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12 May 2021
Suburban Chicago Man Pleads Guilty to Federal Fraud Charge for Misappropriating Hundreds of Thousands from Non-Profit OrganizationRead the Press Release
CHICAGO — A suburban Chicago man admitted in federal court today that he fraudulently misappropriated hundreds of thousands of dollars from a non-profit organization for physically and psychologically challenged children.
STUART NITZKIN, 45, of Deerfield, Ill., pleaded guilty to one count of wire fraud. U.S. District Judge Sara L. Ellis set sentencing for Aug. 3, 2021.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney Sheri H. Mecklenburg.
According to a plea agreement, Nitzkin from 2011 to 2016 worked as the Executive Director of an Illinois-based non-profit organization whose mission was the rehabilitation of physically and psychologically challenged children. During that time, Nitzkin knowingly submitted to the organization invoices and receipts for payment and reimbursement of expenses that Nitzkin claimed were incurred on behalf of the organization. In reality, Nitzkin knew the expenses were not actually incurred by the organization but rather by Nitzkin for his and others’ personal benefit, the plea agreement states.
The expenses Nitzkin submitted for reimbursement included luxury vacations for Nitzkin and his family to Las Vegas, Florida, Ireland, and Puerto Rico, personal golfing expenses, tickets to Chicago Bulls basketball games and other professional sporting events, personal medical expenses, real estate taxes for his family residence, health club dues, household goods, meals, and car maintenance, the plea agreement states. Nitzkin also pocketed cash from fundraising events held on behalf of the organization and used the money for personal expenses, the plea agreement states.
Nitkin admitted in the plea agreement that as a result of the scheme he fraudulently misappropriated at least $550,000 from the organization. The government charged, and intends to prove at sentencing, that Nitzkin misappropriated approximately $831,400.
Wire fraud is punishable by up to 20 years in prison. The Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
South Texan handed significant sentence for trafficking cocaineRead the Press Release
McALLEN, Texas – A 46-year-old Alton man has been ordered to federal prison following his conviction of conspiracy to possess with intent to distribute more than five kilograms of cocaine, announced acting U.S. Attorney Jennifer B. Lowery.
A federal jury deliberated for approximately six hours before convicting Rosbel Garcia Jr. Jan. 14 following a one-day trial which included seven witnesses.
Following his conviction, Garcia executed a signed statement admitting to his involvement in the offense and his knowledge of the controlled substances involved.
Today, U.S. District Judge Micaela Alvarez took the statement into consideration and handed Garcia a 78-month sentence to be immediately followed by three years of supervised release. In imposing the sentence, the court also noted Garcia’s greedy motivation in committing the crime and his recruitment of another individual.
According to the testimony at trial, authorities learned of a possible 20-kilogram cocaine transaction that would be occurring in the Houston area in January 2018.
The jury heard from Rene Ramos III, the person Garcia had recruited, who explained that he had been previously arrested in Houston while in possession of approximately 60 pounds of marijuana belonging to Garcia in 2012. He claimed that at the time of that arrest, he was also in possession of approximately $90,000 of Garcia’s drug trafficking proceeds.
In early January 2018, Ramos claimed Garcia contacted him and told him he had to begin working for him in order to reduce that drug debt. As part of that involvement, Ramos testified he directed his wife, Christy Leigh Wells, to deliver cocaine to individuals in Houston.
Testimony revealed Garcia traveled to Houston from the Rio Grande Valley in January 2018 along with Luby Janet Luna. Wells also testified and admitted she delivered 10 kilograms of cocaine to Luna and others Jan. 30, 2018.
The defense attempted to convince the jury that all involved were just cons who fabricated Garcia’s involvement in the scheme. The jury disagreed and found him guilty as charged.
Wells, 42, Cypress, admitted to her role in the conspiracy.
Luna, 34, Mission, is a fugitive and a warrant remains outstanding for her arrest. Anyone with information about her whereabouts is asked to contact the U.S. Marshals Service at 956-618-8025 or the Drug Enforcement Administration at 956-992-8400.
Garcia remains in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorneys Roberto Lopez Jr. and M. Alexis Garcia prosecuted the case.
Sinaloa-based Narcotics Distributor Designated under the Kingpin Act for Trafficking Fentanyl, Heroin, and Methamphetamine in OregonRead the Press Release
PORTLAND, Ore.—Acting U.S. Attorney Scott Erik Asphaug announced the unsealing of an indictment today against a Sinaloa-based drug trafficker for his role in trafficking fentanyl, heroin, and methamphetamine from Mexico to the Pacific Northwest.
Efrain Mendivil Figueroa, 41, of Sinaloa, Mexico, has been charged with conspiracy to distribute heroin, methamphetamine, and fentanyl and conspiracy to commit money laundering.
The announcement of charges against Figueroa follows the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) designation of Figueroa as a Specially Designated Narcotics Trafficker pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act). OFAC identified Figueroa as a fentanyl, heroin, methamphetamine, and cocaine distributor and transportation coordinator for the Jesus Gonzalez Penuelas Drug Trafficking Organization (aka “Gonzalez Penuelas DTO”). OFAC also designated the construction company City Plaza, Sociedad Anonima de Capital Variable, based in Guasave, Sinaloa for being owned or controlled by Figueroa. According to OFAC, the Gonzales Penuelas DTO is one of the largest raw opium gum and heroin sources of supply in northern Mexico, and increasingly a major distributor of fentanyl.
“Efrain Figueroa’s drug trafficking organization has deep ties in the Pacific Northwest. Our charges allege he is a long-term, active trafficker of heroin, methamphetamine, and fentanyl from Mexico to Oregon. Together, these drugs, particularly fentanyl, have caused immeasurable harm to the public safety and health of communities throughout our state,” said Acting U.S. Attorney Asphaug. “We applaud OFAC for designating Jesus Gonzalez Penuelas as a Significant Foreign Narcotics Kingpin and Figueroa as a Specially Designated Narcotics Trafficker under the Kingpin Act for the significant danger they pose to the U.S. and its citizens.”
“This bold action highlights the DEA’s ability and intention of holding accountable the dangerous Mexican Drug Trafficking Organizations who reside within our borders, but also those operating in Mexico who believe they are untouchable,” said DEA Special Agent in Charge Frank Tarentino. “DEA makes it a priority to identify and target drug traffickers who flood our city streets with poison and deny these drug trafficking organizations the profits of their illegal trade responsible for fueling the opioid epidemic. We will continue to work closely with our international partners to bring Efrain Figueroa to justice and dismantle drug cartels like Gonzales Penuelas DTO.”
“Fentanyl, particularly in the form of counterfeit prescription pills, is the region’s emerging drug threat and poses a significant danger to our communities. The increase in fentanyl supply and use over the past 2 ½ years in Oregon is reflected in the number of law enforcement trafficking investigations, drug seizures, overdose hospitalizations and, tragically, overdose deaths,” said Oregon-Idaho HIDTA Executive Director, Chris Gibson. “The Oregon-Idaho HIDTA will continue to support the cooperative efforts of our treatment, prevention and law enforcement partners with the ultimate goal of reducing the demand for and supply of the dangerous drugs that sadly wreak havoc in the lives of an increasing number of Oregonians.”
According to the indictment, beginning in at least August 2018, Figueroa and several associates are alleged to have conspired with one another to possess and distribute heroin, methamphetamine, and fentanyl in Oregon and elsewhere. As part of their drug trafficking scheme, the group maintained various locations for the purpose of storing and packaging narcotics and used vehicles to transport and distribute product. The group would also smuggle bulk quantities of U.S. currency across state and international borders to facilitate drug transactions and engaged in money laundering to conceal their trafficking proceeds.
Acting U.S. Attorney Asphaug and Special Agent in Charge Tarantino made the announcement.
This case was investigated by the Drug Enforcement Administration (DEA) and the High Intensity Drug Trafficking Area (HIDTA) Interdiction Taskforce with assistance from the FBI and Homeland Security Investigations. It is being prosecuted by Steven T. Mygrant, Assistant U.S. Attorney for the District of Oregon.
The Oregon HIDTA program was established by the White House Office of National Drug Control Policy in June of 1999. In 2015 the program expanded into Idaho and was renamed the Oregon-Idaho HIDTA. The Oregon-Idaho HIDTA consists of 16 counties, including Oregon’s Clackamas, Deschutes, Douglas, Jackson, Josephine, Lane, Linn, Malheur, Marion, Multnomah, Umatilla and Washington counties, and Idaho’s Ada, Bannock, Canyon, and Kootenai counties.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
Opioid abuse affects communities across the nation. The Centers for Disease Control and Prevention reports that in 2019, its most recent data, there were 70,630 drug overdose deaths in the U.S. Opioids and synthetic opioids were alone responsible for 49,860 overdose deaths or nearly 71% of all overdoses. Drug overdose is now the leading cause of injury or death in the United States.
Fentanyl is a synthetic opioid 80 to 100 times more powerful than morphine and 30 to 50 times more powerful than heroin. A 3-milligram dose of fentanyl—a few grains of the substance—is enough to kill an average adult male.
The availability of illicit fentanyl in Oregon has presented public safety and health officials with a host of new challenges, including a dramatic increase in overdose deaths. Fentanyl-related overdose deaths in Oregon have doubled between 2016 and 2019. In 2020, most fentanyl seized in Oregon was in the form of counterfeit prescription pills, such as Oxycodone, commonly referred to as M-30s.
If you or someone you know suffers from addiction, please call the Lines for Life substance abuse helpline at 1-800-923-4357 or visit www.linesforlife.org. Phone support is available 24 hours a day, seven days a week. You can also text “RecoveryNow” to 839863 between 8am and 11pm Pacific Time daily.
Counterfeit Oxycodone Seized in Portland Metro Area Counterfeit Oxycodone Seized in Portland Metro Area Counterfeit Oxycodone (M-30) Seized in Jackson CountyShreveport Trauma Surgeon Sentenced for Stealing More than $200,000 in Social Security BenefitsRead the Press Release
SHREVEPORT, La. - Acting United States Attorney Alexander C. Van Hook announced that John T. Owings, 60, of Shreveport, Louisiana, was sentenced today by United States District Judge Elizabeth E. Foote to 21 months in prison, followed by 2 years of supervised release, for stealing Social Security benefits. Owings was ordered to pay restitution in the amount of $200,434.70.
Owings, who was formerly the Chief of Trauma at the former LSU Health and Sciences Center in Shreveport (LSUHSC), was convicted by a federal jury in February 2019 of 20 counts of theft of government property and 1 count of concealing or failing to disclose an event affecting right to a government benefit. The United States presented evidence during the trial showing that Owings applied for disability benefits in 2008 and continued to receive those benefits through June of 2017, after returning to work in 2012. When Owings went back to work as a surgeon at the University of California-Davis in 2012, making $22,000 a month, he failed to tell the Social Security Administration (SSA) about his return to work. In 2013, LSUHSC hired Owings as its trauma chief, paying him over $40,000 a month. Owings never disclosed his employment at LSUHSC to the SSA. Instead, Owings took disability insurance benefits throughout his employment at the University of California-Davis and LSUHSC that he was not entitled to. Owings used the benefits to pay for personal expenses and fund his coin collecting hobby.
“Despite being a highly-paid, working trauma surgeon, Dr. Owings took advantage of a program that is designed to benefit those who are in need of assistance due to their inability to work,” Acting U.S. Attorney Van Hook said. “I would like to thank the agents with the Social Security Administration – Office of Inspector General for doing such an outstanding job on this case and other cases such as this by seeking out those individuals who take advantage of a program designed for the disabled. We will continue to prosecute those who abuse the system in this way.”
The SSA is responsible for the implementation of the Disability Insurance Benefits Program under Title II of the Social Security Act. The SSA provides monetary benefits to individuals who have worked and paid taxes to SSA. To be eligible for monthly cash benefits, individuals must have been deemed medically disabled and must have been unable to maintain gainful employment.
Pursuant to SSA regulations, a claimant must prove to SSA that he or she is disabled by furnishing medical and other evidence with the application. The application and supporting evidence would then be evaluated by SSA to determine the individual’s medical impairments and determine the effect of the impairment on the claimant’s ability to work on a sustained basis. Recipients of Social Security disability insurance benefits are required by federal law to report any changes in their medical or employment status to SSA, including any work activity, whether compensated or not. Eligibility for Disability Insurance Benefits is conditioned on the recipient’s lack of employment income during the period when the disability benefits are paid.
The Social Security Administration – Office of Inspector General conducted the investigation. Assistant United States Attorneys Seth D. Reeg and Leon H. Whitten prosecuted the case.
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Shop owner admits to illegally selling hummingbirdsRead the Press Release
LAREDO, Texas – A businesswoman and her employee have admitted they were responsible for selling parts of a protected species, announced Acting U.S. Attorney Jennifer B. Lowery.
