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26 October 2021
Winchester Man Sentenced for Robbing and Assaulting Federal Postal Worker and Cocaine PossessionRead the Press Release
BOSTON – A Winchester man was sentenced today for robbing and assaulting a federal postal worker and cocaine distribution.
Raymond Acevedo, 29, was sentenced by U.S. District Court Judge William G. Young to five years in prison and four years of supervised release. Acevedo was also ordered to pay a fine of $10,000. On June 28, 2021, Acevedo pleaded guilty to one count of robbing a federal postal worker, one count of assaulting a federal postal worker and one count of possession with intent to distribute cocaine.
On Oct. 24, 2019, a uniformed U.S. postal worker attempted to deliver an Express Mail package from Puerto Rico to an addressee in Dorchester. The postal worker was unable to locate the addressee and was returning to his vehicle when Acevedo approached the postal worker and demanded the package. When the postal worker would not give Acevedo the package, Acevedo violently assaulted the postal worker and took the package. The postal worker used his phone to take pictures of Acevedo, the stolen package and the vehicle Acevedo was driving. Acevedo then attacked the postal worker and took his phone, which the postal worker attempted to retrieve along with the stolen package and another fight ensued. As the postal worker and Acevedo were fighting over the package, police arrived and arrested Acevedo. The postal worker was transferred to a local hospital for the injuries he received during the altercation.
On Oct. 25, 2019, law enforcement officers opened the package pursuant to a federal search warrant and seized approximately 1.390 kilograms of cocaine.
Acting United States Attorney Nathaniel R. Mendell; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Field Division; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Mendell’s Major Crimes Unit prosecuted the case.
Williamsburg Businessman Convicted of Tax FraudRead the Press Release
NEWPORT NEWS, Va. – A federal jury convicted a Williamsburg man yesterday on charges of filing false tax returns and failure to file a tax return.
According to court records and evidence presented at trial, from at least 2014 through 2017, Michael J. Tiernan, 62, served as the financial officer for a number of business entities related to Ford’s Colony, including Ford’s Colony Realty, LLC, a large resort community in Williamsburg. For tax years 2015 and 2016, Tiernan filed federal income tax returns that falsely understated the income he received from these entities. Although the defendant reported some earnings in both years, he offset his claimed income with high deductions that resulted in zero taxable income for both 2015 and 2016, and also claimed to be insolvent in order to exclude the discharge of debt in 2015.
The evidence at trial revealed that Tiernan received underreported income from the business entities in the amount of at least $289,401 in 2015 and at least $204,523 in 2016. He cashed many of the checks he wrote and received from these entities and deposited cash into his personal bank account. Additionally, Teirnan failed to file a tax return for 2017, despite receiving $111,352 from one business. From 2015 to 2017, he deposited over $1.6 million into his personal bank account and spent nearly all of these funds in a combination of checks and debit card transactions. Teirnan further prepared and filed business tax returns for the entities that concealed the true compensation that he received.
Tiernan was convicted of filing false income tax returns and failing to file an income tax return and faces a maximum penalty of seven years in prison when sentenced on March 2, 2022. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Darrell J. Waldon, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement after U.S. District Judge Raymond A. Jackson accepted the verdict.
Assistant U.S. Attorneys Brian J. Samuels and David Mack Coleman 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. 4:20-cr-59.
Washington Parish Man Sentenced After Pleading Guilty Federal Drug Trafficking ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – JONZARRION HARRIS, a/k/a “GEE,” age 21, a resident of Bogalusa, Louisiana, was sentenced by United States District Judge Wendy B. Vitter to 120 months’ imprisonment, 5 years of supervised release and a mandatory $500 special assessment fee after pleading guilty to five counts of an twelve-count indictment charging him and two of his brothers with several narcotics offenses, including conspiracy to distribute and possess with intent to distribute five hundred (500) grams of a mixture or substance containing a detectable amount of methamphetamine, announced U.S. Attorney Duane A. Evans.
According to court documents, Special Agents with the Bureau of Alcohol, Tobacco and Firearms identified Trevion HARRIS as a methamphetamine trafficker in Bogalusa, Louisiana. Using a confidential source, beginning in November of 2018 and continuing through May 1, 2019, agents made controlled purchases of methamphetamine from Trevion, JONZARRION and Demarquiez HARRIS in amounts ranging from two (2) grams to as many as eight (8) ounces.
JONZARRION HARRIS faced a mandatory minimum term of imprisonment of ten (10) years up to a maximum term of life imprisonment, a fine of up to $10,000,000.00, at least five (5) years of supervised release and a mandatory $100 special assessment fee per count following any term of imprisonment.
This prosecution was part of an extensive investigation by the Bureau of Alcohol, Tobacco, and Firearms and the Bogalusa Police Department of individuals suspected of trafficking large quantities of methamphetamine and/or firearms in the Bogalusa area. The prosecution was handled by Assistant United States Attorney André Jones.
Utah Man Is Sentenced to Three and A Half Years for $850,000 Investment Scheme Involving Start-Up Mining CompanyRead the Press Release
CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced that a Utah man was sentenced to 42 months in prison for orchestrating an investment scheme involving a start-up mining and precious metals company. Andrew Malcolm Lovett, 60, and a former resident of Cornelius, N.C., also was ordered to serve two years under court supervision after he is released from prison and to pay more than $820,000 as restitution. U.S. District Judge Kenneth D. Bell handed down Lovett’s sentence.
Mona Passmore, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, join Acting U.S. Attorney Stetzer in making today’s announcement.
According to court documents and today’s sentencing hearing, from 2014 to 2016, Lovett defrauded more than 30 victims out of nearly $850,000 by convincing them to invest in a start-up mining and precious metals company, Safari Minerals, Inc. (Safari), and other entities with which Lovett was affiliated, by falsely telling them their money would be used to grow Safari and to develop various purported mining projects. Among other things, Lovett described Safari to his investors as “an emerging junior exploration and mining company” that focused on acquiring and developing properties in Nevada which “contains an abundance of … Gold, Silver, Platinum Group Metals and Rare Earth Elements….” Lovett also misled investors by touting his experience as a seasoned businessman with a wealth of knowledge in the mining industry and promoted his reputation as a man of faith.
As Lovett previously admitted in court, over the course of the scheme, Lovett lied to investors about the progress and viability of Safari, and failed to disclose to investors his previous criminal history, including his previous conviction for bank fraud. Lovett also did not tell his victims he diverted several hundred thousand dollars from Safari for his own personal use. In fact, rather than use the victims’ money to grow Safari’s business as promised, Lovett used a significant portion of the investments to pay for rent, entertainment and travel, and other personal expenses, and to make Ponzi-style payments to other victim investors.
In March 2021, Lovett pleaded guilty to securities fraud and transactional money laundering.
In making today’s announcement Acting U.S. Attorney Stetzer thanked IRS-CI, FBI, and USPIS for their investigation of the case.
Assistant United States Attorneys Daniel Ryan and Caryn Finley, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Upshur County man admits to carjacking and firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Chad C. Newcome, of Rock Cave, West Virginia, has admitted to carjacking and firearms charges, United States Attorney William J. Ihlenfeld, II announced.
Newcome, 40, pleaded guilty today to one count of “Carjacking” and one count of “Use of Firearm During and in Relation to a Crime of Violence.” Newcome admitted to attempting to steal a 2018 Dodge Ram Truck on March 10, 2021 in Upshur County. Newcome used a 12-gauge shotgun during the carjacking.
Newcome faces up to 15 years of incarceration and a fine of up to $250,000 for the carjacking charge and at least seven years of incarceration and a fine of up to $250,000 for the use of a firearm charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives, the West Virginia State Police, and the Upshur County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Two Passaic County Men Admit Roles in Illegal Money Transmitting SchemeRead the Press Release
NEWARK, N.J. – Two Passaic County men today admitted their roles in an illegal money transmitting business, Acting U.S. Attorney Rachael A. Honig announced today.
Erickson Checo-Almonte, 31 of Passaic, New Jersey, and Jordano Abreu-Diaz, 24 of Clifton, New Jersey, separately pleaded guilty by videoconference on Oct. 25, 2021, before U.S. District Brian Martinotti to informations charging them each with aiding and abetting an illegal money transmitting business.
According to documents filed in this case and statements made in court:
From April 2017 through March 2019, Erickson Checo-Almonte accepted over $3.9 million in cash and purchased over 137 cashier’s checks at local bank branches in New Jersey and elsewhere. From November 2016 through August 2017, Abreu-Diaz accepted over $1 million in cash and purchased 39 cashier’s checks at banks in New Jersey and elsewhere. Both men admitted that the cash they used to purchase the checks was from illegal activity.
The investigation revealed that the cash was the proceeds of illegal drug distribution. The check purchases were part of a large-scale illegal money transmitting and money laundering scheme designed to hide the illegal source of the cash and transfer it from New Jersey to the Dominican Republic and Colombia while attempting to avoid scrutiny by law enforcement and U.S. banks.
The charge of aiding and abetting an illegal money transmitting business carries a maximum penalty of five years in prison and a fine of $250,000 or twice the amount involved in the offense, whichever is greatest. Sentencing for both defendants is scheduled for March 2, 2022.
Acting U.S. Attorney Honig credited special agents and task force officers of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson; special agents and task force officers of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; the Morristown, New Jersey, police department, under the direction of Acting Police Chief Darnell Richardson; and the Direccion Nacional de Control de Drogas (the Dominican Republic National Drug Directorate, with the investigation leading to today’s guilty pleas.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the Asset Recovery and Money Laundering Unit in Newark.
Two Mexican Cartel Members Found Guilty of Violating RICO StatuteRead the Press Release
EL PASO – A federal jury convicted two Sinaloa Cartel members on Friday for their roles in the Sinaloa Cartel’s narcotics distribution operations.
According to court documents and evidence presented at trial, Arturo Shows Urquidi, aka “Chous,” 50, of Juarez, and Mario Iglesias-Villegas, aka “Dos,” “El 2,” “Delta,” “Parka,” “Grim Reaper,” 36, of Villa Ahumada, were found guilty of one count of conspiracy to violate the Racketeering Influenced Corrupt Organization statute (RICO) for their roles as members of the Sinaloa Cartel; one count of conspiracy to possess cocaine and marijuana; one count of conspiracy to import cocaine and marijuana; one count of conspiracy to launder money; and one count of conspiracy to possess firearms in furtherance of drug trafficking crimes.
Iglesias was also found guilty of five counts of violent crimes in aid of racketeering activity; one count of conspiracy to kill in a foreign country; and one count of kidnapping.
Shows was a former Chihuahua State police officer and a long-time member of the Sinaloa Cartel under Ismael “Mayo” Zambada-Garcia. Shows assisted in the security of stash houses where thousands of kilograms of cocaine were unloaded from tanker trucks and then reloaded with weapons and money being returned to Culiacan, Sinaloa, Mexico. While he was involved with the Sinaloa Cartel, the Cartel successfully imported thousands of kilograms of cocaine into the United States worth over $1 billion dollars.
Iglesias became a member of the Sinaloa Cartel under Joaquin “Chapo” Guzman-Loera in early 2008. Iglesias was the head of a group of Sinaloa Cartel sicarios (assassins) until his arrest in 2012. He was a significant participant in the death of thousands of people in Ciudad Juarez from 2008 to 2011. Among those, Iglesias was convicted for his participation in the kidnapping and eventual murder of Horizon City resident, Sergio Saucedo, and participation in the kidnapping and murders of Rafael Morales-Valencia, Jaime Morales-Valencia, and Guadalupe Morales-Arreola, who were kidnapped outside a church in Ciudad Juarez shortly after the wedding of Rafael Morales-Valencia. Iglesias’ acts of violence allowed the Sinaloa Cartel to control the Juarez drug corridor and successfully import cocaine and marijuana into the United States.
The Sinaloa Cartel’s criminal activity in the Cuidad Juarez and El Paso area included the violence that occurred during the war between the Juarez Cartel and the Sinaloa Cartel, which led to the death of thousands of people in Ciudad Juarez and throughout the Mexican states of Chihuahua and Durango. The violence gave rise to Ciudad Juarez being named the “deadliest city in the world.”
This investigation resulted in the seizure of hundreds of kilograms of cocaine, thousands of pounds of marijuana in cities throughout the United States. Law Enforcement also took possession of millions of dollars in drug proceeds which were destined to be returned to the Cartel in Mexico. Agents and officers likewise seized hundreds of weapons and thousands of rounds of ammunition intended to be smuggled into Mexico to assist the Cartel’s battle to take control of Juarez and the local drug trafficking corridors.
Sentencing for Shows is set for February 10, 2022 and sentencing for Iglesias is set for February 11, 2022.
U.S. Attorney Ashley C. Hoff of the Western District of Texas; Drug Enforcement Administration (DEA) Acting Special Agent in Charge Greg Millard; FBI Special Agent in Charge Jeffrey R. Downey; and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Jeffrey C. Boshek, II, Dallas Division, made the announcement.
The DEA, FBI, and ATF together with the Immigration and Customs Enforcement –Homeland Security Investigations (ICE-HSI), United States Border Patrol, Customs and Border Protection (CBP), United States Marshals Service, El Paso Police Department, El Paso Sheriff’s Office, and the Texas Department of Public Safety investigated this case.
Assistant U.S. Attorneys Antonio Franco, Kristal Wade, Kyle Myers, and Michael Williams are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Two Individuals Sentenced to Prison for Sex Trafficking a Minor at a Bloomington HotelRead the Press Release
ST. PAUL, Minn. – Maria Candelaria Zambrano Zavala, 27, and Humberto Rangel-Torres, 51, were sentenced to 144 months and 72 months in prison, respectively, for sex trafficking a minor out of a Bloomington hotel.
According to court documents, beginning in March 2019 through May 2019, Zambrano Zavala began transporting and providing a minor for commercial sex to Rangel-Torres, who was at the time a construction worker residing at a hotel in Bloomington. On multiple occasions, Rangel-Torres arranged for commercial sex acts through Zambrano Zavala and paid Zambrano Zavala or the minor in cash for each commercial sex act.
