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8 September 2021
U.S. Attorney’s Office Update on Ongoing Strategies to Combat Violent CrimeRead the Press Release
HARRISBURG – Protecting our communities from violent crime is a top priority for the Department of Justice. In May 2021, the Justice Department launched a renewed comprehensive violent crime reduction strategy, which is built around four principles:
- Build trust and earn legitimacy in our communities;
- Invest in community-based prevention and intervention programs;
- Target enforcement efforts and priorities by identifying, investigating, and prosecuting the most significant drivers of gun violence and other violent crime;
- Measuring the results of these efforts through a decrease in violent crime – not merely by arrests and convictions.
The core of the Department of Justice’s violent crime reduction efforts continues to be Project Safe Neighborhoods (PSN). 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.
“Violent crime is a problem in the Middle District of Pennsylvania and throughout the nation,” stated Acting U.S. Attorney Bruce D. Brandler. “For many years our office has worked together with our law enforcement partners to reduce violent crime and we continuously update and revise our PSN strategy to improve our results. I am pleased to update the public on our efforts and remain committed to making sure all citizens can live safely in our community.”
The United States Attorney’s Office for the Middle District of Pennsylvania has in place a multi-faceted program to reduce violent crime within the district. Gun violence, driven mostly by drug trafficking or by neighborhood rivalries and gangs, is identified as the main problem in many of the larger more populated counties within the district.
The U.S. Attorney’s Office endeavors to disrupt violent crime by pursuing appropriate prison sentences and seeking forfeitures of crime-derived assets to deter dangerous individuals from continuing to disrupt our communities. Through enforcement actions, prosecutions, and community partnerships, the U.S. Attorney’s Office works to lower violent crime and make neighborhoods safer.
Enforcement Strategy
The U.S. Attorney’s Office has long partnered with federal, state, and local law enforcement agencies to collaboratively address violent crime in the district. These efforts include regular meetings with these agencies to exchange information about areas of mutual concern, including deconflicting pending investigations, as well as identifying violent offenders, local crime trends, and notable criminal events.
Criminal Division supervisors regularly meet with with District Attorneys from Northeastern and Central Pennsylvania, state prosecutors from the Attorney General’s Office, and supervisors from area Pennsylvania State Police barracks to strengthen ongoing partnerships to combat violent crime, including violence that is often associated with drug trafficking. The Criminal Division supervisors have also discussed with these state and local officials, strategies to combat violent crimes against children, including sex trafficking, child pornography offenses, and internet enticement crimes.
Violent crime and firearm investigations are supported by use of ATF’s National Integrated Ballistics Information Network (NIBIN). NIBIN is a national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. This proven investigative and intelligence tool allows law enforcement to link firearms from multiple crime scenes and to quickly disrupt shooting cycles. Federal, state, and local law enforcement in the Middle District of Pennsylvania have used NIBIN to help solve violent crimes and prosecute gun offenders.
Prosecution Activity
The U.S. Attorney’s Office remains active in the fight against violent crime through various enforcement actions, prosecutions, and sentencings, as demonstrated by the recent examples below:
Firearms Prosecutions
- On April 2, 2021, the United States Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the York County District Attorney’s Office, and the York City Police Department announced a joint initiative (Operation Scarecrow) that targets individuals who illegally purchase and possess firearms in York County. Operation Scarecrow’s focus is on individuals who are prohibited from possessing firearms due to a prior felony conviction who use third parties (“straw parties”) to purchase firearms on their behalf. The Operation that began on January 20, 2021, has thus far resulted in 26 firearms being recovered in relation to straw purchasing violations.
To date, seven individuals have been federally indicted with making false statements during the purchase of a firearm:
- Donte Christian, of Baltimore, MD, indicted on February 3, 2021;
- Jahzaire Jahzaire Gilliam, of York, indicted March 24, 2021;
- Hannah Lapham, of York, indicted March 24, 2021;
- Nijee Baskins, of York, indicted on March 31, 2021;
- Olivia Marie Johnson, of York, indicted on July 28, 2021;
- Alicia Lauren Butler-Sanchez, of Philadelphia, indicted on July 28, 2021;
- Deontrae Marquis Jackson, of Philadelphia, indicted on July 28, 2021.
- Bruce Redmond, of Dallas, was sentenced on September 1, 2021, to 46 months’ imprisonment for illegal possession of 58 firearms, 6,664 rounds of ammunition and methamphetamine trafficking.
- Akee Ly, of Lemoyne, was sentenced on August 25, 2021, to 262 months’ imprisonment for previously being convicted of a felony and using a third party to purchase multiple firearms on his behalf.
- Sierra Benninger, age 26, of Mountaintop, was sentenced on June 29, 2021, to time served of 8 ½ months for providing false statements to purchase a Taurus 9mm handgun, which she was prohibited from possessing as a person who used and was addicted to a controlled substance.
- Walter Valdivia, Jr., of Matamoras, was sentenced on June 21, 2021, to 33 months’ imprisonment for possession of a shotgun with a barrel length of less than 18 inches.
Drug Prosecutions
- Omar Tollinchi-Torres, of Harrisburg, was charged on September 1, 2021, for attempting to possess with the intent to distribute more than 500 grams of cocaine and possessing a Glock model 23 .40 caliber semiautomatic pistol during and in relation to the attempted drug trafficking offense.
- On August 27, 2021, Tysheen Gott, of Wilkes-Barre, was found guilty following a jury trial of conspiracy to distribute and possession with intent to distribute more than 400 grams of fentanyl, one kilogram of heroin, cocaine, crack, and tramadol. Gott was one of eleven defendants indicted. All other co-conspirators have pleaded guilty and are awaiting sentencing.
- Michael Rinaldi, of Wilkes-Barre, was sentenced to 235 months’ imprisonment following a jury trial conviction in August 2021, of conspiracy to distribute and possess with intent to distribute 6 kilograms of cocaine, 1 kilogram of cocaine base, 15 grams of heroin, and 48 pounds of marijuana. Two additional co-defendants, Duwayne Brown and Andrew Henry, pleaded guilty to drug trafficking conspiracy and are awaiting sentencing.
- On July 27, 2021, Modest Moreno, of Wilkes-Barre, was indicted for allegedly distributing and possessing with the intent to distribute cocaine, heroin and fentanyl. The indictment also alleged that Modesto, a person prohibited from possessing a firearm, possessed a Ruger handgun.
- The head of a drug trafficking organization, Charles Gibson, Jr., of Bronx, New York, was sentenced to 120 months’ imprisonment on June 23, 2021, for conspiring to distribute heroin, crack cocaine, and fentanyl. Members of the drug trafficking organization possessed firearms and engaged in acts of violence. Gibson was charged in June 2017 with 14 other individuals, who all pled guilty and received sentences ranging from 84 months’ imprisonment to probation.
- James R. Bell, of Newark, New Jersey was sentenced on June 21, 2021, to 240 months’ imprisonment for conspiring to distribute fentanyl and heroin which resulted in the death of a 22-year-old Monroe County man.
- Two Philadelphia men, Naim Taylor and Antwan Dozier, were indicted on June 10, 2021, for conspiring to distribute heroin to a network of drug sellers and users.
Robbery Prosecutions
- On March 5, 2021, Jimmy Carter, of Erie, was sentenced to 216 months’ imprisonment for robbing a Unimart convenience store and during the course of this robbery, Carter fired a handgun at the proprietor of the store.
- Gerard Gaffney of Mount Ranier, Maryland, was sentenced on April 26, 2021, to 84 months’ imprisonment for his role as the driver in an armed robbery of a Rite Aid pharmacy. A stolen firearm was recovered from codefendant, David Marable, who was sentenced to 120 months’ imprisonment on July 21, 2020.
Community Partnerships
- Court Assisted Re-Entry (CARE) Program. The U.S. Attorney’s Office actively participates in the CARE Program-- a four-phase program designed to aid the rehabilitation and re-integration of federal inmates recently released into the community under federal supervised release and who face a moderate to high-risk of recidivism.
The Middle District of Pennsylvania CARE Program operates in the Harrisburg, Scranton and Williamsport Courts, and has existed since 2009 as one of the first federal court reentry programs in the country. The early efforts to support court-assisted reentry helped inspire the changes that took place in courts and U.S. Attorneys’ Offices across the country.
The CARE Program relies upon support from groundbreaking partnerships between public institutions and agencies as well as volunteer private entities and individuals to provide financial, educational, and health benefits to recently releases inmates. The U.S. Probation Office, the Federal Public Defenders and the U.S. Attorney’s Office participate in the program. The CARE Program offers an alternative program of supervision and a blend of treatment and support to effectively address offender behavior and rehabilitation. Most CARE participants have served multi-year prison sentences and face barriers to reintegration to the community.
- Group Violence Initiative (GVI). In 2016, the U.S. Attorney’s Office joined community and law enforcement partners in York as part of the York Group Violence Initiative (GVI). GVI is designed to reduce street group–involved homicide and gun violence. GVI was pioneered by the National Network for Safe Communities at John Jay College. As the National Network’s website notes, GVI has repeatedly demonstrated that violence can be dramatically reduced when a partnership of community members, law enforcement, and social service providers directly engages with the small and active number of people involved in street groups and clearly communicates a credible moral message against violence, prior notice about the consequences of further violence, and a genuine offer of help for those who want it. A central method of communication is the call-in, a face-to-face meeting between group members and the strategy’s partners. The aim of the GVI strategy is to reduce peer dynamics in the group that promote violence by creating collective accountability, to foster internal social pressure that deters violence, to establish clear community standards against violence, to offer group members an “honorable exit” from committing acts of violence, and to provide a supported path for those who want to change. The focus at the beginning of 2020 was developing the Community Moral Voice of the GVI strategy. Though interrupted by the Coronavirus pandemic, individuals are still being identified who will be “credible messengers” working in the neighborhoods on a daily basis to bring the “we want you safe, alive, and out of prison” message to group members. A partnership was formed working with WellSpan Health System to develop a Hospital Based Violence Intervention program to actively engage gun violence victims and their families. Most often these victims are also part of the groups that are involved in most of the violence in the city. The Hospital based strategy engages them at a vulnerable point where they are more receptive to engage the help that is offered. Also, as part of the effort to reduce the initial shootings, the York City Police Department developed a strong relationship with the York City 2020 Annual Report School Police to be proactive in addressing youth before they become involved in “street” activity. Statistically, there was a 34% reduction in group member involved incidents over 2019 and a 50% reduction year to date in criminal homicide incidents by firearm.
- Neighborhood Social Events. The U.S. Attorney’s Office has increased involvement in neighborhood social events conducive to law enforcement participation, including community walks and National Night Out. Although the pandemic has temporarily slowed our efforts in this area, the U.S. Attorney’s Office will resume our hard work as the pandemic subsides.
- Project Safe Childhood. In May 2021, the U.S. Attorney’s Office, the York County District Attorney’s Office, the U.S. Department of Homeland Security, and the Federal Bureau of Investigation presented a Project Safe Childhood presentation of Keeping Children Safe & Secure Online to York County Southwestern School District parents and teachers. A variety of topics were covered including: Social Media/Apps, Gaming, Cyberbullying, Sexting, Sextortion, Internet Predators, and Being Safe & Secure Online.
Our office has since been invited to present the Keeping Children Safe & Secure Online presentation as a “featured session” at the PA State Superintendents' Association (PASA) annual conference with the PA School Boards' Association (PSBA) on October 6, 2021.
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U.S. Army Reservist Sentenced to 46 Months for Fraud and Money Laundering Scheme Involving Theft of Millions of Dollars from Elderly Victims and BusinessesRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that JOSEPH IORHEMBA ASAN JR. was sentenced to 46 months in connection with a scheme to commit romance fraud scams and business email compromises against dozens of victims across the United States, defraud banks, and launder millions of dollars in fraud proceeds to co-conspirators based in Nigeria. ASAN was arrested on October 31, 2019, and pled guilty on December 23, 2020, to conspiracy to commit bank fraud and wire fraud. Today’s sentence was imposed by U.S. District Judge Kimba Wood.
Manhattan U.S. Attorney Audrey Strauss said: “Among the many victims of the internet scams facilitated by Joseph Asan Jr. were elderly women and men who were callously fooled into believing they were engaging online with potential romantic interests. This former serviceman and his co-defendant even laundered money stolen from a U.S. Marine Corps veteran’s organization in one of the conspiracy’s email spoofing schemes. Asan’s crimes have indeed led to his own reversal of his fortune, as this former defender of this country now becomes a federal prisoner.”
According to allegations in documents filed in Manhattan federal court:
From at least in or about February 2018 through at least in or about October 2019, ASAN and his co-defendant CHARLES IFEANYI OGOZY were members of the U.S. Army Reserves who participated in a scheme to commit fraud against dozens of victims across the United States, defraud banks, and launder millions of dollars in fraud proceeds in bank accounts that they controlled. The funds laundered by ASAN and OGOZY were obtained primarily through: (a) romance scams, in which members of the scheme deluded unsuspecting older women and men into believing they were in a romantic relationship with a fake identity assumed by members of the scheme, and used false pretenses to cause the victims to transfer money to bank accounts under the control of members of the scheme, including ASAN and OGOZY; and (b) business email compromises, in which members of the scheme gained unauthorized access to or spoofed email accounts and impersonated employees of a company or third parties engaged in business with the company in order to fraudulently induce the victims to transfer money to bank accounts under the control of members of the scheme, including ASAN and OGOZY. Notably, one of the victims of the defendants’ business email compromise scheme included a U.S. Marine Corps veteran’s organization.
In order to launder proceeds from those fraud schemes, ASAN and OGOZY opened several bank accounts in the names of fake businesses called Uxbridge Capital LLC, Renegade Logistics LLC, and Eldadoc Consulting LLC. In total, ASAN opened at least 10 business bank accounts at eight different banks in the names of these fake businesses, and he used those accounts to receive and transfer to co-conspirators overseas over $1.8 million in fraud proceeds from at least 69 identified victims. In connection with the opening of the business bank accounts, ASAN made multiple false statements to banks about the purported business of his companies, including misrepresentations that the companies were involved in shipping, real estate, and public relations. In addition, a significant portion of the laundered funds was deposited and withdrawn in cash that was not able to be traced by law enforcement.
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ASAN, 24, of Daytona Beach, Florida, was also sentenced to three years of supervised release. In addition, ASAN was ordered to forfeit $184,723, and to pay restitution of $1,792,015 to victims.
Ms. Strauss praised the outstanding investigative work of the Federal Bureau of Investigation and the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. Ms. Strauss also thanked the U.S. Customs and Border Protection for their assistance in the investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Sagar K. Ravi is in charge of the prosecution.
Tyler County man admits to tax violationRead the Press Release
WHEELING, WEST VIRGINIA – Roger Lee Stevens, of Middlebourne, West Virginia, is facing tax fraud charges, Acting U.S. Attorney Randolph J. Bernard announced.
