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Friday 24 September 2021
Tampa Accountant Charged with Murder-For-HireRead the Press Release
Tampa, Florida– DeAnna Marie Stinson (50, Tampa) has been arrested and charged by federal criminal complaint with soliciting a crime of violence and murder-for-hire. If convicted on all counts, Stinson faces a maximum penalty of 10 years in federal prison.
According to the criminal complaint, on June 24, 2021, Stinson created an account on a dark web website (“The Website”) that purported to provide murder-for-hire services to its customers. On June 25, 2021, Stinson submitted an “order” requesting that a hitman be assigned to complete a “quick hit in southern Florida” to kill the spouse of Stinson’s former significant other. In the order, Stinson provided the Victim’s name, address, and a photograph of the Victim. Between June and July 2021, Stinson sent four additional orders and over $12,000 in Bitcoin to effect the hit. During this time, Stinson repeatedly messaged administrators of The Website and purported hitmen, requesting that the “job” be completed as soon as possible, and even offered a “bonus” if the hit was completed by a specific date. When Stinson had not received a status update from administrators of The Website, on July 31, 2021, Stinson requested that the administrators “reassign the job to someone who has a history of getting jobs done” because she “need[ed] th[e] job done ASAP.”
Law enforcement agents received information regarding Stinson’s criminal activity and obtained records from her virtual currency exchange account. The records showed that Stinson had paid Bitcoin to The Website. An agent contacted Stinson while acting in an undercover capacity as a hitman for The Website. In a recorded phone call, Stinson confirmed that she wanted the Victim killed and agreed to send additional money to the undercover agent via Bitcoin so that the transaction could not be traced. On September 13, 2021, Stinson sent $350 in Bitcoin to the undercover agent so that the agent could purchase a revolver to commit the murder.
A criminal complaint is only an allegation and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Lisa M. Thelwell.
Tallahassee Man Sentenced to Twenty Years on Charges of Production and Distribution of Child PornographyRead the Press Release
TALLAHASSEE, FLORIDA – Gregory Carroll Johnson, 40, of Tallahassee, Florida, was sentenced to twenty years in federal prison on charges of conspiracy to produce, distribute, possess, and receive child pornography. The sentence, which followed his guilty plea earlier this year, was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
Court documents reflect, in July 2019, representatives of local, state, and federal law enforcement executed a search warrant at Johnson’s residence in Tallahassee. The evidence showed that Johnson had been receiving child pornography from an individual in Atlanta. While conducting the search, however, authorities found messages on Johnson’s phone that demonstrated Johnson and co-defendant Madison King had also conspired to produce child pornography. The recovered evidence included short video clips and pictures that King had taken and transmitted to Johnson depicting the sexual abuse of a toddler. Florida investigators quickly obtained emergency legal process to locate King and contacted their Georgia counterparts. That same day, agents with Homeland Security Investigations, in concert with the Berrien County (Georgia) Sheriff’s Office, executed a search of King’s Nashville, Georgia residence, whereupon the child was rescued.
“There is no greater charge than the protection of our children,” stated Acting U.S. Attorney Coody. “This sentence is yet another example of the unwavering commitment to the protection of our most vulnerable and should serve as a significant deterrent to those who would attempt to harm them. Our law enforcement partners are to be commended for the swift, multi-state investigation, which resulted in the immediate rescue of this child, preventing further abuse.”
“During the course of this investigation, a child was saved from this predator thanks to HSI partnerships in our offices in Philadelphia, Atlanta, and here in Tallahassee,” said HSI Tampa Assistant Special Agent in Charge Micah McCombs.
“There is no crime worse than the crimes against our children,” said Berrien County Sheriff Ray Paulk. “I would like to thank our investigators and our District Attorney’s Office for acting swiftly and efficiently in this case to ensure the safety of this child. I also want to thank all of the local, state, and federal law enforcement that worked together in making a case like this priority.” “We couldn’t be more thankful for Acting U.S. Attorney Jason Coody and his staff for securing another conviction in this case, making the world a safer place for our children to live.”
Johnson's prison sentence will be followed by ten years of supervised release. He will also be required to register as a sex offender and will be subject to all sex offender conditions.
This conviction was the result of an investigation conducted by Homeland Security Investigations, the Leon County Sheriff’s Office, the Berrien County Sheriff’s Office, and the Florida Department of Law Enforcement. Assistant United States Attorneys Meredith L. Steer and Michelle Spaven prosecuted the case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Sunland Man Sentenced to Nearly 3½ Years in Federal Prison for Scheming to Fraudulently Obtain $650,600 COVID-Relief LoanRead the Press Release
LOS ANGELES – A Sunland resident has been sentenced to 41 months in federal prison for fraudulently obtaining a $650,600 Paycheck Protection Program loan under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Department of Justice announced today.
Andranik Amiryan, 42, was sentenced late Thursday afternoon by United States District Judge Dolly M. Gee, who also ordered him to pay $650,600 in restitution. Amiryan pleaded guilty on April 28 to one count of conspiracy to commit bank fraud.
Amiryan opened a bank account by using a stolen identity, then, posing as the identity theft victim, he falsely told the bank that he was the CEO of ACBA Technologies Inc., a Northridge-based software company. In fact, ACBA existed only as a corporate shell. Amiryan’s co-conspirators arranged to wire into that account $650,600 of CARES Act relief funds by falsely claiming that ACBA Technologies had a monthly payroll of more than $500,000 and attaching forged tax forms as support. Once the money was in his account, Amiryan wrote checks to his co-conspirators and to other shell companies he controlled, effectively withdrawing approximately $452,287 of the funds before the bank froze the account.
Amiryan has been in federal custody since his arrest in this case in September 2020. At the time of his arrest, authorities seized $11,800 in cash found in his jacket, and soon afterward seized more than $262,000 from bank accounts he controlled. As part of his guilty plea, Amiryan agreed to forfeit those assets, which are worth nearly $275,000.
Judge Gee described as “despicable” Amiryan’s theft of public funds that were intended by Congress to help small businesses survive the COVID-19 pandemic.
The case is the result of an investigation by Homeland Security Investigations Los Angeles’ El Camino Real Financial Crimes Task Force and the Small Business Administration Office of Inspector General.
Assistant United States Attorneys Andrew Brown of the Major Frauds Section and Victor Rodgers of the Asset Forfeiture Section prosecuted this case.
In May, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Sioux City Man Sentenced to Federal Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
A Sioux City man who conspired to distribute methamphetamine around the tri-state area was sentenced September 22, 2021 to 10 years in federal prison.
Leroy Eric McCoy, age 39, from Sioux City, Iowa, received the prison term after an April 15, 2021 guilty plea to conspiracy to distribute methamphetamine.
In a plea agreement, McCoy admitted to conspiring to distribute large quantities of methamphetamine around the tri-state area. McCoy was previously convicted in 2005 of conspiracy to distribute methamphetamine near a private location and possession with intent to distribute methamphetamine.
McCoy was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. McCoy was sentenced to 120 months’ imprisonment. He must also serve a 6-year term of supervised release after the prison term. There is no parole in the federal system.
McCoy is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Ron Timmons and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4039.
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Rocky Mount Blood Gang Member Sentenced to 14 Years for Armed RobberyRead the Press Release
WILMINGTON, N.C. – A Rocky Mount man was sentenced yesterday to 168 months in prison for armed robbery and brandishing a firearm in connection to a crime of violence. On June 16, 2021, Dexter Jamal Williams pled guilty to the charges.
According to court documents and other information presented in court, Williams, 23, and his co-defendants, Arafat Alzer and Bashar Hroub, committed an armed robbery at the Royal Eco Marketing Company in Raleigh, North Carolina, on December 4, 2019. During the robbery, the defendants duct-taped the store manager to a chair, and repeatedly pistol-whipped and assaulted him before stealing over $20,000 worth of merchandise from the business. Video surveillance from the parking lot of the business shows Williams and Alzer leaving the scene in Alzer’s Toyota Camry, and Hroub leaving in his Chevrolet Silverado pickup truck. As the defendants were leaving the scene, an employee of the business is observed firing multiple rounds from a gun at the two vehicles, striking both the Camry and the Silverado. Following the robbery, Alzer and Williams discarded Alzer’s vehicle in a parking lot in Raleigh and returned to Rocky Mount. When Raleigh Police responded to the vehicle, they recovered Alzer’s identification card and vehicle registration. Later that day, Williams checked into Nash General Hospital to receive treatment for his gunshot wound, and Alzer and Hroub traveled back to Raleigh to hide Williams’ firearm at Hroub’s girlfriend’s residence. On December 11, 2019, the Wake County Sheriff’s Office executed a search warrant at this residence and recovered the firearm.
Arafat Alzer pled guilty to Interference With Commerce by Robbery and Brandishing a Firearm During and in Relation to a Drug Trafficking Crime or a Crime of Violence; and Aiding and Abetting on July 28, 2020 and was sentenced to 70 months imprisonment on September 3, 2021. Bashar Hroub pled guilty to Interference With Commerce by Robbery and Possession of a Firearm by a Convicted Felon on July 23, 2021 and is awaiting sentencing.
On February 11, 2020, officers with the Rocky Mount Police Department executed a search warrant at Williams’ residence, and recovered 688 grams of marijuana and a .40 caliber handgun. On May 12, 2020, Rocky Mount Police responded to a shooting at a residential location. There, they encountered Williams, who was in possession of a stolen .9mm handgun.
Acting U.S. Attorney Acker commented: “The United States Justice Department and the United States Attorney’s Office are aggressively pursuing violent offenders and gang members. This sentence is part of our efforts to “Take Back North Carolina” from those who wish to bring harm to the citizens of the Eastern District of North Carolina.”
“ATF remains committed to protecting lives and property against violent gun crime,” said ATF Special Agent in Charge Vince Pallozzi. “Our federal and local law enforcement agencies put together a very comprehensive investigation and stopped a serious threat to our communities. This arrest and conviction absolutely makes our community safer.”
“Our mission here at the Rocky Mount Police Department is to improve the quality of life in the city of Rocky Mount by building partnerships to reduce crime,” commented Rocky Mount Police Chief Robert Hassell. “We value our partnership with our Federal Law Enforcement agencies, who assist us in creating a safe environment for all citizens who reside and visit Rocky Mount, NC. The Rocky Mount Police Department will continue to work with Federal, State, and Local law enforcement agencies while providing the highest level of police services.”
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Raleigh Police Department, the Rocky Mount Police Department, and the Wake County Sheriff’s Office investigated the case and Assistant U.S. Attorney Aakash Singh prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-cr-00250-M.
Presque Isle Man Sentenced for Conspiring to Distribute MethamphetamineRead the Press Release
BANGOR, Maine: A Presque Isle man was sentenced today in federal court for conspiring to distribute and possess with intent to distribute methamphetamine, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge Lance E. Walker sentenced Reece Humphrey, 28, to 10 years in prison and three years of supervised release. Humphrey pleaded guilty in April 2021.
According to court records, between approximately July 2018 and May 2019, members of the conspiracy obtained methamphetamine in western and southern states from sources in Mexico. Humphrey and his co-conspirators distributed the drugs in Aroostook County and other parts of central and northern Maine. Humphrey traveled with co-conspirators on at least one trip to Mexico and Arizona to obtain methamphetamine and transport it back to Maine.
The U.S. Drug Enforcement Administration, Homeland Security Investigations and the Maine Drug Enforcement Agency investigated this case with the assistance of multiple state and local law enforcement agencies.
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.
Ohio man admits to drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Rashaad Shadee Washington, of Pleasant City, Ohio, has admitted to drug charges, Acting United States Attorney Randolph J. Bernard announced.
Washington, 37, pleaded guilty today to one count of “Distribution of Methamphetamine within 1000 Feet of a Protected Location” and two counts of “Distribution of Methamphetamine.” Washington admitted to selling methamphetamine, sometimes near McNinch Primary School, in Marshall County and Ohio County in February and March 2021.
Washington is facing at least one and up to 40 years of incarceration and a fine of up to $2,000,000 for the protected location charge, and up to 20 years of incarceration and a fine of up to $1,000,000 for each of the distribution charges. 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 Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
New Jersey Man Extradited to United States to Face Charges for Wire Fraud and International Money LaunderingRead the Press Release
TRENTON, N.J. – A New Jersey man has been arrested for charging unauthorized credit card transactions for music lessons that were not provided to students, and laundering these funds outside of the United States, Acting U.S. Attorney Rachael A. Honig announced.
Michael Lawson, 49, was indicted in 2013 on six counts of wire fraud and six counts of international money laundering. Lawson was extradited from the Czech Republic, made his initial appearance today before U.S. Magistrate Judge Bongiovanni in Trenton federal court, and was released.
According to documents filed in this case and statements made in court:
Lawson was the owner of several internet-based companies that matched art and music teachers with students in need of lessons throughout the United States. The students entered into contracts with Lawson’s companies and agreed to pay for lessons via online credit card transactions. Beginning in November 2008, Lawson started renewing students’ contracts for music lessons without the students’ knowledge and consent, and started charging the students’ credit cards for the lessons that they had not requested. Lawson then directed the funds to be transferred internationally to accounts that he controlled abroad.
The counts of wire fraud are punishable by a maximum of 20 years in prison and a maximum fine $250,000, or twice the gross gain or loss from the offense, whichever is greatest. The counts of money laundering are punishable by a maximum penalty of 20 years in prison and a maximum fine of $500,000, or twice the amount involved in the offense, whichever is greater.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges. She also thanked the U.S. Marshals Service; the Ministry of Justice of the Czech Republic; the Czech Police Presidium; INTERPOL; the office of FBI Legat Prague; the office of FBI Legat "The Hague;" and FBI-New York JFK Airport Resident Agency, for their assistance. The Justice Department’s Office of International Affairs provided substantial assistance in securing Lawson’s arrest and extradition from the Czech Republic.
The government is represented by Assistant U.S. Attorney Eric Suggs in Trenton.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Mt. Carmel Doctor Pleads Guilty to Operating A Massive “Pill Mill”Read the Press Release
WILLIAMSPORT –The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dr. Raymond Kraynak, age 64, of Mt. Carmel, Pennsylvania, pled guilty on September 23, 2021, before Chief United States District Court Judge Matthew W. Brann to 12 counts of unlawful distribution of a controlled substance. The guilty plea occurred after 13 days of trial testimony in the Williamsport federal courthouse and after the government rested its case-in-chief.
