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Friday 25 June 2021
Alleged NCAA ticket fraudster taken into custodyRead the Press Release
HOUSTON – A 46-year-old California resident has been charged in a nationwide ticket scam that included a Texas A&M football game, announced Acting U.S. Attorney Jennifer B. Lowery.
A Houston federal grand jury returned a five-count indictment against Derrick Langford April 1, on charges of conspiracy, wire fraud and aggravated identity theft. Authorities arrested him in California yesterday. He is set to make his initial appearance before U.S. Magistrate Judge Donna M. Ryu in Oakland, California, at 1 p.m. (PST) today.
According to the indictment, Langford used email to obtain stolen credit card information from victims across the United States. He then allegedly used that data and false identities to buy tickets for sporting events, concerts and other entertainment venues across the United States which he then re-sold on internet-based ticket resale sites like Ticket Liquidator.
One such event tied to Langford was the Texas A&M football game against Clemson on Sept. 8, 2018, according to the charges. As part of the scheme, Langford had allegedly created false buyer accounts and used stolen credit card numbers to buy tickets to that game. According to the indictment, Langford then resold the fraudulently-purchased tickets on ticket resale sites to unsuspecting buyers.
Texas A&M discovered the fraud and invalidated the tickets, according to the charges. However, some had already been allegedly been sold to unsuspecting buyers which caused the university to incur a 100% loss on the fraudulent tickets.
As the scheme continued, Langford received stolen credit card information and personal identifying information of more than 75 victims in one of his email accounts, according to the charges.
If convicted of wire fraud or conspiracy to do so, Langford faces carries a penalty of up to 20 years in federal prison and a possible $250,000 maximum fine. The identity theft carries an additional two years which must be served consecutively to any other prison term imposed.
The FBI conducted the investigation with the assistance of the Texas A&M University Police Department. Assistant U.S. Attorneys Quincy Ollison and Belinda Beek are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.14 Defendants Indicted in Alleged $1 Million Kickback SchemeRead the Press Release
TOPEKA, KAN. – A federal grand jury in Topeka, Kansas, returned an indictment charging 14 people in connection to a kickback scheme involving more than $1 million in fraudulent customer refunds.
Kanesha Mercer, 32, Darius Polite, 27, and Rudy Hunt, 29, were indicted on Conspiracy to Commit Wire Fraud. Mercer, Polite, Hunt as well as Veronica Kilman, 31, were indicted for Wire Fraud.
According to court documents, Mercer, Polite, Hunt and Kilman are all former employees of Advanced Call Center Technologies (ACCT) in Junction City, Kansas. ACCT provides support services including processing refunds for AT&T Digital Life home security systems. Mercer, Polite, Hunt, and Kilman are accused of authorizing fraudulent refunds then directing the deposits into the bank accounts of other accomplices who agreed to return a percentage of the money.
A federal grand jury also indicted Sharika Pope, Erica Jackson, Caylon McCormick, Mercele Brooks, Shunqureau Gilbert, Fontelle Jolly, Kory Epps, Jr., Kiondra Armstrong, Anthony Charite, and Shenece Marryshow on Laundering of Money Instruments.
Each of the charges, Conspiracy to Commit Wire Fraud, Wire Fraud, and Laundering of Money Instruments, carries a penalty of up to 20 years in prison if convicted.
The Federal Bureau of Investigation is investigating the case.
Assistant U.S. Attorney Skip Jacobs is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Thursday 24 June 2021
Wilmington Gang Member Receives 30 Months for Gun OffenseRead the Press Release
RALEIGH, N.C. – A Wilmington man was sentenced today to 30 months in prison and 3 years of supervised release for being a felon in possession of a firearm. On March 24, 2021, Xavier Jamar Hall pled guilty to the charge.
According to court documents and other information presented in court, Hall, 28, illegally possessed a stolen 9mm handgun as a previously convicted felon. Hall is a validated member of the United Blood Nation street gang and former employee of TRU Colors Brewery in Wilmington. On June 19, 2020, Wilmington Police Department Officers attempted to stop a vehicle in which Hall was a passenger to serve him with outstanding warrants. The vehicle fled and Hall eventually jumped and ran through an abandoned lot. While running, Hall made a motion that led officers to believe that he threw something. A search of the area recovered a handgun. Forensic examination of DNA found on the gun confirmed that Hall had possessed it.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Wilmington Police Department (WPD) investigated the case and Assistant U.S. Attorney Bryan Stephany prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-CR-00190-D.
Vallejo Felon Indicted for Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Jacob Harding-Abeyta, 28, of Vallejo, charging him with being a felon in possession of a firearm, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Oct. 7, 2020, a parole search of Harding-Abeyta’s residence resulted in the discovery of a loaded .45-caliber Springfield XDS firearm in his bedroom. Harding-Abeyta is prohibited from possessing firearms or ammunition because he has prior felony convictions in Solano County for attempted murder in 2014 and vehicle theft in 2011.
This case is the product of an investigation by the Solano County Sheriff’s Office, the Solano County District Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the FBI’s Solano County Violent Crimes Task Force. Assistant U.S. Attorneys Jason Hitt and Adrian T. Kinsella are prosecuting the case.
If convicted, Harding-Abeyta faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
Two More Plead Guilty to Conspiring to Stage Automobile Accidents in Order to Defraud Insurance and Trucking CompaniesRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that JAMES “CURTIS” WILLIAMS (“WILLIAMS”), age 66 of Gibson, Louisiana, and RYAN WHEATEN (“WHEATEN”), age 53, of Lafayette, Louisiana, entered a plea of guilty on June 23, 2021 to Conspiracy to Commit Mail Fraud, in violation of Title 18, United States Code, Section 371, arising out of staged automobile accidents with tractor-trailers occurring in New Orleans before United States District Court Judge Lance M. Africk.
According to today’s guilty plea, on March 27, 2017, WILLIAMS conspired with co-defendants-passengers Tanya Givens (“Givens”), John Diggs (“J. Diggs”), and Lois Russell (“Russell”) to stage an accident with a tractor-trailer at the intersection of Chef Menteur Highway and Downman Road. Damien Labeaud (“Labeaud”) and Roderick Hickman (“Hickman”), who have pleaded guilty to staging other accidents, also participated in this accident. Hickman, while driving Russell’s car, intentionally struck the 18-wheeler and then fled the scene with Labeaud. Russell advised NOPD that she was the driver and she, along with WILLIAMS, Givens and J. Diggs, made claims for personal injuries. In total, the victim trucking and insurance companies paid out approximately $272,500.00 for these fraudulent claims. Today, WILLIAMS joins Hickman, Russell, Givens and J. Diggs in pleading guilty to this staged accident.
Also according to today’s guilty plea, on May 17, 2017, WHEATEN, along with participants Labeaud, Mario Solomon (“Solomon”), Henry Randle (“Randle”), and Dakota Diggs (“D. Diggs”), participated in a staged automobile accident in the vicinity of U.S. Highway 90 East and Calliope Street in New Orleans. Labeaud and Solomon fled the scene. Randle falsely reported to the NOPD that he had been driving and that the tractor-trailer had struck his vehicle. Shortly thereafter, Labeaud and Solomon went on to stage a second accident in the vicinity of Louisa Street and Chickasaw Street with Bernell Gale (“Gale”), Troy Smith (“Smith”), Marvel Francois (“Francois”), and another passenger. Labeaud, Solomon, Wheaten, Gale, Smith, and Francois were also charged. Labeaud, Solomon, Gale, Smith, and Francois already pled guilty. After the staged accident, Wheaten, Randle, and D. Diggs made claims for personal injuries. The victim trucking and insurance companies paid out approximately $10,000.00 for these fraudulent claims.
WILLIAMS and WHEATEN face a maximum sentence of five (5) years. Upon release from prison, WILLIAMS and WHEATEN also face a term of supervised release up to (3) three years, and/or a fine of $250,000 or the greater of twice the gross gain to each defendant or twice the gross loss to any person under Title 18, United States Code, Section 371. Sentencing in this matter is scheduled for October 27, 2021.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Edward J. Rivera, Assistant U.S. Attorney Maria Carboni, Assistant U.S. Attorney Shirin Hakimzadeh, and Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
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Tulsa Couple Found Guilty on Child Abuse ChargesRead the Press Release
A federal jury found a Tulsa couple guilty Wednesday for enabling and committing acts of child abuse against an Indian minor, announced Acting U.S. Attorney Clint Johnson.
The jury convicted Craig Allan Morrison, 37, of two counts of child abuse in Indian Country and Amanda Lyn Walker, 42, with two counts of enabling child abuse in Indian Country. During the trial the jury received evidence describing two separate instances of child abuse involving a then three-year-old child.
The first incident took place on or about December 20, 2019, when other family members observed and photographed a hand-shaped bruise on the child’s face. The second incident took place on or about February 18, 2020, when the child victim was taken to the Saint Francis Hospital Pediatric Emergency Room with injuries to the child’s head, back, shoulder, abdomen, buttocks, and leg. Laboratory testing showed elevated liver enzymes and elevated amylase. A pediatrician who treated the victim testified these laboratory tests indicated liver and pancreatic injuries and that the child’s injuries were caused by child abuse. These crimes took place within the Muskogee Nation Reservation. Tulsa Police Department later interviewed the couple and charged them with child abuse.
“Because of the team of committed investigators and prosecutors, Craig Morrison and Amanda Walker have been brought to justice,” said Acting U.S. Attorney Clint Johnson. “It is heartbreaking when children suffer abuse at the hands of individuals who they should be able to trust for their care. My office and our law enforcement partners remain committed to prosecuting perpetrators of child abuse in Indian Country.”
Judge Heil presided over the trial. Walker and Morrison will be sentenced on January 24 2022.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorneys Melody Noble Nelson and Chantelle Dial prosecuted the case.
Three Texas Men Sentenced to Prison for Using Dating App to Target Gay Men for Violent CrimesRead the Press Release
Three Texas men were sentenced yesterday for violent crimes.
Michael Atkinson, 28, Pablo Ceniceros-Deleon, 21, and Daryl Henry, 24, were sentenced to prison terms for their involvement in a scheme to target gay men for violent crimes. Atkinson was sentenced to over 11 years in prison, Ceniceros-Deleon was sentenced to 22 years in prison, and Henry was sentenced to 20 years in prison.
“These three men participated in and committed acts of violence against innocent victims because they believed the victims were gay men,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This type of bias-motivated violence runs contrary to our values and violates our federal civil rights laws. The Department of Justice’s Civil Rights Division will aggressively investigate and prosecute those who target members of the LGBTQI community.”
“These defendants brutalized multiple victims, singling them out due to their sexual orientation. We cannot allow this sort of violence to fester unchecked,” said Acting U.S. Attorney Prerak Shah for the Northern District of Texas. “The Department of Justice is committed to prosecuting hate crimes. In the meantime, we urge dating app users to remain vigilant. Unfortunately, predators often lurk online.”
“One of the FBI’s top priorities is to defend the civil rights of the communities we serve. We actively work with our law enforcement partners to investigate hate crimes and achieve justice for the victims impacted by these violent crimes,” said Special Agent in Charge Matthew J. DeSarno of the FBI Dallas Field Office. “The victims in this case were specifically targeted because of their sexual orientation. The FBI wants to reassure the public that we will pursue individuals who commit violent hate acts against any member of our community.”
According to documents filed in connection with this case, these three defendants admitted that they conspired to and then targeted as many as nine men in and around Dallas, Texas for violent crimes including kidnapping, carjacking, and hate crimes. Beginning on or around Dec. 6, 2017, members of this conspiracy used Grindr, a social media dating platform used primarily by gay men, to lure men to an apartment complex in Dallas. When the men arrived, the conspirators held the men at gunpoint and forced them to drive to local ATMs to withdraw cash from their accounts.
Atkinson and Henry admitted to joining this conspiracy to target gay men for violent crimes. On Dec. 11, 2017, the conspirators used Grindr to lure five men to a vacant apartment in Dallas where they held the men at gunpoint, kidnapped, carjacked, and assaulted them. As part of his plea agreement, Henry admitted that he used violence and threats of violence to hold the victims in the backroom and closet of the vacant apartment while other conspirators used the victims’ vehicles to drive to local ATMs to steal cash from the victims’ accounts. Atkinson and Ceniceros-Deleon admitted that they traveled in the carjacked vehicles to take cash from the victims’ accounts. While the victims were held at gunpoint, some were physically assaulted, at least one victim was sexually assaulted, and all of the victims were taunted with gay slurs.