“These defendants knowingly engaged in the sexual exploitation of a child for their own selfish gains,” said Acting U.S. Attorney Anders Folk. “Criminals who victimize and abuse children in this way will be investigated, prosecuted, and imprisoned.”
In April 2021, Zambrano Zavala pleaded guilty to one count of sex trafficking of a minor, and Rangel-Torres pleaded guilty to one count of conspiracy to commit sex trafficking of a minor. In addition to the prison time, U.S. District Judge Eric C. Tostrud also sentenced Zambrano Zavala to 10 years of supervised release and Rangel-Torres to five years of supervised release.
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 U.S. Attorney’s 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.
This case was the result of an investigation conducted by HSI and the Bloomington Police Department.
Assistant U.S. Attorneys Manda M. Sertich and Evan B. Gilead prosecuted the case.
Two Defendants Convicted of Aviation-Based Drug Trafficking ChargesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Wendy C. Woolcock, Special Agent in Charge of the Special Operations Division of the U.S. Drug Enforcement Administration (“DEA”), announced today that a jury returned guilty verdicts yesterday against JEAN-CLAUDE OKONGO LANDJI and JIBRIL ADAMU on the charge of conspiring to traffic five kilograms and more of cocaine on board an aircraft owned by a United States citizen and registered in the United States. U.S. District Judge Paul G. Gardephe presided over the two-week trial.
U.S. Attorney Damian Williams said: “As a jury found, Jean-Claude Okongo Landji and Jibril Adamu sought to exploit their abilities as pilots and use Landji’s private jet to smuggle multi-ton loads of cocaine from South America to West Africa and on to Europe and elsewhere. Presuming they would be able to make regular runs to Europe, figuratively flying under the radar, Landji and Adamu were instead arrested in Croatia at the end of an initial test flight. Now they await sentencing for their crime.”
As reflected in the Indictment, public filings, and the evidence presented at trial:
Beginning in or about October 2017, LANDJI, ADAMU, and others agreed to use a United States-registered Gulfstream G2 private jet owned by LANDJI, a United States citizen, to distribute multi-ton quantities of cocaine in South America, Africa, Europe, and elsewhere. LANDJI and ADAMU, who are both pilots, planned to use the G2 and other aircraft to fly unregistered and untraceable “black flights” with multi-thousand kilogram loads of cocaine from South America to West Africa to be unloaded at clandestine airstrips, including landing sites in the Sahara desert. After the cocaine was off-loaded in Africa, LANDJI and ADAMU planned to use LANDJI’s aviation business, incorporated in the state of Georgia, as cover for cocaine smuggling flights to Europe and elsewhere. For example, LANDJI agreed to use his company to arrange seemingly legitimate passenger “VIP” flights to Europe for which ADAMU would serve as a pilot while concealing multi-ton quantities of cocaine hidden on board for further distribution in European countries. LANDJI and ADAMU further sought in particular to evade the scrutiny of the DEA and U.S. law enforcement and discussed methods to avoid the U.S. justice system. For example, during recorded meetings in 2018, LANDJI agreed to traffic cocaine by aircraft with a co-conspirator who warned “if you put one kilo on a plane that has the American registration, it’s the same thing[] as putting it . . . in the middle of . . . Madison Square Garden in New York. The same thing. For the justice system.”
On or about October 30, 2018, LANDJI and ADAMU conducted a test shipment and flew the G2 from Mali to Croatia with one kilogram of cocaine on board. LANDJI and ADAMU expected that their successful provision of the one-kilogram cocaine sample to clients in Europe would pave the way for providing twice-monthly shipments of cocaine worth as much as $40 million each in the European market. However, members of the Croatian National Police investigating LANDJI and ADAMU in coordination with the DEA searched the G2 following their arrival in Croatia, recovered the kilogram of cocaine, and arrested LANDJI and ADAMU. Both defendants were later extradited to the United States.
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LANDJI, 58, of the United States and Gabon, and ADAMU, 58, of Nigeria, were convicted of one count of conspiring to distribute and possess with intent to distribute cocaine with a United States citizen on board any aircraft, and on board an aircraft owned by a United States citizen or registered in the United States, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. The statutory minimum and maximum sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by Judge Gardephe.
Mr. Williams praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit, U.S. Customs and Border Protection, Homeland Security Investigations New York Office, the United Kingdom’s National Crime Agency, and the Croatian National Police Office for the Suppression of Corruption and Organized Crime, as well as the U.S. Department of Justice’s Office of International Affairs.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Elinor L. Tarlow and Matthew J.C. Hellman are in charge of the prosecution.
Twelve Plead Guilty to Tax and Immigration Charges after Undercover Operation Marking Largest Criminal Tax Case in Pee Dee HistoryRead the Press Release
Florence, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that 12 individuals across seven construction-related companies have pleaded guilty to charges related to employment tax fraud and hiring unauthorized aliens in the largest criminal Internal Revenue Service (IRS) operation in the history of the Pee Dee region. The pleas are the first to come from an expansive multi-year undercover investigation in the Myrtle Beach area and throughout the South Carolina coast led by the IRS and Homeland Security Investigations (HSI).
The operation targeted those in the construction industry who used unlicensed check cashers to facilitate under-the-table cash payments to employees, many of whom were unauthorized aliens. The check cashers would also provide certificates of insurance falsely stating that the employees were covered under workers’ compensation insurance. These off-the-book payments defrauded the United States out of applicable employment taxes on the employees. Each of the twelve defendants pleaded guilty to an information charging them with one felony count of conspiracy to defraud the United States and one misdemeanor count of unlawful employment of aliens. At least $15 million in checks were cashed by these defendants, resulting in millions of dollars of total losses to the Government. Based on the investigation, at least tens of millions of dollars of tax losses have occurred throughout the South Carolina coast because of similar schemes.
“Those who steal from the Government, and by extension the American taxpayers, will not find refuge in South Carolina,” said Acting U.S. Attorney DeHart. “By evading millions of dollars in taxes and falsely claiming their workers had insurance, these defendants made it harder for honest business owners to compete in the construction industry along South Carolina’s coast and they left their workers exposed to injury without insurance. I want to thank the IRS and HSI for their tireless efforts, as well as our local partners who assisted during this operation. We will continue to prosecute businesses and individuals who try to get ahead by breaking the law.”
“IRS Criminal Investigation realizes the detrimental consequences of employment tax evasion. These defendants mistakenly believed they could disregard their tax obligations and gain a competitive advantage while doing so,” said Mona Passmore, Acting Special Agent in Charge, IRS Criminal Investigation. “They underestimated our vigorous pursuit of justice and dedication to closing the tax gap. We will continue to hold criminals accountable for their role in these schemes.”
“The biggest misconception about labor exploitation is that it's a victimless crime and that couldn't be further from the truth. Workers, competing businesses, people who have their identities stolen and even the local economy are all victims of this crime,” said Special Agent in Charge Ronnie Martinez, who oversees HSI operations in North Carolina and South Carolina. “This case is shedding light on a crime that has happened in the shadows for too long and HSI and its partners will continue to hold accountable those involved in labor exploitation.”
Evidence presented to the court showed that beginning around late 2018, IRS and HSI began jointly investigating the practice of illegal check cashing within the construction industry in the Myrtle Beach area and in other regions along the South Carolina coast. Specifically, certain construction companies would use check cashers so that they could hire unauthorized aliens and avoid paying employment taxes on their workers. To facilitate the scheme, a member of the construction company would meet with an unlicensed check casher in places like parking lots for retail stores or coffee shops. The construction company would give the check casher a business check in a certain amount made out to a company the check casher had created, and the check casher would give the construction company representative a bag of cash that would be used to pay the employees. In exchange for their services, the check casher held back a fee of approximately three percent.
To make it appear like the employees had valid insurance on job sites, the check casher would also provide a certificate of workers’ compensation insurance that was not actually valid for any of the construction company’s employees. The parties agreed that the check casher would, on paper, claim to be a subcontractor who provided the employees and provided insurance. However, the parties knew that the check casher provided no other services or employees to the construction company. The check casher only provided a way to hide the true nature of the scheme, to allow the construction company to hire unauthorized aliens, and to pay workers with untaxed cash.
In approximately 2019, various IRS undercover agents embedded themselves in the Myrtle Beach area and recorded multiple interactions with the various defendants’ companies.
The following defendants from the following companies have pled guilty so far in the operation:
Daniel Lavoie Construction Services
- Daniel A. Lavoie, 49, of Conway (4:21-cr-00585)
- Enrique R. Reyes, 48, of Conway (4:21-cr-00585)
Duran Masonry
- Walter A. Duran, 45, of Myrtle Beach (4:21-cr-00584)
- Lisa Caulley Sellers, 57, of Myrtle Beach (4:21-cr-00584)
Extreme Siding
- Ming Xue Nan, 52, of Myrtle Beach (4:21-cr-00595)
- Katherine L. Welker, 39, of Myrtle Beach (4:21-cr-00595)
Master Homes Calabash
- Marylany Hardman Levino, 36, of Myrtle Beach (4:21-cr-00581)
- Josafa P. Neto, 43, of Myrtle Beach (4:21-cr-00581)
Metro Concrete Finishers
- Saul Prieto, 56, of Myrtle Beach (4:21-cr-00594)
- Martha E. Zarate, a/k/a Martha E. Prieto, 54, of Myrtle Beach (4:21-cr-00594)
Master Homes Design Center
- Marcos Caetano De Almeida, 45, of Myrtle Beach (4:21-cr-00582)
Paint By Numbers
- Johanna A. Carpio, 38, of Myrtle Beach (4:21-cr-00583)
Each defendant faces a maximum penalty of five years in federal prison for conspiracy to defraud the United States, and six months in federal prison for unlawful employment of aliens. Each defendant also faces a fine of up to $250,000 and $3,000 for each unauthorized alien, and 3 years of supervision to follow the term of imprisonment. Each defendant has agreed to make restitution to the IRS, for a total restitution amount of just under $3 million. Chief United States District Judge R. Bryan Harwell accepted each of the guilty pleas and will sentence the defendants after receiving and reviewing a sentencing report prepared by the United States Probation Office.
This case was investigated by IRS and HSI, with assistance from the Myrtle Beach Police Department. Assistant United States Attorneys Derek A. Shoemake and Carrie Fisher are prosecuting the case.
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Tulsa Man Sentenced for Attempted Receipt of Child PornographyRead the Press Release
A Tulsa man was sentenced in federal court for attempted receipt of child pornography, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge Claire V. Eagan sentenced Don Westly Roe Jr., 62, of Tulsa, to 82 months in federal prison followed by five years of supervised release.
“Don Roe Jr. initiated sexually inappropriate online conversations with an individual he believed was a minor, asked for explicit images and arranged a meeting between the two,” said Acting U.S. Attorney Clint Johnson. “Thankfully, instead of being met by a girl, this criminal was met by officers of the Bristow Police Department. Roe will spend nearly 7 years in federal prison for his illegal conduct.”
In his plea agreement, Roe Jr. admitted that from Feb 4, 2020, to April 5, 2020, he attempted to receive a visual depiction of a minor engaged in sexually explicit conduct.
During that time, Roe engaged online with an individual he thought was a minor female. Instead, he was communicating with an undercover officer. Roe asked the individual if she wanted him to come pick her up and if she partied. Roe’s conversations increasingly became sexual, and he requested explicit photographs of the “minor.” The defendant then arranged for the two to meet. When Roe arrived at the designated meeting location, he was arrested by law enforcement.
The Bristow Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Justin G. Bish prosecuted the case.
Sussex County Photographer Bruce Kevin Fleming Sentenced for Federal Tax EvasionRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Bruce Kevin Fleming, 67, of Milton, Delaware, was sentenced in federal court today to one year in federal prison for federal tax evasion. U.S. District Court Judge Richard G. Andrews pronounced the sentence.
According to court documents, Fleming, a well-known, freelance photographer, pled guilty on August 26, 2020. At the time of his plea, Fleming had not filed federal income tax returns or paid any such taxes since 1981. Fleming’s sentence includes $192,529 restitution to the IRS for income taxes due and owing from 2002 through 2016. Fleming was also ordered to make restitution to the IRS for $22,584 in payroll taxes which he withheld from his employees’ wages in 2016 and 2017 but never turned over to the IRS.
The Indictment covered the years 2012–2016. The prosecutor noted that Fleming had the money to pay his income taxes for those years, as his total net income was $393,000; however, Fleming lived beyond his means, spending a total of $75,000 in restaurants/bars and $2,350 monthly to rent a $800,000 house in Lewes, one block from the beach.
The prosecutor further said the criminal investigation was initiated only after Fleming ignored all of the IRS’s numerous letters and civil assessments.
Commenting on the sentence, U.S. Attorney Weiss noted, “The financial loss in tax cases is shared by every member of the tax-paying public. Our nation’s ability to operate and serve its citizenry depends on voluntary compliance with tax obligations. The defendant not only willfully evaded his personal income tax obligations, but he failed to pay over taxes withheld from his employees’ paychecks, demonstrating a complete disregard for their individual tax liabilities.”
“Today’s sentencing is the culmination of Mr. Fleming disregarding his tax responsibility for nearly two decades,” said Yury Kruty, Acting Special Agent in Charge of IRS-Criminal Investigation. “Taxpayers want to know that everyone is doing their part and paying their fair share of taxes. IRS-CI will continue to vigorously investigate those individuals who knowingly and willfully evade their tax obligation.”
The case was prosecuted by AUSA Edmond Falgowski and investigated by IRS-Criminal Investigations.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:19-cr-122.
Study Coordinator Pleads Guilty in Scheme to Falsify Clinical Drug Trial DataRead the Press Release
A Colorado man pleaded guilty today in connection with his participation in a scheme to falsify clinical drug trial data.
Duniel Tejeda, 35, of Canon City, Colorado, and formerly of Miami, Florida, pleaded guilty before U.S. District Judge Robert N. Scola Jr. of the Southern District of Florida to conspiracy to commit mail and wire fraud. According to court documents, Tejeda worked at Tellus Clinical Research, a medical clinic based in Miami. Tejeda served as a project manager and study coordinator for clinical drug trials. As part of his plea agreement, Tejeda admitted that he agreed with others to falsify data in medical records in connection with clinical trials intended to evaluate various medical conditions, including opioid dependency, irritable bowel syndrome and diabetic nephropathy. Among other things, Tejeda falsified data to make it appear as though subjects were participating in the trials when, in truth, they were not.
