Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 12 July 2021
Attleboro Man Sentenced for Child Pornography OffensesRead the Press Release
BOSTON – An Attleboro man was sentenced today for receipt and possession of child pornography.
Garry Bienvenue, 59, of Attleboro, was sentenced by U.S. District Court Judge F. Dennis Saylor to 10 years and one month in prison and five years of supervised release. On March 10, 2021, Bienvenue pleaded guilty to one count of receipt of child pornography and one count of possession of child pornography involving a prepubescent minor and a minor who had not attained 12 years of age.
Law enforcement learned that an internet user at Bienvenue’s Attleboro home had solicited and received child pornography from children over the internet using the Snapchat messaging application, including through the video chat feature. A search of the home resulted in the seizure of Bienvenue’s smartphone, which was found to contain child pornography videos that had been received through Snapchat, including one depicting the rape of a child as young as 3-5 years old. The investigation also revealed that Bienvenue had used a phone application to solicit and pay individuals in the Philippines to force children to participate in naked video chats with him and watch him engage in sexual conduct.
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; and Attleboro Police Chief Kyle P. Heagney made the announcement. Assistant U.S. Attorney Elianna Nuzum of Mendell’s Major Crimes Unit prosecuted the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Armstrong Man Sentenced to Federal Prison for Defrauding the United States Out of More than $1 Million in Paycheck Protection Program Fraud SchemeRead the Press Release
An Armstrong man who participated in a scheme to defraud the United States out of Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds, and conspired to launder over $1.3 million in fraud proceeds, was sentenced yesterday to more than three years in federal prison.
Donald Franklin Trosin, age 57, from Armstrong, Iowa, formerly of Champlin, Minnesota, received the prison term after a February 16, 2021 guilty plea to one count of Major Fraud Against the United States and one count of Money Laundering Conspiracy.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted in late March 2020 that provides emergency financial assistance, including PPP and EIDL loans, to the millions of Americans who are suffering the economic effects of the COVID-19 pandemic. Evidence presented at Trosin’s guilty plea and sentencing hearings established that Trosin participated in a scheme to defraud the United States out of PPP and EIDL loan funds after more than 20 applications were submitted to the Small Business Administration (SBA) in the name of Trosin and another person. The applications falsely represented that Trosin had 120 employees on his payroll and over $5 million in payroll expenses when, in truth, Trosin did not operate a business at all. Trosin also admitted that, after receiving the funds through banks in Minnesota and Northwest Iowa, he transferred or attempted to transfer the proceeds from the scheme to other individuals in other states and countries, including China.
Trosin was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Trosin was sentenced to 40 months’ imprisonment. He was ordered to make over $1.3 million in restitution to the Small Business Administration and the lender of the PPP loan. Trosin must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
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.
Trosin was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case is being prosecuted by Assistant United States Attorney Timothy L. Vavricek and was investigated by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, the Small Business Administration, Office of Inspector General, and the Treasury Inspector General for Tax Administration.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-4066.
Acting U.S. Attorney Announces Appointment of Assistant U.S. Attorney John F. Docherty to Serve as Federal Magistrate Judge in St. PaulRead the Press Release
MINNEAPOLIS – W. Anders Folk, the Acting United States Attorney for the District of Minnesota, today announced that Assistant U.S. Attorney John F. Docherty has been appointed to serve as a United States Magistrate Judge. He will sit in St. Paul.
Mr. Docherty has served in the U.S. Attorney’s Office for the District of Minnesota as an Assistant U.S. Attorney since 2002. In his capacity, Mr. Docherty prosecuted a wide range of cases, focusing on international and domestic terrorism, civil rights cases, and cases involving the illegal export of sensitive U.S. technology. Mr. Docherty also served as the Office’s Anti-Terrorism Advisory Council (ATAC) Coordinator. Between 2006 and 2008, Mr. Docherty left the U.S. Attorney’s Office temporarily to work as a prosecutor at the United Nations’ International Criminal Tribunal for the Former Yugoslavia in the Hague, the Netherlands. There, he was a senior member of the prosecution team at the trial of General Dragomir Milosevic, the commander of the troops encircling Sarajevo during the last two years of the siege of that city. Milosevic was convicted, following a nine-month trial, of war crimes and crimes against humanity.
Prior to joining the Office, Mr. Docherty worked at the Antitrust Division of the Justice Department in Washington, D.C. before returning to Minnesota to join the Office of the Minnesota Attorney General, where, under Attorney General Hubert H. Humphrey III, he worked in the Antitrust Division and the Criminal Division. Mr. Docherty graduated with honors from the University of Minnesota Law School. He is a current member and past President of the Warren E. Burger American Inn of Court, and a member of the Minnesota Chapter of the Federal Bar Association.
Acting U.S. Attorney W. Anders Folk said: “I am proud that John Docherty has been selected to serve as a Magistrate Judge for the District of Minnesota. John is an excellent AUSA who handled some of our Office’s most difficult and complex cases. I know John will bring the same sense of justice and fairness to the bench that he brought to his work as a federal prosecutor. The people of the District of Minnesota will be well-served by his ongoing commitment to justice.”
Friday 9 July 2021
Woman Arrested on Federal Drug Charge After Allegedly Selling Cocaine While on Vacation in ChicagoRead the Press Release
CHICAGO — A woman has been arrested on a federal drug charge after allegedly selling two kilograms of cocaine while vacationing in Chicago this week.
MARINA RIVERA, 33, sold the cocaine Wednesday evening in the 3200 block of South Komensky Avenue in the Little Village neighborhood of Chicago, according to a criminal complaint filed in U.S. District Court in Chicago. Unbeknownst to Rivera, the buyer was cooperating with law enforcement, who conducted surveillance on the transaction, the complaint states. Rivera was arrested shortly thereafter.
Rivera was staying in a nearby residence this week while on vacation in Chicago from Mexico, the complaint states. Law enforcement searched the residence and discovered approximately eight kilograms of cocaine inside a suitcase in the bedroom where Rivera was staying, the complaint states.
The complaint charges Rivera with one count of possession of a controlled substance with intent to distribute. She made an initial appearance in federal court Thursday and was ordered to remain detained in federal custody. A detention hearing is set for July 14, 2021, at 1:30 p.m., before U.S. Magistrate Judge Heather K. McShain.
The arrest and complaint were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert J. Bell, Special Agent-in-Charge of the Chicago Division of the U.S. Drug Enforcement Administration. The government is represented by Assistant U.S. Attorneys Andrew J. Dixon and Megan DeMarco.
The drug charge is punishable by a maximum sentence of life in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Virginia Diagnostic Testing Lab Agrees to Pay $1.4 Million to Resolve False Claims Act AllegationsRead the Press Release
NEWARK, N.J. – A Virginia diagnostic laboratory will pay $1.4 million to resolve allegations that it violated the False Claims Act by submitting or causing to be submitted claims for genetic tests to Medicare without valid physician oversight, Acting U.S. Attorney Rachael A. Honig announced today.
According to the contentions of the United States contained in the settlement agreement:
From July 2014 to September 2015, Genetworx Laboratories utilized the services of Seth Rehfuss as a sales representative who persuaded groups of senior citizens in senior housing complexes to submit to genetic testing, despite applicable Medicare rules requiring proper orders from a treating physician for such tests. Genetworx, in turn, submitted claims for payment to Medicare for Rehfuss’s genetic tests performed without valid physician oversight.
Rehfuss, of Somerset, New Jersey, previously pleaded guilty in Trenton federal court to a superseding information charging him with conspiracy to commit health care fraud and was sentenced in May 2019 to 50 months in prison.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas J. Mahoney; and the Cape May County Department of Aging and Disability Services, with the investigation leading to the settlement.
The government is represented by Assistant U.S. Attorney Daniel Meyler of the Health Care Fraud Unit in Newark.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
U.S. Attorney’s Office for the District of Columbia and Partners Present Annual Youth SummitRead the Press Release
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia teamed up with several local and federal law enforcement partners and community-based organizations today to present the Annual “Breaking the Silence on Youth Violence” Youth Summit. Due to continued COVID-related social distancing, the Summit was again presented virtually – this year, to more than 250 youth participants.
Acting U.S. Attorney Channing D. Phillips welcomed youth participants, commending them for their “persistence in pursuing [their] aspirations despite the challenges that may arise.” “[D]uring the past year-and-a-half, in the midst of the COVID-19 pandemic, [you] have faced challenges and hardships, but you continue to show your resolve in not only achieving personal success, but in helping to make your community a better place to live,” Phillips remarked. Acting U.S. Attorney Phillips also awarded one of three 2021 United States Attorney Office’s Youth Citizenship Awards to Ronald Woods II. Brandi Ling and Emon Thompson, who appeared remotely to accept the Award, also were recipients of the USAO Youth Citizenship Award.
Each year, the free Summit focuses on gun violence and mental health issues, and features dynamic speakers, entertainment, prizes, and invaluable information and resources. For the past ten years, the U.S. Attorney’s Office has collaborated with its partners to host the Youth Summit. Past Summits have included sessions that highlighted the causes and consequences of youth violence, challenged youth participants to make better decisions, and emphasized the importance of cooperating with law enforcement.
This year’s Youth Summit focused on prevention of gun violence, opioid abuse, and sex trafficking. Emceed by local celebrity DJ Flava, the Summit featured Metropolitan Police Chief Robert J. Contee III; Tia Bell, founder of the T.R.I.G.G.E.R. Project; domestic sex trafficking survivor Tina Frundt, founder of Courtney’s House; and Catie Drew, DEA Scientist and Senior Prevention Program Manager, among other speakers. Assistant U.S. Attorney Kenya Davis shepherded youth participants through a discussion of human trafficking.
Summit partners this year included the D.C. Prevention Center; the East of the River Family Strengthening Collaborative; Hillcrest Children and Family Center; the Court Services and Offender Supervision Agency; the Marion Barry Summer Youth Program; the DC Metropolitan Police Department; the DC Department of Parks and Recreation; the DC Department of Behavioral Health; Advocates for Justice and Education Inc.; the DC Parent Information & Training Center; University Legal Services of the District of Columbia’s Disability Rights Protection and Advocacy Program; Phil More Fit Fitness; and Kids Eat Free.
For more information, contact United States Attorney’s Office for the District of Columbia Director of Community Outreach Wendy Pohlhaus at (202)252-6930 or [email protected].
Two Cargo Handlers at LAX Plead Guilty to Conspiracy Charge for Stealing Four Gold Bars Headed from Australia to New YorkRead the Press Release
LOS ANGELES – Two cargo handling company employees who worked at Los Angeles International Airport each pleaded guilty today to a federal criminal charge for stealing four gold bars that were part of a larger shipment headed from Australia to New York.
Marlon Moody, 38, and Brian Benson, 35, both of South Los Angeles, each pleaded guilty to one count of conspiracy to commit theft of an interstate or foreign shipment.
United States District Judge Dale S. Fischer scheduled November 1 sentencing hearings for the defendants, at which time they each will face a statutory maximum sentence of five years in federal prison.
According to their plea agreements, both men worked for Alliance Ground International, a company that provided ground handling services at LAX. On the evening of April 22, 2020, a shipment of gold bars arrived at LAX on Singapore Airlines. A total of 2,000 gold bars, each weighing one kilogram and valued at approximately $56,000, were being shipped at the direction of a Canadian bank. During a stopover at LAX, the gold was offloaded and secured, but an inventory that evening showed one box containing 25 gold bars was missing.
Moody found the missing box of gold bars near the Singapore Airlines cargo warehouse on the morning of April 23, placed the box on a belt loader and drove that vehicle to a nearby location, where he removed four of the bars. Soon after, Benson arrived to pick up Moody in a company van, where they exchanged text messages about the gold bars because other employees were in the van. The two defendants later left the airport and went to a nearby parking lot, where Moody gave Benson one of the four gold bars.