Cecilia Castaneda, 63, pleaded guilty today, while Maria Luisa Garza-Salazar, 57, entered her plea Jan. 22. The Laredo women admitted to illegally selling hummingbirds. Castaneda owned and operated Herbario Corpus Christi, a business specializing in herbs and spices. Garza-Salazar was her employee.
Both women were charged under the Lacey Act for selling dried or parts of more than 160 hummingbirds. The Lacey Act still protects the migratory birds although they are no longer an endangered species. The law makes it a crime to import, sell, receive or acquire any wildlife which have been possessed, transported or sold in violation of any law.
Dried hummingbirds, or parts of the birds, are illegally packaged and sold commercially as love charms together with prayer cards. The hummingbirds are typically packaged in a paper sleeve and surrounded with red threads or envelopes.
In a companion case, Maria Guadalupe Garcia, 55, Laredo, admitted to selling more than 200 hummingbirds Oct. 28. She owned and operated Herbario Lupita, an herbal shop located in Laredo.
“These guilty pleas send a clear message to wildlife traffickers that we and our law enforcement partners are in the business of identifying and apprehending those who exploit protected species for commercial gain,” said Special Agent in Charge Phillip Land of the Fish and Wildlife Service (FWS-OLE.) “We thank the U. S. Attorney's Office for the Southern District of Texas for holding these individuals responsible for their actions.”
Castaneda is set for sentencing Aug. 10, while Garcia’s hearing is scheduled for June 22. At those times, they each face up to five years in federal prison and a possible $250,000 maximum fine.
The FWS – OLE conducted the investigation with the assistance of Texas Game Wardens. Assistant U.S. Attorney José Angel Moreno is prosecuting the case.
Rocky Mount Tax Return Preparer Sentenced for Conspiracy to Filing False Tax ReturnsRead the Press Release
NEW BERN, N.C. – A Rocky Mount, NC woman was sentenced yesterday to twenty-four (24) months imprisonment and ordered to pay $229,000 in restitution for committing conspiracy to prepare and file false tax returns.
According to court documents, Priscilla Evans, 65 years old, conspired with others to file false tax returns for the 2011 through 2016 tax years for clients of Community Tax Services LLC located in Rocky Mount, North Carolina. Evans and her co-conspirators filed tax returns that claimed false education credits, among other illegitimate items, in order to fraudulently generate clients’ tax refunds. According to the IRS, the three-year scam resulted in a loss of more than $2 million in tax dollars. On July 14, 2020, Evans pled guilty to the charge.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by United States District Judge Louise W. Flanagan. The Internal Revenue Service Criminal Investigations (IRS-CI) assisted in this investigation. Assistant U.S. Attorney Ethan Ontjes is prosecuting the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:19-CR-00077-2FL.
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Residents of Florida, Georgia and North Carolina Indicted for Promoting Tax Fraud SchemeRead the Press Release
A federal grand jury in Orlando, Florida, returned an indictment April 21, 2021, charging residents of Florida, Georgia and North Carolina with promoting a tax fraud scheme.
According to the indictment, from 2013 to 2017, Iran Backstrom of Milledgeville, Georgia; Mehef Bey of Charlotte, North Carolina; Yomarie Febres of Atlanta, Georgia; and Aaron Aqueron of Clermont, Florida, allegedly conspired together and with others to promote a tax fraud scheme to more than 200 individuals in 12 states. The indictment alleges that the defendants recruited clients by falsely representing that the clients’ mortgages and other debts entitled them to tax refunds. To execute the scheme, the defendants and their conspirators allegedly prepared and caused clients to file tax returns that falsely claimed large amounts of income taxes had been withheld from the clients and paid over to the IRS, entitling the clients to tax refunds. According to the indictment, the defendants typically charged each client fees ranging from approximately $10,000 to $15,000 and did not report on their own tax returns any income generated from the scheme.
The indictment further alleges that when the IRS discovered the fraud and attempted to recover the fraudulently obtained tax refunds, Aqueron encouraged clients to provide the IRS with false information and remove funds from their bank accounts in order to thwart the IRS’s collection efforts. As a result of the scheme, the defendants allegedly filed, and caused to be filed, with the IRS approximately $40 million in fraudulent claims for tax refunds
Backstrom, Bey, Febres and Aqueron are charged with conspiring to defraud the United States and aiding in the preparation of false tax returns. Aqueron is also charged with corruptly endeavoring to obstruct the due administration of the internal revenue laws.
Backstrom, Febres and Aqueron are scheduled for their initial court appearances today before a U.S. Magistrate Judge for the Middle District of Florida. Bey will make an initial appearance at a later date. If convicted, each defendant faces a maximum sentence of five years in prison on the conspiracy charge and three years of prison on each count of aiding in the preparation of false tax returns. Aqueron also faces a maximum of three years in prison on the obstruction charge. In addition, the defendants face 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 Karin Hoppmann for the Middle District of Florida made the announcement.
The IRS-Criminal Investigation is investigating the case.
Trial Attorneys Lauren Archer, Kavitha Bondada and Alexander Effendi of the Tax Division and Assistant U.S. Attorney Karen Gable of the U.S. Attorney’s Office for Middle District of Florida are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Residents of Florida, Georgia and North Carolina Indicted for Promoting Tax Fraud SchemeRead the Press Release
Orlando, FL – A federal grand jury in Orlando, Florida, returned an indictment April 21, 2021, charging residents of Florida, Georgia and North Carolina with promoting a tax fraud scheme.
According to the indictment, from 2013 to 2017, Iran Backstrom of Milledgeville, Georgia; Mehef Bey of Charlotte, North Carolina; Yomarie Febres of Atlanta, Georgia; and Aaron Aqueron of Clermont, Florida, allegedly conspired together and with others to promote a tax fraud scheme to more than 200 individuals in 12 states. The indictment alleges that the defendants recruited clients by falsely representing that the clients’ mortgages and other debts entitled them to tax refunds. To execute the scheme, the defendants and their conspirators allegedly prepared and caused clients to file tax returns that falsely claimed large amounts of income taxes had been withheld from the clients and paid over to the IRS, entitling the clients to tax refunds. According to the indictment, the defendants typically charged each client fees ranging from approximately $10,000 to $15,000 and did not report on their own tax returns any income generated from the scheme.
The indictment further alleges that when the IRS discovered the fraud and attempted to recover the fraudulently obtained tax refunds, Aqueron encouraged clients to provide the IRS with false information and remove funds from their bank accounts in order to thwart the IRS’s collection efforts. As a result of the scheme, the defendants allegedly filed, and caused to be filed, with the IRS approximately $40 million in fraudulent claims for tax refunds
Backstrom, Bey, Febres and Aqueron are charged with conspiring to defraud the United States and aiding in the preparation of false tax returns. Aqueron is also charged with corruptly endeavoring to obstruct the due administration of the internal revenue laws.
Backstrom, Febres and Aqueron are scheduled for their initial court appearances today before a U.S. Magistrate Judge for the Middle District of Florida. Bey will make an initial appearance at a later date. If convicted, each defendant faces a maximum sentence of five years in prison on the conspiracy charge and three years of prison on each count of aiding in the preparation of false tax returns. Aqueron also faces a maximum of three years in prison on the obstruction charge. In addition, the defendants face 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 Karin Hoppmann for the Middle District of Florida made the announcement.
The IRS-Criminal Investigation is investigating the case.
Trial Attorneys Lauren Archer, Kavitha Bondada and Alexander Effendi of the Tax Division and Assistant U.S. Attorney Karen Gable of the U.S. Attorney’s Office for Middle District of Florida are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Prison Official Pleads Guilty to Accepting Bribes to Smuggle Contraband to InmatesRead the Press Release
A North Carolina man pleaded guilty today to a bribery and smuggling scheme in which he abused his position as a prison official to funnel drugs and other contraband into Caledonia Correctional Institution.
According to court documents, Ollie Rose III, 62, of Pleasant Hill, worked as a case manager at Caledonia Correctional Institution, a state prison in Halifax County. Rose admitted to agreeing to use his position, from at least November 2018 through October 2020, to smuggle contraband — including oxycodone, marijuana and synthetic cannabinoids — into the prison for inmates. Rose further admitted that he did so in exchange for payments ranging from $500 to $1,200 and received more than $40,000 in total in bribes. He was paid both in cash and via a mobile application, and he sometimes also accepted a portion of the drugs he smuggled into the prison as payment.
Rose pleaded guilty to one count of conspiring to use a facility in interstate commerce in furtherance of unlawful activity and one count of extortion under color of official right. A sentencing date has been scheduled for the Sept. 7 term of court. Rose faces a maximum penalty of 25 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division and Special Agent in Charge Robert R. Wells of the FBI’s Charlotte Field Office made the announcement.
The case was investigated by the FBI, with significant assistance from the North Carolina Department of Public Safety.
Trial Attorneys Rebecca M. Schuman and Lauren E. Britsch of the Criminal Division’s Public Integrity Section are prosecuting the case.
Postal Worker Pleads Guilty to Stealing MailRead the Press Release
BOSTON – A U.S. Postal Service (USPS) employee pleaded guilty yesterday in federal court in Boston in connection with stealing mail and making over $16,000 in fraudulent purchases and ATM withdrawals.
Angela Gomez, 40, of Lynn, pleaded guilty to one count of theft of mail by an employee. U.S. District Court Judge Denise J. Casper deferred acceptance of the plea until sentencing, which is scheduled for Sept. 2, 2021. In November 2020, Gomez was arrested and charged by criminal complaint.
Postal inspectors received information that customers in Lynn reported missing mail. For example, one USPS customer reported that an expected Lilly Pulitzer gift card never arrived in the mail. Further investigation revealed that USPS City Carrier Assistant Angela Gomez handled that particular customer’s route. Records indicated that the expected gift card was used in January 2020 for purchases delivered to Gomez’s then-home address and that the corresponding email address belonged to Gomez. Subsequent surveillance of Gomez during the performance of her duties revealed that she rifled through and stole mail on 21 separate occasions.
Agents were then contacted by an Eastern Bank fraud investigator, who was investigating multiple unauthorized Automatic Teller Machine (ATM) withdrawals and debit card purchases made using three separate Eastern Bank accounts. The Eastern Bank accounts were owned by individuals who all resided on the carrier route Gomez was assigned to prior to when the unauthorized transactions began. Eastern Bank records confirmed three compromised accounts. Security camera video footage related to several of the unauthorized debit card purchases (including at Walmart and Target shopping centers) showed Gomez making unauthorized purchases using debit cards associated with the three compromised Eastern Bank accounts. ATM and bank security camera videos from Eastern Bank showed Gomez making unauthorized cash withdrawals from the three Eastern Bank accounts. The total loss amounts of unauthorized debit card purchases and ATM withdrawals incurred to the three Eastern Bank accounts is $16,587.
Gomez also stole four separate U.S. Treasury Economic Impact Payment (EIP) checks, more commonly known as stimulus checks, totaling $4,800, which were intended for delivery to USPS customers who lived on Gomez’s carrier route.
In total, Gomez stole $21,387 in fraudulent debit card purchases, ATM withdrawals and stimulus checks.
As part of the plea agreement, Gomez has agreed to pay restitution to the victims.
The charging statute provides for a sentence of up to five years in prison, three years of supervised release and a $250,000 fine. 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; Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office; and William Kalb, Special Agent in Charge of the U.S. Treasury Inspector General for Tax Administration Office of Investigations, New York Field Office made the announcement. Assistant U.S. Attorney Eugenia M Carris, Deputy Chief of Mendell’s Public Corruption & Special Prosecutions Unit, is prosecuting the case.
Philadelphia Man Sentenced to over 15 Years in Federal Prison for Narcotics TraffickingRead the Press Release
Jackson, Miss. - A Philadelphia man was sentenced today to 189 months in federal prison for possession with intent to distribute methamphetamine, announced Acting U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi and Jack P. Stanton, Acting Special Agent in Charge of Homeland Security Investigations’ New Orleans Field Office.
According to court documents, Landon Marquale Dupree, 35, of Philadelphia, Mississippi, was charged with and pled guilty to selling methamphetamine to an individual on July 15, 2019, in Philadelphia. Dupree was sentenced to serve 189 months in the custody of the Bureau of Prisons, to be followed by 8 years of supervised release. He was also ordered to pay $4595.00 in restitution to the Mississippi Bureau of Narcotics.
