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Thursday 8 April 2021
Champaign County Man Sentenced to Two Years in Prison for Bank Fraud ConspiracyRead the Press Release
PEORIA, Ill. – David Litman, 41, of the village of Foosland, Ill., has been ordered to report to federal prison on May 18, 2021, to begin serving a two-year sentence for conspiracy to commit bank fraud and bank fraud in connection with a real estate short-sale scheme. Following the March 10, 2021, sentencing, U.S. District Judge James E. Shadid further ordered Litman to pay $279,900 in restitution and to serve two years on supervised release upon completion of his prison term.
On Dec. 17, 2019, Litman pleaded guilty to conspiring with others, between 2008 and 2010, to defraud lending institutions in a series of short-sale transactions. Specifically, Litman caused false broker price opinions undervaluing residential properties to be submitted to financial institutions holding the mortgages of the properties, which he intended to purchase via a short sale. Litman submitted additional false documents to the financial institutions to induce them to approve requested short sales, including falsified listing agreements and proof-of-funds letters. The financial institutions, relying on the false broker price opinions, false real estate commission expenses, false listing agreements, and other false documentation, approved short sales of properties to Litman for payments that were less than they otherwise would have been likely to receive.
In addition, Litman caused the recording of false expenses, including false real estate commissions, on HUD-1 settlement statements documenting the short sales into which he entered. Litman also attempted to conceal certain of these false real estate commission expenses through the late issuance of commission checks.
“The defendant’s repeated acts of fraud over several years caused lending institutions to lose a significant amount of money,” stated Acting U.S. Attorney Doug Quivey. “The defendant’s participation in the scheme thwarted the lenders’ ability to accurately value the homes involved and prevented them from recouping a greater portion of their losses on the homeowners’ mortgages. Fraud in any part of the mortgage industry ultimately costs both lenders and borrowers and can’t be tolerated.”
Assistant U.S. Attorneys Katherine V. Boyle and Eugene L. Miller represented the government in the prosecution. The charges were investigated by the Department of Housing and Urban Development’s Office of the Inspector General and the Federal Bureau of Investigation.
CARES Act Fraud Investigations Identify Twenty-Three Individuals Targeting Thirty-One Million DollarsRead the Press Release
PROVIDENCE – The United States Attorney’s Office, the Office of the Rhode Island Attorney General, the Federal Bureau of Investigation, and the Rhode Island State Police today publicly updated information on criminal investigations and prosecutions of individuals who are alleged to have targeted and defrauded federally funded programs created to assist businesses and individuals impacted by the COVID-19 pandemic, including the Paycheck Protection Program and Unemployment Insurance Program.
Since the enactment of the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020, a team of federal and state law enforcement personnel led by the Rhode Island State Police and the FBI, along with federal and state prosecutors, have worked together to identify, investigate, charge, and prosecute individuals who knowingly defrauded or attempted to defraud federally funded programs that provide emergency COVID-19 financial assistance to Rhode Islanders and others.
To date, federal charges have been brought against 23 individuals, including 15 this week, for fraudulently applying for aid from CARES Act funded programs. Investigators have identified more than $31 million dollars allegedly targeted by these fraudsters.
This week, 15
Defendants were charged by way of federal criminal complaints in U.S. District Court with wire fraud and money laundering, according to documents being unsealed today by the court. It is alleged that each defendant filed multiple claims for unemployment compensation in Rhode Island and in other states. Cumulatively, these defendants allegedly filed fraudulent unemployment claims in eleven states totaling $578,571. Of that, investigators and prosecutors have identified approximately $126,000 worth of fraudulent claims allegedly filed by these defendants with the Rhode Island Department of Labor and Training.“It’s disgraceful that anyone would attempt to fraudulently obtain CARES Act funds intended for hard working Americans during the current health crisis, and we are committed to vigorously pursuing the criminals who commit this fraud,” said Acting United States Attorney Richard B. Myrus. “Our team of agents and prosecutors has the reach, coordination, and expertise necessary for effective enforcement efforts against the scourge of COVID-19 relief fraud, and our investigations are far from over.”
“We are all aware that there are individuals who have taken advantage of the pandemic to advance their own financial interests,” said Attorney General Peter F. Neronha. “This broad, ongoing investigation, including the cases charged so far, involves precisely that type of activity. There are various aspects to this probe and varying kinds of schemes, but they all come down to this: as alleged, these defendants and others like them are fraudulently lining their own pockets at the expense of other Rhode Islanders and Americans at the most inopportune time.”
“What these individuals are accused of doing is selfish and despicable. They cashed in on a public health crisis by targeting nearly $31 million in federal funds that were meant to be a lifeline for tens of thousands of Rhode Islanders, and other Americans who are struggling to feed their families and keep their businesses afloat. It is critical that every dollar spent goes to those who need it, not to greedy con artists trying to cheat the system,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Those who blatantly steal taxpayer dollars by defrauding government programs during a national emergency will soon find themselves in federal court to answer for their crimes.”
“This federal money was earmarked for both business owners and individuals who were facing serious economic hardship as a result of COVID-19. The State Police, working closely with the FBI, US Attorney and RI Attorney General made it a priority to identify those individuals who felt emboldened to take advantage of a crisis affecting our entire nation,” said Colonel James M. Manni, Superintendent of the Rhode Island State Police.”
In addition to the 15 defendants charged this week, the United States Attorney’s Office in Rhode Island, working closely with its federal and state law enforcement partners, has charged the following cases in U.S. District Court in Providence:
- In May 2020, five weeks after the CARES Act was enacted by Congress, this office filed the first federal prosecution in the country alleging CARES Act fraud. In that case, it is alleged that two businessmen sought more than a half-million dollars in forgivable loans in Rhode Island, guaranteed by the Small Business Administration (CARES) Act.
- In September 2020, a Middletown businessman was charged with fraudulently seeking $4.7 million dollars in Paycheck Protection Program loans. The businessman, who has pleaded guilty, is awaiting sentencing.
- In October 2020, five individuals in Florida were charged in federal court in Rhode Island and arrested for allegedly engaging in identity theft and using stolen identities to open multiple bank accounts and to file a significant number of fraudulent unemployment insurance claims to the Rhode Island Department of Labor and Training, and elsewhere. In that case, more than $1.1 million dollars in cash, several hundred debit cards in the names of individuals whose identities were allegedly stolen, a large collection of high-end jewelry, and eight firearms were seized.
According to court documents, the fraud perpetrated by these defendants is significant. A preliminary review of nationwide unemployment data shows that IP addresses used by one of the defendants was used to file approximately 5,291 claims in 37 states, including Rhode Island, totaling $25 million dollars.
The team of federal, state, and local law enforcement agents and officers continue to investigate several other known subjects suspected of committing CARES Act fraud, and are committed to identify other individuals and groups it can be determined are committing CARES Act fraud.
Acting United States Attorney Myrus acknowledges the FBI, Rhode Island State Police, United States Department of Labor – Office of Inspector General, Small Business Administration, United States Postal Inspection Service, Internal Revenue Service Criminal Investigation, United States Secret Service, Social Security Administration – Office of Inspector General, Homeland Security Investigations, and the Providence Police Department for their investigative work resulting in the latest arrests.
Acting United States Attorney Myrus thanks the Lincoln, East Providence, North Providence, Warwick, Cranston and Newport Police Departments for their added support.
Cases charged to date are being prosecuted in U.S. District Court by Assistant United States Attorneys Denise M. Barton, Stacey P. Veroni, and Lee H. Vilker, and Rhode Island Assistant Attorney General John Moreira, cross-designated as a Special Assistant United States Attorney.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
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Boston Man Pleads Guilty to Investment Fraud SchemeRead the Press Release
BOSTON – The owner of several Boston-based investment companies pleaded guilty today in federal court in Boston to operating a Ponzi-like fraud scheme.
Tanmaya Kabra, 27, pleaded guilty to four counts of wire fraud. U.S. District Court Judge Denise J. Casper scheduled sentencing for Aug. 30, 2021.
Kabra conducted business through a company called LaunchByte.io LLC and several affiliated entities. He held himself out to investors as a successful serial entrepreneur, venture capitalist and angel investor in start-up companies. Offering lucrative and low or no-risk returns on investments, Kabra lured investors with representations that their funds would be used to foster the growth and development of start-up companies, in order to prepare those companies for sale or for other legitimate business opportunities. In reality, Kabra used the money that he received from investors to pay off existing debts to prior investors in his scheme and to fund his lavish personal expenses, including using more than $200,000 of fraudulently obtained funds to purchase a power boat.
As part of his plea agreement, Mr. Kabra admitted to victimizing more than 10 individuals who suffered more than $1.5 million in losses as a result of the scheme.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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 and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The Securities & Exchange Commission provided valuable assistance in this investigation. Assistant U.S. Attorneys Christopher Looney and James B. Herbert of Mendell’s Criminal Division are prosecuting the case.
Blair Woman Sentenced for Conspiracy to Distribute Methamphetamine and Use of a Firearm in Relation to a Drug Trafficking CrimeRead the Press Release
Acting United States Attorney Jan Sharp announced that Morgan C. Brown, 25, of Blair, Nebraska, was sentenced on April 7, 2021, in federal court in Omaha, Nebraska, for conspiracy to distribute 50 grams or more of actual methamphetamine, and for using a firearm during and in relation to a drug trafficking crime. United States District Judge Brian C. Buescher sentenced Brown to 200 months of imprisonment for the conspiracy and a consecutive 60 months of imprisonment for the use of the firearm during and in relation to that conspiracy. There is no parole in the federal system. Brown was also sentenced to a 5-year term of supervised release on the conspiracy conviction and a 2-year term of supervised release on the firearm conviction to run concurrently.
On June 5, 2019, Brown was searched pursuant to a probation condition from a prior drug-possession conviction, and law enforcement found her in possession of over $8,000 in United States currency, a gun, drug paraphernalia, and a digital scale. On August 16, 2019, law enforcement stopped Brown’s vehicle near Lincoln, Nebraska, and found in the vehicle drug paraphernalia, a digital scale, and a package containing more than 250 grams of methamphetamine. In total, Brown was involved in the trafficking of at least 50 pounds of methamphetamine from July 2018 until August 2019. Over the course of the investigation, law enforcement seized more than $30,000 from Brown as the proceeds of drug distribution.
This case was investigated by the Omaha Police Department and Lincoln/Lancaster County Narcotics Task Force.
Bank Employee Arrested for Defrauding Her Employer of $1.7 MillionRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a criminal complaint charging GANGADAI RAMPERSAUD AZIM, a/k/a “Julie Azim,” with wire fraud, bank fraud, bank theft, money laundering, and conspiracy, for her role in a scheme to defraud her employer, a Manhattan-based bank, of approximately $1.7 million. AZIM was arrested today and presented before United States Magistrate Judge Stewart D. Aaron this afternoon.
U.S. Attorney Audrey Strauss said: “As alleged, Gangadai Azim betrayed her position as a trusted bank employee to defraud the bank and misappropriate client funds for more than a dozen years. She allegedly stole more than $1.7 million and concealed the scheme until an absence from work led to its discovery. Now Azim faces the prospect of a much longer absence from work.”
FBI Assistant Director William F. Sweeney Jr. said: “Azim’s alleged $1.7 million fraud scheme not only victimized her employer, but also risked the financial standing of the customers whose accounts she manipulated. In the long run, defrauding a financial institution with the hope of making an easy profit only resulted in federal charges and the potential for time behind bars.”
According to the allegations in the Complaint[1] unsealed today in Manhattan federal court:
Between August 2008 and January 2021, AZIM, a long-time employee of a New York, New York-based bank (“Bank-1”) stole approximately $1.7 million from her employer. Over the course of approximately 12 years, AZIM executed hundreds of wire transfers of Bank-1 funds to co-conspirators and related companies, who then sent portions of the ill-gotten funds to AZIM’s personal bank account.
In furtherance of her scheme to defraud Bank-1, AZIM repeatedly made false entries in Bank-1’s systems, misappropriating funds paid to Bank-1 by its clients to satisfy outstanding loan obligations and then extending the maturity dates of those loan obligations, making it appear as though the loan obligations had not yet been paid. When even the fraudulently extended maturity dates came due, AZIM originated new, fraudulent loans. AZIM utilized the proceeds of those fraudulent loans to satisfy the loans for which she had previously stolen the client payments. In doing so, AZIM abused her position at Bank-1 and enriched herself at the expense of her employer.
AZIM’s fraud was discovered by Bank-1 when AZIM took a leave from her position at Bank-1 as a result of illness earlier this year. In January 2021, Bank-1 debited the account of a client of Bank-1 (“Client-1”) in order to pay off an outstanding loan obligation Client-1 had coming due. Client-1 then alerted Bank-1 that the debit was improper, as Client-1 had, in fact, paid off that obligation in 2019. Upon further investigation, Bank-1 discovered that while the funds had been withdrawn from Client-1’s account in or about 2019, AZIM had misappropriated those funds, using them for purposes other than satisfying Client-1’s obligation.
As a result of identifying this discrepancy, Bank-1 officials discovered approximately 14 loan obligations (the “Fraudulent Loan Obligations”), worth more than approximately $1 million, for which no underlying documents existed. AZIM appears to have entered each of the Fraudulent Loan Obligations in Bank-1’s systems so that the proceeds could be used, in significant part, to pay off outstanding loan obligations coming to maturity; those loan obligations had, in fact, already been satisfied by clients, but AZIM had misappropriated the payments. In addition, Bank-1 officials discovered approximately five outstanding loan obligations, worth more than approximately $706,000, for which AZIM appears to have extended the maturity dates, despite the relevant clients having paid off the loan obligations.