The lost box with the 21 remaining gold bars was discovered by other cargo handlers later on April 23, and authorities began an investigation that ultimately led to Moody and Benson.
Moody gave one gold bar to a relative on May 4 “and directed the family member to exchange the gold bar for a vehicle and/or money,” according to court documents. Around this time, Moody buried the remaining two gold bars in the backyard of his residence.
The FBI recovered all four gold bars about two weeks after they went missing from LAX.
The FBI, the Federal Air Marshal Service, the Los Angeles Police Department, and the Los Angeles Airport Police investigated this matter.
Assistant United States Attorney Lyndsi C. Allsop of the General Crimes Section is prosecuting this case.
Timber thief convicted following 6-day trialRead the Press Release
Tacoma — The lead defendant in a scheme to steal maple wood that resulted in a massive 2018 forest fire on the Olympic Peninsula was convicted July 8, 2021, in U.S. District Court in Tacoma following a 6-day jury trial, announced Acting U.S. Attorney Tessa M. Gorman. The jury deliberated about 7 hours before convicting Justin Andrew Wilke, 39, of conspiracy, theft of public property, depredation of public property, trafficking in unlawfully harvested timber, and attempting to traffic in unlawfully harvested timber. U.S. District Judge Benjamin H. Settle scheduled sentencing for October 18, 2021.
“When people steal trees from our public lands, they are stealing a beautiful and irreplaceable resource from all of us and from future generations,” said Acting U.S. Attorney Gorman. “That theft, coupled with the sheer destruction of the forest fire that resulted from this activity, warrants federal criminal prosecution. I commend the various branches of the U.S. Forest Service who worked diligently to investigate and hold this defendant accountable.”
According to records filed in the case, between April and August 2018, Justin Andrew Wilke conducted an illegal logging operation in the Elk Lake area of the Olympic National Forest, near Hood Canal. In July 2018, just days after his release from state prison, another defendant, Shawn Edward Williams, 49, joined the conspiracy, helping Wilke remove maple from the National Forest and transporting it with Wilke to a mill in Tumwater, Washington. The type of maple harvested by the defendants is highly prized and used to produce musical instruments.
This was the first use of tree DNA evidence in a federal criminal trial. Wilke claimed the wood he sold to a Tumwater mill had been harvested from private property with a valid permit. However, at trial, Richard Cronn, Phd., a Research Geneticist for the USDA Forest Service, testified that the wood Wilke sold was a genetic match to the remains of three poached maple trees investigators had discovered in the Elk Lake area. The DNA analysis was so precise that it found the probability of the match being coincidental was approximately one in one undecillion (one followed by 36 zeroes). Based on this evidence, the jury concluded the wood Wilke sold the mill had been stolen.
On August 3, 2018, the group decided to cut a maple tree that contained a wasp’s nest near the base of the tree. To remove the nest, the group sprayed insecticide and gasoline on the nest and base of the tree and then lit the nest on fire. The group failed to extinguish the fire, which developed into a wildfire later named the “Maple Fire.” The Maple Fire consumed more than 3,300 acres between August and November 2018 and cost approximately $4.2 million to contain. Some witnesses testified at trial that Wilke was standing next to the nest when it was lit on fire, and therefore appeared to have set the fire. However, because the fire was set at night, they were not able to see his exact actions. The jury did not convict Wilke of the two federal counts related to the forest fire: setting timber afire and using fire in furtherance of a felony.
One of those who testified that Wilke set the fire, Shawn Williams, pleaded guilty in December 2019 to theft of public property and setting timber afire. He was sentenced in September 2020 to 30 months in prison.
Quick and diligent investigative work by a U.S. Forest Service law enforcement officer and by a U.S. Forest Service Wildland firefighter preserved important evidence in the case.
The counts of conviction are punishable by up to 10 years in prison. Judge Settle will determine the appropriate sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant United States Attorneys Seth Wilkinson and Will Dreher.
Texas Man Pleads Guilty for His Role as Executive National Marketing Director in Operating Sham Medical Reimbursement Account ProgramRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that JOSEPH ANTHONY BORINO, age 64, a resident of Spring Hill, Texas, pleaded guilty on July 8, 2021 before United States District Judge Wendy B. Vitter to Count One of a one-count Superseding Bill of Information charging him with misprision of a felony, namely, wire fraud, in violation of 18 U.S.C. § 4.
According to court documents, The Total Financial Group (TTFG) was a Louisiana business incorporated by Denis and Donna Joachim with the Louisiana Secretary of State on or about January 6, 2005, TTFG was most recently located at 406 N. Florida Street, Covington, Louisiana. TTFG had at least 13 employees and 56 independent sales agents. BORINO, employed with TTFG since 2012, served as the National Executive Marketing Director for TTFG. In that capacity, BORINO supervised, trained, and instructed TTFG’s regional sales personnel. BORINO primarily handled issues agents, prospective clients, and enrolled clients encountered.
TTFG and its owners, with BORINO and others, created and marketed a Medical Reimbursement Account program called “Classic 105.” Classic 105 claimed to be a multiple employer welfare arrangement that was marketed to employers as a supplemental benefits plan for their employees to reimburse them for medical expenses such as co-pays and deductibles. All participants in Classic 105 were required to have a primary health insurance plan unrelated to and in addition to Classic 105. Classic 105 claimed to be comprised of several components: a tax-exempt contribution of between $1,000 and $1,600 per month made by an employee (which reduced the employee’s taxable income), a loan from a lender back to the employee to make up for the contribution, an insurance policy payable to the lender at the employee’s death to repay the loan, and fees paid by the employee and the employer directly to TTFG. TTFG told prospective employer-clients that participants would never have to make out-of-pocket payments to repay the loan and that as a result of the tax savings, most participants would receive an increase in their net take home pay. TTFG’s marketing program told prospective employer-clients that the contributions would be stored in a unique account for each employee-participant and that any money not used by the end of each calendar year would revert to TTFG. TTFG also charged employee-participants a fee of between $150 and $250 per month and the employer a fee of five percent of each employee’s contribution amount. At its peak, over 350 employer-clients and 4,400 employee-participants nationwide were enrolled in TTFG’s Classic 105 program.
According to court documents, TTFG committed wire fraud by virtue of how it actually operated Classic 105. TTFG never obtained a single loan or insurance policy for the Classic 105 program, and participants never made any actual contributions. The only money tendered to TTFG by employer-clients and employee-participants were fees. As a result, employee-participants and employer-clients were defrauded into enrolling in, and paying fees for, the Classic 105 program by means of fraudulent pretenses, representations, and promises. Additionally, participants and employers were exposed to potential adverse financial consequences, including not only unpaid taxes, fees, and penalties, but also ineligibility from certain government programs, including unemployment payments, and reduced Social Security payments.
Despite having knowledge of these events, which constituted wire fraud, on multiple occasions, BORINO did not make known the information and attempted to conceal it. For example, in September 2014, BORINO was told that “TTFG has not made any deals with any banks in any state” and also had “not solicited nor [sic] received any pooling of funds from a group of individuals.” In the subsequent months, when subordinates asked BORINO specific questions about the loan component and passed along concerns that Classic 105 was “a scam and likely an illegal tax dodge,” BORINO failed to disclose what he had been told: that there were no entities providing loans. In subsequent years, BORINO continued to represent to subordinates and prospective customers that loans from “Wall Street banks,” community banks, and various “investing vehicles” funded the loan component.
BORINO faces a maximum term of imprisonment of three (3) years, a $250,000 fine, one year of supervised release, a $100 mandatory special assessment fee and he is subject to a restitution order for his conduct. Sentencing has been scheduled before Judge Vitter for November 9, 2021.
U.S. Attorney Evans praised the work of the United States Department of Labor – Office of Inspector General and Employment Benefits Security Administration, the Federal Bureau of Investigation, and IRS-Criminal Investigations in investigating this matter. Assistant United States Attorneys Jordan Ginsberg, Maria Carboni, and Andre Lagarde are in charge of the prosecution.
* * *
Stilwell Man Charged with Sexual Abuse of a Child in Indian CountryRead the Press Release
A Stilwell man faces charges after allegedly sexually assaulting a minor in 2017 near Vinita, announced Acting U.S. Attorney Clint Johnson.
David Anthony Romannose, 44, was charged by criminal complaint with sexual abuse of a child in Indian Country and aggravated sexual abuse in Indian Country. At a hearing on July 6, U.S. Magistrate Judge Susan E. Huntsman ordered the defendant detained while awaiting trial. Romannose is a citizen of the Cheyenne and Arapaho Tribes of Oklahoma.
On July 4, 2017, Romannose accompanied a group who were traveling through northeastern Oklahoma after attending a festival in Seiling. While traveling, according to the affidavit, Romannose allegedly sexually assaulted the victim in the backseat of the vehicle. The violation occurred in Indian Country on the Will Rogers Turnpike/Interstate Highway I-44 near Vinita, in Craig County. The victim told investigators she remembered the group stopping at a rest stop in Vinita shortly after the abuse occurred. Romannose reportedly also abused the minor, an Oneida Indian Nation citizen, after the group arrived home in New York. The victim later disclosed the abuse to a counselor and family member.
A criminal complaint is a temporary charge alleging violation of the law. Defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. For the case to proceed to trial, the United States must present the charge to a federal Grand Jury within 30 days. Once a Grand Jury returns an Indictment, a defendant has a right to a jury trial at which time the United States would have the burden of proving the defendant’s guilt.
The FBI, Oneida Indian Nation Police Department, and Craig County Sheriff’s Office are the investigative agencies. Assistant U.S. Attorney Gina S. Gilmore is prosecuting the case.
Statement of Attorney General Merrick B. Garland on the Justice Department’s Implementation of the Executive Order on Promoting Competition in the American EconomyRead the Press Release
Attorney General Merrick B. Garland made the following statement after the President’s signing of the Executive Order on Promoting Competition in the American Economy:
“The Department of Justice welcomes the Executive Order, which furthers a fair, open and competitive economy through a ‘whole of government’ approach. The department reaffirms its commitment to promoting competition by fairly and vigorously enforcing the antitrust laws. We will immediately begin implementing the interagency collaborations called for in the Executive Order, and we look forward to helping our agency partners use their regulatory authorities to bring greater competition to the U.S. economy. As President Biden emphasized in the Executive Order, competitive markets benefit all Americans — including consumers, workers, farmers and entrepreneurs.
“Our nation’s laws promote competition through both antitrust enforcement and regulation. The Department of Justice is responsible for preventing harmful mergers and stopping anticompetitive conduct through vigorous enforcement of the antitrust laws. At the same time, the regulatory powers wielded by a wide variety of federal agencies can be used to lower barriers to competitive entry, promote innovation and limit the harms that flow from monopoly power.
“Using enforcement and regulation in tandem will benefit America’s consumers, workers and small businesses by increasing competition throughout the economy, including in key areas such as labor markets and the agricultural, health care and technology sectors. The Executive Order’s ‘whole of government’ strategy builds on historical examples of the department working closely with regulators to promote and sustain competition. While the department’s antitrust consent decree shattered the AT&T telephone monopoly, the explosion in choice of phone service and network equipment innovation that followed also required rules that the Federal Communications Commission (FCC) developed and worked with the department to implement. Similar collaborations have supported competition in industries ranging from airlines to health insurance.
“As encouraged by the Executive Order, the department plans to work closely with other federal agencies to determine how their authorities can better promote competition and open markets in the modern economy. This increased interagency coordination will promote robust competition in the American economy. For example, working with the Department of Health and Human Services, we can promote high quality telehealth services that expand health care competition and lower prices for consumers and their employers.
“The department will closely examine its antitrust guidelines and policy statements to better educate the public on its enforcement priorities, and it will heighten its efforts to prevent mergers that would result in excessive consolidations of purchasing power.