Stevens, 63, pleaded guilty to one count of “Corrupt Endeavor to Obstruct or Impede the Due Administration of the Internal Revenue Laws.” Stevens admitted to failing to pay income taxes from 2005 to 2009. The IRS issued a notice to Stevens, and later to Stevens’ bank, that his assets would be levied to pay the debt owed to the IRS. As the IRS began directing the bank to turn over funds in Stevens’ account, Stevens began removing funds from the account to impede the IRS from collecting the debt.
Stevens also agreed to pay $86,207 to the IRS in restitution.
Stevens faces up to three years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The IRS investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Two Texas men charged in stealing over a million dollars in a romance scamRead the Press Release
ST. LOUIS – On September 7, 2021, Rotimi Oladimeji and Olumide Akinrinmade appeared before the United States District Court for the Eastern District of Missouri on a romance scam. The men were arrested in Texas on August 9th after the return of a federal indictment charging mail fraud, wire fraud, conspiracy to commit mail fraud and wire fraud, and aggravated identity theft. The grand jury returned the sealed indictment on July 28th.
According to the indictment, in October 2019, a resident of the Eastern District of Missouri began communicating on an internet dating site with Oladimeji, who was purporting to be G.J. As part of the fraud, Oladimeji bolstered his impersonation of G.J. with a LinkedIn profile in the name of G.J., the picture of a different individual, and a completely fictitious background. Shortly after beginning the online romance, Oladimeji, in the guise of G.J., purported to need help with an urgent business issue while he was traveling in the United Arab Emirates.
Through the G.J. identity, Oladimeji directed the victim to electronically transfer funds from the Eastern District of Missouri to banks in Saudi Arabia and to send money by Federal Express to Akinrinmade’s residence in Texas. The money was subsequently deposited into financial accounts opened by Oladimeji, Akinrinmade, and others. As a result, between October 23, 2019 and April 26, 2020, the victim electronically transmitted and sent through Federal Express, $1,200,000 to, and on behalf of, Oladimeji and Akinrinmade.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by Homeland Security Investigations (HSI).
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Two South Louisiana Men Sentenced for Illegal Possession of FirearmsRead the Press Release
LAFAYETTE, La. - Acting United States Attorney Alexander C. Van Hook announced that two men from south Louisiana were sentenced today by United States District Judge Michael J. Juneau for illegal possession of firearms.
Eric Etienne, 33, of New Iberia, Louisiana, was sentenced to 65 months in prison, followed by 3 years of supervised release, for illegal possession of a firearm. In May 2021, Etienne went to trial on the charge and was found guilty by a federal jury in Lafayette. Evidence at the trial revealed that on December 18, 2018, officers with the New Iberia Police Department discovered a video on Instagram showing Etienne possessing what appeared to be an AR-15 rifle, two AK-47’s, and a Glock handgun. Law enforcement officers were familiar with Etienne, who is a convicted felon, and were able to determine the location in New Iberia where the video had been taken. Later that day, officers responded to the scene where the video was taken. Upon arrival, Etienne was found standing near a silver sedan which was seen in the video and wearing the same clothes he was wearing in the video. Officers found the AR-15 and Glock handgun in plain view in the sedan. A search of a nearby residence recovered one of the AK-47’s. Etienne’s prior felony conviction was for attempted manslaughter in 2006.
The ATF and New Iberia Police Department conducted the investigation. Assistant U.S. Attorneys David J. Ayo and Danny Siefker prosecuted the case.
Patrick Joiner, 54, of Erath, Louisiana, was sentenced to 60 months in prison, followed by 3 years of supervised release, for illegally possessing a firearm during a drug trafficking crime. On October 18, 2018, a state search warrant was executed at Joiner’s residence by Vermilion Parish Sheriff’s Office deputies. During the search, law enforcement officers seized methamphetamine, drug paraphernalia, cash, and a loaded firearm. Joiner was charged with possessing a firearm in furtherance of a drug trafficking crime. As an individual having been previously convicted of felony crimes, Joiner was prohibited from possessing a firearm. His criminal history is lengthy, having been convicted of 6 felony crimes dating back to 1989.
The ATF and Vermilion Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney John W. Nickel prosecuted the case.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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Texas Man Pleads Guilty to Assaulting Deputy U.S. Marshal with Hammer During Portland ProtestRead the Press Release
PORTLAND, Ore.—A Texas man pleaded guilty today for assaulting a Deputy U.S. Marshal with a construction hammer during a July 2020 protest in Downtown Portland.
Jacob Michael Gaines, 24, pleaded guilty to assaulting a federal officer with a deadly or dangerous weapon.
“We are very fortunate Mr. Gaines did not severely injure or kill the Deputy U.S. Marshal who confronted him outside the federal courthouse last summer. Assaulting a federal officer with a deadly weapon is a very serious crime and will be handled by our office accordingly,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon.
“Anyone who assaults or tries to hurt a U.S. Marshals Service employee should expect to be charged. Mr. Gaines could have killed the deputy he struck with a construction hammer, and we’re grateful to the US Attorney’s Office for seeing this case through to its conclusion,” said Peter Cajigal, Acting U.S. Marshal for the District of Oregon.
“We’re pleased to see resolution following the violent acts committed at the Hatfield Courthouse last summer and hope this verdict can help set the stage for peaceful protest conduct in the future,” said Gabriel Russell, Assistant Director for Field Operations, Eastern Zone, Federal Protective Service.
According to court documents, at approximately 1:00am on July 11, 2020, Gaines was observed using a hammer to break through a barricaded entrance at the Hatfield Federal Courthouse. At the time, federal law enforcement personnel were staged inside the courthouse to protect the facility and respond to incidents. After Gaines drove a hole through the plywood barrier, Deputy U.S. Marshals exited the door to prevent him from trespassing into the closed building.
As the marshals were exiting the barricaded door, Gaines struck a Deputy U.S. Marshal three times with the hammer. The deputy deflected the blows to prevent serious injury, but in process was struck in the left shoulder, lower neck, and upper back. While being struck, the deputy managed to hold onto Gaines while other officers handcuffed him and placed him under arrest.
On July 12, 2020, Gaines was charged by criminal complaint with one count of assaulting a federal officer with a deadly weapon. Later, on July 16, 2020, a federal grand jury in Portland indicted Gaines on the same charge. Gaines has been held in custody since his arrest the night of the incident.
Gaines faces a maximum sentence of 20 years in prison, a $250,000 fine and three years’ supervised release. He will be sentenced on December 13, 2021 before U.S. District Court Judge Karin J. Immergut.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
The case was investigated by the U.S. Marshals Service and Federal Protective Service. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Stratford Man Pleads Guilty to Federal Car Theft OffenseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that EDWIN CORDERO, 20, of Stratford, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to a federal car theft offense.
According to court documents and statements made in court, the FBI, Connecticut State Police and local police have been investigating multiple car theft rings in Connecticut, and violent crimes that are being committed using stolen vehicles.
The investigation revealed that Cordero, Christopher Mulkern and others have stolen numerous motor vehicles, and used the stolen vehicles to travel throughout Connecticut and to neighboring states to steal other vehicles and the valuables inside, including credit cards, cellular telephones, and firearms. Cordero and Mulkern typically frequented upper middleclass neighborhoods to go “car-checking” or “jigging,” which involves an attempt to open the door of a motor vehicle and, if successful, steal the vehicle and/or valuables inside.
On December 1, 2020, Cordero and Mulkern stole a Porsche Panamera from a residence in Westport, Connecticut. Shortly after midnight on December 2, law enforcement in Westerly, Rhode Island, identified the stolen Porsche and attempted to stop the car. The Porsche drove recklessly, at speeds of at least 86 mph, between Rhode Island and Connecticut, and evaded police who, for safety reasons, were forced to terminate pursuit.
At approximately 4 a.m. on December 2, Cordero, Mulkern and others used the stolen Porsche to steal a Dodge Challenger from a residence in Milford, Connecticut. In the evening of December 2, Stratford Police spotted and attempted to stop the Porsche, which was being driven by Mulkern and in which Cordero was a passenger. During the pursuit, Mulkern rammed a car stopped at a red light at an intersection, drove up on the sidewalk and through the red light, and then struck a second vehicle, causing the second vehicle to flip onto its roof. Mulkern drove the damaged Porsche onto I-95 into Bridgeport, where he and Cordero were apprehended as they attempted to enter another stolen Audi A4 that was parked on Gregory Street. A search of the stolen Audi revealed approximately 13 key fobs for other vehicles, and a search of the Porsche revealed five cellphones. In addition, Cordero possessed a key fob for the stolen Dodge Challenger, which was subsequently located parked on Main Street in Bridgeport, and Mulkern possessed two stolen credit cards.
Cordero pleaded guilty to one count of transportation of a stolen vehicle, which carries a maximum term of imprisonment of 10 years. Judge Dooley scheduled sentencing for December 3, 2021.
Mulkern pleaded guilty to the same charge on April 30, 2021, and awaits sentencing.
Cordero and Mulkern, who are both detained, have also agreed to pay restitution to at least seven owners of vehicles they stole and/or damaged.
This matter is being investigated by the Federal Bureau of Investigation, the Connecticut State Police and the Stratford, Milford, Stonington, Westport, Bridgeport, New Haven, Meriden, and Westerly (R.I.) Police Departments. The case is being prosecuted by Assistant U.S. Attorney Sarah P. Karwan.
St. Paul Man Pleads Guilty to Making Threats Against U.S. RepresentativeRead the Press Release
ST. PAUL, Minn. – A St. Paul man pleaded guilty today to one count of interstate communication of a threat against a U.S. Representative, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, on January 11, 2021, Jason Robert Burham Karimi, 32, left a voicemail on the office telephone of a U.S. Representative located in California. The voicemail contained graphic threats of violence directed at the U.S. Representative. The U.S. Capitol Police reviewed the voicemail and traced the telephone number to Karimi. On January 12, 2021, agents arranged to meet with Karimi near his St. Paul residence. Karimi told agents that he works as a lobbyist for the marijuana industry and the voicemail was meant to cause “political pain” to the U.S. Representative’s political career. Karimi admitted that he knew the voicemail he left would be perceived as a threat.
This case is the result of an investigation conducted by the FBI and the U.S. Capitol Police Department.
This case is being prosecuted by Assistant U.S. Attorney David P. Steinkamp.
Springfield Woman Sentenced to 15 Years for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, woman was sentenced in federal court today for her role in a conspiracy to distribute large amounts of methamphetamine.
Cassidy R. Clayton, 25, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years in federal prison without parole.
On Oct. 31, 2019, Clayton pleaded guilty to participating in the drug-trafficking conspiracy from Nov. 22, 2016, to Sept. 26, 2018. Clayton also pleaded guilty to participating in a money-laundering conspiracy.
Clayton admitted she received methamphetamine directly from co-defendant Cheyenne W. Conn, 45, of Everton, Mo. Conn transported approximately 10 pounds of methamphetamine per week by vehicle from California to the Springfield area. He then distributed the methamphetamine to other dealers in the conspiracy, including Clayton, who in turn distributed methamphetamine to other dealers.
Clayton admitted that she received methamphetamine on 10 occasions. On three of those occasions, she received a quarter pound, and the other times, she received less than four ounces. Clayton was arrested when she arrived at the location where law enforcement officers were executing a search warrant on Sept. 22, 2017. Inside Clayton’s purse, officers found .25 grams of methamphetamine inside a plastic bag, a glass methamphetamine pipe, three syringes loaded with an off-white liquid, and a loaded Kahr .40-caliber semi-automatic pistol.
Clayton is the fourth defendant to be sentenced in this case. Jeremy A. Ingram, 42, Laurie B. Holmes, 39, and Lonnie J. Tinker, 36, all of Springfield, were sentenced on Aug. 5, 2021. Ingram was sentenced to 20 years in federal prison without parole. Holmes was sentenced to 15 years in federal prison without parole. Tinker was sentenced to 10 years in federal prison without parole.
Conn is among nine defendants who have pleaded guilty in this case and await sentencing: Larry E Stapp, 42, Tresha R. Ahart, 31, and Megan L McNary, 27, all of Springfield; Ginger L. Huerta, also known as Ginger L. Gray, 41, of Halfway, Mo.; Lloyd R. Bradley, 44, of Fordland, Mo.; Shelby R. Maupin, 32, of Ozark, Mo.; and Summerlee M. Barnett, also known as Summerlee M. Lacount, 35, of Salem, Mo.
This case is being prosecuted by Assistant U.S. Attorney Jessica R. Sarff. It was investigated by IRS-Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Springfield, Mo., Police Department, the Greene County, Mo., Sheriff’s Department, the Dade County, Missouri, Sheriff’s Department, and the Oldham County, Texas, Sheriff’s Department.
Organized Crime and Drug Enforcement Task Force
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Seven-Time Convicted Felon Who Trafficked Fentanyl and Caused Death Sentenced to Life ImprisonmentRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Christopher A. Defilippis (43, Brandon) to life imprisonment for distributing fentanyl resulting in death and possessing with the intent to distribute fentanyl.
A federal jury had found Defilippis guilty on June 7, 2021.
According to testimony and evidence presented at trial, between March and April 2020, Defilippis distributed heroin and fentanyl in Hillsborough County. On April 17, 2020, Defilippis distributed fentanyl, which caused a fatal overdose. Deputies with the Hillsborough County Sheriff’s Office began surveillance on Defilippis and, on April 18, 2020, observed him distributing narcotics throughout Hillsborough County. Law enforcement officers arrested Defilippis, and found him to be in possession of fentanyl, cocaine, and packaging consistent with distribution.
The Hillsborough County Medical Examiner’s Office conducted an autopsy and determined that the use of the fentanyl had caused the victim’s death. Lab analysis also determined that the fentanyl mixtures obtained near the victim were all very similar to the narcotics seized from Defilippis.
This case was investigated by the Hillsborough County Sheriff’s Office, with assistance from the Hillsborough County Medical Examiner’s Office. It was prosecuted by Assistant United States Attorney Diego F. Novaes.
Santa Barbara Man Indicted in San Diego for Killing his Children in MexicoRead the Press Release
Director of Media Relations Kelly Thornton (619) 546-9726 or [email protected]
NEWS RELEASE SUMMARY – September 8, 2021
SAN DIEGO – Matthew Taylor Coleman of Santa Barbara was indicted by a federal grand jury today for taking his two young children to Rosarito, Mexico and killing them.
Coleman, 40, allegedly killed the 2-year-old boy and 10-month-old girl on August 9, 2021. The indictment filed today charges Coleman with two counts of foreign first-degree murder of United States nationals. By law, the charges are eligible for the death penalty. The Attorney General will decide whether to seek the death penalty at a later date.
“There are no words to describe the profound grief that envelops an entire community when a child is murdered,” said Acting U.S. Attorney Randy Grossman. “The Department of Justice is determined to achieve justice for these victims and their loved ones.”
