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Tuesday 8 June 2021
Pennsylvania Man Charged with Using Identities of Then-President’s Family Members to Perpetrate Online Fraud SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a Complaint charging JOSHUA HALL with fraud and identity theft offenses for impersonating family members of the then-President of the United States on social media to fraudulently raise funds for a fictitious political organization.
HALL was arrested this morning and will be presented later today in Harrisburg federal court before United States Magistrate Judge Susan E. Schwab.
Manhattan U.S. Attorney Audrey Strauss said: “Joshua Hall allegedly impersonated family members of the then-President of the United States on social media to fraudulently induce hundreds of victims to donate to a political organization that did not exist, and then pocketed those funds for his own use. We thank the FBI for their partnership in the investigation of this case, and we remain dedicated to rooting out and prosecuting fraud wherever we find it.”
FBI Assistant Director-in-Charge William F. Sweeney, Jr., said: “Hall led hundreds of people to believe they were donating to an organization that didn’t exist by pretending to be someone he wasn’t, as alleged. As we continue to investigate fraud in all its many forms, we urge the public to remain aware of the prevalence of online scams and exercise due diligence when making donations online.”
According to the allegations in the Complaint[1]:
HALL defrauded hundreds of victims by making false representations in the course of raising funds for a purported political affinity organization (“the Fictitious Political Organization”), for the ostensible purpose of supporting the reelection of the individual who was at that time serving as President of the United States (“the President”). However, the Fictitious Political Organization did not exist and HALL used the funds for his own personal living expenses.
Central to the scheme was the impersonation by HALL of members of the President’s family, including the President’s minor child, among others, through his creation and use of social media accounts bearing those family members’ names and photographs. HALL used those accounts to amass more than 100,000 followers on social media and obtain media coverage, a public platform he then exploited to confer on himself and the Fictitious Political Organization a false imprimatur of close ties with the President’s family and to encourage victims to make monetary contributions to the Fictitious Political Organization.
In total, the scheme devised and executed by HALL yielded thousands of dollars from hundreds of victims located throughout the United States, including in the Southern District of New York.
* * *
HALL, 22, of Mechanicsburg, Pennsylvania, is charged with wire fraud, which carries a maximum sentence of 20 years of imprisonment, and aggravated identity theft, which carries a mandatory consecutive sentence of 2 years of imprisonment. 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 outstanding investigative work of the FBI.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorney Robert B. Sobelman is in charge of the prosecution.
The charge contained in the Complaint is merely an accusation, 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.
Passaic Man Sentenced to 10 Years in Prison for Role in Cocaine Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – A Passaic, New Jersey, man was sentenced today to 120 months in prison for his role in a large-scale cocaine distribution conspiracy, Acting U.S. Attorney Rachael Honig announced.
Narcisco Ramirez, 46, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with conspiracy to distribute cocaine. Judge Cecchi imposed the sentence via videoconference today.
According to documents filed in the case and statements made in court:
Ramirez was part of a conspiracy to distribute large quantities of cocaine in and around Passaic County in 2017. In November 2017, law enforcement officers observed Ramirez and a conspirator meet at a location in Passaic and exchange a package containing cocaine. Later that day, officers stopped Ramirez’s car and found one kilogram of cocaine on the front seat and two additional kilograms hidden in his right pant leg and waist band. A search of Ramirez’s residence revealed another two kilograms of cocaine and $89,000 in cash. Law enforcement officers also discovered over $296,000 in cash in two different safety deposit boxes controlled by Ramirez. In total, law enforcement officers seized approximately 29 kilograms of cocaine and over $1.3 million in drug proceeds from Ramirez and his conspirators.
In addition to the prison term, Judge Cecchi sentenced Ramirez to five years of supervised release and order him to forfeit over $384,000 in drug proceeds.
Acting U.S. Attorney Honig credited special agents and task force officers of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson, and the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Office Criminal Division in Newark.
Operation False Haven: Moore County Man Sentenced for Naturalization FraudRead the Press Release
RALEIGH, N.C. – The United States Attorney’s Office for the Eastern District of North Carolina announced that today, in federal court, Antonio C. Paz, age 70, a naturalized citizen of the United States, born in Portugal, residing in Moore County, was sentenced by United States District Judge James C. Dever, III, to three years’ probation with a $1,000 fine following a guilty plea to naturalization fraud. Moreover, Paz’s naturalization as a United States citizen was criminally revoked.
According to court records, on November 15, 2013, Paz fraudulently obtained U.S. citizenship by making a false statement under oath regarding his naturalization application. In response to the question, “Have you ever committed a crime or offense for which you were not arrested,” he answered, “No,” when in fact he had embezzled thousands of dollars from a North Carolina retirement community where he was employed as a director.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. Agents with ICE’s Enforcement and Removal Operations and Homeland Security Investigations, assigned to the Document Benefit Fraud Task Force, investigated the case as part of Operation False Haven. Operation False Haven is an ongoing initiative designed to identify and prosecute child molesters and other egregious felons who fraudulently obtained U.S. citizenship.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-cr-00299-1D(3).
Oil City Man Pleads Guilty to Child Sexual Exploitation Charge; Judge Detains Him Pending SentencingRead the Press Release
ERIE, Pa. - A resident of Oil City, Pennsylvania, pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Stephen R. Kaufman announced today.
Brent Lockwood, 63, pleaded guilty to one count before United States District Judge Stephanie L. Haines.
In connection with the guilty plea, the Court was advised that Lockwood received computer images depicting minors engaging in sexually explicit conduct. The Court was also advised that Lockwood repeatedly expressed, during Facebook chats, his desire to travel to the Philippines for the purpose of engaging in illicit sexual activity with minor females.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Judge Haines scheduled sentencing for October 13, 2021 at 10:00 a.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the Court ordered that Lockwood be detained.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Department of Homeland Security Investigations conducted the investigation that led to the prosecution of Lockwood.
Nun Who Ran Catholic School in Torrance Will Plead Guilty to Federal Charges after Embezzling $835,000 to Finance Gambling HabitRead the Press Release
LOS ANGELES – Federal prosecutors today filed charges against a now-retired nun who was the principal of a Catholic elementary school in Torrance and who has agreed to plead guilty to fraud and money laundering charges for stealing more than $835,000 in school funds to pay for personal expenses, including gambling trips.
Mary Margaret Kreuper, 79, of Los Angeles, was charged today with one count of wire fraud and one count of money laundering. In conjunction with the criminal information, prosecutors filed a plea agreement in which Kreuper agreed to plead guilty to the two charges that carry a maximum statutory penalty of 40 years in federal prison.
For a period of 10 years ending in September 2018, Kreuper embezzled money from St. James Catholic School. As principal – a position she held for 28 years – Kreuper was responsible for the money the school received to pay for tuition and fees, as well as for charitable donations. Kreuper controlled accounts at a credit union, including a savings account for the school and one established to pay the living expenses of the nuns employed by the school.
Kreuper, who as a nun had taken a vow of poverty, diverted school funds into the St. James Convent Account and the St. James Savings Account and then, as she admitted in her plea agreement, used the diverted funds “to pay for expenses that the order would not have approved, much less paid for, including large gambling expenses incurred at casinos and certain credit card charges.”
Kreuper further admitted in her plea agreement that she falsified monthly and annual reports to the school administration to cover up her fraudulent conduct and “lulled St. James School and the Administration into believing that the school’s finances were being properly accounted for and its financial assets properly safeguarded, which, in turn, allowed defendant Kreuper to maintain her access and control of the school’s finances and accounts and, thus, continue operating the fraudulent scheme.” The criminal information also alleges that Kreuper directed St. James School employees to alter and destroy financial records during a school audit.
Kreuper admitted that, over the course of the scheme, she caused losses to St. James Catholic School totaling $835,339.
Kreuper has agreed to appear in United States District Court for an arraignment on July 1.
The Torrance Police Department, the FBI and IRS Criminal Investigation conducted the investigation in this matter.
Assistant United States Attorney Poonam G. Kumar of the Major Frauds Section is prosecuting the case.
North Dakota Man Charged with Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Bismarck, North Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
John James Moran, age 49, was indicted on May 4, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on June 3, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that Moran, who had previously been convicted of a sex crime and required to register under the Sex Offender Registration and Notification Act, failed to do so between August 17, 2020, and May 4, 2021.
The charge is merely an accusation and Moran is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Moran was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
North Carolina Return Preparer Sentenced to Prison for Tax Fraud SchemeRead the Press Release
A Kinston, North Carolina, woman was sentenced today to 30 months in prison for conspiring to file false tax returns for her clients.
According to court records, from at least January 2016 through March 2016, Hildares Kinkesha Parker-Greene managed a tax return preparation business in Kinston. Parker-Greene conspired with another return preparer to fraudulently inflate clients’ tax refunds by claiming false wages, federal income tax withholdings, and dependents. This fraudulent conduct caused clients to receive refunds to which they were not entitled. To profit from the false returns, Parker-Greene printed client tax refund checks, directed clients to cash the refund checks, and pay her additional cash fees. Additionally, between 2017 and 2018, Parker-Greene operated a tax preparation business out of her home and continued to prepare false returns for clients. In total, the false returns prepared by Parker-Greene and her co-conspirator sought to defraud the IRS of more than $550,000.
In addition to the term of imprisonment, U.S. District Court Judge James C. Dever III ordered Parker-Greene to serve three years of supervised release and pay $442,576 in restitution to the IRS.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney G. Norman Acker III for the Eastern District of North Carolina made the announcement.
The IRS-Criminal Investigation investigated the case.
Trial Attorneys Michael Jones and William Guappone of the Tax Division prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Nigerian National Arrested for False Claim to United States CitizenshipRead the Press Release
ST. THOMAS, USVI – U.S. Attorney Gretchen C.F. Shappert announced that a Nigerian national was arrested on June 4, 2021, at the Cyril E. King Airport on criminal charges related to her alleged misrepresentation that she was a United States citizen.
According to court documents, Ifeoma Inneh, 40, appeared at the U.S. Customs and Border Protection (CBP) inspection checkpoint at the Cyril E. King Airport, St. Thomas, Virgin Islands on June 4, 2021. She was a ticketed passenger on a flight traveling to Newark, New Jersey. In primary and secondary inspection, Inneh told CBP officers that she was a citizen of the United States. The CBP officers determined that Inneh was not a citizen of the United States.
Inneh is charged with knowingly making a false claim to United States citizenship in violation of 18 U.S.C. § 911, and making material false statements to CBP Officers in a matter within the jurisdiction of the executive branch of the Government of the United States, in violation of 18 U.S.C. § 1001(a)(2). If convicted, Inneh faces a maximum penalty of 8 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Department of Homeland Security-Homeland Security Investigations and CBP are investigating the case. Assistant U.S. Attorney Adam Sleeper is prosecuting the case.
U.S. Attorney Shappert reminds the public that a criminal complaint is merely a charging document and that all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.New Haven Man Sentenced to 2 More Years in Federal Prison for Violating Supervised ReleaseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that RODNEY SNAPE, 40, of New Haven, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 24 months of imprisonment for violating conditions of his federal supervised release.
According to court documents and statements made in court, in May 2013, Judge Arterton sentenced Snape to 105 months of imprisonment and three years of supervised release for distributing crack cocaine. In February 2015, Snape’s sentence was reduced to 88 months of imprisonment due to a change in the federal crack cocaine sentencing guidelines. He was released from prison in June 2019.
On February 20, 2020, Snape was arrested by New Haven Police for possession of narcotics with intent to distribute. He pleaded nolo contendere in state court and, in January 2021, was sentenced to a suspended three-year term of incarceration and two years of probation.
