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Thursday 16 September 2021
Pakistan resident sentenced to prison for long-running phone unlocking scheme to defraud AT&TRead the Press Release
Seattle –A resident of Pakistan was sentenced today in the Western District of Washington to 12 years in prison for his leadership role in a seven-year scheme to unlawfully unlock phones to defraud AT&T Inc. (AT&T). At the sentencing hearing U.S. District Judge Robert S. Lasnik noted that Fahd had committed a “terrible cybercrime over an extended period,” even after he was aware that law enforcement was investigating.
Beginning in 2012, Muhammad Fahd, 35, conspired with others to recruit AT&T employees at a call center located in Bothell, Washington, to unlock large numbers of cellular phones for profit. Fahd recruited and bribed AT&T employees to use their AT&T credentials to unlock phones for ineligible customers. Later in the conspiracy, Fahd had the bribed employees install custom malware and hacking tools that allowed him to unlock phones remotely from Pakistan. In September 2020, he pleaded guilty to conspiracy to commit wire fraud.
“This defendant is a modern-day cybercriminal who combined his technological expertise with old-school techniques such as bribery, intimidation, and exploitation to run a criminal organization causing $200 million in losses,” said Acting U.S. Attorney Tessa M. Gorman. “And the damage was not just financial. Sadly, he persuaded and pressured young people into engaging in criminal conduct, spreading the damage of his greedy scheme to others.”
Cellular phones such as iPhones cost hundreds of dollars. To make the phones more affordable, during the relevant time, AT&T subsidized the purchase cost of phones or sold phones to customers under installment plans. Unlocking a phone effectively removes it from AT&T’s network, thereby allowing the account holder to avoid having to pay AT&T for service or to make any payments for purchase of the phone.
According to records filed in the case, in approximately June or July of 2012, using the alias “Frank Zhang,” Fahd contacted an AT & T employee through Facebook. Fahd offered the employee significant sums of money if the employee would help Fahd secretly unlock phones at AT&T. Fahd also asked the employee to recruit other AT&T employees to help with the unauthorized unlocks. Fahd needed additional AT&T employees to join the scheme, because Fahd wanted someone to be always available to expand his ability to do unauthorized unlocks.
Fahd also instructed the recruited employees to set up fake businesses, and bank accounts for those businesses, to receive payments, and to create fictitious invoices for every deposit made into the fake businesses’ bank accounts to create the appearance that the money was payment for genuine services.
In the spring of 2013, AT&T implemented a new unlocking system that made it more difficult for the bribed employees to unlock IMEIs for Fahd. In response, Fahd hired a software developer to design malware that could be installed without authorization on AT&T’s computer system to unlock phones more efficiently and in larger numbers. At Fahd’s request, the employees provided confidential information to Fahd about AT&T’s computer system and unlocking procedures to assist in this process. Fahd also had the employees install malware on AT&T’s computers that captured information about AT&T’s computer system and the network access credentials of other AT&T employees. Fahd provided the information to his malware developer, so the developer could tailor the malware to work on AT&T’s computers.
AT&T’s forensic analysis shows the total number of cellular telephones fraudulently unlocked by members of the scheme was 1,900,033 phones. AT&T has further determined that the loss it suffered because customers, whose cellular phones were illegally unlocked, failed to complete payments for their cellular telephones was $201,497,430.94.
Judge Lasnik ordered restitution of $200,620,698. (The difference between this amount and the total loss reflects restitution ordered against bribed AT&T employees in related prosecutions.)
Fahd was indicted in 2017, and arrested in Hong Kong in 2018. He was extradited and appeared in U.S. District Court in Seattle in August 2019. He pleaded guilty to conspiracy to commit wire fraud in September 2020.
This case is the result of an investigation conducted by the Seattle field office of the United States Secret Service, IRS-CI, and the U.S. Department of Justice. The Justice Department’s Office of International Affairs provided significant assistance.
This case was prosecuted by Assistant U.S. Attorneys Andrew Friedman and Francis Franze-Nakamura of the Western District of Washington, and Senior Counsel Anthony Teelucksingh of the Criminal Division’s Computer Crime and Intellectual Property Section.
Oregon Tribes Among 12 Selected for Participation in Program Enhancing Tribal Access to National Crime Information DatabasesRead the Press Release
WASHINGTON—The Department of Justice has selected an additional 12 federally recognized tribes to participate in the expansion of the Tribal Access Program for National Crime Information (TAP), a program that provides tribal governments with means to access, enter, and exchange data with national crime information systems, including those maintained by the FBI Criminal Justice Information Services (CJIS) Division and the states.
“Timely access to federal criminal information can help protect domestic violence victims, place foster children in safe conditions, solve crimes, and apprehend fugitives on tribal land, among other important uses,” said Deputy Attorney General Lisa O. Monaco. “Increasing tribal access to criminal databases is a priority of the Justice Department and this Administration, and essential to many tribal government efforts to strengthen public safety in their communities.”
“Tribal law enforcement agencies have long sought access to federal criminal databases to obtain important information that can be used to prevent violent crime in tribal communities. We are pleased that the Confederated Tribes of the Warm Springs Reservation and Cow Creek Band of Umpqua have been selected for participation in the TAP program and look forward to more Oregon tribes being added in the future. The Justice Department and U.S. Attorney’s Office for the District of Oregon are deeply committed to keeping Oregon tribal communities safe,” said Acting U.S. Attorney Scott Erik Asphaug.
The program provides training as well as software and biometric/biographic kiosk workstations to process fingerprints, take mugshots, and submit information to FBI Criminal Justice Information Services (CJIS) systems. With these additional tribes, there are now 108 federally recognized Tribes participating in TAP.
TAP has been an important resource for the department’s Missing and Murdered Indigenous Persons Initiative and the Presidential Task Force on Missing and Murdered American Indians and Alaska Natives known as Operation Lady Justice. The Department of Justice began TAP in 2015 in response to concerns raised by tribal leaders about the need to have direct access to federal systems.
Using TAP, tribes have shared information about missing persons; registered convicted sex offenders; entered domestic violence orders of protection for nationwide enforcement; run criminal histories; identified and arrested fugitives; entered bookings and convictions; and completed fingerprint-based record checks for non-criminal justice purposes such as screening employees or volunteers who work with children.
The following tribes have been newly selected for participation in TAP:
- Confederated Tribes of the Warm Springs Reservation
- Cow Creek Band of Umpqua
- Fort Belknap Indian Community
- Grand Traverse Band of Ottawa and Chippewa
- Havasupai Tribe
- Lower Brule Sioux Tribe
- Menominee Tribe
- Mille Lacs Band of Ojibwe
- Muckleshoot Tribe
- Passamaquoddy Tribe
- Shingle Springs Band of Miwok
- United Keetoowah Band of Cherokee
TAP is managed by the Justice Department’s Office of the Chief Information Officer and the Office of Tribal Justice. It is funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART), the Office of Community Oriented Policing Services (COPS), the Office for Victims of Crime (OVC), and the Office on Violence Against Women (OVW).
For more information on TAP, visit http://www.justice.gov/tribal/tribal-access-program-tap.
Nine Members of Kensington “TRUHITTAZ” Drug Trafficking Group Sentenced to a Total of 73 Years in PrisonRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Hassan Griffin, 25, a/k/a “Glizzy,” “Frizzy,” “ODOG,” and “GlizzytheHitta,” of Philadelphia, PA, was sentenced to 12 years in prison, 10 years supervised release and a $2,000 special assessment by United States District Judge Mitchell S. Goldberg for conspiracy to distribute and distribution of phencyclidine (“PCP”), and cocaine base (“crack”) through the Drug Trafficking Group (DTG) he led in the Kensington neighborhood of Philadelphia.
Griffin and eight other individuals, James Grimes, 30, a/k/a “Speedy,” “Dink,” “HM;” Andrew Gault, 29, a/k/a “Fly,” “Butterknife King,” “BKK;” Katina Grimes, 32, a/k/a “Snoop,” “SnoopdaHitta;” Tyreeq Lenair, 29, a/k/a “Bear;” Quran Justice, 24, a/k/a “Skee;” Wayne Brunson, 27, a/k/a “Weez;” Unterrio Parris, 27, a/k/a “Dudda,” “Didda;” and Anthony Hill, 30, a/k/a “Turk,” “Turt;” were charged by Indictment in April 2018 with numerous counts of drug trafficking offenses arising from their participation in the “TruHittaz” DTG that controlled the 700 and 800 blocks of East Madison and East Willard Streets in Philadelphia. To anyone driving by, this was a residential neighborhood, lined with rowhomes, trees and parked cars. But to the TruHittaz and their customers, it was - as they called it - “the block” and “the jungle.” It was a place where some of the very row homes, alleys and vacant lots that lined those streets became stash locations (hiding spots) for the drugs supplied by these defendants and sold by their workers, and for the guns supplied by James Grimes to protect their block, their drugs, and their profits from being robbed. Witnesses recounted driving these streets in the summer months and smelling the distinct odor of PCP in the air while the bottles and caps used to package and sell this dangerous drug littered the road and alleyways.
Led by Grimes and Griffin, the TruHittaz obtained quantities of phencyclidine, cocaine base, heroin, marijuana, and other controlled substances from suppliers, both outside and within the Eastern District of Pennsylvania. They then sold these drugs twenty-four hours a day, seven days a week, by employing a network of bosses, caseworkers, trappers and lookouts, such that when one member was unavailable for any reason, another took his or her place. When a member returned from arrest, prison, or even after being shot, s/he immediately resumed his/her criminal activity. This allowed the TruHittaz to sell at least five ounces of PCP and 10 bundles of crack every twelve hours – meaning that it took just over seven days (not including the night shift) to sell a kilogram of PCP and 280 grams of crack.
The TruHittaz DTG made large sums of money and protected its operations by selling drugs, carrying and using firearms, engaging in acts of intimidation and threats, and by recruiting individuals in their own community who were financially or otherwise vulnerable. The group operated in an open-air market undeterred by the presence of law enforcement, local arrests, or shootings in the area. Their main stash house (where over a kilogram of PCP, hundreds of vials and other packaging paraphernalia and numerous rounds of ammunition were seized) was located directly next to an operating daycare center. Their drug territory and many “offsite” sales took place in direct proximity to several area schools including: Philip Sheridan School, 800 East Ontario Street; the People for People Charter School, 800 North Broad Street; the Woodrow Wilson Middle School, 1800 Cottman Avenue; the Russell H. Conwell Middle School, 1849 East Clearfield Street; and the Resurrection Regional Catholic School, 2020 Shelmire Avenue.
Griffin’s sentencing yesterday brings to a close a more than five-year effort by federal and local law enforcement to disrupt and dismantle the TruHittaz DTG. The above-named defendants were sentenced to a total of 73 years in prison followed by lengthy periods of federal supervision.
“This vast and sophisticated drug trafficking enterprise left a path of destruction across Kensington and throughout Philadelphia,” said Acting U.S. Attorney Williams. “Today’s sentence brings to a close our dedicated effort to take down the nefarious TruHittaz criminal organization, and we remain committed to cutting off the supply of deadly drugs into our communities.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and is being prosecuted by Assistant United States Attorneys MaryTeresa Soltis and Christopher E. Parisi.
New Orleans Man Sentenced to 272 Months in Prison for Eight Armed RobberiesRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that ERISTON WILSON (“WILSON”), age 28, of New Orleans, Louisiana was sentenced to imprisonment on September 15, 2021 by U.S. District Court Judge Lance M. Africk for charges relating to eight armed robberies of gas stations and convenience stores.
WILSON committed armed robberies of three Shell Gas Stations on General de Gaulle Drive and multiple convenience stores on the West Bank and in the Seventh Ward. He brandished a firearm and wore blue gloves in the robberies.
In August of 2019, WILSON was charged with one count of conspiracy to commit Hobbs Act robbery and one count of brandishing a firearm during and in relation to a crime of violence.
WILSON was found guilty by a jury in December 2019 on both counts.
Judge Africk sentenced WILSON to 272 months in the Bureau of Prisons, 60 months of supervised release, and $200 in mandatory special assessment fees.
The U.S. Attorney's Office praised the work of the Federal Bureau of Investigation. The prosecution of the case was conducted by Assistant U.S. Attorneys Kathryn McHugh and Greg Kennedy.
New Iberia Man Sentenced for Illegal Possession of FirearmRead the Press Release
ALEXANDRIA, La. - Acting United States Attorney Alexander C. Van Hook announced that Dondrea Joseph, 28, of New Iberia, Louisiana, has been sentenced by United States District Judge Dee D. Drell to 37 months in prison, followed by 2 years of supervised release, on firearms charges.
According to information presented in court, on April 12, 2017, Joseph was charged by a Bill of Information in Iberia Parish, Louisiana with possession with intent to distribute cocaine. In February 2019, while this felony charge was pending against Joseph, a Breaux Bridge police officer reported that her Glock pistol had been stolen.
On September 29, 2019, Joseph was stopped for speeding on I-49 in Rapides Parish. Joseph did not have a valid driver’s license, and the vehicle he was driving was a rental. Officers were given consent to search the vehicle from Joseph’s girlfriend, whom the car was rented to, and they found a loaded Glock pistol with a 33-round extended magazine and a Glock switch attached to it, which converted it from a semi-automatic to an automatic firearm, under the driver’s seat. This firearm was later determined to be the same one stolen from the police officer in February 2019. At the time of the traffic stop, Joseph knew that he was under indictment for a crime punishable by imprisonment for a term exceeding one year and therefore, was prohibited from possessing a firearm or ammunition. Joseph was arrested and charged with receiving a firearm and ammunition by a person under indictment.
The ATF and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Jessica D. Cassidy prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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Navajo man sentenced to 20 years in prison for murderRead the Press Release
ALBUQUERQUE, N.M. – Troy Livingston, 21, of Bread Springs, New Mexico, and an enrolled member of the Navajo Nation, was sentenced in federal court on Sept. 8 to 20 years in prison for second degree murder in Indian Country. Upon his release from prison, Livingston will serve five years of supervised release.