In 2019, Atkinson pleaded guilty to one count of conspiracy to commit hate crimes, kidnapping and carjacking and one count of kidnapping.
Ceniceros-Deleon pleaded guilty in 2019 to one hate crime count, one count of carjacking, and one count of use of a firearm during and in relation to a crime of violence.
Henry pleaded guilty in 2019 to one hate crime count and one count of conspiracy to commit hate crimes, kidnapping and carjacking.
A final member of the conspiracy will be sentenced on Oct. 6, 2021. This final conspirator, Daniel Jenkins, pleaded guilty on June 3 to a hate crime violation; conspiracy to commit hate crimes, kidnapping and carjacking; and use of a firearm during and in relation to a crime of violence. Under the plea agreement, Jenkins faces a maximum sentence of 26 years in prison.
The FBI’s Dallas Field Office conducted the federal investigation; a separate criminal investigation is being conducted by the Dallas Police Department. Special Litigation Counsel Rose E. Gibson and Trial Attorney Kathryn Gilbert of the Justice Department’s Civil Rights Division, along with Assistant United States Attorney Nicole Dana, are prosecuting the case.
Stockton Man Indicted for Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Steven Domingo, 37, of Stockton, charging him with being a felon in possession of a firearm, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Domingo was on federal probation at the time of the offense. The weapon he is accused of possessing is a Fabrique Nationale (FN) Herstal FNS-40, a .40‑caliber semi-automatic handgun. Domingo has been convicted of several felonies.
This case is the product of an investigation by the Stockton Police Department, the California Department of Corrections and Rehabilitation, and the San Joaquin County District Attorney’s Office. Assistant U.S. Attorney Michael W. Redding is prosecuting the case.
If convicted, Domingo faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is also a collaboration with Operation Ceasefire. As part of Operation Ceasefire in the city of Stockton, the U.S. Attorney’s Office works closely with the San Joaquin County District Attorney’s Office and the Stockton Police Department to deliver on Ceasefire’s mission to establish a peaceful community by investigating and prosecuting members and associates of criminal groups who continue to commit serious and violent felonies in the city, including individuals who have previously been prosecuted for illegal gun and gang-related crimes.
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.
Statement of Attorney General Merrick B. Garland on the Investigation into the January 6th Attack on the CapitolRead the Press Release
U.S. Attorney General Merrick B. Garland’s statement on the investigation into the January 6th Attack on the Capitol:
“The Department of Justice reached several benchmarks in our investigation into the January 6th attack on the U.S. Capitol.
“We have now crossed the threshold of 500 arrests, including the 100th arrest of a defendant on charges of assaulting a federal law enforcement officer. This morning, we arrested our first defendant on charges that include assaulting a member of the news media.
“I could not be more proud of the extraordinary effort by investigators and prosecutors to hold accountable those who engaged in criminal acts that day. Particular credit goes to those serving as prosecutors and agents in Washington, D.C., as well as those in FBI field offices and U.S. Attorney’s Offices across the country, and with the Department’s National Security Division.
“Our efforts to bring criminal charges are not possible without the continued assistance of the American public. To date, we have received their more than 200,000 digital tips.
“I assure the American people that the Department of Justice will continue to follow the facts in this case and charge what the evidence supports to hold all January 6th perpetrators accountable.”
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The FBI continues to request the public’s assistance in identifying individuals sought in connection to the January 6th attack, and I encourage all of our citizens to visit https://www.fbi.gov/wanted/capitol-violence to view images and video of the crimes committed that day. Anyone with information to share can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
The charges contained in any criminal complaint or indictment are merely allegations. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Southwest Virginia Man Sentenced for Dealing Firearms Without a LicenseRead the Press Release
ABINGDON, Va. – A Dickenson County, Virginia man, who illegally sold firearms without a license was sentenced last week to six months in federal prison.
Tommy Roger Dotson, 65, pleaded guilty in March 2021 to one count of willfully engaging in the business of selling firearms without a license. As part of his plea, Dotson relinquished 59 seized firearms and more than $13,000 in cash.
According to court documents, in October 2019 the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) began an investigation of firearm sales at the Indian Mountain Trade Center to identify and monitor individuals who appeared to be in the business of dealing firearms without a Federal Firearms License (FFL). Investigators with the ATF observed Dotson, and others, regularly selling firearms to Trade Center attendees. Dotson sold numerous firearms from a sales booth, where he regularly displayed 25 to 50 firearms for sale. During the investigation, Dotson also instructed another unlicensed firearms dealer to the lie to the ATF.
Acting U.S. Attorney Daniel P. Bubar made the announcement.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Virginia State Police investigated the case.
Assistant United States Attorneys Zachary T. Lee and Whit D. Pierce prosecuted the case for the United States.
South Carolina Man Pleads Guilty to Interstate StalkingRead the Press Release
PORTLAND, Maine: A South Carolina man pleaded guilty yesterday in federal court to interstate stalking, Acting U.S. Attorney Donald E. Clark announced.
According to court records, during the days leading up to July 25, 2019, Dustin Beach, 27, drove a woman in his truck from South Carolina to Maine. During the drive to Maine, Beach threatened the woman and injured her by physically assaulting her with his hands and other objects, including a hammer and metal chain. These assaults resulted in the woman being placed in fear of serious bodily injury and substantial emotional distress.
Beach faces up to 10 years in prison, a $250,000 fine and up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and the Lewiston Police Department investigated the case.
Simpson County Man Convicted of Firearm and Controlled Substance OffensesRead the Press Release
Bowling Green – A federal jury convicted a Simpson County, Kentucky, man yesterday of Distribution and Possession with the Intent to Distribute a Controlled Substance and Possession of a Firearm in Furtherance of Drug Trafficking.
According to court documents and evidence presented at trial, Donavan Bell, 40, sold greater than five grams of methamphetamine to a confidential source on July 23, 2019. On that date a confidential source was given a recording device by agents with Homeland Security Investigations (HSI) and the South-Central Kentucky Drug Task Force. The confidential source then drove to Bell’s residence in Simpson County, Kentucky where they picked up Bell and drove him to meet with a methamphetamine dealer. Bell purchased additional methamphetamine and then sold more than five grams of methamphetamine to the confidential source for $250. The entire transaction was video recorded. During the transaction, Bell appeared to have a handgun sitting on the table in front him.
On August 7, 2019, law enforcement executed a search warrant at Bell’s residence in Simpson County, Kentucky. As law enforcement surrounded the house, a Simpson County Sheriff’s Deputy saw an arm throw a bag out of a back window. The bag was recovered and contained greater than five grams of methamphetamine. Law enforcement also located digital scales, money, and two handguns hidden in an air vent. The air vent appeared to have been made to act as a hiding spot for items. The handguns were loaded, and one resembled the firearm seen on video during the controlled purchase conducted on July 23, 2019.
After the jury convicted Bell, they were presented with evidence that Bell had a prior federal conviction for Possession with the Intent to Distribute Cocaine Base in Western District of Kentucky case number 1:08-CR-00007. Due to this prior conviction, and Bell having served more than twelve months for that conviction, and his release from custody on that sentence within fifteen years of the new conviction, Bell will face enhanced penalties.
Sentencing is scheduled for September 16, 2021. Bell faces a mandatory minimum of fifteen years imprisonment due to the enhanced punishments, with a maximum potential penalty of life imprisonment.
Acting U.S. Attorney Michael A. Bennett of the Western District of Kentucky and HSI Special Agent in Charge Jerry C. Templet, Jr. made the announcement.
HSI, the South-Central Kentucky Drug Task Force, and the Simpson County Sheriff’s Department investigated the case.
Assistant U.S. Attorneys Mark J. Yurchisin II and Madison Sewell of the Bowling Green U.S. Attorney’s Office prosecuted the case with the assistance of Cristy Crockett, paralegal.
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Schuylkill County Woman Pleads Guilty to Methamphetamine TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Samantha Blume, age 30, formerly of Frackville, Pennsylvania, pleaded guilty today before U.S. District Court Judge Malachy E. Mannion to aiding and abetting the distribution of methamphetamine.
According to Acting United States Attorney Bruce D. Brandler, Blume admitted to aiding and abetting the distribution of highly-pure crystal methamphetamine in the Schuylkill County area in February 2019. Blume and her then boyfriend, Shaquane Scott, age 31, also of Frackville, were indicted by a grand jury in September 2019 for methamphetamine trafficking.
On June 23, 2021, Judge Mannion sentenced Shaquane Scott to six years’ imprisonment for methamphetamine trafficking.
This matter was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Schuylkill County Drug Task Force. Assistant U.S. Attorney Robert J. O’Hara is prosecuting the case.
Judge Mannion ordered that a presentence report be completed for Blume. Sentencing will be scheduled at a later date.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
The charge carries a mandatory minimum sentence of five years in prison. The maximum sentence under federal law is up to forty years in in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Rochester Resident Who Posted Molotov Cocktail Recipe on Social Media During Protests Pleads Guilty to Civil DisorderRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Ryan Howe a/k/a Rylea Autumn, 27, of Rochester, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to civil disorder. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that in September 2020, there were violent protests and riots in Rochester over the deaths of George Floyd and Daniel Prude. In addition, on September 23, 2020, the Kentucky Attorney General announced that a grand jury had declined to indict police officers in relation to the death of Breonna Taylor. In the wake of the Kentucky Attorney General’s announcement, several members of the public – including people and groups in Rochester – expressed their disagreement with the decision not to charge the officers and declared their intention to protest in the evening on September 24, 2020. Through social media, several of these individuals expressed, in sum and substance, a desire to burn down the City of Rochester. A group of approximately 250 people protested in the streets of Rochester in the evening on September 24, 2020. Rochester Police Department officers were present at the protest for the purposes of, among other things, ensuring the safety of protesters and the public, and protecting property from damage.
On September 23, 2020, the defendant posted a message to Facebook, which included a link to an article about the grand jury’s decision not to indict certain officers in the Breonna Taylor case and the statement, “Burn this shit to the (expletive) ground.” The next day, on September 24, 2020, Howe posted a message to Facebook, which read, “Good morning to everyone ready to burn this whole (expletive) country to the ground!” That same day, at approximately 8:32 a.m., the defendant also posted a message on his Facebook account that included a recipe for a Molotov cocktail and guidance on how to use one against police officers.
The plea is the result of an investigation by Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Monroe County Sheriff’s Department, under the direction of Sheriff Todd Baxter; and the Rochester Police Department, under the direction of Chief Cynthia Herriott-Sullivan.
Sentencing is scheduled for October 4, 2021, at 10:15 a.m. before Judge Siragusa.
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Reno Man Pleads Guilty to Damaging Federal Courthouse During May 2020 Protest in RenoRead the Press Release
RENO, Nev. — A Reno man today pleaded guilty to damaging the Bruce R. Thompson Federal Courthouse in the late evening of May 30, 2020, following a protest relating to the May 25, 2020 death of George Floyd in Minneapolis.
According to court documents and admissions made in court, Keith Moreno, 28, threw a cigarette receptacle (weighing about 23 pounds) and a rock through the first floor windows near the front entrance of the courthouse. Moreno broke at least one of the courthouse windows.
Moreno pleaded guilty to one count of Destruction of Government Property. He is scheduled to be sentenced by U.S. District Judge William B. Shubb on September 16, 2021. Moreno faces a statutory maximum penalty of 10 years in prison and a $250,000 fine.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI made the announcement.
This case is the product of an investigation by the FBI, Nevada Attorney General’s Office, Reno Police Department, Washoe County Sheriff’s Office, and U.S. Marshals Service.
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Portsmouth Woman Pleads Guilty to Fraudulently Obtaining Pandemic Unemployment Benefits for Virginia Prison InmatesRead the Press Release
NORFOLK, Va. – A Portsmouth woman pleaded guilty today to her involvement in a fraudulent scheme to obtain over $300,000 in pandemic-related unemployment benefits by using the personal identifying information of over 30 Virginia prison inmates.
“This scheme resulted in the deliberate theft of unemployment funds that were intended to serve as a lifeline for members of our communities who faced financial hardship during the pandemic,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “As Attorney General Garland recently emphasized, we will continue to work with our law enforcement partners to use all available tools to protect these essential taxpayer-funded resources and hold accountable those who seek to illegally profit from the pandemic.”
