Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 28 April 2021
Two Huntsville Men Charged with Multiple Robberies in North AlabamaRead the Press Release
HUNTSVILLE, Ala. – A federal grand jury returned a 24-count indictment yesterday, charging two Huntsville men with committing a string of armed robberies across North Alabama, announced U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Johnnie Sharp, Jr.
According to the indictment, between August and October of 2019, Terrence Warren Jackson, 43, and Deonte Marquish Eddins, 25, committed 11 armed robberies at businesses across North Alabama. Jackson and Eddins robbed Family Dollar, Dollar General, MetroPCS, Verizon Wireless, and two GameStop stores. In a span of six days in October 2019, Jackson robbed Verizon Wireless, Marco’s Pizza, MetroPCS, and two GameStop stores. The indictment also charges the pair with brandishing a firearm and being felons in possession of a firearm.
The Hobbs Act prohibits actual or attempted robbery that affects interstate commerce and that involves the taking of property from another person by means of actual or threatened force or violence. If convicted of a Hobbs Act Robbery, the defendants face a maximum of 20 years in prison. If convicted of brandishing a firearm during and in relation to a violent crime, the defendants face a mandatory minimum of seven years in prison per count, to be served consecutively to any other sentence imposed for the crime. If convicted of being a felon in possession of a firearm, the defendants face a maximum of ten years in prison.
The FBI Violent Crimes Task Force, assisted by local law enforcement, investigated the case. Assistant U.S. Attorney Mary Stuart Burrell is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Two Huntsville Men Charged with Multiple Robberies in North AlabamaRead the Press Release
HUNTSVILLE, Ala. – A federal grand jury returned a 24-count indictment yesterday, charging two Huntsville men with committing a string of armed robberies across North Alabama, announced U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Johnnie Sharp, Jr.
According to the indictment, between August and October of 2019, Terrence Warren Jackson, 43, and Deonte Marquish Eddins, 25, committed 11 armed robberies at businesses across North Alabama. Jackson and Eddins robbed Family Dollar, Dollar General, MetroPCS, Verizon Wireless, and two GameStop stores. In a span of six days in October 2019, Jackson robbed Verizon Wireless, Marco’s Pizza, MetroPCS, and two GameStop stores. The indictment also charges the pair with brandishing a firearm and being felons in possession of a firearm.
The Hobbs Act prohibits actual or attempted robbery that affects interstate commerce and that involves the taking of property from another person by means of actual or threatened force or violence. If convicted of a Hobbs Act Robbery, the defendants face a maximum of 20 years in prison. If convicted of brandishing a firearm during and in relation to a violent crime, the defendants face a mandatory minimum of seven years in prison per count, to be served consecutively to any other sentence imposed for the crime. If convicted of being a felon in possession of a firearm, the defendants face a maximum of ten years in prison.
The FBI Violent Crimes Task Force, assisted by local law enforcement, investigated the case. Assistant U.S. Attorney Mary Stuart Burrell is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Two Former Chick-fil-A Employees Indicted for Scheme to Steal FundsRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury yesterday indicted two former employees of a Birmingham-area Chick-fil-A restaurant franchise, alleging that they conspired to defraud their former employer, announced U.S. Attorney Prim F. Escalona and U.S. Secret Service Special Agent in Charge Patrick M. Davis.
A 16-count indictment filed in U.S. District Court charges Larry James Black, Jr., 37, of Center Point, the former Director of Hospitality at Chick-fil-A Five Points, and Joshua Daniel Powell, 40, of Moody, a former Manager at the same location, with conspiracy to commit wire fraud and wire fraud. Black was also charged with bank fraud and misuse of a social security number.
According to the indictment, Black and Powell devised and implemented a scheme to divert hundreds of thousands of dollars in customer payments between April 2018 and January 2020. Black and Powell used fraudulent email and digital payment accounts to trick customers and divert payments for catering orders and other restaurant sales to bank accounts under their personal control.
Before and during this period, Black is also alleged to have made a series of fraudulent representations to financial institutions. In January 2020, for example, Black applied for a mortgage loan. In connection with his loan application, Black forged payroll records and made misrepresentations regarding his income from the Chick-fil-A franchise. Black also provided a fictitious social security number to banks and credit unions where he held accounts. Ultimately, proceeds from the scheme to defraud Chick-fil-A Five Points were deposited into accounts at these same financial institutions.
If convicted, Black and Powell face a maximum sentence of 20 years in prison for conspiracy to commit wire fraud, and a maximum of 20 years in prison for wire fraud. Black also faces a maximum of 30 years in prison for bank fraud, and a maximum of five years in prison for misuse of a social security number.
The U.S. Secret Service Cyber Fraud Task Force investigated the case, which Assistant U.S. Attorney Edward J. Canter is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Three Georgia men charged with federal hate crimes and attempted kidnapping in connection with the death of Ahmaud ArberyRead the Press Release
USA v. McMichael et al - indictment CR221-022 USA v. McMichael et al - indictment CR221-022 USA v. McMichael et al - penalty cert CR221-022 WASHINGTON - Three Georgia men were indicted today by a federal grand jury in the Southern District of Georgia and charged with hate crimes and the attempted kidnapping of Ahmaud Arbery. The indictment also charges two of the men with separate counts of using firearms during that crime of violence.Travis McMichael, 35; Travis’s father, Gregory McMichael, 65; and William “Roddie” Bryan, 51, were each charged with one count of interference with rights and with one count of attempted kidnapping. Travis and Gregory McMichael were also charged with one count each of using, carrying, and brandishing—and in Travis’s case, discharging—a firearm during and in relation to a crime of violence.
Counts One and Two of the indictment allege that the defendants used force and threats of force to intimidate and interfere with Arbery’s right to use a public street because of his race. Specifically, Count One of the indictment alleges that as Arbery was running on a public street in the Satilla Shores neighborhood of Brunswick, Georgia, Travis and Gregory McMichael armed themselves with firearms, got into a truck, and chased Arbery through the public streets of the neighborhood while yelling at him, using their truck to cut off his route, and threatening him with firearms. Count One also alleges that the offense resulted in Arbery’s death. Count Two alleges that William “Roddie” Bryan joined the chase and used his truck to cut off Arbery’s route.
In addition to the hate-crime charges, Count Three alleges that all three defendants attempted to unlawfully seize and confine Arbery by chasing after him in their trucks in an attempt to restrain him, restrict his free movement, corral and detain him against his will, and prevent his escape. Counts Four and Five allege that during the course of the crime of violence charged in Count One, Travis used, carried, brandished, and discharged a Remington shotgun, and Gregory used, carried, and brandished a .357 Magnum revolver.
All three defendants have also been charged in a separate state proceeding with malice murder, felony murder, aggravated assault, false imprisonment, and criminal attempt to commit a felony. No trial date has been set for the state case.
The announcement was made by Principal Deputy Assistant Attorney General Pamela S. Karlan of the Civil Rights Division, Acting United States Attorney David Estes of the Southern District of Georgia, and Special Agent in Charge J.C. Hacker of the FBI.
This case was investigated by both the Federal Bureau of Investigation and the Georgia Bureau of Investigation and is being prosecuted by Assistant United States Attorney Tara Lyons of the Southern District of Georgia, and Deputy Chief Bobbi Bernstein and Special Litigation Counsel Christopher J. Perras of the DOJ’s Civil Rights Division.
An indictment is a formal accusation of conduct, not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.
Three Georgia Men Charged with Federal Hate Crimes and Attempted Kidnapping in Connection with the Death of Ahmaud ArberyRead the Press Release
Three Georgia men were indicted today by a federal grand jury in the Southern District of Georgia and charged with hate crimes and the attempted kidnapping of Ahmaud Arbery. The indictment also charges two of the men with separate counts of using firearms during that crime of violence.
Travis McMichael, 35; Travis’s father, Gregory McMichael, 65; and William “Roddie” Bryan, 51, were each charged with one count of interference with rights and with one count of attempted kidnapping. Travis and Gregory McMichael were also charged with one count each of using, carrying, and brandishing—and in Travis’s case, discharging—a firearm during and in relation to a crime of violence.
Counts One and Two of the indictment allege that the defendants used force and threats of force to intimidate and interfere with Arbery’s right to use a public street because of his race. Specifically, Count One of the indictment alleges that as Arbery was running on a public street in the Satilla Shores neighborhood of Brunswick, Georgia, Travis and Gregory McMichael armed themselves with firearms, got into a truck, and chased Arbery through the public streets of the neighborhood while yelling at him, using their truck to cut off his route, and threatening him with firearms. Count One also alleges that the offense resulted in Arbery’s death. Count Two alleges that William “Roddie” Bryan joined the chase and used his truck to cut off Arbery’s route.
In addition to the hate-crime charges, Count Three alleges that all three defendants attempted to unlawfully seize and confine Arbery by chasing after him in their trucks in an attempt to restrain him, restrict his free movement, corral and detain him against his will, and prevent his escape. Counts Four and Five allege that during the course of the crime of violence charged in Count One, Travis used, carried, brandished, and discharged a Remington shotgun, and Gregory used, carried, and brandished a .357 Magnum revolver.
All three defendants have also been charged in a separate state proceeding with malice murder, felony murder, aggravated assault, false imprisonment, and criminal attempt to commit a felony. No trial date has been set for the state case.
The announcement was made by Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department's Civil Rights Division, Acting U.S. Attorney David Estes of the Southern District of Georgia, and Special Agent in Charge J.C. Hacker of the FBI.
This case was investigated by both the Federal Bureau of Investigation and the Georgia Bureau of Investigation and is being prosecuted by Assistant United States Attorney Tara Lyons of the Southern District of Georgia, and Deputy Chief Bobbi Bernstein and Special Litigation Counsel Christopher J. Perras of the Civil Rights Division.
An indictment is a formal accusation of conduct, not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.
Tampa Man Sentenced to More Than Five Years in Federal Prison for Making and Passing Counterfeit CurrencyRead the Press Release
Tampa, FL – U.S. District Judge Steven D. Merryday today sentenced Simon Keith Angaran (50, Tampa) to five years and four months in federal prison for conspiracy to make and pass counterfeit Federal Reserve notes and for making counterfeit Federal Reserve notes.
Angaran had pleaded guilty on January 28, 2021.
According to court documents, from at least December 2016 through February 2020, Angaran was the ringleader of a conspiracy that made and passed counterfeit currency at locations across Tampa Bay. Law enforcement first identified the conspiracy in June 2019 after a co-conspirator had passed a counterfeit bill at a thrift shop in Tampa. In total, the conspirators passed counterfeit bills more than 1,000 times for a total loss of $135,010.
In February 2020, law enforcement executed a search warrant at Angaran’s residence and discovered that he was making and printing the counterfeit bills there. Angaran later admitted that he had taught his conspirators how to make and pass counterfeit bills.
On February 18, 2021, Judge Merryday sentenced Christina Shante Perez, one of Angaran’s co-conspirators, to three years’ imprisonment for making and passing counterfeit bills.
This case was investigated by the United States Secret Service, the Tampa Police Department, and the Seminole Police Department. It is being prosecuted by Assistant United States Attorneys Jennifer L. Peresie and Tiffany E. Fields.
Sioux Falls Man Sentenced for Transportation of Child PornographyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man convicted of Transportation of Child Pornography was sentenced on April 26, 2021, by U.S. District Judge Karen E. Schreier.
