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Thursday 29 July 2021
Boston Man Sentenced to 14 Years in Prison for Armed Robbery of Brockton Cell Phone StoreRead the Press Release
BOSTON – A Boston man was sentenced yesterday in federal court in Boston in connection with the March 2019 robbery of a T-Mobile store in Brockton and shooting at police officers as he and his co-defendants fled the scene.
Darius Carter, 28, was sentenced by U.S. District Court Judge Allison D. Burroughs to 14 years in prison and three years of supervised release. The government recommended a sentence of 217 months in prison. On March 31, 2021, Carter pleaded guilty to interference with commerce by robbery; conspiracy to interfere with commerce by robbery; discharging, brandishing, using and carrying a firearm during the commission of a crime of violence; and being a felon in possession of firearms and ammunition.
Darius Carter and co-defendants Diovanni Carter and Stephan Rosser-Stewart were charged in March 2019. Diovanni Carter was convicted by a federal jury and sentenced to 270 months in prison in September 2020. Rosser-Stewart has pleaded not guilty and is pending trial.
According to the charging documents, on the evening of Jan. 26, 2019, Darius Carter and, allegedly, Rosser-Stewart entered a T-Mobile store in Brockton. It is alleged the men were carrying semi-automatic firearms, which they pointed at the store manager as they demanded cash and electronics. Carter struck the store manager in the head with a firearm and demanded that the manager open the door to a rear room with a large safe containing cell phones and cash. The men allegedly stole approximately $25,000 in cash and electronics, left the store and fled in a getaway vehicle driven by Diovanni Carter.
Police responded and a high-speed chase ensued that reached over 70 mph in residential neighborhoods. During the chase, Darius Carter and, allegedly, Rosser-Stewart fired eight rounds at the pursuing police cruisers.
Darius Carter and Rosser-Stewart were apprehended and according to court documents, the stolen phones, cash and the three firearms used in robbery were recovered. Diovanni Carter was apprehended in March 2019.
Darius Carter and his co-defendants were prohibited from possessing firearms and ammunition due to prior criminal convictions.
Acting United States Attorney Nathaniel R. Mendell; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; John Gibbons, U.S. Marshal of the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy J. Cruz; Plymouth County Sheriff Joseph D. McDonald Jr.; and Brockton Police Chief Emanual Gomes made the announcement today. Assistant U.S. Attorney Glenn MacKinlay, Chief of Mendell’s Organized Crime & Gang Unit and Assistant U.S. Attorney Philip A. Mallard prosecuted the case.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the charging documents are allegations. The remaining defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Beaver Falls Man Admits Lying on Firearms Purchase FormsRead the Press Release
PITTSBURGH, PA - A resident of Beaver Falls, Pennsylvania, has pled guilty to a charge of making a false statement to purchase firearms, Acting United States Attorney Stephen R. Kaufman announced today.
Calvin Brady Jr, age 24, plead guilty before Judge David S. Cercone on July 29, 2021.
In connection with the guilty plea, the court was advised that on December 12, 2020, the Brady Jr. purchased four Taurus, model GC3, 9mm caliber pistols from Rural King Holdings LLP, a federal firearm licensee in Monaca, PA. During the purchase, two males accompanied the defendant. Surveillance footage shows the defendant and the two males browse firearms, one of the males select three extended pistol magazines, and the defendant purchased four pistols and the extended magazines.
The following day, the New Jersey State Police arrested the two males who accompanied the defendant during the purchase of the pistols and extended magazines. The arrest occurred following a highspeed chase, during which the two males threw firearms from their vehicle. Following the arrest, New Jersey law enforcement recovered three Taurus pistols from the side of the road. A firearms trace of the recovered pistols revealed that the defendant bought the firearms the day prior from Rural King in Beaver, PA.
Prior to purchasing the pistols, the defendant certified to the federal firearm licensee that he was purchasing the firearms for himself. The investigation revealed that the defendant lied when he made this statement as he was purchasing the firearms for another, which is a violation of federal law.On December 17, 2020, federal agents arrested the defendant while he was an occupant in a vehicle. During the arrest, law enforcement recovered a firearm in the driver’s possession. An examination of the firearm’s serial number revealed that it was the fourth pistol purchased by the defendant on December 12, 2020.
Judge Cercone scheduled sentencing for Dec. 2, 2021. The law provides for a term of imprisonment of not more than ten years, a $250,000 fine, a term of supervised release of not more than three years and/or a special assessment of $100. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered Brady Jr to remain detained.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that lead to the prosecution of Calvin Brady Jr.
Aventura Veterinarian Pleads Guilty to Receiving and Possessing Child Pornography and to Creating an Animal Crush VideoRead the Press Release
Miami, Florida – Prentiss K. Madden, a licensed veterinarian who recorded himself sexually abusing dogs, shared the bestiality videos on-line, and collected on-line child pornography, pled guilty today in Miami federal court.
During the hearing before U.S. District Judge Jose E. Martinez, Madden admitted that he repeatedly accessed a Dropbox account containing images of child pornography, received child pornography photographs and videos through social media chats, talked about child sexual abuse during chats, and stored thousands of child pornography images in his Dropbox account and cellular telephones. Madden also admitted that he produced videos of himself engaged in sexual activity with dogs and shared them with others in chats. Madden kept these bestiality videos, as well as chats about bestiality, in his cellular telephones.
Madden pleaded guilty to three counts of receipt of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2); one count of possession of child pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(B); and one count of creation of an animal crush video, in violation of Title 18, United States Code, Section 48(a)(2)(B), a federal statute that punishes acts of animal torture, including bestiality.
Madden’s sentencing hearing is scheduled for October 8, 2021, at 11:30 a.m., before Judge Martinez. Madden faces a mandatory minimum sentence of five years in prison, and a maximum penalty of 87 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida; Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office; and Alfredo Ramirez, Director, Miami Dade Police Department, made the announcement.
HSI Miami and Miami Dade Police Department investigated the case, with assistance from Hialeah Police Department, U.S Customs and Border Protection, and Florida Department of Law Enforcement.
Assistant United States Attorney Christopher Hudock is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
If you have information regarding this case, or you believe you or a family member may have been a victim, please contact the HSI tip line at 1-866-347-2423.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case no. 21-cr-20248.
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Aroostook County Man Pleads Guilty to Federal Drug ChargeRead the Press Release
BANGOR, Maine: An Aroostook County man pleaded guilty yesterday in federal court to conspiring to distribute and possess with intent to distribute methamphetamine, Acting U.S. Attorney Donald E. Clark announced.
According to court records, between approximately July 2018 and May 2019, members of the conspiracy obtained methamphetamine in western and southern states from sources in Mexico. Zane Willhide, 24, and his co-conspirators then distributed the drugs in Aroostook County and other parts of central and northern Maine.
Willhide faces between 10 years and life in prison and a fine of up to $10 million. He also faces between five years and a lifetime of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Drug Enforcement Administration, Homeland Security Investigations and the Maine Drug Enforcement Agency investigated this case with the assistance of multiple state and local law enforcement agencies.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Alien Sentenced for Federal CrimesRead the Press Release
Jackson, Miss. – A former Jackson resident, who is an alien from India, was sentenced to serve 15 months in prison and pay $4,710 in restitution for money laundering and firearms offenses, announced Acting U.S. Attorney Darren J. LaMarca.
An original indictment naming ten defendants in the United States and abroad, charged Lovepreet Singh, an Indian national then residing and working as an interstate truck driver based in Indianapolis, IN, with acts supporting a conspiracy defrauding multiple victims, as part of an international tech support and telemarketing fraud scheme
According to the indictment and testimony in court, beginning in 2015 and continuing through 2018, Singh conspired with nine other defendants, located across the United States and in India, to commit the federal offenses of wire fraud, mail fraud, and bank fraud, in addition to offenses of money laundering, aggravated identity theft, and passing fictitious obligations.
Conspirators in Mississippi and elsewhere would obtain the telephone numbers and email addresses of computers belonging to various individuals throughout the United States. Conspirators established and operated various business entities such as World Tech Assistance, and US Support Inc., in Mississippi and elsewhere in the United States. Conspirators engaged telephone calling centers in India, which would place calls to the United States numbers and appear to be coming from United States-based toll-free numbers. Conspirators would call victims in the United States, advising the victims that malware and ransomware were infecting the victims’ computers and devices, and that the victims should contact the conspirators for assistance.
Conspirators misrepresented themselves as “Apple Support” or “Microsoft” or other legitimate and known technical support services, and offered their assistance to remove the software, in return for payment. Victims responded to the conspirators’ phone calls and pop up messages to send monies and payments, by wire, check and other means. Victims also granted conspirators access to the victims’ bank accounts and to the victims’ computers, permitting the conspirators to further enrich themselves by fraudulent appropriation and taking of the money and property of the victims.
Victims sent money and payments to conspirators in Mississippi and in India. Conspirators in Mississippi would also send payments and monies to their co-conspirators in India.
In March, 2021, Singh pled guilty to one count of money laundering, in that Singh admitted to receiving and transmitting money obtained by his codefendants as a result of the fraud scheme, and one count of unlawful possession of a firearm.
The case was investigated by Homeland Security Investigations with assistance from the United States Marshals Service who assisted with the nationwide search and arrests of defendants.
The case is being prosecuted by Assistant United States Attorney Theodore Cooperstein.
Accountant Indicted for Embezzling More Than $140,000 in Tribe FundsRead the Press Release
LAS VEGAS, Nev. – An accountant for the Las Vegas Paiute Tribe made her initial appearance in federal court today for allegedly embezzling more than $140,000 from the Tribe.
As alleged in court documents, from March 2018 to July 2018, Linnie Arline Craner, 48, issued at least 18 checks — totaling over $140,000 — from the Tribe’s business checking account for her personal benefit. Craner allegedly falsified information in the Tribe’s accounting system so that it appeared the checks were made out to vendors for legitimate business purposes. But those checks were deposited into Craner’s personal bank account and used to pay off her auto loans.
Craner is charged with three counts of wire fraud and one count of embezzlement and theft from an Indian tribal organization. If convicted, she faces a statutory maximum penalty of 25 years in prison and a $250,000 fine. A jury trial has been scheduled to begin on September 27, 2021, before U.S. District Judge Andrew P. Gordon.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI made the announcement.
This case was investigated by the FBI. Assistant U.S. Attorney Jim Fang is prosecuting the case.
An indictment merely alleges that crimes have been committed. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Wednesday 28 July 2021
Wood County man admits to violation against a minorRead the Press Release
CLARKSBURG, WEST VIRGINIA – Steven Lockhart, of Davisville, West Virginia, has admitted to trying to meet a minor for sex, Acting U.S. Attorney Randolph J. Bernard announced.
Lockhart, 57, pleaded guilty today to one count of “Attempted Coercion and Enticement of a Minor.” Lockhart admitted to using his phone to entice a minor in Harrison County to engage in sexual activity in April 2020.
Lockhart faces at least 10 years and up to life 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 Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The Bridgeport Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Winslow Man Sentenced for Benefits FraudRead the Press Release
BANGOR, Maine: A Winslow man was sentenced today in federal court for Social Security fraud, health care fraud and theft of government money, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge Nancy Torresen sentenced Robert Curtis, 63, to three years of probation, including six months of home confinement. He was also ordered to pay $92,071.90 to the Social Security Administration (“SSA”) and $25,307.35 to the Maine Department of Health & Human Services (“ME/DHHS”) in restitution. Curtis pleaded guilty on March 31, 2021.
According to court records, Curtis was a recipient of Social Security Disability Insurance (“SSDI”) benefit payments beginning in February 2011. SSDI benefits are paid to people who are blind or disabled. He also was a recipient of MaineCare coverage beginning in April 2010 and Supplemental Nutrition Assistance Program (SNAP) benefit payments beginning in February 2011. These programs have reporting requirements for work activity and income, which can affect eligibility for benefits.
During the time he was receiving benefits under these programs, Curtis worked as a medication deliverer. He also served as the lead plaintiff in a civil suit for lost wages, alleging that he should have been classified as an employee instead of an independent contractor, for which he was awarded $21,472.42. He failed to inform SSA or ME/DHHS of his work activity and income, despite periodic reminders that he was required to report it. He also denied any such activity to SSA in a continuing disability review in 2013, and to ME/DHHS in annual reviews in 2011 through 2017, because he knew it could affect his eligibility for benefits. As a result, he improperly received over $92,000 in SSDI benefits, almost $12,000 in SNAP benefits, and over $13,000 in MaineCare benefits.
SSA’s Office of the Inspector General and ME/DHHS investigated this case.
Windsor Woman Sentenced to Federal Prison for Role in Northeast "Grab and Go" Theft SchemeRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that AYSIA RYAN, 22, of Windsor, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 36 months of imprisonment, followed by three years of supervised release, for participating in an extensive commercial larceny spree.
This case stems from “Operation American Steal,” a long-term multi-agency investigation into numerous “grab and go” thefts from various retail fashion stores in Connecticut and nearby states. A “grab-and-go” scheme is a type of theft where one or more perpetrators enter a retail store, grab as many items of clothing or other goods as they can carry, leave the store without paying for the merchandise, and depart in a waiting getaway vehicle.