According to court documents, Mary Landon Benton, 38, worked with inmates at three Virginia correctional institutions to collect the personally identifiable information of other inmates to fraudulently apply for Virginia unemployment benefits during the COVID-19 pandemic. Benton submitted successful applications for Virginia unemployment benefits for 31 inmates across three Virginia correctional facilities. Benton also attempted to file approximately ten to twenty other unemployment claims that were not approved because someone else had already filed a claim for that inmate. Each application that Benton submitted contained numerous false statements that made the application successful, such as the inmates’ contact information and last employer, and that they were ready and willing to work.
According to the Statement of Facts entered with her guilty plea, Benton took a portion of the successful claims and provided a portion of the proceeds to the inmate facilitators as well.
“Today’s guilty plea affirms the U.S. Department of Labor Office of Inspector General’s commitment to working with our federal and state agency partners to investigate fraud and identity theft that adversely impacts the integrity of the unemployment insurance program. We are grateful to the U.S. Attorney’s Office, the U.S. Department of Homeland Security Office of Inspector General, and the Virginia Employment Commission for their continued partnership,” said Derek Pickle, Special Agent-in-Charge, Washington, D.C. Region, U.S. Department of Labor Office of Inspector General.
"Defrauding the U.S. unemployment insurance and FEMA’s Lost Wage Assistance program, especially during the COVID-19 pandemic, is unconscionable,” said Joseph V. Cuffari, Inspector General for the Department of Homeland Security. “This investigation and resulting guilty plea speaks to the strength of our law enforcement partnerships with the Department of Labor – Office of Inspector General, U.S. Attorney’s Office, and the Virginia Employment Commission which ensure these limited public funds go to the intended beneficiaries."
Benton was indicted for her role in the conspiracy on April 8, 2021, along with three other defendants. The criminal cases against Benton’s three co-defendants remain pending, and each individual is presumed innocent until proven guilty.
Benton is scheduled to be sentenced on October 25. She faces a maximum penalty of 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Joseph V. Cuffari, Inspector General for the Department of Homeland Security; Derek Pickle, Special Agent-in-Charge of the Washington, D.C. Regional Office, U.S. Department of Labor Office of Inspector General; and Paul Haymes, Chief of Investigations, Virginia Department of Corrections, Special Investigations Unit, made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea.
Assistant U.S. Attorney Rebecca Gantt is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-33.
Placerville Man Charged with Possessing 27 Dogs for Use in Dog FightingRead the Press Release
Calif. — A federal grand jury returned a 27-count indictment today against Carlos Villasenor, 38, of Placerville, charging him with possession of dogs for use in an animal fighting venture, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on June 17, law enforcement agents executed a federal search warrant at Villasenor’s property and seized 27 pit bull type-dogs, one of whom had injuries to its face consistent with an attack from another dog. Many of the dogs also had untreated veterinary conditions. Numerous implements of the dog fighting trade were found on the property, including a breeding stand, treadmills, and veterinary supplies including skin staplers, antibiotics, syringes, and IV bags. Investigators also found paperwork indicating that Villasenor owned dogs used in dog fighting.
“This investigation and indictment should send a strong zero-tolerance message to those individuals who traffic in inflicting pain and suffering on animals,” said Patricia Contreras, Special Agent in Charge, U.S. Department of Agriculture-Office of Inspector General. “We appreciate the commitment of our federal partners in pursuing these purveyors of death who operate animal fighting ventures.”
This case is the product of an investigation by the U.S. Department of Agriculture. Assistant U.S. Attorney Mira Chernick is prosecuting the case.
If convicted, Villasenor faces a maximum statutory penalty of five years in prison and a $250,000 fine. He may also be ordered to pay restitution for the care and rehabilitation of the dogs. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Pittsburgh-area Man Sentenced to 5 Years in Prison for Distributing Pornographic Images of ChildrenRead the Press Release
PITTSBURGH, PA - A suburban Pittsburgh resident has been sentenced in federal court to 60 months of imprisonment and 10 years of supervised release on his conviction of distribution of material depicting the sexual exploitation of a minor, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge W. Scott Hardy imposed the sentence on Scott Kaercher, 28, of Pittsburgh, PA (Whitehall).
According to information presented to the court, Kaercher was a member of a group called “Anything Goes” on the LIVEME application, and the members shared an interest in child pornography. The FBI had an undercover employee monitoring the application, and the undercover employee engaged in an online chat with Kaercher, who indicated he had a sexual interest in children. On December 10, 2019, Kaercher uploaded a child pornography video to the members of Anything Goes. A subsequent search warrant resulted in the recovery of Kaercher’s mobile phone, which contained thousands of images of child pornography, including images of prepubescent children and sadistic and masochistic conduct. After imposing sentence, Judge Hardy revoked Kaercher’s bond and ordered that he be taken into custody to begin his sentence.
Assistant United States Attorney Lee J. Karl prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Kaercher.
Philadelphia Man Sentenced to 140 Months’ Imprisonment for Attempted Online Enticement of A MinorRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Shane Kelly Torpey, age 37, of Philadelphia, Pennsylvania, was sentenced on June 23, 2021, to 140 months’ imprisonment to be followed by a 10-year term of supervised release, by United States District Court Judge Malachy E. Mannion for using the internet to attempt to entice a 12-year-old minor female to engage in prohibited sexual activity.
According to Acting United States Attorney Bruce D. Brandler, on January 27, 2020, after communicating online with the minor victim and, later, with a law enforcement officer posing as the victim, Torpey traveled from the Philadelphia area to a park in Kingston, PA in an attempt to coax the minor victim into engaging in prohibited sexual activity with him. Torpey was arrested on scene.
At sentencing, Judge Mannion also ordered Torpey to comply with the Sex Offender Registration and Notification Act (SORNA).
This case was investigated by the Federal Bureau of Investigation (FBI) – Philadelphia Division and the Kingston Police Department. Assistant United States Attorney Jeffery St John prosecuted the case.
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.usdoj.gov/psc for more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Passaic County Residents Admit Drug and Firearm ChargesRead the Press Release
NEWARK, N.J. – Two Passaic County, New Jersey, residents admitted to possessing contraband within a Paterson, New Jersey, home, Acting U.S. Attorney Rachael A. Honig announced today.
Roshiema James, 49, of Paterson, pleaded guilty today before U.S. District Judge Stanley R. Chesler to an information charging her with possession with intent to distribute fentanyl, cocaine, and cocaine base. On June 23, 2021, Matthew P. Peoples, 44, of Paterson, pleaded guilty before Judge Chesler to an indictment charging him with possession of a firearm and ammunition by a convicted felon.
According to documents filed in this case and statements made in court:
On Oct. 3, 2019, pursuant to a lawful search of James’ residence, at which Peoples was an overnight guest, investigators recovered a loaded .357 caliber Rossi revolver with a defaced serial number from a bedroom closet and fentanyl, cocaine, cocaine base, and drug paraphernalia. Peoples, who knew he had previously been convicted of a felony, admitted to knowingly possessing the firearm and ammunition, and James admitted that she possessed the controlled substances with the intent to sell them.
The offense to which James pleaded guilty carries a maximum penalty of 20 years in prison and a fine of up to $1 million. The offense to which Peoples pleaded guilty carries a maximum penalty of 10 years in prison and a fine of up to $250,000. Sentencing for both defendants is scheduled for Oct. 27, 2021.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF .
Acting U.S. Attorney Honig credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Acting Special Agent in Charge Toby C. Taylor; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; officers of the N.J. State Police, under the direction of Col. Patrick J. Callahan; officers of the Paterson Police Department, under the direction of Director Jerry Speziale and Police Chief Ibrahim Baycora; and detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia Valdes, with the investigation leading to the charges. She also thanked the U.S. Marshals Service, the Bergen County Sheriff's Office and the Belleville and Livingston police departments for their assistance with the case.
The government is represented by Assistant U.S. Attorney Francesca Liquori, of the Organized Crime and Gangs Unit.
Owner of Chicago-Area Restaurant Franchises Sentenced to More Than a Year in Prison for Underreporting $2.5 Million in TaxesRead the Press Release
CHICAGO — The owner of five Chicago-area Pepe’s Mexican Restaurant franchises has been sentenced to more than a year in federal prison for filing false corporate tax returns that underreported $2.5 million in gross receipts and sales.
JUAN C. HURTADO, 45, of Joliet, pleaded guilty earlier this year to one count of making a false statement in a tax return. U.S. District Judge John F. Kness on Wednesday sentenced Hurtado to 15 months in federal prison and fined him $45,000.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.
“Defendant engaged in this conduct solely out of greed,” Assistant U.S. Attorney Rick D. Young argued in the government’s sentencing memorandum. “He wanted more money for himself at the expense of other taxpayers who pay their fair share of taxes.”
Hurtado owned Pepe’s franchises in Chicago, Tinley Park, Hickory Hills, Matteson, and Chicago Heights. Hurtado admitted in a plea agreement that from 2016 to 2018 he caused the filing of eleven materially false corporate tax returns with the IRS, as well as materially false sales and income tax returns with the State of Illinois, that underreported the gross receipts and sales of his restaurants by a combined total of approximately $2.5 million. Hurtado further admitted that he created false sales reports and gave them to his accountants, knowing the reports would be used as a basis for underreporting the receipts and sales.
Nogales Man Sentenced for Drug Charge After Tunnel is Discovered Under His HouseRead the Press Release
TUCSON, Ariz. – Jovany Alonso Robledo-Delgado, 35, of Nogales, Sonora, Mexico, was sentenced today by U.S. District Judge Scott H. Rash to 41 months in prison, followed by 5 years of supervised release. Robledo-Delgado previously pleaded guilty to Conspiracy to Import Methamphetamine, Cocaine, Fentanyl, and Heroin.
On December 17, 2019, federal agents executed a search warrant at the house Robledo-Delgado was renting in Nogales, Arizona. In the house, agents discovered a subterranean tunnel down to the International Outfall Interceptor (IOI). The IOI is a wastewater pipeline that begins at the Mexican border and flows north to a plant that treats wastewater from Nogales, Sonora, and cities in Arizona pursuant to an agreement between the United States and Mexico. Inside Robledo-Delgado’s residence, agents also found large amounts of methamphetamine, cocaine, fentanyl, and heroin. Robledo-Delgado was discovered hiding under a bed in the house.
Robledo-Delgado told agents that he constructed the tunnel so he could breach the IOI and retrieve packages of drugs that floated through the IOI from Mexico into the United States. He was being paid $3000 for each smuggling attempt.
Homeland Security Investigations - Nogales conducted the investigation in this case. Assistant U.S. Attorney Craig Russell, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-20-0253-TUC-SHR
RELEASE NUMBER: 2021-040_Robledo###
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Nigerian National indicted in Washington State for fraud on COVID-19 economic relief programsRead the Press Release
Seattle – A Nigerian citizen has been indicted by a federal grand jury in Seattle for conspiracy to commit wire fraud, and multiple counts of wire fraud and aggravated identity theft, announced Acting U.S. Attorney Tessa M. Gorman. Chukwuemeka Onyegbula, a/k/a Phillip Carter, is currently detained in Nigeria.
According to the indictment and an unsealed criminal complaint sworn June 6, 2021, law enforcement linked an email account belonging to Onyegbula but using the name ‘Phillip Carter’ to at least 253 fraudulent unemployment insurance filings in Washington, Arizona, California, Colorado, Illinois, Indiana, Kansas, Massachusetts, Michigan, Minnesota, Missouri, Montana, Ohio, Nevada, Rhode Island, Texas, and Wisconsin. Nearly $290,000 was paid out in unemployment claims. Additionally, the indictment alleges Onyegbula and his co-conspirators accessed the COVID-19 Economic Injury Disaster Loan (EIDL) page on the Small Business Administration’s website and submitted applications for EIDLs using the stolen PII of residents of Washington and other states. Nearly $54,000 was paid out in fraudulent disaster loans.
Onyegbula allegedly used variations of a single e-mail address in a manner intended to evade automatic detection by fraud systems. By using this practice, Onyegbula made it appear that each claim was connected to a different email account. The email account used for fraud was linked to Onyegbula by various electronic evidence such as phone numbers and IP addresses. The email account contained information such as a visa application receipt, banking information and homework assignments by Onyegbula’s son. The cyber evidence also includes dozens of tax return information for U.S. citizens.
Evidence gathered indicates Onyegbula is employed as an IT engineer with Pan Ocean Oil Corporation Nigeria Limited.
