones between leaders, members and drug suppliers of the Gangster Disciples street gang operating in the greater Lawrence area. The investigation revealed a large multi-object drug conspiracy centering around the Gangster Disciples in Lawrence, Haverhill and Methuen. According to the charging documents, the defendants actively distributed fentanyl, cocaine and suboxone with drug trafficking activities extending from Massachusetts into Maine and southern New Hampshire as well as into the Essex County Jail. It is also alleged that Justin Suriel and Steven Rios conspired to kidnap, hold captive and traumatize a victim in retaliation for the suspected theft of Rios’ dog.
The investigation also identified defendants as alleged suppliers of methamphetamine disguised as counterfeit Adderall and oxycodone pills. Today, investigators seized four gallon-sized bags of counterfeit Adderall pills containing methamphetamine, weighing approximately 9.67 pounds. An additional gallon-sized bag of counterfeit oxycodone pills containing fentanyl was also seized.
“These defendants allegedly trafficked drugs of all kinds, making money at the expense of addicts and dragging down our community,” said Acting United States Attorney Nathaniel R. Mendell. “Today’s arrests stop a poly-drug pipeline that supplied street-level dealing across New England. Local, state and federal law enforcement worked together to make this happen, and we are not stopping. To the drug traffickers, we say: you will be prosecuted and you will be brought to justice.”
“Today’s arrests targeted many of the key leaders, members, and associates of the Gangster Disciples in the Merrimack Valley who we believe have flooded our neighborhoods with their destructive poison and fueled the violence on city streets under the guise of defending their so-called turf,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Our North Shore Gang Task Force has seized their profits and shut down their distribution networks, and we will not hesitate to use every tool we have to stop others like them from threatening the safety our communities.”
The following individuals were indicted on conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl, 500 grams or more of cocaine and suboxone:
- Justin Suriel, a/k/a “Chachi,” 25, of Methuen;
- Nathaniel Infante, a/k/a “Natti,” 27, of Methuen;
- Jonathan Cruz, a/k/a “Trippy,” 35, of Lawrence;
- Felix Rodriguez, 24, of Methuen;
- Steven Rios, a/k/a “Doofy,” 24, of North Andover;
- Cirio Junior Dolores-Acevedo, a/k/a “Domi,” 38, of Miami, Fla.;
- Celino Guzman Cabreja, 31, of Lawrence;
- Anthony Martinez, 23, of Haverhill;
- Christopher Riley, 38, of Brockton;
- Elijah Declet, a/k/a “Evil,” 24, of Haverhill; and
- Emmanuel Lys, 32, of Watertown.
Suriel and Rios were also charged with one count each of kidnapping conspiracy. Declet was also charged with distribution and possession with intent to distribute methamphetamine.
Two additional defendants were charged by criminal complaint for their involvement in the Gangster Disciples’ trafficking operations. Yoel Mercedes, a/k/a “Capo,” 38, of Lawrence, was charged with distribution of 40 grams or more of fentanyl. Vando Gvozdarevic, 29, of Chelmsford, was charged with possession with intent to distribute 500 grams or more of methamphetamine.
The charge of conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl, 500 grams or more of cocaine and suboxone provides for a sentence of at least five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release and a fine of $5 million. The charge of possession with intent to distribute 500 grams or more of methamphetamine provides for a sentence of at least 10 years and up to life in prison, at least five years and up to a lifetime of supervised release and a fine of $10 million. The charge of kidnapping conspiracy provides for a sentence of up to a lifetime in prison, up to five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Mendell, FBI SAC Bonavolonta and Colonel Christopher S. Mason, Superintendent of the Massachusetts State Police, made the announcement today. The investigation was led by the FBI North Shore Gang Task Force and the Massachusetts State Police. Valuable assistance was provided by the Drug Enforcement Administration, New England Field Division; Homeland Security Investigations in Boston; Maine Drug Enforcement Agency; the Essex County Sheriff's Office; and the Methuen, Andover, Haverhill, Lawrence, Chelmsford and Brockton Police Departments. Assistant U.S. Attorney Philip C. Cheng, of Mendell’s Organized Crime & Gang Unit, is prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Tewksbury Woman Indicted on Bank and Wire Fraud and Identity Theft ChargesRead the Press Release
BOSTON – A Tewksbury woman has been charged in connection with a scheme to embezzle more than $1.8 million from her employer.
Joanne Dinoto, a/k/a “Joanne Mara,” 47, of Tewksbury, was indicted on one count of bank fraud, two counts of wire fraud and one count of aggravated identity theft. Dinoto was released on conditions following an initial appearance today before U.S. District Court Magistrate Judge Jennifer C. Boal.
According to the indictment, between December 2013 and April 2020, Dinoto stole more than $1.8 million from her employer, a flooring company based in Acton. It is alleged that Dinoto inflated her compensation by increasing her hourly rate, falsifying the number of hours she worked and adding phony “reimbursements” to her paycheck, all without authorization. The indictment also alleges that Dinoto used her employer’s corporate credit card for personal expenses, even after her employer directed her to cancel the card, and forged at least two checks to herself from her employer’s checking account. To conceal the scheme, Dinoto allegedly modified her employer’s accounting records.
The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $1 million or twice the gross gain or loss, whichever is greater. The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss, whichever is great. The charge of aggravated identity theft provides a mandatory sentence of two years in prison, to be served consecutively to any other sentence imposed, up to one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Valuable assistance was provided by the Middlesex District Attorney’s Office and the Acton Police Department. Assistant U.S. Attorney Kristen A. Kearney of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Swanton Woman Arrested for Distributing Crack CocaineRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Pamela Yandow, 49, of Swanton, Vermont, was arrested today for distributing cocaine base on multiple occasions in October of 2021. Yandow is scheduled to appear later today on the charge before U.S. Magistrate Judge Kevin J. Doyle.
According to court records, in October of 2021, Yandow distributed cocaine base, commonly known as “crack,” on multiple occasions to a confidential informant at or near her residence in Swanton. This morning, law enforcement executed a search warrant at Yandow’s residence in Swanton, and arrested her pursuant to a federal arrest warrant. Yandow’s extensive criminal history dates back to 1996, and includes a 2003 federal conviction for bank fraud, a 2013 state conviction for narcotics distribution, and a 2019 federal conviction for conspiracy to distribute heroin and cocaine base. Yandow received an 84-month prison sentence in 2019, but was granted compassionate release on April 2, 2021 due to the COVID-19 pandemic.
If convicted of the charge alleged in the complaint, Yandow faces a maximum sentence of 20 years of imprisonment and a $1,000,000 fine. The actual sentence however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. The Acting United States Attorney emphasized that the charge in the complaint is merely an accusation, and that the defendant is presumed innocent unless and until she is proven guilty.
Acting United States Attorney Jonathan A. Ophardt commended the investigatory efforts of Homeland Security Investigations (HSI) and the St. Albans Police Department. He also thanked the Swanton Police Department, the Vermont State Police Drug Task Force, U.S. Customs and Border Protection, and the U.S. Border Patrol for their assistance.
The United States is represented in this matter by Acting U.S. Attorney Jonathan A. Ophardt. Yandow is represented by the Office of the Federal Public Defender.