“The defendant’s conduct put profits before public health,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Justice Department will continue to work with its partners at the Food and Drug Administration to investigate and prosecute anyone who engages in this conduct.”
“The public relies on the accuracy and honesty of clinical trial data,” said U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “Falsifying clinical data not only violates the public’s trust, it also endangers the safety of consumers. Those who unlawfully profit by compromising the public’s health in this way commit serious crimes and will be prosecuted.”
“FDA’s evaluation of a new drug begins with an analysis of reliable and accurate data from clinical trials,” said Assistant Commissioner for Criminal Investigations Catherine A. Hermsen of the Food and Drug Administration's (FDA) Office of Criminal Investigations. “Compromised clinical trial data could impact the agency’s decisions about the safety and effectiveness of the drug under review. We will continue to monitor, investigate and bring to justice those whose actions may subvert the FDA approval process and endanger the public health.”
Tejeda faces a maximum penalty of twenty years in prison. The court scheduled a sentencing hearing for Jan. 20, 2022. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FDA's Office of Criminal Investigations is investigating the case.
Trial Attorneys Lauren M. Elfner and Joshua D. Rothman of the Justice Department’s Consumer Protection Branch are prosecuting the case. The U.S. Attorney’s Office for the Southern District of Florida has provided critical assistance.
Stock Trader Arrested and Charged with Securities Fraud for Using His Twitter Account to Operate A Pump-And-Dump SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Ricky J. Patel, Acting Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced today that STEVEN GALLAGHER was charged in a Complaint in Manhattan federal court with securities fraud, wire fraud, and market manipulation. GALLAGHER, using the alias “Alex DeLarge,” created a stock promotion account on Twitter that gained over 70,000 followers. GALLAGHER used that account to tout certain over-the-counter penny stocks and to disseminate false and misleading information about his trading in those stocks in order to induce his followers to purchase those stocks and drive up their prices. GALLAGHER earned over $1 million in profits by then secretly selling his previously acquired holdings of those penny stocks. GALLAGHER was arrested today in the Northern District of Ohio and is expected to be presented before a magistrate judge this afternoon.
U.S. Attorney Damian Williams said: “As alleged, Steven Gallagher brought old-school boiler room tactics to the Twitter age, and operated a social media pump-and-dump scam that defrauded ordinary investors, all so that he could make over $1 million in profits. Today’s arrest of Gallagher demonstrates that this Office and our law enforcement partners will be vigilant as securities fraud schemes move onto Twitter and other forms of social media.”
Acting HSI Special Agent-in-Charge Ricky J. Patel said: “Turning lies into cash, Gallagher allegedly engaged in a pump & dump scheme, where he and his followers manipulated the price of penny stocks and guaranteed profits for themselves. Pump and dump stock schemes cause mistrust in the market and have real victims who often invest large sums of money, only to have their hopes shattered by a fraudster’s greed. Like so many Hollywood movies which have portrayed stock frauds, Gallagher met the same fate as those storylines, he was arrested and will now face justice. Working with our partners at the USAO-SDNY and the SEC, identifying and disrupting illegal financial schemes like this one is a top priority for HSI.”
If you believe you are a victim of this crime, or if you have information relevant to this investigation, please send an email to [email protected].
As alleged in the Complaint unsealed today in Manhattan federal court:[1]
STEVEN GALLAGHER is an active day trader in over-the-counter securities, or “OTC securities.” Those securities typically do not trade on centralized exchanges such as the New York Stock Exchange or the NASDAQ Stock Exchange. OTC securities often trade for less than one dollar per share, and thus are often referred to as “penny stocks.” Many OTC securities are thinly traded, and therefore are particularly susceptible to stock manipulation schemes.
In September 2019, GALLAGHER created a Twitter account using the alias “Alex DeLarge,” a character from the Anthony Burgess novel A Clockwork Orange and the Stanley Kubrick film of the same name (the “DeLarge Twitter Account”). As of October 19, 2021, the DeLarge Twitter Account had over 70,000 followers.
From 2020 to the present, GALLAGHER has operated a fraudulent pump-and-dump scheme that employed a variety of tactics to defraud individual, non-professional investors – so-called “retail investors” – in thinly traded over-the-counter securities. GALLAGHER repeated the scheme again and again with respect to numerous securities, employing substantially the same means and methods. As part of his fraudulent scheme, GALLAGHER first secretly acquired a substantial volume of shares of thinly traded penny stocks (the “Subject Securities”). GALLAGHER then used the DeLarge Twitter Account to artificially “pump” the Subject Securities, including by making materially false and misleading statements about those securities. For example, GALLAGHER made false and misleading statements about the nature and timing of GALLAGHER’s own financial interest in those securities, at times representing that he was purchasing or holding shares of certain of the Subject Securities he was touting when, in fact, he was secretly selling. During the course of the scheme, GALLAGHER also regularly posted images of his brokerage account balance and gains on the Delarge Twitter Account in order to bolster his reputation and induce his followers to trade in accordance with his suggestions.
During the “pump” phase of this scheme, the prices of the Subject Securities rose when the Twitter followers of the DeLarge Twitter Account purchased them. Then, GALLAGHER began the “dump” phase of the scheme wherein he sold his shares at the inflated prices while continuing to use the DeLarge Twitter Account to disseminate materially false and fraudulent statements in an effort to obtain the best possible sales price for himself. As a result of this fraudulent scheme, GALLAGHER earned over $1 million in trading profits.
In addition to making false and misleading statements to “pump” the Subject Securities, as a further part of his fraudulent scheme, GALLAGHER also engaged in an additional form of market manipulation with at least one of the Subject Securities. Specifically, GALLAGHER engaged in a series of transactions designed to artificially raise the end-of-day price of one of the Subject Securities by making purchases at above-market prices in order to make the stock appear favorable to potential purchasers, a deceptive practice known as “marking the close.” As with GALLAGHER’s efforts to artificially raise the price of the Subject Securities through false and misleading statements, these manipulative transactions induced other market participants to purchase the security and continue the upward trend in its price while GALLAGHER secretly sold his shares at a profit.
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GALLAGHER, 50, of Maumee, Ohio, is charged with one count of securities fraud, which carries a maximum sentence of twenty years in prison, one count of wire fraud, which carries a maximum sentence of twenty years in prison, one count of securities fraud, which carries a maximum sentence of twenty-five years in prison, and one count of one count of market manipulation, which carries a maximum sentence of twenty years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the work of the HSI, and noted that the investigation remains ongoing. Mr. Williams further thanked the Securities and Exchange Commission for their cooperation and assistance in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Richard Cooper, Daniel Tracer, and Allison Nichols are in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictments, and the description of the Indictments set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Statesville Man Is Sentenced to More Than 15 Years for Federal Firearms OffenseRead the Press Release
CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced today that Phong Duc Nguyen, 35, of Statesville, N.C., was sentenced to 182 months in prison and five years of supervised release for a federal firearms offense.
According to court documents and today’s sentencing hearing, in the early hours of November 25, 2019, an officer with the Monroe Police Department conducted a traffic stop of the vehicle Nguyen was driving. Over the course of the traffic stop, the officer determined that Nguyen’s license was suspended and that there were multiple outstanding warrants for his arrest. While placing Nguyen under arrest, the officer located a firearm holster and ammunition in Nguyen’s pants pocket. Court records show that when the officer searched Nguyen’s vehicle, he located a firearm on the right side of the driver’s seat, and found marijuana and crack cocaine elsewhere inside the vehicle.
On February 17, 2021, Nguyen pleaded guilty to possession of a firearm by a convicted felon. At today’s sentencing hearing, the Court classified Nguyen as an “Armed Career Criminal.”
Nguyen is currently in federal custody and will be transferred to custody of the Federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Monroe Police Department for their investigation of the case.
Assistant United States Attorney Stephanie Spaugh, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
State Inmate Sentenced to Federal Prison for Arranging Sale of a Firearm and Meth Sales from Behind BarsRead the Press Release
PROVIDENCE, R.I. – A Rhode Island state prison inmate who arranged by telephone from within the prison to sell a firearm and methamphetamine to an individual outside the prison whose telephone number he was provided by a fellow inmate was sentenced on Monday to 48 months in federal prison on firearm and drug trafficking charges, announced Acting United States Attorney Richard B. Myrus.
According to information presented to the court, in October 2020, Tyler Bagley, 29, telephoned his then girlfriend, Bernice Chase, 39, of Providence, and, using coded language, instructed her to call a phone number he provided to her to arrange for the sale of a firearm that he had previously obtained. Chase called the number and arranged to meet the next day with the buyer to provide him with a Glock9mm pistol in exchange for $450. About an hour after the transaction was completed, Bagley telephoned Chase and instructed her to deposit $200 into his prison account and for her to keep the remainder of the proceeds. Unbeknownst to Bagley and Chase, the individual that purchased the firearm was an undercover agent with the Bureau of Alcohol, Tobacco, Firearms, ad Explosives.
About a month later, Bagley contacted Chase by telephone from inside the prison and, using coded language, told Chase to again contact the person that purchased the firearm and to sell him 28 grams of methamphetamine. A day later, Chase and the ATF undercover agent met, and she provided the agent with 14 grams of meth in exchange for $800. Chase told Bagley that she could not get the full 28 grams, but she was able to get 15 and made 300 dollars profit. Bagley instructed Chase to keep half of the proceeds and to deposit half into his prison account.
Analysis at a DEA laboratory established that the methamphetamine sold to the undercover agent weighed 14.058 grams and was 97% pure.
Tyler Bagley pleaded guilty in U.S. District Court on July 16, 2021, to felon in possession of a firearm and conspiracy to distribute methamphetamine. He was sentenced on Monday by U.S. District Court Judge William E. smith to 48 months of incarceration to be followed by 3 years of federal supervised release.
Bernice Chase pleaded guilty on September 28, 2021, to a two-count information charging her with felon in possession of a firearm and conspiracy to distribute methamphetamine. She is scheduled to be sentenced on January 7, 2022.
The cases are being prosecuted by Assistant U.S. Attorney Zechariah Chafee.
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St. Paul Registered Sex Offender Indicted for Downloading and Possessing Child PornographyRead the Press Release
ST. PAUL, Minn. – A federal grand jury returned an indictment against a St. Paul man for receiving and possessing child pornography, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, on January 4, 2020, Drayton Dean Wilson, 28, downloaded an image containing depictions of child sexual abuse. On June 1, 2020, and October 15, 2020, Wilson was found in possession of multiple digital files containing depictions of child sexual abuse. On February 2, 2010, prior to these allegations, Wilson was convicted in Cass County of second degree criminal sexual conduct and was required to register as a sex offender.
Wilson is charged with one count of receipt of child pornography and two counts of possession of child pornography.
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 Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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.projectsafechildhood.gov.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorney Evan B. Gilead 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.
South Yarmouth Man Sentenced for Fentanyl and Heroin OffensesRead the Press Release
BOSTON – A South Yarmouth man was sentenced yesterday in federal court in Boston for fentanyl and heroin offenses.
Dustin Monick, 23, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 70 months in prison and five years of supervised release. On April 26, 2021, Monick pleaded guilty to one count of possession with intent to distribute 400 grams or more of fentanyl and 100 grams or more of heroin and one count of possession with intent to distribute 400 grams or more of fentanyl.
In December 2019, Monick was stopped by police in Yarmouth for multiple traffic violations, at which time police observed a backpack in Monick’s vehicle. After speaking briefly with police, Monick fled the scene in his vehicle, but was stopped shortly thereafter. Police later found the backpack, which contained over 600 grams of heroin and fentanyl, along the road. During his arrest, two keys were found on Monick. One key opened a storage locker used by Monick and the other opened a safe, which contained over two kilos of fentanyl and $100,068 cash.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Yarmouth Police Chief Frank Frederickson made the announcement. Assistant U.S. Attorney Nadine Pellegrini of Mendell’s Narcotics & Money Laundering Unit prosecuted the case.
South Carolina Man Pleads Guilty to Distribution of Methamphetamine, International Money Laundering, Gun ChargesRead the Press Release
ABINGDON, Va. – A Greenville, South Carolina man, who formerly resided in Bristol, Virginia, pleaded guilty last week to distributing methamphetamine, international money laundering, possessing a firearm in furtherance of a drug trafficking crime, and conspiring to obstruct justice.
According to court documents, Joshua Desorcy, 36, was directly responsible for coordinating the importation of methamphetamine shipments through a source of supply in Mexico.
Desorcy directed his co-conspirators to make numerous trips to Atlanta, Georgia and Houston, Texas, in 2020 and 2021 to pick up large quantities of methamphetamine from sources of supply in those cities. Desorcy coordinated these pickups by directing the wiring of funds to various recipients in Mexico as identified by indicted co-conspirator Amy Cobb.
Desorcy pleaded guilty to one count of conspiracy to distribute and possession with the intent to distribute 50 grams or more of methamphetamine, one count of conspiracy to commit international money laundering with the intent to promote the carrying on of a specified unlawful activity, one count of possession with the intent to distribute 50 grams or more of methamphetamine, one count of possessing a firearm in furtherance of a drug trafficking crime, one count of possession of a firearm by a convicted felon, and one count of conspiring to obstruct justice. He is scheduled to be sentenced on February 9, 2022. The defendant has agreed to a sentencing range of 35-40 years in federal prison.
U.S. Attorney Christopher R. Kavanaugh of the Western District of Virginia, Charlie J. Patterson, Special Agent in Charge of ATF’s Washington Field Division, and Special Agent in Charge Jarod Forget of the DEA’s Washington Division made the announcement.
The Drug Enforcement Administration as well as the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case, and Assistant U.S. Attorney Daniel Murphy is prosecuting the case.