According to his plea agreement and other court records, on April 6, 2019, Livingston beat Jane Doe, his girlfriend and the mother of his young child, with his hands, feet, and a metal flashlight, causing severe injuries to her head, face and body. Livingston admitted that he killed Jane Doe with malice aforethought and that he acted with callous and wanton disregard for human life. The murder took place at a residence located in McKinley County on the Navajo Nation.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department. Assistant U.S. Attorneys David P. Cowen and Frederick T. Mendenhall prosecuted the case.
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NDUTIME Youth & Family Services and its CEO Settle False Claims Act Allegations Relating to the Virginia Medicaid ProgramRead the Press Release
RICHMOND, Va. – A Henrico County mental health services provider and its executive officer agreed to settle a civil lawsuit alleging they caused the submission of false claims to the Virginia Medicaid program, announced Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia and Mark R. Herring, Attorney General of Virginia.
NDUTime Youth & Family Services, Inc. (NDUTime) and its current Chief Executive Officer, Teshana Gipson, of Henrico County, have agreed to pay $700,000 to settle a civil fraud lawsuit alleging they caused false claims to be submitted for payment from the Virginia Medicaid program.
The United States and the Commonwealth of Virginia jointly filed a complaint against NDUTime and Gibson under the federal False Claims Act and the Virginia Taxpayers Against Fraud Act. NDUTime provided crisis intervention, crisis stabilization, and therapeutic day treatment for children, among other mental health services. NDUTime was only entitled to reimbursement for services that it actually provided. In addition, Virginia state law required that certain services be provided by a licensed mental health professional and that initial assessments be made before services were provided. The lawsuit alleged that, between 2013 and 2017, NDUTime submitted false claims for services that it did not actually render, false claims for services that were not provided by a licensed counselor, and false claims that were based on initial assessments that were not completed by a licensed counselor.
The Government initiated an investigation after two separate lawsuits were filed under the False Claims Act and the Virginia Taxpayers Against Fraud Act by whistleblowers who made the allegations. These Acts permit the government time to investigate allegations of fraudulent conduct and to intervene in such lawsuits. Based on their investigation of the allegations, the Government intervened, the cases were consolidated and unsealed, and the Government filed its own complaint.
The False Claims Act and the Virginia Taxpayers Against Fraud Act also permit whistleblowers to receive a share of between fifteen and twenty-five percent of any recovery.
The resolution in this matter was the result of a coordinated effort by the U.S. Attorney’s Office for the Eastern District of Virginia and the Virginia Office of the Attorney General’s Medicaid Fraud Control Unit. The matter was investigated by Assistant U.S. Attorney Robert McIntosh, former Assistant Attorney General Jessica McKenzie, and Assistant Attorneys General Airen Adamonis, Ray Bowman, and Megan Winfield.
Related court documents and information from the civil lawsuit are on PACER by searching for Case No. 3:16-cv-653.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
The civil claims settled by this agreement are allegations only; there has been no determination of civil liability.
Modesto Man Charged with Being a Felon in Possession of a FirearmRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Ramiro Cervantes, 24, of Modesto, charging him with being a felon in possession of a firearm, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on May 29, 2021, police officers attempted to stop a vehicle that Cervantes was riding in as a passenger. Cervantes, who was on parole, attempted to flee the scene and struggled with police. A loaded semi-automatic Colt M4, .22‑caliber rifle was located in the passenger compartment where Cervantes had been seated. Cervantes has prior felony convictions and cannot lawfully possess firearms.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Modesto Police Department, and the Stanislaus County District Attorney’s Office. Assistant U.S. Attorney Katherine E. Schuh is prosecuting the case.
If convicted, Cervantes faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Milwaukee Man Sentenced to 7 Years for Drug and Gun CrimesRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Dewayne Veasy, 32, Milwaukee, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 84 months in federal prison for possessing a firearm as a felon and for possessing cocaine with intent to distribute it. This prison term will be followed by 4 years of supervised release. Veasy pled guilty to these charges on June 28, 2021.
The charges in this case stem from Veasy’s arrest near Rhinelander, Wisconsin on July 2, 2020. Officers with the Oneida County Sheriff’s Office stopped the van in which Veasy was a passenger after a 911 caller reported Veasy had robbed her during an earlier methamphetamine sale. At the time of the stop, Veasy was in possession of methamphetamine, marijuana, cocaine, heroin laced with fentanyl, as well as a 9mm handgun. Veasy later admitted to traveling around northern Wisconsin to sell controlled substances and admitted to selling methamphetamine to the 911 caller.
At the time of these offenses, Veasy was federally prohibited from possessing a firearm because of prior state felony convictions for armed robbery and cocaine distribution.
At sentencing, Chief Judge Peterson explained a substantial sentence was warranted because Veasy had escalated his criminal conduct both in substance and scope when compared to his prior state convictions for drug dealing. Chief Judge Peterson reasoned that Veasy’s possession of a firearm while completing drug deals created a real threat of danger to the community, even if the 911 caller’s report of robbery was unreliable.
The investigation in this case was conducted by the Oneida County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Taylor L. Kraus handled the prosecution.
Michigan man admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Donovan Swift, of Shelby Township, Michigan, has admitted to a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Swift, 31, pleaded guilty today to one count of “Possession with Intent to Distribute Cocaine Base.” Swift admitted to distributing cocaine base, also known as “crack,” in October 2020 in Monongalia County.
Swift faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, & Explosives and the Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Menominee Indian Tribe of Wisconsin Selected for Participation in Program Enhancing Tribal Access to National Crime Information DatabasesRead the Press Release
Acting U.S. Attorney Richard G. Frohling of the Eastern District of Wisconsin joined Deputy Attorney General Lisa O. Monaco and other Department of Justice officials in announcing that the Menominee Indian Tribe of Wisconsin was one of 12 federally recognized tribes selected to participate in the expansion of the Tribal Access Program for National Crime Information (TAP), a program that provides tribal governments with means to access, enter, and exchange data with national crime information systems, including those maintained by the FBI Criminal Justice Information Services (CJIS) Division and the states.
The program provides training as well as software and biometric/biographic kiosk workstations to process fingerprints, take mugshots, and submit information to FBI’s CJIS systems. With these additional tribes, there are now 108 federally recognized Tribes participating in TAP.
TAP has been an important resource for the department’s Missing and Murdered Indigenous Persons Initiative and the Presidential Task Force on Missing and Murdered American Indians and Alaska Natives known as Operation Lady Justice. The Department of Justice began TAP in 2015 in response to concerns raised by tribal leaders about the need to have direct access to federal systems.
Using TAP, tribes have shared information about missing persons; registered convicted sex offenders; entered domestic violence orders of protection for nationwide enforcement; run criminal histories; identified and arrested fugitives; entered bookings and convictions; and completed fingerprint-based record checks for non-criminal justice purposes such as screening employees or volunteers who work with children.
“Timely access to federal criminal information can help protect domestic violence victims, place foster children in safe conditions, solve crimes, and apprehend fugitives on tribal land, among other important uses,” said Deputy Attorney General Monaco. “Increasing tribal access to criminal databases is a priority of the Justice Department and this Administration, and essential to many tribal government efforts to strengthen public safety in their communities.”
Acting United States Attorney Frohling stated “Having access to these databases will allow for the timely exchange of critical information – all with the goal of increasing public safety for everyone living, working, and going to school on the Menominee Indian Reservation.”
TAP is managed by the Justice Department’s Office of the Chief Information Officer and the Office of Tribal Justice. It is funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART), the Office of Community Oriented Policing Services (COPS), the Office for Victims of Crime (OVC), and the Office on Violence Against Women (OVW). For more information on TAP, visit www.justice.gov/tribal/tribal-access-program-tap.
For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
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Members and Associates of El Grupo De Los 27 Prison Gang Indicted for Violating the Rico Act in Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – A federal indictment was unsealed today in the District of Puerto Rico charging twenty-nine defendants with racketeering—drug trafficking, money laundering, bribery, extortion, wire fraud, and murder—and firearms trafficking committed in furtherance of one of the oldest criminal enterprises in Puerto Rico, El Grupo de los 27, announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. Since 1980, El Grupo de los 27, also known as Los 27, has engaged in criminal activity within and outside the prison system of the Puerto Rico Department of Corrections and Rehabilitation (PR DOC) and the Federal Bureau of Prisons (BOP). On June 27, 1980, Luis Pinela-Pizarro, aka “Shino Pinela/Tio/Pai/El Viejo” and others founded Los 27. The enterprise’s primary purpose was to take control of the prisons to make money.
Los 27 made money from diverse crimes. The main sources of revenue for the enterprise were: drug trafficking in the PR DOC and the BOP; a tax they imposed on other inmates known as el incentivo when they introduced drugs into prison; and fraud and extortion through canteos. Los 27’s involvement in drug trafficking included the introduction and distribution of cocaine, heroin, marihuana, synthetic cannabinoids, Suboxone (buprenorphine/naloxone), crystal methamphetamine, alprazolam (Xanax), oxycodone (Percocet), and fentanyl. Members of Los 27 were able to introduce this contraband into the prisons with the help of corrupt PR DOC correctional officers, civilians who worked inside of the prison system, people who visited inmates, and persons who—from outside the prisons—threw drugs into the facilities (known as “pitcheos”), which were caught by members of the enterprise. Thirteen of the charged defendants were either drug suppliers or facilitators of the enterprise, some of them correctional officers, who, from outside of prison, played an instrumental role in ensuring the group’s success in the drug trade and canteos.
The canteos were the main source of income for the enterprise. In the canteos, Los 27 members used cellphones illegally introduced into prison to obtain money from people outside of prison by threatening and lying to them. Hundreds of Los 27 members located in different prisons received cell phones from their leaders. They then called people at random and used lies and threats to obtain money. In one day, a Los 27 member could obtain thousands of dollars from the canteos.
The organization generated millions of dollars from its involvement in crime. For this reason, the indictment includes a forfeiture allegation of $40,000,000 for money the enterprise made from racketeering.
Los 27 used violence including assaults, electrocutions, and murder to maintain discipline and control over the enterprise’s criminal activities and continue generating money. Members of the enterprise and their associates were expected to follow the rules of the enterprise. Failure to follow certain rules could be punished by death. According to the information contained in the indictment, on July 26, 2010, defendant Edgardo Rondón-Correa ordered the murder of Alexis Santiago-Montañez, a/k/a “Chanfle”. Leaders punished cooperation with law enforcement and killing other Los 27 members with death to maintain and increase the power of the enterprise.
Furthermore, to maintain and increase its power, Los 27 worked with people and gangs in the free community who were associated with the enterprise. Notably, members of the enterprise and their associates engaged in firearms trafficking to make sure that the gangs outside of prison that were affiliated with Los 27 would have the weapons they needed to maintain control of their drug trafficking activities.
The charged defendants include fourteen leaders of the enterprise and thirteen members of the enterprise’s outside-support system who acted as drug suppliers and facilitators. The defendants are:
- Luis Pinela-Pizarro, aka “Shino Pinela/Tio/Pai/El Viejo”
- Luis Soto-Solivan, aka “Joel Cabezón/Joel DLP”
- Edgardo Rondón-Correa, aka “Tribi/Pepa”
- Héctor Ramos-Rodríguez, aka “Cagari”
- Omar Bermúdez-Serrano, aka “Arrebati”
- Abimael Morales-Arvelo, aka “Abi”
- Ángel Gómez-Martínez, aka “Spaghetti”
- Juan Rodríguez-García, aka “Yito”
- Juan Peña-Delgado, aka “Mongui”
- David Torres-Cotto, aka “Coscu/Cantante”
- Javier Luciano-Cruz, aka “Coco”
- Alexander Millán, aka “Gago”
- Jeonell De Jesús-Torres, aka “Panda/El Oso”
- Irvin Torres-Meléndez, aka “Culson”
- Victor Elías-Boza, aka “Grilla”
- Jose Torres-Tañón, aka “Pajai”
- Sundry Ortiz-Brito
- Cinthia Caquías-Rodríguez
- Naomie R. Clavel-Nadal
- Grecia Salas-Cruz
- Johana Bermúdez-Rodríguez
- Stephanie Torres-Mora
- Michelle González-Roldán
- Yahaira Marrero-Santana
- Carmen Maldonado-Vázquez
- Waleska Santana-Hernández
- Carolina Torres-Tangarife
- Eddie William Pérez-Santiago
- Héctor Figueroa-Marbelt
This prosecution is the product of an FBI investigation with the collaboration of the Puerto Rico Department of Corrections and Rehabilitation, the Federal Bureau of Prisons, the Internal Revenue Service, the Puerto Rico Department of the Treasury (Hacienda), the U.S. Marshals Service, the Puerto Rico Police Bureau, and the San Juan Municipal Police.
“This indictment highlights the efforts of law enforcement authorities that targeted a large-scale prison gang involved in violent organized crime,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “Recognizing and neutralizing these organizations is vitally important, and I must commend our local, state and federal law enforcement partners for their commitment to make our communities safer.”
“Today, the FBI San Juan Division, in coordination with the New York, Tampa and Boston Field Offices, as well as our local, state, and federal law enforcement partners, disrupted a violent criminal organization which operated from various prisons and struck fear into our communities. In doing so, we have returned some measure of peace and justice to the victims of their evil schemes,” said Joseph González, Special Agent in Charge of the FBI, San Juan Division. “The most egregious aspect of these crimes was that they were actively enabled by corrupt law enforcement officers who failed to uphold their oath to the people they were sworn to serve. That is unacceptable.”