“The department also will continue to expand its partnership with other agencies to promote competition in labor markets. When agencies work together to promote competition for workers, it helps all workers, including racial and ethnic minorities and disadvantaged and underrepresented groups. And the long-term benefits accrue not just to workers, but to the entire economy, including small businesses and rural communities.”
Click to view the Executive Order.
Statement of Acting Assistant Attorney General Richard A. Powers of the Antitrust Division and FTC Chair Lina Khan on Competition Executive Order’s Call to Consider Revisions to Merger GuidelinesRead the Press Release
The following joint statement can be attributed to Acting Assistant Attorney General Richard A. Powers of the Antitrust Division and Federal Trade Commission (FTC) Chair Lina Khan:
“We must ensure that the merger guidelines reflect current economic realities and empirical learning and that they guide enforcers to review mergers with the skepticism the law demands. The current guidelines deserve a hard look to determine whether they are overly permissive. We plan soon to jointly launch a review of our merger guidelines with the goal of updating them to reflect a rigorous analytical approach consistent with applicable law.”
Southern Indiana Residents Sentenced for Federal Firearms ViolationsRead the Press Release
INDIANAPOLIS – A Vincennes man and his co-defendants have been sentenced for federal felony firearm violations. Dakota S. Lovellette, 20, was sentenced to 4 years of probation for making a false statement in connection with the acquisition of a firearm. He was also ordered to pay a $1,000 fine. Lovellette and Nicholas P. Apple had previously been indicted by a federal grand jury on January 10, 2020.
According to court documents, in February 2019, Lovellette wanted to purchase a firearm. He could not personally purchase one from a licensed dealer due to his age. Lovellette discussed this issue with Apple, but Apple was not able to purchase a firearm because he is a convicted felon. They both agreed that Apple would ask his then girlfriend, Kyla Freeman to purchase the firearm for Lovellette.
Freeman agreed to purchase the firearm for Lovellette. On February 4, 2019, Freeman accepted money from Lovellette, falsified information on the official Firearms Transaction Record and purchased a .38 caliber revolver. Freeman then gave the firearm to Lovellette. Lovellette eventually sold the firearm to a juvenile who accidently shot another juvenile in the chest. The victim survived but is now paralyzed.
“We work closely with ATF and our other federal, state and local law enforcement agencies to combat gun crimes,” said Acting U.S. Attorney John E. Childress. “Identifying, investigating, and prosecuting those involved in the straw purchases of firearms and lying on federal firearms transaction forms, will help keep guns out of the wrong hands and provide our communities a safer place to live and work.”
“Everyone should be aware that it is illegal to supply firearms to those who are prohibited from possessing them,” stated Roland H. Herndon, Jr., Special Agent in Charge of ATF’s Columbus Field Division. “ATF will continue to work with our law enforcement partners to disrupt the flow of guns from legal commerce to illegal activity.”
Nicholas P. Apple, 23, Vincennes, was sentenced to 15 months in federal prison and will serve 2 years supervised release and pay a $1,000 fine. Apple was sentenced February 5, 2021.
Kyla A. Freeman, 24, Bicknell, was sentenced to 2 years’ probation and ordered to pay a $500 fine. Freeman was sentenced April 30, 2020.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Vincennes Police Department.
Assistant United States Attorney Matthew Miller prosecuted the case.
Seller of Forged Basquiats and Harings Arrested on Fraud ChargesRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of ANGEL PEREDA for his role in a scheme to sell forged artworks purportedly created by renowned artists, including Jean-Michel Basquiat and Keith Haring. PEREDA was arrested in New York on July 9, 2021.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Angel Pereda attempted to sell forgeries of artworks by Jean-Michel Basquiat and Keith Haring, among others, as genuine. If real, such works would be worth millions. The alleged fakes have little or no value, except potentially as evidence of the alleged crime. Angel Pereda now faces the prospect of a jury’s appraisal of his alleged conduct.”
FBI Assistant Director William F. Sweeney Jr. said: "As we allege, Mr. Pereda conned art buyers, hoping his victims wouldn’t see the difference between real art and a forgery. He used their trust to his advantage by passing off worthless pieces as priceless works of art. Hopefully, this case provides a lesson to any others hoping to engage in similar behavior – the FBI's Art Crime Team has the resources to distinguish the real from the fake, and its members will ensure you face the consequences of your actions."
According to the allegations contained in the complaint unsealed today in Manhattan federal court[1]:
In or about 2020 and 2021, ANGEL PEREDA engaged in a scheme to sell paintings and other artwork that he marketed for sale as having been painted or created by world-famous artists, including Jean-Michel Basquiat and Keith Haring, among others. By knowingly and falsely claiming that these fake works were painted by these famous artists, PEREDA tried to trick purchasers into paying millions of dollars for the fake works, which, as the defendant well knew, were essentially worthless.
To deceive his victims, PEREDA falsified the provenance – that is, the ownership history – of the forged artworks. On one occasion, PEREDA attempted to facilitate the sale of a painting purportedly by Basquiat, which PEREDA referred to as “Glory Boys Kingdom.” When told by another individual that a particular false provenance had been detected as fraudulent, PEREDA created and sent to an individual in New York new fraudulent provenances, so that the painting could be sold for millions of dollars. A photograph of “Glory Boys Kingdom” is below:
PEREDA is also connected to at least three other works of art purportedly by Basquiat and Haring, which have been determined to be fraudulent. Photographs of the pieces are below:
If you believe you have additional information regarding ANGEL PEREDA, also known as “Angel Luis Pereda Eguiluz,” please contact the FBI at 1-800-CALL FBI or [email protected], and reference this case.
PEREDA, 49, of Mexico, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding efforts of the FBI Art Crime Team in the investigation, which she noted is ongoing.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorney Samuel L. Raymond is in charge of the prosecution.
The charge and allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation as to the defendants charged in the Complaint.
Sacramento County Man Pleads Guilty to Armed Robbery and Bank FraudRead the Press Release
SACRAMENTO, Calif. — Damian Deleal, 33, of Carmichael, pleaded guilty Thursday to armed robbery of a U.S. mail carrier and bank fraud, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, in March 2018, Deleal conspired with others, including Jacey Powell to rob a U.S. mail carrier of a postal service key that could open numerous residential cluster mailboxes in Sacramento County. Deleal conspired to obtain the key so he and his co-conspirators – including Jacey Powell, Brandon Moses, and Loren Patrick – could steal bankcards, checks, and other financial instruments from the mail.
On March 9, 2018, in South Sacramento, an unnamed co-conspirator robbed a mail carrier at gunpoint and forced the victim to hand over a postal service key. During the next few days, Deleal, Powell, Moses, and Patrick used the key to steal mailed bankcards and checks. They then attempted to use these items to purchase goods and obtain cash.
Powell and Deleal further conspired to claim reward money offered for information relating to the robbery and the stolen postal service key. In executing this plan, they planted the stolen key on Moses while he was sleeping in his car and called the U.S. Postal Service to report Moses’ location and inquire about the reward. After receiving this tip, investigators worked quickly to make arrests and learned that Deleal orchestrated the conspiracy and related crimes.
This case is the product of an investigation by the U.S. Postal Inspection Service, the Sacramento County Sheriff’s Department, and the Sacramento Police Department. Special Assistant U.S. Attorney Robert J. Artuz and Assistant U.S. Attorney Samuel Stefanki are prosecuting the case.
Deleal is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on Oct. 7, 2021. He faces a maximum statutory penalty of 25 years in prison and a $1 million fine for armed robbery, and a maximum statutory penalty of 30 years in prison and a $1 million fine for bank fraud. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which consider a number of variables.
Moses, Patrick, and Powell have already pleaded guilty to federal charges and were sentenced in the following related cases in this district: U.S. v. Patrick, 2:18-cr-79-MCE, U.S. v. Moses, 2:18-cr-90‑MCE, and U.S. v. Powell, 2:18-cr-83-MCE.
Russian National Sentenced to 5 Years and Deportation for Bribery, Visa Fraud, and Tax Charges, Forfeiting $5.9 MillionRead the Press Release
NEW BERN, N.C. – Leonid Teyf, 59, a Russian national formerly residing in Raleigh, North Carolina, was sentenced today to 5 years in prison for bribery of a public official, visa fraud, and false statements in relation to foreign financial interests. Teyf and his wife, Tatiana Teyf, 43, will also forfeit $5,900,241 in assets. Leonid Teyf will be judicially deported after he completes his sentence. The husband and wife entered into a plea agreement in March 2021.
In December 2018, Teyf was charged by indictment with bribery of a public official, murder-for-hire, possession of a firearm with an obliterated serial number, harboring illegal aliens, and unlawful use of a visa procured through false claims. Teyf was also charged in a money laundering conspiracy with Tatiana Teyf and others, and several tax charges regarding the wrongful denial of the existence of overseas financial interests and the failure to file required forms in regard to the same overseas accounts.
The indictment further alleged Teyf knowingly used and possessed a U.S. immigrant visa which he had procured through false claims made on his I-140 application (Immigrant Petition for Alien Worker), and that he and Tatiana Teyf had harbored and assisted other persons from Russia in coming to and remaining in the United States.
As otherwise alleged in publicly available documents filed in federal court by the Government, during the course of the investigation into the money laundering charges, Leonid Teyf came to believe that Tatiana Teyf was having an affair with another man. Leonid Teyf discussed with an FBI confidential source having the man murdered. Teyf also paid an someone whom he believed to be employee with the United States Department of Homeland Security $10,000 to find the man and have him deported from the United States.
In March of this year, Teyf entered a plea of guilty to violations of 18 U.S.C. § 201, the payment of the $10,000 bribery to the federal official, 18 U.S.C. § 1546, visa fraud, and 26 U.S.C. § 7206(1), filing a false tax return. Tatiana Teyf pled guilty to a separately filed Criminal Information, which charged a violation of 18 U.S.C. § 1015(a), making a false statement in an immigration document. Both agreed to forfeit almost $6 million in assets, and Teyf agreed to forfeit a firearm that he had provided to a confidential source. He also agreed to his deportation.
Pursuant to the plea, the Acting United States Attorney for the Eastern District of North Carolina agreed to dismiss the murder-for-hire, firearm, money laundering, harboring illegal aliens, and all but one of the tax charges against Teyf, and to seek a sentence of 60 months’ imprisonment for him. Pursuant to Tatiana Teyf’s plea to the charge in the Criminal Information, all charges against her in the Indictment were dismissed and the government will not seek a term of imprisonment.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The investigation of this case was conducted by agents of the Federal Bureau of Investigation, the Internal Revenue Service, Homeland Security Investigations, and the Raleigh Police Department.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case 5:18-cr-00452-FL.
Revere Man Sentenced for Distributing FentanylRead the Press Release
BOSTON – A Revere man was sentenced yesterday in federal court in Boston for distributing 40 grams or more of fentanyl.
Jassiel Ramirez, 25, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to five years in prison and four years of supervised release. In February 2020, Ramirez pleaded guilty to one count of distribution of and possession with intent to distribute fentanyl, one count of possession with intent to distribute fentanyl, and one count of possession with intent to distribute and distribution of 40 grams or more of fentanyl.
Between September and October 2018, Ramirez engaged in four separate drug sales of fentanyl to a cooperating witness. Those sales totaled approximately 110 grams of fentanyl.
Acting United States Attorney Nathaniel R. Mendell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement. Assistance was provided by the Salem Police Department. Assistant U.S. Attorney Alathea E. Porter of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
Repeat Offender Sentenced for Possession of Child PornographyRead the Press Release
Acting United States Attorney Jan Sharp announced that Marcus Dunn, 27, of Omaha, Nebraska, was sentenced today in Omaha by Senior United States District Judge Joseph F. Bataillon to 10 years’ imprisonment for Possession of Child Pornography after a Prior Conviction. There is no parole in the federal system. After his release from custody, Dunn will have to serve a lifetime term of supervised release and will be required to register as a sex offender. Dunn was also ordered to pay $1,100 in assessments.