Ryan was part of a network of individuals who in 2019 and 2020 committed more than 50 grab and go thefts from Polo Ralph Lauren, T.J. Maxx, Balenciaga, Burberry, Macy’s, Marshalls, Dick’s Sporting Goods, Tommy Hilfiger and other stores in Connecticut, Massachusetts, New Hampshire, Vermont, and New York. They then transported the stolen merchandise to Connecticut and sold the items on the internet or the street.
Ryan participated in at least 23 thefts resulting in losses of more than $40,000.
Judge Bryant ordered Ryan to pay $22,900 in restitution.
On September 15, 2020, a grand jury returned a six-count indictment charging Ryan and seven other individuals. Ryan has been detained since November 6, 2020. On April 28, 2021, she pleaded guilty to one count of conspiracy to transport and possess stolen property.
This matter is being investigated by the Federal Bureau of Investigation and the Hartford, New Canaan, Wrentham (Mass.), Auburn (Mass.) and Nassau County (N.Y.) Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Margaret Donovan and Brendan Keefe.
Wilkes-Barre Man Indicted on Drug Trafficking and Firearms ChargesRead the Press Release
SCRANTON -The United States Attorney’s Office for the Middle District of Pennsylvania announced that on July 27, 2021, Modest Moreno, age 31, of Wilkes-Barre, Pennsylvania, was indicted by a federal grand jury on drug trafficking and firearms charges.
According to Acting United States Attorney Bruce D. Brandler, the indictment alleges that Moreno distributed and possessed with the intent to distribute cocaine, heroin and fentanyl between June 2021 and July 13, 2021, in Wilkes-Barre, Pennsylvania. The indictment also alleges that Modesto, a person prohibited from possessing a firearm, possessed a Ruger handgun.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Luzerne County Drug Task Force. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments 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 30 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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West Virginia, Maryland, and Washington, D.C. residents indicted on firearms and drug trafficking chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Twelve people are facing multiple firearms and drug charges after a federal Grand Jury handed down a firearms and drug trafficking indictment on July 21, 2021, Acting United States Attorney Randolph J. Bernard announced.
The twelve West Virginia, Maryland, and Washington, D.C. residents are facing charges involving a firearms and drug trafficking conspiracy in Berkeley County and elsewhere from April 2019 to December 2020. Fifteen firearms were seized as part of the investigation, and so far three have been recovered in Washington, D.C. Those charged are:
- Tyrone Greenfield, also known as “Tidy,” 44, of Martinsburg, West Virginia
- Antonio Paul Brown, 37, of Martinsburg, West Virginia
- Jerome Winecoff, also known as “Q,” 43, of Washington, D.C.
- Hope Julia Clemons, 31, of Martinsburg, West Virginia
- Marcus Purnell, also known as “Mo,” 34, of Oxon Hill, Maryland
- Jennifer Lynn Dick, 46, of Martinsburg, West Virginia
- Charles Grant, Jr., 60, of Waldorf, Maryland
- Matthew Crimm, 29, of Bunker Hill, West Virginia
- Brandon Dale Benjamin, 24, of Bunker Hill, West Virginia
- Samuel Curtis Taylor, 54, of Martinsburg, West Virginia
- Sean Amos Robinson, also known as “Zoo,” 36, of Martinsburg, West Virginia
- Craig Orndoff, 34, of Martinsburg, West Virginia
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The FBI; U.S. Marshals Service; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms, & Explosives; the West Virginia Air National Guard; the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Harpers Ferry Police Department, and the Metropolitan Police Department of Washington, D.C. investigated. The EPDTF consists of the West Virginia State Police, Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, Ranson Police Department, the Charles Town Police Department, and the Martinsburg Police Department.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Virginia Inmate Pleads Guilty to Involvement in Pandemic Unemployment Benefits SchemeRead the Press Release
NORFOLK, Va. – A Virginia inmate pleaded guilty today to his involvement in a scheme to obtain pandemic-related unemployment benefits by using the personal identifying information of over 30 other Virginia prison inmates.
According to court documents, in 2020, Michael Lee Lewis, Jr., 41, of Chesapeake, was incarcerated at the Augusta Correctional Center. Beginning in May 2020, he worked with Mary Landon Benton, 38, of Portsmouth, and Angelica Cartwright-Powers, 35, of Norfolk to collect the personally identifiable information of other inmates to fraudulently apply for Virginia unemployment benefits during the COVID-19 pandemic. Lewis provided Benton and Cartwright-Powers information for inmates at the Augusta Correctional Center, resulting in approximately twenty-one successful unemployment claims for inmates there. Benton, with the help of Lewis and the others, submitted successful applications for Virginia unemployment benefits for 31 inmates, and Cartwright-Powers submitted successful applications for four inmates.
Lewis and his co-conspirators, along with the prisoners whose information was used for the unemployment applications, shared the proceeds of the crimes, which amounted to over $330,000. Although the conspirators initially obtained $436,834, the Virginia Employment Commission was able to reclaim some of the disbursed funds after discovering the fraud.
Benton and Cartwright-Powers have since pleaded guilty to their respective roles in the conspiracy. Lewis pleaded guilty to one count of mail fraud and is scheduled to be sentenced on December 2. He faces a maximum penalty of 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Joseph V. Cuffari, Inspector General for the Department of Homeland Security; Derek Pickle, Special Agent-in-Charge of the Washington, DC Regional Office, U.S. Department of Labor, Office of Inspector General; and Paul Haymes, Chief of Investigations, Virginia Department of Corrections, Special Investigations Unit, made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea.
Assistant U.S. Attorney Rebecca Gantt is prosecuting the case.
This investigation was conducted under the auspices of “Operation Checkmate,” the Virginia Department of Corrections Inmate Unemployment Insurance Fraud Task Force. The task force is led by the U.S. Attorney’s Office for the Eastern District of Virginia, DOL-OIG, DHS-OIG, and the Virginia Department of Corrections. This investigation included assistance from the U.S. Secret Service’s Richmond Field Office, the Portsmouth Police Department, and the Virginia Employment Commission.
On May 17, 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-33.
Two St. Joseph Men Indicted for Heroin Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Two St. Joseph, Missouri, men have been indicted by a federal grand jury for their roles in a conspiracy to distribute heroin and for illegally possessing firearms.
Roderick A. Hughes, 48, and Franklin T. Hicks Jr., also known as “Frankie,” 40, were charged in a seven-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Wednesday, July 21. That indictment was unsealed and made public today following their arrest.
The federal indictment alleges that Hughes and Hicks participated in a conspiracy to distribute one kilogram or more of heroin from Sept. 1, 2019, to March 26, 2021.
In addition to the drug-trafficking conspiracy, Hughes and Hicks are charged together with one count of possessing heroin with the intent to distribute and one count of possessing firearms in furtherance of a drug-trafficking crime. They allegedly were in possession of a silver revolver (with no marking), a Glock 9mm handgun, a Stoeger 9mm handgun, and a Jennings Bryco 9mm handgun on Feb. 23, 2021. Hughes and Hicks are also charged together with one count of being felons in possession of the Glock 9mm handgun, Stoeger 9mm handgun, and Jennings Bryco 9mm handgun.
Hicks is also charged with one count of possessing heroin with the intent to distribute, one count of possessing firearms in furtherance of a drug-trafficking crime, and one count of being a felon in possession of firearms. Hicks allegedly possessed a Rock Island Armory .380-caliber handgun and a Ruger 9mm handgun on Jan. 22, 2021.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Byron H. Black. It was investigated by the St. Joseph, Mo., Police Department, the Buchanan County, Mo., Sheriff’s Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Trash Company Executive Agrees to Plead Guilty to Conspiracy and to Cooperate with Federal Investigation into City Hall CorruptionRead the Press Release
SAN FRANCISCO - Paul Fredrick Giusti, the former Group Government & Community Relations Manager for the San Francisco group of a waste management company, was charged in an information filed yesterday with one count of conspiracy to bribe a local official and commit honest services fraud and has agreed in a plea agreement to plead guilty and cooperate with federal investigators in the corruption investigation into San Francisco City Hall, announced Acting United States Attorney Stephanie M. Hinds, Federal Bureau of Investigation Special Agent in Charge Craig D. Fair, and Internal Revenue Service Criminal Investigation Acting Special Agent in Charge Michael Daniels.
Giusti, 65, of San Francisco, was originally charged in a federal criminal complaint filed on November 18, 2020, that alleged Giusti, who worked in the San Francisco group of the waste management company, was a central player in helping the company bribe Mohammed Nuru, then San Francisco’s Director of the Department of Public Works (DPW), with a continuous stream of benefits and money, ultimately worth over $1 million, to influence Nuru to perform official acts that would favor the waste management company.
The federal information filed yesterday elaborates on the steps Giusti allegedly took to bribe Nuru. According to the information’s allegations, Nuru was a powerful San Francisco public official who, in his position as DPW Director, presided over the rate process governing how much the waste management company could charge residents of San Francisco for solid waste collection services. Nuru further influenced rates known as “tipping fees” that the company charged DPW when DPW dumped materials at one of the company’s facilities. Nuru’s power and influence over City business also extended beyond DPW matters to other City departments and agencies.
The information alleges that between 2014 and January 2020, Giusti conspired with others to direct a stream of payments and benefits from the waste management company to Nuru, directly or through his designees. The payments and benefits included gifts, services, financial contributions to organizations, and other things of value including the following: (1) payments of approximately $150,000 per year, in $30,000 installments, from 2014 into 2019 to a San Francisco non-profit organization, knowing that Nuru ultimately controlled this money; (2) $60,000 from 2016 to 2019 to fund the annual DPW holiday party, made as “holiday donations” to the Lefty O’Doul’s Foundation for Kids; (3) a job provided to Nuru’s son at the waste management company’s subsidiary; and (4) internships funded by the waste management company for Nuru’s son in the summer of 2017 and summer of 2018 at a San Francisco non-profit on whose board Giusti served. The information alleges these payments and benefits were made with the knowledge and approval of Giusti’s supervisor and were intended to reward or influence Nuru in exchange for official acts or influence in matters that would benefit the waste management company, all while depriving San Francisco of the honest services of its DPW Director.
Giusti has agreed to cooperate with federal investigators in the ongoing federal investigation. According to a court filing, “Mr. Giusti has signed a cooperation plea agreement in which he has agreed to plead guilty and testify, provide documents, and otherwise assist in the government’s investigation.”
Giusti was arraigned today on the information in federal magistrate court before United States Magistrate Judge Alex G. Tse. He is currently scheduled to make his initial appearance on August 9, 2021, before United States District Judge Chhabria in San Francisco, however, a notice of related case has been filed, the ultimate result of which may be a change in time and place of the hearing. Giusti remains out of custody on bond.
The charges contained in the information are mere allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
Giusti is charged with one count of conspiracy to bribe a local official and to commit honest services fraud, in violation of 18 U.S.C. § 371. If convicted of this charge, he faces a maximum penalty of 5 years in prison and a fine of $250,000 or twice the gross gain or gross loss, whichever is higher. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Corporate Fraud Strike Force of the U.S. Attorney’s Office. The case is being investigated by IRS Criminal Investigation and the FBI.
Trafficking meth with firearm lands felon back in prisonRead the Press Release
CORPUS CHRISTI, Texas – A Texas Syndicate gang member has been ordered to federal prison for possessing a semi-automatic handgun in furtherance of a drug-trafficking crime and possession with intent to distribute meth, announced Acting U.S. Attorney Jennifer B. Lowery.
Benjamin Govella, 42, Corpus Christi, pleaded guilty May 4.
Today, U.S. District Judge Drew B. Tipton ordered him to serve a 72-month sentence for the meth trafficking. He also received an additional 60 months for the firearms charge which must be served consecutively to the other sentence imposed. Following the 132-month term of imprisonment, Govella must also serve three years of supervised release. At the hearing, the court heard how authorities had originally conducted a traffic stop in early 2020. They subsequently arrested him on a parole violation and for possession of a firearm by a convicted felon. The investigation revealed the Sig Sauer 9mm semi-automatic pistol had been stolen. Govella had also discussed drug trafficking while he was in jail.
On Nov. 18, 2020, authorities executed a federal arrest warrant on Govella, who was riding a bicycle near an apartment complex in Corpus Christi. At that time, he possessed a backpack containing a Ruger SR9C 9mm pistol and nearly 50 grams of pure meth as well as two loaded magazines and a scale.
Govella will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Corpus Christi Police Department (CCPD) conducted the investigation with the assistance of the CCPD Narcotics Vice Investigations Division. Assistant U.S. Attorney Reid Manning prosecuted the case.
Tomah Man Sentenced to over 17 Years for Using Minors to Produce Child PornographyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Shannon R. Donoho, 43, Tomah, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 210 months in federal prison for possessing child pornography and using minors to produce child pornography. This prison term is to be followed by 25 years of supervised release. Donoho was convicted of these charges on May 13, 2021, after a three-day jury trial in federal court in Madison.
The investigation in this case began when law enforcement downloaded child pornography made available by Donoho on an online file sharing network. Following a search warrant executed at Donoho’s home, law enforcement recovered hundreds of images and videos of child pornography from the defendant’s computers and external storage devices. These images and videos included depictions of children as young as five years old engaged in sexually explicit conduct.
Law enforcement also determined Donoho used hidden cameras to record at least two children with whom he had personal relationships between 2016 and 2018. The defendant secretly recorded these victims, who were under the age of 12 at the time, as they showered and used the bathroom at his home and the home of a former girlfriend. The resulting videos and screenshots focused on the victims’ genitals and were also saved to Donoho’s computers and external hard drives. He produced the images using multiple hidden GoPro cameras.
