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Wednesday 12 May 2021
Maryland Woman Sentenced to Prison for Defrauding Medicaid Program Out of Hundreds of Thousands of DollarsRead the Press Release
WASHINGTON – Folashade Adufe Horne, 52, of Laurel, Maryland, was sentenced today to 13 months in prison for defrauding the D.C. Medicaid program out of more than $370,000.
The announcement was made by Acting U.S. Attorney Channing D. Phillips; James A. Dawson, Special Agent in Charge, FBI Washington Field Office, Criminal Division; Maureen R. Dixon, Special Agent in Charge of the U.S. Department of Health and Human Services’ Office of Inspector General for the region that includes Washington, D.C.; and Daniel W. Lucas, Inspector General for the District of Columbia.
In February, Horne pled guilty to health care fraud in the United States District Court for the District of Columbia. The Honorable Reggie B. Walton, who presided over her plea hearing, imposed the 13-month sentence. Judge Walton also ordered Horne to pay $373,564 in restitution and a $267,567 forfeiture money judgment.
At various times between January 2014 and June 2020, Horne was employed by four different home health agencies to serve as a personal care aide for D.C. Medicaid beneficiaries. Horne also was employed full-time by Howard University Hospital during this same period. The home health agencies employed Horne to assist Medicaid beneficiaries in performing activities of daily living, such as getting in and out of bed, bathing, dressing, and eating. Horne was supposed to document the care she provided to the Medicaid beneficiaries on timesheets and then submit the timesheets to the home health agencies, which would in turn bill Medicaid for the services that she rendered.
Horne acknowledged that between January 2014 and June 2020, she caused the D.C. Medicaid Program to issue payments totaling $373,564 for services that she did not render. As part of her fraud scheme, she submitted false timesheets to different home health agencies purporting that she provided personal care aide services that she did not provide. She claimed she provided such services during times when she actually was working her shift as a full-time employee at Howard. She claimed to work more than twenty hours in a given day on more than 200 occasions, including 28 days when she asserted that she provided 32 hours of PCA services. She also claimed to provide personal care aide services in the District of Columbia on days when she was not even in the United States.
The FBI, the Department of Health and Human Services’ Office of Inspector General, the District of Columbia’s Office of the Inspector General’s Medicaid Fraud Control Unit, and the U.S. Attorney’s Office are committed to investigating and prosecuting individuals who defraud the D.C. Medicaid program. Since October 2019, six former personal care aides have been sentenced in U.S. District Court for defrauding Medicaid. A seventh former personal care aide, Charlotte Etongwe, is scheduled to be sentenced next week. Cases against two other personal care aides remain outstanding.
The government counts on the public for tips and assistance in helping stop health care fraud. If you have information about individuals committing health care fraud, please call the Department of Health and Human Services’ Office of Inspector General hotline at (800) HHS‑TIPS [(800) 447-8477].
Assistant U.S. Attorney Kondi Kleinman of the Fraud Section prosecuted the case.
Man from Española sentenced to two years in federal prison for drug and firearm possessionRead the Press Release
ALBUQUERQUE, N.M. – Jerod Walker, 22, of Española, New Mexico, was sentenced in federal court on May 6 to two years and three months in prison for possession with intent to distribute cocaine base and being a prohibited person in possession of a firearm.
Walker pleaded guilty to these offenses on July 22, 2020. According to the plea agreement, on Feb. 1, 2020, Walker was in possession of a handgun and cocaine base (also known as crack cocaine) in a bag located inside his girlfriend’s vehicle. The incident occurred in Rio Arriba County, New Mexico. Due to his drug addiction, Walker is prohibited from possessing a firearm.
Upon completion of his prison sentence, Walker will be subject to three years of supervised release.
The Bureau of Alcohol, Tobacco, Firearms and Explosives Albuquerque Resident Agency, the Rio Arriba County Sheriff’s Office, and the United States Probation Office investigated this case. Assistant U.S. Attorney Joseph Spindle prosecuted the case.
Man Sentenced to 20 Years in Prison for Attempting to Provide Material Support to ISISRead the Press Release
WASHINGTON – A New York man was sentenced today to 20 years in prison for attempting to provide material support to the Islamic State of Iraq and al-Sham, aka ISIS.
Zachary Clark, aka Umar Kabir, Umar Shishani and Abu Talha, 42, of Brooklyn, pleaded guilty in August 2020 to one count of attempting to provide material support or resources to a designated foreign terrorist organization, namely, ISIS.
“Today’s 20-year sentence recognizes the gravity of Clark’s conduct, including his calls for other ISIS supporters to carry out lone wolf terrorist attacks in New York City,” said Assistant Attorney General John C. Demers for the Justice Department’s National Security Division. “Having pledged allegiance to ISIS, Clark provided others with specific instructions on knifing and bomb-making for use in such attacks. We remain vigilant to the threat of terrorism and committed to identifying and holding accountable those who threaten our communities through their support for foreign terrorist organizations.”
“Zachary Clark pledged allegiance to ISIS and posted calls for attacks on the public and institutions in New York City on encrypted pro-ISIS chatrooms, along with detailed instructions for carrying out those violent acts,” said U.S. Attorney Audrey Strauss for the Southern District of New York. “Thanks to the Joint Terrorism Task Force, Clark’s efforts to incite deadly violence on behalf of ISIS have been silenced. Today’s sentence sends a clear message that those who seek to further ISIS’s campaign of terror and violence, no matter the method, will face serious consequences.”
“The FBI remains steadfast in the fight against terrorism," said Acting Assistant Director Patrick Reddan for the FBI’s Counterterrorism Division. “I would like to thank the men and women of the FBI, along with our partners in law enforcement, for holding accountable individuals, such as Zachary Clark, who pledge allegiance to ISIS and support and spread their violent terrorist agenda. We remain vigilant in our efforts to prevent terrorism and protect the American people, and today’s sentencing underscores that commitment.”
According to court documents, Clark pledged allegiance to ISIS twice: first in July 2019 to ISIS’s then-leader Abu Bakr al-Baghdadi, and then in October 2019 to ISIS’s new leader, Abu Ibrahim al-Sashemi al-Qurayshi, whom ISIS promoted after al-Baghdadi’s death. Beginning in at least March 2019, Clark disseminated ISIS propaganda through, among other avenues, encrypted chatrooms intended for members, associates, supporters and potential recruits of ISIS. Clark’s propaganda included, among other things, calls for ISIS supporters to commit lone wolf attacks in New York City.
For example, on Aug. 3, 2019, Clark posted instructions about how to conduct such an attack, including directions on how to select an attack target, how to conduct preoperational surveillance, how to conduct operational planning and how to avoid attracting law enforcement attention when preparing for and conducting the attack. On another occasion, Clark posted a manual entitled “Knife Attacks,” which stated, among other things, that discomfort at “the thought of plunging a sharp object into another person’s flesh” is “never an excuse for abandoning jihad” and that “[k]nives, though certainly not the only weapon for inflicting harm upon the kuffar [non-believers], are widely available in every land and thus readily accessible.”
Clark urged the participants in encrypted chatrooms to attack specific targets, posting maps and images of the New York City subway system and encouraging ISIS supporters to attack those locations. Clark’s guidance also included posting a manual entitled “Make a bomb in the kitchen of your Mom,” which was issued by al-Qaeda in the Arabian Peninsula and included detailed instructions about constructing bombs using readily available materials.
The FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD and over 50 other federal, state and local agencies, investigated the case.
Assistant U.S. Attorneys Gillian Grossman, Matthew Hellman and Sidhardha Kamaraju of the Southern District of New York prosecuted the case with assistance from Trial Attorneys Jason Denney and Chad Davis of the National Security Division’s Counterterrorism Section.
Long Island Investment Advisor Pleads Guilty to Securities Fraud ConspiracyRead the Press Release
Earlier today, in federal court in Central Islip, Mark Lisser pleaded guilty to securities fraud conspiracy for lying to customers about investments in shares of several companies prior to the initial public offering (IPO) of those companies. The proceeding was held before United States Magistrate Judge A. Kathleen Tomlinson.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, announced the guilty plea.
“With today’s guilty plea, the defendant admits to personally profiting from the false representations he made to his customers about the nature of their investments in valuable pre-IPO companies,” stated Acting U.S. Attorney Lesko. “This Office and its law enforcement partners are committed to preventing dishonest advisors like the defendant from taking advantage of the investing public.” Mr. Lesko thanked the Federal Bureau of Investigation, New York Field Office, and the United States Securities and Exchange Commission, New York Regional Office, for their assistance.
Between October 2018 and January 2019, Lisser was a partner in Knightsbridge Private Partners LLC (Knightsbridge), which operated a series of websites and call centers used to solicit investments in purported pre-IPO shares of companies (the Pre-IPO Companies). Employees of Knightsbridge, including Lisser, solicited these investments by falsely telling investors and potential investors that Knightsbridge owned the shares it was selling, that Knightsbridge was on the capitalization table of the pre-IPO Companies, and that Knightsbridge and its employees did not earn any commissions or fees until after the shares were issued to the public and the investors made money. In reality, as Lisser knew, Knightsbridge did not directly own any pre-IPO shares in the Pre-IPO Companies, and was not on the capitalization table of any of the Pre-IPO Companies. Lisser also knew that he and other Knightsbridge employees earned money, including commissions, from the investments at the time they were made. As a result of this scheme, Lisser misappropriated more than $700,000 in investors’ funds to make payments to companies controlled by Knightsbridge employees, pay salaries and sales commissions, pay his personal credit card bill, and make payments on a mortgage.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Mathew S. Miller and David Gopstein are in charge of the prosecution.
The Defendant:
MARK ALAN LISSER
Age: 40
Massapequa, New YorkE.D.N.Y. Docket No. 21-CR-210 (JMA)
Local woman guilty of disaster fraudRead the Press Release
HOUSTON – A 46-year-old Houston resident has admitted to fraudulently obtaining more than $7,000 in disaster relief, announced Acting U.S. Attorney Jennifer B. Lowery.
Latoya Romar entered a guilty plea to a scheme to defraud the Federal Emergency Management Agency (FEMA) in connection with the severe storm that struck Houston May 4, 2015.
Romar applied for disaster relief, falsely claiming the storm damaged her residence and personal property. As part of her plea, she admitted she submitted forged documents to FEMA to substantiate her false claims.
As a result of her fraudulent claims, FEMA paid Romar $7,124.33 in disaster relief that she was not entitled to receive.
U.S. District Judge Andrew S. Hanen accepted the plea and set sentencing for Aug. 16. At that time, Romar faces up to 30 years in federal prison and a $250,000 maximum possible fine. She was permitted to remain on bond pending that hearing.
The Department of Homeland Security - Office of Inspector General conducted the investigation. Assistant U.S. Attorney Justin R. Martin prosecuted the case.
Leader of Newark Drug Trafficking Organization Sentenced to 20 Years in Prison for Participating in Heroin ConspiracyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 240 months in prison for his role as the leader of a heroin trafficking conspiracy in Newark, Acting U.S. Attorney Rachael A. Honig announced.
Keith Herd, 33, of Newark, previously pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to a third superseding indictment charging him with one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin and distribution of and possession with intent to distribute heroin. Judge Wigenton imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
Herd was the leader of a drug trafficking organization that dealt heroin and crack cocaine in and around Newark, specifically around Hayes Street and 14th Avenue in the area of the New Community Corporation community development (NCC). The organization was comprised of members of the Brick City Brim set of the Bloods street gang.
The investigation revealed that in addition to selling drugs, members of the organization alerted each other to police presence and the presence of rival gang members or drug dealers within NCC. The members also shared narcotics supply, narcotics proceeds, and customers, and raised bail money for each other following their numerous arrests. Members of the organization have also engaged in violence and been the subjects of violent crime in connection with their narcotics trafficking activities.
In addition to the prison term, Judge Wigenton sentenced Herd to five years of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and members of the Newark Department of Public Safety, under the direction of Public Safety Director Brian O’Hara, with the investigation leading to today’s sentencing. She also thanked the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, the New Jersey Department of Corrections, the New Jersey State Parole Commission, and the U.S. Marshals Service for their assistance.
The case was investigated as part of the Violent Crime Initiative (VCI). The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorneys Elaine K. Lou and Christopher D. Amore of the U.S. Attorney’s Office in Newark.
Lawrence Man Sentenced for Fentanyl ConspiracyRead the Press Release
BOSTON – A Lawrence man pleaded guilty and was sentenced today in federal court in Boston in connection with drug trafficking activities involving fentanyl.
Ronyel Pena, 20, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl, two counts of distribution of and possession with intent to distribute fentanyl, one count of distribution of 40 grams or more of fentanyl and one count of possession with intent to distribute 40 grams or more of fentanyl. U.S. District Court Judge Richard G. Sterns then sentenced Pena to one year and one day in prison and four years of supervised release.