Steel company forfeits $6 million as part of sentence for immigration violationsRead the Press Release
DAYTON, Ohio – A steel carport business headquartered in Muncie, Indiana, is forfeiting $6 million for knowingly employing dozens of undocumented immigrants. Company executives paid to smuggle the undocumented workers from Mexico to the United States and then used them as cheap labor on construction projects throughout the country.
All Steel Carport, Inc. pleaded guilty in July 2021 to inducing undocumented immigrants to remain in the United States to generate millions of dollars of proceeds for itself.
All Steel performed several millions of dollars’ worth of work in Ohio knowingly using undocumented immigrant workers. The company also purchased trucks in Ohio for the workers, which they titled in the names of “straw owners.”
According to court documents, between 2018 and 2019, the company authorized the hiring of dozens of undocumented immigrants to process steel or install carports for the company. All Steel allowed the employees to use fictitious Social Security numbers and other identifying information. The company also provided incentives to the employees. For example, All Steel helped employees obtain driver’s licenses in other states and purchased vehicles for the employees to pay off through deductions in their paychecks.
As part of this case, All Steel has also forfeited three vehicles – 2020 Chevy Silverados and Ford F-350s and a 2020 Audi R8 – valued collectively at more than $300,000.
Besides forfeiting $6 million and the vehicles, All Steel was sentenced to three years of probation, a $25,000 fine, and was ordered to provide community outreach with Homeland Security Investigations concerning employment practices. All Steel is ordered to obtain IMAGE certification with Immigrations and Customs Enforcement within one year.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, and Vance Callender, Special Agent in Charge, U.S. Homeland Security Investigations, announced the sentence imposed today by Senior U.S. District Judge Walter H. Rice. Patel and Callender acknowledged the cooperation of law enforcement in Oklahoma, Texas and Indiana, as well as the U.S. Attorney’s Office for the Southern District of Indiana. Deputy Criminal Chief Brent G. Tabacchi and Assistant United States Attorney Dwight K. Keller are representing the United States in the case.
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South Bay Man Sentenced to over 8 Years in Prison for Movie Investment Scam and for Fraudulently Selling House Bought with Illicit ProceedsRead the Press Release
LOS ANGELES – A South Bay man was sentenced today to 97 months in federal prison for defrauding Asian investment firms out of $14 million by falsely claiming the money would be used to produce a feature film distributed by Netflix, then, while out on bond, illegally selling the Manhattan Beach house he purchased with his ill-gotten gains by forging the signatures of his victims’ lawyers.
Adam Joiner, 43, of Manhattan Beach, was sentenced by United States District Judge André Birotte Jr., who also ordered him to pay $14 million in restitution. Joiner pleaded guilty in October 2019 to one count of wire fraud and, in December 2019, to an additional count of wire fraud.
Joiner used fake documents and forged signatures to raise millions of dollars from foreign investment firms based in South Korea and China for a movie project he said would be called “Legends” and would depict American folklore icons such as Paul Bunyan and John Henry. But Joiner’s “representations proved to be as fictitious as the legendary figures his film was supposed to depict,” prosecutors wrote in a sentencing memo filed with the court.
Joiner, who operated a company called Dark Planet Pictures, LLC, defrauded Korea Investment Global Contents Fund, a South Korean investment fund whose assets are managed by Korean Investment Partners Co. Ltd., which suffered $8 million in losses. Joiner also defrauded a Chinese investment firm called Star Century Pictures Co. Ltd., and its affiliate PGA Yungpark Capital Ltd., which invested $6 million into “Legends.”
As part of the scheme, Joiner falsely told the investors that Netflix had agreed to distribute the picture, a claim Joiner supported with a bogus distribution agreement that contained the forged signature of a Netflix executive. Joiner subsequently told the investors that he had terminated the distribution agreement with Netflix and had secured a new agreement with Amblin Partners, all of which was false.
Approximately $5.2 million of victim investors’ money was used to purchase Joiner’s Manhattan Beach residence and another $4.3 million was transferred to a bank account held by Joiner that may be linked to developing an unrelated film. Prosecutors noted in their sentencing memo that, while misappropriating the victim investors’ money, Joiner “continued to dissemble, concocting tales of contract negotiations with director Guillermo del Toro and a new distribution agreement with Amblin Partners in an effort to lull his victims into complacency.”
After signing his plea agreement but before he entered his guilty plea in this case, Joiner in October 2019 sold his Manhattan Beach house he had purchased with the proceeds of his fraud. Before doing so, he fraudulently removed the liens his victims had placed on the house by filing documents bearing the forged signatures of attorneys who represented the victims. Caught again, Joiner entered an additional guilty plea to wire fraud in December 2019.
As part of the case, the government seized $5,572,581 from accounts belonging to Joiner, $4 million of which has already been returned to KIGCF.
The FBI investigated this matter.
Assistant United States Attorneys Alexander B. Schwab of the Major Frauds Section and Jonathan S. Galatzan, Chief of the Asset Forfeiture Section, prosecuted these cases. Assistant United States Attorney Robert I. Lester of the Civil Division’s Financial Litigation Section handled the bond forfeiture matter in this case.
Slidell Resident Sentenced to 33 Months for Conspiring to Distribute Cocaine and Crack in the ‘Goose’ Area of New OrleansRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that U.S. District Court Judge Wendy B. Vitter sentenced JOSEPH BROWN, age 46, a resident of Slidell, Louisiana, on November 9, 2021 to 33 months of imprisonment, three (3) years of supervised release, and $200 in mandatory special assessment fees for conspiring to distribute cocaine and crack in New Orleans East, in violation of 21 U.S.C. §§ 841(a)(1), (b)(1)(B), and 846, and using a communication facility to distribute illegal narcotics, in violation of 21 U.S.C. § 843(b). BROWN plead guilty on August 10, 2021.
According to court records, BROWN and four others, Lionel Cooley, Kendrick Demourelle, Kevin Gray, and Blake Monroe, conspired to sell illegal narcotics in New Orleans, including using a broken-down yellow school bus in the ‘Goose’ neighborhood in New Orleans East as a stash house. All five were indicted in February 2020. A seized GMC Sierra pickup truck used by Lionel Cooley contained nearly two kilograms of cocaine and 430 grams of crack.
All five defendants in this case have plead guilty.
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.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration, Jefferson Parish Sheriff’s Office, Hammond Police Department, New Orleans Police Department, and Slidell Police Department in investigating this matter. Assistant United States Attorney David Howard Sinkman is in charge of the prosecution.
Shelby County Man Pleads Guilty to Discharging Oil in Violation of Clean Water ActRead the Press Release
FRANKFORT, Ky. – A Shelbyville, Kentucky, man, John Affourtit, 65, pleaded guilty on Tuesday, before U.S. District Judge Gregory VanTatenhove, to knowingly discharging a harmful quantity of oil into a waterway of the United States.
According to his plea agreement, beginning in March 2017, Affourtit signed an agreement with a company to remove and dispose of the waste material at the company’s abandoned zinc plating facility. In completing the contract, Affourtit admitted to pumping oil waste from the machinery pits into a large 500-gallon water trailer that he had rented. He then took the trailer to his residential property in Shelby County where he discharged it, and it went into a creek that ran through his property. The creek is a perennial stream that flows into waters that are part of the Salt River, a traditional navigable waterway. Affourtit had also disposed of other waste materials, including a container of hazardous waste, from the zinc plating facility on his property in an earthen berm.
