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Tuesday 28 September 2021
Texas man sentenced to prison for distributing thousands of images of child pornographyRead the Press Release
AUGUSTA, GA: A Texas man who distributed child pornography through an Internet messaging service has been sentenced to more than 10 years in federal prison.
James Lee Kinnison, 23, of Cypress, Texas, was sentenced to 121 months in prison after pleading guilty to Distribution of Child Pornography, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Court Chief Judge J. Randal Hall also ordered Kinnison to pay restitution of $15,000, to serve 15 years of supervised release, and to register as a sex offender after completion of his prison term. There is no parole in the federal system.
“James Kinnison appeared to be a stellar student with a bright future – but his exploitation of countless child victims is horrific,” said Acting U.S. Attorney Estes. “With our law enforcement partners, we will continue to hold accountable anyone who harms our most vulnerable citizens.”
As described in court documents and testimony, agents from the Georgia Bureau of Investigation (GBI) in October 2018 were conducting an investigation of a suspected child pornography distributer when they discovered Kinnison was sharing videos and images of child pornography to a private online messaging forum. At the time, Kinnison was a student and tutor at Union University in Jackson, Tenn. He later was interviewed and arrested by agents with Homeland Security Investigations after he admitted sharing images of child pornography to the online forum.
For purposes of sentencing, more than 52,000 images of child pornography were attributed to Kinnison.
“The GBI will continue to work tirelessly to protect innocent child victims of online exploitation,” said GBI Director Vic Reynolds. “We are grateful for the relationships we maintain with our federal partner agencies to bring these offenders to justice.”
“These perpetrators think they can share their filth and hide from justice by using the anonymity of the Internet, but they are wrong,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Sentences like this send a loud message to Kinnison and others like him that this behavior will not be tolerated, and they will be held accountable.”
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
The case was investigated by the GBI and Homeland Security Investigations, and prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara M. Lyons.
Texas Man Sentenced to Prison for Filing False Tax Returns with Stolen IdentitiesRead the Press Release
Texas Man Sentenced to Prison for Filing False Tax Returns with Stolen Identities
Defendant Purchased Stolen Identities from the InternetA Texas man was sentenced to 70 months in prison today for conspiring to commit wire fraud, wire fraud, and aggravated identity theft, in connection with a scheme to file false tax returns using stolen identities.
Emmanuel Akoto, also known as “Kofi,” of Grand Prairie, Texas was convicted following a jury trial in October 2019. According to court documents and evidence at trial, from 2011 through 2014, Akoto purchased from third parties more than 560 stolen identities and used some of those identities to file false tax returns with the Internal Revenue Service (IRS). These returns listed fake income and tax withholdings and sought fraudulent refunds, which Akoto and his co-conspirators loaded onto pre-paid debit cards. At one point, Akoto tried to purchase via email identities from a United States Secret Service undercover agent. The wide-ranging conspiracy involved others in Texas, California, Georgia, and Ghana.
Jeffrey Quaye, who was a co-defendant in the case, was sentenced in March to 24 months in prison. Quaye pleaded guilty to conspiring to commit wire fraud and aggravated identity theft prior to the trial against Akoto.
In addition to being sentenced to prison, U.S. District Judge Steven J. McAuliffe ordered Akoto and Quaye to pay restitution and to serve terms of supervised release following their prison sentences. Akoto was ordered to pay $551,601 in restitution and Quaye was ordered to pay $99,796. Each defendant was sentenced to two years of supervised release.
Acting Deputy Assistant Attorney General Stuart M. Goldberg and Acting U.S. Attorney for the District of New Hampshire John J. Farley made the announcement.
IRS–Criminal Investigations and the Secret Service investigated the case.
Trial Attorney Sean Green of the Justice Department’s Tax Division, AUSA John Kennedy, and former Assistant U.S. Attorney Arnold Huftalen of the United States Attorney’s Office for the District of New Hampshire prosecuted the case.
Texas Man Sentenced to Prison for Filing False Tax Returns with Stolen IdentitiesRead the Press Release
A Texas man was sentenced to 70 months in prison today for conspiring to commit wire fraud, wire fraud and aggravated identity theft, in connection with a scheme to file false tax returns using stolen identities.
Emmanuel Akoto, also known as “Kofi,” of Grand Prairie, was convicted following a jury trial in October 2019. According to court documents and evidence at trial, from 2011 through 2014, Akoto purchased from third parties more than 560 stolen identities and used some of those identities to file false tax returns with the IRS. These returns listed fake income and tax withholdings and sought fraudulent refunds, which Akoto and his co-conspirators loaded onto pre-paid debit cards. At one point, Akoto tried to purchase, via email, identities from a U.S. Secret Service undercover agent. The wide-ranging conspiracy involved others in Texas, California, Georgia and Ghana.
Jeffrey Quaye, who was a co-defendant in the case, was sentenced in March to 24 months in prison. Quaye pleaded guilty to conspiring to commit wire fraud and aggravated identity theft prior to the trial against Akoto.
In addition to being sentenced to prison, U.S. District Judge Steven J. McAuliffe ordered Akoto and Quaye to pay restitution and to serve terms of supervised release following their prison sentences. Akoto was ordered to pay $551,601 in restitution and Quaye was ordered to pay $99,796. Each defendant was sentenced to two years of supervised release.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney John J. Farley for the District of New Hampshire made the announcement.
IRS–Criminal Investigations and the Secret Service investigated the case.
Trial Attorney Sean Green of the Tax Division, Assistant U.S. Attorney John Kennedy, and former Assistant U.S. Attorney Arnold Huftalen of the U.S. Attorney’s Office for the District of New Hampshire prosecuted the case.
Tacoma woman pleads guilty to arson for burning police cars in downtown SeattleRead the Press Release
Seattle – A 26-year-old Tacoma, Washington, woman pleaded guilty today to arson for burning five Seattle P0lice vehicles parked in the area of Sixth and Pine in downtown Seattle on Saturday, May 30, 2020, announced Acting U.S. Attorney Tessa M. Gorman. Margaret Aislinn Channon was arrested June 11, 2020, following an investigation by the FBI, ATF, and Seattle Police Department. She is scheduled for sentencing by U.S. District Judge John C. Coughenour on January 18, 2022.
According to the plea agreement, Channon appears in videos from the protest in downtown Seattle wearing distinctive clothing and showing tattoos on her hands and arms. Channon is captured on video using fire and aerosol cans to light five Seattle Police Department vehicles on fire. She is also shown entering various stores and removing items of clothing. She admits smashing the window at the Verizon Store, and entering a sandwich shop and destroying the electronic cash register. Investigators identified Channon based on her clothing, tattoos, and information from her various social media accounts.
Law enforcement executed a search warrant at Channon’s Tacoma residence and seized clothing and accessories that appear in some of the videos from the arsons.
Under the terms of the plea agreement, Channon is responsible for restitution. The amount will be determined at sentencing.
Arson is punishable by a mandatory minimum 5 years in prison and up to 20 years in prison. Both sides have agreed to recommend 5 years in prison. The ultimate sentence is up to Judge Coughenour, who will determine the appropriate sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case is being investigated by the FBI, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and the Seattle Police Department.
The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
St. Louis man pleads guilty to drug traffickingRead the Press Release
ST. LOUIS – United States District Court Judge Stephen R. Clark accepted a plea of guilty from Deaunta Miller on today’s date, for the crime of knowingly and intentionally possessing fentanyl with the intent to distribute. Judge Clark set sentencing for January 12, 2022. At sentencing, Miller is subject to imprisonment of not more than 20 years, a fine of not more than $1,000,000, or both such imprisonment and fine.
According to the plea agreement, Miller knowingly and intentionally possessed with the intent to distribute fentanyl, a controlled substance, on or about December 2, 2020, within the Eastern District of Missouri. Agents with the Drug Enforcement Administration began an investigation into Deaunta Miller’s narcotics trafficking in June of 2020. During their investigation, agents conducted controlled purchases of narcotics from Miller and later obtained federal search warrants, which authorized them to search two residences in the St. Louis area.
Investigators executed the warrants on December 2, 2020. During the execution of the search warrants a large amount of fentanyl was seized along with cocaine and heroin. Further investigation revealed over $60,000.00 in cash that was seized as illegal drug proceeds and a hydraulic press used in conjunction with the distribution of illegal narcotics.
The case was investigated by the Drug Enforcement Administration.
Southeastern Connecticut Drug Trafficker, Co-Conspirator, Found GuiltyRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, and New London Police Chief Brian Wright, today announced that a federal jury in Bridgeport has found ANTHONY WHYTE, also known as “Jak Mac,” 47, of New London, and AMY SARCIA, 52, of Stonington, guilty of narcotics trafficking and money laundering offenses, and Whyte guilty of a firearm offense.
The trial before U.S. District Judge Victor A. Bolden began on September 10 and the jury returned the guilty verdicts this afternoon.
This matter stems from an investigation led by the Drug Enforcement Administration, Connecticut Statewide Narcotics Taskforce East, Connecticut Department of Correction and the New London, Waterford, City of Groton and Stonington Police Departments, into the distribution of narcotics and illegal possession of firearms in southeastern Connecticut. The investigation included court-authorized wiretaps and controlled purchases and seizures of heroin, cocaine and firearms.
According to the evidence introduced during the trial, Whyte obtained heroin, fentanyl and cocaine from various sources in Connecticut, New York and elsewhere, and distributed the narcotics to other members of the conspiracy. Whyte’s co-conspirators then sold the drugs to customers and other street-level drug dealers. Sarcia, who both distributed and used cocaine, accepted narcotics proceeds from Whyte and provided Whyte with weekly paychecks from her business, Two Wives Pizza, and a federal W-2 tax form, in an attempt to disguise the narcotics proceeds as employment wages. Sarcia also accepted cash from Whyte for allowing him to use three apartments in a building she managed to store and dispense narcotics.
On February 21, 2019, Whyte, Sarcia and several other co-conspirators were arrested. On that date, a search of Whyte’s New London apartment revealed more than 1.5 kilograms of cocaine; approximately 185 grams of heroin; approximately 100 grams of fentanyl and fentanyl pills; 10 firearms, several of which were stolen; and approximately $25,000 in cash. Investigators seized additional narcotics, another firearm, and nearly $200,000 in cash from other members of the conspiracy.
The jury found Whyte and Sarcia guilty of one count of conspiracy to distribute, and to possess with intent to distribute, various narcotics, and one count of conspiracy to launder monetary instruments (“money laundering”). Whyte was also found guilty of three counts of possession with intent to distribute, and distribution of, various narcotics, and one count possession of a firearm in furtherance of a drug trafficking crime.
At sentencing, which is not scheduled, Whyte faces a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of life, and Sarcia faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 60 years.
Twenty-Three others charged as a result of this investigation previously pleaded guilty.
This investigation has been conducted by the Drug Enforcement Administration, Homeland Security Investigations, U.S. Marshals Service, Connecticut Statewide Narcotics Taskforce East, Connecticut Department of Correction and the New London, Waterford, City of Groton, Stonington, Norwich, Old Saybrook and UConn Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Natasha M. Freismuth and Angel M. Krull through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Soledad Norteño Gang Member Sentenced to Eight Years in Prison for Participation in Federal Rico ConspiracyRead the Press Release
SAN JOSE – Michael Cazares, a/k/a “Lil Rhino,” was sentenced today in federal court to eight years in prison for his racketeering conspiracy convictions, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair.
Cazares, 30, of Soledad, was a Norteño gang member who participated in a conspiracy to commit violent attacks on other inmates in the Monterey County Jail. He pleaded guilty on June 10, 2021, to engaging in a RICO Conspiracy, Conspiracy to Commit Murder in Aid of Racketeering, and Conspiracy to Commit Assault with a Dangerous Weapon in Aid of Racketeering.
In his plea agreement, Cazares admitted to being a member of the Nuestra Familia/Salinas Norteños enterprise. This enterprise consists of members and associates of the Nuestra Familia prison gang as well as Norteño street gangs in Salinas and the surrounding areas. Norteño gang members pledge their allegiance and loyalty to the prison gang Nuestra Familia and are instructed on its rules, rituals, and obligations. Members agree to commit crimes to carry out the enterprise’s racketeering activity, including murder, narcotics trafficking, and other acts of violence.
Gang rules and discipline are enforced by threatening and attacking those individuals who violate the rules or pose a threat to the organization. Inside prisons and local jails, members and associates of Nuestra Familia and the Norteños work together to maintain the structure and rules of their enterprise.