The approximately $1.7 million of loan proceeds resulting from the Fraudulent Loan Obligations and the improperly extended maturity dates appear to have been misappropriated by AZIM. Over the course of approximately 12 years, between 2008 and 2020, AZIM caused approximately 200 wire transfers of Bank-1’s funds, each for an amount under $10,000, to be sent to third party accounts, including those of co-conspirators and related companies, which then returned portions of those funds to AZIM.
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AZIM, 58, of Richmond Hill, New York, is charged in the Complaint with (1) conspiring to commit wire fraud and bank fraud, which carries a maximum sentence of 30 years in prison; (2) bank fraud, which carries a maximum sentence of 30 years in prison ; (3) wire fraud, which carries a maximum sentence of 20 years in prison; (4) bank theft, embezzlement, or misapplication, which carries a maximum sentence of 30 years in prison; (5) conspiring to commit money laundering, which carries a maximum sentence of 20 years in prison; and (6) money laundering, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the FBI in this case.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Katherine Reilly is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Baltimore Police Department Officer Facing Federal Indictment for Stealing Approximately $10,000 from Funds Seized in Execution of Search Warrant, and Then Making False Statements to FBI InvestigatorsRead the Press Release
Baltimore, Maryland – A federal grand jury today returned an indictment today charging Ethan Glover, age 49, of Baltimore, Maryland, for the federal charges of false statements to law enforcement and theft of government property. Glover joined the Baltimore Police Department (BPD) on February 19, 2003. He became a federal task force officer (TFO) with the Drug Enforcement Administration in 2013.
The indictment 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; and Commissioner Michael Harrison of the Baltimore Police Department.
According to the two-count indictment, on April 8, 2016 Glover participated in the execution of a search warrant on John Avenue as a member of DEA Group 51. Law enforcement recovered three duffel bags containing large amounts of cash and a handwritten document with currency totals stating there was $2,428,900 in the house. Glover transported the cash from the residence to another location where a search warrant had been executed, and then to the DEA Baltimore Office, alone in his vehicle the entire time. The indictment alleges that during the drive from John Avenue to the DEA Baltimore Office, Glover stole a portion of the cash seized at the John Avenue residence. Ultimately, Glover took the seized cash to a professional counting service due to the large amount. The counting service found that the amount of cash seized, inclusive of any suspected counterfeit bills, totaled $2,419,125, which is $9,775 less than what was actually seized at the John Avenue residence, according to the handwritten document recovered within the home.
The indictment further alleges that Glover went to his then-girlfriend’s apartment with what he described to her as $10,000 in cash. Glover allegedly hid the funds in her bathroom. During conversations about the money, Glover told his girlfriend that he was followed by another TFO while driving the cash from the search warrant site and that the money came from a “big case” that had been recently featured on the news. Approximately one week later, Glover allegedly moved the money from his girlfriend’s apartment to his home.
On April 23, 2016, Glover allegedly used some of the cash stolen from the John Avenue search to buy his then-girlfriend a pair of shoes valued at $295 from a mall in Pennsylvania. According to the indictment, in June 2016, his then-girlfriend moved into his home and saw a large sum of money hidden behind Glover’s refrigerator.
As detailed in the indictment, on February 28, 2020, Glover participated in a voluntary interview with the FBI about a seizure that had occurred with the officer-in-charge of BPD’s Gun Trace Task Force. Before being questioned, Glover confirmed that he understood that it was a crime to lie to the FBI TFO’s interviewing him. When questioned, Glover asked the interviewing TFO’s how much the arrestee “is saying is missing? Is it money or drugs? How much did he say he had? A million?” or words to that effect. Glover told investigators that he did not witness any officer steal money during this seizure. Glover also stated that he did not steal money from this particular seizure or any other case, saying, “I’ve never stolen anything in my life. Never money or drugs.”
If convicted, Glover faces a maximum sentence of 10 years in federal prison for theft of government property and five years in federal prison for making false statements to federal law enforcement. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. No court appearance is currently scheduled for Glover.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the FBI and BPD for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Leo J. Wise and Christine Goo, who are prosecuting this case.
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Australian Citizen Arrested for Visa FraudRead the Press Release
ALBANY, NEW YORK – Paul J. Carter, also known as Paul Hamilton, and formerly known as Paul J. Cristallo, was arrested yesterday for making false statements on a visa application.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Kevin Kelly, Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo Field Office.
Carter, age 55, an Australian citizen residing in Watervliet, New York, is accused of lying about whether he used other names, as well as his criminal history, when he applied for a U.S. visa in 2018. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty
Carter appeared in court yesterday before United States Magistrate Judge Daniel J. Stewart, and was ordered detained pending a detention hearing scheduled for tomorrow, April 9.
If convicted, Carter faces up to 10 years in prison, as well as a maximum $250,000 fine. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by HSI, with assistance from the U.S. Department of State Diplomatic Security Service, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Ashland man admits assaulting person with rifle on Northern Cheyenne Indian ReservationRead the Press Release
BILLINGS — An Ashland man accused of hitting another man in the head with a rifle pleaded guilty to an assault charge today, Acting U.S. Attorney Leif Johnson said.
Channing Lee Ziler, 33, pleaded guilty to assault resulting in serious bodily injury. Ziler faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. Ziler was detained pending further proceedings. A sentencing date is pending.
In court documents filed in the case, the government alleged that on Dec. 31, 2017, Bureau of Indian Affairs law enforcement officers responded to a 911 call at a residence in Ashland, on the Northern Cheyenne Indian Reservation. Multiple people were drinking at the residence, including Ziler. Witnesses described Ziler as being violent that night. The victim, identified as John Doe, arrived at the residence with other individuals. Witnesses described Ziler as holding a rifle when Doe arrived and saying, “this looks like someone I can slap around.” Ziler then struck Doe in the head with the rifle.
Ziler took Doe’s truck and left with Doe and another person. Law enforcement received another 911 call that the truck had run out of gas and that Ziler had set it on fire to stay warm in below zero temperatures. Ziler left the scene with the other individual, and law enforcement found Doe by the truck. Doe was taken to a Billings hospital for treatment of injuries.
Assistant U.S. Attorney Bryan Dake is prosecuting the case, which was investigated by the FBI.
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Anchorage Man Sentenced to Nine Years in Federal Prison for Using Craigslist to Setup Armed RobberiesRead the Press Release
ANCHORAGE – An Anchorage man was sentenced to nine years in prison followed by three years of supervised release for possession of a firearm during two separate armed robberies of Craigslist sellers.
According to court records, on August 24, 2019, Cloyd Lacap Jr., 22, robbed two individuals at gun point after arranging to meet them for the supposed purpose of purchasing items each had listed for sale online.
The first robbery took place in the parking lot of Balto Seppala Park in Anchorage where Lacap had arranged to meet the seller of a PlayStation gaming console. When the seller opened his trunk at the park to show the gaming console, Lacap pulled out a handgun, racked the slide and took the gaming console before leaving the park on foot.
Later the same day, Lacap arranged to meet the seller of an iPhone in the parking lot of a restaurant in Anchorage’s Turnagain neighborhood. After arriving in an unidentified car, Lacap got in the back seat of the seller’s vehicle. When the seller showed him the smartphone, Lacap pointed a handgun at the victim, grabbed the phone and then exited the victim’s vehicle. Lacap left in the same vehicle that he arrived in.
Lacap was indicted by a federal grand jury in January 2020 and later pleaded guilty to one count of possessing a firearm during a crime of violence. He has been detained without bail on his federal case since January 24, 2020.
Prior to pleading guilty in this case, Lacap pleaded guilty in State of Alaska Superior Court case 3AN-19-05391CR to assault in the first degree and misconduct involving weapons in the first degree as part of a global plea agreement. Lacap’s guilty pleas in the state case were for his role in a May 2019 armed robbery in Anchorage. That case was prosecuted by Assistant District Attorney Saritha Anjilvel.
Acting U.S. Attorney Bryan Wilson for the District of Alaska; Special Agent-in-Charge Jonathan T. McPherson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and Chief Justin Doll of the Anchorage Police Department made the announcement.
Assistant U.S. Attorney Allison O’Leary prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
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Note to editors:
From our partners with the Anchorage Police Department, here are some precautions to take when making purchases online:
- Never go to the meet alone. Have at least one other person with you. Make sure another individual, who is not with you, knows where you are, what you are doing, and any details you have about the other party you are meeting.
- Meet in a public place that has cameras and a lot of foot traffic such as a superstore parking lot.
- Meet during a busy time of day – not late at night or early in the morning when there are not many other people around.
- If the party you are meeting arrives in a vehicle, jot down the license plate and a description of the vehicle.
- Pay attention to the physical attributes of the people you are meeting with in case you need to give a detailed description of them to the police later.
- Only deal in cash. Checks and cashier checks can easily be forged. Pay attention to the money you accept. Make sure it looks and feels the way money should.
- Should you be threatened, follow the instructions of the suspect(s), leave the area as soon as possible, and call 9-1-1 as quickly as you can.
Alabama Woman Pleads Guilty to Bank FraudRead the Press Release
Jackson, Miss. – Tanya Henry Shelby, 40, of Pelham, Alabama, pled guilty yesterday before U.S. District Judge Kristi H. Johnson to bank fraud, announced Acting United States Attorney Darren J. LaMarca and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
From November 2015 through April 2016, Shelby owned a car dealership named Tanya Shelby Auto Sales dba Payless Car Sales, in Hinds County, Mississippi. As part of the scheme to defraud, Shelby opened personal and business accounts at the Mississippi National Guard Federal Credit Union and Citizens National Bank. She further negotiated and executed checks that were drawn on the accounts at Mississippi National Federal Credit Union and Citizens National Bank when she knew that the accounts had insufficient funds. As part of the scheme to defraud, Shelby negotiated and deposited checks with insufficient funds at the financial institutions that resulted in the institutions showing inflated balances on her accounts that caused the checks to be honored rather than be returned unpaid.
Additionally, Shelby opened and used lines of credit at NextGear Capital and Citizens National Bank to secure credit for the same three vehicles at each financial institution, knowing that payments would not be made on any of the lines of credit.
On December 2, 2020, Shelby was charged with bank fraud in a single count Information. She will be sentenced by Judge Johnson on July 13, 2021, at 1:30 p.m. and faces a maximum penalty of 30 years in prison and a $1,000,000 fine.
The case was investigation by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Erin Chalk.
Acting U.S. Attorney Williams and 15+ Philadelphia-Area Federal Agency Directors Issue Letter to Citizens Announcing Initiative to Combat City’s Gun Violence EpidemicRead the Press Release
PHILADELPHIA – During a press conference held on Independence Mall this morning, Acting United States Attorney Jennifer Arbittier Williams was joined by senior officials from more than 15 federal agencies operating in the Philadelphia area to announce their collective effort to combat the raging epidemic of violence in the city and support the work of the Philadelphia Police Department, which was represented at the event by Commissioner Danielle Outlaw. In a letter addressed to the citizens of the Eastern District of Pennsylvania, federal leaders pledged an “All Hands On Deck” effort from their respective agencies to identify, investigate and hold responsible perpetrators of violent crime.
“The violence in Philadelphia affects all of us, not just residents of the city – millions of people travel in and out for work, school, medical care and more. The mission of the federal agencies gathered here today is to keep our entire District safe in partnership with local authorities,” said Acting U.S. Attorney Williams. “That is why we are here today: to announce that together, we are ‘All Hands On Deck’ to stop the violence and support the Philadelphia Police Department in their work. Violent criminals should be on notice that we are re-doubling our efforts and we are coming for you. We have had enough.”
“Our citizens, our children, and even our officers are being victimized as a result of the continued violence in the city. Enough is enough. The PPD and our federal partners recognize the gravity of the challenges that we face. We must continue to work together—citizens, police, and stakeholders - in order to make headway against the scourge of gun violence. We truly are in support of and need ‘All Hands On Deck’,” stated Commissioner Danielle Outlaw.
The text of the letter to the citizens is as follows. The entire letter is available on the USAO-EDPA website.
To the Citizens of the Eastern District of Pennsylvania:
The current violence in Philadelphia affects all of us. Over 1.5 million people live in the City, and millions more travel into the City for work or school, to receive medical care, and to enjoy the City’s parks and cultural attractions. The impact of the ongoing violence is felt in Philadelphia as well as far beyond the City’s limits.
As federal law enforcement, our mission is to keep our entire District safe, and the current state of affairs puts the safety and well-being of everyone in the Eastern District of Pennsylvania at risk. Murders and shootings in Philadelphia continue to rise at an alarming pace. In 2020, 499 people were murdered—a 40% increase from the 356 homicides that occurred in 2019. And in 2021, we are on pace to surpass 600 murders, a horrifying milestone. Importantly, these numbers do not tell the whole story because they do not include the victims of violence who were lucky enough to survive, nor do they address the harm caused to Philadelphia’s commerce and spirit as people find themselves afraid to venture outside after dark.
These statistics are grim. We cannot allow violent criminals to hold Philadelphia hostage.
That is why we, the undersigned leaders of federal law enforcement agencies, have come together to deliver this message: We are outraged and have had enough.
Many of the federal agencies below investigate violent crime as part of their mission. But even those that do not have joined this letter to show their commitment to the cause. We are joining together, like never before, to use every tool at our disposal to find and arrest the most dangerous criminals. From obtaining search warrants, to reviewing cell phone records and ballistics evidence, to mobilizing our network of sources, we are sharing information and working every angle—standing shoulder to shoulder with Philadelphia police—to do all that we can to reverse this trend. And when we find those who are committing violence, we will prosecute them and obtain stiff sentences when they are convicted.
