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Wednesday 8 September 2021
Operation Second Wave Update: Final Five Defendants in Major Federal Drug Conspiracy Investigation Sentenced in Federal CourtRead the Press Release
CHARLESTON, W.Va. – Five defendants charged as a result of a long-term investigation known as “Second Wave” were sentenced this week in federal court for their roles in a conspiracy to distribute methamphetamine and marijuana. Roger Jarea Drake, 32, of Charleston, and Craig Edward Redman, 42, of Kimberly, were sentenced to 151 and 46 months in prison, respectively, for conspiracy to distribute methamphetamine. Tonya Nicole Simerly, 36, of Montgomery, was sentenced to 24 months in prison for interstate travel in aid of a racketeering enterprise. Ronald Lee Thomas III, 29, of Sissonville, was sentenced to two years of probation for conspiracy to distribute marijuana, and Steven Matthew Bumpus, 32, of Charleston, was sentenced to three years of probation for theft of mail by a United States Postal Service employee.
More than a dozen individuals were charged in federal court as a result of Operation “Second Wave,” a long-term investigation of a drug trafficking ring involved in the distribution of methamphetamine, cocaine, heroin, marijuana, and THC products. According to court documents, Jason Michael Terrell, Larry Terrell Martin, and Roger Jarea Drake were principally involved in bringing the drugs into the Southern District of West Virginia from out-of-state suppliers. Carol Belton, Jimmy Lee Coleman, and Craig Edward Redman distributed methamphetamine to street-level dealers and users. Joe Fragale, Sr. and Joe Fragale II distributed methamphetamine and heroin. Ronald Lee Thomas III distributed marijuana. Gregory Eugene Woods distributed cocaine. Tonya Nicole Simerly drove to Columbus, Ohio with Terrell and Drake where they obtained methamphetamine through Rashawn Akmed Miller who acted as a “middle-man.” Bumpus was employed as a U.S. Postal Service mail carrier who delivered drug packages to Martin that were addressed to fictitious individuals along Bumpus’ route.
In previous hearings, the court sentenced Terrell to 14 years in prison, Martin to 151 months in prison, Woods to 160 months in prison, Joe Fragale, Sr. to 120 months in prison, Miller to 70 months in prison, Fragale II to 42 months in prison, Coleman to 36 months in prison, and Belton to 18 months in prison.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Central West Virginia Drug Task Force, the United States Postal Inspection Service (USPIS), the United States Postal Service – Office of Inspector General (USPS-OIG), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration (DEA), the Kanawha County Sheriff’s Office (KCSO), the Metropolitan Drug Enforcement Network Team (MDENT) and the Charleston Police Department.
Senior United States District Judge David A. Faber imposed the sentences. Assistant United States Attorney Joshua C. Hanks handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00154.
One-Time EDD Employee Agrees to Plead Guilty for Fraudulently Obtaining More Than $1.6 Million in COVID-Related Jobless BenefitsRead the Press Release
LOS ANGELES – A former California Employment Development Department (EDD) employee has agreed to plead guilty to a federal criminal charge for causing nearly 200 fraudulent COVID-related unemployment relief claims to be filed in other people’s names, resulting in more than $1.6 million in ill-gotten gains, the Justice Department announced today.
Gabriela Llerenas, a.k.a. “Maria G. Sandoval,” 44, of Perris, signed a plea agreement that was filed today in which she has agreed to plead guilty to a single-count information charging her with mail fraud.
Court records show that Llerenas previously worked at EDD as a disability insurance program representative. She resigned in March 2002 after admitting to fraudulently authorizing and paying disability benefits administered by EDD. She was sentenced to 37 months in federal prison in connection with that scheme.
The new scheme that Llerenas has admitted running took advantage of the expanded eligibility for unemployment insurance (UI) benefits made possible by the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by Congress and signed into law in March 2020. The CARES Act provided additional UI benefits to qualified individuals and helped provide UI benefits during the COVID-19 pandemic to people who did not otherwise qualify, including business owners, self-employed workers, independent contractors, and those with a limited work history.
From April to October 2020, Llerenas filed and caused the filing with EDD of fraudulent unemployment insurance benefits that falsely asserted the named claimants were self-employed independent contractors – often identifying them as cake decorators or event attendants – who were negatively affected by the COVID-19 pandemic. Llerenas obtained some of the names, Social Security numbers and other identifying information she used to submit the fraudulent claims through her prior work as a tax preparer.
In her plea agreement, Llerenas also admitted to falsely stating on some of the applications that the claimants were residents of California entitled to unemployment insurance benefits administered by EDD when in fact they lived elsewhere. She also admitted that, on some applications, she inflated the amounts of income she reported for the claimant to maximize the benefit amount. She also admitted to sometimes filing a dozen or more fraudulent EDD claims in a day.
As a result of the fraudulent unemployment benefits applications that Llerenas filed and caused to be filed, EDD authorized Bank of America to mail debit cards in the names of the claimants to addresses she provided, including her residence, her husband’s business location, her mother’s apartment and the addresses of friends and other family members.
Llerenas admitted that she charged the named claimants a fee for filling the applications, which was often paid out of the fraudulently obtained benefits. In at least one case, she told the named claimant that she was still employed at EDD and could control the distribution of the unemployment insurance benefits, and then demanded an additional payment for “releasing” the benefits.
In total, 197 debit cards were fraudulently issued because of this scheme, resulting in losses to EDD and the United States Treasury that Llerenas has admitted were at least $1,633,487.
Llerenas is scheduled to make her initial appearance on September 22. The criminal offense to which Llerenas has agreed to plead guilty carries a statutory maximum sentence of 20 years in federal prison.
The Department of Labor-Office of Inspector General, EDD-Investigations Division, Homeland Security Investigations, United States Postal Inspection Service, Federal Bureau of Investigation and Social Security Administration-Office of Inspector General investigated this matter.
Assistant United States Attorney Ranee A. Katzenstein, Chief of the Major Frauds Section, is prosecuting this 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.
Ohio woman admits to embezzling from Wetzel County businessRead the Press Release
WHEELING, WEST VIRGINIA – Cheryl M. Zambori, of St. Clairsville, Ohio, has admitted to an embezzlement charge, Acting United States Attorney Randolph J. Bernard announced.
Zambori, 50, pleaded guilty today to one count of “Wire Fraud.” Zambori was employed as a Finance Manager at Litman Excavating, Inc. in New Martinsville, West Virginia. Beginning in July 2016, Zambori began a scheme to take $317,290.53 from the Litman business account held at a bank in Wheeling, West Virginia, and transfer funds to her personal accounts held out of state.
As a part of the plea agreement, Zambori has agreed to pay restitution to Litman Excavating, Inc. in the amount of $317,290.53.
Zambori faces up to 20 years of incarceration and fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The U.S. Postal Service Inspection Service investigated.
U.S. Magistrate Judge James P. Mazzone presided.
New Mexico Man Who Sold ‘Ghost Guns’ IndictedRead the Press Release
A New Mexico man who allegedly sold an undercover agent four “ghost guns” has been charged with drug and gun crimes, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Isaiah Dante Moreno, 25, and codefendant Elias Ignacio Sisneros, 22, were indicted on September 8, 2021 for possession of unregistered firearms, possession of firearms in furtherance of a drug trafficking crime, conspiracy to distribute and possess with intent to distribute tetrahydrocannabinols (THC) and distribution of THC.
According to court documents, the defendants allegedly sold a DEA task force officer four fully-automatic, AR-style firearms and a pound of THC wax during an undercover buy in Lubbock, Texas.
During the buy, Mr. Moreno allegedly explained to the agent that he had helped manufacture the firearms, making them “ghost guns,” unregistered firearms assembled from parts. Because ghost guns lack serial numbers, they are often difficult for law enforcement to trace. Mr. Moreno allegedly informed the agent that due to some specially manufactured parts, the firearms were fully automatic, meaning they could fire more than one round of ammunition with a single depression of the trigger.
Following the undercover buy, Mr. Moreno and Mr. Sisneros, who had driven to Lubbock from New Mexico, left the scene in a black Chrysler sedan. Officers pulled them over for a traffic violation and conducted a probable-cause search of the vehicle. Inside, they found additional THC wax, two handguns, and the money received from the undercover agent. Both men were immediately arrested.
An indictment is merely an allegation of criminal conduct, not evidence. Both defendants are presumed innocent until proven guilty in a court of law.
If convicted, they face various penalties, including up to life in federal prison.
The Drug Enforcement Administration’s Dallas Field Division, Lubbock Resident Office conducted the investigation with assistance of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Caprock HIDTA, Lubbock Texas Anti-Gang Taskforce (TAG), the Lubbock County Sheriff’s Office, Lubbock Police Department and the Texas Department of Public Safety. Assistant U.S. Attorney Sean Long is prosecuting the case.
New Mexico Man Sentenced in Federal Court in Iowa for Flying a Plane Without a Pilot’s LicenseRead the Press Release
A man who attempted to pilot an airplane from Wisconsin to New Mexico without a pilot’s license was sentenced today in federal court. Keith Alexander Thomas, age 44, from Portales, New Mexico, received the sentence after an April 15, 2021 guilty plea to one count of operating as an airman without an airman certificate.
Information disclosed at sentencing showed that in June 2018, Thomas and another man flew from New Mexico to Wisconsin so that the other man could purchase a Cessna airplane. Thomas, who did not have a pilot’s license, agreed to serve as the pilot of the Cessna and attempt to fly it back to New Mexico. The Cessna was not air-worthy and sustained engine failure as it flew over Iowa. Thomas was required to make an emergency landing in Waterloo, Iowa, but also failed to establish radio communication with the aviation company whose airstrip he landed on. The Cessna not only suffered engine failure, the plane was also out of inspection compliance and the landing gear was not operational. No one was hurt during the emergency landing.
Thomas was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Thomas was sentenced to two years’ probation and fined $5,000.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the U.S. Department of Transportation – Office of the Inspector General.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-2003.
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New Haven Man Charged with Crack Cocaine Distribution and Ammunition Possession OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford has returned an indictment charging BRIAN WARD, 29, of New Haven, with narcotics distribution and ammunition possession offenses.
The indictment was returned on August 31, 2019. Ward appeared today via videoconference before U.S. Magistrate Judge Sarah A. L. Merriam and pleaded not guilty to the charges. He has been detained since August 18.
As alleged in court documents, on July 21, 2021, law enforcement arrested Ward’s associate, Zaquawn Arrington, on a federal criminal complaint at Arrington’s West Haven residence. Ward was present at Arrington’s residence at the time of the arrest. A search of the residence revealed crack cocaine, a digital scale, and $2,075 in cash. During the search, investigators observed Ward throw a bag from the house. The bag contained crack cocaine packaged for distribution. Later that day, investigators conducted a court-authorized search of Ward’s New Haven residence and seized a pistol box containing four ammunition magazines, and a box of 39 9mm rounds.
It is alleged that Ward was previously convicted of state felony drug and assault offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
It is further alleged that Ward is seen on surveillance video firing a gun at a group of individuals immediately after one of the individuals shot and killed his associate on August 8, 2021, in Hamden.
The indictment charges Ward with one count of possession with intent to distribute cocaine base (“crack”), which carries a maximum term of imprisonment of 20 years, and one count of possession of ammunition by a felon, which carries a maximum term of imprisonment of 10 years.
Arrington has been charged separately with federal narcotics offenses and is awaiting trial.
Acting U.S. Attorney Boyle stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation’s New Haven Safe Streets/Gang Task Force, the New Haven Police Department and the West Haven Police Department. The Task Force includes members from the Connecticut State Police, Connecticut Department of Correction and the New Haven, Milford, East Haven and West Haven Police Departments.
The case is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
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.
NXIVM President Nancy Salzman Sentenced to 42 Months’ Imprisonment for Racketeering ConspiracyRead the Press Release
Earlier today, in federal court in Brooklyn, Nancy Salzman, also known as “Prefect,” the former president and co-founder of Nxivm, was sentenced to 42 months’ imprisonment and ordered to pay a $150,000 fine by United States District Judge Nicholas G. Garaufis for racketeering conspiracy, including predicate acts of conspiracy to commit identity theft and conspiracy to obstruct justice. Salzman agreed to forfeit several real properties, more than $500,000 in cash and a Steinway grand piano. Salzman pleaded guilty in March 2019.
Jacquelyn M. Kasulis, Acting 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), Thomas Fattorusso, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), and Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI) announced the sentence.
“In her misguided loyalty and blind allegiance to Keith Raniere, the defendant engaged in a racketeering conspiracy designed to intimidate Nxivm’s detractors and that inflicted harm on Nxivm’s members,” stated Acting U.S. Attorney Kasulis. “Today’s sentence holds the defendant accountable for her crimes and we hope that it brings some measure of closure to the vulnerable women who were victimized and abused.” Ms. Kasulis also expressed her appreciation to the New York State Police and the United States Attorney’s Office for the Northern District of New York for their assistance during the investigation and prosecution.