Conspiracy to commit wire fraud and wire fraud are punishable by up to thirty years in prison when the offense relates to benefits paid in connection with a presidentially-declared disaster or emergency, such as the COVID-19 pandemic. Aggravated identity theft is punishable by a mandatory minimum two year sentence to run consecutive to any sentence imposed on the other counts of conviction.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the FBI, with assistance from the Department of Labor Office of Inspector General (DOL-OIG). The Office of International Affairs of the Department of Justice’s Criminal Division provided substantial assistance. The Washington Employment Security Department is cooperating in the investigation.
This case is being prosecuted by Assistant United States Attorneys Cindy Chang and Seth Wilkinson.
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.
New York Man Sentenced to 120 Months’ Imprisonment for Running Drug Trafficking OrganizationRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on June 23, 2021, Charles Gibson, Jr., age 42, of the Bronx, New York, was sentenced to 120 months’ imprisonment and five years of supervised release, by United States District Court Judge Malachy E. Mannion, for conspiring to distribute heroin, crack cocaine, and fentanyl.
According to Acting United States Attorney Bruce D. Brandler, Gibson pleaded guilty to being the head of a drug trafficking organization that distributed kilograms of crack cocaine, heroin, and fentanyl in the Luzerne County region from March 2015 through March 2017. Members of the drug trafficking organization possessed firearms and engaged in acts of violence.
Gibson was charged in June 2017 with 14 other individuals. All of his co-defendants pleaded guilty and were sentenced:
- Victoria Kraynak, of Luzerne, Pennsylvania, was sentenced to 66 months’ imprisonment;
- Kassandra Martin of Wilkes-Barre, Pennsylvania, was sentenced to 60 months’ imprisonment;
- Joshua Lenchick of Luzerne, Pennsylvania, was sentenced to 60 months’ imprisonment;
- Kristyna Shotwell of Plymouth, Pennsylvania, was sentenced to 12 months and one day of imprisonment;
- Tanay Jones of Bronx, New York, was sentenced to a time served sentence of 19 days’ imprisonment;
- William Waring of Bronx, New York, was sentenced to 60 months’ imprisonment;
- John Maybank of Bronx, New York, was sentenced to 53 months’ imprisonment;
- Siobhan Daniels, of Wilkes-Barre, Pennsylvania, was sentenced to 30 months’ imprisonment;
- Luis Nevarez, of Bronx, New York, was sentenced to 60 months’ imprisonment;
- Adonis Smith, of New London, Connecticut, was sentenced to 60 months of imprisonment;
- Cara Dubaskas, of Plymouth, Pennsylvania, was sentenced to a time served sentence of 7 months;
- Chad Eckrote, of Plymouth, Pennsylvania, was sentenced to 3 years of probation;
- Adam Gottstein, of Kingston, Pennsylvania, was sentenced to 78 months’ imprisonment; and
- Amanda Romano, of Wilkes-Barre, Pennsylvania, was sentenced to 84 months’ imprisonment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Luzerne County Drug Task Force, and by the Kingston Police Department. Assistant U.S. Attorney Phillip J. Caraballo prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case also was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case was further part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
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New Orleans Man Selling Bitcoin Charged with Operating Unlicensed Money Transmitting BusinessRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that MICHAEL YUSKO, III, age 46, a resident of New Orleans, was charged yesterday in a bill of information with operating an unlicensed money transmitting business, in violation of Title 18, United States Code, Section 1960.
Under federal law, any business that engages in “the acceptance of currency, funds, or other value that substitutes for currency from one person and the transmission of currency, funds, or other value that substitutes for currency to another location or person by any means” is deemed to be a money transmitting business. Such businesses include those that trade fiat currency, such as U.S. dollars, for cryptocurrency, such as Bitcoin, Litecoin, and Ethereum. These companies must register with the Financial Crimes Enforcement Network (“FinCEN”) as money transmitting businesses.
According to court documents, YUSKO was the owner and manager of Nervous Light Capital LLC. He used Nervous Light Capital, along with the bank accounts of four other companies, to sell Bitcoin and other cryptocurrencies to customers. YUSKO did not register any of these companies with FinCEN as money transmitting businesses, however. If convicted, YUSKO may receive a maximum of five years in prison, a maximum $250,000.00 fine, up to three years of supervised release, and a $100 mandatory special assessment.
U.S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the FBI New Orleans Field Office and the U.S. Secret Service New Orleans Field Office. Assistant United States Attorney Matthew R. Payne is in charge of the prosecution.
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New Hampshire Man Pleads Guilty to Tampering with Consumer ProductRead the Press Release
PORTLAND, Maine—A Dover, New Hampshire man pleaded guilty today in federal court to one count of tampering with a consumer product, Acting U.S. Attorney Donald E. Clark announced.
According to court records, Nicholas Mitchell, 39, was an employee of a Maine company that manufactured pizza doughs that were sold to consumers through a supermarket chain in Maine and other states. In approximately June 2020, Mitchell’s employment was terminated.
On October 5, 2020, Mitchell entered a Saco supermarket that sold the pizza doughs. He proceeded directly to the pizza dough display case where he inserted razor blades in several of the pizza doughs and then returned the doughs to the display case. Three patrons purchased the tampered pizza doughs later that day. When the patrons subsequently opened the pizza doughs, they discovered the razor blades secreted inside the doughs.
When the store learned of the tainted product, store personnel removed the remaining pizza doughs from the display case. During this process, a store employee discovered another dough with a razor blade in it.
Mitchell faces a period of imprisonment of up to 10 years, followed by a period of supervised release of up to 3 years, and a fine of up to $250,000. He will also be required to pay restitution to the victims of the offenses. He will be sentenced following the preparation of a presentence report by the United States Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Food and Drug Administration and the Saco Police Department investigated the case with assistance from the North Berwick and Dover, New Hampshire police departments.
New Federal Indictment Charges a Second Defendant for the 2015 Murder of a Woman and Her Seven-Year-Old Child During a Drug-Related RobberyRead the Press Release
Baltimore, Maryland – A federal grand jury has returned a second superseding indictment that adds a new defendant, Kiara Haynes, age 36, of Baltimore, charging her with two counts of using a firearm in relation to a drug trafficking crime, causing the death of Jennifer Jeffrey and her seven-year-old child. The second superseding indictment also restates the previous charges against Andre Ricardo Briscoe, a/k/a Poo, age 37, of Baltimore and Cambridge, Maryland, for conspiracy to distribute heroin, possession with intent to distribute heroin, use of a firearm to commit murder in relation to the drug trafficking crimes, killing a witness to prevent communication with law enforcement, and being a felon in possession of a firearm and ammunition. The second superseding indictment was returned on June 23, 2021.
Haynes was arrested in Texas on June 18, 2021, on a related federal criminal complaint. She had an initial appearance on that charge and was detained pending her transport to Maryland. Briscoe remains in federal custody on his previous indictment and is expected to have an initial appearance on the new charges in U.S. District Court in Baltimore in the near future.
The second superseding indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Acting Special Agent in Charge Rachel Byrd of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; and Chief Mark K. Lewis of the Cambridge Police Department.
Acting U.S. Attorney Jonathan F. Lenzner stated, “The murders of Jennifer Jeffrey and her child were a tragedy. The loss of any life is tragic, and never more so than a child. This indictment should make crystal clear that we will not stop investigating until we bring to justice everyone involved in a murder. If you touch a witness, especially a child, the full weight of federal law enforcement will be harnessed to hold you accountable and bring you to justice.”
According to the second superseding indictment, from March through October 2015, Briscoe conspired with others to distribute heroin. The second superseding indictment alleges that on May 27, 2015, Briscoe possessed with intent to distribute more than 100 grams of heroin. On that same day, in connection with Briscoe’s heroin distribution, the second superseding indictment alleges that Briscoe and Haynes committed an armed robbery and during the course of the robbery Jennifer Jeffrey and Jeffrey’s seven-year-old child were shot and killed. The second superseding indictment also alleges that Briscoe shot the child multiple times, including in the head and mouth, killing the child to prevent him/her from communicating with law enforcement.
If convicted of the murders, Briscoe and Haynes face a maximum sentence of death or life in prison. Briscoe also faces death or a mandatory sentence of life in prison if convicted of the witness tampering murder; a mandatory minimum of five years and a maximum of 20 years in federal prison for the conspiracy to distribute and for possession with the intent to distribute 100 grams or more of heroin; and a maximum of 10 years in prison for being a felon in possession of a firearm and ammunition. Actual sentences for federal crimes are typically less than the maximum penalties.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the ATF, the FBI, the Baltimore Police Department, and the Cambridge Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Dana J. Brusca, Sandra Wilkinson, and Michael C. Hanlon, who are prosecuting the case.
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Morris County Man and New York Man Admit Roles in $4 Million Union-Related Health Care Fraud SchemeRead the Press Release
NEWARK, N.J. – A Morris County man and a New York man today admitted their roles in defrauding a union-run health benefit fund of more than $4 million in connection with running unauthorized health and wellness events where thousands of medically unnecessary tests were performed on union members, Acting U.S. Attorney Rachael A. Honig announced.
Alan Ajamian, 68, of Chester, New Jersey, and James Maginn, 64, of Bellerose, New York, each pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to one count of conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Ajamian bribed an official of a health care benefits fund for a service employees union to conduct health fairs for union members that the union did not authorize. The bribes – which included cash, cigars, Yankees tickets, and trips to Las Vegas – were paid to the official to gain access to union members who received health insurance benefits from the union fund.
Ajamian, Maginn, and others hired medical professionals, including doctors and nurse practitioners, to conduct various medically unnecessary exams and tests at the health fairs. These exams and tests included ultrasounds, vascular studies, dopplers, echocardiograms, allergy, and pulmonary function tests. Ajamian, Maginn, and others pressured and paid the medical professionals to perform as many tests on union members as possible, regardless of whether the tests were medically necessary. To deceive the union fund, Maginn and others falsely represented to the union that the medical tests were conducted at a physician’s office or an urgent care center. In fact, all the tests were administered at health fairs, which took place at the union members’ places of employment.
Maginn and others used several medical and billing companies to submit to the union fund the fraudulent claims stemming from the medically unnecessary exams and tests performed at the health fairs. Ajamian, Maginn, and others caused these companies to bill the union fund over $6 million for these claims. In turn, the union fund paid the companies associated with Ajamian, Maginn, and others over $4 million in connection with the fraudulent claims.
Two other individuals, Benjamin Iskhakov and Omawattie Dayaram, were previously charged by complaint on Aug. 24, 2020 in connection with their roles in the conspiracy, and those charges remain pending.
The conspiracy charge to which Ajamian and Maginn each pleaded guilty carries a maximum penalty of 10 years in prison and a fine of $250,000, or twice the gross grain or loss from the offense, whichever is greatest. Sentencing for Ajamian is scheduled for Oct. 25, 2021, and for Maginn, Oct. 26, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and the U.S. Department of Labor, Office of the Inspector General, New York Region, under the direction of Acting Special Agent in Charge Nikitas Splagounias.
The government is represented by Assistant U.S. Attorney Christopher D. Amore of the Government Fraud Unit, and Special Assistant U.S. Attorney Kendall Randolph of the Organized Crime and Gangs Unit of the U.S. Attorney’s Office in Newark.
The charges and allegations against the remaining defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Morris County Man Admits Conspiring and Possessing with Intent to Distribute MethamphetamineRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man today admitted conspiring to distribute and possessing with intent to distribute methamphetamine from his residence, Acting U.S. Attorney Rachael A. Honig announced.
Frederick Bailey, 61, of Denville, New Jersey, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with one count of conspiring to distribute methamphetamine and one count of possessing with intent to distribute 50 grams or more of methamphetamine.
According to documents filed in this case and statements made in court:
In January 2020, Bailey agreed with another individual to distribute methamphetamine from his residence. On Jan. 8, 2020, law enforcement searched Bailey’s residence and located methamphetamine and packaging materials throughout the residence.
The conspiracy and possession with intent to distribute charges to which Bailey pleaded guilty carry a mandatory minimum penalty of five years in prison, a maximum of 40 years in prison, and a $5 million fine. Sentencing is scheduled for Oct. 26, 2021.
Acting U.S. Attorney Honig credited special agents with the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
Mexican National Pleads Guilty to Immigration and Drug ChargesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and William S. Walker, Acting Special Agent in Charge, Homeland Security Investigations (HSI), Boston, announced that LUCIANO SOLIS-SANCHEZ, 36, a citizen of Mexico last residing in Waterbury, pleaded guilty today in Hartford federal court to immigration and controlled substances offenses.