According to court documents, beginning in the spring of 2019, federal agents began an investigation into a drug trafficking organization (DTO) in the Lawrence area. Between April and June 2019, federal agents made five controlled purchases of fentanyl from the DTO. Pena delivered the fentanyl for four of the five controlled purchases.
Pena was charged as part of a coordinated enforcement operation in the Merrimack Valley dubbed “Operation Devil’s Highway.” The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against a total of 40 people for federal drug offenses, with at least a dozen more individuals facing state charges.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. The Massachusetts State Police and the Lawrence Police Department assisted in this investigation. Assistant U.S. Attorney Alathea Porter of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
LPR admits to smuggling fentanyl and heroin through LaredoRead the Press Release
LAREDO, Texas – A 37-year-old legal permanent resident (LPR) of Mexico has pleaded guilty to participating in a drug importation conspiracy, announced Acting U.S. Attorney Jennifer B. Lowery.
Jose Martinez Torres had been residing in Chicago.
On Feb. 2, Torres attempted to enter the United States at the Juarez–Lincoln Port of Entry in Laredo. An x-ray scan of his vehicle revealed some anomalies in the dashboard which prompted authorities to conduct a search. They ultimately found 13 hidden duct-taped bundles - 11 packages of heroin weighing 12.96 kilograms and two of fentanyl with a weight of 2.22 kilograms.
The narcotics had a combined estimated street value of $350,000.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing Aug. 10. At that time, Torres faces up to life in prison. He has been in custody since his arrest where he will remain pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney David Fawcett prosecuted the case.
Judge sentences Lewis County man for being a felon in possession of a firearmRead the Press Release
ST. LOUIS – United States District Judge Henry E. Autrey sentenced Marcus Mays to 37 months in prison today. The 37-year-old Canton, Missouri resident pleaded guilty to one count of being a felon in possession of a firearm.
On August 17, 2018, the Lewis County Sheriff’s Department was investigating Mays. The sheriff’s department obtained a search warrant for Mays’ residence to look for items related to child abuse and drugs. During the execution of the warrant, the sheriff’s department found two stolen firearms, a box of 9mm ammunition, a box of sandwich baggies, two bags containing methamphetamine, marijuana and $1,100 in U.S. Currency in an ottoman in the living room.
Prior to August 17, 2018, Mays was convicted of at least one felony crime punishable by imprisonment for a term exceeding one year.
The Lewis County Sheriff’s Department investigated the case. Assistant United States Attorney J. Christian Goeke is handling the case.
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Interstate Theft Scheme Ringleader Pleads GuiltyRead the Press Release
PROVIDENCE – A Cranston man today admitted to a federal court judge that he led a nine-person conspiracy that participated in a four-state scheme to steal heavy construction equipment, sport boats, jet skis, all-terrain vehicles, and trailers.
According to court documents, Jose A. Montes, aka Jose Rivera, aka “Tuto”, 36, led the group of individuals that broke into businesses in four New England states in order to steal three Bobcat excavators, ten jet skis, three boats, eight all-terrain vehicles, and fourteen trailers, valued at nearly $700,000.
Appearing in federal court in Providence today, Montes admitted that he personally participated in
- The October 22 and 23, 2019, break-in of a Rehoboth, MA, business and the theft of four jet skis and two trailers valued at approximately $64,000. Two of the watercrafts were later recovered in Cranston by Cranston Police.
- A November 18, 2019, break-in at a South Kingstown marina and the theft of a sport boat and trailer valued at $30,000. The boat and trailer were later recovered by law enforcement in Sarasota, FL.
- A December 28, 2019, break-in at a Tiverton business and the theft of two sport fishing boats and trailers valued at nearly $200,000. The boats were first towed to Johnston. Montes admitted that he removed the engine from one of the boats and then left the boat in Scituate. The engineless boat was later recovered by police. The second boat was towed to Sarasota, FL, to be sold. It was recovered by law enforcement in Sarasota.
- The April 10, and 11, 2020, break-ins at an Auburn, MA, Bobcat dealer and the theft of three Bobcat machines valued at a total of approximately $195,000. Two of the Bobcats were later recovered by Johnston Police. The third stolen Bobcat was recovered by North Providence Police.
- The April 12, 2020, break-in at a Waterford, CT, business and the theft of a jet ski and trailer valued at $17,000. The stolen items have not been recovered.
- The July 17, 2021, attempted break-in at a Vernon, CT, business and the attempted theft of an all-terrain vehicle (ATV), a three-wheeled sport vehicle, and a trailer. The break-in was interrupted by police. Montes and a person working at his direction fled the area. Later that evening, Montes admitted, he and the second person stole $58,000 worth of items from a Stafford, CT, business, to include an ATV, a jet ski, and two trailers.
- On July 20, 2020, Montes, directed a group of men who travelled together in three vehicles to an Easton, MA, business where they stole three jet skis and three trailers valued at a total of nearly $48,100. The stolen items were transported to Providence.
- On July 29, 2020, Montes and others working at his direction broke-in to a Hampstead, NH, business and stole four ATVs, three jet skis, a three-wheeled sport vehicle, and two trailers, valued at a total of $90,400.
On August 2, 2020, Providence Police located a stolen ATV parked in the rear of a Providence residence. On August 9, 2020, Easton Police recovered a trailer stolen in that town. On that same date, Hampstead, NH, Police recovered an ATV stolen in that town.
Appearing today before U.S. District Court Mary S. McElroy, Montes pleaded guilty to three counts of conspiracy to commit interstate transportation of stolen property and eight counts of interstate transportation of stolen property, announced Acting United States Attorney Richard B. Myrus.
Montes is scheduled to be sentenced on August 3, 2021.
The investigation into the stolen items was launched by the Johnston and North Providence Police Departments, and joined by the FBI Safe Streets Task Force, and merged with a parallel investigation by Rhode Island and Connecticut State Police, and the Easton, MA,, and Hampstead, NH, Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys William J. Ferland and Ly T. Chin.
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Indonesian Man Guilty of Illegally Using Social Security Number to Obtain EmploymentRead the Press Release
NEW ORLEANS, LOUISIANA –RUDY GUNAWAN, age 40, a citizen of Indonesia, pleaded guilty on May 11, 2021 before U.S. District Judge Wendy B. Vitter to a one-count indictment that charged him with possession of fraudulent immigration documents, announced United States Attorney Duane A. Evans. GUNAWAN faces a maximum term of imprisonment of not more than ten (10) years, three (3) years of supervised release, a fine of $250,000, and a mandatory special assessment fee of $100. Sentencing is scheduled for July 20, 2021.
According to court documents, United States Customs and Border Protection (CBP) agents received information that GUNAWAN was in the United States illegally and using a Social Security card bearing the name and number of another person. On September 28, 2020, CBP agents encountered GUNAWAN at his place of employment, Samurai Sushi (Slidell, Louisiana). An agent asked for identification and GUNAWAN produced a U.S. Social Security card. GUNAWAN claimed to be a U.S. citizen from Puerto Rico. He admitted that he knew the U.S. Social Security card was falsely made and that he had obtained the card from an individual in Memphis, Tennessee for $700. GUNAWAN also admitted that the name and number on the card were not lawfully issued to him and that he purchased the fraudulent documents in order to be able to stay within the United States and work.
U.S. Attorney Evans praised the work of United States Customs and Border Protection and Social Security Administration agents in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
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Hopkinton Man Arrested for Third Time on Child-Related Sex ChargesRead the Press Release
PROVIDENCE – A Hopkinton man arrested and charged in Rhode Island state court in July 2020 on charges that he allegedly arranged online to meet with a 14-year-old girl to engage in sexual intercourse, and arrested again in October 2020 after a Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force investigation determined that he allegedly downloaded and stored child pornography earlier in 2020, has been charged in federal court with possessing child pornography and with allegedly downloading images of child pornography in March of this year while on bail related to his previous arrests.
In April 2021, the ICAC Task Force received information from the National Center for Missing and Exploited Children (NCMEC) that child pornography had been downloaded in March via an online social media program, using an IP address assigned to an Internet subscriber in Rhode Island. It was determined by the ICAC Task Force that the IP address belonged to a residence where Christopher Leherissier, 36, resides. As a result of further investigation, Leherissier was arrested on Wednesday by ICAC Task Force members and Homeland Security Investigations agents on a federal criminal complaint charging him with possession of child pornography.
Prior to Wednesday’s arrest, Leherissier had been arrested twice in the past 10 months by members of the ICAC Task Force on sex-related charges involving minors.
In July 2020, Leherissier was arrested by members of the ICAC Task Force when he arrived at a location where he allegedly was to meet and have sexual intercourse with a minor whom he had been communicating with online for several months. The person he was allegedly communicating with was, in fact, a member of the ICAC Task Force. A smart phone seized from Leherissier allegedly contained numerous images of child pornography.
In a separate investigation, in May 2020, the ICAC Task Force received information from NCMEC that an individual had uploaded seven files of child pornography to a Dropbox storage account. It was determined by members of the task force that the files were allegedly uploaded from an IP address where Leherissier resided. A court-authorized search of the Dropbox account resulted in the discovery of approximately 55 files depicting child pornography. Leherissier was arrested on October 22, 2021 by ICAC Task Force members on a state charge of possession of child pornography. A forensic review of electronic devices seized during Leherissier’s second arrest allegedly resulted in the discovery of 42 mages and 10 videos depicting child pornography.
Leherissier appeared today in U.S. District Court in Providence before Magistrate Judge Lincoln D. Almond on a federal criminal complaint charging him with possession and distribution of child pornography. He was ordered detained in federal custody.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Leherissier’s arrest and initial appearance in U.S. District Court is announced by Acting United States Attorney Richard B. Myrus, Homeland Security Investigations Acting Special Agent in Charge William S. Walker, and Superintendent of the Rhode Island State Police Colonel James M. Manni.
The case in U.S. District Court is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
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Hartford Man Pleads Guilty to Distributing Oxycodone from New Britain Grocery StoreRead the Press Release
Leonard C. Boyle, Acting United States Attorney for the District of Connecticut, today announced that ELIEZER PEREZ, also known as “Ka-King,” 42, of Hartford, pleaded guilty yesterday via videoconference before U.S. District Judge Janet C. Hall to conspiracy to possess with intent to distribute, and to distribute, oxycodone.
According to court documents and statements made in court, in the summer of 2019, the Drug Enforcement Administration New Haven Tactical Diversion Squad and the New Britain Police Department began investigating individuals who were selling oxycodone pills from Elzier Grocery, located at 1485 Corbin Avenue in New Britain. Between July and December 2019, investigators made multiple controlled purchases of oxycodone pills from Perez and others at the store.
On February 26, 2020, court authorized searches of the Elzier Grocery and a nearby residence revealed more than 1000 oxycodone pills, drug packaging materials, drug ledgers, and approximately $10,000 in cash.
Perez has been detained since his arrest on December 12, 2020.
Judge Hall scheduled sentencing for August 3, 2021, at which time Perez faces a maximum term of imprisonment of 20 years.
This investigation is being conducted by the Drug Enforcement Administration New Haven Tactical Diversion Squad and the New Britain Police Department. The case is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Guatemalan Man Sentenced for Unlawful Reentry by an Alien Removed After Conviction of a FelonyRead the Press Release
Gulfport, Miss. – A Guatemalan national was sentenced yesterday to 16 months in federal prison for unlawful reentry by an alien removed after conviction of a felony, announced Acting U.S. Attorney Darren J. LaMarca and Michael J. Harrison, Acting Chief Patrol Agent of the Border Patrol’s New Orleans Sector.
According to court documents, Gerber Estif Pineda-Sierra, 34, was arrested in November 2020 by agents with the U.S. Border Patrol following an investigation which determined that Pineda-Sierra, who had been previously removed from the United States, was residing in the Gulfport, Mississippi area. Record checks documented that in 2018, Pineda-Sierra had been physically removed from the U.S. after being ordered removed by a U.S. Immigration Judge. Thereafter, he reentered the U.S. and was convicted in the Northern District of Florida in 2019 for the felony offense of illegal reentry into the U.S. of a previously deported alien. Pineda-Sierra was again removed from the U.S. In January 2020, he was arrested again by the Border Patrol, and was returned to Guatemala in February 2020.
Pineda-Sierra was sentenced today to 16 months in federal prison, followed by three years of supervised release. He may also face Department of Homeland Security removal proceedings. If he is removed from the United States following his prison sentence, Pineda-Sierra could face additional penalties if he were to unlawfully return to the United States, in addition to further prosecution. As a result of this felony conviction, if Pineda-Sierra were to unlawfully return to the United States, he could face up to ten years in federal prison. Pineda-Sierra was convicted after pleading guilty on February 23, 2021.