“The murder of a child is difficult to understand under any circumstances,” said Kristi K. Johnson, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “I’m proud of the quick investigative efforts by FBI Agents, the Santa Barbara Police Department, U.S. Customs and Border Protection and our Mexican counterparts which led to the arrest of Mr. Coleman as he entered the United States, and I look forward to delivering justice for the young victims and their family.”
Coleman previously was charged with the same crimes in a federal complaint filed in Los Angeles. Prosecutors intend to dismiss that complaint. Coleman is expected to make his initial court appearance on the indictment tomorrow in United States District Court in downtown Los Angeles. He will appear in United States District Court in San Diego, where the case will be prosecuted, at a date to be determined.
An affidavit in support of the criminal complaint outlined the investigation that started when Coleman’s wife contacted the Santa Barbara Police to report that her husband had left the couple’s residence in a Sprinter van, and she did not know where they had gone.
The next day, Coleman’s wife filed a missing persons report. Using a computer application, Coleman’s wife was able to determine that Coleman’s phone had been in Rosarito on Sunday afternoon, the affidavit states.
According to the affidavit, the same phone-locating service was used on Monday and showed that Coleman’s phone was near the San Ysidro Port of Entry at the U.S.-Mexico border, according to the affidavit. The FBI dispatched colleagues in San Diego to contact Coleman, who entered the United States in the Sprinter van without the children. When the children were not found, FBI agents contacted law enforcement officials in Rosarito and learned that Mexican authorities that morning had recovered the bodies of two children matching the description of Coleman’s children.
After further investigation, FBI agents took Coleman into custody at the San Ysidro Port of Entry.
The FBI, U.S. Customs and Border Protection and the Santa Barbara Police Department are investigating this matter. The Santa Barbara County District Attorney’s Office provided substantial assistance throughout the investigation.
The Department of Justice gratefully acknowledges the Government of Mexico, to include the Fiscalía General del Estado de Baja California, and the Secretaría de Seguridad Pública Municipal de Rosarito, for their extraordinary efforts, support, and cooperation during the investigation.
After reviewing the case, the United States determined that the most appropriate venue was in the Southern District of California. Assistant U.S. Attorney Peter Ko of the U.S. Attorney’s Office for the Southern District of California and Special Assistant U.S. Attorneys Kevin Butler, Joanna Curtis, and Billy Joe McLain of the U.S. Attorney’s Office for the Central District of California are prosecuting this case.
DEFENDANT CASE NUMBER 21CR2627
Matthew Taylor Coleman Age: 40 Santa Barbara, California
SUMMARY OF CHARGES
Title 18, United States Code, Section 1119 – Foreign First-Degree Murder of U.S. Nationals
Maximum Penalty – Death or life and a fine of up to $250,000
AGENCIES
The Federal Bureau of Investigation
United States Customs and Border Protection
Santa Barbara Police Department
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
San Quentin Prison Guard and Two Others Charged in Scheme to Smuggle Contraband into Death RowRead the Press Release
SAN FRANCISCO - Keith Christopher and Isaiah Wells appeared in federal court today to face the charge of conspiracy to commit honest services fraud using interstate wires, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair. A third co-defendant, Tanisa Smith-Symes, will appear tomorrow in federal court in Las Vegas, Nevada, where she was arrested today.
According to the complaint, Christopher, 37, of Pittsburg, California, Smith-Symes, 45, of Las Vegas, Nevada, and Wells, 32, of Tracy, California, conspired to smuggle cell phones into San Quentin State Prison’s East Block, where condemned inmates are housed. Cell phones create safety and security risks for prison employees and other inmates, and state law deems them contraband and prohibits their possession by inmates. Christopher is a Corrections Officer at San Quentin State Prison in Marin County. The complaint alleges that Smith-Symes worked with a Death Row inmate with whom she had a relationship to obtain the contraband phones and ship them to Wells, who then provided the phones to Christopher, who in turn smuggled them into the prison. Using this scheme, the complaint alleges that the conspirators successfully smuggled at least 25 phones into the prison and that the inmate working with Smith-Symes sold the phones inside the prison for up to $900 each. Smith-Symes sent bribery payments to Christopher through Wells and others whom Christopher had appointed to receive the money. The complaint further alleges that Christopher charged $500 as payment for each phone he smuggled into the prison.
The complaint filed against Christopher, Smith-Symes, and Wells charges each defendant with one count of conspiracy to commit honest services fraud using interstate wires in violation of 18 USC §§ 1343, 1346, and 1349. The charge carries a maximum sentence of 20 years in prison and a $250,000 fine. Any sentence following conviction, however, is imposed by a court only after the court’s consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 USC § 3553.
Christopher and Wells appeared today on the charges before United States Magistrate Judge Sallie Kim, who sits in San Francisco. They were released on bond and are scheduled to next appear in federal court on September 17, 2021.
Charges contained in a criminal complaint are mere allegations. As in any criminal case, the defendants are presumed innocent unless and until proven guilty in a court of law.
The prosecution is the result of an investigation by the FBI and the California Department of Corrections and Rehabilitation’s Office of Internal Affairs.
San Pablo Man Pleads Guilty to Sexual Coercion of A 3-Year-Old GirlRead the Press Release
OAKLAND – Adalberto Borja Guardado pleaded guilty yesterday in Oakland federal court to enticement and coercion of a minor, announced Acting United States Attorney Stephanie M. Hinds and Homeland Security Investigations Special Agent in Charge Tatum King.
In his plea agreement, Guardado, 67, of San Pablo, admitted that on September 9, 2019, a three-year-old girl visited his residence with her mother, who provided home health care to Guardado’s elderly mother. Guardado agreed to watch the girl while the girl’s mother provided the home care in another part of the residence. Guardado admitted in his plea agreement that within minutes of watching the girl, he pulled down the girl’s pants and molested her. He further admitted that he used his cell phone to record his molestation.
Guardado was charged by criminal information in federal court on June 10, 2021, with enticement and coercion of a minor, in violation of 18 U.S.C. § 2422(b). The penalty for a violation of 18 U.S.C. § 2422(b) is a maximum imprisonment term of life in prison, with a mandatory minimum imprisonment term of ten years, and a fine of $250,000. However, any sentence imposed by a court will occur only after the court’s consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Guardado’s sentencing hearing is scheduled for January 11, 2022, in United States District Court in Oakland before the Honorable Jeffrey S. White, United States District Judge. Guardado remains in custody while awaiting his sentencing.
Jonathan U. Lee is the Assistant U.S. Attorney who is prosecuting the case, with the assistance of Leeya Kekona, Kay Konopaske, and Kathleen Turner. The prosecution is the result of an investigation by Homeland Security Investigations, the Silicon Valley Internet Crimes Against Children Task Force, and the San Pablo Police Department.
SWGA Pair Sentenced to Federal Prison for Trafficking a Runaway TeenRead the Press Release
MACON, Ga. – Two defendants guilty of trafficking a runaway Middle Georgia teen, forcing the victim to engage in sexual acts for food and shelter, have been sentenced to federal prison for their crimes.
Demetrius Hunter aka Red, 39, of Albany, Georgia, was sentenced to serve 240 months in federal prison to be followed by 25 years of supervised release after pleading guilty to sex trafficking of children and co-defendant Tamara Taylor aka Coco, 30, of Albany, was sentenced to serve 60 months in federal prison to be followed by 15 years of supervised release after pleading guilty to use of facilities in interstate and foreign commerce to transmit information about a minor. The sentences were imposed by U.S. District Judge Marc Treadwell. There is no parole in the federal system.
“Hunter and Taylor’s shocking manipulation of this runaway child—forcing her to perform sex acts in exchange for food and shelter—is pure evil. Our office will pursue justice for those who sexually traffic and abuse children,” said Acting U.S. Attorney Peter D. Leary. “Our law enforcement community stands strongly united in doing everything in our power to protect children from sexual predators and seeking justice for those who choose to harm children.”
“Instead of trying to help a young child in need of assistance, these two adults instead took advantage of her desperate situation and traumatized her further,” said Phil Wislar, Acting Special Agent in Charge of FBI Atlanta. “Hopefully this sentencing in some way helps this innocent victim in her recovery from the serious emotional scars they left her with.”
On October 5, 2016, Taylor came across the victim, a 15-year-old female, at the Bridgeview hotel in Macon, Georgia. The day prior, the victim had run away from a group foster home and was at the hotel looking for her sister. The victim did not find her sister and had been abandoned by her ride. The victim informed Taylor of her age and that she had run away from a group home. Taylor invited the victim to her room where Taylor introduced the victim to Hunter, who knew her age and that she had run away. Hunter told the victim that they were traveling the world and invited her to stay with them but told her that she would have to make money. The victim did not understand at that time how she would be expected to make money.
After staying one night at the Bridgeview, Hunter and Taylor took the victim to another hotel in Warner Robins, Georgia. The victim’s profile was placed on Backpage, a website commonly used for online advertisements for commercial sex acts. Records from Backpage verify that the victim’s profile had been posted by Taylor on Backpage. The advertisements included photographs of the victim in underwear and included a cell phone number to call that was provided by Hunter and Taylor. Hunter explained the victim would have to do “tricks” to get money and forced the victim to perform sex acts on him. The victim remained with Hunter and Taylor until October 18, 2016, when they were encountered by law enforcement, and the victim was returned to her group foster home. As a result of the advertisements posted on Backpage, the victim had to engage in two to five commercial sex acts. During her time with Hunter and Taylor, the victim relied on them for her shelter and food. She stated in her interview with law enforcement that when having to engage in one commercial sex act, she told herself “you gotta do this, you gotta get the money, that’s how you eat.”
The case was investigated by the FBI.
Assistant U.S. Attorneys Melody Ellis and Beth Howard prosecuted the case.
Placing an Incendiary Device on Another’s Property Leads to Federal Prison for Iowa ManRead the Press Release
A man who placed an incendiary device on the property of another was sentenced September 7, 2021, to more than three years in federal prison.
Aaron Hinke, age 46, from Bellevue, Iowa, received the prison term after a March 22, 2021 guilty plea to possession of a national firearms act destructive device not registered to possessor.
Information disclosed at a prior hearing showed that, on September 6, 2020, Hinke placed an incendiary device on the property of a homeowner in La Motte, Iowa. The incendiary device consisted of a cigarette, firework, and a long firework fuse that was taped to a small gasoline container that contained a gasoline/oil mixture. The incendiary device was later found by the homeowner’s five-year-old child.
Hinke was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Hinke was sentenced to 37 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Hinke is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Dillan Edwards and investigated by the Jackson County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-01006.
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Philadelphia Man Pleads Guilty to Kidnapping and Robbing United States Postal WorkersRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that James Chandler, 55, of Philadelphia, PA entered a plea of guilty before United States District Court Judge R. Barclay Surrick to two counts of robbery of a postal employee and one count of kidnapping.
In February 2021, the defendant was charged by Indictment in connection with two incidents that occurred on January 11 and February 4, 2021, during which Chandler robbed postal workers using a replica handgun, forcing them into their postal trucks and stealing packages from inside. During the incident in February, Chandler also forced the postal worker to drive him for several blocks in her postal truck before he fled on foot.
“Targeting and violently assaulting employees of the United States Postal Service is a serious federal crime,” said Acting U.S. Attorney Williams. “Mail carriers provide an essential service to nearly every citizen and business, oftentimes going above and beyond to execute their duties in challenging circumstances such as the COVID-19 pandemic. Mr. Chandler terrorized two postal workers using a replica handgun, and he will now face the serious consequences of his crimes.”
“Yesterday, James Chandler pled guilty to terrorizing several Postal Carriers who were just doing their jobs, delivering mail in neighborhoods of West Philadelphia,” said Damon Wood, Postal Inspector in Charge of the Philadelphia Division of the Postal Inspection Service. “Postal employees are essential workers and have worked hard, sometimes under trying circumstances, to keep the mail flowing over the last 18 months of the pandemic. When Mr. Chandler interrupted those efforts last winter he didn’t count on investigators from the Postal Inspection Service working and the Philadelphia Police Department working tirelessly to identify and arrest him. Protecting U.S. Postal Service employees and customers is a responsibility we prioritize above most else. Because of the quick and diligent work of the Inspectors from the Inspection Service and officers from the Philadelphia Police Department, Mr. Chandler didn’t get a chance to terrorize anyone else.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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 case was investigated by the United States Postal Inspection Service and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Justin Oshana.
Parkersburg Man Pleads Guilty to Defrauding Financial InstitutionRead the Press Release
CHARLESTON, W.Va. – A Parkersburg man pleaded guilty today to defrauding a financial institution by making false statements on a loan application.
According to court documents and statements made in court, Jonathan Smith, 35, applied for and received a loan of $505,000 from the Wood County Federal Credit Union in June 2016. To influence the action of the credit union, Smith made false statements on the loan application such as mispresenting his monthly gross income and falsely stating that he was the owner of M&J Towing. Smith also misrepresented that he was using the $505,000 to purchase a 1963 Corvette that he valued at $1.2 million, when in fact, Smith had already purchased the corvette for $35,000 and the actual fair market value of the automobile was less than $50,000.
Smith faces up to 30 years in prison when he is sentenced on December 8, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the United States Secret Service.
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Christopher Arthur is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00173.
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Orange Park Man Sentenced to 15 Years for Offering Child Sexual Abuse Photos for Sale on the InternetRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Antony Eugene Woody (33, Orange Park) to 15 years in federal prison for advertising images depicting the sexual abuse and torture of children for sale using the internet. Woody was also ordered to serve a six-year term of supervised release, to register as a sex offender, and to pay a fine of $995. Woody has been in custody since his arrest on March 22, 2019.
Woody had pleaded guilty on May 14, 2021.
According to court documents, in February 2019, the FBI discovered that an online user named “imsoofreakyy” was using a particular social media application to offer child sex abuse images for sale on the internet. Meanwhile, the Clay County Sheriff’s Office (CCSO) received a Cybertip from the National Center for Missing and Exploited Children that the same user (“imsoofreakyy”) was using a particular email address to advertise images of children being sexually assaulted. CCSO detectives were able to identify this individual as Antony Eugene Woody who resided in Orange Park.
On March 22, 2019, CCSO officers and FBI agents executed a search warrant at Woody’s residence and later made contact with Woody at a local supermarket. During an interview, Woody admitted that he downloaded child sex abuse images from the internet, labeled these images with titles, prices, and his online contact information, and then re-posted them for sale using a social media app. Woody also admitted that online customers responded to his advertisements, that he received money for these sales using the Venmo app, and that he had defrauded some of these customers by taking their money but refusing to send them the contraband images that they had purchased. Woody received at least $995 in profits from these sales.
A search of Woody’s cellphone revealed 33 videos and 40 images depicting the sexual abuse of young children. Two of these images bore advertising language that was created and placed on them by Woody.