In sentencing Donoho, Judge Conley emphasized the defendant’s supervisory control over the two identified victims that he recorded. This supervisory control included babysitting them and giving them rides to school. Judge Conley found that Donoho’s manipulation of his position of trust was an aggravating factor, as was the subsequent traumatization of these children following the discovery of the secret recordings.
The charges against Donoho were the result of an investigation conducted by the Wisconsin Department of Justice Division of Criminal Investigation and the Tomah Police Department. The prosecution of the case has been handled by Assistant U.S. Attorneys Julie S. Pfluger and Taylor L. Kraus.
Tiverton Man Charged with Enticement, Transporting a Minor with Intent to Engage in Criminal Sexual ActivityRead the Press Release
PROVIDENCE, R.I. – A 20-year-old Tiverton man is facing charges in federal court in Providence on allegations that he allegedly enticed and transported a 13-year-old from Pennsylvania to Tiverton with the intent to engage in sexual activity.
William Stewart was arrested by Tiverton Police on July 5, 2021, one day after allegedly arriving with the minor at the home of his grandparents. It is alleged that Stewart picked up the minor late in the evening of June 30 at or near the victim’s grandparents’ home in Pennsylvania. The minor was reported missing on the morning of July 1. It is alleged that Stewart engaged in sexual contact with the minor on multiple occasions while en route to Rhode Island, and while at his grandparent’s home.
Stewart is charged by way of a federal criminal complaint with transportation of a minor with the intent to engage in criminal sexual activity, interstate travel with intent to engage in illicit sexual conduct, and coercion and enticement of a minor to engage in illicit sexual activity, announced Acting United States Attorney Richard B. Myrus.
According to a criminal complaint filed with the court, it is alleged that Stewart, who was living with his father in Pennsylvania, and the 13-year-old, who was living with grandparents in Pennsylvania, exchanged communications via Snapchat prior to meeting in person on June 30. In Snapchat communications obtained by court order as part of a Pennsylvania State Police missing juvenile investigation, while the two talked about traveling to Rhode Island together, the minor told Stewart that she was 13 years old.
According to court documents, while the two were en route to Rhode Island, Stewart allegedly made stops in Philadelphia and Camden, NJ, prior to arriving at a motel in New London, CT. Stewart and the minor stayed at a motel in New London for three days, in the room of an acquaintance of Stewart. While there, it is alleged that Stewart had sexual contact with the minor multiple times. Stewart purchased a wig to disguise the minor. The two then drove to Rhode Island, arriving at the home of Stewart’s grandparents on July 4.
According to the criminal complaint, on July 5, the minor contacted a friend via Snapchat and asked for help. The minor allegedly tried to leave Stewart on at least two occasions, but Stewart threatened harm with a knife.
Based on information provided by Pennsylvania law enforcement, Tiverton Police went to the home of Stewart’s grandparents where they located the missing minor and Stewart in the basement of the residence. As part of their investigation, Tiverton Police conducted a court-authorized search of the residence and seized multiple items including a black knife, a wig, and bedding. Stewart is currently detained at the Adult Correctional Institutions on state charges brought in this matter.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney G. Michael Seaman, with the assistance of Assistant U.S. Attorney John P. McAdams.
The investigation is being conducted by the Tiverton Police Department, the FBI, and Homeland Security Investigations.
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Three California Residents Plead Guilty to Failing to Assist Customs Officers at Local Border CrossingsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Ahmad Sami, 46, Ceasar Sami, 21, and Rania Alkanj, 33, all of Corona, California, pleaded guilty to failing to assist customs officers. The charges carry a maximum penalty of one year in prison and a fine of $100,000.
Special Assistant U.S. Attorney Jeffrey T. Fiut, who is handling the cases, stated that in 2018, the defendants drove or attempted to drive multiple luxury vehicles into the United States without declaring to customs officers that the vehicles were intended to be sold within the United States.
On June 3, 2018, Ahmad Sami and Ceasar Sami drove a Range Rover into the United States through the Peace Bridge Port of Entry. On June 27, 2018, at the Rainbow Bridge Port of Entry, Ahmad Sami entered the United States in a black GMC Sierra, and Alkanj entered in a Ford F-150. On two other occasions in June 2018, Ahmad Sami and Alkanj traveled across the Rainbow Bridge together in a Jeep Wrangler and a white GMC Sierra. In July 2018, the defendants attempted to transport three additional vehicles into the United States, but each vehicle was denied entry. On July 16, 2018, at the Blue Water Bridge Port of Entry in Port Huron, Michigan, Ahmad Sami attempted to cross the border in a Toyota Camry and Alkanj attempted to cross in a Toyota RAV4, but customs officers turned away each of these vehicles. Less than a week later, Ceasar Sami tried to drive a Chevy Colorado into the United States at the Lewiston Bridge Port of Entry, but this vehicle was also denied entry.
The defendants failed to declare to customs officers that the vehicles were intended to be sold within the United States, resulting in each defendant owing duty and related fees to the United States Government. Ahmad Sami owed $20,681.09; Alkanj owed $15,735.99; and Ceasar Sami owed $965.71.
The pleas are the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
Ahmad Sami and Ceasar Sami are scheduled to be sentenced before U.S. Magistrate Judge Jeremiah J. McCarthy on August 19, 2021, at 2:00 p.m. and September 24, 2021, at 4:00 p.m., respectively. Alkanj is scheduled to be sentenced before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. on August 24, 2021, at 2:00 p.m.
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Thibodaux Man Pleads Guilty in Federal Court to Attempted Coercion and Enticement of a MinorRead the Press Release
Acting United States Attorney Ellison C. Travis announced that Dillon M. Guidry, age 28, of Thibodaux, Louisiana, pled guilty before Brian A. Jackson to attempted coercion and enticement of a minor. As a result of his conviction, Guidry faces a significant term of imprisonment, a fine, and a period of supervised release.
According to admissions made during his plea, on or about March 17, 2021, an FBI online covert employee (“OCE”), herein referred to as “OCE 1,” while working in an undercover capacity in the Middle District of Louisiana and posing as a 13-year-old female, posted a message on a social media mobile application (“Mobile App”). On March 18, 2021, Guidry contacted OCE 1 on the Mobile App. During his communication with OCE 1, Guidry indicated that he was a 28-year-old male and acknowledged the age of OCE 1 as 13 years old. During the same conversation, Guidry and OCE 1 exchanged phone numbers.
From approximately March 18 through May 20, 2021, Guidry engaged in sexually explicit text messages with OCE 1. During these text messages, Guidry misrepresented his identity, and claimed that his name was “James from Gonzales.” On April 14, 2021, Guidry asked OCE 1 whether they could have sexual intercourse. OCE 1 replied that she was not on birth control and asked Guidry to bring condoms when they met to have sexual intercourse. Also, on April 14, 2021, Guidry sent OCE 1 a picture of his face, which law enforcement officers later used to match with Guidry’s photo on the Lafourche Parish Sheriff’s Office sex offender registration website. On April 22, 2021, Guidry asked OCE 1 if she has any friends that he could have sexual intercourse with. When OCE 1 replied yes, Guidry asked for the friend’s age. OCE 1 replied “13 like me.”
On April 27, 2021, OCE 1 provided Guidry with a telephone number utilized by a second OCE (“OCE 2”) working in an undercover capacity in the Middle District of Louisiana and posing as a 13-year-old female. On or about April 27, 2021, Guidry texted OCE 2. OCE 2 advised Guidry that she was 13 years old. From approximately April 27 through May 20, 2021, Guidry engaged in sexually explicit text messages with OCE 2.
On April 29, 2021, Guidry texted OCE 2 about meeting in person to have sexual intercourse. OCE 2 asked when they would meet, and Guidry replied that they would meet on May 20, 2021. Guidry explained that he would meet OCE 1 and OCE 2 at OCE 1’s house. On May 20, 2021, Guidry traveled to a location designated by OCE 1, located within the Middle District of Louisiana, for the purpose of engaging in sexual activity with two females who Guidry believed to be 13-year-olds. While driving to the meeting location, Guidry stopped and purchased condoms. Guidry arrived in the area of the meeting location in Baton Rouge, Louisiana at approximately 6:45 PM. Based on the aforementioned communications, law enforcement officers arrested Guidry for various child exploitation offenses.
Acting U.S. Attorney Ellison C. Travis stated, “Our children are among the most vulnerable in our society. This plea demonstrates our dedication to protecting children from predators who seek to exploit them. I want to thank our prosecutors, the FBI, and our state and local law enforcement agencies for their partnership and collaboration on this case.”
This matter is being investigated by the Federal Bureau of Investigation, Department of Homeland Security, the Louisiana Attorney General’s Office, Louisiana State Police, and the East Baton Rouge Parish Sheriff's Office and is being prosecuted by Assistant United States Attorney Edward H. Warner and Assistant United States Attorney Jamie A. Flowers Jr., who also serves as Deputy Chief for the United States Attorney’s Office.
Texas Man Sentenced for $24 Million COVID-19 Relief Fraud SchemeRead the Press Release
A Coppell businessman was sentenced today to more than 11 years in prison for wire-fraud and money-laundering offenses in connection with his fraudulent scheme to obtain approximately $24.8 million in forgivable Paycheck Protection Program (PPP) loans, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah and Assistant Attorney General Kenneth A Polite Jr. of the Justice Department’s Criminal Division.
Dinesh Sah, 55, of Coppell, pleaded guilty on March 24. He was sentenced today by U.S. District Judge Karen Gren Scholer, who also ordered him to pay $17,284,649.79 in restitution.
According to court documents, Sah submitted 15 fraudulent applications, filed under the names of various purported businesses that he owned or controlled, to eight different lenders seeking approximately $24.8 million in PPP loans.
He claimed that these businesses had numerous employees and hundreds of thousands of dollars in payroll expenses when, in fact, no business had employees or paid wages consistent with the amounts claimed in the PPP applications.
Sah further submitted fraudulent documentation in support of his applications, including fabricated federal tax filings and bank statements for the purported businesses, and falsely listed other persons as the authorized representatives of certain of these businesses without the authority to use their identifying information on the applications.
“Congress passed the Paycheck Protection Program to help struggling businesses stay afloat, not to fund faux entrepreneurs’ luxury lifestyles,” said Acting U.S. Attorney Prerak Shah. “Even as COVID-19 devastated companies around the nation, Mr. Sah sapped millions of dollars from the relief fund that could have helped them. He exploited the pandemic for personal gain, and we are proud to hold him accountable.”
“Today’s sentence serves as a clear reminder that individuals who exploit COVID-relief programs to enrich themselves will be held accountable under the law,” said Assistant Attorney General Kenneth A. Polite Jr. “The Department of Justice and its law enforcement partners remain committed to aggressively pursuing and bringing to justice those who steal federal funds intended to help legitimate small businesses.”
Based upon his false statements and fabricated documents, Sah received over $17 million in PPP loan funds and diverted the proceeds for his personal benefit, using them to purchase multiple homes in Texas, pay off the mortgages on other homes in California, and buy a fleet of luxury cars, including a Bentley convertible, Corvette Stingray, and Porsche Macan. Sah also sent millions of dollars in PPP proceeds in international money transfers. As part of his guilty plea, Sah agreed to forfeit, among other property, eight homes, six luxury vehicles, and more than $9 million in fraudulent proceeds that the government has seized to date.
“This sentencing serves as a deterrent to all who would attempt to commit fraud against any of the COVID-19 relief programs,” said Special Agent in Charge Christopher J. Altemus Jr. of the IRS – Criminal Investigation Dallas Field Office. “These programs are here to help during a pandemic, not for fraudsters like Sah to take advantage of for their own personal gain.”
The Dallas Field Offices of the FDIC-OIG, IRS-Criminal Investigation, and U.S. Treasury Inspector General for Tax Administration investigated the case. Assistant Deputy Chief Anna G. Kaminska of the Criminal Division’s Fraud Section and Section Chief Katherine Miller of the U.S. Attorney’s Office for the Northern District of Texas prosecuted the case. Assistant U.S. Attorneys Erica Hilliard and Dimitri Rocha handled the asset-forfeiture component of the case.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The Fraud Section leads the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real-estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/cares-act-fraud.
Anyone with general 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.
Texas Man Sentenced for $24 Million COVID-19 Relief Fraud SchemeRead the Press Release
A Texas man was sentenced today to more than 11 years in prison for wire-fraud and money-laundering offenses in connection with his fraudulent scheme to obtain approximately $24.8 million in forgivable Paycheck Protection Program (PPP) loans.
Dinesh Sah, 55, of Coppell, pleaded guilty on March 24, 2021. According to court documents, Sah submitted 15 fraudulent applications, filed under the names of various purported businesses that he owned or controlled, to eight different lenders seeking approximately $24.8 million in PPP loans. Sah claimed that these businesses had numerous employees and hundreds of thousands of dollars in payroll expenses when, in fact, no business had employees or paid wages consistent with the amounts claimed in the PPP applications. Sah further submitted fraudulent documentation in support of his applications, including fabricated federal tax filings and bank statements for the purported businesses, and falsely listed other persons as the authorized representatives of certain of these businesses without the authority to use their identifying information on the applications.