According to Acting United States Attorney Bruce D. Brandler, Kraynak pled guilty to 12 counts of unlawful distribution and dispensing of a controlled substance outside the usual course of professional practice and not for legitimate medical purpose. Kraynak also admitted that the Schedule II narcotic opioid drugs that he prescribed resulted in the deaths of five of his patients. Under the terms of his plea agreement, and if accepted by the Court, Kraynak will be sentenced to a 15 year term of imprisonment on each of the twelve counts he pleaded guilty to and the sentences will run concurrently. Kraynak also faces a fine of $1 million, and a maximum term of supervised release for up to life.
Kraynak was indicted by a federal grand jury on December 20, 2017, in a 19-count indictment charging unlawful distribution and dispensing of controlled substances, causing the death of five patients by the unlawful distribution and dispensing of controlled substances, and maintaining two drug-involved premises, one in Mt. Carmel and the other Shamokin, Pennsylvania. Kraynak stopped seeing patients and surrendered his license in December 2017 when he was arraigned in federal court on the indictment.
Kraynak operated two offices, one in Mt. Carmel and the other in Shamokin, Pennsylvania, both known as Keystone Family Medicine Associates, and prescribed approximately 9.5 million units of oxycodone, hydrocodone, oxycontin and fentanyl to patients between January 2014 and July 31, 2017. The prosecution evidence included testimony from DEA analysts that Kraynak was the top prescriber of opioids in Pennsylvania in 2014, 2015, and 2016 and during those years prescribed more opioids than both the Veterans Medical Center in Pittsburgh and the Veterans Hospital in Philadelphia.
The prosecution’s evidence at trial also included testimony by a medical expert that Kraynak continued to prescribe high doses of opioids despite knowing that patients had previously been treated for drug overdoses, respiratory problems and other medical conditions increasing the risks of overdose and death.
The prosecution’s evidence also established that Kraynak, in prescribing these opioids to multiple patients outside of the usual course of professional practice and without a legitimate medical purpose, and did so without conducting a proper medical examination, inadequately verifying the patient’s medical complaint, and failing to assess the risk of abuse by individual patients.
“When this case was indicted in 2017 former Attorney General Jeff Sessions described Kraynack’s behavior as ‘unconscionable’,” stated Acting United States Attorney Bruce D. Brandler. Former AG Sessions further stated that “we will take this fight to street dealers, corrupt doctors, and the companies that helped fuel this devastating crisis.” The Department of Justice continues this fight under the leadership of Attorney General Merrick Garland and the Middle District of Pennsylvania is proud to be a part of it.”
“Dr. Kraynak’s criminal acts are especially reprehensible as his unlawful distribution of powerful painkillers resulted in the death of five people,” said Thomas Hodnett, Acting Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “His total and utter disregard of his professional and ethical obligations as a doctor and care of his patients was sickening.”
"Dr. Kraynak recklessly funneled millions of units of opioids into Shamokin neighborhoods, continuing to fuel an epidemic that takes the lives of 14 Pennsylvanians every day," said Attorney General Shapiro. "We're working closely with our federal partners to combat this crisis that continues to destroy Pennsylvania families and communities."
This case was investigated by the Drug Enforcement Administration Diversion Control Division, with assistance from the Pennsylvania State Police, the Pennsylvania Office of Attorney General, the Mt. Carmel Borough Police Department, Shamokin Police Department, the Schuylkill County Drug Task Force, the Commonwealth of Pennsylvania Bureau of Professional and Occupational Affairs, the Commonwealth of Pennsylvania Department of Health, Office of Drug Surveillance and Misuse Prevention, the Northumberland County Coroner’s Office, the Schuylkill County Coroner’s Office, and Lehigh County Coroner’s Office. Assistant United States Attorneys William Behe and George Rocktashel prosecuted the case.
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Michigan Man Pleads Guilty to Threatening GHUHS StudentsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated Jason Graham, 24, of Holland, Michigan, pled guilty today to making a 2019 threat over Facebook to “shoot up” Green Mountain Union High School located in Chester, Vermont.
According to court documents, in February 2019, Jason Graham became engaged in an on-line dispute on Facebook with a group of Vermont high school students. During the course of the dispute, on February 4, 2019, Graham made threats via Facebook to “shoot up” the students’ school. On February 7, 2019, as the on-line dispute continued, Graham arranged for an associate to call the Vermont students’ high school and state that he had placed a bomb inside the school and had sharpshooters outside the building.
At the plea hearing, the government noted that more than half the GMUHS student body skipped school in response to Graham’s February 4, 2019 Facebook threat, and that the subsequent bomb threat to GMUHS drew a massive law enforcement response.
According to court documents, at the time Graham orchestrated the threats, Graham was under the supervision of Michigan authorities for prior felony convictions. Shortly after the threats were tracked to Graham, authorities in Michigan confronted Graham at his residence and found him unlawfully possessing a firearm. Graham was then arrested and convicted of a Michigan firearm violation, and recently completed his minimum state term of incarceration for that conviction.
According to the terms of the federal plea agreement, in exchange for admitting to a violation of 18 U.S.C. § 875(c), which prohibits the making of threats in interstate commerce, Graham will receive a sentence of no more than one year and one day. Graham will remain detained pending sentencing.
Acting U.S. Attorney Jonathan A. Ophardt thanked Chester Police Department, the Vermont State Police, the Vermont Intelligence Center, and the Federal Bureau of Investigation’s Joint Terrorism Task Force for their investigation of the case. Assistant U.S. Attorneys Eugenia A. P. Cowles and Michael P. Drescher are prosecuting the case. Assistant Federal Public Defender David McColgin represents Graham.
Mexican National Pleads Guilty to Drug Trafficking Following Two-Kilogram Cocaine DealRead the Press Release
BOSTON – A Mexican national pleaded guilty yesterday in federal court in Boston in connection with selling two kilograms of cocaine.
Ana Guadalupe Acosta Grajeda, 58, pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Jan. 14, 2022. Grajeda and her son, Carlos Acosta Estrella were indicted in October 2019.
According to court documents, Grajeda and Estrella were arrested after they were videotaped selling two kilograms of cocaine to a cooperating witness in East Boston. A search of Estrella and Grajeda’s apartment allegedly resulted in the seizure of one kilogram of heroin, numerous cellphones, a high-powered tactical shotgun with a laser sight and a box of ammunition for the shotgun.
The charge of possession with intent to distribute 500 grams or more of cocaine provides for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistant U.S. Attorney Christopher Pohl of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Meriden Man Sentenced to More Than 6 Years in Prison for Trafficking Heroin from Bridgeport MarketsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that EDDY ANTONIO TORRES MOREL, 51, of Meriden, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 78 months of imprisonment followed by three years of supervised release for trafficking heroin. Judge Shea also ordered Torres to pay a $50,000 fine.
According to court documents and statements made in court, an investigation revealed that Torres was trafficking narcotics from Big Daddy’s Deli and Jamal’s Market, two stores he operated on East Main Street in Bridgeport. During the investigation, law enforcement made two controlled purchases of a half-kilogram of heroin from Torres, first at Jamal’s Market on October 29, 2019, and then at Big Daddy’s Deli on January 24, 2020.
Torres was arrested on February 5, 2020. On that date, investigators searched his residence and stores and seized two firearms, assorted firearm parts, ammunition, and approximately $22,000 in cash.
On June 28, 2021, Torres pleaded guilty to one count of conspiracy to possess with intent to distribute one kilogram or more of heroin.
Torres, who is released on a $300,000 bond, is required to report to prison on February 10, 2022.
This matter was investigated by the FBI’s Bridgeport Safe Streets Task Force, the Drug Enforcement Administration, the Bridgeport Police Department and the Stamford Police Department. The case was prosecuted by Assistant U.S. Attorney Joseph Vizcarrondo.
Maryland Man Sentenced for Credit Card Fraud OffensesRead the Press Release
PORTLAND, Maine: A Maryland man was sentenced today in federal court for using counterfeit credit cards, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge John A. Woodcock, Jr., sentenced Charles Harris, 38, to eight months in prison and three years of supervised release. He was also ordered to pay $1,008.15 in restitution. He pleaded guilty in December 2020.
According to court records, in December 2018, Harris and his co-defendant, Bryan Boley, used counterfeit credit cards at Maine retail outlets. The credit card numbers were bought online.
Harris’s co-defendant Boley was sentenced to 22 months in prison and three years of supervised release on November 15, 2019.
The U.S. Secret Service; the Maine State Police; and the Auburn, Brunswick, Cape Elizabeth and Yarmouth police departments investigated the case.
Maryland Man Facing Federal Indictment for Fraudulently Obtaining $3.5 Millions in COVID Relief FundsRead the Press Release
Greenbelt, Maryland – A federal grand jury has returned an indictment charging Rudolph Elwood Brooks, Jr., age 45, of Bowie, Maryland, with federal wire fraud and money laundering charges.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Shimon R. Richmond of the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC OIG); Acting Special Agent in Charge Darrell Waldon of the Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Inspector General Hannibal “Mike” Ware of the U.S. Small Business Administration Office of Inspector General (SBA OIG).
The nine-count indictment charges Brooks with three counts of wire fraud relating to Brooks’ transmission of loan applications submitted through the Paycheck Protection Program (“PPP”) in the names of three entities controlled by Brooks: Cars Direct by Gavawn HWD Bob’s Motors (“Cars Direct”), Madaro, LLC (“Madaro”), and Kingdom Tabernacle of Restoration of Ministries (“Kingdom Tabernacle”). As alleged in the indictment, Brooks electronically submitted PPP loan applications in the name of Cars Direct, Madaro and Kingdom Tabernacle containing false statements regarding the number of employees and payroll expenses of the entities. In support of the PPP loan applications, Brooks also submitted false tax forms not on file with the Internal Revenue Service.
On May 9, 2020, the Cars Direct PPP loan was approved and on May 12, 2020 $1,556,589 in loan proceeds were deposited into an account controlled by Brooks. On May 11, 2020, the Madaro PPP loan was approved and on May 13, 2020 $204,266 in loan proceeds were deposited into an account controlled by Brooks. On May 14, 2020, the Kingdom Tabernacle PPP loan was approved and on May 15, 2020 $1.8 million in loan proceeds were deposited into an account controlled by Brooks.
In total, on the basis of the false and fraudulent PPP loan applications, Brooks obtained at least $3,560,855 in PPP loan proceeds. Brooks used the PPP loan proceeds for his personal benefit and on payments and purchases not permissible under the Paycheck Protection Program, including payments for a residence, the purchase of a luxury vehicle, purchases at restaurants, retail stores, grocery stores, cash withdrawals and transfer to other bank accounts controlled by Brooks.
The indictment also charges Brooks with three counts of money laundering for wire transfers derived from the criminal proceeds of the PPP loans that were used for the purchase of a 2018 Tesla Model 3, a real property in Baltimore, Maryland, and a real property in Upper Marlboro, Maryland. The indictment also charges Brooks with three counts of money laundering for the April 5, 2021 purchase of three $100,000 cashier’s check payable to “Rudolph Brooks” from the proceeds of the fraudulent PPP loans.
To date, the United States has recovered more than $1.6 million in proceeds of the fraudulent PPP loans as well as a 2018 Tesla Model 3 purchased with proceeds of the Cars Direct PPP loan. As alleged in the indictment, if convicted, the United States will seek forfeiture of the seized property as well as the Upper Marlboro, Maryland property purchased with fraud proceeds. The United States also filed a parallel civil forfeiture complaint against the Upper Marlboro, Maryland property on August 12, 2021 alleging that the property was purchased with more than $500,000 in proceeds traceable to the Kingdom Tabernacle and Cars Direct PPP loans.
As detailed in the indictment, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted in March 2020 to provide emergency financial assistance to the millions of Americans suffering from the economic consequences of COVID-19. The CARES Act authorized up to $659 billion in forgivable loans to small businesses for employee retention and certain business expenses through the Paycheck Protection Program (“PPP”). The business must use PPP loan proceeds on payroll costs, mortgage interest, rent, and utilities. Initially, the program allowed the principal to be forgiven if the business spent the loan proceeds on qualifying expenses within eight weeks of loan issuance and used at least 75 percent of the loan for payroll. On June 5, 2020, the Paycheck Protection Program Flexibility Act of 2020 went into effect. This law extended the period from eight weeks to 24 weeks that the loan proceeds had to be spent and reduced the requirement that the loan proceeds be spent on payroll from 75 percent to 60 percent.
If convicted, Brooks faces a maximum sentence of 20 years in federal prison for wire fraud and money laundering followed by three years of supervised release. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the FDIC OIG, the IRS-CI, the FBI, and the SBA OIG for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Sean R. Delaney, Jessica C. Collins, and Jennifer L. Wine, who are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach.
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Manhattan U.S. Attorney Announces Criminal and Civil Charges Against CEO of Apparel Company for Engaging in Customs FraudRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Peter C. Fitzhugh, the Special Agent in Charge of the New York Office of the U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”), and Marty Raybon, Acting Director, Field Operations, New York, U.S. Customs and Border Protection (“CBP”), announced the filing of criminal and civil charges against GEORGE ILOULIAN, a/k/a “George Illulian,” the CEO of an apparel company located in New York, New York. ILOULIAN was charged, in an indictment unsealed yesterday, with participating in a years-long scheme to defraud CBP by submitting invoices to CBP that falsely understated the true value of the goods his company imported into the United States, thereby evading the obligation to pay hundreds of thousands of dollars in customs duties.
ILOULIAN was arrested yesterday and presented before U.S. Magistrate Judge James L. Cott in Manhattan federal court. The criminal case has been assigned to U.S. District Judge Paul G. Gardephe. In addition, a civil fraud lawsuit against ILOULIAN and his company, DELTA UNIFORMS, INC. (“DELTA”), which is also assigned to Judge Gardephe, was unsealed in Manhattan federal court earlier today. The civil complaint asserts that ILOULIAN and DELTA violated the False Claims Act by misrepresenting the true value and nature of the goods they imported into the United States on entry documents submitted to CBP. The conduct in this matter was first brought to the attention of federal law enforcement by a whistleblower who filed a lawsuit under the False Claims Act.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, George Iloulian cheated the United States out of hundreds of thousands of dollars by causing false documents that misrepresented the value of imported goods to be submitted to CBP to avoid paying lawfully owed customs duties. Iloulian now faces criminal charges for his alleged fraud, and the government’s civil suit seeks treble damages and penalties against Iloulian and his company.”
HSI Special Agent in Charge Peter C. Fitzhugh said: “Iloulian allegedly evaded the obligation to pay hundreds of thousands of dollars in customs duties using a double-invoicing scheme, essentially creating two invoices, one for payment and one for customs. HSI New York and U.S. Customs and Border Protection will continue to partner in protecting U.S. trade from perpetrators who intentionally defraud the U.S. government for a profit.”