This case was investigated by the Clay County Sheriff’s Office, the Westbrook (Maine) Police Department, the Broward County (Florida) Sheriff’s Office, and the Federal Bureau of Investigation in Boston and Jacksonville, with assistance from the National Center for Missing and Exploited Children. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Operation Second Wave Update: Final Five Defendants in Major Federal Drug Conspiracy Investigation Sentenced in Federal CourtRead the Press Release
CHARLESTON, W.Va. – Five defendants charged as a result of a long-term investigation known as “Second Wave” were sentenced this week in federal court for their roles in a conspiracy to distribute methamphetamine and marijuana. Roger Jarea Drake, 32, of Charleston, and Craig Edward Redman, 42, of Kimberly, were sentenced to 151 and 46 months in prison, respectively, for conspiracy to distribute methamphetamine. Tonya Nicole Simerly, 36, of Montgomery, was sentenced to 24 months in prison for interstate travel in aid of a racketeering enterprise. Ronald Lee Thomas III, 29, of Sissonville, was sentenced to two years of probation for conspiracy to distribute marijuana, and Steven Matthew Bumpus, 32, of Charleston, was sentenced to three years of probation for theft of mail by a United States Postal Service employee.
More than a dozen individuals were charged in federal court as a result of Operation “Second Wave,” a long-term investigation of a drug trafficking ring involved in the distribution of methamphetamine, cocaine, heroin, marijuana, and THC products. According to court documents, Jason Michael Terrell, Larry Terrell Martin, and Roger Jarea Drake were principally involved in bringing the drugs into the Southern District of West Virginia from out-of-state suppliers. Carol Belton, Jimmy Lee Coleman, and Craig Edward Redman distributed methamphetamine to street-level dealers and users. Joe Fragale, Sr. and Joe Fragale II distributed methamphetamine and heroin. Ronald Lee Thomas III distributed marijuana. Gregory Eugene Woods distributed cocaine. Tonya Nicole Simerly drove to Columbus, Ohio with Terrell and Drake where they obtained methamphetamine through Rashawn Akmed Miller who acted as a “middle-man.” Bumpus was employed as a U.S. Postal Service mail carrier who delivered drug packages to Martin that were addressed to fictitious individuals along Bumpus’ route.
In previous hearings, the court sentenced Terrell to 14 years in prison, Martin to 151 months in prison, Woods to 160 months in prison, Joe Fragale, Sr. to 120 months in prison, Miller to 70 months in prison, Fragale II to 42 months in prison, Coleman to 36 months in prison, and Belton to 18 months in prison.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Central West Virginia Drug Task Force, the United States Postal Inspection Service (USPIS), the United States Postal Service – Office of Inspector General (USPS-OIG), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration (DEA), the Kanawha County Sheriff’s Office (KCSO), the Metropolitan Drug Enforcement Network Team (MDENT) and the Charleston Police Department.
Senior United States District Judge David A. Faber imposed the sentences. Assistant United States Attorney Joshua C. Hanks handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00154.
One-Time EDD Employee Agrees to Plead Guilty for Fraudulently Obtaining More Than $1.6 Million in COVID-Related Jobless BenefitsRead the Press Release
LOS ANGELES – A former California Employment Development Department (EDD) employee has agreed to plead guilty to a federal criminal charge for causing nearly 200 fraudulent COVID-related unemployment relief claims to be filed in other people’s names, resulting in more than $1.6 million in ill-gotten gains, the Justice Department announced today.
Gabriela Llerenas, a.k.a. “Maria G. Sandoval,” 44, of Perris, signed a plea agreement that was filed today in which she has agreed to plead guilty to a single-count information charging her with mail fraud.
Court records show that Llerenas previously worked at EDD as a disability insurance program representative. She resigned in March 2002 after admitting to fraudulently authorizing and paying disability benefits administered by EDD. She was sentenced to 37 months in federal prison in connection with that scheme.
The new scheme that Llerenas has admitted running took advantage of the expanded eligibility for unemployment insurance (UI) benefits made possible by the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by Congress and signed into law in March 2020. The CARES Act provided additional UI benefits to qualified individuals and helped provide UI benefits during the COVID-19 pandemic to people who did not otherwise qualify, including business owners, self-employed workers, independent contractors, and those with a limited work history.
From April to October 2020, Llerenas filed and caused the filing with EDD of fraudulent unemployment insurance benefits that falsely asserted the named claimants were self-employed independent contractors – often identifying them as cake decorators or event attendants – who were negatively affected by the COVID-19 pandemic. Llerenas obtained some of the names, Social Security numbers and other identifying information she used to submit the fraudulent claims through her prior work as a tax preparer.
In her plea agreement, Llerenas also admitted to falsely stating on some of the applications that the claimants were residents of California entitled to unemployment insurance benefits administered by EDD when in fact they lived elsewhere. She also admitted that, on some applications, she inflated the amounts of income she reported for the claimant to maximize the benefit amount. She also admitted to sometimes filing a dozen or more fraudulent EDD claims in a day.
As a result of the fraudulent unemployment benefits applications that Llerenas filed and caused to be filed, EDD authorized Bank of America to mail debit cards in the names of the claimants to addresses she provided, including her residence, her husband’s business location, her mother’s apartment and the addresses of friends and other family members.
Llerenas admitted that she charged the named claimants a fee for filling the applications, which was often paid out of the fraudulently obtained benefits. In at least one case, she told the named claimant that she was still employed at EDD and could control the distribution of the unemployment insurance benefits, and then demanded an additional payment for “releasing” the benefits.
In total, 197 debit cards were fraudulently issued because of this scheme, resulting in losses to EDD and the United States Treasury that Llerenas has admitted were at least $1,633,487.
Llerenas is scheduled to make her initial appearance on September 22. The criminal offense to which Llerenas has agreed to plead guilty carries a statutory maximum sentence of 20 years in federal prison.
The Department of Labor-Office of Inspector General, EDD-Investigations Division, Homeland Security Investigations, United States Postal Inspection Service, Federal Bureau of Investigation and Social Security Administration-Office of Inspector General investigated this matter.
Assistant United States Attorney Ranee A. Katzenstein, Chief of the Major Frauds Section, is prosecuting this case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud.
The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Ohio woman admits to embezzling from Wetzel County businessRead the Press Release
WHEELING, WEST VIRGINIA – Cheryl M. Zambori, of St. Clairsville, Ohio, has admitted to an embezzlement charge, Acting United States Attorney Randolph J. Bernard announced.
Zambori, 50, pleaded guilty today to one count of “Wire Fraud.” Zambori was employed as a Finance Manager at Litman Excavating, Inc. in New Martinsville, West Virginia. Beginning in July 2016, Zambori began a scheme to take $317,290.53 from the Litman business account held at a bank in Wheeling, West Virginia, and transfer funds to her personal accounts held out of state.
As a part of the plea agreement, Zambori has agreed to pay restitution to Litman Excavating, Inc. in the amount of $317,290.53.
Zambori faces up to 20 years of incarceration and fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The U.S. Postal Service Inspection Service investigated.
U.S. Magistrate Judge James P. Mazzone presided.
New Mexico Man Who Sold ‘Ghost Guns’ IndictedRead the Press Release
A New Mexico man who allegedly sold an undercover agent four “ghost guns” has been charged with drug and gun crimes, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Isaiah Dante Moreno, 25, and codefendant Elias Ignacio Sisneros, 22, were indicted on September 8, 2021 for possession of unregistered firearms, possession of firearms in furtherance of a drug trafficking crime, conspiracy to distribute and possess with intent to distribute tetrahydrocannabinols (THC) and distribution of THC.
According to court documents, the defendants allegedly sold a DEA task force officer four fully-automatic, AR-style firearms and a pound of THC wax during an undercover buy in Lubbock, Texas.
During the buy, Mr. Moreno allegedly explained to the agent that he had helped manufacture the firearms, making them “ghost guns,” unregistered firearms assembled from parts. Because ghost guns lack serial numbers, they are often difficult for law enforcement to trace. Mr. Moreno allegedly informed the agent that due to some specially manufactured parts, the firearms were fully automatic, meaning they could fire more than one round of ammunition with a single depression of the trigger.
Following the undercover buy, Mr. Moreno and Mr. Sisneros, who had driven to Lubbock from New Mexico, left the scene in a black Chrysler sedan. Officers pulled them over for a traffic violation and conducted a probable-cause search of the vehicle. Inside, they found additional THC wax, two handguns, and the money received from the undercover agent. Both men were immediately arrested.
An indictment is merely an allegation of criminal conduct, not evidence. Both defendants are presumed innocent until proven guilty in a court of law.
If convicted, they face various penalties, including up to life in federal prison.
The Drug Enforcement Administration’s Dallas Field Division, Lubbock Resident Office conducted the investigation with assistance of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Caprock HIDTA, Lubbock Texas Anti-Gang Taskforce (TAG), the Lubbock County Sheriff’s Office, Lubbock Police Department and the Texas Department of Public Safety. Assistant U.S. Attorney Sean Long is prosecuting the case.
New Mexico Man Sentenced in Federal Court in Iowa for Flying a Plane Without a Pilot’s LicenseRead the Press Release
A man who attempted to pilot an airplane from Wisconsin to New Mexico without a pilot’s license was sentenced today in federal court. Keith Alexander Thomas, age 44, from Portales, New Mexico, received the sentence after an April 15, 2021 guilty plea to one count of operating as an airman without an airman certificate.
Information disclosed at sentencing showed that in June 2018, Thomas and another man flew from New Mexico to Wisconsin so that the other man could purchase a Cessna airplane. Thomas, who did not have a pilot’s license, agreed to serve as the pilot of the Cessna and attempt to fly it back to New Mexico. The Cessna was not air-worthy and sustained engine failure as it flew over Iowa. Thomas was required to make an emergency landing in Waterloo, Iowa, but also failed to establish radio communication with the aviation company whose airstrip he landed on. The Cessna not only suffered engine failure, the plane was also out of inspection compliance and the landing gear was not operational. No one was hurt during the emergency landing.
Thomas was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Thomas was sentenced to two years’ probation and fined $5,000.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the U.S. Department of Transportation – Office of the Inspector General.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-2003.
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New Haven Man Charged with Crack Cocaine Distribution and Ammunition Possession OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford has returned an indictment charging BRIAN WARD, 29, of New Haven, with narcotics distribution and ammunition possession offenses.
The indictment was returned on August 31, 2019. Ward appeared today via videoconference before U.S. Magistrate Judge Sarah A. L. Merriam and pleaded not guilty to the charges. He has been detained since August 18.
As alleged in court documents, on July 21, 2021, law enforcement arrested Ward’s associate, Zaquawn Arrington, on a federal criminal complaint at Arrington’s West Haven residence. Ward was present at Arrington’s residence at the time of the arrest. A search of the residence revealed crack cocaine, a digital scale, and $2,075 in cash. During the search, investigators observed Ward throw a bag from the house. The bag contained crack cocaine packaged for distribution. Later that day, investigators conducted a court-authorized search of Ward’s New Haven residence and seized a pistol box containing four ammunition magazines, and a box of 39 9mm rounds.
It is alleged that Ward was previously convicted of state felony drug and assault offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
It is further alleged that Ward is seen on surveillance video firing a gun at a group of individuals immediately after one of the individuals shot and killed his associate on August 8, 2021, in Hamden.
The indictment charges Ward with one count of possession with intent to distribute cocaine base (“crack”), which carries a maximum term of imprisonment of 20 years, and one count of possession of ammunition by a felon, which carries a maximum term of imprisonment of 10 years.
Arrington has been charged separately with federal narcotics offenses and is awaiting trial.
Acting U.S. Attorney Boyle stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation’s New Haven Safe Streets/Gang Task Force, the New Haven Police Department and the West Haven Police Department. The Task Force includes members from the Connecticut State Police, Connecticut Department of Correction and the New Haven, Milford, East Haven and West Haven Police Departments.
The case is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
NXIVM President Nancy Salzman Sentenced to 42 Months’ Imprisonment for Racketeering ConspiracyRead the Press Release
Earlier today, in federal court in Brooklyn, Nancy Salzman, also known as “Prefect,” the former president and co-founder of Nxivm, was sentenced to 42 months’ imprisonment and ordered to pay a $150,000 fine by United States District Judge Nicholas G. Garaufis for racketeering conspiracy, including predicate acts of conspiracy to commit identity theft and conspiracy to obstruct justice. Salzman agreed to forfeit several real properties, more than $500,000 in cash and a Steinway grand piano. Salzman pleaded guilty in March 2019.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Thomas Fattorusso, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), and Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI) announced the sentence.
“In her misguided loyalty and blind allegiance to Keith Raniere, the defendant engaged in a racketeering conspiracy designed to intimidate Nxivm’s detractors and that inflicted harm on Nxivm’s members,” stated Acting U.S. Attorney Kasulis. “Today’s sentence holds the defendant accountable for her crimes and we hope that it brings some measure of closure to the vulnerable women who were victimized and abused.” Ms. Kasulis also expressed her appreciation to the New York State Police and the United States Attorney’s Office for the Northern District of New York for their assistance during the investigation and prosecution.
“Serving as Raniere’s right hand for more than a decade, Nancy Salzman’s conduct supported Nxivm’s objectives to recruit victims, stave off critics and alter evidence connected to a federal lawsuit. Today’s sentence does little to erase the suffering of Nxivm’s victims, but it serves as another reminder of the government’s commitment to seeing this case through to the end,” stated FBI Assistant Director-in-Charge Driscoll.
“Today, Nancy Salzman was held accountable for the role she played in this devious criminal enterprise,” stated IRS-CI Acting Special Agent-in-Charge Fattorusso. “As with many conspiracies, the financial aspects of this investigation required the expertise of IRS Criminal Investigation to unravel the layers of falsehood and deceit.”
“Salzman was essential to the NXIVM criminal enterprise, not merely a peripheral co-defendant. As the co-founder with Keith Raniere, Salzman had immense influence on NXIVM, which included conspiracy to commit identity theft and conspiracy to alter records,” stated HSI Special Agent-in-Charge Fitzhugh. “HSI New York’s strong relationship with its federal partners allows for the seamless and effective investigations that lead to the arrest, prosecution, and sentencing of those involved.”
For more than a decade and until her arrest in July 2018, Nancy Salzman was a high-ranking member of a criminal enterprise led by her co-defendant Keith Raniere. The primary purpose of the enterprise was to promote Raniere and recruit individuals into various purported self-help organizations that Raniere founded, including Nxivm and affiliated programs, and a secret society within Nxivm called “DOS.”
