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Tuesday 13 July 2021
Mental Health Therapist Pleads Guilty to Enticing MinorRead the Press Release
A Monticello woman, who enticed a minor to engage in sexual activity, pled guilty today in federal court in Cedar Rapids, Iowa.
Miranda Breeden, age 46, pled guilty to one count of enticement of a minor. At the plea hearing, Breeden admitted that between November 2019 and January 2020, she used a cell phone to entice an individual under the age of 18 years old to engage in an illegal sex act. Breeden admitted that based on the sexual activity that occurred, she could have been charged with sexual abuse in the third degree in Iowa state court.
A criminal complaint filed in August 2020 alleged that Breeden was a mental health therapist for a school in the Cedar Rapids area in the fall of 2019 through at least January 2020. During that time, Breeden counseled a 14-year old male and the two engaged in a sexual relationship. Investigators located multiple Facebook messages between Breeden and the 14-year old, wherein Breeden arranged to meet the child for sex. In December 2019, investigators determined that Breeden went to Theisen’s in Cedar Rapids and purchased a firearm for the 14-year old.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Breeden remains in custody of the United States Marshal. Breeden faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life, a $250,000 fine, and at least 5 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorneys Elizabeth Dupuich and Ashley Corkery and was investigated by the Cedar Rapids Police Department, the Linn County Sheriff’s Office, the Federal Bureau of Investigation’s Safe Streets Unit, and the Bureau of Alcohol, Tobacco, Firearms & Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-65. Follow us on Twitter @USAO_NDIA.
Member of Violent Gang from Detroit’s Eastside Sentenced to 210 Months in Federal PrisonRead the Press Release
DETROIT – A member of the violent eastside Detroit street gang, Smokecamp, a/k/a Original Paid Bosses (or OPB), was sentenced yesterday to 210 months in federal prison after having pleaded guilty to racketeering conspiracy and assault with a dangerous weapon, bringing the total number to 13 members of this gang having been convicted and sentenced, Acting United States Attorney Saima Mohsin announced.
Joining in the announcement were Keith Krolczyk, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Chief James White, Detroit Police Department, Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Detroit Division and Special Agent in Charge Keith Martin, US Drug Enforcement Administration, Detroit Division.
Sentenced was Tyree Williams, 27.
“These convictions and sentences demonstrate that by working together, federal, state and local law enforcement are systematically dismantling the street gangs that cause violent crime in our neighborhoods,” said Acting US Attorney Mohsin. “Detroit residents deserve to live in a community safe from violent crime.”
Acting Special Agent in Charge Krolczyk stated, “ATF’s highest priority is to remove violent criminals from our streets. Our long standing partnerships in the law enforcement community continues to expand these efforts to disrupt and dismantle violent gangs and criminal organizations.”
According to court records, the gang operated on the east side of Detroit, specifically the area in and around Albion Street and Seven Mile, an area Smokecamp/OPB members refer to as “ABlock.” This area is within a larger territory on Detroit’s east side claimed by the Bloods street gang known as the “Red Zone.” The gang has modified its name multiple times throughout the years going from “Runyon Boys” to “Original Paid Bosses” to “Paid Bosses Inc.” to “Smokecamp.”
In November, 2017, an indictment was returned which alleged that Smokecamp members were known to engage in robberies and extortion and that the gang made its money predominantly through the sale of narcotics, including cocaine, crack cocaine, heroin, marijuana, ecstacy, and other prescription pills. According to the indictment, the gang regularly sold these controlled substances on the “ABlock,” outside of vacant houses known as “trap houses,” and businesses in the area of Seven Mile and Albion. Additionally, between approximately 2014 – 2015, Smokecamp/OPB members regularly sold controlled substances from an apartment complex on East Seven Mile, which they branded the “Plaga,” sharing workers and firearms to distribute and protect their narcotics. However, this activity was not confined only to Detroit with some of their members traveling to Kentucky, West Virginia, and Ohio to sell their narcotics. The gang regularly engaged in acts of violence, including shootings and murder, in order to intimidate rival gangs and maintain control of their territory.
Through the lead efforts of the ATF and Detroit Police Department Gang Intelligence Unit, along with the efforts of the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Michigan Department of Corrections, investigators were able to identify the members of this particular gang while investigating a similar gang on Detroit’s westside and piece together the varied criminal misconduct of the Smokecamp/OPB organization.
The following individuals have been convicted for their role in the gang and have received sentences ranging from 66 months to 384 months in federal prison:
• Korey Sanders, a/k/a “No Loan Corleon,” “Stax,” 29, of Detroit, pleaded guilty to RICO conspiracy, willful engagement in firearms business without a license and possession with intent to distribute a controlled substance; sentenced to 72 months in federal prison;
• Jerray Key, a/k/a “Chino,” “Dre,” 31, of Canton, pleaded guilty to RICO conspiracy and felon in possession of a firearm; sentenced to 72 months in federal prison’
• Deshawn Langston, a/k/a “Pook,” “Slips,” 30, of Detroit, pleaded guilty to RICO conspiracy and assault with a dangerous weapon in aid of racketeering, sentenced to 240 months in federal prison;
• Richard Langston, a/k/a “Dub,” “Rich,” “Blow,” 31, of Detroit, pleaded guilty to RICO conspiracy, sentenced to 170 months in federal prison;
• Hakeem Bunnell, a/k/a “LB Dub,” 27, of Detroit, pleaded guilty to RICO conspiracy, and assault with a dangerous weapon in aid of racketeering, sentenced to 348 months in federal prison;
• Keenan Nielbock, a/k/a “Dolla,” “Keno” 33, of Taylor, pleaded guilty to RICO conspiracy, sentenced to 84 months in federal prison;
• Caraun Key, a/k/a “Luch,” “Ron,” “Slick,” 29, of Detroit with RICO conspiracy, sentenced to 72 months in federal prison;
• Darryl Key, a/k/a “DB,” “Big Baby,” 30, of Detroit, with RICO conspiracy, sentenced to 66 months in federal prison;
• Tyree Williams, a/k/a “Snoop,” 27, of Detroit, Pleaded guilty to charges of RICO conspiracy and assault with a dangerous weapon; sentenced to 210 months in federal prison;
• Romale Gibson Jr., a/k/a “Santana,” 27, of Detroit, with RICO conspiracy, sentenced to 72 months in federal prison;
• Cary Dailey, a/k/a “Cease,” 31, of Detroit, with RICO conspiracy, sentenced to 72 months in federal prison;
• Antonio Langston, a/k/a “Tone,” 32, of Detroit, with RICO conspiracy, sentenced to 96 months in federal prison;
• Carlos Davis, a/k/a “Los,” “Loso,” 28, of Detroit with RICO conspiracy and assault with a dangerous weapon in aid of racketeering, sentenced to 180 months in federal prison.
Acting US Attorney Mohsin commended the hard work and dedication of all law enforcement agencies involved in the investigation of this case as well as Assistant United States Attorneys Jerome Gorgon, Andrew Yahkind and Blake Hatlem who prosecuted this case.
Member of Mississippi Band of Choctaw Indians Pleads Guilty to Murder and Aggravated Sexual Abuse of a ChildRead the Press Release
Jackson, Miss. – A Philadelphia, Mississippi man pled guilty today to federal charges of second degree murder and aggravated sexual abuse of a child, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Michelle A. Sutphin of the Federal Bureau of Investigation in Mississippi.
According to court documents and statements in open court, on June 8, 2019, Brett K. Hickman, 27, physically and sexually abused a two-year-old child who lived at his home in the Tucker Community of the Choctaw Indian Reservation which resulted in the death of the child.
In July 2019, a federal grand jury returned an indictment against Hickman, charging him with one count of murder and one count of aggravated sexual abuse of a child.
Hickman will be sentenced by U.S. District Judge David Bramlette III on November 2, 2021 in Natchez. He faces a potential maximum sentence of life in prison on the murder charge and not less than 30 years on the aggravated sexual abuse charge, along with a $250,000 fine on each count.
Acting U.S. Attorney LaMarca commended the work of the Special Agents with the FBI’s Jackson Division and the Criminal Investigative Division of the Choctaw Police Department, who investigated the case.
The case is being prosecuted by Assistant United States Attorney Kevin Payne.
Manhattan U.S. Attorney Settles Fraud Suit Against Spectrum Painting for False Statements About Disadvantaged Business Participation on Federal Construction ProjectsRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Brian Gallagher, Acting Special Agent-in-Charge, Northeastern Region, United States Department of Transportation Office of Inspector General (“USDOT-OIG”), Margaret Garnett, the Commissioner of the New York City Department of Investigation (“DOI”), and Carolyn Pokorny, Inspector General of the Metropolitan Transportation Authority (“MTA-OIG”), announced today that the United States has settled civil fraud claims against New York-area painting contractor SPECTRUM PAINTING CORP. (“SPECTRUM”). The settlement resolves the United States’ allegations that SPECTRUM fraudulently obtained payments on two federally funded construction projects by causing misrepresentations of compliance with Disadvantaged Business Enterprise (“DBE”) rules, which require participation of businesses owned by women and minorities. Specifically, the United States alleged that SPECTRUM caused the prime contractors on the projects to misrepresent that codefendant Tower Maintenance Corp. (“Tower”), a certified DBE, was solely performing work on the two projects, when in fact much of that work was performed by SPECTRUM, a non-DBE. As part of the settlement approved yesterday by U.S. District Judge Analisa Torres, SPECTRUM admits and accepts responsibility for conduct alleged in the Government’s amended complaint and agrees to pay $400,000 to the United States.
Manhattan U.S. Attorney Audrey Strauss said: “The Disadvantaged Business Enterprise program is intended to increase participation of minority- and women-owned businesses that historically have been disadvantaged in federal contracting. This settlement reflects this Office’s commitment to root out DBE fraud in federally funded contracts so that legitimate DBEs can compete fairly for public construction projects.”
USDOT-OIG Acting Special Agent-in-Charge Brian Gallagher said: “The Disadvantaged Business Enterprise (DBE) Program of the U.S. Department of Transportation is designed to create a level playing field for small, disadvantaged businesses to participate in federally-funded construction projects. We will hold accountable those who conspire to misrepresent their compliance with program requirements to obtain taxpayer supported contracts, thereby undermining the DBE program’s goal of expanding opportunities for small businesses.”
DOI Commissioner Margaret Garnett said: “This settlement rightly holds accountable a subcontractor that intentionally deceived the government and blatantly disregarded the regulations in place to ensure equal access by disadvantaged-owned businesses. Developing a fair and equal environment is how we do business in New York City and that is why contractors must follow the laws advancing participation by minority- and women-owned businesses. DOI thanks the U.S. Attorney’s Office for the Southern District of New York and the rest of our law enforcement partners on this matter for this successful result.”
MTA Inspector General Carolyn Pokorny said: “It is outrageous and against the law to use a minority- or women-owned business as a front to swindle precious taxpayer dollars from the Disadvantaged Business Enterprise program, which is meant to ensure an equal playing field for DBEs. This scheme was an affront to taxpayers, MTA riders, and the many honest DBEs that legitimately qualify for the federal program that these companies defrauded. I am proud to stand with our law enforcement partners to protect the integrity of this vital program.”
As alleged in the amended complaint filed in Manhattan federal court in August 2019, SPECTRUM performed steel painting work on two federally funded projects to renovate the Brooklyn Bridge and Queens Plaza. Contracts for both projects required codefendant Ahern Painting Contractors Co. (“Ahern”) to hire DBEs to perform a percentage of the work and to adhere to the DBE regulations. SPECTRUM was not a certified DBE, so SPECTRUM and Tower used Tower’s status as a DBE to take credit for work that was performed, managed, and supervised by SPECTRUM. Further, to conceal this scheme, SPECTRUM employees represented themselves as Tower employees in project documents. The case against Ahern was resolved in a settlement approved by Judge Torres in October 2019, and the case against Tower is ongoing.
As part of the settlement, SPECTRUM admits, acknowledges, and accepts responsibility for the following conduct alleged in the amended complaint:
- In or about March 2010, a manager at Spectrum (the “Spectrum Manager”) and a principal at Tower agreed that the two firms would work together on the Brooklyn Bridge Project. Pursuant to that agreement, the Spectrum Manager conducted a walk-through of the Brooklyn Bridge worksite with the Tower principal and an Ahern superintendent for the Brooklyn Bridge Project. The Spectrum Manager understood the he participated in the walk-through to assist Tower in preparing the bid Tower later submitted to Ahern for its anticipated work as a DBE subcontractor for the Brooklyn Bridge project.
- In May and June 2011, SPECTRUM and Tower memorialized two “consulting agreements” for work on the Brooklyn Bridge and the Queens Plaza Projects. Pursuant to those agreements, SPECTRUM and Tower agreed that SPECTRUM would “perform certain consulting services,” including “providing project management support,” and would furnish equipment to Tower for the two projects. The agreements further provided that SPECTRUM would receive 50% of all profits from the Tower DBE work on the projects.
- The key terms of the consulting agreements between Tower and SPECTRUM – including Tower’s agreement to pay SPECTRUM 50 percent of all of its profits from the two projects, or SPECTRUM’s agreement to furnish equipment to Tower for the projects – were not disclosed to Ahern, NYC-DOT, or MTA.
- Throughout the Brooklyn Bridge and Queens Plaza Projects, the SPECTRUM Manager managed and supervised the DBE work that Tower was retained to perform on each project, such as setting the work schedule, ordering materials for the work, hiring the foreman, inspecting the work performed, and coordinating payment for the work.
- The SPECTRUM Manager also hired other supervisors on the Brooklyn Bridge and Queens Plaza Projects. For example, the SPECTRUM Manager hired the superintendent for the DBE work assigned to Tower for the Brooklyn Bridge Project and the Queens Plaza Project (the “SPECTRUM Superintendent”). The SPECTRUM Manager also hired an individual to oversee health and safety issues related to the DBE work on the two projects (the “SPECTRUM Safety Supervisor”). Both the SPECTRUM Superintendent and the SPECTRUM Safety Supervisor were paid by SPECTRUM and not by Tower.
- The SPECTRUM Manager, SPECTRUM Superintendent, and SPECTRUM Safety Supervisor were all SPECTRUM employees. On the Brooklyn Bridge and Queens Plaza Projects, they identified themselves to others working on the projects as Tower employees, including by wearing Tower vests and security identification. In documents submitted to Ahern to obtain security clearances, the SPECTRUM Manager identified himself as a “Tower VP” or as a Tower employee.