CBP Acting Director of New York Field Operations Marty Raybon said: “U.S. Customs and Border Protection is proud to have played an important role to this ongoing investigation that resulted in the takedown of an elaborate conspiracy to defraud the United States of hundreds of thousands of dollars in revenue. This case serves as a great example of collaborative law enforcement efforts to uncover and dismantle nefarious enterprises that seek to defraud the United States government for personal gain while causing economic harm to their competitors.”
According to the allegations in the Government’s indictment and civil complaint[1]:
From at least in or about 2010 through at least in or about 2020, ILOULIAN, and others known and unknown, including individuals associated with overseas manufacturers, conspired to submit fraudulent invoices to CBP that understated the value of apparel imported into the United States, thereby depriving the United States of hundreds of thousands of dollars in customs duty revenue. ILOULIAN and his co-conspirators achieved lower customs duties on imported goods in two ways: (i) a “double-invoicing scheme,” and (ii) a “fabric-type scheme.”
To effect the double-invoicing scheme, which was perpetrated by ILOULIAN and his co-conspirators from at least in or about 2010 through at least in or about 2020, ILOULIAN utilized two invoices: One invoice, at times referred to by ILOULIAN and his co-conspirators as the “Actual Invoice” or the “For Payment” invoice, contained higher prices and reflected what DELTA actually paid overseas manufacturers for apparel. The second invoice, which they at times referred to as the “Customs Invoice” or “For Customs Declaration” invoice, contained false lower prices. The information in the Customs Invoice was submitted by DELTA, through a customs broker (the “Customs Broker”), to CBP. CBP relied on the information from the Customs Invoice in assessing and collecting customs duties from DELTA. Accordingly, by presenting the false Customs Invoices to CBP, DELTA was able to pay fraudulently lower customs duties than DELTA actually owed. In one version of the double-invoicing scheme, DELTA directed an overseas manufacturer to send to DELTA two sets of invoices for the same shipment of merchandise, the Actual Invoice and the Customs Invoice. In a second version of the double-invoicing scheme, the overseas manufacturer provided DELTA with only the Actual Invoice; a Customs Invoice was created by other means and provided by DELTA to the Customs Broker.
From at least in or about 2011 through at least in or about 2016, ILOULIAN and his co-conspirators also engaged in a fabric-type scheme. To effect the fabric-type scheme, DELTA directed an overseas manufacturer to misstate the composition of the fabric in the apparel in order to obtain a lower duty rate. Specifically, the invoice would indicate that the imported goods were predominantly made of cotton rather than from man-made fibers, even though the reverse was true. The falsified invoices were then presented to CBP, which allowed DELTA to pay lower customs duties than DELTA actually owed, because materials containing more cotton than man-made materials are subject to lower duty rates.
These multi-year fraud schemes resulted in the loss of hundreds of thousands of dollars in duty revenue to the United States.
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ILOULIAN is charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison, one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of falsely effecting the entry of goods into the United States, which carries a maximum sentence of two years. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. ILOULIAN and DELTA are also charged with civil claims under the False Claims Act, through which the Government may recover treble damages and civil penalties arising from his conduct.
Ms. Strauss thanked HSI, CBP, and the Special Agents of the United States Attorney’s Office for the Southern District of New York for their efforts and ongoing support and assistance with the case.
The criminal case is being handled by the Office’s General Crimes Unit, and Assistant U.S. Attorney Kaylan E. Lasky is in charge of the prosecution.
The civil case is being handled by the Office’s Civil Frauds Unit, and Assistant U.S. Attorney Dominika Tarczynska is in charge of the matter.
The charges contained in the indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the indictment and the civil complaint, and the descriptions of the indictment and civil complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Mandeville Man Sentenced for Defrauding FEMA After a DisasterRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that BRUCE D. COX, age 62, of Mandeville, was sentenced on September 23, 2021 to one year of probation and over $35,000 in combined fine and restitution payments today for theft of government funds in connection with a false application for disaster assistance.
According to court documents, COX submitted a falsified application to the Federal Emergency Management Administration (“FEMA”) for disaster assistance. Following the August 2016 storms and flooding in Tangipahoa Parish, the application sought disaster assistance for a rental property in Robert, Louisiana that COX managed. In the application, COX falsely stated that the property in Robert was the owner’s primary residence, when in fact COX rented out the property to a tenant and knew that the property’s owner had never lived there. As a result of false statements in the application, FEMA paid disaster benefits to the property’s owner, despite the property owner not qualifying for those benefits.
United States Magistrate Judge Michael B. North sentenced COX to one year of probation, a fine of $4,000, restitution of $31,361.28 to FEMA, and a mandatory special assessment of $25.
U.S. Attorney Evans praised the work of the Department of Homeland Security’s Office of Inspector General. Assistant U.S. Attorney Nicholas D. Moses is in charge of the prosecution.
Lakewood Man Pleads Guilty to Wire FraudRead the Press Release
ROCKFORD — A Lakewood, Ill., man pleaded guilty Thursday to a federal criminal charge of wire fraud.
From approximately January 2007 through April 2015, VALENTINO VALERIU AGIGNOAE, 55, participated in a scheme to defraud and obtain money from the United States, specifically Social Security Administration disability insurance benefits. In total, Agignoae fraudulently obtained and caused the U.S. government to suffer losses of approximately $157,503.
Agignoae faces a maximum term of imprisonment of twenty years. As part of the guilty plea, Agignoae agreed to the entry of a personal money judgment in the amount of $157,303.
Sentencing is set for Jan. 13, 2022, at 1:30 p.m. before U.S. District Judge Joan Humphrey Lefkow.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Andrew Boockmeier, Special Agent-in-Charge of the Chicago Office of the Social Security Administration's Office of the Inspector General. The government is represented by Assistant U.S. Attorneys Michael C. Beckman, Robert S. Ladd, and Michael D. Love, and Special Assistant U.S. Attorney Niranjan Emani.
Agignoae began receiving SSA disability insurance benefits in 1996. In 2015, Agignoae’s benefits were terminated following a multi-year SSA-OIG investigation. The probe revealed that Agignoae failed to notify the SSA that he was able to work and was in fact working at a Chicago restaurant, which he also owned. He also made false statements and representations regarding prior work and employment.
Kensington Drug Boss Convicted at Trial for Supplying Crack and Heroin to Open-Air Drug MarketRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Ricardo Carrion, a.k.a. “PR,” age 41, of Philadelphia, PA, was convicted at trial of all counts with which he was charged, including conspiracy to distribute controlled substances and possession with intent to distribute crack and heroin, arising from his leadership role in supplying a drug trafficking organization operating on the 3100 block of Weymouth Street, steps from McPherson Square and just two blocks from the notorious intersection of Kensington & Allegheny Avenues in the Kensington section of Philadelphia.
This case originated from a joint investigation into the scourge of drug trafficking and overdoses in the Kensington area conducted by the U.S. Drug Enforcement Administration and the Philadelphia Police Department. During the investigation, the agencies utilized covert surveillance to observe thousands of drug customers purchasing narcotics on the 3100 block of Weymouth Street, in effect, an open-air drug market. Street dealers were observed utilizing stash houses on the block to store narcotics, including the target drug crew’s signature stamped heroin called “Funeral” so named to advertise its potency and lethalness to addicted consumers.
After a series of search warrants were executed in 2019, the DEA developed information that the defendant was the supplier of narcotics in this organization. Covert surveillance showed him repeatedly carrying large bags into stash houses. In June of that same year, the DEA and PPD initiated a traffic stop of a cab in which Carrion was the sole passenger. At his feet, law enforcement recovered a bag containing over 3,300 flip top containers of crack cocaine. Evidence presented at trial showed that Carrion used code words including “lenta,” which translates to “slow” in English, and “hard cola” to discuss the heroin he ordered for the street dealers. Prosecutors also presented evidence that the defendant supplied thousands and thousands of servings of heroin and crack cocaine to this city block from 2018 until the DEA and PPD dismantled his drug operation.
“This years-long drug trafficking enterprise impacted more than just this one block; it left a path of destruction across Kensington and throughout Philadelphia,” said Acting U.S. Attorney Williams. “This trial conviction is one more example of this Office’s dedicated effort to take down prolific drug dealers pedaling poison to those suffering from addiction, and we remain committed to cutting off the supply of deadly drugs into our communities.”
“No area in Pennsylvania has been more disproportionately affected by the ravages of the opioid epidemic than Kensington, particularly the area around McPherson Square where Carrion supplied and distributed heroin and crack cocaine,” said Thomas Hodnett, Acting Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Carrion’s criminal activities ruined the quality of life for the residents who live in Kensington and destroyed the lives of those struggling with substance use disorder. His federal drug conviction will ensure that he serves a lengthy prison sentence for his drug-trafficking activities.”
The case was investigated by Drug Enforcement Administration and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorneys Jason D. Grenell and Derek E. Hines.
Kasilof Man Indicted for Making Interstate Death ThreatsRead the Press Release
ANCHORAGE – A federal grand jury in Alaska returned an indictment charging a Kasilof, Alaska, man with five counts of making interstate threats and one count of cyberstalking for making death threats from Alaska to individuals in other states.
According to court documents, Benjamin Tarbell, 34, began making death threats against individuals in Vermont and other states in August 2021. The threats, which continued to escalate through early September, were made via text messages, Instagram messages and telephone calls. Tarbell moved from Vermont to Alaska around April 2021.
Tarbell was arrested by the FBI on a federal complaint on September 10 at the Kenai Municipal Airport as he was checking in for his flight to Vermont with a rifle, two handguns, ammunition, two knives and a tactical vest.
The defendant made his initial court appearance on September 14 before U.S. Magistrate Judge Matthew M. Scoble of the U.S. District Court for the District of Alaska. Tarbell is in federal custody and will remain detained pending trial.
If convicted, he faces a maximum sentence of five years each for counts 1 through 5, and a maximum of ten years in prison for count 6. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation is investigating the case with support from the Alaska State Troopers, Vermont State Police and the Massachusetts State Police.
Assistant U.S. Attorney Michael Heyman is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Justice Department Awards Nearly $187 Million to Support Community SafetyRead the Press Release
The Department of Justice today announced that the Bureau of Justice Assistance (BJA), a component of the department’s Office of Justice Programs (OJP), has awarded almost $187 million to support state, local and tribal public safety and community justice activities. The awards, from the Edward Byrne Memorial Justice Assistance Grant (JAG) Program, are going to all 50 states, the District of Columbia and the territories of American Samoa, Guam, the Northern Mariana Islands, Puerto Rico and the U.S. Virgin Islands.
“Our state, local and tribal law enforcement partners are at the forefront of public safety in their communities, and their effectiveness depends on a justice system that is fair, equitable and engages the communities they serve,” said Attorney General Merrick B. Garland. “These awards will help support traditional crime reduction and violence prevention efforts across the country, as well as innovative community violence intervention strategies that increase trust and make communities a full partner in protecting public health and safety.”
“The crime and justice problems facing America today are unique to each community, and so are many of the solutions,” said Associate Attorney General Vanita Gupta. “The awards we are announcing today, and many more to come, can be used by our state and local partners to support crime reduction efforts, diversion programs, reentry services and a wide range of public safety activities that are vital in their efforts to keep communities safe and uphold the promise of equal justice to all citizens.”
The JAG program is the leading source of federal justice funding to state and local jurisdictions. It provides states, tribes and local governments with critical funding to support law enforcement, prosecutors, public defenders, courts and corrections and community corrections agencies. JAG funding also supports crime prevention and education initiatives, drug treatment and enforcement activities, criminal justice planning and evaluation, technology improvements, crime victim and witness initiatives and mental health programs, including behavioral programs and crisis intervention teams.
“Public safety and equal justice are twin, and mutually reinforcing, goals that we have been fighting to achieve,” said Acting Assistant Attorney General Amy L. Solomon for the OJP. “The resources we are making available today reflect our unwavering commitment to protecting America’s communities while ensuring that our systems of justice operate fairly, effectively and in a manner that earns the trust of the people they serve.”
In addition to the state JAG awards announced today, BJA will make more than 900 awards, totaling almost $85 million, under its local JAG program in the coming weeks. The JAG program is a key part of the Community Violence Intervention strategy announced by President Biden in April.
To view the JAG allocation amounts, please visit https://bja.ojp.gov/program/jag/fy-2021-allocations.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
Jury Finds Hartford Man Guilty of Illegal Gun PossessionRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that a federal jury in Hartford has found JOSE PEREZ, 40, of Hartford, guilty of possession of a firearm by a felon.
The trial before U.S. District Judge Vanessa L. Bryant began yesterday and the jury returned the verdict this afternoon.
According to the evidence and testimony at trial, on November 13, 2016, Hartford Police detectives responding to a ShotSpotter activation recovered a loaded revolver in a car last registered to Perez and containing documents addressed to Perez in the glove box. DNA analysis of the seized firearm indicated Perez had handled the firearm.
Prior to November 2016, Perez had sustained state felony convictions for narcotics and burglary offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Perez was apprehended on January 19, 2021.
At sentencing, which is not scheduled, Perez faces a maximum term of imprisonment of 10 years. Perez is released on a $30,000 bond pending sentencing.
This matter was investigated by the Hartford Police Department and the FBI’s Connecticut Violent Crime Task Force, with the assistance of the Connecticut Forensic Science Laboratory. This case is being prosecuted by Assistant U.S. Attorneys Tara E. Levens and Maria del Pilar Gonzalez.
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.
Jury Convicts Hampton Roads Conspirators of Drug Trafficking and Money Laundering ChargesRead the Press Release
NEWPORT NEWS, Va. – On Wednesday, a federal jury convicted two individuals on charges relating to drug trafficking and money laundering.
“As the evidence at trial showed, the defendants engaged in a conspiracy to launder the proceeds of their drug trafficking crimes on behalf of a network of conspirators that peddled illegal and potent substances from Puerto Rico into the Hampton Roads area,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Our Office is grateful to the trial team and our law enforcement partners for their thorough investigative efforts, which helped secure the guilty verdicts in this case.”
According to court records and evidence presented at trial, beginning in or about 2018 through in or about 2020, Jose Luis Cruz-Colon, 42, and Nastassja Lopez-Alvarado, 31, both originally from Puerto Rico but living in Suffolk, were responsible for importing kilogram quantities of cocaine into the Hampton Roads area for distribution and then sending the proceeds of those illegal sales back to Puerto Rico to further the drug trafficking conspiracy. Their participation in the conspiracy came to light as part of a larger investigation into the criminal activities of the Rivera Drug Trafficking Organization in the Hampton Roads area.