Dupree has a prior felony conviction for sale of cocaine in Neshoba County, Mississippi.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The case is part of a joint investigation by the United States Immigration, Customs Enforcement, Homeland Security Investigations and Mississippi Bureau of Narcotics, with assistance from US Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Philadelphia Police Department, Neshoba County Sheriff’s Department, Neshoba County District Attorney’s Office, Scott County Sheriff’s Office, Flowood Police Department, Rankin County Sheriff’s Department, Hinds County Sheriff’s Department, Carthage Police Department, Union Police Department, Louisville Police Department, and Mississippi Highway Patrol. The case is being prosecuted by Assistant United States Attorney Erin Chalk.
Ocean County Man Sentenced to 40 Years in Prison for Producing Images of Sexual Abuse of Children and Advertising Child PornographyRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man was sentenced today to 40 years in prison for producing images of himself sexually abusing young children, Acting U.S. Attorney Rachael A. Honig announced.
Sebastien Attar, 36, of Brick, New Jersey, previously pleaded guilty before U.S. District Peter G. Sheridan to an information charging him with two counts of sexual exploitation of children. Separately, Attar also pleaded guilty before Judge Sheridan to a superseding indictment charging him with one count of advertising child pornography. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in the case and statements filed in court:
Beginning in mid-2017, federal law enforcement began investigating individuals participating in a private chat messaging group dedicated to the discussion and dissemination of images and videos depicting the sexual abuse of children. The private chat group was named “Taboo Train 2.0,” and law enforcement identified Attar as a member of that group, operating with the account identifier “Seb Seb.” The investigation revealed that on multiple occasions and in response to requests from other users, Attar, operating as “Seb Seb,” shared with the “Taboo Train 2.0” chat group images depicting adults sexually abusing very young children.
In March 2018, in connection with the investigation of the “Taboo Train 2.0” chat group, federal law enforcement agents executed a search warrant at Attar’s Brick, New Jersey residence, and seized a number of electronic devices and electronic storage media. In July 2018, a grand jury sitting in the Northern District of Georgia returned a superseding indictment charging Attar and others with advertising child pornography.
During a forensic review of the electronic media seized pursuant to the search of Attar’s residence, law enforcement discovered graphic images in which an individual – later identified as Attar – had photographed himself sexually abusing two infants. Attar was subsequently arrested and charged in a criminal complaint filed in the District of New Jersey. As part of the plea agreement, the superseding indictment filed in the Northern District of Georgia against Attar was formally transferred to the District of New Jersey so that Attar could plead guilty to that charge in conjunction with his guilty plea to the information filed in this district.
In addition to the prison term, Judge Sheridan sentenced Attar to lifetime supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI-Newark Field Office, under the direction of Special Agent in Charge George M. Crouch Jr., and special agents of the FBI-Atlanta Field Office, under the direction of Special Agent in Charge J.C. Hacker, with the investigations leading to today’s guilty pleas. She also thanked prosecutors from the U.S. Attorney’s Office for the Northern District of Georgia, under the direction of Acting U.S. Attorney Kurt R. Erskine, for their assistance.
The government is represented by J. Brendan Day, Attorney in Charge of the Trenton Office of the U.S. Attorney’s Office.
New Haven Man Sentenced to 10 Years in Federal Prison for Gun and Drug OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that KEVIN McFARLANE, also known as “Jabari McBurn” and “Dexter Creque,” 43, of New Haven, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 120 months of imprisonment, followed by four years of supervised release, for firearm possession and crack cocaine distribution offenses.
According to court documents and statements made in court, on July 8, 2018, in New Haven, McFarlane possessed a loaded Glock model 43 9mm semiautomatic handgun and approximately 97 grams of crack cocaine. The firearm had been reported stolen in Florida in 2017.
McFarlane’s criminal history includes a 2004 conviction in Connecticut for sale of a hallucinogen/narcotic, and a 2007 conviction in Florida for murder in the second degree. He was released from Florida state prison in July 2017.
McFarlane has been detained since his arrest on related state charges on July 11, 2018. On September 5, 2019, he pleaded guilty to one count of possession with intent to distribute 28 grams or more of cocaine base (“crack”), and one count of possession of a firearm in furtherance of a drug trafficking crime.
This matter was investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the New Haven Police Department. The case was prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Nantucket Painting Business Owner Sentenced for $2 Million Income & Payroll Tax Fraud SchemeRead the Press Release
BOSTON – The owner of a commercial and residential painting business on Nantucket was sentenced yesterday in connection with an income diversion and payroll tax scheme resulting in a tax loss that exceeded $2 million.
Durvan C. Lewis, 51, of Nantucket, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to two years in prison, two years of supervised release and a fine of $10,000. Lewis was also ordered to pay $2,084,852 in restitution to the IRS. On Feb. 10, 2021, Lewis pleaded guilty to one count of tax evasion and one count of failure to pay over taxes.
Lewis owned and operated a painting business known as DCL Painting. From 2014 through 2017, Lewis diverted over $1.5 million of DCL Painting’s gross receipts to his personal bank account and failed to report the diverted receipts to his tax preparer. In addition, during the tax quarters ending March 31, 2012 through Sept. 30, 2019, Lewis paid over $5 million in wages to DCL Painting’s employees in cash “under the table.” As a result of his conduct, Lewis underreported his personal income tax obligations, as well as failed to report and pay over to the IRS the employment taxes owed on the cash wages. In total, Lewis caused a loss to the IRS of $2,084,852.
Acting United States Attorney Nathaniel R. Mendell and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Boston Field Office made the announcement. Assistant U.S. Attorney James R. Drabick of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
Murphy, N.C. Resident Is Sentenced to Six Years for Distribution of Child PornographyRead the Press Release
ASHEVILLE, N.C. – On Tuesday, May 11, 2021, U.S. District Judge Max O. Cogburn Jr. sentenced Lawrence Keith Limon, 52, of Murphy, N.C. to 72 months in prison for distribution of child pornography, announced William T. Stetzer, U.S. Attorney for the Western District of North Carolina. Limon was also ordered to serve a lifetime of supervised release and to register as a sex offender after he is released from prison.
Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Charlotte, and Sheriff Derrick Palmer of the Cherokee County Sheriff’s Office join Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed documents and statements made in court, from June 2017 to January 2019, Limon engaged in the online distribution of images depicting the sexual abuse of children. Court records show that law enforcement became aware that an individual, later identified as Limon, was distributing multiple child pornography using various internet platforms, including the social media blog platform Tumblr.com and a Gmail email account. On March 12, 2019, law enforcement executed a search warrant at Limon’s resident, seizing three electronic devices including a tablet, a cellphone and a laptop. A forensic analysis of the seized devices revealed that it contained more than 600 images of child pornography.
On November 30, 2020, Limon pleaded guilty to distribution of child pornography. He is currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked HSI and the Cherokee County Sheriff’s Office for their investigation of this case.
Special Assistant U.S. Attorney (SAUSA) Alexis Solheim, with the U.S. Attorney’s Office in Asheville, prosecuted the case. Ms. Solheim is a state prosecutor with the office of the 43rd Prosecutorial District and was assigned by District Attorney Ashley Welch to serve as a SAUSA with the U.S. Attorney’s Office in Asheville. Ms. Solheim is duly sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 43rd Prosecutorial District and the United States Attorney’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Morgantown man admits to his role in a drug trafficking operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Kenneth Burns, of Morgantown, West Virginia, has admitted to his role in a drug trafficking conspiracy, Acting United States Attorney Randolph J. Bernard announced.
Burns, 34, pled guilty to one count of “Unlawful Use of Communication Facility.” Burns admitted to using a phone to help sell fentanyl, cocaine base, and heroin in March 2020 in Monongalia County.
Burns faces not more than four years of incarceration and a fine of not more than 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 Zelda E. Wesley is prosecuting the case on behalf of the government. The Drug Enforcement Administration, the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Monongalia County Sheriff’s Office investigated.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Magistrate Judge Michael John Aloi presided.
Related press release: https://www.justice.gov/usao-ndwv/pr/seventeen-people-charged-heroin-and-crack-cocaine-distribution-operation
Michael Gonzalez Sentenced to Time Served for Federal Firearm OffenseRead the Press Release
The Acting United States Attorney for the District of Vermont announced today that Michael Gonzalez, 32, was sentenced today to time served, which was a period of over 13 months of imprisonment, for making a false statement in connection with the attempted acquisition of a firearm. Chief Judge Geoffrey Crawford also ordered that Gonzalez serve a three-year period of supervised release.
According to court documents, on August 26, 2019, Gonzalez was arraigned by Judge David Fenster in Chittenden County Superior Court on a charge of first-degree aggravated domestic assault with a weapon, in violation of 13 VSA, Section 1043(a)(2). During the arraignment, Michael A. Gonzalez was provided with a copy of the charging information, which stated that the penalty for a violation of 13 VSA, Section 1043(a)(2), was not more than 15 years of imprisonment. On September 23, 2019, Michael A. Gonzalez attempted to purchase a Ruger Security 9-millimeter caliber pistol from a federally licensed dealer in Williston, Vermont. As part of the attempted purchase, Gonzalez completed an ATF Form 4473. On the ATF Form 4473, Gonzalez falsely stated that he was not under indictment or charged by information for a felony for which the judge could imprison him for more than one year. Gonzalez provided the ATF Form 4473 containing the false statement to the firearms dealer, who submitted the information to the FBI’s National Instant Criminal Background Check System (NICS). The initial response from the NICS required a “delay.” Gonzalez never obtained the Ruger pistol.
In July of 2018, law enforcement seized a firearm from Gonzalez due to evidence he was recently using controlled substances. In October 2018, Gonzalez was prevented from obtaining a firearm due to a denial during a federal background check, which also stemmed from his use of controlled substances.
Acting United States Attorney Jonathan Ophardt commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). “A crucial tool in combatting domestic violence is preventing firearm sales to those accused of and convicted of violent domestic assaults. The United States Attorney’s Office will continue to aggressively prosecute federal firearm crimes to disrupt potential violence before it occurs. We appreciate the assistance of licensed federal firearms dealers who diligently follow background check procedures, which are crucial to these efforts.”“ATF’s top priority is to keep guns out of the hands of criminals and other prohibited persons. A valuable tool in this prevention effort is the ATF Background Check Form 4473, which must be completed before a federally licensed firearm dealer sells or transfers a firearm,” said Special Agent in Charge Kelly D. Brady of the ATF Boston Field Division. “Criminals and other prohibited persons who attempt to thwart the background check process by lying on the required forms threaten to undermine this important crime prevention tool, and such conduct cannot be tolerated.”
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Gonzalez is represented by Chandler Matson, Esq. The prosecutor is Assistant U.S. Attorney John Boscia.
Meridian Man Sentenced to over Four Years Years in Prison under Project EJECT for Being a Convicted Felon in Possession of AmmunitionRead the Press Release
Jackson, Miss. – A Meridian man was sentenced today to 52 months in federal prison for possession of ammunition by a convicted felon, announced Acting U.S. Attorney Darren J. LaMarca and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, Todrian Kwame Laphand, 27, of Meridian, Mississippi, purchased 40 rounds of .223 caliber ammunition from a pawn shop in Meridian on July 10, 2019. Laphand also purchased a large sheath or holster for a large semi-automatic pistol capable of firing .223 caliber ammunition. After Laphand left the pawn shop, in the company of three other people, officers of the Lauderdale County Sheriff’s Office conducted a traffic stop and took Laphand into custody. Laphand was found in possession of the ammunition he purchased, along with a firearm and the sheath that contained that firearm. Also found in the vehicle were two other firearms and several different suspected controlled substances. Laphand has prior felony convictions for felony fleeing from a law enforcement officer, sale of marijuana and possession of a firearm by a convicted felon. As a convicted felon, it is contrary to federal law for Laphand to possess any ammunition.
Laphand was charged with and pled guilty to possession of ammunition by a convicted felon.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being 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.
Maryland Woman Sentenced to Prison for Defrauding Medicaid Program Out of Hundreds of Thousands of DollarsRead the Press Release
WASHINGTON – Folashade Adufe Horne, 52, of Laurel, Maryland, was sentenced today to 13 months in prison for defrauding the D.C. Medicaid program out of more than $370,000.
The announcement was made by Acting U.S. Attorney Channing D. Phillips; James A. Dawson, Special Agent in Charge, FBI Washington Field Office, Criminal Division; Maureen R. Dixon, Special Agent in Charge of the U.S. Department of Health and Human Services’ Office of Inspector General for the region that includes Washington, D.C.; and Daniel W. Lucas, Inspector General for the District of Columbia.
In February, Horne pled guilty to health care fraud in the United States District Court for the District of Columbia. The Honorable Reggie B. Walton, who presided over her plea hearing, imposed the 13-month sentence. Judge Walton also ordered Horne to pay $373,564 in restitution and a $267,567 forfeiture money judgment.