“Serving as Raniere’s right hand for more than a decade, Nancy Salzman’s conduct supported Nxivm’s objectives to recruit victims, stave off critics and alter evidence connected to a federal lawsuit. Today’s sentence does little to erase the suffering of Nxivm’s victims, but it serves as another reminder of the government’s commitment to seeing this case through to the end,” stated FBI Assistant Director-in-Charge Driscoll.
“Today, Nancy Salzman was held accountable for the role she played in this devious criminal enterprise,” stated IRS-CI Acting Special Agent-in-Charge Fattorusso. “As with many conspiracies, the financial aspects of this investigation required the expertise of IRS Criminal Investigation to unravel the layers of falsehood and deceit.”
“Salzman was essential to the NXIVM criminal enterprise, not merely a peripheral co-defendant. As the co-founder with Keith Raniere, Salzman had immense influence on NXIVM, which included conspiracy to commit identity theft and conspiracy to alter records,” stated HSI Special Agent-in-Charge Fitzhugh. “HSI New York’s strong relationship with its federal partners allows for the seamless and effective investigations that lead to the arrest, prosecution, and sentencing of those involved.”
For more than a decade and until her arrest in July 2018, Nancy Salzman was a high-ranking member of a criminal enterprise led by her co-defendant Keith Raniere. The primary purpose of the enterprise was to promote Raniere and recruit individuals into various purported self-help organizations that Raniere founded, including Nxivm and affiliated programs, and a secret society within Nxivm called “DOS.”
Between August 2005 and November 2008, Nancy Salzman, along with Raniere, participated in the unlawful surveillance and investigation of perceived critics and enemies of Raniere and Nxivm. As part of the scheme, Nancy Salzman agreed to unlawfully surveil these perceived enemies in an attempt to gain advantage over them and stop them from criticizing the company. On March 27, 2018, a search warrant was executed on Salzman’s residence. Law enforcement agents recovered a box containing purported private banking information of many individuals perceived to be critics and enemies of Raniere, including journalists, judges and an expert on cults.
The defendant also conspired to obstruct justice by altering videotapes that were to be produced in discovery in a federal lawsuit in New Jersey. In 2003, Nxivm and affiliated entities filed a copyright infringement suit against a former Nxivm student, her parents and a cult deprogrammer. In 2008, attorneys representing the former student filed counterclaims against Nxivm alleging that the defendant had misrepresented the nature and effectiveness of Nxivm’s programs. During the course of the pending litigation, the defendant and others agreed to alter the videotapes to remove segments that they believed would have supported the former student’s claims and to make it look as if the videos were unedited. These altered videotapes were then produced in discovery by Nxivm’s attorneys with the false claim that they were provided in “unedited fashion.”
Raniere was convicted by a federal jury of racketeering and racketeering conspiracy, sex trafficking, attempted sex trafficking and sex trafficking conspiracy, forced labor conspiracy and wire fraud conspiracy. On October 27, 2020, Raniere was sentenced to 120 years’ imprisonment. On September 30, 2020, Nxivm executive board member Clare Bronfman was sentenced to 82 months’ imprisonment for identity theft and immigration offenses. On April 19, 2019, Kathy Russell, a bookkeeper for Nxivm, pleaded guilty to visa fraud and is awaiting sentencing.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Tanya Hajjar and Kevin Trowel are in charge of the prosecution. Assistant United States Attorney Tanisha Payne of the Criminal Division’s Asset Recovery Section is handling forfeiture matters.
The Defendant:
NANCY SALZMAN (also known as “Prefect”)
Age: 67
Clifton Park, New YorkDefendants Previously Sentenced:
KEITH RANIERE (also known as “Vanguard” and “Grandmaster”)
Age: 61
Waterford, New YorkCLARE BRONFMAN
Age: 42
Clifton Park, New YorkALLISON MACK
Age: 39
Brooklyn, New YorkLAUREN SALZMAN
Age: 45
Clifton Park, New YorkDefendant To Be Sentenced:
KATHY RUSSELL
Age: 63
Clifton Park, New YorkE.D.N.Y. Docket No. 18-CR-204 (S-2) (NGG)
Muskogee Resident Convicted of Killing Twin BrotherRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that Kyle Joseph Vannortwick, age 36, of Muskogee, Oklahoma was found guilty by a federal jury of Murder –Second Degree in Indian Country, in violation of Title 18, United States Code, Sections 1111(a), 1151 and 1153. The jury trial began with testimony on Monday, August 16, 2021 and concluded on Tuesday, September 7, 2021 with the guilty verdict. The defendant faces up to life imprisonment for the crime the jury found he committed.
During the trial, the United States presented evidence that on February 18, 2018, the defendant assaulted his brother, Adam Vannortwick, in their home. During the assault, the defendant stabbed the victim three times with a BBQ Knife; once in the head, once in the neck and once in the chest. As a result of the stab wounds, the victim lost a substantial amount of blood prior to medical treatment and ultimately succumbed to those injuries. The defendant was apprehended at the scene of the incident. The defendant claimed the death was accidental. At trial, the defendant testified his brother attacked him and he pushed him away causing the brother to fall on a kitchen table where the BBQ knife was laying. In closing argument, the defense contended the three stab wounds must have occurred when the victim landed on the table. Conversely, the United States argued the defense theory was impossible and the evidence demonstrated the defendant stabbed his twin brother three separate times causing his death.
The case was originally set to be tried in the District Court of Muskogee County, Oklahoma where the murder took place. However, after the United States Supreme Court determined the Muscogee (Creek) Reservation had never been disestablished by Congress, the case had to be dismissed in state court and refiled in federal court because the murder happened in Muskogee County, within the boundaries of Muscogee (Creek) Nation Reservation and the defendant was a member of a federally recognized Indian Tribe.
The guilty verdict was the result of an investigation by the Muskogee Police Department and the Federal Bureau of Investigation.
The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma in Muskogee, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following completion of the report. Vannortwick was remanded to the custody of the United States Marshal pending imposition of sentencing.
Montgomery Man Pleads Guilty to String of Bank Robberies in Central AlabamaRead the Press Release
Montgomery, Ala. – On Tuesday, September 7, 2021, Jamie Josuhnta Ryans, 27, from Montgomery, Alabama, pleaded guilty to robbing four banks during a two-month period in 2019, announced Acting United States Attorney Sandra J. Stewart.
During the plea hearing, Ryans admitted to robbing banks in four different counties in central Alabama. Information on the banks and dates are as follows:
- BB&T Bank in Montgomery, Alabama, robbed on October 17, 2019.
- BanccorpSouth Bank in Hayneville, Alabama, robbed on October 25, 2019.
- Community Neighbor Bank in Greenville, Alabama, robbed on November 6, 2019.
- First National Bank of Dozier in Dozier, Alabama, robbed on December 11, 2019.
According to court records and statements made in open court, on each occasion Ryans entered the bank and gave a teller a note demanding money but did not produce a weapon or show that he had one. However, during the December 11th robbery, Ryans did imply to the teller at the First National Bank of Dozier that he had a firearm in his pocket. Tellers at all four locations ultimately complied with Ryans’ written demands and gave him money from their bank drawers. After the First National Bank Robbery in Dozier, Ryans entered a waiting vehicle being driven by Kendrick Deantay Flynn, a 31-year-old also from Montgomery. Flynn previously pleaded guilty to his involvement in the Dozier bank robbery and on March 31, 2021, was sentenced to 38 months in prison to be followed by three years of supervised release.
A sentencing hearing will be scheduled for Ryans in the coming months. At this hearing he will be facing up to 20 years in prison. Ryans will also be subject an order of restitution to the banks after their total losses are determined by the court.
This case was investigated by the Federal Bureau of Investigation (FBI), the Montgomery Police Department, the Montgomery County Sheriff’s Office, the Hayneville Police Department, the Lowndes County Sheriff’s Office, the Greenville Police Department, the Butler County Sheriff’s Office, and the Crenshaw County Sheriff’s Office, with assistance from the Alabama Law Enforcement Agency (ALEA). Assistant United States Attorney Russell Duraski is prosecuting the case.
Missouri Man Indicted for Allegedly Detonating ExplosivesRead the Press Release
KANSAS CITY, KAN. – A federal grand jury in Kansas City, Kansas, returned an indictment charging a Missouri man with one count of Arson, one count of felon in possession of an explosive, and one count of transportation of explosive materials.
According to court documents, Josiah Lewis, 43, of Grandview, Missouri, allegedly detonated explosives at a business on West 135th Street in Overland Park, Kansas, in attempt to gain access into an automatic teller machine.
The Overland Park Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) are investigating the case.
Assistant U.S. Attorney David Zabel is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Middleton Man Sentenced to 12 Years in Prison for Distribution and Possession of Child PornographyRead the Press Release
BOISE – Colton Dune Turner, 20, of Middleton, was sentenced to twelve years in federal prison for distribution and possession of child pornography, announced Acting U.S. Attorney Rafael M. Gonzalez, Jr. today. Chief U.S. District Judge David C. Nye also ordered Turner to serve 25 years of supervised release following his prison sentence. Turner pleaded guilty to the charges on April 13, 2021.
According to court records, the investigation began after the online platform MeWe reported that three MeWe accounts had been used to distribute child pornography in July, August, and September 2019. An investigator with the Canyon County Prosecuting Attorney’s Office (CCPA) investigated the reports and determined that the accounts belonged to Turner. The CCPA investigator obtained search warrants for the MeWe accounts, and located 218 images of child pornography, including images depicting prepubescent minors, toddlers, and infants. The CCPA investigator also located evidence showing that Turner used the accounts to distribute child pornography, including explicit images of an eight-year-old child that he had taken with his cellphone.
The CCPA investigator obtained a search warrant for Turner’s residence in Middleton and his cellphone. The CCPA, and other members of law enforcement, served the search warrant on November 13, 2019, and seized Turner’s cellphone. A forensic examination of the cellphone revealed over 600 images of child pornography, including the explicit images that Turner had taken of the eight-year-old child.
At sentencing, Judge Nye also ordered Turner to pay restitution of $57,000 to victims in the images he possessed. As a result of conviction, Turner will be required to register as a sex offender.
Acting U.S. Attorney Gonzalez credited the cooperative efforts of the Canyon County Prosecuting Attorney’s Office, the Idaho Internet Crimes Against Children Task Force, and the Middleton Police Department, which led to charges. “This is a particularly egregious case involving an adult using an online platform to exploit dozens of children,” said Mr. Gonzalez. “I commend these investigators for aggressively pursuing this defendant and holding him accountable. We continue to urge parents, teachers, caregivers, young people, and businesses to be vigilant in reporting these types of crimes to law enforcement,” he concluded.
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. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal 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.
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Man Sentenced to 5 Years for Attempted Arson During 2020 Civil Unrest in MadisonRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Willie Tremaine Johnson, 46, Madison, Wisconsin pleaded guilty and was sentenced today by Chief U.S. District Judge James D. Peterson to 5 years in prison for attempted arson. Johnson and codefendant Anessa Fierro were indicted by a federal grand jury for this offense in October 2020.
In the early morning hours of August 25, 2020, Johnson attempted to set fire to two commercial buildings in Madison, Wisconsin. Business A was an office building, and Business B was a mixed-use rental property with apartments on the upper levels and retail space on the street level. Several apartments were occupied by sleeping residents at the time.
At Business A, Johnson helped a group of people break out the building’s front windows, and another individual poured gasoline along the walls. Johnson then lit material that had been tossed onto the gasoline, causing the vapors to ignite.
At Business B, Johnson, along with several other people, broke out the retail store’s windows. With the interior of the building exposed, another individual poured gasoline along the front walls. Johnson attempted to ignite the gasoline vapors with a cigarette lighter but fled when officers from the Madison Police Department arrived.
Fierro’s combined plea and sentencing hearing is scheduled for October 19, 2021. Because she has not yet pleaded guilty, the charges against her are merely an accusation and she is presumed innocent until and unless proven guilty.
“Arson should never be confused with legitimate protest. Those who engage in such conduct without regard for the potentially deadly consequences will be held accountable,” said Acting U.S. Attorney O’Shea. “Our office will work with our local, state, and federal law enforcement partners to bring those who commit this type of crime to justice.”
"Willie Johnson displayed a complete disregard for the safety of others by committing these acts,” said ATF Assistant Special Agent in Charge Jonathan Ortiz, of the St. Paul Field Division. “ A fire can easily consume a building in mere minutes, putting every occupant or passerby at risk of serious injury or death. We are glad the attempts were unsuccessful since a number of individuals lived in apartment units above one of the locations he attempted to set ablaze. Whether attempted arson or actual, ATF is committed to investigating arson-related crimes alongside our state and local partners.”
The charges against Johnson and Fierro are the result of an investigation conducted by the Madison Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Chadwick M. Elgersma prosecuted this case.