Joshua Lynn Lugert, age 38, was sentenced to 78 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Lugert was indicted by a federal grand jury on September 1, 2020. He pled guilty on February 10, 2021.
The conviction stemmed from incidents between March 12, 2019, and March 6, 2020. Lugert searched the internet for child pornography and collected thousands of files using his cell phone and tablet.
This case was investigated by the National Center for Missing and Exploited Children, the Internet Crimes Against Children Task Force, the South Dakota Division of Criminal Investigation, and the Department of Homeland Security. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Lugert was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced for Methamphetamine TraffickingRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Sioux Falls, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on April 26, 2021, by U.S. District Judge Karen E. Schreier.
Ryan James Sandberg, age 19, was sentenced to 51 months in federal prison, followed by two years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Sandberg was indicted by a federal grand jury on September 1, 2020. He pled guilty on February 10, 2021.
The conviction stemmed from incidents beginning on an unknown date and continuing until on or about September 1, 2020, when Sandberg knowingly and intentionally combined, conspired, confederated, and agreed with others to distribute a mixture and substance containing 500 grams or more of methamphetamine.
Sandberg voluntarily and intentionally joined in the agreement to distribute methamphetamine. Sandberg also knew the purpose of the agreement. Sandberg obtained over 500 grams of methamphetamine from a co-conspirator and re-distributed to other co-conspirators in the District of South Dakota and elsewhere. Sandberg knew the methamphetamine would then be distributed to drug customers. Methamphetamine is a Schedule II controlled substance.
This case was investigated by the Sioux Falls Area Drug Task Force, the Department of Homeland Security, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Sandberg was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced for Assault by Striking, Beating, or WoundingRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Sioux Falls, South Dakota, man convicted of Assault by Striking, Beating, or Wounding was sentenced on April 27, 2021, by U.S. Magistrate Judge Mark A. Moreno.
Daniel James Farmer, age 25, was sentenced to 9 months in federal prison, followed by 1 year of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $25.
Farmer was indicted by a federal grand jury on October 16, 2019. He pled guilty on April 27, 2021.
The conviction stemmed from an incident that occurred on December 10, 2017, in Todd County, South Dakota, wherein Farmer assaulted his intimate partner.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Farmer was immediately turned over to the custody of the U.S. Marshals Service.
Seattle Man Sentenced for Multi-State Identity Theft Crime SpreeRead the Press Release
LAS VEGAS, Nev. – A Seattle man was sentenced today to 4 years and eight months in federal prison for stealing victims’ identities, using those identities to steal vehicles from car dealerships in several states, and then selling these vehicles to unwitting buyers, announced Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI.
According to court documents, from February 2016 to March 2016, Justin Lee Tripp, 48, and others conspired to use personal identities without authorization to purchase more than $230,980 of vehicles in Washington, Oregon, California, and Nevada. As part of the scheme, Tripp and a co-conspirator obtained other peoples’ personal information, produced false identification cards that included Tripp’s and the co-conspirator’s photographs, and used fraudulent lines of credit to purchase electronics and vehicles – including a Ford F350 pickup truck, a 5th Wheel RV trailer; and a Dodge Ram pickup truck.
In March 2016, Tripp attempted to buy two jet skis and a trailer at a Las Vegas dealership using a counterfeit driver’s license, fraudulent credit card, and a fraudulent money order. Las Vegas Metropolitan Police Department officers attempted to arrest Tripp who resisted multiple commands, assaulted the officers, and attempted to flee. After a struggle, officers arrested Tripp. At the time of his arrest, Tripp possessed a forged driver’s license and two fraudulent credit cards. During a search of the stolen truck Tripp drove to the Las Vegas dealership, officers found two California license plates that were reported stolen, and a loaded 9mm semi-automatic pistol that was reported stolen in Washington. Officers also searched a stolen 5th Wheel RV trailer and found methamphetamine, multiple license plates, a backpack containing burglary tools, and a forgery lab used to produce counterfeit documents that were used to further the fraud scheme.
At the time of the crime spree, Tripp was a convicted felon serving a federal term of supervised release in the Western District of Washington.
Tripp pleaded guilty in September 2020, to one count of conspiracy to commit bank fraud and one count of aggravated identity theft. In addition to the prison term, U.S. District Judge Andrew P. Gordon sentenced Tripp to three years of supervised release.
The case was investigated by the FBI and Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Kimberly Frayn prosecuted the case.
###
Salem County Man Charged with Possession of Ammunition by Convicted FelonRead the Press Release
CAMDEN, N.J. – A Salem County man made his initial appearance today on charges of illegally possessing ammunition, Acting U.S. Attorney Rachael A. Honig announced.
Sharif Hallman, 38, of Carneys Point, New Jersey, is charged by complaint with one count of possession of ammunition by a convicted felon. He appeared by videoconference before U.S. Magistrate Judge Karen M. Williams and was detained.
According to documents filed in this case and statements made in court:
On March 7, 2021, Penns Grove and Carneys Point police officers responded to an apartment complex in Carneys Point in response to a 911 call reporting a shooting. Officers encountered Hallman, a 13-time convicted felon, with a bicycle. Additional information from dispatchers reported that the suspected shooter was on a bike. Officers attempted to detain Hallman. A pistol became dislodged from Hallman and landed on the ground. The pistol had one round in the chamber, and an extended magazine containing another 22 rounds of ammunition.
The felon in possession of ammunition charge carries a maximum penalty of 10 years in prison and a fine of up to $250,000.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Camden Field Office, under the direction of Acting Special Agent in Charge Craig B. Kailimai in Newark; officers of the Penns Grove Police Department, under the direction of Officer in Charge Lt. Jason G. Spera; officers of the Carneys Point Police Department, under the direction of Chief of Police Dale VanNamee; and the Salem County Prosecutor’s Office, under the direction of Prosecutor John T. Lenahan, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
The charge and allegation contained in the complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
Rogers County Mother Pleads Guilty to Production of Child PornographyRead the Press Release
A Rogers County woman pleaded guilty today in federal court for producing child pornography involving her young child, announced Acting U.S. Attorney Clint Johnson.
Brittney Jo Wallace, 29, of Claremore, pleaded guilty to production of child pornography by a parent. Wallace admitted that she had the toddler touch her in a sexually explicit manner while she took photos using her cell phone on Sept. 26, 2015. Chief U.S. District Judge John E. Dowdell set sentencing for July 29, 2021.
“Detectives and agents with OSBI’s Internet Crimes Against Children Unit and Tulsa’s Homeland Security Investigations Child Exploitation Task Force doggedly pursue individuals, like Brittney Wallace, who harm the most innocent and vulnerable among us,” said Acting U.S. Attorney Clint Johnson. “This office and our law enforcement partners will continue our critical work to protect Oklahoma’s children.”
In 2016, Wallace’s children were taken from the home after a doctor found signs of severe child abuse. The defendant’s parental rights were later terminated. During the 2016 investigation conducted by the state of Oklahoma, authorities seized the defendant’s phone which was later suppressed. Recently, the Oklahoma Court of Criminal Appeals found the seizure and subsequent search of her phone were proper, and the phone was turned over to investigators. When authorities conducted a forensic examination of the phone, they discovered the child pornography.
On March 1, 2021, the U.S. Marshals Service arrested Wallace on a federal arrest warrant. The Oklahoma State Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Rogers County Sheriff’s Office, and Claremore Police Department conducted the investigation.
Assistant U.S. Attorneys Matilda M. Villalobos and Christopher J. Nassar are prosecuting the case. AUSA Villalobos is a prosecutor from the District of New Mexico. She volunteered to assist prosecution efforts here in the Northern District of Oklahoma due to increased jurisdictional responsibilities regarding crimes involving Native American victims or defendants and that occur within the Muscogee (Creek) Nation and Cherokee Nation Reservations.
You can find the indictment press release here.
If you suspect a child is being sexually exploited, contact the National Center for Missing and Exploited Children immediately at 1-800-THE-LOST or cybertipline.org. You can also contact the OSBI ICAC Unit at (800) 522-8017 or [email protected].
Rochester Man Second to Plead Guilty in Ponzi Scheme That Bilked Investors Out of Millions of DollarsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, NY – U.S. Attorney James P. Kennedy, Jr. announced today that John Piccarreto, Jr., 38, of Rochester, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to conspiracy to commit mail fraud and filing a false tax return. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that between 2017 and June 2018, the defendant conspired with co-defendants Perry Santillo, Christopher Parris and others, to obtain money through an investment fraud commonly known as a Ponzi scheme. The scheme, which was conducted under the umbrella of a business entity called Lucian Development, involved the sale of fraudulent promissory notes that were issued under the names various entities that Santillo and Parris controlled, including Lucian Development, First Nationale Solutions, United RL Capital Services, and Percipience Global Corporation (the issuers), among others. These issuers had little to no substantial bona fide business activities, and other than monies obtained from defrauded investors, the issuers had no material revenue streams. The vast majority of financial activity for the issuers involved receiving money from new investors, and then redistributing that money to repay earlier investors, to pay the expenses of the scheme, and to finance the lifestyles of Santillo, Parris and others involved in the scheme.
Piccarreto began working for Lucian Development in March 2012, and initially was unaware that the business was, in fact, a Ponzi scheme. The defendant’s responsibilities included assisting with the completion of transaction paperwork for clients of Lucian Development, including checks and wire transfers, and other clerical responsibilities. As he gained experience with investments and obtained a securities license, Piccarreto’s responsibilities increased to include meeting with existing investors who had questions or complaints about Lucian Development and selling investment products, including promissory notes and other investments, to a few investors. By January 2017, the defendant realized that the Lucian Development business was, indeed, a Ponzi scheme after the company stopped paying promised returns to client investors whom he serviced. However, rather than severing his association with Lucian Development, Piccarreto continued to work for Santillo and Parris, knowingly lying to investors by falsely reassuring them that their investments were safe and secure, even though he knew this was not true, and encouraging investors to “reinvest” their fraudulent investments by signing new promissory notes.
For example, in May 2018, the defendant met with Victim 1 who over the years had invested approximately $93,199.75 with Lucian Development and First Nationle Solutions. Piccarreto represented to Victim 1 that his money was safe in an account, even though he knew that was untrue. Piccarreto also tried to convince Victim 1 to reinvest his principal and accrued interest in another fraudulent promissory note. In August 2014, the defendant accompanied co-defendant Parris to meet with a potential investor who would become another victim (Victim 2). Between 2014 and 2016, Victim 2 and his wife invested a total of approximately $660,250.00 in the Ponzi scheme, specifically, in fraudulent promissory notes issued by United RL Capital Services and Percipience Global Corporation. Piccarreto knew by January 2017 that Victim 2 and his wife had received fraudulent promissory notes but continued to lull the couple by falsely reassuring them that their investments were safe, and they would be fully repaid.
Piccarreto admitted that from January 1, 2017, and June 19, 2018, he was involved in defrauding approximately 400 investors out of approximately $18,081,556, which resulted in financial hardship to more than 25 of its investor victims. Piccarreto also admitted that, while working in Texas, he personally solicited and defrauded at least eight investors out of approximately $598,695.
In addition, on his 2017 tax return, the defendant claimed that he had taxable income in the total amount of $6,576. In fact, Piccarreto’s taxable income was approximately $538,548. As a result, the defendant avoided paying income taxes to the Internal Revenue Service in the amount of approximately $159,423.