Affourtit was indicted in August 2020.
“After agreeing to properly dispose of hazardous materials, the defendant instead chose to endanger the environment and the people that live nearby,” said Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky. “Dangerous choices like this have consequences and the defendant must now face those. We appreciate the dedicated work of our law enforcement partners, whose efforts make this prosecution possible.
“The defendant’s willful disregard of the Clean Water Act put nearby residents and the environment at unnecessary risk,” said Special Agent in Charge Charles Carfagno of EPA’s Criminal Investigation Division in Atlanta. “EPA will continue to hold accountable those that choose to deliberately violate our environmental laws.”
Acting U.S. Attorney Shier; Special Agent in Charge Carfagno; and Anthony R. Hatton, Commissioner, Kentucky Department of Environmental Protection, jointly announced the guilty plea.
The investigation was conducted by EPA-CID and Kentucky Department of Environmental Protection. The United States was represented by Assistant U.S. Attorney Emily Greenfield.
Affourtit is scheduled to be sentenced on February 17, 2022 at 3:30 p.m. He faces a maximum of three years in prison and a fine of not more than $250,000. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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Seven Plead Guilty to Health Care Fraud Conspiracy Involving False Billing for Children’s Behavioral Health ServicesRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that seven criminal defendants have pleaded guilty to charges related to a Medicaid fraud conspiracy arising from the false billing of behavioral health services for children.
The defendants are all former owners, employees, or business associates of Wrights Care Services, LLC, a North Carolina-based provider of rehabilitative behavioral health services. Today’s guilty plea of former owner Daniel Wright marks the seventh guilty plea in the case, the result of a years-long investigation and prosecution led by the United States Attorney’s Office and Federal Bureau of Investigation (FBI) in cooperation with the South Carolina Attorney General’s Office.
“Health care fraud will be prosecuted to the fullest extent of the law.” said Acting U.S. Attorney DeHart. “It is a betrayal of public trust and diverts scarce resources from Americans who need health care coverage.”
“For several years, Wright and the other defendants took advantage of Medicaid, which benefits over one million low-income South Carolinians,” said Susan Ferensic, Special Agent in Charge of the FBI Columbia Field Office. “Healthcare fraud continues to be at the forefront of crimes our office investigates, and this case should serve as an example to individuals and businesses that these schemes will not be tolerated.”
“Not only did this fraud scheme steal millions of dollars from our hardworking taxpayers, it took that money away from legitimate programs to help children who needed it,” South Carolina Attorney General Alan Wilson said. “This case is another example of the close and productive working relationship our office has with the U.S. Attorney’s Office and the FBI and I want to commend them for their diligence in this case.”
Evidence obtained in the investigation revealed that, in 2014, Wrights Care Services was approved by South Carolina Medicaid to provide behavioral health services. Wrights Care maintained associated franchise locations throughout South Carolina, including Columbia, Spartanburg, Pickens, Cheraw, Society Hill, Bennettsville, Hartsville, and Conway. From its inception, Wrights Care Services failed to provide qualified behavioral health services to the children in its care. Nevertheless, in order to receive payment from Medicaid, members of the conspiracy submitted inflated bills and false medical records. In the case of one franchise, members of the conspiracy began billing Medicaid for services before the franchise opened its doors.
In 2015, South Carolina Medicaid sought to audit Wrights Care Services, and members of the conspiracy met in Columbia at a “note party” to forge signatures and falsify records to support the audit. During the course of the scheme, Wrights Care and its affiliated franchises submitted bills to Medicaid in the amount of $6,657,810.43.
The following defendants have pleaded guilty so far:
- Daniel Wright, 39, of Greensboro, North Carolina
- Glenn Pair, 35, of Baltimore, Maryland
- John David Zachariah Wallace, 40, of Sugar Land, Texas
- Kathleen Dubose, 54, of Greensboro, North Carolina
- Sherel Lawson, 47, of Summerfield, North Carolina
- Latasha Bethea, 37, of Fayetteville, North Carolina
- Tonya Strickland Hall, 47, of Greensboro, North Carolina
Each defendant faces a maximum penalty of five years in federal prison for conspiracy to defraud the United States. Each defendant also faces a fine of up to $250,000 and 3 years of supervision to follow the term of imprisonment. United States District Judge Mary G. Lewis accepted the guilty pleas and will sentence the defendants after receiving and reviewing presentencing reports prepared by the United States Probation Office.
This case was investigated by Special Agents Neil Power and Mark McMahon of the FBI, and Assistant Attorney General Brent Yandle and Assistant Chief Investigator Jamie Seales of the South Carolina Attorney General’s Office Medicaid Fraud Control Unit. Assistant United States Attorney Brook Andrews is prosecuting the case.
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Serial Child Sex Offender Convicted of Child Exploitation OffensesRead the Press Release
A federal jury convicted a Texas man today for multiple child exploitation offenses involving an 11-year-old child.
According to court documents and evidence presented at trial, Martin Renteria, 52, of Midland, enticed an 11-year-old into engaging in sexual acts on multiple occasions. Renteria purchased expensive gifts for the child in exchange for the sexual acts. On at least one occasion, he also recorded a video of one of the sexual acts. According to court documents and evidence presented at trial, Renteria had committed similar crimes in the past.
Renteria was convicted of production of child pornography, sex trafficking of a child, possession of child pornography, and committing a new crime against a child while registered as a sex offender. He is scheduled to be sentenced on Feb. 11, 2022 and faces a mandatory minimum of 15 years and maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division and U.S. Attorney Ashley C. Hoff for the Western District of Texas made the announcement.
The Midland Police Department investigated the case, with computer forensics assistance from the Justice Department’s High Technology Investigative Unit.
Trial Attorneys Alicia A. Bove and Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Monica L. Daniels of the Western District of Texas are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Scranton Man Charged with Drug Trafficking, Firearms Offenses and EscapeRead the Press Release
SCRANTON -The United States Attorney’s Office for the Middle District of Pennsylvania announced that on November 9, 2021, Jason Charles Lajoie, age 45, of Scranton, Pennsylvania, was charged by a federal grand jury on a superseding indictment with drug trafficking, firearms offenses, and escape.
According to Acting United States Attorney Bruce D. Brandler, the superseding indictment alleges that Lajoie distributed at least five grams of pure methamphetamine on multiple occasions between June 3, 2019 and February 25, 2021, and Lajoie also possessed with intent to distribute at least five grams of pure methamphetamine on February 25, 2021. It is alleged that the drug transactions occurred after Lajoie had previously been convicted and served a sentence for another serious felony drug trafficking offense. The superseding indictment also alleges that Lajoie possessed multiple firearms during and in relation to his drug trafficking activities as a previously convicted felon. Last, the superseding indictment alleges that Lajoie escaped from custody at the Lackawanna County Prison on October 24, 2021.
The case was investigated by the Federal Bureau of Investigation (FBI), the United States Marshals and the Lackawanna County District Attorney’s Office. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Scammers Often Target VeteransRead the Press Release
Each year on November 11 our nation sets aside a day to recognize and remember veterans of the armed forces who have served and sacrificed so much to protect us and our freedom. As we thank them for this service, we can also do something to help protect them.