“Today’s sentence serves as a clear reminder that individuals who exploit COVID-relief programs to enrich themselves will be held accountable under the law,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The Department of Justice and its law enforcement partners remain committed to aggressively pursuing and bringing to justice those who steal federal funds intended to help legitimate small businesses.”
“Congress passed the Paycheck Protection Program to help struggling businesses stay afloat, not to fund faux entrepreneurs’ luxury lifestyles,” said Acting U.S. Attorney Prerak Shah for the Northern District of Texas. “Even as COVID-19 devastated companies around the nation, Mr. Sah sapped millions of dollars from the relief fund that could have helped them. He exploited the pandemic for personal gain, and we are proud to hold him accountable.”
“This sentencing serves as a deterrent to all who would attempt to commit fraud against any of the COVID-19 relief programs,” said Special Agent in Charge Christopher J. Altemus Jr. of the IRS–Criminal Investigation Dallas Field Office. “These programs are here to help during a pandemic, not for fraudsters like Sah to take advantage of for their own personal gain.”
“The Treasury Inspector General for Tax Administration aggressively pursues those who endeavor to defraud programs afforded to the American people under the CARES Act,” said J. Russell George, the Treasury Inspector General for Tax Administration (TIGTA). “We appreciate the efforts of the Department of Justice and our law enforcement partners in this effort.”
Based upon his false statements and fabricated documents, Sah received over $17 million in PPP loan funds and diverted the proceeds for his personal benefit, using them to purchase multiple homes in Texas, pay off the mortgages on other homes in California and buy a fleet of luxury cars, including a Bentley convertible, Corvette Stingray and Porsche Macan. Sah also sent millions of dollars in PPP proceeds in international money transfers. As part of his guilty plea, Sah agreed to forfeit, among other property, eight homes, six luxury vehicles and more than $9 million in fraudulent proceeds that the government has seized to date.
In addition to the prison sentence, Sah was ordered to pay $17,284,649.79 in restitution.
The Dallas Field Offices of the FDIC-OIG, IRS-Criminal Investigation and U.S. Treasury Inspector General for Tax Administration investigated the case.
Assistant Deputy Chief Anna G. Kaminska of the Criminal Division’s Fraud Section and Section Chief Katherine Miller of the U.S. Attorney’s Office for the Northern District of Texas prosecuted the case. Assistant U.S. Attorneys Erica Hilliard and Dimitri Rocha handled the asset-forfeiture component of the case.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The Fraud Section leads the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real-estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/cares-act-fraud.
Anyone with general 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.
Syracuse Man Sentenced to Ten Years for Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Thomas Sczerbaniewicz, age 53, of Syracuse, was sentenced today to serve 120 months (ten years) in federal prison for possessing child pornography. The announcement was made by Acting United States Attorney Antoinette T. Bacon and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his previously entered guilty plea, Sczerbaniewicz admitted that he was convicted of possessing child pornography in 2009, was on supervised release for that offense at the time he committed the current offense in January 2021, and committed the new offense while in the bathroom of his sex offender counseling service using a mobile phone to access the internet and view child exploitation images.
Senior United States District Judge David N. Hurd also sentenced Sczerbaniewicz to four (4) months imprisonment for violating the terms of his supervised release (to be served concurrently with his 120-month sentence) and to a new 15-year term of supervised release to begin following his imprisonment. Sczerbaniewicz also will be required to continue to register as a sex offender upon his release from prison.
Sczerbaniewicz’s case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI), after a referral from the United States Probation Office. The case was prosecuted by Assistant U.S. Attorney Michael D. Gadarian as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
St. Louis man pleads guilty to drug trafficking and weapons charges resulting in deathRead the Press Release
ST. LOUIS – Floyd Barber, 25, of St. Louis, Missouri, appeared before United States District Court Judge Ronnie L. White on today’s date and pleaded guilty to conspiracy to possess with an intent to distribute controlled substances, conspiracy to possess a firearm in furtherance of a drug trafficking crime and possession of a firearm in furtherance of a drug trafficking crime resulting in death.
On October 3, 2017, Barber and others traveled in a vehicle to the 4700 block of Goodfellow Boulevard in St. Louis to buy controlled substances from an individual. After buying drugs from this individual and leaving the area, Defendant and his associates returned to the area to steal drugs, money, and other valuables from that same individual. Barber and one or more of his associates were armed with loaded firearms.
During the robbery, Barber and one or more of his accomplices shot the victim multiple times. The victim died from his gunshot wounds.
The judge has not set a sentencing date.
The St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case.
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St. Croix Man Occupying a Marijuana Grow Operation Sentenced to over Five Years in Federal Prison for Carrying of a Firearm during a Drug Trafficking Offense and Illegal Use of WAPA UtilityRead the Press Release
St. Croix, USVI – United States Attorney Gretchen C.F. Shappert announced today that Troy Lance Patterson age 52, of St. Croix was sentenced on July 27, 2021 in federal court by Judge Wilma Lewis to a term of sixty months of incarceration for Carrying of a Firearm during a Drug Trafficking Offense followed by four months of incarceration on the Illegal Use of Utility charge, to be served consecutively. Patterson had pled guilty to the charges on October 20, 2020.
According to court documents, aerial surveillance of Patterson’s Anna’s Hope, Christiansted residence revealed that the residence was a potential marijuana cultivation site. On September 18, 2019, federal agents executed a federal search warrant at the residence and located Patterson in possession of an unlicensed, loaded, and operable .38 special revolver, which the agents confiscated. During the subsequent search of Patterson’s residence, agents located over 80 rounds of ammunition, multiple scales, plastic baggies, approximately 168 gross grams of cocaine hydrochloride, approximately 117 grams of marijuana, and $12,473.00 in U.S. currency.
Federal agents also located a multi-room indoor marijuana grow operation containing marijuana plants for which electricity was supplied by way of an unauthorized Water and Power Authority (WAPA) utility connection, violations of federal and Virgin Islands law.
Patterson was also sentenced to a term of four years supervised release, was ordered to pay restitution in the amount of $3969 to the V.I. Water and Power Authority, was fined $1000, and was ordered to pay a special assessment fee of $100. The confiscated $12,473.00 in U.S. currency, firearm and ammunition were forfeited.
The case was being investigated by the Virgin Islands Police Department and the Drug Enforcement Administration. It is being prosecuted by Assistant U.S. Attorney Melissa P. Ortiz.
Springfield Woman Sentenced for Theft of Government MoneyRead the Press Release
BOSTON – A Springfield woman was sentenced yesterday in federal court in Boston for stealing more than $260,000 in government benefits.
Debbie Moore, 57, was sentenced by U.S. District Court Judge Richard G. Stearns to five years of supervised release, with the first six months served under house arrest, and was ordered to pay restitution of $261,933. The government recommended a sentence of 18 months in prison. In September 2020, Moore pleaded guilty to one count of theft of government money.
From November 2003 through February 2018, the Social Security Administration deposited $261,933 in Social Security Retirement benefits intended for Moore’s aunt-in-law into a bank account controlled by Moore after her aunt-in-law had passed away. Moore used the money for various personal expenses.
Acting United States Attorney Nathaniel R. Mendell and Jack Jermaine, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division made the announcement today. Assistant U.S. Attorney Catherine G. Curley of Mendell’s Springfield Branch Office prosecuted the case.
Six Indicted in International Scheme to Defraud Qatari School Founder and then Launder over $1 Million in Illicit ProceedsRead the Press Release
LOS ANGELES – A federal grand jury indictment unsealed this week alleges an elaborate scheme to steal more than $1.1 million from a businessperson attempting to finance the construction of a school for children in Qatar – and the subsequent laundering of illicit proceeds through bank accounts around the world.
The three-count indictment returned on April 29 and unsealed Monday charges three U.S.-based defendants who were arrested last week – as well as three defendants believed to be in Africa – with conspiracy to commit wire fraud, conspiracy to engage in money laundering, and aggravated identity theft.
The criminal complaint that initiated the prosecution in February was also unsealed Monday, revealing that Ramon Olorunwa Abbas – also known by his social media handle of “Ray Hushpuppi” – was initially charged in this case. Court documents ordered unsealed today show that Abbas, a 37-year-old Nigerian national, pleaded guilty on April 20. A version of Abbas’ plea agreement filed late Tuesday outlines his role in the school-finance scheme, as well as several other cyber and business email compromise schemes that cumulatively caused more than $24 million in losses.
“The defendants allegedly faked the financing of a Qatari school by playing the roles of bank officials and creating a bogus website in a scheme that also bribed a foreign official to keep the elaborate pretense going after the victim was tipped off,” said Acting United States Attorney Tracy L. Wilkison. “Mr. Abbas, who played a significant role in the scheme, funded his luxurious lifestyle by laundering illicit proceeds generated by con artists who use increasingly sophisticated means. In conjunction with our law enforcement partners, we will identify and prosecute perpetrators of business email compromise scams, which is a massive and growing international crime problem.”
“Mr. Abbas, among the most high-profile money launderers in the world, has admitted to his significant role in perpetrating global BEC fraud, a scheme currently plaguing Americans,” said Kristi K. Johnson, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “His celebrity status and ability to make connections seeped into legitimate organizations and led to several spin-off schemes in the U.S. and abroad. Today’s announcement deals a crucial blow to this international network and hopefully serves as a warning to potential victims targeted with this type of theft.”
According to the indictment, Abbas allegedly conspired with Abdulrahman Imraan Juma, a.k.a. “Abdul,” 28, of Kenya, and Kelly Chibuzo Vincent, 40, of Nigeria, to defraud the Qatari businessperson by claiming to be consultants and bankers who could facilitate a loan to finance construction of the planned school. Juma allegedly posed as a facilitator and consultant for the illusory bank loans, while Abbas played the role of “Malik,” a Wells Fargo banker in New York, according to court documents. Vincent, in turn, allegedly provided support for the false narratives fed to the victim by, among other things, creating bogus documents and arranging for the creation of a fake bank website and phone banking line.
Yusuf Adekinka Anifowoshe, a.k.a. “AJ,” 26, of Brooklyn, New York, allegedly played a role in the fraud, assisting Abbas with a call to the victim posing as “Malik.” Special agents with the FBI arrested Anifowoshe in New York on July 22.
The conspirators allegedly defrauded the victim out of more than $1.1 million.
The proceeds of the fraud allegedly were laundered in several ways. According to the indictment, Abbas was assisted in laundering the proceeds of the fraud by Rukayat Motunraya Fashola, a.k.a. “Morayo,” 28, of Valley Stream, New York, and Bolatito Tawakalitu Agbabiaka, a.k.a. “Bolamide,” 34, of Linden, New Jersey. These two defendants also were arrested on July 22 by FBI agents.
Approximately $230,000 of the stolen funds allegedly were used to purchase a Richard Mille RM11-03 watch, which was hand delivered to Abbas in Dubai and subsequently appeared in Hushpuppi’s social media posts. Other illicit proceeds from the scheme were allegedly converted into cashier’s checks, including $50,000 in checks that were used by Abbas and a co-conspirator to fraudulently acquire a St. Christopher and Nevis citizenship, as well as a passport for Abbas obtained by creating a false marriage certificate and then bribing a government official in St. Kitts.
Court documents outline a dispute among members of the conspiracy, which allegedly prompted Vincent to contact the victim and claim that Abbas and Juma were engaged in fraud. After this contact, Abbas allegedly arranged to have Vincent jailed in Nigeria by Abba Alhaji Kyari, 46, of Nigeria. According to the affidavit, Kyari is a highly decorated deputy commissioner of the Nigeria Police Force who is alleged to have arranged for Vincent to be arrested and jailed at Abbas’ behest, and then sent Abbas photographs of Vincent after his arrest. Kyari also allegedly sent Abbas bank account details for an account into which Abbas could deposit payment for Vincent’s arrest and imprisonment.
Anifowoshe, Fashola and Agbabiaka were arrested in New York and New Jersey on July 22, and they are expected to be arraigned in Los Angeles in August. All three are currently free on bond.
A criminal complaint and an indictment contain allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Both conspiracy counts alleged in the indictment carry a statutory maximum sentence of 20 years in federal prison. Aggravated identity theft carries a mandatory two-year prison term.
The FBI is investigating this matter as part of Operation Top Dog. The FBI thanks the government of the United Arab Emirates and the Dubai Police Department for their substantial assistance in this matter. The FBI also thanks the Kenyan Office of Attorney General, Office of the Director of Public Prosecutions, and Directorate of Criminal Investigations for their substantial assistance.
This case is being prosecuted by Assistant United States Attorney Khaldoun Shobaki of the Cyber and Intellectual Property Crimes Section. The Criminal Division’s Office of International Affairs provided substantial assistance in this matter.
Silvis Man Sentenced to 144 months in Prison for Attempted Enticement of a MinorRead the Press Release
Rock Island, Ill. – A Silvis, Ill., man, Michael Robert McKinney, 23, has been sentenced to 144 months in prison, to be followed by 20 years of supervised release, for attempted enticement of a minor.
On March 11, 2021, McKinney entered a plea of guilty to the indictment, which charged him with one count of attempted enticement of a minor. According to court documents McKinney traveled from Silvis, Ill., to Rock Island, Ill., after responding to an online advertisement. McKinney intended to meet with the father who posted the advertisement, in order to engage in oral sex with his eleven-year-old daughter.
McKinney has remained in the custody of the U.S. Marshals since his arrest on November 13, 2020.