Ms. Strauss praised the outstanding investigative work of the USDOT-OIG, DOI, and MTA-OIG.
This case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Mónica P. Folch, Li Yu, and David J. Kennedy are in charge of this case.
- In or about March 2010, a manager at Spectrum (the “Spectrum Manager”) and a principal at Tower agreed that the two firms would work together on the Brooklyn Bridge Project. Pursuant to that agreement, the Spectrum Manager conducted a walk-through of the Brooklyn Bridge worksite with the Tower principal and an Ahern superintendent for the Brooklyn Bridge Project. The Spectrum Manager understood the he participated in the walk-through to assist Tower in preparing the bid Tower later submitted to Ahern for its anticipated work as a DBE subcontractor for the Brooklyn Bridge project.
Manhattan U.S. Attorney Announces Kidnapping Conspiracy Charges Against an Iranian Intelligence Officer and Members of an Iranian Intelligence NetworkRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Mark J. Lesko, the Acting Assistant Attorney General for National Security, and William F. Sweeney Jr., Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of kidnapping conspiracy, sanctions violations conspiracy, bank and wire fraud conspiracy, and money laundering conspiracy charges against ALIREZA SHAVAROGHI FARAHANI, a/k/a “Vezarat Salimi,” a/k/a “Haj Ali,” MAHMOUD KHAZEIN, KIYA SADEGHI, and OMID NOORI, and sanctions violations conspiracy, bank and wire fraud conspiracy, money laundering conspiracy, and structuring charges against NILOUFAR BAHADORIFAR, a/k/a “Nellie Bahadorifar.” The charges are contained in a Superseding Indictment unsealed today in Manhattan federal court. The case is pending before U.S. District Judge Ronnie Abrams. BAHADORIFAR was arrested on July 1, 2021 in California on charges contained in an underlying indictment. BAHADORIFAR will be arraigned on the charges in the Superseding Indictment by Judge Abrams at a date and time to be set by the Court. FARAHANI, KHAZEIN, SADEGHI, and NOORI, all of whom are based in Iran, remain at large.
U.S. Attorney Audrey Strauss said: “As alleged, four of the defendants monitored and planned to kidnap a U.S. citizen of Iranian origin who has been critical of the regime’s autocracy, and to forcibly take their intended victim to Iran, where the victim’s fate would have been uncertain at best. Among this country’s most cherished freedoms is the right to speak one’s mind without fear of government reprisal. A U.S. citizen living in the United States must be able to advocate for human rights without being targeted by foreign intelligence operatives. Thanks to the FBI’s exposure of their alleged scheme, these defendants have failed to silence criticism by forcible abduction.”
Acting Assistant Attorney General Mark J. Lesko said: “Every person in the United States must be free from harassment, threats and physical harm by foreign powers. Through this indictment, we bring to light one such pernicious plot to harm an American citizen who was exercising their First Amendment rights, and we commit ourselves to bring the defendants to justice.”
FBI Assistant Director William F. Sweeney Jr. said: “This is not some far-fetched movie plot. We allege a group, backed by the Iranian government, conspired to kidnap a U.S. based journalist here on our soil and forcibly return her to Iran. Not on our watch. FBI special agents and analysts will continue to aggressively hunt for foreign operatives who attempt illegal action inside our borders or against our citizens. Working side-by-side with our international partners, the FBI’s reach is global. When we find you, you will be brought here and held accountable under U.S. law.”
According to the allegations contained in the Superseding Indictment, other court filings, and statements made during court proceedings:[1]
FARAHANI is an Iranian intelligence official who resides in Iran. KHAZEIN, SADEGHI, and NOORI are Iranian intelligence assets who also reside in Iran. Since at least June 2020, FARAHANI, and the intelligence network he manages – including KHAZEIN, SADEGHI, and NOORI – have plotted to kidnap a U.S. citizen of Iranian origin (“Victim-1”) from within the United States in furtherance of the Government of Iran’s efforts to silence Victim-1’s criticisms of the regime. Victim-1 is a journalist, author, and human rights activist, residing in Brooklyn, New York, who has publicized the Government of Iran’s human rights abuses.
Prior to the plot to kidnap Victim-1 on U.S. soil, the Government of Iran attempted to lure Victim-1 to a third country in order to capture Victim-1 for rendition to Iran. In approximately 2018, Iranian government officials attempted to induce relatives of Victim-1, who reside in Iran, to invite Victim-1 to travel to a third country for the apparent purpose of having Victim-1 arrested or detained and transported to Iran for imprisonment. Victim-1’s relatives did not accept the offer. Iranian intelligence services have previously lured other Iranian dissidents from France and from the United States for the purposes of capturing and imprisoning regime critics and have publicly claimed responsibility for these capture operations. An electronic device used by FARAHANI contains, among other things, a photo of Victim-1 alongside photos of two other individuals, both of whom were captured by Iranian intelligence, with one later executed and the other imprisoned in Iran, and a caption in Farsi stating, “Gradually the gathering gets bigger... Are you coming, or should we come for you?”
On multiple occasions in 2020 and 2021, as part of the plot to kidnap Victim-1, FARAHANI and his network procured the services of private investigators to surveil, photograph, and video record Victim-1 and Victim-1’s household members in Brooklyn. The extensive surveillance that FARAHANI’s network procured included requests for days’ worth of surveillance at Victim-1’s home and the surrounding area, videos and photographs of Victim-1’s family and associates, surveillance of Victim-1 outside Victim-1’s residence, and the installation of and access to a live high-definition video feed depicting Victim-1’s home. The network repeatedly insisted on high-quality photographs and video recordings of Victim-1 and Victim-1’s household members; a large volume of content; pictures of visitors and objects around the house; and depictions of Victim-1’s body language. The network procured the surveillance by misrepresenting their identities and the purpose of the surveillance to the investigators, and laundered money into the United States from Iran in order to pay for the surveillance, photos, and video recordings of Victim-1. SADEGHI acted as the network’s primary point of contact with the private investigators in the United States, and NOORI facilitated payment to the investigators in furtherance of the plot targeting Victim-1.
As part of the kidnapping plot, the FARAHANI-led intelligence network also researched methods of transporting Victim-1 out of the United States for rendition to Iran. SADEGHI, for example, researched a service offering military-style speedboats for self-operated maritime evacuation out of New York City, and maritime travel from New York to Venezuela, a country whose de facto government has friendly relations with Iran. KHAZEIN researched travel routes from Victim-1’s residence to a waterfront neighborhood in Brooklyn, the location of Victim-1’s residence relative to Venezuela, and the location of Victim-1’s residence relative to Tehran.
The network that FARAHANI directs has also targeted victims in other countries, including victims in Canada, the United Kingdom, and the United Arab Emirates, and has worked to procure similar surveillance of those victims.
BAHADORIFAR is originally from Iran and is currently a California resident. BAHADORIFAR has provided financial and other services from the United States to Iranian residents and entities, including to KHAZEIN, since at least in or about 2015, including access to the U.S. financial system and U.S. financial institutions through the use of card accounts, and has offered to manage business interests in the United States on KHAZEIN’s behalf. Among other things, BAHADORIFAR caused a payment to be made to a private investigator for surveillance of Victim-1 on KHAZEIN’s behalf. BAHADORIFAR is not charged with participating in the kidnapping conspiracy, but is alleged to have provided financial services that supported the plot and is charged with conspiring to violate sanctions against Iran, to commit bank and wire fraud, and to commit money laundering. BAHADORIFAR is also charged with structuring cash deposits totaling more than approximately $445,000.
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ALIREZA SHAVAROGHI FARAHANI, 50, MAHMOUD KHAZEIN, 42, KIYA SADEGHI, 35, and OMID NOORI, 45, all of Iran, have each been charged with: (1) conspiring to kidnap, which carries a maximum sentence of life in prison (Count One), (2) conspiring to violate the International Emergency Economic Powers Act and sanctions against the Government of Iran, which carries a maximum sentence of 20 years in prison (Count Two), (3) conspiring to commit bank and wire fraud, which carries a maximum sentence of 30 years in prison (Count Three), and (4) conspiring to launder money, which carries a maximum sentence of 20 years in prison (Count Four). NILOUFAR BAHADORIFAR, 46, of California, is charged in Counts Two, Three, and Four, and is further charged with structuring (Count Five), which carries a maximum sentence of 10 years in prison. The potential maximum sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by Judge Abrams.
BAHADORIFAR was arrested on charges contained in an underlying indictment on July 1, 2021, and was arraigned by Judge Abrams on that indictment on July 8, 2021. FARAHANI, KHAZEIN, SADEGHI, and NOORI remain at large.
Ms. Strauss praised the outstanding investigative work of the FBI’s New York Field Office Counterintelligence-Cyber Division and the New York FBI Iran Threat Task Force. Ms. Strauss also thanked the New York City Police Department (“NYPD”) and the NYPD Intelligence Bureau, the FBI’s Los Angeles Field Office Orange County Resident Agency, and the Department of Justice’s National Security Division, Counterintelligence and Export Control Section, for their assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Michael D. Lockard, Jacob H. Gutwillig, and Matthew J.C. Hellman are in charge of the prosecution, with assistance from Trial Attorney Nathan Swinton of the Counterintelligence and Export Control Section.
The charges in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the Superseding Indictment, and the description of the Superseding Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Man “traveling for work” sentenced for smuggling 23 kilos of methRead the Press Release
McALLEN, Texas – A 53-year-old U.S. citizen living in Tamaulipas, Mexico, has been ordered to federal prison for importing meth into the United States, announced Acting U.S. Attorney Jennifer B. Lowery.
Fernando Ramirez pleaded guilty Feb. 26.
Today, U.S. District Judge Randy Crane ordered him to serve a 70-month sentence to be immediately followed by four years of supervised release. At the hearing, the court heard additional evidence how this was not the first time he imported a controlled substance into the United States. Ramirez admitted to crossing loaded vehicles several times in the past. In sentencing Ramirez, Judge Crane further noted the seriousness of the crime.
On Dec. 11, 2020, Ramirez arrived at the Hidalgo port of entry and attempted to enter the United States from Mexico. Ramirez stated he was on his way to work from his home in Tamaulipas. He was referred for a secondary inspection where a K-9 alerted to the gasoline tank of the vehicle. Authorities inspected it and seized 44 packages of meth with a weight of approximately 23 kilograms.
The drugs had an estimated street value of $126,500.
Ramirez eventually admitted he knew the vehicle he was driving contained drugs and that he would be paid $500 to smuggle them into the United States.
Customs and Border Protection and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Colton Turner prosecuted the case.
Man Who Stole over $67,000 Charged with Three Armed Robberies of Supermarket and Gas Stations in Cataño and Vega BajaRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury returned a six-count indictment charging Juan Tyler López Gerraughty with six counts related to three armed robberies, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
According to the Government’s allegations, on November 4, 2020, Juan Tyler López Gerraughty and other individuals drove a truck into an Econo store in Cataño and threatened a security guard at gunpoint. They then loaded the ATM onto the truck and drove away.
On November 13, López Gerraughty and other individuals crashed a truck through the garage window of a Toral gas station in Cataño. After threatening an employee at gunpoint, the group tied a chain around the ATM and dragged it out of the store with the truck.
On November 28, López Gerraughty and other individuals crashed a truck through the entrance of a Toral gas station in Vega Baja. After threatening an employee with a gun, the group loaded the ATM onto the truck before driving away.
Assistant U.S. Attorney Juan Carlos Reyes of the Violent Crimes and National Security Section is in charge of the prosecution of the case. The Federal Bureau of Investigation is in charge of the investigation. If convicted, the defendant faces a mandatory minimum of 21 years in prison.
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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Man Sentenced to 27 Years for Carjacking Murder in AguadillaRead the Press Release
SAN JUAN, Puerto Rico – U.S. District Court Judge Pedro A. Delgado Hernández sentenced Luis Enrique Valentín-Ramírez to 27 years in prison for a carjacking murder committed on September 13, 2019, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
According to the facts admitted during the change of plea hearing, the victim was spending time with the defendant and another individual during the early morning of September 13. The defendant and another individual beat the victim and took his car. They left the scene, only to return a few minutes later. They lifted the dazed victim into the car and drove him to an industrial zone in Aguadilla, where they beat him to death. Defendant and his cohort then went to a gas station, where they bought two bottles of lighter fluid, which they used to burn the car.
The Federal Bureau of Investigation was in charge of the investigation. Assistant United States Attorney Juan Carlos Reyes of the Violent Crimes and National Security Section prosecuted the case.
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Lovington man sentenced to four years in prison for federal firearms violationsRead the Press Release
ALBUQUERQUE, N.M. – Cody Little, 43, of Lovington, New Mexico, was sentenced on July 6 in federal court to four years and nine months in prison for being a felon in possession of a firearm and ammunition and possessing a stolen firearm. Little pleaded guilty on Nov. 4, 2020.
According to the plea agreement and other court records, on Jan. 25, 2020, Lovington Police officers arrested Little, who had three active arrest warrants at the time. Officers found a 9mm ammunition magazine in Little’s pocket and located a 9mm handgun in the immediate area. Little had stolen the firearm from a nearby residence on Jan. 15, 2020, and could be seen on footage from a doorbell camera as he removed the firearm from a vehicle in the driveway and fled on foot.
In 2013, Little pleaded guilty to being a felon in possession of firearms and ammunition after previously having been convicted of burglary and larceny and battery upon a peace officer. As a previously convicted felon, Little cannot legally possess firearms or ammunition.
Upon his release from prison, Little will be subject to three years of supervised release.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with assistance from the Lovington Police Department. Assistant U.S. Attorneys Dustin Segovia and Aaron Jordan prosecuted the case.
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Leader of Manhattan Drug Trafficking Organization Sentenced to 15 Years in PrisonRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that PEDRO VICIOSO DE LIMA, a/k/a “Pep,” a/k/a “Pepo,” was sentenced today in Manhattan federal court to 180 months in prison for leading a drug trafficking organization (the “DTO”) that was responsible for dealing fentanyl-laced heroin that has been tied to multiple suspected fatal and nonfatal overdoses. VICIOSO DE LIMA previously pled guilty to participating in a conspiracy to distribute heroin, and was sentenced today before U.S. District Judge Colleen McMahon.