At various times between January 2014 and June 2020, Horne was employed by four different home health agencies to serve as a personal care aide for D.C. Medicaid beneficiaries. Horne also was employed full-time by Howard University Hospital during this same period. The home health agencies employed Horne to assist Medicaid beneficiaries in performing activities of daily living, such as getting in and out of bed, bathing, dressing, and eating. Horne was supposed to document the care she provided to the Medicaid beneficiaries on timesheets and then submit the timesheets to the home health agencies, which would in turn bill Medicaid for the services that she rendered.
Horne acknowledged that between January 2014 and June 2020, she caused the D.C. Medicaid Program to issue payments totaling $373,564 for services that she did not render. As part of her fraud scheme, she submitted false timesheets to different home health agencies purporting that she provided personal care aide services that she did not provide. She claimed she provided such services during times when she actually was working her shift as a full-time employee at Howard. She claimed to work more than twenty hours in a given day on more than 200 occasions, including 28 days when she asserted that she provided 32 hours of PCA services. She also claimed to provide personal care aide services in the District of Columbia on days when she was not even in the United States.
The FBI, the Department of Health and Human Services’ Office of Inspector General, the District of Columbia’s Office of the Inspector General’s Medicaid Fraud Control Unit, and the U.S. Attorney’s Office are committed to investigating and prosecuting individuals who defraud the D.C. Medicaid program. Since October 2019, six former personal care aides have been sentenced in U.S. District Court for defrauding Medicaid. A seventh former personal care aide, Charlotte Etongwe, is scheduled to be sentenced next week. Cases against two other personal care aides remain outstanding.
The government counts on the public for tips and assistance in helping stop health care fraud. If you have information about individuals committing health care fraud, please call the Department of Health and Human Services’ Office of Inspector General hotline at (800) HHS‑TIPS [(800) 447-8477].
Assistant U.S. Attorney Kondi Kleinman of the Fraud Section prosecuted the case.
Man from Española sentenced to two years in federal prison for drug and firearm possessionRead the Press Release
ALBUQUERQUE, N.M. – Jerod Walker, 22, of Española, New Mexico, was sentenced in federal court on May 6 to two years and three months in prison for possession with intent to distribute cocaine base and being a prohibited person in possession of a firearm.
Walker pleaded guilty to these offenses on July 22, 2020. According to the plea agreement, on Feb. 1, 2020, Walker was in possession of a handgun and cocaine base (also known as crack cocaine) in a bag located inside his girlfriend’s vehicle. The incident occurred in Rio Arriba County, New Mexico. Due to his drug addiction, Walker is prohibited from possessing a firearm.
Upon completion of his prison sentence, Walker will be subject to three years of supervised release.
The Bureau of Alcohol, Tobacco, Firearms and Explosives Albuquerque Resident Agency, the Rio Arriba County Sheriff’s Office, and the United States Probation Office investigated this case. Assistant U.S. Attorney Joseph Spindle prosecuted the case.
Man Sentenced to 20 Years in Prison for Attempting to Provide Material Support to ISISRead the Press Release
WASHINGTON – A New York man was sentenced today to 20 years in prison for attempting to provide material support to the Islamic State of Iraq and al-Sham, aka ISIS.
Zachary Clark, aka Umar Kabir, Umar Shishani and Abu Talha, 42, of Brooklyn, pleaded guilty in August 2020 to one count of attempting to provide material support or resources to a designated foreign terrorist organization, namely, ISIS.
“Today’s 20-year sentence recognizes the gravity of Clark’s conduct, including his calls for other ISIS supporters to carry out lone wolf terrorist attacks in New York City,” said Assistant Attorney General John C. Demers for the Justice Department’s National Security Division. “Having pledged allegiance to ISIS, Clark provided others with specific instructions on knifing and bomb-making for use in such attacks. We remain vigilant to the threat of terrorism and committed to identifying and holding accountable those who threaten our communities through their support for foreign terrorist organizations.”
“Zachary Clark pledged allegiance to ISIS and posted calls for attacks on the public and institutions in New York City on encrypted pro-ISIS chatrooms, along with detailed instructions for carrying out those violent acts,” said U.S. Attorney Audrey Strauss for the Southern District of New York. “Thanks to the Joint Terrorism Task Force, Clark’s efforts to incite deadly violence on behalf of ISIS have been silenced. Today’s sentence sends a clear message that those who seek to further ISIS’s campaign of terror and violence, no matter the method, will face serious consequences.”
“The FBI remains steadfast in the fight against terrorism," said Acting Assistant Director Patrick Reddan for the FBI’s Counterterrorism Division. “I would like to thank the men and women of the FBI, along with our partners in law enforcement, for holding accountable individuals, such as Zachary Clark, who pledge allegiance to ISIS and support and spread their violent terrorist agenda. We remain vigilant in our efforts to prevent terrorism and protect the American people, and today’s sentencing underscores that commitment.”
According to court documents, Clark pledged allegiance to ISIS twice: first in July 2019 to ISIS’s then-leader Abu Bakr al-Baghdadi, and then in October 2019 to ISIS’s new leader, Abu Ibrahim al-Sashemi al-Qurayshi, whom ISIS promoted after al-Baghdadi’s death. Beginning in at least March 2019, Clark disseminated ISIS propaganda through, among other avenues, encrypted chatrooms intended for members, associates, supporters and potential recruits of ISIS. Clark’s propaganda included, among other things, calls for ISIS supporters to commit lone wolf attacks in New York City.
For example, on Aug. 3, 2019, Clark posted instructions about how to conduct such an attack, including directions on how to select an attack target, how to conduct preoperational surveillance, how to conduct operational planning and how to avoid attracting law enforcement attention when preparing for and conducting the attack. On another occasion, Clark posted a manual entitled “Knife Attacks,” which stated, among other things, that discomfort at “the thought of plunging a sharp object into another person’s flesh” is “never an excuse for abandoning jihad” and that “[k]nives, though certainly not the only weapon for inflicting harm upon the kuffar [non-believers], are widely available in every land and thus readily accessible.”
Clark urged the participants in encrypted chatrooms to attack specific targets, posting maps and images of the New York City subway system and encouraging ISIS supporters to attack those locations. Clark’s guidance also included posting a manual entitled “Make a bomb in the kitchen of your Mom,” which was issued by al-Qaeda in the Arabian Peninsula and included detailed instructions about constructing bombs using readily available materials.
The FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD and over 50 other federal, state and local agencies, investigated the case.
Assistant U.S. Attorneys Gillian Grossman, Matthew Hellman and Sidhardha Kamaraju of the Southern District of New York prosecuted the case with assistance from Trial Attorneys Jason Denney and Chad Davis of the National Security Division’s Counterterrorism Section.
Long Island Investment Advisor Pleads Guilty to Securities Fraud ConspiracyRead the Press Release
Earlier today, in federal court in Central Islip, Mark Lisser pleaded guilty to securities fraud conspiracy for lying to customers about investments in shares of several companies prior to the initial public offering (IPO) of those companies. The proceeding was held before United States Magistrate Judge A. Kathleen Tomlinson.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, announced the guilty plea.
“With today’s guilty plea, the defendant admits to personally profiting from the false representations he made to his customers about the nature of their investments in valuable pre-IPO companies,” stated Acting U.S. Attorney Lesko. “This Office and its law enforcement partners are committed to preventing dishonest advisors like the defendant from taking advantage of the investing public.” Mr. Lesko thanked the Federal Bureau of Investigation, New York Field Office, and the United States Securities and Exchange Commission, New York Regional Office, for their assistance.
Between October 2018 and January 2019, Lisser was a partner in Knightsbridge Private Partners LLC (Knightsbridge), which operated a series of websites and call centers used to solicit investments in purported pre-IPO shares of companies (the Pre-IPO Companies). Employees of Knightsbridge, including Lisser, solicited these investments by falsely telling investors and potential investors that Knightsbridge owned the shares it was selling, that Knightsbridge was on the capitalization table of the pre-IPO Companies, and that Knightsbridge and its employees did not earn any commissions or fees until after the shares were issued to the public and the investors made money. In reality, as Lisser knew, Knightsbridge did not directly own any pre-IPO shares in the Pre-IPO Companies, and was not on the capitalization table of any of the Pre-IPO Companies. Lisser also knew that he and other Knightsbridge employees earned money, including commissions, from the investments at the time they were made. As a result of this scheme, Lisser misappropriated more than $700,000 in investors’ funds to make payments to companies controlled by Knightsbridge employees, pay salaries and sales commissions, pay his personal credit card bill, and make payments on a mortgage.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Mathew S. Miller and David Gopstein are in charge of the prosecution.
The Defendant:
MARK ALAN LISSER
Age: 40
Massapequa, New YorkE.D.N.Y. Docket No. 21-CR-210 (JMA)
Local woman guilty of disaster fraudRead the Press Release
HOUSTON – A 46-year-old Houston resident has admitted to fraudulently obtaining more than $7,000 in disaster relief, announced Acting U.S. Attorney Jennifer B. Lowery.
Latoya Romar entered a guilty plea to a scheme to defraud the Federal Emergency Management Agency (FEMA) in connection with the severe storm that struck Houston May 4, 2015.
Romar applied for disaster relief, falsely claiming the storm damaged her residence and personal property. As part of her plea, she admitted she submitted forged documents to FEMA to substantiate her false claims.
As a result of her fraudulent claims, FEMA paid Romar $7,124.33 in disaster relief that she was not entitled to receive.
U.S. District Judge Andrew S. Hanen accepted the plea and set sentencing for Aug. 16. At that time, Romar faces up to 30 years in federal prison and a $250,000 maximum possible fine. She was permitted to remain on bond pending that hearing.
The Department of Homeland Security - Office of Inspector General conducted the investigation. Assistant U.S. Attorney Justin R. Martin prosecuted the case.
Leader of Newark Drug Trafficking Organization Sentenced to 20 Years in Prison for Participating in Heroin ConspiracyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 240 months in prison for his role as the leader of a heroin trafficking conspiracy in Newark, Acting U.S. Attorney Rachael A. Honig announced.
Keith Herd, 33, of Newark, previously pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to a third superseding indictment charging him with one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin and distribution of and possession with intent to distribute heroin. Judge Wigenton imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
Herd was the leader of a drug trafficking organization that dealt heroin and crack cocaine in and around Newark, specifically around Hayes Street and 14th Avenue in the area of the New Community Corporation community development (NCC). The organization was comprised of members of the Brick City Brim set of the Bloods street gang.
The investigation revealed that in addition to selling drugs, members of the organization alerted each other to police presence and the presence of rival gang members or drug dealers within NCC. The members also shared narcotics supply, narcotics proceeds, and customers, and raised bail money for each other following their numerous arrests. Members of the organization have also engaged in violence and been the subjects of violent crime in connection with their narcotics trafficking activities.
In addition to the prison term, Judge Wigenton sentenced Herd to five years of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and members of the Newark Department of Public Safety, under the direction of Public Safety Director Brian O’Hara, with the investigation leading to today’s sentencing. She also thanked the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, the New Jersey Department of Corrections, the New Jersey State Parole Commission, and the U.S. Marshals Service for their assistance.
The case was investigated as part of the Violent Crime Initiative (VCI). The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorneys Elaine K. Lou and Christopher D. Amore of the U.S. Attorney’s Office in Newark.
Lawrence Man Sentenced for Fentanyl ConspiracyRead the Press Release
BOSTON – A Lawrence man pleaded guilty and was sentenced today in federal court in Boston in connection with drug trafficking activities involving fentanyl.
Ronyel Pena, 20, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl, two counts of distribution of and possession with intent to distribute fentanyl, one count of distribution of 40 grams or more of fentanyl and one count of possession with intent to distribute 40 grams or more of fentanyl. U.S. District Court Judge Richard G. Sterns then sentenced Pena to one year and one day in prison and four years of supervised release.
According to court documents, beginning in the spring of 2019, federal agents began an investigation into a drug trafficking organization (DTO) in the Lawrence area. Between April and June 2019, federal agents made five controlled purchases of fentanyl from the DTO. Pena delivered the fentanyl for four of the five controlled purchases.
Pena was charged as part of a coordinated enforcement operation in the Merrimack Valley dubbed “Operation Devil’s Highway.” The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against a total of 40 people for federal drug offenses, with at least a dozen more individuals facing state charges.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. The Massachusetts State Police and the Lawrence Police Department assisted in this investigation. Assistant U.S. Attorney Alathea Porter of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
LPR admits to smuggling fentanyl and heroin through LaredoRead the Press Release
LAREDO, Texas – A 37-year-old legal permanent resident (LPR) of Mexico has pleaded guilty to participating in a drug importation conspiracy, announced Acting U.S. Attorney Jennifer B. Lowery.
Jose Martinez Torres had been residing in Chicago.