Perry Santillo was previously convicted and is awaiting sentencing. Charges remain pending against Christopher Parris. 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.
The plea is the result of an investigation by the United States Postal Inspection Service, under the direction of Acting Inspector-in-Charge Joshua McCallister, Boston Division; the Federal Bureau of Investigation, Buffalo Division, under the direction of Special Agent-in-Charge Stephen Belongia, and FBI Scranton Division; the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larsen, Special Agent-in-Charge; the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, under the direction of Nikitas Splagounias, Acting Special Agent-in-Charge, New York Region, the New York State Department of Financial Services, under the direction of Superintendent Linda A. Lacewell; and the Securities and Exchange Commission.
Sentencing is scheduled for July 29, 2021, at 3:00 p.m. before Chief Judge Geraci.
# # # #
Resident of Sabana Seca Indicted for Firearms TraffickingRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury returned an indictment charging Luis Antonio Visalden Arriaga with unlicensed firearms trafficking, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation is in charge of the investigation.
According to the Government’s allegations, Luis Antonio Visalden Arriaga sold semi- and fully automatic weapons for prices ranging from $2,000 to $2,700 each. He arranged for the sale of AK-47 rifles and stated that he received shipments of fifteen machineguns at a time.
Assistant U.S. Attorney Jeanette Collazo of the Violent Crimes Section is in charge of the prosecution of the case. If convicted, the defendant faces a maximum sentence of five years in prison.
An indictment contains only charges and is not evidence of guilt. A defendant is presumed to be innocent unless and until proven guilty.
# # #
Rapid City Woman Sentenced for Retaliation Against a WitnessRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, woman convicted of Retaliation Against a Witness was sentenced on April 26, 2021, by Chief U.S. District Judge Roberto A. Lange.
Whitney Bagola, age 27, was sentenced to 57 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Bagola was indicted by a federal grand jury on December 8, 2020. She pled guilty on March 1, 2021.
The conviction stemmed from an incident on April 20, 2020, at a jail in South Dakota, when Bagola assaulted an individual for giving information to law enforcement.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Bagola was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced to Federal Prison for Possession of Child PornographyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of Possession of Child Pornography was sentenced on April 14, 2021, by Judge Jeffrey L. Viken, U.S. District Court.
Bruce Kline, age 52, was sentenced to 10 years in federal prison, followed by a lifetime supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $13,000 in restitution. Kline will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.
The conviction stems from Kline failing a parole-ordered polygraph in October 2019. Kline was convicted in state court in 2011 for child pornography charges and remained on parole. Forensic examination of Kline’s devices thereafter revealed thousands of images of child pornography downloaded by Kline.
The investigation was conducted by the South Dakota Department of Corrections, South Dakota Division of Criminal Investigation, Department of Homeland Security, Rapid City Police Department, and the Pennington County Sheriff’s office. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Kline was remanded to the custody of the U.S. Marshals Service.
Quincy Man Sentenced for COVID-19 Related OffenseRead the Press Release
BOSTON – A Quincy man was sentenced yesterday in federal court in Boston in connection with selling lanyards that falsely claimed to protect against viruses.
Jiule Lin, 38, was sentenced by U.S. District Court Magistrate Judge Jennifer C. Boal to one year of probation and a fine of $1,500. In December 2020, Lin pleaded guilty to one count of distribution and sale of an unregistered pesticide.
Beginning in March 2020, Lin listed for sale on eBay an unregistered pesticide, “Toamit Virus Shut Out,” to buyers across the United States. Based on Lin’s eBay listing, the pesticide took the form of a card-shaped device to be worn as a lanyard around the user’s neck. The eBay listing depicted the removal of germs or viruses through the wearing of the device. Other online listings for the same product included the explicit claim that the product would protect the buyer or wearer of the product from viruses or bacteria, stating that the product’s main ingredient was chlorine dioxide and showed images of the device’s purported removal of bacteria, germs and viruses.
Under the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA), the EPA regulates the production, sale, distribution and use of pesticides in the United States. A pesticide is any substance intended for preventing, destroying, repelling, or mitigating any pest, including viruses. Pesticides must be registered with the EPA. Toamit Virus Shut Out was not registered, and it is illegal to distribute or sell unregistered pesticides.
Consumers can help protect themselves by visiting epa.gov/coronavirus for a list of EPA-approved disinfectant products.
Acting United States Attorney Nathaniel R. Mendell; Tyler Amon, Special Agent in Charge of the U.S. Environmental Protection Agency, Criminal Investigation Division in Boston; Joshua McCallister, Acting Special Agent in Charge of the U.S. Postal Inspection Service, Boston Division; Jeffrey Ebersole, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigation, New York Field Office; and Quincy Police Chief Paul Keenan made the announcement. Assistant U.S. Attorney Adam Deitch of Mendell’s Major Crimes Unit prosecuted the case.
Queens Man Convicted of Threatening to Murder Members of CongressRead the Press Release
Earlier today, following a one-week trial before United States District Judge Pamela K. Chen, a federal jury in Brooklyn convicted Brendan Hunt, also known as “X-Ray Ultra,” of threatening to assault and murder members of the United States Congress to impede, interfere and intimidate with those members and to retaliate against them on account of their performance of their official duties. When sentenced on June 22, 2021, Hunt faces up to 10 years in prison.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.
“With today’s verdict, the defendant is now a convicted felon, not for his repugnant, racist rants, but because he threatened to attack and kill members of Congress to prevent them from carrying out their constitutional duties, and that is a federal crime,” stated Acting United States Attorney Lesko. “This Office will not tolerate threats of violence against public officials who are entrusted with upholding the Constitution.”
Mr. Lesko and Mr. Sweeney praised the outstanding work of the FBI’s New York Joint Terrorism Task Force on the case.
On January 8, 2021, two days after the violent assault on the U.S. Capitol in Washington, D.C., Hunt posted a video called “KILL YOUR SENATORS” that included the summary “Slaughter them all,” to BitChute, an Internet-based video sharing site. In the video, Hunt made additional threats, exhorting his viewers to violence and telling them that “[w]e need to go back to the U.S. Capitol when all of the Senators and a lot of the Representatives are back there, and this time we have to show up with our guns. And we need to slaughter these m-----f-----s.” Hunt also advocated for the violent overthrow of the federal government, claiming that “our government at this point is basically a handful of traitors . . . so what you need to do is take up arms, get to D.C., probably the inauguration . . . so called inauguration of this m-----f-----g communist Joe Biden . . . [T]hat’s probably the best time to do this, get your guns, show up to D.C., and literally just spray these m-----f-----s . . . put some bullets in their f------g heads.” Hunt stated, “If anybody has a gun, give me it, I’ll go there myself and shoot them and kill them . . . [W]e have to take out these Senators and then replace them with actual patriots. This is a [Zionist Occupied Government].”
The evidence at trial also showed that, between December 6, 2020 and January 8, 2021, Hunt made a series of posts on various social media websites in which he targeted Members of Congress, including Speaker of the House of Representatives Nancy Pelosi, Senate Majority Leader Charles Schumer, and Representative Alexandria Ocasio-Cortez. On December 6, 2020, Hunt posted two messages on his Facebook account, the first calling Speaker Pelosi, Senator Schumer, and Congresswoman Ocasio-Cortez “high-value target[s].” Hunt stated: “They really need to be put down. These commies will see death before they see us surrender.” A second message called on former President Donald Trump to hold a public execution of Pelosi, Schumer, and Ocasio-Cortez. “If you don't do it, the citizenry will. We’re not voting in another rigged election. Start up the firing squads, mow down these commies, and lets take America back,” Hunt stated.
The evidence included the defendant’s social media and video accounts, as well as videos, text messages, emails, and documents downloaded from the defendant’s electronic devices espousing white supremacist and anti-Semitic views, including Adolf Hitler’s “Mein Kampf” and accused mass murderer Dylan Roof’s manifesto.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys David K. Kessler, Ian C. Richardson and Francisco J. Navarro are in charge of the prosecution.
The Defendant:
BRENDAN HUNT (also known as “X-Ray Ultra”)
Age: 37
Ridgewood, QueensE.D.N.Y. Docket No. 21-CR-086 (PKC)
Previously Convicted Felon Sentenced for Possession of Firearm During Traffic Stop That Resulted in Death of Newport News Police OfficerRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced today to ten years in prison for being a previously convicted felon in possession of a firearm and felony possession of a controlled substance. Both charges stem from the defendant’s involvement in a January 2020 traffic stop that allegedly led to the death of Newport News Police Officer Katie Thyne.
According to court documents and statements made in court, on January 23, 2020, Vernon Evander Green II, 38, encountered Newport News Police at the Monitor Merrimac Overlook. Police responded to the area after reports of a vehicle with two occupants who appeared to be smoking marijuana. The officers found Green in the driver’s seat and asked him to exit the vehicle. He failed to comply with the officers’ requests and instead fled the scene in his vehicle.
A later search resulted in the recovery of marijuana in the vehicle, along with a soft cooler bag containing a firearm with Green’s fingerprint on the magazine. Green admitted he had previously been convicted of a felony and was not allowed to possess a firearm.
Today’s sentence in federal court consisted of ten years in prison for being a felon in possession of a firearm and two years in prison for the felony controlled substance offense, with both prison terms to run concurrently to each other. The Court, however, ordered that the federal sentence run consecutively to any sentence that may be imposed in the future for Green’s separate pending charges involving felony homicide in Newport News and bank robbery in North Carolina. With regards to the pending Newport News matter, Green has been charged under Virginia state law with felony homicide, in connection with the death of Officer Thyne, in the Newport News Criminal General District Court. The defendant is presumed innocent of the pending state charges until proven guilty.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; and Steve R. Drew, Chief of Newport News Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorneys Howard J. Zlotnick and Lisa R. McKeel prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-35.
Pendleton Man Sentenced to 30 Years for Sexual Crimes against a ChildRead the Press Release
INDIANAPOLIS - A Pendleton man was sentenced to 30 years for several counts of sexual exploitation of a child, coercion and enticement of a child, and possession of child pornography.
According to court documents, in January 2017, Jeffrey Kramer, 51, of Pendleton, used an online dating website to meet the minor victim. Kramer falsely represented to the victim that his name was "Michael", and that he was a wealthy foreigner. Kramer used the internet, including social media, and family heritage websites, to gain and verify information about the minor victim and her family. He knew that the victim was under the age of 18 and that her father had recently died. He promised to give her millions of dollars if she self-produced child pornography at Kramer’s direction.
For approximately a year, Kramer used the internet to groom and psychologically extort the victim to engage in sexually explicit conduct. Specifically, to produce and send violent child sexual abuse material (CSAM) over the internet, and to enter a bondage-discipline, dominance, submission, and sadism-masochism (BDSM) relationship with him.
“Adults who sexually exploit children are some of the worst in our society,” said Childress. “No amount of time behind bars seems adequate punishment for the monstrous behavior and harm Kramer knowingly caused this victim. We will continue to diligently work together with our law enforcement partners to identify these predators and bring justice to their victims.”
“Those who prey on the most vulnerable of our citizens, our children, will be held accountable for their heinous actions,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “This lengthy sentence demonstrates our commitment to identify and investigate those who exploit innocent children to ensure they can never victimize anyone else.”
The Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorney Tiffany J. Preston, who prosecuted the case for the government said Kramer must pay $10,000 in restitution and serve the remainder of his life on supervised release after his imprisonment.