We know what the City needs: it needs All Hands On Deck to stop the violence. And that is what we are committed to provide.
Abatement Company Owner Pleads Guilty to Illegally Removing AsbestosRead the Press Release
A New York woman pleaded guilty today to illegally removing and disposing of asbestos.
According to court documents, between 2015 and 2016, Stephanie Laskin, 45, of Newburgh, along with several others, conspired to illegally remove asbestos from a former IBM site in Kingston, now known as TechCity. The facility in question contained over 400,000 square feet of regulated asbestos-containing material (RACM), as well as an additional 6,000 linear feet of RACM pipe wrap.
Laskin, the owner of A2 Environmental Services (A2ES), who had special asbestos abatement training, hired numerous workers and supervisors to conduct the asbestos removal. She and her co-conspirators pressured these workers to expedite the removal of asbestos at the site to meet contract deadlines. In doing so, she led them to cut corners, violate their remediation training, and handle RACM in dangerous and illegal ways.
At times, she and other A2ES supervisors, including Gunay Yakup who pleaded guilty in March, instructed workers to remove RACM dry. Wetting is required by law and helps to prevent airborne asbestos fibers. When the workers questioned her, Laskin gave them the choice of following her directions or losing their jobs. This resulted in numerous violations of the Clean Air Act’s “work practice standards,” which address how asbestos can be stripped, bagged, removed, and disposed of with relative safety. Laskin is scheduled to be sentenced on July 27 and faces a maximum penalty of five years in prison.
“Defendant Laskin went into this project with her eyes open, planning to do it on the cheap,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division (ENRD). “But, that meant doing this project in knowing violation of the law and her supervisor training, placing others at risk of inhaling asbestos fibers. This criminal prosecution holds her accountable.”
Laskin admitted that she and her supervisors, workers, and other co-conspirators removed substantial amounts of RACM from the site in violation of the work-practice standards and were issued numerous notices of violation (NOVs) associated with dry removal, storing bulk quantities of RACM waste on-site in open containers, failing to properly contain work areas to avoid discharges of RACM to the outside air, sweeping dry RACM in ways that produced visible emissions, and conducting work outside containment and other dry removal abatement techniques. In light of the repeated violations, New York State Department of Labor (NYSDOL) inspectors issued “red tags” for the site on Aug.1, 2016, which stopped all work and ended Laskin’s company’s illegal abatement efforts.
The site was later deemed to be contaminated by the Environmental Protection Agency (EPA) and municipal authorities. Cleanup costs associated with asbestos contamination at the site are estimated to be in the millions. Asbestos has been determined to cause lung cancer, asbestosis, and mesothelioma, an invariably fatal disease. The EPA has determined that there is no safe level of exposure to asbestos.
Special agents of the EPA and individuals from the New York Departments of Labor and Environmental Conservation investigated the case. Todd W. Gleason and Gary N. Donner of ENRD’s Environmental Crimes Section prosecuted the case with the assistance of paralegal Chloe Harris.
3 Family Members Sentenced for Health Care Fraud Schemes Targeting VeteransRead the Press Release
PITTSBURGH – Brothers Mehran David Kohanbash and Joseph Kohan, and their nephew, Nima Rodefshalom, have been sentenced for their roles in an elaborate fraud scheme that stole millions of dollars from health care systems across the United States.
United States District Judge Susan Paradise Baxter on Wednesday sentenced Nima Rodefshalom, 38, of Los Angeles, CA to 54 months’ imprisonment and today sentenced David Kohanbash, 53, of Beverly Hills, CA to 54 months’ imprisonment and Joseph Kohan, 62, of Encino, CA to 42 months’ imprisonment. The defendants pleaded guilty in December 2020 to charges of healthcare fraud, conspiracy to commit fraud, and conspiracy to violate the federal anti-kickback statutes. Additionally, 16 corporate entities (pharmacies) pled guilty to charges of healthcare fraud, conspiracy to commit fraud, and/or conspiracy to violate the federal anti-kickback statutes. Sentencing for the defendant pharmacies has not yet been scheduled. The defendants have already paid more than $60 million to the government as part of forfeiture and a civil settlement. As part of the sentence the Court ordered $54.5 million in restitution to compensate the health insurance companies that were defrauded, including the military health insurance entity, TRICARE.
According to the information presented to the Court at the time of the pleas the three defendants conspired together to execute health care fraud schemes that targeted patients that had undergone, or were to undergo, bariatric surgical procedures. The individual defendants together with the defendant pharmacies engaged in a series of interconnected actions that resulted in misleading advertising associated with supplying what were described to the Court as nutritional shakes; the inducement to enlist various patients in ordering the nutritional shakes resulted in the defendants and the pharmacies securing the patients’ insurance information which in turn resulted in the defendants (individual defendants and by and through the pharmacies) soliciting the patients to appeal to their respective physicians to prescribe what were described for the Court as High Yield (expensive) medications.
These medications were often compounded, meaning that one or more of the pharmacies mixed together preexisting medications or substances to provide a new or different product. It was a part of the scheme(s) involved in the guilty pleas that the defendants conspired to promote these medications that often yielded extremely high profits. It was a part of the healthcare fraud scheme that the defendants defrauded healthcare benefit programs, both private insurance carriers and the government run health care program, TRICARE, for military members and their families, by manipulating the
collection of co pays on various medications to make it appear that co pays were being collected when in fact they were not. An honest reporting of the failure to collect co pays would have resulted in the defendants being unable to bill insurance carriers for the cost of the various medications. The various schemes in which the defendants were involved were overlapping and ran from September of 2013 through May of 2018.
"Identifying and prosecuting individuals who exploit health care benefit programs for personal enrichment is a priority of our office," said Acting United States Attorney Stephen R. Kaufman. "The sentencings of these defendants to federal prison and the significant amount of forfeiture - the largest in District history - should serve as a sign of our commitment to pursue justice and preserve the integrity of health care benefit programs."
"With these sentencings, the defendants will now be held accountable for their intentions to defraud our healthcare system," said Acting Special Agent in Charge Carlton Peeples. "They’ll spend the next few years behind bars thinking about what their selfish actions cost them, the patients and our healthcare systems. This case involves $60 million in penalties and forfeiture. It’s the largest forfeiture in a criminal case in the history of the Western District of Pennsylvania. I commend the work of the agents involved in our Erie office, which worked this case tirelessly from beginning to end, while having limited resources and working the numerous other violations the FBI investigates. This case will have an impact nationwide and should also serve as a warning to other companies who choose to operate with fraud schemes instead of honesty. The FBI is committed to working with our federal and public sector partners to stop fraud and ensure everyone receives quality medical care."
"These sentences and monetary forfeitures demonstrate the commitment of the Defense Criminal Investigative Service, Federal Bureau of Investigation, Defense Health Agency, and the United States Attorney's Office in the Western District of Pennsylvania, to protect the American warfighter and taxpayer from those that attempt to victimize them by defrauding our nation's healthcare programs including TRICARE," said Bryan Denny, Patrick Hegarty, and Chris Dillard, Special Agents in Charge, U.S. Department of Defense Office of Inspector General, Defense Criminal Investigative Service. "False and inappropriate billings, by virtue of intended schemes or willful ignorance, place the American Warfighter in danger, erode public confidence and undermine the mission of our military services. DCIS and its law enforcement partners will continue to investigate healthcare fraud allegations in order to protect U.S. military members and the American taxpayer."
Assistant United States Attorneys Shardul S. Desai and James R. Wilson are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Department of Defense Office of the Inspector General conducted the investigation that led to the prosecution of Nima Rodefshalom, Mehran David Kohanbash, Joseph Kohan, Insure Nutrition, Inc., Affordable Pharmacy, Inc., ASC Pharmaceutical, LLC, DQD Enterprise Corporation, DTST Ventures, LLC, Econo Pharmacy, Inc., Emerson Pharmacy, Inc., Genorex Pharmaceutical, LLC, Nutrition Plus, Inc., Pharmatek Pharmacy, Inc., Premier Med Services, Inc., Rexford Pharmacy, Inc., Specialty Pharmacy Management of America, Inc., Solutech Pharmaceuticals, LLC, Village Drug & Compounding, Inc., and Vitamed LLC.
Wednesday 7 April 2021
Woman Pleads Guilty for Her Role in Narcotics Conspiracy Operating in the Jamestown, NY AreaRead 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 Kylie Reeves, 28, of Jamestown, NY, pleaded guilty before U.S. Magistrate Judge Michael J. Roemer to conspiring to possess with intent to distribute, and distributing, 50 grams or more of methamphetamine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorneys Joshua A. Violanti and Misha Coulson, who are handling the case, stated that the defendant was part of a drug trafficking ring led by co-defendant Rocco Beardsley. Reeves distributed methamphetamine and heroin for Beardsley, who managed the defendant, controlled the supply, and set the prices. Reeves also allowed Beardsley to utilize her residence on W. Cowden Place in Jamestown and communicated with others on his behalf. On March 24, 2020, Beardsley was arrested on New York State warrants following a traffic stop. Law enforcement officers recovered large quantities of methamphetamine, fentanyl, cocaine, crack cocaine, hydrocodone, and other controlled substances from Beardsley’s vehicle. Investigator’s then searched Beardsley’s residence, recovering methamphetamine, a glass plate with white powder material, digital scale, and $185.00 in United States currency. Reeves and her three minor children also lived at the residence. Following Beardsley’s arrest, the defendant conducted drug trafficking activities on his behalf, communicating with co-conspirators, associates, suppliers, and customers in order to continue receiving proceeds.
Reeves was indicted along with six other defendants in October 2020. She is the first defendant to be convicted.
The plea is the result of an investigation by the Jamestown Police Department and the Jamestown Metro Drug Task Force, under the direction of Acting Jamestown Police Chief Timothy Jackson; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
Sentencing will be scheduled at a later date.
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Wilmington Man Sentenced for Armed Robbery of Scotchman Convenience StoreRead the Press Release
WILMINGTON, N.C. –A Wilmington man was sentenced today to 100 months in prison for robbery affecting interstate commerce and possession of a firearm in furtherance of a crime of violence.
According to court documents and other evidence, Shaun Cedric Robinson, 22, and a co-defendant went to the Scotchman gas station and convenience store in Burgaw on June 4, 2019 and robbed the store. Robinson entered the store and held the clerk at gunpoint while he demanded money. The clerk opened the cash register and the co-defendant took the money out of the register. Robinson’s co-defendant had driven Robinson to the store to effectuate the robbery and was going to be the get-away driver. However, Robinson ran the opposite direction from where the car was parked, and his co-defendant drove away from the scene without him. The clerks were able to describe the car that fled the area and officers with the Burgaw Police Department were able to locate the car very shortly after the robbery. Robinson’s co-defendant was with the car and was detained for questioning. Robinson was found a short time after the robbery walking within 3 blocks of the Scotchman. Robinson was wearing clothing consistent with the robber and attempted to flee from law enforcement when they approached him. In addition, Robinson had money from the store on his person as well as the firearm used during the robbery. The firearm belonged to his co-defendant’s sister. Both men were transported to the Burgaw Police Department. Robinson once again fled from law enforcement but was found a short time later. Robinson gave a statement to law enforcement wherein he denied participating in the robbery. He claimed another person had done the robbery. When law enforcement confronted him about his clothing being consistent with the clothing worn by the robber, Robinson claimed he let the robber wear his pants and after the robbery Robinson took the pants back from the real robber and took the firearm from him. Despite his initial claims of innocence, Robinson ultimately pled guilty on November 4, 2020 and was sentenced today.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Burgaw Police Department investigated the case and Assistant U.S. Attorney Charity Wilson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-cr-00080-M.
VIPD Crime Prevention Bureau, Project Safe Neighborhoods, and Community Leaders Invite Everyone to Support the Garden Street Community on St. Thomas with a Walk Through the Neighborhood on Friday, April 9th at 6:30 p.m.Read the Press Release
St. Thomas, USVI- United States Attorney, Gretchen C.F. Shappert announced today that members of the Virgin Islands Police Department Crime Prevention Bureau, the U.S. Virgin Islands Project Safe Neighborhood initiative, and Community leaders, together with representatives from the neighborhood, will be meeting at Bred Gade and Garden Street on Friday, April 9th at 6:30 p.m. to walk the neighborhood and hear concerns from community residents. Participants will be asked to wear masks and practice social distancing.
Shappert noted that the historic Garden Street community has experienced tragic, gun-related violence. "We all remember that on May 8th of last year, a Friday morning, residents of the Garden Street community heard repeated gunshots at around 8:30 a.m. Moments later, 39-year-old Jamal Jacobs was found lying face down on the road. His tragic death was the 10th homicide of the year on St. Thomas," Shappert said. "This senseless act of violence profoundly impacted the community."
For more information about the Garden Street walk, please contact: 340-244-6539.
Project Safe Neighborhoods
Project Safe Neighborhoods (PSN) is a nationwide Department of Justice initiative to reduce gun crime in America through strategic partnerships between federal, local, and community stakeholders. PSN targets gun crime and gun-related violence, while supporting violence reduction strategies and the coordination of community-based partnerships. The goal is to create safer neighborhoods by reducing gun violence and fostering public safety.
Two Pittsburgh Residents Indicted on Drug ChargesRead the Press Release
PITTSBURGH, PA. - Two residents of Pittsburgh, PA, have been indicted by a federal grand jury in Pittsburgh on charges of possession with intent to distribute crack cocaine, cocaine, fentanyl, and methamphetamine, Acting United States Attorney Stephen R. Kaufman announced today.