U.S. Attorney Audrey Strauss said: “As he previously admitted, Pedro Vicioso De Lima led a Washington Heights drug distribution network that sold fentanyl-laced heroin even after he was aware that customers were overdosing on it. Vicioso De Lima’s drug peddling and his callous disregard for its consequences have resulted in today’s prison sentence.”
According to the allegations in the Indictment and other filings and statements made in Court:
VICIOSO DE LIMA was the leader of a drug trafficking organization (the “DTO”) that operated in New York, New York, and controlled heroin sales from a building at 501 West 167th Street (the “DTO’s Building”) and the immediately surrounding vicinity (the “DTO’s Drug Territory”). From July 2016 to October 2018, the DTO is estimated to have distributed more than 85 kilograms of heroin, much of it laced with fentanyl. VICIOSO DE LIMA controlled and oversaw the operations of the DTO, and together with his trusted second-in-command, Victor Hidalgo, managed stash houses in the DTO’s Drug Territory where the DTO stored its wares. The defendant directed other members of the DTO on matters ranging from how to handle drugs being sold by the DTO, to managing lookouts who worked for the DTO and surveilled for law enforcement, to handling complaints by customers about the quality of drugs being sold by the DTO.
No later than May 2018, VICIOSO DE LIMA was told by Hidalgo that the mixture of heroin being sold by the DTO was causing people to “drop[]” – or overdose – outside the DTO’s Building. Nevertheless, VICIOSO DE LIMA persisted in leading the DTO and selling its potentially fatal narcotics through his arrest in this case in November 2018.
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VICIOSO DE LIMA, 52, of Bergenfield, New Jersey, pled guilty to one count of conspiracy to distribute and possess with intent to distribute one kilogram and more of heroin from July 2016 to October 2018. In addition to the prison term, VICIOSO DE LIMA was sentenced to 10 years of supervised release.
Hidalgo was previously sentenced to 120 months in prison.
Ms. Strauss praised the outstanding investigative work of Homeland Security Investigations, the Drug Enforcement Administration, and the New York City Police Department.
The prosecution is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Jessica Greenwood, Aline R. Flodr, and Dominic Gentile are in charge of the prosecution.
Kenner Resident Sentenced to Four Years Probation for Failure to Account for and Pay over Employment Taxes to the Internal Revenue ServiceRead the Press Release
NEW ORLEANS – The United States Attorney’s Office for the Eastern District of Louisiana announced today that defendant MARTHA BUEZO MARTINEZ (“MARTINEZ”), age 51, of Kenner, LA, was sentenced to four (4) years probation by the Honorable Susie Morgan for one count of failing to account for and pay over employment taxes to the Internal Revenue Service, in violation of Title 26, United States Code, Section 7202. Additionally, the Court ordered MARTINEZ to pay a $100 mandatory special assessment cost. MARTINEZ must pay restitution in the amount of $272,096 to the federal Internal Revenue Service.
According to court documents, MARTINEZ was the President, Director, and sole officer of Infinity Construction Resources, Inc. From on or about March 2013 (1st quarter of 2013) to December 2017 (4th quarter of 2017), MARTINEZ, through Infinity, failed to pay over to the United States Internal Revenue Service approximately $272,096 in FICA taxes.
This matter was handled by the Internal Revenue Service, Criminal Investigation. United States Attorney Duane A. Evans is prosecuting the case.
Justice Department and Oneida County Board of Elections Reach Agreement under National Voter Registration Act and Help America Vote ActRead the Press Release
WASHINGTON - The Justice Department announced yesterday that it has entered into a proposed consent decree to settle a voting rights lawsuit with the Board of Elections of Oneida County, New York.
The proposed consent decree was filed in the U.S. District Court for the Northern District of New York in conjunction with a lawsuit brought by the Justice Department. The Justice Department’s complaint alleges that, before the November 2020 federal general election, the Oneida County Board of Elections failed to process approximately 2,400 timely-submitted voter registration applications completed through state motor vehicle offices and failed to ensure that voter registration applicants received timely notice of the disposition of their applications, in violation of Section 8 of the National Voter Registration Act (NVRA). The complaint also alleges that the State violated Section 302 of the Help America Vote Act (HAVA) by summarily rejecting nearly 1,800 provisional ballots cast by Oneida County voters in the November 2020 federal election without verifying the voters’ eligibility and without counting those provisional ballots cast by eligible voters.
The Justice Department gave notice to the Oneida County Board of Elections of its intent to bring suit under the NVRA and HAVA on March 23, and the parties worked collaboratively to achieve this agreement. The parties’ consent decree, which must still be approved by the court, provides that the Oneida County Board of Elections will develop and implement uniform and nondiscriminatory policies and procedures to ensure that election officials review and process all timely submitted voter registration applications in accordance with the NVRA. In addition, the board will train all poll officials and other election personnel regarding the provisional balloting requirements of HAVA. Finally, the board will provide periodic reports to the Justice Department regarding compliance with the proposed consent decree.
“We will continue using critical federal voting rights laws to help ensure that eligible voters enjoy access to the ballot box,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The National Voter Registration Act requires states to ensure that voter registration applications submitted before the deadline for federal elections are timely processed, and that qualified voters are promptly included on voter rolls for federal elections. The Help America Voter Act ensures that registered voters who have been left off voting lists can cast provisional ballots that will be promptly verified and counted if the voters are found to be eligible. I am pleased that the Oneida County Board of Elections has worked with the Department of Justice and agreed to measures that will protect these vital rights and establish safeguards to ensure compliance with the law in future federal elections.”
“We join the Civil Rights Division in bringing this important lawsuit under the National Voter Registration Act and the Help America Vote Act, and appreciate that Oneida County has worked with the Justice Department to ensure that all Oneida County residents enjoy the voting rights and protections afforded to them,” said Acting U.S. Attorney Antoinette T. Bacon of the Northern District of New York.
More information about the National Voter Registration Act, the Help America Vote Act and other federal voting rights laws is available on the Department of Justice website at https://www.justice.gov/crt/voting-section.
Judges sentences former SLMPD Officer for assaulting undercover officer posing as protestorRead the Press Release
ST. LOUIS – United States District Court Judge E. Richard Webber sentenced former SLMPD Police Officer Randy Hays to a 52-month term of imprisonment on today’s date. The 34-year-old St. Louis, Missouri resident pleaded guilty in November 2019 to using unreasonable and excessive force against a fellow St. Louis Metropolitan Police Department officer whom Hays mistakenly believed was a protestor.
As a result of the 2017 acquittal of a former police officer on a state murder charge, protests were taking place in downtown St. Louis. In an effort by the St. Louis Metropolitan Police Department to keep peace and order, the victim undercover officer was assigned to the protest detail. Hays was also assigned to the protest detail in his capacity as a police officer. Hays, who mistakenly believed the victim undercover officer was a protestor, assaulted the victim in a manner that constituted unreasonable and excessive force.
Hays’s co-defendant, Bailey Colletta, pleaded guilty to making false statements before a federal grand jury that was charged with investigating the assault of the victim undercover officer. Her sentencing hearing is set for July 15, 2021.
Co-defendant Dustin Boone was found guilty in June of aiding and abetting the deprivation of the victim’s civil rights under the color of law. His sentencing hearing is set for September 15, 2021.
Co-defendant Christopher Myers faces a charge of destruction of evidence related to the arrest and assault of the victim police officer. Christopher Myers is presumed innocent and the charge that he presently faces is merely an accusation and does not constitute proof of guilt.
The case is being investigated by the Federal Bureau of Investigation. First Assistant United States Attorney Carrie Costantin and Assistant United States Attorney Rob Livergood are handling the matter.
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Jefferson County Man Guilty of FEMA Fraud Related to Hurricane HarveyRead the Press Release
BEAUMONT, Texas – A Port Arthur man has pleaded guilty to hurricane-related fraud in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Jose Luis Carrillo, 50, pleaded guilty to an information charging him with fraud in relation to a major disaster or emergency benefits today before U.S. Magistrate Judge Keith F. Giblin.
“Defrauding federal programs is always an egregious act,” said Acting U.S. Attorney Nicholas J. Ganjei. “Disaster relief fraud is even more serious because of the limited nature of the funds intended to assist people in their time of greatest need.”
Department of Homeland Security Inspector General Joseph V. Cuffari stated, “This investigation and resulting plea demonstrates our continued commitment to identify and investigate all allegations of fraud to protect the integrity of FEMA programs funded by the taxpayer. Theft of funds from DHS programs intended to help those in need will not be tolerated.”
According to information presented in court, Hurricane Harvey made landfall in southeast Texas in August 2017, causing extensive damage to the region. On Sep. 21, 2017, Carrillo applied for assistance from the Federal Emergency Management Agency (FEMA) for a damaged dwelling located on Luis Drive in Port Arthur. Carrillo stated that he owned the damaged dwelling and that it was his primary residence. Carrillo received a total of $23,619.70 in FEMA assistance for rental expenses and home repairs. The actual residents of the residence also submitted an application, but were denied benefits. An investigation determined that the actual residents had lived at the location from July 2017 until they moved out at the end of August 2017, after Hurricane Harvey struck. Carrillo admitted that he fraudulently represented the home was his primary residence to obtain FEMA funds.
Carrillo faces up to 30 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Department of Homeland Security Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Rachel Grove.
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Jamestown Man Charged with EscapeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Jensen Vasquez, 35, of Jamestown, NY, with escape from custody. The charge carries a maximum penalty of five years in prison.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that according to the indictment, defendant, in 2018, was sentenced to a term of imprisonment of 5 years as a result of his conviction on a federal narcotics charge. On April 28, 2021, the defendant escaped from the Community Resources for Justice, Lighthouse Buffalo Residential Reentry Center.
The U.S. Marshals Service took Vasquez back into custody on May 21, 2021.
Vasquez was arraigned before U.S. Magistrate Judge Jeremiah J. McCarthy and is being held pending a detention hearing on July 15, 2021.
The indictment is the result of an investigation by the United States Marshals Service, under the direction of Special Agent-in-Charge Charles Salina.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Iranian Intelligence Officials Indicted on Kidnapping Conspiracy ChargesRead the Press Release
A New York federal court unsealed an indictment today charging four Iranian nationals with conspiracies related to kidnapping, sanctions violations, bank and wire fraud, and money laundering. A co-conspirator and California resident, also of Iran, faces additional structuring charges.
According to court documents, Alireza Shavaroghi Farahani, aka Vezerat Salimi and Haj Ali, 50; Mahmoud Khazein, 42; Kiya Sadeghi, 35; and Omid Noori, 45, all of Iran, conspired to kidnap a Brooklyn journalist, author and human rights activist for mobilizing public opinion in Iran and around the world to bring about changes to the regime’s laws and practices. Niloufar Bahadorifar, aka Nellie Bahadorifar, 46, originally of Iran and currently residing in California, is alleged to have provided financial services that supported the plot.
“Every person in the United States must be free from harassment, threats and physical harm by foreign powers,” said Acting Assistant Attorney General Mark J. Lesko for the Justice Department’s National Security Division. “Through this indictment, we bring to light one such pernicious plot to harm an American citizen who was exercising their First Amendment rights, and we commit ourselves to bring the defendants to justice.”
“As alleged, four of the defendants monitored and planned to kidnap a U.S. citizen of Iranian origin who has been critical of the regime’s autocracy, and to forcibly take their intended victim to Iran, where the victim’s fate would have been uncertain at best,” said U.S. Attorney Audrey Strauss for the Southern District of New York. “Among this country’s most cherished freedoms is the right to speak one’s mind without fear of government reprisal. A U.S. citizen living in the United States must be able to advocate for human rights without being targeted by foreign intelligence operatives. Thanks to the FBI’s exposure of their alleged scheme, these defendants have failed to silence criticism by forcible abduction.”
“As alleged in this indictment, the government of Iran directed a number of state actors to plot to kidnap a U.S.-based journalist and American citizen, and to conduct surveillance on U.S. soil - all with the intention to lure our citizen back to Iran as retaliation for their freedom of expression,” said Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division. “We will use all the tools at our disposal to aggressively investigate foreign activities by operatives who conspire to kidnap a U.S. citizen just because the government of Iran didn’t approve of the victim’s criticism of the regime.”
According to the indictment, Farahani is an Iranian intelligence official who resides in Iran. Khazein, Sadeghi and Noori are Iranian intelligence assets who also reside in Iran and work under Farahani. Since at least June 2020, Farahani and his intelligence network have plotted to kidnap a U.S. citizen of Iranian origin (Victim-1) from within the United States in furtherance of the government of Iran’s efforts to silence Victim-1’s criticisms of the regime. Victim-1 is an author and journalist who has publicized the government of Iran’s human rights abuses.
Prior to the kidnapping plot, the government of Iran attempted to lure Victim-1 to a third country in order to capture Victim-1 for rendition to Iran. In approximately 2018, Iranian government officials attempted to induce relatives of Victim-1, who reside in Iran, to invite the victim to travel to a third country for the apparent purpose of having Victim-1 arrested or detained and transported to Iran for imprisonment. Victim-1’s relatives did not accept the offer. An electronic device used by Farahani contains, among other things, a photo of Victim-1 alongside photos of two other individuals, both of whom were lured from third countries and captured by Iranian intelligence, with one later executed and the other imprisoned in Iran, and a caption in Farsi that reads: “gradually the gathering gets bigger... are you coming, or should we come for you?”
On multiple occasions in 2020 and 2021, as part of the plot to kidnap Victim-1, Farahani and his network procured the services of private investigators to surveil, photograph and video record Victim-1 and Victim-1’s household members in Brooklyn. Farahani’s network procured days’ worth of surveillance at Victim-1’s home and the surrounding area, videos and photographs of the victim’s family and associates, surveillance of the victim’s residence, and the installation of and access to a live high-definition video feed of Victim-1’s home. The network repeatedly insisted on high-quality photographs and video recordings of Victim-1 and Victim-1’s household members; a large volume of content; pictures of visitors and objects around the house; and depictions of Victim-1’s body language. The network procured the surveillance by misrepresenting their identities and the purpose of the surveillance to the investigators, and laundered money into the United States from Iran to pay for the surveillance. Sadeghi acted as the network’s primary point of contact with private investigators while Noori facilitated payment to the investigators in furtherance of the plot.