Through court-authorized wiretap interceptions, parcel interdictions, and other investigative work, agents were able to conduct controlled purchases of heroin and seize at least three kilograms of cocaine. Further, on December 12, 2020, Cruz-Colon and Lopez-Alvarado were stopped at the Richmond International Airport and were prevented from taking approximately $28,000 in U.S. currency in a vacuum-sealed bag from the Hampton Roads area to Puerto Rico.
Cruz-Colon was convicted of conspiracy to launder money and conspiracy to distribute and possess with intent to distribute at least five kilograms or more of cocaine and at least one kilogram or more of heroin. Lopez-Alvarado was convicted of conspiracy to launder money and conspiracy to distribute and possess with intent to distribute at least five kilograms or more of cocaine. Cruz-Colon and Lopez-Alvarado each face a mandatory minimum sentence of 10 years in prison with a maximum possible penalty of life in prison when sentenced on February 2, 2022. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; Brian Dugan, Special Agent in Charge of the Federal Bureau of Investigation’s (FBI) Norfolk Field Office; Daniel A. Adame, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Kenneth Mark Talbot, Chief of Hampton Police; and Larry D. Boone, Chief of Norfolk Police, made the announcement after U.S. District Judge David J. Novak accepted the verdict.
The Richmond International Airport Police provided significant assistance in this investigation. This case was investigated by the DEA Norfolk Office in conjunction with the Norfolk Police Department.
Assistant U.S. Attorneys Eric Hurt and Julie Podlesni are prosecuting 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-69.
Jackson Man Sentenced to over 4 Years in Prison for Possessing a Firearm as a Convicted FelonRead the Press Release
Jackson, Miss – A Jackson man was sentenced to 50 months in prison for possessing a firearm as a convicted felon, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in Mississippi.
According to court documents, on May 5, 2018, Braxton Dontrel Burns, 35, tossed a handgun from a vehicle he was driving when a Jackson Police officer initiated a traffic stop. Burns had a prior conviction for auto burglary in Madison County, Mississippi.
On February 20, 2019, Burns was charged with being a convicted felon in possession of a firearm. He pled guilty on September 13, 2019.
The Jackson Police Department and Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigated the case.
Assistant U.S. Attorney Bert Carraway prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. 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.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Sept. 23 was:
Joshua Robert Ludtke, 39, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Ludtke faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Ludtke was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-73.
Terrence Michael Seadeer, 44, of Billings, on charges of prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Seadeer faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Seadeer was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-65.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Sept. 21 was:
Taylor Wind Set, 65, of Ennis, on charges of prohibited person in possession of firearms. If convicted of the most serious crime, Wind Set faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Wind Set was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Forest Service investigated the case. PACER case reference. 21-28.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Sept. 20 was:
Joshua Julius Bartman, 40, of Great Falls, on charges of possession with intent to distribute methamphetamine and distribution of meth. If convicted of the most serious crime, Bartman faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Bartman was detained pending further proceedings. The Drug Enforcement Administration and Great Falls Police Department investigated the case. PACER case reference. 21-43.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Individual Charged with Conspiracy to Possess with Intent to Distribute Fentanyl, Heroin, and MarihuanaRead the Press Release
SAN JUAN, Puerto Rico – On September 22, 2021, a federal grand jury in the District of Puerto Rico returned a four-count indictment charging Israel Hernández with Conspiracy to Possess with Intent to Distribute Controlled Substances, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The United States Postal Inspection Service was in charge of the investigation of the case.
According to the indictment, from on or about 2017 and continuing up to August 11, 2021, in Puerto Rico and California, the defendant conspired and agreed with others to knowingly and intentionally possess with intent to distribute and distribute fentanyl, heroin, and marihuana. Members of this conspiracy acquired kilograms of fentanyl, heroin, and marihuana in California and concealed them in U.S. Postal parcels. Then they deposited these parcels into the mail and sent them to Puerto Rico. Similarly, members of the conspiracy mailed bulk cash proceeds from Puerto Rico back to California.
“Fentanyl is turning up on our streets in increasing quantities. It is also mixed with other substances, oftentimes without the knowledge of the end users of the drugs and with fatal results,” said U.S. Attorney Muldrow. “Federal law provides for particularly severe consequences when illegal drug trafficking results in death and we will aggressively prosecute those who traffic in these deadly drugs.”
“The U.S. Postal Inspection Service is committed to identifying and removing dangerous substances from the mail stream to ensure the safety of our employees and the community,” said Inspector in Charge Carroll Harris of the Los Angeles Division. “This indictment demonstrates our commitment to disrupt these criminal organizations and deliver consequences for the devastation they cause across our nation.”
If convicted, Hernández faces up to life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Special Assistant U.S. Attorney R. Vance Eaton from the U.S Postal Inspection Service is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Idaho Falls Man Sentenced for Drug TraffickingRead the Press Release
POCATELLO – Brian Rogers, 43, of Idaho Falls, was sentenced to 63 months in federal prison for possession with intent to distribute methamphetamine, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. Rogers was originally indicted by a federal grand jury on October 15, 2020 and pleaded guilty to the offense on June 30, 2021.
According to court records, on July 21, 2020, officers from Idaho Department of Correction Probation and Parole, with the assistance of the Idaho Falls Police Department, conducted a parole compliance search of Rogers’ Idaho Falls residence. During the search, officers located a quarter of a pound of methamphetamine along with evidence Rogers was selling methamphetamine. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated a firearm that was also located at the residence.
Senior U.S. District Judge B. Lynn Winmill also ordered Rogers to serve five years of supervised release following his prison sentence. Rogers must also serve a sentence in the State of Idaho based on a parole violation.
Acting U.S. Attorney Gonzalez recognized the cooperative efforts of the Idaho Department of Correction Probation and Parole, Idaho Falls Police Department, and ATF, which led to charges. Mr. Gonzalez added, “Idaho is best served when local, state, and federal law enforcement cooperatively work together. This prosecution task force model, strongly supported by eastern Idaho communities and leaders, reduces violent crime. That is the purpose of Idaho’s reinvigorated Project Safe Neighborhoods program and the Eastern Idaho Partnership Special Assistant U.S. Attorney program. My office is pleased to join the communities of southeast Idaho and the State of Idaho in this important endeavor.”
This case was handled by the U.S. Attorney Office’s specially deputized Special Assistant U.S. Attorney (SAUSA), funded by the Eastern Idaho Partnership (EIP) and the State of Idaho. The EIP is a coalition of local city and county officials in eastern Idaho as well as the Idaho Department of Correction.
The EIP SAUSA program allows law enforcement to utilize the federal criminal justice system – through the EIP SAUSA – to prosecute, convict, and sentence violent, armed criminals and drug traffickers. These criminals often receive stiffer penalties than they might in state courts.
This program was created in January 2016. Since that time, approximately 181 defendants have been indicted by the EIP SAUSA. Of these defendants, 133 have been indicted on drug trafficking charges. The defendants indicted under the program have been sentenced to 7,549 months (approximately 629 years) in federal prison, representing an average prison sentence of 53.53 months (4.46 years). Defendants indicted for drug trafficking offenses serve, on average, approximately 58.92 months (4.91 years) in federal prison.
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Huawei CFO Wanzhou Meng Admits to Misleading Global Financial InstitutionRead the Press Release
Earlier today, Wanzhou Meng, Chief Financial Officer of Huawei Technologies Co., Ltd. (Huawei), appeared before U.S. District Judge Ann M. Donnelly in federal district court in Brooklyn, New York, for an arraignment on charges of conspiracy to commit bank fraud, conspiracy to commit wire fraud, bank fraud, and wire fraud, after she entered into a deferred prosecution agreement (DPA) with the United States Attorney’s Office for the Eastern District of New York, the Counterintelligence and Export Control Section of the Justice Department’s National Security Division (CES), and the Money Laundering and Asset Recovery Section of the Justice Department’s Criminal Division (MLARS) to resolve those charges.
Nicole Boeckmann, Acting United States Attorney for the Eastern District of New York, Acting Assistant Attorney General Mark J. Lesko of the Justice Department’s National Security Division, Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, and Alan Kohler, Assistant Director, Federal Bureau of Investigation, Counterintelligence Division (FBI), announced the deferred prosecution agreement.
“In entering into the deferred prosecution agreement, Meng has taken responsibility for her principal role in perpetrating a scheme to defraud a global financial institution,” stated Acting U.S. Attorney Boeckmann. “Her admissions in the statement of facts confirm that, while acting as the Chief Financial Officer for Huawei, Meng made multiple material misrepresentations to a senior executive of a financial institution regarding Huawei’s business operations in Iran in an effort to preserve Huawei’s banking relationship with the financial institution. The truth about Huawei’s business in Iran, which Meng concealed, would have been important to the financial institution’s decision to continue its banking relationship with Huawei. Meng’s admissions confirm the crux of the government’s allegations in the prosecution of this financial fraud—that Meng and her fellow Huawei employees engaged in a concerted effort to deceive global financial institutions, the U.S. government, and the public about Huawei’s activities in Iran.”
“This Deferred Prosecution Agreement will lead to the end of the ongoing extradition proceedings in Canada, which otherwise could have continued for many months, if not years,” stated Acting Assistant Attorney General Lesko for the Justice Department’s National Security Division. “We are enormously grateful to Canada’s Department of Justice for its dedicated work on this extradition and for its steadfast adherence to the rule of law.”
“Financial institutions are our first line of defense in maintaining the safety and security of the U.S. financial system,” said Assistant Attorney General Polite of the Justice Department’s Criminal Division. “That is why the law requires that companies who avail themselves of the U.S. financial system provide financial institutions with truthful information about their business operations. Meng Wanzhou, CFO of Huawei Technologies, admitted today that she failed to tell the truth about Huawei’s operations in Iran, and as a result the financial institution continued to do business with Huawei in violation of U.S. law. Our prosecution team continues to prepare for trial against Huawei, and we look forward to proving our case against the company in court.”
“Meng's admissions are evidence of a consistent pattern of deception to violate U.S. law. The FBI will continue to aggressively investigate companies doing business in the United States when there are signs they behave with contempt for our laws,” stated FBI Assistant Director Kohler.
The Scheme to Defraud Financial Institutions
According to court filings, and as agreed to by Meng in the DPA’s statement of facts, Skycom Tech. Co. Ltd. (“Skycom”) was a Hong Kong company that primarily operated in Iran. As of February 2007, Skycom was wholly owned by a subsidiary of Huawei Technologies Co., Ltd. (“Huawei”), Hua Ying Management (“Hua Ying”). In November 2007, Hua Ying transferred its shares of Skycom to another entity that Huawei controlled, Canicula Holdings (“Canicula”). At the time Hua Ying transferred its Skycom shares to Canicula, Meng was the Secretary of Hua Ying.
In February 2008, after Huawei transferred ownership of Skycom from Hua Ying to Canicula, Meng joined Skycom’s Board of Directors, which was comprised of Huawei employees. She served on the Board until April 2009. After Meng departed from Skycom’s Board, Skycom’s Board members continued to be Huawei employees, Canicula continued to own Skycom, and Canicula continued to be controlled by Huawei. As of August 2012, Huawei included Skycom among a list of “other Huawei subsidiaries” in Huawei corporate documents written in English.
Between 2010 and 2014, Huawei controlled Skycom’s business operations in Iran, and Skycom was owned by an entity controlled by Huawei. All significant Skycom business decisions were made by Huawei. Moreover, Skycom’s country manager—the head of the business—was a Huawei employee. Individuals employed by Skycom believed they worked for Huawei.
During the same time period, Huawei employees engaged with a U.K. staffing company to provide engineers in Iran to support Skycom’s work with Iranian telecommunications service providers. Negotiations and contracting on behalf of Skycom were conducted by Huawei employees. To pay for these contractors, Huawei sent at least $7.5 million to the U.K. staffing company in a series of approximately 80 payments from Skycom’s bank accounts in Asia, including at a multinational financial institution (“Financial Institution 1”), to the U.K. staffing company’s account in the United Kingdom. The transactions were denominated in U.S. dollars and cleared through the United States.
In December 2012 and January 2013, various news organizations, including Reuters, reported that Skycom offered to sell “embargoed” equipment from a U.S. computer equipment manufacturer in Iran in potential violation of U.S. export controls law, and that Huawei had close ties with Skycom. In a statement to Reuters published in a December 2012 article, Huawei claimed that Skycom was one of its “major local partners” in Iran. Reuters reported that Huawei had further stated that “Huawei’s business in Iran is in full compliance with all applicable laws and regulations including those of the U.N., U.S. and E.U. This commitment has been carried out and followed strictly by our company. Further, we also require our partners to follow the same commitment and strictly abide by the relevant laws and regulations.”
In January 2013, a subsequent Reuters article reported that Meng had served on the Board of Directors of Skycom between February 2008 and April 2009 and identified other connections between Skycom directors and Huawei. The article also quoted the following statement from Huawei: “The relationship between Huawei and Skycom is a normal business partnership. Huawei has established a trade compliance system which is in line with industry best practices and our business in Iran is in full compliance with all applicable laws and regulations including those of the UN. We also require our partners, such as Skycom, to make the same commitments.” This statement was incorrect, as Huawei operated and controlled Skycom; Skycom was therefore not Huawei’s business “partner.”
After these articles were published, Financial Institution 1 and other global financial institutions that provided international banking services to Huawei (collectively, the “Financial Institutions”), including U.S. dollar-clearing, made inquiries to Huawei in response to the above-described press reports. In early 2013, Huawei employees represented to the Financial Institutions that Skycom was just a local business partner of Huawei in Iran and that Skycom had not conducted Iran-related transactions using its accounts at the Financial Institutions.
To address the allegations in the news reports, Huawei requested an in-person meeting with a senior Financial Institution 1 employee. That meeting occurred on August 22, 2013 in Hong Kong, at which time Meng met with an executive of Financial Institution 1 responsible for operations in the Asia Pacific region. During the meeting, Meng delivered a PowerPoint presentation written in Chinese, which was translated by an interpreter into English. Meng stated that she was using an interpreter to be precise in her language.
In her presentation, Meng stated, among other things, that Huawei’s relationship with Skycom was “normal business cooperation” and “normal and controllable business cooperation,” and she described Skycom as a “partner,” a “business partner of Huawei,” and a “third party Huawei works with” in Iran. Those statements were untrue because, as Meng knew, Skycom was not a business partner of, or a third party working with, Huawei; instead, Huawei controlled Skycom, and Skycom employees were really Huawei employees. It would have been material to Financial Institution 1 to know that Huawei controlled Skycom.