Assistant U.S. Attorney Victor O. Acevedo-Hernández is in charge of the prosecution of the case. If convicted, the defendants face up to life in prison.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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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Maryland Acting U.S. Attorney Jonathan F. Lenzner Announces over $1.8 Million in Federal Grants to Address Victims of Sexual Assault and Domestic ViolenceRead the Press Release
Baltimore, Maryland – Acting U.S. Attorney Jonathan F. Lenzner today announced $1,827,899 in U.S. Department of Justice grants to address violence against women. These grants from the Legal Assistance for Victims (LAV) Program of the Department of Justice’s Office on Violence Against Women. Nationally, the LAV Program is awarding nearly $36 million in victim legal assistance funding to organizations across the country.
Acting U.S. Attorney Jonathan F. Lenzner stated, “These grants will be used to provide long term legal services to victims and survivors of sexual assault and domestic violence in areas such as family law, housing and employment. This will enable these victims and survivors to achieve lasting safety and economic independence for themselves and their families.”
The Legal Assistance for Victims (LAV) Program is intended to increase the availability of civil and criminal legal assistance needed to effectively aid adult and youth victims of sexual assault, domestic violence, dating violence, and stalking by providing funds for comprehensive direct legal services to victims in legal matters relating to or arising out of that abuse or violence. Comprehensive legal services extend beyond representation in emergency and non-emergency protection order hearings to address the broad spectrum of legal issues that victims encounter, including family matters such as divorce, child custody or child support, immigration, administrative agency proceedings, and consumer or housing matters.
The following organizations in Maryland received funding:
- Heartly House in Frederick, Maryland received $427,999 to hire an attorney for long term legal services for victims and survivors of intimate partner violence, sexual assault, dating violence, and child abuse.
- House of Ruth in Baltimore, Maryland received $600,000 in order to provide free legal representation to low-income, high-risk victims of domestic violence in family law cases in order to help those victims achieve lasting safety, and economic independence.
- The Maryland Coalition Against Sexual Assault (MCASA) in Silver Spring, Maryland received $800,000 to provide holistic legal representation to survivors/victims of sexual assault in civil and criminal matters resulting from the sexual assault, with a focus beyond intimate partner sexual assault.
The Office on Violence Against Women provides federal leadership in developing the national capacity to reduce violence against women and administer justice for and strengthen services to victims of domestic violence, dating violence, sexual assault, and stalking.
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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Manhattan U.S. Attorney Announces Additional Distribution of More Than $568 Million to Victims of Madoff Ponzi SchemeRead the Press Release
Attorney General Merrick Garland, Audrey Strauss, the United States Attorney for the Southern District of New York, and Kenneth A. Polite Jr., the Acting Assistant Attorney General of the Justice Department’s Criminal Division, announced today that the Madoff Victim Fund established by the Department of Justice began its seventh distribution to victims of funds forfeited to the United States Government in connection with the Bernard L. Madoff Investment Securities LLC (“BLMIS”) fraud scheme. The distribution will include approximately $568 million in additional funds, bringing the total distributed to date to over $3.7 billion. The additional funds will be sent to nearly 31,000 victims worldwide, the seventh payment to victims that will bring their total recovery from all sources of compensation to 81.35 percent of their losses. Additionally, more than 2,600 victims will receive their first payment in this distribution. The Madoff Victim Fund will ultimately return to victims more than $4 billion in assets that have been recovered as compensation for losses suffered by the collapse of BLMIS, following the largest fraud in history. Another $5 billion in assets recovered by the U.S. Attorney’s Office are being separately paid to Madoff victims through the BLMIS Customer Fund administered by the Securities Investor Protection Act Trustee.
Manhattan U.S. Attorney Audrey Strauss said: “This Office continues to seek justice for victims of history’s largest Ponzi scheme. The additional payment of more than $568 million by our Office and the U.S. Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section represents the seventh in a series of distributions that will leave victims with compensation for more than 81 percent of their losses. But our work is not yet finished, and the Office’s tireless commitment to compensating the victims who suffered as a result of Madoff’s heinous crimes continues.”
Acting Assistant Attorney General Kenneth A. Polite Jr. said: “This distribution provides nearly 31,000 victims additional financial recovery from the egregious crimes committed by Bernard Madoff. The Department’s continued efforts to ensure justice for victims of crime is demonstrated through the ongoing Madoff remission process and the billions given back to innocent victims worldwide.”
Since the early 1970s, BERNARD L. MADOFF (“MADOFF”) used his position as Chairman of BLMIS, the investment advisory business he founded, to steal billions from his clients. On March 12, 2009, MADOFF pled guilty to 11 federal felonies, admitting that he had turned his wealth management business into the world’s largest Ponzi scheme, benefitting himself, his family, and select members of his inner circle. On June 29, 2009, United States District Judge Denny Chin sentenced MADOFF to 150 years in prison for running the largest fraudulent scheme in history. Judge Chin ordered MADOFF to forfeit $170,799,000,000 as part of MADOFF’s sentence.
The Madoff Victim Fund is funded through recoveries by the U.S. Attorney’s Office in various criminal and civil forfeiture actions, and is overseen by Richard Breeden, the former chairman of the United States Securities and Exchange Commission, in his capacity as special master appointed by the Department of Justice to assist in connection with the victim remission proceedings.
Of the approximately $4.05 billion that will be made available to victims through the Madoff Victim Fund, approximately $2.2 billion was collected as part of the civil forfeiture recovery from the estate of deceased MADOFF investor Jeffry Picower. An additional $1.7 billion was collected as part of a Deferred Prosecution Agreement with JPMorgan Chase Bank N.A. for MADOFF-related Bank Secrecy Act violations. Additional funds were collected through criminal and civil forfeiture actions against MADOFF and his co-conspirators, and certain MADOFF investors.
Ms. Strauss praised the work of the Federal Bureau of Investigation and the Madoff Victim Fund, and thanked the Money Laundering and Asset Recovery Section of the Department of Justice’s Criminal Division for their assistance.
For more information about the Madoff Victim Fund, compensation to victims of BLMIS, eligibility criteria, and payment information, please visit www.madoffvictimfund.com, or phone 866-624-3670.
The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorney Louis A. Pellegrino is in charge of the case. The remission of these forfeited funds is being handled by the Office and the U.S. Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section.
MS-13 Member Sentenced to 35 Years’ Imprisonment for Racketeering Conspiracy and Other Violent CrimesRead the Press Release
A Maryland man was sentenced yesterday to 35 years in prison for conspiracy to participate in a racketeering enterprise, murder and attempted murder in aid of racketeering, and other charges in connection with his La Mara Salvatrucha, aka “MS-13” gang, activities between 2015 and 2019.
Moises Alexis Reyes-Canales, aka Psicopata, aka Convicto, 23, of Annapolis, pleaded guilty to the offenses on May 5. According to court documents, Reyes-Canales was a member and associate of MS-13 and participated in a racketeering conspiracy that included assaults, murder, attempted murder, robbery and drug trafficking. Specifically, in 2016, Reyes-Canales participated in the murder of a suspected rival gang member and conspired and attempted to murder two victims in Annapolis. In addition, between January 2016 and February 2017, Reyes-Canales and other MS-13 members/associates sold cocaine and marijuana to raise funds for the gang. The drug proceeds were used to purchase more narcotics and weapons, and to send to MS-13 members and associates in other states and in El Salvador.
“Due to the diligent work of our law enforcement partners and the department prosecutors in this case, Reyes-Canales and his MS-13 co-defendants will no longer be able to victimize the Annapolis community,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Reyes-Canales and his co-defendants murdered one victim and attempted to murder two others, causing irreparable harm to the victims and their families. We will never stop pursuing those MS-13 gang members who intimidate and harm our communities.”
Co-defendants Marlon Cruz-Flores, 25, Fermin Gomez-Jimenez, 23, and Manuel Martinez-Aguilar, aka “El Lunatic” and “Zomb,” 22, all of Annapolis, previously pleaded guilty to the racketeering conspiracy and gun charge; both Gomez-Jimenez and Cruz-Flores were sentenced to 38 years in prison and Martinez-Aguilar was sentenced to 24 years. Co-defendant David Diaz-Alvarado, 20, of Annapolis, pleaded guilty to murder in aid of racketeering in connection with his MS-13 gang activities. Co-defendant Juan Carlos Sandoval-Rodriguez, 23, of Annapolis, was convicted on Oct. 31, 2019, of murder in aid of racketeering and conspiracy to commit murder in aid of racketeering for the murder of Victim 1 after an 11-day jury trial; he faces a mandatory sentence of life in prison at his sentencing, which is scheduled for Feb. 10, 2022. All of the defendants remain detained.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Anne Arundel Police Department, the Annapolis Police Department and the Anne Arundel State’s Attorney Office investigated the case.
Trial Attorneys Matthew Hoff and Samantha Mildenberg Loiero of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Zachary Stendig of the District of Maryland are prosecuting the case.
Anyone with information about MS-13 is encouraged to provide their tips to law enforcement. The FBI and Homeland Security Investigations both have nationwide tip lines that you can call to report what you know. You can reach the FBI at 1-866-STP-MS13 (1-866-787-6713), or you can call HSI at 1-866-DHS-2-ICE.
Leader of International Robocall Scam Sentenced for Defrauding over 4,000 U.S. Victims Out of More Than $10 MillionRead the Press Release
RICHMOND, Va. – An Indian national was sentenced today to 22 years in prison for conspiracy and identity theft in connection with his operation of an overseas robocall scam that defrauded thousands of victims out of more than $10 million.
“This defendant has been sentenced to 22 years in prison for being the mastermind and leader of an extensive multimillion-dollar robocall scheme that, from overseas, exploited over 4,000 American victims,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The impact of the harm inflicted on the victims of these robocall schemes can be devastating. The victims, many of whom are elderly, continue to endure significant financial hardship from the defendant’s vast fraud enterprise. The defendant operated and supervised the call center, was the ‘closer’ when speaking to victims, and managed the money couriers who illegally sent millions of stolen and hard-earned funds belonging to the victims back to his call center. When you consider the sheer number of victims this defendant extorted and the magnitude of their losses, the scale of harm and pain he caused is enormous. As this case demonstrates, we will continue to work closely with our partners to investigate, apprehend, and prosecute transnational criminal enterprises that steal from vulnerable American victims, and will bring the perpetrators of these scams to justice no matter where they are located.”
According to court documents, Shehzadkhan Pathan, 40, operated a call center in Ahmedabad, India, from which automated robocalls were made to victims in the United States. After establishing contact with victims through these automated calls, Pathan and other “closers” at his call center would coerce, cajole, and trick victims into sending bulk cash through physical shipments and electronic money transfers. Pathan and his conspirators used a variety of schemes to convince victims to send money, including impersonating law enforcement officers from the Federal Bureau of Investigation (FBI) and Drug Enforcement Administration (DEA) and representatives of other government agencies, such as the Social Security Administration, to threaten victims with severe legal and financial consequences. Conspirators also convinced victims to send money as initial installments for falsely promised loans.
“Fraud targeting the elderly has a uniquely harmful effect on a segment of the population that is often amongst society's most vulnerable. This conspiracy, which defrauded over 4,000 victims, many of whom were elderly, out of at least $10 million, is again an unfortunate reminder of the type of devastation these fraud schemes can wreak,” said Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal/Cyber Division. “Pathan, a leader of this scheme, which relied on impersonating law enforcement to threaten victims, is the 4th individual sentenced in this investigation and represents a step forward in our efforts to hold those who engage in these scams accountable to the fullest extent of the law. The FBI's work in this area is far from over as we remain steadfast in our commitment to relentlessly pursue these types of investigations to ensure the protection of the hard-earned livelihood of our nation's elderly.”
In addition to operating the call center, Pathan recruited and supervised a multitude of money couriers, whom he directed to receive money sent by victims. Pathan’s network of money couriers was located in multiple states, including but not limited to Virginia, New Jersey, Minnesota, Texas, California, South Carolina, and Illinois. Pathan assigned various aliases to these individuals and supplied them with hundreds of counterfeit identification documents to facilitate their receipt of victim cash shipments and money transfers. Pathan then directed the couriers to send the money to himself and other conspirators through various means, including cash deposits into numerous bank accounts and via informal money transmitters known as Hawalas.
Pathan is the fourth of six defendants in this case to be sentenced for their role in the conspiracy. Co-defendants Pradipsinh Parmar, 41, and Sumer Patel, 38, both of Ahmedabad, India, acted as money couriers during the conspiracy, and are scheduled to be sentenced on September 20.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local, and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson.
The Eden Prairie, Minnesota, Police Department provided significant assistance with this investigation.
Assistant U.S. Attorneys Brian R. Hood and Kaitlin G. Cooke are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-160.
Kitsap County, Washington man sentenced to prison for 20-year theft of brother’s Social Security benefitsRead the Press Release
Tacoma – An Olalla, Washington man was sentenced today in U.S. District Court in Tacoma to 25 months in prison for wire fraud and aggravated identity theft for his decades-long theft of his missing brother’s identity and benefits, announced Acting U.S. Attorney Tessa M. Gorman. Chris Harvey Sayler, 74, began fraudulently collecting his missing brother’s Social Security Disability benefits since at least 1998. Over the last twenty years, those benefits total more than $388,000. At the sentencing hearing, U.S. District Judge Robert J. Bryan said, “This is a sad case for all concerned – including the public…. It’s a crime against all the citizen taxpayers in the country.” Judge Bryan noted that but for Sayler’s age, health and military service, he would have faced a much longer sentence.
“Over the course of this investigation, the defendant has made conflicting statements about when he last saw his brother – who was reported missing in 1989,” said Acting U.S. Attorney Gorman. “Our hope was that the investigation could shed light on what happened to Jarvis Sayler. While that has not happened, we are able to hold his brother accountable for stealing benefits from government programs that are designed to help the most needy in our community.”