Veterans are often targets of frauds and scams aimed at stealing veterans’ benefits, hard-earned savings, and even their identities. If you are a veteran or know a veteran, I encourage you to view and share information provided by the United States Postal Inspection Service at the USPIS website:
https://www.uspis.gov/veterans
The site provides information about schemes targeting vets. Information and knowledge can be powerful weapons. Please join me to do our part to fight against fraudsters and scammers and help protect those who have given so much to protect us.
Duston J. Slinkard
Acting United States Attorney
U.S. Attorney's Office - District of Kansas
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Saratoga Springs Man Sentenced for Misusing a Social Security Number to Obtain Unemployment Insurance BenefitsRead the Press Release
ALBANY, NEW YORK - Markhwan Berning, age 37, of Saratoga Springs, New York, was sentenced today to a year of probation for misusing a social security number.
The announcement was made by United States Attorney Carla B. Freedman and Jonathan Mellone, Special Agent in Charge, New York Region, U.S. Department of Labor, Office of Inspector General (USDOL-OIG).
As part of his previously entered guilty plea, Berning admitted that between May and July 2020, he obtained unemployment insurance benefits, including federal pandemic-related benefits, by falsely presenting to the New York State Department of Labor a fake social security number as his own.
Senior United States District Judge Lawrence A. Kahn also ordered Berning to pay a $2,000 fine and $16,383 in restitution to New York State.
This case was investigated by DOL-OIG, with assistance from the Federal Bureau of Investigation and the New York State Department of Labor, Office of Special Investigations, and was prosecuted by Assistant U.S. Attorney Joshua R. Rosenthal.
Russian Cybercriminal Sentenced to 10 Years in Prison for Digital Advertising Fraud SchemeRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Aleksandr Zhukov was sentenced by United States District Judge Eric R. Komitee to 10 years’ imprisonment for perpetrating a digital advertising fraud scheme through which the defendant and his co-conspirators stole more than $7 million from U.S. advertisers, publishers, platforms, and others in the U.S. digital advertising industry. The Court also ordered Zhukov to pay $3,827,493 in forfeiture. Zhukov, a Russian national who was arrested in Bulgaria in 2018, was extradited to the United States in 2019, and was convicted following a jury trial in May 2021 of wire fraud conspiracy, wire fraud, money laundering conspiracy, and money laundering.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Sitting at his computer keyboard in Bulgaria and Russia, Zhukov boldly devised and carried out an elaborate multi-million-dollar fraud against the digital advertising industry, and victimized thousands of companies across the United States,” stated United States Attorney Peace. “Today’s sentence holds the defendant accountable for his deception and outright theft of more than $7 million, and sends a powerful message to cyber criminals around the world that there is no escape from the international reach of law enforcement.”
Between September 2014 and December 2016, Zhukov operated a purported advertising network—Media Methane—and carried out a digital advertising fraud scheme that came to be known as “Methbot.” Media Methane had business arrangements with other advertising networks whereby it received payment in return for placing advertisements—primarily video advertisements—on websites. Rather than place advertisements on real publishers’ webpages where human internet users would see them, Zhukov rented more than 2,000 computer servers housed in commercial datacenters in Dallas, Texas, Amsterdam and the Netherlands, and programmed the datacenter computer servers (the “bots”) to simulate humans viewing ads on webpages. Zhukov and his co-conspirators programmed the bots to load real ads on blank webpages while falsely representing that the ads were loading on real webpages, “spoofing” the domains of more than 6,000 publishers, including The New York Times, the New York Post, the New York Daily News, Newsday, and the Staten Island Advance.
To create the illusion that human internet users were viewing the advertisements loaded onto these spoofed webpages, Zhukov and his co-conspirators programmed the bots to appear and behave like human internet users: falsely representing that they had screens and mouses, that they were running operating systems used for personal computers, and that they were running commercially available internet browsers (like Chrome, Internet Explorer, and Firefox), when they were not. Zhukov and his co-conspirators also programmed the bots to click around a screen a randomly determined number of times, simulate a mouse moving around and scrolling down a webpage, start and stop a video player midway, bypass captchas, accept cookies, and falsely appear to be signed into popular social media services such as Facebook, Twitter, and Google.
In addition, the defendant leased more than 765,000 Internet Protocol (“IP”) addresses, assigned multiple IP addresses to each datacenter server, and then fraudulently registered IP addresses in the names of major U.S. internet providers. Zhukov entered the false usage and location information into IP databases that are widely relied upon in the industry to make it appear that the computers in question belonged to human internet users located in homes and businesses around the United States.
Zhukov recruited computer programmers and other employees to help him perpetrate the scheme and build the technical infrastructure required to create fraudulent ad traffic. He referred to these individuals as “my developers,” and referred to himself as the “king of fraud!”
The victim companies collectively paid more than $7 million for ads that were never actually viewed by human internet users and never actually displayed on real webpages.
Zhukov directed and transferred proceeds from the scheme to and through multiple personal and corporate bank accounts in Bulgaria, Russia, the United Kingdom, the Czech Republic, Latvia, and Cyprus. He kept 75% of the scheme’s proceeds for himself and pocketed more than $4.8 million from the fraud.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Saritha Komatireddy, Artie McConnell, and Alexander F. Mindlin are in charge of the prosecution. The Justice Department’s Office of International Affairs, the FBI’s Legal Attachés abroad and foreign authorities in multiple countries provided critical assistance in this case.
The Defendant:
ALEKSANDR ZHUKOV
Age: 41
Russian FederationE.D.N.Y. Docket No. 18-CR-633 (EK)
Rome Business Owners Found Guilty of Tax CrimesRead the Press Release
SYRACUSE, NEW YORK - A federal trial jury in Utica convicted a Rome, New York couple and their son today for conspiring to defraud the United States and for tax evasion, announced United States Attorney Carla B. Freedman, Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, and Thomas Fattorusso, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division, New York Field Office.
According to evidence presented at trial and court documents, John Zourdos, his wife Helen Zourdos, and their son Dimitrios Zourdos, all of Rome, New York, operated the three Dipping Donuts stores with locations in Rome and New Hartford. From 2013 to 2017, the defendants concealed more than $2.8 million in cash sales from the IRS, and evaded more than $650,000 in individual taxes, by depositing cash directly into their personal bank accounts instead of business bank accounts, providing incomplete information to their accountant, and causing their accountant to file false individual and corporate tax returns with the IRS. The defendants also used unreported cash sales to fund a lavish lifestyle that included, among other things, the purchase of multiple luxury vehicles. Evidence at trial further showed that the defendants paid some employees “off the books” cash wages for overtime hours. They paid other employees entirely “off the books” in cash for all hours worked.
John, Helen, and Dimitrios Zourdos were each convicted of one count conspiracy to defraud the United States, seven counts of tax evasion, and seven counts of aiding and assisting in the filing of false corporate tax returns. Sentencing hearings for all three defendants will be scheduled at a later date. All face a maximum penalty of up to five years in prison on each count of conspiracy and tax evasion, and three years in prison on each count of assisting the filing of false tax returns, fines of up to $250,000.00 or twice the pecuniary gain, and a three (3) year term of supervised release to follow any incarceration. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The IRS Criminal Investigation Division investigated the case.
Assistant Chief John N. Kane of the Justice Department’s Tax Division and Assistant U.S. Attorney Michael F. Perry of the U.S. Attorney’s Office are prosecuting the case.