According to court documents and statements made in court, Solis-Sanchez has never held legal status in the U.S. In April 2007, Solis-Sanchez was encountered by U.S. Border Patrol (USBP) in Arizona and was granted voluntary return to Mexico. In November 2017, he was again encountered by USBP and was removed to Mexico. Approximately one week after his removal, Solis-Sanchez was again encountered by USBP in Arizona while attempting to unlawfully enter the U.S. He was charged and convicted of illegal entry and was again removed to Mexico.
On two occasions in May 2019, Solis-Sanchez was encountered by USBP in Texas and was removed to Mexico.
On March 3, 2020, Solis-Sanchez was arrested by Waterbury Police on charges of possession of narcotics with intent to sell, possession of drugs near a prohibited place, operating a motor vehicle without a license, and driving the wrong way on a one-way street. He was released by the state on a promise to appear. Federal authorities subsequently learned the arrest and obtained an arrest warrant for Solis-Sanchez charging him with illegal reentry.
On January 8, 2021, U.S. Customs and Border Protection inspected a UPS package that originated in Zapopan, Mexico, and was addressed to “Alfonso Perez, 39 Bucks Hill Rd, Waterbury, CT 06704 United States,” which was Solis-Sanchez’s residence. The package contained a handcrafted lamp that had two bundles containing approximately 498 grams of methamphetamine hidden behind a fiberglass panel.
On January 13, 2021, law enforcement made a controlled delivery of the package to 39 Bucks Hill Road, and then executed a search warrant at the residence. The search revealed a distribution quantity of cocaine. Solis-Sanchez was arrested a short time later. At the time of his arrest, he possessed an additional quantity of cocaine that he intended to sell. Solis-Sanchez admitted that he arranged for the delivery of the package containing methamphetamine, and also received cocaine shipments from the same supplier.
Solis-Sanchez pleaded guilty one count of reentry of a removed alien, which carries a maximum term of imprisonment of two years, and one count of possession with intent to distribute methamphetamine and cocaine, which carries a maximum term of imprisonment of 40 years. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on October 13, 2021.
Solis-Sanchez has been detained since January 13, 2021.
This investigation is being conducted by Homeland Security Investigations, Immigration and Customs Enforcement’s Enforcement and Removal Operations, and the Connecticut State Police, Statewide Narcotics Task Force, Northwest. The case is being prosecuted by Assistant U.S. Attorneys Angel M. Krull and Deborah R. Slater.
Mexican Man Sentenced to 14 Months in Prison for Illegal ReentryRead the Press Release
Gulfport, Miss. - A Mexican national was sentenced today to 14 months in prison, followed by one year of supervised release, for unlawful reentry by an alien after deportation or removal, announced Acting U.S. Attorney Darren J. LaMarca and Jason E. Schneider, Chief Patrol Agent of the Border Patrol’s New Orleans Sector.
According to court documents, Sergio Rodriguez-Arevalos, 43, was arrested following a traffic stop on Interstate 10 by a deputy with the Harrison County Sheriff’s Office Criminal Interdiction Patrol. Border Patrol agents were called in to assist and determined that Rodriguez-Arevalos was not lawfully present in the United States. Rodriguez-Arevalos was arrested and transported to the Gulfport Border Patrol station for processing.
Rodriguez-Arevalos’ fingerprints were scanned into DHS electronic databases and his identity was confirmed based on computerized fingerprint analysis and visual analysis of his prior immigration photographs, and other official information. Official records revealed that in 1998, a U.S. Immigration Judge ordered Rodriguez-Arevalos to be removed to Mexico, and he was physically removed in September, 1998. Rodriguez-Arevalos later reentered the U.S. and was removed an additional three times before reentering yet again and being arrested in December 2020. Further, Rodriguez-Arevalos had been convicted of multiple misdemeanor offenses, including driving under the influence, while illegally residing in the United States.
The case was investigated by the U.S. Border Patrol and the Harrison County Sheriff’s Department.
The case was prosecuted by Assistant United States Attorney Stan Harris.
Men Sentenced to Life Plus 240 Months in Federal Prison for Murder of Lincoln MotherRead the Press Release
Acting United States Attorney Jan Sharp announced that Tawhyne M. Patterson, a Vice Lord gang member from Chicago, Illinois, and Damon D. Williams of Omaha, Nebraska, were sentenced today for their respective roles in a home invasion that resulted in the death of Jessica Brandon on July 31, 2018. Chief United States District Judge John M. Gerrard sentenced each to life imprisonment for commission of murder with a firearm during an attempted robbery. For their participation in a firearms conspiracy and a second attempted robbery at the same Lincoln home the day before the murder, they were sentenced to 240 months consecutive to the life terms. There is no parole in the federal system.
At their hearings, Chief Judge Gerrard stated, “The crime doesn’t get any worse than this one. Home invasions are among the most egregious crimes that this Court sees. This was a classic case of felony murder, and the punishment shall fit the crime. We are seeing way too many of these home invasions in Nebraska and anyone else who commits a home invasion resulting in death with a gun can expect the same result.” Judge Gerrard expressed his commitment that his Court would do what it takes to deter others from these crimes.
The evidence at trial established that Patterson, age 28, and Williams, age 29, were part of a crew that targeted a Lincoln marijuana dealer for robbery. They went to the home on July 30, 2018 and returned on July 31, 2018 intent on stealing drug money.
On July 31, 2018, Patterson forced open the door and was joined by two others claiming to be Lincoln Police Officers. The robbers zip tied and restrained three children, including a child there on a sleepover who had no family connection to the marijuana dealer. Jessica Brandon, mother of two of the children in the home at the time, was shot as she found herself between Patterson and a safe where the robbers expected to find cash and drugs. Brandon was brought to a hospital and was later pronounced dead. The children who were tied up and held at gun point were all female children ranging in age from 9 years old to 16 years old at the time of the crime. An elderly woman with a broken back was also zip tied and held at gunpoint. The evidence showed that Patterson gunned down Brandon in the stairwell to her home while Williams and his brother, Dante Williams, who is scheduled for sentencing next week, went through the bedrooms in the home taking the women and children hostage.
Video was recovered from the crime scene. Williams and Patterson were identified through tips from the public. They fled to Texas and were later arrested there in an attempt to evade justice for their roles in this crime.
Acting United States Attorney Jan W. Sharp said, “The United States Attorney’s Office continues to view the prosecution of violent crimes, especially those involving firearms, as a top priority. All gun crimes are disturbing, but home invasions are especially horrifying for the victims. Today’s life plus 240 months sentence sends a clear message to those who commit violent crimes: Use a gun and you are going to be looking at hard time.”
After today’s sentencing FBI Omaha Special Agent in Charge Eugene Kowel said, “Tawhyne Patterson and Damon Williams terrorized a family in an attempted robbery that left them empty handed, and a young mother dead. Today’s sentence prevents them from committing another vicious crime. FBI Omaha will always assist our law enforcement partners to pursue and arrest those who prey on members of our community.”
This case was investigated by the Lincoln Police Department, the Lancaster County Sheriff’s Office, and the Lincoln Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Lesley Woods and Dan Packard.
Marion County Convicted Felon Pleads Guilty to Federal Firearm and Drug Distribution ChargesRead the Press Release
Ocala, Florida – Glenn Edward Davis, Jr. (35, Ocala) has pleaded guilty to two counts of possessing a firearm and ammunition as a convicted felon and two counts of possession with the intent to distribute methamphetamine. Davis faces a minimum mandatory sentence of 5 years, and up to 40 years, in federal prison on each of the drug counts, and up to 10 years’ imprisonment on each of the firearm charges.
Davis had been indicted in November 2019.
According to the facts presented in court, on the night of March 16, 2019, an officer from the Ocala Police Department attempted to stop Davis’s car. Davis quickly abandoned the car and fled on foot, but left behind his driver license, a loaded handgun, and methamphetamine packaged for distribution. On July 10, 2019, a detective from the Ocala Police Department spotted Davis driving a different car. When the detective attempted initiate a traffic stop, Davis again fled on foot. Once apprehended, Davis struggled with and injured the detective. A subsequent search of Davis’s car revealed another loaded handgun, ecstasy pills, heroin, and pure methamphetamine packaged for distribution. Laboratory testing confirmed Davis’s DNA on the firearm.
With 14 prior state felony convictions, Davis is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the City of Ocala Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
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.
Manhattan U.S. Attorney Announces Securities and Wire Fraud Charges Against Founder and Manager of Mutual FundRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced today that OFER ABARBANEL was arrested this morning in Los Angeles, California, and charged with securities fraud and wire fraud in connection with ABARBANEL’s scheme to defraud investors in a mutual fund he founded and controlled.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Ofer Abarbanel conducted a bait-and-switch, promising investors safe and liquid investments but instead transferring their money to risky counterparties to trade for his own benefit and that of his confederates. His alleged scheme has now been uncovered and he will have to answer for his alleged lies.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “Postal Inspectors remind investors to thoroughly review all lucrative offers as well as their fund managers. In this case, as alleged, Mr. Abarbanel devised a scheme to defraud investors with bogus claims of liquidity and collateral, when in fact he did not use investors’ funds as promised and did not acquire the promised collateral. Our advice is to trust your gut, and remember that where there is high reward, there is high risk.”
According to the Complaint[1] unsealed today Manhattan federal court:
From at least in or about 2018 through the present, ABARBANEL engaged in a scheme to defraud investors in a mutual fund he founded and controlled (the “Fund”). ABARBANEL falsely represented to an investment adviser to a group of investors (the “Investor Group”) that investments in the Fund would be placed “primarily” in short-term United States Treasury Securities having maturities less than or equal to three months. Contrary to these representations, the vast majority of the investors’ funds were not invested in short-term treasuries. Instead, immediately after the Investor Group’s investment was received by the Fund, ABARBANEL and his confederates transferred the investor funds to counterparties controlled by or otherwise closely associated with ABARBANEL, for use, among other things, in trading not authorized by the Fund’s offering documents and for the benefit of ABARBANEL and the counterparties.
ABARBANEL further represented that, in order to enhance income, the Fund intended to invest in securities lending transactions as well as repurchase and reverse repurchase agreements. ABARBANEL represented, as to these transactions, that the Fund would receive, in its possession and control, safe and secure collateral, in the form of treasury securities that could be quickly liquidated in the event a counterparty defaulted on its obligations. ABARBANEL, however, failed to obtain for the Fund the promised collateral to secure the investments. Nonetheless, ABARBANEL repeatedly represented, in substance, that the Fund had possession of the collateral.
In or about May and June 2021, ABARBANEL failed to honor a redemption request by the Investor Group for all of its outstanding investment, totaling more than $100 million, instead placing conditions on the redemption that were contrary to the Fund’s offering document and to the Fund’s practices with respect to prior redemptions. On or about June 16, 2021, the Fund transferred more than $10 million in investor funds from the Fund to a personal brokerage account of an attorney working with the Fund.
ABARBANEL will be presented later today in federal court in Los Angeles.
* * *
ABARBANEL, 46, a dual U.S.-Israeli citizen who resides in Woodland Hills, California, is charged with one count of securities fraud and one count of wire fraud. The securities fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $5,000,000 or twice the gross gain or loss from the offense. The wire fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the investigative work of the USPIS and thanked the SEC, which has filed civil charges against ABARBANEL in a separate action. She added that the criminal investigation is ongoing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Elisha J. Kobre is in charge of the prosecution.
The 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 should be treated as an allegation.
Kroger Shooter Sentenced to Life in Prison for Hate Crime MurdersRead the Press Release
A Kentucky man was sentenced in federal court to life in prison without parole in connection with his racially motivated murder of two Black patrons at a Kroger grocery store and his attempted murder of a third in Jeffersontown, Kentucky.
Gregory A. Bush, 53, of Louisville, Kentucky, previously pleaded guilty-but-mentally-ill to state charges for murder, attempted murder and wanton endangerment arising out of the shooting and was sentenced to a life term in state prison.
During his federal plea hearing, Bush admitted that on Oct. 24, 2018, he drove to a Kroger grocery store in Jeffersontown armed with a Smith & Wesson, model 411, .40-caliber pistol. In the store, Bush followed a Black man, who was shopping with his grandson, for the length of an aisle before pulling the gun from his waistband and shooting the victim in the back of the head. Bush then shot the victim several more times in the torso, killing him. Bush had no prior relationship with the victim and chose to shoot him because of the victim’s race. Bush then re-holstered his gun and calmly walked out of the store.