On May 5, 2021, Snape was again arrested by New Haven Police after he was found in possession of approximately eight grams of cocaine, items used to package narcotics for street sale, and more than $4,500 in cash. The case is pending in state court.
This case was prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
New Britain Man Charged with Theft of Government PropertyRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Joshua W. McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, today announced that STEVEN KNOX, 45, of New Britain, has been charged by federal criminal complaint with theft of government property.
Knox appeared today via videoconference before U.S. Magistrate Judge Robert A. Richardson in Hartford and was released on a $100,000 bond.
As alleged in the complaint, in the early morning hours of May 19, 2021, the tire shed at a U.S. Postal Service (USPS) vehicle maintenance facility in Hartford was burglarized and approximately 43 tires were stolen. The facility’s surveillance video showed a pickup truck pulling up to the tire shed at approximately 1:30 a.m. Knox and another individual then broke into the shed, loaded tires into the bed of pickup, and then drove off. Knox was formerly employed by a USPS towing contractor and possessed a key card to access the vehicle maintenance facility’s gate.
The charge of theft of government property carries a maximum term of imprisonment of 10 years.
Acting U.S. Attorney Boyle stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the U.S. Postal Inspection Service with the assistance of the New Britain Police Department. The case is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala.
McKees Rocks Woman Sentenced for Role in Crack Cocaine Trafficking RingRead the Press Release
PITTSBURGH - A local woman has been sentenced in federal court to time served and five years’ supervised release on her conviction of conspiracy to possess with intent to distribute and distribute crack cocaine, Acting United States Attorney Stephen R. Kaufman announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Mardeja Chapple, 26, of McKees Rocks, PA.
According to information presented to the court, in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the GBK street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. The wiretap investigation revealed that from in and around November 2017 through in and around June 2018, Mardeja Chapple conspired to distribute over 280 grams of crack cocaine.
Prior to imposing sentence, Senior Judge Schwab stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorneys Tonya Sulia Goodman and Yvonne M. Saadi prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Federal Bureau of Investigation and the Drug Enforcement Administration jointly with the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department, for the investigation leading to the successful prosecution of Chapple.
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.
Maxton Man Sentenced for Possessing a Firearm as a Convicted FelonRead the Press Release
NEW BERN, N.C. – A Maxton man was sentenced today to 132 months in prison and five years of supervised release for unlawfully possessing a firearm. On December 9, 2020, Jonathan Wayne Clark, 28, pled guilty to possessing a firearm as a convicted felon.
According to court documents and other information presented in court, on July 20, 2019, the Robeson County Sheriff’s Office received a call about a shooting that occurred at a party in Red Springs. Upon arrival, officers located a deceased victim. During the processing of the crime scene, law enforcement located .40 caliber and 7.62 caliber spent shell casings and a Glock 23, .40 caliber pistol. A crime scene witness advised that she observed an Indian male covered in tattoos shoot a firearm. Further investigation revealed that Clark attended the party and possessed a Draco AK-47 style pistol. While at the party, a fight broke out amongst the attendees and guns were drawn.
Law enforcement interviewed Clark, and he admitted to possessing the Draco AK-47 style pistol and shooting it into the air during the altercation. The Cumberland County Sheriff’s Office examined the shell casings and determined that the recovered Draco AK-47 style pistol fired the rounds. During the interview, Clark also admitted to being a gang member and associated with the Folk Nation. He acknowledged that he was a convicted felon and previously served multiple years in prison. Clark also admitted to possessing two additional guns on prior occasions.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, Robeson County Sheriff’s Office, and Cumberland County Sheriff’s Office investigated the case and Assistant U.S. Attorney Chad Rhoades prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-CR-00094-FL.
Maryland man sentenced for fentanyl distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – James Lamont Brinkley, of Baltimore, Maryland, was sentenced to 58 months of incarceration for distributing fentanyl, Acting U.S. Attorney Randolph J. Bernard announced.
Brinkley, age 34, pleaded guilty in October 2019 to one count of “Aiding and Abetting Possession with Intent to Distribute Fentanyl.” Brinkley was found in a motel in Spring Mills, West Virginia, in November 2018 with 30 grams of fentanyl, 39 grams of a synthetic opiate known as U47700, and a cutting agent, as well as digital scales and plastic baggies. The amount of fentanyl seized was enough to kill more than 10,000 people. Other drugs were also found in the room, along with $9,600 in cash.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
Assistant U.S. Attorneys Timothy D. Helman and Lara Omps-Botteicher and Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, prosecuted the case on behalf of the government. The FBI; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Berkeley County Prosecuting Attorney’s Office; the Berkeley County Sheriff’s Office; the Jefferson County Sheriff’s Office; the Martinsburg Police Department; the Charles Town Police Department; and the Ranson Police Department investigated. The United States Marshals assisted.
Chief U.S. District Judge Gina M. Groh presided.Find the original case here: https://www.justice.gov/usao-ndwv/pr/33-indicted-heroin-cocaine-and-fentanyl-distribution-operation-berkeley-and-jefferson
Martinsburg woman sentenced for role in drug trafficking enterpriseRead the Press Release
MARTINSBURG, WEST VIRGINIA – Barbara Jean Feltner, of Martinsburg West Virginia, was sentenced today to 10 months of incarceration for her role in a drug distribution enterprise, Acting U.S. Attorney Randolph J. Bernard announced.
Feltner, 32, pleaded guilty in December 2020 to one count of “Aiding and Abetting Distribution of Heroin and Fentanyl.” Feltner admitted to working with others to sell heroin and fentanyl in February 2020 in Berkeley County.Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The FBI; the Department of Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; and the West Virginia Air National Guard investigated. The Eastern District of Pennsylvania U.S. Attorney’s Office and the Kent County Sheriff’s Office assisted.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Chief U.S. District Judge Gina M. Groh presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/22-people-indicted-drug-trafficking-enterprise-spanned-several-states
Martinsburg man facing child pornography chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Brandon Cody Sabol, of Martinsburg, West Virginia, was indicted by a federal Grand Jury in May 2021 on child pornography charges, Acting United States Attorney Randolph J. Bernard announced.
Sabol, 32, was indicted on one count of “Distribution of Child Pornography” and one count of “Possession of Child Pornography.” Sabol is accused of distributing child pornography in May 2020 in Berkeley County. He is also accused of having an image of child pornography containing a child under the age of 12 in October 2020 in Berkeley County.
Sabol faces at least five years and up to 20 years of incarceration and a fine of up to $250,000 for the distribution charge. He faces up to 20 years of incarceration and a fine of up to $250,000 for the possession charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Kimberley L. Crockett is prosecuting the case on behalf of the government. The West Virginia State Police investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Man Pleads Guilty After Arriving at Cyril E. King Airport with Nine Vacuum Sealed Packages of MarijuanaRead the Press Release
ST. THOMAS, USVI – United States Attorney Gretchen C.F. Shappert announced on Tuesday that Kharim Moore pled guilty yesterday in federal court to possession with intent to distribute marijuana.
According to court documents, U.S. Customs and Border Protection (CBP) officers were conducting screenings of arriving passengers at the Cyril E. King Airport on November 4, 2020 when Moore disembarked a Delta Airlines flight from Atlanta, GA. He was selected for inspection and his carryon backpack was searched.
Officers discovered nine vacuum sealed packages with a green leafy substance inside that weighed approximately 3.48 kilograms. The substance tested positive for marijuana.
The Department of Homeland Security-Homeland Security Investigations and CBP investigated the case. It is being prosecuted by Assistant United States Attorney Kyle Payne and is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Moore will be sentenced at a later date and faces a maximum term of up to five years imprisonment.Man Indicted for Sending Threatening Text Message to Social WorkerRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that a federal grand jury returned a one-count indictment on May 27, 2021, charging Daniel Devaty, 49, of Elyria, Ohio, with influencing a federal official by threatening a family member.
According to the affidavit in support of the criminal complaint, on March 24, 2021, it is alleged that the Defendant sent a text message to the government-issued cell phone of a Department of Veterans Affairs (VA) Social Worker threatening to kill his daughters. Law enforcement officials with the Department of Veterans Affairs, Office of Inspector General (OIG) investigated the alleged threat and determined that the VA social worker previously worked with the Defendant on a HUD-VA program that offered support services to homeless Veterans and their families to help find and sustain permeant housing.
According to the affidavit, the Defendant was admitted to the HUD-VA program in March of 2014 and was removed in January of 2021 after numerous complaints of physical threats and public intoxication. The Defendant stated to law enforcement investigators that he sent the threatening text message to the cell phone of the VA social worker and a non-threatening message to another social worker after learning of his removal from the program.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the Defendant’s sentence will be determined by the Court after review of factors unique to this case, including the Defendant’s prior criminal record, if any, the Defendant’s role in the offense, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This investigation was conducted by the Department of Veterans Affairs, Office of Inspector General (OIG) and the Cleveland VA Medical Center (VAMC) Police Department. This case is being prosecuted by Assistant U.S. Attorney Bryson Gillard.
Lumberton Man Sentenced to 15 Years for Firearms OffenseRead the Press Release
NEW BERN, N.C. – A Lumberton man was sentenced today to 180 months in prison for possessing a firearm while being a prohibited person. On January 20, 2021, Ledger Lynn Hammonds, Jr. pled guilty to a Criminal Information, which charged Possession of a Firearm by a Felon.
According to court documents and other information presented in court, Hammonds, 44, was the subject of multiple investigations from 2013 through 2017, including several incidents where buffalo belonging to a relative were found deceased after being shot. On June 28, 2017, investigators executed a search warrant at Hammonds’ residence and recovered two firearms from the bedroom that Hammonds identified as his. Due to an extensive criminal history that includes qualifying predicate convictions, Hammonds was determined to be an armed career criminal and thereby subject to an enhanced sentence under the provisions of 18 U.S.C. § 924(e).
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and Robeson County Sheriff’s Office (RCSO) 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.
A copy of this press release is located on our website. 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. 7:18-cr-00050-FL.
Long Island MS-13 Gang Leader Sentenced to 25 Years’ Imprisonment for Racketeering and Firearms OffensesRead the Press Release
Earlier today, in federal court in Central Islip, Ronald Catalan, a former leader of the Brentwood Locos Salvatruchas (BLS) clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, was sentenced by United States Circuit Judge Joseph F. Bianco to 25 years’ imprisonment. The sentencing follows Catalan’s guilty plea to racketeering charges, including predicate acts relating to a June 23, 2009 shooting in Brentwood and an October 21, 2015 shooting in Bay Shore that collectively left three victims wounded. Catalan also pleaded guilty to conspiracy to distribute cocaine and marijuana as predicate racketeering acts, as well as illegally using firearms in connection with crimes of violence. Catalan, who was the leader of the BLS clique from 2015 until his federal arrest in July 2017, pleaded guilty in October 2018.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Stuart Cameron, Acting Commissioner, Suffolk County Police Department (SCPD), announced the sentence.
“Catalan will deservedly spend decades in prison for the violent and brutal acts he committed and directed others to carry out as a leader of the MS-13. His ruthless and retaliatory attacks on his so-called ‘rivals’ to enhance his own status in the MS-13 demonstrate his complete and callous disregard for human life,” stated Acting United States Attorney Lesko. “Working with our partners on the FBI’s Long Island Gang Task Force, this Office will continue its relentless pursuit of justice for the victims of the MS-13 and will not rest until the threat they present to the communities in our district is eliminated.”