As part of the kidnapping plot, the Farahani-led intelligence network also researched methods of transporting Victim-1 out of the United States for rendition to Iran. Sadeghi, for example, researched a service offering military-style speedboats for self-operated maritime evacuation out of New York City, and maritime travel from New York to Venezuela, a country whose de facto government has friendly relations with Iran. Khazein researched travel routes from Victim-1’s residence to a waterfront neighborhood in Brooklyn; the location of Victim-1’s residence relative to Venezuela; and the location of Victim-1’s residence relative to Tehran.
The network that Farahani directs has also targeted victims in other countries, including victims in Canada, the United Kingdom and the United Arab Emirates, and has worked to procure similar surveillance of those victims.
As alleged, Bahadorifar provided financial and other services from the United States to Iranian residents and entities, including to Khazein, since approximately 2015. Bahadorifar facilitated access to the U.S. financial system and institutions through the use of card accounts and offered to manage business interests in the United States on Khazein’s behalf. Among other things, Bahadorifar caused a payment to be made to a private investigator for surveillance of Victim-1 on Khazein’s behalf. While Bahadorifar is not charged with participating in the kidnapping conspiracy, she is alleged to have provided financial services that supported the plot and is charged with conspiring to violate sanctions against Iran, commit bank and wire fraud, and commit money laundering. Bahadorifar is also charged with structuring cash deposits totaling more than approximately $445,000.
Farahani, Khazein, Sadeghi and Noori are each charged with: (1) conspiring to kidnap, which carries a maximum sentence of life in prison; (2) conspiring to violate the International Emergency Economic Powers Act (IEEPA) and sanctions against the government of Iran, which carries a maximum sentence of 20 years in prison; (3) conspiring to commit bank and wire fraud, which carries a maximum sentence of 30 years in prison; and (4) conspiring to launder money, which carries a maximum sentence of 20 years in prison. Bahadorifar is charged with counts two, three and four, and is further charged with structuring, which carries a maximum sentence of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s New York Field Office, Counterintelligence-Cyber Division and Iran Threat Task Force are investigating the case.
Trial Attorney Nathan Swinton of the Justice Department’s Counterintelligence and Export Control Section and Assistant U.S. Attorneys Michael D. Lockard, Jacob H. Gutwillig and Matthew J.C. Hellman of the Southern District of New York are 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.
Huntington Man Sentenced to over Five Years in Prison for Federal Drug and Gun CrimesRead the Press Release
HUNTINGTON, W.Va. – Johnny Ray Francis III, 20, was sentenced to 66 months in federal prison for possession with intent to distribute heroin and using and carrying a firearm during and in relation to a drug trafficking crime.
According to court documents, Francis possessed a plastic baggie containing suspected heroin and a Glock 23 .40 caliber 9mm pistol in a residence on 26th Street in Huntington on June 12, 2019. After laboratory testing, the substance possessed by Francis was determined to be approximately 8 grams of heroin. Francis admitted that he intended to distribute the heroin and that he possessed the firearm for the purpose of protecting himself and the heroin.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Ryan A. Keefe 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. 3:19-cr-00258.
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Hartford Man Sentenced to 27 Months for Distributing Cocaine and Marijuana on Supervised ReleaseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that MICHAEL LEDBETTER, 30, of Hartford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 27 months of imprisonment, followed by three years of supervised release, for distributing cocaine and marijuana while on federal supervised release.
According to court documents and statements made in court, on November 17, 2017, Judge Underhill sentenced Ledbetter to 15 months of imprisonment and three years of supervised release for possession of ammunition by a felon. In April 2014, Ledbetter had been convicted in state court of six counts of accessory to first degree assault.
Ledbetter was released from federal prison in April 2018. While on federal supervised release, Ledbetter was arrested on state domestic violence charges and he failed multiple drug tests. On October 30, 2019, Ledbetter cut off his GPS monitoring device and failed to respond to messages from the U.S. Probation Office. On November 20, 2019, the U.S. Marshals Service arrested Ledbetter in a motel room in Hartford with approximately 11 pounds of marijuana, 119 grams of cocaine and $4,750 in cash.
Ledbetter has been detained since his arrest. On November 9, 2020, he pleaded guilty to one count of possession with intent to distribute cocaine and marijuana.
This investigation was conducted by the FBI’s Connecticut Violent Crime Task Force and the U.S. Marshals Service. The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Harrison County woman admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Harlie Christian Shaw, of Clarksburg, West Virginia, has admitted to a firearms charge, Acting United States Attorney Randolph J. Bernard announced.
Shaw, 30, pleaded guilty today to one count of “Unlawful Possession of a Firearm.” Shaw, a person prohibited from having a firearm because of a prior conviction, admitted to having a .22 caliber revolver in June 2020 in Harrison County.
Shaw is facing up to 10 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 Sarah E. Wagner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrison County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Grand Jury Charges 19 Defendants in Alleged Conspiracy to Traffic Heroin via Telephone Call Centers and Launder $2 Million in ProceedsRead the Press Release
SANTA ANA, California – Law enforcement officials today arrested 12 defendants charged in a federal grand jury indictment with conspiring to distribute at least $2 million worth of heroin by operating two Orange County-based call centers that took telephone orders for deliveries of the drug.
The 13-count indictment returned on May 26 and unsealed today charges a total of 19 defendants with narcotics- and money laundering-related offenses. The 12 defendants who were arrested by special agents with the FBI via “Operation Horse Caller” are expected to be arraigned this afternoon in United States District Court in Santa Ana. The seven remaining defendants are fugitives.
According to the indictment, from March 2017 to April 2021, Julio Cesar Martinez, a.k.a. “Primo,” 43, of Riverside, and his brother, Victor Martinez, a.k.a. “Hector,” 44, of Hemet, owned and operated a heroin distribution organization in Orange County, obtaining the drug from suppliers in Mexico and the United States. Heroin was transported to the organization by couriers who concealed the drug, sometimes in their body cavities, to Orange County.
Maricela Guerrero, a.k.a. “Carla,” 53, of Santa Ana, and Marla Portillo Cordova, a.k.a. “Yvette,” 34, also of Santa Ana, allegedly assisted in the daily operations of the distribution organization and, on an almost daily basis, accepted telephone orders for heroin. These four defendants allegedly directed other conspirators to deliver the heroin to buyers and collect payment in exchange for a cut of the proceeds.
The organization allegedly distributed $2 million worth of heroin. To conceal the source of the income the organization generated, from September 2013 to May 2019, Julio Cesar Martinez and Victor Martinez allegedly caused the deposit of the heroin sales proceeds into bank accounts held by Cordova and other individuals. Cordova and others, at times, allegedly structured the deposits into the bank accounts to evade federal reporting requirements by depositing the money at different banks and by breaking the deposits up into amounts $10,000 and under.
Victor Martinez allegedly directed Cordova and others to further conceal the heroin proceeds by transferring the money between various bank accounts held by family members. He also directed them to transfer heroin sales proceeds into an escrow account that was used to purchase property in Hemet for his benefit, according to the indictment.
These four defendants, along with others, are charged with conspiracy to distribute heroin and conspiracy to commit money laundering. Victor Martinez also is charged with one count of possession with intent to distribute heroin, and, along with Cordova, is charged with four counts of engaging in monetary transactions in property derived from unlawful activity.
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.
The charges of conspiracy to distribute heroin and distribution of heroin each carry a statutory maximum sentence of life imprisonment. The charges of money laundering conspiracy and engaging in monetary transactions in property derived from unlawful activity carry statutory maximum sentences of 20 years and 10 years in federal prison, respectively.
The FBI and IRS Criminal Investigation investigated this matter. The Orange County Sheriff's Department, the Newport Beach Police Department, the Costa Mesa Police Department, the Huntington Beach Police Department, the Oxnard Police Department, the California Highway Patrol and March Air Reserve Base provided substantial assistance.
Assistant United States Attorneys Joseph T. McNally and Kevin J. Butler of the Violent and Organized Crime Section are prosecuting this case. Assistant United States Attorney Jonathan S. Galatzan of the Asset Forfeiture Section is handling the forfeiture portion of 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.
Glenshaw Cocaine Dealer is First to be Sentenced in Pittsburgh Safe Streets Task Force InvestigationRead the Press Release
PITTSBURGH, PA - A resident of Glenshaw, Pennsylvania, was sentenced in federal court to a charge of violating federal narcotics trafficking laws, Acting United States Attorney Stephen R. Kaufman announced today.
David Pietropaolo, 23, was sentenced to 18 months imprisonment and three years of supervised release before United States District Judge Robert J. Colville.
In conjunction with the sentencing hearing, the Court was informed that the Greater Pittsburgh Safe Streets Task Force, led by the Federal Bureau of Investigation, conducted a long-term investigation into drug-trafficking activity occurring in the Western District of Pennsylvania. Law enforcement identified several individuals, suspected at the time, of illegally distributing controlled substances, including heroin, cocaine and methamphetamine in Allegheny, Westmoreland, Erie, Fayette, and Washington Counties.
Beginning in August of 2020 and continuing through November 2020, the FBI conducted a federal Title III investigation, which resulted in the interception of thousands of wire and electronic communications over a total of ten telephones. Three of the intercepted telephones were used by Mr. Pietropaolo’s co-defendant, Anthony Peluso, to further his illegal drug trafficking activity. Investigators identified Mr. Peluso as a long-time heroin and cocaine trafficker and source of supply for low to mid-level drug traffickers in this District. One of the individuals intercepted over Mr. Peluso’s telephones was the defendant, David Pietropaolo. Investigators identified that Pietropaolo regularly obtained ounce quantities of cocaine that he then redistributed.As a result of this investigation, to-date, 38 individuals have been charged across four related Indictments. Pietropaolo is the first defendant to be sentenced.
At sentencing, Judge Colville denied defendant’s request to be sentenced below the guideline range, imposing a sentence of 18 months’ imprisonment, which falls at the low end of the guideline range of 18-24 months.
Assistant United States Attorney Rebecca L. Silinski is prosecuting these cases on behalf of the government.
Acting United States Attorney Kaufman commended the Federal Bureau of Investigation who led the multi-agency investigation of this case, which also included the United States Postal Inspection Service, Drug Enforcement Administration, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Pennsylvania State Police, Pittsburgh Bureau of Police, and the Pennsylvania Office of Attorney General Bureau of Narcotics Investigations. Other assisting agencies include the Allegheny County Police Department Homicide, Baldwin Police Department, Brentwood Police Department, McKees Rocks Police Department, Stowe Township Police Department and West Deer Township Police Department, for the investigation leading to the successful prosecution of Pietropaolo.
This sentencing was the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Georgia Woman Sentenced to Twenty-Five Years on Charges of Production and Distribution of Child PornographyRead the Press Release
TALLAHASSEE, FLORIDA – On Friday afternoon, a federal judge in Tallahassee sentenced Madison King, 23, of Nashville, Georgia, to 25 years in prison on charges of conspiracy to produce, distribute, possess, and receive child pornography. The sentence, which followed her guilty plea last year, was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
Court documents reflect, in July 2019, representatives of local, state, and federal law enforcement executed a search warrant at the Tallahassee residence of King’s co-defendant, Gregory Johnson. While conducting the search, authorities found messages on Johnson’s phone that demonstrated Johnson and King had conspired to produce child pornography. The recovered evidence included short video clips and pictures that King had taken and transmitted to Johnson depicting the sexual abuse of a toddler. Florida investigators quickly obtained emergency legal process to locate King and contacted their Georgia counterparts. That same day, agents with Homeland Security Investigations, in concert with the Berrien County (Georgia) Sheriff’s Office, executed a search of King’s Nashville, Georgia residence, whereupon the child was rescued.
King’s co-defendant, Johnson, has also pleaded guilty to the federal charges. Johnson is scheduled to be sentenced on September 14, 2021, before Chief United States District Judge Mark Walker.
“There is no greater charge than the protection of our children,” stated Acting U.S. Attorney Coody. “Acts of such depravity, committed by a caregiver, are both horrific and incomprehensible. Our law enforcement partners are to be commended for the swift, multi-state investigation, which resulted in the immediate rescue of this child, preventing further abuse.”
“During the course of this investigation, a child was saved from this predator thanks to HSI partnerships in our offices in Philadelphia, Atlanta, and here in Tallahassee,” said HSI Tampa Assistant Special Agent in Charge Micah McCombs.
“There is no crime worse than the crimes against our children,” said Berrien County Sheriff Ray Paulk. “I would like to thank our investigators and our District Attorney’s Office for acting swiftly and efficiently in this case to ensure the safety of this child. I also want to thank all of the local, state, and federal law enforcement that worked together in making a case like this priority.”
This conviction was the result of an investigation conducted by Homeland Security Investigations, the Leon County Sheriff’s Office, the Berrien County Sheriff’s Office, and the Florida Department of Law Enforcement. Assistant United States Attorneys Meredith L. Steer and Michelle Spaven prosecuted the case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former bookkeeper of federally funded Washington Court House domestic violence shelter pleads guilty to misusing shelter funds for personal expensesRead the Press Release
CINCINNATI – The former bookkeeper of My Sister’s House, a now-shuttered domestic violence shelter in Washington Court House, pleaded guilty in U.S. District Court today to two counts related to stealing funds from the federally funded shelter.
Jaime Cardinal, 45, of Washington Court House, was arrested in July 2020, along with Crystal Chrisman, 53, of Columbus, the former executive director of the shelter.
Cardinal admitted that she and Chrisman spent tens of thousands of dollars intended for the operation of the shelter on personal expenses, including food, a trip to Disney World and Universal Studios for the defendants’ daughters, and thousands of dollars in purchases from Avon, Thirty-One and iTunes.
Cardinal’s plea details that, between January 2014 and October 2016, she misused debit cards connected to the shelter’s bank accounts to make hundreds of personal purchases at restaurants, auctions, craft stores and bowling alleys, among other places – including purchases made when few, if any, victims were living at the shelter. For example, in March and April 2016, when no victims were in the shelter, Cardinal and Chrisman charged more than $6,000 to the shelter’s debit cards for food at restaurants and grocery stores, car repair and fuel for personal cars, weight-loss supplements, and other personal expenses.
Due to the thefts, which totaled more than $50,000, My Sister’s House fell behind on payroll and on paying taxes. In November 2016, the shelter’s board placed all employees on administrative leave pending investigation. The domestic violence shelter never reopened.
Cardinal faces a prison sentence of up to five years in prison for conspiring to commit theft and up to 10 years in prison for committing theft concerning programs receiving federal funds. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors. Under the plea agreement, Cardinal has agreed to pay $25,000 in restitution.