Owner of Diving School Admits Wire FraudRead the Press Release
CAMDEN, N.J. – The president and CEO of a commercial diving school today admitted fraudulently obtaining funding from the U.S. Department of Education (DOE) and the U.S. Department of Veterans Affairs (VA) for the school and its students, Acting U.S. Attorney Rachael A. Honig announced.
Tamara Brown, 57, of Haddon Heights, New Jersey, pleaded guilty by videoconference before U.S. District Judge Joseph H. Rodriguez to an information charging her with one count of wire fraud.
According to documents filed in this case and statements made in court:
From January 2012 through July 2018, Brown owned a private, for-profit commercial diving school, which offered educational programs in commercial diving and underwater welding and salvage. As a for-profit institution, the diving school was required to be accredited through an approved accreditation body to be eligible to receive tuition funds from the DOE’s Higher Education Act’s programs. The VA also relies upon the accreditation in evaluating the eligibility of veteran students to receive student aid funding. Given that more than 80 percent of the diving school’s students received financial assistance from the Department of Education, the school stood to lose its largest source of tuition funding for its students if it lost its accreditation.
Prior to 2012, the diving school had been properly accredited. However, when renewing the diving school’s accreditation that year, Brown submitted fraudulent information to the accrediting authority. For example, Brown reported rates of employment of the school’s graduates of between 81 to 84 percent, when the employment rates were closer to 50 to 60 percent, significantly lower than the rate required to maintain accreditation. Brown also provided fraudulent information pertaining to the school’s holding of “advisory board” meetings required for accreditation to ensure that the school’s curriculum would educate students to meet the current demands of the industry and prospective employers. In the school’s accreditation application, Brown reported holding advisory board meetings on various dates and also submitted what purported to be minutes of nine such board meetings. The diving school did not have a formal advisory board and did not regularly conduct meetings as required. Brown submitted wholly fabricated meeting minutes for at least six of the nine dates listed in the school’s accreditation application and, therefore, did not satisfy the minimum accreditation requirements. The diving school nonetheless continued to regularly receive DOE funds via wire transfers, including a wire transfer which occurred on Jan. 18, 2017.
The wire fraud charge to which Brown pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss resulting from the offense. Under the terms of the plea agreement, Brown must pay restitution of $1.1 million. Sentencing is scheduled for Aug. 30, 2021.
Acting U.S. Attorney Honig credited agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll in Philadelphia, the Philadelphia Resident Agency of the U.S. Department of Education, Office of Inspector General, under the direction of Special Agent in Charge Terry V. Harris, and the Northeast Field Office of the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S Attorney’s Office in Camden.
Owner of Child Autism Services Agency Pleads Guilty to Health Care FraudRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that NICOLE M. BALKAS, 31, of Bridgeport, waived her right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of health care fraud.
According to court documents and statements made in court, Balkas owned and operated Helping Hands Academy, LLC, in Bridgeport, which provided applied behavior analysis services to children diagnosed with Autism Spectrum Disorder (ASD). Helping Hands Academy enrolled as a participating provider in the Connecticut Medicaid Program (“Medicaid”) in approximately September 2018.
From December 2018 to October 2020, Balkas submitted and caused to be submitted fraudulent claims to Medicaid for applied behavior analysis services that were purportedly provided to Medicaid clients. Balkas submitted claims for dates of service when no applied behavior analysis services of any kind had been provided to the Medicaid clients identified in the claims, and she inflated the number of hours for certain claims even when applied behavior analysis had been provided to the Medicaid clients identified in the claims.
In addition, in September and October 2020, Balkas submitted, and was subsequently paid for, Medicaid claims in which she falsely claimed that a former Helping Hands Academy provider, who was a Board Certified Behavior Analyst (“Individual 1”), performed Medicaid-approved services when, in fact, Individual 1 was not employed by Helping Hands Academy on those dates of service, provided no such services to the clients identified on the claims, and was not aware that Helping Hands Academy or Balkas was billing Medicaid using Individual 1’s name and performing provider number. Individual 1 had resigned from Helping Hands Academy in July 2019.
In August 2020, the Connecticut Department of Social Services (DSS), which administers the Medicaid program in Connecticut, terminated Helping Hands Academy as a provider. In an effort to rescind the termination and to receive payment for previously submitted claims, Balkas made several false statements and submitted an altered document to DSS.
Medicaid suffered a loss of $551,311.85 as a result of Balkas’ conduct.
Judge Meyer scheduled sentencing for July 21, 2021, at which time Balkas faces a maximum term of imprisonment of 10 years. Balkas also will be ordered to make full restitution.
Balkas is released on a $50,000 bond pending sentencing.
This investigation is being conducted by the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and the Federal Bureau of Investigation.
Acting U.S. Attorney Boyle acknowledged the valuable cooperation of the Connecticut Department of Social Services in the investigation.
This case is being prosecuted by Assistant U.S. Attorney David T. Huang.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Overland Park Man Pleads Guilty to Armed RobberiesRead the Press Release
KANSAS CITY, Mo. – An Overland Park, Kansas, man pleaded guilty in federal court today to the robberies (and attempted robberies) of five businesses.
Joshua A. West, 28, pleaded guilty before U.S. District Judge Howard F. Sachs to five counts of robbery and two counts of brandishing a firearm in furtherance of a violent crime.
By pleading guilty today, West admitted that he robbed the CVS Pharmacy at 6300 Prospect Ave., Kansas City, Mo., on July 17, 2018. When West came around the counter, the cashier, who believed he was armed, opened the cash drawer. West took all of the cash and left the store. Investigators posted a bulletin using a photo from surveillance footage, and received a tip that identified West, who was on probation at the time.
West also admitted that he used a firearm to rob the Sprint Store at 4902 N. Oak Trafficway, Kansas City, Mo., on Aug. 10, 2018. West forced an employee to open the locked cabinets behind the counter so he could take all the iPhones, Apple Watches, and Samsung S-9 phones.
The next day, on Aug. 11, 2018, West robbed the Phone Shack at 6392 Troost Avenue, Kansas City, Mo., at gunpoint. West forced two employees to get on the ground, then stole phones and cash from the register.
On Aug. 15, 2018, a manager of a T-Mobile store sent a photo of West to all the managers of stores in the metropolitan area. On the same day, the manager of a T-Mobile store at 12400 S. US Hwy. 71, Grandview, Mo., spotted West in the parking lot outside the store. Because he had been alerted, the manager locked the door. West tried to open the door, then pointed a firearm at the manager from outside for a few seconds before walking away.
Immediately afterward, West entered the nearby AT&T store at 12346 U.S. Hwy. 71, Grandview, Mo. West pulled out a firearm and ordered the employees to give him all the iPhones. West ordered the two employees and a customer into a back room. Another customer stayed in the main showroom and ran out of the store after West went to the back room. That customer called 911. Once in the back room, an employee opened a closet that had all the iPhones. West ordered them to the ground and put the phones in a plastic bag.
West left the back room, going back through the main showroom. Before he reached the front door, however, two Grandview police officers confronted him in the main showroom. West attempted to run through the back room, but the door had locked behind him. The officers ordered West to get on the ground, but he refused, and a struggle ensued. During the struggle, a Taurus 9mm pistol fell from West’s waistband. More officers arrived and took West into custody.
Under federal statutes, West is subject to sentence of up to 20 years in federal prison without parole on each of the robbery charges, plus a consecutive sentence of at least 14 years in federal prison without parole, up to a sentence of life in federal prison without parole, for the firearm charges. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the Kansas City, Mo., Police Department, the Grandview, Mo., Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Omaha Man Sentenced for Child PornographyRead the Press Release
Acting United States Attorney Jan Sharp announced that Daniel Zordell, 39, of Omaha, Nebraska, was sentenced today in federal court in Omaha for receiving child pornography. United States District Judge Brian C. Buescher sentenced Zordell to 70 months of imprisonment. There is no parole in the federal system. After his release from prison, Zordell will begin a five-year term of supervised release and will be required to register as a sex offender.
In March 2018, a task force office with the FBI’s Child Exploitation and Human Trafficking Task Force acquired 150 images of child pornography from a computer at Zordell’s Omaha residence. The images included pre-pubescent girls in sexually explicit poses. On June 7, 2018, agents entered the residence with a search warrant. Zordell admitted he was the only one home when his computer shared the 150 images of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Omaha FBI's Child Exploitation and Human Trafficking Task Force.
North Carolina Man Pleads Guilty to Production of Child PornographyRead the Press Release
A North Carolina man pleaded guilty Monday to production of child pornography.
According to statements made in connection with his plea, when allegations of child pornography came to light, Raul Ayala Jr., 72, of Harnett County, was interviewed by the Fuquay-Varina Police Department and admitted to molesting a prepubescent minor victim, as well as other victims as far back as the 1970s. A search warrant was thereafter executed at Ayala’s residence in Angier and multiple digital devices were seized. The devices contained numerous images and videos of child sexual abuse material (CSAM). In addition, the police found a briefcase in Ayala’s attic, suspended by a pulley system, that contained CSAM and Polaroid pictures of nude minor children, dating back to the late 1960s and early 1970s. Homeland Security Investigations (HSI) agents were able to track down and identify one of the boys depicted in the Polaroids. He is now in his 60s and disclosed that Ayala had sexually abused him when he was a minor, starting when he was 8 years old.
“This case demonstrates that child sex offenders too often engage in their offenses over great periods of time without detection,” said acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “This prosecution resulted from the successful collaboration of diligent federal and local law enforcement officers in their efforts to pursue justice for children, regardless of the passage of time. Ayala committed egregious offenses for decades and his successful prosecution ensures that he now faces a sentence of no less than 15 years. The Department of Justice is committed to tirelessly tracking down and pursuing the prosecution of defendants like Ayala who victimize the most vulnerable members of our society.”
“Child pornography – the horrible exploitation of the most vulnerable among us – is one of the worst and most intolerable crimes we prosecute, and this plea reflects the Department of Justice’s deep and abiding commitment to removing these predators and restoring our children,” said Acting U.S. Attorney G. Norman Acker III of the Eastern District of North Carolina. “This case allows us to take another step in the right direction as we work to eliminate this crime and its terrible consequences for our communities.”
“As disturbing as these child sex abuse cases are, HSI is determined to prevent and punish those who sexually abuse innocent children,” said Special Agent in Charge Ronnie Martinez of HSI’s Charlotte Field Office. “Working together with our partners in the Fuquay-Varina Police Department and the Hartnett County Sheriff’s Office, these cases can be investigated thoroughly and expeditiously so children can continue to be rescued. There is nothing more meaningful than locating, identifying, and rescuing child sex abuse victims.”
Ayala faces up to 30 years of imprisonment, with a mandatory minimum term of 15 years of imprisonment, to be followed by supervised release for at least five years, and restitution. After release from prison, Ayala will be required to register as a sex offender.
Trial Attorney Charles Schmitz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Charity Wilson of the U.S. Attorney’s Office for the Eastern District of North Carolina prosecuted the case.
The HSI Raleigh Field Office investigated the case with assistance from the Fuquay-Varina Police Department and the Harnett County Sheriff’s Office. CEOS’s High Tech Investigative Unit provided substantial assistance.
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 U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
New York Man Pleads Guilty to Hate Crime OffensesRead 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, today announced that CHRISTOPHER RASCOLL, 49, of Blauvelt, New York, pleaded guilty yesterday before U.S. District Judge Kari A. Dooley in Bridgeport to federal hate crime offenses related to his making anti-Semitic death threats to a resident of Stratford, Connecticut.