In his plea agreement, Cazares admitted that while in jail he conspired with enterprise members to enforce the most important rules by conducting “removals” of inmates. His plea agreement described a “removal” as a pre-planned vicious attack designed to inflict maximum physical injury on a fellow inmate gang member who committed a serious infraction of the gang’s rules and to remove that gang member from both the gang’s custodial housing unit and the gang itself. A removal, as described in the plea agreement, is carried out by one or more “hitters” who stab the victim with a jail-made weapon and are followed by at least two “bombers” who beat the victim. The purpose of the subsequent beating by bombers, who carry no weapons, is to inflict injury while providing time for the hitters to wash blood off of themselves and to get rid of the weapons.
Drug trafficking inside jail is a significant source of revenue for Nuestra Familia and Norteños. Cazares further admitted that he also conspired with other gang members in the enterprise to support the distribution of narcotics within Monterey County Jail.
Cazares and 14 other Norteño gang members were indicted by a federal grand jury on September 27, 2018. They were charged with one count of a RICO racketeering conspiracy, in violation of 18 U.S.C. § 1962(d); one count of conspiracy to commit attempted murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5); and one count of conspiracy to commit assault with a dangerous weapon in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(6). In addition, some of the defendants, but not Cazares, were charged with attempted murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5) and assault with a dangerous weapon, in violation of 18 U.S.C. § 1959(a)(3).
To date, 13 of the charged defendants have pleaded guilty and 12 have been sentenced, while two defendants remain scheduled for a trial set to commence on October 25, 2021. Each of the 13 defendants listed below pleaded guilty to a RICO conspiracy, and their status is as follows:
Defendant
Date of Sentencing
Sentence
JOHNNY MAGDALENO, a/k/a “Soldier Boy”
November 10, 2020
30 years in prison
RODNEY LUIS ROMERO,
a/k/a “Speedy”
November 17, 2020
18 years in prison
MICHAEL JAMES RICE,
a/k/a “Redwood”
March 3, 2020
13 years in prison
RAMON MONTOYA,
a/k/a “Ray Ray”
October 27, 2020
10 years in prison
JUAN ALVAREZ,
a/k/a “Chucky”
August 17, 2021
10 years in prison
ERIK LOPEZ,
a/k/a “Bimbo”
August 18, 2020
10 years in prison
ALEJO ALEX ALEGRE, IV,
a/k/a “Chino”
October 13, 2020
10 years in prison
CARLOS CERVANTES, a/k/a “Lil Huero”
September 22, 2020
10 years in prison
MICHAEL CAZARES, a/k/a “Lil Rhino”
September 28, 2021
8 years in prison
ALBERTO MORENO,
a/k/a “Doughboy”
January 7, 2020
7 years in prison
STEVEN ANTHONY DORADO,
a/k/a “Castro”
July 14, 2020
7 years in prison
JEFFREY LOPEZ,
a/k/a “T-Bone”
May 11, 2020
7 years in prison
ALBERTO CERVANTES, a/k/a “Littles”
November 2, 2021
TBD – pending sentencing
The eight year prison sentence for Cazares was handed down today by the Honorable Beth Labson Freeman, United States District Judge, following Cazares’s guilty pleas on three counts: one count of engaging in a RICO racketeering conspiracy, in violation of 18 U.S.C. § 1962(d); one count of conspiracy to commit attempted murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5); and one count of conspiracy to commit assault with a dangerous weapon in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(6). Judge Freeman also sentenced the defendant to a five year period of supervised release following release from prison.
The United States Attorney’s Office’s Organized Crime Strike Force is prosecuting the case. The prosecution is the result of an investigation by the FBI with assistance from the Salinas Police Department, the Monterey County Sheriff’s Office, the California Highway Patrol, and the California Department of Corrections and Rehabilitation.
This investigation and prosecution are part of the Organized Crime Drug Enforcement Task Force (“OCDETF”), which 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.
Shreveport Man Sentenced on Firearms ChargeRead the Press Release
SHREVEPORT, La. – Johnny Dewayne Young, Jr., 60, of Shreveport, Louisiana, was sentenced today by United States District Judge Donald E. Walter to 48 months in prison, followed by 3 years of supervised release, for being a convicted felon in possession of a firearm, Acting United States Attorney Alexander C. Van Hook announced.
According to information presented to the court at the guilty plea hearing, deputies with the Caddo Parish Sheriff’s Office stopped the vehicle Young was driving on June 8, 2020 for a traffic violation. He was the sole occupant of the vehicle and admitted to deputies that he did not have a driver’s license or a state identification card, nor had he ever possessed one. Young further admitted that a loaded firearm was in the vehicle and after a brief search, deputies found and seized the firearm.
Young has a lengthy criminal history, with the most recent felony conviction being for aggravated flight from an officer on January 10, 2018. In addition to that charge, Young has previous felony convictions for possession of a firearm by a convicted felon (2005), possession of a controlled substance (2003 and 2005), aggravated battery (1997), possession of a controlled substance with intent to distribute (1997), and simple burglary (1989). As an individual having been convicted of a felony offense, Young knew he was prohibited from possessing a firearm or ammunition.
The ATF, Caddo Parish Sheriff’s Office and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Cytheria D. Jernigan prosecuted the case.
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Sedalia Man Pleads Guilty to Murder for HireRead the Press Release
JEFFERSON CITY, Mo. – A Sedalia, Missouri, man pleaded guilty in federal court today to attempting to hire an undercover law enforcement agent to murder the victim in a pending statutory sodomy case.
Jon Mark Wilson, 57, pleaded guilty before U.S. Magistrate Judge Willie J. Epps Jr. to one count of the use of interstate facilities (the use of a cell phone and crossing state lines) in the commission of murder for hire.
By pleading guilty today, Wilson admitted that he paid $2,000 to an undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives to murder his alleged victim in a separate state case. Wilson has been charged in Pettis County, Mo., with two counts of felony first degree statutory sodomy in a case that is still pending.
Wilson solicited another person in January 2019 to arrange the murder for him. That person contacted law enforcement authorities and helped arrange a meeting with Wilson and the undercover agent. Wilson agreed to hire the undercover agent to murder the intended victim. On Jan. 22, 2019, Wilson drove from Sedalia to Kansas City, Kansas, to meet with the undercover agent. Wilson paid the undercover agent $2,000, made arrangements to pay another $5,000 after the murder, and gave him a photo of the intended victim. Wilson also went into the Cabela’s store and purchased shotgun shells for the undercover agent to use in the murder. When Wilson left the area, he was stopped and arrested by a Missouri State Highway Patrol trooper.
Under federal statutes, Wilson is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol, and the Sedalia, Mo., Police Department.
Saucier Man Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
Gulfport, Miss. – A Saucier man pled guilty to being a felon in possession of a firearm, announced Acting U. S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, Christopher Michael Gelston, 40, knowingly possessed a Ruger 9mm pistol after having been previously convicted of a felony.
Gelston is scheduled to be sentenced on January 18, 2020, at 10:00 a.m., and faces a maximum penalty of 10 years in prison and a $250,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms and Explosives is investigating the case.
Assistant U.S. Attorney Andrea Jones is prosecuting the case.
Statement of Acting US Attorney Saima Mohsin on Today’s Ruling in the Case of United States of America V. Nargarwala, Et. Al.Read the Press Release
“We are very disappointed in the Court’s decision today dismissing the indictment. We take our duty to protect children very seriously. Congress sought to protect young girls from the cruelty of the practice of female genital mutilation when it enacted 18 U.S.C. § 116 in 1996. Congress reaffirmed the importance of this law when it re-enacted the statue in 2020 after the Court’s dismissal of the charge in this case as unconstitutional. Child victims are vulnerable and they deserve our best efforts to hold accountable those who harm them. Our prosecutorial team is comprised of some of our best and most experienced prosecutors. I stand behind them and commend them for their dedication, integrity, and commitment to protect innocent child victims of female genital mutilation.”
Riverton Man Found Guilty on Six Counts of Sexual Abuse on the Wind River Indian ReservationRead the Press Release
Acting United States Attorney Bob Murray announced today that DALCO GABRIEL WHITEMAN, 53, of Riverton, Wyoming was found guilty on two counts of aggravated sexual abuse and four counts of abusive sexual contact following a five-day federal jury trial in front of District Court Chief Judge Scott W. Skavdahl in Casper, Wyoming.
According to evidence provided at trial, the jury found that Whiteman was responsible for molesting multiple victims on the Wind River Indian Reservation spanning the course of 25 years. Six victims, several of them unknown to each other, testified that they had been sexually assaulted by Whiteman, some of them on numerous occasions.
Sentencing on each count will vary based on when the assault occurred. The most serious convictions for aggravated sexual abuse are punishable by not less than 30 years but not more than life imprisonment. The sentencing hearing has not yet been scheduled.
"This verdict brings a measure of justice to the victims of Dalco Whiteman," said FBI Denver Division Special Agent in Charge Michael Schneider. "The FBI in coordination with the Bureau of Indian Affairs, which was the primary investigative agency in this case, will continue to prioritize protecting child victims of sexual assault by holding accountable all those who perpetrate such crimes."
The investigation was conducted by the Bureau of Indian Affairs and the Federal Bureau of Investigation. Assistant United States Attorney Kerry J. Jacobson prosecuted the case.
Passaic County Man Admits Role in Illegal Money Transmitting SchemeRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey man today admitted his role in an illegal money transmitting business, Acting U.S. Attorney Rachael Honig announced.
Willy Cruz-Bonilla, 24, of Paterson, New Jersey, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to a criminal information charging him with aiding and abetting an illegal money transmitting business.
According to documents filed in this case and statements made in court:
From August 2016 through August 2017, Cruz-Bonilla accepted over $2.5 million in cash and purchased over 90 cashier’s checks at local bank branches in New Jersey and elsewhere. The investigation revealed that the cash was the proceeds of illegal drug distribution. The check purchases were part of a large-scale illegal money transmitting and money laundering scheme designed to hide the illegal source of the cash and transfer it from New Jersey to the Dominican Republic and Colombia, all while attempting to avoid scrutiny by law enforcement and U.S. banks.
The charge of aiding and abetting an illegal money transmitting business carries a maximum penalty of five years in prison and a fine of $250,000 or twice the amount involved in the offense, whichever is greater. Sentencing is scheduled for Feb. 1, 2022.
Acting U.S. Attorney Honig credited special agents and task force officers of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson; special agents and task force officers of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; the Morristown, New Jersey, police department, under the direction of Acting Police Chief Darnell Richardson; and the Direccion Nacional de Control de Drogas (the Dominican Republic National Drug Directorate, DNCD) with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the Criminal Division in Newark.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Ocoee Man Sentenced to More Than Six Years in Federal Prison for Identity Theft and Wire Fraud Scheme Targeting Elected Officials in FloridaRead the Press Release
Orlando, FL – U.S. District Judge Gregory A. Presnell has sentenced Michael T. Watters (51, Ocoee) to six years and five months in federal prison for aggravated identity theft and wire fraud. Watters had pleaded guilty on July 12, 2021.
According to court documents, Watters created approximately 35 counterfeit driver licenses using the stolen identities of current or former local, state, and federal legislators. Between December 9, 2018, and May 1, 2019, Watters used those counterfeit driver licenses to successfully present approximately 265 counterfeit checks as payment at various stores in the Orlando area. When Watters presented a victim’s driver license number, he caused interstate wire communications to be transmitted from the store to a third-party payment provider to ascertain whether the driver license number previously had been associated with fraudulent payments. Watters caused total losses to the affected businesses in the amount of $53,156.43.
This case was investigated by the United States Secret Service, the Florida Department of Law Enforcement, and the Winter Garden Police Department. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.
North Carolina man sentenced to federal prison for distributing opioids through the Dark WebRead the Press Release
SAVANNAH, GA: A North Carolina man who ordered and illegally sold highly addictive opioids through the Dark Web has been sentenced to federal prison.
Wesley McKeehan, 34, of Salisbury, N.C., was sentenced to 26 months in prison after pleading guilty to Distribution of Oxycodone, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker also ordered McKeehan to serve three years of supervised release upon completion of his prison sentence. There is no parole in the federal system.
“Use of the Dark Web for buying and selling illegal drugs is a growing menace that worsens the deadly opioid crisis in our communities,” said Acting U.S. Attorney Estes. “Our law enforcement partners perform outstanding work in identifying and intercepting this illegal commerce, and holding digital drug dealers like McKeehan accountable.”
As described in court documents and testimony, agents with the Savannah Division of the Drug Enforcement Administration were alerted about a suspected contraband package being delivered to the business address of Eric Schmidt, 50, of Savannah. Agents searched the business after the package was delivered, and McKeehan later was charged after Schmidt admitted purchasing the opioid Oxycodone from McKeehan and allowing McKeehan to use his mailing address for importing the drugs from an overseas distributor via the Dark Web.
Schmidt was sentenced to probation after pleading guilty to an Information charging him with Acquiring, Possession of Controlled Substances by Misrepresentation, Fraud, Forgery, Deception, or Subterfuge.