My Sister’s House received more than $10,000 annually in federal grant funds, including grants under the Violence Against Women Act, the Family Violence Prevention and Services Act and the Victims of Crime Act. The grants are intended to be used to pay for salaries and benefits of staff and for shelter operations, including supplies and shelter maintenance.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, and the Department of Justice Office of the Inspector General announced the plea entered into today before U.S. District Judge Matthew W. McFarland. Assistant United States Attorney Julie D. Garcia is representing the United States in this case.
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Former Pittsburgh-area Doctor Pleads Guilty to Unlawfully Prescribing Opioids, Health Care Fraud and Money LaunderingRead the Press Release
PITTSBURGH – A former physician pleaded guilty today in federal court to drug diversion, health care fraud and money laundering charges associated with his suburban Pittsburgh holistic medical practice, Acting United States Attorney Stephen R. Kaufman announced today.
Andrzej Kazimierz Zielke, 66, of Allison Park, Pennsylvania 15101 (Hampton) pleaded guilty to four counts of unlawful dispensing and distributing Schedule II controlled substances, one count of health care fraud, and one count of money laundering before Senior United States District Judge Nora Barry Fischer,
In connection with the guilty plea, the court was advised Zielke owned and operated Medical Frontiers, LLC, a purported pain management practice, located in Gibsonia, Pennsylvania. On or about October 3, 2017, May 25, 2017, October 3, 2017, and December 17, 2014, Zielke knowingly dispensed and distributed Schedule II drugs, including Oxycodone, Methadone, Hydrocodone and Oxymorphone, to four patients outside the course of professional practice and not for a legitimate medical purpose. Zielke committed health care fraud by causing fraudulent claims to be submitted to Medicaid for payments to cover the costs of the unlawfully prescribed drugs. Finally, Zielke violated federal money laundering statutes when he caused approximately $150,000 in proceeds obtained through his illegal drug distribution to be wired from a bank account to Kitco Metals, Inc., in Canada to purchase silver and collector coins.
“We are intensely focused on stemming the supply of illegal opioids into our communities, regardless of whether the dealers are trafficking on a street corner or are abusing their physician’s oath by prescribing painkillers for no legitimate medical reason,” said Acting U.S. Attorney Kaufman. “We will continue our critical work to prosecute all those who are fueling our nation’s continuing opioid crisis.”
“Mr. Zielke created a lucrative scheme peddling opioids for profit and at the same time undermining our healthcare system through fraudulent billing,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “Unethical, crooked doctors who choose to line their pockets cause medical care costs to increase for everyone. The FBI is committed to holding those who think they won’t be caught accountable.”
“Andrzej Zielke recklessly funneled opioids into Pittsburgh neighborhoods, fueling the height of the epidemic that takes the lives of 13 Pennsylvanians every day,” said Attorney General Josh Shapiro. “We're working closely with our federal partners to combat this crisis that continues to destroy Pennsylvania families and communities.”
Judge Fisher scheduled sentencing for November 1, 2021. The law provides for a maximum per count sentence of 10 years in prison, a fine of $500,000.00, or both, for the controlled substances offenses. Zielke faces an additional maximum per count sentence of 10 years and fine of $250,000.00 for the health care fraud charges; and a maximum per count sentence of 10 years and a fine of $250,000.00 for the money laundering offenses. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the Court continued Zielke on bond.Assistant United States Attorney Robert S. Cessar and Special Assistant U.S. Attorney Summer Carroll of the Pennsylvania Attorney General’s Office are prosecuting this case on behalf of the government.
The investigation leading to the filing of charges in this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit (OFADU). The Western Pennsylvania OFADU, led by federal prosecutors in the U.S. Attorney’s Office, combines the expertise and resources of federal and state law enforcement to address the role played by unethical medical professionals in the opioid epidemic. The agencies which comprise the Western Pennsylvania OFADU include: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations, U.S. Office of Personnel Management – Office of Inspector General and the Pennsylvania Bureau of Licensing.
Former Lab Owner Sentenced in Connection with $1.6 Million Medicaid Kickback ConspiracyRead the Press Release
PITTSBURGH, Pa. – A resident of Pittsburgh, Pennsylvania, was sentenced in federal court today for one count of conspiracy to pay unlawful kickbacks, Acting United States Attorney Stephen R. Kaufman announced.
United States District Judge David S. Cercone sentenced William Hughes, 74, to sixty days’ incarceration, followed by twelve months of home detention. Hughes was also ordered to pay a $5,000 fine, forfeit more than $750,000 in previously seized assets, and make restitution totaling $1,670,469.77 to the Kentucky Medicaid Program.
During the defendant’s plea hearing on June 18, 2020, Hughes admitted that he owned and operated Universal Oral Fluid Labs (UOFL), a clinical drug testing laboratory located in Greensburg, Pennsylvania. From October 2011 to August 2013, Hughes further admitted that he entered into an unlawful kickbacks-for-referrals arrangement, through UOFL, with his co-defendant, Dr. Varanise Booker, a physician practicing in Kentucky. Pursuant to this arrangement, Hughes agreed to pay Booker to refer patients to UOFL—including patients who were covered under the Kentucky Medicaid Program—for drug testing services in exchange for cash payments. Between September 2012 and August 2013, UOFL obtained $1,670,469.77 from the Kentucky Medicaid Program based on these illegal referrals. In turn, Hughes, through UOFL, caused Booker to be paid a total of $843,242.31 in kickbacks for her drug testing referrals.
Booker has pleaded not guilty, and her case remains pending before Judge Cercone.
The Federal Bureau of Investigation, Health and Human Services Office of Inspector General, Internal Revenue Service - Criminal Investigation, Defense Criminal Investigative Service, and Pennsylvania Office of Attorney General Medicaid Fraud Control Unit conducted the investigation that led to the prosecution of Hughes.
Former Detroit Police Department Officer Sentenced to 80 Months in Federal Prison for ExtortionRead the Press Release
DETROIT - Former Detroit Police Department Officer, Deonne Dotson, was sentenced today to 80 months in federal prison following convictions for extortion announced Acting United States Attorney Saima Mohsin.
Joining Mohsin in the announcement were Timothy Waters, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, Juan Vargas, Acting U.S. Postal Inspector in Charge, U.S. Postal Inspection Service, Detroit Division and Chief James White, Detroit Police Department.
Dotson, age 49, was convicted after an 8-day jury trial before United States District Judge Robert H. Cleland. The trial was conducted in November 2019, but Dotson’s sentencing was delayed due to the COVID-19 pandemic.
According to the evidence presented at trial, Officer Dotson accepted bribes from owners and operators of automobile collision shops in exchange for referring stolen and abandoned vehicles recovered in the City of Detroit to their shops. The evidence also showed that Officer Dotson created false police reports in exchange for money from the owners and operators of the same collision shops. Owners of the vehicles were unaware that Officer Dotson was being paid by the collision shops when they agreed to have their cars fixed by the collision shops.
Five other Detroit Police Officers pleaded guilty and served time in federal prison for committing similar criminal activity while they were Officers with the Detroit Police Department. All six officers were actively employed with the Detroit Police Department at the time of the offenses. The other five officers were: Charles Wills, James Robertson, Jamil Martin, Martin Tutt, and Anthony Careathers. All of the Officers were charged with engaging in extortion for using their official positions as Police Officers to refer cars to certain collision shops in exchange for cash payments.
“The overwhelming majority of Detroit Police Officers are honest, hard-working, and superb public servants,” said Mohsin. “Dotson’s conviction and 80 months’ sentence shows that no one is above the law, and when police officers commit crimes and violate their oath to protect and serve the public, they will be held accountable.”
"Mr. Dotson abused his authority as a law enforcement officer by engaging in conduct designed to benefit him personally. His actions are in stark contrast to the professionalism and integrity shown by the Detroit Police Department on a daily basis," said Timothy Waters, Special Agent in Charge of the FBI's Detroit Division.
“The successful resolution of this case highlights the importance of interagency cooperation. What began as a mail fraud investigation into illicit insurance claims developed into a public corruption case resulting in the conviction of six police officers for extortion – all because of the joint investigative effort. I fully commend all agencies involved for the hard work and countless hours put forth to bring these corrupt officers to justice,” said Juan Vargas, Acting US Postal Inspector in Charge.
The investigation was conducted by the FBI, the U.S. Postal Inspection Service, Detroit Police Department and the following agencies from the FBI Detroit Area Corruption Task Force: Michigan State Police and U.S. Customs and Border Protection, Office of Professional Responsibility, Investigative Operation Division.
The FBI Detroit Area Corruption Task Force is comprised of personnel from the Detroit Division of the FBI; Michigan State Police; Michigan Department of Attorney General; Detroit Police Department; U.S. Internal Revenue Service, Criminal Investigation Division; U.S. Customs and Border Protection, Office of Professional Responsibility, Investigative Operations Division; U.S. Postal Inspection Service; U.S. Department of Labor, Office of the Inspector General, Office of Labor Racketeering and Fraud Investigations; U.S. Department of Housing and Urban Development, Office of the Inspector General; U.S. Department of Transportation, Office of the Inspector General; U.S. Department of Homeland Security, Office of the Inspector General; U.S. Department of Education, Office of the Inspector General; and U.S. Environmental Protection Agency, Office of the Inspector General.
The case was prosecuted by Assistant United States Attorneys Sarah Resnick Cohen and Craig A. Weier.
Former Defense Department Official Pleads Guilty to Federal Charges of Taking Cash to Aid Contractor’s Request for $6.4 MillionRead the Press Release
RIVERSIDE, California – A former Department of Defense civilian official has pleaded guilty to two felony charges for taking tens of thousands of dollars in illegal cash payments from a private contractor to support the contractor’s effort to obtain $6.4 million from the government in connection with construction projects on a Navy base in the African nation of Djibouti, the Justice Department announced today.
Nizar Farhat, 63, of Palm Desert, pleaded guilty on Monday to one count of being a public official who received an illegal gratuity and one count of being a public official who received compensation from a private party for government services.
Farhat is a former construction manager who was based at the United States Marine Corps Air Ground Combat Center in Twentynine Palms.
According to his plea agreement, in 2014 and 2015, Farhat was on assigned temporary duty at the United States Navy Base Camp Lemonnier in Djibouti, where he oversaw a private company’s $15 million contract to construct an aircraft hangar and a telecommunications facility. After the projects were completed, the company submitted to the Defense Department Requests for Equitable Adjustment (REAs) that sought $6.43 million in additional payments.
Farhat admitted that, on four separate occasions between December 2015 and October 2017, he met with representatives of the company at hotels in Las Vegas and Palm Springs. During those meetings, Farhat took $15,000 in cash to help draft the REAs the company submitted to the Defense Department, and another $22,000 in cash to recommend that the Navy certify completion of the construction projects and approve the REAs. Following those meetings, Farhat urged the Defense Department to approve the majority of the REAs, without disclosing that defendant had received cash from the company in exchange for his recommendation.
The majority of the REAs remain under review by the Defense Department.
United States District Judge Jesus G. Bernal has scheduled an October 4 sentencing hearing, at which time Farhat will face a statutory maximum sentence of 10 years in federal prison.
The FBI and the Naval Criminal Investigative Service investigated this matter.
Assistant United States Attorney David T. Ryan of the Terrorism and Export Crimes Section and Justice Department Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section are prosecuting this case.
Former Custom Carbon Processing official sentenced for failing to surrender to prison for convictions stemming from explosion of Wibaux oil processing plantRead the Press Release
BILLINGS – The former president of Custom Carbon Processing, Inc., convicted of Clean Air Act violations in the explosion of an oil processing plant in Wibaux, was sentenced today after admitting he failed to surrender to prison to begin serving an 18-month prison term, Acting U.S. Attorney Leif M. Johnson said.
Peter Margiotta, 64, of Edmonton, Alberta, Canada, was sentenced to one day in prison, consecutive to his 18-month sentence, after he pleaded guilty today to an indictment charging him with failure to surrender for service of sentence.
U.S. District Judge Susan P. Watters presided and sentenced Margiotta immediately after his plea hearing. Margiotta was detained.
Under the terms of a plea agreement filed in the case, the government and Margiotta agreed that a sentence of one day of imprisonment was appropriate and that Margiotta would voluntarily dismiss any appeal of his previous convictions or sentence in the case involving Clean Air Act violations.
In court documents filed in the case, the government alleged that on July 10, 2020, Margiotta was sentenced to 18 months in federal prison and was permitted to self-surrender to the U.S. Bureau of Prisons to begin serving his sentence.
A jury in September 2019 found Margiotta guilty of all three counts in an indictment charging him with conspiracy, Clean Air Act-general duty and Clean Air Act-knowing endangerment, for his actions related to a 2012 explosion that injured three workers at the company’s oil processing plant in Wibaux.
The government alleged that the court gave Margiotta three extensions of time to self-report to prison, with the third deadline for self-reporting to the Bureau of Prisons’ SeaTac Facility in Seattle, Washington, on or before Jan. 15, 2021. Margiotta failed to self-surrender by Jan. 15. Margiotta turned himself into law enforcement authorities in Sweetgrass on March 25.
Assistant U.S. Attorney Bryan T. Dake and Eric E. Nelson, Special Assistant U.S. Attorney, prosecuted the case, which was investigated by the Environmental Protection Agency and Department of Transportation.
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Former Bethel Principal Sentenced to 15 Years for Trying to Sexually Entice a MinorRead the Press Release
ANCHORAGE – A Bethel, Alaska, man was sentenced by U.S. Chief District Judge Timothy M. Burgess to 15 years in federal prison followed by a lifetime of supervised release for trying to sexually entice a minor.
According to court documents Christopher Allen Carmichael, 57, a former principal working in the Lower Kuskokwim School District in Bethel, pled guilty in November 2020 to attempted coercion and enticement of a minor to engage in sexual activity.
Carmichael became the subject of a federal investigation in November 2019 when the Bethel Police Department contacted the FBI concerning Carmichael’s online activities. During the investigation, Carmichael began engaging in graphic sexual communications with an undercover FBI agent posing as a fictional 13-year-old girl. In a series of text messages in December 2019, Carmichael graphically described several sexually explicit acts he would do to her. Carmichael continued to remind the fictional 13-year-old girl to delete their messages and that it was important they keep referring to her like she was 18 so that he wouldn’t get into trouble.