In addition, Meng stated that Huawei “was once a shareholder of Skycom” but had “sold all its shares in Skycom.” Those statements were untrue, because, as Meng knew, Huawei had “sold” its shares to an entity that Huawei controlled. Specifically, Huawei transferred Skycom shares from a Huawei subsidiary (Hua Ying) to another entity that was controlled by Huawei (Canicula). It would have been material to Financial Institution 1 to know that Skycom was transferred from one Huawei-controlled entity to another.
Finally, Meng stated that Huawei “operates in Iran in strict compliance with applicable laws, regulations and sanctions” and that “there has been no violation of export control regulations” by “Huawei or any third party Huawei works with.” These statements were untrue because Huawei’s operation of Skycom, which caused the Financial Institutions to provide prohibited services, including banking services, for Huawei’s Iran-based business while Huawei concealed Skycom’s link to Huawei, was in violation of the U.S. Department of the Treasury’s Office of Foreign Assets Control’s Iranian Transactions and Sanctions Regulations, 31 C.F.R. Part 560. Moreover, between 2010 and 2014, Huawei caused Skycom to conduct approximately $100 million worth of U.S.-dollar transactions through Financial Institution 1 that cleared through the United States, at least some of which supported its work in Iran in violation of U.S. law, including $7.5 million for Iran-based contractors from the U.K. staffing company to do work in Iran.
At no point during or after the meeting did Meng, who was aware of Huawei’s public statements about Skycom in Reuters, retract or amend any of those statements. Moreover, Huawei’s Treasurer, who also attended the August Meeting, did not correct or amend any of the statements made by Meng.
Shortly after the meeting between Meng and Financial Institution 1, Huawei prepared an English version of the PowerPoint presentation at Financial Institution 1’s request. Meng later arranged for a paper copy of that PowerPoint presentation to be delivered to the Financial Institution 1 executive she had met with in September 2013. The representations in the English version of the PowerPoint presentation closely tracked the ones Meng had made during the meeting.
After the meeting and subsequent to receipt of Meng’s PowerPoint presentation, Financial Institution 1 decided to continue its relationship with Huawei. The other Financial Institutions similarly continued their respective relationships with Huawei.
The DPA
Under the terms of the DPA, Meng has agreed to the accuracy of a four-page statement of facts that details the knowing false statements she made to Financial Institution 1. Meng also has agreed not to commit other federal, state, or local crimes. If Meng breaches the agreement, she will be subject to prosecution of all of the charges against her in the third superseding indictment filed in this case. The government also agreed to withdraw its request to the Ministry of Justice of Canada that Meng be extradited to the United States.
Assistant U.S. Attorneys Alexander A. Solomon, Julia Nestor, David K. Kessler, Sarah M. Evans, and Meredith A. Arfa, MLARS Trial Attorneys Laura Billings and Christian Nauvel, and CES Trial Attorneys Thea D. R. Kendler, David Lim and R. Elizabeth Abraham are in charge of the prosecution, with assistance provided by Assistant U.S. Attorneys Brian Morris and Brendan King of the Eastern District of New York’s Civil Division and Trial Attorneys Andrew Finkelman, Margaret O’Malley, and John Reisenberg of DOJ’s Office of International Affairs.
The Defendant:
WANZHOU MENG
Age: 49
People’s Republic of ChinaE.D.N.Y. Docket No. 18-CR-457 (S-3) (AMD)
Huawei CFO Wanzhou Meng Admits to Misleading Global Financial InstitutionRead the Press Release
The Chief Financial Officer of Huawei Technologies Co. Ltd., Wanzhou Meng, 49, of the People’s Republic of China (PRC), appeared today in federal district court in Brooklyn, entered into a deferred prosecution agreement (DPA) and was arraigned on charges of conspiracy to commit bank fraud and conspiracy to commit wire fraud, bank fraud and wire fraud.
“In entering into the deferred prosecution agreement, Meng has taken responsibility for her principal role in perpetrating a scheme to defraud a global financial institution,” said Acting U.S. Attorney Nicole Boeckmann for the Eastern District of New York. “Her admissions in the statement of facts confirm that, while acting as the Chief Financial Officer for Huawei, Meng made multiple material misrepresentations to a senior executive of a financial institution regarding Huawei’s business operations in Iran in an effort to preserve Huawei’s banking relationship with the financial institution. The truth about Huawei’s business in Iran, which Meng concealed, would have been important to the financial institution’s decision to continue its banking relationship with Huawei. Meng’s admissions confirm the crux of the government’s allegations in the prosecution of this financial fraud — that Meng and her fellow Huawei employees engaged in a concerted effort to deceive global financial institutions, the U.S. government and the public about Huawei’s activities in Iran.”
“This Deferred Prosecution Agreement will lead to the end of the ongoing extradition proceedings in Canada, which otherwise could have continued for many months, if not years,” said Acting Assistant Attorney General Mark J. Lesko for the Justice Department’s National Security Division. “We are enormously grateful to Canada’s Department of Justice for its dedicated work on this extradition and for its steadfast adherence to the rule of law.”
“Financial institutions are our first line of defense in maintaining the safety and security of the U.S. financial system,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “That is why the law requires that companies who avail themselves of the U.S. financial system provide financial institutions with truthful information about their business operations. Meng Wanzhou, CFO of Huawei Technologies, admitted today that she failed to tell the truth about Huawei’s operations in Iran, and as a result the financial institution continued to do business with Huawei in violation of U.S. law. Our prosecution team continues to prepare for trial against Huawei, and we look forward to proving our case against the company in court.”
“Meng's admissions are evidence of a consistent pattern of deception to violate U.S. law,” said Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division. “The FBI will continue to aggressively investigate companies doing business in the United States when there are signs they behave with contempt for our laws.”
The Scheme to Defraud Financial Institutions
According to court documents, and as agreed to by Meng in the DPA’s statement of facts, Skycom Tech. Co. Ltd. (Skycom) was a Hong Kong company that primarily operated in Iran. As of February 2007, Skycom was wholly owned by a subsidiary of Huawei Technologies Co., Ltd. (Huawei), Hua Ying Management (Hua Ying). In November 2007, Hua Ying transferred its shares of Skycom to another entity that Huawei controlled, Canicula Holdings (Canicula). At the time Hua Ying transferred its Skycom shares to Canicula, Meng was the Secretary of Hua Ying.
In February 2008, after Huawei transferred ownership of Skycom from Hua Ying to Canicula, Meng joined Skycom’s Board of Directors, which was comprised of Huawei employees. She served on the Board until April 2009. After Meng departed from Skycom’s Board, Skycom’s Board members continued to be Huawei employees, Canicula continued to own Skycom, and Canicula continued to be controlled by Huawei. As of August 2012, Huawei included Skycom among a list of “other Huawei subsidiaries” in Huawei corporate documents written in English.
Between 2010 and 2014, Huawei controlled Skycom’s business operations in Iran, and Skycom was owned by an entity controlled by Huawei. All significant Skycom business decisions were made by Huawei. Moreover, Skycom’s countrymanager – the head of the business – was a Huawei employee. Individuals employed by Skycom believed they worked for Huawei.
During the same time period, Huawei employees engaged with a U.K. staffing company to provide engineers in Iran to support Skycom’s work with Iranian telecommunications service providers. Negotiations and contracting on behalf of Skycom were conducted by Huawei employees. To pay for these contractors, Huawei sent at least $7.5 million to the U.K. staffing company in a series of approximately 80 payments from Skycom’s bank accounts in Asia, including at a multinational financial institution (Financial Institution 1), to the U.K. staffing company’s account in the United Kingdom. The transactions were denominated in U.S. dollars and cleared through the United States.
In December 2012 and January 2013, various news organizations, including Reuters, reported that Skycom offered to sell “embargoed” equipment from a U.S. computer equipment manufacturer in Iran in potential violation of U.S. export controls law, and that Huawei had close ties with Skycom. In a statement to Reuters published in a December 2012 article, Huawei claimed that Skycom was one of its “major local partners” in Iran. Reuters reported that Huawei had further stated that “Huawei’s business in Iran is in full compliance with all applicable laws and regulations including those of the U.N., U.S. and E.U. This commitment has been carried out and followed strictly by our company. Further, we also require our partners to follow the same commitment and strictly abide by the relevant laws and regulations.”
In January 2013, a subsequent Reuters article reported that Meng served on the Board of Directors of Skycom between February 2008 and April 2009 and identified other connections between Skycom directors and Huawei. The article also quoted the following statement from Huawei: “The relationship between Huawei and Skycom is a normal business partnership. Huawei has established a trade compliance system which is in line with industry best practices and our business in Iran is in full compliance with all applicable laws and regulations including those of the UN. We also require our partners, such as Skycom, to make the same commitments.” This statement was incorrect, as Huawei operated and controlled Skycom; Skycom was therefore not Huawei’s business “partner.”
After these articles were published, Financial Institution 1 and other global financial institutions that provided international banking services to Huawei (collectively, the “Financial Institutions”), including U.S. dollar-clearing, made inquiries to Huawei in response to the above-described press reports. In early 2013, Huawei employees represented to the Financial Institutions that Skycom was just a local business partner of Huawei in Iran and that Skycom had not conducted Iran-related transactions using its accounts at the Financial Institutions.
To address the allegations in the news reports, Huawei requested an in-person meeting with a senior Financial Institution 1 employee. That meeting occurred on Aug. 22, 2013 in Hong Kong, at which time Meng met with an executive of Financial Institution 1 responsible for operations in the Asia Pacific region. During the meeting, Meng delivered a PowerPoint presentation written in Chinese, which was translated by an interpreter into English. Meng stated that she was using an interpreter to be precise in her language.
In her presentation, Meng stated, among other things, that Huawei’s relationship with Skycom was “normal business cooperation” and “normal and controllable business cooperation,” and she described Skycom as a “partner,” a “business partner of Huawei,” and a “third party Huawei works with” in Iran. Those statements were untrue because, as Meng knew, Skycom was not a business partner of, or a third party working with, Huawei; instead, Huawei controlled Skycom, and Skycom employees were really Huawei employees. It would have been material to Financial Institution 1 to know that Huawei controlled Skycom.
In addition, Meng stated that Huawei “was once a shareholder of Skycom” but had “sold all its shares in Skycom.” Those statements were untrue, because, as Meng knew, Huawei had “sold” its shares to an entity that Huawei controlled. Specifically, Huawei transferred Skycom shares from a Huawei subsidiary (Hua Ying) to another entity that was controlled by Huawei (Canicula). It would have been material to Financial Institution 1 to know that Skycom was transferred from one Huawei-controlled entity to another.
Finally, Meng stated that Huawei “operates in Iran in strict compliance with applicable laws, regulations and sanctions” and that “there has been no violation of export control regulations” by “Huawei or any third party Huawei works with.” These statements were untrue because Huawei’s operation of Skycom, which caused the Financial Institutions to provide prohibited services, including banking services, for Huawei’s Iran-based business while Huawei concealed Skycom’s link to Huawei, was in violation of the U.S. Department of the Treasury’s Office of Foreign Assets Control’s Iranian Transactions and Sanctions Regulations, 31 C.F.R. Part 560. Moreover, between 2010 and 2014, Huawei caused Skycom to conduct approximately $100 million worth of U.S.-dollar transactions through Financial Institution 1 that cleared through the United States, at least some of which supported its work in Iran in violation of U.S. law, including $7.5 million for Iran-based contractors from the U.K. staffing company to do work in Iran.
At no point during or after the meeting did Meng, who was aware of Huawei’s public statements about Skycom in Reuters, retract or amend any of those statements. Moreover, Huawei’s Treasurer, who also attended the August meeting, did not correct or amend any of the statements made by Meng.
Shortly after the meeting between Meng and Financial Institution 1, Huawei prepared an English version of the PowerPoint presentation at Financial Institution 1’s request. Meng later arranged for a paper copy of that PowerPoint presentation to be delivered to the Financial Institution 1 executive she had met with in September 2013. The representations in the English version of the PowerPoint presentation closely tracked the ones Meng had made during the meeting.
After the meeting and subsequent to receipt of Meng’s PowerPoint presentation, Financial Institution 1 decided to continue its relationship with Huawei. The other Financial Institutions similarly continued their respective relationships with Huawei.
The DPA
Under the terms of the DPA, Meng has agreed to the accuracy of a four-page statement of facts that details the knowingly false statements she made to Financial Institution 1. Meng also has agreed not to commit other federal, state or local crimes. If Meng breaches the agreement, she will be subject to prosecution of all the charges against her in the third superseding indictment filed in this case. The government also agreed to withdraw its request to the Ministry of Justice of Canada that Meng be extradited to the United States.
Assistant U.S. Attorneys Alexander A. Solomon, Julia Nestor, David K. Kessler, Sarah M. Evans and Meredith A. Arfa for the Eastern District of New York; Trial Attorneys Laura Billings and Christian Nauvel for the Criminal Division’s Money Laundering and Asset Recovery Section; and Trial Attorneys Thea D. R. Kendler, David Lim and R. Elizabeth Abraham of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case. Valuable assistance was provided by Assistant U.S. Attorneys Brian Morris and Brendan King of the Eastern District of New York’s Civil Division and Associate Director John Riesenberg, Attaché Andrew Finkelman of U.S. Embassy Paris and former Trial Attorney Margaret O’Malley of the Justice Department’s Office of International Affairs.
Harrison County residents admit to drug chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Two Shinnston, West Virginia, residents have admitted to methamphetamine charges, Acting United States Attorney Randolph J. Bernard announced.
Larry Thomas Gregory, II, 44, and Angela Chapman, 33, each pleaded guilty today to one count of “Possession with Intent to Distribute 50 grams or more of Methamphetamine.” Gregory and Chapman admitted to having more than 50 grams of methamphetamine in February 2020 in Harrison County.
Gregory and Chapman each face at least five and up to 40 years of incarceration and fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Greater Harrison Drug Task Force, a HIDTA-funded initiative; the U.S. Postal Inspection Service; and the Shinnston Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Hamburg Man Going to Prison for 30 Years for Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy Jr. announced today that Robert Chapline, 61, of Hamburg, NY, who was convicted of production of child pornography, was sentenced to serve 30 years in prison by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorneys Aaron J. Mango and Caitlin Higgins, who handled the case, stated that between February 13, 2016, and October 2, 2017, the defendant coerced a minor (Victim) to engage in sexually explicit conduct for the purpose of producing visual depictions. In February 2016, Chapline took photographs of the Victim getting out of a shower and then posing in a bedroom. The defendant engaged in sexual contact with the Victim on several occasions between 2012 and 2017.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Hamburg Police Department, under the direction of Chief Kevin Trask; and the Regional Computer Forensics Laboratory.