According to court documents and statements made in court, in November 2019, Rascoll began making numerous threats to an individual, who is of Jewish faith, through text messages, voicemails and Facebook posts. In several text messages, which continued into June 2020, Rascoll threatened to murder or seriously injure the victim. He also threatened to blow up the victim’s house and car. Some of Rascoll’s threatening text messages contained anti-Semitic references to the Holocaust. On December 23, 2019, Rascoll sent a message that included the words “Suns about to go down. It would be a shame if your house were used to light the menorah. Or turned in a gas chamber.” On April 8, 2020, Rascoll wrote “I’m going to kill you. You better be gone because if you’re in [the victim’s housing community] Easter weekend I’m going to stick you in an oven. Or I’m going to shoot you.”
Rascoll pleaded guilty to one count of interference with the right to fair housing, a hate crime, which carries a maximum term of imprisonment of 10 years, and one count of sending threatening communications, which carries a maximum term of imprisonment of five years.
Judge Dooley scheduled sentencing for July 27, 2021.
Rascoll has been detained since his arrest on June 26, 2020.
This matter has been investigated by the Federal Bureau of Investigation with assistance from the Stratford Police Department. The case is being prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and Amanda S. Oakes.
New York Felon Sentenced for Coercing Others to Purchase Firearms for HimRead the Press Release
ERIE, Pa. - A former resident of Jamestown, New York, has been sentenced in federal court to 46 months in jail on his conviction of violating federal firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge David S. Cercone imposed the sentence on Michael Deniro Hackett, 43.
According to information presented to the court, from March 9, 2020, to July 21, 2020, Hackett and two co-defendants conspired to violate federal straw purchase laws. The two co-defendants acquired firearms for Hackett who was prohibited from possessing firearms based on prior criminal convictions.
During the sentencing, the attorney for the United States described how Hackett had recruited, coerced, and intimidated straw purchasers without prior criminal histories to purchase firearms on behalf of Hackett. Judge Cercone, in sentencing Hackett, highlighted the role that the straw purchase of firearms has played in the rising instances of gun violence in the area.
Assistant United States Attorney Paul S. Sellers prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Pennsylvania State Police, Conewango Police Department, and Homeland Security Investigations for the investigation leading to the successful prosecution of Hackett.
Nevada Man Sentenced to 10 Years in Prison for Role in Methamphetamine Trafficking ConspiracyRead the Press Release
LAS VEGAS, Nev. – A Nevada resident was sentenced last Wednesday to 10 years in prison for his role in a methamphetamine drug trafficking conspiracy, announced Acting U.S. Attorney Christopher Chiou for the District of Nevada.
According to court documents, on April 14, 2017, Las Vegas Metropolitan Police Department officers stopped a vehicle. Alejandro Jose Rojas, 38, was a passenger, and co-defendant Jonathan Ruiz, 35, was the driver. During the stop, officers observed a firearm protruding from underneath the front passenger seat. Officers found approximately 29 grams of methamphetamine in Rojas’ pocket and recovered three firearms under the passenger seat. 1.4 kilograms of methamphetamine was found in the vehicle’s trunk. During a subsequent search warrant executed on a hotel room Ruiz had rented, officers found an additional firearm and approximately 8.6 kilograms of methamphetamine.
Rojas pleaded guilty to one count of conspiracy to distribute methamphetamine, a Schedule II Controlled Substance. In addition to the term of imprisonment, U.S. District Judge Andrew P. Gordon sentenced Rojas to five years of supervised release.
Ruiz pleaded guilty to one count of conspiracy to distribute methamphetamine. He was sentenced to 78 months in prison, to be followed by five years of supervised release.
This case was investigated by the Drug Enforcement Administration.
###
Montgomery Woman Charged with Covid-19 Loan FraudRead the Press Release
MONTGOMERY, ALABAMA – On April 26, 2021, Zsa Zsa Bouvier Couch, 52, from Montgomery, Alabama, was arrested on criminal charges related to federal small business loan fraud, announced Acting U.S. Attorney Sandra J. Stewart. Couch made her initial appearance in federal court yesterday, April 27, 2021.
The fraud allegations relate to aid received through the Coronavirus Aid Relief and Economic Security (CARES) Act, a federal law enacted in March 2020 to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act is the Paycheck Protection Program, or PPP, which authorizes the disbursement of forgivable loans to small businesses for job retention and certain other expenses.
According to the indictment returned by a Middle District of Alabama Grand Jury, Couch is alleged to have submitted at least six fraudulent applications for loans under the U.S. Small Business Administration’s PPP program seeking over $1.6 million in funds. In each of the applications, Couch falsely inflated the number of employees who worked for her purported businesses as well as the average monthly payroll for the businesses, which resulted in her ability to qualify for larger PPP loan amounts. Couch is also alleged to have made other false statements in her application, such as failing to disclose that she had applied for multiple PPP loans for the same business and failed to disclose her common ownership of multiple businesses. In support of the inflated employee numbers and average monthly payroll claimed in the applications, Couch allegedly submitted falsified tax documents. As a result, Couch received an inflated amount of funds from PPP loans to which she was not entitled. Ultimately, Couch received a total of $609,687.47 of PPP funds. It is alleged that Couch then used the funds to pay money to herself, her husband, and other family members and to purchase luxury vehicles.
Couch is charged with multiple counts of bank fraud, making false statements to a federally insured bank, and money laundering. If convicted, Couch faces a maximum of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Federal Bureau of Investigation, the U.S. Internal Revenue Service- Criminal Investigations, the Small Business Administration Office of Inspector General, and the Treasury Inspector General for Tax Administration, investigated this case. Assistant U.S. Attorneys Alice LaCour and Jonathan Ross are prosecuting the case.
For information about the Department of Justice’s efforts to stop illegal COVID-19-related activity, visit www.justice.gov/coronavirus. For the most up-to-date information on COVID-19, consumers may visit the Centers for Disease Control and Prevention (CDC) and WHO websites.
The public is urged to report suspected fraud schemes related to COVID-19 (the Coronavirus) to the National Center for Disaster Fraud (NCDF) hotline by phone at (1-866-720-5721).
Monroe County Man Indicted for Bank RobberyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on April 27, 2021, Terrance Tyson, age 44, of East Stroudsburg, Pennsylvania, was indicted by a federal grand jury for bank robbery.
According to Acting United States Attorney Bruce D. Brandler, the indictment alleges that on September 24, 2019, Tyson committed a robbery of the NBT Bank located in East Stroudsburg and took approximately $5,226.
The case was investigated by the Stroud Area Regional Police Department and the FBI Safe Streets Task Force. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under federal law, Tyson faces a maximum sentence of up to 20 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Mississippi Man Indicted for Wire Fraud and Health Care FraudRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury returned an eight-count indictment yesterday charging a Mississippi man with wire fraud and health care fraud and with conspiracy to commit wire and health care fraud, announced U.S. Attorney Prim F. Escalona and Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Derrick Jackson.
According to the indictment, in October 2016, Phillip Anthony Minga, 55, of Amory, MS, was excluded from providing services to Medicare participants. Minga also signed an agreement which provided that Medicare would not pay claims submitted by anyone who employed Minga in a management or administrative role. The indictment charges, however, that Minga and others concealed his ownership interests and managerial roles in multiple pharmacies and caused the submission of millions of dollars in claims for reimbursement to Medicare, in violation of his exclusion agreement.
If convicted, Minga faces a maximum of twenty years in prison for wire fraud and ten years in prison for health care fraud, and a $250,000 fine.
The Department of Health and Human Services, Office of Inspector General, investigated the case along with the State of Mississippi’s Office of the Attorney General and the State of Alabama’s State Board of Pharmacy. Assistant U.S. Attorneys Lloyd Peeples and Don Long are prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Massachusetts Man Pleads Guilty to Operating Nationwide Scheme to Steal Social Media Accounts and CryptocurrencyRead the Press Release
A Massachusetts man pleaded guilty today to conducting a scheme to take over victims’ social media accounts and steal hundreds of thousands of dollars in cryptocurrency.
According to court documents and statements made in connection with the plea proceeding, Eric Meiggs, 23, of Brockton, admitted that he and one or more co-conspirators targeted victims who appeared to have significant amounts of cryptocurrency and those who had high value or “OG” (slang for “original gangster”) social media account names. Using an illegal practice known as “SIM-swapping,” Meiggs and others conspired to hack into and take control of these victims’ online accounts to obtain things of value, including OG social media account names and cryptocurrency.
As alleged in the indictment, SIM-swapping attacks involve convincing a victim’s cellphone carrier to reassign the victim’s phone number from the SIM card (Subscriber Identity Module card) inside the victim’s cellphone to the SIM card inside a cellphone controlled by the cybercriminals. Cybercriminals then pose as the victim with an online account provider and request that the provider send account password-reset links or an authentication code to the SIM-swapped device now controlled by them. The cybercriminals can then reset the victim’s account log-in credentials and use those credentials to access the victim’s account without authorization, or “hack into” the account.
According to the indictment, Meiggs and his coconspirators targeted at least 10 identified victims around the country. Members of the conspiracy stole, or attempted to steal, more than $530,000 in cryptocurrency from these victims. Meiggs also took control of two victims’ “OG” accounts with social media companies.
Meiggs pleaded guilty to each of seven counts in an indictment, charging him with conspiracy, wire fraud, computer fraud and abuse, and aggravated identity theft. He is scheduled to be sentenced on Sept. 15, and faces a mandatory minimum penalty of two years in prison, to be served consecutively to any other sentence. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Nathaniel R. Mendell for the District of Massachusetts; Special Agent in Charge Joseph R. Bonavolonta of the FBI’s Boston Field Office; and Acting Special Agent in Charge Ramsey E. Covington of IRS Criminal Investigation (IRS-CI) made the announcement.
The FBI and IRS-CI are investigating the case.
Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Seth Kosto of the U.S. Attorney’s Office in the District of Massachusetts are prosecuting the case.
Martin County Registered Sex Offender Detained Pending Federal Trial on Child Exploitation ChargesRead the Press Release
MIAMI – On April 23, 2021, a federal magistrate judge in Ft. Pierce ordered Gernard Keiwon Clark, Sr., 46, of Stuart, Florida, detained pending trial on charges of using an underaged girl to produce child pornography.
According to court records, on August 31, 2020, a report of alleged child abuse led law enforcement officers to Clark, a registered sex offender. A forensic analysis of the SD card of Clark’s cellular telephone showed over 500 sexually explicit photographs and over 40 sexually explicit videos of a particular underaged girl.
An indictment unsealed on April 15, 2021, charges Clark with two counts of producing child pornography, one count of possessing child pornography, and two counts of committing a felony involving a minor by a registered sex offender. If convicted, Clark faces a statutory minimum mandatory sentence of 35 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami Field Office, made the announcement.
FBI Miami -- in particular, FBI Miami’s Child Exploitation Task Force -- investigated this case, Martin County Sheriff’s Office assisted. Assistant U.S. Attorney Rosa C. Rodriguez-Mera is prosecuting the case.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-14015.