In the parking lot, Bush walked up to a Black woman and shot her several times in the head and body, killing her. Bush had no prior relationship with this victim and chose to shoot her because of her race.
Seconds later, Bush encountered a Black man who was in lawful possession of a handgun. The third victim asked Bush what was going on, and Bush, without responding, began walking toward him with the gun drawn. The third victim fired at Bush, and Bush returned fire. After about a minute, Bush stopped shooting and walked away. Bush had no prior relationship with the third victim and chose to shoot at him because of his race. Bush next encountered a white man, who was legally armed with a firearm. Bush told him, “Don’t shoot me [and] I won’t shoot you. Whites don’t shoot whites.”
“The defendant is being held accountable for his vicious, racially motivated attack on three Black individuals who were targeted because of the color of their skin, resulting in the untimely death of two of his victims and irreparable harm to the third,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Racially motivated acts of violence must not be tolerated in our country today. The Civil Rights Division of the Department of Justice will continue to work with our federal, state and local partners to ensure that individuals who commit bias-motivated crimes are brought to justice for their actions.”
“Life in prison is appropriate in light of the brutal acts committed by the defendant against our fellow citizens,” said Acting U.S. Attorney Michael A. Bennett of the Western District of Kentucky. “The initial law enforcement response and investigation, collaboration by federal and state prosecutors, and the sentence imposed serve notice to all that race-based violence will be met with swift and exacting justice.”
“Today, Mr. Bush was held responsible for his vile conduct,” said Special Agent in Charge Robert Brown of the FBI Louisville Field Office. “We are a diverse city and country, bound together by shared values and beliefs. We are also a nation of laws. When those like Mr. Bush betray our shared values and violate our laws, the FBI and its Department of Justice partners will be ready to hold them accountable. This is just one example of how hate and violence will not be tolerated and have no place in our community.”
“This was a heinous crime where innocent victims were gunned down for no other reason than the color of their skin,” said Special Agent in Charge R. Shawn Morrow of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Louisville Division. “The ATF Louisville Division worked tirelessly alongside our law enforcement partners to seek justice for the victims, their families and the community at large impacted by this hate crime. Today’s life sentence in prison demonstrates law enforcement’s stance against race-based violence and our commitment to justice.”
This case was investigated by the FBI Louisville Office, the ATF Louisville Field Division, and the Jeffersontown Police Department, and was prosecuted by Special Litigation Counsel Christopher J. Perras of the DOJ’s Civil Rights Division and Assistant U.S. Attorney Amanda Gregory of the Western District of Kentucky.
Kroger Shooter Sentenced to Life in Prison for Hate Crime MurdersRead the Press Release
WASHINGTON – A Kentucky man was sentenced in federal court to life in prison without parole in connection with his racially motivated murder of two Black patrons at a Kroger grocery store, and his attempted murder of a third in Jeffersontown, Kentucky.
Gregory A. Bush, 53, of Louisville, Kentucky previously pleaded guilty-but-mentally-ill to state charges for murder, attempted murder and wanton endangerment arising out of the shooting and was sentenced to a life term in state prison.
During his federal plea hearing, Bush admitted that on Oct. 24, 2018, he drove to a Kroger grocery store in Jeffersontown armed with a Smith & Wesson, model 411, .40-caliber pistol. In the store, Bush followed a Black man, who was shopping with his grandson, for the length of an aisle before pulling the gun from his waistband and shooting the victim in the back of the head. Bush then shot the victim several more times in the torso, killing him. Bush had no prior relationship with the victim and chose to shoot him because of the victim’s race. Bush then re-holstered his gun and calmly walked out of the store.
In the parking lot, Bush walked up to a Black woman, and shot her several times in the head and body, killing her. Bush had no prior relationship with this victim and chose to shoot her because of her race.
Seconds later, Bush encountered a Black man who was in lawful possession of a handgun. The third victim asked Bush what was going on, and Bush, without responding, began walking toward him with the gun drawn. The third victim fired at Bush, and Bush returned fire. After about a minute, Bush stopped shooting and walked away. Bush had no prior relationship with the third victim and chose to shoot at him because of his race. Bush next encountered a white man, who was legally armed with a firearm. Bush told him, “Don’t shoot me [and] I won’t shoot you. Whites don’t shoot whites.”
“The defendant is being held accountable for his vicious, racially-motivated attack on three Black individuals who were targeted because of the color of their skin, resulting in the untimely death of two of his victims and irreparable harm to the third,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Racially motivated acts of violence must not be tolerated in our country today. The Civil Rights Division of the Department of Justice will continue to work with our federal, state and local partners to ensure that individuals who commit bias-motivated crimes are brought to justice for their actions.”
“Life in prison is appropriate in light of the brutal acts committed by the defendant against our fellow citizens,” said Acting U.S. Attorney Michael A. Bennett of the Western District of Kentucky. “The initial law enforcement response and investigation, collaboration by federal and state prosecutors, and the sentence imposed serve notice to all that race-based violence will be met with swift and exacting justice.”
“Today, Mr. Bush was held responsible for his vile conduct," said Special Agent in Charge Robert Brown of the FBI Louisville Field Office. “We are a diverse city and country, bound together by shared values and beliefs. We are also a nation of laws. When those like Mr. Bush betray our shared values and violate our laws, the FBI and its Department of Justice partners will be ready to hold them accountable. This is just one example of how hate and violence will not be tolerated and have no place in our community.”
“This was a heinous crime where innocent victims were gunned down for no other reason than the color of their skin,” said Special Agent in Charge R. Shawn Morrow of the ATF Louisville Division. “The ATF Louisville Division worked tirelessly alongside our law enforcement partners to seek justice for the victims, their families, and the community at large impacted by this hate crime. Today’s life sentence in prison demonstrates law enforcement’s stance against race-based violence and our commitment to justice.”
This case was investigated by the FBI Louisville Office, the ATF Louisville Field Division, and the Jeffersontown Police Department, and was prosecuted by Special Litigation Counsel Christopher J. Perras of the DOJ’s Civil Rights Division, and Assistant U.S. Attorney Amanda Gregory of the Western District of Kentucky.
Justice Department Settles Claim Against Operators of a Utah On-The-Job Training Program for Discriminating Against AsyleeRead the Press Release
The Department of Justice today announced that it signed a settlement agreement with Montana-based Easterseals-Goodwill Northern Rocky Mountain Inc. (ESGW), which also operates in Utah, Idaho and Wyoming. The settlement resolves a claim that an ESGW office in Utah discriminated against an asylee by rejecting her documents that were valid proof of work authorization and demanding different documents to verify her employment eligibility, based on her immigration status. The investigation also determined that ESGW required other non-U.S. citizens to present unnecessary immigration documents to prove their authorization to work in the United States, in violation of the Immigration and Nationality Act (INA)’s anti-discrimination provision.
The department opened its investigation after the asylee filed a discrimination complaint against ESGW based on her experience with an ESGW on-the-job training program. The investigation showed that ESGW did not allow the asylee to provide her choice of legally acceptable documentation to show that she was authorized to work in the United States. The asylee had presented a valid state ID and unrestricted Social Security card, which are sufficient to complete the federal form (Form I-9) employers use to verify an employee’s identity and work eligibility. However, ESGW rejected the documents and demanded unnecessary additional documents to prove work authorization. The department also concluded that another Utah ESGW office demanded an immigration document from all non-U.S. citizens as a regular practice, even if these workers had already presented other documents sufficient to complete the Form I-9. The INA’s anti-discrimination provision prohibits employers from requesting more or different documents than necessary or rejecting documents that reasonably appear genuine to prove work authorization based on employees’ citizenship, immigration status, or national origin. Instead, in the INA, Congress determined that workers may choose which valid, legally acceptable documents to present to demonstrate their ability to work in the United States, regardless of citizenship status or national origin.
“Employers may not demand more documents than required by law to prove work authorization based on a worker’s citizenship or immigration status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to protecting asylees and others who are not U.S. citizens from unlawful discrimination.”
Under the terms of the settlement agreement, ESGW will pay $6,186 in civil penalties to the United States, revise its policies and procedures and train relevant employees on the INA’s anti-discrimination provision.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits citizenship, immigration status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. More information on the rights of refugees and asylees in the Form I-9 and E-Verify process is available here. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment, or during the employment eligibility verification process (e.g., Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public also can contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Justice Department Reaches Agreement with San Luis Obispo County Jail to Ensure Safe and Equal Access to its Programs for Inmates with Mobility DisabilitiesRead the Press Release
The Justice Department today reached a settlement under Title II of the Americans with Disabilities Act (ADA) with San Luis Obispo County, California, to ensure that inmates with mobility disabilities have an equal opportunity to participate in San Luis Obispo Jail’s (SLO Jail) programs, services and activities.
Based on its investigation, the United States determined that SLO Jail facilities were inaccessible to inmates with mobility disabilities and denied them equal access to the Jail’s programs, services and activities. SLO fully cooperated with the Justice Department’s investigation and indicated a commitment to remedying barriers to equal access.
“Jails and prisons across our country must ensure that their facilities are accessible to people with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Compliance with the Americans with Disabilities Act ensures that inmates with disabilities have equal access to basic necessities, such as showers and sleeping areas, and to all activities that are offered to inmates without disabilities. We commend the County for recognizing its obligations and working with the Department of Justice to bring the facilities at its jail into compliance with the law.”
“People with mobility disabilities are entitled to have access to cells and showers they can safely use while incarcerated,” said Acting United States Attorney for the Central District of California Tracy L. Wilkison. “San Luis Obispo County has taken important steps to ensure that the facilities at its jail are in compliance with the ADA.”
Under the ADA, governmental entities that operate jails or prisons must make changes necessary to ensure that inmates with mobility disabilities do not serve time in a manner that is more difficult, or less safe, than those without disabilities.
The department opened its investigation after receiving a complaint by a former inmate at SLO Jail who has a mobility disability and uses a prosthetic leg. The inmate alleged that SLO Jail failed to provide him with an accessible cell or shower, causing him to fall repeatedly and, in one instance, to break his leg. The complainant also alleged that, because of his disability, SLO Jail denied him equal opportunities for recreation and other programs, leading him to experience unnecessary isolation.
Under the agreement, SLO Jail will make architectural changes to its facilities to ensure that they are accessible to inmates with disabilities. The Jail will also train relevant staff, designate an ADA coordinator and implement an ADA complaint procedure. In addition, the Jail will pay $175,000 to the complainant to compensate him for his pain and suffering.
For more information about the ADA and today’s agreement, please visit http://www.ada.gov or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY). ADA complaints may be filed online at http://www.ada.gov/complaint/.
Justice Department Reaches Agreement with San Luis Obispo County Jail to Ensure Safe and Equal Access to Programs for Inmates with Mobility DisabilitiesRead the Press Release
LOS ANGELES – The Justice Department today reached a settlement under Title II of the Americans with Disabilities Act (ADA) with San Luis Obispo County to ensure that inmates with mobility disabilities have an equal opportunity to participate in San Luis Obispo Jail’s (SLO Jail) programs, services and activities.
Based on its investigation, the United States determined that SLO Jail facilities were inaccessible to inmates with mobility disabilities and denied them equal access to the jail’s programs, services and activities. San Luis Obispo County fully cooperated with the investigation and indicated a commitment to remedying barriers to equal access.
“People with mobility disabilities are entitled to have access to cells and showers they can safely use while incarcerated,” said Acting United States Attorney Tracy L. Wilkison. “San Luis Obispo County has taken important steps to ensure that the facilities at its jail are in compliance with the ADA.”
“Jails and prisons across our country must ensure that their facilities are accessible to people with disabilities. Compliance with the Americans with Disabilities Act ensures that inmates with disabilities have equal access to basic necessities, such as showers and sleeping areas, and to all activities that are offered to inmates without disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We commend the County for recognizing its obligations and working with the Department of Justice to bring the facilities at its jail into compliance with the law.”
Under the ADA, governmental entities that operate jails or prisons must make changes necessary to ensure that inmates with mobility disabilities do not serve time in a manner that is more difficult, or less safe, than those without disabilities.
The Justice Department opened its investigation after receiving a complaint by a former inmate at SLO Jail who has a mobility disability and uses a prosthetic leg. The inmate alleged that SLO Jail failed to provide him with an accessible cell or shower, causing him to fall repeatedly and, in one instance, to break his leg. The complainant also alleged that, because of his disability, SLO Jail denied him equal opportunities for recreation and other programs, leading him to experience unnecessary isolation.
