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Tuesday 13 April 2021
U.S. Government and State of Illinois Announce Agreement with ExxonMobil’s Joliet Refinery to Reduce Air PollutionRead the Press Release
The Justice Department, U.S. Environmental Protection Agency (EPA) and the State of Illinois have announced an amendment to the 2005 Clean Air Act (CAA) consent decree signed with ExxonMobil Oil Corporation to resolve violations at its petroleum refinery in Joliet.
“This new agreement requires ExxonMobil to clean up its act and pay penalties for its past violations,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division (ENRD). “EPA and our Illinois state partner deserve credit for policing ExxonMobil’s compliance with the Clean Air Act and our prior settlement with the company.”
“I’m pleased that the agreement announced today with ExxonMobil will reduce air emissions from their Joliet refinery,” said Acting Assistant Administrator for Enforcement and Compliance Assurance Larry Starfield of the EPA. “The result will be cleaner air for communities in Illinois and lower environmental impacts.”
The consent decree amendment will reduce air pollution through upgrades and improvements and address violations of the 2005 consent decree and the CAA. ExxonMobil will make physical and operational changes to its sulfur recovery plant that will reduce emissions of hydrogen sulfide and sulfur dioxide and will meet a lower sulfur dioxide emission limit at its north sulfur recovery unit. ExxonMobil will also make physical and operational changes to the emission controls for its fluidized catalytic cracking unit, also referred to as the FCCU, and it will meet lower emission limits for sulfur dioxide and nitrogen oxides at the FCCU.
To address leak detection and repair violations, ExxonMobil will update its program to include procedures for properly monitoring valves that are covered in insulation or that are located inside fireboxes. ExxonMobil will also use an optical gas imaging camera to monitor its open-ended lines for leaks. To address continuous emissions monitoring system violations, ExxonMobil will develop a comprehensive plan to ensure implementation and compliance with regulatory requirements.
Under the consent decree amendment, ExxonMobil will pay $1,515,463 in penalties, $1,086,640 to the federal government and $428,823 to the State of Illinois. The amendment also includes an estimated $10 million of improvements to reduce air emissions from the facility.
Today’s settlement, lodged with the U.S. District Court for the Northern District of Illinois, will be subject to a 30-day public comment period after notice of the settlement is published in the Federal Register. To view the consent decree amendment or to submit a comment, visit the Justice Department’s website: www.justice.gov/enrd/Consent_Decrees.html.
For more information about the 2005 consent decree and the consent decree amendment with ExxonMobil: https://www.epa.gov/enforcement/exxonmobil-refinery-settlement.
Two Southern Illinois Amtrack Stations Part of $2.25 Million Justice Department SettlementRead the Press Release
Patrons of two Amtrak stations in the Southern District of Illinois may be eligible
for compensation as part of a recent Justice Department settlement. On January 29, federal
authorities announced that a $2.25 million fund had been established to compensate travelers with a
mobility disability who were harmed physically or emotionally because of accessibility issues at 78
Amtrak stations nationwide between 2013 and 2020. Included in the settlement were Amtrak stations
in Centralia and Effingham, Illinois. According to Justice Department officials, those stations did
not meet the accessibility requirements of the Americans with Disabilities Act (ADA).
The stations in Centralia and Effingham were on a long list of stations where passenger platforms
were not readily accessible to individuals with disabilities. Although the specific issues were not
disclosed, examples include steep slopes, no detectable warnings at the platform edges, and ground
surfaces that were not stable, firm, and slip resistant. The Effingham station was also cited for
not having accessible bathrooms. Some of the violations at other stations covered in the settlement
include inaccessible parking, lack of directional signs, high ticket counters, and
deteriorated platforms.In total, nine Amtrak stations in Illinois were cited by the Justice Department as non-ADA
compliant, more than any other state. Aside from the stations in Centralia and Effingham, the
others were located in Gilman, Homewood, Mattoon, Plano, Princeton, Rantoul, and Summit.
Three Missouri stations were also included in the settlement: Kirkwood, La Plata, and Poplar Bluff.To be eligible for monetary compensation, travelers must have a mobility disability and must have
been harmed due to inaccessibility issues at one or more of the affected stations from July 23,
2013 to December 2, 2020. All claims must be submitted no later than May 29, 2021. Other
restrictions may apply. Questions about the claims process should be directed to the
settlement administrator by any of the following methods:• Visit AmtrakDisabilitySettlement.com
• Email your name, address, and phone number to [email protected]
• Call the Fund Administrator at (888) 334-6165 or TTY: (866) 411-6976.
Help is available for those who are unable to complete the claim form due to a disability.As part of the settlement agreement, Amtrak has committed to make its intercity rail
stations accessible, prioritizing stations with the most significant barriers to access. Over the
next 10 years, Amtrak will design at least 135 stations to be accessible, complete construction at
90 of those stations, and have at least 45 more under construction. Amtrak will also train staff on
ADA requirements and implement an agreed-upon process for accepting and handling ADA complaints. In
demonstrating its commitment, Amtrak has already established an Office of the Vice President of
Stations, Properties & Accessibility to coordinate its compliance with the ADA.
The settlement agreement with Amtrak was negotiated as part of a lawsuit filed by the Disability
Rights Section of the Justice Department’s Civil Rights Division. A copy of the
complaint can be found by visiting www.ada.gov/amtrak_comp.html. The settlement agreement is also
available online at AmtrakDisabilitySettlement.com. For more information on the Civil Rights
Division, visit www.justice.gov/crt. For more information on the ADA, please call the toll-free
ADA Information Line at 800-514-0301 (TTY 800-514-0383) or visit www.ada.gov.Twelve Individuals Indicted and Arrested for Unemployment Benefits and Pandemic Unemployment Assistance (PUA) FraudRead the Press Release
SAN JUAN, P.R. – On April 7 and 8, 2021, the Federal Grand Jury in the District of Puerto Rico returned eleven separate indictments charging twelve (12) individuals with fraud against the Unemployment Insurance and Pandemic Unemployment Assistance Program, announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. These cases were investigated by various federal agencies, including the Federal Bureau of Investigation (FBI), United States Postal Inspection Service (USPIS), the United States Department of Labor Office of Inspector General (USDOL-OIG), the Social Security Office of Inspector General (SSA-OIG), and the United States Postal Service Office of Inspector General (USPS-OIG), with the assistance of local law enforcement officials from the Puerto Rico Police Bureau (PRPB), Puerto Rico Department of Labor and Human Resources, Puerto Rico Office of Inspector General (PR-OIG), and the Puerto Rico Department of Treasury (Hacienda).
According to the indictments, the defendants engaged in schemes to defraud the Puerto Rico Department of Labor and Human Resources (Departamento del Trabajo y Recursos Humanos, “DTRH”) by submitting fraudulent applications for unemployment insurance benefits, including Pandemic Unemployment Assistance (PUA) benefits. The false information submitted included false social security numbers and false employment information. The loss associated with these cases totals $419,580.
Under the PUA provisions of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), a person who is a business owner, self-employed worker, independent contractor, or gig worker qualified for PUA benefits administered by the DTRH if he/she previously performed such work in Puerto Rico and was unemployed, partially unemployed, unable to work, or unavailable to work due to a COVID-19 related reason.
To obtain these federal benefits, individuals could apply online through the DTRH’s web site—www.trabajo.pr.gov. Claimants answered various questions to establish their eligibility. Furthermore, claimants were required to provide personal identifying information, which included their name, mailing address, gender, email, phone number, social security number, and date of birth (collectively referred to as personal identification information). Moreover, claimants had to identify a qualifying occupational status and COVID-19 related reason for being out of work. Claimants could also submit several documents as evidence of their income.
If the DTRH approved the claimant’s application, the DTRH would send a check to the claimant via United States Postal Service for qualified benefits which could contain regular Unemployment Insurance (UI) benefits and federal funds in the form of Pandemic Emergency Unemployment Compensation (PEUC), PUA, and Federal Pandemic Unemployment Compensation (FPUC) benefits.
Ten indictments charge nine individuals with theft of government property and mail fraud. The defendants engaged in deceptive conduct designed to fraudulently obtain multiple unemployment checks from the DTRH by using false social security numbers. The defendants received UI benefits from the DTRH via mail in the form of checks that they were not qualified or authorized to receive. The defendants negotiated the various check fraudulently obtained from the DTRH.
The defendants charged in nine related indictments are: Millisen M. Martínez-Medina, who fraudulently obtained $54,870; her consensual partner Luis Cruz-Reyes, who fraudulently obtained $64,992; Jonathan Rivera-Gutiérrez, who fraudulently obtained $44,148; Jennifer Hernández-Romero, who fraudulently obtained $36, 222; Mary L. Benitez-Ortiz, who fraudulently obtained $32,628; Daniel Colón-Díaz, who fraudulently obtained $68,250; Gabriel A. Robles-Guzmán, who fraudulently obtained $33,030; Denisse Sánchez-Ortiz, who fraudulently obtained $23,172; and Luis A. Flores-Díaz, who fraudulently obtained $20, 910.
Defendant Millisen M. Martínez-Medina is also facing two counts of aggravated identity theft for using other people’s Social Security numbers without their authorization, during and in relation to a felony, that is, the mail fraud scheme.
In another indictment, defendants José Daniel Le Hardy-Figueroa, a U.S. Postal Employee, and Christoffer Pérez-Vélez, are charged with conspiracy to commit mail fraud, mail fraud and theft of government moneys in an amount of $11,388. The defendants conspired to fraudulently represent to the DTRH that José Daniel Le Hardy-Figueroa was an unemployed barber, when in fact he was a mail carrier employed by the United States Postal Service.
In the final indictment, defendant Félix R. Cruz-Santana, who fraudulently obtained $29,970, is charged with mail fraud, theft of government money, and misuse of a social security number.
“These defendants participated in a scheme to capitalize on the pandemic by filing fraudulent PUA applications and illegally enriching themselves at the expense of the government and taxpayers,” said U.S. Attorney Muldrow. “The United States Department of Justice, along with our state and federal counterparts, will continue to aggressively pursue those who seek to illegally exploit the ongoing national emergency for their own benefit. We commend the outstanding work and collaboration of our law enforcement partners in the investigation of these cases.”
Special Assistant U.S. Attorney (SAUSA) Vanessa D. Bonano-Rodríguez from the Social Security Administration; SAUSA Camille García-Jiménez from the United States Postal Service, and Assistant U.S. Attorney Victor Acevedo are in charge of the prosecution of these cases. If convicted, the defendants are facing the following sentences: 20 years of imprisonment for mail fraud and conspiracy to commit mail fraud; 10 years of imprisonment for theft of government money; and 5 years of imprisonment for misuse of Social Security number, a fine of up to $250,000 and three years of supervised release. Defendant Millisen M. Martínez-Medina also faces a two-year mandatory term of imprisonment for the aggravated identity theft charge.
To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
The indictments contain only charges and are not evidence of guilt. The defendants are presumed to be innocent unless and until proven guilty.
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Three Auburndale Men Each Sentenced to Fourteen Years in Prison for Brandishing Firearms During Convenience Store RobberiesRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell has sentenced Eddrick Wright (25, Auburndale), Kaylob Davis (23, Auburndale), and Amere Benjamin (22, Auburndale) each to 14 years in federal prison for brandishing firearms while they were robbing convenience stores in Lutz and New Port Richey. The court also ordered the defendants to forfeit the firearms and make restitution to the victims.
Wright, Davis, and Benjamin each had previously pleaded guilty to two counts of brandishing a firearm during and in relation to a robbery.
According to court documents, during the early morning of December 14, 2019, Wright, Davis, and Benjamin robbed two convenience stores, about an hour apart. In each case, they entered the store, pointed firearms at the clerks, ordered them to open the registers, and took cash. They also took products from the stores and personal property from the store employees. During the robberies, the defendants wore masks, including a Darth Vader mask.
Approximately two hours after the second robbery, Florida Highway Patrol pulled over a vehicle that Wright was driving and in which Davis and Benjamin were passengers. During a search of the vehicle, the FHP trooper found firearms, a Darth Vader mask, credit cards, and a driver license belonging to the convenience store employees.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pasco Sheriff’s Office, the Hillsborough County Sheriff’s Office, and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorney Michael Sinacore.
This case is also 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 and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.
Texas Tax Preparer Charged with Filing False ReturnsRead the Press Release
A federal grand jury in Waco, Texas, returned an indictment today charging a Texas tax preparer with 11 counts of assisting in the preparation of false tax returns.
According to the indictment, Rossalynn Thomas operated TaxPros, a tax return preparation business in Temple. Between November 2014 through January 2017, Thomas allegedly falsified clients’ tax returns by claiming, among other things, false business income and education credits in order to generate tax refunds. The indictment further alleges that one of Thomas’s clients was an IRS agent acting in an undercover capacity. Thomas allegedly prepared a tax return for the IRS agent that falsely claimed charitable contributions and unreimbursed business expenses.
If convicted, Thomas faces a maximum sentence of three years in prison for each count. She also faces a period of supervised release and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Robert A. Kemins and Matthew C. Hicks of the Justice Department’s Tax Division are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tarentum Felon Charged with Illegally Possessing a Firearm and AmmunitionRead the Press Release
PITTSBURGH, PA – A resident of Allegheny County has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Sean Marcus Talley, 21, formerly of Tarentum, PA, as the sole defendant.