“Mr. McKeehan thought he could hide his illegal operations through the use of the Dark Web,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Field Division. “But criminals who operate on the Dark Web should know that the DEA and its law enforcement partners will not rest until all of the distributors of this poison are caught and prosecuted.”
“The opioid crisis has devastated countless communities across the country, so when we are able to stop the flow of illegal opioids, it greatly benefits our communities and undoubtedly saves lives,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI will continue to use its resources and partnerships to identify and arrest those involved in this destructive crime, to protect our communities.”
“Illegal trading of opioids poses a significant health threat,” said Henry DeBlock, Area Port Director Savannah. “Through hard work, dedication and tireless efforts of Customs and Border Protection officers, we’ll continue to target shipping of illegal narcotics at our ports of entry before they can harm our communities.”
The case was investigated by the Drug Enforcement Administration Savannah Resident Office, Homeland Security Investigations, U.S. Customs and Border Protection, the Georgia Bureau of Investigation, the Savannah-Chatham Counter Narcotics Team, and the Glynn County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorney Matthew A. Josephson.
Navajo man sentenced to one and a half years in prison for involuntary manslaughter in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Blaine Morgan, 36, of Crownpoint, New Mexico, and an enrolled member of the Navajo Nation, was sentenced in federal court on Sept. 24 to one year and six months in prison for involuntary manslaughter in Indian Country.
Morgan pleaded guilty on May 25. In his plea agreement, Morgan admitted that on March 29, 2020, he was at a gathering where he and John Doe consumed alcohol. A dispute between the two escalated into a physical fight, during which Morgan stabbed John Doe. John Doe later died from the injuries inflicted by Morgan. The incident took place in Church Rock, New Mexico, on Navajo Nation.
Upon his release from prison, Morgan will be subject to three years of supervised release.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department. The Office of the United States Attorney for the District of New Mexico prosecuted the case.
Minneapolis Man Sentenced to 110 Months in Prison for Possessing a Stolen FirearmRead the Press Release
ST. PAUL, Minn. – A Minneapolis man was sentenced yesterday to 110 months in prison followed by three years of supervised release for possessing a stolen firearm.
According to court documents, on August 19, 2019, law enforcement received a tip that Antonio Tedell Hammonds-Ford, 29, was walking around a parking lot wearing a replica bullet proof vest and carrying a firearm. After reviewing surveillance footage, law enforcement confirmed the defendant’s identity and responded to the parking lot. When officers approached, Hammonds-Ford pulled a handgun from his waistband and dropped it one the ground and attempted to walk away. The firearm was a loaded Norinco 9mm semiautomatic pistol and Hammonds-Ford admitted that he knew the gun was stolen.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Wilhelmina M. Wright sentenced the defendant.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Minneapolis Police Department.
This case was prosecuted by Assistant U.S. Attorney Harry M. Jacobs.
Medical Device Company Pleads Guilty to Dealing in Adulterated Devices, Forfeits over $800,000 in Non-FDA Approved DevicesRead the Press Release
Miami, Florida – Affordable Healthcare Solutions, LLC, d/b/a Affordable Healthcare Solutions 1, LLC has pled guilty and was sentenced in South Florida federal court to Receiving Adulterated Devices in Interstate Commerce and Delivery for Pay with Intent to Defraud or Mislead, in violation of 21 USC 331(c) and 333(a)(2).
According to the facts admitted at the change of plea, on May 11, 2016, Special Agents with the United States Food and Drug Administration, Office of Criminal Investigations, executed a search warrant at Affordable Healthcare Solutions 1, LLC (Affordable Healthcare), a business managed by R.A. During the search, agents located and seized unapproved, foreign-market Supartz Euflexxa, Synvisc, Synvisc-One, and Orthovisc, which are prescription hyaluronic acid (HA) medical devices intended for the treatment of pain in osteoarthritis of the knee that must be injected by a doctor or other qualified health care professional. Because these prescription medical devices lacked FDA approval for distribution and use in the United States, they were adulterated.
Under 21 U.S.C. § 331(c), it is unlawful to receive in interstate commerce an adulterated device and to deliver or proffer delivery of such device to others for pay or otherwise. Reviews of the labeling conducted by FDA’s Center for Devices and Radiological Health on the injectable HA devices seized from Affordable Care confirmed various differences between the outer box and carton labels, patient information brochures, and instructions for use between the FDA-approved labeling for Supartz, Orthovisc, Synvisc, Synvisc-One and Euflexxa versus the labeling included with the unapproved versions being distributed by Affordable Healthcare. The value of the devices seized were in excess of $800,000.
As a result of the plea agreement, Affordable Healthcare Solutions, LLC pled guilty to a felony, was fined and ordered to forfeit the $837,000 worth of medical devices seized during the search warrant executed by Special Agents with the FDA.
Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida, and Special Agent in Charge, Justin C. Fielder, FDA Office of Criminal Investigations, Miami Field Office, announced the felony guilty plea and sentence.
“Medical device suppliers whose greed leads them to disregard FDA protocols and approval processes put the public in danger” said Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida. “These are serious crimes and, in our district, companies that put profit over patient safety will be held accountable.”
“FDA regulates the manufacturing and distribution of medical devices to help ensure the safety of American patients,” said Special Agent in Charge Fielder. “Today’s announcement should serve as a reminder of the FDA’s continued focus on companies that put profits ahead of the U.S. public health.”
FDA-OCI Miami investigated the case. Assistant U.S. Attorney Laurence Bardfeld is prosecuting it. Assistant U.S. Attorney Richard Brown is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
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McKees Rocks Man Charged with Attempted Coercion of a Minor for SexRead the Press Release
PITTSBURGH- A resident of McKees Rocks, 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 Ryan Peters, 31, formerly of McKees Rocks, PA, as the sole defendant.
According to the Indictment, from on or about August 26, 2021, until on or about September 13, 2021the indictment/information presented to the court, Peters 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 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(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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
McKees Rocks Drug Felon Admits Illegal Possession of a Stolen HandgunRead the Press Release
PITTSBURGH, PA - A former resident of McKees Rocks pleaded guilty in federal court to a charge of violating federal firearm laws, Acting United States Attorney Stephen R. Kaufman announced today.
Gamale Vaughn, age 45, pleaded guilty to one count before United States District Judge William S. Stickman.
In connection with the guilty plea, the court was advised that in June 2019, officers with the McKees Rocks Police Department executed a search warrant on the defendant’s residence. During the search, law enforcement recovered a Springfield Armory .45 caliber handgun, which was previously reported stolen. Following a waiver of his rights, the defendant admitted that the firearm was his. The Court was further advised that the defendant was previously convicted of a felony drug trafficking offense in Allegheny County. As a convicted felon, the defendant is prohibited under federal law from possessing firearms.
Judge Stickman scheduled sentencing for February 23, 2022 at 9:30 a.m. The law provides for a total sentence of ten years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the Court continued the defendant on bond.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The McKees Rocks Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Vaughn.
Massachusetts Man Sentenced to over 13 Years for Conspiring to Distribute FentanylRead the Press Release
PORTLAND, Maine: A Lawrence, Massachusetts man was sentenced yesterday in U.S. District Court in Portland for conspiring to distribute and possess with intent to distribute 400 grams or more of fentanyl, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge D. Brock Hornby sentenced Julio Mejia, 40, to 162 months in prison, five years of supervised release and a $2,000 fine. Mejia pleaded guilty on November 21, 2019.
According to court records, between April 2016 and March 2018, Mejia conspired with others from Lawrence, Massachusetts; New Hampshire; and Maine to distribute fentanyl and cocaine. Mejia acquired the drugs in Lawrence, and they were then sold to others for distribution throughout New England.
The U.S. Drug Enforcement Administration’s Portsmouth Tactical Diversion Squad, the Sanford Police Department, the Maine State Police, the New Hampshire State Police, the Hampton (New Hampshire) Police Department and the North Andover (Massachusetts) Police Department investigated the case.
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.
Massachusetts Man Sentenced for Unlawfully Possessing FirearmsRead the Press Release
PORTLAND, Maine: A Woburn, Massachusetts man was sentenced today in federal court for being an unlawful user of controlled substances in possession of firearms, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge George Z. Singal sentenced Sauma Brata Deb, 27, to 12 months and one day in prison and two years of supervised release. Deb pleaded guilty on August 5, 2021.
According to court records, between March 6, 2020, and November 16, 2020, Deb was arrested on five separate occasions in either New Hampshire or Massachusetts. During each of these arrests, drugs or drug-use paraphernalia (or both) were recovered from him. On January 29, 2021, he attempted to sell a firearm to the Kittery Trading Post. When he was arrested, two firearms were recovered from him and additional items of drug-use paraphernalia were recovered from his car. It is against federal law for unlawful users of drugs to possess firearms.
The Maine and New Hampshire offices of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kittery Police Department investigated the case as part of the Department of Justice’s Project Safe Neighborhoods (PSN) initiative.
PSN is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, community leaders and other stakeholders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. PSN is coordinated by the U.S. Attorneys’ Offices in the 94 federal judicial districts throughout the 50 states and U.S. territories. PSN is customized to account for local violent crime problems and resources. Across all districts, PSN follows four key design elements of successful violent crime reduction initiatives: community engagement, prevention and intervention, focused and strategic enforcement, and accountability.
Manchester Man Found Guilty of Sex Trafficking OffensesRead the Press Release
DES MOINES, IA – On September 24, 2021, a federal jury convicted Darrius Decnan Redd, age 33, of Manchester, of sex trafficking an adult victim by force, fraud, and coercion; facilitation of prostitution; and distribution of a controlled substance to a person under the age of 21. Redd faces a sentence of at least fifteen years in prison and up to life. Redd was ordered to remain detained pending his sentencing in federal court.
According to court documents and evidence presented at the four and a half-day trial, Redd used deceptive and coercive tactics as well as physical force to compel a victim to engage in sex acts in exchange for money. Redd kept all of the proceeds from the victim’s sex acts. Redd trafficked the victim in Iowa City, Cedar Rapids, Waterloo, Clive, and surrounding areas in March 2020. Redd also supplied the victim with a controlled substance and posted advertisements for paid sex acts with the victim and other women on an escort website. Testimony and evidence revealed Redd had distributed controlled substances to other women and had attempted to recruit and/or compel other women to engage in commercial sex acts for his monetary gain.
Sentencing is scheduled for January 28, 2022, in Des Moines, before United States District Court Judge Rebecca Goodgame Ebinger.
Acting U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.
This investigation was conducted by the Iowa Division of Criminal Investigation, Clive Police Department, University of Iowa Police Department, Iowa City Police Department, Manchester Police Department, Iowa Department of Corrections, and the Iowa Division of Narcotics Enforcement. The Des Moines Police Department and the Federal Bureau of Investigation participated in trial presentation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Man Sentenced for Role in International Human Smuggling ConspiracyRead the Press Release
A Bangladeshi national was sentenced today to 46 months in prison for his role in a scheme to smuggle undocumented individuals from Mexico into the United States.
According to court documents, between March 2017 and June 2019, Mohamad Milon Hossain, 41, a Bangladeshi national formerly residing in Tapachula, Mexico, conspired with and assisted human smugglers operating out of Bangladesh, South and Central America, and Mexico to bring numerous undocumented individuals to the U.S. border in exchange for payment. Hossain operated out of Tapachula where he maintained a hotel that housed the individuals on their way to the United States. Hossain provided plane tickets and other assistance for the individuals to travel from Tapachula to Monterrey, Mexico, where co-conspirator Moktar Hossain assisted their illegal crossing into the United States.
“This human smuggling conspiracy operated on a global scale and endangered the lives of Bangladeshi migrants,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The Justice Department will continue working with our law enforcement partners here and abroad to bring human smugglers like Hossain to justice and to disrupt these criminal networks that unlawfully bring migrants from across the world into the United States.”
“This criminal placed profit before life,” said Acting Assistant U.S. Attorney Jennifer B. Lowery of the Southern District of Texas (SDTX). “Human smugglers like Hossain often put migrants in dangerous situations, many leading to serious injury and even death. The SDTX is no stranger to this issue and will fervently pursue the battle, holding accountable not only the transporters, but any individuals who provided assistance along the way.”
“Today’s sentencing is a great example of how Homeland Security Investigations (HSI) uses its worldwide resources and interagency partnerships to bring international criminals like Mohamad Milon Hossain to justice in the United States,” said Special Agent in Charge Shane Folden of HSI San Antonio. “Hossain was a key facilitator and smuggler of Bangladeshi nationals and his actions put our national security at risk. HSI is committed to working with its domestic and international partners to combat this type of crime throughout the globe.”