On November 15, 2019, members of the Federal Bureau of Investigation’s Child Exploitation and Human Trafficking Task Force executed a search warrant at Dunn’s residence in Omaha. During the search warrant, law enforcement collected electronic devices to include 2 phones and 1 tablet. An additional phone was later found on Dunn’s person. Dunn confirmed with officers that he controlled and used two Gmail accounts. Searches were conducted pursuant to search warrants on Dunn’s electronic devices, five Gmail accounts, and a Dropbox account. A review of Dunn’s devices and accounts located 378 images of children engaging in sexually explicit conduct, of which 141 were unique (meaning that there were multiple images of the same image) and 20 videos of children engaging in sexually explicit conduct, of which 16 were unique. These images and videos included minors under the age of 12 years old engaging in sexually explicit conduct. One example found in a Gmail account belonging to Dunn was a toddler being subjected to penile-vaginal penetration by an adult male. Dunn was on probation in Douglas County in two separate cases when he was found in possession of these images and videos. Specifically, Dunn was on probation for two counts of Attempted Possession of Child Pornography and for Possession of Child Pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated the Douglas County Sheriff’s Office as part of the FBI Child Exploitation and Human Trafficking Task Force.
Pittsburgh Man Pleads Guilty to Child Sexual Exploitation ChargesRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of production and attempted production of material depicting the sexual exploitation of a minor, Acting United States Attorney Stephen R. Kaufman announced today.
Matthew Gourley, age 49, of Pittsburgh, Pennsylvania, pleaded guilty to one count before United States District Judge William S. Stickman, IV.
In connection with the guilty plea, the court was advised that on January 6, 2020, Gourley forced Minor A, a minor female victim, to engage in sexually explicit conduct for the purpose of producing a visual depiction, namely, a digital image and a video, depicting Minor A engaging in sexually explicit content.
Judge Stickman scheduled sentencing for November 15, 2021 at 10:30 a.m. The law provides for a total sentence of not less than 15 years but not more than 30 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the Court ordered that Gourley remain detained.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The Violent Crimes Against Children Task Force, including the Federal Bureau of Investigation and the Allegheny County Police Department, conducted the investigation that led to the prosecution of Gourley.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Pinedale woman charged in knife attack in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Valerie Arthur, 35, of Pinedale, New Mexico, and an enrolled member of the Navajo Nation, appeared at a preliminary hearing today in federal court where she was charged with assault with a dangerous weapon and assault resulting in serious bodily injury in Indian Country. Arthur will remain in custody pending a detention hearing scheduled for July 13.
According to a criminal complaint, on July 4, at least twice Arthur allegedly approached and was asked to leave a neighboring house where a family was cooking outside. Arthur allegedly returned to the house armed with a knife and on the front porch stabbed a victim in the neck and arm. Arthur then allegedly pursued another victim inside the home and stabbed her in the neck, back and face. When the second victim’s 10-year old son and eight-year old daughter attempted to defend their mother, Arthur allegedly stabbed the children as well.
All of the victims were taken to Gallup Indian Medical Center for treatment.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Arthur faces up to 10 years in prison.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department. Assistant U.S. Attorney D. Novaline Wilson is prosecuting this case.
Pine Ridge Man Found Guilty of Meth Trafficking ConspiracyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that Wicahpe “Chops” Milk, age 37, of Wanblee, South Dakota, was found guilty of Conspiracy to Distribute a Controlled Substance, Possession of a Firearm by a Prohibited Person, and Obstruction of Justice following a five-day federal jury trial in Rapid City, South Dakota. The verdict was returned on July 2, 2021.
The conspiracy charge carries a mandatory minimum penalty of 10 years in federal prison, and a maximum penalty of life imprisonment and/or a $10,000,000 fine, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. The other charges each carry a penalty of up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Wicahpe “Chops” Milk was indicted by a federal grand jury on September 20, 2016. Milk was released from federal custody in January 2015 and soon after began obtaining methamphetamine in California. He arranged for the methamphetamine to be transported to South Dakota for further distribution. Eventually Milk began transporting the methamphetamine himself and selling it in South Dakota to his network of distributors. On August 17, 2016, law enforcement stopped Milk’s vehicle and located methamphetamine and a firearm. Due to a prior felony conviction, Milk was prohibited from possessing a firearm. After his arrest, Milk engaged in extensive witness tampering efforts in an attempt to influence the testimony of witnesses.
This case was investigated by the Badlands Safe Trails Drug Enforcement Task Force, which is comprised of agents from the Federal Bureau of Investigation, South Dakota Division of Criminal Investigation, Bureau of Indian Affairs Division of Drug Enforcement, Martin Police Department, and the Oglala Sioux Tribe Department of Public Safety. Further investigation was also conducted by the Pennington County Sheriff’s Office and the Bureau of Alcohol, Tobacco, and Firearms. Assistant U.S. Attorneys Kathryn N. Rich and Gina Nelson prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for October 1, 2021. The defendant was remanded to the custody of the U.S. Marshals Service.
Philadelphia Real Estate Investor Charged with Witness Tampering Related to Prior Conviction for Bribing Sheriff’s Office EmployeeRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Behzad Sabagh, a/k/a “Ben Sabagh,” 39, of Philadelphia, PA, was arrested and charged by Indictment with multiple counts of retaliating against a witness and tampering with a witness, stemming from a case in which he was previously convicted of bribing an employee of the City of Philadelphia in April 2019.
As set forth in the Indictment, in May 2018, Sabagh was charged criminally with honest services wire fraud, arising from his payment of bribes to a City of Philadelphia Sheriff’s Office employee. From December 2019 until March 2020, after Sabagh pleaded guilty to the fraud charges and completed his court-ordered sentence, he is alleged to have sent threatening text messages to an individual who was also charged in connection with the prior case and who had agreed to plead guilty and cooperate with law enforcement officials as a witness against Sabagh.
According to the Indictment, while the witness was awaiting sentencing, the defendant sent text messages in which he violently threatened the witness with sexual assault while in prison, threatened to sexually assault the witness’s wife while the witness was in prison, and threatened their children. The Indictment charges Sabagh with nine counts of retaliating against a witness and one count of tampering with a witness.
“Witness intimidation undermines the entire criminal justice system and will be dealt with swiftly and severely,” said Acting U.S. Attorney Williams. “Here, Sabagh allegedly threatened a witness in a most contemptible way, after his conviction and sentence had been served as though his actions would have no consequences. These charges demonstrate that he is absolutely wrong.”
“Our justice system depends on witnesses truthfully testifying as to what they know,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “Retaliating against a cooperating witness sends a chilling message both to that person and the community at large. Bottom line: ensuring the safety of federal witnesses both before and after a prosecution is paramount, and the FBI takes Sabagh’s alleged acts extremely seriously.”
If convicted, the defendant faces a maximum possible sentence of up to 200 years in prison, a $2,500,000 fine, a $1,000 special assessment, and restitution.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys Sarah L. Grieb and Christopher Diviny.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Peruvian National Sentenced to 90 Months in Prison for Conspiring to Defraud Thousands of Spanish-Speaking ImmigrantsRead the Press Release
A Peruvian national has been sentenced to 90 months in prison for operating a series of call centers in Peru that defrauded Spanish-speaking U.S. residents by falsely threatening them with arrest, deportation and other legal consequences. In the same case, two additional Peruvian co-conspirators pleaded guilty and two others were extradited to the Southern District of Florida to face prosecution for their roles in the scheme.
According to court documents, Omar Cuzcano Marroquin, 32, of Lima, Peru, was sentenced for conspiring to commit mail fraud and wire fraud through a series of Peruvian call centers that used false statements and threats to obtain money from Spanish-speaking individuals across the United States. Cuzcano and others falsely told victims that they were required to accept and pay for English-language courses and other educational products and that failure to do so placed them in legal jeopardy.
Cuzcano admitted that he and his employees falsely claimed to be lawyers, court officials, federal agents and representatives of a so-called “minor crimes court,” which does not exist. The callers falsely threatened victims with court proceedings, negative marks on their credit reports, imprisonment and immigration consequences if they did not immediately pay for the purportedly delivered products and settlement fees. Between April 2011 and July 2019, thousands of U.S. victims made payments based on calls from their call centers. Cuzcano and his co-conspirators collected millions of dollars from victims.
“The Department of Justice’s Consumer Protection Branch will steadfastly pursue and prosecute transnational criminals who defraud vulnerable U.S. consumers,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The defendants in this case brazenly defrauded recent immigrants by falsely promising free products to improve their English. In reality, the defendants were luring their victims into a trap of intimidation and fear, leaving them far worse off – with substantial financial losses and, often, emotional scars from these crimes. Today’s sentence demonstrates that defendants who prey upon U.S. consumers from abroad will not do so with impunity.”
“Today’s sentence serves not only as just punishment for this defendant but also as notice to others who seek to prey on vulnerable victims in the United States,” said Acting U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “Know that the Justice Department and its partners will aggressively investigate such criminal activity. Wherever you are, we will find you and hold you accountable.”
“In this international telemarketing scheme, deceptive scare tactics were used to threaten thousands of vulnerable U.S. consumers into purchasing undelivered products by falsely purporting to use America’s legal system against them and coercing them out of millions of dollars,” said Inspector in Charge Joseph Cronin of the U.S. Postal Inspection Service, Miami Division. “Today’s sentencing hopefully brings relief to U.S. residents who were victimized by this transnational fraudulent scheme. The U.S. Postal Inspection Service, along with the Department of Justice’s Consumer Protection branch and the U.S. Attorney’s Office, are committed to holding individuals who use the U.S. Mail to defraud consumers accountable.”
Two of Cuzcano’s co-defendants also recently pleaded guilty for their roles in the scheme. Henrry Adrian Milla Campuzano, 37, of Lima, Peru, pleaded guilty to conspiracy to commit mail and wire fraud earlier today. According to court documents, Milla was the owner and operator of fraudulent call centers located in Peru called “Latinos en Accion” and “Accion Latino,” which similarly extorted immigrants in the U.S. by falsely identifying themselves as private company lawyers and court or immigrations officials.
Another co-defendant, Fernan Huerta Haro, 34, of Lima, Peru, pleaded guilty to conspiracy to commit mail and wire fraud on June 11. According to court documents, Huerta owned and operated call centers called “Camino Al Progreso” and “Neshuer Corporation” in Peru. In pleading guilty, Huerta admitted that, from 2011 until his 2019 arrest, he and his employees threatened and defrauded many Spanish-speaking recent immigrants to the United States as part of the scheme.
Milla and Huerta will be sentenced by U.S. District Judge Robert N. Scola Jr. this fall, and both face a maximum penalty of 20 years in prison. Judge Scola will determine their sentences after considering the U.S. Sentencing Guidelines and other statutory factors.
Cuzcano, Milla and Huerta were part of a group of five defendants who were arrested on July 2, 2019, by Peruvian authorities based on a U.S. extradition request, and each has remained incarcerated since that time. The defendants were extradited to the Southern District of Florida on Oct. 23, 2020. All five defendants have now been convicted of conspiring to commit mail and wire fraud. Two additional indicted co-defendants in the case – Carlos Alberto Espinoza Huerta and Josmell Arturo Espinoza Huerta – evaded arrest at the time of their five co-defendants’ arrests in Peru. They were eventually located and arrested by Peruvian law enforcement, were extradited to the United States on June 25 and are being detained at the Federal Detention Center in Miami.