According to Indictment, on or about January 28, 2020, Sean Marcus Talley, a convicted felon, possessed a firearm and ammunition. Federal law prohibits a convicted felon from possessing a firearm.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of not more than $250,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Barbara K. Doolittle is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Kensington Police Department conducted the investigation leading to the Indictment in this case. The case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Springfield Man Pleads Guilty to Racketeering Offenses Relating to ProstitutionRead the Press Release
BOSTON – A Springfield man pleaded guilty yesterday in federal court in Springfield to racketeering offenses relating to the promotion of commercial sex.
Kevin Smoot, 59, pleaded guilty to one count of conspiracy to use a facility of interstate commerce to promote prostitution offenses and seven counts of use of a facility of interstate commerce to promote prostitution offenses. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Aug. 19, 2021. On June 26, 2020, Smoot was arrested and charged by complaint. He was indicted in July 2020.
Between February 2019 and June 2020, Smoot conspired with others to promote commercial sex involving several women. Smoot promoted prostitution by transporting women to and from commercial sex appointments, recruiting and encouraging women to engage in commercial sex acts for money, and helping to procure illegal drugs for use by drug-addicted women engaged in commercial sex. Smoot promoted prostitution by providing a residential location for commercial sex acts between female victims of sex trafficking and male customers, taking actions to collect money from male customers, and benefiting from the proceeds of commercial sex acts performed by female victims of sex trafficking.
The charging statutes provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Massachusetts Attorney General Maura Healey; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Hampden County Sheriff Nicholas Cocchi; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Springfield Police Commissioner Cheryl Clapprood made the announcement. Assistant U.S. Attorney Alex J. Grant of Mendell’s Springfield Branch Office is prosecuting the case.
Spencerport Man Going to Prison Following Child Sex StingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Michael Greco, 25 of Spencerport, NY, who was convicted of attempted receipt of child pornography, was sentenced to serve 70 months in prison and 15 years supervised release by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Kyle Rossi, who handled the case, stated that in January 2020, the defendant engaged in online conversations with an individual who Greco believed was a mother engaged in the prostitution of her 13-year-old daughter. In fact, the “mother” was an undercover New York State Police (NYSP) investigator. Between January 2 and January 7, 2020, the defendant exchanged text messages and phone calls with the investigator, during which Greco agreed to pay $100 in order to have sex with the 13-year-old child.
On January 7, 2020, the defendant traveled to a pre-arranged destination, expecting to meet the child for sex. Instead, Greco was taken into custody by the NYSP and Homeland Security Investigations. The defendant was in possession of $100, which was the price he negotiated to have sex with the child, as well as condoms and candy for the child. A subsequent search of his cell phone revealed that Greco attempted to receive child pornography via the Internet.
The sentencing is the result of an investigation by the NYSP Troop E Major Crimes Unit, Canandaigua, under the direction of Major Barry Chase, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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Second Managing Partner of Investment Advisory Firm Pleads Guilty to Defrauding Clients and Investors in over $100 Million Ponzi-Like Fraud SchemeRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, announced that MARTIN SILVER, a managing partner and the chief operating officer of the New York-based investment advisory firm International Investment Group (“IIG”), pled guilty today before U.S. District Judge Alvin K. Hellerstein to investment adviser fraud, securities fraud, and wire fraud offenses in connection with an over $100 million scheme to defraud IIG’s investment advisory fund clients and investors. Throughout the course of more than 10 years, SILVER perpetrated the scheme by, among other fraudulent actions, creating fictitious investments and overvaluing investments used to generate funds to pay off earlier investors in a Ponzi-like manner. In connection with his plea agreement, SILVER has also agreed to cooperate with the Government’s ongoing investigation.
Manhattan U.S. Attorney Audrey Strauss said: “Today, Martin Silver admitted to participating in a sophisticated, decade-long scheme to defraud IIG funds and investors, abandoning his fiduciary responsibilities to IIG’s clients, and causing millions of dollars of losses. My Office remains committed to policing investment advisers who seek to take advantage of their clients for personal and professional gain.”
According to the allegations contained in the Information and based on statements made in Manhattan federal court:
Background of IIG
SILVER and a co-conspirator (“CC-1”) founded IIG in 1994. SILVER was a managing partner and the chief operating officer of IIG. IIG, an SEC-registered investment adviser, provided investment management and advisory services, including for three private funds that it operated: (1) the IIG Trade Opportunities Fund N.V. (“TOF”), (2) the IIG Global Trade Finance Fund, Ltd. (“GTFF”), and (3) the IIG Structured Trade Finance Fund, Ltd. (“STFF”). IIG also advised the Venezuela Recovery Fund (“VRF”), a fund that managed the remaining assets of a failed Venezuelan bank (VRF, together with TOF, GTFF, and STFF, the “IIG Funds”). In March 2018, IIG reported to the SEC that it had approximately $373 million in assets under management.
IIG advertised itself as specializing in global trade financing, particularly in providing trade finance loans to small and medium-sized businesses. IIG’s principal investment advisory strategy, including with respect to the IIG Funds, was investing in trade finance loans that it also originated. Trade finance loans are used by small and medium-sized companies, typically exporters and importers, to facilitate international trade. IIG’s purported expertise was in trade finance loans to borrowers located in Central or South America, and in a variety of industries, with a stated focus on “soft commodities,” such as coffee, agriculture, fishing, and other food products. IIG’s trade finance loans were purportedly secured by collateral, such as the underlying traded goods, assets held by the borrowers, or expected payments by third parties.
Investments in TOF, STFF, and GTFF were marketed by IIG to institutional investors, such as pension funds, hedge funds, and insurers. In offering memoranda and communications with investors, IIG advertised strict risk controls, such as promises to use diligence to carefully select borrowers or issuers with trusted management and marketable assets, and portfolio concentration limits based on borrower, developing country, and industry.
IIG purported to value the trade finance loans in the IIG Funds on a regular basis. IIG and, in turn, SILVER, received a performance fee with respect to the IIG Funds, as well as a management fee, which was calculated as a percentage of the assets under management held in the Funds.
The Scheme
From approximately 2007 to 2019, SILVER conspired to defraud investors in IIG-managed funds by: (i) overvaluing distressed loans held by the IIG Funds, (ii) falsifying paperwork to create a series of fake loans that were classified, fraudulently, as positively performing loans, and to otherwise hide losses, (iii) selling overvalued and fake loans to a collateralized loan obligation trust and new private funds established and advised by IIG, and (iv) using the proceeds from those fraudulent sales to generate liquidity required to pay off earlier investors in a Ponzi-like manner.
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MARTIN SILVER, 63, of New Jersey, pled guilty to one count of conspiracy to commit investment adviser fraud, securities fraud, and wire fraud, which carries a maximum sentence of five years in prison; one count of securities fraud, which carries a maximum sentence of 20 years in prison, and one count of wire fraud, which carries a maximum sentence of 20 years in prison. Sentencing before Judge Hellerstein has been scheduled for November 16, 2021, at 11:00 a.m.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the investigative work of the FBI and also thanked the SEC for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Drew Skinner, Negar Tekeei, and Alex Rossmiller are in charge of the prosecution.
San Diego Woman Pleads Guilty to Conspiracy to Launder Almost $600,000 from Department of Defense Bribery SchemeRead the Press Release
Assistant U. S. Attorneys Michelle L. Wasserman (619) 546-8431 and Carling Donovan (619) 546-4343
NEWS RELEASE SUMMARY – April 13, 2021
SAN DIEGO – Liberty Gutierrez pleaded guilty today to conspiring to launder the proceeds of a bribery scheme involving a former employee of the Naval Information Warfare Center in San Diego, California, and various defense contractors.
According to Gutierrez’s plea agreement, the Naval Information Warfare Center employee, identified in court documents as “Individual-1,” solicited and accepted things of value from various defense contractors, including three defense contractors identified in her plea agreement as Contractor-1, Contractor-2, and Contractor-3.
Among these gifts were jobs for friends and family, tickets to premier sporting events, and expensive dinners. Gutierrez further admitted that Individual-1 solicited jobs for Gutierrez from these contractors. Although Gutierrez was employed full-time at a real estate and mortgage company in San Diego from April 2015 to February 2021, Individual-1 nonetheless obtained “full-time” jobs for Gutierrez at Contractor-1 from approximately October 2015 to September 2018; Contractor-2 from approximately April 2017 to July 2019; and Contractor-3 from approximately October 2018 to December 2019.
As part of her plea agreement, Gutierrez admitted to doing only minimal work at each of these jobs, and then falsely billing her time as if she were working full time on a government contract. Each of the contractors then passed along Gutierrez’s fraudulent labor charges to the United States Government for payment. Gutierrez further admitted that she agreed to give Individual-1 half of her salary from Contractor-2, or approximately $2,000 every month, in cash, some of which Individual-1 stashed in his golf bag. In total, Gutierrez kicked back over $60,000 in cash to Individual-1 under this arrangement. As part of the conspiracy, Individual-1 additionally secured a job for his wife at Contractor-1 in approximately January 2017.
As alleged in the Information, in exchange for these and other gifts, Individual-1, who was certified as a Contracting Officer Representative as part of his job at Naval Information Warfare Center, used his position to steer millions of dollars of contracts to his favored contractors. For example, Individual-1 ensured that Contractor-1 was awarded a $3 million “Other Transaction Authority,” a federal procurement vehicle, at the same time he was soliciting a job for Gutierrez from Contractor-1.
Similarly, Individual-1 ensured that Contractor-2 was awarded a $300 million ceiling task order, while working with an executive vice-president at Contractor-2 to create the “job” for Gutierrez at the company. After Gutierrez was employed by Contractor-1, Contractor-2, and Contractor-3, Individual-1 continued to ensure that the companies received lucrative Department of Defense contracts and subcontracts. As further alleged in the Information, Individual-1 knew that Gutierrez’s labor charges for each of the contractors was false, but nonetheless approved invoices containing the fraudulent charges.
Gutierrez admitted that as part of the conspiracy she received $593,210.09 in salary payments from Contractor-1, Contractor-2, and Contractor-3, which were intended to promote the bribery scheme and conceal and disguise the nature, source, and ownership of the proceeds of the bribery.
“Bribery and public corruption have no place in government contracting, and will be aggressively investigated and prosecuted,” said Acting United States Attorney Randy S. Grossman. Grossman praised federal prosecutors Michelle Wasserman and Carling Donovan, as well as agents and investigators from Defense Criminal Investigative Service, Naval Criminal Investigative Service, Small Business Administration – Office of Inspector General, Internal Revenue Service Criminal Investigation, Department of Health and Human Services – Office of Inspector General, Naval Audit Service and Defense Contract Audit Agency for their outstanding work on this case.
Defense Criminal Investigative Service (DCIS) Special Agent in Charge Bryan Denny, Western Field Office, stated “This case offers an especially egregious example of corruption and the abuse of a position of public trust. The DCIS is committed to working with our law enforcement partners and the Department of Justice to ensure that all such crimes are discovered and fully prosecuted.”
“This should serve as a warning that those who seek to defraud the Department of the Navy will always be uncovered and brought to justice,” said NCIS Economic Crimes Field Office Special Agent in Charge Eric Maddox. “Ms. Gutierrez’s deliberate actions to perpetuate this scheme by accepting hundreds of thousands of dollars meant to support Department of Defense contracts wasted American taxpayer money, damaged the integrity of the procurement process, and squandered valuable investigative resources that could have been directed elsewhere. NCIS and our investigative partners remain committed to rooting out fraud that threatens the readiness of the warfighter.”
“Conspiring to fraudulently use government programs for personal gain will not be tolerated,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “OIG will aggressively root out fraud to protect the integrity of these programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
Derrick Franklin, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations, Special Investigations Branch, stated, “We will continue to support our law enforcement partners in this investigation to preserve the integrity of government contracts.”
“Ms. Gutierrez and her co-conspirators exploited illegal avenues to benefit themselves with taxpayer dollars meant for military programs,” said IRS Criminal Investigation, Special Agent in Charge Ryan L. Korner. “They cheated honest, hardworking contractors out of jobs with their corruption. Our special agents will use their financial expertise to trace the proceeds of bribery back to these criminals, and we are proud to work alongside our law enforcement partners in that effort.”
If you have information regarding fraud, waste, or abuse relating to Department of Defense personnel or operations, please contact the DoD Hotline at 800-424-9098.
DEFENDANT Case Number
Liberty Gutierrez Age: 61 San Diego, CA
SUMMARY OF CHARGES
Conspiracy to Commit Money Laundering – Title 18, U.S.C., Section 1956(h)
Maximum penalty: Twenty years in prison and $500,000 fine or twice the value of the property involved in the transaction, whichever is greater
AGENCY
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Small Business Administration – Office of Inspector General
Internal Revenue Service Criminal Investigation
Department of Health and Human Services – Office of Inspector General
Naval Audit Service
Defense Contract Audit Agency
San Diego Chiropractor Sentenced to Three Years in Prison for Multi-million Dollar Workers’ Compensation, Medicare, and TRICARE SchemesRead the Press Release
Assistant U. S. Attorney Valerie H. Chu (619) 546-6750
NEWS RELEASE SUMMARY – April 13, 2021
SAN DIEGO - Irvine resident Joserodel Zavala Candelario was sentenced in federal court yesterday to 36 months in federal custody for his participation in two huge health care fraud schemes, and for concealing income he received from those multi-million dollar schemes.
According to court documents, Candelario was a chiropractor licensed by the State of California Board of Chiropractic Examiners. He was the owner of Candelario Chiropractic, a Professional Corporation, and R.I.S.E. Medical Center, a Professional Corporation, dba R.I.S.E. Wellness Center ("RISE Wellness"), which operated at multiple locations in the Southern District of California, including at 5030 Bonita Road, Suite B, in Bonita and at 3231 Waring Road, Suite N, in Oceanside.