According to records in the case, Chris Sayler’s brother, Jarvis L. Sayler, traveled from his home in Missouri to the Vancouver, Washington area in 1988. He told relatives that he planned to visit Chris Sayler, then return to Missouri to build a home on property there. Jarvis Sayler was born with partial eyesight, and had been receiving Social Security disability benefits since 1977. Jarvis Sayler wrote a few letters to Missouri between June and September 1988, but that was the last anyone heard from him. A third brother in Missouri reported Jarvis Sayler missing in March of 1989. The Clark County Sheriff’s Office interviewed Chris Sayler at that time about his brother’s whereabouts. Sayler claimed his brother moved from his home after the two had an argument. That was the last reported sighting of Jarvis Sayler.
In 2013, a person claiming to be Jarvis Sayler attempted to renew a Washington State ID card, but the renewal was denied because facial recognition software indicated the person in the ID photo was the same as in a drivers license photo of Chris Sayler. When Sayler went to a Department of Licensing Office to renew a license (in his own name) years later, he claimed that he and Jarvis were twins and that was the reason for the facial recognition report. The clerk pointed out that the two men’s birthdates were four years apart, but Sayler said it is a “rare twin situation” that does occur. The investigation has revealed that Sayler and Jarvis Sayler are not biologically related.
In 2019, the Department of Licensing referred the matter to the Social Security Office of Inspector General (SSA-OIG) for investigation. The investigation revealed that as early as 1998, Sayler’s photo appears on Jarvis Sayler’s identification card and that the addresses on Jarvis’ cards and other identifying documents are associated with Chris Sayler.
Since at least 1998, Jarvis Sayler’s Social Security benefits went to a bank account opened with an address in Vancouver, Washington. When Chris Sayler moved to Olalla, the address on the account was updated to the new address as well. ATM withdrawal records and debit card records from retailers such as Costco and Fred Meyer show Sayler withdrawing money or making purchases with the debit card associated with Jarvis Sayler’s account.
Speaking with family members in September 2019, Sayler claimed he had not seen his brother in more than 15 years. When interviewed by law enforcement at the time of his arrest in October 2019, Sayler claimed he had last seen his brother in 2016 and before that in 2012.
In court today Sayler said, “I’m sorry that I caused all this problem. I shouldn’t have done it.”
In asking for the 25-month prison sentence, Assistant United States Attorney Benjamin Diggs noted that the ultimate loss to Social Security was likely more than $500,000, but records only exist from as far back as 1998. “The fraud loss of hundreds of thousands of dollars reflects the fact that this crime involves not an isolated incident of dishonesty or a brief lapse in judgment during a difficult period, but rather a separate decision to steal, month after month, for nearly 30 years, resulting in hundreds of separate acts of theft,” prosecutors wrote in their sentencing memo.
“Misusing Social Security benefits intended for another person is a Federal crime —one we will continue to aggressively pursue,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I want to thank our law enforcement partners for joining us in this investigation and the U.S. Attorney’s Office for prosecuting this case.”
The Clark County Sheriff’s Office remains interested in hearing from anyone who has information on Jarvis Sayler and his disappearance.
The case was investigated by the Social Security Office of Inspector General (SSA-OIG), Health and Human Services Office of Inspector General (HHS-OIG), and Homeland Security Investigations (HSI) as part of the Document and Benefit Fraud Task Force in Seattle. Investigative assistance was also provided by the FBI and Sheriff’s Offices for Clark County, Cowlitz County, and Kitsap County.
The case was prosecuted by Assistant United States Attorney Benjamin Diggs.
Kansas Man Sentenced to 480 Months for Production of Child PornRead the Press Release
WICHITA, KAN.– A Kansas man was sentenced to 480 months in prison for child pornography.
In May 2021, Clinton Wade McElroy, 49, of Ellis pleaded guilty to one count of production of child pornography after a prior conviction. According to court documents, McElroy admitted that between May 2020 and June 2020, he persuaded an 8-year-old child to produce sexually explicit images and send them to him through an online game and various messaging applications.
The FBI and the Ellis County Sheriff’s Department investigated the case.
Assistant U.S. Attorney Jason Hart prosecuted the case.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Justice Department Settles with Massachusetts Storage Company for Unlawfully Auctioning Off Deployed Servicemember’s PossessionsRead the Press Release
The Justice Department reached an agreement today with PRTaylor Enterprises LLC, doing business as Father & Son Moving & Storage (Father & Son), to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by failing to obtain a court order before auctioning off the entire contents of a U.S. Air Force Technical Sergeant’s two storage units while he was deployed overseas.
The United States’ complaint alleged that among the Technical Sergeant’s possessions sold by Father & Son were military gear and mementos that had belonged to a cousin killed in military action in Afghanistan, his grandfather’s military service medals, all of his household furnishings, and personal photographs.
The SCRA provides financial and housing protections and benefits to military members while they are in military service. One of the SCRA’s protections requires anyone holding a lien on the property of a servicemember to obtain a court order prior to auctioning off, selling or otherwise disposing of that property. Under the agreement, which must still be approved by the U.S. District Court for the District of Massachusetts, Father & Son must pay the Technical Sergeant $60,000 in damages, and the United States a $5,000 civil penalty. Father & Son must also implement certain new policies to prevent future SCRA violations.
“The Department of Justice is committed to vigorous enforcement of the Servicemembers Civil Relief Act to protect the rights of those individuals who sacrifice so much for their country,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement should send a clear message to all storage facility operators that federal law prohibits them from auctioning off a servicemember’s possessions without a court order.”
“It is wrong to auction off the possessions of a servicemember who is serving our country overseas,” said Acting U.S. Attorney Nathaniel R. Mendell for the District of Massachusetts. “The law protects servicemembers from this kind of mistreatment – they have more important things to worry about when they are overseas risking their lives to protect our nation. We will enforce the rights of our military members aggressively and hold accountable people who violate the SCRA.”
Trial Attorney Tanya Kirwan of the Housing and Civil Enforcement Section of the Civil Rights Division and Assistant U.S. Attorney Torey B. Cummings of the U.S. Attorney’s Office for the District of Massachusetts’ Civil Rights Unit and handled the matter. Valuable assistance was also provided by the U.S. Department of Transportation, Office of Inspector General, Office of Investigations.
This lawsuit resulted from a referral to the Justice Department from the U.S. Air Force. The department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section in partnership with the 93 U.S. Attorney’s Offices, including the U.S. Attorney’s Office for the District of Massachusetts. Since 2011, the department has obtained over $474 million in monetary relief for over 120,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA may have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at legalassistance.law.af.mil/.
Justice Department Issues Statement on the Department of Transportation’s Newark Airport Reassignment NoticeRead the Press Release
Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division issued the following statement after the Department of Transportation’s notice of proposed reassignment of schedules at Newark airport:
“The Department of Justice applauds the Department of Transportation’s efforts to preserve competition from low-cost airlines at Newark airport. Competition in the airline industry – and at Newark airport in particular – is in critically short supply. Low-cost carriers play an important role in keeping the airline industry competitive and the immense power of the major airlines in check. We look forward to working with the Department of Transportation to address similar concerns at capacity-constrained airports, and to bring consumers more choices and lower prices.”
Click to view the notice.
Justice Department Announces Additional Distribution of More than $568 Million to Victims of Madoff Ponzi SchemeRead the Press Release
The Department of Justice announced today that the Madoff Victim Fund (MVF) began its seventh distribution of approximately $568 million in funds forfeited to the U.S. government in connection with the Bernard L. Madoff Investment Securities LLC (BLMIS) fraud scheme, bringing the total distributed to over $3.7 billion to nearly 40,000 victims worldwide.
In this distribution, payments will be sent to nearly 31,000 victims across the globe, bringing their total recovery to 81.35%. This distribution represents the seventh in a series of payments that will eventually return over $4 billion to victims as compensation for losses they suffered from the collapse of the BLMIS. More than 2,600 victims will receive their first payment from MVF in this distribution.
“This distribution provides nearly 31,000 victims additional financial recovery from the egregious crimes committed by Bernard Madoff,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The Department’s continued efforts to ensure justice for victims of crime is demonstrated through the ongoing Madoff remission process and the billions given back to innocent victims worldwide.”
“This office continues to seek justice for victims of history’s largest Ponzi scheme,” said U.S. Attorney Audrey Strauss for the Southern District of New York. “The additional payment of more than $568 million by our Office and the U.S. Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section represents the seventh in a series of distributions that will leave victims with compensation for more than 81 percent of their losses. But our work is not yet finished, and the Office’s tireless commitment to compensating the victims who suffered as a result of Madoff’s heinous crimes continues.”
According to court documents and information presented in related proceedings, for decades, Bernard L. Madoff used his position as chairman of BLMIS, the investment advisory business he founded in 1960, to steal billions from his clients. On March 12, 2009, Madoff pleaded guilty to 11 federal felonies, admitting that he had turned his wealth management business into the world’s largest Ponzi scheme, benefitting himself, his family and select members of his inner circle.
On June 29, 2009, then-U.S. District Judge (now U.S. Circuit Judge), Denny Chin sentenced Madoff to serve 150 years in prison for running the largest fraudulent scheme in history. Of the approximately $4.05 billion that will be made available to victims, approximately $2.2 billion was collected as part of the historic civil forfeiture recovery from the estate of deceased Madoff investor Jeffry Picower. An additional $1.7 billion was collected as part of a deferred prosecution agreement with JPMorgan Chase Bank N.A. and civilly forfeited in a parallel action. The remaining funds were collected through a civil forfeiture action against investor Carl Shapiro and his family and from civil and criminal forfeiture actions against Bernard L. Madoff, Peter B. Madoff and their co-conspirators.
The MVF’s payouts would not have been possible without the extraordinary efforts of the Criminal Division’s Money Laundering and Asset Recovery Section, the U.S. Attorney’s Office for the Southern District of New York and the FBI in the prosecution of Madoff’s crimes and the recovery of assets supporting the forfeiture in this case.
The MVF is overseen by Richard Breeden, former Chairman of the U.S. Securities and Exchange Commission, in his capacity as Special Master appointed by the Department of Justice to assist in connection with the victim remission proceedings. The Department of Justice also acknowledges the sacrifice of numerous individuals due to the COVID-19 pandemic, who worked in challenging conditions to ensure that this distribution occurred and remained on schedule.
More information about MVF and its compensation to victims of BLMIS is available on the MVF website at www.madoffvictimfund.com, such as eligibility criteria, process updates, and frequently asked questions. Further questions may be directed to the MVF at 866-624-3670 or [email protected].
Judge sentences Doniphan, Missouri man to 45 months for felon in possession of a firearmRead the Press Release
CAPE GIRARDEAU – United States District Judge Matthew T. Schelp, sentenced Timothy Ossana to 45 months in prison today. The 53-year-old Doniphan, Missouri, resident pleaded guilty, in November 2020, for felon in possession of a firearm.
On January 8, 2020, Missouri State Highway Patrol stopped a Chevrolet Blazer for an expired license registration offense in Ripley County. During that traffic stop, a citizen brought a pistol to the officer and stated that he discovered the pistol lying near the roadway where Ossana had just driven. It was a Jennings, .380 caliber pistol, bearing serial number 889316. Ossana later admitted that he had been assaulted by some people and that he acquired the pistol for his protection.
This case was investigated by the Missouri State Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Keith Sorrell handled the prosecution for the government.
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Individuals Previously Convicted of Violent Crimes and Gun Offenses Among Seventeen Charged in Operation Rhode RunnerRead the Press Release
PROVIDENCE, R.I. – More than a dozen individuals previously convicted on violent crime charges, including firearm, robbery, assault, assault with intent to commit murder, and domestic violence charges, are among seventeen individuals charged in federal court as the result of a five-month FBI Safe Street Task Force, DEA, and Providence Police Narcotics Bureau Project Safe Neighborhoods investigation into a wide-ranging street-level drug trafficking conspiracy. At least nine of the individuals are currently on Rhode Island state probation.
On Thursday, 250 members of federal, state, and local law enforcement, including four SWAT teams, fanned out in Providence, Cranston, Pawtucket, Woonsocket, North Smithfield, Fall River, Taunton, and Kissimmee, FL, with sixteen federal arrest warrants for individuals named in an indictment unsealed in U.S. District Court today. A seventeenth individual was arrested and charged by way of a federal criminal complaint. Agents and officers also executed fourteen court-authorized search warrants.
To date, the investigation, dubbed Operation Rhode Runner, has resulted in the seizure of more than three kilos of cocaine, 750 grams of fentanyl, 1,500 fentanyl pills disguised as Percocet, 500 grams of crack cocaine, and $100,000 in cash.
“The U.S. Attorney’s Office is committed to using all of the tools available to reduce violent crime and make our streets safer. The illegal narcotics trade drives violence; thanks to this investigation a drug trafficking conspiracy has been dismantled, and defendants who have been previously convicted of numerous violent crimes are again in custody,” stated Acting U.S. Attorney Richard Myrus. “We truly appreciate the tireless work of the FBI task force, the DEA, the Providence Police, and all of our other law enforcement partners, which culminated in today’s flawlessly executed operation.”
"Today's takedown has removed a significant number of drug traffickers--the majority of whom are convicted felons with violent criminal histories--from our streets. There's no question our communities are much safer now. We believe this crew's constant churn of drug transactions has kept Rhode Island flush with dangerous and deadly narcotics that have endangered our neighborhoods for quite some time," said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. "Operation Rhode Runner is just another example of how the FBI and our law enforcement partners are working together to remove the most significant drivers of violent crime from our communities. We want drug traffickers and violent offenders to know that we fish with a spear and not a net, and we are focused on them."
“Illegal drug distribution ravages the very foundations of our families and communities here in Rhode Island,” said DEA Special Agent in Charge Brian D. Boyle. “Let these arrests serve as an example to those who distribute poisons like fentanyl and cocaine, that DEA will aggressively pursue and hold you accountable. This investigation demonstrates the strength and continued commitment of our law enforcement partners in Rhode Island.”