“Thanks to the relentless efforts of the FBI’s Long Island Gang Task Force and Eastern District of New York, Catalan will be held accountable for his vicious crimes that nearly claimed three lives,” stated Acting SCPD Commissioner Cameron. “The SCPD will continue to work with our law enforcement partners to put an end to gangs in our communities and their senseless violence while continuing to seek justice for MS-13 victims.”
On June 23, 2009, Catalan and two other MS-13 members, all of whom were new members of the BLS clique, armed themselves with handguns and drove through Brentwood, hunting for rival gang members to attack and kill in order to increase their standing in the MS-13 gang. They observed a group of males on Barleau Street whom they believed to be members of the Bloods street gang. The MS-13 members got out of their car, approached the group and started firing. John Doe #1 was struck in the armpit and back as he tried to run. John Doe #1 underwent surgery and ultimately survived the attack.
In addition to shooting John Doe #1, Catalan admitted to participating in the October 21, 2015 attempted murders of two men that occurred on Bancroft Road in North Bay Shore. Catalan and other MS-13 members decided to retaliate against suspected members of the rival Latin Kings gang for the assault of an MS-13 member earlier that day. The MS-13 members, who were armed with two .38 caliber revolvers, drove around Brentwood and Bay Shore and observed a group of people they believed to be Latin Kings. Catalan directed two newer MS-13 members to carry out the shooting and gave them the .38 caliber revolvers. The MS-13 members fired multiple shots before running back to the car and fleeing the scene. Two victims were struck by gunfire, but survived their wounds. Catalan further admitted that, between January 2015 and February 2016, he and other members of the BLS clique conspired to distribute cocaine and marijuana to help finance the MS-13’s operations.
Today’s sentencing is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent, transnational criminal organization. The MS-13’s leadership is based in El Salvador and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. With numerous branches, or “cliques,” the MS-13 is the most violent street gang on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 60 murders in the Eastern District of New York, and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department and the New York State Department of Corrections and Community Supervision.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys John J. Durham, Paul G. Scotti, Justina L. Geraci and Megan Farrell are in charge of the prosecution.
The Defendant:
RONALD CATALAN (also known as “Stranger” and “Extrano”)
Age: 30
Brentwood, New YorkE.D.N.Y. Docket No. 16-CR-403 (S-6)(JFB)
Lawrence County Attorney Indicted for Wire Fraud and Federal Program TheftRead the Press Release
LEXINGTON, Ky. - In a newly unsealed federal indictment, the County Attorney for Lawrence County and his legal secretary have been indicted on charges of conspiracy to commit wire fraud, wire fraud, and federal program theft.
On Thursday, June 3, a federal grand jury in Lexington returned an indictment charging Michael T. Hogan, 53, and his wife, Joy M. Hogan, 41, with one count of conspiracy to commit wire fraud, and charging Michael Hogan with nine counts of wire fraud, and five counts of federal program theft.
The indictment alleges that the Hogans conspired with each other to commit wire fraud by issuing checks from a second delinquent tax account for the Lawrence County Attorney’s Office, the statements for which went to their personal residence. It is alleged that Michael Hogan and Joy Hogan would routinely prepare “bonus” checks issued to Joy, and signed by Michael, paid with delinquent tax funds that should have been used on operating expenses for the Lawrence County Attorney’s Office. The Hogans deposited these checks in Joy’s personal account and the couple’s joint accounts and spent the funds on personal expenses. The indictment alleges that, between March 8, 2013 and April 30, 2020, Michael Hogan paid Joy Hogan more than $365,000, from the Lawrence County Delinquent Tax Account.
The indictment also alleges that Michael Hogan defrauded the Lawrence County Child Support Enforcement Office, part of the Kentucky Cabinet for Health and Family Services. It is alleged Hogan billed the program for far more hours than he actually worked. It is also alleged Michael Hogan paid employees working for his private law firm with funds from the Child Support Enforcement office.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Robert Brown, Special Agent in Charge, FBI, Louisville Field Office; and Colonel Phillip Burnett, Commissioner, Kentucky State Police; jointly announced the indictment.
The investigation preceding the indictment was conducted by the FBI and KSP. The case is being handled by Assistant U.S. Attorney Kate Smith.
Michael Hogan’s initial appearance is June 9 at 11 a.m., and Joy Hogan is scheduled to appear on Friday, June 11, at 1 p.m. On the wire fraud charges, they face up to 20 years in prison and a fine of no more than $250,000 or twice the amount of gain or loss. On the federal program theft charges, Michael Hogan faces up to 10 years in prison and a fine of no more than $250,000. However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.
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Las Vegas Man Pleads Guilty to Submitting False Documents to USCISRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that ARASH VAKHSHOURI, 42, of Las Vegas, Nevada, pleaded guilty today to submitting false documents to a government agency.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. District Judge Janet Bond Arterton occurred via videoconference.
According to court documents and statements made in court, between January and May 2017, Vakhshouri drafted and sent a total of seven fraudulent letters to U.S. Citizenship and Immigration Services (USCIS) in Connecticut purporting to be from two individuals who had applied to USCIS to become legal residents of the U.S. in March 2016. The letters, which included the victims’ names, passport numbers, application numbers and alien file numbers, fraudulently requested the withdrawal or cancellation of the victims’ applications for legal permanent resident status in the U.S.
Vakhshouri was arrested on June 20, 2019.
Judge Arterton scheduled sentencing for August 31, 2021, at which time Vakhshouri faces a maximum term of imprisonment of five years.
Vakhshouri is released on a $50,000 bond pending sentencing.
This matter has been investigated by Homeland Security Investigations (HSI), the U.S. Postal Inspection Service and the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorneys Nathaniel J. Gentile and Conor M. Reardon.
Lake Andes Man Sentenced for Domestic Assault by an Habitual OffenderRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Lake Andes, South Dakota, man convicted of Domestic Assault by an Habitual Offender was sentenced on June 2, 2021, by U.S. District Judge Karen E. Schreier.
Ambrose Arlen Rouse, age 48, was sentenced to 35 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Rouse was indicted by a federal grand jury on August 17, 2020. He pled guilty on March 22, 2020.
The conviction stemmed from an incident on or about June 11, 2020 in Lake Andes, South Dakota. Rouse and his wife were in their residence drinking. At some point Rouse and his wife began arguing, and Rouse struck his wife in the head with her own walking cane and caused bodily injury to her. The assault was not done in self-defense, nor was it otherwise legally justified. At the time of this domestic assault, Rouse had at least two final convictions for offenses involving assaults against a spouse or intimate partner.
This case was investigated by the Federal Bureau of Investigation and the Yankton Sioux Law Enforcement. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Rouse was immediately turned over to the custody of the U.S. Marshals Service.
Kittery Man Sentenced for Transporting Child PornographyRead the Press Release
PORTLAND, Maine: A Kittery man was sentenced today in federal court in Portland for transporting images of child exploitation, Acting U.S. Attorney Donald E. Clark announced.
Chief U.S. District Judge John D. Levy sentenced Thomas Stewart, 32, to five years in prison followed by five years of supervised release. Stewart was also ordered to pay a total of $30,500 in restitution to 11 victims whose images he possessed. He pleaded guilty on October 30, 2019.
According to court records, in September 2018, Stewart uploaded numerous images of minors engaged in sexually explicit conduct to a Dropbox cloud storage account he controlled. After Dropbox reported the uploading of child exploitation images using its service, investigators determined that the IP address used to log into the Dropbox account was assigned to Stewart’s residence in Kittery.
In December 2018, investigators executed a search warrant at Stewart’s residence and seized several electronic devices, including a Samsung tablet. In an interview with investigators, Stewart admitted using the tablet to access child pornography. He also admitted storing hundreds of child pornography files in his Dropbox account.
The Maine State Police Computer Crimes Unit, the U.S. Secret Service and the Naval Criminal Investigative Service investigated this case. The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Justice Department Settles Disability Discrimination Claims Against 19 Building OwnersRead the Press Release
The Justice Department today announced that it reached a single agreement with 19 building owners* who rent space in their buildings to stores and restaurants.
The agreement requires the owners to fix their buildings so that people with mobility disabilities, like wheelchair users, can get in the door to shop or eat. Physical barriers, like steps at an entrance, can keep people with disabilities out and cause discrimination under the Americans with Disabilities Act (ADA).
The Justice Department inspected three buildings on 14th Street N.W., in Washington, D.C., to see if people with disabilities could enter the businesses renting space there. Two of the buildings had steps at the entrances and one did not have enough space at the entrance for wheelchair users to open the door and go in on their own.
The building owners agreed to hire an architect to check their 19 buildings in Washington, D.C., Maryland, and Virginia to make sure the buildings can be used by people with disabilities. The owners agreed to fix any problems by the end of next year. Possible fixes are adding a ramp where there are steps or putting in an automatic door opener when there is not enough space for wheelchair users. Fixing the buildings is an important step toward providing people with mobility disabilities an equal opportunity to shop and dine at the stores and restaurants inside.
The ADA requires stores and restaurants located in new buildings to make sure the spaces their customers use in those buildings are useable by people with disabilities, such as those who use wheelchairs. If a business is located in an older building, the business must make sure barriers to people with disabilities are removed when it is easy to do. And if a business makes changes to a building, those changed areas must be made useable as much as possible. These rules also apply to the companies that own the buildings that they rent to businesses like stores and restaurants.
“Congress passed the Americans with Disabilities Act in 1990 to stop discrimination against people with disabilities caused by the way a building is designed, built, or changed,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Today’s agreement calls attention to the obligations of building owners to ensure that the space they rent to a store or restaurant follows the rules of the ADA. We welcome the owners’ cooperation with us in today’s agreement to make their buildings more usable for people with disabilities.”
This matter was handled by the Disability Rights Section of the department’s Civil Rights Division. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
*The 19 building owners, all managed by companies that are managed by J.C. Reger Interests Inc., doing business as JCR Companies, are:
- Hillwood SRR 1324 14th Street Investors LLC
- 1526 14th Street Investors LLC
- 1529 14th Street Investors LLC
- 601 King Street Investors LLC
- 1723 Conn Ave Investors LLC
- JCR Silver Hill Investors LLC
- 1519 Wisconsin Ave, Investors LLC
- JCR Pinefield South Investors LLC
- JCR Westview Corner Investors LLC
- 1515 Unit C-3 and C-9 Investors LLC
- JCR Lorton Station Investors LLC
- JCR Rutherford Crossing Investors LLC
- JCR Signal Hill Investors LLC
- JCR 916 G Street Investors LLC
- JCR Bel Air TC Investors LLC
- JCR Woodley Investors LLC
- JCR Krispy Korner Investors LLC
- JCR Innovation Investors LLC
- JCR Riverton Investors LLC
Justice Department Seeks to Shut Down Georgia Return PreparerRead the Press Release
The United States has filed a complaint in the U.S. District Court for the Middle District of Georgia, Macon Division, seeking to bar an Irwinton, Georgia, tax return preparer from preparing tax returns for others.
The civil complaint against Shondre D. Pitts alleges that, since 2014, he has operated through a business named “First Choice Tax Services.” The complaint further alleges that Pitts has a long history of preparing fraudulent returns, including returns that claimed false itemized deductions, false income and business expense deductions, and fabricated business losses in order to fraudulently reduce the customer’s liability or claim improper tax credits. The complaint further alleges that returns prepared by Pitts falsely claimed earned income tax credits, residential energy credits, additional child tax credits, and education credits. As a result of Pitts’ conduct, the complaint alleges, his customers may face large income tax debts and may be liable for penalties and interest.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jury Convicts Woodbridge Man of Illegal Firearm PossessionRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Woodbridge man yesterday of illegally possessing a firearm after previously being convicted of a felony.