Solano County Man Sentenced to 10 Years in Prison for Firearms OffenseRead the Press Release
SACRAMENTO, Calif. — David McDaniels, 29, of Fairfield, was sentenced today by U.S. District Judge John A. Mendez to 10 years in prison and a $250,000 fine for possession of a stolen firearm, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, McDaniels has a lengthy criminal history, which includes multiple felony convictions for assault with a deadly weapon, burglary, and inflicting corporal injury on a spouse.
According to court documents, on May 22, 2018, law enforcement officers arrived at a motel room in Vacaville to search the room pursuant to the probation search terms of one of the room’s occupants. After identifying themselves as law enforcement and demanding entry into the room, the officers heard items inside the room rustling as well as the sound of a toilet bowl lid being removed and manipulated. The officers requested entry into the room once more and attempted to use a key to open the room, but the door was deadbolted from the inside.
Eventually, a shirtless male later identified as McDaniels opened the door. When one of the officers grabbed McDaniels’s hands to detain him, the officer noticed that both of McDaniels’s hands were wet. McDaniels told officers he had just gotten out of the shower. Police dispatch confirmed that there was an active warrant for his arrest and that he was on state parole following a burglary conviction. While this was happening, officers searched the air conditioning vent in the room. Inside the vent, officers found a stolen and loaded Ruger 9 mm pistol. The gun was wet, and there was a trail of water leading from the bathroom to a chair directly underneath the vent. A records check of the firearm’s serial number revealed that it was unregistered in the State of California.
This case was the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Vacaville Police Department. Assistant U.S. Attorneys Audrey Hemesath and Sam Stefanki prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Scranton Man Charged with Online Enticement and Receipt and Possession of Child PornographyRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Adrean Lorenzano, age 22, of Scranton, Pennsylvania, was charged by a criminal complaint on October 22, 2021, for online enticement of a minor and the receipt and possession of visual depictions of minors engaging in sexually explicit conduct.
According to Acting United States Attorney, Bruce D. Brandler, the complaint alleges that Lorenzano used a facility of interstate commerce to entice a minor to engage in sexual activity. Additionally, the complaint alleges that Lorenzano received and possessed visual depiction of sexually explicit conduct and visual depictions of minors engaging in sexually explicit conduct.
The charges stem from an investigation by the Homeland Security Investigations, the Bethlehem Township Police Department, and the Scranton Police Department. Assistant United States Attorney James M. Buchanan is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States 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.
Complaints are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalties under federal law for these offenses is life imprisonment, a mandatory minimum period of imprisonment of 10 years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Schenectady Man Sentenced to 87 Months for Possession of a Molotov CocktailRead the Press Release
SYRACUSE, NEW YORK – Joel Malek, age 43, of Schenectady, New York, was sentenced today to 87 months in prison after previously pleading guilty to possession of a Molotov cocktail.
The announcement was made by United States Attorney Carla B. Freedman and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
As part of his guilty plea, Malek admitted that on June 5, 2020, he and a co-conspirator approached a vehicle in Schenectady, at which time the co-conspirator broke the driver-side rear window with a hammer, and then Malek ignited a Molotov cocktail and threw it into the vehicle through the broken window, which started a fire and caused an explosion in the vehicle; no one was injured but the vehicle was destroyed.
United States Attorney Carla B. Freedman stated: “Today’s sentence justly punishes Joel Malek for using a destructive device to firebomb a Schenectady resident’s property and frighten a community during a time of civil unrest immediately following protests related to the death of George Floyd. I am thankful that no one was harmed and praise the work of the federal, state, and local officers who worked tirelessly to solve this case and bring Malek to justice.”
ATF Special Agent in Charge John B. DeVito stated: “The defendant’s use of a destructive device not only endangered the lives of our community members but also jeopardized our first responders who had to extinguish the flames in a time of civil unrest. I thank them for their efforts, as well as those of the U.S. Attorney’s Office and the Federal Bureau of Investigation, for partnering with ATF in sending a clear message that individuals committing violent acts in our communities will be held responsible for their actions.”
In addition to the 87-month term of imprisonment, Senior United States District Judge Norman A. Mordue imposed a term of 3 years of supervised release that will follow the term of incarceration. Malek was also ordered to pay $3,500 in restitution to the owner of the destroyed vehicle.
This case was investigated by the ATF and the Federal Bureau of Investigation’s Joint Terrorism Task Force, as well as the Schenectady Police Department and Schenectady Fire Department, and was prosecuted by Assistant U.S. Attorneys Richard Belliss and Alexander Wentworth-Ping.
Schenectady County Man Charged with Sexually Exploiting a ChildRead the Press Release
ALBANY, NEW YORK – John H. Ruthosky, age 36, of Schenectady, New York, appeared in federal court yesterday on charges that he sexually exploited a child.
The announcement was made by United States Attorney Carla B. Freedman and Matthew Scarpino, Acting Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
A criminal complaint alleges that on or about October 20, 2021, Ruthosky produced sexually explicit videos of a 7-year-old child. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Ruthosky initially appeared yesterday before United States Magistrate Judge Christian F. Hummel. Today, the defendant waived his right to a detention hearing, and will remain detained pending trial.
If convicted, Ruthosky faces a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years, a maximum fine of $250,000, and a term of supervised release of between 5 years and life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. He would also be required to register as a sex offender.
Members of the public who have information regarding Ruthosky are asked to call HSI’s 24-hour tip line at (866) 347-2423.
This case is being investigated by HSI, with assistance from the New York State Police, and is being prosecuted by Assistant U.S. Attorneys Geoffrey J. L. Brown and Rachel L. Williams as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s 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 https://www.justice.gov/psc
Sacramento Man Indicted for Drug Distribution via the DarknetRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 13-count indictment on Oct. 21 against Jonathan Patrick Turrentine, 39, of Sacramento, charging him with 11 counts of distribution of controlled substances, including methamphetamine, amphetamine, MDMA (ecstasy), LSD, and psilocybin (psychedelic mushrooms), one count of possession with intent to distribute psilocybin, and one count of money laundering, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Turrentine is charged with operating vendor pages on darknet marketplaces, selling drugs and other contraband. Turrentine used various aliases on the different sites, including “CaliPlugMike” and “DatCubensisBoy.” On the darknet’s Empire Marketplace site, he advertised for sale LSD, cocaine, Xanax pills, Adderall pills, psilocybin mushrooms, ecstasy, and marijuana products, including edibles, vape pens and cartridges, as well as marijuana buds in gram, ounce, and pound quantities. Turrentine also offered for sale compromised email account identifiers and passwords. Turrentine accepted payment exclusively in bitcoin, or other cryptocurrency, as is common to darknet transactions.
Court documents indicate that investigators became aware of Turrentine in November 2018, when a suspicious package addressed to him arrived at a Sacramento-area post office and a drug-sniffing dog alerted to it. Investigators questioned him about the package, but Turrentine denied all knowledge.
At the time, Turrentine was on probation from a prior conviction for accessing a computer network to obtain money, property, or data wrongfully. During a search of his residence, investigators found one computer powered-on and observed communications consistent with operating a darknet vendor site, apparently distributing narcotics. Data on that computer indicate that Turrentine was operating several darknet vendor accounts under the names “Mushmike1776,” “Calicartconnect,” “Calicarts,” “Bigboycarts,” and “Californiabudz.”
In December 2019, Sacramento agents learned that federal and local law enforcement agencies in Orange County were investigating the death of an 18-year-old whom they believe committed suicide after taking counterfeit Xanax purchased on the darknet. The victim’s computer showed the victim bought products through darknet market accounts, including from “CaliPlugMike,” on the Empire Marketplace. Agents determined that the delivery to the victim from CaliPlugMike had been mailed from Sacramento. Around this time, agents also became aware of another darknet vendor operating in San Diego, whom San Diego agents believed to be sourcing drugs from CaliPlugMike.
Over the next year, investigators in Sacramento, San Diego, and Orange County continued to track Turrentine via his darknet activity, which appeared extensive. As of April 4, 2020, CaliPlugMike had 904 customer reviews on Empire Marketplace, with a customer service rating of 97.13% positive market feedback.
Posing as Empire Marketplace customers, federal agents placed orders from Turrentine for marijuana, MDMA, LSD, and various pills purporting to be Adderall, Xanax, and Viagra. Agents also bought a list of 1.4 billion email addresses and passwords for $1, which Turrentine’s vendor page described as “compiled from over 100 breaches into a simple plain text file you can read.” His page further explained that “most people have changed their email password but most people use the same password across multiple sites.” Agents paid for all orders in bitcoin or another cryptocurrency.
With every undercover order agents placed, they confirmed from post office security camera footage that Turrentine was the person who mailed the shipment. Agents noted that he paid for the postage at the post office’s self-serve kiosks, using a debit card. An investigation of Turrentine’s financial records showed that the funds on his debit card had come from a cryptocurrency exchange in the United Kingdom. Records further indicated that Turrentine had been transferring bitcoin to that cryptocurrency exchange, in exchange for U.S. dollars, then transferring those dollars to his debit card account. According to court documents, the quantity of bitcoin that Turrentine exchanged was far greater than what he could have acquired through his legitimate income sources.
Beginning on April 4, 2020, however, customer feedback on CaliPlugMike’s Empire Marketplace vendor page indicated that he had performed an exit scam – a ruse in which a vendor takes a number of orders with payment, but then disappears from the marketplace without filling the orders. Around that date, in the “About” section of the CaliPlugMike’s page, Turrentine changed his vendor information to one word: “GOODBYE.”
A few months later, a suspicious package, destined for Iowa, was found that fit the profile of packages agents had received from Turrentine, but from a vendor named “DatCubensisBoy,” on the Dark Market site. Agents acting undercover then placed orders from DatCubensisBoy, via Dark Market, for what he advertised as psychedelic mushroom spores. The packaging in which DatCubensisBoy mailed the spores appeared in all respects the same as the packaging Turrentine had used when shipping orders placed through his CaliPlugMike page. Post Office surveillance footage from the time and place DatCubensisBoy’s orders had been mailed again confirmed that Turrentine mailed them.
On Sept. 27, 2021, agents arrested Turrentine and searched his residence where they found a psychedelic mushroom cultivation operation, processed mushrooms, ready for shipment, as well as the same packaging and shipping materials Turrentine had used to send his prior packages. A review of Turrentine’s computer revealed that he had been actively operating vendor sites on the darknet under the moniker “Fantasticfungi.” Agents also found evidence on the computer confirming that Turrentine had been using the monikers “CaliPlugMike” and “DatCubensisBoy.”
This case is the product of an investigation by the Northern California Illicit Digital Economy (NCIDE) task force, a team composed of agents from the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the U.S. Postal Service – Office of the Inspector General, the Internal Revenue Service – Criminal Investigation, and the California National Guard. Assistant U.S. Attorney James Conolly is prosecuting the case.
If convicted, Turrentine faces a maximum statutory penalty of 20 years in prison and a $1 million fine for each count of distribution and the count of possession with intent to distribute. He faces a maximum statutory penalty of 20 years in prison if convicted of the money laundering count and a fine of up to $500,000, or twice the value of the property involved in the money laundering activity, whichever is greater. 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.
Rock Island Man Sentenced to 96 Months in Prison for Possession and Distribution of a Controlled SubstanceRead the Press Release
ROCK ISLAND, Ill. – A Rock Island, Illinois, man, Michael Tyrone Drummond, Jr., 30, of the 3000 block of 4th Street, was sentenced to 96 months in federal prison, to be followed by three years of supervised release, on October 21, 2021, for offenses involving trafficking in cocaine base (crack).
Drummond had earlier pleaded guilty to three counts of distribution and one count of possession with intent to deliver a mixture and substance containing a detectable amount of cocaine base.
At the time Drummond committed the offenses, he was already on federal supervised release for a prior drug trafficking offense. As a result, U.S. District Court Judge Sara Darrow imposed an additional sentence of 24 months in federal prison for the violation of his conditions of supervised release, for a total sentence of 120 months.
At Drummond’s sentencing hearing, Judge Darrow found that based on the nature of the offense and his criminal history, Drummond qualified as a career offender. The judge also commented that Drummond’s history of criminal activity, specifically the fact that he was on supervised release for the same conduct, showed a disturbing trend.
The statutory penalties for possession with intent to deliver or distribution of a mixture or substance containing a detectable amount of cocaine base, are up to twenty years in prison, a fine of up to $1,000,000, and at least three years of supervised release following imprisonment.
The Rock Island Police Department, the U.S. Drug Enforcement Administration (DEA), the Quad Cities Gang Taskforce, and the Moline Police Department investigated the case. Assistant U.S. Attorney Jennifer L. Mathew represented the government in the prosecution.
Repeat Gun Offender Sentenced to over 10 Years in Federal PrisonRead the Press Release
Memphis, TN – Tavious Richards, 30, has been sentenced to 123 months in federal prison for being a felon in possession of a firearm. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentence today.
According to information presented in court, Tavious Richards had previously been sentenced to 46 months in federal prison followed by three years of supervised release. While on release, Richards committed several violations, including unlawfully possessing yet another firearm.
On August 12, 2020, Memphis Police Officers identified Richards driving a black 2020 Chevrolet Camaro. Officers knew Richards had active arrest warrants. The Airways Task Force was contacted and responded to the scene. Officers initiated a traffic stop at Airways and I-240 where Richards was captured. While removing him from the vehicle, a handgun was visible. Also found in the vehicle was a backpack containing marijuana, pills, and a bottle of promethazine. The firearm, a Glock .40 caliber pistol, had previously been reported stolen in 2018.
Richards had been previously convicted of aggravated assault, as well as other charges. As a result of his prior convictions, Richards is prohibited by federal law from possessing firearms or ammunition.
On April 15, 2021, a Federal Grand Jury sitting in the Western District of Tennessee returned a one-count indictment against Richards for his August 12, 2020, gun possession charge. Richards entered a guilty plea to that indictment on June 16, 2021.
On October 8, 2021, U.S. District Judge Jon P. McCalla sentenced Richards to 108 months in federal prison. His total sentence of 123 months incarceration will be followed by three years of supervised release. There is no parole in the federal system.
On October 14, 2021, U.S. District Judge Sheryl H. Lipman sentenced Richards to 15 months incarceration for his supervised release violations, to be served consecutively to his sentence on his new indictment of 123 months in federal prison.