Romanian National Sentenced for Stealing $80K from Credit Union AccountsRead the Press Release
TULSA, Okla. – A Romanian national was sentenced today in federal court for conspiring with others to steal close to $80,000 from credit union customers’ accounts after installing skimmers and pinhole cameras on ATM machines in Yukon, Moore, south Oklahoma City and Tulsa, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge Claire V. Eagan sentenced Iancu Ovidiu Florea, 53, to time served plus five years of supervised release. He was further ordered to pay $79, 660 in restitution to Tinker Federal Credit Union.
Florea pleaded guilty to conspiracy to commit financial institution fraud on Aug. 18, 2021.
Florea admitted in his plea agreement that he and codefendant Marinel Muchie, also a Romanian citizen, committed fraud against Tinker Federal Credit Union in July and August 2019. The credit union incurred losses totaling $79,660 from 110 compromised customer accounts.
The two defendants carried out their scheme by placing “skimming” devices, also called “shimmers,” into ATM machines at various Tinker Federal Credit Union locations in the Oklahoma City area and Tulsa. The skimmers were electronic devices that gathered and stored account data from ATM customers when they used their debit cards to conduct transactions at the ATMs. Florea admitted that the two installed tiny cameras at the ATMs that recorded the customer’s personal identification numbers (PINS) as the customers typed on the keypad to access their accounts.
The skimmers ran on power from the ATM and stored customers’ account information until the conspirators downloaded the information onto a card inserted into the ATMs. The pinhole cameras were powered by batteries and used SIM cards to store video. Florea stated in the plea agreement that he helped check the devices and also removed them from the ATMs.
Once the electronic account data was obtained by the skimmers and the PINs were recorded by the cameras, the defendants had enough information to create false access cards and used those to conduct fraudulent financial transactions at ATMs, withdrawing money from the credit union’s customer accounts. Floreau and his codefendant withdrew money from those accounts at ATMs in Albuquerque, New Mexico, and Las Vegas, Nevada, usually about $80 to $100 per withdrawal.
To cover their tracks, the codefendants used false identities to rent vehicles and places to stay. For example, Florea used the name “Joel Sterk” to rent a vehicle which he was driving when arrested by authorities in Illinois.
A Secret Service Task Force in Oklahoma City opened the investigation on Aug. 5, 2019, after the credit union reported finding skimmers on their ATMs. The Task Force was eventually able to track down the defendant in the rental car and contacted authorities in Elmhurst, Illinois, to inform them a suspect was in their jurisdiction. Elmhurst Police Officers stopped Florea for a traffic violation, and after a positive identification was made based on surveillance footage from Tinker Federal Credit Union, he was arrested. Secret Service Agents also discovered there was an FBI active arrest warrant for Florea in the Eastern District of Michigan. He was eventually convicted and sentenced there in regard to an earlier, unrelated fraudulent scheme.
Codefendant Muchie pleaded guilty Sept. 16, 2021 to conspiracy to commit financial institution fraud and aggravated identity theft. He will be sentenced on Feb. 1, 2022.
The U.S. Secret Service and Oklahoma City Police Department conducted the investigation. Assistant U.S. Attorneys David D. Whipple and Kevin C. Leitch conducted the investigation.
River Valley Group Sentenced to over 206 Years Combined in Federal Prison for Drug TraffickingRead the Press Release
FORT SMITH, Ark. – The final members of an Arkansas River Valley group have been sentenced to federal prison for the Distribution of Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearings for the United States District Court in Fort Smith.
In the fall of 2019, Agents with the DEA and the FBI launched an investigation into drug trafficking and money laundering in the Western District of Arkansas. For approximately a year between September 2019 and September of 2020, agents conducted extensive investigative activities into a large, River Valley-based drug trafficking organization led by Manuel “Chuy” De Jesus Perez-Echeverria.
This investigation resulted the arrest, prosecution, and imprisonment of twenty-two (22) individual drug traffickers and money launderers and the seizure of approximately 6.5 kilograms of methamphetamine, 15 firearms, and $146,687 in funds derived from drug trafficking.
The sentencings of the drug trafficking organization members are as follows:
WDAR Case No. 2:20 CR 20014 – 001-004 – (Indictment issued July 28, 2020)
Alexis Tirado - age 27, Fort Smith, Arkansas – sentenced April 8, 2021 to 180 months BOP and $100 special assessment for Aiding and Abetting in the Distribution of More Than 50 Grams of Methamphetamine.
Emmanuel Miranda – age 25, Fort Smith, Arkansas – sentenced April 1, 2021 to 78 months BOP and $100 special assessment for Conspiracy to Distribute More Than 5 Grams of Methamphetamine.
Israel Miranda-Zapata – age 30, Fort Smith, Arkansas – sentenced April 1, 2021 to 108 months BOP and $100 special assessment for Conspiracy to Distribute More Than 5 Grams of Methamphetamine.
Brenda Golden Day – age 36, Fort Smith, Arkansas – sentenced April 1, 2021 to 60 months BOP and $100 special assessment for Distribution of More Than Five Grams of Methamphetamine.
WDAR Case No. 2:20 CR 20017-001-018 (Original Indictment issued August 26, 2020, Superseding Indictment issued October 7, 2020)
Manuel “Chuy” De Jesus Perez-Echeverria - age 36, Fort Smith, Arkansas – sentenced October 22, 2021 to 360 months BOP, $100 special assessment, and $20,000 fine for Conspiracy to Distribute More Than Five Hundred (500) Grams of a Mixture or Substance Containing Methamphetamine.
Humberto “Beto” Acosta-Martinez – age 33, Poteau, Oklahoma – sentenced October 12, 2021 to 48 months BOP, $100 special assessment, $300 fine for Conspiracy to Distribute a Mixture or Substance Containing Methamphetamine.
Shaun Michael Easton – age 40, Fort Smith, Arkansas – sentenced November 9, 2021 to 108 months BOP, $100 special assessment, $900 fine for Distribution of More Than Five (5) Grams of Methamphetamine.
Julio Ivan Enriquez-Munoz – age 41, Oklahoma City, Oklahoma – sentenced November 8, 2021 to 51 months BOP, $100 special assessment, $400 fine for Conspiracy to Distribute a Mixture or Substance Containing Methamphetamine.
Alberto Ledesma – age 43, Fort Smith, Arkansas – sentenced October 18, 2021 to 188 months BOP, $100 special assessment and $2,900 fine for Distribution of More than Fifty (50) Grams of Methamphetamine.
Efrain Maciel-Martinez – age 54, Fort Smith, Arkansas – sentenced October 14, 2021 to 78 months BOP, $100 special assessment, $300 fine for Possession of More Than Fifty (50) Grams of a Mixture or Substance Containing Methamphetamine with Intent to Distribute.
Makayla Nicole Martin – age 22, Fort Smith, Arkansas – sentenced October 15, 2021 to 63 months BOP, $100 special assessment and $1,400 fine for Money Laundering.
Traye Everett Martin – age 26, Fort Smith, Arkansas – sentenced October 14, 2021 to 57 months BOP, $100 special assessment, $1,400 fine for Conspiracy to Distribute a Mixture or Substance Containing Methamphetamine.
Nicholas “Nico” Moron-Rivera – age 29, Fort Smith, Arkansas – plead guilty on September 16, 2021 to Distribution of Methamphetamine. Sentencing has not yet been scheduled.