The two-count Indictment named Jared Thomas, 38, and Catherine Strong, 35, as defendants.
According to the Indictment presented to the grand jury, on March 11, 2021, Thomas was found to be in possession of cocaine, 28 grams or more of crack cocaine, and fentanyl, and Strong was found to be in possession of methamphetamine.
The law provides for a maximum total sentence of 40 years in prison, a fine of $5,000,000 or both for Thomas and a maximum total sentence of 20 years in prison, a fine of $1,000,000 or both for Strong. 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 defendants. The defendants are currently being detained at the Allegheny County Jail.
Assistant United States Attorney Michael R. Ball is prosecuting this case on behalf of the government.
The Drug Enforcement Agency and the Pittsburgh Bureau of Police 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.
Transnational Money Launderer Sentenced to 50 Months in PrisonRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that ALADE KAZEEM SODIQ, a/k/a “Eluku,” was sentenced in Manhattan federal court to 50 months in prison for conspiracy to commit money laundering. SODIQ, a money launderer who operated in Dubai, United Arab Emirates, was charged in 2019 along with Habeeb Audu, Abdulai Kennedy Saaka, Dominic Francis Labiran, and Yusuf Owolabi Abdul. SODIQ pled guilty on November 19, 2020, to one count of conspiracy to commit money laundering, before U.S. District Judge Katherine Polk Failla, who also imposed today’s sentence.
U.S. Attorney Audrey Strauss said: “Using a widely available telephone ‘spoofing’ service and other deceitful means, Alade Sodiq, in concert with others, was able to steal and conceal millions of dollars in victim funds. Sodiq has rightly received a significant sentence for his crimes. This Office is committed to working with the FBI to uncover and uproot organizations like Sodiq’s that would exploit the U.S. financial system.”
According to the allegations in the Indictment, court filings, and statements made during court proceedings, including SODIQ’s plea and sentencing hearings:
From at least 2013 through in or about 2018, SODIQ and various other conspirators, located in countries including the United States, Canada, Italy, the United Kingdom, and the United Arab Emirates (collectively, the “Conspirators”), were involved in a scheme to fraudulently access millions of dollars held in individuals’ and corporations’ bank accounts, and to conduct financial transactions using those bank accounts without the knowledge or authority of the accounts’ legitimate owners (the “Bank Scheme”). As part of the Bank Scheme, the Conspirators placed thousands of calls to various United States banks, holding themselves out as legitimate accountholders of particular targeted bank accounts and using the stolen personal identifying information belonging to those accountholders. Using a particular telephone number “spoofing” service, and voice-altering technology, the Conspirators would deceive bank representatives into believing that the Conspirators were actual accountholders. In so doing, they convinced multiple U.S. banks to, among other things: Transfer funds into accounts from which the Conspirators could access the funds and conduct further unauthorized transactions; falsely list victim accountholders as “traveling abroad” to reduce the chances of the bank flagging suspicious international transactions made by the Conspirators; have “replacement” credit cards mailed to international addresses controlled by the Conspirators; and authorize foreign purchases made by the Conspirators.
SODIQ was also involved in separate schemes to defraud United States-based businesses and banks by means of business email compromise schemes (the “BEC Fraud Schemes”). For example, SODIQ and his co-conspirators defrauded a North Carolina-based healthcare company (the “Healthcare Company Victim”) into wiring over $1 million to a bank account controlled by one of SODIQ’s co-conspirators (the “SODIQ Co-conspirator Account”). They did so by tricking the Healthcare Company Victim into believing that one of its legitimate vendors had changed bank accounts to the SODIQ Co-conspirator Account, such that payment for the vendor’s services were made to the SODIQ Co-conspirator Account. These funds were thereafter quickly withdrawn from the SODIQ Co-conspirator Account and dispersed to other accounts controlled by SODIQ and his co-conspirators.
Thereafter, in connection with an FBI undercover operation, SODIQ and others each agreed, for a substantial fee, to launder funds that they believed to be fraud proceeds through bank accounts controlled by SODIQ’s co-conspirators. SODIQ and his co-conspirators agreed to conceal the nature of those purportedly fraudulent proceeds.
In addition to the prison term, SODIQ, 50, of Dubai, United Arab Emirates, was also sentenced to one year of supervised release, and ordered to pay $298,581.11 in restitution and forfeiture in the amount of $23,385.00.
Other defendants charged in this case include Abdulai Kennedy Saaka, a/k/a “Kenny,” of Atlanta, Georgia, who pled guilty to one count of money laundering conspiracy was sentenced to 32 months in prison; Habeeb Audu, a/k/a “Dickson,” a citizen of the United Kingdom and Yusuf Owolabi Abdul, a/k/a “Saheed Sador,” a citizen of Canada, whose cases remain pending; and Dominic Francis Labiran, a citizen of the United Kingdom, who remains at large.
Ms. Strauss praised the outstanding investigative work of the FBI.
The prosecution of this case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Kiersten A. Fletcher, Jonathan E. Rebold, and Andrew A. Rohrbach are in charge of the prosecution.
The charges against Habeeb Audu, Yusuf Owolabi Abdul, and Dominic Francis Labiran are merely accusations, and they are presumed innocent unless and until proven guilty.
Suburban Chicago Man Sentenced to Two and a Half Years in Prison for Illegal Sports Gambling and Tax OffensesRead the Press Release
CHICAGO — A suburban Chicago man was sentenced today to two and a half years in federal prison for conducting an illegal sports gambling business and filing false tax returns.
GREGORY EMMETT PALOIAN conducted his illegal sports bookmaking business in Chicago, Melrose Park, and Elmwood Park. Paloian accepted wagers on the outcome of sporting events, including collegiate games and professional football, basketball, baseball, and hockey games. Paloian retained the services of a website where his bettors could view odds on sporting events, place bets, and track their winnings and losses. Paloian and his agents regularly met with the bettors to collect losses or pay out winnings.
From 2012 to 2018, Paloian caused an accountant to file false tax returns that Paloian knew substantially understated his income, including income derived from the operation of his illegal gambling business. The conduct caused a total loss to the IRS of $172,458, and the Illinois Department of Revenue of $25,238.
Paloian, 66, of Elmwood Park, pleaded guilty earlier this year to one count of conducting an illegal gambling business, and one count of filing a false tax return. U.S. District Judge Joan Humphrey Lefkow imposed the 30-month sentence after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; 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.
“This was a large, high stakes, predatory gambling organization,” Assistant U.S. Attorneys Terry M. Kinney and Ankur Srivastava argued in the government’s sentencing memorandum. “It was a highly lucrative illegal business which generated hundreds of thousands of dollars of revenue for Paloian and his agents during the many years it was in operation.”
St. Croix Man Sentenced to 24 months for Attempted Coercion and Enticement for Illegal Sexual ActivityRead the Press Release
St. Croix, USVI – The United States Attorney, Gretchen C.F. Shappert, announced today that on Tuesday, April 6, 2021, Chief Judge Wilma Lewis sentenced Rashead Gerard, 24, of St. Croix, to 24 months in prison, five years of supervised release and a $100 special assessment for attempted coercion and enticement for illegal sexual activity.
According to the plea agreement filed with the court, on or about August12, 2019, Gerard responded to an ad posted online. A Homeland Security Investigations agent posed as the father of a female minor, who was looking for a tour guide to show her around for an hour or two. The defendant asked what the minor wanted to do, and the agent replied, "anything that you’re up for." The agent told the defendant that the minor was 14 and the defendant told the agent he would pay for 30 minutes to engage in sexual activity with the minor. They agreed to meet at the Fort in Frederiksted around 5:30 p.m. The defendant was arrested when he went to the agreed-upon location and condoms and money were found in his car.
The case was investigated by Homeland Security Investigations. It was prosecuted by Assistant U.S. Attorney Rhonda Williams-Henry.
Social Security Fraud Leads to Federal Prison TimeRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that a Wilmington woman was sentenced today to 5 months in federal prison for defrauding the U.S. Social Security Administration (“SSA”) of more than $200,000 over the past fifteen years. Chief Judge Leonard P. Stark of the United States District Court for the District of Delaware pronounced the sentence.
According to court documents, Susan DiFelice, 63, spent over a decade collecting fraudulent Social Security benefits that were intended for a deceased beneficiary. In 2005, a family friend of DiFelice’s died. Because DiFelice was a joint user on her deceased friend’s bank account, she knew that the SSA continued to deposit more than $1,000 into his account each month. As the informant on the death certificate, DiFelice also knew that she was required to notify relevant authorities, including the SSA, of the death. Instead, however, DiFelice withdrew the SSA funds and used them for her own personal expenses.
U.S. Attorney Weiss stated, “Ms. DiFelice’s criminal conduct lasted for fifteen years, undermining SSA’s mission to provide for the vulnerable among us. I commend the SSA Office of the Inspector General for their steadfast commitment to ensuring justice in this case.”
“This sentence stands as a warning to those who violate the public trust by misusing Social Security benefits after someone dies,” said Gail S. Ennis, Inspector General for the Social Security Administration. “Our auditors and criminal investigators work side by side, and with SSA and other agencies, to identify those who fail to report deaths for personal gain. I want to thank the United States Attorney’s Office for its efforts to bring this individual to justice.”
The SSA Office of the Inspector General investigated this case under the supervision of Special Agent in Charge Michael McGill, and Assistant U.S. Attorney Christopher R. Howland prosecuted.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 20-CR-48-LPS.
Six Individuals Charged with Multi-Million Dollar Nationwide Scheme to Peddle Fraudulent StocksRead the Press Release
Miami, Florida – Six South Florida residents were indicted by a federal grand jury on charges that they defrauded investors of approximately $21 million by falsely claiming that the investors’ money would go towards the development of a lucrative mobile gaming application that, in reality, never launched and generated no revenue. The fraud scheme operated out of Broward and Palm Beach counties, targeted victim investors across the country, and involved the use of telephone sales rooms (or “boiler rooms”).
Juan Antonio Gonzalez, Acting United States Attorney, Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami Field Office, made the announcement.
Gerald Parker, 78, of Juno Beach, Florida, Michael Assenza, 44, of Boca Raton, Florida, Paul Geraci, 45, of Parkland, Florida, Ted Romeo, a/k/a “Ted Lamar”, 62, of Pompano Beach, Florida, Paul Vandivier a/k/a “Dough Wright”, 61, of West Palm Beach, Florida, and Cindy Vandivier a/k/a “Madison Brooke” a/k/a “Madison Brookes”, 64, of West Palm Beach, Florida, are charged with conspiracy to commit mail fraud and wire fraud. Parker, Geraci, Romeo, Paul Vandivier, and Cindy Vandivier are also charged with substantive wire fraud and conspiracy to commit money laundering. In addition, Parker, Geraci, Paul Vandivier, and Cindy Vandivier are charged with substantive money laundering. Parker, Paul Vandiver, and Cindy Vandivier are also charged with mail fraud.
According to the indictment, the six defendants fraudulently sold stock in a Florida company called Social Voucher.com, Inc. (“Social Voucher”) that was later referred to as Stocket, Inc. (“Stocket”). The indictment alleges that in 2013, Parker, the Chief Executive Officer of Social Voucher and Assenza, the Director of Technology, created Social Voucher to develop a mobile gaming application which was intended to combine online gaming and online shopping. Social Voucher was supposed to earn revenue from users of the mobile application buying products while using the application.
Parker hired boiler room salespeople, including Geraci, Romeo, Paul Vandivier, and Cindy Vandivier, to personally solicit investors and hire other sales agents to solicit, offer, and sell shares of Social Voucher stock to investors via telemarketing, according to the indictment. All six defendants allegedly informed investors that their money would be used to develop the mobile gaming application. But Parker, as alleged in the indictment, paid kickbacks and undisclosed commissions of thirty (30) to fifty (50) percent of the investor funds raised by the boiler rooms for Social Voucher that were concealed from the investors. Geraci, Romeo, Paul Vandivier, and Cindy Vandivier sometimes falsely held themselves out to investors as employees of the company.
The indictment further alleges that the defendants made a number of other material misstatements to the Social Voucher investors, including failing to inform investors that Parker in fact used investor funds to gamble at the casino; concealing Assenza’s criminal convictions for securities fraud and money laundering and Parker’s civil securities fraud judgment; and concealing prior regulatory fraud actions against Romeo, Paul Vandivier, and Cindy Vandivier. At times, according to the indictment, Romeo, Paul Vandivier, and Cindy Vandivier used aliases or names different than the names listed on the publicly filed regulatory actions against them when soliciting potential investors or answering investors’ questions.
The six defendants and others raised approximately $21 million in funds from Social Voucher investors. At no point did the Social Voucher mobile gaming application generate any revenue or profit.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
FBI Miami is investigating this case. This case is being prosecuted by Assistant U.S. Attorney Elizabeth Young. Assistant U.S. Attorney Emily Stone is handling asset forfeiture related to the matter.
The case is assigned to United States District Judge Rodney Smith in Fort Lauderdale, Florida. Geraci’s initial appearance is scheduled on April 7, Romeo’s initial appearance is scheduled on April 9, Assenza’s initial appearance is scheduled on April 9, and the other defendants have not yet been scheduled.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-60101.
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Sioux City Man Sentenced to Federal Prison for Armed CarjackingsRead the Press Release
A man who carjacked and robbed two men at gunpoint in a single evening was sentenced to fifteen years in federal prison. The sentencing took place April 6, 2021, in federal district court in Sioux City.