Manhattan Man Arrested for $5.8 Million Scheme to Defraud Loan Program Intended to Help Small Businesses During COVID-19 PandemicRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Amaleka McCall-Brathwaite, Special Agent-in-Charge of the Eastern Region Office of the Inspector General of the U.S. Small Business Administration (“SBA-OIG”), and Jonathan D. Larsen, Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), and Patricia Tarasca, Special Agent in Charge of the New York Region Office of the Inspector General of the Federal Deposit Insurance Corporation (“FDIC-OIG”), announced today the unsealing of a criminal complaint charging MARCUS FRAZIER with major fraud against the United States, bank fraud, wire fraud, making false statements, and money laundering, for carrying out a fraudulent scheme to obtain $5.8 million in government-guaranteed loans designed to provide relief to small businesses during the novel coronavirus/COVID-19 pandemic. FRAZIER was arrested this morning and presented before United States Magistrate Judge Gabriel W. Gorenstein this afternoon.
U.S. Attorney Audrey Strauss said: “As alleged, Marcus Frazier sought millions of dollars in unsecured SBA-guaranteed loans for which his businesses did not qualify. Frazier allegedly did this by lying about the number of people employed by his businesses, the salaries they were paid, even that these employees existed. Further, Frazier allegedly used the loan proceeds he did obtain not to pay allowable expenses, but rather, to fund his lavish lifestyle. Now Marcus Frazier stands to learn the true cost of his alleged conduct.”
FBI Assistant Director William F. Sweeney Jr. said: “As alleged, Frazier fraudulently sought approximately $5.8 million in PPP loans through a government program designed to help small businesses continue to pay their employees during the pandemic. Rather than use the proceeds he ultimately secured for this purpose, he used the funds for personal expenses that included luxury hotels and travel. With today’s action, the only place he’ll travel is the courthouse in Lower Manhattan to face justice and the possibility of a lengthy stay in federal prison.”
SBA-OIG Special Agent-in-Charge Amaleka McCall-Brathwaite said: “Lying to gain access to economic stimulus funds will be met with justice. Greed has no place in SBA’s programs that are intended to provide assistance to the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
IRS-CI Special Agent-in-Charge Jonathan D. Larsen said: “Instead of using these vital CARES Act funds to keep his purported businesses afloat, the defendant allegedly drowned himself in luxuries. I applaud the speed with which the federal law enforcement community uncovered these alleged abuses. The arrest today should be an unequivocal message about the consequences that await those engaged in related alleged criminal activities.”
FDIC-OIG Special Agent-in-Charge Patricia Tarasca said: “These charges represent blatant falsehoods, fraud, and other criminal conduct that sought to take advantage of tax dollars meant to help the nation recover from the ongoing pandemic. We appreciate the work of our law enforcement partners on this important case.”
According to the allegations in the Complaint[1] unsealed today in Manhattan federal court:
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 business expenses through the Paycheck Protection Program (the “PPP”). The PPP allows qualifying small businesses and other organizations to receive unsecured SBA-guaranteed loans. PPP loan proceeds must be used by businesses on payroll costs, mortgage interest, rent, and/or utilities, among other specified expenses. Pursuant to the CARES Act, the amount of PPP funds a business is eligible to receive is determined by the number of employees employed by the business and their average payroll costs. Businesses applying for a PPP loan must provide documentation to confirm that they have in the past paid employees the compensation represented in the loan application.
Between in or about May 2020 and in or about April 2021, FRAZIER submitted at least seven applications for PPP loans for various businesses he controlled (collectively, the “Frazier Companies”). These applications relied upon fraudulent statements regarding the number of employees of each business and the amount of payroll involved in each business and were submitted, in many cases, alongside fake bank statements, designed to support FRAZIER’s false statements. These fake bake statements included, among other things, fraudulent account statements for a checking account that showed balances far greater than the account actually held, and depicted payroll withdrawals that never occurred. FRAZIER also submitted lists of employees on the purported payrolls of the Frazier Companies, which included names and Social Security numbers that do not match the records of the Social Security Administration, suggesting that FRAZIER fabricated the employee records. On at least one occasion, FRAZIER also provided documents purporting to show that one of the Frazier Companies had been in existence for approximately 10 years. In truth and in fact, however, the corporate entity had not been registered until on or about July 2020, months after the onset of the COVID-19 pandemic.
FRAZIER sought more than approximately $5.8 million in PPP loans and was awarded at least approximately $2.17 million. A substantial portion of the funds awarded were spent not on payroll for the Frazier Companies but, rather, on FRAZIER’s personal expenses. During the period between on or about June 18, 2020, shortly after his first PPP loan was funded, and on or about April 7, 2021, FRAZIER utilized PPP funds to spend approximately $124,982 on hotels, including more than approximately $88,791 at a luxury hotel located in Miami, Florida. During the same period, FRAZIER spent approximately $63,000 on restaurants and food service, approximately $17,000 on transportation with Uber, approximately $16,519 on airline travel, and approximately $11,000 on clothing. During this same period, FRAZIER collected approximately $21,000 in unemployment benefits.
* * *
FRAZIER, 47, of New York, New York York, is charged in the Complaint with (1) major fraud against the United States, in violation of 18 U.S.C. § 1031, which carries a maximum sentence of 10 years in prison; (2) bank fraud, in violation of 18 U.S.C. § 1349, which carries a maximum sentence of 30 years in prison ; (3) wire fraud, in violation of 18 U.S.C. § 1343, which carries a maximum sentence of 30 years in prison; (4) making false statements to a bank, in violation of 18 U.S.C. § 1014, which carries a maximum sentence of 30 years in prison; (5) making false statements, in violation of 18 U.S.C. § 1001, which carries a maximum sentence of five years in prison; (6) making false statements to the SBA, in violation of 18 U.S.C. § 645, which carries a maximum sentence of two years in prison and (7) money laundering, in violation of 18 U.S.C. § 1957, which carries a maximum sentence of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the FBI, SBA-OIG, IRS-CI, and FDIC-OIG in this case.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Katherine Reilly is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Man suspected in shooting on Crow Indian Reservation appears on assault chargesRead the Press Release
BILLINGS – A man suspected of shooting and wounding a pedestrian from his vehicle in Crow Agency, on the Crow Indian Reservation, had an initial appearance on a criminal complaint today, Acting U.S. Attorney Leif M. Johnson said.
Fabian Cruz Dawes, 31, a transient, is accused by a criminal complaint of assault with a dangerous weapon. If convicted of the most serious crime, Dawes faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. Judge Cavan ordered Dawes detained pending further proceedings.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
In a criminal complaint and affidavit filed in the case, the government alleged that on April 7, near the Teepee Service gas station and a laundromat in Crow Agency, the victim, an adult male, was walking with another person, when Dawes approached in a vehicle and stopped near the victim. The victim approached the driver’s side door and engaged in a short conversation with Dawes. The government further alleged that Dawes fired a single shot at the victim, striking him in the leg. Dawes then drove from the scene. The victim was treated for injuries at the Indian Health Services hospital in Crow Agency.
Assistant U.S. Attorney Lori Suek is prosecuting the case, which was investigated by the FBI and Bureau of Indian Affairs.
XXX
Local, State, Federal Law Enforcement; Social Service Agencies and Financial Institutions Unite to Raise Awareness of Increased Risk of Elder Fraud Related to Covid-19Read the Press Release
SPRINGFIELD, Ill. – In an effort to raise awareness and prevent the financial exploitation of elders, local, state and federal law enforcement are partnering with social service organizations and financial institutions to train local bank tellers and loan officers to be aware of behaviors that may indicate that an older person could be a victim of financial exploitation. Last week, these organizations conducted a virtual training with banking institutions in Springfield to emphasize the importance of fraud prevention and reporting attempted scams and abuse.
“Increased isolation related to Covid-19 has been identified as a primary cause of a significant increase in the number of older Americans targeted for scams and fraud and of those who fall victim to these crimes,” said Acting U.S. Attorney Doug Quivey. “Fraudsters use the internet and phone to reach vulnerable elder citizens and persuade them to give money to a charitable cause, to someone with whom they’ve developed a romantic connection, to access large winnings through a sweepstakes or lottery, and to pose as government employees who claim the victim owes taxes or social security.”
Sangamon County State’s Attorney Dan Wright stated, “ For a variety of reasons, older citizens may not always be able to protect themselves from the increasing prevalence of financial scams or other exploitation, particularly those who suffer from memory impairment. Older individuals too often become targets for creative fraudsters out to take advantage of the vulnerable. Financial institutions are critical partners in the identification and reporting of crimes against the elderly.”
Signs of financial exploitation include an elder customer’s sudden change in banking activity to include frequent ATM withdrawals, wire transactions, gift cards purchases, or cryptocurrency purchases; a nervous or confused senior on the phone or in the bank; an elder customer who exits and immediately returns to the lobby; and elders who are elusive with details about why and to whom they are sending money or are confused about “missing funds.”
Timely reporting to law enforcement is critical; if a banking transaction related to a fraud is reported within the first 72 hours, law enforcement may be able to stop the transaction and retrieve the money. As time passes, the likelihood of recovering the money decreases.
In addition to the U.S. Attorney’s Office and the Sangamon County States Attorney’s Office, those who presented training to local banks and credit unions included the Illinois Attorney General’s Office; Senior Services of Central Illinois; and, agents and officers with the U.S. Postal Inspection Service, Secret Service, and the Springfield Police Department.
If a senior or friend or relative of a senior believes a senior is at risk for imminent danger or financial exploitation, they should call 9-1-1. Reports of financial exploitation and abuse should be reported to the non-emergency number at the Springfield Police Department (217-788-8311.) The Adult Protective Services Hotline number to report elder fraud is 866 800-1409. Elder fraud may also be reported to the Illinois Attorney General’s Office at 800-243-5377. Internet-based fraud should be reported to the FBI’s Internet Crime Complaint Center IC3, https://www.ic3.gov/Home/FileComplaint Useful information about elder frauds and scams is available at www.uspis.gov and www.ftc.gov.
Lewiston Drug Trafficker Sentenced to over 26 YearsRead the Press Release
COEUR D’ALENE – Christopher William Bounds, 38, of Lind, Washington, was sentenced in U.S. District Court to 322 months in federal prison, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. Chief U.S. District Judge David C. Nye also ordered Bounds to serve ten years of supervised release following his prison sentence, pay a $2,400 fine, and ordered the forfeiture of sixteen firearms. In August 2020, a federal jury sitting in Coeur d’Alene convicted Bounds on six federal charges, including conspiracy to distribute methamphetamine and heroin, unlawful possession of a firearm by a drug addict, unlawful possession of a firearm by a felon, and for possessing a firearm in furtherance of drug trafficking.
Evidence presented during the four-day trial established that Quad Cities Drug Task Force detectives worked with the Nez Perce County Sheriff’s Office to stop Bounds’ vehicle when Bounds was leaving Lewiston, Idaho. Officers searched Bounds’ vehicle and seized two pounds of pure methamphetamine, one pound of heroin, cash, and sixteen loaded firearms. Testimony at trial showed that the drugs were valued at over $32,000. Bounds’ cell phone was also seized and a search revealed that Bounds was a wholesale distributor of methamphetamine and heroin in Idaho and Eastern Washington. The jury also heard evidence that Bounds used an assault rifle for protection when meeting with cartel-level drug traffickers a couple days before the traffic stop. Bounds has multiple felony convictions which prohibit him from possessing firearms.