Julie Ann Pyles - age 42, Fort Smith, Arkansas – sentenced October 13, 2021 to 78 months BOP, $100 special assessment, $1,400 fine for Money Laundering.
Paula Lynne Rider – age 58, Fort Smith, Arkansas – sentenced October 6, 2021 to 87 months BOP, $100 special assessment and a $900 fine for Conspiracy to Distribute a Mixture or Substance Containing Methamphetamine.
Ezequiel Rodriguez – age 43. Heavener, Oklahoma – sentenced October 21, 2021 to 210 months BOP, $100 special assessment, $14,653.19 in restitution to the DEA for methamphetamine laboratory cleanup/abatement for Conspiracy to Distribute More Than Five-Hundred (500) Grams of a Mixture or Substance Containing Methamphetamine.
Ronal Salinas – age 24, Fort Smith, Arkansas – sentenced October 5, 2021 to 33 months BOP, $100 special assessment, $900 fine for Distribution of More Than Five (5) Grams of Methamphetamine.
Benjamin Valdez – age 38, Paris, Arkansas – sentenced October 21, 2021 to 262 months BOP, $100 special assessment and a $5,000 fine for Distribution of More Than Five (5) Grams of Methamphetamine.
Amber Renee Vance – age 35, Fort Smith, Arkansas – sentenced July 21, 2021 to 130 months BOP and a $100 special assessment for Conspiracy to Distribute a Mixture or Substance Containing Methamphetamine.
Richard James Vineyard – age 33, Fort Smith, Arkansas – sentenced November 9, 2021 to 120 months BOP, $100 special assessment, $900 fine for Conspiracy to Distribute a Mixture or Substance Containing Methamphetamine.
Emily Elizabeth Williams – age 31, Fort Smith, Arkansas – sentenced October 5, 2021 to 70 months BOP, $100 special assessment, $900 fine for Conspiracy to Distribute a Mixture or Substance Containing Methamphetamine.
Michael Dean Wilson – age 38, Hot Springs, Arkansas – sentenced October 13, 2021 to 110 months BOP, $100 special assessment, $1900 fine for Conspiracy to Distribute a Mixture or Substance Containing Methamphetamine.
Acting U.S. Attorney David Clay Fowlkes of the Western District of Arkansas, FBI Little Rock, Special Agent in Charge Jim Dawson, and DEA Little Rock, Assistant Special Agent in Charge Jarad Harper made the announcement.
DEA – Fort Smith, AR; McAllister, OK; Atlanta, GA, FBI – Fort Smith, AR; Oklahoma City, OK; Miami, FL, U.S. Marshals Service, ATF – Fort Smith, AR, State & Local Agencies - Logan County Sheriff’s Office, Fort Smith Police Department, Sebastian County Sheriff’s Office, Greenwood Police Department, Paris Police Department, Crawford County Sheriff’s Office, 12th/21st Judicial District Drug Task Force, Arkansas State Police, and the Oklahoma Highway Patrol investigated the case.
Assistant U.S. Attorney Brandon Carter prosecuted the case for the United States.
Today’s announcement is part of the Western District of Arkansas’ Operation Bear Mountain Bingo, which is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s illicit drug supply.
Rhode Island Man Admits Stealing and Selling Luxury Car Tires and RimsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that MICHAEL FARIAS, 56, of Providence, Rhode Island, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to an offense related to his role in a scheme to steal tires and rims from new vehicles at car dealerships in northeastern states and then sell the stolen items to individuals across the country.
According to court documents and statement made in court, between May 2015 and August 2018, Farias and others stole tires and rims from numerous luxury vehicles at car dealerships in Connecticut, Rhode Island, New York and Maine. The co-conspirators then sold the stolen goods to others around the U.S.
In pleading guilty to one count of interstate transportation of stolen property, Farias specifically admitted that, on August 1, 2016, he and others stole the rims and tires from four 2016 Chevrolet Suburbans at a car dealership located in Darien, Connecticut.
Farias was arrested on November 17, 2020.
Farias faces a maximum term of imprisonment of 10 years. He is released on a $100,000 bond pending sentencing, which is not scheduled.
This matter has been investigated by the Federal Bureau of Investigation, the Shelton, Milford, Waterbury, Stonington, Vernon, Darien, Westchester County (N.Y.), Bedford (N.Y.) and Portland (Maine) Police Departments, and the York County (Maine) Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Joseph Vizcarrondo.
Quincy Man Sentenced for Fentanyl and Cocaine ConspiracyRead the Press Release
BOSTON – A Quincy man was sentenced yesterday for his involvement in a drug conspiracy involving fentanyl and cocaine.
Tre Fernandes, a/k/a “OZ” or “OC,” 26, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to three months in prison, nine months of home confinement and three years of supervised release. On May 13, 2021, Fernandes pleaded guilty to conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl and cocaine.
In October 2017, Fernandes delivered 6.91 grams of a substance containing fentanyl to an undercover officer. Fernandes was charged as part of an investigation into a drug trafficking organization distributing large quantities of fentanyl, cocaine and other controlled substances in the greater Boston area.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistant U.S. Attorneys John Mulcahy and Sarah Hoefle of Mendell’s Criminal Division prosecuted the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Queens Man Convicted of Securities and Wire Fraud Conspiracies Relating to the Foreign Exchange MarketRead the Press Release
John Won was convicted by a federal jury in Brooklyn yesterday of all five counts of an indictment charging him with securities fraud, wire fraud and money laundering conspiracies, as well as substantive securities fraud. The verdict followed a week-long trial before United States District Judge Raymond J. Dearie. When sentenced, Won faces a maximum of 20 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.
“John Won and his co-conspirators targeted the Korean-American community in our district and cheated them out of hundreds of thousands of their hard-earned dollars through a web of false promises, lies and deceit,” stated United States Attorney Peace. “Today’s verdict demonstrates the resolve of this Office and our law enforcement partners to prosecuting those who engage in fraud and betray the trust of their investors.” Mr. Peace thanked the Commodities and Futures Trading Commission (CFTC) and National Futures Association (NFA) for their significant cooperation and assistance in this case.
As proven at trial, between February 2012 and December 2013, Won conspired with co-defendant Tae Hung Kang and others in a scheme to defraud victims, who were largely members of New York City’s Korean-American community, into investing in foreign exchange trading accounts and in their company, called ForexNPower. The conspirators issued advertisements in Korean-language newspapers and on Korean-language radio stations claiming that ForexNPower had a secret algorithmic trading method used to trade in the foreign exchange market that guaranteed investors 10 percent monthly returns at no risk of loss. In reality, ForexNPower had no successful trading method and all of their customer accounts suffered substantial losses.
The conspirators also induced investors to purchase stock issued by ForexNPower by falsely claiming that the invested funds would be used to expand the business to a new location in New Jersey or pooled and used to trade foreign currencies. In truth, Won and his co-conspirators misappropriated a substantial portion of the funds, spending the remainder on, among other things, the fraudulent advertisements.
In March 2021, co-defendant Tae Hung Kang, also known as “Kevin Kang,” pleaded guilty to conspiracy to commit securities fraud. Kang is awaiting sentencing.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Sarah M. Evans and Nicholas J. Moscow, and Assistant Chief Gerald M. Moody, Jr. of the Department of Justice’s Fraud Section are in charge of the prosecution.