Long Island Businessmen Plead Guilty to Hoarding and Price-Gouging of Scarce Personal Protective EquipmentRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Allen Goldmeirer and his brother Steven Goldmeier, owners of a toy company called Millennium Products Group (MPG), pleaded guilty to hoarding personal protective equipment (“PPE”) amid the Covid-19 pandemic and price-gouging customers that purchased three-ply surgical masks from them in violation of the Defense Production Act of 1950. The proceeding took place before United States Magistrate Judge James M. Wicks.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty pleas.
“The defendants selfishly sought to make millions of dollars in profits during an unprecedented public health crisis by hoarding and selling at exorbitant prices personal protective equipment that was desperately needed by the State of Oklahoma to protect the public health and safety, and save lives,” stated Acting United States Attorney Kasulis. “This Office will continue to do everything in its power to enforce the Defense Production Act and ensure that opportunists like the defendants are held accountable for their indiscriminate acts of greed.” Ms. Kasulis also expressed her appreciation to the United States Attorney’s Office for the District of New Jersey and the Justice Department’s Covid-19 Hoarding and Price Gouging Task Force for their assistance with the case.
“During the height of the pandemic, cases in which people sought to capitalize on the situation at the expense of others were, unfortunately, an all-too-common occurrence. More than a year later, the FBI continues to work to identify and hold accountable any company, individual, or entity whose intention it was to do so. The Goldmeirer brothers pleaded guilty today for their role in a price-gouging scheme, and they’ll now await sentencing for their crimes,” stated FBI Assistant Director-in-Charge Driscoll.
On March 18, 2020, in response to the Covid-19 pandemic, the Defense Production Act was invoked making it illegal to acquire medical supplies and devices designated by the Secretary of Health and Human Services as scarce in order to hoard them or sell them for excessive prices.
According to statements in court today, in March and April 2020, the defendants used their toy company, MPG, to obtain millions of three-ply surgical masks from China for between approximately $0.18 and $0.60 per mask. Almost immediately thereafter, the defendants sold 1,227,500 of these masks to the State of Oklahoma, among others, at a price of $1.65 per mask – a markup of over 900% in many cases. Pursuant to their agreement with the government, the defendants will pay $1 million in restitution to the State of Oklahoma prior to sentencing in this matter. In addition, the defendants face up to one year in jail and a maximum fine of $10,000.
On May 17, 2021, the Attorney General established the Covid-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving Covid-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The government’s case is being handled by the Office’s Long Island Criminal Division, with assistance from the Justice Department’s Covid-19 Hoarding and Price-Gouging Task Force. Assistant United States Attorney Megan E. Farrell is in charge of the prosecution.
The Defendants:
ALLEN GOLDMEIER
Age: 68
Oyster Bay, New YorkSTEVEN GOLDMEIER
Age: 64
Plainview, New YorkE.D.N.Y. Docket No. 21-CR- 399 (JMW)
Leader of Fake Cryptocurrency Investment Scheme Pleads Guilty to FraudRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that MICHAEL ACKERMAN, who orchestrated a multimillion-dollar cryptocurrency investment scheme, pled guilty to wire fraud today before United States Chief District Judge Laura Taylor Swain. ACKERMAN admitted to causing victim losses of more than $30 million.
U.S. Attorney Audrey Strauss said: “As he admitted today, Michael Ackerman raised millions of dollars in investments for his fake cryptocurrency scheme by falsely touting monthly returns of over 15 percent, falsifying documents to con investors into thinking his fund had a balance of over $315 million, and spending millions in investor funds on himself. Now Ackerman awaits sentencing for his crime.”
According to the Indictment and the underlying complaint filed in this case, as well as prior court filings and recent court proceedings:
In or about 2017, MICHAEL ACKERMAN and others started a purported cryptocurrency “investment” fund (the “Fund”) and recruited hundreds of individual investors into the Fund. The Fund was an investment club that allowed its members to contribute U.S. dollars, which the investors were told would then be used to invest and trade in Bitcoin and other cryptocurrencies. ACKERMAN was held out as the Fund’s chief trading officer and personally controlled the Fund’s primary trading account on an online cryptocurrency exchange. Based on figures provided by ACKERMAN, the Fund claimed that its proprietary trading algorithm was earning approximately 15 percent in profit for investors each month.
By December 2019, ACKERMAN claimed that the Fund investment pool – which consisted of approximately $37 million in original investor contributions – had grown in value to approximately $315 million. ACKERMAN’s claims about the performance of the Fund were communicated to existing Fund investors as well as prospective investors, some of whom were induced to invest in the Fund in the hopes of enjoying high rates of return.
The rates of return that ACKERMAN reported on the Fund investments, and its overall Fund balance, were false. In reality, the primary trading account used by ACKERMAN had an account balance that never exceeded approximately $5 million. To support his false claim that the Fund’s investments were earning 15 percent in monthly profits and had grown to approximately $315 million, ACKERMAN doctored numerous account screenshots that he knew were being used to communicate with Fund investors.
Instead of investing and trading on behalf of the Fund, ACKERMAN stole at least $9 million in investor contributions and used them to bankroll a lavish lifestyle that included his purchase of multiple pieces of real estate, hundreds of thousands of dollars of Tiffany jewelry, vehicles, travel, and personal security services.
* * *
ACKERMAN, 52, of Sheffield Lake, Ohio, pled guilty today to one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Under the terms of his plea, ACKERMAN agreed to make restitution of at least $30,667,738.79. ACKERMAN also agreed to forfeiture of $36,268,515, including the millions of dollars in cash, real estate, and jewelry that were fraudulently obtained from victims or bought with victim funds.
ACKERMAN is scheduled to be sentenced by Judge Swain on January 5, 2022, at 2:00 p.m.
Ms. Strauss praised the outstanding work of special agents from Homeland Security Investigations’ El Dorado Task Force and the Federal Bureau of Investigation in Tampa, and thanked the attorneys and investigators at the Commodity Futures Trading Commission and the Securities and Exchange Commission whose expertise and diligence were integral to the development of this investigation and today’s guilty plea.
The prosecution of this case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Jessica Greenwood, Sheb Swett, and Kiersten Fletcher are in charge of the prosecution.
International money launderer sentenced to federal prison in cyber-crime conspiracies responsible for intended loss of nearly $60 millionRead the Press Release
SAVANNAH, GA: A Canadian man who conspired to launder tens of millions of dollars stolen in various wire and bank fraud schemes – including a massive online banking theft by North Korean cyber criminals – has been sentenced to nearly 12 years in federal prison.
Ghaleb Alaumary, 36, of Mississauga, Ontario, was sentenced to a total of 140 months in prison after pleading guilty to two counts of Conspiracy to Commit Money Laundering, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker also ordered Alaumary to pay $30,703,946.56 in restitution to victims and to serve three years of supervised release after completion of his prison sentence. There is no parole in the federal system.
“This defendant served as an integral conduit in a network of cybercriminals who siphoned tens of millions of dollars from multiple entities and institutions across the globe,” said Acting U.S. Attorney Estes. “He laundered money for a rogue nation and some of the world’s worst cybercriminals, and he managed a team of coconspirators who helped to line the pockets and digital wallets of thieves. But U.S. law enforcement, working in conjunction with its partners throughout the world, will bring to justice fraudsters who think they can hide behind a computer screen.”
As described in unsealed court documents and proceedings, Alaumary and his coconspirators used business email compromise schemes, ATM cash-outs, and bank cyber-heists to steal money from victims and then launder the money through bank accounts and digital currency. He previously pled guilty in the Southern District of Georgia in two money laundering cases.
In the first case, which was filed and investigated in the Southern District of Georgia, Alaumary conspired with others who sent fraudulent “spoofed” emails to a university in Canada in 2017 to make it appear the emails were from a construction company requesting payment for a major building project. The university, believing it was paying the construction company, wired $11.8 million CAD (approximately $9.4 million USD) to a bank account controlled by Alaumary and his coconspirators. Alaumary then arranged with individuals in the U.S. and elsewhere to launder the stolen funds through various financial institutions.
Weeks later, Alaumary arranged for a coconspirator in the United States to make several trips to Texas to impersonate wealthy bank customers in a scheme to steal hundreds of thousands of dollars from victims’ accounts using the victims’ stolen personally identifiable information. A telephone call with a coconspirator discussing the fraud took place in Savannah.
In the second case, which was transferred to the Southern District of Georgia from the Central District of California for his guilty plea and sentencing, Alaumary recruited and organized individuals to withdraw stolen cash from ATMs; he provided bank accounts that received funds from bank cyber-heists and fraud schemes; and, once the ill-gotten funds were in accounts he controlled, Alaumary further laundered the funds through wire transfers, cash withdrawals, and by exchanging the funds for cryptocurrency. The funds included those from a 2019 North Korean-perpetrated cyber-heist of a Maltese bank. Other victims of Alaumary’s crimes included banks headquartered in India, Pakistan, and Malta, as well as companies in the U.S. and U.K., individuals in the U.S., and a professional soccer club in the U.K.
“International money launderers provide critical services to cybercriminals, helping hackers and fraudsters to avoid detection and hide their illicit profits,” said Assistant Attorney General Kenneth A. Polite Jr. for the Justice Department’s Criminal Division. “Small and large companies, a university, banks, and others lost tens of millions of dollars in this scheme. Alaumary’s sentence today reflects how seriously the Department of Justice considers the critical role that money launderers play in global cybercrime.”
“The sentencing of the defendant in this case speaks to the value of investigative collaboration across borders,” said U.S. Secret Service Atlanta Field Office SAIC Steven R. Baisel. “In spite of the complicated, international nature of this criminal enterprise, the defendant and his co-conspirators were still brought to justice.”
“This case is an example of our relentless determination to hold criminals accountable no matter how sophisticated their crimes may seem,” said Phil Wislar, Acting Special Agent in Charge of FBI Atlanta. “The arrest and sentencing of cyber criminals like Alaumary, who feel safe hiding behind a computer screen, are only possible through persistent investigative efforts of the FBI and our close collaboration with our U.S. and international partners.”
Alaumary is the fourth defendant in this investigation sentenced in the Southern District of Georgia. Uchechi Ohanaka, Kelvin Desangles, and Jennal Aziz previously pled guilty in federal court to fraud felonies and were sentenced to terms totaling more than 200 months in prison.
The cases were investigated by the U.S. Secret Service Savannah Resident Office with assistance from the Los Angeles Field Office and the Global Investigative Operations Center, the FBI, and the Royal Canadian Mounted Police, and prosecuted by the Criminal Division of the U.S. Attorney’s Office for the Southern District of Georgia, Senior Trial Attorney Mona Sedky of the Computer Crime and Intellectual Property Section of the U.S. Department of Justice, and Assistant U.S. Attorney Khaldoun Shobaki of the U.S. Attorney’s Office for the Central District of California.
International Money Launderer Sentenced to over 11 Years in Federal Prison for Laundering Millions from Cyber Crime SchemesRead the Press Release
SAVANNAH, Georgia – A Canadian man was sentenced today to 140 months in federal prison for conspiring to launder tens of millions of dollars stolen in various wire and bank fraud schemes, including a massive online banking theft by North Korean cyber criminals that is part of a pending case in Los Angeles.
Ghaleb Alaumary, 36, of Mississauga, Ontario, who is a dual Canadian and U.S. citizen, was sentenced after pleading guilty to two counts of conspiracy to commit money laundering in two cases, one of which was filed in Los Angeles. As part of his sentence that covers both cases, Alaumary was ordered to pay more than $30 million in restitution to victims.
According to court documents, Alaumary and his coconspirators used business email compromise schemes, ATM cash-outs, and bank cyber-heists to steal money from victims and then launder the money through bank accounts and digital currency.
In the Los Angeles case that was transferred to the Southern District of Georgia for his guilty plea and sentencing, Alaumary recruited and organized individuals to withdraw stolen cash from ATMs; he provided bank accounts that received funds from bank cyber-heists and fraud schemes; and, once the ill-gotten funds were in accounts he controlled, Alaumary further laundered the funds through wire transfers, cash withdrawals, and by exchanging the funds for cryptocurrency. The funds included those from North Korean-perpetrated crimes, including the 2019 cyber-heist of a Maltese bank and the 2018 ATM cash-out theft from BankIslami in Pakistan. Other victims of Alaumary’s crimes included a bank headquartered in India, as well as companies in the U.S. and U.K., individuals in the U.S., and a professional soccer club in the United Kingdom.
In the case filed by the Southern District of Georgia, Alaumary conspired with others who sent fraudulent “spoofed” emails to a university in Canada in 2017 to make it appear the emails were from a construction company requesting payment for a major building project. The university, believing it was paying the construction company, wired 11.8 million Canadian dollars (approximately 9.4 million U.S. dollars) to a bank account controlled by Alaumary and his coconspirators. Alaumary then arranged with individuals in the U.S. and elsewhere to launder the stolen funds through various financial institutions. Weeks later, Alaumary arranged for a coconspirator in the United States to make several trips to Texas to impersonate wealthy bank customers in a scheme to steal hundreds of thousands of dollars from victims’ accounts using the victims’ stolen personally identifiable information.