Multiple law enforcement agencies contributed to the prosecution of this case including the Nez Perce County Prosecutor’s Office, Lewiston Police Department, Nez Perce County Sheriff’s Office, Clarkston Police Department, and Whitman County Sheriff’s Office, who are all part of the Quad Cities Drug Task Force, as well as the Federal Bureau of Investigation, Drug Enforcement Administration, and Bureau of Alcohol, Tobacco, Firearms and Explosives, who are not part of the task force but participate with it on a regular basis. The Quad Cities Drug Task Force is a multi-jurisdictional group of law enforcement officers working together to target drug trafficking in Lewiston and Moscow, Idaho, and Clarkston and Pullman, Washington.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
# # #
Leader of Brooklyn Chapter of the United Brotherhood of Carpenters Convicted in Union Bribery SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that SALVATORE TAGLIAFERRO, the president of Local 926 chapter of the United Brotherhood of Carpenters and Joiners of America (the “Union”), was found guilty today in Manhattan federal court of honest services wire fraud, conversion of union assets, and conspiracy, in connection with his involvement in a scheme to solicit cash bribes from hundreds of prospective members in exchange for union membership. The jury convicted TAGLIAFERRO today following a one-week trial before U.S. District Judge Paul A. Crotty. TAGLIAFERRO is scheduled to appear for sentencing before Judge Crotty on July 27, 2021.
U.S. Attorney Audrey Strauss said: “As a unanimous jury has now found, Salvatore Tagliaferro is guilty of old-fashioned corruption – betraying his duty to the union and the trust of its hard-working members by taking cash bribes to line his own pockets.”
As reflected in the Indictment, public filings, and the evidence presented at trial:
From at least in or about 2017 up through and including in or about June 2019, TAGLIAFERRO, as the President of the Local 926 chapter of the Union in Brooklyn, abused his position as an officer and employee of the Union by soliciting and accepting cash bribes from prospective Union members in exchange for securing the bribe payors’ admission to the Local 926. Working with other co-conspirators, including John DeFalco, the former Vice President of the Local 157 chapter of the Union in Manhattan, TAGLIAFERRO identified prospective members and solicited cash payments in amounts ranging from $600 to $2,000. Once prospective members had paid bribes, TAGLIAFERRO then used his authority to ensure they were admitted into the Local 926 and received Union membership cards. Over the course of the scheme, the Local 926 ballooned by over 800 new members, but for two years more than half of the new members never worked a single Union job. TAGLIAFERRO and DeFalco split the cash bribes obtained from the bribe payors’ during clandestine early morning meetings outside a construction site in lower Manhattan, and each received at least $70,000 as a result of the scheme.
* * *
TAGLIAFERRO was found guilty of one count of conspiracy, which carries a maximum sentence of five years in prison; one count of conversion of union assets, which carries a maximum sentence of five years in prison; and one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison.
Ms. Strauss praised the investigative work of the Department of Labor, Office of the Inspector General, the Department of Labor, Office of Labor-Management Standards, and the New York City Department of Investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Thomas McKay and Jarrod Schaeffer and are in charge of the prosecution.
Jackson Woman Pleads Guilty Under Project EJECT to Concealing Information about an Armed RobberyRead the Press Release
Jackson, Miss. – Rasheena Romegan Carter, 33, of Jackson, Mississippi, pled guilty today before U.S. District Judge Kristi H. Johnson to misprision of a felony, announced Acting U.S. Attorney Darren J. LaMarca and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
Carter concealed information concerning an armed robbery at a business that occurred on August 21, 2018. Carter assisted in concealing the armed bandit by driving him from the robbery and concealing him from law enforcement. Instead of reporting the crime, and relaying the information she possessed, Carter concealed the information for months. Under federal law it is a felony for any person to fail to notify authorities about the commission of a felony crime and to affirmatively act to conceal information they have about that crime.
Carter is scheduled to be sentenced by Judge Johnson on Wednesday, July 18, 2021 at 9:00 a.m.
and faces a maximum penalty of three years in federal prison and a $250,000.00 fine.The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Andrew W. Eichner and Charles W. Kirkham.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Ithaca-Area Man Arrested on Child Pornography ChargesRead the Press Release
ITHACA, NEW YORK – Randolph Bullock, 64, of Dryden, New York, was arrested today on a complaint charging him with possession of child pornography, announced Acting United States Attorney Antoinette T. Bacon and Thomas Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The criminal complaint alleges that Bullock possessed images of child pornography on his desktop computer at his former place of employment.
The charge against Bullock carries a sentence of up to ten years in prison, a fine of up to $250,000, a term of supervised release of at least 5 years and up to life, and registration as a sex offender. The 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.
Bullock appeared before United States Magistrate Judge Thérèse Wiley Dancks for an initial appearance today and was detained pending a detention hearing scheduled for May 3, 2021. The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the Federal Bureau of Investigation Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police Bureau of Criminal Investigations (BCI), with assistance from the Tompkins County Sheriff’s Department and Village of Dryden Police Department. The case is being prosecuted by Assistant U.S. Attorney Kristen Grabowski.
Members of the public who have information regarding Bullock are asked to call the Federal Bureau of Investigation at (607) 274-5050.
This case is prosecuted as part of 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 https://www.justice.gov/psc/.
Iowa Man Sentenced to 25 Years in Prison for Producing and Possessing Child PornographyRead the Press Release
CAMDEN, N.J. – An Iowa man today was sentenced to 300 months in prison for producing and possessing images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.
Donavon Oliphant, 38, of Independence, Iowa, previously pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with one count of sexual exploitation of a minor and one count of possession of child pornography. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
In August 2019, Oliphant produced 11 images and four videos of child sexual abuse. The videos depicted sexual acts involving a pre-pubescent child and an adult male. Oliphant then used a peer-to-peer file-sharing program to share these images and videos with an individual located in Gloucester County, New Jersey. When law enforcement accessed Oliphant’s file-sharing account, they found more than 1,700 videos and 200 images of child sexual abuse.
In addition to the prison term, Judge Hillman sentenced Oliphant to a lifetime term of supervised release, ordered him to pay restitution of $3,000, and ordered him to register as a sex offender.
Acting U.S. Attorney Honig credited special agents of U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
Individual Arrested and Charged with Operating Notorious Darknet Cryptocurrency “Mixer”Read the Press Release
A dual Russian-Swedish national was arrested Tuesday at Los Angeles International Airport on criminal charges related to his alleged operation of the longest-running bitcoin money laundering service on the darknet.
According to court documents, Roman Sterlingov, 32, operated Bitcoin Fog since 2011. Bitcoin Fog was the longest-running cryptocurrency “mixer,” gaining notoriety as a go-to money laundering service for criminals seeking to hide their illicit proceeds from law enforcement. Over the course of its decade-long operation, Bitcoin Fog moved over 1.2 million bitcoin – valued at approximately $335 million at the time of the transactions. The bulk of this cryptocurrency came from darknet marketplaces and was tied to illegal narcotics, computer fraud and abuse activities, and identity theft.
Sterlingov is charged by complaint with money laundering, operating an unlicensed money transmitting business, and money transmission without a license in the District of Columbia.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Channing D. Phillips of the District of Columbia; Acting Special Agent in Charge Darrell J. Waldon of IRS-Criminal Investigation (IRS-CI); and Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement.
The IRS-CI District of Columbia Cyber Crime Unit and the FBI Washington Field Office are investigating the case. Essential support was provided by Excygent; the IRS-CI Los Angeles Field Office, Van Nuys Post of Duty; FBI Los Angeles Field Office; Homeland Security Investigations; Customs and Border Patrol; the U.S. Attorneys’ Offices for the Central District of California, Northern District of California, and Southern District of New York; and the Financial Crimes Enforcement Network of the U.S. Department of Treasury. The Department of Justice’s Office of International Affairs provided invaluable assistance, as did Europol; the Swedish Economic Crime Authority, the Swedish Prosecution Authority, and the Swedish Police; and the General Inspectorate of Romanian Police, Directorate for Combatting Organized Crime and the Directorate for Investigating Organized Crime and Terrorism.
Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Christopher B. Brown of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case, with assistance from Paralegal Specialist Chad Byron. Former Assistant U.S. Attorneys Youli Lee and Zia Faruqui made invaluable contributions during their tenures on the case team. The team also appreciates the previous support of Trial Attorney S. Riane Harper of the Computer Crime and Intellectual Property Section; Paralegal Specialist Kenny Nguyen; former Paralegal Specialists Toni Anne Donato and Bianca Evans; and former Assistant U.S. Attorney Allen O’Rourke over the course of this long-running investigation.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Individual Arrested and Charged with Operating Notorious Darknet Cryptocurrency "Mixer"Read the Press Release
WASHINGTON - A dual Russian-Swedish national was arrested Tuesday at Los Angeles International Airport on criminal charges related to his alleged operation of the longest-running bitcoin money laundering service on the darknet.
According to court documents, Roman Sterlingov, 32, operated Bitcoin Fog since 2011. Bitcoin Fog was the longest-running cryptocurrency “mixer,” gaining notoriety as a go-to money laundering service for criminals seeking to hide their illicit proceeds from law enforcement. Over the course of its decade-long operation, Bitcoin Fog moved over 1.2 million bitcoin – valued at approximately $335 million at the time of the transactions. The bulk of this cryptocurrency came from darknet marketplaces and was tied to illegal narcotics, computer fraud and abuse activities, and identity theft.
Sterlingov is charged by complaint with money laundering, operating an unlicensed money transmitting business, and money transmission without a license in the District of Columbia.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Channing D. Phillips of the District of Columbia; Acting Special Agent in Charge Darrell J. Waldon of IRS-Criminal Investigation (IRS-CI); and Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement.
The IRS-CI District of Columbia Cyber Crime Unit and the FBI Washington Field Office are investigating the case. Essential support was provided by Excygent; the IRS-CI Los Angeles Field Office, Van Nuys Post of Duty; FBI Los Angeles Field Office; Homeland Security Investigations; Customs and Border Patrol; the U.S. Attorneys’ Offices for the Central District of California, Northern District of California, and Southern District of New York; and the Financial Crimes Enforcement Network of the U.S. Department of Treasury. The Department of Justice’s Office of International Affairs provided invaluable assistance, as did Europol; the Swedish Economic Crime Authority, the Swedish Prosecution Authority, and the Swedish Police; and the General Inspectorate of Romanian Police, Directorate for Combatting Organized Crime and the Directorate for Investigating Organized Crime and Terrorism.
Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Christopher B. Brown of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case, with assistance from Paralegal Specialist Chad Byron. Former Assistant U.S. Attorneys Youli Lee and Zia Faruqui made invaluable contributions during their tenures on the case team. The team also appreciates the previous support of Trial Attorney S. Riane Harper of the Computer Crime and Intellectual Property Section; Paralegal Specialist Kenny Nguyen; former Paralegal Specialists Toni Anne Donato and Bianca Evans; and former Assistant U.S. Attorney Allen O’Rourke over the course of this long-running investigation.
Home health aide sentenced to more than 5 years in prison for using her position to steal more than $200k from disabled victimRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that Jamie Kidd-Dunbar, 40, of Grafton, Ohio, was sentenced today by U.S. Judge Donald C. Nugent to 61 months of imprisonment and ordered to pay $217,096.52 in restitution. Kidd-Dunbar pleaded guilty in October of 2020 to exploiting her position as a home health aide to steal more than $200,000 from a blind and physically disabled person in her care.