“With today’s sentencing we have removed this predator from the community and sent a resounding message that we are committed to aggressively prosecuting anyone who seeks to exploit children,” said Acting U.S. Attorney Bryan Wilson, District of Alaska.
“No child should ever have to go through this. Parents and communities entrusted Carmichael with a great responsibility, but he abused that position of trust in the most disgraceful way imaginable,” said Robert Britt, Special Agent in Charge of the FBI Anchorage Field Office. “Carmichael will now be held accountable for his horribly disturbing conduct.”
The FBI’s Child Exploitation and Human Trafficking Task Force, the Bethel Police Department, the Alaska State Troopers, and the Anchorage Police Department conducted the investigation leading to the successful prosecution of the case.
Assistant U.S. Attorney Daniel Doty prosecuted the case.
This case is part of the Rural Alaska Anti-Violence Enforcement Network (RAAVEN) initiative to increase engagement, coordination and action on public safety in Alaska Native communities. Led
by the U.S. Attorney’s Office, it encourages extensive collaboration among law enforcement at all levels, rural communities, Alaska Native groups, victim service organizations and care providers.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices, Project Safe Childhood combines 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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Florida Department of Children and Families Agrees to Pay $17.5 Million to Resolve False Claims Act Liability in Connection with Snap Quality ControlRead the Press Release
The Florida Department of Children and Families (FDCF) has agreed to pay the United States $17,500,000 to resolve allegations that it violated the False Claims Act in its administration of the U.S. Department of Agriculture’s (USDA) Supplemental Nutrition Assistance Program (SNAP), the Department of Justice announced today. Until 2008, SNAP was known as the Food Stamp Program.
Under SNAP, USDA provides eligible low-income individuals and families with financial assistance to buy nutritious food. Since 2010, SNAP has served on average more than 45 million Americans per month, and provided more than $71 billion annually.
“SNAP provides important benefits to help families in need,” said Acting Assistant Attorney General Brian M. Boynton of the Department of Justice’s Civil Division. “This settlement is an example of the department’s commitment to ensuring that taxpayer funds are spent appropriately so that the public can have confidence in the integrity of vital programs like SNAP.”
Although the federal government funds SNAP benefits, it relies on the states to determine whether applicants are eligible for benefits, to administer those benefits, and to perform quality control to ensure that eligibility decisions are accurate. The USDA requires that the states’ quality control processes ensure that benefits are correctly awarded, are free from bias, and accurately report states’ error rates in making eligibility decisions.
The USDA reimburses states for a portion of their administrative expenses in administering SNAP, including expenses for providing quality control. It also pays performance bonuses to states that report the lowest and the most improved error rates each year, and can impose monetary sanctions on states with high error rates that do not show improvement.
The settlement resolves allegations that beginning in 2010, FDCF implemented policies and practices to reduce its SNAP error rate by submitting false information to USDA. Specifically, the United States alleged FDCF injected bias into its quality control process that resulted in FDCF submitting false quality control data and information to USDA, for which it received unentitled performance bonuses for fiscal years 2011 and 2012. In addition to its payment of $17.5 million, FDCF has also agreed to forego payment of an additional $14.7 million in unpaid bonuses USDA awarded for fiscal years 2013 and 2014.
Joseph H. Harrington, Acting U.S. Attorney for the Eastern District of Washington said, “While it is shocking these claims where submitted by the Florida Department of Children and Families, the state agency entrusted with assisting vulnerable and needy individuals, I commend the agency for correcting its conduct, cooperating with our investigation, and resolving its liability for its past actions. Together with our partners in the Justice Department’s Civil Division and the USDA, we will continue to investigate and hold accountable those who misuse and wrongfully obtain SNAP funding.”
This is the eighth settlement in this matter, and the seventh settlement with a state agency for manipulating its SNAP quality control findings. The United States has reached previous settlements with state agencies in Virginia, Wisconsin, Texas, Louisiana, Alaska and Mississippi, as well as with Osnes Consulting and its owner, Julie Osnes. Including this settlement, the United States has now recovered over $60 million in connection with this investigation.
The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the Eastern District of Washington, with investigative support from USDA, Office of the Inspector General. The investigation arose out of a nationwide audit of SNAP Quality Control processes by the USDA-OIG.
“We appreciate the commitment and investigative assistance provided by our partners at the Department of Justice’s Civil Division and the U.S. Attorney’s Office throughout this multi-state investigation,” said Special Agent in Charge Bethanne M. Dinkins of the USDA, Office of Inspector General (OIG). “We also wish to note the technical assistance provided by our colleagues in the Office of Audit at OIG. During the investigation, conducted by OIG’s Northeast Regional Office, we worked together to address the concerns of employees of multiple states and others who alleged that the integrity of the SNAP quality control process was weakened by third-party consultants and/or the implementation of methods that injected bias into the QC process. These concerned individuals reported that cases were not being treated in a consistent manner, and that certain advice from consultants and/or the implementation of certain methods resulted in identified errors being diminished rather than used to improve eligibility determinations. The settlements reached to date send a strong message regarding the Government’s commitment to work across agency lines to protect the integrity of SNAP.”
The matter was handled by Assistant U.S. Attorneys Dan Fruchter and Tyler Tornabene of the Eastern District of Washington and by Don Williamson, Senior Trial Counsel of the Fraud Section of the Department of Justice, Civil Division, Commercial Litigation Branch.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Federal Inmate Sentenced to Additional Prison Time for Assault on GuardRead the Press Release
ST. PAUL, Minn. – A federal inmate was sentenced today to an additional 18 months in prison followed by three years of supervised release for assaulting a federal prison guard.
According to court documents, on May 29, 2020, Charles Marquis Mitchell, 28, an inmate at the Federal Correctional Institution in Sandstone, Minnesota, obtained and ingested a synthetic drug and began shouting and acting erratically. Mitchell struck one inmate with a closed fist and shoved another inmate into a wall. Mitchell did not comply with the prison guards’ orders to lay on the ground and instead lunged towards them, striking one guard in the head and face with a closed fist.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Susan Richard Nelson sentenced the defendant. The sentence was imposed to run consecutively to the sentence Mitchell is currently serving.
This case was the result of an investigation conducted by the FBI.
Assistant U.S. Attorney Lindsey E. Middlecamp prosecuted the case.
Father and Son Drug Dealers Found Guilty of Distribution of Methamphetamine and HeroinRead the Press Release
A father and son duo dealing methamphetamine and heroin around Mason City were convicted by a jury on July 9, 2021 after a three-day trial in federal court in Cedar Rapids.
Charlton Maxwell, age 60, and his son, Antione Maxwell, age 33, from Mason City, Iowa were convicted of one count of conspiracy to distribute methamphetamine and heroin. Antoine Maxwell was also convicted of three counts of distribution of methamphetamine, and one count of distribution of heroin. In addition to the conspiracy conviction, Charleton Maxwell was convicted of two counts of distribution of heroin, and one count of distribution of heroin and methamphetamine. The verdict was returned Friday, July 9, 2021.
The evidence at trial showed that Antione and Charleton Maxwell conspired to distribute large quantities of methamphetamine and heroin in and around Mason City between January 2018 and October 2020. Both Charleton and Antione were caught distributing methamphetamine and heroin. Testimony at trial showed that both defendants were involved in a long-term conspiracy involving numerous others to distribute pounds of methamphetamine as well as heroin in the Mason City area.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Antione and Charlton Maxwell both remain in custody of the United States Marshal pending sentencing.
For conspiracy to distribute methamphetamine and heroin, Antione Maxwell faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, and 10 years up to life of supervised release following any imprisonment.
For the two counts of distribution of 5 grams or more of pure methamphetamine, Antione Maxwell faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and 8 years up to life of supervised release following any imprisonment for each count.
For distribution of 50 grams or more of pure methamphetamine, Antione Maxwell faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, and ten years up to life of supervised release following any imprisonment.
For distribution of heroin, Antione Maxwell faces a possible maximum sentence of 30 years’ imprisonment, a $2,000,000 fine, and three years up to life of supervised release following any imprisonment.
For conspiracy to distribute methamphetamine and heroin, Charleton Maxwell faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $5,000,000 fine, and four years up to life of supervised release following any imprisonment.
For distribution of three counts of distributing heroin, Charleton Maxwell faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, and three years up to life of supervised release following any imprisonment, for each count.
The case is being prosecuted by Assistant United States Attorney Jack Lammers and was investigated by the North Central Iowa Drug Task Force, the Cerro Gordo Sheriff’s Office, the Mason City Police Department, the Iowa Division of Narcotics Enforcement, and the Clear Lake Police department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3044.
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Dominican National Arrested for Misusing a Social Security NumberRead the Press Release
BOSTON – A Dominican national was arrested today and charged with fraudulently using someone else’s Social Security number.
Angel Manuel German Familia, 38, who previously resided in North Andover, was charged with one count of false representation of a Social Security number and one count of aggravated identity theft. Following an initial appearance before Chief U.S. Magistrate Judge M. Page Kelley, German Familia was detained pending a detention hearing.
According to the charging documents, in 2016, German Familia fraudulently applied to renew a driver’s license at the Massachusetts Registry of Motor Vehicles using the name, date of birth and Social Security number of a United States citizen. German Familia also allegedly applied for MassHealth benefits and opened bank accounts in the victim’s name. It is alleged that German Familia was using the stolen identity since as early as 2009 and had submitted a Social Security card and birth certificate in the victim’s name in a previous RMV application.
The investigation was conducted by Homeland Security’s Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from various local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
The charge of false representation of a Social Security number provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of at least two years in prison to be served consecutively to any other sentence imposed, up to one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Division made the announcement today. Valuable assistance was provided by the Massachusetts State Police; U.S. Department of State’s Diplomatic Security Service; U.S. Health and Human Services, Office of Inspector General; and the North Andover Police Department. Assistant U.S. Attorney Fred M. Wyshak III, of Mendell’s Criminal Division, is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Detroit Resident Sentenced in COVID-19 Fraud SchemeRead the Press Release
DETROIT - Detroit resident Darrell Baker was sentenced to 24 months in federal prison on charges of bank fraud and money laundering arising out of a $590,000 Covid-19 fraud scheme, announced Acting United States Attorney Saima Mohsin.
Joining in the announcement were Special Agent in Charge Timothy Waters, Federal Bureau of Investigation and Inspector General Hannibal Mike Ware of the Small Business Administration’s Office of Inspector General.
Darrell Baker, 56, pleaded guilty in September, 2020 to one count of bank fraud arising from his effort to obtain some $590,000 by defrauding a Pennsylvania financial institution in the issuance of a “Paycheck Protection Program” (PPP) loan. Baker also pleaded guilty to one count of money laundering, the result of financial transactions he engaged in with the fraudulently obtained funds.
“Mr. Baker treated the PPP like his own personal bank account,” said Acting US Attorney Mohsin. “This defendant’s actions caused the diversion of essential funds earmarked for legitimate businesses suffering due to the COVID-19 pandemic for his own personal gain. We are committed to ensuring that anyone who takes advantage of the system will be prosecuted.”
"By illegally taking money from the Paycheck Protection Program, Mr. Baker harmed the owners and employees of small businesses struggling through the pandemic," said Timothy Waters, Special Agent in Charge of the FBI in Detroit. "The FBI is committed to working with our law enforcement partners to investigate and hold accountable anyone taking advantage of a global pandemic to line their own pockets."
Baker acknowledged in his plea agreement to applying for and obtaining a $590,000 PPP loan on behalf of a purported business that he owns, called “Motorcity Solar Energy, Inc.” The PPP is a program managed by the Small Business Administration (SBA) that provides loans to help businesses keep their workforces employed during the pandemic. The SBA forgives the loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. The PPP loans are funded from participating banks, in this case Customers Bank in Pennsylvania.
Baker submitted paperwork with his loan application representing that Motorcity Solar Energy Inc. had 68 employees and, in 2019 paid wages, tips, and other compensation totaling $2.8 million. All of these representations were in fact false. Motor City Solar Energy had no employees, no payroll expenses of any kind, and was not an operational business. Baker submitted these false statements as part of a scheme to intentionally defraud Customers Bank.
Baker managed to withdraw approximately $172,000 of the $590,000 loan he obtained before Baker’s own financial institution froze the remainder, which was ultimately returned to Customer’s Bank. Baker used the funds he did obtain to purchase four cashier’s checks, and used the four checks to purchase two Cadillac Escalades, a Dodge Charger, and a Hummer. Mr. Baker was ordered to forfeit these vehicles. Baker was also ordered to pay a money judgment in the amount of $172,484.40, which represents the portion of the loan that Baker obtained before his fraud was uncovered and the balance of the loan frozen as well as pay restitutuion in the amount of $89,864..
The case was prosecuted by Assistant United States Attorney John K. Neal. The investigation was conducted jointly by the FBI and the SBA-OIG.
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.
Denton County Woman Sentenced to 15 Years in Federal Prison for Wire FraudRead the Press Release
SHERMAN, Texas – A Prosper, Texas woman has been sentenced to 15 years in prison for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Kaci Brianne Stephens, 41, pleaded guilty on Feb. 26, 2021 to wire fraud and was sentenced to 180 months in federal prison on July 6, 2021 by U.S. District Judge Amos L. Mazzant, III. Stephens was also ordered to pay restitution of $11,528.26.
“The public cannot, and should not, tolerate any person who abuses professional trust for their own personal gain,” said Acting U.S. Attorney Nicholas J. Ganjei. “Thanks to our good partnership with IRS-CI, we were able to stop this fraud and hopefully prevent even more people being victimized.”
“The defendant’s hefty sentence reflects the severity of her multiple violations of basic fiduciary responsibility while working as a trusted customer service representative,” stated Acting Assistant Special Agent in Charge Dan Elliott. “IRS-CI agents will continue to hold accountable corrupt employees who use their access to customers’ sensitive financial information for their own personal gain.”
According to information presented in court, between 2007 and Sep. 10, 2015, Stephens was employed by Compass Foreign Exchange, LLC as a customer service representative, responsible for establishing new customer accounts, which provided her access to customer credit card information. During this time, Stephens devised a scheme to fraudulently charge customers for her personal benefit. To facilitate the scheme, Stephens used a merchant accounting service to set up a fraudulent merchant account using another individual’s name. Stephens used that individual’s name without their consent and because she had access to their personal identifying information, including their Social Security number. Through creation of the merchant account, Stephens billed Compass customers and obtained payments by charging their credit cards for services they did not request, including setting up recurring automated payments to regularly deposit funds into her personal bank account. Stephens was indicted by a federal grand jury on June 12, 2019 and charged with federal violations.