The Memphis Police Department and Project Safe Neighborhoods Task Force investigated this case. The Project Safe Neighborhoods (PSN) initiative is 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. In 2017, PSN was reinvigorated as part of the Justice 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.
Special Assistant U.S. Attorney Samuel D. Winnig and Assistant U.S. Attorney Elizabeth Rogers prosecuted this case on behalf of the government. SAUSA Winnig is currently assigned from the Shelby County District Attorney General’s Office for the purpose of prosecuting violent crimes and firearms offenses in federal court.
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Removed Columbian National Indicted for Illegally Re-entering the U.S.Read the Press Release
PITTSBURGH - One Columbian national has been indicted by a federal grand jury in Pittsburgh on a charge of Reentering the United States, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Elkin Lara-Lozano, 49, as the sole defendant.
According to a publicly filed Complaint, on September 11, 2021, Mr. Lara-Lozano was arrested by the Mount Lebanon Police Department in connection with the burglary of a nearby residence. Mr. Lara-Lozano has been removed from this country on several previous occasions.
The law provides for a maximum total sentence of not more than three years in prison, a fine, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brian W. Castello is prosecuting this case on behalf of the government.
U.S. Immigration and Customs Enforcement conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Randolph County man admits to methamphetamine chargeRead the Press Release
ELKINS, WEST VIRGINIA – Edwin Mack Taylor, of Elkins, West Virginia, has admitted to selling methamphetamine, United States Attorney William J. Ihlenfeld, II announced.
Taylor, 54, pleaded guilty today to one count of “Distribution of Methamphetamine.” Taylor sold methamphetamine, also known as “crystal meth” and “ice,” in January 2020 in Randolph County.
Taylor 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 Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Pittsburgh Man Charged with Drug and Firearms OffensesRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been charged by superseding indictment before a federal grand jury in Pittsburgh on charges of violating federal firearms and narcotic laws, Acting United States Attorney Stephen R. Kaufman announced today.
The four-count Superseding Indictment named Guy Wallar, Jr., age 24, as the sole defendant.
According to the Superseding Indictment, on or about June 28, 2021, Wallar, Jr. possessed with intent to distribute a quantity of a mixture and substance containing a detectable amount of cocaine, possessed a firearm in furtherance of a drug trafficking crime, and possessed ammunition by a convicted felon. The Superseding Indictment further alleged that on or about July 1, 2021, Wallar, Jr. possessed with intent to distribute a quantity of a mixture and substance containing a detectable amount of cocaine base. Under federal law, possessing a firearm and/or ammunition is a violation of federal law for those who have previously been convicted of a crime punishable by greater than a year in prison.
The law provides for a maximum total sentence of life imprisonment, a fine not to exceed $2,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Indicate relevant bond/detention information if known
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Duquesne Police Department conducted the investigation leading to the Indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Passaic County Man Sentenced to Five Years in Prison for Participating in Drug ConspiracyRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced today to 60 months in prison for conspiring to distribute 100 grams or more of heroin, 40 grams or more of fentanyl, and cocaine base and to distributing a quantity of heroin and fentanyl, Acting U.S. Attorney Rachael A. Honig announced.
Jimir Ricks, 26, of Paterson, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin, 40 grams or more of fentanyl, and a quantity of cocaine base and knowingly and intentionally distributing heroin and fentanyl. Judge Martinotti imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Ricks and his conspirators are members and associates of the 230 Boys street gang, which operates primarily around Rosa Parks Boulevard and Godwin Avenue in Paterson. Through numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement determined that from at least September 2018 through Oct. 1, 2019, Ricks and his conspirators conspired to distribute narcotics, including heroin and fentanyl.
In addition to the prison term, Judge Martinotti sentenced Ricks to five years of supervised release.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Acting U.S. Attorney Honig credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Special Agent in Charge Jeffrey L. Matthews; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; officers of the N.J. State Police, under the direction of Col. Patrick J. Callahan; officers of the Paterson Police Department, under the direction of Director Jerry Speziale and Police Chief Ibrahim Baycora; detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia Valdes; and the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to today’s sentencing. She also thanked the U.S. Marshals Service, the Bergen County Sheriff's Office and the Belleville and Livingston police departments for their assistance with the case.
The government is represented by Assistant U.S. Attorney Francesca Liquori, of the Organized Crime and Gangs Unit.
Owner of Counseling Agency and Supervising Manager Plead Guilty to Conspiracy to Commit Healthcare Fraud ChargesRead the Press Release
SHREVEPORT, La. - Acting United States Attorney Alexander C. Van Hook announced that two individuals have entered guilty pleas before United States District Judge Donald E. Walter in connection with a conspiracy to commit healthcare fraud and wire fraud.
Marty T. Johnson, 59, of Shreveport, Louisiana and Keesha Dinkins, 45, of Bossier City, each appeared in United States District Court on October 25, 2021 and pleaded guilty to federal charges. Johnson pleaded guilty to a Bill of Information charging him with conspiracy to commit healthcare fraud and wire fraud. Dinkins pleaded guilty to a Bill of Information charging her with misprision of a felony charge of healthcare fraud. Johnson and Dinkins each admitted to defrauding the Medicaid Program out of $3.5 million.
According to information presented to the court, Johnson owned and operated Positive Change Counseling Agency (Positive Change) located in Shreveport, Louisiana, from January 2013 to January 2018. Keesha Dinkins was a manager and supervisor at Positive Change. Positive Change provided mental health rehabilitation and related services to Medicaid beneficiaries in the Caddo and Bossier Parish areas. From 2014 to January 2018, Johnson submitted and caused to be submitted fraudulent claims for mental health rehabilitation and non-emergency transportation services on behalf of Positive Change. Dinkins knew that Johnson submitted these fraudulent claims that she and Johnson both knew were not performed or rendered. These fraudulent claims resulted in Positive Change receiving payments from Medicaid to which it was not entitled.
Johnson admitted to paying individuals money to enroll with Positive Change, increasing the capacity for Positive Change to bill Medicaid for services that were not rendered. Johnson instructed employees, and Dinkins supervised those employees, at Positive Change to create false client files to conceal from Medicaid and insurance company auditors and inspectors that it had not performed the services related to its previously submitted claims which had already been reimbursed by Medicaid. In order to create these false client files, sections from different client documents were physically cut to create inserts which were glued into blank client log templates. These templates with the glued inserts were then photocopied to create the appearance of legitimate documents. Johnson and Dinkins supervised and knowingly and willfully instructed the employees that were creating these false client files to place the false and fictitious photocopied, cut and pasted, documents into the client files. Johnson and Dinkins knew that these false client files were used to conceal from Medicaid officials that Positive Change did not render the services in the claims submitted by it and paid by Medicaid.
In addition, Johnson knowingly caused Positive Change to use Medicaid recipients’ names and identification information without their knowledge or consent to submit fraudulent claims for mental health rehabilitation and non-emergency transportation.
Johnson faces a maximum sentence of 5 years in prison, 2 years of supervised release, and a fine of up to $250,000. Dinkins faces a maximum sentence of 3 years in prison, 1 year of supervised release, and a find of up to $250,000.
The U.S. Department of Health and Human Services – Office of Inspector General, Louisiana State Attorney General’s Office - Medicaid Fraud Control Unit, and FBI are investigating this case and it is still ongoing. Assistant U.S. Attorneys Earl M. Campbell and Cadesby B. Cooper are prosecuting the case.
If you have any information pertaining to this or any other type of Medicaid fraud, please contact the U.S. Department of Health and Human Services – Office of Inspector General at 1-800-HHS-TIPS (1-800-447-8477) or the Louisiana Medicaid Fraud Hotline at 1-800-488-2917.
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Non-Profit Ceo Sentenced to Two Years in Federal Prison After Pleading Guilty to Wire Fraud in Connection with the Misuse of Federal Funds Intended for the Treatment of Survivors of Domestic Violence and Sexual AssaultRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Glenda Hodges, age 72, of Clinton, Maryland, yesterday to two years in federal prison, followed by three years of supervised release, after Hodges pleaded guilty to two counts of wire fraud, in connection with the misuse of federal funds, and other fraud related to non-profit and for-profit entities that Hodges operated, and additional fraud committed while Hodges was on pretrial release for the wire fraud charges. Judge Xinis also ordered Hodges to forfeit $268,573.41 through a money judgment and to pay restitution in the full amount of the victims’ losses, which is $295,060.48.
The guilty plea and sentence were announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge D. Nichole Fleming of the U.S. Department of Justice Office of Inspector General, Fraud Detection Office; Maryland State Prosecutor Charlton T. Howard III; and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
“Glenda Hodges not only defrauded the government and taxpayers, she also abused the trust of elderly victims, taking their money to pay her personal expenses and leaving them in debt,” said United States Attorney Erek L. Barron. “Perpetrators of this type of egregious fraud will be prosecuted to fullest extent of the law.”
According to Hodges’ plea agreement, Hodges owned and was the Chief Executive Officer of Still I Rise Incorporated, a non-profit entity which purported to provide services and resources to minority survivors of domestic violence, sexual assault and stalking; Still I Rise Comprehensive Support & Training Services LLC (“CSST”), a for-profit entity; and the Women’s Wellness Center (WWC), a for-profit medical weight loss clinic operated under the umbrella of CSST. Between 2010 and 2017, Hodges was awarded more than $2 million in grants from the United States Department of Justice’s (“DOJ”) Office of Violence Against Women (“OVW”) and Prince George’s County to implement a violence against women program through Still I Rise.
As detailed in her plea agreement, the three grants that DOJ OVW awarded Hodges and Still I Rise were authorized only for the stated purpose of implementing Still I Rise’s non-profit program to address violence against women; specifically, to provide community services related to violence against women, including crisis intervention, support groups, financial and employment counseling, material assistance, job training, advocacy, court and medical accompaniment, language services, and transportation, and to provide a $12,000 stipend each year to Hodges as the Director of Still I Rise.
Hodges admitted that she converted funding from the grant awards to her personal benefit and to pay WWC payroll and other WWC expenses. By 2016, Hodges had exhausted the grant funding and her companies were financially distressed. Hodges then used fraudulent means to inject additional funding into WWC and Still I Rise.
Specifically, Hodges admitted that on October 9, 2015, she caused $134,800 to be stolen from Victim 1—a mutual fund in Pennsylvania—and wired into a bank account associated with Still I Rise, and then used the stolen funds for expenditures at WWC and for her personal benefit. In addition, on April 8, 2016, Hodges deposited a $72,938 altered business check related to a federal cancer research grant that was stolen from Victim 2, a prominent university in Texas, into a different bank account opened in the name of Still I Rise and over which Hodges was the sole authorized signer.
Further, between March 10 and August 26, 2016, Hodges fraudulently opened credit accounts at two financial institutions using the identifying information of Victim 3, an elderly volunteer at Still I Rise, without the victim’s knowledge or permission, accumulating at least $40,000 in debt. Hodges admitted that, to secure one of the lines of credit, she had Victim 3 medically transported to a nearby bank. When Victim 3 was brought to the bank, Victim 3 was in pain and in a wheelchair, and had an antibiotic catheter line running to her heart. When the loan for which Hodges transported Victim 3 was not approved, Hodges used Victim 3’s personal information to acquire a credit card in Victim 3’s name, maxed out the $25,000 limit on the card and failed to make any payments on the debt. Hodges used the funds to pay for expenses such as Hodges’ homeowners’ insurance, internet service, Medicare services, and car repairs.
Finally, Hodges admitted that between October 9, 2020 and October 21, 2020, after her initial indictment and while she was on pretrial release, Hodges defrauded a fourth victim by claiming she would monitor the victim’s finances while the victim prepared to move out of state. Hodges assured the victim that she would return the funds once the victim was settled in her new location. Hodges drove the victim to her financial institution and procured a check for $71,731.85, which Hodges deposited into her own bank account. Hodges spent the victim’s money on personal expenditures, without the victim’s authorization, and failed to repay the victim.
Hodges admitted that the actual loss to OVW and Victims 1, 2, 3, and 4 was at least $295,060.48.
United States Attorney Erek L. Barron commended the Department of Justice Office of Inspector General, the Office of the Maryland State Prosecutor, and the FBI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Kelly O. Hayes and Caitlin R. Cottingham, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help elderly victims, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/elder-justice-initiative.
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Nine Therapists Arrested in Scheme to Defraud Program for Developmentally Disabled ChildrenRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Marsiste Adolphe, Margaret Dominique-McLain, Mercedes Falcon, Tracy Gibson, Roselee Johnson, Jeannette Monclova, Manuel Moore, Kikelomo Ogundiran, and Dino Paolicelli with stealing more than $3 million from the New York State Early Intervention Program (the “EIP”), including more than $993,000 from Medicaid and more than $1,998,000 from the New York City Department of Health and Mental Hygiene (“NYC DOHMH”), an agency that receives federal funds. The EIP is a New York State program that provides remedial services to developmentally delayed children from birth to age three, such as physical therapy, occupational therapy, speech therapy, special instruction and social work services. The defendants, all EIP therapists, were arrested earlier today and are scheduled to make their initial appearance this afternoon before United States Chief Magistrate Judge Cheryl L. Pollak.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Margaret Garnett, Commissioner, New York City Department of Investigation (DOI), announced the charges.
“As alleged, the defendants exploited disabled infants and toddlers, the youngest and most vulnerable among us, to enrich themselves by millions of dollars,” stated United States Attorney Peace. “This Office and our law enforcement partners will continue to vigorously protect government programs from fraud and abuse that not only hurts taxpayers, but also deprives developmentally delayed children from receiving much-needed services.” Mr. Peace also thanked the office of the Special Commissioner of Investigation for the New York City School District for its assistance on the case.
“Defrauding government programs produces a ripple effect that trickles down to taxpayers who foot the bill for fraud schemes. As alleged in this complaint, however, the defendants not only stole money from the system itself, they also prevented children with EIPs from accessing the amount of care they were authorized to receive. When systems designed to help our most vulnerable are manipulated in this way, rest assured federal charges will be applied,” stated FBI Assistant Director-in-Charge Driscoll.