Jeremiah Shortenhaus, age 27, from Sioux City, Iowa, received the prison term after an October 20, 2020, guilty plea to possessing and brandishing a firearm in furtherance of a crime of violence.
Evidence presented by the United States at Shortenhaus’s detention, change of plea, and sentencing hearings revealed that on July 27, 2019, Shortenhaus robbed a man at gunpoint in Sioux City, Iowa while the man was in his car at an ATM. Shortenhaus ordered the man out of his vehicle, entered through the passenger side and stole the vehicle along with personal property from inside the vehicle. Later that same night, in South Sioux City, Nebraska, Shortenhaus robbed a second victim who was sitting in his vehicle waiting for the morning paper. Shortenhaus pointed a handgun at the victim, ordered him to get out of the car and hand over his wallet and phone. Shortenhaus then left the parking lot in the victim’s vehicle. Shortenhaus was apprehended by a Sioux City police officer after a high-speed chase that ended when Shortenhaus crashed the second stolen car and fled on foot.
Shortenhaus was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Shortenhaus was sentenced to 180 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Shortenhaus is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). 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.
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; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was investigated by the Sioux City, Iowa Police Department and the South Sioux City, Nebraska Police Department and was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR‑4068.
Follow us on Twitter @USAO_NDIA.
Sexual Predators Sentenced for Attempted Coercion and Enticement, Distribution of Child PornographyRead the Press Release
PLANO, Texas – Two men have been sentenced for crimes against children, including attempted coercion and enticement of a minor and distribution of child pornography, in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
“The Eastern District of Texas, along with its law enforcement partners, is committed to locating and stopping the most dangerous predators,” said Acting U.S. Attorney Nicholas J. Ganjei. “Many of the events of these cases occurred during the height of the pandemic; however, these agents never stopped working to ensure the safety of the children in our community.”
“Crimes against children are some of the most reprehensible acts that law enforcement is determined to prevent and punish once they occur,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “We are thankful for the collaboration of our partners in the Dallas Child Exploitation and Human Trafficking Task Force. It is because of this partnership that these two individuals are now facing lengthy sentences for their crimes.”
Christopher A. Sheffer, 58, of Media, Pennsylvania pleaded guilty to attempted coercion and enticement of a minor on Oct. 30, 2020 and was sentenced to 240 months in federal prison today by U.S. District Judge Sean D. Jordan. Judge Jordan also ordered Sheffer to pay a fine of $40,000 and a $5,000 assessment pursuant to the Justice for Victims of Trafficking Act of 2015.
According to information presented in court, in September 2019, Sheffer was the administrator of a group on a popular social media and communications application. As an administrator, he had the authority to determine who could join the group, which was devoted to incest and individuals who sexually abuse children. Participants in the group shared child pornography as well as their interest in molesting children. Sheffer privately communicated with an individual who he believed had access to a prepubescent child. Over the next few months, Sheffer expressed his interest in meeting the child for sex, mailed the child gifts, and sent the child private messages. On July 10, 2020, Sheffer flew from his home in Pennsylvania to Texas, where he then rented a car and drove to a specific location to meet the child and engage in sexual acts.
Judge Jordan also sentenced Thomas Earl Cardwell, Jr., 43, of Kemp, Texas, to 210 months in federal prison. Cardwell had previously pleaded guilty to distributing child pornography on Oct. 19, 2020.
According to information presented in court, Cardwell had been arrested for and convicted of online solicitation of a minor, sexual conduct in July 2019 in the 371st District Court of Tarrant County, Texas. He was released from the Texas Department of Criminal Justice in December 2019. Two months later, in February 2020, Cardwell began communicating with individuals on a social media application about his desire to perform oral sex on female children. As part of those communications, on March 6, 2020, Cardwell distributed four videos of child pornography, depicting prepubescent minors engaged in sexually explicit conduct.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
These cases were investigated by the Federal Bureau of Investigation – Dallas Child Exploitation and Human Trafficking Task Force and members of the Plano Police Department. These cases were prosecuted by Assistant U.S. Attorney Marisa Miller.
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Self-Described Member of Boogaloo Bois Arrested, Charged with Illegal Possession of A Machine GunRead the Press Release
Acting United States Attorney W. Anders Folk today announced a federal criminal complaint charging MICHAEL PAUL DAHLAGER, 27, of St. Cloud, Minnesota, with illegal possession of a machine gun. DAHLAGER, who was taken into custody early this morning, made his initial appearance today before Magistrate Judge Becky Thorson in U.S. District Court. DAHLAGER was ordered to remain in custody pending a formal detention hearing, which is scheduled for April 9, 2021.
According to the allegations in the criminal complaint, in November of 2020, the FBI initiated an investigation into DAHLAGER, a self-proclaimed member of the “Boogaloo Bois,” a loosely connected group of individuals who espouse violent anti-government sentiments. The term “Boogaloo” itself references an impending second civil war in the United States and is associated with violent uprisings against the government. In November 2020, the FBI learned through a confidential human source (“CHS”) that DAHLAGER was discussing his willingness to kill members of law enforcement. The FBI also learned that DAHLAGER was in possession of a 3D-printed “drop in auto sear” and a homemade firearm suppressor. An “auto sear” is a part designed and intended for use in converting a semi-automatic weapon to shoot automatically by a single pull of the trigger and is a machine gun under federal law.
According to the allegations in the criminal complaint, on November 21, 2020, while meeting with the CHS and others at his residence, DAHLAGER showed the CHS several tactical items including body armor, an AR-15 style assault rifle with a folding stock, and an item DAHLAGER claimed was a suppressor. The CHS observed loaded magazines for an assault rifle in DAHLAGER’s residence. DAHLAGER also showed the CHS two auto sears, which DAHLAGER said a friend had created using a 3D printer. DAHLAGER told the CHS that his residence has port-holes to make a stand if law enforcement confronts him.
According to the allegations in the criminal complaint, on December 12, 2020, DAHLAGER traveled from St. Cloud to conduct surveillance at the Minnesota State Capitol building in St. Paul, Minnesota, while attending a “Stop the Steal” rally. DAHLAGER scouted law enforcement numbers, over-watch positions for the Boogaloo Bois, quick reaction forces, and which streets were blocked by law enforcement. DAHLAGER made a video recording of his observations at the Minnesota State Capitol rally, which he later reviewed with the CHS.
According to the allegations in the criminal complaint, on January 10, 2020, the CHS approached DAHLAGER about obtaining an auto sear. DAHLAGER told the CHS he had several auto sears and was willing to provide one to the CHS. DAHLAGER told the CHS that he bought a cover for his suppressor to make the device appear to be a heat shield because DAHLAGER knew the suppressor was not legal. DAHLAGER also showed the CHS a video depicting DAHLAGER shooting what appeared to be the same rifle equipped with the same suppressor the CHS had seen in the PREMISES on November 21, 2020. On February 3, 2021, during a meeting at his residence, DAHLAGER provided two auto sears to the CHS and demonstrated how the devices should be inserted into a firearm.
This case is the result of an investigation conducted by the FBI’s Joint Terrorism Task Force, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
This case is being prosecuted by Assistant U.S. Attorney Andrew R. Winter, and Trial Attorneys George Kraehe and Phil Viti of the National Security Division's Counterterrorism Section.
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
MICHAEL PAUL DAHLAGER, 27
St. Cloud, Minn.
Charges:
- Unlawful possession of a machine gun, 1 count
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Robert Goins Leeper Receives 21 Year Prison Sentence for Conspiracy to Distribute MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – On April 5, 2021, Robert Goins Leeper, 52, currently of Clarksville, was sentenced by the Honorable J. Ronnie Greer, in the United States District Court for the Eastern District of Tennessee at Greeneville.
As part of the plea agreement filed with the court, Leeper pleaded guilty to an indictment charging him with one count of Conspiracy to Distribute and Possess with the Intent to Distribute 50 Grams or More of Actual Methamphetamine, U.S.C. 21 U.S.C. § § 846, 841(a)(1), and (b)(1)(A). Leeper was sentenced to 262 months (21.8 years) in prison, followed by five years of supervised release.
In the spring of 2017, local and federal agencies coordinated an investigation into a methamphetamine distribution organization operating in Elizabethton, Tennessee. Leeper was identified as a member of the conspiracy, and it was determined that Leeper conspired with others to distribute hundreds of pounds of methamphetamine into upper northeast Tennessee. Leeper used co-defendants to transport pounds of methamphetamine from California to Tennessee, and he then distributed the methamphetamine to other co-defendants for further distribution. Additionally, Leeper possessed firearms during the conspiracy to protect himself and others during drug transactions.
The criminal indictment was the result of an investigation by the Homeland Security Investigation (“HSI”), the Drug Enforcement Administration (“DEA”), and the Elizabethton and Carter County Joint Drug Task Force. This investigation was led by HSI Special Agent John Bulla.
Assistant U.S. Attorney Meghan L. Gomez represented the United States.
The investigation resulted from the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Richmond Assisted Living Facility Owner Charged with Elder Fraud SchemeRead the Press Release
RICHMOND, Va. – A federal grand jury returned an indictment yesterday charging the former owner of a Richmond-based assisted living facility with allegedly diverting over $800,000 in federal and state benefits that were intended to pay for the care of the facility’s residents.
“As alleged in the indictment, the defendant repeatedly left the residents of her assisted living facility in deplorable conditions while she diverted their essential benefits to pay for her gambling expenses in Atlantic City and Las Vegas, and to fund her personal debts, travel, and retail purchases,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We will vigorously pursue justice on behalf of vulnerable members of our community to ensure that those entrusted to care for the elderly and infirm are held accountable if they exploit the critical trust placed in them.”
According to the indictment, Mable B. Jones, 77, of Richmond, owned and operated Jones & Jones, an assisted living facility complex that served primarily elderly and incapacitated adults. For residents who were legally incapable of managing their own funds, Jones & Jones served as a representative payee and regularly received state and federal benefits payments on behalf of those residents. Representative payees are required to use Social Security benefits to provide for the beneficiary’s needs, including food, clothing, housing, and medical care. Representative payees, moreover, are specifically prohibited from using Social Security benefits for anything other than the beneficiary’s needs. Similar requirements also apply to auxiliary grants issued by the Commonwealth of Virginia’s Department for Aging and Rehabilitative Services.
According to the indictment, beginning around December 2015 and continuing through the facility’s closure in 2019, Jones converted more than $800,000 of the residents’ federal and state benefits for her own personal use. As alleged in the indictment, Jones used the residents’ benefits to satisfy her personal debts, including her mortgage and bankruptcy payments, and to fund her personal travel, retail purchases, and gambling expenses, including at casinos in Atlantic City, New Jersey and Las Vegas, Nevada.
According to the indictment, Jones’s diversion of resident benefits allegedly led to significant and persistent deficiencies in the facilities, care, and services provided to Jones & Jones residents, including deficiencies that allegedly endangered residents’ health and safety. These conditions ultimately prompted state and federal audits of the facility before its closure, during which Jones allegedly made false statements about her conversion and use of resident funds.
Jones is charged with wire fraud and making false statements. If convicted, she faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; Michael McGill, Special Agent-in-Charge, Social Security Administration Office of the Inspector General, made the announcement.
Assistant U.S. Attorneys Kaitlin G. Cooke and Shea Gibbons are prosecuting the case.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local, and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-30.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Restaurant Chain Manager Sentenced to 30 Months in Prison for Employment Tax FraudRead the Press Release
A California restaurant chain manager was sentenced today to 30 months in prison for employment tax fraud.
According to court documents, Aleksandar Sreckovic, of San Diego, was a manager for San Diego Home Cooking, a restaurant group with over 110 employees and five restaurants in the San Diego area: Café 56 & Bar and Mission Valley Café & Bar in San Diego, Lake Murray Café in La Mesa, Lakeside Café in Lakeside, and Centre City Café in Escondido. Sreckovic had significant control over the finances of San Diego Home Cooking and had a duty to account for and pay employment taxes on behalf of the company’s employees to the IRS.
In November 2014, Sreckovic directed an outside payroll company to stop making employment tax payments to the IRS. From the last quarter of 2014 through the last quarter of 2017, Sreckovic did not file employment tax returns, nor did he pay employment taxes for San Diego Home Cooking. Instead, Sreckovic paid other creditors and his own personal expenses. In total, Sreckovic caused a tax loss of over $1.5 million.
In addition to the term of imprisonment, U.S. District Judge Cathy Ann Bencivengo ordered Sreckovic to serve one year of supervised release and to pay approximately $2.3 million in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Randy Grossman for the Southern District of California made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorney Matthew Hoffman of the Justice Department’s Tax Division and Assistant U.S. Attorney Andrew Galvin of the Southern District of California prosecuted the case.
Pittsburgh Man Charged with Federal Drug Law ViolationRead the Press Release
PITTSBURGH - 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 Vincent Chambers, age 40, as the sole defendant.
According to the Indictment, on March 10, 2021, Chambers possessed with the intent to distribute crack cocaine, a Schedule II controlled substance, heroin, a schedule I controlled substance, and fentanyl, a Schedule II controlled substance.
The law provides for a maximum total sentence of not more than twenty (20) years in prison, a fine of $1,000,000 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 Brendan T. Conway is prosecuting this case on behalf of the government.
The Allegheny County Police 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.
Pakistani National Indicted and Sanctioned for Human Smuggling ConspiracyRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging a citizen of Pakistan for allegedly leading a scheme to smuggle undocumented individuals into the United States from Pakistan and Afghanistan.