According to court records and evidence presented at trial, on March 22, 2019, Marc Allen Williams, 34, was staying at an apartment in Triangle rented by an acquaintance. Williams, who previously was convicted of a felony, had in his possession a nine-millimeter handgun. Later that afternoon, FBI agents and officers from the Prince William County Police Department executed a search warrant at the apartment in connection with a separate investigation.
When law enforcement knocked and announced their presence, Williams ran into the back bedroom of the apartment and into the bathroom. There, he stashed the firearm in the bathroom’s flush tank. Despite his efforts, law enforcement located the loaded gun.
When the defendant was arrested following the search warrant, he provided a false last name to law enforcement. The last name he provided matched the last name of the original purchaser of the firearm. Further, the FBI recovered DNA from the firearm. A sample of the defendant’s DNA, taken pursuant to a search warrant, was a match for the DNA on the firearm.
Williams faces a maximum of ten years in prison when sentenced on September 17. 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; James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division; and Peter Newsham, Chief of Prince William County Police, made the announcement after Senior U.S. District Judge Liam O’Grady accepted the verdict.
Assistant U.S. Attorneys Katherine E. Rumbaugh and Rachael C. Tucker are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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. 1:20-cr-242.
Jury Convicts Springfield Man for Attempted Child EnticementRead the Press Release
SPRINGFIELD, Ill. – A federal jury convicted a Springfield, Ill., man, Rafael Mercado Berrios, aka Jose Berrios, 42, of the 1200 block of N. 4th St., on June 4, of attempted enticement of a minor to engage in sexual activity and using the internet and cell phone to attempt to transmit information about a minor. The jury deliberated for nearly 90 minutes before returning the guilty verdicts before U.S. District Judge Sue E. Myerscough. Sentencing for Berrios is scheduled on Oct. 15, 2021.
During two and a half days of trial, beginning on June 2, the government presented evidence that in late August 2020, Berrios used a social media application to engage with an individual he believed to be a 15-year-old girl. In addition, evidence was presented that Berrios went to a Springfield residence on Aug. 28, 2020, where he believed he would be meeting a 15-year-old girl to have a sexual encounter.
Berrios has been detained in the custody of the U.S. Marshals Service since his arrest on Aug. 28, 2020. At sentencing, Berrios faces a statutory penalty of 10 years and up to life in prison.
The charges are the result of investigation by the FBI – Springfield Division with the assistance of the Sangamon County Sheriff’s Office; U.S. Immigration and Customs Enforcement Homeland Security Investigations; the Springfield Police Department; and, the Illinois State Police with the assistance of the Sangamon County State’s Attorney’s Office and the U.S. Attorney’s Office. Assistant U.S. Attorneys Tanner K. Jacobs and Gregory K. Harris represented the federal government at trial.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jamaican Man Admits Smuggling 2.8 Kilos of Cocaine into United States through Newark AirportRead the Press Release
NEWARK, N.J. – A Jamaican man today admitted that he smuggled approximately 2.8 kilograms of cocaine into the United States, Acting U.S. Attorney Rachael A. Honig announced.
Perez Omar Gibbs, 38, of Trelawny, Jamaica, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to an information charging him with one count of importation of controlled substances.
According to documents filed in this case and statements made in court:
Gibbs arrived at Newark Liberty International Airport aboard a flight from Montego Bay, Jamaica. Law enforcement officers discovered that Gibbs possessed approximately 2.8 kilograms of cocaine concealed inside two bags of coffee and four picture frames.
The count with which Gibbs is charged carries a mandatory minimum penalty of five years in prison, a potential maximum penalty of 40 years in prison and a maximum fine of $5 million. Sentencing is scheduled for Oct. 20, 2021.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, New Jersey Division, under the direction of Special Agent in Charge Jason J. Molina; and officers of U.S. Customs and Border Protection, under the direction of Marty Raybon, Acting Director of Field Operations, New York Field Office, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jonathan Fayer of the Economic Crimes Unit in Newark.
Hospital Pharmacist Sentenced for Attempt to Spoil Hundreds of COVID Vaccine DosesRead the Press Release
A Wisconsin man was sentenced today to three years in prison for tampering with COVID-19 vaccine doses at the hospital where he worked.
Steven R. Brandenburg, 46, of Grafton, pleaded guilty on Feb. 9, to two counts of attempting to tamper with consumer products with reckless disregard for the risk that another person would be placed in danger of death or bodily injury. According to court documents, Brandenburg purposefully removed a box of COVID-19 vaccine vials manufactured by Moderna — which must be stored at specific cold temperatures to remain viable — from a hospital refrigeration unit during two successive overnight shifts in late December 2020. According to his plea agreement, Brandenburg stated that he was skeptical of vaccines in general, and the Moderna vaccine specifically, and had communicated his beliefs about vaccines to his co-workers.
Brandenburg acknowledged that after leaving the vaccines out for several hours each night, he returned the vaccines to the refrigerator to be used in the hospital’s vaccine clinic the following day. Before the full extent of Brandenburg’s conduct was discovered, 57 people received doses of the vaccine from these vials.
“The purposeful attempt to spoil vaccine doses during a national public health emergency is a serious crime,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice will continue working with its law enforcement partners to safeguard these life-saving vaccines.”
“Ensuring access to safe and effective COVID-19 vaccines is critical to the well-being of everyone in our communities,” said Acting U.S. Attorney Richard G. Frohling for the Eastern District of Wisconsin. “The Department of Justice is committed to working with its federal, state, and local partners to hold individuals who seek to tamper with these vaccines fully accountable. Today’s sentence was the direct result of that shared commitment and the underlying hard work and collaborative efforts of all involved in the investigation and prosecution of Mr. Brandenburg.”
“The FDA has ensured that the Moderna COVID-19 vaccine meets the agency’s rigorous standards for safety, effectiveness, and manufacturing quality,” said Assistant Commissioner for Criminal Investigations Catherine A. Hermsen of the Food and Drug Administration (FDA). “Those who knowingly tamper with this vaccine place American patients’ health at risk. Today’s announcement should serve as a reminder that this kind of illicit tampering activity will not be tolerated.”
“The FBI, together with our local law enforcement and private sector partners, are committed to upholding laws designed to protect our health care system from harm,” said Special Agent in Charge Robert Hughes of the FBI’s Milwaukee Field Office. “By illegally tampering with these doses, Brandenburg threatened the health and safety of an entire community. Today’s sentencing sends a clear message to individuals who intentionally violate these laws that they will be vigorously prosecuted.”
In addition to the term of imprisonment, the U.S. District Judge Brett Ludwig ordered Brandenburg to serve three years of supervised release and to pay approximately $83,800 in restitution to the hospital.
This matter was investigated by the FDA’s Office of Criminal Investigations, the Milwaukee Field Office of the FBI, and the Village of Grafton Police Department.
Assistant U.S. Attorney Kevin C. Knight of the U.S. Attorney’s Office for the Eastern District of Wisconsin, and Senior Litigation Counsel Ross S. Goldstein and Trial Attorney Rachel Baron of the Civil Division’s Consumer Protection Branch prosecuted the case.
Hospital Pharmacist Sentenced for Attempt to Spoil Hundreds of COVID Vaccine DosesRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on June 8, 2021, Steven R. Brandenburg (age: 46) of Grafton, Wisconsin, was sentenced to 36 months’ imprisonment for tampering with COVID vaccine doses at the hospital at which he worked. Brandenburg will also be required to spend three years on supervised release following his prison sentence and was ordered to pay approximately $83,800 in restitution to the hospital.
Brandenburg pleaded guilty on February 9, 2021, to two counts of attempting to tamper with consumer products with reckless disregard for the risk that another person would be placed in danger of death or bodily injury.
According to court documents, Brandenburg purposefully removed a box of COVID-19 vaccine vials manufactured by Moderna—which must be stored at specific cold temperatures to remain viable—from a hospital refrigeration unit during two successive overnight shifts in late December 2020. According to his plea agreement, Brandenburg stated that he was skeptical of vaccines in general and the Moderna vaccine specifically. Court documents indicate that Brandenburg had communicated his beliefs about vaccines to his co-workers for at least the past two years.
Brandenburg acknowledged that after leaving the vaccines out for several hours each night, he returned the vaccines to the refrigerator to be used in the hospital’s vaccine clinic the following day. Before the full extent of Brandenburg’s conduct was discovered, 57 people received doses of the vaccine from these vials.
“The purposeful attempt to spoil vaccine doses during a national public health emergency is a serious crime,” said Acting Assistant Attorney General Brian Boynton of the Department of Justice’s Civil Division. “The Department of Justice will continue working with its law enforcement partners to safeguard these life-saving vaccines.”
“Ensuring access to safe and effective COVID-19 vaccines is critical to the well-being of everyone in our communities,” said Acting U.S. Attorney Frohling. “The Department of Justice is committed to working with its federal, state, and local partners to hold individuals who seek to tamper with these vaccines fully accountable. Today’s sentence was the direct result of that shared commitment and the underlying hard work and collaborative efforts of all involved in the investigation and prosecution of Mr. Brandenburg.”
“The FBI, together with our local law enforcement and private sector partners, are committed to upholding laws designed to protect our health care system from harm. By illegally tampering with these doses, Brandenburg threatened the health and safety of an entire community,” said FBI Special Agent in Charge, Robert Hughes. “Today’s sentencing sends a clear message to individuals who intentionally violate these laws that they will be vigorously prosecuted.”
The FDA has ensured that the Moderna COVID-19 vaccine meets the agency’s rigorous standards for safety, effectiveness, and manufacturing quality. Those who knowingly tamper with this vaccine place American patients’ health at risk,” said FDA Assistant Commissioner for Criminal Investigations Catherine A. Hermsen. “Today’s announcement should serve as a reminder that this kind of illicit tampering activity will not be tolerated.”
This matter was investigated by the Food and Drug Administration’s Office of Criminal Investigations, the Milwaukee Field Office of the FBI, and the Village of Grafton Police Department.
Assistant U.S. Attorney Kevin C. Knight of the U.S. Attorney’s Office for the Eastern District of Wisconsin, and Senior Litigation Counsel Ross S. Goldstein and Trial Attorney Rachel Baron of the Department of Justice Civil Division’s Consumer Protection Branch prosecuted the case.
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Harrisburg Restaurateur Charged with Fraud and Money Laundering Offenses in Connection with Misuse of Pandemic-Related LoansRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Scott Levy, age 58, of Harrisburg, Pennsylvania, was charged on June 7, 2021, in a criminal information with bank fraud, wire fraud, and money laundering in connection with federal loans he obtained on behalf of the Hershey Road Family Restaurant, a Harrisburg-area restaurant Levy owned and operated until closing the business at the end of July 2020.
According to Acting United States Attorney Bruce D. Brandler, the criminal information alleges that in Spring 2020, Levy applied on the restaurant’s behalf for $227,500 in loans that the federal government made available to support qualifying businesses during the COVID-19 pandemic. It also alleges that Levy spent the majority of those loan proceeds on personal expenditures and other non-qualifying goods and services, and transferred $125,000 of the proceeds to his mother who placed the cash in safe deposit boxes.
On November 24, 2020, Levy pled guilty to tax fraud and related offenses relating to the Hershey Road Family Restaurant. Levy admitted that he failed to pay more than $230,000 in federal income and payroll taxes from January 1, 2014 to December 31, 2018, and agreed to make full restitution of this amount. Sentencing in that case has been continued pending the resolution of the investigation into Levy’s new fraud and money laundering offenses.