“Working with the FBI and our other law enforcement partners, we will continue to prosecute those who intend to sexually harm children,” said Acting U.S. Attorney Douglas J. Quivey. “Hopefully, this case and others like it will serve to remind anyone with the inclination to prey upon children to think twice and to stop. Children and parents need to remain constantly vigilant and exercise caution when accessing the internet, communication apps, and similar platforms.”
FBI Special Agent in Charge Sean Cox stated, “Crimes against children are some of the most reprehensible acts that law enforcement is determined to prevent and punish. The FBI will use every available resource to find and arrest those intent on harming our children. Today’s sentence sends a clear message to others who seek to exploit the innocence of children online - law enforcement is watching, and you will be caught. The successful outcome of this case is credited to the Springfield Child Exploitation Task Force, a collaboration with our federal, state and local law enforcement partners.”
The investigation was conducted by the Federal Bureau of Investigation with assistance from Rock Island Police, Illinois State Police, East Moline Police, Davenport Police, Galesburg Police, Knox County Sheriff’s Department and Macomb Police. Assistant United States Attorney Jennifer L. Mathew represented the government in the prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Sapulpa Man Sentenced to 15 years in Federal Prison for Attempting to Lure a Minor for SexRead the Press Release
A Sapulpa man who thought he was meeting a 14-year-old for sex but instead was met by deputies from the Rogers County Sheriff’s Office was sentenced today in federal court, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge Gregory K. Frizzell sentenced Nicholas Robert Hale, 36, to serve 15 years in federal prison followed by a lifetime of supervised release. Hale pleaded guilty to attempted coercion and enticement of a minor in April.
“The U.S. Attorney’s Office and our law enforcement partners will identify, locate, and prosecute individuals, like Nicholas Hale, who seek to harm children,” said Acting U.S. Attorney Clint Johnson. “The Rogers County Sheriff’s Office and Assistant U.S. Attorneys Chris Nassar and Sandy Urban are to be commended for taking this child predator off the streets.”
In a written plea agreement, Hale admitted that from Nov. 9, 2020, to Dec. 22, 2020, he used a social media app to persuade and entice an individual he believed was a minor to engage in sexual activity. Hale believed he was interacting with a 14-year-old male but instead was communicating with an undercover officer from the Rogers County Sheriff’s Office. The two eventually agreed to meet at a convenience store in Verdigris in order to have sex. When Hale arrived, he was arrested and found to be in possession of methamphetamine, a loaded pistol in the front driver’s side door and an AR-15 rifle in the trunk of the car. During the investigation, child pornography, also known as child sexual abuse material, was discovered on Hale’s electronic devices.
The Rogers County Sheriff’s Office opened the investigation into Hale after they received a tip that Hale had tried to entice a minor living within the Northern District of Oklahoma.
The Rogers County Sheriff’s Office conducted the investigation with assistance from the Creek County Sheriff’s Office. Assistant U.S. Attorneys Sandra M. Urban and Christopher J. Nassar prosecuted the case.
The case was a part of the Justice Department’s Project Safe Childhood initiative. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
San Luis Obispo Man Agrees to Plead Guilty to Bribing County Supervisor to Vote on Issues Affecting His Cannabis BusinessesRead the Press Release
LOS ANGELES – Federal prosecutors today filed a criminal information charging a San Luis Obispo man with bribery for paying a county supervisor approximately $32,000 – most of that in cash – in exchange for the supervisor’s votes and influence on other votes affecting his cannabis business interests.
Helios Raphael Dayspring, a.k.a. “Bobby Dayspring,” 35, was charged in federal court with one count of bribery and one count of subscribing to a false 2018 income tax return that deliberately failed to report millions of dollars in income to the IRS.
Federal prosecutors today also filed a plea agreement in which Dayspring agreed to plead guilty to both felony offenses, pay $3.4 million in restitution to the IRS, and cooperate in the government’s ongoing investigation.
According to the court documents, Dayspring owned, operated, and/or had a controlling interest in multiple farms that grew cannabis in San Luis Obispo County. He also had ownership interests in businesses that sold marijuana to the public, including in Grover Beach. To further his interests in the farms that grew cannabis in San Luis Obispo County, Dayspring began paying bribes to a San Luis Obispo County supervisor in the fall of 2016 and continued doing so through November 2019.
In total, Dayspring paid the late Third District supervisor multiple bribes in cash and money orders totaling $32,000. In exchange, the supervisor voted on matters affecting Dayspring’s farms, including voting multiple times in favor of legislation that permitted Dayspring’s farms to operate before it had obtained final permitting approvals.
In addition to bribing the San Luis Obispo County supervisor, Dayspring admitted in his plea agreement that he and his business associate attempted to bribe the then-mayor of Grover Beach in exchange for two dispensary licenses in that city. The attempted $100,000 bribe took place during a dinner meeting in September 2017. The mayor did not respond to the offer, and Dayspring did not pay the bribe.
Dayspring also admitted that he substantially underreported his personal income on his federal tax returns for the years 2014 through 2018, which resulted in the IRS losing more than $3.4 million in tax revenue.
Dayspring has agreed to surrender in this case and make his first appearance in United States District Court in Los Angeles on August 25. Once he pleads guilty to the bribery and tax charges, Dayspring will face a statutory maximum penalty of 13 years in federal prison.
The FBI and IRS Criminal Investigation investigated this matter, which is part of an ongoing public corruption investigation in San Luis Obispo County.
Any member of the public who has information related to this case or any other public corruption matter in San Luis Obispo County is encouraged to send information to the FBI’s tip line at tips.fbi.gov or to contact the FBI’s Los Angeles Field Office at (310) 477-6565.
Assistant United States Attorney Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section is prosecuting this case.
Rochester Man Pleads Guilty to Receiving Child PornographyRead 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 Joshua Sattora, 37, of Rochester, NY, pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford to receipt of child pornography. The charges carry a mandatory minimum penalty of five years in prison and a maximum of 20 years in prison.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that between December 26, 2017, and August 13, 2018, the defendant and co-defendant Rebecca Woodin engaged in a series of text messages during which Woodin sent approximately 14 sexually explicit images of a minor to Sattora. During this same time, the defendant sent images of child pornography to Woodin. In total, Sattora possessed at least 923 images and 362 videos of child pornography on two cellular telephones and three computers.
Rebecca Woodin was previously convicted and is awaiting sentencing.The plea is a result of an investigation by the Department of Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent-in-Charge Stephen Belongia; the New York State Police, under the direction of Major Barry Chase; and the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
Sentencing is scheduled for November 3, 2021, before Judge Wolford.
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Rochester Drug Dealer Going to PrisonRead 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 Jakeel Irvin, 27, Rochester, NY, who was convicted of conspiring to distribute, and distributing, 40 grams or more of fentanyl, was sentenced to serve 71 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Cassie Kocher, who handled the case, stated that the defendant conspired with others to sell fentanyl in the area of Wilkins Street in Rochester between April and November 28, 2018. In furtherance of the conspiracy, Irvin utilized 133 Thomas Street to store, manufacture, and distribute controlled substances. On November 28, 2018, investigators executed a search warrant at the Thomas Street residence and recovered 81 baggies containing cocaine, 203 baggies containing a mixture of heroin and fentanyl, assorted drug paraphernalia, and packaging materials. A second search warrant was executed at the defendant’s residence on Bernard Street in Rochester and approximately $1,598 in the proceeds of illegal drug distribution were recovered. Irvin acted as a supervisor in the conspiracy, directing at least one other individual who worked at the Thomas Street drug house and who worked on Wilkins Street in the City of Rochester.
The sentencing is the result of an investigation by the New York State Police, under the direction of Major Barry Chase; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division; and the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
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Red Lake Man Charged with Murder in the Shooting Death of a Red Lake Tribal Police OfficerRead the Press Release
MINNEAPOLIS – A Red Lake man has been arrested and charged with one count of second degree murder and four counts of assault with a dangerous weapon in connection to the shooting death of a Red Lake Tribal Police Officer, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, on July 27, 2021, officers with the Red Lake Tribal Police Department (“RLTPD”) responded to a call to conduct a welfare check on David Brian Donnell, Jr., 28, at his residence in Redby, Minnesota. Five RLTPD officers responded to Donnell’s residence. Upon arrival, the officers found Donnell standing outside on the porch and attempted to have him walk towards the officers, but Donnell instead went inside the residence. Because Donnell had an active tribal warrant and had refused to comply, the officers breached the door. Gunfire erupted from inside the residence in the direction of the officers. Officer Ryan Bialke was struck by gunfire through the front door. Gunfire continued from inside the house towards the other four officers on the scene. At one point, an RLTPD officer returned fire. Officers then retreated into the woods to escape the continued gunfire. Officer Bialke succumbed to his injuries and died on the scene. Shortly thereafter, officers arrested Donnell at a nearby residence.
This case is the result of an investigation conducted by the FBI Headwaters Safe Trails Task Force, the Red Lake Tribal Police Department, the Minnesota Bureau of Criminal Apprehension (BCA), the Beltrami County Sheriff’s Office, and U.S. Customs and Border Protection.
Assistant U.S. Attorney Melinda A. Williams is prosecuting the case.
A criminal complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Raleigh Gang Member Sentenced to 8 Years for Possessing a Firearm as a Convicted FelonRead the Press Release
RALEIGH, N.C. – A Raleigh gang member was sentenced today to 96 months in prison for Possession of Firearm by a Convicted Felon.
According to court documents and information presented in court, Wayne Dominic Bennett, Jr., 25, also known as “Banga Loc,” was arrested after a search of his residence and a vehicle in which he was traveling, resulted in the seizure of a stolen .40 caliber handgun, less than a gram of fentanyl, and a semi-automatic 7.62 caliber assault rifle loaded with a 30-round magazine.
The investigation, led by agents and task force officers assigned to the Federal Bureau of Investigation’s Raleigh-Durham Safe Streets Task Force, revealed that Bennett, a validated member of the Eight Trey Gangster Crip street gang, had engaged in a video chat with another suspected gang member where he had displayed a firearm. Agents were able to identify Bennett because of a visible facial tattoo of a Pyrex Cup. A review of social media and evidence from other sources also showed Bennett in possession of firearms. Bennett, who was on post-release supervision after serving a state prison sentence for selling cocaine, was ultimately caught after FBI agents and Raleigh Police Department Officers surveilled him at his listed probation address in Raleigh.
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.
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 Terrence W. Boyle. The FBI Raleigh Durham Safe Streets Task Force and the Raleigh Police Department investigated the case and Assistant U.S. Attorney Tom Crosby prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-cr-00531-BO-1.
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Prior Convicted Murderer Found Guilty of Attempted Home Invasion Robbery and Firearms ChargesRead the Press Release
Acting United States Attorney Jan W. Sharp announced that Rufus E. Dennis, 43, of Omaha, Nebraska, was convicted today in federal court in Omaha after a three-day jury trial. Dennis was found guilty of one count of Attempted Interference with Interstate Commerce by way of Robbery, one count of possessing a firearm during and in furtherance of a crime of violence, and one count of felon in possession of a firearm due to his prior murder conviction and one count of possession of a stolen weapon. Chief United States District Judge Robert F. Rossiter, Jr. will sentence Dennis on November 5, 2021 at 2:00 p.m. Dennis faces up to twenty years in prison for the attempted robbery, no less than five years and up to life for possessing a firearm in furtherance of that crime of violence, and up to ten years in prison on each of the remaining firearms charges.
The evidence at trial showed that Rufus E. Dennis “cased” a family’s home on four separate occasions in January, 2020 while he was gathering information about the home and the family’s movements. A single mother of two young children lived in the home, and Dennis planned to do physical harm to that woman in the presence of her elderly mother once he gained entry to the residence. Dennis ultimately planned to “leave no witnesses behind,” and to shoot anyone who saw his face during the home invasion. In furtherance of that plan, Dennis unwittingly attempted to buy hand guns from an undercover officer and recruited a confidential informant with the FBI to act as his lookout and getaway driver for the home invasion. Dennis attempted to break into vehicles on the property that he believed a drug dealer was parking at the home with the hopes that the vehicles would contain drugs or drug proceeds.
On the morning of the planned home invasion, agents, investigators, and officers with the Greater Omaha Safe Streets Task Force executed a search and arrest warrant at Dennis’ residence and recovered a stolen firearm that contained Dennis’ DNA on it. Dennis hoped to trade the rifle for a handgun with the undercover officer prior to invading the home.
This case was investigated by the Federal Bureau of Investigation, the Bellevue Police Department, and the Omaha Police Department.
Previously convicted member of the Pueblo of Laguna pleads guilty to federal assault charges in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Joshua Mendez, 40, of New Laguna, New Mexico, and an enrolled member of the Laguna Pueblo, pleaded guilty on July 22 to two counts of an indictment charging him with assault resulting in serious bodily injury and domestic assault by a habitual offender in Indian Country.
A grand jury returned an indictment against Mendez for these offenses on Sept. 10, 2020. According to his plea agreement, on March 20, 2020, Mendez assaulted his girlfriend, Jane Doe, at her residence in Cibola County, New Mexico, on the Pueblo of Laguna. When John Doe attempted to intervene, Mendez stabbed John Doe several times with a knife. As a result of Mendez’s attack, John Doe suffered serious injuries that required hospital treatment.