Between August 2005 and November 2008, Nancy Salzman, along with Raniere, participated in the unlawful surveillance and investigation of perceived critics and enemies of Raniere and Nxivm. As part of the scheme, Nancy Salzman agreed to unlawfully surveil these perceived enemies in an attempt to gain advantage over them and stop them from criticizing the company. On March 27, 2018, a search warrant was executed on Salzman’s residence. Law enforcement agents recovered a box containing purported private banking information of many individuals perceived to be critics and enemies of Raniere, including journalists, judges and an expert on cults.
The defendant also conspired to obstruct justice by altering videotapes that were to be produced in discovery in a federal lawsuit in New Jersey. In 2003, Nxivm and affiliated entities filed a copyright infringement suit against a former Nxivm student, her parents and a cult deprogrammer. In 2008, attorneys representing the former student filed counterclaims against Nxivm alleging that the defendant had misrepresented the nature and effectiveness of Nxivm’s programs. During the course of the pending litigation, the defendant and others agreed to alter the videotapes to remove segments that they believed would have supported the former student’s claims and to make it look as if the videos were unedited. These altered videotapes were then produced in discovery by Nxivm’s attorneys with the false claim that they were provided in “unedited fashion.”
Raniere was convicted by a federal jury of racketeering and racketeering conspiracy, sex trafficking, attempted sex trafficking and sex trafficking conspiracy, forced labor conspiracy and wire fraud conspiracy. On October 27, 2020, Raniere was sentenced to 120 years’ imprisonment. On September 30, 2020, Nxivm executive board member Clare Bronfman was sentenced to 82 months’ imprisonment for identity theft and immigration offenses. On April 19, 2019, Kathy Russell, a bookkeeper for Nxivm, pleaded guilty to visa fraud and is awaiting sentencing.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Tanya Hajjar and Kevin Trowel are in charge of the prosecution. Assistant United States Attorney Tanisha Payne of the Criminal Division’s Asset Recovery Section is handling forfeiture matters.
The Defendant:
NANCY SALZMAN (also known as “Prefect”)
Age: 67
Clifton Park, New YorkDefendants Previously Sentenced:
KEITH RANIERE (also known as “Vanguard” and “Grandmaster”)
Age: 61
Waterford, New YorkCLARE BRONFMAN
Age: 42
Clifton Park, New YorkALLISON MACK
Age: 39
Brooklyn, New YorkLAUREN SALZMAN
Age: 45
Clifton Park, New YorkDefendant To Be Sentenced:
KATHY RUSSELL
Age: 63
Clifton Park, New YorkE.D.N.Y. Docket No. 18-CR-204 (S-2) (NGG)
Muskogee Resident Convicted of Killing Twin BrotherRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that Kyle Joseph Vannortwick, age 36, of Muskogee, Oklahoma was found guilty by a federal jury of Murder –Second Degree in Indian Country, in violation of Title 18, United States Code, Sections 1111(a), 1151 and 1153. The jury trial began with testimony on Monday, August 16, 2021 and concluded on Tuesday, September 7, 2021 with the guilty verdict. The defendant faces up to life imprisonment for the crime the jury found he committed.
During the trial, the United States presented evidence that on February 18, 2018, the defendant assaulted his brother, Adam Vannortwick, in their home. During the assault, the defendant stabbed the victim three times with a BBQ Knife; once in the head, once in the neck and once in the chest. As a result of the stab wounds, the victim lost a substantial amount of blood prior to medical treatment and ultimately succumbed to those injuries. The defendant was apprehended at the scene of the incident. The defendant claimed the death was accidental. At trial, the defendant testified his brother attacked him and he pushed him away causing the brother to fall on a kitchen table where the BBQ knife was laying. In closing argument, the defense contended the three stab wounds must have occurred when the victim landed on the table. Conversely, the United States argued the defense theory was impossible and the evidence demonstrated the defendant stabbed his twin brother three separate times causing his death.
The case was originally set to be tried in the District Court of Muskogee County, Oklahoma where the murder took place. However, after the United States Supreme Court determined the Muscogee (Creek) Reservation had never been disestablished by Congress, the case had to be dismissed in state court and refiled in federal court because the murder happened in Muskogee County, within the boundaries of Muscogee (Creek) Nation Reservation and the defendant was a member of a federally recognized Indian Tribe.
The guilty verdict was the result of an investigation by the Muskogee Police Department and the Federal Bureau of Investigation.
The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma in Muskogee, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following completion of the report. Vannortwick was remanded to the custody of the United States Marshal pending imposition of sentencing.
Montgomery Man Pleads Guilty to String of Bank Robberies in Central AlabamaRead the Press Release
Montgomery, Ala. – On Tuesday, September 7, 2021, Jamie Josuhnta Ryans, 27, from Montgomery, Alabama, pleaded guilty to robbing four banks during a two-month period in 2019, announced Acting United States Attorney Sandra J. Stewart.
During the plea hearing, Ryans admitted to robbing banks in four different counties in central Alabama. Information on the banks and dates are as follows:
- BB&T Bank in Montgomery, Alabama, robbed on October 17, 2019.
- BanccorpSouth Bank in Hayneville, Alabama, robbed on October 25, 2019.
- Community Neighbor Bank in Greenville, Alabama, robbed on November 6, 2019.
- First National Bank of Dozier in Dozier, Alabama, robbed on December 11, 2019.
According to court records and statements made in open court, on each occasion Ryans entered the bank and gave a teller a note demanding money but did not produce a weapon or show that he had one. However, during the December 11th robbery, Ryans did imply to the teller at the First National Bank of Dozier that he had a firearm in his pocket. Tellers at all four locations ultimately complied with Ryans’ written demands and gave him money from their bank drawers. After the First National Bank Robbery in Dozier, Ryans entered a waiting vehicle being driven by Kendrick Deantay Flynn, a 31-year-old also from Montgomery. Flynn previously pleaded guilty to his involvement in the Dozier bank robbery and on March 31, 2021, was sentenced to 38 months in prison to be followed by three years of supervised release.
A sentencing hearing will be scheduled for Ryans in the coming months. At this hearing he will be facing up to 20 years in prison. Ryans will also be subject an order of restitution to the banks after their total losses are determined by the court.
This case was investigated by the Federal Bureau of Investigation (FBI), the Montgomery Police Department, the Montgomery County Sheriff’s Office, the Hayneville Police Department, the Lowndes County Sheriff’s Office, the Greenville Police Department, the Butler County Sheriff’s Office, and the Crenshaw County Sheriff’s Office, with assistance from the Alabama Law Enforcement Agency (ALEA). Assistant United States Attorney Russell Duraski is prosecuting the case.
Missouri Man Indicted for Allegedly Detonating ExplosivesRead the Press Release
KANSAS CITY, KAN. – A federal grand jury in Kansas City, Kansas, returned an indictment charging a Missouri man with one count of Arson, one count of felon in possession of an explosive, and one count of transportation of explosive materials.
According to court documents, Josiah Lewis, 43, of Grandview, Missouri, allegedly detonated explosives at a business on West 135th Street in Overland Park, Kansas, in attempt to gain access into an automatic teller machine.
The Overland Park Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) are investigating the case.
Assistant U.S. Attorney David Zabel is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Middleton Man Sentenced to 12 Years in Prison for Distribution and Possession of Child PornographyRead the Press Release
BOISE – Colton Dune Turner, 20, of Middleton, was sentenced to twelve years in federal prison for distribution and possession of child pornography, announced Acting U.S. Attorney Rafael M. Gonzalez, Jr. today. Chief U.S. District Judge David C. Nye also ordered Turner to serve 25 years of supervised release following his prison sentence. Turner pleaded guilty to the charges on April 13, 2021.
According to court records, the investigation began after the online platform MeWe reported that three MeWe accounts had been used to distribute child pornography in July, August, and September 2019. An investigator with the Canyon County Prosecuting Attorney’s Office (CCPA) investigated the reports and determined that the accounts belonged to Turner. The CCPA investigator obtained search warrants for the MeWe accounts, and located 218 images of child pornography, including images depicting prepubescent minors, toddlers, and infants. The CCPA investigator also located evidence showing that Turner used the accounts to distribute child pornography, including explicit images of an eight-year-old child that he had taken with his cellphone.
The CCPA investigator obtained a search warrant for Turner’s residence in Middleton and his cellphone. The CCPA, and other members of law enforcement, served the search warrant on November 13, 2019, and seized Turner’s cellphone. A forensic examination of the cellphone revealed over 600 images of child pornography, including the explicit images that Turner had taken of the eight-year-old child.
At sentencing, Judge Nye also ordered Turner to pay restitution of $57,000 to victims in the images he possessed. As a result of conviction, Turner will be required to register as a sex offender.
Acting U.S. Attorney Gonzalez credited the cooperative efforts of the Canyon County Prosecuting Attorney’s Office, the Idaho Internet Crimes Against Children Task Force, and the Middleton Police Department, which led to charges. “This is a particularly egregious case involving an adult using an online platform to exploit dozens of children,” said Mr. Gonzalez. “I commend these investigators for aggressively pursuing this defendant and holding him accountable. We continue to urge parents, teachers, caregivers, young people, and businesses to be vigilant in reporting these types of crimes to law enforcement,” he concluded.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Man Sentenced to 5 Years for Attempted Arson During 2020 Civil Unrest in MadisonRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Willie Tremaine Johnson, 46, Madison, Wisconsin pleaded guilty and was sentenced today by Chief U.S. District Judge James D. Peterson to 5 years in prison for attempted arson. Johnson and codefendant Anessa Fierro were indicted by a federal grand jury for this offense in October 2020.
In the early morning hours of August 25, 2020, Johnson attempted to set fire to two commercial buildings in Madison, Wisconsin. Business A was an office building, and Business B was a mixed-use rental property with apartments on the upper levels and retail space on the street level. Several apartments were occupied by sleeping residents at the time.
At Business A, Johnson helped a group of people break out the building’s front windows, and another individual poured gasoline along the walls. Johnson then lit material that had been tossed onto the gasoline, causing the vapors to ignite.
At Business B, Johnson, along with several other people, broke out the retail store’s windows. With the interior of the building exposed, another individual poured gasoline along the front walls. Johnson attempted to ignite the gasoline vapors with a cigarette lighter but fled when officers from the Madison Police Department arrived.
Fierro’s combined plea and sentencing hearing is scheduled for October 19, 2021. Because she has not yet pleaded guilty, the charges against her are merely an accusation and she is presumed innocent until and unless proven guilty.
“Arson should never be confused with legitimate protest. Those who engage in such conduct without regard for the potentially deadly consequences will be held accountable,” said Acting U.S. Attorney O’Shea. “Our office will work with our local, state, and federal law enforcement partners to bring those who commit this type of crime to justice.”
"Willie Johnson displayed a complete disregard for the safety of others by committing these acts,” said ATF Assistant Special Agent in Charge Jonathan Ortiz, of the St. Paul Field Division. “ A fire can easily consume a building in mere minutes, putting every occupant or passerby at risk of serious injury or death. We are glad the attempts were unsuccessful since a number of individuals lived in apartment units above one of the locations he attempted to set ablaze. Whether attempted arson or actual, ATF is committed to investigating arson-related crimes alongside our state and local partners.”
The charges against Johnson and Fierro are the result of an investigation conducted by the Madison Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Chadwick M. Elgersma prosecuted this case.
Long Island Businessmen Plead Guilty to Hoarding and Price-Gouging of Scarce Personal Protective EquipmentRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Allen Goldmeirer and his brother Steven Goldmeier, owners of a toy company called Millennium Products Group (MPG), pleaded guilty to hoarding personal protective equipment (“PPE”) amid the Covid-19 pandemic and price-gouging customers that purchased three-ply surgical masks from them in violation of the Defense Production Act of 1950. The proceeding took place before United States Magistrate Judge James M. Wicks.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty pleas.
“The defendants selfishly sought to make millions of dollars in profits during an unprecedented public health crisis by hoarding and selling at exorbitant prices personal protective equipment that was desperately needed by the State of Oklahoma to protect the public health and safety, and save lives,” stated Acting United States Attorney Kasulis. “This Office will continue to do everything in its power to enforce the Defense Production Act and ensure that opportunists like the defendants are held accountable for their indiscriminate acts of greed.” Ms. Kasulis also expressed her appreciation to the United States Attorney’s Office for the District of New Jersey and the Justice Department’s Covid-19 Hoarding and Price Gouging Task Force for their assistance with the case.
“During the height of the pandemic, cases in which people sought to capitalize on the situation at the expense of others were, unfortunately, an all-too-common occurrence. More than a year later, the FBI continues to work to identify and hold accountable any company, individual, or entity whose intention it was to do so. The Goldmeirer brothers pleaded guilty today for their role in a price-gouging scheme, and they’ll now await sentencing for their crimes,” stated FBI Assistant Director-in-Charge Driscoll.
On March 18, 2020, in response to the Covid-19 pandemic, the Defense Production Act was invoked making it illegal to acquire medical supplies and devices designated by the Secretary of Health and Human Services as scarce in order to hoard them or sell them for excessive prices.
According to statements in court today, in March and April 2020, the defendants used their toy company, MPG, to obtain millions of three-ply surgical masks from China for between approximately $0.18 and $0.60 per mask. Almost immediately thereafter, the defendants sold 1,227,500 of these masks to the State of Oklahoma, among others, at a price of $1.65 per mask – a markup of over 900% in many cases. Pursuant to their agreement with the government, the defendants will pay $1 million in restitution to the State of Oklahoma prior to sentencing in this matter. In addition, the defendants face up to one year in jail and a maximum fine of $10,000.
On May 17, 2021, the Attorney General established the Covid-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving Covid-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The government’s case is being handled by the Office’s Long Island Criminal Division, with assistance from the Justice Department’s Covid-19 Hoarding and Price-Gouging Task Force. Assistant United States Attorney Megan E. Farrell is in charge of the prosecution.
The Defendants:
ALLEN GOLDMEIER
Age: 68
Oyster Bay, New YorkSTEVEN GOLDMEIER
Age: 64
Plainview, New YorkE.D.N.Y. Docket No. 21-CR- 399 (JMW)
Leader of Fake Cryptocurrency Investment Scheme Pleads Guilty to FraudRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that MICHAEL ACKERMAN, who orchestrated a multimillion-dollar cryptocurrency investment scheme, pled guilty to wire fraud today before United States Chief District Judge Laura Taylor Swain. ACKERMAN admitted to causing victim losses of more than $30 million.
U.S. Attorney Audrey Strauss said: “As he admitted today, Michael Ackerman raised millions of dollars in investments for his fake cryptocurrency scheme by falsely touting monthly returns of over 15 percent, falsifying documents to con investors into thinking his fund had a balance of over $315 million, and spending millions in investor funds on himself. Now Ackerman awaits sentencing for his crime.”