Under the agreement, SLO Jail will make architectural changes to its facilities to ensure that they are accessible to inmates with disabilities. The jail will also train relevant staff, designate an ADA coordinator and implement an ADA complaint procedure. In addition, the jail will pay $175,000 to the complainant to compensate him for his pain and suffering.
For more information about the ADA and today’s agreement, please visit https://www.ada.gov/ or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY). ADA complaints may be filed online at https://www.ada.gov/file-a-complaint/.
Jury Convicts Two Men for Bribery and Kickback Conspiracy Involving U.S. Department of Defense ContractsRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted two men today for participating in a bribery and kickback conspiracy involving a contract for the U.S. Department of Defense’s Office of Inspector General (DoD OIG).
According to court records and evidence presented at trial, beginning in 2010 and continuing through 2015, William S. Wilson, 56, of Florida, was the owner of a small construction company based in Lake Butler, Florida that paid numerous kickbacks and bribes to his co-conspirators. Among other things, Wilson paid tens of thousands of dollars in bribes to Matthew K. LumHo, 46, of Fairfax Station, then employed with the DoD OIG’s Information Services Directorate. In return, LumHo took official acts that benefitted Wilson’s companies, including steering work to Wilson’s company by placing fraudulent service orders through a government contract that LumHo controlled.
The evidence presented at trial further proved that, over the same time period from 2010 through 2015, Wilson also paid numerous kickbacks to Ronald Capallia and another employee for a telecommunications company that was a prime contractor to the government. Wilson paid these kickbacks to Capallia and the other individual to cause them to steer work and provide favorable treatment to Wilson’s companies as subcontractors to the telecommunications company.
One of the key subcontracts steered to Wilson’s company related to a prime contract between the telecommunications firm and the DoD OIG, in which the telecommunications firm was supposed to supply various information technology-related services to the government. Wilson’s company was awarded this subcontract despite its lack of any relevant experience or expertise, and despite having no employees based in or near northern Virginia, where all the work was to be performed.
Wilson frequently disguised the bribes and kickbacks to Capallia, LumHo, and another individual through fake invoices for services that were never provided, or by masking the payments as payroll to relatives of Capallia and LumHo for jobs that did not in fact exist.
As the scheme progressed, the co-conspirators caused the government to submit numerous false and fraudulent service orders through the prime contract. The false service orders typically described the items being provided as specialized IT-related support services, when in fact the co-conspirators were simply buying standard, commercially available items, dramatically marking up the price, and billing the government as though it had been provided with the specialized IT-related services. The co-conspirators also used fraudulent service orders to conceal bribes in the form of high-end camera equipment and stereo equipment sent from Wilson to LumHo, thereby causing the government to pay for the very bribes that Wilson was sending to LumHo.
The evidence adduced at trial further demonstrated that the co-conspirators repeatedly sought to interfere with the criminal investigation by creating false documentation, making false statements to law enforcement officials, lying on a financial disclosure form, committing perjury during sworn civil deposition testimony, and tampering or attempting to tamper with a witness. In addition, Wilson threatened to murder Capallia and his family members by slitting their throats if Capallia ever testified on behalf of the government.
Co-conspirator Ronald A. Capallia, Jr., 40, pleaded guilty on January 25, 2018 to his role in the conspiracy and will be sentenced on September 14, 2021.
Wilson and LumHo each face a maximum penalty of 20 years in prison when sentenced on October 15. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Timothy R. Thibault, Acting Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Kelly P. Mayo, Deputy Inspector General for Investigations at the Department of Defense’s Office of Inspector General, made the announcement after Senior U.S. District Judge Liam O’Grady accepted the verdict.
Assistant U.S. Attorneys Matthew Burke and Russell L. Carlberg are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-222.
Jefferson County Doctor Sentenced to Federal Prison for Health Care Fraud ViolationsRead the Press Release
BEAUMONT, Texas – A physician practicing in Beaumont has been sentenced to prison for federal health care fraud violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Grigoriy T. Rodonaia, 45, of Port Neches, Texas, was convicted by a jury on Nov. 17, 2020, of 12 counts of health care fraud, three counts of aggravated identity theft, and one count of making a false statement. Rodonaia was sentenced to 84 months in federal prison today by U.S. District Judge Marcia Crone. Rodonaia was additionally ordered to pay $195,607.76 in restitution.
“Mr. Rodonaia’s sentence is well deserved. His criminal acts inflicted significant financial harm on the TRICARE system and involved identity theft from military service members and their families,” said Acting U.S. Attorney Nicholas J. Ganjei. “Targeting health care fraud in all its forms remains a top priority for the U.S. Attorney’s Office for the Eastern District of Texas.”
Rodonaia, a physician practicing in Beaumont with Rodonaia Family Medicine and Aesthetics, was indicted on March 18, 2020. According to information presented in court, beginning in January 2015, Rodonaia participated in a health care fraud scheme by issuing prescriptions for specially compounded scar creams using the names, dates of birth, and Health Insurance Claim Numbers of TRICARE beneficiaries, and caused the prescriptions to be forwarded directly to Memorial Compounding Pharmacy in Houston, Texas. These prescriptions were issued without consultation with the patient and without the patient’s knowledge. The pharmacy billed the prescriptions to the military health care program, TRICARE, at approximately $9,000 to $13,000 per prescription, with multiple refills authorized per prescription. Rodonaia issued over 600 prescriptions in the names of approximately 140 beneficiaries in furtherance of this scheme. Before the scheme could be detected, TRICARE paid approximately $6.7 million in TRICARE funds to Memorial Compounding Pharmacy. Further, to conceal his criminal activity, Rodonaia forged patient records to create the false appearance that he had examined those patients, and he submitted the fraudulent records to the Defense Health Agency in response to an audit.
This case was investigated by the Defense Criminal Investigative Service, the Drug Enforcement Administration, Health and Human Services – Office of Inspector General, and the Texas Medicaid Fraud Control Unit. Assistant U.S. Attorneys John B. Ross and Robert A. Wells prosecuted this case.
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Jacksonville Couple Pleads Guilty to Child Exploitation OffensesRead the Press Release
Jacksonville, Florida – Samuel Christopher Templeman (46, Jacksonville) has pleaded guilty to conspiring to sex traffic a child. His wife, Deborah Lynn Templeman (50, Jacksonville), has pleaded guilty to possession of child sex abuse material. Samuel Templeman faces a maximum penalty of life in federal prison, and Deborah Templeman faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreements, in 2018, Samuel Templeman and the child victim began regularly using heroin and crack cocaine together. Also at that time, a pimp began directing the child victim to engage in sex acts in exchange for drugs.
In July 2019, a court terminated the Templemans’ custodial rights over the child victim and ordered them not to have any contact with the child. The child was then placed in foster care, from which the child ran away. In late August 2019, Samuel Templeman received over $25,000 in inheritance, which the Templemans used to entice the child to return to them. By mid-October 2019, the Templemans had spent the entire inheritance, primarily on drugs for Samuel Templeman and the victim.
Thereafter, the only legitimate income for the Templemans and the victim was Deborah Templeman’s bi-weekly salary, which they spent 1-2 days after receipt. During the remaining portions of each month, the Templemans’ only income was derived from their sex trafficking of the child victim for money and the victim’s occasional panhandling. The Templemans spent most of that money on drugs and the rest on living expenses.
On December 11, 2019, a detective from the Jacksonville Sheriff’s Office went to Deborah Templeman’s place of employment in an attempt to locate the victim. While there, the detective overheard phone conversations in which Samuel Templeman told Deborah Templeman that he was taking the victim to a “date,” a common slang term for an appointment for the child to have sex for money, and that he would then come pick up Deborah Templeman. When Samuel Templeman later arrived at Deborah Templeman’s workplace, authorities arrested him and recovered the child victim.
Pursuant to a search warrant, investigators reviewed Deborah Templeman’s cellphone and found it contained sexually explicit images of the child victim. Deborah Templeman admitted that she knew those images were stored on her phone.
This case was investigated by the Jacksonville Sheriff’s Office and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Laura Cofer Taylor and Special Assistant United States Attorney Erin Wolfson.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Independence Man Pleads Guilty to Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – An Independence, Missouri, man pleaded guilty in federal court today to illegally possessing two firearms that he stole from a car and attempted to sell outside a nearby hotel.
Edward J. Kelly Jr., 39, pleaded guilty before U.S. District Judge Brian C. Wimes to one count of being a felon in possession of firearms.
Police officers contacted Kelly at the Truman Inn/Best Western Inn, 4048 S. Lynn Court Drive, Independence, at about 4:20 a.m. on Aug. 24, 2020, after an employee reported a suspicious person in the back courtyard of the hotel trying to sell guns. One officer began to pad-down Kelly when a second officer saw a loaded Glock 9mm handgun on a nearby picnic table. Kelly then fled; officers pursued him and took him into custody. Officers searched a black bag with drawstrings that Kelly had been wearing. Inside the bag, they found a Glock handgun case with three 9mm magazines, a loaded Taurus model “The Judge” revolver which was loaded with five rounds of .410 shells, an additional 10 rounds of .410 shells, and a Taser. They also found a glass smoking pipe that contained methamphetamine in Kelly’s pants pocket.
Both the Glock and the Taurus were reported stolen shortly before Kelly’s arrest. Kelly admitted that he stole the firearms from a car in a nearby home’s driveway.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Kelly has three prior felony convictions for tampering with a motor vehicle, and prior felony convictions for resisting a lawful stop, burglary, and domestic assault.
Under federal statutes, Kelly is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Sean T. Foley. It was investigated by the Independence, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Imposter sent to prison after claiming to be federal immigration officerRead the Press Release
LAREDO, Texas – A 53-year-old Laredoan has been ordered to federal prison after he admitted to wire fraud and extortion under color of official right, announced Acting U.S. Attorney Jennifer B. Lowery.
Rito Salomon Palacios pleaded guilty Sept. 9, 2020.
Today, U.S. District Judge Diana Saldana ordered Palacios to serve a 57-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard additional information including testimony and evidence detailing the fraud scheme and the emotional and fiscal damage Palacios caused the victims. Four of them appeared in court and detailed the harassment and threats Palacios committed and the resultant ill effect on their lives.
In handing down the sentence, Judge Saldana noted how heartless Palacios was in relation to his victims as well as his history of thefts and lies and the unfortunate lack of real punishment in previous cases.
The court upwardly departed and raised his criminal history category by two levels to adequately reflect his criminal history. Judge Saldana also mentioned his threats and aggression and considered Palacios a threat to the community.
Palacios masqueraded at varying times as an officer or employee of Customs and Border Protection, an immigration officer or another federal officer or employee. At the time of his plea, the court also heard he delivered receipts in documents bearing the seal of the Department of Transportation and Customs and Border Protection.
Palacios defrauded and extorted members of the public who were not citizens or nationals of the United States. He took money or property by false and fraudulent pretenses, representations and promises to deliver immigration visas, permits or residency in the United States. As part of the scheme, he utilized the internet to set appointments for his victims to be fingerprinted.
Palacios admitted as part of the plea that he demanded and obtained more than $72,000 from the fraud and extortion scheme.
Palacios was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Office of Professional Responsibility and Homeland Security Investigations conducted the investigation with the assistance of the Laredo Police Department. Assistant U.S. Attorney José Angel Moreno prosecuted the case.
Humboldt Man Charged in Federal Court for Being A Felon in Possession of A Loaded Firearm and for Possessing Methamphetamine for DistributionRead the Press Release
San FRANCISCO – Deryl Craig Morse appeared in United States District Court today to face a federal indictment charging him with being a felon who possessed a loaded firearm and also charging him with possessing with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair.
The indictment alleges that Morse, who is 58 years old and resides in McKinleyville, California, is a convicted felon who on March 10, 2021, possessed a Ruger .357 caliber revolver loaded with six rounds of .357 ammunition. A forfeiture allegation in the indictment asserts the loaded revolver was recovered from Morse’s residence along with more than 50 additional rounds of ammunition. Morse is also charged with possessing on the same date 50 grams or more of a mixture or substance containing methamphetamine with the intent to distribute it.
Morse made his initial appearance in federal court today before United States Magistrate Judge Joseph C. Spero. Morse is out of custody on condition of location monitoring. His next appearance is scheduled for July 14, 2021, for an initial appearance before United States District Judge James Donato.