This case was investigated by HSI Laredo, with assistance from the HSI Human Smuggling Unit, HSI Mexico City, HSI Houston, HSI Calexico, HSI Monterrey, U.S. Customs and Border Protection (CBP) Office of Field Operations, CBP Border Patrol and the U.S. Marshals Service. This investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Trial Attorneys Erin Cox and James Hepburn of the Criminal Division’s Human Rights and Special Prosecutions Section prosecuted this case with assistance from the U.S. Attorney’s Office for the Southern District of Texas.
Attorney General Merrick B. Garland established Joint Task Force Alpha to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico and the countries of Guatemala, El Salvador, and Honduras. JTFA consists of federal prosecutors and attorneys from U.S. Attorney’s Offices along the Southwest Border (District of Arizona, Southern District of California, Southern District of Texas, and Western District of Texas), from the Criminal Division and the Civil Rights Division, along with law enforcement agents and analysts from U.S. Immigration and Customs Enforcement’s HSI and CBP. The FBI and the Drug Enforcement Administration are also part of the Task Force.
Man Convicted of Murder in Manhattan Federal Court for June 2000 Fatal ShootingRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that RALPH BERRY was found guilty by a unanimous Manhattan jury for the murder of Caprice Jones in the vicinity of 751 East 161 Street, Bronx, New York. BERRY will be sentenced before the Honorable U.S. District Judge Alison J. Nathan, who presided over the jury trial.
U.S. Attorney Audrey Strauss said: “In June of 2000, Caprice Jones was senselessly gunned down, the unintended victim of drug-dealer Ralph Berry and a co-defendant, who tragically missed their mark when trying to murder a rival dealer. Instead, their bullet struck Jones, who died after suffering a years-long spinal injury. This case typifies the inherent danger of the drug trade, which oftentimes leaves innocent victims in its wake. I commend the career prosecutors and agents of this Office in their partnership with the outstanding detectives of the NYPD for their determination in bringing closure in the cold case.”
According to the Indictment and other evidence presented at trial in federal court:
In the summer of 2000, BERRY was the head of a violent drug crew that operated in the McKinley Housing Development in the Bronx, New York. On June 21, 2000, BERRY ordered one of his subordinates to shoot a rival drug dealer with whom BERRY had been feuding over drug territory. That subordinate followed BERRY’s order and fired multiple shots into a Father’s Day barbecue being held on the McKinley Houses basketball courts. Caprice Jones, an innocent bystander who was not involved in the drug dispute, was struck in the spine by one of the bullets. The gunshot injury Jones sustained that day left him paralyzed from the waist down and ultimately caused his death in November 2010, at the age of 42.
* * *
BERRY, 54, was convicted of murder through use of a firearm, which carries a maximum penalty of life in prison and a mandatory minimum sentence of five years in prison, murder in connection with a drug trafficking crime, which carries a maximum penalty of life in prison and a mandatory minimum sentence of 20 years in prison, and murder in aid of a racketeering enterprise, which carries a mandatory minimum sentence of life in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for information purposes only, as any sentencing of the defendants will be determined by the judge.
Ms. Strauss praised the outstanding work of the New York City Police Department and the Special Agents of the United States Attorney’s Office for the Southern District of New York.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Dominic A. Gentile, Maurene Comey, Adam S. Hobson, and Jacob R. Fiddelman are in charge of the prosecution.
Lynn Man Indicted on Firearms OffensesRead the Press Release
BOSTON – A Lynn man has been indicted in connection with illegally possessing and selling firearms.
Jufrandy Montano, 32, was indicted on one count of dealing in firearms without a license, one count of being a felon in possession of a firearm and ammunition and one count of possession of an unregistered firearm. Following an initial appearance today before U.S. District Court Magistrate Judge Judith G. Dein, Montano was returned to the State of Maine where he is currently serving a sentence on unrelated state charges.
According to the indictment, Montano sold three firearms between March 4 and March 19, 2020. Additionally, on March 4, 2020, it is alleged that Montano was in possession of a 12-gauge sawed-off shotgun that was not registered to him in the National Firearms Registration and Transfer Records. Montano does not possess a license to import, manufacture, or deal firearms and is prohibited from possessing firearms due to a prior felony conviction.
The charge of dealing in firearms without a license provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. 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. The charge of possession of an unregistered firearm provides for a sentence of up to 10 years in prison, three years supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement. Assistant U.S. Attorney Benjamin A. Saltzman of Mendell’s Major Crimes Unit is prosecuting the case.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lowell Money Manager Indicted for Defrauding Clients out of Millions of DollarsRead the Press Release
BOSTON – A Lowell man was arrested today in connection with a scheme to allegedly defraud his clients out of their life savings.
Steven Xigoros, 54, was indicted on one count of investment adviser fraud, four counts of wire fraud, two counts of aggravated identity theft, two counts of unlawful monetary transactions and one count of filing false tax returns. Xigoros will make an initial appearance in federal court in Boston this afternoon.
The indictment alleges that between 2013 and 2020, Xigoros advised his clients to entrust their money to him to make various investments and to purchase securities. Xigoros then used those funds himself, including to make payments against his gambling debts. In order to deceive his clients about the fact that he had stolen their money, it is alleged that Xigoros made a series of false statements to his clients about where their money was invested and when he would repay it. He also allegedly used one client’s name and Social Security number to open a bank account and wrote a check on that account to another client, knowing the check would bounce. According to the indictment, in total, Xigoros defrauded his clients of approximately $2.1 million.
The charge of investment adviser fraud provides for a sentence of up to five 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 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 greater. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutively to the sentence imposed for wire fraud, one year of supervised release and a fine of $250,000 or twice the gross gain or loss. The charge of unlawful monetary transactions provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000 or twice the amount of the criminally derived property involved in the financial transaction. The charge of filing false tax returns provides for a sentence of up to three years in prison, one year of supervised release and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Sara Miron Bloom 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.
Long Island Man Sentenced to 13 Years’ Imprisonment for Drug Trafficking and Firearms OffensesRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Ira Hall was sentenced by United States District Judge Joanna Seybert to 13 years’ imprisonment for distributing cocaine and the unlawful use of a firearm in furtherance of drug trafficking in August 2017. When Hall pleaded guilty in June 2021, he also admitted to distributing fentanyl that caused the death of a 27-year-old resident of Glen Cove, New York in May 2017.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, and William Whitton, Chief, Glen Cove Police Department, announced the sentence.
“Today’s sentence ensures that the defendant will serve a lengthy prison term for selling dangerous drugs while carrying a firearm, and also for callously causing the fentanyl overdose death of a resident of this district,” stated Acting U.S. Attorney Kasulis. “This Office, together with our federal and local partners, will continue to prosecute and hold accountable those who contribute to the opioid epidemic and overdose deaths in our communities.” Ms. Kasulis thanked the Drug Enforcement Administration for its assistance on the case.
“This investigation and arrest is an example of the Glen Cove Police Department’s continuing commitment to combat the sale of illegal drugs and to identify and arrest those responsible for overdose deaths occurring in our community,” stated Glen Cove Chief Whitton.
On May 30, 2017, Hall sold a quantity of fentanyl to a coconspirator who then provided the fentanyl to the victim, who suffered a fatal overdose. In August 2017, while investigating the overdose death, detectives of the Glen Cove Police Department arrested Hall after he sold cocaine in a Taco Bell parking lot while carrying a loaded .38 caliber Smith & Wesson revolver. A search warrant of Hall’s residence the following day led to the seizure of additional rounds of .38 caliber ammunition.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles N. Rose and Lara Treinis Gatz are in charge of the prosecution.
The Defendant:
IRA HALL (also known as “Streets”)
Age: 33
Glen Cove, New YorkE.D.N.Y. Docket No. 18-CR-239 (JS)
Laurel Narcotics Trafficker Pleads Guilty to Bringing Large Quantities of Fentanyl, Cocaine and Marijuana from California to MarylandRead the Press Release
Baltimore, Maryland – Michael Fisher, a.k.a. Mark Wilson, age 47, of Laurel, Maryland, pleaded guilty on September 24, 2021, to conspiracy to distribute and possess with intent to distribute fentanyl, cocaine, and marijuana and distribution and possession with intent to distribute fentanyl.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Superintendent Colonel Woodrow W. Jones III of the Maryland State Police; Postal Inspector in Charge Daniel A. Adame of the U.S. Postal Inspection Service - Washington Division; and Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office.
“Our law enforcement team here in Maryland is focused on prosecuting individuals like Michael Fisher who are importing large quantities of fentanyl and other dangerous drugs into the state,” said Acting United States Attorney Jonathan Lenzner. “The members of this nationwide narcotics conspiracy were responsible for the distribution of hundreds of kilograms of dangerous drugs. This investigation reflects the positive impact that law enforcement can have on our communities, not only here in Maryland but across the country.”
According to his guilty plea, since November 2019, the Maryland State Police (“MSP”), Drug Enforcement Administration (“DEA”), United States Postal Inspection Service (“USPIS”) were investigating a drug trafficking conspiracy involving Michael Fisher (a.k.a. Mark Wilson) who was distributing fentanyl, cocaine, and marijuana in the Baltimore/Washington Metropolitan areas. During the investigation, investigators obtained court-authorized wiretaps of Fisher and Co-Conspirator 1 in which they discussed the distribution of fentanyl, cocaine, and marijuana with each other and with other individuals. Investigators also conducted surveillance during which they observed drug transactions by both the Defendant and Co-Conspirator 1.
During the conspiracy, Fisher and Co-Conspirator 1 traveled to California multiple times to obtain kilograms of cocaine and fentanyl. Once in possession of the narcotics, Fisher or Co-Conspirator 1 used the U.S. Mail to ship the narcotics back to Maryland for distribution.
In May 2020, during drug interdiction activities at a Unite States Postal Service processing and distribution center in Capitol Heights, Maryland, postal inspectors interdicted multiple U.S. Mail parcels, including a parcel bound for a location in Laurel, Maryland that was identified as a location maintained by Fisher. On May 22, 2020, the Honorable Charles B. Day authorized a search warrant for this parcel, and investigators recovered approximately 2 kilograms of cocaine from the parcel.
Between June 1, 2020 and June 3, 2020, investigators intercepted several telephone calls between Fisher and Co-Conspirator 2. Based on the content of the intercepted phone calls, investigators believed that Fisher and Co-Conspirator 2 were arranging a drug transaction. On June 3, 2020, investigators intercepted a call between Fisher and Co-Conspirator 2 during which they agreed to meet in Hanover, Maryland. During surveillance, investigators observed Co-Conspirator 2 exit his vehicle, walk to Fisher’s vehicle, and retrieved an object from Fisher. The object was later determined to be a heat-sealed bag containing approximately 501 grams of fentanyl. Co-Conspirator 2 walked back to his vehicle and placed the object into the vehicle’s trunk.
Later that day, at the request of investigators, Troopers with MSP conducted a traffic stop of Co-Conspirator 2’s vehicle and located a heat-sealed bag containing a pink powdery substance, later revealed to be fentanyl with a net weight of approximately 501.9 grams. Fisher admits that he distributed the fentanyl to Co-Conspirator 2 during their earlier meeting that day in Hanover, Maryland.
A few months later, on August 6, 2020, USPIS received an alert that two Priority Mail parcels had been sent from the El Segundo Branch Post Office in El Segundo, CA on the previous day, August 5, 2020. The parcels were bound for locations in Maryland associated with Fisher and the conspiracy. These two parcels were seized by investigators in Maryland before they were delivered. On August 13, 2020, the Honorable Thomas M. DiGirolamo authorized a search and seizure warrant for both of the parcels. One parcel was found to contain approximately 2,086 grams of cocaine and the second parcel contained approximately 2,110 grams of fentanyl. Investigators obtained video surveillance from the El Segundo Branch Post Office, which showed Co-Conspirator 1 at the post office at the time the parcels were mailed.
On August 4, 2020, court-authorized cell phone location data showed Co-Conspirator 1’s cell phone in the area of 3828 North Peck Rd, El Monte, California. On August 13, 2020, investigators located Fisher driving along California Interstate 15 South, in a rented Nissan Sentra. Investigators followed Fisher to the Northgate Market parking lot located at 3828 North Peck Rd, El Monte, California—the same location where Co-Conspirator 1’s cell phone was located several days earlier. After circling the parking lot several times, Fisher parked. Shortly thereafter, investigators observed a white Honda SUV with a female driver and a male passenger park next to Fisher’s vehicle. Fisher exited his vehicle, removed a box from the trunk of his vehicle, and placed the box inside of the Honda SUV. Fisher returned to his vehicle and departed, and the two occupants in the Honda departed in a different direction. Investigators conducted a traffic stop of the Honda shortly thereafter and obtained consent to search the vehicle from the driver and from the passenger, Co-Conspirator 3. After searching the vehicle, investigators located the box that Fisher had placed in the Honda. The box contained several packages of bulk currency, totaling approximately $190,020.