On Feb. 2, Torres attempted to enter the United States at the Juarez–Lincoln Port of Entry in Laredo. An x-ray scan of his vehicle revealed some anomalies in the dashboard which prompted authorities to conduct a search. They ultimately found 13 hidden duct-taped bundles - 11 packages of heroin weighing 12.96 kilograms and two of fentanyl with a weight of 2.22 kilograms.
The narcotics had a combined estimated street value of $350,000.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing Aug. 10. At that time, Torres faces up to life in prison. He has been in custody since his arrest where he will remain pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney David Fawcett prosecuted the case.
Judge sentences Lewis County man for being a felon in possession of a firearmRead the Press Release
ST. LOUIS – United States District Judge Henry E. Autrey sentenced Marcus Mays to 37 months in prison today. The 37-year-old Canton, Missouri resident pleaded guilty to one count of being a felon in possession of a firearm.
On August 17, 2018, the Lewis County Sheriff’s Department was investigating Mays. The sheriff’s department obtained a search warrant for Mays’ residence to look for items related to child abuse and drugs. During the execution of the warrant, the sheriff’s department found two stolen firearms, a box of 9mm ammunition, a box of sandwich baggies, two bags containing methamphetamine, marijuana and $1,100 in U.S. Currency in an ottoman in the living room.
Prior to August 17, 2018, Mays was convicted of at least one felony crime punishable by imprisonment for a term exceeding one year.
The Lewis County Sheriff’s Department investigated the case. Assistant United States Attorney J. Christian Goeke is handling the case.
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Interstate Theft Scheme Ringleader Pleads GuiltyRead the Press Release
PROVIDENCE – A Cranston man today admitted to a federal court judge that he led a nine-person conspiracy that participated in a four-state scheme to steal heavy construction equipment, sport boats, jet skis, all-terrain vehicles, and trailers.
According to court documents, Jose A. Montes, aka Jose Rivera, aka “Tuto”, 36, led the group of individuals that broke into businesses in four New England states in order to steal three Bobcat excavators, ten jet skis, three boats, eight all-terrain vehicles, and fourteen trailers, valued at nearly $700,000.
Appearing in federal court in Providence today, Montes admitted that he personally participated in
- The October 22 and 23, 2019, break-in of a Rehoboth, MA, business and the theft of four jet skis and two trailers valued at approximately $64,000. Two of the watercrafts were later recovered in Cranston by Cranston Police.
- A November 18, 2019, break-in at a South Kingstown marina and the theft of a sport boat and trailer valued at $30,000. The boat and trailer were later recovered by law enforcement in Sarasota, FL.
- A December 28, 2019, break-in at a Tiverton business and the theft of two sport fishing boats and trailers valued at nearly $200,000. The boats were first towed to Johnston. Montes admitted that he removed the engine from one of the boats and then left the boat in Scituate. The engineless boat was later recovered by police. The second boat was towed to Sarasota, FL, to be sold. It was recovered by law enforcement in Sarasota.
- The April 10, and 11, 2020, break-ins at an Auburn, MA, Bobcat dealer and the theft of three Bobcat machines valued at a total of approximately $195,000. Two of the Bobcats were later recovered by Johnston Police. The third stolen Bobcat was recovered by North Providence Police.
- The April 12, 2020, break-in at a Waterford, CT, business and the theft of a jet ski and trailer valued at $17,000. The stolen items have not been recovered.
- The July 17, 2021, attempted break-in at a Vernon, CT, business and the attempted theft of an all-terrain vehicle (ATV), a three-wheeled sport vehicle, and a trailer. The break-in was interrupted by police. Montes and a person working at his direction fled the area. Later that evening, Montes admitted, he and the second person stole $58,000 worth of items from a Stafford, CT, business, to include an ATV, a jet ski, and two trailers.
- On July 20, 2020, Montes, directed a group of men who travelled together in three vehicles to an Easton, MA, business where they stole three jet skis and three trailers valued at a total of nearly $48,100. The stolen items were transported to Providence.
- On July 29, 2020, Montes and others working at his direction broke-in to a Hampstead, NH, business and stole four ATVs, three jet skis, a three-wheeled sport vehicle, and two trailers, valued at a total of $90,400.
On August 2, 2020, Providence Police located a stolen ATV parked in the rear of a Providence residence. On August 9, 2020, Easton Police recovered a trailer stolen in that town. On that same date, Hampstead, NH, Police recovered an ATV stolen in that town.
Appearing today before U.S. District Court Mary S. McElroy, Montes pleaded guilty to three counts of conspiracy to commit interstate transportation of stolen property and eight counts of interstate transportation of stolen property, announced Acting United States Attorney Richard B. Myrus.
Montes is scheduled to be sentenced on August 3, 2021.
The investigation into the stolen items was launched by the Johnston and North Providence Police Departments, and joined by the FBI Safe Streets Task Force, and merged with a parallel investigation by Rhode Island and Connecticut State Police, and the Easton, MA,, and Hampstead, NH, Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys William J. Ferland and Ly T. Chin.
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Indonesian Man Guilty of Illegally Using Social Security Number to Obtain EmploymentRead the Press Release
NEW ORLEANS, LOUISIANA –RUDY GUNAWAN, age 40, a citizen of Indonesia, pleaded guilty on May 11, 2021 before U.S. District Judge Wendy B. Vitter to a one-count indictment that charged him with possession of fraudulent immigration documents, announced United States Attorney Duane A. Evans. GUNAWAN faces a maximum term of imprisonment of not more than ten (10) years, three (3) years of supervised release, a fine of $250,000, and a mandatory special assessment fee of $100. Sentencing is scheduled for July 20, 2021.
According to court documents, United States Customs and Border Protection (CBP) agents received information that GUNAWAN was in the United States illegally and using a Social Security card bearing the name and number of another person. On September 28, 2020, CBP agents encountered GUNAWAN at his place of employment, Samurai Sushi (Slidell, Louisiana). An agent asked for identification and GUNAWAN produced a U.S. Social Security card. GUNAWAN claimed to be a U.S. citizen from Puerto Rico. He admitted that he knew the U.S. Social Security card was falsely made and that he had obtained the card from an individual in Memphis, Tennessee for $700. GUNAWAN also admitted that the name and number on the card were not lawfully issued to him and that he purchased the fraudulent documents in order to be able to stay within the United States and work.
U.S. Attorney Evans praised the work of United States Customs and Border Protection and Social Security Administration agents in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
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Hopkinton Man Arrested for Third Time on Child-Related Sex ChargesRead the Press Release
PROVIDENCE – A Hopkinton man arrested and charged in Rhode Island state court in July 2020 on charges that he allegedly arranged online to meet with a 14-year-old girl to engage in sexual intercourse, and arrested again in October 2020 after a Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force investigation determined that he allegedly downloaded and stored child pornography earlier in 2020, has been charged in federal court with possessing child pornography and with allegedly downloading images of child pornography in March of this year while on bail related to his previous arrests.
In April 2021, the ICAC Task Force received information from the National Center for Missing and Exploited Children (NCMEC) that child pornography had been downloaded in March via an online social media program, using an IP address assigned to an Internet subscriber in Rhode Island. It was determined by the ICAC Task Force that the IP address belonged to a residence where Christopher Leherissier, 36, resides. As a result of further investigation, Leherissier was arrested on Wednesday by ICAC Task Force members and Homeland Security Investigations agents on a federal criminal complaint charging him with possession of child pornography.
Prior to Wednesday’s arrest, Leherissier had been arrested twice in the past 10 months by members of the ICAC Task Force on sex-related charges involving minors.
In July 2020, Leherissier was arrested by members of the ICAC Task Force when he arrived at a location where he allegedly was to meet and have sexual intercourse with a minor whom he had been communicating with online for several months. The person he was allegedly communicating with was, in fact, a member of the ICAC Task Force. A smart phone seized from Leherissier allegedly contained numerous images of child pornography.
In a separate investigation, in May 2020, the ICAC Task Force received information from NCMEC that an individual had uploaded seven files of child pornography to a Dropbox storage account. It was determined by members of the task force that the files were allegedly uploaded from an IP address where Leherissier resided. A court-authorized search of the Dropbox account resulted in the discovery of approximately 55 files depicting child pornography. Leherissier was arrested on October 22, 2021 by ICAC Task Force members on a state charge of possession of child pornography. A forensic review of electronic devices seized during Leherissier’s second arrest allegedly resulted in the discovery of 42 mages and 10 videos depicting child pornography.
Leherissier appeared today in U.S. District Court in Providence before Magistrate Judge Lincoln D. Almond on a federal criminal complaint charging him with possession and distribution of child pornography. He was ordered detained in federal custody.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Leherissier’s arrest and initial appearance in U.S. District Court is announced by Acting United States Attorney Richard B. Myrus, Homeland Security Investigations Acting Special Agent in Charge William S. Walker, and Superintendent of the Rhode Island State Police Colonel James M. Manni.
The case in U.S. District Court is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
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Hartford Man Pleads Guilty to Distributing Oxycodone from New Britain Grocery StoreRead the Press Release
Leonard C. Boyle, Acting United States Attorney for the District of Connecticut, today announced that ELIEZER PEREZ, also known as “Ka-King,” 42, of Hartford, pleaded guilty yesterday via videoconference before U.S. District Judge Janet C. Hall to conspiracy to possess with intent to distribute, and to distribute, oxycodone.
According to court documents and statements made in court, in the summer of 2019, the Drug Enforcement Administration New Haven Tactical Diversion Squad and the New Britain Police Department began investigating individuals who were selling oxycodone pills from Elzier Grocery, located at 1485 Corbin Avenue in New Britain. Between July and December 2019, investigators made multiple controlled purchases of oxycodone pills from Perez and others at the store.
On February 26, 2020, court authorized searches of the Elzier Grocery and a nearby residence revealed more than 1000 oxycodone pills, drug packaging materials, drug ledgers, and approximately $10,000 in cash.
Perez has been detained since his arrest on December 12, 2020.
Judge Hall scheduled sentencing for August 3, 2021, at which time Perez faces a maximum term of imprisonment of 20 years.
This investigation is being conducted by the Drug Enforcement Administration New Haven Tactical Diversion Squad and the New Britain Police Department. The case is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Guatemalan Man Sentenced for Unlawful Reentry by an Alien Removed After Conviction of a FelonyRead the Press Release
Gulfport, Miss. – A Guatemalan national was sentenced yesterday to 16 months in federal prison for unlawful reentry by an alien removed after conviction of a felony, announced Acting U.S. Attorney Darren J. LaMarca and Michael J. Harrison, Acting Chief Patrol Agent of the Border Patrol’s New Orleans Sector.
According to court documents, Gerber Estif Pineda-Sierra, 34, was arrested in November 2020 by agents with the U.S. Border Patrol following an investigation which determined that Pineda-Sierra, who had been previously removed from the United States, was residing in the Gulfport, Mississippi area. Record checks documented that in 2018, Pineda-Sierra had been physically removed from the U.S. after being ordered removed by a U.S. Immigration Judge. Thereafter, he reentered the U.S. and was convicted in the Northern District of Florida in 2019 for the felony offense of illegal reentry into the U.S. of a previously deported alien. Pineda-Sierra was again removed from the U.S. In January 2020, he was arrested again by the Border Patrol, and was returned to Guatemala in February 2020.
Pineda-Sierra was sentenced today to 16 months in federal prison, followed by three years of supervised release. He may also face Department of Homeland Security removal proceedings. If he is removed from the United States following his prison sentence, Pineda-Sierra could face additional penalties if he were to unlawfully return to the United States, in addition to further prosecution. As a result of this felony conviction, if Pineda-Sierra were to unlawfully return to the United States, he could face up to ten years in federal prison. Pineda-Sierra was convicted after pleading guilty on February 23, 2021.
Acting U.S. Attorney for the Southern District of Mississippi, Darren J. LaMarca, praised the investigative work of the U.S. Border Patrol and the U.S. Department of Homeland Security. Assistant United States Attorney Stan Harris prosecuted the case.
Goffstown Man Pleads Guilty to Transportation and Possession of Child PornographyRead the Press Release
CONCORD - Timothy Diggins, 60, of Goffstown, pleaded guilty in federal court to transportation and possession of child pornography, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on or about January 1, 2019, Microsoft’s automated system detected potential child exploitation material on an account belonging to Diggins. A Cybertip report was sent to the National Center for Missing and Exploited Children (NCMEC), which referred the matter to law enforcement for investigation.
On September 18, 2019, investigators conducted a consensual interview with Diggins at his home. Diggins confirmed that he used the internet to view child pornography. Subsequent search warrants revealed over one thousand child pornography images on Diggins’ computer and electronic media.
Diggins is scheduled to be sentenced on August 23, 2021.