The investigations of Alaumary were conducted by the United States Secret Service’s Savannah Field Office, the FBI’s Los Angeles Field Office, and the United States Secret Service’s Los Angeles Field Office and Global Investigative Operations Center. The FBI’s Criminal Investigative Division also provided substantial assistance.
The Los Angeles case was handled by Assistant U.S. Attorney Khaldoun Shobaki of the Cyber and Intellectual Property Crimes Section.
International Money Launderer Sentenced to More Than 11 Years in Prison for Laundering Millions of Dollars in Cyber Crime SchemesRead the Press Release
A dual Canadian and U.S. national was sentenced today to 140 months in federal prison for conspiring to launder tens of millions of dollars stolen in various wire and bank fraud schemes – including a massive online banking theft by North Korean cyber criminals.
Ghaleb Alaumary, 36, of Mississauga, Ontario, was sentenced after pleading guilty to two counts of conspiracy to commit money laundering. As part of his sentence, Alaumary is also required to pay more than $30 million in restitution to victims and serve three years of supervised release after completion of his prison sentence.
“International money launderers provide critical services to cybercriminals, helping hackers and fraudsters to avoid detection and hide their illicit profits,” said Assistant Attorney General Kenneth A. Polite Jr. for the Justice Department’s Criminal Division. “Small and large companies, a university, banks and others lost tens of millions of dollars in this scheme. Alaumary’s sentence today reflects how seriously the Department of Justice considers the critical role that money launderers play in global cybercrime.”
“This defendant served as an integral conduit in a network of cybercriminals who siphoned tens of millions of dollars from multiple entities and institutions across the globe,” said Acting U.S. Attorney David H. Estes for the Southern District of Georgia. “He laundered money for a rogue nation and some of the world’s worst cybercriminals, and he managed a team of co-conspirators who helped to line the pockets and digital wallets of thieves. But U.S. law enforcement, working in conjunction with its partners throughout the world, will bring to justice fraudsters who think they can hide behind a computer screen.”
“The sentencing of the defendant in this case speaks to the value of investigative collaboration across borders,” said Special Agent in Charge Steven R. Baisel of the U.S. Secret Service’s Atlanta Field Office. “In spite of the complicated, international nature of this criminal enterprise, the defendant and his co-conspirators were still brought to justice.”
“The defendant in today's case laundered millions of dollars in losses from companies, universities and banks,” said Assistant Director Calvin A. Shivers of the FBI's Criminal Investigative Division. “Today's sentence demonstrates that cybercriminals who launder illegitimate profits can't evade detection from the FBI and our law enforcement partners.”
“This case is an example of our relentless determination to hold criminals accountable no matter how sophisticated their crimes may seem,” said Acting Special Agent in Charge Phil Wislar of the FBI’s Atlanta Field Office. “The arrest and sentencing of cyber criminals like Alaumary, who feel safe hiding behind a computer screen, are only possible through persistent investigative efforts of the FBI and our close collaboration with our U.S. and international partners.”
According to court documents, Alaumary and his coconspirators used business email compromise schemes, ATM cash-outs and bank cyber-heists to steal money from victims and then launder the money through bank accounts and digital currency. He previously pleaded guilty in the Southern District of Georgia in two money laundering cases.
In the first case, which was filed and investigated in the Southern District of Georgia, Alaumary conspired with others who sent fraudulent “spoofed” emails to a university in Canada in 2017 to make it appear the emails were from a construction company requesting payment for a major building project. The university, believing it was paying the construction company, wired $11.8 million CAD (approximately $9.4 million USD) to a bank account controlled by Alaumary and his co-conspirators. Alaumary then arranged with individuals in the United States and elsewhere to launder the stolen funds through various financial institutions.
Weeks later, Alaumary arranged for a co-conspirator in the United States to make several trips to Texas to impersonate wealthy bank customers in a scheme to steal hundreds of thousands of dollars from victims’ accounts using the victims’ stolen personally identifiable information.
In the second case, which was transferred to the Southern District of Georgia from the Central District of California for his guilty plea and sentencing, Alaumary recruited and organized individuals to withdraw stolen cash from ATMs; he provided bank accounts that received funds from bank cyber-heists and fraud schemes; and, once the ill-gotten funds were in accounts he controlled, Alaumary further laundered the funds through wire transfers, cash withdrawals, and by exchanging the funds for cryptocurrency. The funds included those from a 2019 North Korean-perpetrated cyber-heist of a Maltese bank. Other victims of Alaumary’s crimes included banks headquartered in India, Pakistan and Malta, as well as companies in the United States and U.K., individuals in the United States and a professional soccer club in the U.K.
Alaumary is the fourth defendant in this investigation to plead guilty in federal court to fraud felonies and be sentenced in the Southern District of Georgia. In 2019, co-defendant Uchechi Ohanaka was sentenced to 125 months’ imprisonment followed by five years of supervised release; Jennal Aziz was sentenced to six months’ imprisonment followed by three years of supervised release; and Kelvin Desangles was sentenced to 57 months’ imprisonment followed by three years of supervised release.
The U.S. Secret Service investigated the case, with valuable assistance provided by its Global Investigative Operations Center, the FBI and the Royal Canadian Mounted Police.
Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section; the Criminal Division of the U.S. Attorney’s Office for the Southern District of Georgia; and Assistant U.S. Attorney Khaldoun Shobaki of the Central District of California prosecuted the case.
Inland Empire Man Who Worked at Group Homes and Mental Health Facilities Indicted on Series of Child Exploitation OffensesRead the Press Release
LOS ANGELES – A certified nursing assistant who worked at a Southern California group home for severely disabled patients was indicted today for multiple child exploitation crimes, including filming himself sexually abusing children at the group home facility.
A federal grand jury today charged Steve Jackson Rodriguez, 37, of Pomona, in a six-count indictment that includes four counts alleging he produced child pornography.
Rodriguez, who was arrested pursuant to a criminal complaint on August 25, is scheduled to be arraigned on the indictment on September 16. Following the arraignment in Los Angeles, the case will move to a federal judge in Riverside.
The indictment alleges Rodriguez produced child pornography with three minor victims, two of whom were severely disabled patients being housed at an Inland Empire group home that employed Rodriguez. One of the disabled victims was 8 years old when Rodriguez filmed the illegal sexual conduct.
The indictment charges Rodriguez with filming his sexual encounters with another minor victim, whom Rodriguez enticed into engaging in sex and lewd acts.
Special agents with Homeland Security Investigations are investigating this matter and have reason to believe that Rodriguez may have had illegal sexual conduct with other victims during his employment at group homes and psychiatric care facilities where he has worked as a certified nursing assistant. If you have any information about potential victims in this matter, please call the HSI tip line at (866) 347-2423.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of the charges in the indictment, Rodriguez would face a statutory maximum penalty of life in federal prison. He also would face a mandatory minimum sentence of 15 years in federal prison for each of the four counts alleging the production of child pornography.
The ongoing investigation in this case is being conducted by HSI as part of the Los Angeles Internet Crimes Against Children Task Force (ICAC). The investigation began in July when the National Center for Missing and Exploited Children provided information to ICAC.
Assistant United States Attorney Scott M. Lara of the Violent and Organized Crime Section is prosecuting this case.
Illinois woman admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Joanna Masias, of Cicero, Illinois, has admitted to attempting to smuggle suboxone into FCI Gilmer in Glenville, West Virginia, Acting U.S. Attorney Randolph J. Bernard announced.
Masias, 36, pled guilty to one count of “Attempt to Introduce a Prohibited Object (Narcotic).” Masias admitted to working with two inmates at the facility to attempt to smuggle suboxone into FCI Gilmer in April 2019.
Masias faces up to 20 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Prisons Special Investigative Services investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Home Health Agency Operator to Pay $17 Million to Resolve False Claims Act Kickback AllegationsRead the Press Release
NEWARK, N.J. – A home health agency (HHA) operator has agreed to pay $17 million to resolve allegations that it violated the False Claims Act by paying kickbacks through the purchase of two HHAs from a retirement home operator in Arizona, Acting U.S. Attorney Rachael A. Honig and Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division announced today.
Today’s settlement resolves allegations that BAYADA, BAYADA Home Health Care Inc., BAYADA Health LLC, and BAYADA Home Care (collectively, the BAYADA Companies), with headquarters in Moorestown, New Jersey, bought two HHAs to induce referrals to BAYADA of Medicare beneficiaries from other retirement communities operated by the seller throughout the United States. The government alleges that from Jan. 1, 2014, through Oct. 31, 2020, the BAYADA Companies submitted false claims for payment to Medicare for services provided to beneficiaries referred to BAYADA as a result of the kickback transaction.
“When healthcare providers make or induce referrals that are based on kickback arrangements rather than the best interests of patients, they risk patient harm, threaten the integrity of federal healthcare programs, and violate federal law,” Acting U.S. Attorney Honig said. “The U.S. Attorney’s Office for the District of New Jersey and our partners in the Department of Justice and at HHS-OIG will continue to pursue those who, like BAYADA, offer kickbacks for patient referrals, no matter the disguise those kickback arrangements might wear.”
“Parties who pay or receive kickbacks in order to induce referrals undermine the integrity of the health care system,” Acting Assistant Attorney General Boynton said. “This resolution reflects the department’s commitment to protect the right of federal health care program beneficiaries to receive medical care that is not influenced by the financial interests of their health care providers.”
The Anti-Kickback Statute prohibits parties who participate in federal health care programs from knowingly and willfully offering, paying or receiving any remuneration in order to induce the recommendation of any item for which payment is made in whole or in part under a covered federal health care program. The prohibition extends to asset purchases that are intended to induce referrals.
The civil settlement includes the resolution of claims brought under the qui tam, or “whistleblower” provisions, of the False Claims Act by David Freedman, who was the former director of strategic growth for BAYADA between 2009 and 2016. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. As part of today’s resolution, Mr. Freedman will receive more than $3 million. The matter remains under seal as to allegations against entities other than the BAYADA Companies.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the District of New Jersey and the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, with assistance from the U.S. Department of Health and Human Services Office of Inspector General.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The government is represented by Assistant U.S. Attorney Daniel Meyler of the Health Care Fraud Unit in the District of New Jersey and Trial Attorney Samson Asiyanbi of the Civil Division.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
The qui tam case is captioned: United States ex rel. Freedman v. BAYADA Home Health Care, Inc., No. 17-cv-6267 (NLH) (D.N.J.).
Home Health Agency Operator BAYADA to Pay $17 Million to Resolve False Claims Act Allegations for Paying KickbackRead the Press Release
BAYADA, BAYADA Home Health Care Inc., BAYADA Health LLC and BAYADA Home Care (collectively, the BAYADA Companies), headquartered in Moorestown, New Jersey, have agreed to pay $17 million to resolve allegations that they violated the False Claims Act’s Anti-Kickback Statute by paying a kickback to a retirement home operator by purchasing two of its home health agencies (HHAs) located in Arizona.
The United States alleges that the BAYADA Companies bought the two HHAs to induce referrals to BAYADA of Medicare beneficiaries from retirement communities operated by the seller throughout the United States, and that from Jan. 1, 2014 through Oct. 31, 2020, the BAYADA Companies submitted false claims for payment to Medicare for services provided to beneficiaries referred to BAYADA as a result of the kickback transaction.
“Parties who pay or receive kickbacks in order to induce referrals undermine the integrity of the health care system,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “This resolution reflects the department’s commitment to protect the right of federal health care program beneficiaries to receive medical care that is not influenced by the financial interests of their health care providers.”
“When healthcare providers make or induce referrals that are based on kickback arrangements rather than the best interests of patients, they risk patient harm, threaten the integrity of federal healthcare programs and violate federal law,” said Acting U.S. Attorney Rachael A. Honig for the District of New Jersey. “The U.S. Attorney’s Office for the District of New Jersey and our partners in the Department of Justice and at the Department of Health and Human Services Office of Inspector General (HHS-OIG) will continue to pursue those who, like BAYADA, offer kickbacks for patient referrals, no matter the disguise those kickback arrangements might wear.”
The Anti-Kickback Statute prohibits parties who participate in federal health care programs from knowingly and willfully offering, paying or receiving any remuneration in order to induce the recommendation of any item for which payment is made in whole or in part under a covered federal health care program. The prohibition extends to asset purchases that are intended to induce referrals.
The settlement with the BAYADA Companies includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by David Freedman, who was the former director of strategic growth for BAYADA between 2009 and 2016. Under those provisions, a private party can file a civil action on behalf of the United States and receive a portion of any recovery. As part of today’s resolution, Mr. Freedman will receive more than $3 million. The matter remains under seal as to allegations against entities other than the BAYADA Companies.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of New Jersey, with assistance from the HHS-OIG.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to HHS at 800-HHS-TIPS (800-447-8477).