According to court documents, between January 2015 and December 2020, Abid Ali Khan, 40, allegedly organized, led, and worked with others in his Pakistan-based smuggling network to facilitate the travel of undocumented individuals to the United States. Khan allegedly disregarded the fact that the individuals did not have prior authorization to enter the United States and that their entry into the United States would be illegal. Khan also allegedly encouraged, induced, and brought undocumented individuals to the United States for commercial advantage and financial gain.
“Khan allegedly led a global human smuggling operation that used fraudulent documents and international travel routes to facilitate the entry of unauthorized individuals into the United States,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We are committed to holding accountable those who seek personal monetary gain by compromising and undermining the integrity of the immigration process.”
“Abid Ali Khan is alleged to have organized and led an international organization that, in exchange for monetary payment, facilitated the illegal smuggling of individuals through various countries to the United States,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “As this case demonstrates, the department continues to identify and prosecute those who seek to profit from conduct that undermines our system of legal immigration and imperils the lives of those being smuggled, often under dangerous conditions.”
“Homeland Security Investigations (HSI) Miami is committed to prosecuting individuals who pose a threat to national security and our critical infrastructure, including exploiting our global financial systems through their smuggling networks,” said Special Agent in Charge Anthony Salisbury of HSI Miami. “A recent HSI-led investigation revealed the Pakistani-based Abid Khan human smuggling network, operating in the Middle East and southwest Asia, is allegedly exploiting systemic vulnerabilities in order to move people into the United States and elsewhere.”
“This outcome is a result of the outstanding dedication and commitment by case agents and the effective partnership between HSI and the Justice Department’s Human Rights and Special Prosecutions Section, including significant contributions made by CBP’s Counter Networks Division, members of the HSI Human Smuggling Unit and other partners,” said Chief Ramon Romo of the HSI Human Smuggling Unit. “Their collaborative efforts make our country a safer place.”
Khan allegedly accepted payment in exchange for planning and coordinating the international travel for foreign nationals to travel from Pakistan through multiple countries, to include Brazil and the United States, allegedly offered or provided false documents for foreign nationals to use for travel through multiple countries, and allegedly instructed foreign nationals that his co-conspirators would facilitate various parts of the travel between Pakistan and the United States.
In addition to the criminal charges filed against Khan, the Treasury Department’s Office of Foreign Assets Control (OFAC) also announced today that it has designated Khan, the Khan Transnational Criminal Organization (TCO), and several other members of his smuggling network in connection with their involvement in a global network of human smugglers and the smuggling of undocumented noncitizens to the United States. The Treasury Department’s sanctions require the blocking and reporting of all assets held by Khan, his associates, and the Khan TCO in the United States, or in the possession and control of U.S. persons. The sanctions also prohibit all dealings by U.S. persons, or persons within (or transiting) the United States, that involves any property or interests of Khan, his associates, or the Khan TCO.
The Department of Justice recognizes OFAC’s efforts to help stop Khan and his network from allegedly continuing to smuggle persons to the United States.
The case is being investigated by HSI Miami, with assistance from the HSI Human Smuggling Unit; U.S. Customs and Border Protection; Department of Homeland Security Homeland Identities, Targeting, and Exploitation Center (HITEC); HSI Biometric Identification Transnational Migration Alert Program; HSI Attaché Panama; and HSI Attaché Brasilia.
The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence, and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Assistant U.S. Attorney Ron Walutes of the Eastern District of Virginia and Trial Attorney Jay A. Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-68.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Pakistani National Indicted and Sanctioned for Human Smuggling ConspiracyRead the Press Release
A federal grand jury in the Eastern District of Virginia returned an indictment today charging a citizen of Pakistan for allegedly leading a scheme to smuggle undocumented individuals into the United States from Pakistan and Afghanistan.
According to court documents, between January 2015 and December 2020, Abid Ali Khan, 40, allegedly organized, led, and worked, with others in his Pakistan-based smuggling network to facilitate the travel of undocumented individuals to the United States. Khan allegedly disregarded the fact that the individuals did not have prior authorization to enter the United States and that their entry into the United States would be illegal. Khan also allegedly encouraged, induced, and brought undocumented individuals to the United States for commercial advantage and financial gain.
“Abid Ali Khan is alleged to have organized and led an international organization that, in exchange for monetary payment, facilitated the illegal smuggling of individuals through various countries to the United States,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “As this case demonstrates, the department continues to identify and prosecute those who seek to profit from conduct that undermines our system of legal immigration and imperils the lives of those being smuggled, often under dangerous conditions.”
“Khan allegedly led a global human smuggling operation that used fraudulent documents and international travel routes to facilitate the entry of unauthorized individuals into the United States,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “We are committed to holding accountable those who seek personal monetary gain by compromising and undermining the integrity of the immigration process.”
“Homeland Security Investigations (HSI) Miami is committed to prosecuting individuals who pose a threat to national security and our critical infrastructure, including exploiting our global financial systems through their smuggling networks,” said Special Agent in Charge Anthony Salisbury of HSI Miami. “A recent HSI-led investigation revealed the Pakistani-based Abid Khan human smuggling network, operating in the Middle East and southwest Asia, is allegedly exploiting systemic vulnerabilities in order to move people into the United States and elsewhere.”
“This outcome is a result of the outstanding dedication and commitment by case agents and the effective partnership between HSI and the Justice Department’s Human Rights and Special Prosecutions Section, including significant contributions made by CBP’s Counter Networks Division, members of the HSI Human Smuggling Unit and other partners,” said Chief Ramon Romo of the HSI Human Smuggling Unit. “Their collaborative efforts make our country a safer place.”
Khan allegedly accepted payment in exchange for planning and coordinating the international travel for foreign nationals to travel from Pakistan through multiple countries, to include Brazil and the United States, allegedly offered or provided false documents for foreign nationals to use for travel through multiple countries, and allegedly instructed foreign nationals that his co-conspirators would facilitate various parts of the travel between Pakistan and the United States.
In addition to the criminal charges filed against Khan, the Treasury Department’s Office of Foreign Assets Control (OFAC) announced today that it has designated Khan, the Khan Transnational Criminal Organization (TCO), and several other members of his smuggling network in connection with their involvement in a global network of human smugglers and the smuggling of undocumented noncitizens to the United States. The Treasury Department’s sanctions require the blocking and reporting of all assets held by Khan, his associates, and the Khan TCO in the U.S., or in the possession and control of U.S. persons. The sanctions also prohibit all dealings by U.S. persons, or persons within (or transiting) the United States, that involve any property or interests of Khan, his associates or the Khan TCO.
The Department of Justice recognizes OFAC’s efforts to help stop Khan and his network from allegedly continuing to smuggle persons to the United States.
The case is being investigated by HSI Miami, with assistance from the HSI Human Smuggling Unit; U.S. Customs and Border Protection; Department of Homeland Security Homeland Identities, Targeting, and Exploitation Center (HITEC); HSI Biometric Identification Transnational Migration Alert Program; HSI Attaché Panama; and HSI Attaché Brasilia.
The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence, and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
The case is being prosecuted by Trial Attorney Jay A. Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section, and Assistant U.S. Attorney Ron Walutes of the U.S. Attorney’s Office for the Eastern District of Virginia.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Omaha Man Sentenced for Attempted Enticement of a MinorRead the Press Release
Acting United States Attorney Jan Sharp announced that Raul Valdez Rivas, 43, was sentenced today in federal court in Omaha, Nebraska, for attempted enticement of a minor. The Honorable Brian C. Buescher sentenced Valdez Rivas to 120 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Valdez Rivas will be required to serve 5 years of supervised release. He will also be required to register as a sex offender and is subject to deportation.
In April 2020, Valdez Rivas contacted the phone number listed in an online prostitution advertisement. Valdez Rivas communicated via text message and phone calls with a sheriff’s deputy posing as a fifteen-year-old boy. Valdez Rivas offered to pay the boy to engage in sexual acts with him and arranged a meeting. When Valdez Rivas arrived at the designated location, he was arrested.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Douglas County Sheriff’s Office and the Omaha FBI's Child Exploitation and Human Trafficking Task Force.
North Carolina Man Sentenced to 40 Years Imprisonment for Exploitation of Nine-Month-Old and Transportation of Child PornographyRead the Press Release
CHATTANOOGA, Tenn.– On April 7, 2021, Anthony Brett Banks, 30, formerly of Kannapolis, North Carolina, was sentenced by the Honorable Curtis L. Collier, in the United States District Court for the Eastern District of Tennessee at Chattanooga.
As part of the plea agreement filed with the court, Banks agreed to plead guilty to a superseding indictment charging him with one count of transportation of child pornography, in violation of 18 U.S.C. 18 U.S.C. §§ 2252A(a)(1) and (b)(l); and one count of causing another person to transport and ship child pornography in interstate commerce, in violation of 18 U.S.C. §§ 2252A(a)(1) and (b)(1) and Title U.S.C. §§ 2(b).
Banks was sentenced to 480 months in prison, followed by 10 years of supervised release. Banks will be required to register with state sex offender registries and comply with special sex offender conditions during his supervised release.
The defendant sexually abused his 9-month-old biological daughter, created digital videos of the abuse, and traded several of the images with someone he met in an online room dedicated to sexually abusing animals. The person with whom the defendant swapped images was located here in the Eastern District of Tennessee.
“The US Attorney’s Office, along with its law enforcement partners, is committed to apprehending child sex predators wherever they operate. Today’s sentence sends a strong message to sexual predators and demonstrates our commitment to protecting the community’s most vulnerable victims,” said Acting United States Attorney Francis M. Hamilton III.
“Each year, millions of children fall prey to sexual predators,” said Homeland Security Investigation (“HSI”) Nashville Special Agent in Charge Jerry C. Templet, Jr. “HSI agents make it a top priority to protect vulnerable children from victimization by working with their law enforcement partners to investigate predators involved with the production, distribution and possession of child sexual abuse material and ensure they are held accountable for their heinous actions. I commend our agents for their tireless efforts in this case, which resulted in a guilty plea and a lengthy federal prison sentence for the offender.”
The criminal indictment was the result of an investigation by the Hamilton County Sheriff’s Office (“HCSO”), HSI, and the North Carolina State Bureau of Investigation (“NC SBI”). This investigation was led by Task Force Officer Ed Merritt and Special Agent Dave Nalley of HSI and Special Agent Chris Munden of the NC SBI.
Assistant United States Attorney James T. Brooks represented the United States.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit www.justice.gov/psc.
For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab "resources.”
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Nineteen indicted in drug distribution conspiracyRead the Press Release
Seattle –Twenty-one people were arrested today on indictments and criminal complaints charging an extensive drug dealing conspiracy by defendants who often illegally possessed firearms, announced Acting U.S. Attorney Tessa M. Gorman. Law enforcement teams from FBI, DEA, Seattle Police Department, and other public safety organizations executed about 90 search warrants across the Puget Sound region from as far north as Everett and as far south as Spanaway. In addition to 16 of the 19 people named in the indictments, 5 additional defendants were arrested on criminal complaints. Those arrested will make their initial appearances in U.S. District Court in Seattle and Tacoma over the next few days.
“Too often the intersection of drug dealing and gun possession leads to violence in our communities,” said Acting U.S. Attorney Tessa M. Gorman. “These defendants enriched themselves by feeding the addictions of the vulnerable and harming community health and safety. Community safety remains a priority for the Department of Justice.”
Nineteen defendants are charged in 4 related indictments with both drug and gun crimes. Multiple defendants in today’s takedown have criminal histories that preclude them from legally possessing firearms. Prior to today’s takedown, 33 firearms were seized from drug traffickers identified in this case. Today, another 40 firearms were seized by law enforcement.
Those named in the indictments unsealed today include:
Eugene McGee, 54, of Federal Way, Washington
Larry W. Collins, 48, of Seattle, Washington
Johnathan F. Harrington, 43, of Seattle, Washington
Randolph P. Brown, 48 of Federal Way, Washington
Marco Calvert-Majors, 51, of Seattle, Washington
David A. Kelley, 52, of Seattle, Washington
Adam Anderson-Dotson, 41, of Seattle, Washington
Jerrell G. Ingram, 42, of Seattle, Washington
Kefentse Lumumba-Olabisi, 40, of Tacoma, Washington
Kenneth N. Lee, 58, of Tacoma, Washington
Edward Coleman, 65, of Tacoma, Washington
Jimmy J. Carter, 42, of Spanaway, Washington
Kevin L. Gipson, 45, of Seattle, Washington
Curtis G. Snipes, 50, of Tacoma, Washington
Richard D. Lewis, 47, of Seattle, Washington
Yusef H. Parrish, 51, of Seattle, Washington
Terry Cameron, 61, of Federal Way, Washington
Michael L. Hopkins, 51, of Tacoma, Washington
Jamar J. Howard, 48, of Renton, Washington
The defendants are all charged with drug distribution counts involving possession of cocaine and crack cocaine. Brown, Kelley, Parrish, and Snipes are charged with gun possession crimes, including being a felon in possession of a firearm and/or possession of a firearm in furtherance of a drug trafficking crime.
The 5 defendants arrested on criminal complaints today include:
Craig Jordan, 51, of Seattle
Carlos Daniels, 51, of Bellevue
Devon Evans, 46, of Seattle
Cesar Clemente, 41, of Renton, Washington
Terry Ezell, 54, of Seattle
Over the course of the investigation law enforcement seized 33 firearms, over 10 kilos of cocaine, more than 2 pounds of methamphetamine, more than $160,000 in cash, fentanyl pills and a fentanyl pill manufacturing lab. Today alone, law enforcement seized an additional 40 firearms, nearly $450,000 in cash and nearly 4 pounds of cocaine.