“This criminal case exemplifies the broad and damaging impact of corruption. These nine defendants not only stole more than $3.3 million in public funds but also robbed more than 200 New York City children of essential Early Intervention services they were entitled to receive, according to the charges. The City Department of Health and Mental Hygiene (DOHMH) was instrumental in identifying billing discrepancies involving Early Intervention specialists and then referring them to DOI for further investigation. I thank our law enforcement partners, the FBI and the U.S. Attorney’s Office for the Eastern District of New York for their collaboration on this important investigation; and the DOHMH for spotting the inconsistencies and immediately referring them. This type of cooperation among agencies and law enforcement is essential in combatting corruption,” stated DOI Commissioner Garnett.
As set forth in the complaint, between January 1, 2015 and June 30, 2019, the defendants allegedly submitted fraudulent documentation for thousands of EIP therapy sessions that never took place. The defendants collectively received millions of dollars as payments for these non-existent EIP therapy sessions. In addition, because each EIP recipient is only entitled to a fixed number of sessions, fraudulently billing for sessions that do not take place deprives disabled infants and toddlers of EIP therapy sessions they are entitled to receive.
For example, Adolphe claimed to provide EIP therapy sessions every single day of 2016, including on Christmas and Thanksgiving. Gibson claimed to provide EIP therapy sessions every day from April 2, 2017 to July 31, 2018. Between May 8, 2016 and September 8, 2018, a period of 854 days, Manuel Moore claimed to provide EIP therapy sessions every day except January 4, 2018. Paolicelli claimed to provide EIP therapy sessions a total of 1,086 days out of 1,096 days between January 1, 2016 and December 31, 2018. Falcon claimed to provide EIP therapy sessions from early in the morning and until late into the evening — sometimes claiming that sessions began at 4:00 a.m. or ended at 3:00 a.m. The evidence also revealed that Ogundiran’s travel records reflected that she billed for at least 300 EIP therapy sessions at times when she was not in New York. Moore’s cell phone records reflected that he was not in the area of claimed EIP sessions on at least 6,025 sessions, and Falcon’s phone records also reflected that she was not in the area of claimed EIP sessions on at least 6,100 occasions.
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, they each face a statutory maximum of 10 years of imprisonment.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Kaitlin Farrell and Jonathan Siegel are in charge of the prosecution.
The Defendants:
MARSISTE ADOLPHE
Age: 58
Brooklyn, New YorkMERCEDES FALCON
Age: 57
Brooklyn, New YorkKIKELOMO OGUNDIRAN
Age: 54
Dix Hills, New YorkMANUEL MOORE
Age: 36
Manhattan, New YorkROSELEE JOHNSON
Age: 73
Brooklyn, New YorkJEANETTE MONCLOVA
Age: 69
North Bellmore, New YorkMARGARET DOMINIQUE-MCLAIN
Age: 54
Mastic, New YorkTRACY GIBSON
Age: 37
Queens, New YorkDINO PAOLICELLI
Age: 58
Staten Island, New YorkE.D.N.Y. Docket No. 21-MJ-1205
Nine Defendants Arrested and Multiple Search Warrants Executed in Crackdown of Rochester Drug Trafficking OrganizationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that nine defendants were arrested and charged by separate criminal complaints with drug related charges. The charges include conspiracy to possess with intent to distribute, and distributing, five kilograms or more of cocaine, which carries a minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine. Named in the complaints are:
Richmond Sutton; Roland Miller; Kenneth Sutton; Mohamed Diallo; Marcus Holmes; Dejounge Sharpe; Pamela Green; Daryl Green; and
Tavares Wilson.Investigators also executed a total of 32 search warrants on houses and vehicles associated with the organization during today’s arrests.
Assistant U.S. Attorney Katelyn M. Hartford, who is handling the case, stated that the Drug Enforcement Administration and the Rochester and Greece Police Departments began investigating the narcotics trafficking of Richmond A. Sutton and the other defendants in 2020. The investigation revealed that they were responsible for the distribution of kilogram quantities of cocaine in the Rochester area.
The complaints are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division; Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino; Immigration and Customs Enforcement, under the direction of Acting Field Office Director Thomas Brophy; the Internal Revenue Service, Criminal Investigation Division, under the direction of Thomas Fattorusso, Acting Special Agent-in-Charge, the New York State Police, under the direction of Major Barry Chase; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; the Ontario County Sheriff’s Office; the Rochester Police Department, under the direction of Interim Police Chief David M. Smith; the Greece Police Department, under the direction of Chief Andrew Forsythe; the Brighton Police Department, under the direction of Chief David Catholdi; and the Greater Rochester Area Narcotics Enforcement Team.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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New York Man Admits Role in Bank FraudRead the Press Release
CAMDEN, N.J. – A Bronx, New York, man today admitted his role in a scheme to steal bank customer identities and then use the information to steal more than $600,000, Acting U.S. Attorney Rachael A. Honig announced.
Lamar Melhado, 32, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to Count 1 of an indictment charging him with conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
From August 2016 through August 2017, Melhado conspired with Jamere Hill-Birdsong, of Camden, and others, to defraud a Mount Laurel, New Jersey, bank. Hill-Birdsong worked inside the call center and recruited other call center employees to participate in the scheme by stealing the identities and account information of customers who called into the bank’s call center. The conspirator bank employees would then take photographs or screenshots of the bank customers’ account information and signatures and would send that information to Hill-Birdsong and Melhado. The conspirators then had phony identification documents made in the names of the bank customers, and used various runners to go into bank branches and make unauthorized cash withdrawals. The conspirators also used the stolen identity information to conduct unauthorized online transfers of monies from the customer’s accounts.
The conspiracy to commit bank fraud charge to which Melhado pleaded guilty carries a maximum penalty of 30 years in prison and a maximum fine of $1 million, or twice the gross gain or loss from the offense, whichever is greatest. In his plea agreement, Melhado agreed to make restitution for the full amount of the loss, which is estimated at $604,000. Sentencing for Melhado is scheduled for March 7, 2022.
Acting U.S. Attorney Honig credited agents of the FBI’s South Jersey Resident Agency, under the direction of Acting Special Agent in Charge Brian Herrick in Philadelphia, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney’s Office in Camden.
Mobile Doctor Sentenced to Four Years for Role in Major Compounding Pharmacy Fraud ConspiracyRead the Press Release
Tuscaloosa, Ala. – A Mobile-area doctor was sentenced today for her role in a major compounding pharmacy fraud scheme, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr., U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Derrick L. Jackson, Defense Criminal Investigative Service Special Agent in Charge Cynthia Bruce, U.S. Postal Inspection Service Acting Inspector-in-Charge, Houston Division, Dana Carter, and IRS Criminal Investigations Atlanta Field Office Special Agent in Charge James Dorsey.
Chief U.S. District Judge L. Scott Coogler sentenced Dr. Michelle Martine Jackson, 55, of Fairhope, Alabama, to four years in prison. Jackson was also ordered to pay forfeiture of $53,000 and restitution of $3,920,584.84. Jackson pleaded guilty in June to conspiracy to commit health care fraud.
“This defendant abused the power of her prescription pad, breached the public’s trust, and cost insurers millions of dollars as a result,” U.S. Attorney Escalona said. “Her sentence is a reminder that health care fraud is a serious crime and carries serious consequences.”
Global, a pharmacy based in Haleyville, Alabama, has been the subject of a large-scale health care fraud investigation that has resulted in nearly thirty convictions to date. The Global health care fraud conspiracy involved Global managers directing Global employees to get medically unnecessary drugs for themselves, family members, and friends, changing prescriptions to add non-prescribed drugs because insurance would pay for them, automatically refilling prescriptions regardless of patient need, routinely waiving and discounting co-pays to induce patients to get and keep medically unnecessary drugs, and billing for drugs without patients’ knowledge. When prescription drug administrators attempted to police this conduct, the conspirators hid their fraud and obstructed detection efforts—including by lying to auditors and diverting their billing through affiliated pharmacies. The scheme targeted multiple health insurance plans, including the pharmacy’s Blue Cross Blue Shield of Alabama plan, as well as plans providing health insurance to the elderly, disabled, members of the military, and veterans—Medicare, TRICARE, and CHAMPVA, among others.
As part of the scheme, certain Global sales reps paid kickbacks to medical prescribers in exchange for writing prescriptions. Michelle Jackson was one of those prescribers. As part of her plea agreement, Jackson admitted that she had received cash kickbacks for writing prescriptions. She admitted that she wrote prescriptions for Global drugs that were not medically necessary, including for the sales rep’s family and friends, individuals Jackson had never treated, and family of Jackson’s staff. For example, Jackson wrote the sales rep’s pregnant daughter prescriptions for a drug that was contraindicated for pregnant women. Jackson also pre-signed blank prescription forms to enable co-conspirators to issue prescriptions under her name simply by checking boxes on the prescription forms.
The FBI, HHS-OIG, DCIS, USPIS, and IRS-CI investigated the cases. Assistant U.S. Attorneys J.B. Ward, Edward Canter, and Don Long prosecuted the case. The Veteran Affairs Office of Inspector General Criminal Investigations Division aided in the investigation.
Michigan Man Pleads Guilty to Traveling to the Binghamton Area Intending to Engage in Sexual Conduct with a ChildRead the Press Release
SYRACUSE, NEW YORK – Robert Hardin, age 76, of Kalamazoo, Michigan, pled guilty today to traveling to New York from Michigan for the purpose of engaging in illicit sexual conduct with an 11-year-old child. The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Hardin admitted that from July of 2021 through August of 2021 he exchanged sexually explicit messages via an online social networking application and text message with an undercover officer posing as the mother of 11-year-old girl. In these messages, Hardin expressed a desire to engage in sexually explicit conduct with the child. Hardin further admitted that on August 24, 2021, he traveled from Michigan to New York in order to meet with the child and engage in sexual conduct with her at a location in the Binghamton area. Hardin was arrested after arriving at the location and has been in custody since that date.
Sentencing is scheduled for March 1, 2022, in Binghamton, before Senior United States District Judge Thomas J. McAvoy. Hardin faces up to 30 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of at least 5 years and up to life.
A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Upon his release from prison Hardin will be required to register as a sex offender in any state where he resides, is employed, or is a student.
This case was investigated by the FBI Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI). The case is being prosecuted by Special Assistant U.S. Attorney Adrian S. LaRochelle as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s 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 https://www.justice.gov/psc.
Miami Man Sentenced to 5 Years in Prison for Possession of Firearms in Furtherance of Drug Trafficking CrimesRead the Press Release
A Miami, Oklahoma, man was sentenced Monday for possessing firearms as part of a methamphetamine distribution operation.
U.S. District Judge Claire V. Eagan sentenced Kenneth Dean Rosenberg, 38, to 60 months in federal prison followed by five years of supervised release.
“Guns and methamphetamine are a volatile combination. They fuel crime, violence and suffering in our neighborhoods,” said Acting U.S. Attorney Clint Johnson. “My office and our law enforcement partners will continue to protect communities from this deadly duo and hold drug distributors accountable for their crimes.”
Rosenberg admitted in a plea agreement that he was in possession of a Lorcin Engineering Company, Inc. .380 ACP caliber single-action pistol and methamphetamine on May 23, 2020, when he and codefendant Adam Douglas Sherwood were stopped by Tulsa Police officers. He admitted that the two men conspired to supply methamphetamine to buyers in return for payment. Rosenberg’s role in the drug operation included communicating with Sherwood and others regarding potential drug sales as well as driving Sherwood and the methamphetamine to the sales in a pick-up that belonged to Sherwood’s father. According to Rosenberg’s statement, the methamphetamine, cash, baggies, scales, and firearms that officers discovered during the stop were all used to further the drug operation.
Codefendant Adam Sherwood’s trial is set to begin in November 2021. Sherwood is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Tulsa Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorneys Justin G. Bish, Steven J. Briden, and Thomas E. Duncombe are prosecuting the case.
Meriden Man Charged with Cocaine Trafficking OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, announced that a federal grand jury in New Haven returned an indictment today charging JEAN CARLOS MERCADO, 32, of Meriden, with cocaine trafficking offenses stemming from his alleged participation in a drug trafficking organization that used the U.S. Mail to ship kilogram quantities of cocaine from Puerto Rico to Meriden.
As alleged in court documents, in October 2020, law enforcement identified suspicious parcels that were being mailed from Puerto Rico to an address in Meriden. On October 26, 2020, investigators identified Mercado after he picked up a parcel from that location. After Mercado picked up another parcel from the location on November 6, 2020, investigators coordinated a traffic stop of his vehicle, which was unregistered, and towed the vehicle and seized the parcel. A court-authorized search of the parcel revealed two kilograms of cocaine. In the following months, Mercado conspired with others to pick up postal parcels, and law enforcement seized four more kilograms of cocaine linked to Mercado.
The indictment charges Mercado with one count of conspiracy to possess with intent to distribute five kilograms or more of cocaine, which carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life, and one count of possession with intent to distribute 500 grams or more of cocaine, which carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
Mercado was arrested on a federal criminal complaint on July 21, 2021, and is released on a $100,000 bond.
Acting U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Drug Enforcement Administration New Haven Task Force and the U.S. Postal Inspection Service, with assistance from the Meriden Police Department.
The case is being prosecuted by Assistant U.S. Attorney Konstantin Lantsman through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Marion Man Pleads Guilty to Attempting to Possess Fentanyl with Intent to DistributeRead the Press Release
ABINGDON, Va. – A Marion, Virginia man pleaded guilty last week to one count of possession with the intent to distribute 40 grams or more of fentanyl.
According to court documents, Anthony P. Arrindell, 19, ordered illegal fentanyl pills through the mail. The pills resembled a pharmaceutical preparation of oxycodone-hydrochloride pills, but the pills were inconsistent in size, shape, and color as compared to pharmaceutical-grade pills. Pills of this type are sometimes referred to as “pressed” or “M30” pills.