The U.S. Postal Inspection Service and the Civil Division’s Consumer Protection Branch investigated the case. Trial Attorneys Phil Toomajian and Max Goldman of the Consumer Protection Branch are prosecuting the case. The Federal Trade Commission, the Justice Department’s Office of International Affairs, the U.S. Attorney’s Office for the Southern District of Florida, the State Department’s Diplomatic Security Service and the Peruvian National Police provided critical assistance.
For more information about the Consumer Protection Branch, visit its website at www.justice.gov/civil/consumer-protection-branch.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Click to view Spanish language version of this press release.
Orange County Man Charged with Scheming to Defraud Buyers of Medical-Grade Gloves During COVID-19 Pandemic-Related ShortageRead the Press Release
LOS ANGELES – An Orange County man is expected to be arraigned in federal court today on an indictment charging him with defrauding victims who paid for COVID-related medical protective equipment that was never delivered, causing nearly $3 million in losses.
Christopher John Badsey, 60, of Lake Forest, was arrested by FBI agents on July 8 without incident. He is charged with four counts of wire fraud and two counts of money laundering. He is expected to be arraigned this afternoon in United States District Court in downtown Los Angeles.
According to an indictment returned by a federal grand jury on July 7, Badsey falsely represented that he had access to millions of boxes of medical-grade nitrile gloves through his Irvine-based company, First Defense International Security Services Corp. (FDI) This type of personal protective equipment was in high demand and short supply during the COVID-19 pandemic.
Badsey allegedly entered into contractual agreements with victims, whom he required to provide a money deposit to inspect the gloves before delivery.
After receiving the deposits, Badsey allegedly instructed victims to travel to the Los Angeles area, where he claimed the gloves were stored in a warehouse. But when victims attempted to visit the warehouse, Badsey and other FDI employees allegedly provided excuses as to why the gloves could neither be inspected, nor delivered, to the victims.
Nitrile gloves were never provided to the victims, and Badsey is alleged to have absconded with the deposit money totaling nearly $3 million. After obtaining the victims’ wire deposits, Badsey and others are believed to have used those funds to make lavish purchases for their personal benefit.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of all charges in the six-count indictment, Badsey would face a statutory maximum sentence of 100 years in federal prison.
The FBI investigated this matter.
Assistant United States Attorney Melissa S. Rabbani of the Santa Ana Branch Office is prosecuting this case.
Omaha Man Sentenced for Distributing Methamphetamine for the Second TimeRead the Press Release
Acting United States Attorney Jan Sharp announced that Juan Padilla-Miranda, 47, of Omaha, Nebraska, was sentenced today in federal court in Omaha, for distributing methamphetamine. United States District Judge Robert F. Rossiter, Jr. sentenced Padilla-Miranda to imprisonment for a term of 120 months. There is no parole in the federal system. After his release from prison, he will begin an 8-year term of supervised release.
Investigators obtained more than 150 grams of methamphetamine from Padilla-Miranda over the course of three controlled purchase operations. Padilla-Miranda drove to a McDonald’s restaurant parking lot from his workplace to distribute the first amount of methamphetamine on July 3, 2019. The second purchase occurred in his workplace parking lot on September 3, 2019, and the final one was completed at a Baker’s grocery store parking lot.
Padilla-Miranda has a prior serious drug felony conviction which resulted in higher penalties at today’s sentencing. In December 3, 2007, he was convicted for Possession with Intent to Distribute Methamphetamine in the United States District Court for the District of Nebraska and was sentenced to 57 months’ imprisonment.
Padilla-Miranda’s request to self-surrender to the U.S. Bureau of Prisons was denied and he was taken into custody by the U.S. Marshals at the conclusion of the sentencing hearing today.
This case was investigated by the Drug Enforcement Administration.
Omaha Man Convicted of Two Armed RobberiesRead the Press Release
Acting United States Attorney Jan W. Sharp announced that Lonnie L. Perry, 29, of Omaha, Nebraska, was convicted today in federal court in Omaha after a three-day jury trial. Perry was found guilty of two counts of Interference with Interstate Commerce by way of Robbery, one count of brandishing a firearm during and in relation to a crime of violence and one count of discharging a firearm during and in relation to a crime of violence. United States District Judge Robert F. Rossiter, Jr. will sentence Perry on October 4, 2021 at 1:30 p.m. Perry faces up to 20 years for the robberies, seven years to life consecutive for brandishing a firearm, and ten years to life consecutive for discharging a firearm.
On October 25, 2017, Perry entered the Select Mart convenience store in Omaha and brandished a weapon at a store employee. A father was shopping inside the store with his young son, and they hid in a backroom of the store until the police arrived at the scene.
On November 5, 2017, Perry entered the VP Racing Station convenience store in Omaha, brandished a weapon at two store employees and then fired his weapon into two vehicles fleeing the scene. Each vehicle had a family with a child in it, and the bullet from the second shot landed next to the car seat of a two-year-old boy, nearly striking him.
On November 6, 2017, Omaha Police officers arrived at an apartment complex for a disturbance where Perry was identified brandishing a weapon. While near a Runza restaurant, officers saw Perry drop a gun into a trash can. Officers used a Taser on Perry after he resisted arrest. He was transported to a hospital for treatment. Perry escaped custody in handcuffs and was arrested again later that same day. The weapon was tied through ballistics to the shooting at the robbery the day before and had the defendant’s DNA on it.
This case was investigated by the Federal Bureau of Investigation and the Omaha Police Department.
O.C. Man Sentenced to 2 Years in Prison for Multimillion-Dollar Conspiracy to Smuggle Counterfeit Cell Phone Parts from ChinaRead the Press Release
SANTA ANA, California – An Orange County man was sentenced today to 24 months in federal prison for conspiring to smuggle counterfeit Apple, Samsung, and Motorola cell phone components from China that were then sold to consumers in the United States, a scheme that generated tens of millions of dollars in revenue.
Chan Hung Le, 46, of Laguna Hills, was sentenced by United States District Judge Josephine L. Staton, who also ordered him to pay a $250,000 fine.
Le pleaded guilty in November 2020 to one count of conspiracy to defraud the United States, to intentionally traffic in counterfeit goods, and to illegally bring merchandise into the United States.
From late 2011 to February 2015, Le conspired with other individuals to import from China cell phone parts and other electronic items bearing counterfeit marks. In furtherance of the conspiracy, Le set up and used mailboxes with virtual office service providers in Oklahoma and Texas using a fictitious business name, JV Trading Solutions. In furtherance of the conspiracy, Le also used the name and identity documents of one of his employees to set up the virtual offices and directed other conspirators to ship trademarked goods under Le’s employees’ or relatives’ names. Once the counterfeit products arrived, Le and his co-conspirators distributed the parts to the public through various online stores.
“[Le]…orchestrated an elaborate scheme to deceive customs agents by creating covert shipping channels from Hong Kong and China to different U.S. states,” prosecutors wrote in their sentencing memorandum. “From this conduct, and this deception, [Le] generated millions of dollars in profit. [Le] enlisted numerous other parties in his conduct – including his romantic partner, his employees (witting or unwitting), other family members, and the unwitting virtual mailbox service companies. This was a sophisticated, long-standing, and highly profitable offense.”
In 2016, one of Le’s suppliers, Hongwei “Nick” Du, pleaded guilty in United States District Court in San Diego to conspiring to traffic in counterfeit goods and related money laundering charges. In his plea agreement, Du admitted to selling Le at least $18,744,354 worth of cellular telephone and electronic components for resale from China into the United States and that about half of the goods were counterfeit items bearing the trademarks of Apple, Samsung, Motorola, and other companies. Du was sentenced to three years in federal prison.
Homeland Security Investigations, United States Customs and Border Protection, and the Westminster Police Department investigated this matter.
Assistant United States Attorney Cameron L. Schroeder, Chief of the Cyber and Intellectual Property Crimes Section, and Assistant United States Attorneys Lauren E. Restrepo and Victoria A. Degtyareva, also of the Cyber and Intellectual Property Crimes Section, prosecuted his case.
Newport Man Sentenced to Federal Prison for Creating Illegal Video Streaming and Downloading WebsitesRead the Press Release
EUGENE, Ore.—A Newport, Oregon man was sentenced to federal prison today for creating websites to illegally distribute thousands of copyright-protected movies and television shows and evading taxes on the profits of his illicit endeavor.
Talon White, 31, was sentenced to 12 months and one day in federal prison and three years’ supervised release.
According to court documents, in October 2013, investigators received information regarding numerous illegal websites linked to White that allowed paid subscribers to stream and download thousands of copyright-protected movies and television shows. In 2014, the Motion Picture Association of America (MPAA), an organization that assists the motion picture and television industry in protecting its intellectual property rights, demanded White cease and desist his illegal activity. White ignored the demand. Over the next four years, White migrated his illicit business and subscribers from one website to another to avoid detection.
By 2018, White had amassed millions of dollars in subscription fees from his websites. Between February 2018 and September 2018 alone, he collected nearly $3 million in fees. In November 2018, investigators served search and seizure warrants on his house in Newport and several bank accounts. Agents seized $3.9 million from his accounts, $35,000 in cash, and more than $1 million in cryptocurrency. Between 2013 and 2017, White also filed false personal income tax returns, underreporting his income by more than $4.4 million and causing a tax loss to the IRS of more than $1.7 million.
On November 1, 2019, White was charged by criminal information with copyright infringement and tax evasion. On November 25, 2019, White pleaded guilty to both charges.
During sentencing, U.S. District Court Judge Ann L. Aiken ordered White to pay more than $4.3 million in restitution to the MPAA and IRS. White must also forfeit all U.S. currency and cryptocurrency seized from his bank accounts, in addition to his Newport house that was purchased with proceeds of his scheme.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by Homeland Security Investigations and IRS Criminal Investigation. Assistant U.S. Attorneys Gavin W. Bruce and Amy Potter prosecuted the case.
New York Man Who Allegedly Harassed NYPD Charged with Gun CrimeRead the Press Release
A New York man who allegedly hurled racial slurs at a police officer has been charged with a gun crime, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Shermaine Laster, 46, was arrested at John F. Kennedy International Airport on June 25, charged via criminal complaint with possession of a firearm by a felon. A federal grand jury in Dallas indicted him on the same charge on Thursday.
According to the complaint, travel records indicate that Mr. Laster, a convicted felon, flew from New York to Dallas to visit a local gun range, where he allegedly fired a 7.62x39 caliber rifle.
Prior to shooting the weapon, he allegedly signed a “Firearms Eligibility Experience & Range Safety Waiver,” which reminded signatories that “it is unlawful for a felon or illegal alien to possess or rent firearms or ammunition.” When the form asked if he’d ever been convicted of a felony, Mr. Laster indicated he had not.
In a video recorded at the gun range and later posted to Instagram, the defendant allegedly fired several rounds at paper targets, noting, “I’m going to be demonstrating how to take out your opponent.” A review of the Instagram feed revealed numerous photographs of handguns, with captions like “I’m ready for WAR,” “No games… fight in the dark,” and “Black Power.”
At a detention hearing in the Eastern District of New York, prosecutors introduced into evidence multiple images of Mr. Laster brandishing firearms as well as a now-viral video of Mr. Laster allegedly hurling racial slurs at an Asian-American NYPD officer in Washington Square Park.
Like all defendants, Mr. Laster is presumed innocent until proven guilty in a court of law. If convicted, he faces up to ten years in federal prison.
The Federal Bureau of Investigation’s North Texas Joint Terrorism Taskforce and the New York Police Department conducted the investigation. Assistant U.S. Attorney Melanie Smith of the Northern District of Texas is prosecuting the case with the assistance of Assistant U.S. Attorneys Francisco Navarro and Chand Edwards-Balfour of the Eastern District of New York.
Multiple defendants face charges for illegal firearms possession after federal indictmentsRead the Press Release
SAVANNAH, GA: Six defendants face felony firearms charges, with two also charged with illegal drug possession, after indictment by a U.S. District Court grand jury in the Southern District of Georgia.