Both of Levy’s cases will be consolidated for purposes of sentencing, which is expected to take place later in 2021 in front of United States District Judge Jennifer P. Wilson.
Both of the cases against Levy were investigated by Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorney Christian T. Haugsby is prosecuting the case.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Levy faces a maximum penalty on up to 90 years’ imprisonment, a fine of up to $2,610,000, and a term of supervised release of up to five years on the charges in both of his cases. Under the Federal Sentencing Guidelines, the Judge is required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offenses; 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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Four Bloods Gang Members Sentenced to Federal Prison for Assaulting 15-Year Old Boy and Carving Gang Name into Boy’s ChestRead the Press Release
FLINT - Doniel “50” Heard, 38 of Canton, Talasha “First Lady Red” Willis 31 of Flint, Kimberly “Boss Lady Red” Perryman, 34 of Mt. Morris, and Alina “Mimi Red” White, 23 of Flint were sentenced for the vicious beating of a 15-year old boy, announced Acting United States Attorney Saima S. Mohsin.
Mohsin was joined in the announcement by Special Agent in Charge Timothy Waters of the Federal Bureau of Investigation, Detroit Division (FBI), Phil Hart, Chief of Police of the Genesee Township Police Department, and David S. Leyton, Genesee County Prosecuting Attorney.
Heard, Willis, Perryman, and White previously pleaded guilty to assault with a dangerous weapon in aid of racketeering before United States District Judge Linda V. Parker. Willis also pleaded guilty to interference with commerce by robbery.
According to court documents, Heard, an admitted leader of a Michigan set of the national Bloods street gang, Perryman, Willis, and White believed the 15-year old boy had disrespected two fellow gang members. As a result, the group punched, kicked, and stomped the 15-year old boy. They then beat him with a broom stick and robbed him. After the beating, Perryman, Willis, and White held the boy down while Heard used a large knife to carve the name of the local Bloods set, “MOB 662,” into the boy’s chest. After carving MOB 662 into the boy’s chest, Heard placed video calls via his cell phone to other gang members bragging about the assault and showing them his “artwork.” The 15-year old victim suffered permanent bodily injury as a result of the assault.
Willis was sentenced by Judge Parker on May 20, 2019, to 100 months in federal prison.
The remaining defendants were sentenced today. Heard, who Judge Parker determined to be a career offender based upon this prior record, was sentenced to 240 months in federal prison. Judge Parker sentenced Perryman to 80 months in federal prison, and White to 36 months in federal prison.
“This brutal and senseless act of violence on a 15-year old boy by gang members is appalling, and it is precisely the type of crime that we are committed to rooting out,” stated Acting United States Attorney Mohsin. “We intend to bring the full force of federal law upon gang members who are harming our youth and destroying our communities.”
"The FBI is dedicated to working with all of our partners to most effectively target gang violence no matter the form it takes,' said Timothy Waters, Special Agent in Charge of the FBI in Michigan. "Our focus is on disrupting and dismantling the criminal enterprises who are increasingly emphasizing committing extremely violent criminal acts such as those conducted by the individuals sentenced in this case. Neighborhood gangs pose the biggest threat to communities across the United States. With continued effort and resources focused on mitigating that threat, law enforcement can deliver justice for crimes committed in our communities and against U.S. citizens."
The case was investigated by the Genesee Township Police Department and special agents of the FBI, with assistance from the Genesee County Prosecutor’s Office. The case was prosecuted by Assistant United States Attorneys Chris Rawsthorne, Ann Nee, and Anthony Vance.
Former Olympic Figure Skater Arrested for Role in Defrauding U.S. Small Business Administration of over $1.5 MillionRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, and William F. Sweeney, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation, announced today the unsealing of a complaint charging LUKA KLASINC, a former Olympic ice skater, with bank fraud and aggravated identity theft in connection with his use of falsified documents during his attempts to gain access to over $1.5 million in funds disbursed pursuant to fraudulent U.S. Small Business Administration (“SBA”) Economic Injury Disaster Loans. KLASINC, a Slovenian national, was arrested Monday afternoon in Manhattan, and will be presented today before Judge Kevin Nathaniel Fox.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, at a time when U.S. small businesses were struggling because of the COVID-19 pandemic, Klasinc thought he could scam his way to easy money. As alleged, Klasinc used false documents to try and obtain over a million dollars in funds intended to help hard working Americans but, thanks to the diligence of the FBI, his plans have been put on ice. He will now be held accountable for his alleged brazen lies.”
FBI Assistant Director-in-Charge William F. Sweeney, Jr., said: “Loans issued on behalf of the SBA were intended to provide relief for businesses struggling during the pandemic. Time and again we see instances of fraud and abuse of this program. We will investigate all instances of alleged SBA loan fraud and hold accountable those who take advantage of this program for personal gain.”
According to the allegations in the Complaint[1]:
KLASINC is the sole owner of a company named BOB77, LLC. KLASINC claimed that BOB77, LLC (“BOB77”) is an event management company that, in conjunction with its global partners, stages major ice-themed amusement park style events around the world. Beginning in or around 2019, BOB77 opened three business bank accounts (the “BOB77 Accounts”) with an international financial institution (“Bank-1”). Between July 2020 and September 2020, the BOB77 Accounts received a total of $1,595,800 from the SBA, pursuant to eleven Economic Injury Disaster Loans. In the same period, there were numerous wire transfers from the BOB77 Accounts to international beneficiaries. In late September 2020, after identifying potential fraud, Bank-1 froze all funds in the BOB77 Accounts and contacted KLASINC for additional information regarding the account activity. In response, KLASINC provided documentation — including a falsified document purporting to be a letter from the U.S. Small Business Administration — intended to legitimize the SBA deposits and persuade Bank-1 to release the funds. In or around June 2021, KLASINC traveled to the United States and appeared at in person at a New York branch of Bank-1, where he again attempted to persuade Bank-1 to release the funds by claiming that the SBA deposits were “investments” and not associated with a loan.
* * *
KLASINC, 48, of Slovenia, is charged with one count of bank fraud, which carries a maximum sentence of 30 years in prison, and with one count of aggravated identity theft, which carries a mandatory two-year prison term. 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 outstanding investigative work of the FBI.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Ashley C. Nicolas is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Former Chiropractor Found Guilty of Health Care Fraud Charges that She Schemed to Defraud Health Insurers Out of $2.2 MillionRead the Press Release
SANTA ANA, California – A former Orange County chiropractor was found guilty by a jury today of federal criminal charges accusing her of defrauding health insurers by fraudulently submitting and causing to be billed $2.2 million in billings for chiropractic services never provided, bogus medical diagnoses, office visits that never occurred, and medical devices falsely prescribed.
Susan H. Poon, 56, of Dana Point, was found guilty of five counts of health care fraud, three counts of making false statements relating to health care matters, and one count of aggravated identity theft in the first criminal jury trial to occur in the Central District of California since March 2020.
According to the evidence presented at her five-day trial, from January 2015 to April 2018, Poon, whose office was located in Rancho Santa Margarita, schemed to defraud Anthem and Aetna by submitting false reimbursement claims for services that never occurred, false diagnoses and chiropractic services that were never performed.
Poon also submitted fraudulent prescriptions containing fabricated medical diagnoses of individuals that she had never met, including children, causing a medical device manufacturer to submit false claims for reimbursement to Blue Shield of California.
The patient-victims that Poon claimed to have met with and treated were dependents – such as the spouses and children – of Costco Wholesale Corp. and United Parcel Service Inc. employees, dependents whose personal identification information Poon unlawfully took and used in her reimbursement requests and prescriptions. Poon obtained the personal information of employee-dependents by attending health fairs at various UPS warehouses and Costco locations, and soliciting such information from employees.
In total, Poon billed and caused to be billed approximately $2.2 million through her scheme.
Poon’s chiropractic license was revoked in July 2019, according to the California Department of Consumer Affairs.
United States District Judge David O. Carter has scheduled an August 30 sentencing hearing, at which time Poon will face a statutory maximum sentence of 67 years in federal prison.
The following agencies investigated this matter: Amtrak - Office of the Inspector General, California Department of Insurance, U.S. Department of Labor - Employee Benefits Security Administration, U.S. Department of Labor - Office of the Inspector General, the FBI, and Office of Personnel Management - Office of the Inspector General.
Assistant United States Attorneys Daniel S. Lim and Daniel H. Ahn of the Santa Ana Branch Office are prosecuting this case.
Federal Jury Convicts Brandon Man of Trafficking Fentanyl Resulting in DeathRead the Press Release
Tampa, Florida – A federal jury has found Christopher A. Defilippis (43, Brandon) guilty of distribution of fentanyl resulting in death and possession with the intent to distribute fentanyl. Due to his prior felony drug convictions, Defilippis faces a mandatory sentence of life in federal prison. His sentencing hearing is scheduled for September 8, 2021.
Defilippis had been indicted on November 17, 2020.
According to evidence presented at trial, between March and April 2020, Defilippis distributed heroin in Hillsborough County. On April 17, 2020, Defilippis distributed fentanyl, which caused a fatal overdose. Deputies with the Hillsborough County Sheriff’s Office immediately began surveillance on Defilippis and, on April 18, 2020, observed him distributing narcotics throughout Hillsborough County. Law enforcement officers arrested Defilippis and found him to be in possession of fentanyl, cocaine, and packaging consistent with distribution.
The Hillsborough County Medical Examiner’s Office conducted an autopsy and determined that the use of the fentanyl had caused the victim’s death. Lab analysis also determined that the fentanyl mixtures found near the victim were all very similar to the narcotics seized from Defilippis.
This case was investigated by the Hillsborough County Sheriff’s Office, with assistance from the Hillsborough County Medical Examiner’s Office. It is being prosecuted by Assistant United States Attorney Diego F. Novaes.
Fayetteville Man Sentenced for Possessing a Firearm as a Convicted FelonRead the Press Release
NEW BERN, N.C. – A Fayetteville man was sentenced today to 115 months in prison and three years of supervised release for unlawfully possessing a firearm. On January 19, 2021, Shawn Antonio McNeill, 34, pled guilty to possessing a firearm as a convicted felon.
On October 24, 2018, while on patrol, an officer with the Fayetteville Police Department observed a Red Nissan Altima sedan pass him with a dark window tint and smelled an odor of marijuana as the car passed him. The officer turned around, and he observed the vehicle back into the driveway of a residence located on 7008 Radnor Street in Fayetteville and observed McNeill exiting the driver’s side. McNeill then proceeded to move towards the residence. Another officer on the scene shined his flashlight through the window and observed a firearm in plain view on the driver’s side floorboard. Officers subsequently towed and executed a search warrant on the vehicle and recovered a loaded Taurus 9mm handgun, a quantity of marijuana, a quantity of crack cocaine, a digital scale, and plastic baggies. Prior to this encounter, McNeill had been convicted of numerous felony offenses, including multiple prior convictions of firearm by felon.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Fayetteville Police Department investigated the case and Assistant U.S. Attorney Chad Rhoades prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-CR-00104-FL.
FBI’s Encrypted Phone Platform Infiltrated Hundreds of Criminal Syndicates; Result is Massive Worldwide TakedownRead the Press Release
For Further Information, Contact:
Media Relations Director Kelly Thornton (619) 546-9726
SAN DIEGO – A wave of hundreds of arrests that began in Australia and stretched across Europe culminated today with the unsealing of a federal grand jury indictment in San Diego charging 17 foreign nationals with distributing thousands of encrypted communication devices to criminal syndicates.