Co-Conspirator 3 then gave investigators consent to search his residence. A search of the residence revealed two duffle bags containing approximately 30 kilograms of cocaine, along with two additional duffle bags that contained narcotics proceeds. The amount of currency located in the residence totaled approximately $193,980, not including the approximately $190,020 that the Defendant provided to Co-Conspirator 3 earlier that day.
On August 14, 2020, the Honorable Thomas M. DiGirolamo authorized search warrant for the six locations in Maryland. On August 17, 2020, the Honorable Cam Ferenbach, United States Magistrate Judge for the District of Nevada, authorized a search warrant for a residence in Las Vegas, Nevada. These search warrants were executed on August 17, 2020. In addition, on September 1, 2020, investigators executed a search warrant at a house in Hanover, Maryland, which was an additional residence used by Fisher. During the execution of the search warrants, investigators seized numerous firearms, kilogram quantities of narcotics, and large amount of U.S. Currency.
Investigators also executed search warrants on cellular telephones seized from Fisher and others. One of Fisher’s cell phones contained photographs of a drug ledger, which was sent to Fisher from a source of supply of narcotics. The ledger confirms that between November 2019 and May 2020, the conspiracy obtained more than 115 kilograms of cocaine and 2 kilograms of fentanyl from California and mailed it back to Maryland for distribution. In several instances, the dates and quantities on the ledger correspond to CCTV footage of Fisher in a Los Angeles Post Office mailing packages back to Maryland. For example, the ledger indicates that Fisher obtained 10 kilograms of cocaine on December 11, 2019, which corresponds to CCTV footage of Fisher on December 11, 2019 in a Los Angeles-area Post Office personally mailing 5 packages to Maryland. In total, between July 2019 and August 2020, the conspiracy was responsible for mailing approximately 121 parcels from Los Angeles-area Post Offices to locations in Maryland. The narcotics accounted for in the drug ledger represent only 47 of those parcels.
In total, during this investigation, investigators seized 15 firearms—9 firearms from Fisher and 6 firearms from Co-Conspirator 1—along with approximately 35 kilograms of cocaine, approximately 6.5 kilograms of fentanyl, and approximately 50 kilograms of marijuana. In addition, investigators seized approximately $1,501,308, which Fisher admits constituted proceeds from the sale of narcotics.
Fisher and the Government have agreed that, if the court accepts the guilty plea, Fisher will be sentenced to between 12 and 15 years in federal prison. U.S. District Judge Stephanie A. Gallagher has not scheduled a sentencing hearing at this time.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The overdose crisis continues to devastate our states and local communities. If you believe you may need substance use disorder treatment or recovery services, please call 1800-662-HELP (4357). You may also visit the United States Attorney’s Office for the District of Maryland for further information and resources on opioid awareness at /media/1138691/dl?inline.
Acting United States Attorney Jonathan F. Lenzner commended the MSP, USPIS, and DEA for their work in the investigation. Mr. Lenzner also thanked the Los Angeles Police Department, Los Angeles DEA, Assistant U.S. Attorney Anatoly Smolkin, and Special Assistant U.S. Attorney Christopher J. Romano, who are prosecuting the case.
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Justice Department Resolves Lawsuit Alleging Disability-Based Discrimination at 38 Multifamily Housing Complexes in North CarolinaRead the Press Release
The Justice Department announced that Mills Construction Company Inc. and several related entities have agreed to pay $275,000 to settle claims that they violated the Fair Housing Act and the Americans with Disabilities Act (ADA) by failing to build 38 multifamily housing complexes in North Carolina with required accessible features for people with disabilities. As part of the settlement, the defendants also agreed to make extensive retrofits to remove accessibility barriers at the complexes.
The settlement, which must be approved by the U.S. District Court for the Eastern District of North Carolina, requires the defendants to pay all costs related to the retrofits, $225,000 into a settlement fund to compensate individuals harmed by the inaccessible housing and a civil penalty of $50,000 to the government.
“For over 30 years, the Fair Housing Act has required that new housing complexes be accessible to individuals with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “By requiring modifications to the properties, this settlement will reduce substantial barriers faced by people with disabilities in their own homes and will advance the Fair Housing Act’s promise of housing that is accessible for all.”
Under the settlement, the defendants will, among other things, replace steeply-sloped walkways so residents can reach mailboxes and entrances to the properties, remove obstacles from pedestrian pathways, install lever handles on doors and widen doorways to provide sufficient space for individuals who use wheelchairs. The complexes at issue, many of which were built with financial assistance from the federal government’s Low-Income Housing Tax Credit program, are:
- Perry Lane Apartments, Arden, Columbus County;
- Dunbar Place Apartments, Asheville, Buncombe County;
- Smith Creek Apartments, Bermuda Run, Davie County;
- Emerald Forest Apartments, Biscoe, Montgomery County;
- Willow Oak Run Apartments, Charlotte, Mecklenburg County;
- Soco Creek Village Apartments, Cherokee, Swain/Jackson Counties;
- River Run Apartments, Chocowinity, Beaufort County;
- Sampson Square Apartments, Clinton, Sampson County;
- Long Creek Apartments, Dallas, Gaston County;
- Long Creek II, Dallas, Gaston County;
- Lovett Square Apartments, Durham, Durham County;
- Savannah Place Apartments, Durham, Durham County;
- Sherwood Park Apartments, Durham, Durham County;
- Filbert’s Creek Apartments, Edenton, Chowan County;
- Lakeside Apartments, Elizabeth City, Pasquotank County;
- Enfield Pointe Apartments, Enfield, Halifax County;
- Myrtle Place Apartments, Goldsboro, Wayne County;
- Woodlane Street Apartments, Granite Falls, Caldwell County;
- Kittrell Place Apartments, Greenville, Pitt County;
- Best Village I Apartments, Kinston, Lenoir County;
- Best Village II Apartments, Kinston, Lenoir County;
- Forest Hill Apartments, Lexington, Davidson County;
- Fairview Manor Apartments, Lillington, Harnett County;
- Fairview Pointe Apartments, Lillington, Harnett County;
- Northeast Pointe Apartments, Lumberton, Robeson County;
- Mocksville Pointe Apartments, Mocksville, Davie County;
- Sandy Ridge Apartments, Raeford, Hoke County;
- Chestnut Hills Apartments, Raleigh, Wake County;
- Hodges Creek Apartments, Raleigh, Wake County;
- Marsh Creek Apartments, Raleigh, Wake County;
- Milburnie Road Apartments, Raleigh, Wake County;
- West Oaks Apartments, Raleigh, Wake County;
- Chapel Ridge Apartments, Roanoke Rapids, Halifax County;
- Chapel Ridge Manor Apartments, Roanoke Rapids, Halifax County;
- Rollinwood Manor Apartments, Rocky Mount, Edgecombe County;
- Firetower Crossing Apartments, Sanford, Lee County;
- Sandhill Manor Apartments, Sanford, Lee County; and
- Tabor Landing Apartments, Tabor City, Columbus County.
The Mills defendants cooperated fully with the department’s investigation.
Individuals who believe they or someone they know may have had difficulties because of the inaccessible conditions at any of these properties should e-mail the Justice Department at [email protected] or leave a message at 1-833-591-0291, selecting option 1 for English, selecting option 4 for housing accessibility for persons with disabilities, and selecting option 3 for Mills.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. This law requires that multifamily housing buildings with four or more units constructed after March 13, 1991, have basic accessible features. Enacted in 1990, the Americans with Disabilities Act requires that places of public accommodation, such as rental offices at multifamily housing complexes constructed after Jan. 26, 1993, be accessible to persons with disabilities.
More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals may report disability discrimination or other forms of housing discrimination by calling the Justice Department at 1-833-591-0291, or submitting a report online at www.civilrights.justice.gov. Individuals also may report discrimination by contacting the Department of Housing and Urban Development at 1-800-669-9777, or by filing a complaint online.
Jury Convicts Madison County Man of Drug ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Ernest Shaw, Sr. of New Woodstock, New York, was convicted yesterday of conspiracy to distribute and possess with intent to distribute in excess of five kilograms of cocaine, and 28 grams of cocaine base (crack) following a five-day jury trial in United States District Court in Syracuse, announced Acting United States Attorney Antoinette T. Bacon and Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
During the trial, evidence was presented that proved Ernest Shaw, Sr. conspired with others from September 2017 to September 25, 2019, to distribute and possess with intent to distribute cocaine and cocaine base in the Syracuse area. As part of the verdict, jurors unanimously found that the defendant’s part in the conspiracy involved in excess of 5 kilograms of cocaine and 28 grams of cocaine base (crack). The trial evidence included the seizure of over 171 grams of powder cocaine and over 80 grams of crack cocaine from a stash house in Nedrow, New York used by Shaw to store drugs prior to distributing them to drug dealers and drug users in the Syracuse area. Following the jury verdict yesterday, Ernest Shaw, Sr. agreed to the forfeiture of $36,335.00 in cash seized as drug proceeds by DEA during the execution of a search warrant at his home in New Woodstock, New York on September 25, 2019. Shaw also agreed to a forfeiture money judgment in the amount of $105,000.00 for unrecovered proceeds he acquired during the conspiracy through the sale of cocaine and cocaine base (crack).
Ernest Shaw, Sr. was previously convicted of conspiracy to distribute and possess with intent to distribute cocaine in federal court in Syracuse in March 2007. He pled guilty and was sentenced to serve 41 months in federal prison in that case.
Sentencing is scheduled for February 3, 2022 in Syracuse, New York, at which time the defendant faces a mandatory minimum sentence of 15 years and a maximum sentence of life imprisonment, a fine of up to $20,000,000.00, and a period of supervised release of at least 10 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the United States Drug Enforcement Administration (DEA)-Syracuse Resident Office, which includes Task Force Officers from the City of Auburn Police Department, the City of Syracuse Police Department, the New York State Police, and the Oneida County Sheriff’s Office. Other Agencies that assisted in this investigation included the New York State Police, the Onondaga County Sheriff’s Office, Investigators from the Onondaga County District Attorney’s Office, and the U.S. Department of Homeland Security-Homeland Security Investigations (HSI). The case is being prosecuted by Assistant U.S. Attorney Thomas Sutcliffe and Assistant U.S. Attorney Richard Southwick.
Jury Convicts Louisville Man of Child Exploitation OffensesRead the Press Release
LOUISVILLE, KY. – A federal jury convicted Joseph Samir Zakhari on September 24, 2021, of multiple child exploitation offenses following a five-day trial held before United States District Judge Rebecca Grady Jennings.
According to court documents and evidence presented at trial, the charges against Zakhari, age 34, of Louisville, Kentucky, stemmed from the October 2019 joint federal, state, and local online undercover investigation – “Operation Gabbi Doolin.” During the course of this investigation, and while authorized by the Kentucky Attorney General to conduct undercover investigations on the internet, a detective posed as a 15-year-old girl on a social media app with the username “boredcrbgirl.” On October 6, 2019, a person with the username “jzakhari,” later identified as Joseph Samir Zakhari, contacted boredcrbgirl. Zakhari told boredcrbgirl that he was 32 and asked her age. Boredcrbgirl responded that she was 15. A conversation then developed that was made sexual by Zakhari, and, from October 6 until October 8, Zakhari requested details about boredcrbgirl’s sexual history, repeatedly talked about sex acts he wanted to engage in with boredcrbgirl, and asked for sexual images of boredcrbgirl. Zakhari also sent sexually explicit images of himself to boredcrbgirl and requested to meet in person so that the two could engage in sex acts.
On October 8, 2019, Zakhari sent an Uber to pick up boredcrbgirl to bring her to his condominium, with the stated purpose of the trip being for the two to engage in sex acts. Undercover law enforcement officers followed a decoy law enforcement officer in the Uber to the destination specified by Zakhari. Upon arrival, the decoy sent a message at 5:16 p.m., “I’m outside,” to which Zakhari responded “coming down.” The decoy got out of the Uber and stood in front of the provided address. Shortly thereafter, Joseph Samir Zakhari, opened the door and invited her in. Law enforcement officials subsequently arrested Zakhari.
The jury found Zakhari guilty of attempted online enticement of a minor, attempted transfer of obscene material to a minor, and attempted production of child pornography.
Acting United States Attorney Michael A. Bennett made the announcement.
Sentencing is scheduled for January 11, 2022, at 10:00 a.m. Under federal law, Zakhari is facing a mandatory sentence of not less than fifteen years’ imprisonment. There is no parole in the federal system.