This case was investigated by the Internal Revenue Service-Criminal Investigation and prosecuted by the Plano office of the Eastern District of Texas.
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D.C. Woman Sentenced to Prison for Stealing from Non-Profit OrganizationsRead the Press Release
WASHINGTON – Maxine Marie Williams, 49, of Washington, D.C., was sentenced today to 12 months and one day in prison for attempting to steal more than $200,000 from two former employers, both non-profit organizations in the District of Columbia.
The sentence was announced by Acting U.S. Attorney Channing D. Phillips, Daniel A. Adame, U.S Postal Inspector in Charge for the Washington Division, and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Williams worked for one non-profit organization from approximately 2015 through March 2018. Her job responsibilities included processing donation checks that were mailed to the office, and preparing and mailing checks to vendors, service providers, and individuals. According to the government’s evidence, from November 2015 through March 2018, she stole 171 checks totaling $161,084.23 from the organization. Most of the checks were charitable contributions that were mailed to the organization’s office in Washington. Other checks consisted of outgoing payments from the organization to vendors, service providers, and individuals. Of the $161,084.23 in stolen checks, more than $140,000 was successfully deposited into accounts associated with Williams, including a $5,000 donor check that Williams deposited at an ATM in Hyattsville, Md.
After Williams was terminated from the first organization in March 2018, she secured employment with the second organization, a non-profit trade association headquartered in Washington. Between December 2018 and June 2019, according to the government’s evidence, Williams stole 33 checks totaling $43,398.93 from the second organization. She successfully deposited more than $38,000 into her bank account.
Williams pled guilty in April 2021 in the U.S. District Court for the District of Columbia to one count of interstate transportation of stolen property. In addition to sentencing Williams to prison, Judge Amit P. Mehta ordered that she pay $179,500.57 in restitution and be liable for a forfeiture money judgment in the same amount.
In announcing the sentence, Acting U.S. Attorney Phillips, Inspector in Charge Adame and Chief Contee commended the work of those who investigated the case from the U.S. Postal Inspection Service and Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorney Kondi Kleinman, former Assistant U.S. Attorney Stephanie Miller, Financial Analyst Bryan Snitselaar, Paralegal Specialist Michon Tart, and former Paralegal Specialist Brittany Phillips.
Convicted Felon Sentenced to 10 Years in Prison on Gun and Drug ChargesRead the Press Release
BIRMINGHAM, Ala. – A federal judge yesterday sentenced a convicted felon on gun and drug charges, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Mickey French.
U.S. District Court Judge Karon O. Bowdre sentenced Brenton Damond Sims, 41, of Birmingham, to 120 months in prison on one count of possession with intent to distribute crack cocaine and one count of being a felon in possession of a firearm. Sims pleaded guilty to the charges in April.
According to the plea agreement, on July 3, 2019, the Birmingham Police Department conducted a traffic safety checkpoint at the intersection of South Park Road and Fulton Avenue in the western part of Birmingham. Sims, driving a 2004 BMW, refused to stop and proceeded through the checkpoint, nearly hitting an officer. Officers pursued Sims to the 500 block of 23rd Place, SW, where he turned down an alley, abandoned his car, and fled on foot. Officers chased Sims down the alley, and a detective observed a handgun in Sim’s right hand. Sims was found hiding under the back deck of a residence on 23rd Place, SW. A pistol was found lying in the grass just to the right of where Sims was hiding under the deck. The pistol was a Glock 23 .40 caliber semiautomatic with an extended magazine. There were 20 rounds in the magazine and one round in the chamber. Sims was also searched, and officers found three bags of marijuana, four bags of crack cocaine, and $2,045 cash on his person.
“It is a priority of my office to prosecute felons who carry firearms while possessing and dealing illegal drugs,” U.S. Attorney Escalona said. “We value the work of our Birmingham law enforcement partners to keep this community safe.”
“ATF’s partnerships with the Birmingham PD and the U.S. Attorney’s Office focuses on the devastating impact of firearms and narcotics, and works with the entire community to deter poor choices and provide alternatives,” ATF Special Agent in Charge, Mickey French said.
The ATF investigated the case along with the Birmingham Police Department. Assistant U.S. Attorney Kristy Peoples prosecuted the case.
Cedar Rapids Man Sentenced to Two Years in Prison for Possessing Mechanically Shortened WeaponRead the Press Release
A Cedar Rapids man was sentenced July 12, 2021, to two years in federal prison for possessing a mechanically shortened weapon.
Philip Maccani, age 50, from Cedar Rapids, Iowa, received the prison term after a guilty plea to possessing an unregistered National Firearms Act firearm, specifically a weapon made from a shotgun with an overall length of less than 26 inches. Evidence at sentencing demonstrated that the stock had been altered to shorten the weapon’s overall length.
The judge noted that weapons like the one Maccani possessed were more dangerous than other weapons because they are both easier to conceal and more difficult to aim and control. The judge also noted the bravery of one of the deputies from the Linn County Sheriff’s Office, who tried to de-escalate a dangerous situation by giving his rifle to another officer before approaching Maccani without knowing whether Maccani was then armed.
Maccani was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Maccani was sentenced to 24 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. Maccani is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was prosecuted by Assistant United States Attorney Jake Schunk and investigated by the Linn County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-00090-CJW-MAR.
Follow us on Twitter @USAO_NDIA.
Butte meth trafficker sentenced to 10 years in prisonRead the Press Release
MISSOULA – A Butte man who admitted trafficking drugs, including methamphetamine, in Montana and to receiving meth through the mail in Butte, was sentenced today to 10 years in prison to be followed by five years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Charles Joshua Petty, 31, pleaded guilty on March 15 to possession with intent to distribute controlled substances. Petty also was ordered to forfeit $8,500 seized in the case.
U.S. District Judge Dana L. Christensen presided.
The government alleged in court documents that Petty received meth from individuals in California and elsewhere, including through the mail in Butte, for distribution. The investigation determined that Petty and others would wire money back to California and to Sinaloa, Mexico, to pay for the meth. The government further alleged that investigators learned from cooperators that Petty received approximately 10 pounds of meth in January 2019. Ten pounds of meth is the equivalent of approximately 36,240 doses. A co-defendant, Shawn Miller, was sentenced to five years in prison for his role in the case.
Assistant U.S. Attorney Ryan G. Weldon prosecuted the case, which was investigated by the Drug Enforcement Administration, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, Montana Division of Criminal Investigation and the Butte Police Department.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Buffalo Man First Defendant to Be Sentenced in Fentanyl Trafficking RingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Christopher Cook, 30, of Buffalo, NY, who was convicted of conspiracy to distribute fentanyl, was sentenced to serve 30 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Jeremiah E. Lenihan, who is handling the case, stated that in October 2019, law enforcement began an investigation into the drug trafficking activities of the defendant and co-defendants Mark Greaman, Damone McNamee, Sr. and Brian Ray, in the area of Broadway Avenue and Strauss Street in Buffalo. Investigators made 40 controlled purchases of fentanyl, heroin, butyryl fentanyl, acetyl fentanyl, and furanyl fentanyl from all four defendants, including five controlled purchases from defendant Cook.
Co-defendants Mark Greaman, Damone McNamee, Sr. and Brian Ray were previously convicted and are awaiting sentencing.
The sentencing is the result of an investigation by the New York State Police, under the direction of Major James Hall, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
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Brockton Man Sentenced for Drug TraffickingRead the Press Release
BOSTON – A Brockton man was sentenced today in federal court in Boston for his role in a drug trafficking conspiracy.
Carlos Antunes, 36, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 65 months in prison and four years of supervised release. On March 11, 2021, Antunes pleaded guilty to two counts of a multi-count indictment charging him with conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin, 400 grams or more of fentanyl, cocaine, cocaine base, oxycodone, and marijuana, and one count of possession with intent to distribute fentanyl.
According to court documents, in the fall of 2018, law enforcement agents began investigating a Brockton drug crew headed by Djuna Goncalves. The investigation revealed that Goncalves worked with Antunes and others to distribute large quantities of fentanyl, cocaine, cocaine base, heroin and marijuana throughout southeastern Massachusetts. Agents intercepted telephone calls and observed meetings between Goncalves and Antunes where Antunes ordered fentanyl from Goncalves. On Oct. 12, 2018, agents seized fentanyl from a customer of Antunes shortly after Goncalves and Antunes delivered the fentanyl to him.
Antunes and Goncalves were indicted along with 15 others in a wide-ranging drug conspiracy that included members of Goncalves’s Brockton crew and several Boston-based drug traffickers who supplied Goncalves with controlled substances. Of the 17 defendants named in the indictment, 11, including Antunes, have pleaded guilty. Antunes is the ninth defendant to be sentenced in the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Acting United States Attorney Nathaniel R. Mendell; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorneys Christopher Pohl and Alathea Porter of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Brockton Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
BOSTON – A Brockton man pleaded guilty today to his role in a conspiracy to distribute fentanyl throughout southeastern Massachusetts.
Filomeno Monteiro, 31, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl and one count of distribution of fentanyl. U.S. District Court Judge Patti B. Saris scheduled sentencing for Oct. 28, 2021.
According to court records, in 2019 and 2020, law enforcement conducted an investigation into fentanyl traffickers operating in southeastern Massachusetts. In December 2019, Monteiro worked with co-defendant Christian Collins to distribute 20 grams of fentanyl to a cooperating witness and undercover police officer at a location in Plympton. At the time of the offense, Monteiro was on probation for a prior Plymouth Superior Court conviction for kidnapping and aggravated assault and battery. Monteiro was previously convicted twice in state court of possession with intent to distribute cocaine and heroin and possession with intent to distribute marijuana.
Collins pleaded guilty on June 23, 2021 and is scheduled to be sentenced on Sept. 28, 2021.
The charge of conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl provides for a sentence of up to 40 years in prison, a minimum of four years of supervised release and a fine of up to $5 million. The charge of distribution of fentanyl provides for a sentence of up to 30 years in prison, up to six years of supervised release and a fine of up to $2 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Brockton Police Chief Emanuel Gomes; East Bridgewater Police Chief Paul O’Brien; John Gibbons, U.S. Marshal for the District of Massachusetts; and Plymouth County District Attorney Timothy Cruz made the announcement today. Assistant U.S. Attorney Christopher Pohl of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
Bergen County Man Sentenced to 16 Months in Prison for Using Online Web Forums to Engage in CyberstalkingRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 16 months in prison for using Facebook and other online web forums to cyberstalk victims, Acting U.S. Attorney Rachael A. Honig announced.
Rino Diamante, 26, of Bergenfield, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge William J. Martini to an information charging him with one count of cyberstalking. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Diamante admitted that from January 2016 through August 2019 he engaged in continued online harassment of known and unknown adult victims, including Victims 1-23, by posting semi-nude or nude pictures purporting to be the victims on online web forums such as 4Chan.com and volafile. Diamante also admitted to contacting the victims, their friends and their family members to direct those individuals to the online web forums that contained the purported nude or semi-nude photographs of the victims.
In addition to the prison term, Judge Martini sentenced Diamante to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Cassye Cole of the U.S. Attorney’s Office’s Criminal Division in Newark.
Bank CEO Stephen M. Calk Convicted of Corruptly Soliciting A Presidential Administration Position in Exchange for Approving $16 Million in LoansRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that STEPHEN M. CALK was convicted of financial institution bribery and conspiracy to commit financial institution bribery, for corruptly using his position as the head of a federally-insured bank to issue millions of dollars in high-risk loans to Paul Manafort in exchange for a personal benefit: CALK’s placement on a 2016 presidential campaign and assistance from Manafort in trying to obtain a senior position with the incoming presidential administration. CALK was convicted following a three-week trial before U.S. District Judge Lorna G. Schofield.
Manhattan U.S. Attorney Audrey Strauss said: “A unanimous jury convicted Stephen M. Calk of approving millions of dollars in high-risk loans to Paul Manafort in an effort to secure a personal benefit, namely a high-profile spot on the presidential campaign and appointment as Secretary of the Army or another similarly high-level position in the incoming presidential administration. Calk used the federally-insured bank he ran as his personal piggybank to try and buy himself prestige and power. Today’s verdict sends the message that corruption at the highest levels of federally regulated financial institutions will be prosecuted by this Office.”
As reflected in the Indictment, documents previously filed in the case, and evidence introduced at trial:
CALK, The Federal Savings Bank, and Paul Manafort
STEPHEN M. CALK was the chairman and chief executive officer of The Federal Savings Bank, a federal savings association headquartered in Chicago, Illinois, with an office in New York, New York (the “Bank”). The Bank was owned in its entirety by National Bancorp Holdings, a Chicago-based bank holding company (the “Holding Company”), and CALK was the chairman, chief executive officer, and owner of approximately 67% of the Holding Company.
Paul Manafort was a lobbyist and political consultant. Beginning in or about March 2016, Manafort held a senior role with a 2016 presidential campaign (the “Presidential Campaign”), and from June 2016 through August 2016, he served as chairman of the Presidential Campaign. After Manafort’s formal role with the Presidential Campaign concluded in or about August 2016, Manafort continued to be informally involved in the campaign. Beginning in or about November 2016, when the candidate was elected President of the United States, Manafort provided informal input to the presidential transition team (the “Presidential Transition Team”).
The Corrupt Scheme
Between in or about July 2016 and January 2017, CALK engaged in a corrupt scheme to exploit his position as the head of the Bank and the Holding Company in an effort to secure a valuable personal benefit for himself, namely, Manafort’s assistance in obtaining for CALK a senior position in the presidential administration. During this time period, Manafort sought millions of dollars in loans from the Bank. CALK understood that Manafort urgently needed these loans in order to terminate or avoid foreclosure proceedings on multiple properties owned by Manafort and Manafort’s family. Further, CALK believed that Manafort could use his influence with the Presidential Transition Team to assist CALK in obtaining a senior administration position.