Acting U.S. Attorney for the Southern District of Mississippi, Darren J. LaMarca, praised the investigative work of the U.S. Border Patrol and the U.S. Department of Homeland Security. Assistant United States Attorney Stan Harris prosecuted the case.
Goffstown Man Pleads Guilty to Transportation and Possession of Child PornographyRead the Press Release
CONCORD - Timothy Diggins, 60, of Goffstown, pleaded guilty in federal court to transportation and possession of child pornography, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on or about January 1, 2019, Microsoft’s automated system detected potential child exploitation material on an account belonging to Diggins. A Cybertip report was sent to the National Center for Missing and Exploited Children (NCMEC), which referred the matter to law enforcement for investigation.
On September 18, 2019, investigators conducted a consensual interview with Diggins at his home. Diggins confirmed that he used the internet to view child pornography. Subsequent search warrants revealed over one thousand child pornography images on Diggins’ computer and electronic media.
Diggins is scheduled to be sentenced on August 23, 2021.
“Child exploitation crimes victimize young children and cause unspeakable harm,” said Acting U.S. Attorney Farley. “Those who engage in child pornography crimes must be held accountable for their actions. To protect the innocence of our children, we work closely with our law enforcement partners to identify and prosecute those who commit crimes related to child pornography.”
“This guilty plea removes another participant from the traumatizing and exploitative cycle of child exploitation online. The coordination across the public, private, and non-profit sectors seen in cases like these are critical to Homeland Security Investigation’s mission to keep children safe online,” said William S. Walker, Acting Special Agent in Charge for Homeland Security Investigations, Boston.
This matter was investigated by Homeland Security Investigations, the New Hampshire Internet Crimes Against Children Task Force, and the Goffstown Police Department. The case is being prosecuted by Assistant U.S. Attorney Cam Le.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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German Citizen Sentenced in Maryland to Nearly Two Years in Federal Prison for Charges Related to a Scheme to Defraud the U.S. State DepartmentRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Katrin Verclas, age 52, a native and citizen of Germany residing in Washington, D.C., today to 728 days in federal prison for obstruction of a federal audit and for causing a financial institution to fail to file a suspicious activity report (SAR). Verclas previously pleaded guilty to those charges, which were related to more than $1.2 million in U.S. State Department grant funds awarded to MobileActive, a corporation that Verclas controlled. To settle a related civil complaint filed against MobileActive, the corporation will pay $500,000 to the United States within five days of the Court accepting the consent judgment, or today’s sentencing, whichever is later.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge Mike Speckhardt of the U.S. Department of State Office of Inspector General, Office of Investigations.
According to the plea agreement, on December 17, 2009, the U.S. State Department’s Bureau of Democracy, Human Rights, and Labor (“DRL”) publicized a Request for Proposal (“RFP”) that solicited grant proposals under the title “Promoting Freedom of Expression and the Free Flow of Information through Technology and Access.” The submission deadline for grant proposals was January 22, 2010.
As detailed in the plea agreement, Verclas, who was residing in Amherst, Massachusetts at the time, had worked for non-profit organizations in the field of social activism through the use of technology since about 1996. In preparation for a response to the DRL RFP, on January 15, 2010, Verclas converted a project known as MobileActive into a Delaware corporation, and on January 22, 2010, electronically submitted a grant proposal to DRL on behalf of MobileActive. On September 20, 2010, MobileActive was awarded a grant from the U.S. Department of State in the amount of approximately $1,411,000, to develop and promote: a Mobile Security Toolkit of needed and missing software applications for secure mobile communication; and tactical resources that would allow human rights organizations and activists in specific geographic regions to easily assess and mitigate risks associated with their mobile communications. The performance period of the grant was September 20, 2010 through about September 30, 2012.
In order to request the grant funds, MobileActive, through Verclas, established an account with Payment Management System (“PMS”), a federal grants management database located in Bethesda, Maryland. Between October 26, 2010 and July 26, 2012, Verclas submitted 11 payment requests on behalf of MobileActive, causing the U.S. Department of State to release $1.222 million to MobileActive’s business bank account, which Verclas controlled.
MobileActive, through Verclas, failed to comply with a number of requirements under the grant. In November 2012, the State Department began performing an audit and quality assurance inspection with regard to the grant award. From November 2012 to February 2014, the State Department made several requests, including through letters mailed and hand-delivered to Verclas, to provide documents and information, including a final financial report and inventory report, among other things. Verclas admitted that she intentionally ignored the State Department’s repeated requests because she knew that she did not have the requisite reports, documents, and other items.
In addition, Verclas admitted that from November 2010 to October 2012, she failed to disclose to the bank that many of the transactions involving the MobileActive business account were for Verclas’ own personal gain rather than legitimate business purposes. Verclas knew that, had the bank been aware of the true nature of these transactions, it would have been required to file a SAR. Through her deception, Verclas willfully caused the bank to fail to file a SAR.
Acting United States Attorney Jonathan F. Lenzner commended the U.S. Department of State, Office of Inspector General, for its work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney David I. Salem, who prosecuted the case, and thanked Assistant U.S. Attorney Katharine A. Wagner of the Massachusetts U.S. Attorney’s Office, who provided substantial assistance.
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Gansevoort Woman Pleads Guilty to Charges of Supplemental Security Income FraudRead the Press Release
ALBANY, NEW YORK – Santa Sanabria, a/k/a Santa Cordero, age 75, of Gansevoort, New York, pled guilty today to using two different names and Social Security numbers to collect Social Security benefits under both identities.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and John F. Grasso, Special Agent in Charge of the Social Security Administration (SSA), Office of the Inspector General, New York Field Office.
As part of her guilty plea, Sanabria admitted that she had applied for and received two Social Security numbers, one in her maiden name, Sanabria, and another in her married name, Cordero. Sanabria admitted that from July 2012 through September 2017, while collecting Social Security benefits under the name Santa Cordero and the Social Security number associated with that name, she also used the Social Security number issued under her maiden name to apply for and collect Supplemental Security Income (SSI) benefits to which she was not entitled. SSI is a needs-based program, available to elderly, blind, and disabled individuals, that provides money to pay for living expenses.
As a result of her conviction, Sanabria faces up to 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. Sentencing is scheduled for September 9, 2021 before Senior United States District Judge Lawrence E. Kahn. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Sanabria has agreed to pay full restitution in the amount of $30,510.90.
This case was investigated by the SSA Office of the Inspector General and is being prosecuted by Special Assistant U.S. Attorney Adrian S. LaRochelle.
Franklin, Tennessee Couple Charged with Defrauding Elderly Widow of $1.7 MillionRead the Press Release
NASHVILLE – A criminal complaint unsealed today charged a Franklin, Tennessee couple with an elaborate scheme to defraud an elderly widow of $1.7 million, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee. FBI agents this morning, arrested Karl Hampton, 63, and his wife, Deborah Hampton, 59, at their home. Karl Hampton is charged with wire fraud and money laundering and Deborah Hampton is charged with money laundering. Both will make an initial appearance before a U.S. Magistrate Judge later today.
According to the criminal complaint, Karl Hampton met an elderly widow while he was working as an exterminator for a Belle Meade-based pest control company and provided extermination services for her home from approximately January 2016 through May 2019.
Beginning in approximately January 2018, when the elderly woman was 85 years old, and continuing until about June 2020, Karl Hampton devised and executed a scheme to defraud the woman and various financial institutions and credit and loan-issuing institutions by deceiving the woman into believing that he was her son or godson and that he would care for her personally and financially. He then used his influence over her to convince her to sign over her Power of Attorney (POA) and to name him in her Revocable Living Trust (RLT) and in her will. Karl Hampton methodically drained the woman’s bank accounts, took out a $500,000 line of credit in her name using her securities as collateral, and amassed huge charges on her credit cards for his own personal expenses, all under the false pretenses that he had a valid POA, that he was entitled to her money and property, and that he was acting for her benefit and in her interest.
In April 2019, Karl Hampton accompanied the woman to an attorney’s office, where she signed a POA, a RLT and a will, each of which purported to give Karl Hampton considerable control over her assets. The POA appointed Karl Hampton as the Agent and Deborah Hampton as the successor agent. The RLT and the will specified that Karl Hampton and Deborah Hampton would be beneficiaries when the woman died. In May 2019, shortly after inducing the woman to sign the POA, Karl Hampton quit his job and thereafter continued to drain the woman’s bank accounts to fund his lavish lifestyle.
On June 8, 2019, the woman fell and fractured her hip and was transported to Williamson County Medical Center (WCMC) and then to NHC of Cool Springs (NHC), which was an assisted living facility, for recovery following hip surgery. During her hospital visit and transfer to NHC, the woman was diagnosed with dementia. Staff at NHC also noted that the woman was malnourished when she arrived, and staff discussed with Karl Hampton that she suffered from dementia. Upon the woman’s admission to WCMC and on the application to place her at NHC, Karl Hampton listed himself as her “son,” her trustee, POA, and emergency contact. On other occasions, Karl Hampton called a financial institution, allegedly on the woman’s behalf, and represented that he was her “personal assistant” and another time falsely represented that she was his “mother.”
In December 2019, Karl Hampton took out a $500,000 line of credit in the woman’s name at SunTrust, using her security accounts at SunTrust as collateral. Karl Hampton then wrote checks to himself, purchased cashier’s checks, took out cash withdrawals, and transferred money out of the woman’s bank account and into a bank account in the name of Falcon Company, which he set up and controlled.
In January 2020, Karl Hampton used $170,000 of the money from the line of credit to purchase an ownership interest in his own name in a pest control business located in Franklin. Also, in January 2020 Karl Hampton rented an apartment in Murfreesboro, Tennessee, in the woman’s name. By this time, the woman had been living at NHC for almost six months.
During the course of the scheme, Karl Hampton took a total of approximately $1,240,438.06 from the woman’s accounts, and frequently purchased luxury items and often spent between $1,000 and $1,500 per day on lottery tickets. In February 2019, Karl Hampton and Deborah Hampton purchased a luxury Lexus SUV, using $21,000 of the criminal proceeds. In January 2020, the Hamptons spent $21,452 on a 4.3-karat diamond ring, also using proceeds of the fraud.
Karl Hampton also liquidated two investment accounts of the woman’s deceased sister in the amount of $246,645 and used the money for his own benefit.
If convicted, the Karl Hampton faces up to 20 years in prison and Deborah Hampton faces up to 10 years.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Kathryn Booth.
A criminal complaint is merely an accusation of guilt. Both defendants are presumed innocent until proven guilty in a court of law.
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Four men sentenced to prison for purchasing millions of dollars worth of cigarettes using stolen credit cardsRead the Press Release
ATLANTA – Mamadou Sow, Demarcus Myree, Boubacar Tivalo, and Jacob James, have been sentenced for access device fraud and aggravated identity theft related to purchases of massive quantities of cigarettes from Sam's Club retail locations in metro Atlanta.
“Identity theft wreaks havoc on the lives of individuals and compromises the financial security of victims,” said Acting U.S. Attorney Kurt R. Erskine. “The sentences reflect the egregiousness of their conduct and the harm caused to dozens of victims, including individuals, financial institutions, and the retail establishments.”
“Identity thieves are a serious threat to our community because these scammers can steal so much of your hard-earned money and vanish before you’re ever alerted,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI and its partners are constantly working to identify, arrest and prosecute criminals, like these, that are exploiting the security of our financial networks.”
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: Mamadou Sow, Demarcus Myree, and Boubacar Tivalo obtained Sam's Club memberships and membership cards in their names and aliases. From September 2018 through November 30, 2018, the defendants used dozens of stolen credit cards, issued by various financial institutions, to make unauthorized purchases of cigarettes at Sam's Club retail locations throughout metro Atlanta. In combination with some cash transactions, these three defendants purchased over $1.7 million worth of cigarettes during the scheme. Myree was also charged with possession of a stolen firearm.
From September 2018 to December 2018, Jacob James, who was charged in a separate indictment, purchased over $635,000 worth of cigarettes from Sam’s Club stores using stolen credit cards.
The defendants have been sentenced by U.S. District Judge Eleanor L. Ross as follows:
- Mamadou Sow, a/k/a Moussa Sow, 30, of Guinea, was sentenced to two years, six months in prison for access device fraud, to be followed by two consecutive years imprisonment for aggravated identity theft. He was also sentenced to serve three years of supervised release and ordered to pay restitution in the amount of $749,772.31. Sow was convicted on these charges on July 23, 2019, after he pleaded guilty.
- Demarcus Myree, a/k/a Yuri Markosov, 27, of Atlanta, Georgia, was sentenced to two years, six months in prison for access device fraud and possession of a stolen firearm, to be followed by two consecutive years imprisonment for aggravated identity theft. He was also sentenced to serve two years of supervised release and ordered to pay restitution in the amount of $339,545.42. Myree was convicted on these charges on June 26, 2019, after he pleaded guilty.