Assistant United States Attorney Jo E. Lawless is prosecuting the case. The joint investigation was conducted by the United States Secret Service and Kentucky Attorney General’s Office with assistance from the Louisville Metro Police Department, United States Marshals Service, and Kentucky State Police.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Judge sentences St. Louis man for drug/fraud chargesRead the Press Release
ST. LOUIS – United States District Judge Stephen R. Clark today sentenced Derek J. Petty to a term of 91 months in federal prison. Petty was convicted by a jury in April of one count of Conspiracy to Obtain a Controlled Substance by Fraud. The evidence presented at trial proved that Petty’s co-conspirator, Sierra Price, worked at Delmar Primary Care Associates, a small medical practice located in St. Louis. Price wrote and signed more than ten prescriptions for Oxycodone in Petty’s name between April 2018 and December 2018. None of the prescriptions had been authorized by the doctor. The scheme continued unabated because Price, as an employee of Delmar Primary Care Associates, was able to intercept telephone calls from Schnucks’ pharmacists attempting to verify the prescriptions. Before they were caught, Petty and Price obtained over 1,500 oxycodone pills unlawfully.
At the time of the conspiracy, Petty was on supervised release for 2016 convictions for Conspiracy to Distribute Heroin, Distribution of Heroin, Possession of a Firearm in Furtherance of a Drug Trafficking Crime, and Felon in Possession of a Firearm. As part of his guilty plea in the 2016 case, Petty admitted to selling heroin to an undercover police officer, and to selling a dozen firearms (5 of which were stolen) to an undercover ATF agent.
Price, who testified against Petty at trial and who had no previous criminal history, admitted her role in the conspiracy and was sentenced to a term of probation.
United States Attorney Sayler Fleming commended the work of the Drug Enforcement Administration Tactical Diversion Unit and Schnucks’ pharmacists. “We are grateful for the skilled professionals at Schnucks who identified these prescriptions as potentially fraudulent and made every effort to verify their authenticity. Had these pharmacists not continued to question the legitimacy of these prescriptions, this scheme could well have continued undetected for many months.”
This case was investigated by the Drug Enforcement Administration.
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Indictment Unsealed Against Six Individuals and Foreign Financial Service Firm for Tax Evasion ConspiracyRead the Press Release
An indictment was unsealed today in New York, New York, that charges offshore financial service executives and a Swiss financial services company with conspiracy to defraud the IRS by helping three large-value U.S. taxpayer-clients conceal more than $60 million in income and assets held in undeclared, offshore bank accounts and to evade U.S. income taxes.
According to the indictment, from 2009 to 2014, Ivo Bechtiger, Bernhard Lampert, Peter Rüegg, Roderic Sage, Rolf Schnellmann, Daniel Wälchli and Zurich, Switzerland-based Allied Finance Trust AG allegedly defrauded the IRS by concealing income and assets of certain U.S. taxpayer clients with undeclared bank accounts located at Privatbank IHAG (IHAG), a Swiss private bank in Zurich, Switzerland, and elsewhere. In order to assist those clients, the defendants and others allegedly devised and used a scheme called the “Singapore Solution” to conceal the bank accounts of the U.S.-based clients, their assets, and their income from U.S. authorities. In furtherance of the scheme, the defendants and others allegedly conspired to transfer more than $60 million from undeclared IHAG bank accounts of the three U.S. clients through a series of nominee bank accounts in Hong Kong and other locations before returning the funds to newly opened accounts at IHAG, ostensibly held in the name of a Singapore-based asset manager. The U.S. clients allegedly paid large fees to IHAG and others to help them conceal their funds and assets.
“Prosecuting offshore tax evasion remains one of the Tax Division’s highest priorities,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “Taxpayers contemplating hiding money abroad – and the foreign bankers, attorneys and finance professionals who design and execute strategies to assist their evasion – should know that the Tax Division and IRS have the investigative resources and expertise to unravel even the most elaborate schemes.”
“As alleged, the individual defendants and the Swiss firm Allied Finance conspired to defraud the IRS by assisting U.S. taxpayers in avoiding their tax obligations,” said U.S. Attorney Audrey Strauss for the Southern District of New York. “They allegedly did this through an elaborate scheme that involved concealing customer assets at a Swiss private bank through nominee bank accounts in Hong Kong and elsewhere, with funds returning to the private bank in the name of a Singapore firm. One such U.S. customer, Wayne Chinn, pleaded guilty to his participation in the so-called ‘Singapore Solution,’ forfeited more than $2 million to the United States, and awaits sentencing for his admitted crime.”
If convicted, the defendants face a maximum penalty of five years in prison, supervised release, and monetary penalties, and the corporate defendant faces monetary penalties. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Also unsealed today was the guilty plea of Wayne Franklyn Chinn, of Vietnam and San Francisco, California, one of the U.S. taxpayer-clients, who participated in the Singapore Solution scheme.
According to court documents filed in relation to his guilty plea, from 2001 through 2018, Chinn concealed approximately $5 million in undisclosed and untaxed income. During this period, Chinn held accounts in nominee names at Privatbank IHAG. Beginning in 2010, Chinn wired funds from these offshore accounts through nominee accounts in Hong Kong before returning them to newly opened accounts at IHAG held in the name of a Singapore based trust company acting on behalf of two foundations created to conceal Chinn’s ownership of the accounts. Chinn subsequently transferred the funds out of Switzerland to undeclared accounts in Singapore. Chinn did not file any tax returns or disclose his foreign bank accounts during the years at issue.
Chinn pleaded guilty to one count of tax evasion which carries a maximum penalty of five years in prison. Chinn also consented to the civil forfeiture of 83% of the funds held in five accounts at two Singapore banks, which resulted in the successful forfeiture and repatriation to the United States of approximately $2.2 million. The civil forfeiture proceeding is United States of America v. Certain Funds on Deposit in Various Accounts, 20 Civ. 3397 (LJL).
Chinn is scheduled to be sentenced on Nov. 19, and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; U.S. Attorney Audrey Strauss for the Southern District of New York; and Chief James Lee of IRS-Criminal Investigation made the announcement. The Department of Justice Office of International Affairs, the Singapore Attorney-General’s Chambers and the Commercial Affairs Department of the Singapore Police Force provided significant assistance in this matter.
The IRS-Criminal Investigation Division is investigating the case.
Senior Litigation Counsel Nanette Davis and Trial Attorney Sean Green of the Justice Department’s Tax Division and Assistant U.S. Attorney Olga Zverovich of the U.S. Attorney’s Office for the Southern District of New York are prosecuting the case.
Illinois woman admits to counterfeit chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Clarissa Mosley, of Chicago, Illinois, has admitted to a counterfeit charge, Acting United States Attorney Randolph J. Bernard announced.
Mosley, 24, pleaded guilty to one count of “Possession of Counterfeit Obligations.” Mosley admitted to having 69 $100 counterfeit bills in December 2020 in Ritchie County.
Mosley faces up to 20 years of incarceration and a fine of up to $250,000 fine. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The United States Secret Service, the Ritchie County Sheriff’s Office, and the South Charleston Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Hudson County Man Admits Assaulting U.S. Postal Service EmployeeRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man today admitted assaulting a U.S. Postal Service employee by pointing a handgun at the employee, Acting U.S. Attorney Rachael A. Honig announced.
Joseph Cartagena, 34, of Jersey City, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to one count of assaulting a federal employee.
According to documents filed in this case and statements made in court:
On March 3, 2021, an employee of the U.S. Postal Service was driving his Postal Service truck in Jersey City, New Jersey, when Cartagena requested that the employee pull over, which he did. The postal employee then exited his truck and approached Cartagena to ask why he had asked him to pull over. Cartagena pulled out a handgun and pointed it at the postal employee. The postal employee immediately pushed Cartagena’s hand away and ran into traffic to get away. Cartagena then entered his car and drove away.
The charge carries a maximum penalty of 20 years in prison and a fine of up to $250,000. Sentencing is scheduled for Feb. 9, 2022.
Acting U.S. Attorney Rachael A. Honig credited postal inspectors of the U.S. Postal Inspection Service, Newark Division, under the direction of Inspector in Charge Raimundo Marrero, and the Jersey City Police Department, with the investigation leading to the charges.
The government is represented by Special Assistant U.S. Attorney Stacey E. Zyriek Enriquez of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
Houston Man Who Supplied Methamphetamine to White Supremacist Gang Sentenced in Eastern District of TexasRead the Press Release
BEAUMONT, Texas – A Houston man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Eulalio Torres-Cadenas, 44, pleaded guilty on April 19, 2021, to conspiring to possess with intent to distribute methamphetamine and was sentenced to 87 months in federal prison today by U.S. District Judge Thad Heartfield.
“The sentence today reflects the Eastern District of Texas continuing effort to hold drug traffickers accountable,” said Acting U.S. Attorney Nicholas J. Ganjei. “This is especially important when they are supplying gangs like the Aryan Circle. We will relentlessly pursue those who provide narcotics to violent gangs.”
According to information presented in court, from May 2016 through August 2016, law enforcement officers investigated methamphetamine trafficking activity of Aryan Circle (“AC”) members in the Houston, Southeast Texas, and Southwest Louisiana area. The AC is a violent, white supremacist organization that operates inside federal prisons across the country and outside prisons in states including Texas, Arkansas, Louisiana, and Missouri. As part of the charged conspiracy, Torres was identified as the driver of a vehicle stopped by law enforcement on Aug. 22, 2016, following the delivery of 290 grams of methamphetamine. Further investigation revealed that Torres was part of a conspiracy to deliver between 1.5 kilograms and 5 kilograms of methamphetamine. Torres was indicted by a federal grand jury on Oct. 10, 2020.
This case was investigated by the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Houston Police Department, the and the Texas Department of Public Safety. The case was prosecuted by Assistant U.S. Attorney Christopher Rapp.
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Houston Businessman Sentenced for Lake Livingston Insurance Fraud SchemeRead the Press Release
BEAUMONT, Texas – A Houston businessman has been sentenced to prison for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Robert Lance Kuperman, 74, pleaded guilty on March 22, 2021, to interstate transportation of money by fraud and was sentenced to 24 months in federal prison today by U.S. District Judge Thad Heartfield. Kuperman was also ordered to pay over $1.8 million in restitution.
“Fraud victimizes not only the insurance companies, but costs Americans billions of dollars every year in increased premiums,” said Acting U.S. Attorney Nicholas Ganjei. “I thank our federal, state, and local partners—law enforcement and non-enforcement alike—for the excellent work they provided in this case.”
According to information presented in court, Kuperman purchased a home on Lake Livingston in Polk County in 2013. In July 2015, he submitted an insurance claim related to water damage to the house that he said was caused by a defective water heater. As part of the claim, Kuperman submitted fraudulent documentation supporting his claim for out-of-pocket costs associated with what he represented was his replacement of personal property destroyed by the water leak.
Based on Kuperman’s fraudulent claims, American Strategic Insurance Company issued a series of checks, made payable to Kuperman totaling $412,836.12. As part of the sentence, Kuperman was ordered to repay not only the $412,836.12 to American Strategic Insurance Company, but an additional $1,445,000.00 in restitution to RSUI Indemnity Group for conduct deemed relevant to the offense, for a total of $1,857,836.24 in restitution and an additional fine of $80,000.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Polk County Sheriff’s Office and the Texas State Fire Marshal’s Office. The case was prosecuted by Special Assistant U.S. Attorney Tommy L. Coleman and Assistant U.S. Attorney Donald S. Carter.
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Hartford Man Sentenced to 7 Years in Federal Prison for Drug Distribution and Firearm Possession OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that KENDALL JONES, also known as “Wolf,” 32, of Hartford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 84 months of imprisonment, followed by four years of supervised release, for narcotics distribution and firearm possession offenses.
According to court documents and statements made in court, in September and October 2020, the Drug Enforcement Administration’s Hartford Task Force, along with state and local law enforcement officers, conducted an operation in response to a recent spike in drug-related violence in Hartford’s North End. Jones was identified during the operation as an active drug seller.
On October 7, 2020, investigators sought to arrest Jones on a state arrest warrant and observed him at a gas station on Albany Avenue in Hartford engaging in what appeared to be drug transactions. As task force officers approached Jones, Jones ran and discarded a black leather shoulder bag. Jones was apprehended after a short chase. A search of his person revealed approximately eight grams of crack cocaine and a quantity of marijuana, and the discarded shoulder bag contained a loaded .22 caliber Ruger semiautomatic handgun.
The handgun has been reported stolen in North Carolina in July 2020.
Jones’ criminal history includes state convictions for drug, firearm, robbery and larceny offenses.
Jones, while released on bond in this federal case, was arrested on state narcotics charges on April 9, 2021, after he was again observed making drug sales in Hartford. He has been detained since his arrest.
On April 29, 2021, Jones pleaded guilty in federal court to one count of possession with intent to distribute cocaine base (“crack”), and one count of possession of a firearm in furtherance of a drug trafficking crime.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments.