According to the Indictment and the underlying complaint filed in this case, as well as prior court filings and recent court proceedings:
In or about 2017, MICHAEL ACKERMAN and others started a purported cryptocurrency “investment” fund (the “Fund”) and recruited hundreds of individual investors into the Fund. The Fund was an investment club that allowed its members to contribute U.S. dollars, which the investors were told would then be used to invest and trade in Bitcoin and other cryptocurrencies. ACKERMAN was held out as the Fund’s chief trading officer and personally controlled the Fund’s primary trading account on an online cryptocurrency exchange. Based on figures provided by ACKERMAN, the Fund claimed that its proprietary trading algorithm was earning approximately 15 percent in profit for investors each month.
By December 2019, ACKERMAN claimed that the Fund investment pool – which consisted of approximately $37 million in original investor contributions – had grown in value to approximately $315 million. ACKERMAN’s claims about the performance of the Fund were communicated to existing Fund investors as well as prospective investors, some of whom were induced to invest in the Fund in the hopes of enjoying high rates of return.
The rates of return that ACKERMAN reported on the Fund investments, and its overall Fund balance, were false. In reality, the primary trading account used by ACKERMAN had an account balance that never exceeded approximately $5 million. To support his false claim that the Fund’s investments were earning 15 percent in monthly profits and had grown to approximately $315 million, ACKERMAN doctored numerous account screenshots that he knew were being used to communicate with Fund investors.
Instead of investing and trading on behalf of the Fund, ACKERMAN stole at least $9 million in investor contributions and used them to bankroll a lavish lifestyle that included his purchase of multiple pieces of real estate, hundreds of thousands of dollars of Tiffany jewelry, vehicles, travel, and personal security services.
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ACKERMAN, 52, of Sheffield Lake, Ohio, pled guilty today to one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Under the terms of his plea, ACKERMAN agreed to make restitution of at least $30,667,738.79. ACKERMAN also agreed to forfeiture of $36,268,515, including the millions of dollars in cash, real estate, and jewelry that were fraudulently obtained from victims or bought with victim funds.
ACKERMAN is scheduled to be sentenced by Judge Swain on January 5, 2022, at 2:00 p.m.
Ms. Strauss praised the outstanding work of special agents from Homeland Security Investigations’ El Dorado Task Force and the Federal Bureau of Investigation in Tampa, and thanked the attorneys and investigators at the Commodity Futures Trading Commission and the Securities and Exchange Commission whose expertise and diligence were integral to the development of this investigation and today’s guilty plea.
The prosecution of this case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Jessica Greenwood, Sheb Swett, and Kiersten Fletcher are in charge of the prosecution.
International money launderer sentenced to federal prison in cyber-crime conspiracies responsible for intended loss of nearly $60 millionRead the Press Release
SAVANNAH, GA: A Canadian man who conspired to launder tens of millions of dollars stolen in various wire and bank fraud schemes – including a massive online banking theft by North Korean cyber criminals – has been sentenced to nearly 12 years in federal prison.
Ghaleb Alaumary, 36, of Mississauga, Ontario, was sentenced to a total of 140 months in prison after pleading guilty to two counts of Conspiracy to Commit Money Laundering, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker also ordered Alaumary to pay $30,703,946.56 in restitution to victims and to serve three years of supervised release after completion of his prison sentence. There is no parole in the federal system.
“This defendant served as an integral conduit in a network of cybercriminals who siphoned tens of millions of dollars from multiple entities and institutions across the globe,” said Acting U.S. Attorney Estes. “He laundered money for a rogue nation and some of the world’s worst cybercriminals, and he managed a team of coconspirators who helped to line the pockets and digital wallets of thieves. But U.S. law enforcement, working in conjunction with its partners throughout the world, will bring to justice fraudsters who think they can hide behind a computer screen.”
As described in unsealed court documents and proceedings, Alaumary and his coconspirators used business email compromise schemes, ATM cash-outs, and bank cyber-heists to steal money from victims and then launder the money through bank accounts and digital currency. He previously pled guilty in the Southern District of Georgia in two money laundering cases.
In the first case, which was filed and investigated in the Southern District of Georgia, Alaumary conspired with others who sent fraudulent “spoofed” emails to a university in Canada in 2017 to make it appear the emails were from a construction company requesting payment for a major building project. The university, believing it was paying the construction company, wired $11.8 million CAD (approximately $9.4 million USD) to a bank account controlled by Alaumary and his coconspirators. Alaumary then arranged with individuals in the U.S. and elsewhere to launder the stolen funds through various financial institutions.
Weeks later, Alaumary arranged for a coconspirator in the United States to make several trips to Texas to impersonate wealthy bank customers in a scheme to steal hundreds of thousands of dollars from victims’ accounts using the victims’ stolen personally identifiable information. A telephone call with a coconspirator discussing the fraud took place in Savannah.
In the second case, which was transferred to the Southern District of Georgia from the Central District of California for his guilty plea and sentencing, Alaumary recruited and organized individuals to withdraw stolen cash from ATMs; he provided bank accounts that received funds from bank cyber-heists and fraud schemes; and, once the ill-gotten funds were in accounts he controlled, Alaumary further laundered the funds through wire transfers, cash withdrawals, and by exchanging the funds for cryptocurrency. The funds included those from a 2019 North Korean-perpetrated cyber-heist of a Maltese bank. Other victims of Alaumary’s crimes included banks headquartered in India, Pakistan, and Malta, as well as companies in the U.S. and U.K., individuals in the U.S., and a professional soccer club in the U.K.
“International money launderers provide critical services to cybercriminals, helping hackers and fraudsters to avoid detection and hide their illicit profits,” said Assistant Attorney General Kenneth A. Polite Jr. for the Justice Department’s Criminal Division. “Small and large companies, a university, banks, and others lost tens of millions of dollars in this scheme. Alaumary’s sentence today reflects how seriously the Department of Justice considers the critical role that money launderers play in global cybercrime.”
“The sentencing of the defendant in this case speaks to the value of investigative collaboration across borders,” said U.S. Secret Service Atlanta Field Office SAIC Steven R. Baisel. “In spite of the complicated, international nature of this criminal enterprise, the defendant and his co-conspirators were still brought to justice.”
“This case is an example of our relentless determination to hold criminals accountable no matter how sophisticated their crimes may seem,” said Phil Wislar, Acting Special Agent in Charge of FBI Atlanta. “The arrest and sentencing of cyber criminals like Alaumary, who feel safe hiding behind a computer screen, are only possible through persistent investigative efforts of the FBI and our close collaboration with our U.S. and international partners.”
Alaumary is the fourth defendant in this investigation sentenced in the Southern District of Georgia. Uchechi Ohanaka, Kelvin Desangles, and Jennal Aziz previously pled guilty in federal court to fraud felonies and were sentenced to terms totaling more than 200 months in prison.
The cases were investigated by the U.S. Secret Service Savannah Resident Office with assistance from the Los Angeles Field Office and the Global Investigative Operations Center, the FBI, and the Royal Canadian Mounted Police, and prosecuted by the Criminal Division of the U.S. Attorney’s Office for the Southern District of Georgia, Senior Trial Attorney Mona Sedky of the Computer Crime and Intellectual Property Section of the U.S. Department of Justice, and Assistant U.S. Attorney Khaldoun Shobaki of the U.S. Attorney’s Office for the Central District of California.
International Money Launderer Sentenced to over 11 Years in Federal Prison for Laundering Millions from Cyber Crime SchemesRead the Press Release
SAVANNAH, Georgia – A Canadian man was sentenced today to 140 months in federal prison for conspiring to launder tens of millions of dollars stolen in various wire and bank fraud schemes, including a massive online banking theft by North Korean cyber criminals that is part of a pending case in Los Angeles.
Ghaleb Alaumary, 36, of Mississauga, Ontario, who is a dual Canadian and U.S. citizen, was sentenced after pleading guilty to two counts of conspiracy to commit money laundering in two cases, one of which was filed in Los Angeles. As part of his sentence that covers both cases, Alaumary was ordered to pay more than $30 million in restitution to victims.
According to court documents, Alaumary and his coconspirators used business email compromise schemes, ATM cash-outs, and bank cyber-heists to steal money from victims and then launder the money through bank accounts and digital currency.
In the Los Angeles case that was transferred to the Southern District of Georgia for his guilty plea and sentencing, Alaumary recruited and organized individuals to withdraw stolen cash from ATMs; he provided bank accounts that received funds from bank cyber-heists and fraud schemes; and, once the ill-gotten funds were in accounts he controlled, Alaumary further laundered the funds through wire transfers, cash withdrawals, and by exchanging the funds for cryptocurrency. The funds included those from North Korean-perpetrated crimes, including the 2019 cyber-heist of a Maltese bank and the 2018 ATM cash-out theft from BankIslami in Pakistan. Other victims of Alaumary’s crimes included a bank headquartered in India, as well as companies in the U.S. and U.K., individuals in the U.S., and a professional soccer club in the United Kingdom.
In the case filed by the Southern District of Georgia, Alaumary conspired with others who sent fraudulent “spoofed” emails to a university in Canada in 2017 to make it appear the emails were from a construction company requesting payment for a major building project. The university, believing it was paying the construction company, wired 11.8 million Canadian dollars (approximately 9.4 million U.S. dollars) to a bank account controlled by Alaumary and his coconspirators. Alaumary then arranged with individuals in the U.S. and elsewhere to launder the stolen funds through various financial institutions. Weeks later, Alaumary arranged for a coconspirator in the United States to make several trips to Texas to impersonate wealthy bank customers in a scheme to steal hundreds of thousands of dollars from victims’ accounts using the victims’ stolen personally identifiable information.
The investigations of Alaumary were conducted by the United States Secret Service’s Savannah Field Office, the FBI’s Los Angeles Field Office, and the United States Secret Service’s Los Angeles Field Office and Global Investigative Operations Center. The FBI’s Criminal Investigative Division also provided substantial assistance.
The Los Angeles case was handled by Assistant U.S. Attorney Khaldoun Shobaki of the Cyber and Intellectual Property Crimes Section.
International Money Launderer Sentenced to More Than 11 Years in Prison for Laundering Millions of Dollars in Cyber Crime SchemesRead the Press Release
A dual Canadian and U.S. national was sentenced today to 140 months in federal prison for conspiring to launder tens of millions of dollars stolen in various wire and bank fraud schemes – including a massive online banking theft by North Korean cyber criminals.
Ghaleb Alaumary, 36, of Mississauga, Ontario, was sentenced after pleading guilty to two counts of conspiracy to commit money laundering. As part of his sentence, Alaumary is also required to pay more than $30 million in restitution to victims and serve three years of supervised release after completion of his prison sentence.
“International money launderers provide critical services to cybercriminals, helping hackers and fraudsters to avoid detection and hide their illicit profits,” said Assistant Attorney General Kenneth A. Polite Jr. for the Justice Department’s Criminal Division. “Small and large companies, a university, banks and others lost tens of millions of dollars in this scheme. Alaumary’s sentence today reflects how seriously the Department of Justice considers the critical role that money launderers play in global cybercrime.”
“This defendant served as an integral conduit in a network of cybercriminals who siphoned tens of millions of dollars from multiple entities and institutions across the globe,” said Acting U.S. Attorney David H. Estes for the Southern District of Georgia. “He laundered money for a rogue nation and some of the world’s worst cybercriminals, and he managed a team of co-conspirators who helped to line the pockets and digital wallets of thieves. But U.S. law enforcement, working in conjunction with its partners throughout the world, will bring to justice fraudsters who think they can hide behind a computer screen.”
“The sentencing of the defendant in this case speaks to the value of investigative collaboration across borders,” said Special Agent in Charge Steven R. Baisel of the U.S. Secret Service’s Atlanta Field Office. “In spite of the complicated, international nature of this criminal enterprise, the defendant and his co-conspirators were still brought to justice.”
“The defendant in today's case laundered millions of dollars in losses from companies, universities and banks,” said Assistant Director Calvin A. Shivers of the FBI's Criminal Investigative Division. “Today's sentence demonstrates that cybercriminals who launder illegitimate profits can't evade detection from the FBI and our law enforcement partners.”
“This case is an example of our relentless determination to hold criminals accountable no matter how sophisticated their crimes may seem,” said Acting Special Agent in Charge Phil Wislar of the FBI’s Atlanta Field Office. “The arrest and sentencing of cyber criminals like Alaumary, who feel safe hiding behind a computer screen, are only possible through persistent investigative efforts of the FBI and our close collaboration with our U.S. and international partners.”
According to court documents, Alaumary and his coconspirators used business email compromise schemes, ATM cash-outs and bank cyber-heists to steal money from victims and then launder the money through bank accounts and digital currency. He previously pleaded guilty in the Southern District of Georgia in two money laundering cases.
In the first case, which was filed and investigated in the Southern District of Georgia, Alaumary conspired with others who sent fraudulent “spoofed” emails to a university in Canada in 2017 to make it appear the emails were from a construction company requesting payment for a major building project. The university, believing it was paying the construction company, wired $11.8 million CAD (approximately $9.4 million USD) to a bank account controlled by Alaumary and his co-conspirators. Alaumary then arranged with individuals in the United States and elsewhere to launder the stolen funds through various financial institutions.
Weeks later, Alaumary arranged for a co-conspirator in the United States to make several trips to Texas to impersonate wealthy bank customers in a scheme to steal hundreds of thousands of dollars from victims’ accounts using the victims’ stolen personally identifiable information.
In the second case, which was transferred to the Southern District of Georgia from the Central District of California for his guilty plea and sentencing, Alaumary recruited and organized individuals to withdraw stolen cash from ATMs; he provided bank accounts that received funds from bank cyber-heists and fraud schemes; and, once the ill-gotten funds were in accounts he controlled, Alaumary further laundered the funds through wire transfers, cash withdrawals, and by exchanging the funds for cryptocurrency. The funds included those from a 2019 North Korean-perpetrated cyber-heist of a Maltese bank. Other victims of Alaumary’s crimes included banks headquartered in India, Pakistan and Malta, as well as companies in the United States and U.K., individuals in the United States and a professional soccer club in the U.K.
Alaumary is the fourth defendant in this investigation to plead guilty in federal court to fraud felonies and be sentenced in the Southern District of Georgia. In 2019, co-defendant Uchechi Ohanaka was sentenced to 125 months’ imprisonment followed by five years of supervised release; Jennal Aziz was sentenced to six months’ imprisonment followed by three years of supervised release; and Kelvin Desangles was sentenced to 57 months’ imprisonment followed by three years of supervised release.
The U.S. Secret Service investigated the case, with valuable assistance provided by its Global Investigative Operations Center, the FBI and the Royal Canadian Mounted Police.
Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section; the Criminal Division of the U.S. Attorney’s Office for the Southern District of Georgia; and Assistant U.S. Attorney Khaldoun Shobaki of the Central District of California prosecuted the case.
Inland Empire Man Who Worked at Group Homes and Mental Health Facilities Indicted on Series of Child Exploitation OffensesRead the Press Release
LOS ANGELES – A certified nursing assistant who worked at a Southern California group home for severely disabled patients was indicted today for multiple child exploitation crimes, including filming himself sexually abusing children at the group home facility.