In early 2021, law enforcement began investigating a flood of illegal pill distribution in Smyth County, Virginia. On July 21, 2021, United States Postal Inspection Service investigators identified and intercepted a suspected drug parcel. Investigators executed a federal search warrant on the parcel and found it contained what appeared to be pressed fentanyl pills. There were more than 1,700 pills in the package, with a total weight of approximately 188 grams. Lab testing later confirmed that the pills contained fentanyl.
On August 16, 2021, investigators intercepted another suspected drug parcel that had the same California return address as the July parcel. Investigators conducted a controlled delivery of this parcel from the Post Office in Marion. Arrindell came to the Post Office, collected the parcel, and left the Post Office with the parcel. Law Enforcement confronted Arrindell outside the Post Office. Inside the parcel, investigators found approximately 22.7 grams of pressed pills.
“Communities across Virginia have been ravaged by the spread of opioids, leading to higher levels of substance abuse disorder and overdose deaths,” United States Attorney Christopher R. Kavanaugh said today. “When individuals bring these substances into our communities, this United States Attorney’s Office, along with our partners in law enforcement, will act to prosecute those offenders in order to protect the community, especially those struggling to overcome addiction.”
Arrindell, who is scheduled to be sentenced on January 19, 2022, faces a mandatory minimum of five years in prison up to a maximum sentence of forty years in prison. A federal district court judge will determine his sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Smyth County Sheriff’s Office, the U.S. Postal Inspection Service, the U.S. Postal Service Office of Inspector General, and the Federal Bureau of Investigation investigated the case, and Assistant U.S. Attorney Whit D. Pierce is prosecuting the case.
Man Who Trafficked Deadly Fentanyl Sentenced to More Than 12 Years in Federal PrisonRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that JUAN REYES, 28, last residing in West Hartford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 151 months of imprisonment, followed by five years of supervised release, for trafficking fentanyl.
According to court documents and statements made in court, the FBI’s Safe Streets Task Force and the Norwich Police Department launched an investigation after several fatal and non-fatal overdoses occurred in a short period of time in eastern Connecticut. Investigators determined that, beginning at least as early as January 2017 and continuing to July 2018, Reyes worked with Michael Nieves to supply heroin and fentanyl to other distributors, including individuals who regularly traveled from eastern Connecticut to Hartford to purchase the drugs. Those individuals then sold the drug to customers in the Norwich and New London areas.
On July 5, 2017, Norwich Police officers responded to a residence on the report of an overdose. The victim, a 34-year-old male, was transported to the hospital where he died. The Office of the Chief Medical Examiner subsequently determined the victim’s cause of death to be “acute fentanyl intoxication.” The investigation revealed that Christopher Dubicki, of Norwich, sold the fentanyl to the victim after previously purchasing it from Reyes and Nieves.
Investigators have connected six other overdoses, three fatal and three non-fatal, to drugs that were supplied by Reyes and Nieves.
Reyes has been detained since his federal arrest on June 29, 2018. On June 9, 2021, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl.
Nieves, 30, of Hartford, pleaded guilty to the same charge and is scheduled to be sentenced on October 28. He is also detained.
Dubicki pleaded guilty to fentanyl, heroin and cocaine distribution charges and is also detained while awaiting sentencing, which is scheduled for November 16.
This investigation has been conducted by the FBI’s Safe Streets Task Force and the Norwich Police Department. The case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
Man Sentenced to Prison after String of Grocery Store RobberiesRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 11 years in prison for committing robberies at four commercial grocery stores over the course of four days before taking law enforcement on a high-speed car chase.
According to court documents, on November 20, 2020, Michael B. Bishop, 48, began his conduct after stealing a friend’s Ford F-150 truck. Over the next four days, Bishop robbed a Whole Foods Market in Glen Allen, a Wegmans in Henrico, a Trader Joe’s in Richmond, and a Publix in Midlothian. At each robbery, Bishop entered the grocery store wearing a face mask. Aside from the Whole Foods Market robbery, Bishop explicitly stated that he had a firearm or appeared to hold his hand in his pocket as if he had a firearm. At the Trader Joe’s robbery, Bishop brandished a firearm at the victim cashier.
Based on witness interviews and review of surveillance video from Publix and Wegmans, investigators from Henrico, Richmond, and Chesterfield identified Bishop as the main suspect and obtained an arrest warrant. When law enforcement sought to arrest Bishop on November 25, 2020, Bishop entered the F-150 and took officers on a nearly 10-minute high-speed pursuit across several highways, including I-95 northbound and I-295 southbound. Bishop was only apprehended after officers used a pitting maneuver to stop the vehicle.
During an authorized search of the F-150 that Bishop was driving during the high-speed pursuit, law enforcement recovered clothing items matching those worn by the suspected robber as well as items in the bed of the truck that were notable from exterior surveillance at one of the grocery stores.
At the time of the robberies, Bishop was probation in Henrico County following time served for committing two robberies in 2013.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck.
Assistant U.S. Attorney Kenneth R. Simon, Jr. prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-16.
Leader of Money Laundering Network Responsible for Laundering Millions of Dollars in Drug Proceeds Sentenced to 15 Years in PrisonRead the Press Release
The leader of a money laundering network was sentenced today to 15 years in prison for laundering tens of millions of dollars in drug proceeds on behalf of foreign drug trafficking organizations.
According to court documents, Xizhi Li, 48, a U.S. citizen who previously resided in Mexico, led a years-long scheme to launder money on behalf of transnational drug trafficking organizations. To carry out the scheme, Li and his conspirators used a foreign casino; foreign and domestic front companies; foreign and domestic bank accounts (some of which were opened under fictitious identities; encrypted communications platforms; and false identification documents. Li often dealt directly with members of drug trafficking organizations or their representatives to obtain “contracts” to move their drug proceeds. Once Li and his co-conspirators obtained a “contract” to launder drug proceeds, they would engage in financial transactions that were designed to conceal the illicit source of the original proceeds in return for the payment of commissions.
On Aug. 2, Li pleaded guilty to one count of conspiring to commit money laundering. Today, Li signed a consent order of forfeiture for $10,000,000 to the United States pursuant to his plea.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division and U.S. Attorney Jessica D. Aber of the Eastern District of Virginia made the announcement.
The Drug Enforcement Administration’s (DEA) Louisville Division and the DEA’s Special Operations Division – Bilateral Investigations Unit investigated this case, with assistance from the DEA’s Office of Special Intelligence, Document and Media Exploitation Unit and the DEA’s offices in New York, Chicago, Los Angeles, Houston, Omaha, Atlanta, Newark, Portland Dallas, Mexico City, Merida (Mexico), Guatemala City, Belmopan (Belize), Beijing, Hong Kong, Jakarta (Indonesia), Manila (Philippines), Tokyo, Seoul, Bangkok, Lima (Peru), and Canberra (Australia). The U.S. Department of State’s Diplomatic Security Service (DSS), the U.S. Department of Homeland Security’s Immigration and Customs Enforcement, Homeland Security Investigations (HSI), U.S. Postal Inspection Service, INTERPOL Washington, the U.S. National Central Bureau, and U.S. Customs and Border Protection (CBP) National Targeting Center were partners in the investigation of this case.
This prosecution is part of two investigations supported by the Organized Crime Drug Enforcement Task Force, known as Operation Dark Castle and Operation Taishan Triangle.
Trial Attorneys Kerry Blackburn, Mary K. Daly, and Stephen A. Sola of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys David A. Peters and Michael P. Ben’Ary of the U.S. Attorney’s Office for the Eastern District of Virginia prosecuted the case.
Leader of Money Laundering Network Responsible for Laundering Millions of Dollars in Drug Proceeds SentencedRead the Press Release
ALEXANDRIA, Va. – A Chinese national and naturalized U.S. citizen was sentenced today to 15 years in prison for conspiring to launder tens of millions of dollars in drug proceeds on behalf of foreign drug trafficking organizations.
According to court documents, Xizhi Li, 48, who previously resided in Mexico, led a years’ long conspiracy to launder money on behalf of transnational drug trafficking organizations. To carry out the scheme, Li and his conspirators used a foreign casino; foreign and domestic front companies; foreign and domestic bank accounts, some of which were opened under fictitious identities; encrypted communications platforms; and false identification documents. Li often dealt directly with members of drug trafficking organizations or their representatives to obtain “contracts” to move their drug proceeds. Once Li and his co-conspirators obtained a “contract” to launder drug proceeds, they would engage in financial transactions that were designed to conceal the illicit source of the original funds in return for the payment of commissions. On August 2, Li pleaded guilty to one count of conspiring to commit money laundering. Today, Li signed a consent order of forfeiture for $10,000,000 to the United States pursuant to his plea.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
The DEA’s Louisville Division and the DEA’s Special Operations Division – Bilateral Investigations Unit investigated this case, with assistance from the DEA’s Office of Special Intelligence, Document and Media Exploitation Unit and the DEA’s offices in New York, Chicago, Los Angeles, Houston, Omaha, Atlanta, Newark, Portland Dallas, Mexico City, Merida (Mexico), Guatemala City, Belmopan (Belize), Beijing, Hong Kong, Jakarta (Indonesia), Manila (Philippines), Tokyo, Seoul, Bangkok, Lima (Peru), and Canberra (Australia). The U.S. Department of State’s Diplomatic Security Service (DSS), the U.S. Department of Homeland Security’s Immigration and Customs Enforcement, Homeland Security Investigations (HSI), U.S. Postal Inspection Service, Interpol, and U.S. Customs and Border Protection National Targeting Center (CBP – National Targeting Center) were partners in the investigation of this case.
Assistant U.S. Attorneys David A. Peters and Michael P. Ben’Ary and Trial Attorneys Kerry Blackburn, Mary K. Daly, and Stephen A. Sola of the Justice Department’s Money Laundering and Asset Recovery Section prosecuted the case.
This prosecution is part of two Organized Crime Drug Enforcement Task Force (OCDETF). investigations known as Operation Dark Castle and Operation Taishan Triangle. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-334.
Lawrenceburg Man Sentenced to 180 Months for Armed Methamphetamine TraffickingRead the Press Release
FRANKFORT, Ky.— A Lawrenceburg, Ky., man, Denero Evans, 32, was sentenced to 180 months in federal prison on Tuesday, by U.S. District Judge Gregory VanTatenhove, after pleading guilty to possession with intent to distribute 500 grams or more of methamphetamine and possession of a firearm in furtherance of drug trafficking.
According to Evans’ guilty plea agreement, on January 3, 2021, law enforcement conducted a traffic stop on his vehicle and found him in possession of three bags of marijuana, a backpack with a loaded .380 pistol, and three cellophane wrapped packages containing 1,306 grams of methamphetamine. There was also $10,000 in cash wrapped in a rubber band in the driver’s side floorboard.
Evans had previously been convicted of trafficking in controlled substances, in October 2016, in Franklin Circuit Court.
Evans pleaded guilty in July 2021.
Under federal law, Evans must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; and Brian Taylor, Chief of Police, Lawrenceburg Police Department, announced the sentence.
The investigation was conducted by the DEA and the Lawrenceburg Police Department. The United States was represented by Assistant U.S. Attorney Emily Greenfield.
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Las Vegas Woman Pleads Guilty to Using at Least 40 Stolen Identities to Fraudulently Collect over $175,000 in Unemployment Insurance BenefitsRead the Press Release
LAS VEGAS, Nev. – A Las Vegas woman pleaded guilty today to using at least 40 stolen identities to fraudulently collect approximately $175,622 in unemployment insurance benefits from the California Employment Development Department (EDD), the administrator of the federally funded unemployment insurance benefit program for residents of the State of California.
According to court documents and admissions made in court, Danielle Lacharis Buck (aka Danielle Lacharis Lakey), 45, participated in a scheme from September 2010 to April 2019 to defraud the California EDD into paying her approximately $175,622 in unemployment insurance benefits. As part of the scheme, Buck obtained stolen identities through her job in the medical industry. She used her access to patient and co-worker information to steal personal identifying information — such as names, dates of birth, and social security numbers of unsuspecting individuals — and then electronically filed false unemployment claims using the stolen names and information. In total, Buck filed more than 50 false unemployment insurance claims using at least 40 different stolen identities. She withdrew cash from an unemployment insurance benefits debit cards at ATMs in the Las Vegas and Los Angeles metropolitan areas.
Buck pleaded guilty to one count of mail fraud and one count of aggravated identity theft. She faces a statutory maximum penalty of 20 years in prison for mail fraud and a mandatory minimum two-year term in prison for aggravated identity theft. U.S. District Judge Kent J. Dawson scheduled sentencing for January 25, 2022.
Assistant U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Quentin Heiden of the U.S. Department of Labor Office of Inspector General (DOL-OIG), Los Angeles Region made the announcement.
The case was investigated by the DOL-OIG. Assistant U.S. Attorney Eric Schmale is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
To learn more about the Department of Justice’s COVID response, visit: https://www.justice.gov/coronavirus.
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KC Man Who Stole Gun from Murder Victim Sentenced for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man who stole a firearm from the victim of a fatal shooting in a liquor store parking lot has been sentenced in federal court for illegally possessing the firearm.
James A. Jones, 34, was sentenced by U.S. District Judge Brian C. Wimes on Monday, Oct. 25, to five years and 11 months in federal prison without parole.
On April 2, 2021, Jones pleaded guilty to being a felon in possession of a firearm.
According to court documents, Kansas City police officers responded to a shooting that occurred at 11816 Blue Ridge Blvd., Kansas City, Mo., at about 2:45 a.m. on Nov. 9, 2020. The shooting victim was transported to an area hospital, where he was pronounced deceased.
Surveillance video showed the shooting victim approach a vehicle while retrieving a Sig Sauer .357-caliber handgun from his waistband. When he was shot, the firearm landed on the ground a few feet away. As the shooting victim lay on the ground, Jones walked up and picked up the handgun then walked away.
Police officers arrested Jones the next day. Officers searched his vehicle and found the loaded Sig Sauer and approximately 83.5 grams of marijuana on the front passenger seat. Officers also found 11 counterfeit $100 bills in the center console.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Jones has prior felony convictions for robbery and being a felon in possession of a firearm.