“This long term and large-scale interstate narcotics operation has resulted in the removal of high level, career criminals from the streets and should act as a deterrent to individuals who continue to participate in the distribution of lethal drugs such as fentanyl and cocaine, as in this case,” said Colonel Hugh T. Clements. Jr. “Distribution of illegal narcotics continues to plague urban communities and we will continue to be vigilant in the apprehension of criminals working within these groups, and ensure they are prosecuted to the highest extent of the law. “I commend the members of the Providence Police Narcotics Bureau and our law enforcement partners for their efforts and information sharing throughout this investigation, showing once again their commitment to ridding our streets of deadly narcotics, potentially saving the lives of many.”
This case is being prosecuted as part of the joint federal, state, and local 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 cases are being prosecuted by Assistant U.S. Attorney Stacey P. Veroni, with the assistance of Assistant U.S. Attorneys Christine D. Lowell and Sandra R. Hebert.
Acting United Sates Attorney Myrus thanks the FBI, DEA, and Providence Police Department for leading this investigation; the United States Postal Inspection Service for their invaluable assistance throughout the investigation; and the United States Marshals Service, Rhode Island State Police, Cranston, Central Falls, Fall River, North Smithfield, Pawtucket, Portsmouth, Warwick, West Warwick, and Woonsocket Police Departments for their assistance with today’s arrests and the execution of search warrants; and the Rhode Island Department of Corrections with prisoner transport.
OPERATION RHODE RUNNER DEFENDANTS
Victor Aponte Cirino, 22, Taunton, MA
Pending in RI state court: Possession w/intent to distribute ounce to a kilo of cocaine
Ramon Barriera, 50, Providence (career offender currently on state probation)
Previous convictions: 2004 - Drug trafficking (2), carrying a firearm during commission of a violent crime; 2014, 2015 – Drug trafficking
Miguel Colon, 35, Providence (currently on state probation)
Previous convictions: 2016 - Possession of a firearm, drug trafficking (4)
Rafael Cruz, 72, Providence (career offender)
Previous convictions: 1988, 2008, 2014 Drug trafficking; 2002 Felony assault
Juan Gonzalez, 44, Providence (currently on state probation)
Previous convictions: 2004, 2015, 2020 - Drug trafficking; 2020 - Felony assault (firearm), domestic assault by strangulation
Nelson Hazin, 53, Providence
Previous convictions: 1999 (2), 2007, 2015 - Drug trafficking; 2010 Possession of a firearm after conviction of a violent crime
Anthony Lacoste, 30, Woonsocket (currently on state probation)
Previous convictions: 2011 - Breaking and entering; 2013, 2014 - Felony assault, carrying a firearm w/out a license
Jonathan Masa Gonzalez, 21, Providence
No criminal record
Ricardo Martinez, Jr., 34, Providence (currently on state probation)
Previous convictions: 2006, 2009, 2013, 2020 - Various drug and drug trafficking charges
William Mendez, 46, Cranston (career offender currently on state probation)
Previous convictions: 1995, 2008, 2014 - Drug trafficking; 2002 - Assault with intent to murder, breaking and entering; 2008 Carrying a firearm during the commission of a violent crime
Maria Ortiz-Nieves, 40, Providence
No criminal record
Kevin Restrepo, 30, Providence and Kissimmee, FL (currently on state probation, bail violator)
Previous convictions: 2007 - Felony assault & conspiracy; 2009 Drug possession; 2013 (various dates) - assault, domestic violence, first-degree robbery, discharge of a firearm during the commission of a violent crime
Pending cases in RI state court: Assault w/dangerous weapon – firearm (2), carrying a pistol without a license (2); discharge of a firearm from a motor vehicle creating substantial risk of death (2); discharge of a weapon while committing a crime of violence (2); conspiracy to possess a pistol without a license (2); possession of a firearm after conviction of a felony (2); discharge of a firearm in a compact area.
Karla Rivera Rosa, 31, Fall River, MA
Pending drug trafficking case in Massachusetts (cocaine and oxycodone)
Felix Robles, 60, Providence (career offender)
Previous convictions: 2006, 2007, 2009 - Drug Trafficking
Juan C. Rodriguez, 35, Providence (currently on state probation)
Previous convictions: 2005 (2), 2007, 2014 - Various drug and drug trafficking charges
Charles Sims, 57, Providence
Previous convictions: 1984 - Robbery; 1985, 1992 (2), 2001 - Breaking and entering, assault; 1986 - escape, assault by an inmate; 1989 - escape; 1996 - Inciting a riot (ACI); 2006 - Drug trafficking
Juan Betancourt Sosa, 26, New Bedford (career offender currently on bail)
Previous conviction: 2021 – Carrying a pistol without a license; Pending cases in RI state court: Possession of a pistol without a license, possession w/intent to distribute one ounce to one kilo of cocaine
Illinois Man Convicted of Federal Criminal Charges for Operating Subscription-Based Computer Attack PlatformsRead the Press Release
LOS ANGELES – An Illinois man was found guilty today by a federal jury for running websites that allowed paying users to launch powerful distributed denial of service, or DDoS, attacks that flood targeted computers with information and prevent them from being able to access the internet.
Matthew Gatrel, 32, of St. Charles, Illinois, was found guilty of three felonies: one count of conspiracy to commit unauthorized impairment of a protected computer, one count of conspiracy to commit wire fraud, and one count of unauthorized impairment of a protected computer.
According to evidence presented at his nine-day trial, Gatrel owned and operated two DDoS facilitation websites: DownThem.org and AmpNode.com. DownThem sold subscriptions allowing customers to launch DDoS attacks while AmpNode provided “bulletproof” server hosting to customers with an emphasis on “spoofing” servers that could be pre-configured with DDoS attack scripts and lists of vulnerable “attack amplifiers” used to launch simultaneous cyberattacks on victims.
Records from the DownThem service revealed more than 2,000 registered users and more than 200,000 launched attacks, including attacks on homes, schools, universities, municipal and local government websites, and financial institutions worldwide. Often called a “booting” service, DownThem itself relied upon powerful servers associated with Gatrel’s AmpNode bulletproof hosting service. Many AmpNode customers were themselves operating for-profit DDoS services.
Gatrel offered expert advice to customers of both services, providing guidance on the best attack methods to “down” different types of computers, specific hosting providers, or to bypass DDoS protection services. Gatrel himself often used the DownThem service to demonstrate to prospective customers the power and effectiveness of products, by attacking the customers intended victim and providing proof, via screenshot, that he had severed the victim’s internet connection.
Gatrel’s DownThem customers could select from a variety of different paid “subscription plans.” The subscription plans varied in cost and offered escalating attack capability, allowing customers to select different attack durations and relative attack power, as well as the ability to launch several simultaneous, or “concurrent” attacks. Once a customer entered the information necessary to launch an attack on their victim, Gatrel’s system was set up to use one or more of his own dedicated AmpNode attack servers to unlawfully appropriate the resources of hundreds or thousands of other servers connected to the internet in what are called “reflected amplification attacks.”
United States District Judge John A. Kronstadt has scheduled a January 27, 2022 sentencing hearing, at which time Gatrel will face a statutory maximum sentence of 35 years in federal prison.
Co-defendant Juan Martinez, 28, of Pasadena, pleaded guilty on August 26 to one count of unauthorized impairment of a protected computer. Martinez was one of Gatrel’s customers and became a co-administrator of the site in 2018. Martinez will face a statutory maximum sentence of 10 years in federal prison at his sentencing hearing, which is scheduled for December 2.
The FBI’s Anchorage Field Office and its Los Angeles-based Cyber Initiative and Resource Fusion Unit investigated this matter. Akamai Technologies, Inc.; Cloudflare, Inc.; DigitalOcean, Inc.; Google, LLC; Palo Alto Networks - Unit 42; University of Cambridge Cyber Crime Centre; and Unit 221B, LLC provided assistance to this investigation.
Assistant United States Attorney Cameron L. Schroeder, Chief of the Cyber and Intellectual Property Crime Section, and Assistant United States Attorney Adam Alexander of the District of Alaska are prosecuting this case.
Illegal Possession of Narcotics Sends Alabama Man to Federal PrisonRead the Press Release
SHREVEPORT, La. - Acting United States Attorney Alexander C. Van Hook announced that an Alabama man has been sentenced for his role in drug trafficking in the Western District of Louisiana. Chief Judge S. Maurice Hicks, Jr. sentenced Mathew Mark Moreno, 51, of Montgomery, Alabama, to 84 months (7 years) in prison, followed by 4 years of supervised release, for conspiracy to possess with intent to distribute cocaine.
On two different occasions in 2019, Moreno was driving a rental vehicle in the Western District of Louisiana and was stopped both times by law enforcement officers for a traffic violation. On February 11, 2019, Moreno was stopped on I-10 near Lake Charles, and again on May 3, 2019, he was stopped on I-20 near Shreveport. On both occasions, he was the sole occupant of the vehicle. Law enforcement officers found illegal narcotics in Moreno’s vehicle each time he was stopped. The first stop netted 767 grams of powder cocaine which was located inside the rear passenger compartment of the vehicle. During the second stop in May 2019, officers found 111 grams of heroin, 402 grams of powder cocaine, and 541 grams of Alprazolam in the trunk of the vehicle. Moreno pleaded guilty to the charge on May 6, 2021.
The DEA and Louisiana State Police conducted these two investigations. Assistant U.S. Attorneys Seth D. Reeg and Cadesby B. Cooper prosecuted the case.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Illegal Alien Sentenced to Seven Years in Prison for Possession of a FirearmRead the Press Release
Jackson, Miss. – A Guatemalan national was sentenced to 84 months in prison for possession of a firearm by an illegal alien, announced Acting U.S. Attorney Darren J. LaMarca.
According to court documents, Jose Francisco Maldonado-Rosa, 27, was stopped on September 8, 2020, by agents with Homeland Security Investigations after they received information that he was an illegal alien in possession of a firearm. Maldonado-Rosa admitted to the presence of a firearm in his vehicle when stopped and that he was in the United States illegally.
Maldonado-Rosa pled guilty on February 26, 2021 to possession of a firearm by an illegal alien.
The case was investigated by Homeland Security Investigations.
Assistant U.S. Attorney Lynn Murray prosecuted the case.
Havasupai Among 12 Tribes Selected for Program Enhancing Tribal Access to National Crime Information DatabasesRead the Press Release
PHOENIX, Ariz. – The Department of Justice has selected an additional 12 federally recognized tribes to participate in the expansion of the Tribal Access Program for National Crime Information (TAP), a program that provides tribal governments with means to access, enter, and exchange data with national crime information systems, including those maintained by the FBI Criminal Justice Information Services (CJIS) Division and the states.
“Timely access to federal criminal information can help protect domestic violence victims, place foster children in safe conditions, solve crimes, and apprehend fugitives on tribal land, among other important uses,” said Deputy Attorney General Lisa O. Monaco. “Increasing tribal access to criminal databases is a priority of the Justice Department and this Administration, and essential to many tribal government efforts to strengthen public safety in their communities.”
The program provides training as well as software and biometric/biographic kiosk workstations to process fingerprints, take mugshots, and submit information to FBI Criminal Justice Information Services (CJIS) systems. With these additional tribes, there are now 108 federally recognized Tribes participating in TAP.
TAP has been an important resource for the department’s Missing and Murdered Indigenous Persons Initiative and the Presidential Task Force on Missing and Murdered American Indians and Alaska Natives known as Operation Lady Justice. The Department of Justice began TAP in 2015 in response to concerns raised by tribal leaders about the need to have direct access to federal systems.
Using TAP, tribes have shared information about missing persons; registered convicted sex offenders; entered domestic violence orders of protection for nationwide enforcement; run criminal histories; identified and arrested fugitives; entered bookings and convictions; and completed fingerprint-based record checks for non-criminal justice purposes such as screening employees or volunteers who work with children.
The following tribes have been newly selected for participation in TAP:
- Confederated Tribes of the Warm Springs Reservation
- Cow Creek Band of Umpqua
- Fort Belknap Indian Community
- Grand Traverse Band of Ottawa and Chippewa
- Havasupai Tribe
- Lower Brule Sioux Tribe
- Menominee Tribe
- Mille Lacs Band of Ojibwe
- Muckleshoot Tribe
- Passamaquoddy Tribe
- Shingle Springs Band of Miwok
- United Keetoowah Band of Cherokee
TAP is managed by the Justice Department’s Office of the Chief Information Officer and the Office of Tribal Justice. It is funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART), the Office of Community Oriented Policing Services (COPS), the Office for Victims of Crime (OVC), and the Office on Violence Against Women (OVW).
For more information on TAP, visit www.justice.gov/tribal/tribal-access-program-tap.
RELEASE NUMBER: 2021- 060_TAP
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Ham Lake Man Indicted for Armed CarjackingRead the Press Release
MINNEAPOLIS – A Ham Lake man has been indicted by a federal grand jury for an armed carjacking, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, on June 5, 2021, Jerome Lee Swanson, 20, armed with a Ruger, 9mm semi-automatic pistol, used force, violence, and intimidation to steal a gray 2005 Buick La Crosse from the vehicle’s owner.
Swanson is charged with one count of carjacking and one count of using, carrying, brandishing and discharging a firearm during and in relation to a crime of violence. Swanson, who is currently in state custody in Wright County, will make his initial appearance in U.S. District Court at a later date.
This case is the result of an investigation conducted by the FBI and the Minneapolis Police Department.
Assistant U.S. Attorney David P. Steinkamp 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.
Grosse Pointe Pharmacist Charged with Filling Fraudulent Prescriptions for Controlled SubstancesRead the Press Release
DETROIT - A grand jury indictment was unsealed today charging a pharmacist with unlawful distribution of prescription drug controlled substances, conspiracy, and unlawfully maintaining a drug-involved premises, Acting United States Attorney Saima Mohsin announced.
Mohsin was joined in the announcement by Special Agent in Charge Keith Martin, Drug Enforcement Administration, Detroit Division.
Charged was Hasna Bashir Iwas, age 60, of New Baltimore, Michigan. Iwas is the owner and operator of Beacon Pointe Pharmacy in Grosse Pointe Park, Michigan.