“Child exploitation crimes victimize young children and cause unspeakable harm,” said Acting U.S. Attorney Farley. “Those who engage in child pornography crimes must be held accountable for their actions. To protect the innocence of our children, we work closely with our law enforcement partners to identify and prosecute those who commit crimes related to child pornography.”
“This guilty plea removes another participant from the traumatizing and exploitative cycle of child exploitation online. The coordination across the public, private, and non-profit sectors seen in cases like these are critical to Homeland Security Investigation’s mission to keep children safe online,” said William S. Walker, Acting Special Agent in Charge for Homeland Security Investigations, Boston.
This matter was investigated by Homeland Security Investigations, the New Hampshire Internet Crimes Against Children Task Force, and the Goffstown Police Department. The case is being prosecuted by Assistant U.S. Attorney Cam Le.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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German Citizen Sentenced in Maryland to Nearly Two Years in Federal Prison for Charges Related to a Scheme to Defraud the U.S. State DepartmentRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Katrin Verclas, age 52, a native and citizen of Germany residing in Washington, D.C., today to 728 days in federal prison for obstruction of a federal audit and for causing a financial institution to fail to file a suspicious activity report (SAR). Verclas previously pleaded guilty to those charges, which were related to more than $1.2 million in U.S. State Department grant funds awarded to MobileActive, a corporation that Verclas controlled. To settle a related civil complaint filed against MobileActive, the corporation will pay $500,000 to the United States within five days of the Court accepting the consent judgment, or today’s sentencing, whichever is later.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge Mike Speckhardt of the U.S. Department of State Office of Inspector General, Office of Investigations.
According to the plea agreement, on December 17, 2009, the U.S. State Department’s Bureau of Democracy, Human Rights, and Labor (“DRL”) publicized a Request for Proposal (“RFP”) that solicited grant proposals under the title “Promoting Freedom of Expression and the Free Flow of Information through Technology and Access.” The submission deadline for grant proposals was January 22, 2010.
As detailed in the plea agreement, Verclas, who was residing in Amherst, Massachusetts at the time, had worked for non-profit organizations in the field of social activism through the use of technology since about 1996. In preparation for a response to the DRL RFP, on January 15, 2010, Verclas converted a project known as MobileActive into a Delaware corporation, and on January 22, 2010, electronically submitted a grant proposal to DRL on behalf of MobileActive. On September 20, 2010, MobileActive was awarded a grant from the U.S. Department of State in the amount of approximately $1,411,000, to develop and promote: a Mobile Security Toolkit of needed and missing software applications for secure mobile communication; and tactical resources that would allow human rights organizations and activists in specific geographic regions to easily assess and mitigate risks associated with their mobile communications. The performance period of the grant was September 20, 2010 through about September 30, 2012.
In order to request the grant funds, MobileActive, through Verclas, established an account with Payment Management System (“PMS”), a federal grants management database located in Bethesda, Maryland. Between October 26, 2010 and July 26, 2012, Verclas submitted 11 payment requests on behalf of MobileActive, causing the U.S. Department of State to release $1.222 million to MobileActive’s business bank account, which Verclas controlled.
MobileActive, through Verclas, failed to comply with a number of requirements under the grant. In November 2012, the State Department began performing an audit and quality assurance inspection with regard to the grant award. From November 2012 to February 2014, the State Department made several requests, including through letters mailed and hand-delivered to Verclas, to provide documents and information, including a final financial report and inventory report, among other things. Verclas admitted that she intentionally ignored the State Department’s repeated requests because she knew that she did not have the requisite reports, documents, and other items.
In addition, Verclas admitted that from November 2010 to October 2012, she failed to disclose to the bank that many of the transactions involving the MobileActive business account were for Verclas’ own personal gain rather than legitimate business purposes. Verclas knew that, had the bank been aware of the true nature of these transactions, it would have been required to file a SAR. Through her deception, Verclas willfully caused the bank to fail to file a SAR.
Acting United States Attorney Jonathan F. Lenzner commended the U.S. Department of State, Office of Inspector General, for its work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney David I. Salem, who prosecuted the case, and thanked Assistant U.S. Attorney Katharine A. Wagner of the Massachusetts U.S. Attorney’s Office, who provided substantial assistance.
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Gansevoort Woman Pleads Guilty to Charges of Supplemental Security Income FraudRead the Press Release
ALBANY, NEW YORK – Santa Sanabria, a/k/a Santa Cordero, age 75, of Gansevoort, New York, pled guilty today to using two different names and Social Security numbers to collect Social Security benefits under both identities.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and John F. Grasso, Special Agent in Charge of the Social Security Administration (SSA), Office of the Inspector General, New York Field Office.
As part of her guilty plea, Sanabria admitted that she had applied for and received two Social Security numbers, one in her maiden name, Sanabria, and another in her married name, Cordero. Sanabria admitted that from July 2012 through September 2017, while collecting Social Security benefits under the name Santa Cordero and the Social Security number associated with that name, she also used the Social Security number issued under her maiden name to apply for and collect Supplemental Security Income (SSI) benefits to which she was not entitled. SSI is a needs-based program, available to elderly, blind, and disabled individuals, that provides money to pay for living expenses.
As a result of her conviction, Sanabria faces up to 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. Sentencing is scheduled for September 9, 2021 before Senior United States District Judge Lawrence E. Kahn. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Sanabria has agreed to pay full restitution in the amount of $30,510.90.
This case was investigated by the SSA Office of the Inspector General and is being prosecuted by Special Assistant U.S. Attorney Adrian S. LaRochelle.
Franklin, Tennessee Couple Charged with Defrauding Elderly Widow of $1.7 MillionRead the Press Release
NASHVILLE – A criminal complaint unsealed today charged a Franklin, Tennessee couple with an elaborate scheme to defraud an elderly widow of $1.7 million, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee. FBI agents this morning, arrested Karl Hampton, 63, and his wife, Deborah Hampton, 59, at their home. Karl Hampton is charged with wire fraud and money laundering and Deborah Hampton is charged with money laundering. Both will make an initial appearance before a U.S. Magistrate Judge later today.
According to the criminal complaint, Karl Hampton met an elderly widow while he was working as an exterminator for a Belle Meade-based pest control company and provided extermination services for her home from approximately January 2016 through May 2019.
Beginning in approximately January 2018, when the elderly woman was 85 years old, and continuing until about June 2020, Karl Hampton devised and executed a scheme to defraud the woman and various financial institutions and credit and loan-issuing institutions by deceiving the woman into believing that he was her son or godson and that he would care for her personally and financially. He then used his influence over her to convince her to sign over her Power of Attorney (POA) and to name him in her Revocable Living Trust (RLT) and in her will. Karl Hampton methodically drained the woman’s bank accounts, took out a $500,000 line of credit in her name using her securities as collateral, and amassed huge charges on her credit cards for his own personal expenses, all under the false pretenses that he had a valid POA, that he was entitled to her money and property, and that he was acting for her benefit and in her interest.
In April 2019, Karl Hampton accompanied the woman to an attorney’s office, where she signed a POA, a RLT and a will, each of which purported to give Karl Hampton considerable control over her assets. The POA appointed Karl Hampton as the Agent and Deborah Hampton as the successor agent. The RLT and the will specified that Karl Hampton and Deborah Hampton would be beneficiaries when the woman died. In May 2019, shortly after inducing the woman to sign the POA, Karl Hampton quit his job and thereafter continued to drain the woman’s bank accounts to fund his lavish lifestyle.
On June 8, 2019, the woman fell and fractured her hip and was transported to Williamson County Medical Center (WCMC) and then to NHC of Cool Springs (NHC), which was an assisted living facility, for recovery following hip surgery. During her hospital visit and transfer to NHC, the woman was diagnosed with dementia. Staff at NHC also noted that the woman was malnourished when she arrived, and staff discussed with Karl Hampton that she suffered from dementia. Upon the woman’s admission to WCMC and on the application to place her at NHC, Karl Hampton listed himself as her “son,” her trustee, POA, and emergency contact. On other occasions, Karl Hampton called a financial institution, allegedly on the woman’s behalf, and represented that he was her “personal assistant” and another time falsely represented that she was his “mother.”
In December 2019, Karl Hampton took out a $500,000 line of credit in the woman’s name at SunTrust, using her security accounts at SunTrust as collateral. Karl Hampton then wrote checks to himself, purchased cashier’s checks, took out cash withdrawals, and transferred money out of the woman’s bank account and into a bank account in the name of Falcon Company, which he set up and controlled.
In January 2020, Karl Hampton used $170,000 of the money from the line of credit to purchase an ownership interest in his own name in a pest control business located in Franklin. Also, in January 2020 Karl Hampton rented an apartment in Murfreesboro, Tennessee, in the woman’s name. By this time, the woman had been living at NHC for almost six months.
During the course of the scheme, Karl Hampton took a total of approximately $1,240,438.06 from the woman’s accounts, and frequently purchased luxury items and often spent between $1,000 and $1,500 per day on lottery tickets. In February 2019, Karl Hampton and Deborah Hampton purchased a luxury Lexus SUV, using $21,000 of the criminal proceeds. In January 2020, the Hamptons spent $21,452 on a 4.3-karat diamond ring, also using proceeds of the fraud.
Karl Hampton also liquidated two investment accounts of the woman’s deceased sister in the amount of $246,645 and used the money for his own benefit.
If convicted, the Karl Hampton faces up to 20 years in prison and Deborah Hampton faces up to 10 years.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Kathryn Booth.
A criminal complaint is merely an accusation of guilt. Both defendants are presumed innocent until proven guilty in a court of law.
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Four men sentenced to prison for purchasing millions of dollars worth of cigarettes using stolen credit cardsRead the Press Release
ATLANTA – Mamadou Sow, Demarcus Myree, Boubacar Tivalo, and Jacob James, have been sentenced for access device fraud and aggravated identity theft related to purchases of massive quantities of cigarettes from Sam's Club retail locations in metro Atlanta.
“Identity theft wreaks havoc on the lives of individuals and compromises the financial security of victims,” said Acting U.S. Attorney Kurt R. Erskine. “The sentences reflect the egregiousness of their conduct and the harm caused to dozens of victims, including individuals, financial institutions, and the retail establishments.”
“Identity thieves are a serious threat to our community because these scammers can steal so much of your hard-earned money and vanish before you’re ever alerted,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI and its partners are constantly working to identify, arrest and prosecute criminals, like these, that are exploiting the security of our financial networks.”
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: Mamadou Sow, Demarcus Myree, and Boubacar Tivalo obtained Sam's Club memberships and membership cards in their names and aliases. From September 2018 through November 30, 2018, the defendants used dozens of stolen credit cards, issued by various financial institutions, to make unauthorized purchases of cigarettes at Sam's Club retail locations throughout metro Atlanta. In combination with some cash transactions, these three defendants purchased over $1.7 million worth of cigarettes during the scheme. Myree was also charged with possession of a stolen firearm.
From September 2018 to December 2018, Jacob James, who was charged in a separate indictment, purchased over $635,000 worth of cigarettes from Sam’s Club stores using stolen credit cards.
The defendants have been sentenced by U.S. District Judge Eleanor L. Ross as follows:
- Mamadou Sow, a/k/a Moussa Sow, 30, of Guinea, was sentenced to two years, six months in prison for access device fraud, to be followed by two consecutive years imprisonment for aggravated identity theft. He was also sentenced to serve three years of supervised release and ordered to pay restitution in the amount of $749,772.31. Sow was convicted on these charges on July 23, 2019, after he pleaded guilty.
- Demarcus Myree, a/k/a Yuri Markosov, 27, of Atlanta, Georgia, was sentenced to two years, six months in prison for access device fraud and possession of a stolen firearm, to be followed by two consecutive years imprisonment for aggravated identity theft. He was also sentenced to serve two years of supervised release and ordered to pay restitution in the amount of $339,545.42. Myree was convicted on these charges on June 26, 2019, after he pleaded guilty.
- Boubacar Tivalo, a/k/a Tivado Boubacar, 46, of Guinea, was sentenced to two years, six months in prison for access device fraud, to be followed by two consecutive years imprisonment for aggravated identity theft. He was also sentenced to serve three years of supervised release and ordered to pay restitution in the amount of $664,305.52. Tivalo was convicted on these charges on September 10, 2019, after he pleaded guilty.