The Defendants:
JOHN WON
Age: 53
Whitestone, New YorkTAE HUNG KANG (also known as “Kevin Kang”)
Age: 57
Bayside, New YorkE.D.N.Y. Docket No. 18-CR-184 (RJD)
Providence Man Pleads Guilty to Illegal Possession of FirearmRead the Press Release
BOSTON – A Providence man pleaded guilty today to being a felon in possession of a firearm and ammunition.
Roland S. Morgan, 38, pleaded guilty to one count of being a felon in possession of a firearm and ammunition. U.S. Senior Court Judge William G. Young scheduled sentencing for March 3, 2022. Morgan was indicted on March 30, 2021.
On Oct. 28, 2020 at approximately 1:00 a.m., a police officer observed a silver Mercedes exiting Interstate 95 in Seekonk. The officer noted that the vehicle’s rear license plate was not luminated, a violation of Massachusetts Law. After observing the vehicle make a number of random U-turns, the officer conducted a motor vehicle stop. Morgan was driving the vehicle and was unable to produce a driver’s license. The officer determined that Morgan had two outstanding arrest warrants issued by Attleboro District Court. Morgan was then removed from his vehicle and booked on the outstanding warrants.
A subsequent search of Morgan’s vehicle recovered, among other things, a loaded .38 caliber Smith and Wesson revolver from under the seat where Morgan had been sitting, 38 rounds of .38 caliber ammunition, 10 metal tipped arrows, a hunting bow, narcotics, a Crossman pellet gun and a body armor vest.
Morgan is prohibited from possessing a firearm or ammunition due to prior felony convictions.
The charging statute provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Bristol County District Attorney Thomas M. Quinn; Seekonk Police Chief Dean Isabella; and Mahanoy Township (Pa.) Police Chief Brandon Alexander made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Mendell’s Major Crimes Unit is prosecuting the case.
Property Manager Pleads Guilty in Homeowner Association Fraud CaseRead the Press Release
Jackson, Miss. – David Luke Lane, 78, pled guilty to bank fraud yesterday before United States District Judge Henry T. Wingate, announced Acting U.S. Attorney Darren J. LaMarca.
According to court documents, David Luke Lane used his position as a property manager to defraud several Homeowners Associations (HOAs) and Community Bank of Mississippi. Lane entered into contracts with the various HOAs to manage their properties and money in return for a fee. Lane’s duties included keeping the funds of each HOA in designated bank accounts and using those funds for the exclusive and sole benefit of each HOA. Instead, Lane defrauded numerous HOAs by making unauthorized withdrawals of funds from HOA bank accounts and by converting those funds to his own use instead of for the benefit of the HOAs. Lane falsely represented to the bank that he was authorized to make these withdrawals from the HOA accounts. The total of funds taken from the HOAs by Lane exceeded two million dollars.
Lane is scheduled to be sentenced on Tuesday, February 11, 2022, and faces a maximum penalty of 30 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation, the United States Postal Inspection Service, and the Internal Revenue Service are investigating the case, with assistance from the District Attorney's Office for Madison and Rankin Counties.
Pittsburgh Man Indicted on Attempted Coercion of a Minor for Sex ChargeRead the Press Release
PITTSBURGH- A resident of Pittsburgh, PA, now in custody at Allegheny County Jail, has been indicted by a federal grand jury in Pittsburgh, on a charge of attempted coercion and enticement of a minor to engage in illegal sexual activity, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Thomas Hunt, 30, of Pittsburgh, PA, as the sole defendant.
According to the Indictment, from on or about September 13, 2021, until on or about October 13, 2021, Hunt attempted to coerce and entice a minor to engage in illegal sexual activity.
The law provides for a term of imprisonment of not less than ten (10) years and not more than life in prison, a fine not greater than $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Benjamin J. Risacher is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case. 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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Charged with Receiving Material Depicting the Sexual Exploitation of MinorsRead the Press Release
PITTSBURGH, PA - One resident of Pittsburgh, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on a charge of Receipt of Material Involving the Sexual Exploitation of Minorsplain language statement of offense described in indictment or generic description such as violating various federal laws or violating various federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Sean Paul Conley-Refer, currently incarcerated at Allegheny County Jail, as the sole defendant.
According to the Indictment presented to the court, on or about October 8, 2021, in the Western District of Pennsylvania, the defendant did knowingly receive a visual depiction of a minor using any means and facility of interstate and foreign commerce, namely, the Internet and a cellular telephone, the production of which visual depiction involved the use of a minor engaging in sexually explicit conduct, and that depicted a minor engaging in sexually explicit conduct.
The law provides for a mandatory minimum sentence of five years in prison and a maximum total sentence of 20 years in prison, a fine of $250,000, and a term of supervised release of at least five years and up to life. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense(s) and the prior criminal history, if any, of the defendant. Indicate relevant bond/detention information if known
Assistant United States Attorney Benjamin J. Risacher is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case. 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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania man admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Solomon Williams, of Reading, Pennsylvania, has admitted to his role in a firearms trafficking conspiracy, United States Attorney William J. Ihlenfeld, II announced.
Williams, 28, pleaded guilty today to one count of “Conspiracy.” Williams admitted to working with others to purchase, possess, and transfer firearms to persons who couldn’t legally purchase or possess firearms. The crimes took place from April 2019 to December 2020 in Berkeley County and elsewhere.
Williams faces up to five years of incarceration and fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Penitas city manager pleads guiltyRead the Press Release
McALLEN, Texas – A 38-year-old McAllen resident has pleaded guilty to a criminal information charging him with bribery and bankruptcy fraud, announced Acting U.S. Attorney Jennifer B. Lowery.
Omar X. Romero admitted that in 2018 he utilized a cellular phone to communicate with other public officials individuals regarding a scheme to sell a water tank to Agua Special Utility District (SUD) and compensation to be paid in consideration for board votes.
Romero also admitted he was appointed to serve as the chief restructuring officer of Hidalgo County Emergency Services Foundation on Nov. 4, 2019, in connection with their bankruptcy proceedings. While serving in that role, he obtained at least $50,000 from the debtor’s estate that the bankruptcy court had not authorized or earned as compensation for his services.
U.S. District Judge Ricardo H. Hinojosa will impose sentencing Jan. 20, 2022. At that time, Romero faces up to five years in federal prison on each count of conviction. He was permitted to remain on bond pending that hearing.
The FBI conducted the investigation with the assistance of the Texas Department of Insurance and McAllen Police Department. Assistant U.S. Attorney (AUSA) Roberto Lopez is prosecuting the criminal case. AUSA Richard Kincheloe represents the government in the related bankruptcy proceedings.
Passaic County Man Admits Illegal Possession of Firearm and AmmunitionRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man with a previous felony conviction today admitted illegally possessing a firearm and ammunition, Acting U.S. Attorney Rachael A. Honig announced.
Aazhone Kawashire Edwin, 25, of Paterson, pleaded guilty before U.S. District Judge Claire C. Cecchi to an indictment charging him with possession of a firearm and ammunition by a convicted felon.
According to documents filed in this case and statements made in court:
On June 7, 2020, Edwin possessed a firearm loaded with approximately 15 rounds of 9mm ammunition. Edwin has previously been convicted of at least one felony offense, including possession of controlled substances.
The firearms offense to which Edwin pleaded guilty carries a maximum sentence of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for March 15, 2022.