- Boubacar Tivalo, a/k/a Tivado Boubacar, 46, of Guinea, was sentenced to two years, six months in prison for access device fraud, to be followed by two consecutive years imprisonment for aggravated identity theft. He was also sentenced to serve three years of supervised release and ordered to pay restitution in the amount of $664,305.52. Tivalo was convicted on these charges on September 10, 2019, after he pleaded guilty.
- Jacob James, a/k/a Mark Johnson and Joe Johnson, 31, of Atlanta, Georgia, was sentenced to two years in prison for access device fraud, to be followed by two consecutive years imprisonment for aggravated identity theft. He was also sentenced to serve three years of supervised release and ordered to pay restitution in the amount of $635,242.75. James was convicted on these charged on November 24, 2020, after he pleaded guilty.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant U.S. Attorney Kelly K. Connors prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.Four Men Receive Lengthy Federal Prison Sentences for Trafficking Drugs in Southeast AlabamaRead the Press Release
MONTGOMERY, ALABAMA – Over the past several months, four men were sentenced to prison for drug trafficking in Houston County, announced Acting United States Attorney Sandra J. Stewart. The most recent sentencing occurred this week.
On May 11, 2021, the final co-defendant in the case, 36-year-old Muta Bolden from Dothan, Alabama, was sentenced to 130 months in prison. Bolden was also ordered to serve five years of supervised release after he completes his term of imprisonment. There is no parole in the federal system.
Bolden’s three co-defendants were previously sentenced for their roles in the crime. They include:
- Alberto Diaz, 44, from Rio Grande, Texas, sentenced to 130 months’ imprisonment, to be followed by five years’ supervised release;
- Jesus Pina, Jr., 40, from San Juan, Texas, sentenced to 108 months’ imprisonment, to be followed by five years’ supervised release; and,
- Kenneth Nicholas De La Cerda, 27, from Rio Grande, Texas, sentenced to 60 months in prison to be followed by three years’ supervised release.
According to court records, this case began in February 2019 when the Drug Enforcement Administration (DEA) and Dothan Police Department received information that a shipment of cocaine was being brought into Houston County. Based on the tip, law enforcement observed Bolden meet up with Diaz and De La Cerda in Ashford, Alabama. Following a conversation among the three, they all departed separately. Diaz and De La Cerda eventually traveled to the Flying J Truck Stop in Dothan and led an 18-wheeler being driven by Pina to another location. Eventually, Bolden joined Diaz and De La Cerda at the truck and approximately 25 kilograms of cocaine was retrieved from the trailer Pina was hauling. A short time later, all four were apprehended. Each of the four were sentenced after pleading guilty to conspiracy to distribute cocaine in Houston County.
Federal guidelines called for significant sentences for Diaz, Pina, and Bolden due to their extensive criminal histories and the quantity of illegal drugs that were attributed to each of them.
These cases were investigated by the Drug Enforcement Administration (DEA) and the Dothan Police Department. Assistant United States Attorneys Brandon Bates and Joshua Wendell prosecuted the cases.
Fort Gordon soldier admits to possession of child pornographyRead the Press Release
AUGUSTA, GA: A U.S. Army soldier training at Fort Gordon has admitted to possessing child pornography.
Bryan S. Stills, 26, of Fort Gordon, pled guilty in U.S. District Court to one count of Possession of Child Pornography, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The plea subjects Stills to a statutory penalty of up to 20 years in federal prison and substantial financial penalties, followed by a period of supervised release of five years to life. There is no parole in the federal system.
“Identifying and removing child predators is an important part of keeping our communities safe,” said Acting U.S. Attorney Estes. “We applaud our law enforcement partners for their continued efforts to find those who prey on the most vulnerable members of our society.”
As described in court documents and testimony, the National Center for Missing and Exploited Children (NCMEC) alerted investigators from the U.S. Army Criminal Investigation Command (CID) after detecting child pornography being saved to an email account. Investigators identified the source as Stills, a Private Second Class in training at Fort Gordon with the 369th Signal Battalion, and in an October 2019 search of his living quarters seized electronic devices with hundreds of images and videos of child pornography.
Stills is in custody while awaiting sentencing.
“U.S. Army Criminal Investigation Command will continue to actively pursue soldiers who engage in this heinous crime regardless of where they are in the world,” said Edward LaBarge, Director of the Major Cybercrime Unit, U.S. Army CID.
The case is being investigated by the U.S. Army Criminal Investigation Command, and prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara M. Lyons.
Former VA Employee Sentenced for Conspiring to Accept BribesRead the Press Release
NEW BERN, N.C. – A Hope Mills man, Daniel Bruce Ross, was sentenced today to 24 months in prison for conspiring to accept bribe payments in exchange for the performance of official acts while working as a federal government employee. Ross previously pled guilty to the charge. He was also ordered to pay $21,520.00 in restitution.
According to court documents and other information presented in court, Ross worked for the U.S. Department of Veterans Affairs (VA) in Fayetteville as an agent for the Specially Adapted Housing (SAH) grant program, which provides federal funds to eligible veterans with certain severe, service-connected disabilities for the purpose of constructing adapted homes or modifying existing homes. SAH agents have day-to-day responsibility for managing the grant program, including recommending action on grant applications to VA supervisory officials. Among other things, SAH agents are required to inform the veteran that he or she may choose their own builder. Agents are prohibited from recommending a particular builder.
During the offense period, Ross was the assigned SAH agent for multiple grant projects awarded to All American Home Renovations (AAHR), a Fayetteville-based construction company then-owned and operated by Marc Schantz. According to the investigation, Ross abused his position as an SAH agent to steer over $1 million worth of grant projects to AAHR in exchange for monetary payments from Schantz. For example, Ross routinely advised his VA supervisors to approve grant awards to veterans in which AAHR was improperly and deceptively designated as a particular veteran’s “builder of choice” when, in fact, Ross had misled the veteran to believe that AAHR had been selected for them by the VA. AAHR concealed the unlawful payments to Ross by transferring the funds to a dormant business owned by Ross, making it appear as if the business was providing legitimate subcontracting services to AAHR.
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 U.S. Department of Veterans Affairs – Office of Inspector General investigated the case and Assistant U.S. Attorney Adam F. Hulbig 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-00037-FL.
Former UGA Professor Ordered to Prison, Must Register as Lifetime Sex OffenderRead the Press Release
ATHENS, Ga. – A former University of Georgia (UGA) professor who admitted to authorities that he possessed hundreds of images of child pornography was sentenced to federal prison and will have to register as a sex offender for life.
James Edward Monogan, III, 39, of Athens, was sentenced to serve 90 months in a federal prison to be followed by 10 years of supervised release and more than $40,000 in fines by U.S. District Judge C. Ashley Royal on Tuesday, May 10. In addition, Monogan will be required to register as a sex offender under the Sex Offender Registration Act. Monogan previously pleaded guilty to one count possession of child pornography. There is no parole in the federal system.
“Monogan, a former professor, will serve more than seven years behind federal prison bars for his crimes against children,” said Acting U.S. Attorney Peter D. Leary. “Viewing child pornography is a direct assault against the very children who are being exploited on film. We will prosecute individuals engaging in this deviant criminal behavior, and we thank our law enforcement partners for their hard work and vigilance.”
“Taking Monogan off the streets means that his victims can start to heal, and he can no longer hurt our children or share those dreadful images and details with others,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Catching and prosecuting predators is always a victory for the community, but when that predator is in a position of trust and responsibility that victory is even greater. We are thankful for the hard work our law enforcement put into this case.”
“This investigation demonstrates that no matter who you are, you will be held accountable for preying on children. We value our law enforcement partnerships to be able to work together in these type investigations to catch and punish criminals who seek to exploit one of our most vulnerable populations,” said GBI Director Vic Reynolds.
According to the plea agreement, Homeland Security Investigation’s Atlanta Office (HSI-Atlanta) received information in 2019 that KIK user “utbballplaya03” had distributed child pornography to another KIK user in February 2019. KIK, formally known as Kik Messenger, is an internet based instant messaging mobile application. HSI also received a second child pornography distribution complaint for KIK user “texan21225053.” Both KIK usernames belonged to Monogan. On September 5, 2019, HSI, the GBI and the Athens-Clarke County Police Department executed a federal search warrant at the defendant’s residence in Athens, seizing several electronic devices. Monogan’s UGA office was also searched. A forensic review of the defendant’s electronics located 452 images of child pornography and eight videos depicting child sexual exploitation material on his UGA laptop, as well as an additional 119 images of child sexual exploitation material on his cell phone. Some of these images involved minors under the age of 12.
The case was investigated by U.S. Immigration and Customs Enforcement – Homeland Security Investigations (ICE-HSI), the GBI and the Athens-Clarke County Police Department.
Assistant U.S. Attorney Shanelle Booker is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former New Orleans Church Official Sentenced for Wire FraudRead the Press Release
NEW ORLEANS – CHARLES WILLIAMS, JR. (“WILLIAMS”), age 51, of New Orleans, Louisiana, was sentenced today for Wire Fraud, in violation of Title 18, Untied States Code, Section 1343.
According to documents filed in Federal Court, the defendant was elected Senior Warden of St. Luke’s Episcopal Church (“St. Luke’s”) located at 1222 North Dorgenois Street in New Orleans. In his role as Senior Warden, WILLIAMS was responsible for paying all of St. Luke’s bills including insurance, salaries, and utilities. WILLIAMS took over the finances of the church and reduced or eliminated other church members’ access to church finances shortly after becoming the Senior Warden at St. Luke’s. During his tenure, WILLIAMS embezzled approximately $89,000 from St. Luke’s in his capacity as Senior Warden. WILLIAMS did not share church bank statements with other church members in an effort to conceal his embezzlement of church funds and he transferred church funds from one bank account to another account before withdrawing the funds. WILLIAMS deposited much of the money into his various Chase accounts and used some of the stolen money to support his pizza restaurant located in the Esplanade Mall.
On August 29, 2018, FBI special agents interviewed WILLIAMS. During the interview, WILLIAMS made three false statements to the FBI agents. Specifically, WILLIAMS said he used cash withdrawn from a St. Luke’s account to fund a $2,500 Chase cashier check dated February 21, 2018, with Remitter: St. Luke’s Episcopal Church/Operating Account. When the agents specifically asked whether bank records would show the money for the cashier’s check came from a St. Luke’s account, he denied that bank records would show the $2,500 coming from the church account. Further, he told the agents that the $2,500 had come from his personal account. The statements were false because WILLIAMS knew that on February 21, 2018, he had withdrawn $2,900. from St. Luke’s operating account and then used $2,500 of those funds to purchase the above described cashier’s check made payable to the Esplanade Mall for the benefit of his pizza restaurant. WILLIAMS also lied to the agents when he told them he had invested St. Luke’s money with a particular company. Lastly, he lied when he claimed he had not used any of St. Luke’s money for his business or for personal use. The FBI’s investigation determined that all of these assertions were in fact false.
U.S. District Judge Lance M. Africk sentenced WILLIAMS to 12 months and 1-day imprisonment, followed by 2 years of supervised release and payment of a $100 special assessment fee. WILLIAMS was also ordered to pay restitution in the amount of $89,000.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
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Former Controller of Manhattan Company and Three Family Members Charged with Embezzling $17 MillionRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), and Patrick J. Freaney, Deputy Special Agent-in-Charge of the New York Field Office of the United States Secret Service (“USSS”), announced today the unsealing of a criminal indictment charging SABITRI LAFOREST, GARRY LAFOREST, TATIANA LAFOREST a/k/a “Tatiana Mays,” and SANJAY LAFOREST with wire fraud, conspiracy to commit wire fraud, and conspiracy to commit money laundering in connection with their scheme to defraud SABITRI LAFOREST’s employer, a Manhattan-based electrical contracting company, of at least approximately $17 million.
The defendants were arrested this morning: SABITRI LAFOREST and GARRY LAFOREST in Parkland, Florida, TATIANA LAFOREST in Queens, New York, and SANJAY LAFOREST in New York, New York. Later today, TATIANA LAFOREST and SANJAY LAFOREST will be presented in federal court in Manhattan before U.S. Magistrate Judge Sarah Netburn; SABITRI LAFOREST and GARRY LAFOREST will be presented in federal court in Ft. Lauderdale, Florida, before U.S. Magistrate Judge Alicia O. Valle.
Manhattan U.S. Attorney Audrey Strauss said: “The defendants lived a life of luxury: international travel, fancy apartments and homes, a 2020 Ford Shelby GT500, and a 2019 Chevrolet Corvette ZR-1, as well as ownership in successful restaurants. But, as alleged, this was all paid for with $17 million that the defendants stole from the company that employed Sabitri Laforest for over 30 years. Thanks to our partners at the NYPD and U.S. Secret Service, the defendants’ alleged greed has led to their facing federal charges of embezzlement and money laundering.”