On January 21, 2020, the defendant pleaded guilty to a three-count superseding information, charging Conspiracy in violation of 18 U.S.C. § 371, Conspiracy to Commit Health Care Fraud in violation of 18 U.S.C. § 1349, and False Statement on Tax Return in violation of 26 U.S.C. § 7206(1). Separately, the defendant has been charged and has pleaded guilty in San Diego Superior Court case SCD281328 to Concealing an Event Affecting an Insurance Claim, in a violation of California Penal Code 550(b)(3).
The government’s sentencing papers reflect that, between approximately 2012 and July 2016, Candelario carried out a scheme to defraud Medicare and TRICARE out of millions of dollars by using physical therapy codes to bill for supposed physical therapy services performed on patients by individuals who were not licensed to provide physical therapy, including chiropractors, massage therapists, physical therapy aides, and an acupuncturist. As a result, patients who thought they were receiving medical treatment were instead receiving substandard care, all so Candelario could bill Medicare and TRICARE.
Candelario and his co-conspirators told patients that RISE Wellness offered an “integrated” approach to wellness, to convince patients to accept physical therapy, acupuncture, chiropractic, and diagnostic services at RISE Wellness, in order to fraudulently bill for non-covered services provided by unauthorized individuals, and collect as much money as possible from health care benefit programs.
Candelario specifically targeted TRICARE beneficiaries as patients, despite knowing that TRICARE did not cover many of the services rendered by providers at RISE Wellness. The main page for RISE Wellness’s website made this goal plain. It featured a photograph of an individual in a military uniform, saluting, with the message, “Supporting spinal health . . . You’ve only got one spine. Take great care of it with supportive chiropractic care,” even though TRICARE, the DoD health care program for uniformed service members, did not cover chiropractic treatment.
Once patients came in the door, the defendant pushed his staff to conduct diagnostic tests on every patient, regardless of medical necessity, to increase billing and payment, and he also demanded that staff meet quotas for the minimum number of diagnostic tests, and recommendations for durable medical equipment, or DME, massages and other services, regardless of whether specific patients needed the items and services. He also imposed quotas for the minimum number of patients with specific types of insurance coverage at RISE Wellness, e.g., “60 Tricare patients per day,” regardless of whether those patients needed treatments.
For example, on June 6, 2014, Candelario instructed a staff member, “I need you to do 5 axonii [diagnostic tests] a day no matter what for now on.” The following month, on July 7, 2014, Candelario texted, “OK team you are receiving 2 new diagnostic testing devices this month. I need 20 patients to be tested on each one this month no matter What [sic].”
Defendant then, knowing that TRICARE and Medicare did not pay for chiropractic, acupuncture, massages, and other services, mischaracterized those services as physical therapy in bills submitted to TRICARE and Medicare.
To increase billing and payment, the defendant pushed the schedulers to cram in as many as 50 patients per day for each provider. He complained when staff fell short of this goal, noting, on June 11, 2015, certain “front desk issues” including: “No[one] has called any patients to fill empty slots in provider schedules or grab patients in lobbies to put into provider schedules.”
Candelario fired or marginalized staff who disagreed with his efforts to prescribe, recommend, provide, or bill in a manner primarily intended to increase the billing and payment to RISE Wellness, and contrary to Medicare and Tricare rules and the medical need of the patients. On October 1, 2015, Candelario instructed that the chiropractors were “not allowed to treat” patients unless they first prescribed X-rays and three other diagnostic tests, plus DME. Eventually, on October 19, 2015, Candelario informed a co-conspirator, “I am finding it very difficult what needs we have [to retain the PA] moving forward.” About a week later, the PA was fired.
If a patient failed to show up for an appointment, Candelario directed staff to bill the health care benefit program for the visit, even though no visit had occurred and no service had been provided. For example, on March 9, 2015, Candelario wrote, about late reimbursements, that “the only solution is to start billing the missed appointments like i asked following the system.”
It was part of the scheme that, using the mean and manners described above, and others, the co-conspirators submitted and caused to be submitted at least $7,260,327.20 in false and fraudulent bills to TRICARE and Medicare. Of those fraudulent bills, TRICARE paid a total of $3,450,596.43 and Medicare paid $37,843.04.
In addition, between March 2012 and November 2015, Candelario carried on an unlawful cross-referral scheme, in which he would receive new Workers’ Compensation (“WC”) patients for RISE Wellness. In return for new patients, Candelario agreed to meet a quota for the “value” of ancillary services and DME he was expected to prescribe for each patient sent to him by co-conspirators, with a “value” -- such as $30-$50 per MRI referral -- set by those conspirators. As part of the scheme, Candelario, who could function as a WC primary care provider, dictated the same treatment plan for all WC patients, regardless of their individual medical needs, so he could fraudulently bill WC insurers. The defendant admitted that he violated his duty of honest services to his patients. He received approximately 529 new WC patients as a result of the scheme, and he submitted approximately $6,605,364 in bills to insurers for services rendered to those patients. Of those billed amounts, he was paid $771,000 by WC insurers
In addition to fleecing taxpayer-funded government programs out of millions of dollars, Candelario failed to pay his fair share of taxes on the funds he fraudulently took, resulting in $505,000 in tax losses just for tax year 2013.
Judge Bashant credited the rehabilitative efforts the defendant has made since his conviction to improve his circumstances. Statements in sentencing papers and in court reflect that the defendant has been teaching as an adjunct instructor at West Coast University, Canyon College, Santa Ana College, Orange Coast College, and National University, in such topics as human anatomy, human physiology, biology, Medical Ethics and Medical Billing. But in aggravation, the Court noted that Candelario “put profits over the medical needs of patients,” which warranted punishment.
“With so many health care systems and personnel strained due to the pandemic, we cannot afford the financial and physical costs of fraud,” Acting U.S. Attorney Randy Grossman noted. “Doctors are especially culpable as they are violating the sacred trust they should have with their patients. We are working hard every day to protect patients, taxpayers and ratepayers who are being exploited by those members of the medical community who prefer purchasing power over principle.” Mr. Grossman commended the work of AUSAs Valerie H. Chu and Michelle Wasserman, forensic auditor Robbin Ganicliffe, and paralegal Joan Carter, and the case agents from the FBI, DCIS, and IRS-CI.
“With this sentence, the defendant has now been held accountable for the years of lies and deceit in defrauding our healthcare system,” said FBI Special Agent in Charge Suzanne Turner. “Let this sentence serve as a warning to those who intentionally try to line their pockets through fraud schemes rather than provide the honest service and care people deserve.”
The defendant requested a delay of the self-surrender date until after grades are due to be submitted for the current school term he is teaching. The defendant is scheduled to self surrender on or before July 14 at noon. A hearing to address forfeiture and restitution will be held on May 19 at 2 p.m. The United States is seeking restitution of $3,450,596.43 to TRICARE, $37,843.04 to Medicare, and a personal money judgment of $1,300,899.63.
DEFENDANT Case Number 18CR3057-BAS, 18CR3058-BAS
Joserodel Zavala Candelario Age: 48 Irvine, CA
SUMMARY OF CHARGES
Conspiracy – Title 18, U.S.C., Section 371
Maximum penalty: 5 years’ imprisonment and $250,000 fine
Conspiracy to Commit Health Care Fraud – Title 18, U.S.C., Section 1349
Maximum penalty: Ten years’ imprisonment and $250,000 fine
Subscribing to a False Tax Return - 26 U.S.C. §7203(1)
Maximum penalty: Three years’ imprisonment and $100,000 fine
AGENCIES
Federal Bureau of Investigation
Defense Criminal Investigative Service
Internal Revenue Service – Criminal Investigations
California Department of Insurance
Rochester Man Sentenced to Five Years for Participating in Methamphetamine Trafficking ConspiracyRead the Press Release
CONCORD – William McKay, 48, of Rochester, was sentenced to 60 months in federal prison for participating in a conspiracy to possess with the intent to distribute, and to distribute, methamphetamine, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, McKay conspired with James Nesbit and Haley Hansler to distribute crystal “ice” methamphetamine. In 2018, McKay ordered three packages totaling approximately 742 grams of “ice” methamphetamine from vendors on the Dark Web that were intended for McKay’s personal use and for McKay, Nesbit and Hansler to distribute to drug customers in New Hampshire.
McKay previously pleaded guilty on October 23, 2020. In April 2020, Hansler was sentenced to 60 months in federal prison. James Nesbit was sentenced in November 2020 to 120 months in federal prison.
“Methamphetamine is a dangerous and addictive drug that can ruin lives and damage communities,” said Acting U.S. Attorney Farley. “We are working closely with our law enforcement partners to identify and prosecute the drug traffickers who are distributing methamphetamine in the Granite State. As this case demonstrates, those who choose to sell methamphetamine in New Hampshire will face substantial consequences for their unlawful conduct.”
“DEA stands committed to keeping highly addictive drugs like methamphetamine and fentanyl off the streets of New Hampshire,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s sentence not only holds Mr. McKay accountable for his crimes but serves as a warning to those traffickers who are contributing to the drug crisis in America. This investigation demonstrates the strength of collaborative law enforcement efforts and our strong partnership with the U.S. Attorney’s Office.”
This investigation 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.
This case was investigated by the DEA’s Tactical Diversion Squad, the New Hampshire State Police, the United States Postal Inspection Service, and the Strafford County Drug Task Force. The case was prosecuted by Assistant U.S. Attorney Jennifer Cole Davis.
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Rhode Island Man Allegedly Swindled Victims Who Thought They Were Investing in Las Vegas Show Based on 'Magic Mike' FilmsRead the Press Release
LOS ANGELES – A Rhode Island man was arrested this morning on federal charges alleging that he defrauded investors out of more than $4.2 million in connection with “Magic Mike Live,” a stage show at the Hard Rock Hotel and Casino in Las Vegas based on two Magic Mike films that chronicle the life of a male stripper.
John A. Santilli Jr., 47, of East Greenwich, Rhode Island, is named in a 10-count indictment unsealed today that charges him with one count of securities fraud, eight counts of wire fraud, and one count of aggravated identity theft. Santilli made his initial court appearance this morning in United States District Court in Rhode Island, where a judge ordered his release on a $100,000 bond.
According to the indictment, Santilli managed and partly owned Aloris Entertainment, LLC, which acquired an interest – through securities called “Class A Units” – in Mike’s Mobile Detailing, LLC, the company that operates the Magic Mike Live show in Las Vegas. Santilli raised funds from victims by soliciting investments in “Aloris Magic Mike LP,” a different business that he falsely told investors owned the Class A Units. Santilli allegedly lied to investors, telling them that, in return for their investment, they would receive “shares” in Aloris Magic Mike LP that corresponded to a particular number of Class A Units and entitled them to a percentage of the profits from “Magic Mike Live.” To bolster his false claims, the indictment states, Santilli used a doctored a legal document that made it appear that Aloris Magic Mike LP was a member (i.e., a shareholder) of Mike’s Mobile Detailing.
The indictment also states that Santilli misappropriated a significant portion of his victims’ investments, including withdrawing more than $1 million at casinos across the United States. To raise more funds, Santilli falsely told his victims that new investment opportunities had arisen, resulting in Santilli selling shares in his businesses that corresponded to nearly double the number of Class A Units of Mike’s Mobile Detailing that his company actually owned, the indictment alleges.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If convicted of all charges, Santilli would face a statutory maximum sentence of 182 years in prison.
The FBI is investigating this matter.
Assistant United States Attorney Alexander B. Schwab of the Major Frauds Section is prosecuting this case.
Quincy Man Charged with Meth TraffickingRead the Press Release
SPRINGFIELD, Ill. – A Quincy, Ill., man made his initial appearance in federal court today after he was charged by criminal complaint for alleged possession of methamphetamine with intent to distribute. Robert L. Tallent, 39, of the 500 block of S. 19th St., Quincy, Ill., was arrested shortly after midnight on Saturday, April 10, 2021, in Quincy.
During today’s audio/videoconference hearing, before U.S. Magistrate Judge Tom Schanzle-Haskins, Tallent waived a detention hearing and was ordered to remain detained in the custody of the U.S. Marshals Service. A preliminary hearing has been scheduled on April 15.
The complaint and supporting affidavit allege that on March 13, 2021, Tallent possessed approximately 19 grams of a crystal substance in six baggies, when Quincy police conducted a traffic stop on a vehicle driven by Tallent. At the time, Tallent had an outstanding Adams County warrant for a charge of possession of methamphetamine. According to the affidavit, the substance tested positive for methamphetamine in a field test.
If convicted, the statutory penalty for the offense is five to 40 years in prison.
The charge is the result of an investigation by the Illinois State Police West Central Illinois Task Force; the FBI – Springfield Division; the Quincy Police Department; and the Adams County Sheriff’s Office. Assistant U.S. Attorney Sarah Seberger represents the government in the federal case prosecution with the cooperation of the Adams County State’s Attorney’s Office.
Members of the public are reminded that a complaint is merely an accusation; each defendant is presumed innocent unless proven guilty.
Pittsburgh Man Indicted for Possessing Fentanyl and a Fentanyl AnalogueRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Frederick Allen, 39, as the sole defendant.
According to the Indictment, on February 10, 2021, Allen is alleged to have possessed with the intent to distribute a quantity of fentanyl and fluorofentanyl.
The law provides for a maximum total sentence of 20 years in prison, a fine of $2,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Douglas C. Maloney is prosecuting this case on behalf of the government.