A federal grand jury today charged Steve Jackson Rodriguez, 37, of Pomona, in a six-count indictment that includes four counts alleging he produced child pornography.
Rodriguez, who was arrested pursuant to a criminal complaint on August 25, is scheduled to be arraigned on the indictment on September 16. Following the arraignment in Los Angeles, the case will move to a federal judge in Riverside.
The indictment alleges Rodriguez produced child pornography with three minor victims, two of whom were severely disabled patients being housed at an Inland Empire group home that employed Rodriguez. One of the disabled victims was 8 years old when Rodriguez filmed the illegal sexual conduct.
The indictment charges Rodriguez with filming his sexual encounters with another minor victim, whom Rodriguez enticed into engaging in sex and lewd acts.
Special agents with Homeland Security Investigations are investigating this matter and have reason to believe that Rodriguez may have had illegal sexual conduct with other victims during his employment at group homes and psychiatric care facilities where he has worked as a certified nursing assistant. If you have any information about potential victims in this matter, please call the HSI tip line at (866) 347-2423.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of the charges in the indictment, Rodriguez would face a statutory maximum penalty of life in federal prison. He also would face a mandatory minimum sentence of 15 years in federal prison for each of the four counts alleging the production of child pornography.
The ongoing investigation in this case is being conducted by HSI as part of the Los Angeles Internet Crimes Against Children Task Force (ICAC). The investigation began in July when the National Center for Missing and Exploited Children provided information to ICAC.
Assistant United States Attorney Scott M. Lara of the Violent and Organized Crime Section is prosecuting this case.
Illinois woman admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Joanna Masias, of Cicero, Illinois, has admitted to attempting to smuggle suboxone into FCI Gilmer in Glenville, West Virginia, Acting U.S. Attorney Randolph J. Bernard announced.
Masias, 36, pled guilty to one count of “Attempt to Introduce a Prohibited Object (Narcotic).” Masias admitted to working with two inmates at the facility to attempt to smuggle suboxone into FCI Gilmer in April 2019.
Masias faces up to 20 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Prisons Special Investigative Services investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Home Health Agency Operator to Pay $17 Million to Resolve False Claims Act Kickback AllegationsRead the Press Release
NEWARK, N.J. – A home health agency (HHA) operator has agreed to pay $17 million to resolve allegations that it violated the False Claims Act by paying kickbacks through the purchase of two HHAs from a retirement home operator in Arizona, Acting U.S. Attorney Rachael A. Honig and Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division announced today.
Today’s settlement resolves allegations that BAYADA, BAYADA Home Health Care Inc., BAYADA Health LLC, and BAYADA Home Care (collectively, the BAYADA Companies), with headquarters in Moorestown, New Jersey, bought two HHAs to induce referrals to BAYADA of Medicare beneficiaries from other retirement communities operated by the seller throughout the United States. The government alleges that from Jan. 1, 2014, through Oct. 31, 2020, the BAYADA Companies submitted false claims for payment to Medicare for services provided to beneficiaries referred to BAYADA as a result of the kickback transaction.
“When healthcare providers make or induce referrals that are based on kickback arrangements rather than the best interests of patients, they risk patient harm, threaten the integrity of federal healthcare programs, and violate federal law,” Acting U.S. Attorney Honig said. “The U.S. Attorney’s Office for the District of New Jersey and our partners in the Department of Justice and at HHS-OIG will continue to pursue those who, like BAYADA, offer kickbacks for patient referrals, no matter the disguise those kickback arrangements might wear.”
“Parties who pay or receive kickbacks in order to induce referrals undermine the integrity of the health care system,” Acting Assistant Attorney General Boynton said. “This resolution reflects the department’s commitment to protect the right of federal health care program beneficiaries to receive medical care that is not influenced by the financial interests of their health care providers.”
The Anti-Kickback Statute prohibits parties who participate in federal health care programs from knowingly and willfully offering, paying or receiving any remuneration in order to induce the recommendation of any item for which payment is made in whole or in part under a covered federal health care program. The prohibition extends to asset purchases that are intended to induce referrals.
The civil settlement includes the resolution of claims brought under the qui tam, or “whistleblower” provisions, of the False Claims Act by David Freedman, who was the former director of strategic growth for BAYADA between 2009 and 2016. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. As part of today’s resolution, Mr. Freedman will receive more than $3 million. The matter remains under seal as to allegations against entities other than the BAYADA Companies.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the District of New Jersey and the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, with assistance from the U.S. Department of Health and Human Services Office of Inspector General.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The government is represented by Assistant U.S. Attorney Daniel Meyler of the Health Care Fraud Unit in the District of New Jersey and Trial Attorney Samson Asiyanbi of the Civil Division.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
The qui tam case is captioned: United States ex rel. Freedman v. BAYADA Home Health Care, Inc., No. 17-cv-6267 (NLH) (D.N.J.).
Home Health Agency Operator BAYADA to Pay $17 Million to Resolve False Claims Act Allegations for Paying KickbackRead the Press Release
BAYADA, BAYADA Home Health Care Inc., BAYADA Health LLC and BAYADA Home Care (collectively, the BAYADA Companies), headquartered in Moorestown, New Jersey, have agreed to pay $17 million to resolve allegations that they violated the False Claims Act’s Anti-Kickback Statute by paying a kickback to a retirement home operator by purchasing two of its home health agencies (HHAs) located in Arizona.
The United States alleges that the BAYADA Companies bought the two HHAs to induce referrals to BAYADA of Medicare beneficiaries from retirement communities operated by the seller throughout the United States, and that from Jan. 1, 2014 through Oct. 31, 2020, the BAYADA Companies submitted false claims for payment to Medicare for services provided to beneficiaries referred to BAYADA as a result of the kickback transaction.
“Parties who pay or receive kickbacks in order to induce referrals undermine the integrity of the health care system,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “This resolution reflects the department’s commitment to protect the right of federal health care program beneficiaries to receive medical care that is not influenced by the financial interests of their health care providers.”
“When healthcare providers make or induce referrals that are based on kickback arrangements rather than the best interests of patients, they risk patient harm, threaten the integrity of federal healthcare programs and violate federal law,” said Acting U.S. Attorney Rachael A. Honig for the District of New Jersey. “The U.S. Attorney’s Office for the District of New Jersey and our partners in the Department of Justice and at the Department of Health and Human Services Office of Inspector General (HHS-OIG) will continue to pursue those who, like BAYADA, offer kickbacks for patient referrals, no matter the disguise those kickback arrangements might wear.”
The Anti-Kickback Statute prohibits parties who participate in federal health care programs from knowingly and willfully offering, paying or receiving any remuneration in order to induce the recommendation of any item for which payment is made in whole or in part under a covered federal health care program. The prohibition extends to asset purchases that are intended to induce referrals.
The settlement with the BAYADA Companies includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by David Freedman, who was the former director of strategic growth for BAYADA between 2009 and 2016. Under those provisions, a private party can file a civil action on behalf of the United States and receive a portion of any recovery. As part of today’s resolution, Mr. Freedman will receive more than $3 million. The matter remains under seal as to allegations against entities other than the BAYADA Companies.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of New Jersey, with assistance from the HHS-OIG.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to HHS at 800-HHS-TIPS (800-447-8477).
The matter was handled by Trial Attorney Samson Asiyanbi of the Fraud Section and Assistant U.S. Attorney Daniel Meyler for the District of New Jersey.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Hattiesburg Felon Sentenced to 15 Years in Federal Prison for Multiple Firearms OffensesRead the Press Release
Hattiesburg, Miss. – A Hattiesburg man was sentenced today to serve 180 months in federal prison for being a felon in possession of multiple firearms and possessing firearms in furtherance of a drug trafficking crime, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad Byerley with the Drug Enforcement Administration (DEA).
Sternell Christopher Johnson, also known as “KayNine”, age 26, pled guilty on April 8, 2021 to possessing multiple firearms in furtherance of a drug trafficking crime after being a previously convicted felon.
According to court documents, on August 8, 2020, Johnson and others led the Lamar County Sheriff’s Office on a motor vehicle chase down Highway 98 in Hattiesburg before Johnson’s vehicle crashed and Johnson fled on foot. Three firearms were recovered from the vehicle, as well as several large bags of marijuana weighing approximately 1.5 kilograms. A review of Johnson’s social media accounts in the days leading up to the chase showed that Johnson was in possession of firearms from the vehicle as well as the marijuana.
Additionally, based on admissions made by Johnson in a video interview uploaded to YouTube, Johnson was held accountable for additional firearms that appeared in various music videos made featuring Johnson, resulting in an additional enhancement to his sentence. Overall, Johnson was held accountable for possessing more than 25 firearms.
“The Drug Enforcement Administration is proud to partner with the Lamar County Sheriff’s Office and the Hattiesburg Police Department to help combat the illicit narcotics activities and violent crimes occurring in the community. The key to having a safe community is strong partnerships and interagency cooperation amongst all law enforcement agencies. I feel we have that in Hattiesburg,” stated DEA Assistant Special Agent in Charge Kevin J. Gaddy.
The Drug Enforcement Administration, Lamar County Sheriff’s Office, and Hattiesburg Police Department investigated the case.
Assistant U.S. Attorney Andrew W. Eichner prosecuted the case.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Harrisburg Man Charged with Unlawfully Exchanging $1.8 Million in Federal Nutrition Assistance Benefits for CashRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jimmy Tran, age 40, of Harrisburg, Pennsylvania, was charged in a criminal information with the unauthorized use, acquisition, and possession of benefits of the U.S. Department of Agriculture’s Supplemental Nutrition Assistance Program (SNAP).
According to Acting United States Attorney Bruce D. Brandler, the information alleges that Tran, who owned and operated Asia Market in Harrisburg, unlawfully provided cash in exchange for SNAP benefits between January 2017 and August 2020. The information further alleges that the value of the SNAP benefits exceeded $1.8 million.
The case was investigated by the U.S. Department of Agriculture, Office of Inspector General, and the Federal Bureau of Investigation. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Grosse Pointe Park Man Pleads Guilty to Scheme to Defraud and Steal Funds from Religious CharityRead the Press Release
A Grosse Pointe Park resident pleaded guilty today to one count of wire fraud in connection with obtaining by fraud, embezzling, and stealing the funds of the Holy Cross organization, a large charitable organization based in Clinton, Michigan, that receives federal funds, announced Acting United States Attorney Saima S. Mohsin.
Joining in the announcement was Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Detroit Division.
Pleading guilty before U.S. District Judge Bernard Friedman was John R. Lynch, 56.
According to court records, in March 2012 Lynch became the CFO of the Holy Cross organization, and in January 2015 he became its CEO. Holy Cross was established in 1948 when Boysville of Michigan was incorporated under the auspices of the Roman Catholic Archdiocese of Detroit. Boysville of Michigan later became Holy Cross Children’s Services, which is now known as Holy Cross Services. The Holy Cross organization provides welfare services to disadvantaged children and adolescents, behavioral health services to adolescents and adults, and a number of support services to the homeless. Holy Cross services are provided mostly to individuals in Southeast and Mid-Michigan. The Holy Cross organization also includes the Samaritan Center, a large community resource center that provides healthcare, employment services, and other forms of support to residents of Detroit’s east side.
During today’s plea hearing, Lynch admitted that when he was Holy Cross’s CEO, he used Holy Cross funds to pay for repairs to his own cars, install a new roof on his house, pay down his personal mortgage balance, and make payments on a personal American Express account. Lynch also used Holy Cross funds to pay his own consulting company and to pay another company hired to provide security services at the Samaritan Center, a company ostensibly controlled by a relative but actually controlled by him. Lynch attempted to justify some of these payments with bogus invoices. In addition, Lynch used his corporate Holy Cross American Express card to pay for goods and services of a personal nature.
A sentencing date has been set for January 18, 2022 at 1:30 pm..
Holy Cross received federal funds under the National School Lunch Program and the School Breakfast Program. It also received federal funds under Title IV-E of the Social Security Act, which pays for foster care and provides adoption assistance and guardianship assistance.
The case is being prosecuted by Assistant United States Attorney Stephen Hiyama. The investigation was conducted by the Federal Bureau of Investigation.
Glendale Man Agrees to Plead Guilty in Federal Hate Crime Case for Attacking Family-Owned Restaurant and Making Death ThreatsRead the Press Release
LOS ANGELES – A Glendale man has agreed to plead guilty to federal criminal charges for attacking five victims at a family-owned Turkish restaurant last year while shouting anti-Turkish slurs, hurling chairs at the victims and threatening to kill them, the Justice Department announced today.
William Stepanyan, 23, has agreed to plead to one count of conspiracy and one hate crime charge, according to a plea agreement filed Monday in United States District Court. He is expected to enter a guilty plea to the felony charges in the coming weeks.
Turkey and Armenia are two neighboring countries in the Caucasus region of Asia that have historically experienced significant conflict, part of which has stemmed from Turkey’s support of Azerbaijan in its border conflict with Armenia. When a new war broke out between Armenian and Azeri military forces in September 2020, tensions in Turkish and Armenian communities escalated worldwide, including in the United States. Numerous protests and counter-protests, pitting individuals of Armenian and Turkish descent against one another, took place in Los Angeles County.
According to his plea agreement, on November 4, 2020, Stepanyan, who is Armenian-American, sent a text message saying that he planned to go “hunting for [T]urks.” Later that day, Stepanyan met with his co-defendant Harutyun Harry Chalikyan, 24, of Tujunga, and other Armenian-Americans to protest what they considered to be Turkish aggression against Armenians, express their contempt for Turkey and show their support for Armenia.
Stepanyan, Chalikyan and other Armenian-Americans then drove to the family-owned restaurant, where Stepanyan and Chalikyan stormed into the restaurant and attacked the victims inside. Stepanyan and Chalikyan, who were both wearing masks during the attack, flung chairs at the victims while shouting derogatory slurs about Turkish people. Four of the five victims were of Turkish descent. At least one of the defendants threatened to kill the victims, shouting: “We came to kill you! We will kill you!”
During the attack, multiple victims were injured, including one individual who lost feeling in their legs and collapsed multiple times due to the injury. Also, during the attack, Stepanyan ripped out the restaurant’s computer terminals and stole a victim’s iPhone.
The restaurant suffered at least $20,000 in damage and had to close temporarily, resulting in thousands of dollars in lost revenue.
After he enters the guilty pleas to the two felony offenses, Stepanyan will face a statutory maximum sentence of 15 years in federal prison.
Chalikyan is scheduled to go on trial in this matter on October 26. He has pleaded not guilty to one count of conspiracy and five hate crime charges.
The FBI conducted the investigation in this matter and received substantial assistance from the Beverly Hills Police Department.