Mendez was previously convicted on two separate occasions in Pueblo Court in the Pueblo of Laguna for committing battery upon another victim, who was his girlfriend at the time, on Feb. 6 and Oct. 17 in 2017.
Mendez is currently in custody pending sentencing. He faces up to 15 years in prison.
The Laguna Division of the Bureau of Indian Affairs investigated this case with assistance from the Laguna Criminal Investigations Bureau. Assistant U.S. Attorney Elisa Dimas is prosecuting the case.
Previously Convicted Felon Charged with Illegal Possession of HandgunRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was arrested yesterday on charges of illegally possessing a handgun, Acting U.S. Attorney Rachael A. Honig announced.
Lamont Nelson, 26, of Newark, New Jersey is charged by complaint with one count of illegal possession of a firearm by a convicted felon. He is scheduled to appear this afternoon by videoconference before U.S. Magistrate Judge André Espinosa.
According to documents filed in this case and statements made in court:
On or about October 8, 2020, detectives from the Newark Police Department encountered Nelson on the sidewalk as he appeared nervous and touched a black bag on his shoulder. Law enforcement observed the handle of a firearm inside of the bag. Law enforcement recovered a Colt model Pocket Positive .32 Caliber 6-shot revolver, bearing serial number 81259, loaded with six (6) rounds of .32 caliber ammunition from the bag. Nelson is a convicted felon and not permitted to possess a handgun under federal law.
The maximum penalty for illegal possession of the firearm is 10 years in prison and a fine of up to $250,000.
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Acting Special Agent in Charge Toby C. Taylor; and detectives of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorneys Alexandra Tsakopoulos Saker and Edeli Rivera of the U.S. Attorney’s Office’s OCDETF Unit.The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense Counsel: Laura Sayler, Assistance Federal Public Defender, Newark
Parkersburg Man Pleads Guilty to Firearm and Drug ChargesRead the Press Release
CHARLESTON, W.Va. – A Parkersburg man pleaded guilty today to federal firearm and drug charges.
According to court documents and statements made in court, officers with the Parkersburg Police Department arrested Jonathan Ray Sindledecker, 40, on January 17, 2020 due to outstanding warrants. When officers approached Sindledecker at a Go-Mart store near the intersection of 16th Street and St. Mary’s Avenue, he ran around the store into an alley. As Sindledecker was running, he attempted to pull a pistol with an obliterated serial number from his waist area. Upon doing so, Sindledecker lost his balance and fell to the ground. Officers apprehended Sindledecker and located the pistol nearby. Officers also located a quantity of methamphetamine, digital scales and a small amount of cash on Sindledecker. Sindledecker knew he was prohibited from possessing the firearm due to prior felony convictions for unlawful entry and manufacture of a controlled substance in Wood County Circuit Court. Sindledecker admitted that he intended to distribute the methamphetamine to others.
Sindledecker pleaded guilty to possession of a firearm by a felon and possession with intent to distribute methamphetamine and faces up to 30 years in prison when he is sentenced on October 20, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Parkersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant United States Attorney Jeremy B. Wolfe is handling the prosecution.
United States District Judge Joseph R. Goodwin presided over the hearing.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00050.
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Orange Park Man Sentenced to 16 Years in Prison for Sexually Exploiting A ChildRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Gregory Thomas Garcia (35, Orange Park) to 16 years in federal prison for child sex trafficking. The court also ordered Garcia to forfeit a 2015 Ford Focus vehicle that he had used in committing the offense. After serving his term of imprisonment, Garcia will be required to register as a sex offender. A hearing to determine restitution to the victim has been scheduled for October 12, 2021. Garcia had pleaded guilty on April 6, 2021.
According to court documents, in September 2020, an agent with Homeland Security Investigations (HSI) became aware of messages exchanged between Garcia and the child victim. The messages, dating back to at least October 2019, reflected that Garcia was using the internet to entice the child victim to engage in commercial sex acts. The messages also appeared to reflect ongoing exploitation of the child victim.
When interviewed, the child victim confirmed that Garcia had contacted her and offered to pay her for sex. The child victim disclosed that on one occasion, Garcia had planned to pick the child victim up at her high school, and on another occasion, dropped her off at her high school. The child victim disclosed that, ultimately, Garcia had sexually exploited her on more than 20 occasions. The child victim also provided the HSI agent with additional communications that she had exchanged with Garcia using a popular online messaging application.
From September 21-23, 2020, the HSI agent, posing as the child victim, communicated with Garcia via the same online messaging app. In these communications, Garcia agreed to meet the child victim in a parking lot and pay her $100 in exchange for the child victim allowing Garcia to sexually abuse her. On September 23, 2020, Garcia obtained money to pay the child victim for sex, as well as a soda and candy for the child victim, and then traveled to meet her. Upon arrival, Garcia was arrested. During an interview with law enforcement, Garcia admitted that he had paid the child victim for sex on multiple occasions and that he knew the child victim, who was 16-17 years old, was underage.
This case was investigated by Homeland Security Investigations and the Clay County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Laura Cofer Taylor.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), 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.
This case resulted from the U.S. Attorney’s Office’s efforts to collaborate with local, state, and federal law enforcement agencies to detect, investigate, and prosecute coercive human trafficking. This includes the trafficking of minors, forced labor, transnational sex trafficking, and sex trafficking of adults by force, fraud, or coercion. Information on the Department of Justice’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Omaha Man Sentenced for Sex Trafficking of a MinorRead the Press Release
Acting United States Attorney Jan Sharp announced that Glenn Whitney, 26, was sentenced today in federal court in Omaha for Sex Trafficking of a Minor. The Honorable Brian C. Buescher sentenced Whitney to 250 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Whitney will serve 5 years of supervised release and will be required to register as a sex offender.
Federal agents began investigating in September 2020, after an Omaha foster child was reported missing. The investigation showed that the 16-year-old victim engaged in commercial sex acts in the Omaha area with Whitney directing the minor victim, including where to conduct acts and how much to charge, and receiving financial proceeds from those acts.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations, the Omaha Police Department, and the Nebraska Attorney General’s Office.
Nine MS-13 Gang Members Indicted in Racketeering and Violent Crime ConspiracyRead the Press Release
A federal grand jury in Nashville, Tennessee, has returned a 60-count indictment charging nine members of La Mara Salvatrucha (MS-13) with a racketeering conspiracy spanning more than seven years.
Those charged in the second superseding indictment are: Carlos Ochoa-Martinez, 31, aka “El Serio;” Jason Sandoval, 35, aka “Bin Laden;” Jorge Flores, 29, aka “Peluche;” Kevin Tidwell, 28, aka “Miklo;” all of Nashville; Jose Pineda-Caceres, 22, aka “Demente;” Franklin Hernandez, 22, aka “Happy;” Luis Colindres, 24, aka “Listo;” Gerson Serrano-Ramirez, 34, aka “Frijole;” and Juan Melendez, aka “Shaggy.”
According to court documents and statements made in court, MS-13 is a national and transnational gang composed largely of individuals of Salvadoran or Central American descent. The purpose of the MS-13 enterprise includes preserving and protecting the power, territory, reputation and profits of the enterprise through the use of intimidation and violence, including murder and promoting the enterprise through acts of murder, robbery, drug trafficking and other criminal activities. Branches or “cliques” of MS-13 operate throughout the United States, including in Nashville.
The indictment charges members of one such clique operating in Nashville, specifically the Thompson Place Locos Salvatrucha clique, with committing a wide range of offenses, including the murder of seven individuals, the attempted murder of an additional five individuals, drug distribution, robberies, kidnappings and assaults. More specifically, the indictment charges the following acts of violence occurring over an approximately 17-month period:
Date
Offense/Predicate Act
April 6, 2016
J.A. murdered
July 31, 2016
L.R. murdered, during the gang’s attempt to murder R.R.
Jan. 18, 2017
Attempted murder of R.V.
Feb. 18, 2017
Attempted murder of H.V., L.A., and H.S.
Feb. 25, 2017
Attempted murder of H.S.
May 21, 2017
A.G. murdered
May 27, 2017
J.F. murdered; and attempted murder of L.R.L.
June 1, 2017
Assault of deputized federal officer
June 17, 2017
Kidnapping and assault of C.R.
July 25, 2017
Kidnapping and assault of X.A. to prevent him/her from cooperating with law enforcement
Sept. 24, 2017
H.Z. and Y.H. murdered
Sept. 24, 2017
A.L. murdered; gang members then burned a car with A.L.’s body in the trunk
As alleged in the indictment, MS-13 gang members often target individuals for violence based on the gang’s belief that an individual is a rival gang member or a potential witness to crimes committed by the MS-13 members. MS-13 members are required to follow various rules, chief among them being that cooperation with law enforcement is strictly prohibited, and it is well understood within the gang that anyone who assists the authorities will be punished with death; that members are required to confront, fight and/or kill rival gang members when possible; and that members are required to retaliate quickly and viciously against anyone who disrespects or threatens the gang’s authority, power, reputation or control of a neighborhood. Participation in such violent acts by a member increases the respect accorded to that member, results in that member maintaining or increasing their position in the gang, and could result in a promotion to a leadership position.The defendants are charged with RICO conspiracy, murder and other violent crimes in aid of racketeering, witness tampering, causing death through the use of a firearm, using a firearm during a crime of violence, possessing a firearm during a drug trafficking crime, and violations of the Controlled Substances Act, among other crimes. The statutory penalties for the charged offenses range from a statutory maximum of 10 years to life imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Mary Jane Stewart of the U.S. Attorney’s Office for the Middle District of Tennessee; Special Agent in Charge Mickey French of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Deputy Special Agent in Charge Nicholas Nelson of Homeland Security Investigations; Assistant Special Agent in Charge Brett Pritts of the Drug Enforcement Administration (DEA); U.S. Marshal Denny King; Metropolitan Nashville Police Chief John Drake; and Director David Rausch of the Tennessee Bureau of Investigation made the announcement.
Trial Attorney Matthew Hoff of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Ahmed Safeeullah are prosecuting this case.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty in a court of law.
Nigerian Money Launderer Sentenced to Prison for Defrauding Texas Employees Retirement SystemRead the Press Release
AUSTIN – For a scheme that defrauded the Texas Employees Retirement System, Olumide Bankole Morakinyo, 38, a Nigerian national residing in Canada, was sentenced today to eight years in prison and repayment of $975,863 in restitution to multiple victims for conspiracy to commit money laundering.
“This Defendant’s scheme and those like it victimize our most vulnerable citizens and cost taxpayers billions each year,” said U.S. Attorney Ashley C. Hoff. “Our office will use all of the available legal tools to identify and bring to justice those who commit cyber-enabled fraud and launder the proceeds.”
According to court documents, Morakinyo conspired with Lukman Shina Aminu, a resident of New Hampshire, to create unauthorized accounts for participants in the Employees Retirement System of Texas (ERS) internet portal. Personally identifiable information (PII) of various ERS participants was used to make changes to their accounts in the ERS internet portal. Bank deposit information on file in the system was changed to re-route retirement payments to debit cards controlled by Aminu. Aminu, who possessed the physical debit cards, would withdraw money under instructions from Morakinyo and then transfer or deposit that money at Morakinyo’s direction.
The debit cards were also used for cash withdrawals and to purchase money orders for personal expenses and for buying used vehicles to be shipped overseas to Nigeria and Benin for resale. With these international automobile transactions, Morakinyo and his conspirators laundered the fraud proceeds by concealing the source of the funds and making the money appear to be legitimate income.
“Today’s sentencing of Olumide Morakinyo highlights how seriously IRS Criminal Investigation (IRS CI) and our law enforcement partners take the issue of identity theft,” said IRS CI Special Agent in Charge Richard Goss of the Houston Field Office. “We will continue to pursue those criminals who prey on innocent victims, stealing their identities to promote tax and other frauds. This sentencing should send a clear message to would-be criminals, that you will be caught and you will be punished.”
U.S. District Judge Robert Pitman also ordered that Morakinyo be placed on three years of supervised release after completing his prison term. Aminu, charged in a separate indictment, was sentenced on December 18, 2019, to 51 months in prison.
“I would like to thank the United States Attorney’s Office, IRS CI, and Department of Public Safety’s (DPS) Texas Rangers Public Integrity Unit for their partnership, dedication and hard work on this case,” stated FBI Special Agent in Charge Christopher Combs. “By working together, we were able hold Morakinyo accountable for his role in this fraud scheme, which caused hardship and suffering to victims in Texas and other parts of the United States.”
The FBI, IRS CI and the DPS Texas Rangers Public Integrity Unit investigated this case. Assistant U.S. Attorneys Michael Galdo and Neeraj Gupta prosecuted this case on behalf of the government.
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Navajo man charged with second-degree murder in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Isaiah Augustine Bob, 36, of Montezuma Creek, Utah, and an enrolled member of the Navajo Nation, appeared in federal court in Las Cruces, New Mexico, on July 27 for an initial appearance on an indictment charging him with second-degree murder in Indian Country.
According to the indictment, on Dec. 4, 2020, Bob killed a man in McKinley County, New Mexico, on the Navajo Nation. Bob was arrested in Oklahoma and transported back to the District of New Mexico. He is currently in custody pending a detention hearing scheduled for July 30. If convicted, Bob faces up to life in prison.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty.
The Gallup Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the Navajo Nation Department of Public Safety. Assistant United States Attorney Novaline D. Wilson is prosecuting the case.