Acting U.S. Attorney Honig credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark, and members of the Paterson Police Department, under the direction of Director Jerry Speziale and Police Chief Ibrahim Baycora, with the investigation leading to today’s guilty plea.
This case is part of the Violent Crime Initiative (VCI), which was formed in 2020 by the U.S. Attorney’s Office for the District of New Jersey, the Passaic County Prosecutor’s Office, and the City of Paterson’s Department of Public Safety for the purpose of combatting violent crime in and around Paterson. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration, the U.S. Marshals, the Paterson Department of Public Safety, the Paterson Police Department, the Passaic County Prosecutor’s Office, the Passaic County Sheriff’s Office, N.J. State Parole, Passaic County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, and N.J. Department of Corrections.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the U.S. Attorney’s Office Organized Crime and Gangs Unit in Newark.
Defense counsel: James A. Plaisted Esq., Hackensack, New Jersey
Pair indicted for defrauding COVID-19 benefit programsRead the Press Release
Seattle – A Seattle area pair was indicted today in the Western District of Washington, for more than $1 million in fraud on COVID-19 relief programs, announced U.S. Attorney Nick Brown. Bryan Alan Sparks, 40, and Autumn Gail Luna, 22, are charged in a 16-count indictment with defrauding Washington State Employment Security Division (ESD) of more than $500,000 in benefits and defrauding the Small Business Administration of approximately $520,000. The two are currently in federal custody in Washington, D.C. after being arrested at Union Station with cocaine, heroin, and methamphetamine.
According to the indictment, from March 2020 until at least January 2021, the two used stolen personal information of more than 50 Washington residents to apply for unemployment benefits. The pair had benefits loaded onto debit cards and mailed to a variety of addresses in the Seattle area where they or their co-conspirators could retrieve them. They also opened fraudulent bank accounts and had benefits paid directly to those accounts. They also used many of those same stolen identities to apply for loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The Small Business Administration paid approximately $520,000 in Economic Injury Disaster Loan (EIDL) proceeds to the pair. The total unemployment benefits the two fraudulently obtained is more than $500,000.
In furtherance of their scheme, Sparks and Luna used the stolen personal information to create counterfeit driver’s licenses and obtain fraudulent driver’s licenses from the Washington State Department of Licensing. They maintained over a dozen phone numbers on as many cell phones, each of which were labeled with the phone number and names of stolen identities. The defendants also maintained detailed ledgers and electronic files of stolen personal information, credit card numbers, and financial transactions associated with each stolen identity.
The pair are charged with conspiracy, 5 counts of mail fraud, 6 counts of wire fraud and 4 counts of aggravated identity theft.
Conspiracy is punishable by 5 years in prison. Wire fraud and mail fraud that relate to a presidentially declared major disaster or emergency is punishable by up to 30 years in prison. Aggravated identity theft is punishable by a mandatory minimum two years in prison to run consecutive to any other sentence imposed in the case.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The investigation of this case is led by the Social Security Administration, Office of the Inspector General and U.S. Postal Inspection Service, with partners: Colusa County Sheriff’s Office (CA); Washington State Employment Security Department; Small Business Administration, Office of the Inspector General; Amtrak Police Department (D.C.); FBI (Sacramento, CA office); FBI Cyber Task Force (D.C.); Washington State Department of Licensing, Driver and Vehicle Investigations; and the Department of Labor, Office of the Inspector General.
The case is being prosecuted by Assistant United States Attorneys Cindy Chang and Seth Wilkinson.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
sparks-luna_indictment.pdfOver 60 Undocumented Noncitizens Concealed in Box TruckRead the Press Release
ALPINE – A Las Cruces man was arrested yesterday in Brewster County on criminal charges related to his alleged involvement in human trafficking.
According to court documents, Javier Duarte, 22, was driving a box truck through the Highway 118 checkpoint when U.S. Border Patrol Agents referred him to secondary inspection. Agents found 67 people concealed in the truck. Four of the individuals were minors, ranging from eight to 13 years old. In addition, three of the individuals were found to have prior aggravated felonies to include rape, possession with intent to distribute drugs and crimes involving moral turpitude.
Duarte is charged by criminal complaint with one count of transportation of aliens and one count of aiding or assisting aliens to enter the U.S. who were previously convicted of an aggravated felony. If convicted, Duarte faces a maximum penalty of 10 years in prison on both counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ashley C. Hoff of the Western District of Texas; Homeland Security Investigations (HSI) Acting Special Agent in Charge Taekuk Cho; and Big Bend Sector Chief Patrol Agent Sean McGoffin made the announcement.
HSI and U.S. Border Patrol are investigating the case.
Assistant U.S. Attorneys Lance Kennedy and Kevin Eaton are prosecuting the case.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Omaha Man Sentenced for Drug and Firearm ChargesRead the Press Release
Acting United States Attorney Jan Sharp announced that Robert Sullivan, 45, of Omaha, Nebraska, was sentenced today in federal court for possessing methamphetamine with the intent to distribute and as a felon in possession of a firearm. United States District Court Judge Brian C. Buescher sentenced Sullivan to 87 months’ imprisonment on each count to run concurrently. Sullivan will serve a four-year (Count I) and three-year (Count II) term of supervised release following his release from the Bureau of Prisons to be served to run concurrently. There is no parole in the federal system.
On January 26, 2021, Omaha Police Department officers executed a search on Sullivan’s Omaha residence. Officers searched the defendant and found a baggie of more than 35 grams of methamphetamine which was laboratory tested and confirmed as to purity. This amount of methamphetamine is indicative of distribution. Officers also recovered a Hiawatha Model 567 20-gauge shotgun at the residence. The shotgun was cut down in length, measuring 24 inches overall, with a 12.5-inch barrel. As a previously convicted felon for possessing a controlled substance in 2017, Sullivan was prohibited from possessing a firearm.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
This case was investigated by the Omaha Police Department.
Newark Man Sentenced to 41 Months in Prison for Firearms Violations Including Illegal Possession of MachinegunRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 41 months in prison for illegal possession of a machinegun, possession of a firearm by a convicted felon, and possession of an unregistered firearm, Acting U.S. Attorney Rachael A. Honig announced.
Anthony Reynolds, 28, previously pleaded guilty before U.S. District Judge Brian R. Martinotti, who imposed the sentence today.
According to documents filed in this case and statements made in court:
On May 2, 2020, while on patrol near Summer Avenue and May Street, Newark police officers saw Reynolds remove a .40-caliber Glock handgun from his waistband and place it underneath a parked vehicle. The gun was loaded with 11 rounds of ammunition and was fitted with a “Glock Switch,” which effectively converted it into a machinegun. The machinegun was not registered in the National Firearms Registration and Transfer Record, as required by law. Reynolds was previously convicted in federal court in the District of New Jersey of carjacking, an offense punishable by more than one year’s imprisonment.
In addition to the prison term, Judge Martinotti sentenced Reynolds to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews, with the investigation leading to today’s sentencing. She also thanked the Newark Department of Public Safety, under the leadership of Director Brian O’Hara, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys Sophie E. Reiter of the Cybercrime Unit and Sarah A. Sulkowski of the Violent Crimes Unit in Newark.
Defense counsel: Chester Keller Esq., First Assistant Federal Public Defender, Newark