Assistant U.S. Attorney Lindsey Greer Dotson of the Public Corruption and Civil Rights Section, and Trial Attorney Michael J. Songer of the Justice Department’s Civil Rights Division are prosecuting the case.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Garner Man Sentenced to 156 Months for Human TraffickingRead the Press Release
RALEIGH, N.C. – Antoine Lamar Wallace, of Garner, was sentenced today to 156 months in prison for sex trafficking of a minor and aiding and abetting.
According to court records and evidence presented at the trial of co-defendant, Jonathan Lynn Jenkins, Wallace and Jenkins prostituted many women between November 2014 and October 2015, including minors. The victims were young, vulnerable, and often struggling to survive. After luring the victims with promises of food, shelter, and a better life, Wallace and Jenkins manipulated and controlled the victims’ lives, isolating them, abusing them, and keeping all money the victims earned.
Wallace and Jenkins were arrested in January 2016. Jenkins, the ringleader of the two, was convicted of multiple human trafficking charges at a federal trial in February. He was sentenced to three consecutive life sentences.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Department of Homeland Security – Homeland Security Investigations, the Raleigh Police Department, the North Carolina State Bureau of Investigation, and the Johnston County Sheriff’s Office investigated the case. Assistant U.S. Attorney Lucy Brown and former Assistant U.S. Attorney Erin Blondel prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:18-CR-451-D.
Former Police Chief Indicted for Possessing Child Pornography While Awaiting Start of Prior Federal Prison Sentence for Distribution of Child PornographyRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that Alexander P. Bebris (age: 52) of Denmark, Wisconsin, was indicted by a federal grand jury in Milwaukee for possessing child pornography.
On November 13, 2020, Bebris, a former career law enforcement officer, was sentenced to 60 months of imprisonment following a conviction in the Eastern District of Wisconsin for distribution of child pornography. He was allowed to remain free pending the outcome of his appeal. On July 15, 2021, the Seventh Circuit Court of Appeals denied Bebris’ appeal and he was ordered to report to federal prison on August 24, 2021.
According to court records, on August 20, 2021, Calumet and Brown County law enforcement executed a search warrant at Bebris’ residence, found Bebris in possession of child pornography, and arrested him. The indictment alleges that Bebris possessed child pornography as a repeat offender and that he did so in violation of the terms of his release.
If convicted, Bebris faces a mandatory minimum sentence of 10 years and up to 30 years of imprisonment. Further, any sentence imposed must be served consecutive to the 60-month sentence already imposed by the court.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood, marshals, federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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For further information contact:
Public Information Officer Kenneth Gales
414-297-1700
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Former Member of New Bedford Latin Kings Chapter Pleads Guilty to Drug Trafficking and Manufacturing ChargesRead the Press Release
BOSTON – A former member of the New Bedford Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) pleaded guilty today to drug charges.
Tanairy Ruiz, a/k/a “Queen Tanairy,” 34, pleaded guilty to conspiracy to manufacture, distribute and possess with intent to distribute cocaine and cocaine base. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Jan. 5, 2022.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
Ruiz admitted to conspiring with other Latin Kings members to manufacture and distribute cocaine base throughout the City of New Bedford. Ruiz resided in one of the many “trap houses” or multi-unit apartment buildings in New Bedford that were controlled by the Latin Kings. Ruiz’s apartment was used as a location where cocaine was “cooked” or manufactured into cocaine base.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against dozens of leaders, members and associates of the Latin Kings. Ruiz is the 51st defendant to plead guilty in the case.
The charge of conspiracy to manufacture, distribute and possess with intent to distribute cocaine and cocaine base provides for a sentence of up to 20 years in prison, a minimum of three years and up to life of supervised release and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Mendell’s Criminal Division are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Ericsson Employee Charged for Role in Foreign Bribery SchemeRead the Press Release
A federal indictment was unsealed today in the Southern District of New York charging a former employee of the Swedish multinational telecommunications company Telefonaktiebolaget LM Ericsson (“Ericsson” or “the Company”) for his alleged role in a scheme to pay approximately $2.1 million in bribes to high-level government officials in the Republic of Djibouti and conspiring to launder funds to promote the scheme. The defendant remains at large.
According to court documents, Afework “Affe” Bereket, 53, a dual citizen of Ethiopia and Sweden, allegedly engaged in the scheme between 2010 and January 2014. During that time, Bereket served as the account manager for the Horn of Africa, a region that included Djibouti, while on a long-term assignment for Ericsson in Africa. According to the indictment, Bereket participated in a scheme to bribe two high-ranking officials in Djibouti’s executive branch and a high-level executive at Djibouti’s state-owned telecommunications company to obtain a contract with the state-owned telecommunications company valued at approximately €20.3 million. To effectuate the bribery scheme, Bereket and others caused an Ericsson subsidiary to enter into a sham contract with a consulting company and approve fake invoices to conceal the bribe payments. Bereket and others also completed a draft due diligence report that failed to disclose the spousal relationship between the owner of the consulting company and one of the high-ranking government officials who was bribed. To promote the bribery scheme, Bereket caused Ericsson to transfer the funds to and through bank accounts in the United States.
On Dec. 6, 2019, Ericsson entered into a deferred prosecution agreement with the Department of Justice in connection with a criminal information filed in the U.S. District Court for the Southern District of New York charging the Company with conspiracies to violate the anti-bribery, books and records, and internal controls provisions of the Foreign Corrupt Practices Act (FCPA). An Ericsson subsidiary, Ericsson Egypt Ltd, pleaded guilty on the same day to a one-count criminal information charging it with conspiracy to violate the anti-bribery provisions of the FCPA. Pursuant to its agreement with the department, Ericsson paid a total penalty of over $520 million.
Bereket is charged with one count of conspiracy to violate the FCPA and one count of conspiracy to commit money laundering. If convicted of both counts, Bereket faces a maximum penalty of 25 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“Bereket allegedly used the U.S. financial system to pay bribes to high-level government officials in Djibouti to ensure that Swedish telecom giant Ericsson won a multimillion-dollar government contract,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Today’s unsealed charges demonstrate the department’s commitment to hold individuals accountable for violations of the FCPA and to ensure that business is won or lost on merit, not the amount of bribes a company’s employees and agents are willing to pay.”
“As alleged, Afework Bereket conspired in a corrupt scheme to pay millions of dollars in bribes to two Djibouti government officials and an official of a state-owned telecom company to win a contract for Ericsson valued at more than €20 million,” said U.S. Attorney Audrey Strauss for the Southern District of New York. “To disguise the scheme, Bereket allegedly engaged in financial sleight-of-hand involving a sham consulting contract, a false due-diligence report, and fake invoices. The alleged criminal scheme has been exposed, and Affe Bereket is now charged in our district with serious federal crimes.”
“Our global economy should be one free from corrupt practices,” said Acting Special Agent in Charge Darrell J. Waldon of the IRS-Criminal Investigation’s (IRS-CI) Washington, D.C. Field Office. “The indictment unsealed today reflects the veracity in which IRS-CI will investigate those who engage in bribery to receive their business. Together with our partners at the Department of Justice, we will continue our efforts to ensure fair competition for companies around the world.”
Assistant Chief Andrew Gentin and Trial Attorneys Michael Culhane Harper and James Mandolfo of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys David Abramowicz and Juliana Murray of the U.S. Attorney’s Office for the Southern District of New York are prosecuting the case. The Justice Department’s Office of International Affairs provided investigative assistance.
The Fraud Section has lead responsibility for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Ericsson Employee Charged for Role in Foreign Bribery SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York (“SDNY”), Kenneth A. Polite Jr., the Assistant Attorney General for the Criminal Division of the Department of Justice (“DOJ”), and Darrell J. Waldon, the Acting Special Agent in Charge of the Washington DC Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the unsealing of an indictment charging AFEWORK BEREKET, a/k/a “Affe Bereket,” with conspiring to violate the Foreign Corrupt Practices Act (“FCPA”) and to commit money laundering, in connection with his role in a criminal scheme to bribe foreign government officials perpetrated by Telefonaktiebolaget LM Ericsson (“LM Ericsson”), a multinational telecommunications company headquartered in Sweden, and its subsidiary Ericsson Egypt Ltd. (“Ericsson Egypt” and, collectively with LM Ericsson, “Ericsson”). BEREKET remains at large.
U.S. Attorney Audrey Strauss said: “As alleged, Afework Bereket conspired in a corrupt scheme to pay millions of dollars in bribes to two Djibouti government officials and an official of a state-owned telecom company to win a contract for Ericsson valued at more than €20 million. To disguise the scheme, Bereket allegedly engaged in financial sleight-of-hand involving a sham consulting contract, a false due-diligence report, and fake invoices. The alleged criminal scheme has been exposed, and Affe Bereket is now charged in our District with serious federal crimes.”
Assistant Attorney General Kenneth A. Polite Jr. said: “Bereket allegedly used the U.S. financial system to pay bribes to high-level government officials in Djibouti to ensure that Swedish telecom giant Ericsson won a multimillion-dollar government contract. Today’s unsealed charges demonstrate the department’s commitment to hold individuals accountable for violations of the FCPA and to ensure that business is won or lost on merit, not the amount of bribes a company’s employees and agents are willing to pay.”
IRS-CI Acting SAC Darrell J. Waldon said: “Our global economy should be one free from corrupt practices. The indictment unsealed today, reflects the veracity in which IRS-CI will investigate those who engage in bribery to receive their business. Together with our partners at the Department of Justice, we will continue our efforts to ensure fair competition for companies around the world.
According to allegations in the Indictment, which was unsealed today in Manhattan federal court[1]:
BEREKET, while working for Ericsson, bribed foreign officials in Djibouti in exchange for business with a state-owned telecommunications company there (“Telecom Company-1”). BEREKET was an Ericsson account manager responsible for the Horn of Africa, a region that included Djibouti, from approximately November 2010 until approximately July 2013. According to the indictment, BEREKET and co-conspirators engaged in a scheme to pay approximately $2.1 million in bribes to three foreign officials – two high-ranking foreign officials in the executive branch of Djibouti’s government, and a high-level executive at Telecom Company-1 – in order to help Ericsson obtain and retain a €20,300,000 contract with Telecom Company-1. BEREKET and co-conspirators disguised the bribes as payments to a consulting company linked to one of the foreign officials being bribed. To do so, BEREKET and co-conspirators entered into a sham contract with the consulting company, prepared a false due-diligence report, and caused an Ericsson entity to approve fake invoices. BEREKET discussed the bribery scheme in multiple communications with co-conspirators. In one email, he urged others to pay an invoice from the consulting company “ASAP,” explaining that “[e]verybody in the management of [Telecom Company-1] & in the ministry are waiting their part of the cake.”
* * *
AFEWORK BEREKET, 53, a dual citizen of Ethiopia and Sweden, has been charged in the indictment with one count of conspiring to violate the anti-bribery provision of the FCPA, which carries a maximum potential sentence of five years in prison, and one count of conspiring to commit money laundering, which carries a maximum potential sentence of 20 years in prison.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit and the FCPA Unit of the Fraud Section of DOJ’s Criminal Division. Assistant U.S. Attorneys David Abramowicz and Juliana N. Murray, together with Acting Assistant Chief Andrew Gentin and Trial Attorneys Michael Culhane Harper and James Mandolfo of the Criminal Division’s Fraud Section, are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former Elementary School Employee Charged with Producing Child Pornography Using Two StudentsRead the Press Release
OKLAHOMA CITY — Yesterday, GREG ALLEN HENKE, 40, of Oklahoma City, was charged with possession of child pornography, attempted coercion and enticement of a minor, and sexual exploitation of children, announced Acting U.S. Attorney Robert J. Troester.
On May 13, 2021, FBI agents arrested Henke in Oklahoma City after he met with an undercover agent to attempt to engage in sexual activities with children. He has been in federal custody since his arrest. Prior to his arrest, Henke was employed at Highland Park Elementary School in the Mid-Del school district.
On June 1, 2021, a federal grand jury returned an Indictment against Henke, charging him with attempted receipt of child pornography and attempted coercion and enticement of a minor. That Indictment alleged that on or about May 10, 2021, Henke knowingly attempted to receive child pornography using a means and facility of interstate and foreign commerce. The Indictment further alleged that, between April 1, 2021 and about May 13, 2021, Henke used a cell phone and the internet to attempt to persuade, induce, entice, and coerce a minor to engage in sexual activity.
Yesterday, a federal grand jury returned a Superseding Indictment against Henke. The Superseding Indictment added one charge of possession of material containing child pornography and two charges of production of child pornography to the charges of the original Indictment. Specifically, the Superseding Indictment alleges that between 2019 and 2021, Henke used two minor students at Highland Park Elementary School to engage in sexually explicit conduct. It is alleged that Henke used his cell phone to capture the sexually explicit conduct.
The FBI is seeking to identify potential additional victims. Anyone with additional information to report can call the FBI at (405) 290-7770.
This case is the result of an investigation by the Federal Bureau of Investigation - Oklahoma City Field Division. Assistant U.S. Attorney Bow Bottomly is prosecuting the case.
This case is part of Project Safe Childhood, a nationwide initiative by the Department of Justice (DOJ) to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the DOJ Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The public is reminded that these charges are merely allegations and that the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public records for more information.
Former CFO of Long Island Real Estate Company Sentenced to 60 Months in Prison for Multi-Million Dollar FraudRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Kwesi Bovell, the former chief financial officer (CFO) of The Mulholland Group, a real estate company in Manhasset (“Mulholland”), was sentenced by United States District Judge Joan M. Azrack to 60 months’ imprisonment and ordered to pay restitution of $3.45 million for embezzling millions of dollars from his employer over the course of three years.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“To fund a lifestyle of extravagance and opulence, the defendant plundered his employer’s company from the time he was hired until his fraud was discovered three years later, and with today’s sentence, he is punished for his avarice and betrayal,” stated Acting United States Attorney Kasulis. Ms. Kasulis thanked the FBI for its investigative work on the case.
According to court filings, Bovell began embezzling funds shortly after he was hired in 2015 to be the CFO of Mulholland. As CFO, Bovell had signature authority over numerous bank accounts of Mulholland and its subsidiaries. Over the next three years, Bovell fraudulently transferred over $3.5 million from Mulholland to Southgate Holdings, a company controlled by Bovell.
Bovell spent most of the stolen funds on luxury purchases for himself and others. Those expenses included a $66,000 ring, vacations, $500,000 to a woman with whom he was in a relationship, an additional $500,000 into a laundromat business operated, in part, by that woman, approximately $90,000 to another woman for whom he rented an apartment in Manhattan, $722,000 on a failed gym, Evolution Fitness, in Suffolk County, as well as purchases at Brooks Brothers, Cartier, Chanel and Gucci. According to Mulholland, at least $1.5 million remains unaccounted for.
The government’s case is handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor are in charge of the prosecution.
The Defendant:
KWESI BOVELL
Age: 36
Valley Stream, New YorkE.D.N.Y. Docket No. 18-571 (JMA)