The 500-plus arrests that took place during a worldwide two-day takedown were possible because of a San Diego-based investigation like no other. For the first time, the FBI operated its own encrypted device company, called “ANOM,” which was promoted by criminal groups worldwide. These criminals sold more than 12,000 ANOM encrypted devices and services to more than 300 criminal syndicates operating in more than 100 countries, including Italian organized crime, Outlaw Motorcycle Gangs, and various international drug trafficking organizations, according to court records.
SEARCH WARRANT - Operation Trojan Shield
INDICTMENT - Operation Trojan Shield
During the course of the investigation, while ANOM’s criminal users unknowingly promoted and communicated on a system operated lawfully by the FBI, agents catalogued more than 27 million messages between users around the world who had their criminal discussions reviewed, recorded, and translated by the FBI, until the platform was taken down yesterday.
The users, believing their ANOM devices were protected from law enforcement by the shield of impenetrable encryption, openly discussed narcotics concealment methods, shipments of narcotics, money laundering, and in some groups—violent threats, the indictment said. Some users negotiated drug deals via these encrypted messages and sent pictures of drugs, in one instance hundreds of kilograms of cocaine concealed in shipments of pineapples and bananas, and in another instance, in cans of tuna, in order to evade law enforcement.
The indictment charges 17 alleged distributors of the FBI’s devices and platform. They are charged with conspiring to violate the Racketeer Influenced and Corrupt Organizations Act (RICO), pertaining to their alleged involvement in marketing and distributing thousands of encrypted communication devices to transnational criminal organizations worldwide.
During the last 24 to 48 hours, in addition to the more than 500 arrests around the world, authorities searched more than 700 locations deploying more than 9,000 law enforcement officers worldwide and seized multi-ton quantities of illicit drugs.
CLICK HERE - Video Messages from International Partners
Grand totals for the entire investigation include 800 arrests; and seizures of more than 8 tons of cocaine; 22 tons of marijuana; 2 tons of methamphetamine/amphetamine; six tons of precursor chemicals; 250 firearms; and more than $48 million in various worldwide currencies. Dozens of public corruption cases have been initiated over the course of the investigation. And, during the course of the investigation, more than 50 clandestine drug labs have been dismantled. One of the labs hit yesterday was one of the largest clandestine labs in German history.
“This was an unprecedented operation in terms of its massive scale, innovative strategy and technological and investigative achievement,” said Acting U.S. Attorney Randy Grossman. “Hardened encrypted devices usually provide an impenetrable shield against law enforcement surveillance and detection. The supreme irony here is that the very devices that these criminals were using to hide from law enforcement were actually beacons for law enforcement. We aim to shatter any confidence in the hardened encrypted device industry with our indictment and announcement that this platform was run by the FBI.”
“Today marks the culmination of more than five years of innovative and complex investigative work strategically aimed to disrupt the encrypted communications space that caters to the criminal element,” said Suzanne Turner, Special Agent in Charge of the Federal Bureau of Investigation (FBI) - San Diego Field Office. “The FBI has brought together a network of dedicated international law enforcement partners who are steadfast in combating the global threat of organized crime. The immense and unprecedented success of Operation Trojan Shield should be a warning to international criminal organizations – your criminal communications may not be secure; and you can count on law enforcement worldwide working together to combat dangerous crime that crosses international borders.”
“Operation Trojan Shield is a perfect example of an OCDETF case - an investigation driven by intelligence and maximizing the strengths of partner law enforcement agencies in coordinated efforts to dismantle command and control elements of criminal networks,” said OCDETF Director Adam W. Cohen. “Coordination is the cornerstone of the OCDETF program, and the impressiveness of the combined efforts of the U.S. Attorney’s Office, FBI, and our foreign partners cannot be overstated. This effort has created lasting disruptive impacts to these transnational criminal organizations.”
“The AFP and FBI have been working together on a world-first operation to bring to justice the organised crime gangs flooding our communities with drugs, guns and violence,” said AFP Commissioner Reece Kershaw APM. “The FBI provided an encrypted communications platform while the AFP deployed the technical capability which helped unmask some of the biggest criminals in the world. This week the AFP and our state police partners will execute hundreds of warrants and we expect to arrest hundreds of offenders linked to the platform. This is the culmination of hard work, perseverance and an invaluable, trusted relationship with the FBI.
We thank the FBI for their long and integral partnership with the AFP.”
Europol’s Deputy Executive Director Jean-Philippe Lecouffe: “This operation is an exceptional success by the authorities in the United States, Sweden, the Netherlands, Australia, New Zealand and the other European members of the Operational Task Force. Europol coordinated the international law enforcement community, enriched the information picture and brought criminal intelligence into ongoing operations to target organised crime and drug trafficking organisations, wherever they are and however they choose to communicate. I am very satisfied to see Europol supporting this operation and strengthen law enforcement partnerships by emphasizing the multi-agency aspect of the case.”
“I am exceptionally proud of our New Zealand Police staff who supported Operation Trojan Shield,” said New Zealand Police Commissioner Andrew Coster. “This operation will have an unprecedented impact on organised crime syndicates across the globe. We value our strong relationship with the FBI, AFP and Europol and it is through these partnerships and the unrelenting efforts by law enforcement agencies from multiple countries that this operation has seen such incredible success This is a fantastic result and reiterates the importance of our transnational partnerships with law enforcement agencies across the globe in our common ongoing efforts to dismantle organised crime groups and the enormous harm they cause to our communities.”
“This remarkably successful operation demonstrates what can be accomplished when law enforcement agencies throughout the world work together,” said DEA Los Angeles Division Special Agent in Charge Bill Bodner. “Through strong relationships with our partners in more than 67 countries, professionals throughout the DEA, including experts in the Los Angeles Division, supported this unprecedented collaboration and our own mission to disrupt and dismantle the criminal organizations that profit from the distribution of illegal drugs.”
According to the San Diego indictment, ANOM’s administrators, distributors, and agents described the platform to potential users as “designed by criminals for criminals” and targeted the sale of ANOM to individuals that they knew participated in illegal activities.
All defendants are foreign nationals located outside of the U.S. In total, eight of the indicted defendants were taken into custody last night. Authorities are continuing to search for the remaining nine defendants.
The indictment alleges the defendants knew the devices they distributed were being used exclusively by criminals to coordinate drug trafficking and money laundering, including in the U.S. The defendants personally fielded “wipe requests” from users when devices fell into the hands of law enforcement.
The FBI’s review of ANOM users’ communications worked like a blind carbon copy function in an email. A copy of every message being sent from each device was sent to a server in a third-party country where the messages were collected and stored. The data was then provided to the FBI on a regular basis pursuant to an international cooperation agreement. Communications such as text messages, photos, audio messages, and other digital information were reviewed by the FBI for criminal activity and disseminated to partner law enforcement agencies in other countries. Each user was using ANOM for a criminal purpose. Those countries have built their own cases against ANOM users, many of whom were arrested in takedowns in Europe, Australia and New Zealand over the last several days.Intelligence derived from the FBI’s communications platform presented opportunities to disrupt major drug trafficking, money laundering, and other criminal activity while the platform was active. For example, over 150 unique threats to human life were mitigated.
This operation was led by the FBI and coordinated with the U.S. Drug Enforcement Administration, the U.S. Marshals Service, Australian Federal Police, Swedish Police Authority, National Police of the Netherlands, Lithuanian Criminal Police Bureau, Europol, and numerous other law enforcement partners from over a dozen other countries.
This investigation began after Canada-based encrypted device company Phantom Secure was dismantled by the FBI in 2018 through a San Diego-based federal RICO indictment and court-authorized seizure of the Phantom Secure platform, forcing many criminals to seek other secret communication methods to avoid law enforcement detection. The FBI—along with substantial contributions by the Australian Federal Police—filled that void with ANOM.
When the FBI and the San Diego U.S. Attorney’s Office dismantled Sky Global in March 2021, the demand for ANOM devices grew exponentially as criminal users sought a new brand of hardened encryption device to plot their drug trafficking and money laundering transactions and to evade law enforcement. Demand for ANOM from criminal groups also increased after European investigators announced the dismantlement of the EncroChat platform in July 2020. The ANOM platform - unlike Phantom Secure, EncroChat, and Sky Global - was exploited by the FBI from the very beginning of ANOM’s existence and was not an infiltration of an existing popular encrypted communications company.
In October 2018, Phantom Secure’s CEO pleaded guilty to a RICO conspiracy in the Southern District of California. He was sentenced to nine years in prison and ordered to forfeit $80 million in proceeds from the sale of Phantom devices.
For further information, please see https://www.justice.gov/usao-sdca/pr/chief-executive-communications-company-sentenced-prison-providing-encryption-services and https://www.justice.gov/usao-sdca/pr/sky-global-executive-and-associate-indicted-providing-encrypted-communication-devices.
Operation Trojan Shield is an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Assistant U.S. Attorneys Meghan E. Heesch, Joshua C. Mellor, Shauna Prewitt, and Mikaela Weber of the U.S. Attorney’s Office for the Southern District of California are prosecuting the case, with assistance from Paralegal Specialist Tracie Jarvis. Former Assistant U.S. Attorney Andrew P. Young made invaluable contributions during his tenure on the case team.
Acting U.S. Attorney Grossman praised federal prosecutors and FBI agents and international law enforcement partners for their relentless pursuit of justice in this extraordinary case. Additionally, Acting U.S. Attorney Grossman thanked the coordinated efforts of the Department of Justice’s Office of International Affairs which facilitated many international components of this complex investigation.
The charges and allegations contained in an indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
DEFENDANTS 21-CR-1623-JLS COUNTRY *Joseph Hakan Ayik (1) Domenico Catanzariti (2) Australia *Maximilian Rivkin (3) Abdelhakim Aharchaou (4) The Netherlands *Seyyed Hossein Hosseini (5) Alexander Dmitrienko (6) Spain *Baris Tukel (7) *Erkan Yusef Dogan (8) *Shane Geoffrey May (9) Aurangzeb Ayub (10) The Netherlands James Thomas Flood (11) Spain *Srdjan Todorovic aka Dr. Djek (12) *Shane Ngakuru (13) Edwin Harmendra Kumar (14) Australia Omar Malik (15) The Netherlands Miwand Zakhimi (16) The Netherlands *Osemah Elhassen (17) *FugitiveSUMMARY OF CHARGES
Conspiracy to Conduct Enterprise Affairs Through Pattern of Racketeering Activity (RICO Conspiracy), in violation of 18 U.S.C. § 1962(d)
Maximum Penalty: Twenty years in prion
AGENCIES
Federal Bureau of Investigation
Drug Enforcement Administration
United States Marshals Service
Department of Justice, Office of International Affairs
Australian Federal Police
Swedish Police Authority
Lithuanian Criminal Police Bureau
National Police of the Netherlands
EUROPOL
For further information, please see
https://www.europol.europa.eu/newsroom/news/800-criminals-arrested-in-biggest-ever-law-enforcement-operation-against-encrypted-communication
https://www.afp.gov.au/news-media/media-releases/afp-led-operation-ironside-smashes-organised-crime
Erie Man Indicted on Fentanyl ChargeRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania has been indicted by a federal grand jury in Erie on a charge of violating federal drug laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Dondiago Dan Collins, 24, Erie, Pennsylvania, as the sole defendant.
According to the Indictment presented to the court, on or about April 6, 2021, Collins attempted to possess with intent to distribute more than forty grams of a mixture and substance containing a detectable amount of fentanyl.