The Superseding Indictment adds the defendant to earlier indictments that charged Dr. Otis Crawford and three other defendants with operating a prescription drug ring in Detroit, Grosse Pointe Park, River Rouge and elsewhere. Dr. Crawford pled guilty to charges in the earlier indictment but died from natural causes before he could be sentenced.
This indictment alleges that pharmacist Iwas filled hundreds of fraudulent prescriptions issued from Dr. Crawford’s clinic such as oxycodone, hydrocodone, Xanax and promethazine with codeine syrup. Dr. Crawford’s prescriptions alone had an estimated street value of over $2 million. In addition, it is alleged she filled over 600 forged prescriptions under the names of various doctors for a forgery ring operating in Detroit, charging cash to fill the fake prescriptions even when the “patient” had insurance. Pharmacist Iwas insisted that she always required the patient to be present to fill their controlled substance prescription and denied filling multiple prescriptions for a “runner” presenting a group of forged prescriptions. But one of the forged prescriptions charged in the superseding indictment was filled the day after the “patient” was murdered.
“We will continue to hold accountable healthcare professionals who seek to enrich themselves by illegally distributing controlled substances,” stated Acting US Attorney Mohsin. “Our commitment to combatting the opioid crisis is unwavering.”
“Dispensing controlled substances is a privilege that requires abiding by the law,” said Special Agent in Charge Martin. “DEA is committed to ensuring that those who have pledged to follow our nation’s drug laws are living up to that responsibility.”
The defendant is scheduled for her initial appearance in federal court on these charges on October 1, 2021.
The case was investigated by the Drug Enforcement Administration and is being prosecuted by Assistant United States Attorney Wayne F. Pratt.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Grayson County Man Indicted for Child Pornography ViolationsRead the Press Release
SHERMAN, Texas – A Sherman man has been indicted on federal child pornography violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Jeffrey L. Walters, 52, was named in an indictment returned by a federal grand jury in Sherman charging him with receipt of child pornography. Walters pleaded not guilty to the charges at an initial appearance in federal court on Sep. 15, 2021, before U.S. Magistrate Judge Christine A. Nowak.
According to court documents, Walters came to the attention of law enforcement as someone who communicated with others about his interest in child pornography. Through a joint investigation by Homeland Security Investigations-Dallas and the Grayson County Sheriff’s Office, law enforcement obtained a laptop and cellular phone owned and used by Walters. Forensic analysis of the laptop revealed that Walters had received child pornography, using the Internet, on multiple dates. The child pornography depicted prepubescent children engaged in sexually explicit conduct, including depictions of sadistic and masochistic abuse.
This case is 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 U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
If convicted, Walters faces up to 20 years in federal prison.
This case is being investigated by Homeland Security Investigations and the Grayson County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Marisa Miller.
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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Grant County woman sentenced for drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Melissa Dawn Bailey, of Cabins, West Virginia, was sentenced today to 41 months of incarceration for a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Bailey, 42, pleaded guilty in April 2021 to one count of “Distribution of Methamphetamine,” Bailey admitted to selling methamphetamine, also known as “crystal meth,” in June 2020 in Grant County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, and the Moorefield Police Department investigated. The task force consists of the FBI, the West Virginia State Police, the Grant County Sheriff’s Office, the Mineral County Sheriff’s Office, the Hampshire County Sheriff’s Office, and the Keyser Police Department.
U.S. District Judge Thomas S. Kleeh presided.
Grand Jury Indicts D.C. Attorney with Making False Statements to the FBI in 2016 Regarding Alleged Communications Between Trump Organization and Russian BankRead the Press Release
Special Counsel John Durham today announced that a federal grand jury returned an indictment in the U.S. District Court for the District of Columbia charging Michael A. Sussmann, 57, a Washington, D.C.-based attorney, with making a false statement to the FBI on Sept. 19, 2016. The charge in the indictment stems from a set of allegations brought by Sussmann to the FBI related to an alleged secret channel of communications between the Trump Organization and a Russian bank.
Sussmann is expected to make his initial appearance in the D.C. federal court as soon as tomorrow. The court will schedule the appearance.
As alleged in the indictment, on Sept. 19, 2016, Sussman, a lawyer at a large international law firm, met with the FBI General Counsel at FBI Headquarters in Washington, D.C. Sussmann had requested the meeting to provide the General Counsel with certain data files and “white papers” that allegedly demonstrated a covert communications channel between the Trump Organization and a Russia-based bank. Sussmann, who had previously represented the Democratic National Committee in connection with a cyber hack, falsely stated to the General Counsel that he was not bringing these allegations to the FBI on behalf of any client. This false representation led the General Counsel to understand that Sussmann was providing information as a good citizen rather than a paid advocate or political operative. In fact, Sussmann assembled and conveyed the allegations to the FBI on behalf of at least two clients, including a U.S. technology executive and the Clinton Presidential Campaign.
It is alleged that beginning in July 2016, Sussmann worked with the aforementioned U.S. technology executive, other cyber researchers, and a U.S.-based investigative firm to assemble the data and white papers that Sussmann ultimately provided to the FBI and the media. The technology executive, for his part, exploited his access to non-public data at multiple internet companies and enlisted the assistance of researchers at a U.S.-based university who were receiving and analyzing internet data in connection with a pending federal government cybersecurity research contract designed to identify the perpetrators of malicious cyber-attacks and protect U.S. national security. The indictment further alleges that researchers were tasked to mine this internet data to establish “an inference” and “narrative” that would tie then-presidential candidate Donald Trump to Russia, and which the executive believed would please certain “VIPs.” The indictment also alleges that Sussmann, his law firm, and the technology executive coordinated with representatives and agents of the Clinton Campaign in these efforts.
It is further alleged that Sussmann’s false statement misled FBI personnel and deprived the FBI of information that might have permitted it more fully to assess and uncover the origins of the relevant data and analysis, including the identities and motivations of Sussmann’s clients.
The FBI ultimately determined that there was insufficient evidence to support the allegations of a secret communications channel between the Trump Organization and the Russia-based bank.
This case is being prosecuted by Assistant Special Counsel Andrew DeFilippis and Assistant Special Counsel Michael T. Keilty, with the support and assistance of other members of Special Counsel Durham’s team. The Special Counsel’s investigation is ongoing.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Georgia Genetic Testing Laboratory to Pay up to $200,000 to Resolve Anti-Kickback Statute ClaimsRead the Press Release
Columbia, South Carolina---- Acting United States Attorney M. Rhett DeHart announced today that his office has resolved claims that Alpha Genomix Laboratories, Inc. paid unlawful kickbacks to Aiken Counseling Group, LLC to induce genetic testing referrals, from April 2015 through December 2016.
The United States alleges that during this time period, Alpha Genomix disguised its kickbacks by paying the salary of an individual who primarily worked for Aiken Counseling Group. Further, the United States alleged most of the referrals were not legitimately ordered by a physician and were medically unnecessary. Medicare and South Carolina Medicaid paid for these fraudulent claims, which violated the Anti-Kickback Statute and the False Claims Act. Alpha Genomix Laboratories, Inc. will pay a $35,000 settlement upfront and a percentage of gross annual revenues up to a total of $200,000 to resolve the claims.
The allegations settled arose from a lawsuit filed by a psychiatrist formerly employed by Aiken Counseling Group, under the whistleblower provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share between 15 and 30% of the recovery.
The owner of the Aiken Counseling Group, Lain Bradford, was sentenced in February 2020 to three years of probation and ordered to pay restitution, after pleading guilty to health care fraud and drug offenses in a related case. Aiken Counseling Group filed for Chapter 7 Bankruptcy in January 2018 and is no longer in business.
Since the allegations, Alpha Genomix Laboratories was sold to new ownership.
The Alpha Genomix Laboratories, Inc. matter was investigated by the Office of the Inspector General of the Department of Health and Human Services, the South Carolina Attorney General’s Medicaid Fraud Control Unit, and Assistant United States Attorney Beth Warren.
“Providers participating in Medicare and Medicaid are expected to uphold the integrity of the programs,” stated Derrick L. Jackson, Special Agent in Charge with the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Companies that seek unmerited payment for unnecessary and illegitimate services abuse the programs and divert funds meant to improve the health and prolong the lives of beneficiaries. HHS-OIG and our partners will actively pursue those who commit health care fraud.”
The litigation and settlement of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The claims resolved by this settlement are allegations only. Alpha Genomix Laboratories, Inc. does not admit wrongdoing or liability.
The case is captioned United States ex rel. Jane Doe, M.D. v. Aiken Counseling Group, LLC and Alpha Genomix Laboratories, Inc.
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Fresno Men Indicted for Being Previously Convicted of Violent Crimes in Possession of Firearm and AmmunitionRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today against two Fresno residents, Edward Page, 32, and Trayvon Smith, 31, charging each with one count of being a felon in possession of a firearm and ammunition, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, in the late-night hours of June 24, 2021, police officers received a tip that two individuals in a parked car were in possession of a firearm. The officers responded to the parking lot and found Smith and Page in the car. Page was quickly detained, but Smith fled, was chased, and eventually was caught and arrested. Inside the car, officers found two loaded semi-automatic firearms, one of the firearms was a privately manufactured weapon, sometimes referred to as a “ghost gun,” with no serial number, but with an extended magazine attached to the firearm. Both Smith and Page have prior violent felony convictions and cannot lawfully possess firearms or ammunition.
This case is the product of an investigation by the Fresno Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
If convicted, Page and Smith face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Fraudster Sentenced to Prison for Long Running Phone Unlocking Scheme that Defrauded AT&TRead the Press Release
Muhammad Fahd, a citizen of Pakistan and Grenada, was sentenced today to 12 years in prison for his leadership role in a seven-year scheme to unlawfully unlock nearly 2 million phones to defraud AT&T Inc. (AT&T), inflicting more than $200 million in losses. At the sentencing hearing U.S. District Judge Robert S. Lasnik for the Western District of Washington noted that Fahd had committed a “terrible cybercrime over an extended period,” even after he was aware that law enforcement was investigating.
Beginning in 2012, Fahd, 35, conspired with others to recruit AT&T employees at a call center located in Bothell, Washington, to unlock large numbers of cellular phones for profit. Fahd recruited and bribed AT&T employees to use their AT&T credentials to unlock phones for ineligible customers. Later in the conspiracy, Fahd had the bribed employees install custom malware and hacking tools that allowed him to unlock phones remotely from Pakistan. In September 2020, he pleaded guilty to conspiracy to commit wire fraud.
Cellular phones such as iPhones cost hundreds of dollars. To make the phones more affordable, during the relevant time, AT&T subsidized the purchase cost of phones or sold phones to customers under installment plans. Unlocking a phone effectively removes it from AT&T’s network, thereby allowing the account holder to avoid having to pay AT&T for service or to make any payments for purchase of the phone.
According to records filed in the case, in approximately June or July of 2012, using the alias “Frank Zhang,” Fahd contacted an AT&T employee through Facebook. Fahd offered the employee significant sums of money if the employee would help Fahd secretly unlock phones at AT&T. Fahd also asked the employee to recruit other AT&T employees to help with the unauthorized unlocks.
Fahd instructed the recruited employees to set up fake businesses and bank accounts for those businesses, to receive payments and to create fictitious invoices for every deposit made into the fake businesses’ bank accounts to create the appearance that the money was payment for genuine services.
In the spring of 2013, AT&T implemented a new unlocking system that made it more difficult for the bribed employees to unlock IMEIs for Fahd. In response, Fahd hired a software developer to design malware that could be installed without authorization on AT&T’s computer system to unlock phones more efficiently and in larger numbers. At Fahd’s request, the employees provided confidential information to Fahd about AT&T’s computer system and unlocking procedures to assist in this process. Fahd also had the employees install malware on AT&T’s computers that captured information about AT&T’s computer system and the network access credentials of other AT&T employees. Fahd provided the information to his malware developer, so the developer could tailor the malware to work on AT&T’s computers.
AT&T’s forensic analysis shows the total number of cellular telephones fraudulently unlocked by members of the scheme was 1,900,033 phones. AT&T has further determined that the loss it suffered because customers, whose cellular phones were illegally unlocked, failed to complete payments for their cellular telephones was $201,497,430.94.
Judge Lasnik ordered restitution of $200,620,698. (The difference between this amount and the total loss reflects restitution ordered against bribed AT&T employees in related prosecutions.)
Fahd was indicted in 2017 and arrested in Hong Kong in 2018. He was extradited and appeared in U.S. District Court in Seattle in August 2019. He pleaded guilty to conspiracy to commit wire fraud in September 2020.
This case is the result of an investigation conducted by the Seattle field office of the U.S. Secret Service, IRS-CI and the U.S. Department of Justice. The Justice Department’s Office of International Affairs provided significant assistance.
This case was prosecuted by Assistant U.S. Attorneys Andrew Friedman and Francis Franze-Nakamura of the Western District of Washington and Senior Counsel Anthony Teelucksingh of the Criminal Division’s Computer Crime and Intellectual Property Section.
Four-Time Convicted Felon Sentenced to 30 Months for Illegally Possessing Firearm AmmunitionRead the Press Release
Benton, Ill. – A Troy, Illinois man will spend more than two years in prison for illegally
possessing firearm ammunition. Troy A. Schrage, 37, was sentenced today to 30 months in federal
prison for being a Felon in Possession of Ammunition.
The offense occurred in April of 2020, when the United States Marshals Service located Schrage in
Belleville, Illinois, and arrested him for multiple active warrants. The ammunition was
found in Schrage’s possession during the arrest. Federal law prohibits convicted felons
from possessing firearms and firearm ammunition. A federal grand jury indicted Schrage in June of
2020, and a Benton, Illinois, jury convicted Schrage of the offense after a two-day trial in June
2021.As part of his sentence, Schrage was ordered to serve a three-year term of supervised release after
release from prison.The investigation was conducted by the United States Marshals Service Great Lakes Regional Fugitive
Task Force; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and the Cahokia Police
Department.