The matter was handled by Trial Attorney Samson Asiyanbi of the Fraud Section and Assistant U.S. Attorney Daniel Meyler for the District of New Jersey.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Hattiesburg Felon Sentenced to 15 Years in Federal Prison for Multiple Firearms OffensesRead the Press Release
Hattiesburg, Miss. – A Hattiesburg man was sentenced today to serve 180 months in federal prison for being a felon in possession of multiple firearms and possessing firearms in furtherance of a drug trafficking crime, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad Byerley with the Drug Enforcement Administration (DEA).
Sternell Christopher Johnson, also known as “KayNine”, age 26, pled guilty on April 8, 2021 to possessing multiple firearms in furtherance of a drug trafficking crime after being a previously convicted felon.
According to court documents, on August 8, 2020, Johnson and others led the Lamar County Sheriff’s Office on a motor vehicle chase down Highway 98 in Hattiesburg before Johnson’s vehicle crashed and Johnson fled on foot. Three firearms were recovered from the vehicle, as well as several large bags of marijuana weighing approximately 1.5 kilograms. A review of Johnson’s social media accounts in the days leading up to the chase showed that Johnson was in possession of firearms from the vehicle as well as the marijuana.
Additionally, based on admissions made by Johnson in a video interview uploaded to YouTube, Johnson was held accountable for additional firearms that appeared in various music videos made featuring Johnson, resulting in an additional enhancement to his sentence. Overall, Johnson was held accountable for possessing more than 25 firearms.
“The Drug Enforcement Administration is proud to partner with the Lamar County Sheriff’s Office and the Hattiesburg Police Department to help combat the illicit narcotics activities and violent crimes occurring in the community. The key to having a safe community is strong partnerships and interagency cooperation amongst all law enforcement agencies. I feel we have that in Hattiesburg,” stated DEA Assistant Special Agent in Charge Kevin J. Gaddy.
The Drug Enforcement Administration, Lamar County Sheriff’s Office, and Hattiesburg Police Department investigated the case.
Assistant U.S. Attorney Andrew W. Eichner prosecuted the case.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Harrisburg Man Charged with Unlawfully Exchanging $1.8 Million in Federal Nutrition Assistance Benefits for CashRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jimmy Tran, age 40, of Harrisburg, Pennsylvania, was charged in a criminal information with the unauthorized use, acquisition, and possession of benefits of the U.S. Department of Agriculture’s Supplemental Nutrition Assistance Program (SNAP).
According to Acting United States Attorney Bruce D. Brandler, the information alleges that Tran, who owned and operated Asia Market in Harrisburg, unlawfully provided cash in exchange for SNAP benefits between January 2017 and August 2020. The information further alleges that the value of the SNAP benefits exceeded $1.8 million.
The case was investigated by the U.S. Department of Agriculture, Office of Inspector General, and the Federal Bureau of Investigation. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Grosse Pointe Park Man Pleads Guilty to Scheme to Defraud and Steal Funds from Religious CharityRead the Press Release
A Grosse Pointe Park resident pleaded guilty today to one count of wire fraud in connection with obtaining by fraud, embezzling, and stealing the funds of the Holy Cross organization, a large charitable organization based in Clinton, Michigan, that receives federal funds, announced Acting United States Attorney Saima S. Mohsin.
Joining in the announcement was Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Detroit Division.
Pleading guilty before U.S. District Judge Bernard Friedman was John R. Lynch, 56.
According to court records, in March 2012 Lynch became the CFO of the Holy Cross organization, and in January 2015 he became its CEO. Holy Cross was established in 1948 when Boysville of Michigan was incorporated under the auspices of the Roman Catholic Archdiocese of Detroit. Boysville of Michigan later became Holy Cross Children’s Services, which is now known as Holy Cross Services. The Holy Cross organization provides welfare services to disadvantaged children and adolescents, behavioral health services to adolescents and adults, and a number of support services to the homeless. Holy Cross services are provided mostly to individuals in Southeast and Mid-Michigan. The Holy Cross organization also includes the Samaritan Center, a large community resource center that provides healthcare, employment services, and other forms of support to residents of Detroit’s east side.
During today’s plea hearing, Lynch admitted that when he was Holy Cross’s CEO, he used Holy Cross funds to pay for repairs to his own cars, install a new roof on his house, pay down his personal mortgage balance, and make payments on a personal American Express account. Lynch also used Holy Cross funds to pay his own consulting company and to pay another company hired to provide security services at the Samaritan Center, a company ostensibly controlled by a relative but actually controlled by him. Lynch attempted to justify some of these payments with bogus invoices. In addition, Lynch used his corporate Holy Cross American Express card to pay for goods and services of a personal nature.
A sentencing date has been set for January 18, 2022 at 1:30 pm..
Holy Cross received federal funds under the National School Lunch Program and the School Breakfast Program. It also received federal funds under Title IV-E of the Social Security Act, which pays for foster care and provides adoption assistance and guardianship assistance.
The case is being prosecuted by Assistant United States Attorney Stephen Hiyama. The investigation was conducted by the Federal Bureau of Investigation.
Glendale Man Agrees to Plead Guilty in Federal Hate Crime Case for Attacking Family-Owned Restaurant and Making Death ThreatsRead the Press Release
LOS ANGELES – A Glendale man has agreed to plead guilty to federal criminal charges for attacking five victims at a family-owned Turkish restaurant last year while shouting anti-Turkish slurs, hurling chairs at the victims and threatening to kill them, the Justice Department announced today.
William Stepanyan, 23, has agreed to plead to one count of conspiracy and one hate crime charge, according to a plea agreement filed Monday in United States District Court. He is expected to enter a guilty plea to the felony charges in the coming weeks.
Turkey and Armenia are two neighboring countries in the Caucasus region of Asia that have historically experienced significant conflict, part of which has stemmed from Turkey’s support of Azerbaijan in its border conflict with Armenia. When a new war broke out between Armenian and Azeri military forces in September 2020, tensions in Turkish and Armenian communities escalated worldwide, including in the United States. Numerous protests and counter-protests, pitting individuals of Armenian and Turkish descent against one another, took place in Los Angeles County.
According to his plea agreement, on November 4, 2020, Stepanyan, who is Armenian-American, sent a text message saying that he planned to go “hunting for [T]urks.” Later that day, Stepanyan met with his co-defendant Harutyun Harry Chalikyan, 24, of Tujunga, and other Armenian-Americans to protest what they considered to be Turkish aggression against Armenians, express their contempt for Turkey and show their support for Armenia.
Stepanyan, Chalikyan and other Armenian-Americans then drove to the family-owned restaurant, where Stepanyan and Chalikyan stormed into the restaurant and attacked the victims inside. Stepanyan and Chalikyan, who were both wearing masks during the attack, flung chairs at the victims while shouting derogatory slurs about Turkish people. Four of the five victims were of Turkish descent. At least one of the defendants threatened to kill the victims, shouting: “We came to kill you! We will kill you!”
During the attack, multiple victims were injured, including one individual who lost feeling in their legs and collapsed multiple times due to the injury. Also, during the attack, Stepanyan ripped out the restaurant’s computer terminals and stole a victim’s iPhone.
The restaurant suffered at least $20,000 in damage and had to close temporarily, resulting in thousands of dollars in lost revenue.
After he enters the guilty pleas to the two felony offenses, Stepanyan will face a statutory maximum sentence of 15 years in federal prison.
Chalikyan is scheduled to go on trial in this matter on October 26. He has pleaded not guilty to one count of conspiracy and five hate crime charges.
The FBI conducted the investigation in this matter and received substantial assistance from the Beverly Hills Police Department.
Assistant U.S. Attorney Lindsey Greer Dotson of the Public Corruption and Civil Rights Section, and Trial Attorney Michael J. Songer of the Justice Department’s Civil Rights Division are prosecuting the case.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Garner Man Sentenced to 156 Months for Human TraffickingRead the Press Release
RALEIGH, N.C. – Antoine Lamar Wallace, of Garner, was sentenced today to 156 months in prison for sex trafficking of a minor and aiding and abetting.
According to court records and evidence presented at the trial of co-defendant, Jonathan Lynn Jenkins, Wallace and Jenkins prostituted many women between November 2014 and October 2015, including minors. The victims were young, vulnerable, and often struggling to survive. After luring the victims with promises of food, shelter, and a better life, Wallace and Jenkins manipulated and controlled the victims’ lives, isolating them, abusing them, and keeping all money the victims earned.
Wallace and Jenkins were arrested in January 2016. Jenkins, the ringleader of the two, was convicted of multiple human trafficking charges at a federal trial in February. He was sentenced to three consecutive life sentences.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Department of Homeland Security – Homeland Security Investigations, the Raleigh Police Department, the North Carolina State Bureau of Investigation, and the Johnston County Sheriff’s Office investigated the case. Assistant U.S. Attorney Lucy Brown and former Assistant U.S. Attorney Erin Blondel prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:18-CR-451-D.
Former Police Chief Indicted for Possessing Child Pornography While Awaiting Start of Prior Federal Prison Sentence for Distribution of Child PornographyRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that Alexander P. Bebris (age: 52) of Denmark, Wisconsin, was indicted by a federal grand jury in Milwaukee for possessing child pornography.
On November 13, 2020, Bebris, a former career law enforcement officer, was sentenced to 60 months of imprisonment following a conviction in the Eastern District of Wisconsin for distribution of child pornography. He was allowed to remain free pending the outcome of his appeal. On July 15, 2021, the Seventh Circuit Court of Appeals denied Bebris’ appeal and he was ordered to report to federal prison on August 24, 2021.
According to court records, on August 20, 2021, Calumet and Brown County law enforcement executed a search warrant at Bebris’ residence, found Bebris in possession of child pornography, and arrested him. The indictment alleges that Bebris possessed child pornography as a repeat offender and that he did so in violation of the terms of his release.
If convicted, Bebris faces a mandatory minimum sentence of 10 years and up to 30 years of imprisonment. Further, any sentence imposed must be served consecutive to the 60-month sentence already imposed by the court.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices 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.projectsafechildhood.gov.
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For further information contact:
Public Information Officer Kenneth Gales
414-297-1700
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Former Member of New Bedford Latin Kings Chapter Pleads Guilty to Drug Trafficking and Manufacturing ChargesRead the Press Release
BOSTON – A former member of the New Bedford Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) pleaded guilty today to drug charges.
Tanairy Ruiz, a/k/a “Queen Tanairy,” 34, pleaded guilty to conspiracy to manufacture, distribute and possess with intent to distribute cocaine and cocaine base. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Jan. 5, 2022.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
Ruiz admitted to conspiring with other Latin Kings members to manufacture and distribute cocaine base throughout the City of New Bedford. Ruiz resided in one of the many “trap houses” or multi-unit apartment buildings in New Bedford that were controlled by the Latin Kings. Ruiz’s apartment was used as a location where cocaine was “cooked” or manufactured into cocaine base.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against dozens of leaders, members and associates of the Latin Kings. Ruiz is the 51st defendant to plead guilty in the case.
The charge of conspiracy to manufacture, distribute and possess with intent to distribute cocaine and cocaine base provides for a sentence of up to 20 years in prison, a minimum of three years and up to life of supervised release and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Mendell’s Criminal Division 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.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Ericsson Employee Charged for Role in Foreign Bribery SchemeRead the Press Release
A federal indictment was unsealed today in the Southern District of New York charging a former employee of the Swedish multinational telecommunications company Telefonaktiebolaget LM Ericsson (“Ericsson” or “the Company”) for his alleged role in a scheme to pay approximately $2.1 million in bribes to high-level government officials in the Republic of Djibouti and conspiring to launder funds to promote the scheme. The defendant remains at large.
According to court documents, Afework “Affe” Bereket, 53, a dual citizen of Ethiopia and Sweden, allegedly engaged in the scheme between 2010 and January 2014. During that time, Bereket served as the account manager for the Horn of Africa, a region that included Djibouti, while on a long-term assignment for Ericsson in Africa. According to the indictment, Bereket participated in a scheme to bribe two high-ranking officials in Djibouti’s executive branch and a high-level executive at Djibouti’s state-owned telecommunications company to obtain a contract with the state-owned telecommunications company valued at approximately €20.3 million. To effectuate the bribery scheme, Bereket and others caused an Ericsson subsidiary to enter into a sham contract with a consulting company and approve fake invoices to conceal the bribe payments. Bereket and others also completed a draft due diligence report that failed to disclose the spousal relationship between the owner of the consulting company and one of the high-ranking government officials who was bribed. To promote the bribery scheme, Bereket caused Ericsson to transfer the funds to and through bank accounts in the United States.
On Dec. 6, 2019, Ericsson entered into a deferred prosecution agreement with the Department of Justice in connection with a criminal information filed in the U.S. District Court for the Southern District of New York charging the Company with conspiracies to violate the anti-bribery, books and records, and internal controls provisions of the Foreign Corrupt Practices Act (FCPA). An Ericsson subsidiary, Ericsson Egypt Ltd, pleaded guilty on the same day to a one-count criminal information charging it with conspiracy to violate the anti-bribery provisions of the FCPA. Pursuant to its agreement with the department, Ericsson paid a total penalty of over $520 million.