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Hagerstown Man Facing Federal Charges for Allegedly Falsifying Documents in Order to Obtain COVID FundsRead the Press Release
Baltimore, Maryland – A federal criminal complaint has been filed charging Jeffrey Bearden, age 47, of Hagerstown, Maryland, with false statements and bank fraud. The criminal complaint alleges that in May 2020, Bearden applied for a loan through the Paycheck Protection Program (PPP). The complaint was signed on September 22, 2021 and unsealed upon Bearden’s arrest on September 23, 2020.
The federal charge was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Inspector General Hannibal “Mike” Ware of the U.S. Small Business Administration Office of Inspector General (SBA OIG).
According to the affidavit filed in support of the criminal complaint, on May 1, 2020 Bearden electronically signed falsified documents attesting to inaccurate statements in order for his company, B&D Consulting, to receive $734,609.00 through the PPP for use in paying business costs consisting primarily of employee salaries. At that time, the company had no employees, nor reported paying any earnings and wages for any employee to the Maryland Department of Labor and Licensing (DLLR) in 2020.
As detailed in the affidavit, on May 18, 2020, the funds were approved and deposited into Bearden’s bank account. That same day, the $734.609 was transferred to a different bank account. The next month, $600,000 was transferred to Bearden’s brokerage account that was used to purchase stocks in a variety of publicly-traded companies, including one that produced a vaccine for COVID-19. The purchase of stocks is not an approved use of PPP loan funds by the Small Business Administration.
In February 2021, Bearden applied for a second PPP loan of a similar amount, attaching a fraudulent bank statement for a B&D Consulting account for the month of March 2020 showing the company was paying salaries to at least 19 individuals. Records show that no deposits or withdraws had been made from that account in March 2020 and the account balance was in the negative.
If convicted, Bearden faces a maximum sentence of 30 years in federal prison for each of these charges. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. At today’s initial appearance in U.S. District Court in Baltimore, U.S. Magistrate Judge Beth P. Gesner ordered that Bearden be released pending his trial.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the HSI and SBA OIG for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Aaron S.J. Zelinsky, who is prosecuting the federal case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Foxborough Teacher Indicted on Child Exploitation ChargesRead the Press Release
BOSTON – A teacher at Foxborough High School was indicted by a federal grand jury yesterday in connection with possession of child pornography and receiving child pornography over the internet.
Thomas Davis, 41, of Mansfield, was indicted on one count of possession and receipt of child pornography. Davis was arrested and charged by criminal complaint on Aug. 26, 2021 and has remained in custody since that time.
According to the charging documents, on Aug. 26, 2021, law enforcement executed a search warrant at Davis’ residence and seized a laptop belonging to Davis. An on-site examination revealed approximately 40 images of child pornography on the laptop, including images involving prepubescent minors under the age of 12-years-old. A forensic analysis of Davis’ laptop revealed additional amounts of child pornography.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The charge of receipt of child pornography provides for a sentence of at least five years and up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. The charge of possession of child pornography provides for a sentence of up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by the Mansfield Police Department. Assistant U.S. Attorney David G. Tobin of Mendell’s Major Crimes Unit is prosecuting the case
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Four Michigan Residents Charged with COVID-Relief FraudRead the Press Release
A criminal information was docketed today charging four Michigan residents in connection with a wire fraud scheme involving over $4.1 million in Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL) guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Antonio George, 45, of Novi, attempted to obtain approximately $4.1 million in PPP and EIDL loans through applications submitted on behalf of 16 different companies. The information alleges that along with George, Kevin Womble, 37, of Detroit, Andrae Sims, 43, of Farmington Hills, and Sarah Vidal, 31, of Novi, provided false and misleading documents about certain aspects of the companies’ respective business operations and payroll expenses. For example, the information alleges that George obtained payroll information that was used to support a seemingly legitimate PPP loan application submitted on behalf of an unrelated entity and then used the unrelated entity’s payroll information to support fraudulent PPP and EIDL loan applications.
George, Womble, Sims and Vidal are each charged with one count of conspiracy to commit wire fraud. George, a tax preparer, is also charged with three counts of aiding and assisting in the preparation of false and fraudulent returns for conduct related to his tax preparation business. If convicted of all counts, George faces a maximum total penalty of 29 years in prison. Womble, Sims and Vidal each 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.
George, Womble and Sims are scheduled to make their initial appearances today in the Eastern District of Michigan. Vidal is set to make her initial appearance tomorrow.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Saima Mohsin of the Eastern District of Michigan; Special Agent in Charge Timothy Waters of the FBI’s Detroit Field Office; Inspector General Hannibal Mike Ware of the SBA’s Office of the Inspector General (SBA-OIG); and Acting Special Agent in Charge Brian Thomas of the Internal Revenue Service – Criminal Investigation (IRS-CI) made the announcement.
The FBI, SBA-OIG and IRS-CI are investigating the case.
Trial Attorney Patrick J. Suter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney John K. Neal of the Eastern District of Michigan are prosecuting the case.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. Since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An information is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Veterans Affairs Employee Sentenced to Serve Four Months in Jail for Video Voyeurism and Disorderly ConductRead the Press Release
PENSACOLA, FLORIDA – Robert Sampson, 52, of Gulf Breeze, Florida, was sentenced yesterday to serve four months in jail for the charges of Video Voyeurism and Disorderly Conduct. The sentence was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
Evidence presented during the sentencing hearing revealed that Sampson, while an employee of the Department of Veterans Affairs (VA), placed a hidden camera disguised to look like a cellular telephone charger power adapter, in a restroom at the Pensacola VA Joint Ambulatory Care Center. On approximately 17 occasions between May 2020 to June 2020, Sampson captured video of eight VA employees on the hidden camera. When employees discovered the recording device and notified the VA Police, Sampson attempted to wrestle the employees for control of the device. Sampson later admitted that he had placed the device in the restroom to record individuals in the bathroom and would later watch the footage.
The Department of Veterans Affairs Police responded to the disturbance and initiated the investigation into the allegations before forwarding the case to the Veterans Affairs Office of the Inspector General.
Following Sampson’s four-month jail sentence, he will serve a one-year term of supervised release with one of the conditions being a limitation of Sampson’s use of computers and the internet. In addition, Sampson was ordered to pay a total of $1200 in fines and restitution to his victims.
“The Department of Veterans Affairs Police and the Department of Veterans Affairs Office of the Inspector General are to be commended for their investigation of this crime. The defendant’s actions were a direct affront to his co-workers’ expectation of privacy,” said Acting U.S. Attorney Coody. “The victims in this case provide incredible service to our retired and disabled military community and they should feel safe and comfortable in their work environment. Deviant acts of voyeurism such as this will be aggressively prosecuted, and the offender will be held accountable.”
The case was prosecuted by Assistant United States Attorney Jennifer H. Callahan and Special Assistant United States Attorney Matthew Kalayjian, of the U.S. Navy JAG Corps.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former Employment Security Department employee indicted for filing false unemployment claims and demanding kickbacksRead the Press Release
Tacoma – A former employee of Washington State’s Employment Security Department has been charged in a 20-count indictment for his scheme to exploit his employment for personal enrichment and to fraudulently distribute at least $360,000 in pandemic-related unemployment benefits, announced Acting U.S. Attorney Tessa M. Gorman. Reyes De La Cruz, III, 47, of Moses Lake, Washington, is alleged to have personally enriched himself by at least $130,000 with his scheme. De La Cruz was arrested this morning in Moses Lake, and will make his initial appearance on the indictment Monday in Spokane and on a later date will appear in U.S. District Court in Tacoma where the case is filed.
“Dedicated investigators continue to build criminal cases against those who sought to unlawfully enrich themselves during our country’s pandemic crisis,” said Acting U.S. Attorney Tessa M. Gorman. “In this case, an insider used his official access and knowledge to illegally enrich himself. Even as ESD faced the challenges of processing the high volume of legitimate claims, he chose to take advantage of his position to worsen the unprecedented fraud on unemployment benefits.”
According to the indictment, De La Cruz was hired as an intake agent in April 2020 to help the Employment Security Department (ESD) deal with the crush of filings for pandemic unemployment benefits. De La Cruz had previously worked for ESD, from 1996 to 2003.
The indictment alleges De La Cruz used his access to the ESD claims database to defraud the benefits system in three different ways. First, he filed claims using other people’s personal information and then had the benefits paid to debit cards that were mailed to Moses Lake, Washington addresses where De La Cruz could retrieve them. Even after his employment with ESD terminated on October 1, 2020, De La Cruz attempted to restart claims payments to these debit cards to take advantage of additional federal pandemic benefits. De La Cruz went so far as to impersonate a claimant in recorded phone calls with ESD and a bank. He impersonated another claimant in handwritten correspondence that he then faxed to ESD. In this way he defrauded ESD of more than $110,000.
Second, De La Cruz also accepted bribes in exchange for engineering benefit payments for his friends, family, or acquaintances by making false entries in the claims database. In many cases, the person did not qualify for benefits, but De La Cruz manipulated the claims database so that the claimants received lumpsum retroactive payments that sometimes amounted to tens of thousands of dollars. The claimants would then pay De La Cruz a portion of the lumpsum.
Third, in some instances, when claimants refused or resisted paying De La Cruz, he threatened to terminate the claim if they did not pay him.
In total, De La Cruz enriched himself at least $21,000 through kickback payments.
The Employment Security Department uncovered evidence of fraud, terminated De La Cruz, and referred the case to the Department of Labor Office of Inspector General (DOL-OIG). The FBI joined the investigation. The Moses Lake Police Department and Washington State Department of Corrections assisted with today’s arrest.
De La Cruz is charged with six counts of wire fraud. He is charged with nine counts of bribery of an agent of an organization receiving federal funds. De La Cruz is charged with one count of extortion under color of official right, and four counts of aggravated identity theft.
Wire fraud that relates to a presidentially declared major disaster or emergency is punishable by up to 30 years in prison. Bribery of an agent receiving federal funds is punishable by 10 years in prison. Extortion under the color of official right is punishable by 20 years in prison. Aggravated identity theft is punishable by a two-year sentence consecutive to any other sentence imposed in the case.
The pandemic related fraud on ESD is being investigated cooperatively by the FBI, DOL-OIG, Social Security Office of Inspector General, U.S. Secret Service, the United States Postal Inspection Service, and the Internal Revenue Service Criminal Investigations. The Washington Employment Security Department is cooperating in the investigations.
This case is being prosecuted by Assistant United States Attorneys Cindy Chang and Seth Wilkinson.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
de_la_cruz_indictment.pdfFormer Church Employee Sentenced to over Two Years in Prison for Stealing from the ChurchRead the Press Release
A former employee who stole more than $270,000 from the church that employed her was sentenced today to more two years in federal prison.
Melissa Noland, age 47, from Polk City, Iowa, received the prison term after a May 12, 2021, guilty plea to one count of wire fraud.
Information from a plea agreement and court hearings showed that Noland was employed by a church between January 2015 and January 2019. During that time, Noland stole money from the church in various ways. Noland wrote checks to herself using the church’s checkbook, used church bank accounts to pay her own credit card bills, and made excess payroll distributions to herself. Noland eventually stole $274,222.09 from the church. Once the church discovered her thefts, she was terminated from her employment.
Noland was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Noland was sentenced to 27 months’ imprisonment. She was ordered to make $274,222.09 in restitution the church. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Noland was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Federal Bureau of Investigation and the Mason City Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-3025.
Follow us on Twitter @USAO_NDIA.
Federal Inmate Pleads Guilty to Possessing WeaponRead the Press Release
BECKLEY, W.Va. – Deontae Holmes, a federal inmate at the Federal Correctional Institution (FCI) at Beckley, pleaded guilty today to possessing a handcrafted weapon, commonly known as a “shank.”
According to court documents, FCI Beckley staff members found Holmes in possession of a shank on February 22, 2021. The shank was a piece of metal approximately six inches long that was sharpened to a point on one end and had a rubberized tape handle on the other end. The shank was found in Holmes’ pants pocket during a random pat search. Holmes admitted that the shank was designed and intended to be used as a weapon.
Holmes faces up to five years in prison when he is sentenced on January 14, 2022.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative efforts of the Federal Bureau of Prisons (BOP). Assistant United States Attorney Timothy D. Boggess is handling the prosecution.
United States District Judge Frank W. Volk presided over the hearing.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-00151.
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Ex-Pastor of Orange County Church Sentenced to 14 Years in Federal Prison for Orchestrating $33 Million Con that Defrauded InvestorsRead the Press Release
SANTA ANA, California – The former pastor of the Westminster-based Church of the Healthy Self was sentenced today to 168 months in federal prison for orchestrating a church-based investment scam that took in more than $33 million.
Kent R.E. Whitney, 39, formerly of Newport Beach but who currently resides in Northern California, was sentenced by United States District Judge Josephine L. Staton, who also ordered him to pay $22,662,668 in restitution. Whitney pleaded guilty in November 2020 to a two-count information charging him with mail fraud and filing a false federal income tax return.
From September 2014 to April 2019, Whitney schemed to defraud investors through the Church of the Healthy Self (CHS), a non-profit corporation, and its related entities, including CHS Asset Management, Inc. Whitney founded these entities, operated them out of a strip mall in Westminster, and claimed to be the pastor of CHS.
At Whitney’s direction, CHS representatives appeared on television and at live seminars at CHS offices to solicit investments in CHS Trust, the church’s investment arm. Recordings of these appearances frequently were uploaded onto YouTube.
In these appearances, at Whitney’s direction, CHS representatives made false or misleading claims, including: CHS Trust guaranteed an annual rate of return of 12 percent; CHS Trust guaranteed a return of principal with no risk because it was federally insured; the worst return received during the previous five years was a 1.5 percent profit for the month of January 2015; traders used by CHS had not lost money in 15 years; and CHS was audited by accounting firm KPMG.
In fact, little investor money went into any trading accounts.
Relying on these false statements, victim-investors sent more than $33 million to CHS from 2014 to 2019. As part of the scheme, Whitney directed that monthly statements be sent to victims that contained false reports of investment returns. Whitney intended to lull victims into believing their money had been invested and was consistent with the false claims made by CHS representatives. Whitney also made approximately $11 million in Ponzi-type payments to investors, taken from money brought in by later victims.