“The arrests today exemplify the collaboration of agencies at all levels with one common goal, the safety of the citizens we've all sworn to protect,” said Donald M. Voiret, FBI Special Agent in Charge of the Seattle Field Office. “The positive impact made by getting these subjects off the streets should be immediately felt by communities where they held sway for far too long.”
“The Seattle Police Department values its partnerships with federal and local law enforcement agencies because, by working together, we increase the likelihood of arresting violent offenders and taking weapons out of their hands,” said Seattle Police Chief Adrian Diaz. “Not only are these suspects and their guns off the streets, but so are dangerous narcotics, including fentanyl tablets and the tools to manufacture them. Our communities have been devastated by a recent rise in fentanyl deaths. The SPD is certain this joint effort saved lives, and we’re gratified the months of hard work by our officers and partners paid off.”
“Drug trafficking and violence are often intertwined, leaving communities and families devastated,” stated DEA Special Agent in Charge Frank Tarentino. “This strategic collaborative approach between federal and local law enforcement demonstrates our commitment to not only serve, but also protect the public from these violent criminal networks who terrorize their neighborhoods.”
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF
The investigation was led by the FBI Safe Streets Task Force with key participation by the Drug Enforcement Administration (DEA), Seattle Police Gang and Narcotics Units, Homeland Security Investigation (HSI), and Internal Revenue Service Criminal Investigation (IRS-CI).
Today’s arrests and searches involved teams from FBI, DEA, Seattle Police Department, HSI, U.S. Marshal Service, Lakewood Police Department SWAT, Tacoma Police Department SWAT, Pierce County Sheriff's Office, North Sound Metro SWAT, Washington State Patrol SWAT, Valley SWAT, Kent Police Department, Renton Police Department, U.S. Postal Inspection Service, WA Liquor & Cannabis Board, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and Narcotics/Currency/Firearms K9 support from Snohomish County Sheriff's Office, U.S. Customs and Border Protection (CBP), Centralia Police Department, Washington State Patrol, Snoqualmie Police Department, Auburn Police Department, Stillaguamish Police Department, Bothell Police Department, Anacortes Police Department, Puyallup Police Department, King County Sheriff's Office, and Tacoma Police Department.
The case is being prosecuted by Assistant United States Attorneys Erin H. Becker and Lyndsie Schmalz.
firearms seizedNew York Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Jaquan Jeremiah Wright, 22, of New York, pleaded guilty today to possession of a firearm by a prohibited person. Wright was arrested on a federal criminal complaint in February 2021 in connection with a long-term investigation into a methamphetamine trafficking organization operating in Charleston. He was later charged by an Information on March 16, 2021.
According to the plea agreement and statements made in court, officers with the Charleston Police Department conducted a traffic stop of Wright’s vehicle on July 20, 2020. During the traffic stop, the officers found a Polymer80 PFC9, 9mm pistol in Wright’s car between the console and passenger seat. At that time, Wright was subject to a Domestic Violence Protective Order that was entered in the Jamestown City Court, County of Chautauqua, New York. That Domestic Violence Protective Order remains in effect until December 11, 2024.
Wright faces up to 10 years in prison, a $250,000 fine and a term of supervised release when he is sentenced on July 1, 2021.
Acting United States Attorney Lisa G. Johnston thanked the law enforcement agencies for their excellent work in this case and their commitment to ensuring that individuals subject to a Domestic Violence Protective Order do not possess a firearm.
The Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Charleston Police Department and the Metropolitan Drug Enforcement Network Team (MDENT) conducted the investigation, dubbed the “Woo Boyz,” with assistance from the U.S. Marshals Service and the West Virginia State Police. The Appalachia High Intensity Drug Trafficking Area (AHIDTA) provided critical support to the investigative agencies.
Senior United States District Judge John T. Copenhaver, Jr., presided over the hearing. Assistant United States Attorney Monica D. Coleman is handling the prosecution.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
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-00039.
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New Orleans Man Sentenced to 262 Months Imprisonment After Previously Pleading Guilty to Production of Child Sexual Abuse Material as Part of His Role in Trafficking 14-Year-Old Female for Commercial Sex ActsRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that JON C. BALLAY, age 61, a resident most recently of New Orleans, Louisiana, was sentenced to 262 months imprisonment by United States District Judge Jay C. Zainey after previously pleading guilty to Count Two of a three-count Indictment charging him with production of images depicting the sexual exploitation of children, in violation of 18 U.S.C. 2251(a). Judge Zainey further ordered BALLAY to pay restitution to the victim in the amount of $67,300, serve a period of life of supervised release after he completes his prison term and pay a special assessment fee of $100. BALLAY will also be required to register as a sex offender.
According to court documents, on May 23, 2017, law enforcement authorities executed a search warrant at the Olde Town Inn, located at 2311 North Rampart Street, in New Orleans, Louisiana. During the execution of the search warrant, authorities found and recovered a fourteen-year-old female (Minor Victim) with BALLAY and seized several electronic devices belonging to BALLAY, including a Samsung Galaxy Express Prime cellular telephone affiliated with a local phone number. BALLAY used cellular phones to take approximately twenty (20) sexually explicit images of the victim between May 15, 2017 and May 22, 2017, at multiple hotels in the greater New Orleans area. Subsequent investigation revealed that BALLAY used sexually explicit photographs, among others, to advertise and solicit commercial sex dates with the MV. Pascal Calogero, III, was previously prosecuted for his role in conspiring with BALLAY to traffic the MV for the purpose of MV engaging in commercial sex activities. See Case No. 18-203 “R.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter, and specifically the FBI New Orleans Violent Crimes Against Children Task Force, which includes members of the Jefferson Parish Sheriff’s Office, the Kenner Police Department, and the Louisiana State Police. The case was prosecuted by Assistant United States Attorney Jordan Ginsberg.
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Minnesota Man Indicted in Connection with Sending Threatening Messages to Boston-Area College StudentRead the Press Release
BOSTON – A Minnesota man was indicted yesterday by a federal grand jury in Boston in connection with sending threatening emails to a Boston-area college student.
Eric Bolduan, 46, of Rochester, Minn., was indicted on one count of transmitting in interstate commerce a threat to injure another person. Bolduan is currently incarcerated at FCI Englewood and will make an initial appearance in Boston at a later date.
As alleged in the indictment, Bolduan downloaded images of a female student attending Boston College from her social media pages and from other publicly available sites. Bolduan then located a pornographic image of a different female with a similar appearance and posted the images of the victim alongside the pornographic image to various pornographic websites in order to make it appear that the victim was involved in pornography. Thereafter, Bolduan allegedly sent threatening and harassing emails to the victim. For example, on May 5, 2016, Bolduan sent an email to the victim that included the following language:
I noticed the attached photo of you online and wanted to follow up with you. I’m going to find you this summer. Once I’ve got you I will have my way with your body for several days, until I finally tire of you. You will experience things that will give you nightmares for the rest of your life. I want to look into your eyes as you experience pain at levels you never imagined were possible. By the time I’m done with you your body will be shattered and broken. I promise that you’ll never be the same again.
To avoid detection, Bolduan allegedly sent the threatening emails to the victim using an email account that was not in his true name.
Members of the public who have victim assistance questions or information regarding this case should email [email protected].
The charging statute provides for a sentence of up to five 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 on the United States Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. 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 Suzanne Sullivan Jacobus of Mendell’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Michigan man admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Khorion Williams, of Highland Park, Michigan, has admitted to a firearms charge, Acting United States Attorney Randolph J. Bernard announced.
Williams, 22, pled guilty to one count of “Conspiracy to Violate Federal Firearms Laws.” Williams admitted to working with others to illegally purchase firearms in May 2018 in Monongalia County.
Williams faces up to five years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Michigan Resident Indicted on Fentanyl Possession ChargeRead the Press Release
PITTSBURGH - A former resident of Detroit, Michigan, 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 Nicholas Lamont Carter, age 31, as the sole defendant.
According to the Indictment, on March 8, 2021, Carter knowingly possessed with the intent to distribute 40 grams or more of fentanyl, a Schedule II controlled substance.
The law provides for a total sentence of at least five years in prison to a maximum of 40 years, a fine of $5,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Allegheny County Police 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.
Miami Tax Preparer Arrested on Tax Fraud ChargesRead the Press Release
Miami, Florida – A South Florida tax preparer, who was indicted by a Grand Jury in the Southern District of Florida on March 25, 2021, was arrested today. Samuel Mompoint, 57, a resident of Miami-Dade County, Florida, is charged with seventeen counts of willfully aiding and assisting in the preparation and presentation of materially false tax returns for the calendar years 2014 and 2015.
According to allegations in the indictment, Mompoint operated Prime Tax Services, Inc., as a tax return preparation business located in Miami-Dade County. The indictment alleges that for the 2014 and 2015 tax years, Mompoint knowingly prepared fraudulent tax returns that represented that eleven separate taxpayers were entitled to receive false tax credits and deductions, including education credits, child and dependent care expenses, gifts to charity, and unreimbursed employee expenses.
Mompoint is scheduled for his initial court appearance this afternoon, April 7, at 2:00 p.m. in federal magistrate court in Miami. If convicted, Mompoint faces a maximum penalty of three years’ imprisonment as to each count.
Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida, and Tyler R. Hatcher, Acting Special Agent in Charge, Internal Revenue Service-Criminal Investigation, Miami Field Office, made the announcement.
This case is being investigated by IRS-CI in Miami. The case is being prosecuted by Assistant U.S. Attorney Eric E. Morales of the Southern District of Florida.
An indictment is a charging instrument containing allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 21-cr-20185.
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Meridian Man Sentenced to Nine Years in Prison Under Project EJECT for Armed Robberies of Convenience StoresRead the Press Release
Jackson, Miss. – Roquandre Malik Jimison, 23, of Meridian, was sentenced yesterday by U.S. District Court Judge Henry T. Wingate to serve a total of 108 months in federal prison, followed by 3 years of supervised release, for two robberies in Meridian, announced Acting U.S. Attorney Darren J. LaMarca and Kurt H. Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, Explosives. Jimison was also ordered to pay a $1,500.00 fine and restitution to victims.
On February 13, 2019, Jimison entered a Cefco Convenience store on Highway 19 North in Meridian and demanded money from clerks at both registers. Jimison kept his right hand in his pocket during the entire interaction causing the clerks to believe he had a gun. Although Jimison was wearing a hoodie, a store clerk was able to identify him to law enforcement.
On February 25, 2019, at approximately 7:13 p.m. Jimison entered a Cefco Convenience Store on Highway 39 North in Meridian. Jimison had a white piece of clothing wrapped around his face and head, and he brandished an assault rifle. There were two customers in the store along with the clerk on duty. Jimison took money from the customers as well as from the store’s register. The customers and the clerk were in fear for their lives and gave Jimison everything he demanded. Witnesses were later able to identify Jimison to law enforcement.
Jimison was indicted on June 16, 2020 and he pled guilty before Judge Wingate on January 6, 2021.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Meridian Police Department. It was prosecuted by Assistant United States Attorney Charles W. Kirkham.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
McKeesport Man Charged with Possessing Fentanyl, Fentanyl AnalogueRead the Press Release
PITTSBURGH - A resident of McKeesport, 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 Christopher Jordan, age 40, of McKeesport, Pennsylvania, as the sole defendant.
According to the Indictment, on March 11, 2021, Jordan possessed with the intent to distribute 10 grams or more of a mixture containing fentanyl and a fentanyl analogue, as well as a quantity of fentanyl, all Schedule II controlled substances.
The law provides for a maximum total sentence of not less than five years to a maximum of 40 years in prison, a fine of $5,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Allegheny County Police 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.
Maryland U.S. Attorney’s Office Seizes Three Domain Names Purporting to be Websites of Biotechnology Companies with Treatments for Covid-19Read the Press Release
Baltimore, Maryland – The U.S. Attorney’s Office for the District of Maryland has seized “healthbridgescience.com,” “global-pandemic-vaccines.com,” and “genobioscience.com” all of which purported to be the websites of actual biotechnology companies developing treatments for the COVID-19 virus but instead were allegedly used to collect the personal information of individuals visiting the sites, in order to use the information for nefarious purposes, including fraud, phishing attacks, and/or deployment of malware. Individuals visiting those sites now will see a message that the site has been seized by the federal government and be redirected to another site for additional information.
The seizure of the domain names was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge James R. Mancuso of Homeland Security Investigations - Baltimore.
“We have now seized a total of eight fraudulent websites that seek to illegally profit from the COVID-19 pandemic,” said Acting U.S. Attorney Jonathan F. Lenzner. “We urge all Maryland residents to be skeptical - don’t provide personal information or click on links in unsolicited e-mails and remember that the COVID-19 vaccine is not for sale. The Federal government is providing the vaccine free of charge to people living in the United States. We will continue to aggressively prosecute fraudsters who seek to prey on unsuspecting residents and their families.”
“The danger with these illegitimate sites is that they can appear legitimate to the average viewer—all the more reason to exercise caution when searching for COVID-19 pandemic information,” said Special Agent in Charge James Mancuso for HSI Baltimore. “As part of our cyber mission, HSI is committed to denying online scammers the ability to deceive and profit from the American people by exploiting the demand for vaccines and treatments.”
According to the affidavits filed in support of these seizures, these investigations began in March 2021. Homeland Security Investigations and the National Intellectual Property Rights Center received notification of two fraudulent websites, “genobioscience.com” and “healthbridgescience.com.” The third site, “global-pandemic-vaccines.com,” was discovered by Homeland Security Investigations’ Cyber Crimes Center (C3) during ongoing investigations for malicious websites. The cases were referred to HSI Baltimore for investigation.