“Our aging and disabled family members and friends must be able to trust those who are hired to assist them, said Acting U.S. Attorney Bridget M. Brennan. “The fact that Ms. Kidd-Dunbar exploited that trust for her own personal gain, and ignored the needs of two women, one of whom was both blind and physically disabled and the other 90 years old, highlights the egregiousness of her conduct and underscores the need for a significant term of incarceration.”
"This defendant will now serve a significant amount of time behind bars for taking advantage of an elderly, physically disabled woman in her care," said FBI Special Agent in Charge Eric B. Smith. "Maybe spending 5 years in confinement will allow Ms. Kidd-Dunbar time to reflect on her morally corrupt and heartless criminal behavior. Our elderly and vulnerable population needs to be cherished and protected, the FBI will continue working with our partners to educate and root out elder fraud."
According to court documents, in or around March of 2016, Kidd-Dunbar became the paid home health aide for Victim 1, then 60 years old, after Victim 1 suffered a series of strokes that left her blind and dependent on the use of a wheelchair. As Victim 1’s home health aide, Kidd-Dunbar was trusted with Victim 1’s debit card information so Kidd-Dunbar could purchase groceries and other household supplies for Victim 1.
In January 2018, Kidd-Dunbar began using Victim 1’s debit card to make small, unauthorized purchases. Over time, the theft escalated to include larger cash withdrawals and significant purchases from various businesses, including Amazon, PlayStation and Rent-A-Center.
During the same period, Kidd-Dunbar also assisted Victim 1’s 90-year old aunt, who is identified in court documents as Victim 2. Kidd-Dunbar was similarly given Victim 2’s credit card information so Kidd-Dunbar could make authorized purchases of groceries and other supplies for Victim 2. After Victim 2 passed away in 2017, Kidd-Dunbar continued to use Victim 2’s credit card to make unauthorized personal purchases. Kidd-Dunbar used Victim 1’s bank card to pay the balance on Victim 2’s credit card.
In June of 2019, a different home health aide substituted for Kidd-Dunbar while Kidd-Dunbar was away on vacation. This home health aide asked Victim 1 about certain charges on Victim 1’s statements, which led Victim 1 to discover Kidd-Dunbar’s numerous and unauthorized purchases, withdrawals and credit card payments. As a result of Kidd-Dunbar’s theft, Victim 1 suffered a total loss of $217,096.52.
This investigation was conducted by the Federal Bureau of Investigation and Elyria Police Department and was prosecuted by Assistant U.S. Attorney Brian M. McDonough and Special Assistant U.S. Attorney Matthew A. Kern. The U.S. Attorney’s Office for the Northern District of Ohio would like to acknowledge and thank the Lorain County Prosecutor’s Office for its cooperation with this matter.
Hardy County man admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Matthew Curtis Delawder, of Moorefield, West Virginia, has admitted to a methamphetamine charge, Acting U.S. Attorney Randolph J. Bernard announced.
Delawder, 37, pleaded guilty today to one count of “Distribution of Methamphetamine.” Delawder admitted to selling methamphetamine in Hardy County in October 2020.
As a part of the plea agreement, Delawder also agreed to forfeit three firearms, ammunition, and $4942 in cash believed to be proceeds from the crime.
Delawder is facing up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Guatemalan National Sentenced for Illegal Re-entry, Failure to Register as a Sex OffenderRead the Press Release
PROVIDENCE – A Guatemalan national previously convicted in Rhode Island state court for participating in two gang rapes, who failed to register as a sex offender, and who re-entered the United States illegally after being deported, was sentenced today to 30 months in federal prison.
According to court documents, in 2003, Manuel Pablo Alonzo, 37, participated in the gang rape of two women in separate incidents on the same night. One of the victims was stabbed. Alonzo was convicted in Rhode Island state court in March 2005 on four counts of first-degree sexual assault and one count of kidnapping.
After serving a 15-year sentence in state prison, Alonzo was deported to Guatemala on February 20, 2014.
According to information presented to the court, on January 3, 2020, Alonzo was arrested for driving under the influence in Warwick. An investigation determined that Alonzo re-entered the United States illegally and had been living in Providence with family members. Further investigation determined that Alonzo failed to register as a sex offender, as previously ordered by a Rhode Island state court judge.
Alonzo pleaded guilty on January 5, 2021 to illegal re-entry after deportation and failure to register as a sex offender. He was sentenced today to 30 months in federal prison to be followed by one year of federal supervised release. Alonzo will again face deportation proceedings following completion of his term of incarceration.
Alonzo’s sentence, imposed by U.S. District Court Judge Mary S. McElroy, is announced by Acting United States Attorney Richard B. Myrus, United States Marshal Wing Chau, Homeland Security Investigations Acting Special Agent in Charge William S. Walker, and Warwick Police Chief Colonel Bradford Connor.
The case was prosecuted by Assistant United States Attorney Zechariah Chafee.
###
Grant County man admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Peter Sanford Layne, of Cabins, West Virginia, has admitted to a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Layne, 48, pleaded guilty today to one count of “Distribution of Methamphetamine.” Layne admitted to selling methamphetamine in January 2019 in Grant County.
Layne faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The task force consists of the FBI, West Virginia State Police, Mineral County Sheriff’s Office, Hampshire County Sheriff’s Office, Grant County Sheriff’s Office, and the Keyser Police Department.
U.S. Magistrate Judge Michael John Aloi presided.
Fulton County Felon Admits to Unlawfully Possessing FirearmsRead the Press Release
ALBANY, NEW YORK – Robert H. Stone, age 53, of Mayfield, New York, pled guilty today to unlawfully possessing three firearms as a felon and to possessing and intending to sell marijuana.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and New York State Police Acting Superintendent Kevin P. Bruen.
Stone, who has prior felony convictions for drug and weapons offenses, admitted that in October 2020, he possessed two shotguns and a rifle at his residence in Gloversville, and 3.8 kilograms of marijuana and 1,395 rounds of pistol, rifle and shotgun ammunition on his 46-acre property in Mayfield, New York.
Stone faces up to 15 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of between 2 years and life, when he is sentenced on August 25, 2021 by 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.
This case was investigated by ATF and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
Former Police Officer Pleads Guilty to Sexually Abusing a Young ChildRead the Press Release
A Sapulpa man scheduled to begin trial Tuesday in federal court opted instead to plead guilty to sexually abusing a young child, announced Acting U.S. Attorney Clint Johnson.
Bradley Don Goodin, 46, pleaded guilty to abusive sexual contact with a child under 12 in Indian Country. As part of the plea agreement, the defendant agreed to a sentence of 15 years in federal prison. U.S. District Judge Gregory K. Frizzell will make the final sentencing determination at a hearing set for Aug. 11, 2021.
“Bradley Goodin was a danger to children, but now thanks to the Sapulpa Police Department, Creek County Sheriff’s Office, the FBI, and my office, he is a convicted child predator who will spend significant time in federal prison,” said Acting U.S. Attorney Clint Johnson.
In a child forensic interview, the girl described two incidents when Goodin sexually abused her on Oct. 5, 2019. During the second incident, the victim’s mother walked in. The girl was afraid to tell her mother what was happening at the time because she feared he would harm them. She later disclosed the abuse. With the aid of a neighbor, the mother fled the home with her children and contacted the Sapulpa Police Department. At the time of the incident, Goodin was an officer with Bristow Police Department. He has not been employed with the department since November 2019.
In a February 2021 superseding indictment, Goodin was charged with sexually abusing a total of three minors. He was also charged with being a felon in possession of 21 firearms. Goodin chose to plead guilty rather than go to trial.
The Sapulpa Police Department, Creek County Sheriff’s Office and FBI conducted the investigation. Assistant U.S. Attorneys Jeffrey A. Gallant and Matilda Villalobos are prosecuting the case. Ms. Villalobos is a prosecutor from the District of New Mexico. She volunteered to assist prosecution efforts here in the Northern District of Oklahoma due to increased jurisdictional responsibilities regarding crimes involving Native American victims or defendants and that occur within the Muscogee (Creek) Nation and Cherokee Nation Reservations.
Former Owner of a Temporary Employment Agency Facing Federal Charges for Allegedly Defrauding Lenders and for Failing to Pay to the IRS the Employment Taxes Withheld from Employees’ WagesRead the Press Release
Baltimore, Maryland – A federal criminal information has been filed charging Crystal Jones, a/k/a Crystal Powell-Jones, age 53, of Laurel, Maryland, for the federal charges of wire fraud and failure to pay to the IRS employment taxes withheld from employees’ wages. The criminal information was filed on April 26, 2021.
The criminal information was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Acting Special Agent in Charge Darrell Waldon of the Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office.
According to the criminal information, Jones was the owner and managing partner of JAG Professional Resources, a temporary employment agency doing business in Howard County, Maryland and elsewhere from 2012 through August 2107. As JAG’s managing partner, Jones exercised control over all aspects of JAG’s business, including its finances. A relative of Jones was a silent minority partner in JAG.
As detailed in the criminal information, from at least February 2013 through October 2016, Jones obtained factoring services from Victim Lender 1 for JAG. Factoring is a means by which cash intensive businesses, like JAG, could obtain cash quickly and reliably by leveraging accounts receivable. JAG was a cash intensive business because JAG had to pay its temporary employees weekly or biweekly, but typically did not receive payment from JAG’s clients until at least 30 days after services had been rendered, which meant that JAG could be short of the cash flow needed to pay its employees each week, but its business model was theoretically profitable if all outstanding invoices had been paid. Specifically, JAG sold its account receivables to Victim Lender 1 and, in return, JAG received cash advances from Victim Lender 1 totaling approximately 90% of JAG’s accounts receivables. Upon receiving payments from JAG’s clients on the outstanding invoices, Victim Lender 1 sent JAG the remaining 10% of the invoice that had been purchased, less fees Victim Lender 1 charged for its factoring services.
The criminal information alleges that from March 2016 to about May 2016, Jones caused JAG to sell Victim Lender 1 fraudulent invoices totaling more than $350,000 for services that JAG had purportedly provided to a City in Ohio. The City in Ohio had contracted with JAG for temporary employment services beginning in February 2013, but JAG’s relationship with the City in Ohio ended in about February 2016.
To execute the scheme, Jones allegedly created false paystubs purportedly issued by JAG and fraudulent invoices that purported to represent services that JAG had provided, so Jones could obtain loans for her own benefit and the benefits of others. Jones allegedly sent emails to representatives of Victim Lender 1 falsely stating that payments on the false and fraudulent invoices were coming, to lull Victim Lender 1 into a false sense of security about the outstanding collections. Further, Jones allegedly appropriated the names, signatures, and personal identifying information of her silent partner and others for Jones’s own benefit.
In addition, the criminal information alleges that from January 2014 to October 2016 Jones withheld payroll taxes from the wages paid to JAG employees, but neglected to pay the taxes withheld over to the Internal Revenue Service, resulting in a tax loss to the United States of at least $523,244.38.
If convicted, Jones faces a maximum sentence of 20 years in federal prison for wire fraud; and a maximum of five in federal prison for failure to pay over employment taxes. 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. Jones is expected to have an initial appearance and arraignment in U.S. District Court in Baltimore before U.S. District Judge George L. Russell III, although no date has been scheduled.
A criminal information is not a finding of guilt. An individual charged by criminal information is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the IRS-CI for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Dana J. Brusca and Harry M. Gruber, who are prosecuting this case.
# # #