- Jacob James, a/k/a Mark Johnson and Joe Johnson, 31, of Atlanta, Georgia, was sentenced to two years in prison for access device fraud, to be followed by two consecutive years imprisonment for aggravated identity theft. He was also sentenced to serve three years of supervised release and ordered to pay restitution in the amount of $635,242.75. James was convicted on these charged on November 24, 2020, after he pleaded guilty.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant U.S. Attorney Kelly K. Connors prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.Four Men Receive Lengthy Federal Prison Sentences for Trafficking Drugs in Southeast AlabamaRead the Press Release
MONTGOMERY, ALABAMA – Over the past several months, four men were sentenced to prison for drug trafficking in Houston County, announced Acting United States Attorney Sandra J. Stewart. The most recent sentencing occurred this week.
On May 11, 2021, the final co-defendant in the case, 36-year-old Muta Bolden from Dothan, Alabama, was sentenced to 130 months in prison. Bolden was also ordered to serve five years of supervised release after he completes his term of imprisonment. There is no parole in the federal system.
Bolden’s three co-defendants were previously sentenced for their roles in the crime. They include:
- Alberto Diaz, 44, from Rio Grande, Texas, sentenced to 130 months’ imprisonment, to be followed by five years’ supervised release;
- Jesus Pina, Jr., 40, from San Juan, Texas, sentenced to 108 months’ imprisonment, to be followed by five years’ supervised release; and,
- Kenneth Nicholas De La Cerda, 27, from Rio Grande, Texas, sentenced to 60 months in prison to be followed by three years’ supervised release.
According to court records, this case began in February 2019 when the Drug Enforcement Administration (DEA) and Dothan Police Department received information that a shipment of cocaine was being brought into Houston County. Based on the tip, law enforcement observed Bolden meet up with Diaz and De La Cerda in Ashford, Alabama. Following a conversation among the three, they all departed separately. Diaz and De La Cerda eventually traveled to the Flying J Truck Stop in Dothan and led an 18-wheeler being driven by Pina to another location. Eventually, Bolden joined Diaz and De La Cerda at the truck and approximately 25 kilograms of cocaine was retrieved from the trailer Pina was hauling. A short time later, all four were apprehended. Each of the four were sentenced after pleading guilty to conspiracy to distribute cocaine in Houston County.
Federal guidelines called for significant sentences for Diaz, Pina, and Bolden due to their extensive criminal histories and the quantity of illegal drugs that were attributed to each of them.
These cases were investigated by the Drug Enforcement Administration (DEA) and the Dothan Police Department. Assistant United States Attorneys Brandon Bates and Joshua Wendell prosecuted the cases.
Fort Gordon soldier admits to possession of child pornographyRead the Press Release
AUGUSTA, GA: A U.S. Army soldier training at Fort Gordon has admitted to possessing child pornography.
Bryan S. Stills, 26, of Fort Gordon, pled guilty in U.S. District Court to one count of Possession of Child Pornography, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The plea subjects Stills to a statutory penalty of up to 20 years in federal prison and substantial financial penalties, followed by a period of supervised release of five years to life. There is no parole in the federal system.
“Identifying and removing child predators is an important part of keeping our communities safe,” said Acting U.S. Attorney Estes. “We applaud our law enforcement partners for their continued efforts to find those who prey on the most vulnerable members of our society.”
As described in court documents and testimony, the National Center for Missing and Exploited Children (NCMEC) alerted investigators from the U.S. Army Criminal Investigation Command (CID) after detecting child pornography being saved to an email account. Investigators identified the source as Stills, a Private Second Class in training at Fort Gordon with the 369th Signal Battalion, and in an October 2019 search of his living quarters seized electronic devices with hundreds of images and videos of child pornography.
Stills is in custody while awaiting sentencing.
“U.S. Army Criminal Investigation Command will continue to actively pursue soldiers who engage in this heinous crime regardless of where they are in the world,” said Edward LaBarge, Director of the Major Cybercrime Unit, U.S. Army CID.
The case is being investigated by the U.S. Army Criminal Investigation Command, and prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara M. Lyons.
Former VA Employee Sentenced for Conspiring to Accept BribesRead the Press Release
NEW BERN, N.C. – A Hope Mills man, Daniel Bruce Ross, was sentenced today to 24 months in prison for conspiring to accept bribe payments in exchange for the performance of official acts while working as a federal government employee. Ross previously pled guilty to the charge. He was also ordered to pay $21,520.00 in restitution.
According to court documents and other information presented in court, Ross worked for the U.S. Department of Veterans Affairs (VA) in Fayetteville as an agent for the Specially Adapted Housing (SAH) grant program, which provides federal funds to eligible veterans with certain severe, service-connected disabilities for the purpose of constructing adapted homes or modifying existing homes. SAH agents have day-to-day responsibility for managing the grant program, including recommending action on grant applications to VA supervisory officials. Among other things, SAH agents are required to inform the veteran that he or she may choose their own builder. Agents are prohibited from recommending a particular builder.
During the offense period, Ross was the assigned SAH agent for multiple grant projects awarded to All American Home Renovations (AAHR), a Fayetteville-based construction company then-owned and operated by Marc Schantz. According to the investigation, Ross abused his position as an SAH agent to steer over $1 million worth of grant projects to AAHR in exchange for monetary payments from Schantz. For example, Ross routinely advised his VA supervisors to approve grant awards to veterans in which AAHR was improperly and deceptively designated as a particular veteran’s “builder of choice” when, in fact, Ross had misled the veteran to believe that AAHR had been selected for them by the VA. AAHR concealed the unlawful payments to Ross by transferring the funds to a dormant business owned by Ross, making it appear as if the business was providing legitimate subcontracting services to AAHR.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The U.S. Department of Veterans Affairs – Office of Inspector General investigated the case and Assistant U.S. Attorney Adam F. Hulbig prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00037-FL.
Former UGA Professor Ordered to Prison, Must Register as Lifetime Sex OffenderRead the Press Release
ATHENS, Ga. – A former University of Georgia (UGA) professor who admitted to authorities that he possessed hundreds of images of child pornography was sentenced to federal prison and will have to register as a sex offender for life.
James Edward Monogan, III, 39, of Athens, was sentenced to serve 90 months in a federal prison to be followed by 10 years of supervised release and more than $40,000 in fines by U.S. District Judge C. Ashley Royal on Tuesday, May 10. In addition, Monogan will be required to register as a sex offender under the Sex Offender Registration Act. Monogan previously pleaded guilty to one count possession of child pornography. There is no parole in the federal system.
“Monogan, a former professor, will serve more than seven years behind federal prison bars for his crimes against children,” said Acting U.S. Attorney Peter D. Leary. “Viewing child pornography is a direct assault against the very children who are being exploited on film. We will prosecute individuals engaging in this deviant criminal behavior, and we thank our law enforcement partners for their hard work and vigilance.”
“Taking Monogan off the streets means that his victims can start to heal, and he can no longer hurt our children or share those dreadful images and details with others,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Catching and prosecuting predators is always a victory for the community, but when that predator is in a position of trust and responsibility that victory is even greater. We are thankful for the hard work our law enforcement put into this case.”
“This investigation demonstrates that no matter who you are, you will be held accountable for preying on children. We value our law enforcement partnerships to be able to work together in these type investigations to catch and punish criminals who seek to exploit one of our most vulnerable populations,” said GBI Director Vic Reynolds.
According to the plea agreement, Homeland Security Investigation’s Atlanta Office (HSI-Atlanta) received information in 2019 that KIK user “utbballplaya03” had distributed child pornography to another KIK user in February 2019. KIK, formally known as Kik Messenger, is an internet based instant messaging mobile application. HSI also received a second child pornography distribution complaint for KIK user “texan21225053.” Both KIK usernames belonged to Monogan. On September 5, 2019, HSI, the GBI and the Athens-Clarke County Police Department executed a federal search warrant at the defendant’s residence in Athens, seizing several electronic devices. Monogan’s UGA office was also searched. A forensic review of the defendant’s electronics located 452 images of child pornography and eight videos depicting child sexual exploitation material on his UGA laptop, as well as an additional 119 images of child sexual exploitation material on his cell phone. Some of these images involved minors under the age of 12.
The case was investigated by U.S. Immigration and Customs Enforcement – Homeland Security Investigations (ICE-HSI), the GBI and the Athens-Clarke County Police Department.
Assistant U.S. Attorney Shanelle Booker is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former New Orleans Church Official Sentenced for Wire FraudRead the Press Release
NEW ORLEANS – CHARLES WILLIAMS, JR. (“WILLIAMS”), age 51, of New Orleans, Louisiana, was sentenced today for Wire Fraud, in violation of Title 18, Untied States Code, Section 1343.
According to documents filed in Federal Court, the defendant was elected Senior Warden of St. Luke’s Episcopal Church (“St. Luke’s”) located at 1222 North Dorgenois Street in New Orleans. In his role as Senior Warden, WILLIAMS was responsible for paying all of St. Luke’s bills including insurance, salaries, and utilities. WILLIAMS took over the finances of the church and reduced or eliminated other church members’ access to church finances shortly after becoming the Senior Warden at St. Luke’s. During his tenure, WILLIAMS embezzled approximately $89,000 from St. Luke’s in his capacity as Senior Warden. WILLIAMS did not share church bank statements with other church members in an effort to conceal his embezzlement of church funds and he transferred church funds from one bank account to another account before withdrawing the funds. WILLIAMS deposited much of the money into his various Chase accounts and used some of the stolen money to support his pizza restaurant located in the Esplanade Mall.
On August 29, 2018, FBI special agents interviewed WILLIAMS. During the interview, WILLIAMS made three false statements to the FBI agents. Specifically, WILLIAMS said he used cash withdrawn from a St. Luke’s account to fund a $2,500 Chase cashier check dated February 21, 2018, with Remitter: St. Luke’s Episcopal Church/Operating Account. When the agents specifically asked whether bank records would show the money for the cashier’s check came from a St. Luke’s account, he denied that bank records would show the $2,500 coming from the church account. Further, he told the agents that the $2,500 had come from his personal account. The statements were false because WILLIAMS knew that on February 21, 2018, he had withdrawn $2,900. from St. Luke’s operating account and then used $2,500 of those funds to purchase the above described cashier’s check made payable to the Esplanade Mall for the benefit of his pizza restaurant. WILLIAMS also lied to the agents when he told them he had invested St. Luke’s money with a particular company. Lastly, he lied when he claimed he had not used any of St. Luke’s money for his business or for personal use. The FBI’s investigation determined that all of these assertions were in fact false.
U.S. District Judge Lance M. Africk sentenced WILLIAMS to 12 months and 1-day imprisonment, followed by 2 years of supervised release and payment of a $100 special assessment fee. WILLIAMS was also ordered to pay restitution in the amount of $89,000.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
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Former Controller of Manhattan Company and Three Family Members Charged with Embezzling $17 MillionRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), and Patrick J. Freaney, Deputy Special Agent-in-Charge of the New York Field Office of the United States Secret Service (“USSS”), announced today the unsealing of a criminal indictment charging SABITRI LAFOREST, GARRY LAFOREST, TATIANA LAFOREST a/k/a “Tatiana Mays,” and SANJAY LAFOREST with wire fraud, conspiracy to commit wire fraud, and conspiracy to commit money laundering in connection with their scheme to defraud SABITRI LAFOREST’s employer, a Manhattan-based electrical contracting company, of at least approximately $17 million.
The defendants were arrested this morning: SABITRI LAFOREST and GARRY LAFOREST in Parkland, Florida, TATIANA LAFOREST in Queens, New York, and SANJAY LAFOREST in New York, New York. Later today, TATIANA LAFOREST and SANJAY LAFOREST will be presented in federal court in Manhattan before U.S. Magistrate Judge Sarah Netburn; SABITRI LAFOREST and GARRY LAFOREST will be presented in federal court in Ft. Lauderdale, Florida, before U.S. Magistrate Judge Alicia O. Valle.
Manhattan U.S. Attorney Audrey Strauss said: “The defendants lived a life of luxury: international travel, fancy apartments and homes, a 2020 Ford Shelby GT500, and a 2019 Chevrolet Corvette ZR-1, as well as ownership in successful restaurants. But, as alleged, this was all paid for with $17 million that the defendants stole from the company that employed Sabitri Laforest for over 30 years. Thanks to our partners at the NYPD and U.S. Secret Service, the defendants’ alleged greed has led to their facing federal charges of embezzlement and money laundering.”
NYPD Commissioner Dermot Shea said: “As alleged in this federal indictment, these defendants exploited a position of trust to engage in a vast scheme of criminal plunder. These arrests and the work of our NYPD detectives, the United States Secret Service and the prosecutors of the United States Attorney’s Office in the Southern District of New York will ensure they face justice.”
USSS Deputy Special Agent-in-Charge Patrick J. Freaney said: “Bringing those to justice who commit financial fraud remains a key focus of the U.S. Secret Service. In this instance, the accused allegedly used her professional position as controller to embezzle approximately $17 million which was then allegedly laundered with the aid of family members. Not only are these alleged actions a violation of trust, but also a violation of law. The Secret Service looks forward to our continued partnership with the New York City Police Department in our joint pursuit of those who seek to commit financial crimes. Special thanks to the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA) Intelligence Analysts and the Miami Field Office of the Secret Service for their considerable support in the success of this investigation.”