The law provides for a maximum total of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, Pennsylvania State Police Northwest Strike Force, United States Postal Inspection Service, Federal Bureau of Investigations, United States Postal Service Office of Inspector General, and the City of Erie Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Easton Man Admits Producing Images of Child Sex AbuseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that ROBERT McGUIRE, 41, of Easton, pleaded guilty today before U.S. District Judge Robert N. Chatigny to production of child pornography.
According to court documents and statements made in court, between February 2019 and June 2020, McGuire repeatedly sexually abused a minor victim and took photographs and videos of the sexual assaults.
Judge Chatigny scheduled sentencing for October 14, 2021, at which time McGuire faces a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years.
McGuire has been detained since his arrest by the Easton Police Department on related state charges on July 10, 2020.
This matter has been investigated by the Federal Bureau of Investigation and the Easton Police Department. The case is being prosecuted by Assistant U.S. Attorneys Konstantin Lantsman and Sarala V. Nagala.
Acting U.S. Attorney Boyle thanked the State’s Attorney’s Office for the Judicial District of Fairfield for its close cooperation in investigating and prosecuting this matter.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Drug Trafficking and DogFighting RingLeader Sentenced to Thirty Years in PrisonRead the Press Release
TALLAHASSEE, FLORIDA – Jermaine Hadley, 32, of Quincy, Florida was sentenced to 30 years in federal prison on Friday, June 4, 2021. Hadley headed a drug trafficking organization affiliated with a violent gang in the Gadsden County, Florida area that was responsible for the distribution of over 50 kilograms of methamphetamine, over 15 kilograms cocaine, MDMA, possession of illegal firearms, in addition to facilitating a largescale dogfighting ring throughout the north-central Florida Panhandle between 2018 and 2019. The sentencing was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
A total of 21 defendants were arrested and have been sentenced or are awaiting sentencing from the long-term investigation into drug trafficking and dogfighting, to include:
- Dennis Lamar Howard, 47, of Chattahoochee, Florida; Sentenced to credit for time served, with 2 years of supervised release, 6 months of which will be served on home detention with location monitoring.
- Eddie Lee Hughes, 54, of Chattahoochee, Florida; Sentenced to credit for time served, with 3 years of supervised release.
- Leonard Safford, 39, of Gretna, Florida; Sentenced to 48 months in federal prison
- Patrick Lee Baker, 45, of Chattahoochee, Florida; Sentencing set for 6/24/2021
- Sariem Shanquell McMillian, 25, of Quincy, Florida; Sentencing set for 6/24/2021
- Bob Streets, 37, of Quincy, Florida; Sentencing set for 6/24/2021
- Jeremy Williams, 30, of Greenwood, Florida; Sentencing set for 6/25/2021
- Linda Lockwood, 50, of Chattahoochee, Florida; Sentencing set for 6/25/2021
- Zanntayfey Yohoun Bennett, 37, of Quincy, Florida; Sentencing set for 7/7/2021
- Samantha Eugenia Yelle, 32, of Marianna, Florida; Sentencing set for 7/7/2021
- Devar San Jacus Donaldson, 29, of Quincy, Florida; Sentencing set for 7/8/2021
- Tiffany Jean Hughes, 31, of Marianna, Florida; Sentencing set for 7/8/2021
- Jamaron Juanata Paden, Sr., 31, of Marianna, Florida; Sentencing set for 7/9/2021
- Tanya Henry, 43, of Marianna, Florida; Sentencing set for 7/9/2021
- Charles Randolph Corbin, 47, of Blountstown, Florida; Sentencing set for 7/21/2021
- Justin Cribley, 38, of Chattahoochee, Florida; Sentencing set for 7/21/2021
- Ja'Rod Lamar Bryant, 33, of Chattahoochee, Florida; Sentencing set for 7/22/2021
- DeCarlise Roidel Chapman, 47, of Marianna, Florida; Sentencing set for 7/22/2021
- Savanna Price, 21, of Marianna, Florida; Sentencing set for 7/23/2021
- Jequentavious Trayshon Owens, 26, of Chattahoochee, Florida; Sentencing set for 7/23/2021
Hadley led a drug trafficking organization supplied by multiple sources in Georgia, Louisiana, and Texas, from which he and his associates distributed narcotics throughout the Northern District of Florida. His narcotics distribution network involved members of the Gadsden County, Florida “424” criminal street gang. In addition, Hadley and his associates coordinated and conducted numerous dogfighting matches where the animals were often made to fight to the death, as participants paid to watch and gambled on the outcomes. The investigation resulted in the seizure of multi-kilograms quantities of methamphetamine, cocaine, MDMA, marijuana, numerous firearms, large sums of U.S. currency, as well as the rescue and rehabilitation of over 100 fighting dogs. Several parcels of real property in the Gadsden County area used to facilitate the criminal activities of the organization were seized and are being criminally forfeited.
“As a result of the incredible work of our law enforcement partners, this criminal has been held to account for the violence, armed drug trafficking, and horrific acts of animal cruelty he orchestrated,” stated Acting U.S. Attorney Coody. “The abuse of animals for profit is both inhumane and illegal and will be vigorously prosecuted by this office.”
“Jermaine Hadley can no longer distribute dangerous drugs nor harm innocent animals,” said DEA Miami Field Division Acting Special Agent in Charge La Verne Hibbert. “As a result of the strong multi-agency law enforcement collaboration in this case, Panhandle communities are less afflicted by the scourge of his drug distribution and gang related criminal activities.”
USDA-OIG Acting Special Agent-in-Charge Salina Walker stated, "The United States Department of Agriculture, Office of Inspector General-Investigations, actively investigates allegations of animal abuse. This agency has made animal fighting a high priority in order to demonstrate that these blatant acts of cruelty to animals will no longer be tolerated. We want to thank the outstanding work of our federal, state, and local law enforcement partners who investigated this case and the prosecutors of the U.S. Attorney's Office for aggressively prosecuting perpetrators of animal fighting."
“These investigations highlight the importance of law enforcement partnerships across the spectrum of local and federal government,” said HSI Tampa Assistant Special Agent in Charge Micah McCombs. “Our communities can rest easier knowing this criminal is behind bars for his illegal activities with narcotics and animal fighting ventures.”
“Reducing violent crime involving firearms and ammunition are at the forefront ATF’s mission”, said ATF Special Agent in Charge Craig W. Saier, “The collaboration of law enforcement at every level in this case is an example of the positive impact partnerships can make particularly when such heinous crimes have occurred”.
“The Gadsden County Sheriff’s Office appreciates the teamwork from all agencies. We are intolerable of offenses especially this kind,” stated Sheriff Morris Young.
This investigation and prosecution was the result of the collaborative effort of numerous federal, state, and local agencies, including the Drug Enforcement Administration, the U.S. Department of Agriculture Office of Inspector General, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the Gadsden County Sheriff’s Office, the Jackson County Sheriff’s Office, the Florida Highway Patrol, the Chattahoochee Police Department, the Tallahassee Police Department, the Leon County Sheriff’s Office, the Calhoun County Sheriff’s Office, the Florida Department of Law Enforcement, and the Florida Air National Guard Counterdrug Program. The case was prosecuted by Assistant United States Attorney Eric Mountin.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Dothan Man Sentenced to Five Years in Prison for Being A Felon in Possession of A FirearmRead the Press Release
Montgomery, Alabama – On Thursday, June 3, 2021, Trajazman L. Farmer, a 31-year-old man from Dothan, Alabama, was sentenced to 60 months in prison for being a felon in possession of a firearm. In addition to his prison sentence, Farmer was ordered to serve three years of supervised release. There is no parole in the federal system.
According to court records, on July 11, 2019, the Dothan Police Department executed a search warrant at Farmer’s residence after receiving information from two of his children that he was selling drugs out of the home. During the search, officers discovered a .44 Special caliber revolver, a 9mm semiautomatic rifle, an Anderson Manufacturing, model AM-15, MULTI caliber semiautomatic rifle, and a 7.62x39 caliber semiautomatic rifle. Farmer has previous felony convictions and is prohibited from possessing firearms. During the sentencing hearing, it was revealed that the AM-15 was a stolen weapon.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Dothan Police Department investigated this case. Assistant United States Attorney Megan Kirkpatrick prosecuted the case.
Department of Justice Seizes $2.3 Million in Cryptocurrency Paid to the Ransomware Extortionists DarksideRead the Press Release
SAN FRANCISCO - The Department of Justice today announced that it has seized 63.7 bitcoins currently valued at over $2.3 million. These funds allegedly represent a significant portion of the proceeds of a May 8 ransom payment to individuals in a group known as DarkSide, which had targeted Colonial Pipeline resulting in critical infrastructure being taken out of operation. The seizure warrant was authorized earlier today by U.S. Magistrate Judge Laurel Beeler.
“Following the money remains one of the most basic, yet powerful tools we have,” said Deputy Attorney General Lisa O. Monaco for the U.S. Department of Justice. “Ransom payments are the fuel that propels the digital extortion engine, and today’s announcement demonstrates that the United States will use all available tools to make these attacks more costly and less profitable for criminal enterprises. We will continue to target the entire ransomware ecosystem to disrupt and deter these attacks. Today’s announcements also demonstrate the value of early notification to law enforcement; we thank Colonial Pipeline for quickly notifying the FBI when they learned that they were targeted by DarkSide.”
“There is no place beyond the reach of the FBI to conceal illicit funds that will prevent us from imposing risk and consequences upon malicious cyber actors,” said FBI Deputy Director Paul Abbate. “We will continue to use all of our available resources and leverage our domestic and international partnerships to disrupt ransomware attacks and protect our private sector partners and the American public.”
“Cyber criminals are employing ever more elaborate schemes to convert technology into tools of digital extortion,” said Acting U.S. Attorney for the Northern District of California Stephanie Hinds. “We need to continue improving the cyber resiliency of our critical infrastructure across the nation, including in the Northern District of California. We will also continue developing advanced methods to improve our ability to track and recover digital ransom payments.”
"Despite the extraordinary lengths the criminals took to cover the digital tracks of their ill-gotten gains, FBI San Francisco's investigative team was relentless and used all technical means to make this seizure," said FBI Special Agent in Charge Craig D. Fair. "Hackers and other cybercriminals simply cannot rely on cryptocurrency to evade the reaches of law enforcement."
On or about May 7, Colonial Pipeline was the victim of a highly publicized ransomware attack resulting in the company taking portions of its infrastructure out of operation. Colonial Pipeline reported to the FBI that its computer network was, among other things, accessed by an organization named DarkSide and that it had received and paid a ransom demand for approximately 75 bitcoins.
As alleged in the supporting affidavit, by reviewing the Bitcoin public ledger, law enforcement was able to track multiple transfers of bitcoin and identify that approximately 63.7 bitcoins, representing the proceeds of the victim’s ransom payment, had been transferred to a specific address, for which the FBI has the “private key,” or the rough equivalent of a password needed to access assets accessible from the specific Bitcoin address. This bitcoin represents proceeds traceable to a computer intrusion and property involved in money laundering and may be seized pursuant to criminal and civil forfeiture statutes.
The Special Prosecutions Section and Asset Forfeiture Unit of the U.S. Attorney’s Office for the Northern District of California is handling the seizure, with significant assistance from the Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section and Computer Crime and Intellectual Property Section, and the National Security Division’s Counterintelligence and Export Control Section. The Department components who worked on this seizure coordinated their efforts through the Department’s Ransomware and Digital Extortion Task Force, which was created to combat the growing number of ransomware and digital extortion attacks.