NYPD Commissioner Dermot Shea said: “As alleged in this federal indictment, these defendants exploited a position of trust to engage in a vast scheme of criminal plunder. These arrests and the work of our NYPD detectives, the United States Secret Service and the prosecutors of the United States Attorney’s Office in the Southern District of New York will ensure they face justice.”
USSS Deputy Special Agent-in-Charge Patrick J. Freaney said: “Bringing those to justice who commit financial fraud remains a key focus of the U.S. Secret Service. In this instance, the accused allegedly used her professional position as controller to embezzle approximately $17 million which was then allegedly laundered with the aid of family members. Not only are these alleged actions a violation of trust, but also a violation of law. The Secret Service looks forward to our continued partnership with the New York City Police Department in our joint pursuit of those who seek to commit financial crimes. Special thanks to the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA) Intelligence Analysts and the Miami Field Office of the Secret Service for their considerable support in the success of this investigation.”
According to the allegations in the Indictment:[1]
Between at least 2013 and 2020, SABITRI LAFOREST, GARRY LAFOREST, TATIANA LAFOREST, and SANJAY LAFOREST used SABITRI LAFOREST’s position as the controller of an electrical contracting company (“Victim-1”) to embezzle over $17 million from Victim-1. The defendants used SABITRI LAFOREST’s access to Victim-1’s bank account to make payments to a charge card account that TATIANA LAFOREST opened. The defendants regularly charged hundreds of thousands of dollars to the account, all paid for each month using Victim-1’s money.
The defendants used the charge card account to pay for, among other things, over $639,000 in air travel, over $242,000 in tickets for a New York City professional basketball team, over $250,000 in rent for two luxury apartments in Manhattan leased by TATIANA LAFOREST and SANJAY LAFOREST, over $100,000 in home improvements for a Florida home purchased by SABITRI LAFOREST and GARRY LAFOREST, and a 2020 Ford Shelby GT500 and a 2019 Chevrolet Corvette ZR-1.
The defendants also laundered millions of dollars of the proceeds of their embezzlement scheme by transferring the money to other financial accounts controlled by themselves and their family members, and by making payments to a restaurant in Elmont, New York, owned by SABITRI LAFOREST and GARRY LAFOREST, and a group of hospitality companies, including two Manhattan restaurants, owned by SANJAY LAFOREST.
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SABITRI LAFOREST, 59, and GARRY LAFOREST, 64, of Parkland, Florida, TATIANA LAFOREST a/k/a “Tatiana Mays,” 36, of Queens, New York, and SANJAY LAFOREST, 38, of New York, New York, are each charged with one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, which carries a maximum sentence of 20 years in prison, one count of wire fraud, in violation of 18 U.S.C. § 1343, which carries a maximum sentence of 20 years in prison, and one count of conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956, which carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by a judge.
Ms. Strauss praised the outstanding investigative work of the NYPD’s Financial Crimes Task Force and the USSS. Ms. Strauss also thanked the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA) Intelligence Analysts for their support and assistance in this matter.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Matthew R. Shahabian is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Former Bank Teller Pleads Guilty to Embezzling Social Security Funds from Deceased Customer’s AccountRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Jonnel Perkins, 43, of Philadelphia, PA, pleaded guilty to the charge of embezzlement by a bank employee.
According to court documents filed today, the defendant was employed as a Retail Relationship Banker at a bank located in Philadelphia. While she was employed in this position, the Social Security Administration (SSA) conducted a routine audit which identified that a customer of the bank branch where Perkins worked was likely deceased but still receiving monthly electronic benefits from the SSA. The SSA suspended the payments to this account, but due to regulation had to wait seven years before the approximately $200,000 in accumulated benefit overpayments by the SSA could be reclaimed.
In the months prior to the time when the reclamation could be initiated, between June and December 2019, Perkins withdrew all of the funds from this dormant account. A subsequent investigation determined that the customer whose account from which the defendant withdrew funds had been deceased since 1999. In total, Perkins plead guilty to embezzling $207,450 from the deceased customer’s account. With the embezzled funds, the defendant made large cash deposits into her personal bank accounts as well as large cash deposits at casinos in Philadelphia and Atlantic City, totaling over $200,000.
“Bank employees are trusted by their customers and employers to handle money with honesty and integrity,” said Acting U. S. Attorney Williams. “Here, the defendant stole hundreds of thousands of dollars while she was employed in a position of trust at a bank which managed the deceased victim’s account. Our Office will continue to investigate and prosecute this type of fraud in order to protect individual bank account holders and all American taxpayers who pay into the Social Security system.”
“We will continue to pursue those who would misuse Social Security funds for personal gain, particularly those in positions of trust,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I want to thank the FBI for their partnership, and the U.S. Attorney’s Office for its efforts to bring the charges that led to today’s guilty plea.”
“Jonnel Perkins stole money from someone she figured would never miss it,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “In draining that deceased customer’s account, though, she was ripping off the Social Security Administration and those actually entitled to its benefits. The FBI and our federal partners won’t stand for criminals cheating the U.S. government and the millions of taxpayers who fund it.”
The case was investigated the Social Security Administration – Office of the Inspector General and the Federal Bureau of Investigation, and is being prosecuted by Special Assistant United States Attorney Megan Curran.
Florida Man Sentenced After Fraudulently Obtaining $3.9 Million in PPP LoansRead the Press Release
A Florida man was sentenced today to more than six years in prison for fraudulently obtaining approximately $3.9 million in Paycheck Protection Program (PPP) loans and using those funds, in part, to purchase a $318,000 Lamborghini luxury car for himself.
David T. Hines, 29, of Miami, pleaded guilty to one count of wire fraud on Feb. 10. According to court documents, Hines submitted multiple PPP applications to a PPP-participating lender, claiming to have had dozens of employees and millions of dollars in monthly payroll. In addition to submitting false and fraudulent IRS forms to support the applications, Hines also assisted other individuals in obtaining fraudulent PPP loans. As part of the sentence, the court ordered Hines to forfeit the $3.4 million in fraudulent loan proceeds that law enforcement seized and the 2020 Lamborghini Huracan that Hines purchased for approximately $318,000.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Juan Antonio “Tony” Gonzalez of the Southern District of Florida; Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Office of Investigation’s Atlanta Regional Office; Inspector in Charge Joseph W. Cronin of the U.S. Postal Inspection Service’s Miami Division; Special Agent in Charge Amaleka McCall-Brathwaite of the U.S. Small Business Administration (SBA) OIG, Investigations Division, Eastern Regional Office; Acting Special Agent in Charge Tyler R. Hatcher of the IRS Criminal Investigation (IRS-CI) Miami Office; and Acting Special Agent in Charge Stephen Donnelly of the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection OIG, Eastern Region, made the announcement.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, and in December 2020, Congress authorized another $284 billion in additional funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The FDIC-OIG, U.S. Postal Inspection Service, IRS-CI, SBA-OIG, and the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection OIG investigated the case.
Trial Attorney Emily Scruggs of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael Berger of the Southern District of Florida prosecuted the case. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the CARES Act passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $60 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF web complaint form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Federal Judge Sentences Monroe, N.C. Man to 20 Years for Receipt and Possession of Child PornographyRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad handed down a 20-year prison term today to Joseph Craig Rabon, 37, of Monroe, N.C., for possession and receipt of child pornography, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. Rabon will also have to serve 30 years under supervised release and register as a sex offender after his term of incarceration.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins Acting U.S. Attorney Stetzer in making today’s announcement.
According to court filings, plea documents and statements made in court at today’s sentencing hearing, in August 2016, the FBI became aware that Rabon was using the internet to download child pornography. Court records show that Rabon used peer to peer software to access images and videos depicting the sexual abuse of children, including images portraying sadistic conduct and children under the age of 12. A forensic analysis of Rabon’s seized electronic devices revealed that he possessed more than 30 images and videos of child pornography.
Rabon was indicted by a federal grand jury in November 2018 and was subsequently released on bond. Court records show that, while on pretrial release, Rabon attempted to access and view pornography on the internet multiple times in violation of the Court’s terms and conditions of release. Court records also show that, after Rabon was taken into custody following his guilty plea, a minor victim came forward to report sexual abuse by Rabon over a five year period, which resulted in Rabon’s enhanced term of imprisonment today.
Rabon is currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the FBI for their investigation of this case.
Assistant U.S. Attorney Alfredo De La Rosa, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Federal Grand Jury Indicts West Seneca Man on Child Pornography and Obstruction of Justice 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 a federal grand jury has returned a five-count indictment charging Shawn Johnson, 33, of West Seneca, NY, with three counts of receipt of child pornography, one count of possession of child pornography, and one count of obstruction of justice. Each of the charges carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney David J. Rudroff, who is handling the case, stated that according to the indictment and a previously filed complaint, in September 2019, investigators discovered an IP address, traced to the defendant, attempting to download suspected child pornography using the internet. On December 2, 2019, the FBI obtained a search warrant for Johnson’s Angle Road residence. As investigators executed the search, they encountered the defendant standing in his bedroom smashing a laptop computer against the wall and trying to damage it. The laptop, which sustained serious damage, was sent to the FBI's Digital Forensics Analysis Unit Laboratory where much of the data was recovered. The hard drive was found to contain numerous images and videos of child pornography.
The defendant was arraigned before U.S. Magistrate Judge Michael J. Roemer and released on conditions.
The indictment is the result of an investigation by the by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Cheektowaga Police Department, under the direction of Chief Michael Sliwinski.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Federal Grand Jury Indicts Jamestown Man on Meth 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 a federal grand jury has returned an indictment charging Jun N. Martinez, 28, of Jamestown, NY, with narcotics conspiracy, possessing with intent to distribute methamphetamine, maintaining a premises for drug use and distribution, and possessing with intent to distribute methamphetamine on premises where an individual under 18 was present and resided. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorneys Joshua A. Violanti and Misha Coulson, who are handling the case, stated that according to the indictment and a previously filed criminal complaint against Martinez’s girlfriend and co-defendant Antasia Babcock, on October 16, 2020, the Jamestown Metro Drug Task Force executed a New York State search warrant at the Wescott Street residence they shared with their children. During that search, law enforcement officers seized one pound of suspected methamphetamine hydrochloride, drug paraphernalia, and approximately $62,000 in cash.
The indictment is the result of an investigation by the Jamestown Metro Drug Task Force, under the direction of Jamestown Police Chief Timothy Jackson, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Antasia Babcock has also been indicted in this case. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Federal Grand Jury Indicts Buffalo Man and Woman on Narcotics Conspiracy and Cocaine 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 that a federal grand jury has returned an indictment charging Jose A Solis-Pizarro, 35, and Mirelys Camacho Betancourt, 25, both of Buffalo, NY, with narcotics conspiracy and attempting to possess with intent to distribute cocaine. The charges carry a mandatory minimum penalty of 5 years in prison and a maximum of 40 years.
Assistant U.S. Attorney Caitlin M. Higgins, who is handling the case, stated that according to the indictment and a previously filed complaint, on February 1, 2021, investigators executed a search warrant on a USPS Priority Mail Parcel addressed to a residence on Parker Avenue in Buffalo. Inside the parcel was approximately one kilogram of suspected cocaine. On February 2, 2021, defendant Camacho Betancourt arrived at the Parker Avenue residence and asked the USPS mail carrier if he had a parcel, specifically an express/priority box. On February 3, 2021, at approximately 11:00 a.m., an investigator attempted to conduct a controlled delivery of the parcel but there was no answer from within the residence. While the investigator was attempting delivery of the parcel, defendant Solis-Pizarro exited a vehicle across the street and approached the investigator, indicating that he lived at the residence and that the parcel was intended for him. Solis-Pizarro took the parcel, walked to the side of the residence, then emerged and got back into his vehicle with the parcel. Solis-Pizarro was taken into custody at that time and the parcel was recovered from the vehicle. Buffalo Police Officers located Camacho Betancourt a short time later in the vicinity of Tacoma and Parker Avenues. She attempted to flee in her vehicle but was taken into custody.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division, the U.S. Postal Inspection Service, under the direction of Acting Boston Division Inspector-in-Charge Joshua W. McCallister, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Federal Arrest Made in Series of Threatening Hoax Calls to Omaha Area Schools and BusinessesRead the Press Release
Acting United States Attorney Jan Sharp announced that FBI agents arrested Andrew Isaac Abrams of Tucson, Arizona, today on a complaint charging Abrams with transmitting a series of threats in interstate commerce on April 23, 2021. The threats targeted Omaha area schools, including Millard Public Schools, Elkhorn Schools, and Westside Community Schools, and Abrams is further alleged to have made threats to Union Pacific Railroad Headquarters and the Douglas County Courthouse.