Specifically, HSI was notified of two fraudulent websites “healthbridgescience.com” and “genobioscience.com,” by a victim biotechnology company. The company, which was granted an FDA emergency use authorization for their COVID-19 antibody drug cocktail treatment, confirmed neither of the suspect domains were approved company websites. The fraudulent sites displayed a nearly identical theme and design as the legitimate biotechnology company except for the subsection tab information. According to the affidavit, “healthbridgescience.com” was registered on February 21, 2021 and “genobioscience.com” was registered on March 24, 2021, but no registrant or contact information is listed for either website. As stated in the affidavit, criminals who operate websites and use targeted domain names often conceal their identity when registering their domain names by redacting personal identifiers to avoid being tracked by victims or law enforcement. An HSI Cyber Operations Officer (COO) also noted the “genobioscience.com” website did not use secure communication technology, making any sensitive information shared on this website potentially compromised.
The third domain name, “global-pandemic-vaccines.com,” offered COVID-19 vaccines for sale that it claimed were manufactured by pharmaceutical companies that had been granted FDA emergency use authorization for their COVID-19 vaccines. A COO indicated that the domain was created on February 26, 2021 and its registrar organization was listed as “WhoisProtection.cc,” located in Kuala Lumpur, Malaysia, which is a privacy service used to shield a domain registrant’s actual information from being see publicly. Additionally, under the bogus website’s “Contact Us” page, the telephone number appears to be associated with a messaging application and the street address listed is the address of a restaurant and a postal shipping center located in Torrance, California. Under the spoof website’s “shop” tab, there were two counterfeit vaccinations offered for sale to the public. The fraudulent website claimed that their vaccines did not require sub-zero storage. On March 15, 2021, HSI Special Agents, acting in an undercover capacity, called the phone number listed on the fraudulent website. An unknown individual agreed to sell fifty vials of the counterfeit vaccines for $20 each with a $500 deposit, and the remaining $500 due upon receipt of the vaccine doses. The provided invoice contained payment information for a specific bank account.
By seizing these sites, the government has prevented third parties from acquiring the names and using them to commit additional crimes, as well as prevented third parties from continuing to access the sites in their present form.
Federal law enforcement agencies are united in our efforts to fight against COVID-19 fraud. HSI has identified tips to recognize and report COVID-19 fraud. If you believe you are a victim of a fraud or attempted fraud involving COVID-19, you may also call the National Center for Disaster Fraud Hotline at 1-866-720-5721 or for more information e-mail justice.gov/coronavirus.
Acting United States Attorney Jonathan F. Lenzner commended HSI for its work in these investigations. Mr. Lenzner recognized the U.S. Food and Drug Administration, the U.S. Postal Inspection Service and the Baltimore County Police Department for their assistance and thanked Assistant U.S. Attorneys Aaron S.J. Zelinsky and Sean R. Delaney
Maryland Return Preparer Pleads Guilty to Tax FraudRead the Press Release
A Maryland return preparer pleaded guilty today to conspiring to defraud the United States and to assisting in the preparation of a false tax return.
According to court documents and statements made in court, Lenore Worthy provided tax return preparation services in Temple Hills under several business names, including United Tax Services LLC. For the tax years 2012 through 2018, Worthy and her co-conspirators fraudulently inflated client refunds by adding false deductions and business losses. The IRS later expelled Worthy and United Tax Services from the IRS e-file program after Worthy prepared a false return for an undercover IRS agent. Worthy then began using another co-conspirator’s e-filing credentials in order to continue preparing clients’ returns. In total, Worthy caused a tax loss to the IRS of $189,748.
Worthy is scheduled to be sentenced on Aug. 20, 2021, and faces a maximum penalty of eight years in prison. Worthy also faces a period of supervised release, restitution, 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 and Acting U.S. Attorney Jonathan F. Lenzner for the District of Maryland made the announcement.
The IRS-Criminal Investigation is investigating the case.
Trial Attorney Kathryn Sparks of the Justice Department’s Tax Division and Assistant U.S. Attorney Leah Grossi of the U.S. Attorney’s Office for the District of Maryland are prosecuting the case.
Marshall County man indicted on bankruptcy fraud chargesRead the Press Release
WHEELING, WEST VIRGINIA – Francis Tucker, of Moundsville, West Virginia, was indicted today on bankruptcy fraud charges, Acting United States Attorney Randolph J. Bernard announced.
Tucker, 67, was indicted today on one count of “Fraudulent Transfers in Contemplation of Bankruptcy,” one count of “False Bankruptcy Declarations,” and one count of “Structuring Financial Transactions to Evade Reporting Requirements.”
Tucker was the secretary for Danzac, Inc., a video lottery machine service and real estate holder. In January 2018, the Circuit Court of Ohio County granted a civil judgment against Tucker in the amount of approximately $469,000. Tucker is accused of transferring personal and business properties to others in the months leading up to the defendant filing for bankruptcy in July 2018 in Ohio County. He is accused of falsifying the bankruptcy documents by claiming that he had not been involved in reportable property transfers and had no connections to a business.
Tucker is also accused of conducting withdrawals of proceeds from the sale of a property in Florida in a manner and, with the intent to avoid bank reporting requirements regarding certain cash transactions. This crime was alleged to have occurred in 2016.
Tucker faces up five years of incarceration and a fine of up to $250,000 for each charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Danae DeMasi-Lemon and Jarod J. Douglas are prosecuting the case on behalf of the government. The FBI investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Malden Man and Woman Arrested for Drug and Firearms Conspiracy Involving Five Shootings and Multiple Machine GunsRead the Press Release
BOSTON – A Malden man and woman have been arrested and charged in connection with a drug and firearms conspiracy that included multiple shootings in Chelsea, Somerville and Cambridge.
Jaiir Coleman, a/k/a “JC,” a/k/a “Chino,” 22, was charged by criminal complaint with one count of conspiracy to distribute and possess with intent to distribute a controlled substance; one count of conspiring to possess, use and carry firearms in furtherance of a drug trafficking conspiracy; one count of possessing a machine gun; and one count of possessing a machine gun in furtherance of a drug trafficking conspiracy. Coleman is currently in state custody and will make an initial appearance in federal court in Boston at a later date.
Christina Bernbaum, a/k/a “Tina,” 23, was charged by criminal complaint with one count of conspiracy to distribute and possess with intent to distribute a controlled substance and one count of conspiring to possess, use and carry firearms in furtherance of a drug trafficking conspiracy. Bernbaum was arrested today and will make an initial appearance in federal court this afternoon.
As alleged in the charging documents, Coleman and Bernbaum participated in a long-running conspiracy to manufacture, distribute and possess controlled substances, including in large quantities locally in the Bangor, Maine area. It is alleged that Bernbaum’s participation included conspiring to distribute controlled substances on Coleman’s behalf during his incarceration. The charging documents describe numerous recorded conversations in which the sale and distribution of controlled substances was discussed, including explicit instructions by Coleman about the manner in which to adulterate fentanyl and the prices to charge. The charging documents further describe numerous videos and images that allegedly depict Coleman and Bernbaum brandishing and holding firearms, including a suspected machine gun.
During the course of the conspiracy, Coleman allegedly committed five shootings. Four shootings took place on Nov. 11, 2019, in Chelsea and Somerville, during which homes and vehicles were allegedly riddled with gunfire. A fifth shooting took place in Cambridge in July 2020, during which it is alleged that Coleman used a machine gun to shoot into a crowd.
On Jan. 6, 2021, Coleman was arrested for operating with a suspended license, during which time a machine gun was recovered from the vehicle. Coleman is currently in state custody. It is alleged that a music video publicly posted online earlier that week depicts Coleman brandishing what appears to be the same machine gun recovered from the vehicle on Jan. 6, 2021.
The charge of possession of a controlled substance with intent to distribute provides for a sentence of up to 20 years in prison, at least three years and up to life of supervised release and a fine of up to $1 million. The charge of conspiring to possess, use and carry firearms in furtherance of a drug trafficking conspiracy provides for a sentence of up to life in prison because a machine gun was involved in the offense, five years of supervised release and a fine of $250,000. The charge of possessing a machine gun provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of possessing a machine gun during and in relation to a drug trafficking crime provides for a mandatory minimum sentence of 30 years and up to life to be served consecutively to the penalty for the underlying drug trafficking crime, five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Roy E. McKinney, Director of the Maine Drug Enforcement Agency; Somerville Acting Police Chief Charles Femino; Chelsea Police Chief Brian Kyes; Lynn Police Chief Michael A. Mageary; Cambridge Police Commissioner Branville G. Bard, Jr.; Salem Acting Police Chief Dennis King; Everett Police Chief Steven A. Mazzie; Malden Police Chief Kevin Molis; and Revere Police Chief David J. Callahan made the announcement today made the announcement today. Assistance was provided by the U.S. Attorney’s Office for the District of Maine, Middlesex County District Attorney’s Office, Suffolk County District Attorney’s Office, Suffolk County Sheriff’s Department, Essex County Sheriff’s Department and the Boston Police Department. Assistant U.S. Attorneys Philip A. Mallard and Sarah Hoefle of Mendell’s Organized Crime and Gang Unit are prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Maine Man Pleads Guilty to Making Telephonic Bomb Threats to Somersworth City HallRead the Press Release
CONCORD - John Leon Rupert, 29, of Scarborough, Maine pleaded guilty in federal court to making interstate threats, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on February 3, 2021, two calls were received by employees at Somersworth City Hall in which a computer-generated voice stated there was a bomb inside the building. The building was evacuated and it was determined there were no explosive devices. The calls were tracked to an IP address at Rupert’s residence in Scarborough, Maine.
On February 15, 2021 agents executed a federal search warrant at the residence. Rupert admitted he was the person who made the calls because he was angry about an injury received at a massage parlor in Somersworth.
Rupert is scheduled to be sentenced on July 14, 2021.
“Bomb threat hoaxes are serious crimes that can disrupt communities and divert law enforcement resources from other priorities,” said Acting U.S. Attorney Farley. “As a result of this defendant’s conduct, Somersworth City Hall was evacuated and many innocent people were inconvenienced. I am grateful to the FBI and the Somersworth Police Department for their rapid efforts to identify the individual responsible for making these threats. As this case demonstrates, we will work closely with our law enforcement partners to identify and prosecute those responsible for making bomb threats.”
“Upset over an injury he blamed on a local massage parlor, John Rupert misplaced his anger and used poor judgment in making two hoax calls to Somersworth City Hall stating that there was a bomb inside the building. With today’s guilty plea, he has finally realized the error of his ways,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Hoax threats instill fear, waste limited law enforcement resources, and put first responders in unnecessary danger. They are also federal crimes with serious consequences as demonstrated by this case.”
This matter was investigated by the Federal Bureau of Investigation with assistance from the Somersworth Police Department. The case is being prosecuted by Assistant U.S. Attorney Georgiana MacDonald.
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Lynn Man Sentenced for Convenience Store RobberiesRead the Press Release
BOSTON – A Lynn man was sentenced in federal court in Boston yesterday for robbing multiple convenience stores in Lynn.
Paul Pacheco, 47, was sentenced by U.S. District Court Judge Allison D. Burroughs to 27 months in prison, two years supervised release and ordered to pay $380 in restitution. Pacheco pleaded guilty to one count of robbery in November 2020.
Between September 2019 and January 2020, Pacheco committed five robberies at two convenience stores in Lynn. During each robbery, Pacheco displayed what appeared to be a firearm and demanded money. When Pacheco was arrested committing the fifth robbery on Jan. 16, 2020, law enforcement recovered the firearm Pacheco displayed, later determined to be an air pistol, and marked money stolen from the convenient store.
Acting United States Attorney Nathaniel Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Lynn Police Chief Michael Mageary made the announcement. Assistant United States Attorney Evan Gotlob of Mendell’s Major Crimes Unit prosecuted the case.
Luzerne County Man Indicted for Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that William Heck, age 40, of Hazleton, Pennsylvania, was indicted on April 6, 2021, by a federal grand jury for drug trafficking and firearms offenses.
According to Acting United States Attorney Bruce D. Brandler, the indictment alleges that on October 2, 2020, Heck possessed a firearm in furtherance of drug trafficking, was a convicted felon in possession of firearms and ammunition, and possessed more than 40 grams of methamphetamine and an additional amount of fentanyl for distribution in Luzerne County.
The case was investigated by the FBI Safe Streets Task Force and the Pennsylvania State Police. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under federal law, Heck faces a mandatory minimum sentence of ten years in prison for the drug trafficking charge, up to a maximum sentence of life in prison, a term of supervised release following imprisonment, and a fine. For the firearms charges, Heck faces an additional mandatory minimum sentence of five years in prison, which must run consecutive to any other sentence, a maximum sentence of life, a term of supervised release and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Lock Haven Man Sentenced to 30 Years’ Imprisonment for Producing Child PornographyRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Grenninger, age 38, of Lock Haven, Pennsylvania, was sentenced on April 6, 2021, to 360 months' imprisonment to be followed by a 10-year term of supervised release by U.S. District Court Judge Matthew W. Brann, for producing child pornography.
According to Acting U.S. Attorney Bruce D. Brandler, Genninger sexually abused an eight-year-old child and photographed the abuse. Genninger also produced videos of minors ranging from age eight through their early teens engaged in secually explicit conduct. Additionally, Genninger attempted to arrange meetings with 11-year-old girls in Virginia and New York City for sex, and sent a pornographc image of himself over the internet.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, the Clinton County District Attorney’s Office, and the Christiansburg (Virginia) Police Department. Assistant United States Attorney Geoffrey W. MacArthur prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab.
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