This case was prosecuted by Assistant U.S. Attorney Brad K. Kavanaugh. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Iowa Man with Prior Federal Drug Conviction Pleads Guilty to Heroin and Firearm ChargesRead the Press Release
Steven Springer, 54, from Hampton, Iowa, pled guilty on October 21, 2021, in federal court in Sioux City, to conspiracy to distribute heroin while possessing a firearm in furtherance of that crime.
Springer was previously convicted on May 22, 2002, in the United States District Court for the Northern District of Iowa, of the manufacture of methamphetamine.
At the plea hearing, Springer admitted that between December 2020 and February 2021, he was involved in a conspiracy that distributed heroin and methamphetamine. Springer admitted to being paid to receive packages of meth and heroin from sources in Mexico, to redistribute those drugs to other persons as directed, and to wire drug proceeds back to the source in Mexico. On February 4, 2021, Springer ultimately received over 920 grams of heroin, hidden inside footwear, sent from Mexico to Iowa through the United States Postal Service. At the time of his arrest, Springer was also in possession of more than 14 grams of pure methamphetamine, a .380 caliber handgun, with loaded magazine, a small quantity of marijuana, and a quantity of psilocybin (mushrooms). Springer possessed the firearm for protection while distributing drugs. About one month previous to his receipt of the heroin, Springer had received approximately ½ pound of methamphetamine, from the same source in Mexico, which he redistributed in central Iowa.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Springer remains in custody of the United States Marshal and will remain in custody pending sentencing. Springer faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $8,000,000 fine, and eight years up to life of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Iowa Department of Narcotics Enforcement, Homeland Security Investigations, the Wright and Franklin County Sheriff’s Offices, and Iowa DCI Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-3013. Follow us on Twitter @USAO_NDIA.
Iowa Man with Prior Federal Drug Conviction Pleads Guilty to Another Federal Drug CrimeRead the Press Release
A man who conspired to distribute methamphetamine pled guilty October 21, 2021, in federal court in Sioux City.
Dustin Joe Martinez, 33, from Sutherland, Iowa, was convicted of conspiracy to distribute methamphetamine. Martinez was previously convicted of conspiracy to distribute methamphetamine within 1,000 feet of a school and possession with intent to distribute methamphetamine on June 3, 2016, in the United States District Court for the Northern District of Iowa.
At the plea hearing, evidence showed that from 2019 to approximately March 2021, Martinez and others distributed at least 250 grams of methamphetamine mixture and 100 grams of pure methamphetamine. On two separate occasions, in March of 2020 and March of 2021, Martinez was found in possession of approximately one ounce of methamphetamine which he intended to distribute to another person or persons.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Martinez remains in custody of the United States Marshal pending sentencing. Martinez faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $8,000,000 fine, and at least 8 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Iowa Division of Narcotics Enforcement, Spencer Police Department, O’Brien County Sheriff’s Office, and Iowa DCI Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4032. Follow us on Twitter @USAO_NDIA.
International Law Enforcement Operation Targeting Opioid Traffickers on the Darknet Results in 150 Arrests Worldwide and the Seizure of Weapons, Drugs, and over $31 MillionRead the Press Release
Today, the Department of Justice, through the Joint Criminal Opioid and Darknet Enforcement (JCODE) team joined Europol to announce the results of Operation Dark HunTor, a coordinated international effort on three continents to disrupt opioid trafficking on the Darknet. The operation, which was conducted across the United States, Australia, and Europe, was a result of the continued partnership between JCODE and foreign law enforcement against the illegal sale of drugs and other illicit goods and services. Operation Dark HunTor builds on the success of last year’s Operation DisrupTor and the coordinated law enforcement takedown earlier this year of DarkMarket, the world’s then-largest illegal marketplace on the Darknet. At the time, German authorities arrested the marketplace’s alleged operator and seized the site’s infrastructure, providing investigators across the world with a trove of evidence. Europol’s European Cybercrime Centre (EC3) and JCODE have since been compiling intelligence packages to identify key targets.
Following the DarkMarket takedown in January 2021, U.S. and international law enforcement agencies identified Darknet drug vendors and buyers, resulting in a series of complementary, but separate, law enforcement investigations. Operation Dark HunTor actions have resulted in the arrest of 150 alleged Darknet drug traffickers and other criminals who engaged in tens of thousands of sales of illicit goods and services across Australia, Bulgaria, France, Germany, Italy, the Netherlands, Switzerland, the United Kingdom, and the United States. Prior to, but in support of Operation Dark HunTor, Italian authorities also shut down the DeepSea and Berlusconi dark web marketplaces which boasted over 40,000 advertisements of illegal products. Four alleged administrators were arrested, and €3.6 million in cryptocurrencies were seized in coordinated U.S.-Italian operations.
Operation Dark HunTor resulted in the seizure of over $31.6 million in both cash and virtual currencies; approximately 234 kilograms (kg) of drugs worldwide including 152.1 kg of amphetamine, 21.6 kg of cocaine, 26.9 kg of opioids, 32.5 kg of MDMA, in addition to more than 200,000 ecstasy, fentanyl, oxycodone, hydrocodone, and methamphetamine pills, and counterfeit medicine ; and 45 firearms. Darknet vendor accounts were also identified and attributed to real individuals selling illicit goods on active marketplaces, as well as inactive Darknet marketplaces such as Dream, WallStreet, White House, DeepSea, and Dark Market.
Operation Dark HunTor led to 65 arrests in the United States, one in Bulgaria, three in France, 47 in Germany, four in the Netherlands, 24 in the United Kingdom, four in Italy, and two in Switzerland. A number of investigations are still ongoing.
“This 10-month massive international law enforcement operation spanned across three continents and involved dozens of U.S. and international law enforcement agencies to send one clear message to those hiding on the Darknet peddling illegal drugs: there is no dark internet. We can and we will shine a light,” said Deputy Attorney General Monaco. “Operation Dark HunTor prevented countless lives from being lost to this dangerous trade in illicit and counterfeit drugs, because one pill can kill. The Department of Justice with our international partners will continue to crack down on lethal counterfeit opioids purchased on the Darknet.”
“The men and women of the department’s Criminal Division, in close collaboration with our team of interagency and international partners, stand ready to leverage all our resources to protect our communities through the pursuit of those who profit from addiction, under the false belief that they are anonymous on the Darknet,” said Assistant Attorney General Kenneth A. Polite Jr of the Justice Department’s Criminal Division. “Only through a whole of government and, in this case, global approach to tackling cyber-enabled drug trafficking can we hope to achieve the significant results illustrated in Operation Dark HunTor.”
“The FBI continues to identify and bring to justice drug dealers who believe they can hide their illegal activity through the Darknet,” said FBI Director Christopher A. Wray. “Criminal darknet markets exist so drug dealers can profit at the expense of others’ safety. The FBI is committed to working with our JCODE and EUROPOL law enforcement partners to disrupt those markets and the borderless, worldwide trade in illicit drugs they enable.”
“Today, we face new and increasingly dangerous threats as drug traffickers expand into the digital world and use the Darknet to sell dangerous drugs like fentanyl and methamphetamine,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “These drug traffickers are flooding the United States with deadly, fake pills, driving the U.S. overdose crisis, spurring violence, and threatening the safety and health of American communities. DEA’s message today is clear: criminal drug networks operating on the Darknet, trying to hide from law enforcement, can no longer hide. DEA, the U.S. interagency, and our valued international partners, are committed to dismantling drug networks wherever they are, including on the Darknet.”
“Illicit darkweb marketplaces represent a significant threat to public health, economic, and national security,” said Acting Director Tae Johnson of U.S. Immigration and Customs Enforcement (ICE). “By working collaboratively and sharing intelligence across local, state, federal, and international law enforcement agencies, Homeland Security Investigations (HSI) and its partners are disrupting and dismantling transnational criminal organizations responsible for introducing dangerous narcotics and other contraband into our communities.”
“The dark web has become an underground facilitator of illegal commerce,” said Chief Postal Inspector Gary Barksdale of the U.S. Postal Inspection Service (USPIS). “Criminals use the dark web to sell and ship narcotics and other dangerous goods around the world, often relying on the postal system and private carriers to deliver these illegal products. The U.S. Postal Inspection Service is committed to finding and stopping these drug traffickers.”
“The Darknet no longer provides a concealing cloak for criminals to operate,” said IRS Criminal Investigation (IRS-CI) Chief Jim Lee. “The expertise of our agents and law enforcement partners helped uncover significant quantities of narcotics and money — both cash and virtual currency — derived from illicit means.”
“The point of operations such as the one today is to put criminals operating on the dark web on notice: the law enforcement community has the means and global partnerships to unmask them and hold them accountable for their illegal activities, even in areas of the dark web,” said Europol’s Deputy Executive Director of Operations Jean-Philippe Lecouffe.
The extensive operation, which lasted 10 months, resulted in dozens of federal operations and prosecutions, including:
- Four search warrants were executed in furtherance of a multiagency investigation resulting in the seizure of approximately $1 million in drug proceeds (including approximately $700,000 in cryptocurrency), eight firearms, one vehicle, and various controlled substances including MDMA, LSD, and cocaine. The FBI, DEA, Food and Drug Administration (FDA), and USPIS jointly conducted the investigation. According to court documents, the targets of the investigation were operating over multiple Darknet marketplaces to traffic methamphetamine, counterfeit pressed Adderall (containing methamphetamine), MDMA, cocaine, and ketamine to customers throughout the United States. The investigation revealed that the organization’s base of operations was in Houston, Texas, and the organization shipped to various cities throughout the United States. Six defendants are charged in a five-count indictment in the Southern District of Ohio with conspiracy to distribute controlled substances, distribution of controlled substances, sale of counterfeit drugs, and conspiracy to commit money laundering.
- The FBI in conjunction with the USPIS, FDA, and DEA, had been investigating a criminal enterprise that operated two Darknet vendor accounts. One of the accounts was operated out of the Miami area and the other out of the Providence, Rhode Island, area. According to court documents, the vendors, Luis Spencer, 31, of Fort Lauderdale, Florida; Olatunji Dawodu, 36, of Fort Lauderdale, Florida; and Alex Ogando, 35, of Providence, Rhode Island, allegedly advertised and sold pressed fentanyl pills throughout the United States. Agents identified several other co-conspirators and obtained search and arrest warrants for each. During the execution of the warrants, agents seized approximately $770,000, one weapon and approximately 3.5 kilograms of pressed fentanyl. Spencer, Dawodu, and Ogando are charged in the District of Columbia with conspiracy to distribute 400 grams or more of a mixture and substance containing a detectable amount of fentanyl.
- Kevin Olando Ombisi, 32, and Eric Bernard Russell Jr, 36, both of Katy, Texas, are alleged to have participated in Darknet controlled substances trafficking activities using the moniker Cardingmaster and are charged in a 10-count indictment in the Western District of Tennessee with conspiracy to distribute controlled substances, distribution of controlled substances, attempted unlawful distribution of controlled substances, sale of counterfeit drugs, money laundering conspiracy, and mail fraud. According to court documents, Ombisi and Russell are alleged to have used the moniker Cardingmaster and conspired and attempted to, and did unlawfully distribute the Schedule II controlled substance methamphetamine, which was falsely represented to be Adderall, through the mail in the Western District of Tennessee and elsewhere. In conjunction with their arrests, the government seized more than $5 million in assets alleged to be connected to the drug trafficking activity. The case was investigated by the DEA, HSI, USPIS, and the FDA, and is being prosecuted by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Western District of Tennessee.
An indictment and criminal complaint are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Operation Dark HunTor was a collaborative initiative across JCODE members, including the Department of Justice; FBI; DEA; USPIS; ICE’s Homeland Security Investigations (HSI); IRS-Criminal Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Naval Criminal Investigative Service (NCIS) and the FDA’s Office of Investigations. This operation was aided by non-operational supporting participation from the Financial Crimes Enforcement Network (FinCEN) and U.S. Customs and Border Protection (CBP). Local, state, and other federal agencies also contributed to Operation Dark HunTor investigations through task force participation and regional partnerships. The investigations leading to Operation Dark HunTor were significantly aided by support and coordination by the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF), multi-agency Special Operations Division, the Criminal Division’s Computer Crime and Intellectual Property Section, Money Laundering and Asset Recovery Section’s Digital Currency Initiative, Narcotic and Dangerous Drug Section, the Fraud Section, the Justice Department’s Office of International Affairs, the National Cyber Joint Investigative Task Force (NCJITF), Europol and its Dark Web team and international partners Eurojust, Australian Federal Police (AFP), Bulgaria’s General Directorate Combating Organized Crime (Главна дирекция Борба с организираната престъпност), France’s National Police (Police National - OCLCTIC) and National Gendarmerie (Gendarmerie Nationale – C3N), Germany’s Federal Criminal Police Office (Bundeskriminalamt), Central Criminal Investigation Department in the German city of Oldenburg (Zentrale KriminaIinspektion Oldenburg), State Criminal Police Offices (Landeskriminalämter), State Criminal Police Office of Lower Saxony (LKA Niedersachsen), various police departments (Dienststellen der Länderpolizeien), German Investigation Customs ( Zollfahndungsämter), Italy’s Finance Corps (Guardia di Finanza) and Public Prosecutor’s Office Brescia, the Netherland’s National Police (Politie), Switzerland’s Zurich Canton Police (Kantonspolizei Zürich) and Public Prosecutor's Office II of the Canton of Zurich (Staatsanwaltschaft II), and the United Kingdom’s National Crime Agency (NCA) and NPCC.
Federal prosecutions are being conducted in more than 15 federal districts, including the Central District of California, the Eastern District of California, the Northern District of California, the District of Columbia, the Southern District of Florida, the District of Massachusetts, the District of Nebraska, the District of Nevada, the Western District of New York, the Southern District of Ohio, the Northern District of Texas, the Eastern District of Virginia, the Western District of Virginia, the District of Rhode Island, the Western District of Tennessee, and the Western District of Washington.
JCODE is an FBI-led Department of Justice initiative, which supports, coordinates, and assists in de-confliction of investigations targeting for disruption and dismantlement of the online sale of illegal drugs, especially fentanyl and other opioids. JCODE also targets the trafficking of weapons and other illicit goods and services on the internet.
View documents and resources related to this announcement.