This case was prosecuted by Assistant U.S. Attorney Brendan Keefe.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Government Contractor Agrees to Settle Anti-Kickback Act AllegationsRead the Press Release
ALEXANDRIA, Va. – A Maryland-based federal company, as well as its president and sole owner, agreed to pay $450,000 to settle allegations that they solicited and received kickbacks in connection with federal government contracts reserved for “8(a)” small businesses.
Wete and Company, Inc. (Wete), located in Laurel, Maryland, was certified by the Small Business Administration as an 8(a) small business, meaning it was owned and operated by a socially or economically disadvantaged citizen. Dorothy Wete, a resident of Laurel, is the president and owner of Wete. Sage Consulting Group, Inc. (Sage), a federal government contractor located in Vienna, lacked an 8(a) certification.
According to the United States’ allegations, between 2014 and 2020, Wete and Sage agreed that Wete would use its 8(a) certification to bid on government contracts that Sage was not eligible to bid on. Wete and Sage allegedly agreed to subcontract all the work on those contracts to Sage in exchange for a “fee” calculated by each hour of work subcontracted to Sage, and Sage allegedly paid Wete the agreed upon kickback amount when the work was subcontracted to them. The United States and Sage reached a settlement in July 2021.
The settlement resolves allegations under the civil penalty provisions of the Anti-Kickback Act.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia, Department of Defense Office of Inspector General, Defense Criminal Investigative Service, and the General Services Administration Office of Inspector General.
This matter was investigated by Assistant U.S. Attorney Krista Anderson.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. A copy of a press release describing the United States’ settlement with Sage Consulting Group, Inc. can be found here.
The civil claims settled by this agreement are allegations only; there has been no determination of civil liability.
Georgia Man Pleads Guilty to Bank and Mail Fraud Conspiracy Involving 30 Victim Financial InstitutionsRead the Press Release
Greenbelt, Maryland – Willie R. Trimble, age 68, of Statesboro, Georgia, pleaded guilty yesterday to conspiracy to commit mail and bank fraud.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Postal Inspector in Charge Daniel A. Adame of the U.S. Postal Inspection Service - Washington Division; and Harford County Sheriff Jeffrey R. Gahler.
According to his guilty plea, from 2015 to 2016, Trimble conspired with at least two other individuals to steal, alter, and cash checks written by victim businesses and individuals from U.S. Postal Service (“USPS”) mail receptacles.
In furtherance of the conspiracy, Trimble cashed a counterfeit check for $6,850 at a victim Baltimore financial institution, allowed a co-conspirator to insert his picture onto a fraudulent Georgia State driver’s license under the fake identity of “David Cleveland”, and burglarized a Mississippi U.S. Post Office in which he stole mail and USPS equipment.
Additionally, in November 2017, Trimble used the Cleveland alias and counterfeit Georgia State driver’s license to withdraw funds from a victim South Carolina bank. He also attempted to cash a stolen and altered business check under the same fraudulent identity. In the same month, surveillance footage captured Trimble attempting to cash a stolen check and disposing of stolen mail behind a convenience store.
As part of the scheme to defraud, Trimble and his co-conspirators recruited dozens of individuals to cash altered or counterfeit checks made out to them in exchange for a portion of the proceeds. At times, Trimble supervised and transported groups of cashers to victim financial institutions where the victim businesses banked.
During Trimble’s participation in the conspiracy, the mail and bank fraud scheme resulted in the total loss of at least $119,212.50 to victim individuals, approximately 30 business victims, and 15 federally insured financial institutions within Maryland, Pennsylvania, Virginia, Georgia, South Carolina, and elsewhere.
Trimble faces a maximum sentence of 30 years in prison followed by five years of supervised released for conspiracy to commit bank and wire fraud. U.S. District Judge Stephanie A. Gallagher has not scheduled a sentencing hearing at this time.
Acting United States Attorney Jonathan F. Lenzner commended the USPIS and the Harford County Sheriff’s Office for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Adam K. Ake and Special Assistant U.S. Attorney Jason X. Hamilton, who are prosecuting the case.
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Four Defendants Indicted for Laundering Target Gift Cards Purchased by Fraud VictimsRead the Press Release
A federal grand jury in Los Angeles returned an indictment against four California-based defendants for their alleged roles laundering fraud proceeds stored on gift cards. The indictment, which was unsealed today, charges U.S. citizen Blade Bai, 33, of El Monte; and Chinese citizens Bowen Hu, 26, of Hacienda Heights; Tairan Shi, 27, of Diamond Bar; and Yan Fu, 58, of Chino Hills, with conspiring to launder proceeds of wire fraud that were stored on gift cards issued by retailer Target.
According to the indictment, defendants Bai, Hu and Shi obtained over 5,000 gift cards from a group known as the “Magic Lamp.” Defendants Bai, Hu and Shi caused the gift cards to be distributed to “runners” like defendant Fu who used the funds on the cards at Target stores in Los Angeles and Orange County and elsewhere to purchase, among other items, consumer electronics and other gift cards. Through the purchases, returns and other transactions at multiple Target stores, the defendants and their co-conspirators sought to conceal the fact that the gift cards had been originally funded with fraudulent proceeds.
The indictment further alleges that perpetrators of the fraud schemes induced victims to send proceeds to defendants’ associates, and defendants then conspired to launder the proceeds. The indictment also alleges that victims of the schemes are spread throughout the United States, including California, Texas, Illinois and Georgia.
“The Department of Justice and its law enforcement partners are committed to tackling fraud schemes from every angle,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Individuals who knowingly facilitate the victimization of American consumers make fraud possible, are criminally culpable for the offenses and should expect to be held accountable.”
“This case offers an important reminder to consumers that gift cards are for presents to friends and loved ones – they should never be used for payments to any government or corporate entity,” said Acting U.S. Attorney Tracy L. Wilkison for the Central District of California. “Don’t be fooled by callers claiming to be with a government agency, a bank or any other institution demanding that you purchase gift cards. There is no reason to purchase a gift card to resolve a problem with an account, your Social Security number or a supposed criminal case.”
“The case against these defendants is the result of the impressive work by Homeland Security Investigations’ (HSI) Los Angeles-led El Camino Real Financial Crimes Task Force,” said Special Agent in Charge David A. Prince for HSI Los Angeles. “These types of crimes have devastating effects on the victims. Through coordinated investigative efforts by law enforcement and our prosecution partners, HSI will continue to aggressively investigate those who prey on our elderly population.”
Defendants are charged with conspiracy to commit money laundering. If convicted, they face a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by HSI Los Angeles’ El Camino Real Financial Crimes Task Force, a multi-agency task force comprised of federal and state investigators focused on financial crimes in Southern California, with substantial assistance from the FBI Los Angeles Field Office. Investigative assistance was also provided by the Social Security Administration, Office of the Inspector General.
Assistant U.S. Attorney Monica Tait of the Central District of California and Trial Attorney Wei Xiang of the Civil Division’s Consumer Protection Branch are prosecuting the case.
The Consumer Protection Branch and the U.S. Attorney’s Office for the Central District of California are part of the Transnational Elder Fraud Strike Force, which investigates and prosecutes scams run by transnational criminal organizations, including mass mailing, telemarketing, and tech support scams. For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Founder of New York Litigation Finance Firm Pleads Guilty to Multimillion-Dollar Securities Fraud SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and Philip R. Bartlett, the Inspector-in-Charge of the New York Division of the U.S. Postal Inspection Service (“USPIS”), announced that JAESON BIRNBAUM, an attorney and the founder of Cash4Cases, Inc., a bankrupt litigation funding firm that was headquartered in New York, New York, pled guilty to securities fraud today before U.S. District Judge Paul A. Crotty. BIRNBAUM admitted as part of his plea that he used investor funds for his own purposes and double-pledged the same case recoveries as collateral to multiple parties.
U.S. Attorney Audrey Strauss said: “Jaeson Birnbaum conned investors through a series of lies about his litigation finance business, Cash4Cases. He used Cash4Cases to steal cash for himself and then tried to cover up his scheme by directing a subordinate to falsify books and records. Now Birnbaum awaits sentencing for his fraudulent conduct.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “Everything Mr. Birnbaum told his investors was a lie framed around the idea of a good investment. Postal Inspectors see these cases all the time and remind investors to thoroughly check the fine print on any investment offer, and if the return seems too lucrative or unreal, pass it by to make sure your money goes to fund your lifestyle and not the criminal’s.”
According to the Information and statements made in Court:
From at least in or about 2017 through in or about 2019, BIRNBUAM obtained more than $3 million in investments for Cash4Cases based on fraudulent misrepresentations. These investments were in the form of promissory notes, titled “Investor Security Agreements” (“ISAs”), which purported to provide the relevant investors with a security interest in the recoveries associated with certain specified lawsuits that were ostensibly purchased by Cash4Cases. In fact, in some instances, the lawsuits that were either never funded by Cash4Cases or BIRNBAUM had previously pledged their recoveries to other parties.
To help carry out his fraud, BIRNBAUM directed an employee to falsify his company’s books and records to make it appear that the recoveries from lawsuits that had already been paid out were still available to be pledged as collateral to new investors.
BIRNBAUM also misappropriated a substantial portion of investors’ funds for his personal use and to make promised payments to earlier investors. As one example, BIRNBAUM obtained a $1 million investment for Cash4Cases in September 2019. Prior to this investment, BIRNBAUM told the investor that Cash4Cases would use the money exclusively for advances to litigants. However, contrary to this representation, on the same date that Cash4Cases received the $1 million investment, BIRNBAUM used the money to send a $530,000 wire toward the purchase of a house in New Jersey.
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BIRNBAUM, 47, of Boca Raton, Florida, faces a maximum sentence of 20 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. BIRNBAUM is scheduled to be sentenced before Judge Crotty on January 6, 2022, at 12:00 p.m.
Ms. Strauss praised the investigative work of the USPIS. Ms. Strauss also thanked the Securities & Exchange Commission, which brought a civil action today against BIRNBAUM in Manhattan federal court.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Daniel Loss is in charge of the prosecution.
Former Air Force Employee Pleads Guilty to Receiving Stolen Government Money Through Falsified Travel ClaimsRead the Press Release
OKLAHOMA CITY – Yesterday, ANTHONY RAY JONES, 55, of Midwest City, pleaded guilty to receiving approximately $55,210.50 in stolen money from the federal government through falsified travel claims, announced Acting U.S. Attorney Robert J. Troester.
On May 4, 2021, a federal grand jury returned a one-count Indictment against Jones. The Indictment charged that between May 4, 2016 and August 22, 2019, Jones knowingly received stolen money belonging to the United States.
At yesterday’s hearing, Jones pleaded guilty. Public records reflect that Jones had been employed with the Department of the Air Force. During his employment, Jones sustained injuries and applied for and received worker’s compensation money under the Federal Employees’ Compensation Act. As part of his compensation, Jones was able to be reimbursed for travel expenses to and from medical appointments related to his injuries. From May 4, 2016, through August 22, 2019, Jones filed hundreds of false travel claims for medical appointments and was reimbursed approximately $55,210.50 resulting from those false travel claims. At his plea hearing, Jones admitted that he intended to keep the money and that he knew the money was stolen. At sentencing, he faces up to ten years in prison, a $250,000 fine, mandatory restitution, and up to three years of supervised release.
This case is the result of an investigation by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations. The case is being prosecuted by Assistant U.S. Attorney Bow Bottomly.
Reference is made to court filings for further information.
Forest Hills Couple Charged in Marriage Fraud SchemeRead the Press Release
PITTSBURGH, PA - Two suburban Pittsburgh residents have been indicted by a federal grand jury in Pittsburgh on charges of conspiring to commit offenses against the United States, making false statements in matters relating to naturalization or citizenship, and unlawfully attempting to and procuring naturalization or citizenship, Acting United States Attorney Stephen R. Kaufman announced today.
The five-count Superseding Indictment named Man Ho, 32, and Le Thuy Nguyen, also known as Kim Nguyen, 48, of the 3300 block of Lenox Drive in Pittsburgh, PA (Forest Hills) as the defendants.
According to the Superseding Indictment, Ho and Nguyen are charged at Count One with conspiring to commit offenses against the United States. At Counts Three and Five, Ho and Nguyen respectively are charged with making false statements related to obtaining naturalization or citizenship. Finally, at Count Two, Ho is charged with unlawfully attempting to obtain naturalization or citizenship, while Nguyen is charged at Count Four with unlawfully procuring naturalization or citizenship.
As to Counts Two and Four, the law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000 or both. At Counts One, Three, and Five, the law provides for a maximum total sentence of 5 years in prison, a fine of $250,000 or both. 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 Attorneys Cindy K. Chung and Yvonne M. Saadi are prosecuting this case on behalf of the government.