If convicted of transmitting the threats in interstate commerce, Abrams will face up to five years in prison, a $250,000 fine, and up to three years of supervised release for each count of conviction.
After Abrams’s arrest, FBI Omaha Special Agent in Charge Eugene Kowel said, “Hoax threats directed at schools and businesses cause fear and put people at risk. It’s not a joke, it's a crime. Hoax threats disrupt school, waste limited law enforcement resources, and put first responders in unnecessary danger. The FBI takes each threat seriously. We will always work along with our law enforcement partners to investigate, identify, and apprehend the perpetrators responsible for hoax threats like this one.”
This case was investigated by the Federal Bureau of Investigation, the Omaha Police Department, and the Douglas County Sheriff’s Office.
Dominican National Sentenced for Fentanyl and Heroin TraffickingRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for heroin and fentanyl possession and distribution charges.
Juan Santos Roque, 43, was sentenced by U.S. District Court Judge Richard G. Stearns to 63 months in prison and two years of supervised release. In October 2020, Santos Roque pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin and 400 grams or more of fentanyl and one count of possession with intent to distribute one kilogram or more of heroin and 400 grams or more of fentanyl.
In 2019, Santos Roque’s co-defendant, James De La Cruz, arranged for the sale of 10 kilograms of fentanyl and six kilograms of heroin to a confidential informant at a hotel in Peabody. On Oct. 21, 2019, Santos Roque and De La Cruz drove from New York and arrived separately at the meeting location. Santos Roque had stored 16 kilograms of heroin and fentanyl in a hidden compartment in his vehicle. When Santos Roque arrived at the hotel parking lot, he met with the confidential informant and handed over the 16 separate drug packages. Agents then took both men into custody.
De La Cruz pleaded guilty on May 7, 2021 and is scheduled to be sentenced on Oct. 6, 2021.
Acting United States Attorney Nathaniel R. Mendell and William S. Walker, Acting Special Agent in Charge, Homeland Security Investigations in Boston made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the Peabody Police Department. Assistant U.S. Attorney Stephen W. Hassink of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
Dominican National Sentenced for Fentanyl ConspiracyRead the Press Release
BOSTON – A Dominican national previously residing in Lawrence was sentenced today in federal court in Boston for fentanyl conspiracy charges.
Nieves Guzman, 34, was sentenced by U.S. District Court Judge Denise J. Casper to time served (approximately 18 months in prison). Guzman will be subject to deportation upon completion of his sentence. In January 2021, Guzman pleaded guilty to conspiracy to distribute and possession with intent to distribute 400 grams or more fentanyl.
On Nov. 2, 2019, investigators executed a search warrant at a suspected stash house in Lawrence associated with a drug organization and encountered Guzman, who had a kilogram brick of fentanyl in her purse. At the stash house, investigators also located various drug distribution paraphernalia, including a mixing bowl containing suspected fentanyl, sifters and blenders.
Two of Guzman’s co-defendants, Francis Jimenez Minyetty and Enmanuel Brioso Fabal, have pleaded guilty and are awaiting sentencing.
Acting United States Attorney Nathaniel R. Mendell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Assistant U.S. Attorney Lauren Graber of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
Dominican National Sentenced for Distributing FentanylRead the Press Release
BOSTON – A Dominican national previously residing in Methuen was sentenced yesterday in federal court in Boston to distributing fentanyl.
Milton Elias Lara, 42, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to time served (22 months in prison) and three years of supervised release. Lara will be deported to the Dominican Republic. In June 2020, Lara pleaded guilty to distribution of and possession with intent to distribute 40 grams or more of fentanyl.
During the course of an investigation, Lara was identified as a fentanyl distributor operating in the Merrimack Valley. A search of Lara’s apartment resulted in the seizures of approximately 289 grams of fentanyl, 24 grams of cocaine and drug packaging tools and materials.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Tewksbury Police Chief Timothy Sheehan made the announcement. Valuable assistance was provided by Homeland Security Investigations and the Andover, Billerica, Lawrence, Lowell, Methuen and North Andover Police Departments. Assistant U.S. Attorney Philip C. Cheng of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
Detroit Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. -- A Detroit, Michigan man pleaded guilty today to a federal drug crime.
According to court documents and statements made in court, Kaleb Wuopio, 26, was involved in a drug distribution enterprise operating in Kanawha County from April through June 2018. Wuopio admitted that he distributed fentanyl, heroin and cocaine base in exchange for cash during that timeframe. On June 21, 2018, law enforcement officers executed a search warrant on Wuopio’s Charleston residence. During the search, the officers located heroin, cash proceeds from drug sales, other drug distribution tools, such as scales, and two loaded handguns.
Wuopio pleaded guilty to possession with intent to distribute heroin and faces up to 20 years in prison when sentenced on August 19, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA) and the Kanawha County Sheriff’s Department. Assistant United States Attorneys Andrew J. Tessman and Negar M. Kordestani are handling the prosecution.
Senior United States District Judge John T. Copenhaver, Jr., presided over the hearing.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00115.
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Department of Treasury Designates Sinaloa-based Mexican Narcotics Trafficker Under the Foreign Narcotics Kingpin ActRead the Press Release
DENVER -- The U.S. Attorney’s Office for the District of Colorado today announced that the Department of Treasury has designated Jesus Gonzalez Penuelas and the Gonzalez Penuelas Drug Trafficking Organization (DTO) as Significant Foreign Narcotics Traffickers. The designation is pursuant to the Foreign Narcotics Kingpin Designation Act and serves to deter the drug trafficking organization’s use of the U.S. financial system to launder illicit proceeds derived from narcotics sales. In 2016, the U.S. Attorney’s Office first indicted Jesus Gonzalez Penuelas, charging him with trafficking heroin and cocaine to the United States. The U.S. Attorney’s Office obtained a superseding indictment in 2018, which included charges against Ignacio Gonzalez Penuelas, a key lieutenant in the drug trafficking organization and the brother of Jesus Gonzalez-Penuelas. In 2019, the U.S. Attorney’s Office also charged Adelmo Nunez Molina with various drug trafficking offenses. Nunez Molina is a raw opium gum source of supply for Jesus Gonzalez Penuelas. All the defendants are fugitives.
“Drug traffickers are often motivated by the potential profit from the illegal drug trade,” said Acting U.S. Attorney Matt Kirsch. “The sanctions associated with today’s Significant Foreign Narcotics Trafficker designations are a significant step towards preventing this DTO from profiting from its illegal drug trafficking.”
“These sanctions targeting Gonzalez Penuelas and his associates will go a long way to disrupting the heroin supply flowing across the Southwest Border,” said Deanne Reuter, Special Agent in Charge of DEA Denver Field Division. “DEA applauds the work of our partners in the United States Attorney’s Office and the Treasury Department in making it harder for Gonzalez Penuelas to commit these crimes that affect our communities.”
According to the announcement from the Department of Treasury, the Gonzalez Penuelas DTO operates primarily in Sinaloa and Sonora, Mexico, various ports of entry in the United States, as well as numerous United States-based distribution cells in Colorado, California, Texas, Washington, Utah, and Nevada. As a result of today’s designation, interests in property of the designated persons that are in the United States or in the possession or control of U.S. persons must be blocked and reported to the Treasury Department’s Office of Foreign Asset Control (OFAC). OFAC’s regulations generally prohibit all transactions by U.S. persons or persons within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons.
This matter was investigated by the Strike Force associated with the Denver Organized Crime Drug Enforcement Task Force (OCDETF). Assistant United States Attorneys Stephanie Podolak and Zackary Phillips are prosecuting this case.
This prosecution is part of an 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.
Case Nos. 16-cr-217-CMA and 19-cr-89-RBJ
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Defense Contractor Employee and O.C. Man Arrested on Complaint Alleging Theft and Sale of Government-Owned Technical OrdersRead the Press Release
SANTA ANA, California – Law enforcement today arrested an employee of a Department of Defense contractor on a criminal complaint alleging he unlawfully sold United States Air Force technical data to an Orange County man who then illegally resold the data to customers.
Sarfraz Yousuf, 43, of Miramar, Florida, was taken into federal custody this morning. Also arrested today was Marc Chavez, 53, of Trabuco Canyon.
Yousuf is expected to make his initial appearance in United States District Court in Fort Lauderdale, Florida. Chavez is expected to appear in federal court in Santa Ana. Each man is charged with one count of theft of government property.
According to an affidavit filed with the complaint, during an investigation into a U.S. Navy employee’s unlawful sale of government-controlled technical drawings to a Newport Beach-based company, Newport Aeronautical Sales Corp. (NASC), law enforcement discovered NASC also illegally obtained U.S. Air Force technical orders from the users of an email account used by Yousuf, an employee of Summit Aerospace Inc., a Miami-based aircraft maintenance company.
The technical orders at issue in this case are documents that cover installation, operation, maintenance, and handling of Air Force equipment and material, according to the affidavit.
During the investigation, law enforcement also discovered Chavez illegally acquired Air Force technical orders from Yousuf on behalf of LTC Products, a Trabuco Canyon-based company selling technical aerospace data that Chavez ran out of his home, the affidavit states.
From January 2015 to July 2020, Chavez allegedly unlawfully acquired at least 1,875 Air Force technical orders from Yousuf in exchange for at least $132,280. Yousuf was not authorized to sell the technical orders and Chavez was not authorized to receive them.
In June 2020, Yousuf allegedly sold 34 Air Force technical orders to Chavez, including one marked with a distribution statement reserved for “technical data of such military significance that release…may jeopardize an important technological or operational military advantage of the United States” and containing overhaul instructions related to a “Rate Gyro Assembly Flight Control,” for $2,170. Chavez allegedly resold the orders to customers for a profit.
If convicted, the defendants would face a statutory maximum sentence of 10 years in federal prison.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
In a related case, Mark Fitting, 54, of Berlin, New Jersey, an engineer employed by the Navy at a facility in Philadelphia, pleaded guilty in December 2020 to one count of conspiracy to steal government property and one count of aiding and abetting the theft of government property. Fitting admitted in his plea agreement that he downloaded technical drawings and manuals related to U.S. military weapons systems and sold the items to NASC, which later resold the documents to domestic and foreign customers. Fitting’s sentencing hearing is scheduled for October 18 in Santa Ana.
This case is being investigated by the Defense Criminal Investigative Service; the Naval Criminal Investigative Service; Homeland Security Investigations; the Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement; U.S. Air Force Office of Special Investigations; and U.S. Army Criminal Investigation Command.
Assistant United States Attorney Keith D. Ellison of the International Narcotics, Money Laundering, and Racketeering Section is prosecuting this case.
Dark Web Vendor of Opioids and Counterfeit U.S. Currency Pleads GuiltyRead the Press Release
ALEXANDRIA, Va. – A Utica, New York man pleaded guilty yesterday to charges relating to his sale of over $1.2 million in opioid pills and counterfeit U.S. currency on multiple dark web criminal marketplaces.
According to court documents, from around October 2016 through February 2021, Albie Pagan, 65, operated under the moniker H00k3d on various dark web markets, including AlphaBay, Apollon, Avaris, Cryptonia, Dark Market, Darkode, Dream, Nightmare, and Wall Street. Pagan, as H00k3d, advertised prescription opioids and medications for sale, including oxycodone, hydromorphone, hydrocodone, and Adderall, as well as counterfeit $10 and $20 bills. Pagan mailed these online-purchased narcotics and counterfeit currency to individuals across the country.
“The defendant illegally distributed over $1.2 million of highly addictive opioids and counterfeit currency while attempting to operate anonymously on dark web marketplaces,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Those who seek to profit by using the dark web to fuel a devastating opioid crisis that has ravaged our communities will be found and brought to justice.”
On Wall Street alone, Pagan sold over $325,000 in counterfeit U.S. currency, and his gross proceeds for the sale of narcotics and counterfeit currency was at least $1,011,079. On AlphaBay, Pagan’s gross proceeds for narcotics sales was at least $90,399. A review of H00k3d’s sales on Dark Market revealed 475 voluntary customer-rated orders reflecting purchases for several illicit items, including 3,293 hydrocodone, 2,250 oxycodone, and 382 hydromorphone pills. On Dark Market, Pagan’s gross proceeds for narcotics and counterfeit currency exceeded $131,948 based on reviewed transactions.
Pagan pleaded guilty to distribution of controlled substances and selling counterfeit currency. He is scheduled to be sentenced on August 24 and faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division; Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Matthew S. Miller, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea.
Assistant U.S. Attorney Bibeane Metsch is prosecuting the case.