Bereket is charged with one count of conspiracy to violate the FCPA and one count of conspiracy to commit money laundering. If convicted of both counts, Bereket faces a maximum penalty of 25 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“Bereket allegedly used the U.S. financial system to pay bribes to high-level government officials in Djibouti to ensure that Swedish telecom giant Ericsson won a multimillion-dollar government contract,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Today’s unsealed charges demonstrate the department’s commitment to hold individuals accountable for violations of the FCPA and to ensure that business is won or lost on merit, not the amount of bribes a company’s employees and agents are willing to pay.”
“As alleged, Afework Bereket conspired in a corrupt scheme to pay millions of dollars in bribes to two Djibouti government officials and an official of a state-owned telecom company to win a contract for Ericsson valued at more than €20 million,” said U.S. Attorney Audrey Strauss for the Southern District of New York. “To disguise the scheme, Bereket allegedly engaged in financial sleight-of-hand involving a sham consulting contract, a false due-diligence report, and fake invoices. The alleged criminal scheme has been exposed, and Affe Bereket is now charged in our district with serious federal crimes.”
“Our global economy should be one free from corrupt practices,” said Acting Special Agent in Charge Darrell J. Waldon of the IRS-Criminal Investigation’s (IRS-CI) Washington, D.C. Field Office. “The indictment unsealed today reflects the veracity in which IRS-CI will investigate those who engage in bribery to receive their business. Together with our partners at the Department of Justice, we will continue our efforts to ensure fair competition for companies around the world.”
Assistant Chief Andrew Gentin and Trial Attorneys Michael Culhane Harper and James Mandolfo of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys David Abramowicz and Juliana Murray of the U.S. Attorney’s Office for the Southern District of New York are prosecuting the case. The Justice Department’s Office of International Affairs provided investigative assistance.
The Fraud Section has lead responsibility for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Ericsson Employee Charged for Role in Foreign Bribery SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York (“SDNY”), Kenneth A. Polite Jr., the Assistant Attorney General for the Criminal Division of the Department of Justice (“DOJ”), and Darrell J. Waldon, the Acting Special Agent in Charge of the Washington DC Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the unsealing of an indictment charging AFEWORK BEREKET, a/k/a “Affe Bereket,” with conspiring to violate the Foreign Corrupt Practices Act (“FCPA”) and to commit money laundering, in connection with his role in a criminal scheme to bribe foreign government officials perpetrated by Telefonaktiebolaget LM Ericsson (“LM Ericsson”), a multinational telecommunications company headquartered in Sweden, and its subsidiary Ericsson Egypt Ltd. (“Ericsson Egypt” and, collectively with LM Ericsson, “Ericsson”). BEREKET remains at large.
U.S. Attorney Audrey Strauss said: “As alleged, Afework Bereket conspired in a corrupt scheme to pay millions of dollars in bribes to two Djibouti government officials and an official of a state-owned telecom company to win a contract for Ericsson valued at more than €20 million. To disguise the scheme, Bereket allegedly engaged in financial sleight-of-hand involving a sham consulting contract, a false due-diligence report, and fake invoices. The alleged criminal scheme has been exposed, and Affe Bereket is now charged in our District with serious federal crimes.”
Assistant Attorney General Kenneth A. Polite Jr. said: “Bereket allegedly used the U.S. financial system to pay bribes to high-level government officials in Djibouti to ensure that Swedish telecom giant Ericsson won a multimillion-dollar government contract. Today’s unsealed charges demonstrate the department’s commitment to hold individuals accountable for violations of the FCPA and to ensure that business is won or lost on merit, not the amount of bribes a company’s employees and agents are willing to pay.”
IRS-CI Acting SAC Darrell J. Waldon said: “Our global economy should be one free from corrupt practices. The indictment unsealed today, reflects the veracity in which IRS-CI will investigate those who engage in bribery to receive their business. Together with our partners at the Department of Justice, we will continue our efforts to ensure fair competition for companies around the world.
According to allegations in the Indictment, which was unsealed today in Manhattan federal court[1]:
BEREKET, while working for Ericsson, bribed foreign officials in Djibouti in exchange for business with a state-owned telecommunications company there (“Telecom Company-1”). BEREKET was an Ericsson account manager responsible for the Horn of Africa, a region that included Djibouti, from approximately November 2010 until approximately July 2013. According to the indictment, BEREKET and co-conspirators engaged in a scheme to pay approximately $2.1 million in bribes to three foreign officials – two high-ranking foreign officials in the executive branch of Djibouti’s government, and a high-level executive at Telecom Company-1 – in order to help Ericsson obtain and retain a €20,300,000 contract with Telecom Company-1. BEREKET and co-conspirators disguised the bribes as payments to a consulting company linked to one of the foreign officials being bribed. To do so, BEREKET and co-conspirators entered into a sham contract with the consulting company, prepared a false due-diligence report, and caused an Ericsson entity to approve fake invoices. BEREKET discussed the bribery scheme in multiple communications with co-conspirators. In one email, he urged others to pay an invoice from the consulting company “ASAP,” explaining that “[e]verybody in the management of [Telecom Company-1] & in the ministry are waiting their part of the cake.”
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AFEWORK BEREKET, 53, a dual citizen of Ethiopia and Sweden, has been charged in the indictment with one count of conspiring to violate the anti-bribery provision of the FCPA, which carries a maximum potential sentence of five years in prison, and one count of conspiring to commit money laundering, which carries a maximum potential sentence of 20 years in prison.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit and the FCPA Unit of the Fraud Section of DOJ’s Criminal Division. Assistant U.S. Attorneys David Abramowicz and Juliana N. Murray, together with Acting Assistant Chief Andrew Gentin and Trial Attorneys Michael Culhane Harper and James Mandolfo of the Criminal Division’s Fraud Section, are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former Elementary School Employee Charged with Producing Child Pornography Using Two StudentsRead the Press Release
OKLAHOMA CITY — Yesterday, GREG ALLEN HENKE, 40, of Oklahoma City, was charged with possession of child pornography, attempted coercion and enticement of a minor, and sexual exploitation of children, announced Acting U.S. Attorney Robert J. Troester.
On May 13, 2021, FBI agents arrested Henke in Oklahoma City after he met with an undercover agent to attempt to engage in sexual activities with children. He has been in federal custody since his arrest. Prior to his arrest, Henke was employed at Highland Park Elementary School in the Mid-Del school district.
On June 1, 2021, a federal grand jury returned an Indictment against Henke, charging him with attempted receipt of child pornography and attempted coercion and enticement of a minor. That Indictment alleged that on or about May 10, 2021, Henke knowingly attempted to receive child pornography using a means and facility of interstate and foreign commerce. The Indictment further alleged that, between April 1, 2021 and about May 13, 2021, Henke used a cell phone and the internet to attempt to persuade, induce, entice, and coerce a minor to engage in sexual activity.
Yesterday, a federal grand jury returned a Superseding Indictment against Henke. The Superseding Indictment added one charge of possession of material containing child pornography and two charges of production of child pornography to the charges of the original Indictment. Specifically, the Superseding Indictment alleges that between 2019 and 2021, Henke used two minor students at Highland Park Elementary School to engage in sexually explicit conduct. It is alleged that Henke used his cell phone to capture the sexually explicit conduct.
The FBI is seeking to identify potential additional victims. Anyone with additional information to report can call the FBI at (405) 290-7770.
This case is the result of an investigation by the Federal Bureau of Investigation - Oklahoma City Field Division. Assistant U.S. Attorney Bow Bottomly is prosecuting the case.
This case is part of Project Safe Childhood, a nationwide initiative by the Department of Justice (DOJ) to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the DOJ 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.justice.gov/psc.
The public is reminded that these charges are merely allegations and that the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public records for more information.
Former CFO of Long Island Real Estate Company Sentenced to 60 Months in Prison for Multi-Million Dollar FraudRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Kwesi Bovell, the former chief financial officer (CFO) of The Mulholland Group, a real estate company in Manhasset (“Mulholland”), was sentenced by United States District Judge Joan M. Azrack to 60 months’ imprisonment and ordered to pay restitution of $3.45 million for embezzling millions of dollars from his employer over the course of three years.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“To fund a lifestyle of extravagance and opulence, the defendant plundered his employer’s company from the time he was hired until his fraud was discovered three years later, and with today’s sentence, he is punished for his avarice and betrayal,” stated Acting United States Attorney Kasulis. Ms. Kasulis thanked the FBI for its investigative work on the case.
According to court filings, Bovell began embezzling funds shortly after he was hired in 2015 to be the CFO of Mulholland. As CFO, Bovell had signature authority over numerous bank accounts of Mulholland and its subsidiaries. Over the next three years, Bovell fraudulently transferred over $3.5 million from Mulholland to Southgate Holdings, a company controlled by Bovell.
Bovell spent most of the stolen funds on luxury purchases for himself and others. Those expenses included a $66,000 ring, vacations, $500,000 to a woman with whom he was in a relationship, an additional $500,000 into a laundromat business operated, in part, by that woman, approximately $90,000 to another woman for whom he rented an apartment in Manhattan, $722,000 on a failed gym, Evolution Fitness, in Suffolk County, as well as purchases at Brooks Brothers, Cartier, Chanel and Gucci. According to Mulholland, at least $1.5 million remains unaccounted for.
The government’s case is handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor are in charge of the prosecution.
The Defendant:
KWESI BOVELL
Age: 36
Valley Stream, New YorkE.D.N.Y. Docket No. 18-571 (JMA)
Former Army Captain Pleads Guilty to Conflict Charge for Assisting His Wife’s Businesses with Army ContractsRead the Press Release
RALEIGH, N.C. – A former Army Captain, previously stationed at Fort Bragg in Fayetteville, and his wife’s company, White Board Solutions, pled guilty to federal charges today before United States Magistrate Judge Robert Numbers, II.
According to court documents, John Raymond Meier, age 33, was serving as a supply officer in the Third Special Forces Group when his wife, Nicole Anderson Meier, age 34, conducted business with the Army. Under the business name, White Board Solutions, an entity formed in the State of Washington under her maiden name, Nicole Meier agreed to provide three weeks of advanced commercial driver’s training for soldiers who transported supplies to support Third Group’s mission. During 2018, White Board Solutions negotiated six purchase agreements with the Army and received approximately $149,970. Under these agreements, White Board Solutions was required to rent the trucks and provide advanced training. White Board Solutions rented the trucks, but it never provided any advanced training. Since an estimated cost of renting the trucks was only $67,124, the Army overpaid White Board Solutions by $82,845.60. Both defendants have agreed to pay that amount in restitution to the Army.
Nicole Meier, on behalf of White Board Solutions, pled guilty to Theft of Government Property. The entity faces a maximum sentence of five years’ probation and a $500,000 fine.
In addition to the truck training contracts, Captain Meier helped his wife sell other items, like ratchet strips, magazines, firing adapters, targets and ink cartridges to the Army. During the plea hearing, the government told the court about several email communications between the couple. On one occasion, Captain Meier forwarded a request he received in his official capacity for M4 magazines to his wife with instructions for her to find the items and how much she could charge the Army. On another occasion, Captain Meier provided his wife with quotes from other vendors to assure she would submit a lower quote and obtain the Army’s business.
Captain Meier pled guilty to performing official acts affecting a personal financial interest. He faces a maximum sentence of five years’ imprisonment and a $250,000 fine.
Christopher Dillard, Special Agent in Charge of the Mid-Atlantic Field Office for the Department of Defense Office of Inspector General, stated that “John Meier abused his position of public trust for personal gain, diverted proceeds meant to support the warfighter, and undermined the very principles he swore to defend as a U.S. Army officer.”
Floyd Martinez, Special Agent in Charge of the Southeast and Caribbean Regional Investigations Office for the US General Services Administration Office of Inspector General stated that, “GSA and its law enforcement partners are committed to protecting the integrity of the government procurement process and will steadfastly pursue fraud schemes that rob the American taxpayers.”
G. Norman Acker, III Acting U.S. Attorney for the Eastern District of North Carolina said, “The Department of Justice is committed to ensuring that all federal employees who abuse their positions of trust are uncovered and fully prosecuted.”
The Department of Defense Office of Inspector General, the US General Services Administration Office of Inspector General and the US Army Criminal Investigation Command are investigating the case and Assistant U.S. Attorney Susan B. Menzer is prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-cr-00276-D-1.
Felon Who Illegally Possessed Handgun in New Haven is SentencedRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that TYRELL COX-HENDERSON, 28, of New Haven, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to approximately 29 months of imprisonment, time already served, and three years of supervised release, for unlawfully possessing a firearm. Cox-Henderson will serve his first three months of supervised release in home confinement.