According to the allegations in the Indictment:[1]
Between at least 2013 and 2020, SABITRI LAFOREST, GARRY LAFOREST, TATIANA LAFOREST, and SANJAY LAFOREST used SABITRI LAFOREST’s position as the controller of an electrical contracting company (“Victim-1”) to embezzle over $17 million from Victim-1. The defendants used SABITRI LAFOREST’s access to Victim-1’s bank account to make payments to a charge card account that TATIANA LAFOREST opened. The defendants regularly charged hundreds of thousands of dollars to the account, all paid for each month using Victim-1’s money.
The defendants used the charge card account to pay for, among other things, over $639,000 in air travel, over $242,000 in tickets for a New York City professional basketball team, over $250,000 in rent for two luxury apartments in Manhattan leased by TATIANA LAFOREST and SANJAY LAFOREST, over $100,000 in home improvements for a Florida home purchased by SABITRI LAFOREST and GARRY LAFOREST, and a 2020 Ford Shelby GT500 and a 2019 Chevrolet Corvette ZR-1.
The defendants also laundered millions of dollars of the proceeds of their embezzlement scheme by transferring the money to other financial accounts controlled by themselves and their family members, and by making payments to a restaurant in Elmont, New York, owned by SABITRI LAFOREST and GARRY LAFOREST, and a group of hospitality companies, including two Manhattan restaurants, owned by SANJAY LAFOREST.
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SABITRI LAFOREST, 59, and GARRY LAFOREST, 64, of Parkland, Florida, TATIANA LAFOREST a/k/a “Tatiana Mays,” 36, of Queens, New York, and SANJAY LAFOREST, 38, of New York, New York, are each charged with one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, which carries a maximum sentence of 20 years in prison, one count of wire fraud, in violation of 18 U.S.C. § 1343, which carries a maximum sentence of 20 years in prison, and one count of conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956, which carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by a judge.
Ms. Strauss praised the outstanding investigative work of the NYPD’s Financial Crimes Task Force and the USSS. Ms. Strauss also thanked the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA) Intelligence Analysts for their support and assistance in this matter.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Matthew R. Shahabian is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Former Bank Teller Pleads Guilty to Embezzling Social Security Funds from Deceased Customer’s AccountRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Jonnel Perkins, 43, of Philadelphia, PA, pleaded guilty to the charge of embezzlement by a bank employee.
According to court documents filed today, the defendant was employed as a Retail Relationship Banker at a bank located in Philadelphia. While she was employed in this position, the Social Security Administration (SSA) conducted a routine audit which identified that a customer of the bank branch where Perkins worked was likely deceased but still receiving monthly electronic benefits from the SSA. The SSA suspended the payments to this account, but due to regulation had to wait seven years before the approximately $200,000 in accumulated benefit overpayments by the SSA could be reclaimed.
In the months prior to the time when the reclamation could be initiated, between June and December 2019, Perkins withdrew all of the funds from this dormant account. A subsequent investigation determined that the customer whose account from which the defendant withdrew funds had been deceased since 1999. In total, Perkins plead guilty to embezzling $207,450 from the deceased customer’s account. With the embezzled funds, the defendant made large cash deposits into her personal bank accounts as well as large cash deposits at casinos in Philadelphia and Atlantic City, totaling over $200,000.
“Bank employees are trusted by their customers and employers to handle money with honesty and integrity,” said Acting U. S. Attorney Williams. “Here, the defendant stole hundreds of thousands of dollars while she was employed in a position of trust at a bank which managed the deceased victim’s account. Our Office will continue to investigate and prosecute this type of fraud in order to protect individual bank account holders and all American taxpayers who pay into the Social Security system.”
“We will continue to pursue those who would misuse Social Security funds for personal gain, particularly those in positions of trust,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I want to thank the FBI for their partnership, and the U.S. Attorney’s Office for its efforts to bring the charges that led to today’s guilty plea.”
“Jonnel Perkins stole money from someone she figured would never miss it,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “In draining that deceased customer’s account, though, she was ripping off the Social Security Administration and those actually entitled to its benefits. The FBI and our federal partners won’t stand for criminals cheating the U.S. government and the millions of taxpayers who fund it.”
The case was investigated the Social Security Administration – Office of the Inspector General and the Federal Bureau of Investigation, and is being prosecuted by Special Assistant United States Attorney Megan Curran.
Florida Man Sentenced After Fraudulently Obtaining $3.9 Million in PPP LoansRead the Press Release
A Florida man was sentenced today to more than six years in prison for fraudulently obtaining approximately $3.9 million in Paycheck Protection Program (PPP) loans and using those funds, in part, to purchase a $318,000 Lamborghini luxury car for himself.
David T. Hines, 29, of Miami, pleaded guilty to one count of wire fraud on Feb. 10. According to court documents, Hines submitted multiple PPP applications to a PPP-participating lender, claiming to have had dozens of employees and millions of dollars in monthly payroll. In addition to submitting false and fraudulent IRS forms to support the applications, Hines also assisted other individuals in obtaining fraudulent PPP loans. As part of the sentence, the court ordered Hines to forfeit the $3.4 million in fraudulent loan proceeds that law enforcement seized and the 2020 Lamborghini Huracan that Hines purchased for approximately $318,000.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Juan Antonio “Tony” Gonzalez of the Southern District of Florida; Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Office of Investigation’s Atlanta Regional Office; Inspector in Charge Joseph W. Cronin of the U.S. Postal Inspection Service’s Miami Division; Special Agent in Charge Amaleka McCall-Brathwaite of the U.S. Small Business Administration (SBA) OIG, Investigations Division, Eastern Regional Office; Acting Special Agent in Charge Tyler R. Hatcher of the IRS Criminal Investigation (IRS-CI) Miami Office; and Acting Special Agent in Charge Stephen Donnelly of the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection OIG, Eastern Region, made the announcement.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, and in December 2020, Congress authorized another $284 billion in additional funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The FDIC-OIG, U.S. Postal Inspection Service, IRS-CI, SBA-OIG, and the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection OIG investigated the case.
Trial Attorney Emily Scruggs of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael Berger of the Southern District of Florida prosecuted the case. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the CARES Act passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $60 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF web complaint form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Federal Judge Sentences Monroe, N.C. Man to 20 Years for Receipt and Possession of Child PornographyRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad handed down a 20-year prison term today to Joseph Craig Rabon, 37, of Monroe, N.C., for possession and receipt of child pornography, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. Rabon will also have to serve 30 years under supervised release and register as a sex offender after his term of incarceration.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins Acting U.S. Attorney Stetzer in making today’s announcement.
According to court filings, plea documents and statements made in court at today’s sentencing hearing, in August 2016, the FBI became aware that Rabon was using the internet to download child pornography. Court records show that Rabon used peer to peer software to access images and videos depicting the sexual abuse of children, including images portraying sadistic conduct and children under the age of 12. A forensic analysis of Rabon’s seized electronic devices revealed that he possessed more than 30 images and videos of child pornography.
Rabon was indicted by a federal grand jury in November 2018 and was subsequently released on bond. Court records show that, while on pretrial release, Rabon attempted to access and view pornography on the internet multiple times in violation of the Court’s terms and conditions of release. Court records also show that, after Rabon was taken into custody following his guilty plea, a minor victim came forward to report sexual abuse by Rabon over a five year period, which resulted in Rabon’s enhanced term of imprisonment today.
Rabon is currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the FBI for their investigation of this case.
Assistant U.S. Attorney Alfredo De La Rosa, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Federal Grand Jury Indicts West Seneca Man on Child Pornography and Obstruction of Justice ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a five-count indictment charging Shawn Johnson, 33, of West Seneca, NY, with three counts of receipt of child pornography, one count of possession of child pornography, and one count of obstruction of justice. Each of the charges carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney David J. Rudroff, who is handling the case, stated that according to the indictment and a previously filed complaint, in September 2019, investigators discovered an IP address, traced to the defendant, attempting to download suspected child pornography using the internet. On December 2, 2019, the FBI obtained a search warrant for Johnson’s Angle Road residence. As investigators executed the search, they encountered the defendant standing in his bedroom smashing a laptop computer against the wall and trying to damage it. The laptop, which sustained serious damage, was sent to the FBI's Digital Forensics Analysis Unit Laboratory where much of the data was recovered. The hard drive was found to contain numerous images and videos of child pornography.
The defendant was arraigned before U.S. Magistrate Judge Michael J. Roemer and released on conditions.
The indictment is the result of an investigation by the by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Cheektowaga Police Department, under the direction of Chief Michael Sliwinski.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Federal Grand Jury Indicts Jamestown Man on Meth ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Jun N. Martinez, 28, of Jamestown, NY, with narcotics conspiracy, possessing with intent to distribute methamphetamine, maintaining a premises for drug use and distribution, and possessing with intent to distribute methamphetamine on premises where an individual under 18 was present and resided. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorneys Joshua A. Violanti and Misha Coulson, who are handling the case, stated that according to the indictment and a previously filed criminal complaint against Martinez’s girlfriend and co-defendant Antasia Babcock, on October 16, 2020, the Jamestown Metro Drug Task Force executed a New York State search warrant at the Wescott Street residence they shared with their children. During that search, law enforcement officers seized one pound of suspected methamphetamine hydrochloride, drug paraphernalia, and approximately $62,000 in cash.
The indictment is the result of an investigation by the Jamestown Metro Drug Task Force, under the direction of Jamestown Police Chief Timothy Jackson, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Antasia Babcock has also been indicted in this case. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Federal Grand Jury Indicts Buffalo Man and Woman on Narcotics Conspiracy and Cocaine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that that a federal grand jury has returned an indictment charging Jose A Solis-Pizarro, 35, and Mirelys Camacho Betancourt, 25, both of Buffalo, NY, with narcotics conspiracy and attempting to possess with intent to distribute cocaine. The charges carry a mandatory minimum penalty of 5 years in prison and a maximum of 40 years.
Assistant U.S. Attorney Caitlin M. Higgins, who is handling the case, stated that according to the indictment and a previously filed complaint, on February 1, 2021, investigators executed a search warrant on a USPS Priority Mail Parcel addressed to a residence on Parker Avenue in Buffalo. Inside the parcel was approximately one kilogram of suspected cocaine. On February 2, 2021, defendant Camacho Betancourt arrived at the Parker Avenue residence and asked the USPS mail carrier if he had a parcel, specifically an express/priority box. On February 3, 2021, at approximately 11:00 a.m., an investigator attempted to conduct a controlled delivery of the parcel but there was no answer from within the residence. While the investigator was attempting delivery of the parcel, defendant Solis-Pizarro exited a vehicle across the street and approached the investigator, indicating that he lived at the residence and that the parcel was intended for him. Solis-Pizarro took the parcel, walked to the side of the residence, then emerged and got back into his vehicle with the parcel. Solis-Pizarro was taken into custody at that time and the parcel was recovered from the vehicle. Buffalo Police Officers located Camacho Betancourt a short time later in the vicinity of Tacoma and Parker Avenues. She attempted to flee in her vehicle but was taken into custody.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division, the U.S. Postal Inspection Service, under the direction of Acting Boston Division Inspector-in-Charge Joshua W. McCallister, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Federal Arrest Made in Series of Threatening Hoax Calls to Omaha Area Schools and BusinessesRead the Press Release
Acting United States Attorney Jan Sharp announced that FBI agents arrested Andrew Isaac Abrams of Tucson, Arizona, today on a complaint charging Abrams with transmitting a series of threats in interstate commerce on April 23, 2021. The threats targeted Omaha area schools, including Millard Public Schools, Elkhorn Schools, and Westside Community Schools, and Abrams is further alleged to have made threats to Union Pacific Railroad Headquarters and the Douglas County Courthouse.
If convicted of transmitting the threats in interstate commerce, Abrams will face up to five years in prison, a $250,000 fine, and up to three years of supervised release for each count of conviction.
After Abrams’s arrest, FBI Omaha Special Agent in Charge Eugene Kowel said, “Hoax threats directed at schools and businesses cause fear and put people at risk. It’s not a joke, it's a crime. Hoax threats disrupt school, waste limited law enforcement resources, and put first responders in unnecessary danger. The FBI takes each threat seriously. We will always work along with our law enforcement partners to investigate, identify, and apprehend the perpetrators responsible for hoax threats like this one.”
This case was investigated by the Federal Bureau of Investigation, the Omaha Police Department, and the Douglas County Sheriff’s Office.