This investigation was conducted by the FBI Washington Field Office’s Hi-Tech Opioid Task Force, which is composed of FBI agents and task force partners, including special agents and officers of the Food and Drug Administration’s Office of Criminal Investigations, DEA, U.S. Postal Inspection Service, and detectives from local assisting police agencies. The task force is charged with identifying and investigating the most egregious Dark Web marketplaces, and the vendors operating on the marketplaces who are engaged in the illegal acquisition and distribution of controlled substances, to include fentanyl, methamphetamine, and other opioids.
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. 1:21-cr-95.
Dane County Man Charged with Distributing Child PornographyRead the Press Release
MADISON, WIS. – A Dane County man is charged with 2 counts of distributing child pornography in an indictment returned today by a federal grand jury sitting in Madison, according to Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin.
Brett Blomme, 40, Cottage Grove, Wisconsin, is charged with 2 counts of distributing a visual depiction of a minor engaging in sexually explicit conduct. The indictment alleges that on October 30 and November 1, 2020, Blomme sent a file containing an image of child pornography to another user via Kik Messenger.
At the time of the offenses alleged in the indictment, Blomme was a judge with the Milwaukee County Children’s Court.
If convicted, Blomme faces a mandatory minimum penalty of 5 years and a maximum of 20 years in federal prison on each count.
The charges against him are the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation. Assistant U.S. Attorney Chadwick Elgersma is handling the prosecution.
You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Colombian Drug Kingpin Pleads Guilty to Running a Continuing Criminal Enterprise, Agrees to Pay $20 Million in ForfeitureRead the Press Release
Roman Narvaez Ansazoy, the founder and principal leader of an international drug trafficking enterprise based in Colombia, pleaded guilty today in federal court in Brooklyn to leading a continuing criminal enterprise as charged in a superseding indictment. When sentenced, Narvaez will face a mandatory minimum term of 20 years in prison and up to life in prison. As part of the plea agreement, Narvaez also agreed to pay a $20 million forfeiture money judgment. The proceeding was held before United States Magistrate Judge Robert M. Levy.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), Dermot F. Shea, Commissioner, New York City Police Department (NYPD), and Kevin P. Bruen, Acting Superintendent, New York State Police (NYSP), announced the guilty plea.
“With today’s guilty plea, the defendant will face significant punishment for the incalculable harm caused by poisoning our country with huge quantities of cocaine produced by his drug trafficking organization, while amassing substantial illicit wealth for himself,” stated Acting U.S. Attorney Lesko. “The United States is committed to cooperating with our international partners to dismantle illicit organizations like the Narvaez drug trafficking organization.” Mr. Lesko extended his grateful appreciation to the DEA’s offices in Bogota, the United States Marshals Service, the United States Department of State, the Department of Justice’s Office of International Affairs, the Colombian National Police, and the Government of Colombia.
“Ansazoy was admittedly a multi-ton supplier of cocaine with ties to narco-terrorist organizations. His arrest and plea are another victory for the Rule of Law and the victims of drug abuse, misuse, and overdoses. I applaud our global, state, local, and federal partners whose work resulted in today’s announcement,” stated DEA Special Agent-in-Charge Donovan.
“I commend the dedicated teamwork of the New York Organized Crime Drug Enforcement Strike Force which was instrumental in the takedown of this dangerous drug trafficker and bringing him to justice. This partnership of federal, state and local law enforcement continues to prevent dangerous narcotics making their way into our communities and helping to remove the violent criminals who profit at the expense of our communities. We are committed to working together with our law enforcement partners to keep these harmful narcotics off our streets and our neighborhoods safe,” stated NYSP Acting Superintendent Bruen.
As set forth in the superseding indictment and court filings, the drug trafficking organization led by Narvaez was responsible for producing multi-ton quantities of cocaine, on a monthly basis, in jungle laboratories in the Cauca region of Colombia. At its peak, the Narvaez drug trafficking organization was one of the top producers of cocaine in Colombia. After producing the cocaine, members of the Narvaez drug trafficking organization transported the cocaine to Colombian ports on the Pacific Ocean so that it could be exported from Colombia by sea. In transporting the cocaine from the jungle areas of Cauca to port cities, members and associates of the Narvaez drug trafficking organization paid money to paramilitary groups that controlled these areas in exchange for safe passage. One of the paramilitary groups that the Narvaez drug trafficking organization paid was the Revolutionary Armed Forces of Colombia (“FARC”), a designated Foreign Terrorist Organization. The vast majority of the cocaine that the Narvaez drug trafficking organization delivered was destined for the United States.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level money launderers 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.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Francisco J. Navarro and Gillian A. Kassner are in charge of the prosecution.
The Defendant:
ROMAN NARVAEZ ANSAZOY
Age: 46
Cauca, ColombiaE.D.N.Y. Docket No. 14-CR-048 (S-1) (BMC)
Clearfield County Woman Sentenced to Prison for Preparing False Tax Returns, Falsifying Court DocumentsRead the Press Release
PITTSBURGH - A resident of Frenchville, Pennsylvania, has been sentenced in federal court to 27 months’ imprisonment and one year supervised release on her convictions of aiding and assisting in the preparation or filing of a false income tax return and criminal contempt and false statement to the government, Acting United States Attorney Stephen R. Kaufman announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Kathy Billotte, age 60, of Frenchville, Clearfield County, Pennsylvania.
According to information presented to the court, Billotte was a tax return preparer and operated a tax return preparation business known as "K B Tax Services" in Clearfield County. She falsified annual income tax returns prepared for at least 15 individuals during the period 2013 through 2017, ensuring the individuals received tax refunds to which they were not entitled. Specifically related to the offense to which she pleaded guilty, Billotte prepared and filed on February 26, 2016, a 2015 federal income tax return for a tax payer identified as "T.G." on which she falsely and fraudulently reported that he/she operated a private business and incurred business expenses, as well as inflated unreimbursed business expenses and charitable donations. The total tax loss to the Internal Revenue Service for all 15 clients was $193,102.15, including interest, and the court ordered Billotte to repay the Internal Revenue Service in full.
While the criminal tax case was pending, Billotte, who had a 1999 felony conviction for fraudulently obtaining U.S. Postal Money Orders, falsified court documents allowing her to serve on a federal grand jury. During her service, it was discovered that she was improperly sharing information that had come before the grand jury.
Prior to imposing sentence, Judge Schwab stated that Billotte’s conduct was particularly egregious in that she methodically and repeatedly defeated the tax system and then, after being federally charged, she continued to engage in unrelated criminal conduct during which she shared secret grand jury information that could have brought harm to both grand jury witnesses and law enforcement officers.
Assistant United States Attorneys Carolyn J. Bloch and Cindy K. Chung prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation for the investigations leading to the successful prosecution of Billotte.
Cheshire Investment Advisor Admits Stealing More Than $600K from Elderly ClientRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that MATTHEW O. CLASON, 39, of Cheshire, waived his right to be indicted and pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of wire fraud related to his misappropriation of more than $600,000 from an investment client.
According to court documents and statements made in court, Clason was an investment advisor and a registered representative of Lincoln Financial Advisors Corporation, and then LPL Financial LLC. Beginning in approximately 2015, Clason provided investment services to a 73-year-old Connecticut resident (“the victim”). The victim had at least five investments accounts with Clason and, in January 2018, Clason and the victim opened a joint bank account. From 2018 to August 2020, Clason transferred more than $668,000 from the victim’s investment accounts into the joint bank account and, without the victim’s knowledge or authorization, withdrew more than $621,000 in cash from the bank account for his personal use. Clason also transferred $5,000 directly from the joint bank account to his personal bank account, and made two transfers from the joint bank account to pay his personal credit card.
Judge Shea scheduled sentencing for August 5, 2021, at which time Clason faces a maximum term of imprisonment of 20 years.
Clason is released on bond pending sentencing.
This matter is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Heather L. Cherry.
The Justice Department has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud. The Hotline is staffed by experienced case managers who can provide personalized support to callers. Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll-free number is 833-FRAUD-11 (833-372-8311).
Charlotte Man Is Sentenced to Nine Years for Possession of A Stolen FirearmRead the Press Release
CHARLOTTE, N.C. – Reggie Pettus, 25, of Charlotte, was sentenced today to nine years in prison and three years of supervised release for possession of a firearm by a felon, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
Vincent C. Pallozzi, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte-Mecklenburg Police Department join Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents and today’s sentencing hearing, in the early morning hours on September 18, 2019, Pettus approached a victim, identified in court documents as “MDS,” in front of the Epicenter in Charlotte, and took the victim’s gold chain from around his neck. At the time of the robbery, Pettus was in possession of a KelTec .380 caliber handgun. Law enforcement later determined the firearm had been stolen in Broward County, Florida. As described in court documents, MDS chased Pettus in an attempt to retrieve his necklace. Following a brief fight with the victim, Pettus brandished the stolen firearm and ran away. According to court documents, sometime soon thereafter, the victim saw Pettus on the street and shouted at him. Pettus fired three shots at the victim using the stolen firearm and then ran into the Epicenter garage. CMPD officers responding to the incident arrested Pettus after the victim saw Pettus again walking near the Epicenter and identified him as the person who had stolen his necklace.
Pettus is currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the ATF and CMPD for their investigation of this case.
Assistant U.S. Attorney Michael Savage, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
California Private Equity Executive Sentenced in College Admissions CaseRead the Press Release
BOSTON – A former senior executive at TPG Capital, a global private equity firm, was sentenced today in connection with his involvement in the college admissions case.
William E. McGlashan, Jr., 57, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to three months in prison, two years of supervised release, a fine of $250,000 and 250 hours of community service. On Feb. 10, 2021, McGlashan agreed to plead guilty to one count of wire fraud and honest services wire fraud.
In 2017, McGlashan, the former managing partner of TPG Growth and co-founder of The Rise Fund, agreed to pay co-conspirator William “Rick” Singer to bribe Igor Dvorskiy, a corrupt test administrator, to allow Mark Riddell, a corrupt test “proctor,” to secretly correct McGlashan’s son’s ACT exam answers to obtain a fraudulently inflated score. As a result, McGlashan’s son received a fraudulent ACT score of 34. McGlashan made a purported donation of $50,000 from his personal charitable donation fund to Singer’s sham charity. In turn, Singer paid Dvorskiy and Riddell.
Singer, Dvorskiy, and Riddell have pleaded guilty for their respective roles in the scheme.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Karin M. Bell and Stephen E. Frank of Mendell’s Criminal Division prosecuted the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
CEO of Private Equity Fund Charged in Manhattan Federal Court with Lying to Bank to Secure $95 Million LoanRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that ELLIOT SMERLING was indicted this morning on charges of wire fraud, bank fraud, and aggravated identity theft for seeking and obtaining an approximately $95 million subscription-backed line of credit for his $500 million private equity fund on the basis of a forged audit letter, falsified subscription agreements, and falsified bank account statements.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Elliot Smerling went to elaborate measures to create a blatantly false picture of the financial underpinnings of a private equity fund in order to obtain a $95 million line of credit. Through a forged audit letter and falsified subscription agreements and bank statements, Smerling allegedly induced a California bank to make a loan commitment it never would have made had it known the truth. Now, the truth has landed Elliot Smerling in federal court.”
FBI Assistant Director William F. Sweeney Jr. said: “Falsifying information in order to secure a loan, regardless of the amount, is a crime. When the loan secured is nearly $100 million, the stakes are even higher. As alleged, Smerling engaged in illegal practices in order to benefit his interests. Today he’s learned the consequences of his alleged actions.”
According to the Indictment filed today in Manhattan federal court, and the Complaint[1] unsealed February 26, 2021, in the Southern District of Florida:
From at least in or about December 2020 through at least in or about February 2021, ELLIOT SMERLING, the defendant, solicited and obtained on behalf of the general partner (“General Partnership-1”) of a private equity fund (“Private Equity Fund-1”), a loan of approximately $95 million from a commercial bank headquartered in California (“Victim Bank-1”), which was secured by purported capital commitments made by the limited partnership of investors in Private Equity Fund-1 (“Limited Partnership-1”). SMERLING obtained the approximately $95 million loan on the basis of falsified documents and material misrepresentations, including: (1) a forged audit letter, purportedly prepared by an international network of accounting, audit, tax, and professional services firms (“Audit Firm-1”), attesting to the audited financial statements of Limited Partnership-1; (2) forged subscription agreements that falsely represented that the investment fund of a private university based in New York, New York (“University Endowment Fund-1”), and the chief investment officer of that fund (“Chief Investment Officer-1”) had committed $45 million to fund Limited Partnership-1, and that the investment management division of a banking and financial services firm headquartered in New York, New York (“Investment Manager-1”), and the chief executive officer of Investment Manager-1 had committed $40 million to fund Limited Partnership-1; and (3) falsified bank records purporting to attest to a $4.5 million wire transfer from University Endowment Fund-1 to Limited Partnership-1.