The cases are being investigated in collaboration with federal, state and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI.
“The enforcement of existing firearms laws is an essential part of keeping our streets safe,” said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. “Our law enforcement partners continue to protect our communities by pursuing individuals who illegally possess guns.”
In the past three years, more than 680 defendants were federally charged in the Southern District of Georgia for illegal firearms offenses – most often for possessing a firearm after having been convicted of a previous felony. That charge carries a statutory penalty upon conviction of up to 10 years in prison, and there is no parole in the federal system.
Defendants named in federal indictments from the July 2021 term of the U.S. District Court grand jury include:
- John W. Carter, 36, of Rincon, Ga., charged with Possession with Intent to Distribute Heroin and Marijuana; Possession of a Firearm by a Convicted Felon; and Possession of a Firearm in Furtherance of a Drug Trafficking Crime;
- Antoine Ladson, 32, of Brunswick, charged with Possession with Intent to Distribute Fentanyl; Possession of a Firearm by a Convicted Felon; and Possession of a Firearm in Furtherance of a Drug Trafficking Crime;
- Jamar Lavelle Alexander, 34, of Crawfordville, Ga., charged with Possession of a Firearm by a Convicted Felon;
- Timothy Lee Cheeks, 33, of Augusta, charged with Possession of Ammunition by a Convicted Felon;
- David Bryson Murphy, 20, of Thomson, charged with Possession of a Firearm by a Convicted Felon; and,
- Christopher Lewis Tucker Jr., 21, of Thomson, charged with False Statement During Purchase of a Firearm, and Receipt of a Firearm by a Person Under Indictment.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
Additional defendants recently have been adjudicated on charges that include illegal firearms possession, including:
- Marcus Rashad Allen, 33, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah Police officers found him in possession of a pistol in August 2020 after he ran from officers attempting to arrest him on an outstanding warrant.
- Dameon Duncan, 21, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah Police officers in May 2020 found Duncan in possession of a pistol during a traffic stop.
- Telly Green, 33, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah Police officers found him in possession of a pistol in August 2020 while investigating reports of shots fired at a vehicle in a Savannah neighborhood.
- Khallid Marquese Wright, 24, of Augusta, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Wright, who was stopped in February by Richmond County Sheriff’s deputies for questioning in an unrelated case, was found in possession of a firearm.
- Robert Kenneth Williams, 32, of Augusta, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County Sheriff’s deputies found Williams in possession of a pistol in April 2020 in a motel parking lot.
- Joseph Jay Gartrell III, 37, of Augusta, awaits sentencing after pleading guilty to an Information charging him with Possession with Intent to Distribute Methamphetamine, and Possession of a Firearm by a Convicted Felon. Richmond County sheriff’s deputies suspected Gartrell of driving under the influence when they found him asleep in his vehicle after 3 a.m. in November 2019. During a subsequent search, officers discovered drugs, cash and a firearm in his vehicle.
- Blake McDuffie, 26, of Winder, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Officers from the Pooler Police Department charged McDuffie in May 2020 when he was found in possession of a pistol after he sped away from a traffic stop and subsequently crashed his vehicle.
- Devonta Armon Stallings, 27, of Augusta, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Stallings ran from Richmond County Sheriff’s deputies in March 2020 and tossed a pistol before being captured. He was on state probation at the time of his arrest.
These cases also are being investigated under the Prosecutor to Prosecutor Program (P3), in which federal and state prosecutors collaborate to determine the most appropriate venue for adjudication of alleged crimes.
Agencies investigating these cases include the ATF; the FBI; the Savannah Police Department; the Richmond County Sheriff’s Office; the McDuffie County Sheriff’s Office; the Taliaferro County Sheriff’s Office; the Glynn County Police Department; the Pooler Police Department; and the Brunswick Police Department.
The cases are being prosecuted for the United States by Southern District U.S. Attorney’s Office Assistant U.S. Attorneys, including Henry W. Syms Jr., Marcela C. Mateo, Jennifer A. Stanley, Noah J. Abrams, Frank M. Pennington II, and Special Assistant U.S. Attorney Darron J. Hubbard.
Under federal law, it is illegal for an individual to possess a firearm if he or she falls into one of nine prohibited categories including being a felon; illegal alien; or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to purchase – firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, also is a federal offense.
For more information on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atf-form-4473.
Morgantown man sentenced for harboring a fugitive wanted on a felony chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Paul Chibuzo, of Morgantown, West Virginia, was sentenced today to 21 months of incarceration for charges related to hiding a fugitive, Acting U.S. Attorney Randolph J. Bernard announced.
Chibuzo, age 25, pled guilty in August 2020 to one count of “Harboring and Concealing a Federal Fugitive” and one count of “False Statement to Federal Agent.” Chibuzo admitted to hiding Donquale Gray in Morgantown from March 1 to March 6, 2019. Gray was wanted by the U.S. Marshal Service on a felony charge. Chibuzo lied to authorities about speaking with Gray and knowing he was wanted in February 2019.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The U.S. Marshal Service; The Bureau for Alcohol, Tobacco, Firearms & Explosives; and the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Moldovan Citizen Pleads Guilty to Making a False Statement to a Federal AgentRead the Press Release
CONCORD - Stela Sacara, 34, a citizen of Moldova residing in Pembroke, pleaded guilty in federal court on Thursday to making a false statement to a federal agent, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, Sacara operated several companies from her home and office, including Rochester Chemical LLC, which she ran with her sister, Natalia. Rochester Chemical acquired consumable laboratory equipment and repackaged and shipped it abroad. The Office of Export and Enforcement (OEE) and the Federal Bureau of Investigation (FBI) investigated the activities of Sacara and Rochester Chemical, and others associated with them, to determine whether the exports were being made in compliance with federal laws and regulations.
On September 14, 2018, Sacara was interviewed by federal agents and falsely stated the manager of Rochester Chemical was Amy Johnson. Company emails further showed that Sacara and/or Natalia used the Amy Johnson alias periodically. There is no record of the company ever employing “Amy Johnson.” Johnson does not exist. The sole principals of the company are Sacara and her sister, Natalia.
Sacara’s sentencing has not yet been scheduled.
“Lying to federal investigators is a serious crime,” said Acting U.S. Attorney Farley. “By providing false information, this defendant sought to mislead federal agents who were conducting an investigation. This conviction should serve as an important reminder that those who lie to federal agents face serious criminal consequences for their unlawful actions.”
“Stela Sacara deliberately lied to federal agents to conceal the extent of her involvement in the business operations of Rochester Chemical and ultimately, who was on the receiving end of their shipments. Not only did her actions cause our investigators to waste time and energy attempting to locate individuals who do not exist, but she tried to impede our investigation into whether the company was violating our export laws. This case should serve as a warning to others that it is never a good idea to lie to federal agents and there will be significant consequences if you do,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
This matter was investigated by the Office of Export and Enforcement and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney John S. Davis.
###
Maryland man sentenced drug traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA –Donald Noel Smith, of Oakland, Maryland, was sentenced today to three years probation for drug trafficking, Acting U.S. Attorney Randolph J. Bernard announced.
Smith, 42, pleaded guilty in October 2020 to one count of “Unlawful Use of Communication Facility.” Meadows admitted to using a phone to distribute drugs in March 2020 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Drug Enforcement Administration, the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Monongalia County Sheriff’s Office investigated.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Senior U.S. District Judge Irene M. Keeley presided.
Man Sentenced to 71 Months for Operating Lottery Scam that Defrauded Connecticut Victim of $1.2 MillionRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that STIEVE FERNANDEZ, 35, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 71 months of imprisonment for operating lottery scams that defrauded victims of more than $1.8 million, including an elderly Connecticut victim who lost nearly $1.2 million.
In a lottery scam, a perpetrator fraudulently convinces a victim that the victim has won a lottery or sweepstakes, and needs to make certain payments before collecting the winnings.
According to court documents and statements made in court, between approximately 2015 to 2018, Fernandez and others, including Minique Morris and Horace Crooks, defrauded an elderly Mystic resident in a lottery scam. As part of their scheme, Fernandez spoke to the victim on the telephone and used various pseudonyms, including “Damian Jackson,” “Jesse Jackson,” and “Huckleberry Finn.” During the phone calls, Fernandez falsely claimed that the victim had won a lottery or sweepstakes and was required to pay fees purportedly to cover taxes, insurance, handling and other charges related to the winnings. Fernandez directed the victim to pay fees in various ways, including by mailing checks and money orders to Morris in Brampton, Ontario, and Crooks in Orlando, Florida; wiring funds to bank accounts controlled by Morris and Crooks; and purchasing and sending precious metals products Crooks and other co-conspirators. Fernandez instructed his co-conspirators how to transfer or deliver the fraud proceeds to him in Argentina or Jamaica, where Fernandez resided.
Through this scheme, the victim was defrauded of $1,196,207. Judge Dooley ordered Fernandez to pay restitution in that amount.
On October 16, 2018, a grand jury in New Haven returned an indictment charging Fernandez, Morris and Crooks with conspiracy and fraud offenses. Fernandez was arrested in Jamaica on May 9, 2019, and was subsequently extradited to the United States. He has been detained since his arrest.
After Fernandez and his co-conspirators were charged in the case, further investigation revealed that Fernandez participated in similar lottery frauds against four additional victims, defrauding them of $684,500.
On February 3, 2021, Fernandez pleaded guilty to one count of conspiracy to commit mail and wire fraud.
Morris and Crooks pleaded guilty to the same charge. On June 28, 2021, Crooks was sentenced to 12 months and one day of imprisonment, and ordered to pay $1,196,207 in restitution. Morris awaits sentencing.
This investigation has been conducted by the Federal Bureau of Investigation, with the assistance of the U.S. Marshals Service’s Jamaica Foreign Field Office, the Jamaica Lottery Scam Task Force, the Jamaica Constabulary Force, the U.S. Postal Inspection Service, and U.S. Customs and Border Protection. The case is being prosecuted by Assistant U.S. Attorney Jonathan Francis.
Acting U.S. Attorney Boyle thanked the Justice Department’s Fraud Section for its assistance in this case, and the Justice Department’s Office of International Affairs and the Jamaican Ministry of Justice for coordinating the extradition proceedings in this matter.
The Justice Department has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud. The Hotline is staffed by experienced case managers who can provide personalized support to callers. Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311).
Man Pleads Guilty to Murder-for-HireRead the Press Release
Miami, Florida. – A Palm Beach County resident has pled guilty to one count of hiring someone to murder a woman in her West Palm Beach home.
During a hearing yesterday in federal district court in Ft. Lauderdale, 51-year-old Daniel Slater admitted that his original plan was to kill not only the woman, but also her husband. From May to June 2020, Slater met with an associate who agreed to commit the murders. They discussed logistics, including bringing in a third person to assist. At some point during their discussions, Slater and his associate drove by the victim’s home, during which Slater instructed his associate on how to carry out the murders when the time came. For instance, Slater pointed out which of the home’s windows to shoot through to kill the couple. Slater also instructed his associate to spray-paint the house to make it appear as if members of the Black Lives Matter movement had committed the crime. Slater agreed that as payment for the murders, he would forgive a debt that his associate owed him. Slater also agreed to pay the fees of the third person they talked about bringing in to help. In the end, the planned murders did not occur, and the intended victims suffered no physical harm.
Slater is scheduled to be sentenced on September 16, at 10:00 a.m., by U.S. District Judge James I. Cohn, who sits in Ft. Lauderdale. Slater faces up to 10 years in prison.
Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami, made the announcement. Assistant U.S. Attorneys Jessica Obenauf and Dayron Silverio are prosecuting the case.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 20-cr-80090.
###
Man Pleads Guilty to Federal Firearm ChargeRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that ALTON COOKS, from Orleans Parish, pleaded guilty on July 7, 2021 to a one-count indictment. COOKS was indicted by a federal Grand Jury on October 23, 2020.