According to court documents and statements made in court, on April 10, 2019, Cox-Henderson entered a convenience store in New Haven and placed a Smith & Wesson .357 caliber revolver behind some merchandise on a shelf. Approximately one hour later, Allen Lusmat entered the store and retrieved the firearm from the shelf. Later that day, after New Haven police officers had reviewed the convenience store’s surveillance video, officers stopped a car in which Lusmat was a passenger. As officers approached the vehicle, Lusmat threw a black plastic bag out of the window. A search of bag revealed the firearm that Lusmat retrieved from the store.
Cox-Henderson’s criminal history includes state felony convictions for burglary in the third degree, possession of a weapon or a dangerous instrument in a correctional facility, and conspiracy to commit robbery in the third degree. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Cox-Henderson has been detained since April 10, 2019. On September 14, 2020, he pleaded guilty to possession of a firearm by a felon.
Lusmat, of Bridgeport, pleaded guilty to the same offense and, on August 12, 2021, was sentenced to 37 months of imprisonment.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the New Haven Police Department. The case was prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile.
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.
Dubuque Woman Sentenced to Federal Prison for Crack Cocaine ConspiracyRead the Press Release
A woman who distributed crack cocaine with her father was sentenced September 3, 2021, to eight months in federal prison.
Lekeya Shantay Gillenwater, age 29, from Dubuque, Iowa, received the prison term after a March 1, 2021 guilty plea to one count of conspiracy to distribute a controlled substance.
Information at sentencing showed that, between January 2020 and August 2020, Gillenwater agreed to distribute crack cocaine with her father and others. Law enforcement bought crack cocaine from Gillenwater or her father on four different occasions in the summer of 2020. On August 10, 2020, law enforcement searched Gillenwater’s residence in Dubuque and recovered over 14 grams of crack cocaine, $1,400, and drug packaging.
Gillenwater was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Gillenwater was sentenced to eight months’ imprisonment. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Gillenwater is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Dillan Edwards and investigated by the Dubuque Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-01043.
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Convicted Sex Offender Sentenced to 300 Months for Child Porn ProductionRead the Press Release
WICHITA, KAN. – A Kansas man was sentenced 300 months in prison after pleading guilty to one count of Production of Child Pornography.
Between August 2020 and October 2020, Frederick Martin, 26, of Sedgwick used his cell phone to communicate with a minor female via Snapchat and iMessage. He persuaded the teenage victim to record and send him sexually explicit images of herself. Martin also sent the victim photos of himself engaged in sexual acts. During later interrogations with law enforcement, Martin admitted he became aware of the victim’s age while they were trading nude photos.
At the time of these criminal acts, Martin was on parole for previous convictions in the state of Massachusetts on multiple counts of Rape of A Child and Possession of Child Pornography.
The Kansas Internet Crimes Against Children Task Force and Homeland Security Investigations (HSI), Kansas City investigated the case.
Assistant U.S. Attorney Jason Hart prosecuted the case.
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Convicted Felon Pleads Guilty in Federal Court to Gun and Drug ChargesRead the Press Release
A man who was previously convicted of multiple felony offenses, and later possessed over 1 kilogram of pure methamphetamine and guns, pled guilty on September 7, 2021, in federal court in Cedar Rapids.
Matthew Shawn Victor Bridges, age 30, from Marshalltown, Iowa, was convicted of conspiracy to distribute more than 50 grams of pure methamphetamine, one count of possessing three rifles on January 3, 2020, after having been previously convicted of multiple felony offenses, and one count of possessing two more firearms on February 16, 2020.
In a plea agreement, Bridges admitted that, on January 3, 2020, he was in possession of more than 1000 grams of pure methamphetamine when Iowa Falls police officers responded to a suspicious car near a warehouse. Officers found a running vehicle that contained a large quantity of methamphetamine and three rifles near the vehicle. On February 16, 2020, Iowa Falls police officers were investigating a home invasion and assault when the saw Bridges driving by the scene. When they searched his vehicle, officers found more methamphetamine and two more firearms.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Bridges remains in custody of the United States Marshal pending sentencing. Bridges faces a mandatory minimum sentence of ten years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Patrick Reinert and was investigated by the Iowa Falls Police Department, Hardin County Sheriff’s Department, the Hardin County Attorney’s Office, and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-00108-CJW.
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Commercial Flooring Executive Indicted on Money Laundering Charge as Part of a Long-Running Bid Rigging InvestigationRead the Press Release
Note: The indictment against the Defendant, Michael Zmijewski, was dismissed on Oct. 19, 2022.
A federal grand jury in the Northern District of Illinois returned a one-count indictment charging Michael Zmijewski for his role in a money laundering conspiracy involving kickbacks. Zmijewski is a former President of Mr. David’s Flooring International LLC (Mr. David’s), a Chicago-based commercial flooring contractor. Zmijewski is the sixth individual, along with three companies, that have been charged as result of the ongoing federal antitrust investigation.
According to the indictment, Zmijewski engaged in a money laundering conspiracy to conceal kickback payments he authorized Mr. David’s to pay to Carter Brett, an account executive for a large flooring manufacturer, in exchange for low pricing. According to the charge, Zmijewski authorized checks from Mr. David’s to a shell corporation established by Brett for the sole purpose of receiving the illegal kickback payments. According to the charge, Zmijewski and his co-conspirators carried out the conspiracy from at least as early as 2013 until as late as June 13, 2018.
“The Antitrust Division, together with our law enforcement partners, will vigorously prosecute those who break the law to undermine competition, including those who conspire to launder illicit proceeds of crimes,” said Acting Assistant Attorney General Richard A. Powers of the Department of Justice’s Antitrust Division.
“Kickbacks have no place in the American marketplace,” said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office. “This indictment serves as a warning to anyone looking to profit illegally at the expense of consumers.”
The maximum penalty for conspiracy to commit money laundering is 20 years of imprisonment and a fine of $500,000. The fine may be increased to twice the value of the property involved in the transaction, if that amount is greater than the statutory maximum fine.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The charges are the result of an ongoing federal antitrust investigation into bid rigging, price fixing, and other anticompetitive conduct in the commercial flooring industry, conducted by the Antitrust Division’s Chicago Office and the FBI’s Chicago Field Division.
Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
Colbert Resident Pleads Guilty to Involuntary Manslaughter in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Brittney Nicole Schmidt, 28, entered a guilty plea to Involuntary Manslaughter in Indian Country, in violation of 18 United States Code Sections 1151, 1153, and 1112, punishable by imprisonment for a period of up to 8 years and/or a fine of up to $250,000.00 and a special assessment fee in the amount of $100.00.
The Indictment alleged that on or about August 15, 2018, within the Eastern District of Oklahoma, in Indian Country, the defendant did unlawfully kill another human being while in the commission of an unlawful act not amounting to a felony, that is operating a motor vehicle under the influence of one or more intoxicating substances, contrary to 47 Oklahoma Statute Section 11-902, without due caution and circumspection and with a wanton and reckless disregard for human life, and knew and should have known that her conduct imperiled the lives of others.
The charges arose from an investigation by the Oklahoma Highway Patrol, the Colbert and Calera City Police Departments and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Charlotte County Correctional Officer Pleads Guilty to Attempting to Smuggle Drugs into PrisonRead the Press Release
Fort Myers, Florida – Leslie Samuel Spencer (49, Port Charlotte) has pleaded guilty to attempted distribution of methamphetamine and MDMA (commonly referred to as “Molly”). He faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.
According to court documents, Spencer worked as a correctional officer in Fort Myers at the Charlotte Correctional Institution’s offsite work camp. In March 2021, Spencer agreed to smuggle three ounces of methamphetamine, one ounce of MDMA, a small amount of synthetic marijuana, and two cellphones into the prison and provide it to an inmate in exchange for a payment of $400.
On March 31, 2021, shortly before his shift was to begin, Spencer met with an undercover FBI agent in the parking lot of a retail store located off Dr. Martin Luther King, Jr. Boulevard in Fort Myers. There, the undercover agent provided Spencer with sham drugs, two cellphones, and $400 in cash. Upon leaving the store, Spencer was arrested.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Michael V. Leeman.
Charges Added in Eastern District of California for Madera Man Previously Charged in Washington D.C. District Court Related to Jan. 6 Capitol BreachRead the Press Release
FRESNO, Calif. — Benjamin Martin, 43, of Madera, was charged today by criminal complaint for being a prohibited person in possession of a firearm, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Sept. 2, 2021, Martin was arrested at his residence in Madera on a criminal complaint issued by the District Court for the District of Columbia for charges related to the breach of the U.S. Capitol on Jan. 6, 2021. The FBI also executed federal search warrants at Martin’s residence and found that he possessed several firearms, including a Benelli 12-gauge shotgun and Kimber 1911 pistol. Martin has a prior conviction for a misdemeanor crime of domestic violence and is therefore prohibited from possessing firearms.
This case is the product of an investigation by the FBI. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
If convicted, Martin faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations, and Martin is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Cedar Rapids Heroin Dealer Sentenced to Federal Prison After Heroin He Distributed Led to an OverdoseRead the Press Release
A man who distributed heroin that resulted in an overdose was sentenced September 3, 2021 to more than three years in federal prison.
Diondray Louis Wilson, age 34, from Cedar Rapids, Iowa, received the prison term after a February 8, 2021 guilty plea to one count of distribution of a controlled substance.
Information at sentencing and a prior hearing showed that, on two occasions in 2018 and five occasions in 2019, law enforcement conducted controlled purchases of heroin from Wilson. On November 21, 2019, Wilson distributed heroin to an individual who later overdosed but regained consciousness after emergency personnel arrived.
Wilson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Wilson was sentenced to 41 months’ imprisonment. He must also serve a six-year term of supervised release after the prison term. There is no parole in the federal system.
Wilson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Dillan Edwards and investigated by the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-00091.
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California Man Agrees to Plead Guilty in Federal Hate Crime Case for Attacking Family-Owned Restaurant and Making Death ThreatsRead the Press Release
A California man has agreed to plead guilty today to federal criminal charges for attacking five victims at a family-owned Turkish restaurant last year while shouting anti-Turkish slurs, hurling chairs at the victims and threatening to kill them, Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division and Acting U.S. Attorney Tracy Wilkison of the Central District of California announced.
William Stepanyan, 23, of Glendale, has agreed to plead to one count of conspiracy and one hate crime charge, according to a plea agreement filed Monday in U.S. District Court. He is expected to enter a guilty plea to the felony charges in the coming weeks.
Turkey and Armenia are two neighboring countries in the Caucasus region of Asia that have historically experienced significant conflict, part of which has stemmed from Turkey’s support of Azerbaijan in its border conflict with Armenia. When a new war broke out between Armenian and Azeri military forces in September 2020, tensions in Turkish and Armenian communities escalated worldwide, including in the United States. Numerous protests and counter-protests, pitting individuals of Armenian and Turkish descent against one another, took place in Los Angeles County.
According to his plea agreement, on Nov. 4, 2020, Stepanyan, who is Armenian-American, sent a text message saying that he planned to go “hunting for [T]urks.” Later that day, Stepanyan met with his co-defendant Harutyun Harry Chalikyan, 24, of Tujunga, and other Armenian-Americans to protest what they considered to be Turkish aggression against Armenians, express their contempt for Turkey and show their support for Armenia.
Stepanyan, Chalikyan and other Armenian-Americans then drove to the family-owned restaurant, where Stepanyan and Chalikyan stormed into the restaurant and attacked the victims inside. Stepanyan and Chalikyan, who were both wearing masks during the attack, flung chairs at the victims while shouting derogatory slurs about Turkish people. Four of the five victims were of Turkish descent. At least one of the defendants threatened to kill the victims, shouting: “We came to kill you! We will kill you!”
During the attack, multiple victims were injured, including one individual who lost feeling in their legs and collapsed multiple times due to the injury. Also during the attack, Stepanyan ripped out the restaurant’s computer terminals and stole a victim’s iPhone.
The restaurant suffered at least $20,000 in damage and had to close temporarily, resulting in thousands of dollars in lost revenue.
After he enters the guilty pleas to the two felony offenses, Stepanyan will face a statutory maximum sentence of 15 years in federal prison.
Chalikyan is scheduled to go on trial in this matter on Oct. 26. He has pleaded not guilty to one count of conspiracy and five hate crime charges.
The FBI conducted the investigation in this matter and received substantial assistance from the Beverly Hills Police Department. Assistant U.S. Attorney Lindsey Greer Dotson of the Public Corruption and Civil Rights Section, and Trial Attorney Michael J. Songer of the Justice Department’s Civil Rights Division are prosecuting the case.
Bucks County Man Sentenced to over Three Years for Faking Military Hero Status and Stealing from the GovernmentRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Richard Meleski, 58, of Chalfont, PA, was sentenced to three years and four months in prison, three years of supervised release, and ordered to pay $302,121 in restitution for a particularly disgraceful fraud scheme to steal Veterans Administration (VA) benefits by pretending to be a veteran who had been captured by the enemy during combat.
In July 2020, the defendant pleaded guilty to one count of healthcare fraud, two counts of mail fraud, one count of stolen valor, two counts of fraudulent military papers, as well as two counts of aiding and abetting straw purchases, and one count of making false statements in connection with receiving Social Security Administration disability benefits.