On or around December 1, 2020, SMERLING contacted an employee of Victim Bank-1 concerning SMERLING’s interest in acquiring an approximately $95 million loan for SMERLING’s $500 million private equity fund, Limited Partnership-1. The loan sought by SMERLING would substitute for an existing line of credit SMERLING had secured from a multinational financial services company (“Commercial Bank-1”), where Limited Partnership-1 purported to have an existing line of credit with an outstanding loan balance equal to the amount sought by SMERLING from Victim Bank-1. The employee of Victim Bank-1 referred SMERLING to a director in the Global Fund Banking Group at Victim Bank-1 (“Witness-1”).
Thereafter, in or around December 2020, Witness-1 requested from SMERLING materials concerning Limited Partnership-1 and General Partnership-1 in order to evaluate SMERLING’s loan request. In response, SMERLING sent Victim Bank-1 materially false materials, the veracity of which Victim Bank-1 relied upon in ultimately deciding to make the loan sought by SMERLING, including:
i. An audit letter (the “Audit Letter”), purportedly prepared by Audit Firm-1, attesting to the sound finances of Limited Partnership-1.
ii. Subscription agreements purportedly signed by investors in the fund, including an agreement reflecting a purported commitment of $45 million by University Endowment Fund-1 and the purported signature of Chief Investment Officer-1 (“Subscription Agreement-1”), and an agreement reflecting a purported commitment of $40 million by Investment Manager-1 and the purported signature of the chief executive officer of Investment Manager-1 (“Subscription Agreement-2”).
iii. A table (the “Capital Commitment Table”) listing $500 million in paid and unpaid capital commitments purportedly made to Limited Partnership-1 as of December 13, 2019, including a purported $45 million commitment by University Endowment Fund-1, consisting of a “call amount” of $4.5 million and an “unpaid commitment” of $40.5 million as of that date, as well as a purported $40 million commitment by Investment Manager-1, consisting of a “call amount” of $4 million and an “unpaid commitment” of $36 million as of that date.
Following receipt of the materials, employees of Victim Bank-1, including at least one employee based in Victim Bank-1’s office in New York, New York, reviewed the materials as part of Victim Bank-1’s diligence process.
On or around January 7, 2021, Witness-1 wrote an email to the chief financial officer of Private Equity Fund-1, with a copy to SMERLING, in which Witness-1, in substance and in part, advised that Victim Bank-1 was in the process of finalizing its approvals for the loan. Witness-1 requested bank statements “evidencing receipt of the most recent capital call.” On the same date, SMERLING replied with an email to which he attached a December 2019 bank statement (the “Bank Statement”) for an account purportedly held in the name of Limited Partnership-1 at Commercial Bank-1’s Americas headquarters in New York, New York. The statement reflected wires into the account with a combined value of $50 million, including a purported wire of $4.5 million from University Endowment Fund-1 and a purported wire of $4 million from Investment Manager-1.
The materials that SMERLING submitted to Victim-Bank-1 were materially false. For example, the Audit Letter was not prepared by Audit Firm-1. Chief Investment Officer-1 of the University Endowment Fund-1 has no knowledge of ELLIOT SMERLING, Limited Partnership-1, or General Partnership-1, and the signature appearing on the Subscription Agreement-1 is not that of Chief Investment Officer-1. University Endowment Fund-1 has found no indication that it made the $4.5 million wire transfer reflected in the Bank Statement or made any other investment or capital commitment to ELLIOT SMERLING, the defendant, Limited Partnership-1, or General Partnership-1.
Similarly, Investment Manager-1 has found no indication that Investment Manager-1 in fact made the $4 million wire transfer reflected in the Bank Statement or made any other investment or capital commitment to ELLIOT SMERLING, the defendant, Limited Partnership-1, or General Partnership-1.
SMERLING was arrested and presented in the Southern District of Florida on February 26, 2021, before United States Magistrate Judge William Matthewman.
* * *
SMERLING, 52, of Lake Worth, Florida, is charged in three counts, with wire fraud, bank fraud, and aggravated identity theft. Wire fraud affecting a financial institution carries a maximum sentence of 30 years in prison, and a maximum fine of $1 million or twice the gross gain or loss from the offense. Bank fraud carries a maximum sentence of 30 years in prison, and a maximum fine of $1 million or twice the gross gain or loss from the offense. Aggravated identity theft carries a mandatory sentence of two years in prison consecutive to any other sentence imposed and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentences 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 work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Jilan J. Kamal and Timothy V. Capozzi are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the Indictment and the Complaint, and the descriptions of the Indictment and the Complaint set forth in this release, constitute only allegations, and every fact described should be treated as an allegation.
Browning man sentenced to prison for distributing methamphetamine on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS – A Browning man who admitted distributing methamphetamine on the Blackfeet Indian Reservation was sentenced today to 20 months in prison and to four years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Dakoda Blu Wade Iron Shirt, 28, pleaded guilty on Feb. 4 to distribution of meth.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that in August 2019, a confidential source working with the Drug Enforcement Administration and the FBI bought about a half ounce of meth from Iron Shirt in a controlled purchase. Additional witnesses identified Iron Shirt as a meth distributor on the Blackfeet Indian Reservation.
Assistant U.S. Attorney Ethan R. Plaut prosecuted the case, which was investigated by the Drug Enforcement Administration, FBI, Cut Bank Police Department, Big Sky Safe Trails Task Force and Blackfeet Law Enforcement Services.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Brooklyn Man Sentenced in Manhattan Federal Court to 20 Years in Prison for Attempting to Provide Material Support to ISISRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, John C. Demers, Assistant Attorney General for National Security, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Dermot Shea, the Commissioner of the Police Department for the City of New York (“NYPD”), announced that ZACHARY CLARK, a/k/a “Umar Kabir,” a/k/a “Umar Shishani,” a/k/a “Abu Talha,” was sentenced today to 20 years in prison, for attempting to provide material support to the Islamic State of Iraq and al-Sham (“ISIS”). CLARK pled guilty on August 10, 2020, in Manhattan federal court before U.S. District Judge Naomi Reice Buchwald, who sentenced Clark today.
U.S. Attorney Audrey Strauss said: “Zachary Clark pledged allegiance to ISIS and posted calls for attacks on the public and institutions in New York City on encrypted pro-ISIS chatrooms, along with detailed instructions for carrying out those violent acts. Thanks to the Joint Terrorism Task Force, Clark’s efforts to incite deadly violence on behalf of ISIS have been silenced. Today’s sentence sends a clear message that those who seek to further ISIS’s campaign of terror and violence, no matter the method, will face serious consequences.”
Assistant Attorney General John C. Demers said: “Today’s 20-year sentence recognizes the gravity of Clark’s conduct, including his calls for other ISIS supporters to carry out lone wolf terrorist attacks in New York City. Having pledged allegiance to ISIS, Clark provided others with specific instructions on knifing and bomb-making for use in such attacks. We remain vigilant to the threat of terrorism and committed to identifying and holding accountable those who threaten our communities through their support for foreign terrorist organizations.”
FBI Assistant Director William F. Sweeney Jr. said: “Zachary Clark will no longer spend his time in chat rooms supporting terrorist ideals, but behind bars in federal prison for the next 20 years. The successful ending in this case is a result of the dedication of the FBI’s JTTF here in New York and our partners around the world. We will continue to work together to protect the people of New York from anyone who wishes to do us harm.”
NYPD Commissioner Dermot Shea said: “Zachary Clark, using encrypted social media platforms became the facilitator for the voice of ISIS in America. He controlled a private channel, communicating with ISIS followers, posting terrorist attack manuals and bomb making instructions and making statements in support of suicide attacks. He also affirmed his own ambitions of becoming a martyr for ISIS on US soil. His arrest comes out of the tight-knit partnership of the Joint Terrorism Task force agents and detectives as well as the NYPD’s Intelligence Bureau. It is another example---among many---of protecting New York City from terrorist violence through intelligence sharing, joint investigation, and prosecution, which results in prevention.”
According to the Indictment, Complaint, other court filings, and statements made during court proceedings:
CLARK pledged allegiance to ISIS twice, first in July 2019, to ISIS’s then-leader Abu Bakr al-Baghdadi, and then in October 2019, to ISIS’s new leader, Abu Ibrahim al-Sashemi al-Qurayshi, whom ISIS promoted after al-Baghdadi’s death. Beginning in at least March 2019, CLARK disseminated ISIS propaganda through, among other avenues, encrypted chatrooms intended for members, associates, supporters, and potential recruits of ISIS. CLARK’s propaganda included, among other things, calls for ISIS supporters to commit lone wolf attacks in New York City. For example, on August 3, 2019, CLARK posted instructions about how to conduct such an attack, including directions on how to select an attack target, how to conduct preoperational surveillance, how to conduct operational planning, and how to avoid attracting law enforcement attention when preparing for and conducting the attack. On another occasion, CLARK posted a manual entitled “Knife Attacks,” which stated, among other things, that discomfort at “the thought of plunging a sharp object into another person’s flesh” is “never an excuse for abandoning jihad” and that “[k]nives, though certainly not the only weapon for inflicting harm upon the kuffar [non-believers], are widely available in every land and thus readily accessible.” CLARK urged the participants in encrypted chatrooms to attack specific targets, posting maps and images of the New York City subway system and encouraging ISIS supporters to attack those locations. CLARK’s guidance also included posting a manual entitled “Make a bomb in the kitchen of your Mom,” which was issued by al-Qaeda in the Arabian Peninsula and included detailed instructions about constructing bombs using readily available materials.
* * *
In addition to his prison sentence, CLARK, 42, of Brooklyn, New York, was sentenced to lifetime supervised release.
Ms. Strauss praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies. Ms. Strauss also thanked the Counterterrorism Section of the Department of Justice’s National Security Division.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Gillian Grossman, Matthew Hellman, and Sidhardha Kamaraju are in charge of the prosecution, with assistance from Trial Attorneys Jason Denney, Justin Sher, and Chad Davis of the National Security Division’s Counterterrorism Section.
Bronx, New York, Woman Admits Fraudulently Obtaining over $200,000 Worth of iPhonesRead the Press Release
NEWARK, N.J. – A Bronx woman today admitted fraudulently obtaining over $200,000 worth of Apple iPhones, Acting U.S. Attorney Rachael A. Honig announced.
Rosanna Lucrecia Cruel Blanco, 39, of Bronx, New York, pleaded guilty by videoconference before U.S. District Judge Clair C. Cecchi to an information charging her with one count of conspiracy to commit mail fraud.
According to documents filed in this case and statements made in court:
From December 2017 to January 2020, Blanco and her conspirators devised a scheme to fraudulently obtain replacement cellular phones from an insurance company – Company 1 – by assuming the identities of wireless customers and filing false claims under Company 1’s handset insurance program. The handsets were predominantly Apple iPhones with a value of approximately $700 to $1,000 per handset.
Blanco and her conspirators contacted Company 1, posed as legitimate customers, and submitted false claims to Company 1 for damage, theft, or loss on hundreds of handsets owned by the customers. Blanco and her conspirators provided Company 1 with false identification – typically a fake New York or New Jersey driver’s license falsified to reflect the name of the legitimate customer. They also provided Company 1 with new shipping contact names and addresses that were different from the actual customer names and addresses. The new shipping addresses included locations in the Bronx, Yonkers, White Plains, Manhattan, and various locations in New Jersey.
Based on the false claims and the fake identifications, Company 1 shipped the replacement cellular telephones via UPS or FedEx to the new contact names and addresses provided by Blanco and her conspirators. The shipped Apple iPhones were then picked up by Blanco and her conspirators. More than 100 replacement cellular telephones were shipped to Blanco and her conspirators and total losses exceeded $200,000.
The charge of conspiracy to commit mail fraud carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense, whichever is greater. Sentencing is scheduled for Oct. 5, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Bristol Man Admits Illegally Possessing Loaded HandgunRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that XAVIER CRUZ, 26, of Bristol, pleaded guilty yesterday before U.S. District Judge Janet B. Arterton in New Haven to possession of a firearm by a felon.
According to court documents and statements made in court, on September 5, 2020, law enforcement found a backpack containing a loaded Smith and Wesson semiautomatic handgun in a parking lot in a residential area of Bristol. The handgun’s serial number had been removed. Investigators subsequently determined that Cruz had possessed the firearm before discarding it.
Prior to September 2020, Cruz sustained felony convictions in state court for controlled substance offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Judge Arterton scheduled sentencing for August 3, 2021, at which time Cruz faces a maximum term of imprisonment of 10 years.
Cruz is released on a $100,000 bond pending sentencing.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Bristol Police Department. The case is being prosecuted by Assistant U.S. Attorneys Tara Levens and Margaret Donovan.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.