Homeland Security Investigations and the United States Citizenship and Immigration Services conducted the investigation leading to the Superseding Indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Florida Man Who Called for Race-Based Civil War Sentenced on Multiple Firearms OffensesRead the Press Release
Miami, Florida – Today, a South Florida federal district judge sentenced Paul Nicholas Miller, 33, of Fort Lauderdale, Florida, to 41 months’ imprisonment followed by three years’ supervised release for possessing a firearm as a convicted felon in 2018, possessing ammunition as a convicted felon in 2021, and possessing an unregistered short-barreled rifle in 2021.
Miller, who had previously been convicted of three separate felony offenses in New Jersey, took a live firearms training in Fort Lauderdale, Florida in January 2018, during which he fired a handgun. Miller then used the certificate of completion from this training to apply to Florida authorities for a concealed weapon license. In this application, Miller falsely affirmed that he had never been convicted of a felony. Florida authorities denied Miller’s application due to his prior felony convictions. Federal law enforcement then arrested Miller on March 2, 2021 after a federal grand jury returned an indictment in connection with Miller’s 2018 conduct.
After this arrest, law enforcement discovered an unregistered short-barreled rifle and hundreds of rounds of ammunition inside Miller’s home. Miller admitted that he had bought the ammunition and that he had tried to build his own rifle in part to learn about firearms manufacturing in preparation for a coming civil war. In the months immediately before his arrest, Miller had made hundreds of internet posts publicizing his animosity towards various minority groups and his support for the initiation of a race-based civil war in the United States.
A federal grand jury returned a superseding indictment adding two counts for Miller’s 2021 possession of the ammunition and the unregistered short-barreled rifle law enforcement found in his home. On June 22, Miller pled guilty to all three charges in the superseding indictment before U.S. District Judge Raag Singhal, who imposed today’s sentence.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, and George Piro, Special Agent in Charge of the Federal Bureau of Investigation (“FBI”) Miami Division, made the announcement.
FBI handled the investigation, with assistance from the Fort Lauderdale Police Department and the FBI’s Joint Terrorism Task Force. Assistant U.S. Attorney Kiran N. Bhat prosecuted the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-60067-CR-Singhal/Snow(s).
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Florida Man Pleads Guilty to Methamphetamine OffenseRead the Press Release
Gulfport, Miss. – A Florida man pled guilty to possession with intent to distribute methamphetamine, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to court records, on February 24, 2021, law enforcement officers stopped a vehicle driven by Vincente Aguirre, 29, in Jackson County for a traffic violation. A subsequent search of the vehicle led to the discovery of over 400 grams of methamphetamine.
Further investigation revealed that Aguirre had traveled to Texas from Florida to obtain the methamphetamine and was returning to Florida at the time of the traffic stop.
Aguirre will be sentenced on January 19, 2022, at 10:00 a.m. He faces a maximum sentence of 40 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and the Ocean Springs Police Department investigated the case.
Assistant U.S. Attorney Jonathan Buckner is prosecuting the case.
Federal Grand Jury Indicts 4 SoCal Defendants in Scheme to Launder Target Gift Cards Purchased by Victims of ScamsRead the Press Release
LOS ANGELES – Federal authorities this morning arrested two people named in an indictment alleging a scheme to launder the proceeds of scams sent to fraudsters via Target gift cards.
Bowen Hu, 26, of Hacienda Heights, and Tairan Shi, 27, of Diamond Bar, both Chinese nationals, were taken into custody today and are expected to be arraigned this afternoon in United States District Court in downtown Los Angeles.
Two other defendants named in the indictment – Blade Bai, 33, of El Monte, a U.S. citizen, and Yan Fu, 58, of Chino Hills, also a Chinese national – will be summonsed to appear in federal court next month.
The one-count indictment unsealed today charges all four defendants with conspiring to launder proceeds of wire fraud that were stored on gift cards issued by Target. The indictment alleges that Bai, Hu and Shi obtained more than 5,000 gift cards from a group that called itself the “Magic Lamp” and sold gift card information via an online messenger application.
Bai, Hu and Shi oversaw the distribution of gift cards to “runners,” including Fu, who used the funds on the cards at Target stores primarily in Los Angeles and Orange counties to purchase consumer electronics, other gift cards and other items, according to the indictment. Through the purchases and other transactions at multiple Target stores, the defendants and their co-conspirators sought to conceal the fact that the gift cards had been originally funded with fraudulent proceeds.
The indictment alleges that perpetrators of fraud schemes induced victims across the United States to purchase Target gift cards. Then, the indicted defendants in Southern California conspired to launder the proceeds. The victims, who were often older adults, were tricked into buying the gift cards based on various fraudulent schemes, including:
- Government-imposter scams, in which fraudsters impersonate government officials, such as officials with the Social Security Administration or local police officers, and falsely claim that victims need to purchase gift cards to resolve an issue, such as a pending arrest warrant or a problem with the victims’ Social Security number; and
- Tech support scams, in which fraudsters trick victims into believing there is a serious problem with their computer or with account access which can only be solved by paying substantial amounts through gift cards.
“This case offers an important reminder to consumers that gift cards are for presents to friends and loved ones – they should never be used for payments to any government or corporate entity,” said Acting United States Attorney Tracy L. Wilkison. “Don’t be fooled by callers claiming to be with a government agency, a bank or any other institution demanding that you purchase gift cards. There is no reason to purchase a gift card to resolve a problem with an account, your Social Security number or a supposed criminal case.”
“The Department of Justice and its law enforcement partners are committed to tackling fraud schemes from every angle,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Individuals who knowingly facilitate the victimization of American consumers make fraud possible, are criminally culpable for the offenses and should expect to be held accountable.”
“The case against these defendants is the result of the impressive work by Homeland Security Investigations’ (HSI) Los Angeles-led El Camino Real Financial Crimes Task Force,” said Special Agent in Charge David A. Prince for HSI Los Angeles. “These types of crimes have devastating effects on the victims. Through coordinated investigative efforts by law enforcement and our prosecution partners, HSI will continue to aggressively investigate those who prey on our elderly population.”
According to court documents, Bai, Hu and Shi obtained the gift card numbers from the Magic Lamp group, often on the same day fraud victims had purchased the gift cards at the direction of a telephone scammer. Fu travelled to as many as 17 Target stores in a single day to conduct gift card transactions, and Bai resold the purchased consumer electronics, using some of the proceeds to pay the Magic Lamp group, the court documents allege.
Investigators conservatively estimate that the defendants laundered more than $2.5 million in gift cards between approximately June 2019 and November 2020.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
All four defendants are charged with conspiracy to commit money laundering, a felony offense that carries a statutory maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Bai and Fu were initially arrested in this matter on November 17, 2020 pursuant to criminal complaints. Bai was released on bond and was subsequently named in a criminal information charging him with conspiracy to commit money laundering. Bai pleaded not guilty to the charge in the information. The indictment announced today supersedes the criminal information. The complaint against Fu was dismissed in December 2020 to further the investigation that has resulted in the indictment.
This case is the product of an investigation by HSI and the FBI. The investigation was conducted under the auspice of HSI’s Los Angeles’ El Camino Real Financial Crimes Task Force, a multi-agency task force comprised of federal and state investigators focused on financial crimes in Southern California.
The Social Security Administration, Office of the Inspector General also provided assistance during the investigation, as did the following: the Brea (California) Police Department, the Glynn County (Georgia) Police Department, the Fontana (California) Police Department, the Charlotte-Mecklenburg (North Carolina) Police Department, the Streamwood (Illinois) Police Department, the Cleveland (Ohio) Police Department, the Madera County (California) Sheriff's Office, the New York Police Department, the Norwood (New Jersey) Police Department, the Loudon County (Virginia) Sheriff's Office, the Waukesha County (Wisconsin) Sheriff's Department, the Fremont (California) Police Department, the Marin County (California) Sheriff's Office, the County of Hawaii Police Department, the Henderson (Nevada) Police Department, the Wilmington (Massachusetts) Police Department, the Las Vegas (Nevada) Metropolitan Police Department, the Lewisville (Texas) Police Department, the Gardena (California) Police Department, the Des Moines (Iowa) Police Department, the Cobb County (Georgia) Sheriff`s Department, the Millburn (New Jersey) Police, the Wauwatosa (Wisconsin) Police Department, the San Angelo (Texas) Police Department, the Fairfax City (Virginia) Police Department, and the Virginia Beach (Virginia) Police Department.
Assistant United States Attorney Monica Tait of the Major Frauds Section and Justice Department Trial Attorney Wei Xiang of the Civil Division’s Consumer Protection Branch are prosecuting the case.
The United States Attorney’s Office and the Consumer Protection Branch are part of the Transnational Elder Fraud Strike Force, which investigates and prosecutes scams run by transnational criminal organizations, including mass mailing, telemarketing and tech support scams.
If you fall victim to a gift card scam, immediately call the gift card issuer and ask them to freeze the gift card numbers involved – and save your receipt and the gift card. Then, report the crime to the FBI’s Internet Crime Complaint Center at www.ic3.gov, the Federal Trade Commission at https://reportfraud.ftc.gov/#/ or 877-382-4357, and your local police department.
Essex County Man Sentenced to 65 Months in Prison for Drug Conspiracy and Distribution of Crack in Stephen Crane VillageRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 65 months in prison for distributing and conspiring with others to distribute more than 28 grams of cocaine base, Acting U.S. Attorney Rachael A. Honig announced.
Nasir Williams, 24, of Newark, previously pleaded guilty by videoconference before U.S. District Court Judge John Michael Vazquez to an information charging him with one count each of conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine case and distribution of 28 grams or more of cocaine base. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Stephen Crane Village is a public housing complex in Newark, on the border with Belleville, New Jersey. From at least February 2019 through February 2020, law enforcement officers investigated individuals that controlled an open-air drug market that operated there.
Through numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone records, law enforcement officers determined that numerous individuals, including Williams, conspired to distribute and did actually distribute narcotics, including heroin, fentanyl, cocaine and cocaine base, in and around Stephen Crane Village. On Jan. 15, 2020, in Stephen Crane Village, Nasir Williams sold approximately 31 grams of cocaine base to an individual while under surveillance by law enforcement.
In addition to the prison term, Judge Vazquez sentenced Williams to four years of supervised release.
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; the Belleville Police Department, under the direction of Chief Mark Minichini; special agents and task force officers of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark; 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 the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, with the investigation leading to today’s guilty plea. He also thanked the U.S. Marshals Service, the Nutley Police Department, the Bloomfield Police Department, the West Orange Police Department, the Verona Police Department, the Orange Police Department and the Bergen County Sheriff’s Office for their assistance with this case.
This investigation was part of the Newark Violent Crime Initiative (VCI), where the U.S. Attorney’s Office has partnered with state, federal, county, and local law enforcement to investigate crime in Newark and the surrounding cities. This case is also conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The government is represented by Assistant U.S. Attorneys Tracey Agnew and Cassye Cole of the Organized Crime and Gangs Unit of the U.S. Attorney’s Office’s Criminal Division in Newark.
Elmira Methamphetamine Trafficker Going to Prison for More Than 19 YearsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.--U.S. Attorney James P. Kennedy, Jr., announced today that Jamal A. Anderson a/k/a Jamel Anderson a/k/a Jemel Jefferson a/k/a James Jefferson a/k/a Mike Jefferson a/k/a Blaze, 40, of Elmira, NY, who was convicted of conspiring to possess with intent to distribute 50 grams or more of methamphetamine, was sentenced to serve 235 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Robert A. Marangola, who handled the case, stated that the charges stem from a long-term, multi-agency investigation into the trafficking of large quantities of methamphetamine in the City of Elmira. On September 13, 2019, investigators executed a federal search warrant at an apartment at 916 Grand Central Avenue in Elmira. Officers seized over 1.1 kilograms of 95% pure methamphetamine, a quantity of heroin, and narcotics distribution paraphernalia. Anderson was arrested along with co-defendants Kevin E. Anderson a/k/a K-Born and Briana Hall.
The defendant conspired with McKinney and others to distribute 50 grams or more of actual methamphetamine. Anderson’s involvement in the conspiracy included, among other things, purchasing large quantities of methamphetamine, storing and packaging methamphetamine for distribution at various locations in Elmira, including 508 W. First Street, 912 Grand Central Avenue, 916 Grand Central Avenue, and 267 Henry Street, facilitating third-party purchases of methamphetamine, and directly distributing methamphetamine to others. During the conspiracy, Anderson and other members of the conspiracy possessed firearms.
Kevin E. McKinney and Briana were previously convicted and sentenced.
The sentencing is the culmination of an investigation on the part of the Elmira Police Department, under the direction of Chief Joseph Kane; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Lieutenant Kevin Reyes and Major Mary Clark; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
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