National Leader of Outlaw Motorcycle Gang Admits Illegally Possessing A FirearmRead the Press Release
NEWARK, N.J. – A Suffolk County, New York admitted today to illegally possessing a firearm, Acting U.S. Attorney Rachael A. Honig announced.
Keith Richter, a/k/a “Conan,” 62, of Bay Shore, New York, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an Information charging him with one count of possession of a firearm by a convicted felon.
According to documents filed in this case and statements made in court:
Richter is the national president of the Pagan’s Motorcycle Club (the “Pagans”)—an outlaw motorcycle gang known by law enforcement to engage in illegal activity including narcotics trafficking, weapons trafficking, and violent crimes.
On or about February 20, 2021, the Pagans hosted a party in Lancaster, Pennsylvania. While Richter was traveling from the party to his home in Suffolk County, New York, law enforcement pulled the vehicle over in Mercer County, New Jersey. Law enforcement recovered a loaded Ruger P345 .45 caliber handgun from a front-seat compartment in the vehicle. As a result, law enforcement obtained a warrant for Richter’s arrest, which was executed on February 26, 2021.
Richter was previously convicted of felony offenses, including conspiracy to commit murder and aggravated assault in aid of racketeering, for which he served a sixteen-year term of imprisonment.
The offense to which Richter pleaded guilty carries a maximum sentence of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for Dec. 3. 2021.
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, under the direction of Acting Special Agent in Charge Toby C. Taylor; special agents of the Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Susan A. Gibson; the Suffolk County District Attorney’s Office, under the direction of District Attorney Timothy D. Sini; the Union County Prosecutor’s Office, under the direction of William A. Daniel; and the New Jersey State Police, under the direction of Colonel Patrick J. Callahan, with the investigation leading to today’s guilty plea.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities.
The government is represented by Assistant U.S. Attorneys Robert Frazer, R. Joseph Gribko, and Samantha C. Fasanello, of the U.S. Attorney’s Office in Newark.
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Defense counsel: James R. Froccaro, Jr., Esq., Port Washington, New York
Money Launderer for Mexican Drug Trafficking Organization Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—A Mexican National who jointly operated Tienda Mexicana González Bros., a small convenience store and market in Southeast Portland, was sentenced to federal prison today for using the business and its money transmission licenses to launder millions of dollars in drug proceeds on behalf of a Mexico-based drug trafficking organization operating in the Portland Metropolitan Area.
Jesus González Vazquez, 37, of Jalisco, Mexico, was sentenced to 132 months in federal prison and three years’ supervised release.
“Money launderers who help drug trafficking organizations transfer their illegal proceeds are equally culpable for the path of destruction caused by illegal drugs. While drug trafficking organizations can quickly replace low-level couriers and dealers when they are arrested by law enforcement, it’s much harder for these organizations to quickly replace savvy, large volume money launderers like Mr. González Vazquez and his brother Mr. Romo. Mr. González Vazquez’s prosecution and lengthy prison sentence will challenge this organization’s ability to profit from their crimes and sends a strong message that money laundering is a serious crime with significant consequences,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon.
“Drug cartels thrive on their lust for money and power,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “Operating under the guise of a small convenience store, Vazquez funneled millions of drug profits back to Mexico. This sentence is a successful step towards removing the ability of the cartels to collect their profits from the poison they inject into our communities.”
“This case highlights the importance of teaming with our federal and local partners in order to address these and other related large-scale issues,” said Interim Chief Claudio Grandjean of the Gresham Police Department. “The opioid crisis is ravaging so many in our communities across the region and across the country. I’m proud of the part the Gresham Police Department was able to play in holding those accountable who seek to profit from others’ misery.”
According to court documents, beginning in 2018, two men, Samuel Diaz and Faustino Monroy, organized, led, and ran a drug trafficking organization, based in Mexico, responsible for trafficking hundreds of pounds of methamphetamine and heroin into Oregon for distribution. Diaz and Monroy worked closely with two associates, Edgar Omar Quiroz and Gerson Fernando Martinez-Cruz, who ran a Portland distribution cell. At its peak, Quiroz and Martinez-Cruz’s cell was responsible for distributing as much as 77 pounds of methamphetamine and 55 pounds of heroin weekly in and around Portland.
The organization’s numerous sources of supply would import large quantities of illegal drugs that were taken to stash houses throughout the metro area where they were processed and prepared for sale. A large network of local drug dealers would then distribute user quantities of each drug. The organization would routinely change stash locations, rotate vehicles and phones, and pay individual couriers to take time off to avoid detection by law enforcement.
In approximately 2011, González Vazquez moved to Oregon and began working with his co-defendant and brother, Juan Antonio Romo, 46, also of Jalisco, at the González Bros. market. During this time, the market was an authorized agent for Sigue Corporation; Servicio UniTeller, Inc.; and Continental Exchange Solutions/Ria Financial, three large money services businesses known primarily for international money wires. Between January 2015 and October 2019, the majority of money transfers initiated at the market were conducted by González Vazquez and Romo.
On a continuing basis, González Vazquez and Romo would receive the proceeds of the Diaz-Monroy organization’s illegal drug sales in the form of bulk cash delivered by couriers to the González Bros. market. González Vazquez and Romo would wire the money to various DTO contacts throughout Mexico, structuring the transfers into multiple smaller transactions to avoid detection by the money services businesses or financial regulators. According to the government’s evidence, between January 2015 and October 2019, González Vazquez and Romo laundered at least $19 million dollars in drug proceeds from the market.
In addition to laundering the DTO’s proceeds, González Vazquez also performed other illegal functions for the organization, including facilitating the purchase of weapons in the U.S. to smuggle to Mexico, facilitating large drug transactions, assisting the escape of a fugitive to Mexico, assisting various drug dealers obtain false driver’s licenses, and helping DTO associates illegally enter the U.S.
In October 2019, González Vazquez and many of his co-defendants were arrested as part of a coordinated, multi-agency law enforcement operation. Investigators executed federal search warrants at more than a dozen locations throughout the Portland area, seizing 22 pounds of methamphetamine, quantities of heroin and cocaine, and seven firearms. González Vazquez and his co-defendants arrested as part of the takedown joined several others already in state custody on related charges. In total, law enforcement seized 51 firearms, including assault rifles, shotguns, and handguns, from defendants affiliated with the Diaz-Monroy drug trafficking organization.
On October 24, 2019, a federal grand jury in Portland returned a 61-count superseding indictment charging González Vazquez and 41 others for their roles in the drug trafficking and money laundering conspiracy.
On March 24, 2021, González Vazquez pleaded guilty to conspiring to commit money laundering.
During his sentencing, U.S. District Court Judge Michael H. Simon ordered González Vazquez to forfeit all assets seized by law enforcement during the investigation, including body armor, firearms, magazines, several dozen cell phones, and more than $250,000 in criminally-derived proceeds seized by law enforcement.
González Vazquez is the twentieth defendant sentenced for his role in the conspiracy. Defendants have been sentenced to as much as 235 months in prison. 24 defendants are awaiting sentencing and one is pending trial. Diaz, Monroy, and several other defendants are fugitives believed to be in Mexico.
Acting U.S. Attorney Asphaug, Special Agent in Charge Hammer, and Interim Chief Grandjean made the announcement.
This case was investigated by HSI Portland and the Gresham Police Department with assistance from the FBI; U.S. Drug Enforcement Administration; Oregon State Police; Portland Police Bureau; and the Multnomah, Clackamas, and Clark County Sheriff’s Offices. The U.S. Attorney’s Office for the District of Oregon prosecuted the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
Missouri Fugitive Arrested in Guatemala, Returned to United StatesRead the Press Release
SPRINGFIELD, Mo. – A Noel, Missouri, man has been arrested in the Republic of Guatemala and returned to the United States to face a federal indictment for kidnapping the 4-year-old daughter of a woman whose body was discovered in a suitcase last year.
Mahamud Tooxoow Mahamed, 39, a Somali national, was charged in an indictment returned on Aug. 20, 2019. The indictment alleges that Mahamed kidnapped a minor victim (identified in court documents as Jane Doe 1) and transported her from Missouri to Iowa.
Mahamed, who has been a fugitive from justice since the indictment, was recently arrested in Guatemala, expelled from that country, and returned to the United States. His initial court appearance was held today in the U.S. District Court in Kansas City, Mo. He remains in federal custody pending a detention hearing on Aug. 2, 2021.
According to an affidavit filed in support of the original federal criminal complaint, the body of Jessica McCormack, of Noel, was discovered on July 29, 2019, near Missouri Highway 59 between Lanagan, Mo., and Noel. The last time McCormack was seen alive, the affidavit says, was when law enforcement officers responded to a call at her home on July 16, 2019. Also present in the residence were Mahamed, who was identified as McCormack’s paramour, and McCormack’s three daughters, identified in court documents as Jane Doe 1 (four years old), Jane Doe 2 (two years old), and Jane Doe 3 (six months old).
McCormack’s children could not be located after her body was discovered and identified. An Amber Alert was issued for McCormack’s three children, who were located at a residence in Des Moines, Iowa, and taken into state custody on Aug. 8, 2019. According to the affidavit, a woman who formerly worked with Mahamed at the Tyson plant in Noel told law enforcement officers that Mahamed arrived at her Des Moines residence with the children on Aug. 5, 2019. She discovered he had left on Aug. 8, 2019, the affidavit says, when she found a note from Mahamed informing her that he could not care for the children.
Investigators confirmed with the father of McCormack’s oldest child that Mahamed did not have his consent to take Jane Doe 1 outside the state of Missouri.
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI, the McDonald County, Mo., Sheriff’s Department, and the Des Moines, Iowa, Police Department.
Mineral County man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Kendu Woodard, of Keyser, West Virginia, was sentenced this week to 24 months of incarceration for a firearms charge, Acting United States Attorney Randolph J. Bernard announced.
Woodard, also known as “Kenneth Barmore,” 43, pleaded guilty in March 2021 to one count of “Unlawful Possession of a Firearm.” Woodard, a person prohibited from having a firearm because of a prior conviction, has admitted to having a 9mm pistol in February 2019 in Mineral County.
Assistant U.S. Attorney Kimberley D. Crockett prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.
Miami Woman Indicted for Wire Fraud and Identity Theft Related to COVID-19 PandemicRead the Press Release
BOSTON – A Miami woman was indicted yesterday in connection with allegedly filing for and obtaining fraudulent pandemic-related loans and using those funds for personal expenses.
Danielle Miller, 31, was indicted on three counts of wire fraud and two counts of aggravated identity theft. Miller was arrested on a criminal complaint on May 11, 2021.
According to the charging documents, from in or around July 2020 through May 2021, Miller allegedly devised and executed a scheme to fraudulently obtain pandemic-related relief loans funded by the federal government – including Economic Injury Disaster Loan (EIDL) funds through the U.S. Small Business Administration (SBA) as well as Pandemic Unemployment Assistance (PUA) and related unemployment benefits. To execute the scheme, Miller allegedly used the personal identifying information of at least five individuals to open bank accounts and to apply for more than $900,000 in SBA loans. It is further alleged that Miller misused various identities to apply for PUA benefits. Additionally, it is alleged that Miller possessed counterfeit driver’s licenses in the victims’ names but bearing Miller’s photograph.
As alleged in court documents, Miller maintained an active social media presence via her Instagram account, which had more than 34,000 followers. Posts to this account included a post showing Miller at various luxury hotels in California where transactions were made using the bank account in one of the victim’s names. For example, the luxury hotel Petit Ermitage posted a $5,500 charge to this bank account in September 2020, a few days after Miller’s Instagram account posted a photo of Miller that was geotagged to the Petit Ermitage.
The charges of wire fraud each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of aggravated identity theft provide for a mandatory sentence of two years in prison to be served consecutively to any other sentenced imposed, one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The investigation is being conducted by Homeland Security’s Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from various local, state and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.
Acting United States Attorney Nathaniel R. Mendell and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Bill Abely, Chief of Mendell’s Criminal Division, is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (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 details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Maple Grove Man Pleads Guilty to $9.6 Million Scheme to Defraud the Small Business Administration’s Paycheck Protection ProgramRead the Press Release
MINNEAPOLIS – A Maple Grove man pleaded guilty today to fraudulently applying for $9,619,046.46 from the U.S. Small Business Administration’s Paycheck Protection Program, of which he fraudulently obtained and misappropriated more than $1.7 million, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, Aditya Raj Sharma, 47, was the founder, CEO, and president of Crosscode Inc., a cloud-based software development company originally headquartered in Maple Grove, Minnesota. In November 2019, Sharma was removed as an officer and terminated from the company by Crosscode’s board of directors. Between May 2020 and July 2020, Sharma created three separate technology companies, Kloudgaze Inc., Neoforma LLC, and Mokume LLC.
From April 2020 through August 2020, Sharma applied for 16 loans for $9,619,046.46 through the U.S. Small Business Administration’s Paycheck Protection Program (“PPP”) from ten different lenders by submitting false and fraudulent applications under the names of his various technology companies. As part of his fraud scheme, Sharma submitted fabricated supporting records, made false statements about the number of employees he had and the amount of payroll expenses he incurred, and made false statements about the relevant corporate entities and intended use of the loan proceeds.