The Pittsburgh Bureau of Police and DEA conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania Man Pleads Guilty to Obstruction of Justice Relating to Attempts to Acquire RicinRead the Press Release
BOSTON – A Pennsylvania man pleaded guilty yesterday in federal court in Boston to obstructing an investigation into his efforts to acquire the deadly toxin, ricin.
Dr. Ishtiaq Ali Saaem, 37, of Allentown, Penn., pleaded guilty to one count of obstruction of justice. U.S District Court Judge Richard G. Stearns scheduled sentencing for Aug. 18, 2021.
According to court records, Saaem held a Ph.D. in biomedical engineering, resided in Massachusetts and worked as the director of advanced research at a biotechnology firm based in Massachusetts. Saaem became interested in acquiring ricin from castor beans as well as convallatoxin, a poison found in lily of the valley plants, after watching “Breaking Bad,” a popular television show. Saaem ordered online 100 packets of castor beans, each containing eight seeds. Saaem falsely told law enforcement agents that he purchased castor beans for planting at his apartment for decoration and that he had accidentally purchased 100 packets instead of one. After he spoke to agents, Saaem researched tasteless poisons that could be made at home.
During subsequent meetings with law enforcement personnel, Saeem stated that his interest in buying castor beans related to an interest in gardening. He also made misleading statements about his knowledge of ricin.
The charge of obstruction of justice provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. Assistant U.S. Attorney Kriss Basil of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Owner of Southern Arizona Health Care Equipment Company Sentenced to 36 Months for Defrauding MedicareRead the Press Release
TUCSON, Ariz. – On April 9, Frances Jones, 52, of Chandler, Arizona, was sentenced to 36 months in prison by U.S. District Court Judge John C. Hinderaker. Jones previously pleaded guilty to health care fraud.
Jones, a licensed Medicare provider of durable medical equipment and the owner and operator of Oxicheck Northwest, admitted that she fraudulently billed Medicare between 2011 and March 2018 for durable medical equipment that was not provided to patients. Jones also used Medicare patient and medical provider identification without their knowledge or consent.
The Court ordered Jones to pay $862,762.32 in restitution for losses incurred by the Medicare Program as a result of her fraudulent scheme.
“This sentencing demonstrates the seriousness of Ms. Jones’ actions. Stealing Medicare funds and patients’ medical identities is not a victimless crime,” said Timothy B. DeFrancesca, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “With the aid of our law enforcement partners, we will continue protecting federal health care programs.”
The U.S. Attorney’s Office reminds Medicare recipients to monitor their Medicare billing statements to ensure that the services documented were provided. To report any suspected Medicare Fraud, call 1-800-MEDICARE (1-800-633-4227).
The Department of Health and Human Services-Office of the Inspector General and the Federal Bureau of Investigation conducted the investigation in this case. The prosecution was handled by Assistant U.S. Attorney Lori Price for the U.S. Attorney’s Office, District of Arizona, Tucson.
CASE NUMBER: CR18-00821-JCH-DTF
RELEASE NUMBER: 2021-026_Jones# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Orange County Man Agrees to Plead Guilty to Tax Evasion for Failing to Report Interest from Millions of Dollars in Foreign Bank AccountsRead the Press Release
SANTA ANA, California – A South Korean national who lives in Orange County has been charged with tax evasion for failing to report on a federal income tax return interest income he earned from deposits in bank accounts he controlled in Hong Kong and Singapore.
Jean Guy Minn, 56, of Irvine, who is residing in the United States as a legal permanent resident, was named in a criminal information filed late Monday that charges him with one count of tax evasion.
The information specifically accuses Minn of filing a personal tax return for the year 2016 that failed to report $552,454 in interest income he earned from a foreign bank account. As a result, Minn failed to pay $162,369 in federal income tax that year.
In conjunction with the information, prosecutors on Monday also filed a plea agreement in which Minn agreed to plead guilty to the felony tax offense. In the plea agreement, Minn admitted that he failed to report a total of $2,365,427 of interest income for the tax years 2010 through 2017.
In his plea agreement, Minn agreed to pay $573,916 in back taxes for the eight years and an as-yet-undetermined amount of penalties. For example, because he also failed to report the existence of the accounts to U.S. authorities, the plea agreement calls for Minn to pay a 50 percent penalty on one of his foreign accounts that held up to approximately $18 million.
Minn has been directed to make his initial court appearance in this case in United States District Court in Santa Ana on April 26.
The statutory maximum sentence for the tax evasion offense is five years in federal prison.
This case was investigated by IRS Criminal Investigation.
This case is being prosecuted by Assistant United States Attorney Lawrence E. Kole of the Santa Ana Branch Office.
Online Vendor Pleads Guilty to $5 Million Postage Fraud SchemeRead the Press Release
Assistant U.S. Attorney Daniel C. Silva (619) 546-9713
NEWS RELEASE SUMMARY – April 13, 2021
SAN DIEGO – Cuong H. Nguyen pleaded guilty in federal court today to conspiring to engage in a wide-ranging postage counterfeiting, forging, and tampering scheme that, over the course of multiple years and more than 160,000 packages, deprived the U.S. Postal Service of approximately $5 million of postage due and owing.
Special Agents from U.S. Postal Inspection Service, IRS Criminal Investigation, and the Financial Investigations and Border Crimes Task Force (the “FIBC” - a multiagency Task Force based in San Diego and Imperial Counties, and funded by the Treasury Executive Office of Asset Forfeiture) led the investigation.
As admitted in the plea agreement entered today before U.S. Magistrate Judge Allison H. Goddard, Cuong digitally altered, counterfeited, forged, and tampered with various “postage evidencing systems”—i.e., postage meters. These postage meters are intended to expedite the delivery and shipment of USPS packages by allowing mailers to purchase and affix postage labels in advance of depositing them into the mail. Nguyen primarily used the postage evidencing system known as Click-N-Ship® when sending packages of beverages and food products from his businesses in San Diego.
As stated in his plea agreement, Cuong admitted that he misrepresented information appearing on postage labels attached to packages in several ways—including misstating the weight, size, destination, and origin of the packages—that were intended to, and in fact did deceive, the USPS as to the underpayment of postage. Accordingly, when the USPS received the packages with labels that Nguyen and others had altered, forged, and counterfeited, they paid much less to the USPS than was owed, but the packages—approximately 162,221 between 2015 and 2019—were delivered anyway.
“Those who defraud the Postal Service are effectively stealing from the U.S. Treasury and the nation’s taxpayers,” said Acting U.S. Attorney Randy S. Grossman. “We are committed to vigorously investigating and prosecuting these profiteers.” U.S. Attorney Grossman commended Assistant U.S. Attorney Danny Silva and the U.S. Postal Inspection Service and IRS-Criminal Investigation agents who unraveled this complex, digital crime.
As a result of the conspiracy, Nguyen acknowledged that the underpayment of postage to the USPS was approximately $5,127,712.88, resulting in net profits to Nguyen, his businesses, and others of $862,374.00.
“Postal Inspectors protect the U.S. mail from criminal misuse in a variety of ways, including efforts to root out postage fraud,” stated Inspector in Charge Melisa Llosa of the U.S. Postal Inspection Service Los Angeles Division. “Scammers who selfishly deprive the USPS of revenue place an undue strain on America’s most trusted service. I would like to thank our law enforcement partners, the U.S. Attorney’s Office for the Southern District of California, IRS Criminal Investigation, and the Financial Investigations and Border Crimes Task Force for their assistance in a successful resolution.”
“IRS Criminal Investigation is proud to have worked alongside our law enforcement partners at the USPIS Inspection Service and the FIBC to crack this complex web of digital crime and theft,” said IRS-CI L.A. Field Office Special Agent in Charge Ryan L. Korner. “No matter the venue, stealing money from the U.S. government is stealing money from American taxpayers. Our talented team of special agents and professional staff will continue to work tirelessly to overcome all challenges, including the current pandemic, to ensure that financial crimes will never pay.”
Sentencing is scheduled to occur on July 12, 2021 at 9 a.m. As part of his agreement to plead guilty, Nguyen agreed to forfeit $862,374.00 to the United States, as profits, proceeds, and property obtained directly or indirectly, as the result of the postage fraud conspiracy.
DEFENDANT Case Numbers 21-CR-1131-BAS
Cuong H. Nguyen San Diego, CA Age: 37
SUMMARY OF CHARGES
Criminal Conspiracy – Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison, forfeiture, and $250,000 fine
AGENCIES
United States Postal Inspection Service
IRS Criminal Investigation—Financial Investigations and Border Crimes Task Force
*The charges and allegations contained in an indictment or information are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Omaha Man Sentenced to Prison for Possession of a FirearmRead the Press Release
COUNCIL BLUFFS, Iowa – On April 12, 2021, Jacob Benjamin Tuttle, Age 42, of Omaha, Nebraska, was sentenced for being a prohibited person in possession of a firearm by District Court Judge Rebecca Goodgame Ebinger to 84 months in prison announced Acting United States Attorney Richard D. Westphal. In addition, Tuttle was ordered to serve 3 years of supervised release following his prison term and pay a $100 special assessment to the Crime Victims Fund. Tuttle pleaded guilty to the offense on August 11, 2020.
On November 26, 2019 Tuttle was driving a stolen car on a rural two-lane highway in Mills County, IA. when Tuttle saw a Sheriff’s patrol vehicle behind him. Tuttle accelerated to 100 mph before he crashed the car on the side of the road and ran from the scene. He was arrested a short time later.
On the front passenger seat of the stolen vehicle, officers found a Taurus .357 Magnum, S# LP70893, along with 12 grams of methamphetamine. Tuttle is a convicted felon and drug user, therefore, prohibited from possessing firearms.
The investigation was conducted by the Mills County Sheriff’s Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Northern California Man Sentenced for Illegal Receipt of FirearmsRead the Press Release
LAS VEGAS, Nev. – A charged felon from California has been sentenced today to 14 months in federal prison for receiving four firearms, announced Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Patrick Gorman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Taisia Soloai Fauolo, 24, of Oakley, California (within the San Francisco Bay Area), pleaded guilty to one count of illegal receipt of a firearm by a person under indictment. In addition to the term of imprisonment, Chief U.S. District Judge Miranda M. Du sentenced Fauolo to three years of supervised release.
According to court documents, on or about January 18, 2018, Fauolo’s co-defendant James Williams Jr. bought four firearms: a FN Five-Seven pistol, a Glock 42 .380 caliber pistol, a Glock 19C 9mm pistol, and a Glock 30S .45 caliber pistol from a gun store in Las Vegas, Nevada. Later that same day, Fauolo received these guns from Williams. The FN pistol and Glock 19C pistols are semiautomatic firearms capable of accepting large capacity magazines. At the time he received those firearms from Williams, Fauolo knew he was charged with two felony offenses in San Francisco County.
Williams, of Las Vegas, Nevada, was sentenced to 28 months in prison in February 2020, following a jury conviction for making a false statement during a purchase of a firearm. Between May 2017 and May 2018, Williams purchased 35 firearms, mostly handguns, and many of the same make, model, and caliber from various Las Vegas firearms dealers over approximately a one-year period.
This case was the product of an investigation by the ATF, with assistance by the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Jared Grimmer prosecuted the case.
The public is urged to report illegal firearms activity to the ATF at 1-800-ATF-GUNS (1-800-283-4867).
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 ATF 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.
For more information about Project Guardian, visit https://www.justice.gov/projectguardian.
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Northborough Man Sentenced for Aiding Romance and Lottery Schemes Targeting ElderlyRead the Press Release
BOSTON – A Northborough man was sentenced today in federal court in Worcester for assisting in fraud schemes targeting elderly victims and agreeing to launder the proceeds of such schemes and other criminal activity, which totaled more than $600,000.
Austin Nedved, 29, was sentenced by U.S. District Court Judge Timothy S. Hillman to 97 months and 17 days in prison (12 months of which is to run consecutively to a sentence Nedved is serving for a separate fraud conviction in the Eastern District of Kentucky), three years of supervised release and restitution of $569,750. In December 2020, Nedved pleaded guilty to one count of aiding and abetting wire fraud and one count of money laundering conspiracy.
Nedved ran a business in which he bought and sold digital currencies, including Bitcoin, for cash. Nedved advertised his services under the screen name “USMC1991” over LocalBitcoins.com and Paxful.com, two online businesses that matched Bitcoin buyers and sellers and facilitated their transactions.
From at least 2017 through 2019, Nedved aided and abetted romance and lottery schemes targeting elderly victims. In romance schemes, fraudsters convince victims to send money abroad to purported love interests, while in lottery schemes fraudsters convince victims that they can obtain lottery winnings or sizeable government grants by forwarding cash for administrative fees or expenses. Despite knowing or being willfully blind to the fact that his customers were fraud victims, Nedved sold Bitcoin to them so that they could send money overseas to the fraudsters.
For instance, in late 2017, an individual posing as “Jonathan G.” over social media led a 78-year old victim to believe that he was a Weston, Mass. businessman who owned an oil company. Without ever meeting “Jonathan G.” in person, the victim fell in love and agreed to marry him. “Jonathan G.” then falsely told the victim that his oil company had experienced an accident abroad in which people had died, and that he needed money to settle financial obligations arising from the accident with a foreign government. “Jonathan G.” claimed that until he did so, he would not be able to return to the United States to marry the victim. “Jonathan G.” told the victim to pay him via Bitcoin. The victim, who had never before purchased digital currency, agreed to send him money and contacted Nedved by phone and text message in Massachusetts to arrange a cash-for-Bitcoin transaction.