Whitney also knowingly and willfully signed and filed a false federal income tax return that reported that his total income for the tax year 2018 was $17,539. In fact, as Whitney knew, his true income for that year was at least $452,872, of which approximately $435,333 was obtained via Whitney’s CHS fraud. The resulting tax loss was at least $130,808.
The FBI and IRS Criminal Investigation investigated this matter. The Securities and Exchange Commission provided substantial assistance with the investigation.
Assistant United States Attorney Gregory W. Staples of the Santa Ana Branch Office prosecuted this case.
Elkhart Man Sentenced to 40 Years in PrisonRead the Press Release
SOUTH BEND – Khalil Jackson, age 25, of Elkhart, Indiana was sentenced before United States District Court Judge Damon R. Leichty after being convicted following a four-day trial in June 2021, announced Acting United States Attorney Tina L. Nommay.
Jackson was sentenced to 480 months in prison followed by 10 years of supervised release.
According to documents in this case, a jury found Jackson guilty of various federal charges arising out of conduct involving human trafficking of a minor victim: specifically, Count 1 – sex trafficking of a minor, Count 2 – production of child pornography, Count 3 – transportation of child pornography, Count 4 – possession of child pornography, and Count 5 – cyberstalking.
“This conviction holds Jackson responsible for his reprehensible conduct targeting vulnerable youth whom he abused, exploited and groomed for sex trafficking for his own benefit,” said Acting US Attorney Tina Nommay. “Today’s 40 year sentence imposed by the District Court reflects the seriousness of Jackson’s offense. This case exemplifies the dedication by law enforcement and prosecutors in protecting the rights of the victims of human trafficking activity, and I commend them for their hard work and successful resolution of this case.”
"It's imperative children are able to grow up without being offered for sale by adults who place a price tag on them and attempt to profit from their innocence,” said FBI Indianapolis Acting Special Agent in Charge Paul Holdeman. “We will continue to work closely with our law enforcement partners to ensure we hold those who prey on our children accountable for their heinous actions.”
This case was investigated by the Federal Bureau of Investigation with the assistance of the St. Joseph County Police Department and Elkhart Police Department. This case was prosecuted by Assistant United States Attorneys John Maciejczyk, Kim Schultz, and Joel Gabrielse.
Eagle River Man Arrested on Child Pornography ChargesRead the Press Release
ANCHORAGE – An Eagle River man was arrested by the Federal Bureau of Investigation’s (FBI) Crimes Against Children and Human Trafficking Task Force on a federal complaint for child pornography offenses.
According to court documents, Daniel Brooks, 51, is charged by information with violations related to the alleged possession of and access with intent to view child pornography. As detailed in the affidavit in support of the criminal complaint, the case first came to the attention of the FBI when the chief security officer where Brooks worked reported the discovery of numerous jpeg images of suspected child pornography. The FBI executed a federal search warrant at Brooks’ home for computer related devices. During an interview with FBI agents, Brooks admitted to having over 1,000 images of child pornography on a drive connected to his work computer.
If the public has any further information regarding Brook’s activities, please contact the FBI Anchorage Field Office at
(907) 276-4441.
The FBI’s Crimes Against Children and Human Trafficking Task Force, conducted the investigation leading to Brook’s arrest.
Assistant U.S. Attorney Adam Alexander is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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. please visit www.justice.gov/psc.
A criminal complaint or information is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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EDTX Indicts Two Dozen Defendants in International Multi-Scheme Fraud ConspiracyRead the Press Release
SHERMAN, Texas – A federal grand jury in Sherman has returned a two-count indictment charging 23 individuals in a fraud scheme in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
The indictment, returned on Sep. 8, 2021, charges multiple individuals with conspiracy to commit wire fraud and conspiracy to commit money laundering. The indictment remained sealed until this week, when the defendants were arrested and arraigned.
“The criminal conduct alleged in this case is sophisticated in its means, expansive in its scope, and callous in its aims,” said Acting U.S. Attorney Nicholas J. Ganjei. “The indictment alleges a scheme where all manner of fraud—including romance and investment scams—was unleashed on an unsuspecting American public, including the elderly and most vulnerable, with the ill-gotten gains syphoned off and funneled overseas. The amount of loss, both financial and emotional, alleged in this case is nothing short of staggering.”
According to the indictment, beginning around January 2017, the defendants used a multitude of fraudulent schemes to obtain money from their victims, including online romance scams, business email compromise and investor fraud, and unemployment insurance fraud. The indictment further alleges that the defendants not only coordinated how to extract money from their victims, but how to disguise, disburse, and launder that money once they successfully defrauded their victims. Allegedly, the defendants obtained at least $17 million from at least 100 individual victims, companies, and government entities from across the world. The defendants are alleged to have specifically targeted elderly persons and used various schemes such as online dating sites to lure their victims. The indictment charges that once they fraudulently obtained funds from their victims, the defendants laundered the money through a network of various bank accounts and sent money to bank accounts, co-conspirators and businesses located in Africa and Asia.
Indicted individuals that have been arrested include:
- Kingsley Ita, aka “Baron” “Sifk,” 42, of Dallas;
- Irabor Fatarr Musa, aka “Fatai” “Head JJ,” 51, of Richardson;
- Solomon Esekheigbe, 48, of Katy;
- Sandra Iribhogbe Popnen, aka “General,” 46, of Allen;
- Edgal Iribhogbe, aka “Oseme,” 50, of Allen;
- Damilola Kumapayi, aka “Luke Morris,” 33, of Dallas;
- Ehiedu Onyeagwu, aka “Young,” 58, of Rosedale, Maryland;
- Mathew Okpu, 57, of Temple Hille, Maryland;
- Benedicta Atakare, 46, of Temple Hills, Maryland;
- Segun Adeoye, 47, of Pearland;
- Chidindu Okeke, aka “Steve,” 28, of Richmond;
- Ngozi Okeke, 47, of Katy;
- Nosoregbe Asemota, aka “Patrick Asemota,” 46, of Melissa;
- Chigozi Ekwenugo, 53, of Grand Prairie;
- Bukola Obaseki, 48, of Allen;
- Stella Hadome, 43, of Allen;
- Jequita Batchelor, 37, of Farmers Branch;
- Osaretin Eghaghe, aka “Biggie,” 37, of Plano;
- Ejiro Ohwovoriole, 29, of McKinney;
- Isaac Asare, aka “Asarko,” 48, of Houston;
- Gold Ude, 44, of Wylie;
- Henrietha Oziegbe, 23, of Lexington, Kentucky; and
- Kingsly Oziegbe, 25, of Edinburg.
The indictment unsealed today in the Eastern District of Texas complements indictments unsealed in the Northern District of Texas, which charged 11 defendants (including one also charged in the Eastern District of Texas) with a variety of financial crimes.
If convicted, defendants face up to 20 years in federal prison.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
This case is being investigated by the Federal Bureau of Investigation’s Dallas Field Office; Homeland Security Investigations; Internal Revenue Service-Criminal Investigation; Department of Labor-Office of Inspector General; the U.S. Department of State’s Diplomatic Security Service (DSS); U.S. Postal Inspection Service; U.S. Citizenship and Immigration Service; Allen Police Department; Denton Police Department; Dallas County Sheriff’s Office; and Texas Department of Public Safety. This case is being prosecuted by the Plano Office of the U.S. Attorney’s Office for the Eastern District of Texas with assistance from Northern District of Texas Assistant U.S. Attorneys.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Dominican National Sentenced for Trafficking Fentanyl, Health Care Fraud, ID Theft, Misuse of a Social Security NumberRead the Press Release
PROVIDENCE – A Dominican national who operated a drug stash house and arranged for the sale of fentanyl on multiple occasions, and who used the stolen identity and Social Security number of another person to gain Rhode Island Medicaid benefits and Rhode Island driver’s licenses and permits, was sentenced today to seven years in federal prison, announced Acting United States Attorney Richard B. Myrus.
Jeurin Celado, 31, was sentenced by U.S. District Court Judge William E. Smith to 96 months of incarceration to be followed by four years of federal supervised release and ordered to pay restitution in the amount of $4,726.50 to the Rhode Island Medicaid Program. Celado pleaded guilty on April 2, 2021, to false representation of a Social Security number, aggravated identity theft, health care fraud, and conspiracy to distribute fentanyl.
At the time of his guilty plea, Celado admitted to the court that from 2010 until August 2019, he used the name, date of birth, and Social Security number of a person he does not know to obtain permits and driver’s licenses from the Rhode Island Department of Motor Vehicles (DMV).
In addition, Celado admitted that beginning in August 2014 and continuing through July 2018, he used the same stolen identity and Social Security number to obtain Rhode Island Medicaid benefits, health insurance that as a non-United States citizen he was ineligible to receive. Celado obtained Medicaid benefits valued at approximately $4,726.50.
Additionally, according to information presented to the court, in August and September 2019, an undercover drug investigation by the Woonsocket Police Department included arranging for four undercover purchases of fentanyl from a person known as “Tony.” On each occasion, “Tony” directed the buyer to a location where that person was met by a “runner” who delivered the drugs in exchange for cash. The investigation determined that “Tony” was, in fact, Jeurin Celado, and that he was using an apartment in Manville as a stash house and a location to cut and prepare drugs for delivery. On October 7, 2019, during a court-authorized search of the apartment, law enforcement discovered between 40 and 400 grams of fentanyl and other items consistent with a drug distribution operation.
The case was prosecuted by Assistant U.S. Attorney Dulce Donovan.
The various investigations into Celado’s criminal activities were conducted by the Woonsocket Police Department, Homeland Security Investigations, and the U.S. Department of Health and Human Services, Office of Inspector General.
Acting United States Attorney Myrus acknowledges and thanks the United States Marshals Service for its assistance in locating and assisting in the arrest of the defendant.
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Dominican National Sentenced for Drug Charges and Misuse of a Social Security NumberRead the Press Release
BOSTON – A Dominican national was sentenced on Wednesday, Sept. 22, 2021 in federal court in Boston for conspiring to distribute more than 40 grams of fentanyl and misusing a Social Security number.
Bladimir Sanchez Soto, 29, formerly of Methuen, was sentenced by U.S. District Court Judge Leo T. Sorokin to 30 months in prison and three years of supervised release. Sanchez Soto will be subject to deportation proceedings upon completion of his sentence. On March 30, 2021, Sanchez Soto pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl and one count of false representation of a Social Security number.
In November 2019 and January 2020, Sanchez Soto helped arrange four sales of approximately 65 grams of fentanyl. In February 2020, Sanchez Soto and a co-defendant were arrested and additional fentanyl was seized. Sanchez Soto was previously indicted in the Western District of Michigan in connection with using a false name and Social Security number to obtain a Michigan driver’s license in November 2016. The matter was transferred to the District of Massachusetts for plea and sentencing.
Acting United States Attorney Nathaniel R. Mendell; United States Attorney Andrew B. Birge of the Western District of Michigan; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Vance Callender, Special Agent in Charge of Homeland Security Investigations in Detroit, made the announcement. Assistant U.S. Attorney Theodore B. Heinrich of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
Department of Justice Awards $600,000 to “Centre Safe” to Combat Domestic ViolenceRead the Press Release
HARISBURG –Acting U.S. Attorney Bruce D. Brandler announced that the Department of Justice’s Office of Violence Against Women (OVW) has awarded $600,000 to “Centre Safe” to help combat domestic violence and support survivors. “Centre Safe” is a private, not-for-profit agency located in Centre County, Pennsylvania.
OVW’s grant to Centre Safe’s Civil Legal Representation Project (CLRP) will provide legal services to survivors of domestic violence and sexual assault, in civil litigation including divorce, custody, support, housing, and Title IX matters. The grant will support the CLRP’s work to reduce vulnerability and mitigate the lifelong effects of domestic violence and sexual assault. These expert legal services help survivors move toward family stability and economic independence. Additionally, these funds will allow for travel throughout Centre County to assure that those in more rural areas have increased access to legal services.
“This substantial grant will improve the lives of many victims of domestic violence, sexual assault, and stalking,” stated Acting U.S. Attorney Brandler. “I am very pleased to join with OVW and Centre Safe in empowering survivors and stabilizing families.”
“We are so pleased to receive this grant from OVW,” said Anne Ard, Executive Director of Centre Safe. “Legal services are critical for survivors of domestic and sexual violence as they work to build new lives for themselves and their children and this grant will allow the CLRP to enhance and expand its assistance to those survivors.”
“The awards we are making this year will touch the lives of millions of survivors of violence and help our nation end these devastating crimes,” said Allison Randall, OVW Acting Director. “OVW is proud to be the leading federal voice in the country’s fight against sexual and domestic violence.”
OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
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D.C. Felon Sentenced to 30 Months in Federal Prison for Illegal Possession of A .40 Caliber "Ghost Gun" Firearm and 10 Rounds of AmmunitionRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Martrel Rayshard Reeves, age 31, of Washington, D.C. to two years and six months in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm and ammunition.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Chief Malik Aziz of the Prince George’s County Police Department.
“The gun violence in Prince George’s County is simply unacceptable, and the proliferation of ghost guns in the region is part of the problem,” said Acting United States Attorney Jonathan F. Lenzner. “Working in collaboration with our federal and local law enforcement partners, we are committed to taking ghost guns off the streets and prosecuting those who illegally possess and sell them in order to make our community safer. Firearms trafficking and illegal firearms are a priority of the Department of Justice, and we hope this federal sentence will deter others from illegally possessing ghost guns.”
According to his plea agreement, on July 8, 2018, law enforcement executed a traffic stop on Reeves’ vehicle for traffic violations. The car was occupied by Reeves and a female passenger. At the time of the traffic stop, Reeves did not possess a driver’s license or other identification. A subsequent check of his driving record revealed that his license had been suspended. When officers asked Reeves to step out of the car, officers smelled alcohol on Reeves’ breath and the odor of marijuana on his person. During the search of his vehicle, law enforcement recovered a .40-caliber pistol, loaded with 10 rounds of ammunition. Reeves admitted at the scene that the firearm belonged to him, following which, he was arrested.
As detailed in Reeves’ plea agreement, the pistol was test-fired and found to function as a firearm. The gun recovered in Reeves’ car is what is known as a “ghost gun”—in that it was made from a firearm parts kit. These kits can be purchased from various kit manufacturers or secondary retailers, including Internet websites. Ghost guns frequently lack serial numbers, which generally make the firearms legally unregistrable and difficult to track.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Acting United States Attorney Jonathan F. Lenzner praised the ATF and the Prince George’s County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Rajeev R. Raghavan and Erin B. Pulice, who prosecuted the case.