The Task Force prioritizes the disruption, investigation, and prosecution of ransomware and digital extortion activity by tracking and dismantling the development and deployment of malware, identifying the cybercriminals responsible, and holding those individuals accountable for their crimes. The Task Force also strategically targets the ransomware criminal ecosystem as a whole and collaborates with domestic and foreign government agencies as well as private sector partners to combat this significant criminal threat.
Defendant on federal supervised release pleads guilty to drug crimeRead the Press Release
DAYTON, Ohio – A Dayton man on supervised release from a prior federal case pleaded guilty in U.S. District Court today to dealing methamphetamine near Austin Landing in Miamisburg.
Terry Scott Jones, 41, pleaded guilty to one count of possessing with intent to distribute 50 grams or more of methamphetamine.
In March 2021, officers with the City of Moraine executed a search warrant in Jones’ hotel room at the Home2Suites at Austin Landing. Detectives discovered more than 89 grams of methamphetamine and a loaded firearm.
Just one year prior, in March 2020, Jones was sentenced to 12 months in federal prison for aiding and abetting the theft of firearms from a Federal Firearms Licensee.
Jones faces a mandatory minimum of 10 years and up to life in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Roland Herndon, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and Moraine Police Chief Craig Richardson announced the plea entered into today before U.S. District Judge Walter H. Rice. Assistant United States Attorney Ryan A. Saunders is representing the United States in this case.
This case is being prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Crownsville Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Greenbelt, Maryland – Jared Johnson, age 36, of Crownsville, Maryland, pleaded guilty today to possession of child pornography.
The plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Anne Colt Leitess of the Anne Arundel County State’s Attorney’s Office; and Anne Arundel Police Chief Amal Awad.
According to his guilty plea, from Mary 2020 to August 2020, an internet cloud storage service provider sent the National Center of Missing and Exploited Children five cybertipline reports detailing hundreds of child pornography images uploaded to an account within its internet platform. The account was associated with Johnson’s cellular number and IP address located at Johnson’s Crownsville, Maryland residence.
Over the course of five reports, the internet storage provider reported over 2,500 images of child pornography uploaded to Johnson’s account.
During a search of Johnson’s residence on July 24, 2020, Anne Arundel County detectives recovered Johnson’s cell phone and computer. The devices were hidden in the basement, submerged underwater within the basement’s sump pump system. A forensic analysis of the computer revealed that Johnson possessed over 12,000 images and videos of child pornography on the computer system.
After examination of Johnson’s online cloud account, Anne Arundel County Police detectives discovered thousands of images and videos containing child pornographic material, including a 38-minute video compilation depicting prepubescent children engaged in sexually explicit conduct.
U.S. District Judge Stephanie A. Gallagher has not scheduled a sentencing hearing at this time.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended the HSI, Anne Arundel State’s Attorney’s Office, and the Anne Arundel Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Christine Duey who is prosecuting the federal case.
Clinical Researchers Plead Guilty in Connection with Scheme to Falsify Drug Trial DataRead the Press Release
A Florida nurse practitioner and a Florida woman pleaded guilty today to their participation in a conspiracy to falsify clinical trial data.
According to court documents, Eduardo Navarro, 52, of Miami, and Nayade Varona, 50, of Port St. Lucie, worked at a clinical research site called Tellus Clinical Research. Navarro was a sub-investigator, and Varona was an assistant study coordinator. As part of their plea agreements, Navarro and Varona admitted that they agreed with one another and others to falsify data in medical records in connection with two clinical trials intended to evaluate a treatment for irritable bowel syndrome. Among other things, Navarro and Varona falsified data to make it appear as though subjects were participating in the trials when, in truth, they were not.
“The falsification of clinical trial data puts the health and safety of the public at risk,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Justice Department will continue to work with its partners at the Food and Drug Administration to investigate and prosecute anyone who engages in this conduct.”
“Public health and safety must always take precedence over profit when new pharmaceutical drugs are being tested,” said Acting U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “Medical researchers needlessly endanger the public by manipulating clinical data and falsifying records. Such conduct is illegal and will be prosecuted.”
“FDA’s evaluation of a new drug begins with an analysis of reliable and accurate data from clinical trials,” said Assistant Commissioner for Criminal Investigations Catherine A. Hermsen of the Food and Drug Administration's (FDA) Office of Criminal Investigations. “Compromised clinical trial data could impact the agency’s decisions about the safety and effectiveness of the drug under review. We will continue to investigate and bring to justice those whose actions may subvert the FDA approval process and endanger the public health.”
Navarro and Varona both pleaded guilty before U.S. District Judge Jose E. Martinez of the Southern District of Florida to conspiracy to defraud the United States and to commit an offense against the United States. Both face a maximum penalty of five years in prison and are scheduled to be sentenced on Aug. 11. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FDA's Office of Criminal Investigations is investigating the case.
Trial Attorneys Lauren M. Elfner and Joshua D. Rothman of the Civil Division's Consumer Protection Branch are prosecuting the case. The U.S. Attorney’s Office for the Southern District of Florida provided critical assistance.
Chicago Man Sentenced to 30 Years in Prison for Kidnapping and Assaulting Women He Met OnlineRead the Press Release
CHICAGO — A Chicago man was sentenced today to 30 years in federal prison for kidnapping and assaulting three women he met online.
KEITH DEWITT DAVIS, 31, assaulted the women in vacant buildings in Calumet City, Ill., in the summer of 2016. Davis met the women online and used a pretext of engaging in consensual, commercial sex acts to lure them to the vacant buildings. Once there, he physically assaulted each of the women and raped two of them. Davis displayed a handgun and pointed it at one of the victims, and he displayed a wrench or pipe in the two other incidents.
Davis pleaded guilty in 2019 to three counts of kidnapping for sexual gratification. U.S. District Judge Harry D. Leinenweber imposed the sentence after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The case was investigated by the FBI and the Will County Safe Streets Task Force. Substantial assistance was provided by the Calumet City Police Department, Hazel Crest Police Department, Midlothian Police Department, South Bend, Ind., Police Department, and the St. Joseph County, Ind., Prosecutor’s Office.
“Defendant’s crime was vicious,” Assistant U.S. Attorney Abigail L. Peluso argued in the government’s sentencing memorandum. “Defendant showed a complete disregard for human life and respect for a person’s dignity.”
Chicago Man Sentenced to 30 Years in Prison for Kidnapping and Assaulting Women He Met OnlineRead the Press Release
CHICAGO — A Chicago man was sentenced today to 30 years in federal prison for kidnapping and assaulting three women he met online.
KEITH DEWITT DAVIS, 31, assaulted the women in vacant buildings in Calumet City, Ill., in the summer of 2016. Davis met the women online and used a pretext of engaging in consensual, commercial sex acts to lure them to the vacant buildings. Once there, he physically assaulted each of the women and raped two of them. Davis displayed a handgun and pointed it at one of the victims, and he displayed a wrench or pipe in the two other incidents.
Davis pleaded guilty in 2019 to three counts of kidnapping for sexual gratification. U.S. District Judge Harry D. Leinenweber imposed the sentence after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The case was investigated by the FBI and the Will County Safe Streets Task Force. Substantial assistance was provided by the Calumet City Police Department, Hazel Crest Police Department, Midlothian Police Department, South Bend, Ind., Police Department, and the St. Joseph County, Ind., Prosecutor’s Office.
“Defendant’s crime was vicious,” Assistant U.S. Attorney Abigail L. Peluso argued in the government’s sentencing memorandum. “Defendant showed a complete disregard for human life and respect for a person’s dignity.”
CEO of Reality TV Production Companies Agrees to Plead Guilty to Defrauding Private Lender out of $2 MillionRead the Press Release
LOS ANGELES – The CEO of two Hollywood production companies that specialize in reality television programming has agreed to plead guilty to wire fraud for obtaining a $2 million business loan using fabricated documents and by misrepresenting his companies’ financial circumstances.
Jonathan Lee Smith, 40, of West Hollywood, was charged in an information with wire fraud. In a plea agreement also filed today, Smith agreed to plead guilty to the felony offense, which carries a statutory maximum penalty of 20 years in federal prison.
According to the plea agreement, Smith managed and owned two production companies, Hoplite Entertainment, Inc. and Hoplite, Inc. To convince a private lender to fund a $2 million loan last year, Smith falsely represented that his two companies had accounts receivable of $3,348,000, and he submitted falsified license agreements and other forgeries to back up the claim.
To convince the private lender to give him additional time to repay the loan, court documents state, Smith falsely represented that payment was imminent. He also emailed a fake record showing a $100,000 wire payment from Hoplite, Inc. to the lender. In reality, the loan was never repaid, and Smith has agreed to pay $2 million in restitution.
Smith is expected to make his initial appearance in this case in United States District Court on July 6.
The FBI investigated this matter.
Assistant United States Attorney Alexander B. Schwab of the Major Frauds Section is prosecuting the case.
California Man Pleads Guilty to Fraudulenty Obtaining over $170,000 in Unemployment BenefitsRead the Press Release
LAS VEGAS, Nev. – A California man pleaded guilty today to fraudulently obtaining over $170,000 in unemployment benefits by submitting multiple unemployment claims in other people’s names and using benefits debit cards not belonging to him.
According to court documents and admissions made in court, on September 11, 2020, Keheir Jordan Parker (25, of Victorville, Calif.) and co-conspirator Robert Devon Barber (25, of Lawrenceville, Georgia) were stopped in Las Vegas for a traffic violation. During the traffic stop, law enforcement officers recovered 12 California Employment Development Department (EDD) unemployment insurance benefits debit cards issued in other peoples’ names, along with ATM receipts showing that the debit cards had been used to make cash withdrawals totaling $7,400 in Nevada and California.
At least $249,460 in unemployment benefits was approved for claims associated with the 12 recovered EDD cards. Approximately $170,715.78 was obtained from accounts associated with those 12 cards, including $148,400 in ATM cash withdrawals and $22,315.78 in purchases.
Parker pleaded guilty to one count of conspiracy to effectuate illegal transaction with an access device. He faces a statutory maximum penalty of seven and a half years in prison and a $250,000 fine. U.S. District Judge Jennifer A. Dorsey scheduled sentencing for September 13, 2021.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent-in-Charge Quentin Heiden of the U.S. Department of Labor Office of Inspector General (DOL-OIG), Los Angeles Region made the announcement.
This case was investigated by DOL-OIG. Assistant U.S. Attorney Jim Fang is prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 should please report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For information about COVID-19 fraud, visit the Department of Justice’s website at https://www.justice.gov/coronavirus.
Buffalo Man Going to Prison on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051Buffalo, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Felix M. Velazquez, 44, of Buffalo, NY, who was convicted of possessing with intent to distribute cocaine and possessing a firearm in furtherance of drug trafficking, was sentenced to serve 96 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Seth T. Molisani, who handled the case, stated that in June 2018, the Lackawanna Police Department Narcotics Unit began investigating the narcotics trafficking activities of the defendant, a mid-level street cocaine distributor who had a large customer base in the Buffalo area. Velazquez conducted his distribution activities through his cellular phone, and at his apartment on Weyand Avenue in Buffalo.
On August 14, 2018, the Buffalo Police Department executed a New York State search warrant at the defendant’s Weyand Avenue residence. Officers recovered approximately 130 grams of cocaine; a digital scale; drug packaging materials; a .380 semi-automatic pistol, loaded with seven rounds; and $42,955.00 cash.
The sentencing is the result of an investigation by the Lackawanna Police Department, under the direction of Chief Mark Packard; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
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