CALK thus sought to leverage his control over the Bank and the loans sought by Manafort to his personal advantage. Specifically, CALK offered to, and did, cause the Bank and Holding Company to extend $16 million in loans to Manafort in exchange for Manafort’s requested assistance in obtaining a high-level position in the presidential administration. For example, and while Manafort’s loans were pending approval, CALK provided Manafort with a ranked list of the governmental positions he desired, which started with Secretary of the Treasury, and was followed by Deputy Secretary of the Treasury, Secretary of Commerce, and Secretary of Defense, as well as 19 ambassadorships similarly ranked and starting with the United Kingdom, France, Germany, and Italy.
In approving these loans to Manafort, CALK was aware of significant red flags regarding Manafort’s ability to repay the loans, such as his history of defaulting on prior loans. Moreover, given the size of the loans, Manafort’s debt became the single largest lending relationship at the Bank. In order to enable the Bank to issue these loans without violating the Bank’s legal limit on loans to a single borrower, CALK authorized a maneuver never before performed by the Bank, in which the Holding Company—which CALK also controlled—acquired a portion of the loans from the Bank.
During the same time period, Manafort provided CALK with valuable personal benefits. First, in or about the summer of 2016, during the Presidential Campaign—and just days after CALK and the rest of the Bank’s credit committee conditionally approved a proposed $9.5 million loan to Manafort — Manafort appointed CALK to a prestigious economic advisory committee affiliated with the campaign. And second, in or about late November and early December 2016—after the candidate had been elected President, after Manafort’s first loan from the Bank had been issued, and while a second set of loans worth $6.5 million sought by Manafort was pending approval by the Bank— Manafort used his influence with the Presidential Transition Team to assist Calk, recommending CALK for an administration position. Due to Manafort’s efforts, CALK was formally interviewed for the position of Under Secretary of the Army on January 10, 2017 at the Presidential Transition Team’s principal offices in New York, New York. CALK was not ultimately hired.
To conceal the unlawful nature of his scheme, CALK made false and misleading statements to the OCC regarding the loans to Manafort. For example, CALK falsely stated to the OCC regulators that he had not known that the Manafort’s properties had been in foreclosure prior to issuing the loans. CALK also stated that he had never desired a position in the presidential administration.
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CALK, 56, was found guilty of one count of financial institution bribery, which carries a maximum sentence of 30 years in prison, and one count of conspiracy to commit financial institution bribery, which carries a maximum sentence of 5 years in prison. CALK is scheduled to be sentenced on January 10, 2022.
Ms. Strauss praised the outstanding investigative work of the FBI and FDIC OIG.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Paul M. Monteleoni, Hagan Scotten, and Alexandra N. Rothman are in charge of the prosecution.
Baltimore Man Sentenced to Five Years in Federal Prison for Participating in a Conspiracy to Distribute Crack CocaineRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Victor Davis, age 41, of Baltimore, Maryland, to five years in federal prison, followed by four years of supervised release, for conspiracy to distribute and posses with the intent to distribute crack cocaine base. As part of his plea agreement, Davis admitted that during his participation in the conspiracy the members of the drug conspiracy distributed between 28 grams and 112 grams of crack cocaine.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, from December 2019 through September 29, 2020, Davis conspired with at least two others to distribute crack cocaine in the area of the 2600 block of Greenmount Avenue and the 400 block of East Lorraine Avenue in Baltimore, Maryland, where Davis’s drug trafficking organization (DTO) operated a “drug shop.” Members of the DTO, including Davis, conducted multiple hand-to-hand sales of drugs to confidential informants.
Davis admitted that he sold crack cocaine to confidential informants on four different occasions. For example, on January 30, 2020, Davis sold two clear bags of crack cocaine to a confidential informant in exchange for $300. In February 2020, a witness observed Davis in a home in the 400 block of East Lorraine Avenue preparing crack cocaine for street-level distribution and discussed future purchases of narcotics. The witness also saw several guns in the home. Davis admitted that the firearms were used to protect the DTO business and, therefore, were possessed in furtherance of the drug conspiracy.
As detailed in the plea agreement, Davis sold a confidential informant two bags of crack cocaine base $600 on February 26, 2020 and again March 4, 2020. On March 18, 2020, the confidential informant purchased four bags of crack cocaine from Davis for $650 and discussed a potential firearm transaction. Davis told the confidential informant that he possessed a “joint,” which is a slang term for a firearm.
Davis admitted that it is reasonably foreseeable to him that the members of the drug conspiracy distributed between 28 grams and 112 grams of crack cocaine.
Acting United States Attorney Jonathan F. Lenzner commended the ATF and the Baltimore City Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Lindsey McCulley and Zachary B. Stendig, and Special Assistant U.S. Attorney Lindsay DeFrancesco who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Acting U.S. Attorney Kaufman Announces Drug Summit Agenda, Invites Participation in Person or via ZoomRead the Press Release
PITTSBURGH – The 2021 Western Pennsylvania Drug Summit will take place on Wednesday, July 14. 2021, from 6:15 p.m. to 8:15 p.m. at the Fred Rogers Center on the campus of St. Vincent College in Latrobe, PA, Acting United States Attorney Stephen R. Kaufman announced today. This event is a free in-person public forum. People may also attend via Zoom at https://stvincent-edu.zoom.us/j/98611228340?pwd=Sk5PszRoMFMwN1ArMGVcU5WRDFDZz09 with the passcode aUaC3K. The agenda follows:
6:15 p.m. Welcome
Acting U.S. Attorney Stephen R. Kaufman
Westmoreland County District Attorney John Peck
Prof. Bruce Antkowiak J.D., Saint Vincent College6:20 p.m. Keynote Address (Pre-recorded)
Regina LaBelle, Acting Director, White House Office of National Drug Control Policy6:40 p.m. Emerging Drug Trafficking Trends
Moderator: Troy Rivetti, Criminal Division Chief, U.S. Attorney’s Office
Panelists: Emily Lockhart, Senior Forensic Chemist, DEA
Steve Denhup, Intelligence Group Supervisor, DEA
Josh Yohannon, Criminal Analyst, Homeland Security Investigations
Ken Bacha, Westmoreland County Coroner7:00 p.m. Best Practices in Treating Addiction
Moderator: Ira Karoll, Assistant U.S. Attorney, U.S. Attorney’s Office
Panelists: Eric Kocian, Ph.D., Associate Professor, St. Vincent College
Tim Phillips, Director, Westmoreland Co. Drug Overdose Task Force
Judge Meagan Bilik-DeFazio, Westmoreland County Court of Common Pleas, Drug Diversion Court
Stephanie T., Westmoreland County Drug Diversion Court GraduateThe Summit is sponsored by the U.S. Attorney’s Office for the Western District of Pennsylvania, the Westmoreland County District Attorney’s Office, St. Vincent College, and the Westmoreland County Overdose Task Force.
Monday 12 July 2021
Whittier Man Sentenced to Nearly 20 Years in Child Pornography CaseRead the Press Release
LOS ANGELES – A federal judge today imposed a prison sentence of nearly 20 years on a Whittier man who admitted exchanging child pornography – some of which involved infants and toddlers – with others on the internet.
Fred Joseph Stecher Jr., 29, was sentenced to serve 235 months in a federal prison for distribution of child pornography. Once he completes his sentence, Stecher will be placed on supervised release for the rest of his life. United States District Judge R. Gary Klausner also ordered Stecher to pay a total of $55,000 in restitution to 11 victims.
Stecher – who used several online aliases, including “smellyguy1991” and “little_tyke1991” – pleaded guilty in March to one count of distributing child pornography, which followed a prior conviction for possession of child pornography. “Despite multiple search warrants executed at his home, his probationary sentence, jail time, and completion of a sex offender treatment program, [Stecher] still committed the [latest] child exploitation offenses, demonstrating his lack of impulse control and his lack of respect for the law,” prosecutors argued in a sentencing memorandum.
During the investigation into Stecher, authorities executed a search warrant on his Yahoo! email account and found 1,263 unique images and 65 unique videos containing child pornography.
“Some of the videos and images depicted minor victims under the age of 12 being used for sexual acts, including infants and toddlers,” Stecher admitted in his plea agreement. “Some of the videos and images portrayed sadistic or masochistic sexual conduct, specifically bondage, involving minor children.”
Stecher used his Yahoo! email account to distribute the child pornography he obtained on the internet. The sentencing memo notes how Stecher engaged in online chats with other individuals interested in child pornography, discussing the types of children he liked in lurid detail and at times pretending that the children pictured were his own.
The case against Stecher was investigated by the FBI, Homeland Security Investigations, and the Los Angeles Police Department as part of the Los Angeles Internet Crimes Against Children Task Force.
Assistant United States Attorney Kathy Yu of the Violent and Organized Crime Section prosecuted this case.
Waldorf Air Force Lieutenant Facing Federal Charges for Using a Hidden Camera to Produce Child PornographyRead the Press Release
Greenbelt, Maryland – A federal criminal complaint has been filed charging U.S. Air Force Lieutenant Jason Daniel Ort, age 36, of Waldorf, Maryland, with possession and production of child pornography. The criminal complaint was filed on June 16, 2021 and unsealed on July 7, 2021 after Ort’s arrest and initial appearance in U.S District Court in Greenbelt, Maryland. Ort is detained pending trial.
The criminal complaint was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Brigadier General Terry Bullard, Commander Air Force Office of Special Investigations.
According to the criminal complaint, Ort was arrested in Syracuse, New York on October 2, 2020 for unlawful surveillance after an adult complainant informed law enforcement that they noticed a small camera placed in their bedroom on October 1, 2020. Upon further inspection, the complainant located an SD card which the complainant removed from the camera and reviewed. The complainant advised law enforcement that there was video content on the SD card allegedly depicting a minor female victim between the ages of five and eight-years-old using the restroom and showing Ort entering the bathroom and adjusting the camera.
As detailed in the criminal complaint affidavit, on October 6, 2020 an Onondaga County Court Judge issued a warrant to search Ort’s personal laptop and SD card. Onondaga County Sheriff’s Office detectives allegedly observed a video on the SD card that depicted a minor female victim between the ages of eight and ten years of age undressing and showering. Additionally, a forensic review of Ort’s laptop allegedly revealed hundreds of images of minor females in various sexual poses, child sexual abuse material, and several videos of child pornography depicting prepubescent children. A review of Ort’s SD card allegedly contained six videos of child pornography, including a ten-minute video that depicted two minor victims bathing in the shower with the assistance of an adult female.
On November 16, 2020, the Charles County Sheriff’s Office and OSI executed a search warrant at Ort’s Waldorf, Maryland residence. During the execution of the search warrant, law enforcement allegedly recovered multiple devices including two external hard drives and a laptop. A federal search warrant was subsequently executed on Ort’s seized devices. The affidavit alleges that law enforcement recovered several videos of minor victims recorded on a hidden bathroom camera as well as a compilation video comprised of adult females using the restroom. A review of the second external hard drive allegedly revealed key word searches of the terms related to child pornography. Lastly, investigators allegedly discovered a web history event for a website titled “Citizen’s Guide to U.S. Federal Law on Child Pornography”.
If convicted, Ort faces a mandatory minimum sentence of 15 years in federal prison and a maximum sentence of 30 years for production of child pornography as well as a maximum sentence of 20 years in federal prison for possession of child pornography. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended the FBI and the Air Force Office of Special Investigations for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Jessica Collins who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Virginia Return Preparer Convicted of Tax FraudRead the Press Release
A federal jury in Newport News, Virginia, convicted Karl Burden-El Bey (aka Carl L. Burden) Friday of aiding and assisting in the preparation of false tax returns, theft of government funds and failing to file federal income tax returns.
According to court documents and evidence presented at trial, Burden-El Bey, of Hampton, prepared false tax returns for clients from at least 2013 through 2019. On his clients’ returns, Burden-El Bey claimed false dependents, residential energy credits, gifts to charity, deductions, and child and dependent care expenses in order to inflate refunds obtained from the IRS. Burden-El Bey also stole $5,000 by directing a portion of his client’s refund into his personal bank account. As to his own taxes, Burden-El Bey did not file individual tax returns for 2013 through 2017 with the IRS, despite being legally obligated to do so.
Sentencing is scheduled for Dec. 7 before U.S. District Judge David J. Novak.
Burden-El Bey faces a statutory maximum sentence of 10 years in prison for theft of government funds, three years in prison for each count of aiding and assisting in the preparation of a false tax return, and one year in prison for each count of failing to file a tax return. He also faces substantial monetary penalties, supervised release and restitution at sentencing.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Department of Justice’s Tax Division and Acting U.S. Attorney Raj Parekh of the Eastern District of Virginia made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Grace Albinson and Francesca Bartolomey of the Tax Division and Assistant U.S. Attorneys Brian Samuels and Lisa McKeel of the Eastern District of Virginia prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Vice President of Investment Firm Pleads Guilty to Running Multimillion-Dollar Ponzi SchemeRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, announced the guilty plea today of NAIM ISMAIL relating to his participation in various investment schemes that defrauded victims of over $15 million. ISMAIL pled guilty before U.S. District Judge Analisa Torres.
Manhattan U.S. Attorney Audrey Strauss said: “In spinning a web of lies, Naim Ismail and his co-conspirators gained, and took advantage of, the confidence of vulnerable individual investors as well as a Manhattan-based business, bilking them of millions of dollars in the process. With today’s guilty plea, Ismail has admitted to his scheme and now faces a prison term for his conduct.”
According to the allegations in the Indictment, court filings, and statements made during court proceedings:
From February 2007 through July 2016, ISMAIL fraudulently induced individual and corporate victims – including the New York-based subsidiary of an Afghanistan-based bank – to loan large sums of money to entities operated by ISMAIL and others. ISMAIL did so by claiming that these funds would be used in a particular investment strategy as well as several real estate development projects. ISMAIL promised investors a generous fixed annual rate of return and promised to return the investors’ principal on a specified timeline. In fact, ISMAIL and his companies did not invest these funds as promised, nor did ISMAIL repay many of his victims. Instead, ISMAIL used investor funds to pay the so-called interest payments due to earlier investors in the scheme, as well as for his own personal expenses and investments.
During the course of the fraudulent scheme, ISMAIL deprived the scheme’s victims of over $15 million.
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ISMAIL, 60, formerly of Irvine, California, pled guilty to one count of conspiracy to commit 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. Sentencing before Judge Torres is scheduled for November 17, 2021, at 11:00 a.m.
Ms. Strauss praised the outstanding work of the Special Inspector General for Afghan Reconstruction and Homeland Security Investigations on this investigation.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Kiersten A. Fletcher and Jonathan E. Rebold are in charge of the prosecution.