On June 25, 2018, in a parking lot in Kittery, Maine, the victim gave Nedved a cashier’s check to purchase approximately $100,000 in bitcoin. Nedved then released approximately $100,000 in Bitcoin, less his commission, to a Bitcoin wallet controlled by “Jonathan G.” When Nedved accepted $100,000 from the victim, Nedved knew or was willfully blind to the fact that the payor was the victim of a scam. On June 29, 2018, in Leominster, Nedved and a co-conspirator took another $40,000 from the victim for the same purpose.
In total, Nedved and his co-conspirators converted more than $630,000 of fraud and other criminal proceeds to Bitcoin. They then either returned the Bitcoin to the victims of the fraud or forwarded it to unidentified third parties.
Acting United States Attorney Nathaniel R. Mendell; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations; and Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. Assistant U.S. Attorney Seth B. Kosto, Deputy Chief of Mendell’s Securities, Financial & Cyber Fraud Unit, prosecuted the case.
New York Man Sentenced to 10 Years on Federal Drug ChargeRead the Press Release
PORTLAND, Maine: A Brooklyn, New York man was sentenced today in federal court for conspiring to distribute and possess with intent to distribute cocaine base and heroin, Acting U.S. Attorney Donald E. Clark announced.
Chief U.S. District Judge Jon D. Levy sentenced Melquan Jordan, aka “Squirrel,” 31, to 10 years in prison and four years of supervised release. Following a four-day trial, a jury returned a guilty verdict against Jordan and a co-defendant, Edward Canty III, on October 24, 2019.
According to trial evidence, between September 2016 and December 2016, Jordan and others conspired to distribute and possess with the intent to distribute cocaine base and heroin transported from outside Maine for distribution in Portland. Jordan’s distribution involved more than 100 grams of heroin.
Following the jury’s guilty verdict, Canty, 31, also of Brooklyn, was sentenced to 66 months imprisonment and three years of supervised release. The other conspirators pleaded guilty, and all but one have been sentenced. Lamale Lawson, 29, of Brooklyn, was sentenced to 84 months imprisonment and four years of supervised release; Christopher Rickett, 33, of Portland, was sentenced to three years of probation; and Sierrha Frisbie, 29, of Portland, also was sentenced to three years of probation. Akeem Cruz, 31, of Brooklyn, awaits sentencing.
The Portland and South Portland Police Departments; the Maine Drug Enforcement Agency; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the FBI investigated the case.
New York Man Convicted of Conspiracy and Attempt to Engage in Sex Trafficking of A MinorRead the Press Release
Tampa, FL – A federal jury has found Michael Davis (37, Jamaica, NY) guilty of conspiring and attempting to engage in the sex trafficking of a minor. He faces a minimum mandatory of 10 years, and up to life, in federal prison. His sentencing hearing is scheduled for July 9, 2021.
Davis had been indicted on August 13, 2019.
According to evidence presented at trial, in August 2017, Davis began using a social networking website to recruit young women to engage in commercial sex. In December 2017, Davis used the website to send a message to an individual whom he believed was a 17-year-old girl living in Denver, Colorado. Unbeknownst to Davis, however, he was communicating with an undercover agent who specialized in child sex trafficking investigations.
Over the course of several weeks, Davis conspired with another individual to attempt to recruit, entice, transport, and obtain the purported child to travel to the Tampa Bay area so that he could cause her to engage in commercial sex. In an effort to persuade the child, Davis talked about the lavish lifestyle she would have and sent photos of large amounts of cash and marijuana. Davis orchestrated the purchase of a one-way bus ticket for the child and promised to pick her up from the bus station. The day before the child was expected to arrive in Tampa, federal agents coordinated with local law enforcement officers to detain Davis, who admitted he had communicated with the child and purchased a bus ticket for her.
This case was investigated by Federal Bureau Investigation, with assistance from the Largo Police Department and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Lisa M. Thelwell.
This case resulted from the U.S. Attorney’s Office’s efforts to collaborate with local, state, and federal law enforcement agencies to detect, investigate, and prosecute coercive human trafficking in the Tampa area. This includes trafficking of minors, forced labor, transnational sex trafficking, and sex trafficking of adults by force, fraud, or coercion. Information on the Department of Justice’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
New Jersey Man Sentenced to 141 Months in Prison for Armed Robbery of BarbershopRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 141 months in prison for robbing a Camden barbershop at gunpoint, Acting U.S. Attorney Rachael A. Honig announced.
Benjamin Daye, 34, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of Hobbs Act robbery and one count of brandishing a firearm during a crime of violence. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On Nov. 23, 2019, Daye entered a barbershop in Camden armed with a loaded handgun. He grabbed a juvenile customer, pointed the gun at the customer’s head, and demanded cash and belongings from employees and customers. Daye fled and was apprehended shortly thereafter next to a bag containing the handgun and the stolen items.
In addition to the prison term, Judge Kugler sentenced Daye to three years of supervised release and ordered Daye to pay restitution in the amount of $1,672 to the victims of his offenses.
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 ATF, under the direction of Acting Special Agent in Charge Craig B. Kailimai; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; and the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer, with the investigation leading to today’s sentencing. This investigation was a joint efforts of the ATF Camden Field Office and the Camden County Police Department (CCPD) Shooting Response Team (SRT). ATF and CCPD have formulated a partnership composed of special agents, detectives, and intelligence analysts that investigate shooting incidents in real time.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
Navajo man sentenced to five years in prison for assaulting a child in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Kevin Ernest Lewis, 32, from Crownpoint, New Mexico, and an enrolled member of the Navajo Nation, was sentenced April 12, 2021, in federal court to five years in prison for assault of a minor resulting in substantial bodily injury in Indian Country.
Lewis pleaded guilty on Feb. 5, 2020. In his plea, Lewis admitted to hitting his then-girlfriend while she was holding their four-month-old child. During the attack, Lewis knocked the child onto the ground, causing the infant to suffer a skull fracture and intracranial bleeding. The crime occurred on the Navajo Nation in McKinley County, New Mexico.
Upon his release from prison, Lewis will be subject to three years of supervised release.
The Navajo Nation Tribal Police Department investigated this case. Assistant U.S. Attorney Allison C. Jaros prosecuted this case.
Mount Lookout Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Brian Jacob Taylor, 34, of Mount Lookout, pleaded guilty today to being a felon in possession of a firearm. A federal grand jury indicted Taylor in February 2021.
According to court documents and statements made in court, an officer with the Nicholas County Sheriff’s Department arrived at Taylor’s residence to serve Taylor with a warrant for his arrest concerning an unrelated charge. Taylor asked the officer if he could put a shirt on and secure his dog before being transported to the police station. While inside Taylor’s residence, the officer observed a loaded shotgun and marijuana in plain view. Later that same day, officers obtained and executed a search warrant for Taylor’s residence and located two loaded firearms as well as several controlled substances, including methamphetamine, a heroin-fentanyl mixture and marijuana. Taylor was prohibited from possessing firearms by virtue of a prior felony conviction in the Circuit Court of Nicholas County for delivery of a controlled substance.
Taylor faces up to ten years in prison when sentenced on July 26, 2021.
The Nicholas County Sheriff’s Department conducted the investigation with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Andrew J. Tessman is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00019.
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Morgantown woman admits to her role in a drug conspiracyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Morgan Janes, of Morgantown, West Virginia, has admitted to drug distribution, Acting United States Attorney Randolph J. Bernard announced.
Janes, 23, pled guilty today to one count of “Distribution of Cocaine Base.” Janes admitted to selling cocaine base, also known as “crack,” in February 2020 in Monongalia County.Janes 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. Attorneys Zelda E. Wesley and Sarah E. Wagner are prosecuting the case on behalf of the government. The FBI's Northern West Virginia Drug Task Force in partnership with the Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated. The Task Forces have members from the Federal Bureau of Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; West Virginia State Police; Monongalia County Sheriff's Office; and, the Morgantown, WVU, Granville and Star City Police Departments. The investigation was also assisted by the following law enforcement partners: the Monongalia County Prosecutor’s Office, the FBI in Houston, Texas; the Houston Police Department's Multi Agency Gang Initiative; the United States Postal Inspection Service in Houston; and, the FBI and DEA in Los Angeles, California.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Magistrate Judge Michael John Aloi presided.
Monroe Man Charged with Child Exploitation Offenses Related to His Alleged Sexual Abuse of Three GirlsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that HECTOR TORRES, 32, of Monroe, was arrested today on a federal criminal complaint charging him with child exploitation offenses related to his alleged sexual abuse of three minor girls.
Following his arrest, Torres appeared via videoconference before U.S. Magistrate Judge S. Dave Vatti and is detained.
As alleged in the criminal complaint, Torres used Snapchat, FaceTime and text messaging to communicate with three minor girls, ages 11 and 12, to persuade, induce, entice or coerce them to send him naked pictures of themselves and to engage in sexual activity with him. On multiple occasions in February 2021, Torres picked up the girls in his car and brought them to a shopping plaza parking lot in Hartford, where they each engaged in sexual activity with Torres at his direction. Torres promised to give the girls money, sneakers, vaping supplies and/or food if they sent him photos of their bodies and/or engaged in sex acts with him. In March 2021, investigators reviewed at least three videos of Torres’s sexual abuse of the girls, one of which shows the right side of his face as well as distinctive tattoos on his hands.
The complaint charges Torres with coercion and enticement of minors to engage in sexual activity, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life, and with production of child pornography, an offense that carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years.
Acting U.S. Attorney Boyle stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Acting U.S. Attorney Boyle noted that investigators are seeking to identify additional victims and encouraged victims, witnesses and anyone with helpful information to call 1-800-CALL-FBI (225-5324).
This matter is being investigated by the Federal Bureau of Investigation, the Hartford Police Department, the Monroe Police Department and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The case is being prosecuted by Assistant U.S. Attorney Angel M. Krull through the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation.
For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Mob Associate Sentenced to 4+ Years for Real Estate Fraud SchemeRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Stephen Sharkey, 51, of Swedesboro, NJ, was sentenced to four years and one month in prison, three years of supervised release, and was ordered to pay $296,000 restitution, and to forfeit the same amount of money by United States District Court Judge John R. Padova for wire fraud, aggravated identity theft and money laundering.
In September 2020, the defendant pleaded guilty to two counts of conspiracy to commit wire fraud, eight counts of wire fraud, one count of aggravated identity theft and, one count of money laundering in connection with three brazen and predatory frauds which greatly harmed innocent victims and netted the defendant more than $385,000. Sharkey engaged in two mortgage-closing schemes to defraud potential home buyers – stealing money that the victims had intended to use to purchase residences for themselves and their families. In the third scheme, the defendant stole all of the proceeds of the sale of a house by secretly going to closing without telling the seller.
Sharkey and his associate, Antonio Ambrosio, convinced their victims to provide Sharkey with the down payment funds in advance of the dates set for the real estate closings, with the promise that Sharkey would provide full financing for the purchases. Rather than finance the deals, Sharkey and Ambrosio simply stole the down payment money supplied by the victims and made excuses when the deals did not close. As part of the scam, Sharkey and Ambrosio even defrauded Ambrosio’s own brother-in-law out of $208,000. After receiving this money, Sharkey immediately cut checks to ARMM Investments, LLC, a company owned by George Borgesi. Borgesi and Sharkey were both convicted in United States v. Merlino, et al., 99 CR 363, an early 2000s RICO case in which the Philadelphia La Cosa Nostra was named as the enterprise. Borgesi was named as a capo of the Philadelphia LCN in that Indictment, and Sharkey was identified as a bookmaker for the mob.
After Sharkey and Ambrosio stole the down payment from Ambrosio’s brother-in-law, they proceeded to lure a second victim to use Sharkey to finance his mortgage, and the victim wired Sharkey $100,000, which Sharkey promptly converted to his own use. The deal for this property fell through, but Sharkey and Ambrosio induced the victim to send the seller an extra $25,000 to hold the deal open, claiming Sharkey would get the deal done. The victim sent the seller the $25,000, but Sharkey had already disposed of the earlier $100,000 and the deal never closed.
Finally, in the real estate fraud perpetrated on the seller victim, Sharkey promised the victim that Sharkey would sell the house belonging to the estate of the victim’s deceased parents and, after going to a closing the victim knew nothing about, Sharkey deposited all of the proceeds of the sale into his own bank account, stealing over $52,000 from the victim in the process.
“Sharkey’s greed impacted the lives and security of multiple families, and his shameful actions had severe consequences for these innocent people,” said Acting U.S. Attorney Williams. “Not only did he and his associate steal mortgage down payments, but he also sold a different family’s house right out from underneath them and pocketed all of the cash. For his actions, he will now spend years in prison.”
“Real estate fraud was just the latest racket for Stephen Sharkey,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “He blatantly preyed on innocent victims here, destroying two families’ plans of buying homes and stealing a third person’s inherited property. A chunk of these fraudulent proceeds was diverted to a longtime Philadelphia mob figure, underscoring Sharkey’s continued association with organized crime. The FBI and our partners are going to keep investigating and locking up those committed to making money through illicit means.”
“This investigation once again reveals how members and associates of the Philadelphia La Cosa Nostra Organized Crime Family are constantly looking to make illicit financial gains by infiltrating legitimate business or exploiting regulatory rules as well as federal and state laws,” said Brandon Corby, Eastern Organized Crime Task Force Commander, Pennsylvania State Police. “The Pennsylvania State Police with our FBI partners are committed to eradicating this type of criminal behavior and hold those engaged in such activities accountable. “
The case was investigated by the Federal Bureau of Investigation’s Organized Crime Task Force and the Pennsylvania State Police, and is being prosecuted by Assistant United States Attorney Michael T. Donovan.