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Crack trafficking ring in Savannah neighborhood disrupted with arrests on federal chargesRead the Press Release
SAVANNAH, GA: Multiple defendants are in custody on drug trafficking charges after the unsealing of a federal indictment targeting an open-air drug market in Savannah.
The 56-count indictment in USA v. Fields et al. details charges against 14 defendants, primarily Conspiracy to Possess with Intent to Distribute and to Distribute Crack Cocaine, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The charge carries a statutory penalty of up to 20 years in prison and substantial financial penalties, followed by at least four years of supervised release.
There is no parole in the federal system.
“Our law enforcement partners, particularly the Savannah Police Department and the Drug Enforcement Administration, have done an outstanding job in identifying and disrupting drug distribution networks in our neighborhoods,” said Acting U.S. Attorney Estes. “This continuing effort will make our communities safer by removing illegal drugs and guns from our streets.”
The investigation targeted an open-air illegal drug market in a community known as “The Dips” on the west side of Savannah, alleging drug sales taking place at least as early as Oct. 1, 2020, with the 14 defendants indicted as part of a conspiracy to possess and distribute crack cocaine. Those charged in the indictment are:
- Charles Aimee Fields Jr., a/k/a “Slim,” 33, of Savannah, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Crack Cocaine; seven counts of Distribution of Crack Cocaine; and one count of Possession of a Firearm by a Convicted Felon;
- Anthony Pointer, 33, of Savannah, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Crack Cocaine; and three counts of Distribution of Crack Cocaine;
- Maurice Johnson, a/k/a “Bowlegs,” 36, of Savannah, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Crack Cocaine; and five counts of Distribution of Crack Cocaine;
- Trevyaughn Howard, 24, of Savannah, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Crack Cocaine; and 12 counts of Distribution of Crack Cocaine;
- Keaonte Winford, 22, of Savannah, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Crack Cocaine; and five counts of Distribution of Crack Cocaine;
- Marcus Royal, a/k/a “Stretch,” 24, of Savannah, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Crack Cocaine; and four counts of Distribution of Crack Cocaine;
- Patrick Frazier, 26, of Savannah, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Crack Cocaine; and six counts of Distribution of Crack Cocaine;
- Terry Lynch Jr., a/k/a “Stank,” 25, of Savannah, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Crack Cocaine; and three counts of Distribution of Crack Cocaine;
- Deandra Brown, a/k/a “D,” 32, of Savannah, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Crack Cocaine; and three counts of Distribution of Crack Cocaine;
- Shaqille Jones, 28, of Savannah, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Crack Cocaine; and two counts of Distribution of Crack Cocaine;
- Dominique Bostic, 27, of Savannah, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Crack Cocaine; and one count of Distribution of Crack Cocaine;
- Michael Passmore, 30, of Savannah, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Crack Cocaine; and one count of Distribution of Crack Cocaine;
- Tyree Lee, 33, of Savannah, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Crack Cocaine; and one of Distribution of Crack Cocaine; and,
- Walter Wingster, 36, of Savannah, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Crack Cocaine; and one count of Distribution of Crack Cocaine.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
“We have put in a substantial amount of time and investigative work on this investigation due to known drug activity and citizen safety concerns,” said Savannah Police Chief Roy Minter. “We believe the arrests of these individuals will have a direct and immediate impact on crime and safety in the Cuyler-Brownsville neighborhood.”
“All participating agencies played a crucial role in the eradication of this crack cocaine trafficking organization,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “These types of targeted enforcement actions are effective in fulfilling our mission of protecting and serving the citizens of Savannah.”
The investigation was conducted by the U.S. Drug Enforcement Administration’s Savannah Resident Office; the Savannah Police Department Strategic Investigation Unit; and the Chatham-Savannah Counter Narcotics Team, and is being prosecuted for the United States by Assistant U.S. Attorneys Noah J. Abrams and Frank M. Pennington II.
Convicted Felon Sentenced to 54 Months in Prison for Illegal Possession of a FirearmRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a Talladega man to 54 months in prison, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Mickey French.
U.S. District Judge Corey L. Maze sentenced Armetris Lyons, 44, to 54 months in prison for being a felon in possession of a firearm. Lyons pleaded guilty to the charge in April. Lyons had four prior felony convictions for attempted murder, theft, discharging a gun into an unoccupied building, and unlawful possession of a controlled substance.
“Persons with long histories of violent crime and drug offenses, like this defendant, are the focus of our firearms enforcement efforts.” U.S. Attorney Escalona said. “We are grateful for the work of ATF and the Talladega Police Department in helping to reduce violent crime in this district.”
“This court action demonstrates its commitment to law enforcement’s priority to target the illegal possession of firearms to include the use in violent criminal acts,” said SAC Mickey French. “ATF’s Crime Gun Intelligence leverages technology to reduce violent firearms related crimes.”
According to testimony at the sentencing hearing, on December 31, 2019, Talladega police officers responded to a call of shots being fired in an apartment complex in Talladega. As one officer drove up to the location, he witnessed Lyons fire a pistol into the air while holding a child’s hand on the grip of the gun. After the discharge, the child ran away from Lyons. Lyons then fired about four more times and ran into an apartment as the officer approached. The officer knocked on the door and took Lyons into custody when he opened the door. Other officers recovered a Taurus .38 caliber revolver inside the apartment.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The ATF investigated the case along with the Talladega Police Department. Assistant U.S. Attorney Alan Baty prosecuted the case.
Convicted Felon Sentenced to 10 Years in Prison for Kidnapping and Possessing FirearmsRead the Press Release
Assistant U. S. Attorney Joseph J.M. Orabona (619) 546-7951
NEWS RELEASE SUMMARY – September 24, 2021
SAN DIEGO – Joseph Anthony Martino, a convicted felon with a long criminal history that prevents him from legally owning guns, was sentenced in federal court today to 120 months in prison for kidnapping and possessing firearms.
In October 2020, Martino pleaded guilty and admitted that on April 1, 2019, he held three people hostage at his Lakeside home, pointing loaded guns – including a fully automatic assault rifle - at their heads and threatening them.
This case is part of the Department of Justice’s nationwide commitment to reduce gun crimes known as Project Safe Neighborhoods, or PSN. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
“The use of a gun to commit a crime changes everything,” said Acting U.S. Attorney Randy Grossman. “The victims of gun-related crimes may be forever traumatized, and we remain focused on preventing and prosecuting these crimes because the stakes are so high.” Grossman thanked prosecutor Joseph Orabona as well as agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives and Sheriff’s investigators for their excellent work on this case.
On April 1, 2019, Martino confined three victims at his residence in Lakeside, California, and held them at gunpoint in order to confront one of the victims about a personal relationship, according to court records.
At first, Martino brandished a loaded Heckler & Koch, model HK-91, .308 caliber rifle, which was fully automatic, at two of the victims (a male and a female). While holding the female victim hostage at gunpoint in his residence, Martino caused the male victim to drive to the third victim’s residence to bring the third victim (female) back to Martino’s residence. When the third victim arrived at Martino’s residence, the male victim escaped. Martino held a loaded handgun to the heads of the two female victims to confine and coerce them to remain in his residence. Eventually, both female victims were able to leave Martino’s residence unharmed.
According to court records, San Diego Sheriff’s deputies and detectives from the Special Enforcement Detail and Crime Suppression Team executed a search warrant at Martino’s residence on July 3, 2019. Sheriff’s deputies and detectives recovered the Heckler & Koch, model HK-91, .308 caliber rifle. In addition, law enforcement located approximately 3,500 rounds of assorted ammunition, 19 different magazines, a ballistic body armor engraved with “U.S. Navy Security Forces,” various rifle upper rails, two lower AR-15 receivers, and smoke grenades.
On August 5, 2019, a complaint was filed against Martino for being a felon in possession of a firearm. On August 6, 2019, Martino was arrested and appeared in federal court. On August 14, 2019, the court ordered Martino to be detained without bail, and he has been in continuous custody since his arrest.
On October 5, 2020, Martino was arraigned on the charges in this case. At the time, Martino entered into a plea agreement to resolve his case. That same day, Martino entered a guilty plea to kidnapping and being a felon in possession of a firearm. As part of his plea agreement, Martino admitted his criminal past, which included felony convictions for DUI, possession of a silencer, possession with intent to distribute marijuana, and assault with force likely to cause great bodily injury.
Also, as part of his plea agreement, Martino agreed to forfeit all of the firearms, ammunition, rails, receivers, smoke grenades, and body armor. At sentencing, the Court entered an order of forfeiture.
“A convicted felon in possession of a firearm, inherently presents a danger to the community,” said Special Agent in Charge of ATF’s Los Angeles Field Division Monique Villegas. “While being prohibited from possessing a firearm, Martino found a way to acquire a firearm, then use it to violently terrorize his victims. The federal prosecution of this case demonstrates ATF’s dedication to reducing gun crime through Project Safe Neighborhoods and by partnering with our local and federal partners, in this case the San Diego County Sheriff’s Department and the U.S. Attorney’s Office.”
“The San Diego County Sheriff's Department is grateful to our local and federal agencies who helped bring justice to the victims in this case,” said Sheriff Bill Gore. “We are extremely appreciative of the U.S. Attorney's Office for their partnership and aggressive prosecution. We look forward to collaborating with our agency partners on future investigations as we continue to address gun violence throughout our county.”
Project Safe Neighborhoods (PSN) is a nationwide commitment to reduce gun crime in American communities by networking with existing local programs that target these issues and provide these programs with additional tools necessary to be successful. PSN has operated as the U.S. Department of Justice’s primary initiative focused on reduction of gun crime since May of 2001. PSN is a collaborative effort between federal, state, and local law enforcement and prosecutors.
DEFENDANT Case Number 19CR3387-JLS
Joseph Anthony Martino Age: 47 Lakeside, CA
SUMMARY OF CHARGES
Kidnapping – Title 18, U.S.C., Section 1201(a)(1)
Maximum penalty: Life in prison and $250,000 fine
Felon in Possession of a Firearm – Title 18, U.S.C., Section 922(g)(1)
Maximum penalty: Ten years in prison, $250,000 fine, and forfeiture of all firearms/ammunition
AGENCIES
Bureau of Alcohol, Tobacco, Firearms and Explosives
San Diego County Sheriff’s Department
Convicted Felon Sentenced for Narcotics Trafficking and Manufacturing “Ghost Guns”Read the Press Release
ALEXANDRIA, Va. – A District Heights, Maryland man was sentenced today to 60 months in prison for distributing heroin and cocaine, and for his involvement in manufacturing untraceable “ghost guns” from the basement of his home.
“In addition to selling dangerous narcotics in our communities, the defendant was involved in buying, assembling, and selling ‘ghost guns’ that lack serial numbers,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “These unmarked and often untraceable firearms are frequently assembled from kits that are sold without background checks, making them more attractive to individuals who are prohibited from possessing them. This prosecution is another example of how we work closely with our partner agencies to mitigate public safety threats, including illegal narcotics and firearms trafficking.”
According to court documents, Keith Robert Marshall, 34, was a drug dealer who sold heroin and cocaine in the greater Washington, D.C. metropolitan area, including the Eastern District of Virginia. He sold heroin at a cost of $2,800 per ounce; a typical user amount of heroin is less than a gram. Over the course of several months in 2019, Marshall sold multiple ounces of heroin, as well as some cocaine, to an undercover officer.
“Marshall’s sentencing is an example of the exceptional collaboration and diligent work of our law enforcement and task force partners toward our shared goal of removing those who are the purveyors of instruments like ghost guns and illicit narcotics which often result in irreparable damage to our communities,” said Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division. “Ghost guns, which are privately manufactured, are untraceable and unserialized firearms that when in the hands of criminals, present a serious danger to us all. The FBI remains steadfast in identifying and aggressively investigating those criminals who have a blatant disregard for the harm they are causing in communities around the country.”
The investigation into Marshall revealed that he had been frequenting a firearms store in Virginia. There, Marshall, a previously convicted felon, had been purchasing AR-15 pistol kits and Polymer 80 kits to make AR-15 pistols and Glock-style pistols. These kits are used to make guns without serial numbers and may be legally sold to anyone, regardless of whether they are prohibited from possessing firearms.
In December 2020, law enforcement executed a search warrant at Marshall’s residence in Maryland. There, agents recovered a fully functional .40-caliber Polymer 80 Glock-style firearm with a 50-round agazine, as well as an AR-15 rifle. Agents also seized another five high-capacity magazines, various other gun magazines, and hundreds of rounds of ammunition for both rifles and pistols. Agents additionally discovered that Marshall’s workspace, tools, and parts were dedicated to turning the gun kits into the fully functional weapons found in his residence.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; Peter Newsham, Chief of Prince William County Police; and Malik Aziz, Chief of Prince George’s County Police, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Katherine E. Rumbaugh prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This prosecution is also part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation Operation Optima Prime. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case was investigated by the FBI WFO’s Northern Virginia Safe Streets/HIDTA task force, which is composed of FBI agents and agents from HSI, the U.S. Marshals Service, and task force officers from Northern Virginia counties. The task force is charged with investigating and disrupting the most egregious and violent gang and narcotics distributors operating in Northern Virginia.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-119.
Convicted Felon Sentenced for Illegal Firearm PossessionRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a convicted felon for illegally possessing a firearm, announced U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Johnnie Sharp, Jr.
U.S. District Court Judge Corey L. Maze sentenced Jack David “Jackie” Stovall, II, 73, of Anniston, to 36 months in prison followed by 36 months supervised release for being a felon in possession of a firearm. Additionally, a fine of $40,000.00 was also imposed. Stovall pleaded guilty to the charge in July.
“The Anniston area is a focus of our ongoing efforts to reduce violent crime, and especially gun crimes, in this district,” U.S. Attorney Escalona said. “We are grateful for the work of the Anniston Police Department and FBI on this important case.”
“Today's sentence is the culmination of a great law enforcement cooperative effort to bring Stovall to justice,” SAC Sharp said. “I want to thank the Anniston Police Department, my agents, and all of our partners for their tireless work in this case.”
According to the plea agreement, on April 9, 2021, Stovall unlawfully possessed a Mossberg Model 715P .22 caliber semi-automatic rifle, a North American Arms .22 caliber magnum revolver, and approximately 500 rounds of ammunition. Stovall is prohibited from possessing firearms due to prior felony convictions. In December 1997, he pleaded guilty to attempted murder for hire and unlawful possession of a firearm in the U.S. District Court for the Northern District of Alabama.
FBI investigated the case along with the Anniston Police Department. Assistant U.S. Attorneys Kristen Osborne and Kristy Peoples prosecuted the case.