On July 7, 2021, COOKS pleaded guilty as charged to being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(e). If the Court determines, at sentencing, that COOKS is an Armed Career Criminal, he faces a mandatory minimum sentence of 15 years up to life imprisonment, a $250,000 fine, up to 5 years supervised release following any term of imprisonment, and a $100 mandatory special assessment.
If the Court determines that he is not an Armed Career Criminal, COOKS faces up to 10 years imprisonment, up to a $250,000 fine, up to 3 years of supervised release following any term of imprisonment, and a $100 mandatory special assessment.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Orleans Police Department. It was prosecuted by Assistant United States Attorney Melissa Bücher of the U.S. Attorney’s Office.
* * *
Man Involved in Armed Robbery in Shreveport Sentenced to Federal PrisonRead the Press Release
SHREVEPORT, La. - Darren Watts, 26, of Shreveport, was sentenced by Chief U.S. District Judge S. Maurice Hicks, Jr. to 94 months in prison, followed by 5 years of supervised release, for his role in an armed robbery that took place in Shreveport in November 2018, announced Acting United States Attorney Alexander C. Van Hook.
On July 7, 2020, Watts pleaded guilty to robbery and using and carrying a firearm during and in relation to a crime of violence. According to evidence presented in court, Watts, along with Brandon Brown, Rekory Johnson and Courtney Daniels, formulated a plan to rob the Top Dollar Pawn Shop that was located on St. Vincent Avenue in Shreveport. Watts and Johnson entered the store wearing black hoodies, gloves, and clown masks covering their faces carrying handguns. They ordered the store clerks to the floor, opened the cash register and took cash out.
One of the clerks was then forced at gunpoint to open the counter where they also stole 18 pistols, a revolver, and a shotgun, as well as jewelry and over $2,000 in cash. Watts and his co-defendants fled the scene and later split up the stolen items. Several days after the robbery, Watts went around to other pawn shops in the Shreveport area where he pawned the stolen items.
The ATF and Shreveport Police Department conducted the investigation and Assistant U.S. Attorney J. Aaron Crawford prosecuted the case.
# # #
Man Convicted of Conspiracy to Import and Distribute FentanylRead the Press Release
A federal jury convicted a Rhode Island man today for conspiring to import and distribute fentanyl and fentanyl analogues, continuing criminal enterprise, money laundering conspiracy, and multiple obstruction offenses.
According to court documents and evidence presented at trial, Steven Barros Pinto, 40, of Pawtucket, conspired to import kilogram-quantities of fentanyl from China and use the fentanyl to manufacture counterfeit Percocet pills. Pinto personally distributed tens of thousands of the fentanyl-laced pills. Pinto acquired the fentanyl with the assistance of co-conspirators Daniel Vivas Ceron, of Colombia, who pleaded guilty in July 2019, and Anthony Gomes, of Rhode Island, who pleaded guilty in April 2018. Pinto also engaged in a series of obstructive acts intended to silence witnesses and tamper with evidence.
Pinto was convicted of conspiracy to distribute fentanyl and fentanyl analogues, conspiracy to import fentanyl and fentanyl analogues into the United States, continuing criminal enterprise, two counts of obstruction of justice, money laundering conspiracy, four counts of contempt, possession of contraband in a correctional facility, and tampering with evidence. He is scheduled to be sentenced on Oct. 14, and faces a mandatory minimum of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, U.S. Attorney Nicholas W. Chase for the District of North Dakota and Acting U.S. Attorney Scott E. Asphaug for the District of Oregon made the announcement.
This case was investigated by Homeland Security Investigations, the Drug Enforcement Administration, the U.S. Postal Inspection Service, Grand Forks Narcotics Task Force, the IRS, Royal Canadian Mounted Police, Portland Oregon Police Bureau – Drugs and Vice Division, Portland HIDTA Interdiction Task Force, Oregon State Police and the Grand Forks Police Department. The Justice Department’s Office of International Affairs provided valuable assistance.
Trial Attorneys Kaitlin Sahni and Imani Hutty of the Criminal Division’s Narcotic and Dangerous Drug Section, Assistant U.S. Attorney Chris Myers of the U.S. Attorney’s Office for the District of North Dakota and Assistant U.S. Attorney Scott Kerin of the U.S. Attorney’s Office for the District of Oregon are prosecuting the case.
Luck Man Sentenced to 7 Years for Possessing Firearms as a FelonRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Thomas Olsem, 53, Luck, Wisconsin, pleaded guilty today, and was sentenced by U.S. District Judge William M. Conley to 7 years in prison for possessing firearms as a felon.
Olsem was convicted of possessing two firearms, a .22 caliber “pen gun” and .380 handgun, that law enforcement found on March 9, 2020, while executing a search warrant on Olsem’s residence and shed. Olsem admitted to possessing those firearms. He has prior felony convictions for distributing amphetamines and eluding an officer, and was sentenced to prison in both of those previous cases. Olsem was also convicted in 2013 of being a felon in possession of several firearms.
At sentencing, Judge Conley noted that Olsem’s adult life was marked with criminal convictions, a pattern of returning to a criminal lifestyle, and continued possession of large quantities of drugs and firearms. Judge Conley remarked that Olsem has not shown that he is aging out of committing crimes, but instead his instant offense is worse than any of his prior convictions. Olsem was ordered to serve three years of supervised release after his prison term.
The charge against Olsem was the result of an investigation conducted by the Polk County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Los Angeles Man Indicted for Larceny, Resisting Federal Officer, and Child AbuseRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Los Angeles, California, man has been indicted by a federal grand jury for Larceny, Assaulting, Resisting, and Impeding a Federal Officer, and Child Abuse.
Julio Salvador Guevara, age 35, was indicted on July 17, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 8, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is ten years in federal prison and/or a $250,000 fine, three years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that in January 2018, Guevara stole a pickup truck and fled from several law enforcement officers on the Cheyenne River Sioux Indian Reservation. Guevara had two minor children in the stolen pickup during the chase, which involved speeds in excess of 85 miles per hour over washboard-style roads. Guevara was arrested after he stopped the pickup instead of driving over tire spikes placed on the road.
The charges are merely accusations and Guevara is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services, the Ziebach County Sheriff’s Office, and the Haakon County Sheriff’s Office. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Guevara was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Laredoan sentenced for importing meth inside tacosRead the Press Release
LAREDO, Texas – A 31-year-old resident of Laredo has been ordered to federal prison for bringing drugs into the country concealed in his “lunch,” announced Acting U.S. Attorney Jennifer B. Lowery.
Nicolas Castro Jr. pleaded guilty Nov. 30, 2020.
Today, U.S. District Judge Diana Saldana ordered him to serve an 87-month sentence to be immediately followed by five years of supervised release. In handing down the sentence, Judge Saldana noted Castro’s background and her concerns about how his graduation to drug smuggling after a prior conviction for alien smuggling.
On Sept. 8, 2020, Castro attempted to enter the United States at the Gateway to the Americas Bridge in Laredo. Authorities inspected Castro’s belongings and found a plastic bag with tacos and chips. Castro claimed the food was for his lunch.
Law enforcement referred him to secondary inspection where a K-9 alerted to the presence of narcotics within the bag. It then tested positive for meth.
Castro eventually admitted to knowing the tacos contained a kilogram of drugs and that he was going to be paid $1,500 to transport the drugs to Austin.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Brian Bajew prosecuted the case.
Justice Department Issues Statement on the U.S. Department of Agriculture’s Efforts to Invest in Competition in the Meatpacking IndustryRead the Press Release
Associate Attorney General Vanita Gupta issued the following statement today after the U.S. Department of Agriculture’s (USDA) request for public comment on how best to invest American Rescue Plan funds to improve competition and resiliency in the meatpacking industry:
“The Justice Department commends the USDA for today’s step toward spurring new entry and increasing competition in meatpacking. USDA’s efforts align with the department’s commitment to vigorously enforcing the antitrust laws in the agriculture industry. The antitrust laws work best when paired with robust government policies to ensure that new competitors can successfully enter and challenge entrenched incumbents.”
Jury Convicts Medical Equipment Company Owners of $27 Million FraudRead the Press Release
A federal jury convicted Dallas area owners and operators of two durable medical equipment companies Thursday of one count of conspiracy to defraud the United States and to pay and receive health care kickbacks and one count of conspiracy to commit money laundering.
According to the evidence presented at trial, Leah Hagen, 49, and Michael Hagen, 54, of Arlington, Texas, were owners and operators of two durable medical equipment (DME) companies: Metro DME Supply LLC (Metro) and Ortho Pain Solutions LLC (Ortho Pain), both operated out of the same location in Arlington. The defendants paid a fixed rate per DME item in exchange for prescriptions and paperwork completed by telemedicine doctors that were used to submit false claims to Medicare. The defendants paid illegal bribes and kickbacks and wired money to their co-conspirator’s call center in the Philippines that provided signed doctor’s orders for orthotic braces. The evidence at trial showed emails exchanged between Leah and Michael Hagen and their co-conspirators showing a per-product pricing structure for orthotic braces but disguising their agreement as one for marketing and other services.
Through this scheme, the defendants billed Medicare Parts B and C approximately $59 million and were paid approximately $27 million. The defendants wired millions of proceeds into their personal bank accounts, both in the U.S. and overseas. At sentencing, the Hagens each face a maximum sentence of 25 years in prison.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, Acting U.S. Attorney Prerak Shah of the Northern District of Texas, Special Agent in Charge Miranda Bennett of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region, and Special Agent in Charge Matthew J. DeSarno of the FBI’s Dallas Field Office made the announcement.
This case was investigated by HHS-OIG and the FBI and was brought as part of Operation Brace Yourself, a federal law enforcement action led by the Health Care Fraud Unit of the Criminal Division’s Fraud Section, in partnership with the U.S. Attorney’s Offices for the Districts of South Carolina, New Jersey, and the Middle District of Florida.
Assistant Deputy Chief Adrienne Frazior and Trial Attorneys Brynn Schiess and Catherine Wagner of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Jury Convicts Armed Fentanyl DealerRead the Press Release
Tampa, Florida – A federal jury has found Johnny Ordaz (32, Bradenton) guilty of possession of fentanyl with the intent to distribute it, possessing a firearm in furtherance of a drug trafficking crime, and possessing a firearm as a convicted felon. Ordaz faces a maximum penalty of 20 years in federal prison for the fentanyl offense, a consecutive mandatory minimum of 5 years, and up to life in prison, for possessing the firearm in furtherance of a drug trafficking crime, and up to 10 years’ imprisonment for possessing the firearm as a felon. His sentencing hearing is set for September 30, 2021.
Ordaz had been indicted on February 13, 2020.
According to testimony presented at trial, in September 2019, law enforcement officers conducted a traffic stop of a car that Ordaz was driving. During the traffic stop, the officers recovered a firearm with an extended magazine, loaded with 31 rounds of ammunition, wedged between the driver’s seat and the center console. They also seized a bag containing fentanyl from the driver’s side door handle, and a digital scale, and small clear plastic baggies. The officers also found a bag in the passenger seat that contained another firearm with an extended clip, loaded with 27 rounds of ammunition, 63 rounds of additional ammunition, another digital scale, sandwich bags, and more small clear plastic baggies. They also recovered $588 from Ordaz’s front pocket.
This case was investigated by the Manatee County Sheriff’s Office, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Charlie D. Connally.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Judge sentences St. Louis man for robbery and brandishing a firearm at six peopleRead the Press Release
ST. LOUIS – On Wednesday of this week, United States District Court Judge Stephen N. Limbaugh, Jr. accepted pleas of guilty from Kevin Moore for the crimes of robbery and brandishing a firearm in furtherance of that robbery. Immediately after the guilty pleas, Moore, a 39-year old St. Louis, Missouri resident, was sentenced to a 141-month term of imprisonment.