Mexican Businessman, His Wife and Two Others Indicted in Million Dollar Investment Fraud SchemeRead the Press Release
In San Antonio, a federal grand jury has indicted a Mexican businessman, his wife and two other individuals for a scheme to defraud business investors of $1 million, announced U.S. Attorney Ashley C. Hoff; FBI Special Agent in Charge Christopher Combs, San Antonio Field Office; IRS Criminal Investigation Special Agent in Charge Richard D. Goss, Houston Field Office; and, Texas State Securities Board Commissioner Travis J. Iles.
A federal grand jury indictment unsealed yesterday charges 45-year-old Juan Enrique Kramer, a Mexican national businessman residing in San Antonio; his 46-year-old wife Adriana Pastor; 41-year-old Noel Olguin of Victoria; and 40-year-old Mexican national Karina Hernandez with one count of conspiracy to commit wire fraud. The indictment charges Kramer with four counts of wire fraud. Pastor, Olguin, and Hernandez are each charged with one count of wire fraud.
The indictment alleges that from December 2015 to January 2019, the defendants conspired to promote a “turn-key” business venture to Mexican nationals, consisting of a chain of Mexican food restaurants throughout Texas called “Las Quesadillas.” Olguin and Hernandez marketed the operation to potential buyers and were paid between $20,000 and $25,000 for each contract they secured. Kramer and Pastor charged buyers a set fee ranging from $105,000 to $250,000, and promised to perform all tasks necessary for establishing a fully functional restaurant, including: finding and renting a suitable location, obtaining all permits, providing assistance in obtaining visas for buyers, completing construction, training employees, and handling all legal fees and incorporation issues.
The indictment alleges that the defendants took funds from buyers and failed to provide the promised services. Instead, they used the funds for personal gain or to provide partial payments to previous customers who were demanding their money back. In addition to partial refunds, Kramer would also offer stakes in other businesses as an alternative to repayment. If buyers refused, the indictment alleges that Kramer and Pastor would threaten to sue them for breach of contract. The indictment alleges that the defendants perpetrated their scheme on at least eight different victims resulting in a total loss of more than $1 million.
Each count upon conviction calls for up to 20 years in federal prison. FBI agents arrested the defendants on April 9, 2021. Kramer, Pastor and Hernandez remain in federal custody awaiting their arraignment and detention hearings before U.S. Magistrate Judge Richard B. Farrer, which are scheduled to occur in the next two weeks.
The FBI, IRS Criminal Investigation and Texas State Securities Board conducted this investigation with assistance from U.S. Immigration and Customs Enforcement. Assistant U.S. Attorneys Justin Chung and Matthew W. Kinskey are prosecuting this case.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
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McKean County Man Charged with Impersonating a US MarshalRead the Press Release
ERIE, Pa. - A resident of Smethport, Pennsylvania, has been indicted by a federal grand jury in Erie on a charge of false impersonation of officer or employee of the United States, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Ernest Lathrop, Sr., 59, as the sole defendant.
According to the Indictment presented to the court, on January 31, 2021, Lathrop falsely pretended to be an officer and employee of the United States in that he activated emergency lights on his vehicle at the scene of a traffic accident, and falsely stated to others at that accident that he was a United States Marshal.
The law provides for a maximum total sentence of 3 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The United States Marshal’s Service and the Federal Bureau of Investigation (FBI) conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Mandeville Man Is Charged with Health Care Fraud and Aggravated Identity TheftRead the Press Release
NEW ORLEANS, LA - U.S. Attorney Duane A. Evans for the Eastern District of Louisiana, announced that BRET BERRY (“BERRY”), age 60, of Mandeville, LA was charged March 9, 2021 with seven counts of health care fraud, in violation of Title 18, United States Code, Section 1347 and two counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to the indictment, BERRY defrauded Blue Cross and Blue Shield of Louisiana, Medicare and Medicaid, other health care benefit programs relating to billing for cardiac rehabilitation services. BERRY attempted to provide services that required a doctor’s order when he did not have said order, and he attempted to provide services that required a doctor’s presence, when no doctor was present.
According to the indictment, BERRY and his companies billed health care insurance companies for fraudulent services totaling approximately $11,290,000. BERRY and his companies were reimbursed approximately $859,000 in relation to those fraudulent claims.
The maximum penalty for each health care fraud charge is up to 10 years in prison, a $250,000 fine, 3 years of supervised release and a $100.00 special assessment fee for each count.
Aggravated identity theft has a mandatory minimum of two years imprisonment per count to be served consecutively. The maximum penalty per count is up to 20 years imprisonment, a $250,000 fine, and up to 3 years supervised release.
The U.S. Attorney’s Office praised the work of the Federal Bureau of Investigation and the Department of Health and Human Services – Office of Inspector General. The prosecution of the case is being handled by Assistant U.S. Attorney Kathryn McHugh.
Manchester Man Charged with Unlawful Possession of a FirearmRead the Press Release
CONCORD – Jafet Centeno, 23, of Manchester, was indicted by a federal grand jury on Monday and charged with unlawful possession of a firearm and ammunition, Acting United States Attorney John J. Farley announced today.
Centeno initially was charged by complaint and brought into custody last week. He is detained pending trial.
The original complaint filed in court alleges that on April 1, 2021 officers executed a state search warrant at Centeno’s residence. During the search, officers seized a loaded firearm and ammunition. The complaint alleged that Centeno is prohibited from possessing a firearm due to previous felony convictions in 2017.
The charges in the indictment are only allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Manchester Police Department.
The case is being prosecuted by Assistant U.S. Attorney Anna Krasinski.
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Man from Shiprock sentenced to 15 years in federal prison for second-degree murder in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Tavor Tom, 20, of Shiprock, New Mexico, and an enrolled member of the Navajo Nation, was sentenced in federal court on April 7 to 15 years in prison for second-degree murder in Indian Country.
Tom pleaded guilty to this offense on Nov. 24, 2020. According to the plea agreement and other documents, on July 1, 2019, Tom drove to his aunt’s house and stabbed her to death in in San Juan County, New Mexico, on the Navajo Nation. Tom stole the victim’s vehicle and drove to a nearby Walmart to steal dextromethorphan, a cough suppressant. Tom was later arrested by law enforcement after crashing into a fence outside a church while under the influence of dextromethorphan.
Upon his release from prison, Tom will be subject to three years of supervised release.
The Farmington Resident Agency of the FBI’s Albuquerque Field Office and the Navajo Nation Police Department investigated this case. Assistant U.S. Attorney Joseph Spindle prosecuted the case.
Man Charged with Threatening Violence Against Federal Judge in ChicagoRead the Press Release
CHICAGO — A man has been indicted on criminal charges for allegedly threatening to assault and murder a federal judge in Chicago.
JOSHUA FARNER, 35, of Marion, Ill., is charged with two counts of mailing threatening communications, and one count of threatening to assault and murder a United States judge. The indictment was returned Monday in U.S. District Court in Chicago. Arraignment has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the U.S. Marshals Service. The government is represented by Assistant U.S. Attorneys Misty N. Wright, Kartik K. Raman, and Vincenza Tomlinson.
According to the indictment, Farner on April 18, 2016, mailed a letter to the judge in Chicago threatening to assault and murder the judge. The indictment accuses Farner of sending the threatening letter to retaliate against the judge and impede, intimidate, and interfere with the judge’s official duties.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Man Charged with Conducting Illegal Sports Gambling BusinessRead the Press Release
CHICAGO — A man has been charged in federal court with conducting an illegal sports gambling business in Chicago and the suburbs.
JOHN AMABILE, 33, of Melrose Park, Ill., is charged with one count of conducting an illegal gambling business, according to a criminal information filed today in U.S. District Court in Chicago. According to the charge, Amabile conducted an illegal sports bookmaking business in 2018 and 2019 in Chicago, Elmwood Park, and Melrose Park. The information seeks forfeiture from Amabile of $100,000 in alleged criminally derived proceeds.
Arraignment in federal court in Chicago has not yet been scheduled.
The information was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Tamera Cantu, Acting Special Agent-in-Charge of the Chicago office of the IRS Criminal Investigation Division. The government is represented by Assistant U.S. Attorneys Terry M. Kinney and Ankur Srivastava.
The public is reminded that a charge is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The gambling charge carries a maximum sentence of five years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
MSC Gayane Crew Member Sentenced to 5+ Years for Conspiracy to Smuggle $1 Billion Worth of Cocaine into the United StatesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced today that Vladimir Penda, 27, of Montenegro, was sentenced to five years and ten months in prison, and two years of supervised release by United States District Court Judge Harvey Bartle III, on charges of conspiracy to possess with intent to distribute 5 kilograms or more of cocaine on a vessel subject to the jurisdiction of the United States.
For the first half of 2019 until mid-June of that year, Penda, a crew member who worked on board the shipping vessel MSC Gayane as the ship’s fourth engineer, conspired with others to engage in a bulk cocaine smuggling scheme. On multiple occasions during the MSC Gayane’s voyage and while at sea, crew members including Penda helped load bulk packages of cocaine onto the vessel from speedboats that approached the vessel in the middle of the night under cover of darkness. Crew members used the vessel’s crane to hoist cargo nets full of cocaine onto the vessel and then stashed the cocaine in the vessel’s shipping containers. Crew members bent railings on the ship and pulled back doors on the shipping containers so they could fit the huge quantities of cocaine into the containers. After hiding the drugs among legitimate cargo, crew members used fake seals to reseal the shipping containers in which they had stashed the cocaine in order to disguise their clandestine activities and contraband.
On June 17, 2019, federal, state, and local law enforcement agents boarded the MSC Gayane when it arrived at Packer Marine Terminal in Philadelphia and seized about 20 tons of cocaine worth over $1 billion U.S. dollars from its shipping containers in one of the largest drug seizures in U.S. history.
Seven other crew members from the MSC Gayane involved in this smuggling scheme were arrested and pleaded guilty to conspiracy to possess with intent to distribute cocaine based on their participation in the scheme. These crew members include Bosko Markovic, 39, of Montenegro, the ship’s chief officer; Ivan Durasevic, 31, of Montenegro, the second officer; Nenad Ilic, 41, of Montenegro, the engineer cadet; Aleksandar Kavaja, 27, of Montenegro, the electrician; Stefan Bojevic, 29, of Serbia, the assistant reeferman; Fonofaavae Tiasaga, 29, of Samoa, an able seaman; and Laauli Pulu, 34, of Samoa, an ordinary seaman.
“It has been nearly two years since federal agents conducted one of the largest drug seizures in U.S. history,” said Acting U.S. Attorney Williams. “The follow-up investigation uncovered dark-of-night, clandestine drug trafficking conduct which read like a movie plot, and prosecutors in our Office have been working non-stop since then to pursue justice in this case. With Mr. Penda’s just sentence being handed down today, this chapter of the MSC Gayane saga is now coming to a close.”
“Let today’s sentencing serve as a reminder that 2 years ago this June, Mr. Penda and his coconspirators attempted to smuggle close to 20 tons of cocaine, with an estimated street value of $1 billion dollars through the port of Philadelphia. This sends a clear message to criminals around the world that our critical infrastructure is not a safe harbor for drug trafficking,” said Brian A. Michael, Special Agent in Charge for Homeland Security Investigations Philadelphia. “Protecting the Homeland against transnational crime is a top priority of Homeland Security Investigations, and together with our federal, state, and local law enforcement partners, we are committed to detecting and disrupting transnational drug smuggling.”
“The many successful prosecutions following CBP’s record-setting cocaine seizure of June 2019 should serve as a reminder to those willing to help drug trafficking organizations that narcotics smuggling has very serious consequences,” said Keith Fleming, Acting Director of Field Operations for CBP’s Baltimore Field Office. “Customs and Border Protection and our law enforcement partners remain steadfast in our commitment to intercept shipments of dangerous drugs before they can be smuggled through our nation’s borders.”
The case is being investigated by Homeland Security Investigations and the United States Customs and Border Protection, together with a multi-agency team of federal, state, and local partners.
MS-13 Member Sentenced to More Than 16 Years in Federal Prison for Participating in a Kidnapping and an Attempted MurderRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar today sentenced MS-13 gang member David Ernesto Nolasco Soriano age 29, to 200 months in federal prison, followed by three years of supervised release, for a federal racketeering conspiracy charge related to his participation in a violent racketeering enterprise, specifically MS-13, including a kidnapping and an attempted murder.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge James Mancuso of Homeland Security Investigations (HSI) Baltimore Office; Chief Jason Lando of the Frederick Police Department; Frederick County State’s Attorney J. Charles Smith, III; Chief Amal Awad of the Anne Arundel County Police Department; Anne Arundel County State’s Attorney Anne Colt Leitess; Acting Chief Hector Velez of the Prince George’s County Police Department; Prince George’s County State’s Attorney Aisha Braveboy; Chief Marcus Jones of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador and other central American countries. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Frederick County, Anne Arundel County, Prince George’s County, and Montgomery County, Maryland. Nolasco Soriano was a member and associate of the Fulton Locotes Salvatrucha (FLS) clique of MS-13.
According to Nolasco Soriano’s plea agreement, from at least January 2015 through August 28, 2015, while Nolasco Soriano was a member and associate of the FLS clique of MS-13, members of the Fulton clique engaged in the distribution of marijuana on behalf of MS-13 in the District of Maryland. Members of the Fulton clique also extorted money from legitimate and illegitimate businesses that operated in the gang’s perceived “territory.”