The indictment charges Morse with possessing with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(B)(viii). If convicted, Morse faces a mandatory minimum sentence of 5 years in prison and a maximum sentence of 20 years, with a maximum fine of $5,000,000. The indictment also charges Morse with being a felon in possession of a firearm in violation of 18 U.S.C. § 922(g)(1). If convicted of this charge, Morse faces a maximum of 10 years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the Court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
An indictment merely alleges that crimes have been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Ankur Shingal is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Daniel Fuentes and Madeline Wachs. The prosecution is the result of an investigation by the FBI and the Humboldt County Drug Task Force.
Hubert Dupigny Sentenced to 25 Years in Prison for Sex Trafficking MinorsRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that HUBERT DUPIGNY, a/k/a “Fox,” was sentenced to 300 months in prison for sex trafficking of minors and conspiracy to commit sex trafficking of minors. DUPIGNY was previously convicted of those offenses, following an eight-day jury trial, on January 24, 2020, before U.S. District Judge Jesse M. Furman.
Manhattan U.S. Attorney Audrey Strauss said: “Hubert Dupigny trafficked minor victims who were runaways from the foster care system – victims who were half his age and did not have permanent homes or families to take care of them. Dupigny victimized, and violently abused, some of the most vulnerable members of our society for his own financial gain. His predatory conduct irreparably damaged the lives of his victims. Today, Hubert Dupigny was justly sentenced to 25 years in prison for his callous exploitation of those minor victims.”
According to the allegations contained in the Indictment and evidence presented during the trial in Manhattan federal court:
From at least in or about August 2016 through in or about May 2017, HUBERT DUPIGNY, a/k/a “Fox,” the defendant, engaged in a conspiracy to commit sex trafficking of minors. The defendant recruited two minor victims (“Victim-1” and “Victim-2”) to engage in commercial sex acts when they were living in foster care facilities or homes in New York City. The defendant took photographs of Victim-1 and Victim-2 in lewd positions, used Backpage.com to post advertisements of them for commercial sex, and then directed Victim-1 and Victim-2 to meet customers to engage in commercial sex out of an abandoned home in Brooklyn, New York. Victim-1 and Victim-2 saw as many as ten to fifteen customers each day. The defendant took all of the proceeds from their commercial sex acts, forcing Victim-1 and Victim-2 to be reliant on him for food and clothing.
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In addition to today’s prison sentence, DUPIGNY, 38, of Brooklyn, New York, was sentenced to 10 years of supervised release.
Ms. Strauss thanked the FBI and the New York City Police Department for their outstanding work in this matter, particularly the FBI-NYPD New York Child Exploitation and Human Trafficking Task Force.
Any individuals who believe they have information that may be relevant to this investigation should contact the Federal Bureau of Investigation at (212) 384-1000 or https://tips.fbi.gov/.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Mollie Bracewell, Elinor Tarlow, Jacob Gutwillig, and Michael Herman are in charge of the prosecution.
High-level member of hacking group sentenced to prison for scheme that compromised tens of millions of debit and credit cardsRead the Press Release
Seattle – A Ukrainian national was sentenced today in the Western District of Washington to 7 years in prison for his role in the criminal work of the hacking group FIN7. The defendant was also ordered by the Court to pay restitution in the amount of $2,500,000. At the sentencing hearing Chief U.S. District Judge Ricardo S. Martinez said, “To indiscriminately prey on millions of people… the consequences must be serious.”
According to documents filed in the case, statements made at the sentencing, and public documents, Andrii Kolpakov, 33, who has used a number of different names, served as a high-level hacker, whom the group referred to as a “pen tester,” for FIN7. He was arrested in Lepe, Spain, on June 28, 2018, at the request of U.S. law enforcement and was extradited to the United States on June 1, 2019. In June 2020, he pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to commit computer hacking.
“This defendant breached the security of numerous U.S. businesses and managed a team of hackers hunting payment card information,” said Acting U.S. Attorney Tessa M. Gorman. “He was not the leader – but he was an instrumental cog in the wheel – training recruits, developing new hacking techniques, and adding to FIN7’s malware arsenal. He left millions of victims in his wake and, together with his fellow hackers, caused tremendous harm to U.S. interests, estimated to be in the billions of dollars.”
According to public documents, since at least 2015 members of FIN7 (also referred to as Carbanak Group and the Navigator Group, among other names) engaged in a highly sophisticated malware campaign to attack hundreds of U.S. companies, predominantly in the restaurant, gambling, and hospitality industries. FIN7 hacked into thousands of computer systems and stole millions of customer credit and debit card numbers that were then used or sold for profit. FIN7, through its dozens of members, launched waves of malicious cyberattacks on numerous businesses operating in the United States and abroad. FIN7 carefully crafted email messages that would appear legitimate to a business’s employees and accompanied emails with telephone calls intended to further legitimize the emails. Once an attached file was opened and activated, FIN7 would use an adapted version of the Carbanak malware, in addition to an arsenal of other tools, to access and steal payment card data for the business’s customers. Since 2015, many of the stolen payment card numbers have been offered for sale through online underground marketplaces.
In the United States alone, FIN7 successfully breached the computer networks of businesses in all 50 states and the District of Columbia, stealing more than 20 million customer card records from over 6,500 individual point-of-sale terminals at more than 3,600 separate business locations. According to court documents, victims incurred enormous costs that, according to some estimates, exceeded one billion dollars. Additional intrusions occurred abroad, including in the United Kingdom, Australia, and France. Companies that have publicly disclosed hacks attributable to FIN7 include Chipotle Mexican Grill, Chili’s, Arby’s, Red Robin, and Jason’s Deli.
Kolpakov was involved with FIN7 from at least April 2016, until his arrest in June 2018. He also managed other hackers tasked with breaching the security of victims’ computer systems. During the course of the scheme, Kolpakov received compensation for his participation in FIN7, which far exceeded comparable legitimate employment in Ukraine. Moreover, FIN7 members, including Kolpakov, were aware of reported arrests of other FIN7 members, but nevertheless continued to attack U.S. businesses.
“Mr. Kolpakov is an experienced specialist and leader, responsible for directing the activities of others within this criminal organization,” said Special Agent in Charge Donald M. Voiret of the FBI’s Seattle Field Office. “As the cybersecurity threat evolves and finetunes its techniques, the FBI and our partners continue our pursuit of these hackers to help safeguard American businesses and individuals.”
This case is the result of an investigation conducted by the Seattle Cyber Task Force of the FBI and the U.S. Department of Justice. The Justice Department’s Office of International Affairs, the National Cyber-Forensics and Training Alliance, numerous computer security firms and financial institutions, FBI offices across the nation and globe, as well as a number of international agencies provided significant assistance. Spanish law enforcement authorities provided significant assistance by arresting Kolpakov.
This case was prosecuted by Assistant U.S. Attorneys Francis Franze-Nakamura and Steven Masada of the Western District of Washington and Trial Attorney Anthony Teelucksingh of the Criminal Division’s Computer Crime and Intellectual Property Section.
High-Level Member of Hacking Group Sentenced to Prison for Scheme that Compromised Tens of Millions of Debit and Credit CardsRead the Press Release
A Ukrainian national was sentenced today in the Western District of Washington to seven years in prison for his role in the criminal work of the hacking group FIN7. The defendant was also ordered by the court to pay restitution in the amount of $2,500,000.
According to documents filed in the case, statements made at the sentencing, and public documents, Andrii Kolpakov, 33, who has used a number of different names, served as a high-level hacker, whom the group referred to as a “pen tester,” for FIN7. He was arrested in Lepe, Spain, on June 28, 2018, at the request of U.S. law enforcement and was extradited to the United States on June 1, 2019. In June 2020, he pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to commit computer hacking.
According to public documents, since at least 2015, members of FIN7 (also referred to as Carbanak Group and the Navigator Group, among other names) engaged in a highly sophisticated malware campaign to attack hundreds of U.S. companies, predominantly in the restaurant, gambling and hospitality industries. FIN7 hacked into thousands of computer systems and stole millions of customer credit and debit card numbers that were then used or sold for profit. FIN7, through its dozens of members, launched waves of malicious cyberattacks on numerous businesses operating in the United States and abroad. FIN7 carefully crafted email messages that would appear legitimate to a business’s employees and accompanied emails with telephone calls intended to further legitimize the emails. Once an attached file was opened and activated, FIN7 would use an adapted version of the Carbanak malware, in addition to an arsenal of other tools, to access and steal payment card data for the business’s customers. Since 2015, many of the stolen payment card numbers have been offered for sale through online underground marketplaces.
In the United States alone, FIN7 successfully breached the computer networks of businesses in all 50 states and the District of Columbia, stealing more than 20 million customer card records from over 6,500 individual point-of-sale terminals at more than 3,600 separate business locations. According to court documents, victims incurred enormous costs that, according to some estimates, exceeded $1 billion. Additional intrusions occurred abroad, including in the United Kingdom, Australia and France. Companies that have publicly disclosed hacks attributable to FIN7 include Chipotle Mexican Grill, Chili’s, Arby’s, Red Robin and Jason’s Deli.
Kolpakov was involved with FIN7 from at least April 2016 until his arrest in June 2018. He also managed other hackers tasked with breaching the security of victims’ computer systems. During the course of the scheme, Kolpakov received compensation for his participation in FIN7, which far exceeded comparable legitimate employment in Ukraine. Moreover, FIN7 members, including Kolpakov, were aware of reported arrests of other FIN7 members, but nevertheless continued to attack U.S. businesses.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Tessa M. Gorman for the Western District of Washington; and Special Agent in Charge Donald M. Voiret of the FBI’s Seattle Field Office made the announcement.
This case is the result of an investigation conducted by the Seattle Cyber Task Force of the FBI and the U.S. Department of Justice. The Justice Department’s Office of International Affairs, the National Cyber-Forensics and Training Alliance, numerous computer security firms and financial institutions, FBI offices across the nation and globe, as well as a number of international agencies provided significant assistance. Spanish law enforcement authorities provided significant assistance by arresting Kolpakov.
This case was prosecuted by Trial Attorney Anthony Teelucksingh of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Francis Franze-Nakamura and Steven Masada of the Western District of Washington.
Heroin/Fentanyl Supplier to DS44 Drug Gang Gets 10-Year Federal Prison SentenceRead the Press Release
PITTSBURGH - A former Pittsburgh resident has been sentenced in federal court to 10 years’ imprisonment and 8 years’ supervised release on his conviction of a drug-trafficking charge related to a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge William S. Stickman, IV imposed the sentence on Jarrell Dawson, age 32, formerly of Pittsburgh, Pennsylvania. Dawson pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute more than 40 grams of a mixture containing heroin and fentanyl, and a quantity of cocaine, before United States District Judge William S. Stickman IV. Mr. Dawson is one of 40 defendants charged in the Indictment and Superseding Indictment returned in the case and was proven to be a fentanyl and heroin supplier to Christopher Highsmith and other coconspirators.
In connection with his guilty plea, the court was advised that in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and its drug-trafficking activity, in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019. In addition to communications about drug trafficking between Dawson and several of his coconspirators, agents made numerous seizures of fentanyl, heroin, and other drugs from members of the organization, as well as maintained critical physical surveillance of Dawson’s drug-trafficking activities.
Assistant United States Attorneys Carolyn J. Bloch and Brendan J. McKenna prosecuted this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Gulfport Man Pleads Guilty to Illegal Possession of FirearmRead the Press Release
Gulfport, Miss. – A Gulfport man pled guilty to being an unlawful drug user in possession of a firearm, announced Acting U.S. Attorney Darren J. LaMarca and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
According to court documents, Gulfport Police officers and ATF agents executed a search warrant on the residence of Connor Higginbotham, 22, of Gulfport, as part of investigation into stolen firearms. Agents discovered 12 firearms, several of them capable of receiving high capacity magazines. Officers also discovered approximately 300 grams of marijuana and an unregistered silencer. Higginbotham was taken into custody and later admitted to purchasing some of the firearms and knowing they were stolen. Higginbotham also admitted to daily use of marijuana and frequent use of Percocet.
Higginbotham pled guilty to being an unlawful user of a controlled substance in possession of a firearm. He is scheduled to be sentenced on September 23, 2021. He faces a maximum penalty of 10 years in federal prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Gulfport Police Department, and the Hancock County Sheriff’s Department investigated the case.
Assistant U.S. Attorney Jonathan Buckner is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.