The case was prosecuted by Assistant United States Attorneys John Trippi and Daniel Kapsak.Four Defendants Sentenced to Prison for Red Lake Home Invasion RobberyRead the Press Release
ST. PAUL, Minn. – Four defendants have been sentenced to prison for their roles in a robbery occurring at a residence on the Red Lake Indian Reservation.
According to court documents, on October 1, 2019, Alexander Keith Blue, 30, Dustin Lee Jourdain, 32, Shaleigha Kate Strong, 22, and Delores Silverrain Robinson, 29, traveled in Robinson’s vehicle to a residence on the Red Lake Indian Reservation. Robinson remained in the vehicle while Blue, Jourdain, and Strong forced open the front door using a hammer or pry tool. Once inside, the three defendants stole various items, including a .22 rifle, a 12-gauge shotgun, ammunition, an Xbox gaming system, and a container of change. The defendants fled the scene with the stolen items in Robinson’s vehicle. A minor was present in the house at the time of the robbery. Jourdain later sold the stolen firearms, one of which was recovered by law enforcement during an unrelated narcotics operation in Bemidji, Minnesota.
Blue, Jourdain, and Strong, who each pleaded guilty to one count of aiding and abetting robbery, were sentenced to 66 months, 27 months, and 24 months in prison, respectively. Robinson, who pleaded guilty to one count of aiding and abetting first-degree burglary, was sentenced to six months in prison. As part of their sentence, all four defendants received three years of supervised release and were ordered to pay $1,150 in restitution to the victims.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Eric C. Tostrud sentenced the defendants.
This case was the result of an investigation conducted by the Red Lake Tribal Police Department and the FBI Headwaters Safe Trails Task Force.
This case was prosecuted by Assistant U.S. Attorney Alexander D. Chiquoine.
Former Wilmington Fire Department Union President Sentenced to 60 Months in Prison for Possessing Child PornographyRead the Press Release
WILMINGTON, Del. — David C. Weiss, U.S. Attorney, announced today that Joseph J. Leonetti, Jr., Former Union President of the Wilmington Fire Department, was sentenced yesterday to 60 months in prison followed by 5 years of supervised release. Leonetti pled guilty to one count of possessing child pornography on April 21, 2021. Chief Judge Colm F. Connolly pronounced the sentence.
According to publicly filed documents and statements made in open court, law enforcement officers executed a federal search warrant at Leonetti’s Wilmington residence on June 19, 2020 and seized his personal cellphone. Following a forensic review of that cellphone, investigators found videos and cached images of child pornography. A cache is a reserved storage location that collects temporary data for easy retrieval. Investigators also found that Leonetti had deleted evidence from his phone when he saw law enforcement arrive at his house; namely, Leonetti deleted the Kik application--a messenger and group chat application that Leonetti had used to chat in a group dedicated to pedophilia and onto which Leonetti had uploaded a video of child pornography. Last, in the cellphone’s “Notes” application, investigators found links to folders associated with cloud-based file storage services Dropbox and Mega. The contents of some of these links contained additional child pornography. The child pornography found on the defendant’s cellphone and in the linked folders included depictions of prepubescent minors engaged in various sexual acts and the lascivious exhibition of their genitals.
U.S. Attorney Weiss stated, “The U.S. Attorney’s Office for the District of Delaware is committed to protecting the most vulnerable among us—our children—from the abhorrent shadow industry that produces, distributes, and collects child pornography and from those who lurk in its base marketplace. This Office fulfills its commitment without regard to the occupation or privilege of the wrongdoer. No one is above the law.”
“Mr. Leonetti, while in a position of trust as a Firefighter and Union President for the Wilmington Fire Department, possessed sexually explicit photographs and videos of prepubescent children,” said Brian A. Michael, Special Agent in Charge for Homeland Security Investigations, Philadelphia. “Although we are pleased with the sentence handed down today, the lives of these children have been tragically impacted by the defendants’ actions. No sentence will reverse the physical and mental abuse that they have endured. Homeland Security Investigations will continue to aggressively investigate and prosecute any person whose actions fuel a demand for this sexual abuse and exploitation.”
Homeland Security Investigations investigated this case. Assistant U.S. Attorney Graham L. Robinson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices across the country and the Child Exploitation and Obscenity Section of the Department of Justice, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Union County Postal Employee Admits Conspiring to Commit Bank Fraud and Fraudulently Attempting to Obtain SBA LoansRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, woman today admitted stealing checkbooks and credit cards from the mail while employed as a U.S. Postal Service (USPS) clerk and filing fraudulent applications for loans intended for small businesses experiencing disruptions due to the COVID-19 pandemic, Acting U.S. Attorney Rachael A. Honig announced.
Janel Blackman, 42, of Newark, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging her with one count of conspiracy to commit bank fraud and one count of making false statements to the U.S. Small Business Administration (SBA).
According to documents filed in this case and statements made in court:
From February 2019 to May 2020, Blackman conspired to obtain money from victim financial institutions fraudulently, by, among other things, stealing credit cards and blank checkbooks from a post office in Summit, New Jersey, where she was employed as a clerk, and providing them to conspirators in exchange for cash. Blackman’s conspirators then fraudulently forged the signatures of the accountholders and negotiated the checks by making them payable to individuals, some of whom were New Jersey high school students, and who had given the conspirators access to their accounts, also in exchange for cash. Blackman’s conspirators deposited the fraudulent checks online and at various bank ATMs throughout New Jersey and later withdrew funds from the bank accounts before the victim financial institutions identified the checks as fraudulent and could block further withdrawals. Blackman and her conspirators obtained and attempted to obtain approximately $366,000 from victim financial institutions.
From July 2020 to February 2021, Blackman also filed fraudulent applications for Economic Injury Disaster Loans (EIDL), which are intended for small businesses experiencing substantial financial disruption due to the COVID-19 pandemic. The applications were for businesses that did not exist and were intended to induce the SBA to provide funding to Blackman under false pretenses. For example, on Oct. 25, 2020, Blackman filed an EIDL application in the name of Hard Times Café, stating that it was a liquor store in Newark with 10 employees. In fact, no such business existed. Blackman further falsely stated that she, as the listed owner of Hard Times Cafe, was not then presently subject to formal criminal charges in any jurisdiction, even though as of Sept. 17, 2020, she had been arrested and charged by criminal complaint in the District of New Jersey with the bank fraud conspiracy described above. The SBA did not approve the application.
Three of Blackman’s conspirators, Tashon Ragan, 22, of Hillside, New Jersey, Jahaad Flip, 22, of Newark, New Jersey, and Jeffrey Bennett, 27, of Irvington, New Jersey, previously pleaded guilty before Judge Wigenton to conspiracy to commit bank fraud and are awaiting sentencing.
The conspiracy charge and the false statement charge are each punishable by a maximum potential penalty of 30 years in prison and a fine of up to $1 million. Sentencing is scheduled for Jan. 27, 2022.
Acting U.S. Attorney Honig credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero in Newark; special agents with the U.S. Postal Service – Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi; special agents with IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; and special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s guilty plea. She also thanked the Summit Police Department, the New Providence Police Department, the Piscataway Police Department, the Newark Police Department, the South Orange Police Department, and the Little Falls Police Department for their assistance.
The government is represented by Assistant U.S. Attorneys Jonathan Fayer and Elaine K. Lou in Newark.
Former Roanoke-Area EMS Worker Sentenced for Tampering with Fentanyl and HydromorphoneRead the Press Release
ROANOKE, Va. – A former emergency medical services worker for Roanoke County Emergency Medical Services, was sentenced yesterday to 36 months in federal prison for tampering with vials of fentanyl and hydromorphone.
According to court documents, Jeffery Leedy, 32, tampered with at least 50 vials of fentanyl and hydromorphone while working at Centra Lynchburg General Hospital and as an Emergency Medical Services (EMS) worker for Roanoke County Emergency Medical Services.
Leedy pleaded guilty in March 2021 to one count of tampering with a consumer product (fentanyl and hydromorphone) that affects interstate commerce with reckless disregard for the risk that another person will be placed in danger of death or bodily injury.
On May 16, 2019, a Roanoke City EMS ambulance crew member discovered a suspected tampered vial of fentanyl while on an EMS call. When he attempted to administer the vial to a patient, he noticed the vial’s cap was not secured and believed the vial had been tampered with. Further investigation revealed that Leedy had tampered with the vial by removing the fentanyl and replacing it with saline.
A supervisor with the Roanoke County EMS queried the access card database and determined that Leedy had been accessing the rescue squad building at night, while he was not working, to take fentanyl. Further investigation revealed at least 50 vials of fentanyl and hydromorphone had been tampered with.
Acting United States Attorney Daniel P. Bubar made the announcement today.
The investigation of the case was conducted by the Food and Drug Administration – Office of Criminal Investigations and Virginia State Police.
Assistant United States Attorney Randy Ramseyer is prosecuted the case for the United States.
Former Nantucket Bank Employee Charged in Two Fraud SchemesRead the Press Release
BOSTON – A former Nantucket Bank employee was charged today and has agreed to plead guilty to her role in two fraud conspiracies.
Rushell Harris, 32, of Nantucket, agreed to plead guilty to two counts of conspiracy to commit wire fraud. A plea hearing has not yet been scheduled by the court.
According to charging documents, between approximately June 2014 and November 2018, Harris engaged in two separate wire fraud conspiracies. In the first conspiracy, Harris allegedly exploited her position at Nantucket Bank by obtaining personal identifiable information of a customer and surreptitiously taking photographs of the victim’s account information. It is alleged that Harris then shared that information with co-conspirators who attempted to transfer funds out of the customer’s bank account without authorization.
In the second conspiracy, Harris allegedly helped perpetuate a fraudulent lottery scheme targeting at least 13 victims. According to the charging documents, victims were contacted by co-conspirators via phone and were informed they won large prizes, and that in order to receive the funds they needed to pre-pay taxes on their winnings. In reality, no such prizes existed. After victims made an initial payment, they were advised that additional advance payments were required for expenses such as insurance, transportation or other international customs’ fees. It is alleged that Harris and her co-conspirators transferred proceeds of the scheme to associates in Jamaica and in the United States.
The charge of conspiracy to commit wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell 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 Nantucket Police Department and the Federal Deposit Insurance Corporation. Assistant U.S. Attorney Mackenzie A. Queenin of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the court documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Accounting Coordinator for Non-Profit Organization Sentenced to Prison for Embezzling More than $321KRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, PA, has been sentenced in federal court to 17 months of prison followed by two years of supervised release on her conviction of bank fraud, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge David S. Cercone imposed the sentence on Danielle Strother-Rush, 34, of Columbia Avenue, Pittsburgh, PA 15218.
According to information presented to the court, Strother-Rush was an Accounting Coordinator for the Eastern Minority Supplier Development Council, which is a nonprofit organization that was created to increase business opportunities for minority-owned businesses. From approximately August 2014 until August 2016, Strother-Rush embezzled $321,255.88 in various ways and spent on funds on, among other things, gambling and frivolous purchases. The primary way in which she embezzled funds was by writing checks to herself from the operating accounts and forging her supervisor’s signature on the checks. She also made unauthorized ATM withdrawals, including several at the Rivers Casino. Lastly, she accessed the payroll bank account online and made unauthorized electronic checks payable to herself.
Assistant United States Attorney Lee J. Karl prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Federal Bureau of Investigation and Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Strother-Rush.
Florida Man and Company Plead Guilty to Fraud Conspiracy Involving Dietary SupplementsRead the Press Release
A Florida man pleaded guilty today to his role in a fraud scheme involving the distribution of illegal products falsely labeled as dietary supplements.
According to court documents, Anthony ”Joey” Ventrella, 43, of Boynton Beach, joined several alleged co-conspirators in committing mail and wire fraud, as well as defrauding the U.S. Food and Drug Administration (FDA) by using dishonest methods to prevent the agency from regulating products labeled as dietary supplements. Ventech, a company controlled by Ventrella, also pleaded guilty to the same conspiracy. Ventrella admitted that through a series of companies, including Ventech, he helped co-conspirators manufacture and distribute products to consumers that were labeled as legal dietary supplements. According to court filings, the products actually contained ingredients that made the products unapproved drugs and illegal to distribute. Ventrella admitted to importing raw ingredients from China using fraudulent paperwork that concealed the true contents of the shipments in an effort to hide his and his co-defendants’ activities from the FDA. As part of the plea agreement, Ventech agreed to forfeit the manufacturing equipment used during the alleged scheme.
“Dietary supplements that contain unapproved drugs can be dangerous for consumers,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The department will aggressively pursue and prosecute those who fraudulently conceal for profit the true nature of the products they distribute.”
“Products mislabeled as dietary supplements can pose a serious risk to the health of U.S. consumers,” said Special Agent in Charge Justin C. Fielder of the FDA Office of Criminal Investigations (OCI) Miami Field Office. “We will continue to investigate and bring to justice those who jeopardize the public health by selling violative products.”
Ventrella pleaded guilty to conspiracy to commit mail and wire fraud and to defraud the United States in Ft. Lauderdale before U.S. District Judge William P. Dimitrouleas of the Southern District of Florida. He is scheduled to be sentenced on Nov. 29 and faces a maximum penalty of five years in prison.
The FDA OCI investigated the case.
Ventrella, Ventech and six other defendants previously were charged by indictment with conspiracy to obstruct the FDA and to commit mail and wire fraud, distribution of unapproved new drugs and conspiracy to distribute controlled substances. Two other defendants previously pleaded guilty, and the remaining four defendants are set for trial on Oct. 12.
Trial Attorneys Alistair Reader and Steven Gripkey, Senior Litigation Counsel David Frank and Assistant Director John W. Burke of the Justice Department’s Consumer Protection Branch are prosecuting the case with assistance from the U.S. Attorney’s Office for the Southern District of Florida.