As detailed in his plea agreement, in or around May 2015, members of the FLS clique began demanding extortion payments from “Victim 2.” When Victim 2 stopped making the required extortion payments to the FLS clique, Nolasco Soriano and other MS-13 members kidnapped Victim 2 on May 10, 2015. Nolasco Soriano and several other members of the FLS clique transported Victim 2 against his will to a remote wooded area in Frederick, Maryland. While Nolasco Soriano was present, a member of the FLS clique brandished a handgun and put the barrel of the gun in Victim 2’s mouth. Nolasco Soriano and the other members of the FLS clique released Victim 2 once Victim 2 agreed to resume making extortion payments to the FLS clique. Nolasco Soriano and the other FLS clique members who participated in the kidnapping of Victim 2 did so for the purpose of maintaining and increasing their position in MS-13.
In August 2015, Nolasco Soriano and other MS-13 members and associates, to maintain and increase their position in the gang, planned and conspired to murder Victim 3, whom they believed to be a rival gang member. On August 28, 2015, after previously conducting surveillance of the residence where Victim 3 lived with his girlfriend, Victim 4, the MS-13 members and associates entered the apartment and waited there for the victims to return. After the victims returned to the apartment, Nolasco Soriano and two other gang members attacked Victim 3 and Victim 4 with machetes and knives. Although both victims survived, the attack on Victim 3 left him with both hands nearly severed, and severe wounds to his face and torso. Victim 3 has no use of one hand and limited use of the other.
At all times of this conspiracy, members of MS-13 were expected to protect the name, reputation, and status of the gang from rival gang members and other persons. To protect the gang and to enhance its reputation, MS-13 members were expected to use any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence. MS-13 had mottos consistent with its rules, beliefs, expectations and reputation including “mata, viola, controla,” which translates as, “kill, rape, control,” and “ver, oir y callar,” which means, “see nothing, hear nothing and say nothing.”
MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang, as well as against rival gang members. Participation in criminal activity by a member, particularly in violent acts directed at rival gangs or as directed by gang leadership, increase the respect accorded to that member, resulting in that member maintaining or increasing his position in the gang, and opens the door to a promotion to a leadership position. One of the principal rules of MS-13 is that its members must attack and kill rivals, often referred to as “chavalas,” whenever possible.
A total of 29 defendants have been charged in this case with participating in a racketeering conspiracy and/or other crimes related to their association with MS-13, including 18 defendants charged in the fifth superseding indictment filed on October 21, 2019. A total of 21 defendants, including Nolasco Soriano, have pleaded guilty to crimes related to their participation in MS-13 gang activities.
Anyone with information about MS-13 is encouraged to call the FBI’s nationwide tipline, 1-866-STP-MS13 (1-866-787-6713). The FBI tipline allows individuals to provide information about MS-13’s criminal activities to a central location and the FBI will then disseminate the information to the appropriate law enforcement authorities for investigation. Your identity will be protected.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Acting United States Attorney Jonathan F. Lenzner commended the FBI; HSI; the Frederick Police Department; the Anne Arundel, Montgomery, and Prince George’s County Police Departments; and the Anne Arundel, Frederick, Montgomery, and Prince George’s County State’s Attorneys for their work in the investigation, and recognized the Baltimore County Police Department for its assistance. Mr. Lenzner thanked Assistant U.S. Attorneys Kenneth S. Clark, Catherine K. Dick, and Matthew DellaBetta, who are prosecuting this case.
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Logan County Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Logan County man pleaded guilty today to a federal drug charge. Terrindez Xsidrick Bryant, 36, pled guilty to distribution of methamphetamine.
On June 24, 2019, law enforcement officers coordinated a controlled buy at a residence in Verdunville. Bryant came to the residence where he sold approximately 25.5 grams of methamphetamine.
Bryant faces a minimum of five years in prison when sentenced on July 26, 2021.
Acting United States Attorney Lisa G. Johnston commended the investigative efforts of the West Virginia State Police and the Violent Crime and Drug Task Force West.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Ryan A. Keefe is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:19-cr-00244.
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Laredo men receive significant sentences for trafficking $4 million of marijuanaRead the Press Release
LAREDO, Texas – A 35-year-old Laredo resident has been ordered to federal prison after conspiring to possess with the intent to distribute 1,261.5 kilograms of marijuana, announced Acting U.S. Attorney Jennifer B. Lowery.
Jose Luis Villalba, pleaded guilty in October 2020 as did Hector Gonzalez, 35, also of Laredo.
Today, U.S. District Judge Nelva Gonzalez Ramos ordered Villalba to serve a 120-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard additional information including evidence detailing his role in the offense as a manager and supervisor for the drug-trafficking organization.
Gonzalez received his sentence April 7. U.S. District Judge Marina Garcia Marmolejo ordered him to 132 total months in prison to be immediately followed by five years of supervised release.
On July 9, 2016, Villalba and Gonzalez coordinated the transportation of a large load of marijuana inside a tractor-trailer past the Border Patrol checkpoint north of Laredo. Law enforcement intervened and recovered approximately 2,775 pounds of marijuana.
The marijuana had an approximate street value of $4 million.
Villalba was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future, while Gonzalez is in custody.
The Drug Enforcement Administration and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Francisco J. Rodriguez prosecuted the case.
Justice Department announces court-authorized effort to disrupt exploitation of Microsoft Exchange Server vulnerabilitiesRead the Press Release
HOUSTON – Authorities have executed a court-authorized operation to copy and remove malicious web shells from hundreds of vulnerable computers in the United States. They were running on-premises versions of Microsoft Exchange Server software used to provide enterprise-level email service.
Through January and February 2021, certain hacking groups exploited zero-day vulnerabilities in Microsoft Exchange Server software to access email accounts and place web shells for continued access. Web shells are pieces of code or scripts that enable remote administration. Other hacking groups followed suit starting in early March after the vulnerability and patch were publicized.
Many infected system owners successfully removed the web shells from thousands of computers. Others appeared unable to do so, and hundreds of such web shells persisted unmitigated. This operation removed one early hacking group’s remaining web shells which could have been used to maintain and escalate persistent, unauthorized access to U.S. networks. The FBI conducted the removal by issuing a command through the web shell to the server, which was designed to cause the server to delete only the web shell (identified by its unique file path).
“Today’s court-authorized removal of the malicious web shells demonstrates the Department’s commitment to disrupt hacking activity using all of our legal tools, not just prosecutions,” said Assistant Attorney General John C. Demers for the Justice Department’s National Security Division. “Combined with the private sector’s and other government agencies’ efforts to date, including the release of detection tools and patches, we are together showing the strength that public-private partnership brings to our country’s cybersecurity. There’s no doubt that more work remains to be done, but let there also be no doubt that the Department is committed to playing its integral and necessary role in such efforts.”
“Combatting cyber threats requires partnerships with private sector and government colleagues,” said Acting U.S. Attorney Jennifer B. Lowery of the Southern District of Texas. “This court-authorized operation to copy and remove malicious web shells from hundreds of vulnerable computers shows our commitment to use any viable resource to fight cyber criminals. We will continue to do so in coordination with our partners and with the court to combat the threat until it is alleviated, and we can further protect our citizens from these malicious cyber breaches.”
“This operation is an example of the FBI’s commitment to combatting cyber threats through our enduring federal and private sector partnerships,” said Acting Assistant Director Tonya Ugoretz of the FBI’s Cyber Division. “Our successful action should serve as a reminder to malicious cyber actors that we will impose risk and consequences for cyber intrusions that threaten the national security and public safety of the American people and our international partners. The FBI will continue to use all tools available to us as the lead domestic law enforcement and intelligence agency to hold malicious cyber actors accountable for their actions.”
On March 2, Microsoft announced that a hacking group used multiple zero-day vulnerabilities to target computers running Microsoft Exchange Server software. Various other hacking groups also have used these vulnerabilities to install web shells on thousands of victim computers, including those located the United States. Because the web shells the FBI removed each had a unique file path and name, they may have been more challenging for individual server owners to detect and eliminate than other web shells.
Throughout March, Microsoft and other industry partners released detection tools, patches and other information to assist victim entities in identifying and mitigating this cyber incident. Additionally, the FBI and the Cybersecurity and Infrastructure Security Agency released a Joint Advisory on Compromise of Microsoft Exchange Server on March 10. Despite these efforts, by the end of March, hundreds of web shells remained on certain United States-based computers running Microsoft Exchange Server software.
This operation was successful in copying and removing those web shells. However, it did not patch any Microsoft Exchange Server zero-day vulnerabilities or search for or remove any additional malware or hacking tools that hacking groups may have placed on victim networks by exploiting the web shells. The Department strongly encourages network defenders to review Microsoft’s remediation guidance and the March 10 Joint Advisory for further guidance on detection and patching.
The FBI is attempting to provide notice of the court-authorized operation to all owners or operators of the computers from which it removed the hacking group’s web shells. For those victims with publicly available contact information, the FBI will send an e-mail message from an official FBI e-mail account (@FBI.gov) notifying the victim of the search. For those victims whose contact information is not publicly available, the FBI will send an e-mail message from the same FBI e-mail account to providers (such as a victim’s ISP) who are believed to have that contact information and ask them to provide notice to the victim.
If you believe you have a compromised computer running Microsoft Exchange Server, please contact your local FBI Field Office for assistance. The FBI continues to conduct a thorough and methodical investigation into this cyber incident.
Justice Department Files Sexual Harassment Lawsuit Against Owners and Managers of Rental Properties in PennsylvaniaRead the Press Release
WASHINGTON –The Justice Department announced today that it has filed a lawsuit against Allen and Heidi Woodcock, owners and managers of rental properties in Oil City, alleging sexual harassment and retaliation in violation of the Fair Housing Act.
The lawsuit, filed in the U.S. District Court for the Western District of Pennsylvania, alleges that Allen Woodcock sexually harassed a female tenant in April 2019 after he entered her home to perform maintenance. According to the complaint, Allen Woodcock touched the tenant’s body without her consent and forcibly tried to kiss her, and the Woodcocks evicted the tenant after she reported the harassment to Heidi Woodcock.
"People should never have to endure sexual harassment in their home, where they should feel safe and secure," said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division. "The Justice Department will vigorously enforce the Fair Housing Act against landlords who engage in this kind of abusive and illegal behavior."
"Combatting sexual harassment in housing is a high priority at the Department of Housing and Urban Development (HUD)," said Acting Assistant Secretary for Fair Housing Jeanine Worden. "This is an example of how HUD and Justice Department work together to enforce the Fair Housing Act."
"Sexual harassment in housing is illegal," said Acting United States Attorney Stephen R. Kaufman for the Western District of Pennsylvania. "Landlords, property managers or anyone else with control over housing should recognize by the filing of this lawsuit that we take action to combat such despicable conduct."
The lawsuit arose from a complaint that the former tenant filed with the Department of Housing and Urban Development (HUD). After HUD investigated the complaint, it issued a charge of discrimination and the matter was referred to the Justice Department.
Today’s lawsuit seeks monetary damages to compensate the victim and a court order barring future discrimination. The complaint contains allegations of unlawful conduct; the allegations must be proven in court.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing. Since launching the Initiative in October 2017, the Justice Department has filed 21 lawsuits alleging sexual harassment in housing.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by Allen and Heidi Woodcock, or who have other information that may be relevant to this case, should call the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at [email protected], or submit a report online.
Individuals can also report sexual harassment and other forms of housing discrimination by contacting HUD at 1-800-669-9777 or by filing a HUD complaint online.
Justice Department Announces Court-Authorized Effort to Disrupt Exploitation of Microsoft Exchange Server VulnerabilitiesRead the Press Release
Note: A full copy of the unsealed court documents can be viewed here.
WASHINGTON – The Justice Department today announced a court-authorized operation to copy and remove malicious web shells from hundreds of vulnerable computers in the United States running on-premises versions of Microsoft Exchange Server software used to provide enterprise-level e-mail service.
Through January and February 2021, certain hacking groups exploited zero-day vulnerabilities in Microsoft Exchange Server software to access e-mail accounts and place web shells (which are pieces of code or scripts that enable remote administration) for continued access. Other hacking groups followed suit starting in early March after the vulnerability and patch were publicized. Although many infected system owners successfully removed the web shells from thousands of computers, others appeared unable to do so, and hundreds of such web shells persisted unmitigated. Today’s operation removed one early hacking group’s remaining web shells, which could have been used to maintain and escalate persistent, unauthorized access to U.S. networks. The FBI conducted the removal by issuing a command through the web shell to the server, which was designed to cause the server to delete only the web shell (identified by its unique file path). This is unrelated to Microsoft’s 13 April announcement.
“Today’s court-authorized removal of the malicious web shells demonstrates the Department’s commitment to disrupt hacking activity using all of our legal tools, not just prosecutions,” said Assistant Attorney General John C. Demers for the Justice Department’s National Security Division. “Combined with the private sector’s and other government agencies’ efforts to date, including the release of detection tools and patches, we are together showing the strength that public-private partnership brings to our country’s cybersecurity. There’s no doubt that more work remains to be done, but let there also be no doubt that the Department is committed to playing its integral and necessary role in such efforts.”
“Combatting cyber threats requires partnerships with private sector and government colleagues,” said Acting U.S. Attorney Jennifer B. Lowery of the Southern District of Texas. “This court-authorized operation to copy and remove malicious web shells from hundreds of vulnerable computers shows our commitment to use any viable resource to fight cyber criminals. We will continue to do so in coordination with our partners and with the court to combat the threat until it is alleviated, and we can further protect our citizens from these malicious cyber breaches.”