On August 28, 2019, Moore entered Behrmann’s Tavern in the 3100 block of Meramec Street located in St. Louis and announced a robbery. He ordered five customers and one employee to the ground and held them at gunpoint with a semi-automatic rifle.
One of the customers refused to get on the ground. Moore pushed the barrel of his rifle into the side of the customer’s ribcage and tried to take his property. Moore then put the barrel of his rifle into the back of another customer and robbed that customer of his money. Continuing with his robbery spree, Moore pointed his semi-automatic, assault rifle at the other patrons and commandeered their valuables, including their money and other items.
Moore also stole money from the cash register after forcing an employee to open the register. Moore then fled the tavern. Moore was later apprehended by the police.
The St. Louis Metropolitan Police Department investigated this case. Assistant United States Attorney Jason Dunkel is handling this matter.
#####
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto for an initial appearance on a criminal complaint on July 8 was:
Edward Timothy Cockerham, 42, of Kalispell, on charges of sexual exploitation of a child. If convicted of the most serious crime, Cockerham faces a minimum 15 years to 30 years in prison, a $250,000 fine and five years to life of supervised release. Cockerham was detained pending further proceedings. Homeland Security Investigations and the Flathead County Sheriff’s Office investigated the case. PACER case reference. 21-70.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on July 8 was:
Jeremy Michael Adams, 32, of Billings, on charges of felon in possession of a firearm. If convicted of the most serious crime, Adams faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Adams was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-37.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
XXX
Identity thief who used bitcoin, ‘burner phones,’ and digital wallets to steal more than $500,000 sentenced to prisonRead the Press Release
Seattle – A prolific identity thief who traveled the country using fraud to buy luxury goods and items he could convert to cash and bitcoin, was sentenced today in U.S. District Court in Seattle to 3 years in prison, announced Acting U.S. Attorney Tessa M. Gorman. Between February 2017 and December 2018, Aaron Laws, 33, of Atlanta, Georgia, traveled through Washington, Oregon, New Mexico, Oklahoma, Massachusetts, Arizona, Georgia, and Minnesota making fraudulent charges on victim credit cards. Laws had a sophisticated scheme, recruiting others, and using digital wallets, bitcoin and burner phones to try to avoid detection. At the sentencing hearing U.S. District Judge Robert S. Lasnik said Laws “had a very complicated criminal enterprise and nothing seemed to deter him.”
“Motivated by greed, this defendant attempted to use digital advances to hide his old-fashioned fraud,” said Acting U.S. Attorney Tessa M. Gorman. “At all phases—from accessing the dark web, to loading stolen data onto digital wallets, to acquiring prepaid anonymous phones, to adopting aliases, to laundering money through anonymous cryptocurrency accounts—his operation was sophisticated and difficult to detect. But ultimately law enforcement stopped him in his tracks.”
According to records filed in the case, Laws purchased credit card information from so-called ‘carding websites’ on the dark web. The information was loaded onto digital wallets on prepaid phones and was quickly used for fraudulent purchases of electronics, jewelry and other items that could be sold for cash or bitcoin. In many instances, Laws sent coconspirators into the stores to make the purchases in order to avoid detection. Nevertheless, Laws profited the most from the scheme – as much as $500,000.
Laws used the stolen credit card information to purchase a Rolex for more than $34,000. He purchased diamond jewelry including a diamond encrusted pendant in the shape of a bitcoin symbol. Laws also purchased at least $166,000 in bitcoin during the time period from February 2017 until November 2017, buying the bulk of this bitcoin—$93,000—in a single day, on August 23, 2017.
Despite an arrest in October 2017, Laws continued his fraud spree. Even after being sentenced to serve jail time on the weekends in Georgia, he was undeterred and continued to commit fraud across the country.
On January 31, 2020, Laws pleaded guilty to Conspiracy to Commit Bank Fraud and Aggravated Identity Theft. Following his prison term, Laws will be on supervised release for 5 years. He was ordered to pay $623,554 in restitution.
The case was investigated by the United States Secret Service and the Kirkland Police Department.
The case was prosecuted by Assistant United States Attorney Marie Dalton.
Georgia Woman and Montgomery Man Plead Guilty to Their Part in Drug Distribution Conspiracy Involving Montgomery PhysicianRead the Press Release
Montgomery, Ala. – Today, Acting United States Attorney Sandra J. Stewart announced that two individuals have pleaded guilty to conspiring to unlawfully distribute a controlled substance. On July 8, 2021, Shayla Denise Moorer, 39, of Suwanee, Georgia entered her guilty plea. Last week, on June 30, 2021, Naaman Rashad Jackson, 33, from Montgomery, Alabama admitted his guilt in federal court.
Moorer’s and Jackson’s guilty pleas follow an April 2021 indictment charging them and thirteen others with conspiring to unlawfully distribute oxycodone, a Schedule II opioid controlled substance. The overall conspiracy began at an unknown date and continued through April 2020. Both Moorer and Jackson operated in the scheme with Deandre Varnel Gross, who previously pleaded guilty to his role in the conspiracy. According to court records, Moorer and Jackson entered into an agreement with associates of theirs to obtain prescriptions of oxycodone from Montgomery, Alabama physician, D’livro Lemat Beauchamp, despite there being no medical reason to do so. They would then fill those prescriptions at a pharmacy. Once they had the oxycodone tablets, Moorer and Jackson would sell some or all of them to others. Often, they would receive the prescriptions without actually seeing Beauchamp. Instead, Moorer and Jackson would obtain the prescriptions from other co-conspirators.
In Moorer’s plea agreement, she admitted to first receiving a prescription as part of the scheme on or about April 18, 2014. Jackson’s agreement states his first prescription was received on or about July 3, 2013. Thereafter, they both received prescriptions for either 60 or 90 30-milligram oxycodone tablets made out to them and signed by Beauchamp approximately once a month. Moorer continued in the scheme until March of 2020 and Jackson continued until April 2020. Over the course of Moorer’s involvement, she admitted to receiving and filling 63 oxycodone prescriptions which resulted in approximately 5,100 illegally obtained tablets and a total of 153,000 milligrams of the highly addictive and abused drug. During Jackson’s participation in the scheme, he obtained 47 prescriptions for 4,230 pills, equaling 126,900 milligrams of oxycodone.
Moorer’s and Jackson’s sentencing hearings will take place on September 28, 2021 and they are both facing a maximum of 20 years in prison. The cases against the other thirteen named in the indictment are still pending.
This case was investigated by the Drug Enforcement Administration’s Tactical Diversion Squad, the Shelby County Sheriff’s Office, and the Montgomery Police Department, with assistance from the Alabama Board of Medical Examiners, the United States Department of Health and Human Services Office of Inspector General, and the United States Department of Defense Office of Inspector General. Assistant United States Attorneys Jonathan S. Ross and Alice S. LaCour are prosecuting the case.
Fremont Man Convicted of Aggravated Bank Robbery, Sentenced to LifeRead the Press Release
Acting United States Attorney Jan Sharp announced that Anthony Wayne Hall, 65, of Fremont, Nebraska, was sentenced today in federal court in Omaha for Aggravated Bank Robbery. United States District Judge Robert F. Rossiter, Jr. sentenced Hall to life imprisonment under the federal “three strikes” law.
The evidence at trial showed that on November 21, 2019, Hall, armed with a realistic-looking replica revolver, robbed the First State Bank in Fremont. Hall left town with approximately $10,000 in cash after walking one bank employee to his vehicle under threat of being shot. A customer who attempted to enter the bank during the robbery was the first to call 911. On November 22, 2019, officers in Saint Joseph, Missouri attempted to stop Hall’s blue Chevrolet Camaro, but Hall fled and then crashed into a pole. Hall fled on foot and could not be located. Hall then purchased a white Chevrolet Impala. On November 30, 2019, officers with the Missouri State Highway Patrol attempted to stop the Impala after noticing that the license plates did not match the vehicle. A high-speed pursuit ensued before the Impala crashed into a tree. Hall again fled on foot. Law enforcement located replica firearms, knives, and other items near the crash scene. The next day, on December 1, 2019, a trooper encountered Hall at a nearby gas station and Hall indicated that he was the driver who had fled the night before. Among the cash found on Hall’s person were five bills known to have been taken in the First State Bank robbery.
Hall, who had relocated to Fremont from Indiana approximately two months prior to the First State Bank robbery, has previously been convicted of murder, rape, and seven prior armed robberies. Hall had been released from prison on his prior convictions in 2018.
FBI Omaha Special Agent in Charge Eugene Kowel said, “Anthony Hall’s career of committing violent crimes ended today. A mandatory life sentence means he will no longer be free to rob and menace our community. The FBI will always work with our law enforcement partners to hold violent criminals like Hall accountable for their actions.”
Acting United States Attorney Jan Sharp added, “Hall is the poster child for the type of offender who needs to be targeted for prosecution and long-term removal from society. He has earned his life sentence.”
This case was investigated by the Fremont Police Department, Saint Joseph Police Department, Missouri State Highway Patrol, and the Federal Bureau of Investigation.
Fort Walton Beach Man Sentenced to Thirty Years in Prison for Drug Trafficking, Firearm and Arson-Related CrimesRead the Press Release
PENSACOLA, FLORIDA – Late Thursday afternoon, a federal judge in Pensacola sentenced Tony M. Streeter, 47, of Fort Walton Beach, to 30 years in prison on multiple drug charges, firearms offenses, and a conspiracy to commit an arson related offense. The sentence, which followed a jury trial in federal court in March of this year, was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
According to testimony presented at trial, in August 2019, law enforcement conducted an undercover methamphetamine purchase from Streeter at his Fort Walton Beach residence. Thereafter, law enforcement executed a search warrant at Streeter’s residence. Among items obtained from his residence, law enforcement seized Streeter’s 2012 Mercedes SUV and placed it in a secured impound lot at the Okaloosa County Sheriff’s Office for further processing. Within approximately 72 hours of the vehicle being secured in the impound lot, it was set ablaze. Further evidence revealed that Streeter conspired with his sister, Betty Joe Streeter, and his nephew, William Sims, to break into the law enforcement impound lot under the cover of darkness and attempt to locate and remove a hidden firearm and drugs from Streeter’s SUV. After recovering a hidden stash of methamphetamine from Streeter’s SUV, Streeter then instructed Sims to set the vehicle ablaze in hopes of destroying any remaining evidence. Despite their efforts, a loaded firearm was later located in the burned vehicle when searched by law enforcement. Betty Joe Streeter and Sims entered guilty pleas related to this case and have been previously sentenced to prison.
“This sentence acknowledges the defendant’s designation as a Career Offender and an Armed Career Criminal under federal law, as well as the danger associated with his acts of arson,” stated Acting U.S. Attorney Coody. “Moreover, the sentence should serve as a deterrent to those who would seek to enlist others in efforts to conceal their criminal conduct.”
“When we collaborate with our law enforcement partners, we effectively interrupt the cycle of violence,” said ATF Special Agent in Charge Craig W. Saier. “ATF will not tolerate felons in possession of firearms nor the use of arson, a violent crime, to conceal their criminal activities.”
“It’s incredibly rewarding to see that Tony Streeter’s long criminal legacy is now at a halt for decades thanks to the dedicated efforts and teamwork of our local, state, and federal partners,” said Sheriff Eric Aden. Streeter is no longer a threat to public safety, and I want to applaud all those whose unwavering commitment to our community helped put this dangerous individual behind bars where he belongs.”
This conviction was the result of an investigation conducted by the Okaloosa County Sheriff’s Office, the Bureau of Alcohol Tobacco, Firearms and Explosives, and the Florida Department of Law Enforcement. Assistant United States Attorneys David L. Goldberg and Meredith Steer 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.