For example, on April 26, 2020, Sharma submitted an application in the name of “Crosscode dba Kloudgaze” seeking a $562,500 PPP loan. On the application Sharma falsely stated that “Crosscode dba Kloudgaze” was in operation on February 15, 2020, even though Sharma did not create Kloudgaze until May 2020. In addition, Sharma falsely stated that he was the 100% owner and CEO of Crosscode, that Crosscode did business under the name of Kloudgaze, and that “Crosscode dba Kloudgaze” had approximately 29 employees on its payroll even though records from the State of Minnesota show Sharma paid no wages to a single Kloudgaze employee. In support of the application, Sharma included fraudulent supporting documentation, including fabricated bank account statements.
As a result of Sharma’s fraud scheme, lenders approved three of his PPP applications and deposited $1,773,600 in PPP funds into bank accounts controlled by Sharma. Rather than using the funds for permissible business expenses, Sharma used the money to pay off unrelated legal debts, fund new business ventures, transfer approximately $14,000 to a financial account in India, and pay for home improvements, including landscaping and the installation of a $64,300 backyard pool at his residence.
During the investigation, law enforcement obtained warrants to seize approximately $674,980.76 in fraudulent proceeds held in multiple bank accounts controlled by Sharma. As part of the plea agreement, these seized funds will be forfeited by Sharma to the Unites States.
This case is the result of an investigation conducted by the FBI.
This case is being prosecuted by Assistant U.S. Attorneys Matthew S. Ebert and Jordan L. Sing.
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.
Manhattan U.S. Attorney Settles Civil Fraud Lawsuit Against Clothing Companies and Their Former CEO for Misrepresenting the Value of Goods to Avoid Paying Customs DutiesRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Peter C. Fitzhugh, the Special Agent in Charge of the New York Office of Homeland Security Investigations (“HSI”), and Marty Raybon, Acting Director, Field Operations, New York, U.S. Customs and Border Protection (“CBP”), announced today that the United States has settled civil fraud claims brought under the False Claims Act against STARGATE APPAREL, INC. (now named EXCEL APPAREL CORP.) (“STARGATE”), RIVSTAR APPAREL, INC. (“RIVSTAR”), and JOSEPH BAILEY. Stargate and Rivstar are apparel companies headquartered in New York, New York, and BAILEY is the companies’ former CEO and owner. As alleged in the Government’s lawsuit, filed in 2019, BAILEY, STARGATE, and RIVSTAR employed a variety of schemes to defraud the United States by submitting invoices to CBP that falsely understated the true value of the clothing that they imported into the United States in order to avoid paying millions of dollars in customs duties. RIVSTAR is no longer operating.
Under the civil settlement approved today by U.S. District Judge J. Paul Oetken, BAILEY will pay $3.2 million to the United States, and STARGATE, RIVSTAR, and the employee stock ownership plan that currently owns the companies will together pay a total of $2.8 million to the United States. BAILEY, STARGATE, and RIVSTAR admitted and accepted responsibility for their conduct as further described below. As part of the settlement, STARGATE and RIVSTAR (to the extent that it resumes operations) will also implement a written compliance policy that will include measures designed to ensure that they pay duties on the full, actual value of all future imports and otherwise comply with applicable customs laws and regulations. Last year, BAILEY pled guilty and was sentenced to six months in prison for engaging in certain of the conduct related to STARGATE imports that is at issue in the Government’s civil complaint. This civil settlement is in addition to the $1,661,617 forfeiture amount that BAILEY was ordered to pay in the criminal proceedings.
U.S. Attorney Audrey Strauss said: “Stargate, Rivstar, and their former president engaged in a variety of fraudulent schemes to short-change the Government of customs duties owed for imported clothing by falsely under-reporting its value. This settlement, along with the separate criminal action against Bailey, demonstrate that our Office will hold companies, as well as their executives, accountable when they try to evade paying the legally required custom duties on imported goods.”
HSI Special Agent in Charge Peter C. Fitzhugh said: “For over a decade these clothing companies used ‘double-invoice’ schemes to underpay customs duties that were owed to the U.S. for garments being imported into the country, resulting in millions of dollars in customs duties lost. HSI worked closely with U.S. Customs and Border Protection and the U.S. Attorney’s Office for the Southern District of New York to achieve this settlement, requiring the defendants not just to accept responsibility, but also to pay the Government $6 million and enhance their compliance policies.”
CBP Acting Director of New York Field Operations Marty Raybon said: “The settlement reached today is a testament to the dedication of our partners in the United States Attorney's Office, Homeland Security Investigations, and the men and women of CBP in enforcing our nation’s trade laws and punishing those perpetrating this type of fraud.”
The Government’s complaint alleges that in order to avoid customs duties, from 2004 through 2015 (the “Covered Period”), STARGATE, RIVSTAR, and BAILEY engaged in two types of “double invoicing” schemes to fraudulently underpay customs duties owed to the United States in connection with the garments that they brought into the country. Under the first scheme, the exporter would provide one invoice that reflected the amount Defendants actually paid the exporter for the goods, and a second invoice that fraudulently reflected a fabricated lower amount that was submitted to CBP. These two invoices were virtually identical (e.g., same invoice number, description of goods, quantity of goods), except that they included different prices for the same shipments of goods. Under the second scheme, the exporter also would provide two invoices, which together reflected the actual price paid for the shipment. However, Defendants would only submit one of the invoices to CBP. The other invoice, which purported to be for “samples,” “accessories,” “commissions,” or “testing costs,” reflected an additional payment made by Defendants for the same goods described in the first invoice and was not submitted to CBP. The purpose of each of these two schemes was the same – to fraudulently under-report the value of the goods in order to pay less duties.
As part of the settlement, BAILEY, STARGATE, and RIVSTAR admit, acknowledge, and accept responsibility for the following conduct:
STARGATE Conduct:
- During the Covered Period, Stargate’s primary supplier was Taizhou Jiali Garments Co. Ltd. and its affiliated manufacturers (collectively, “Taizhou”), which are all located in China. At the direction of BAILEY, STARGATE engaged in two different fraudulent schemes that involved the preparation and use of false and inaccurate invoices to underreport the actual value of goods imported from Taizhou in order to avoid paying the customs duties due. BAILEY knew that this conduct was wrong and in violation of customs laws.
- As part of the first scheme, from 2007 through 2010, at BAILEY’S direction, Taizhou provided STARGATE with two sets of invoices for each shipment of goods. One invoice, referred to in email communications as the “pay by” invoice, reflected the actual price paid by STARGATE for the goods. The second invoice reflected a fake, lower price for the goods and was the invoice that STARGATE presented to CBP through its customs broker. Stargate, at the direction of Bailey, routinely declared this false, lower value on CBP entry forms in order to pay lower customs duties on goods imported from Taizhou.
- Beginning around 2010 and continuing through at least 2015, BAILEY and STARGATE engaged in a second scheme. At BAILEY’S direction, Taizhou provided two separate sets of invoices for a given shipment that together reflected the true price Stargate actually paid for the goods. The first invoice, typically entitled the “commercial invoice,” described the goods purchased, and was submitted to CBP by STARGATE’s customs broker. The second invoice purported to reflect amounts paid by Stargate for “sample” goods and was not submitted to CBP. The “sample” invoice was not, in fact, for samples actually purchased by STARGATE. Rather, STARGATE used the “sample” invoice to make an additional payment to Taizhou for the goods purchased by STARGATE that were described in the “commercial invoice,” while hiding the full value of those goods from CBP. STARGATE, at the direction of BAILEY, routinely declared only the values recorded on the “commercial invoices,” which were less than the full price paid for the goods, on CBP entry forms in order to pay lower customs duties on goods imported from Taizhou.
- During the Covered Period, STARGATE also imported goods that it purchased from Tex-Prime International, Ltd., and its affiliated manufacturers (collectively “Tex-Prime”), which are located in China. Beginning in at least 2004 and continuing through 2014, STARGATE, at the direction of BAILEY, also engaged in two different fraudulent schemes that involved the preparation and use of false and inaccurate invoices to underreport the actual value of goods imported from Tex-Prime in order to avoid paying the customs duties due.
- The first scheme involved Tex-Prime providing two nearly identical invoices for each shipment that differed only in the stated price. The first invoice reflected the amount that STARGATE actually paid for the imported goods. The second invoice (frequently identified by a “C” suffix following the invoice number, or the term “Custom” following the invoice number in the file name), reflected a false and inaccurate lower price and was the invoice that STARGATE submitted to CBP through STARGATE’s customs broker. STARGATE, at the direction of BAILEY, routinely declared the values recorded on this second, false invoice on CBP entry forms in order to pay lower customs duties on goods imported from Tex-Prime.
- The second scheme also involved Tex-Prime providing two invoices. In this scheme, the two invoices together reflected the actual price paid by STARGATE for the shipment. The first invoice, entitled a “commercial invoice,” described the goods purchased and was submitted to CBP by STARGATE’s customs broker. The second invoice, entitled a “statement,” purported to be an invoice for accessories charges, commissions, testing charges, or samples. This second invoice was not submitted to CBP and in reality reflected an additional payment made by STARGATE to Tex-Prime for the same shipment. STARGATE, at the direction of BAILEY, routinely declared only the values recorded on the “commercial invoices,” which were less than the full price paid for the goods, on CBP entry forms in order to pay lower customs duties on goods imported from Tex-Prime.
- Through the practices described above, STARGATE misrepresented the value of the goods it purchased and imported into the United States. STARGATE and BAILEY were aware at all times that the reported information was incorrect and grossly understated the actual value of the imported goods, but continued to make the incorrect entries in order to reduce the amount of duties owed. As a result of their conduct, STARGATE and BAILEY underpaid customs duties that were due and owing to the United States.
RIVSTAR Conduct:
- During the Covered Period, RIVSTAR imported goods purchased from Pacific Potential Trading Co., Ltd., and its affiliated entities (together, “Pacific Potential”), as well as from Dongguan Bestsign and Trading Co., Ltd., and its affiliated entities (together, “Bestsign”), all of which are located in China.
- During the Covered Period, at RIVSTAR’s request and BAILEY’s direction, Pacific Potential and Bestsign provided two sets of invoices for each shipment imported into the United States by RIVSTAR. The first invoice described the goods imported and was submitted to CBP by RIVSTAR’s customs broker. The price reflected on the invoices declared to Customs did not reflect the full price RIVSTAR paid for the merchandise. The second invoice purported to be for “testing costs” relating to the imported goods and was not submitted to CBP. Together, the two invoices reflected the true total price that RIVSTAR paid for the goods; RIVSTAR, however, did not declare the amount reflected on the invoice for “testing costs” to CBP. For the most part, the amounts reflected on the invoice for “testing costs” were not for actual testing, but instead reflected an additional payment made by RIVSTAR to Pacific Potential and Bestsign for the same shipment that was not declared to CBP. To the extent that any such payments actually related to testing costs, such charges were still dutiable and should have been declared to CBP.
- Through these practices, RIVSTAR at BAILEY’s direction misrepresented the value of the goods it purchased and imported into the United States. RIVSTAR and BAILEY were aware at all times that the reported information was incorrect and grossly understated the actual value of the imported goods, but continued to make the incorrect entries in order to reduce the amount of duties owed. As a result of their conduct, RIVSTAR and BAILEY underpaid customs duties that were due and owing to the United States.
The conduct in this matter was first brought to the attention of federal law enforcement by a whistleblower who filed a lawsuit under the False Claims Act.
Ms. Strauss thanked U.S. Customs and Border Protection and Homeland Security Investigations for their assistance with the case.
The civil case is being handled by the Office’s Civil Frauds Unit, and Assistant U.S. Attorney Dominika Tarczynska is in charge of the matter.
Manchester Woman Sentenced to 54 Months for Participating in Drug Trafficking ConspiracyRead the Press Release
CONCORD –Chrystal Callaghan, 43, of Manchester, was sentenced to 54 months in federal prison for conspiracy to distribute, and possess with intent to distribute, fentanyl and crack cocaine, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in the spring of 2020, investigators received information from confidential sources that Chrystal Callaghan and her co-defendant son, Jovan Callaghan, were selling crack cocaine and fentanyl from their residence in Manchester. Law enforcement officers learned that Chrystal Callaghan and another co-conspirator, Melissa Gazaway, would travel to New York to purchase crack cocaine. On three separate occasions, officers conducted lawful traffic stops of their vehicle returning from New York and seized over 300 grams of crack cocaine. In late 2020, confidential sources conducted six controlled purchases of fentanyl and crack cocaine from the three co-defendants.
On December 24, 2020, investigators executed a search warrant at the Manchester residence and seized over one kilogram of fentanyl and a firearm, along with large amounts of cash and drug use and packaging materials.
Chrystal and Jovan Callaghan previously pleaded guilty on March 30,2021. Jovan Callaghan is awaiting sentencing. Gazaway pleaded guilty on April 20, 2021 and awaits sentencing.
“Drug traffickers continue to pose a serious threat to the health and safety of New Hampshire’s residents,” said Acting U.S. Attorney Farley. “We work closely with our law enforcement partners to hold drug dealers accountable for their unlawful and dangerous conduct.”
“DEA is committed to bring to justice poly drug traffickers like Ms. Callaghan,” said Special Agent in Charge Brian D. Boyle. “This investigation demonstrates the strength of collaborative law enforcement efforts in New Hampshire.”
This matter was investigated by the Drug Enforcement Administration, the New Hampshire State Police, the Manchester Police Department, and the Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorneys Georgiana L. MacDonald and Jennifer Cole Davis.
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