“This operation is an example of the FBI’s commitment to combatting cyber threats through our enduring federal and private sector partnerships,” said Acting Assistant Director Tonya Ugoretz of the FBI’s Cyber Division. “Our successful action should serve as a reminder to malicious cyber actors that we will impose risk and consequences for cyber intrusions that threaten the national security and public safety of the American people and our international partners. The FBI will continue to use all tools available to us as the lead domestic law enforcement and intelligence agency to hold malicious cyber actors accountable for their actions.”
On March 2, 2021, Microsoft announced that a hacking group used multiple zero-day vulnerabilities to target computers running Microsoft Exchange Server software. Various other hacking groups also have used these vulnerabilities to install web shells on thousands of victim computers, including those located the United States. Because the web shells the FBI removed today each had a unique file path and name, they may have been more challenging for individual server owners to detect and eliminate than other web shells.
Throughout March 2021, Microsoft and other industry partners released detection tools, patches, and other information to assist victim entities in identifying and mitigating this cyber incident. Additionally, the FBI and the Cybersecurity and Infrastructure Security Agency released a Joint Advisory on Compromise of Microsoft Exchange Server on March 10, 2021. Despite these efforts, by the end of March, hundreds of web shells remained on certain U.S.-based computers running Microsoft Exchange Server software.
Although today’s operation was successful in copying and removing those web shells, it did not patch any Microsoft Exchange Server zero-day vulnerabilities or search for or remove any additional malware or hacking tools that hacking groups may have placed on victim networks by exploiting the web shells. The Department strongly encourages network defenders to review Microsoft’s remediation guidance and the March 10, 2021 Joint Advisory for further guidance on detection and patching.
The FBI is attempting to provide notice of the court-authorized operation to all owners or operators of the computers from which it removed the hacking group’s web shells. For those victims with publicly available contact information, the FBI will send an e-mail message from an official FBI e-mail account (@FBI.gov) notifying the victim of the search. For those victims whose contact information is not publicly available, the FBI will send an e-mail message from the same FBI e-mail account to providers (such as a victim’s ISP) who are believed to have that contact information and ask them to provide notice to the victim.
If you believe you have a compromised computer running Microsoft Exchange Server, please contact your local FBI Field Office for assistance. The FBI continues to conduct a thorough and methodical investigation into this cyber incident.
Justice Department Announces $2.2 Million Settlement of Sex Discrimination Lawsuit Against the Commonwealth of Pennsylvania and the Pennsylvania State PoliceRead the Press Release
The Justice Department announced today that it has reached a settlement, through a court-supervised settlement agreement, with the Commonwealth of Pennsylvania and the Pennsylvania State Police (PSP) resolving the United States’ claims that PSP’s use of physical tests as part of the entry-level hiring process for state troopers resulted in a pattern or practice of employment discrimination against women, in violation of Title VII of the Civil Rights Act of 1964.
Title VII is a federal law that prohibits discrimination in employment on the basis of race, color, religion, sex, and national origin. The suit alleged that PSP violated Title VII beginning as early as May 14, 2003, by administering physical tests that assessed physical skills not required to perform the job and that disproportionately excluded female applicants.
“Employers cannot impose selection criteria that unfairly screen out qualified female applicants,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division. “When the Pennsylvania State Police use a physical fitness test as part of the process for choosing state troopers, they must ensure that the test complies with federal law. This settlement agreement reflects the Civil Rights Division’s continued commitment to removing artificial barriers that prevent women from becoming law enforcement officers.”
Under the terms of the settlement agreement, subject to court approval, PSP will pay $2,200,000 million into a settlement fund that will be used to compensate those women who were harmed by the employment practices challenged by the United States. The agreement also requires PSP to offer priority hiring relief, with retroactive seniority, for up to 65 women for entry-level state trooper jobs. All priority hiring candidates must meet the employer’s lawful selection criteria, including the successful passing of any physical fitness test that meets the requirements of Title VII.
In a joint filing today in the U.S. District Court for the Middle District of Pennsylvania, the parties moved for a court order provisionally approving the terms of the settlement agreement. The motion also asks the court to schedule a fairness hearing to provide an opportunity for individuals potentially affected by the proposed agreement to provide comments on the terms of the settlement. The proposed settlement, once approved by the District Court, will resolve the United States’ complaint filed on July 29, 2014.
The case was brought by the Civil Rights Division’s Employment Litigation Section, which makes the full and fair enforcement of Title VII a top priority. Additional information about the Civil Rights Division and the jurisdiction of the Employment Litigation Section is available on its websites at www.justice.gov/crt/ and https://www.justice.gov/crt/employment-litigation-section.
Johnstown Man Facing Federal Drug ChargeRead the Press Release
Johnstown, PA - One resident of Johnstown, PA, has been indicted by a federal grand jury in Johnstown on a charge of possession with the intent to distribute quantities of a substance containing fentanyl, heroin, and methamphetamine, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Keith Pope 32, as the sole defendant.
According to the Indictment presented to the court, on or about October 7, 2020, Pope was found to possess with the intent to distribute 40 grams or more of a mixture and substance containing a detectable amount of fentanyl and heroin, and a mixture and substance containing a detectable amount of methamphetamine.
The law provides for a maximum total sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Jamestown Man Charged with Sex Trafficking CrimesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Anthony Burris, 30, of Jamestown, NY, was arrested and charged by criminal complaint with sex trafficking and enticing travel to engage in sexual activity. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of life and a $250,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that according to the criminal complaint, on January 21, 2021, a mother contacted the Chautauqua County Sheriff’s Office and reported the possible sex trafficking of her daughter (Victim 1). The mother reported that her daughter was involved in drug use and prostitution and had to perform sexual acts with others in exchange for drugs and other items from the defendant. In addition, the mother stated Burris was physically abusing her daughter. The mother provided Victim 1’s Facebook profile, which an investigator reviewed and recognized Victim 1 from ads he previously saw on a website used to post advertisements for commercial sex acts or other illicit business like the sale of controlled substances.
On February 28, 2021, Victim’s 1’s mother told investigators that she learned her daughter was assaulted by the defendant and was at a medical clinic in Erie, Pennsylvania seeking medical treatment for her injuries, which included significant bruising and swelling to her left eye and a laceration above her left eye. Victim 1’s mother stated that Victim 1 was assaulted because she was going to try and leave Burris. A law enforcement officer in Pennsylvania went to the medical clinic to speak with Victim 1 who was uncooperative, stating that she sustained her injuries from falling and refused any help. While in the parking lot of the medical clinic, the officer observed the defendant in a vehicle.
On March 3, 2021, an undercover law enforcement officer contacted Victim 1 and set up a “car date.” Investigators set up surveillance in the vicinity of the agreed upon meeting location and observed Burris driving a vehicle in the area. Investigators approached the vehicle and the defendant was identified as the driver and Victim 1 was identified as the front passenger. During a search of the vehicle, a bag full of condoms and lubricants, suspected controlled substances including a mixture of heroin and fentanyl, and marijuana, three cellphones, and $2,216 in cash were seized. After the search was completed, Burris was released and given an appearance ticket for Permitting Prostitution.
Subsequent investigation identified a second victim (Victim 2), who also suffered from drug addiction. On March 11, 2021, an undercover officer set up an appointment with Victim 2 using a contact number from an online ad. Once again investigators set up surveillance in the vicinity of the agreed upon meeting location, and once again Burris was observed in a vehicle in the area with a female passenger. Investigators approached the vehicle and arrested the defendant. Observed in plain view on the floor near the driver’s seat was a clear plastic baggie containing a white powdery substance suspected to be heroin. Additionally, two cellular phones were seized from the vehicle.
According to the complaint, Burris rarely gave Victim 1 and Victim 2 any of the money obtained through sex trafficking activities. The defendant would provide the victims with heroin. However, he would withhold drugs until they did what he wanted them to do, calling it “starving.”
A preliminary review of cell phones recovered from Victim 2 contained voluminous daily contact with sex buyers discussing details of sex acts, pricing, meeting locations, and times. Both phones also contained photographs of Victim 1 and Victim 2.
“This defendant is a violent predator who preyed upon the vulnerabilities of these victims, leaving them powerless to fight back” stated U.S. Attorney Kennedy. “Our Office, together with our law enforcement partners at the federal, state, and local levels, will continue aggressively to pursue any individual who engages in sex trafficking, or any kind of human trafficking. Those who attempt to take away the freedom of victims through sex trafficking should expect that this Office will use every resource available in order to ensure that they, by way of criminal prosecution, will also lose their liberty.”
“The egregious acts identified as part of this joint investigation with Chautauqua County and the Amherst Police Department demonstrates our continued efforts to rid our communities of those who lack regard for human life,” said Kevin Kelly, HSI Special Agent-in-Charge. “Homeland Security Investigations will continue our commitment to investigating these abhorrent crimes and apprehending those who prey on the most vulnerable in our communities.”
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and was detained.
The complaint is the result of an investigation by the Chautauqua County Sheriff’s Office, under the direction of Sheriff James B. Quattrone; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Amherst Police Department; and the Millcreek, PA, Police Department, under the direction of Chief Scott Heidt.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Honduran immigrant convicted of alien smugglingRead the Press Release
CORPUS CHRISTI, Texas – A Corpus Christi federal jury has convicted a 42-year-old legal permanent resident of Houston for transporting an illegal alien, announced Acting U.S. Attorney Jennifer B. Lowery.
The jury deliberated for one hour before convicting Ivis Orestes Irias-Romero following a two-day trial.
On Nov. 14, 2020, at approximately 11:00 p.m., Irias-Romero drove a truck into the primary inspection area at the Border Patrol (BP) checkpoint near Sarita. He had a female riding as passenger.
Irias-Romero said he was from Honduras and produced his immigration card. However, the female did not respond when asked about her status. Instead, Irias-Romero claimed she was his wife and produced a copy of a marriage license certificate.
Authorities then asked the woman again, this time in Spanish. She admitted she was a Honduran citizen unlawfully living in Houston. She testified at trial and said she met Irias-Romero four years prior while on Facebook. She added that she had unsuccessfully tried several times to enter the United States, but finally made it in November 2020. She then contacted Irias-Romero who agreed to travel to Brownsville to pick her up and bring her to Houston.
After his arrest, Irias-Romero admitted the woman was not his wife and that he knew she was in the United States illegally. However, at trial, he contended that he was saving her from a hostage situation. The jury was not convinced and convicted him as charged.
U.S. District Judge David Morales presided over trial and set sentencing for July 14. At that time, Irias-Romero faces up to five years of imprisonment and a possible $250,000 maximum fine.
Irias-Romero was permitted to remain on bond pending that hearing.
BP conducted the investigation. Assistant U.S. Attorneys Michael Hess and Patrick Overman prosecuted the case.
Honduran Man Sentenced to 21 Months in Federal Prison for Illegal ReentryRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Jose Luiz Suarez, age 30, a Honduran citizen residing in Germantown, Maryland, to 21 months in prison for illegal reentry after being removed from the United States as a result of a previous felony conviction.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner Field Office Director Francisco Madrigal of Enforcement and Removal Operations (ERO) Baltimore; and Chief Marcus Jones of the Montgomery County Police Department.
According to his guilty plea, Suarez unlawfully entered the United States on July 5, 1999. On September 27, 2012, Suarez was sentenced to five years of imprisonment with all but three years suspended after being convicted of accessory after the fact. On March 14, 2014, the United States Department of Homeland Security (DHS) issued a removal order. Suarez was removed to Honduras from the United States on April 4, 2014. On June 25, 2019, Suarez was found in Montgomery County, Maryland while being treated for an arm injury resulting from an altercation in a restaurant. Suarez provided a false name and false information about the events leading up to his injuries to police. Soon after, he was arrested on several state charges, including providing a false statement to an officer.
Acting United States Attorney Jonathan F. Lenzner commended ERO and the Montgomery Police Department for their work in the investigation. Mr. Lenzner thanked Special Assistant U.S. Attorney Craig Fansler and Assistant U.S. Attorney Michael Morgan, who prosecuted the case.
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Gloucester County Man Sentenced to 25 Years in Prison for Production and Distribution of Child PornographyRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man was sentenced today to 300 months in prison for producing and distributing images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.
Andrew Nicholas, 24, of Williamstown, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of sexually exploiting children and one count of distributing child pornography. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On Feb. 26, 2019, an undercover officer entered a public Kik Messenger group and began communicating with Nicholas, who sent the officer images and videos of child sexual abuse involving a prepubescent minor. Nicholas admitted to producing those images and videos of child sexual abuse and sending them to the officer.
In addition to the prison term, Judge Kugler sentenced Nicholas to a lifetime term of supervised release, ordered him to pay restitution of $45,000 to the victims, and ordered him to register as a sex offender.
Acting U.S. Attorney Honig credited special agents of the FBI, Philadelphia Division, under the direction of Special Agent in Charge Michael J. Driscoll, and the Washington, D.C., FBI Field Office, under the direction of Assistant Director in Charge Steven D’Antuono; special agents of the U.S. Department of Homeland Security, Homeland Security Investigations – Cherry Hill, under the direction of Special Agent in Charge Jason J. Molina in Newark, and detectives with the Gloucester County Prosecutor’s Office, under the direction of Acting County Prosecutor Christine Hoffman, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Martha Nye of the U.S. Attorney’s Office Criminal Division in Trenton.