The indictment charging the remaining defendants is merely an allegation, and those defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Final Defendant Pleads Guilty to Federal Charges Related to May 2020 Civil Unrest in Salt Lake CityRead the Press Release
SALT LAKE CITY – Christopher Isidro Rojas, 29, of Salt Lake City, pleaded guilty to one felony count of civil disorder, charged in a felony information, for his role in the burning of a Salt Lake City Police Department patrol car during the civil unrest which occurred in Salt Lake City on May 30, 2020.
In the plea agreement, Rojas admitted that, on May 30, 2020, he was protesting the killing of George Floyd when protesters turned violent and overturned a Salt Lake City Police Department patrol car. Rojas admitted that he participated in the burning of the overturned patrol car with the intent and purpose of interfering with law enforcement officers and that he used a cigarette lighter to ignite a piece of cloth that a co-defendant threw into the interior of the overturned patrol car.
During a previous hearing, prosecutors alleged that Rojas helped others rip a bumper from the overturned police car and then used a cigarette lighter to ignite a large piece of white cloth that was thrown into the police car by a co-defendant. Later that same afternoon, prosecutors alleged that Rojas was captured on video appearing to celebrate and bragging to others that he “put the cop car on fire.”
Rojas remains on home confinement until the date of his sentencing which is currently set for November 24, 2021. Rojas faces a maximum term of imprisonment of five years in prison, a payment of $2,500.000 in agreed upon restitution, and a term of supervised release of three years.
Co-defendant Lateesha Richards has previously been sentenced to 20 months in federal prison along with co-defendant Jackson Patton, who has been sentenced to 24 months federal prison, for their respective roles in the burning of the patrol car. Co-defendants Latroi Devon Newbins and Larry Raynold Williams Jr. have entered pleas of guilty and now await sentencing.
Assistant U.S. Attorneys from the Utah U.S. Attorney’s Office prosecuted the case. Special Agents from the ATF and the FBI, and detectives from the Salt Lake City Police Department, conducted the investigation.
Federal Court Permanently Enjoins Tax Return Preparers in LouisianaRead the Press Release
A federal court in the U.S. District Court for the Eastern District of Louisiana has permanently enjoined two New Orleans-area tax return preparers from preparing returns for others and from owning, operating or franchising any tax return preparation business in the future.
The court entered judgment against Mario Alexander by default; defendant Leroi Jackson consented to entry of the injunction against him. The terms of the orders require that Alexander and Jackson, both individually and doing business as The Taxman Financial Services, send notices of the injunction to each person for whom they prepared federal tax returns and post the injunctions in places where they conduct business, including social media accounts and websites. The orders also provide that the United States may conduct post-judgment discovery to monitor compliance.
The civil complaint filed against Alexander and Jackson alleged that they prepared tax returns claiming fabricated business income and expenses, as well as claiming various false tax deductions and credits, including charitable contributions and education credits. It also alleged that defendants fabricated business income and/or expenses in order to increase claims for earned income tax credits. According to the complaint, Alexander and Jackson significantly underreported their customers’ tax liabilities, obtained fraudulent tax refunds and charged exorbitant fees for their services, often without their customers’ knowledge.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a list of important reminders for taxpayers who are about to file their 2020 tax returns, including how to prepare for a smooth filing process.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Federal Contractor Convicted for Stealing over $1.2 Million from the U.S. Postal ServiceRead the Press Release
Michael Rymar, a Rochester Hills based contractor, pleaded guilty today to embezzling over $1 million in government funds from the United States Postal Service announced Acting United States Attorney Saima S. Mohsin.
Mohsin was joined in the announcement by Kenneth Cleevely, Special Agent in Charge of the Contract Fraud Investigations Division, United States Postal Service, Office of Inspector General.
Michael Rymar, 59, of Rochester Hills, stands convicted of embezzling government funds from the United States Postal Service (USPS). From 2015 to 2018, USPS engineers awarded Rymar’s company, Horizons Materials & Management LLC, with over $5 million in contracts for repairs on USPS buildings in Michigan and New York. But the documentation Rymar provided contained false and fraudulent statements, oftentimes dramatically and falsely overstating the amount he paid subcontractors to complete the repairs. Rymar also falsely inflated the amount he paid his own employees and the cost of materials on USPS jobs. Over the course of the three-plus year fraudulent scheme, Rymar stole over $1.2 million from USPS out of the $5 million in contracts he was awarded.
Acting United States Attorney Mohsin stated, “Today’s guilty plea shows our office’s commitment to protecting the public’s funds and to prosecute individuals who steal from government agencies.”
“The Postal Service spends hundreds of millions of dollars on new construction, maintenance, and renovations of facilities each year. Along with the Department of Justice, the USPS Office of Inspector General will aggressively investigate those who would engage in this type of fraud.” said Special Agent in Charge Kenneth Cleevely of the United States Postal Service, Office of Inspector General.
Upon conviction for a violation of Title 18, United States Code, Section 641, theft of government funds, Rymar faces a maximum sentence of ten years in prison and a fine of up to $250,000. The government is also seeking restitution of the stolen funds. The government has also sought forfeiture of a number of financial accounts held by Rymar, including two accounts that are valued over $1.2 million.
The investigation of this case was conducted by the of the United States Postal Service, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Steven Cares.
Father & Son Moving Company Agrees to Resolve Allegations of Servicemembers Civil Relief Act ViolationsRead the Press Release
BOSTON – The U.S. Attorney’s Office for the District of Massachusetts announced an agreement today with PRTaylor Enterprises LLC, a company doing business as Father & Son Moving & Storage (Father & Son), to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by failing to obtain a court order before auctioning off the contents of a U.S. Air Force Technical Sergeant’s storage units while he was deployed overseas.
According to the complaint, the Technical Sergeant’s possessions sold by Father & Son included military gear and mementos that had belonged to a cousin killed in military action in Afghanistan, his grandfather’s military service medals and all of his household furnishings and personal photographs.
The SCRA provides financial and housing protections and benefits to military members while they are in military service. One of the SCRA’s protections requires anyone holding a lien on the property of a servicemember to obtain a court order prior to auctioning off, selling or otherwise disposing of that property. Under the agreement, which must still be approved by the U.S. District Court for the District of Massachusetts, Father & Son will pay the Technical Sergeant $60,000 in damages and the United States a $5,000 civil penalty. Father & Son must also implement certain new policies to prevent future SCRA violations.
“It is wrong to auction off the possessions of a servicemember who is serving our country overseas,” said Acting United States Attorney Nathaniel R. Mendell. “The law protects servicemembers from this kind of mistreatment – they have more important things to worry about when they are overseas risking their lives to protect our nation. We will enforce the rights of our military members aggressively and hold accountable people who violate the SCRA.”
“The Department of Justice is committed to vigorous enforcement of the Servicemembers Civil Relief Act to protect the rights of those individuals who sacrifice so much for their country,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement should send a clear message to all storage facility operators that federal law prohibits them from auctioning off a servicemember’s possessions without a court order.”
Acting U.S. Attorney Mendell and AAG Clarke made the announcement today. Valuable assistance was also provided by the U.S. Department of Transportation, Office of Inspector General, Office of Investigations. Assistant U.S. Attorney Torey B. Cummings of Mendell’s Civil Rights Unit and Trial Attorney Tanya Kirwan of the Housing and Civil Enforcement Section of the Civil Rights Division handled the matter.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2016 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
This lawsuit resulted from a referral to the Justice Department from the U.S. Air Force. The Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section in partnership with the 93 U.S. Attorney’s Offices, including the District of Massachusetts. Since 2011, the Department has obtained over $474 million in monetary relief for over 120,000 servicemembers through its enforcement of the SCRA. For more information about the Department’s SCRA enforcement efforts, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA may have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at legalassistance.law.af.mil.
Farm Equipment CEO Sentenced to Prison, Order to Pay $6.3 Million RestitutionRead the Press Release
VALDOSTA, Ga. – A Southwest Georgia businessman and owner of a tractor supply company who pleaded guilty to orchestrating a complicated fraud involving millions of dollars of loans by multiple creditors was sentenced to prison and ordered to pay restitution to his victims for his crime.
Rickey Carter, 60, of Nashville, Georgia, was sentenced to serve 63 months in prison to be followed by five years of supervised release by U.S. District Judge Hugh Lawson on Wednesday, September 15, after he pleaded guilty to bank fraud. The court also sentenced Carter to pay more than $6.3 million in monetary restitution to the banks and creditors who were defrauded, as well as to the U.S. Small Business Administration. There is no parole in the federal system.
“Defrauding banks by lying to obtaining millions of dollars in loans undercuts the integrity of the banking system and puts businesses--and the people they employ--in jeopardy,” said Acting U.S. Attorney Peter D. Leary. “Our office and law enforcement will work to hold fraudsters accountable and protect citizens from fraud.”
“This sentencing recognizes the importance of holding the defendant accountable for orchestrating a fraudulent scheme to obtain millions of dollars in loans from these banks,” said Special Agent in Charge, Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG). “The FDIC-OIG remains committed to working with our law enforcement partners to investigate financial crimes that threaten the integrity of the banking sector.”
“No matter how elaborate or complicated the fraud scheme, the FBI and our federal partners will uncover and unravel it to protect American citizens and businesses from further damage and work to recoup their losses,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Carter will be held accountable for the damage he has done, sending a message that fraud is a serious crime with serious consequences.”
Carter was the President and CEO of Nashville Tractor (NTI), a business that sold and leased agricultural and construction equipment, attachments and parts. In 2016, he obtained a United States Small Business Administration (SBA) loan with Farmers and Merchants Bank (FMB) in the principal amount of $5,000,000. At the same time, NTI obtained a new line of credit and signed a credit agreement with FMB in the amount of $625,000.
In 2010, Carter had entered into an ongoing Wholesale Financing and Security Agreement with CNH Industrial Capital America, LLC, (CNH) to finance NTI’s purchases of inventory for retail sale or lease. He also entered into a Retail Financing Agreement (RFA) with CNH under which CNH would purchase NTI’s interest in retail installment contracts for the purchase of agricultural and construction equipment with retail customers. The CNH agreement was a primary source of farm and construction equipment inventory for NTI.
Carter was able to continue operations of NTI and other loan arrangements were made with a number of other banks and financing entities. In each instance of a loan with the banks, Carter was required to provide true and complete financial information to the banks and was to provide continuing information for line of credit draws. However, during 2015, NTI began having financial and cash flow issues which made it difficult to make payments due on the loans and to make payroll. During that time, Carter began a practice of selling equipment which it held in trust but not paying the cash over to CNH and other creditors as required. Carter sold at least 88 pieces of equipment valued at more than $1.5 million subject to the security interest of CNH and sold other pieces of equipment securing financing from Kubota Credit Corporation, Ameris Bank, Bank of Alapaha and Diversified Financial Services. As part of the fraudulent scheme, Carter falsified NTI’s financial records in order to inflate the company’s net worth. As a part of falsifying records, on occasion Carter directed NTI employees to generate payments checks on accounts payable but not send the checks, thereby reducing accounts payable but not deducting the checks from NTI’s accounts. In 2016, Carter falsified documents provided to FMB to secure the SBA loan and line of credit.
Carter also created fraudulent retail installment contracts for the sale or lease of numerous items of equipment with CNH using the names of real people whose information was available to Carter. Those fraudulent contracts generated more than $1.2 million in payments to NTI.
Carter continued through the SBA loan period to provide false and fraudulent information. In total, Carter admitted to being accountable for an intended fraud loss totaling more than $3.5 million but not more than $9.5 million. Carter is responsible for restitution for actual monetary losses caused by the fraud to FMB ($1,227,319.66), SBA ($1,500,000), Ameris Bank ($321,934.50), Bank of Alapaha ($150,000), CNH ($2,782,959.99), KCC ($185,993.32) and Diversified Financial Services ($228,399.92).
The case was investigated by the FBI and FDIC-OIG.
Assistant U.S. Attorney Robert McCullers prosecuted the case.
Elizabeth, PA Man Played Low-Level Role in DS-44 Drug Gang’s Distribution SchemeRead the Press Release
PITTSBURGH - A resident of Elizabeth, Pennsylvania, pleaded guilty in federal court to charges of violating federal narcotics and firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
Dontae Gilbert, age 20, of Elizabeth, Pennsylvania, pleaded guilty to one count of possession with intent to distribute a quantity of a mixture of heroin and fentanyl and one count of possession of a firearm in furtherance of a drug trafficking crime. United States District Judge William S. Stickman, IV. Gilbert is one of 36 defendants charged in the Indictment.
In connection with the guilty plea, the court was advised that in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and its drug-trafficking activity in and around the South Side area of Pittsburgh. Gilbert was identified as a low-level distributor of heroin and fentanyl supplied by members of the organization.
The court was further advised that on April 12, 2019, agents searched Gilbert’s residence and found him in possession of 13 stamp bags containing a mixture of heroin and fentanyl, a loaded pistol, and drug packaging and weighing materials.
Judge Stickman scheduled sentencing for February 17, 2022, at 9:30 a.m. The law provides for a total sentence of not less than five (5) years in prison and not more than life, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Gilbert remains detained pending sentencing.
Assistant United States Attorneys Carolyn J. Bloch and Brendan J. McKenna are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
El Paso Man Arrested for Defrauding His EmployerRead the Press Release
EL PASO – An El Paso man was arrested today on criminal charges related to his alleged involvement in a scheme to defraud his employer.
According to court documents, Ricardo Robles, 40, was employed by a company to negotiate and purchase its supplies. Instead, Robles created numerous sham companies and, unbeknownst to his employer, arranged for his employer to purchase those supplies from the bogus companies at an inflated price. Robles is alleged to have then pocketed the profits for his personal use.
Robles is charged with one count of conspiracy to commit wire fraud and 20 counts of wire fraud. If convicted, Robles faces a maximum penalty of 20 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and FBI Special Agent in Charge Jeffrey Downey, El Paso Division, made the announcement.
The FBI is investigating the case.
Assistant U.S. Attorney Christopher Mangels 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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