The charges stemmed from Meleski fraudulently claiming to have served as an elite Navy SEAL and falsely representing that he had been a Prisoner of War in order to secure healthcare benefits from the VA worth over $300,000. Due to his false representation as a Prisoner of War, the defendant received healthcare from the VA in Priority Group 3, effectively receiving healthcare before other deserving military service members. In reality, Meleski never served one day in the United States military.
The defendant also filed for monetary compensation from the VA for PTSD suffered during an armed conflict in Beirut in which he rescued injured teammates. In his application for disability benefits for PTSD, Meleski falsely represented that he had been awarded the Silver Star for his heroic actions during his time as a Navy SEAL. Again, Meleski never served a single day in the United States military and was never awarded such commendation. Meleski also submitted another application to the VA for monetary compensation in which he included obituaries of actual Navy SEALs alongside whom he falsely said he had served. He traded on the actions of these true service members in an attempt to bolster his application for monetary benefits.
The defendant also filed for disability benefits from The United States Social Security Administration (SSA) for injuries he claimed to have received during his time in the military. Meleski falsely testified under oath in connection with an SSA Disability proceeding.
“The defendant faked a record as a decorated U.S. Navy SEAL in order to collect numerous forms of taxpayer-funded compensation,” said Acting U.S. Attorney Williams. “The fact that Meleski chose to put himself ahead of true war heroes in order to take advantage of benefits designed specifically for those serving in the U.S. military is profoundly offensive. Our veterans fought for the freedoms we hold dear, and as we approach the twentieth anniversary of the attacks of 9/11 this Saturday, their sacrifices are even more meaningful. The defendant’s actions dishonor all of their legacies.”
“We are grateful to our federal partners for their work in pursuing and prosecuting those who impersonate our nation’s hero’s and unlawfully obtain benefits meant for those who served,” said RADM Karen Flaherty-Oxler (RET), Medical Center Director for the Corporal Michael J. Crescenz (Philadelphia) VA Medical Center. “It is disheartening to see someone who benefited from the service of our Veterans, dishonor them in this manner. Nonetheless, our day-to-day mission of caring for our Veterans continues uninterrupted and with the same vigor and commitment.”
“Today’s sentence sends a clear message that those who benefit from falsely claiming to have served in the United States military will be held accountable,” said Special Agent in Charge Christopher Algieri, Department of Veterans Affairs Office of Inspector General, Northeast Field Office. “The VA OIG appreciates the support of the United States Attorney’s Office and our law enforcement partners in securing justice for our nation’s true heroes.”
“This defendant defrauded the government in many different ways for several years,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “The outcome of this investigation is the result of several law enforcement agencies working together for a common goal – to keep our communities safe from criminals like Meleski. I want to thank our law enforcement partners at the VA OIG, SSA OIG and the U.S Attorney’s Office for this successful prosecution.”
The case was investigated by Department of Veterans Affairs Office of the Inspector General, Social Security Administration Office of the Inspector General, and the Bureau of Alcohol, Tobacco and Firearms, and it is being prosecuted by Special Assistant United States Attorney Megan Curran.
Boston Man Sentenced to 10 Years for Child Pornography OffenseRead the Press Release
BOSTON – A Boston man was sentenced today in federal court in Boston for possessing child pornography.
Paul Fest, 50, was sentenced by U.S. District Court Judge Richard G. Stearns to 10 years in prison and five years of supervised release. On May 4, 2021, Fest pleaded guilty to one count of possession of child pornography.
On Dec. 15, 2020, a search of Fest’s Beacon Hill residence resulted in the seizure of a computer and multiple external storage devices. On one thumb drive, there were over 100 videos and more than 50 images of child pornography.
Acting United States Attorney Nathaniel R. Mendell; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistant U.S. Attorneys Charles Dell’Anno and Kenneth G. Shine of Mendell’s Major Crimes Unit prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Boston Gang Associate Pleads Guilty to Cocaine Trafficking and Firearm OffensesRead the Press Release
BOSTON – A Boston gang associate pleaded guilty yesterday to his role in a cocaine trafficking conspiracy.
Renardo Williams, 44, of South Boston, pleaded guilty to one count of conspiracy to distribute and possession with intent to distribute cocaine and one count of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Jan. 25, 2022.
Investigators identified Williams as a drug customer and distributor for co-defendant Kenji Drayton, the alleged leader of the drug-trafficking organization. In the hours preceding his arrest, investigators intercepted calls and conducted surveillance of Williams and Drayton, which allegedly indicated that Williams sought to purchase drugs from Drayton. At the time of his arrest, Williams was found in possession of approximately 125 grams of cocaine and a loaded firearm. Drayton pleaded not guilty and is pending trial.
In June 2020, Williams was charged along with 23 others as part of Operation Snowfall. According to the charging documents, beginning in November 2018, law enforcement conducted an investigation into drug trafficking activities by Boston-based street gang members and associates in the Commonwealth Development in Brighton, formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the defendants, through their drug trafficking activities, assumed control over multiple apartments, where they stored, cooked, packaged and sold drugs. As a result, their activities caused a blight of the development and reduced the quality of life of the other residents.
The investigation also targeted large-scale drug suppliers and their associates. It is alleged that the targets continued to distribute cocaine and cocaine base throughout the COVID-19 pandemic and shutdown. Williams is the seventh defendant to plead guilty in the case.
Due to a prior felony drug offense, Williams faces a sentence of up to 30 years in prison, at least six years and up to life of supervised release and a fine of up to $2 million on the charge of conspiracy to distribute and possession with intent to distribute cocaine. The charge of possessing a firearm and ammunition by a convicted felon provides for a sentence up to 10 years in person, three years supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistance with the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Offices. Assistant U.S. Attorneys Kaitlin O’Donnell and Timothy Moran of Mendell’s Organized Crime and Gang Unit 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.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boonesboro Man Sentenced to More Than 12 Years in Federal Prison for Coercion and Enticement of a Minor to Produce Child PornographyRead the Press Release
Baltimore, Maryland - U.S. District Judge Stephanie A. Gallagher today sentenced James Maynard, Jr., age 53, of Boonesboro, Maryland, to 150 months in federal prison, followed by 25 years of supervised release, for a federal charge for coercion and enticement of a minor in order to produce and distribute child pornography. Judge Gallagher also ordered that Maynard pay $5,729.24 in restitution to his victim. Finally, Judge Gallagher ordered that upon his release from prison, Maynard must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Jason Lando of the Frederick Police Department.
According to Maynard’s guilty plea, on November 27, 2019, Maynard used a social media account to meet a 14-year-old female, Victim 1, During his initial conversation with the victim over social media, the victim informed Maynard that she was 14 years old and he identified himself as a 52-year-old man. While they did not begin that way, Maynard’s conversations with the victim became increasingly sexual. On the second day of their online communications, November 28, 2019, Maynard asked Victim 1 to send him nude photographs of herself. Victim 1 subsequently took the photos that Maynard requested, using her tablet computer to take the photo while she was in her bedroom. Victim 1 sent the photos to Maynard via her social media account. Maynard made numerous sexually explicit comments about Victim 1’s genitals, and what he wanted to do to her. Maynard persuaded Victim 1 to take and send him more photos. Maynard also sent images of his penis to Victim 1.
After Victim 1 sent Maynard the photographs, she began to feel upset about the social media communications with Maynard. She tried to delete the images of herself, and she asked a trusted adult for help. Around this same time, City of Frederick Police Department detectives and the Federal Bureau of Investigation initiated an investigation and forensically analyzed the tablet computer and social media records. Investigators discovered additional evidence that Maynard was using the internet to exploit Victim 1.
On December 5, 2019, a search warrant was executed at Maynard’s residence and his cell phone was seized. A forensic analysis of the phone revealed several images relevant to the investigation, including an image of Victim 1. Forensic analysis of another computer located in Maynard’s residence revealed that Maynard used the internet to search topics involving minors and sex.
Investigators interviewed Maynard, who initially claimed that he thought Victim 1 was 19-years-old. However, when investigators showed Maynard the content of his online messages with Victim 1, Maynard admitted that he knew the victim was 14-years-old at the time that he communicated with her on social media.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended the FBI and the City of Frederick Police Department for their work in the investigation and thanked the Frederick County State’s Attorney’s Office for its assistance. Mr. Lenzner thanked Assistant U.S. Attorney Christine Duey and Special Assistant U.S. Attorney Joyce King, Chief Counsel with the Frederick County State’s Attorney’s Office, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Belleville Man Sentenced to 21 Years for Armed Robbery of Four Local BusinessesRead the Press Release
EAST ST. LOUIS, Ill. – A Belleville man will be spending over two decades behind bars for stealing cash from four local businesses at gunpoint. Cameron J. Blake, 23, has been sentenced to 252 months in federal prison on four counts of interfering with commerce by robbery and three counts of use of a firearm during and in relation to a crime of violence. Blake pled guilty to the charges back in April.
According to court documents, the crimes occurred in December of 2019. On December 2, 2019, Blake entered two different ZX gas stations, one in Swansea and one in Belleville, and a Huck’s Food and Fuel in Belleville, and demanded money. Blake brandished a gun with a flashlight attachment and took cash from employees by force. On December 27, 2019, Blake entered a Domino’s Pizza in Belleville, and again displayed a firearm with a flashlight attachment when he demanded cash.
As part of his sentence, Blake was also ordered to serve a three-year term of supervised release.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The investigation was conducted by Belleville Police Department, Swansea Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The case was prosecuted by Assistant United States Attorney Alexandria Burns.Bath Man Going to Prison for 10 Years on Child Pornography ConvictionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Charles Augrom, III, 35 of Bath, NY, who was convicted of possession of child pornography following a prior child pornography conviction, was sentenced to serve 121 months in prison by Chief U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that in July 2020, an undercover law enforcement officer was investigating individuals using peer-to-peer file sharing applications to share child pornography over the internet. During the undercover session, the officer downloaded numerous pictures and videos of child pornography that traced back to an IP address belonging to the defendant. Some of the images and videos included children younger than 12 years old engaged in sexual conduct with adults, as well as depictions of violence. On December 10, 2020, investigators executed a search warrant at Augrom’s William Street residence and seized electronic items that were later found to contain more than 600 images depicting child pornography. The defendant is a Level III register sex offender on the New York State Sex Offender Registry, following two prior New York State child pornography convictions.
The sentencing is the result of an investigation by the Corning Office of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
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Bank Insider Sentenced for Fraudulent Loan SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that HERODE CHANCY, who at the time of the offense was employed as a manager at a Manhattan branch of a national bank (“Bank-1”), was sentenced today to 30 months in prison for his role in a commercial loan fraud scheme for loans totaling over $1 million. CHANCY’s sentence was imposed by United States District Judge Lewis J. Liman.
U.S. Attorney Audrey Strauss said: “Bank employee Herode Chancy used fake businesses, doctored bank statements, and stolen identities in an effort to obtain over $1 million in commercial loans. Now Chancy has rightly been sentenced to prison for his crime. Prosecutions like this one should serve as notice to individuals in positions of trust at financial institutions that engaging in corrupt criminal conduct will lead to prosecution and prison.”
According to the Complaint, Indictment, and statements made in court:
From at least in or about March 2019 up to and including at least in or about March 2020, CHANCY and codefendant Adedayo Ilori conspired to fraudulently obtain business loans from a third-party commercial lender with the intent not to repay the loans – i.e., with the intent to “bust out” the loans. CHANCY and Ilori together submitted eight fraudulent business loan applications for a total of $1,025,000 in business loans. The business loan applications submitted by CHANCY and Ilori included doctored bank statements and listed the identities of other persons as the loan applicants, including stolen identities. CHANCY and Ilori also opened bank accounts using the identities of those other persons in order to receive the loan payments from the third-party commercial lender. CHANCY and Ilori subsequently conspired with codefendant Michael Albarella, another bank manager at Bank-1, to open a bank account using a stolen identity to launder approximately $200,000 of the expected proceeds of the loan scheme. Albarella opened the bank account at Bank-1 using the stolen identity provided by CHANCY and Ilori, and Albarella accepted a $10,000 bribe to open the bank account.
CHANCY and Ilori believed that the underwriter for the third-party commercial lender was participating in the scheme and agreed to pay the underwriter a “commission” for the underwriter’s role in the scheme. In reality, however, the underwriter was an undercover law enforcement officer.
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In addition to the prison term, CHANCY, 41, of Bellerose, New York, was sentenced to two years of supervised release and ordered to forfeit $10,000 in fraudulent proceeds.
On August 5, 2021, Albarella was sentenced to six months in prison and three years of supervised release by Judge Liman. Ilori is scheduled to be sentenced on October 13, 2021.
Ms. Strauss praised the outstanding investigative work of the New York FBI’s Eurasian Organized Crime Task Force and Homeland Security Investigation’s El Dorado Task Force.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Tara M. La Morte and Cecilia E. Vogel are in charge of the prosecution.