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7 May 2021
Tractor Trailer Driver Charged with Human SmugglingRead the Press Release
SAN ANTONIO– A Dallas man was arrested last night in San Antonio on federal criminal charges related to his alleged involvement in smuggling a large group of undocumented noncitizens.
According to the criminal complaint filed today, 49-year-old Aron Bernard Griffin was arrested after several concerned community members called 911 to report seeing multiple individuals inside the back of a tractor trailer that Griffin was driving. The tractor trailer was located at a gas station on Interstate Highway 10 East in San Antonio. Forty-one undocumented noncitizens were found at the scene and were detained by Homeland Security Investigations (HSI) Special Agents.
Griffin admitted to Agents that he had made an agreement with another person to pick up the undocumented individuals in Laredo and transport them to San Antonio in return for financial gain.
Griffin is charged by criminal complaint with one count of violating Title 8, Section 1324, smuggling of undocumented noncitizens. If convicted, Griffin faces a maximum penalty of 10 years in prison. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Griffin is expected to appear before U.S. Magistrate Judge Elizabeth S. Chestney today for an initial appearance.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and HSI Acting Special Agent in Charge Craig Larrabee made the announcement.
HSI is investigating this case with the assistance of the San Antonio Police Department.
Assistant U.S. Attorney Daphne Newaz is prosecuting the case.
A criminal complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Stamford Man Charged with Fraudulently Obtaining Nearly $2.9 Million in COVID-19 Relief FundsRead the Press Release
Moustapha Diakhate, 45, of Stamford, was arrested today on a federal criminal complaint charging him with bank fraud and wire fraud offenses related to his receipt of nearly $2.9 million in COVID-19 relief funds guaranteed by the U.S. Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Today’s announcement was made by Acting U.S. Attorney Leonard C Boyle, Special Agent in Charge Amaleka McCall-Brathwaite of the Small Business Administration Office of Inspector General’s Eastern Region, Special Agent in Charge David Sundberg of the New Haven Division of the Federal Bureau of Investigation, and Acting Special Agent in Charge Ramsey E. Covington of IRS Criminal Investigation in New England.
Diakhate appeared this afternoon before U.S. Magistrate Judge S. Dave Vatti in Bridgeport and was ordered detained.
In March 2020, the CARES Act provided emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain other expenses through the Paycheck Protection Program (PPP). In April 2020, Congress authorized more than $300 billion in additional PPP funding. The PPP allowed qualifying small businesses and other organizations to receive unsecured loans at an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent and utilities. The PPP allowed the interest and principal to be forgiven if businesses spent the proceeds on these expenses within a certain period of time of receipt and used at least a certain percentage of the amount to be forgiven for payroll.
The PPP was overseen by the Small Business Administration, which has authority over all PPP loans. Individual PPP loans, however, were issued by private approved lenders, such as Citibank, which received and processed PPP applications and supporting documentation, and then made loans using the lenders’ own funds, which were guaranteed by the SBA.
As alleged in the criminal complaint, Diakhate maintained an ownership or management interest in certain small business entities, including Ansonia Developers LLC, Winsbay Inc., Buyers Association Group LLC, Washington Management LLC and Diakhate Capital, Inc. Beginning in May 2020, Diakhate provided Citibank with false and fraudulent information during the PPP loan application process in order to obtain PPP loans for each of his five entities totaling $2,897,100. Diakhate then used a portion of the funds for various personal expenses, including to pay off a loan he had been provided to purchase of a 2010 Porsche Panamera Turbo, and to purchase both a Mercedes and BMW. He also purchased a $50,000 certificate of deposit with PPP funds, and disbursed funds to various and individuals unrelated to his business entities.
“Congress authorized the Paycheck Protection Program to help small businesses and their employees withstand a devastating pandemic, not so individual recipients can illegally reap a financial windfall,” said Acting U.S. Attorney Leonard C Boyle. “The Justice Department and our federal law enforcement partners are actively working to identify those who are taking advantage of COVID relief programs to line their pockets in violation of the law, and we will ensure that wrongdoers are prosecuted in federal court.”
“Making false statements to fraudulently obtain PPP funds is unacceptable,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “SBA OIG will relentlessly pursue evidence of fraud against SBA’s programs aimed at assisting the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office for its leadership and dedication to pursuing justice.”
“I commend the diligent efforts by all involved in this significant investigation of COVID-19 relief fraud,” said FBI Special Agent in Charge David Sundberg. “This level of deceit must face the full gravity of the judicial system.”
“These charges demonstrate our continued commitment to hold accountable those who attempt to defraud pandemic-related assistance allegedly to fund their luxurious lifestyles,” said Acting Special Agent in Charge Ramsey E. Covington of the Internal Revenue Service-Criminal Investigation. “We will continue to collaborate across agency lines to combat this self-serving type of fraud to ensure that these funds are used for their stated purposes and not to enrich the greedy.”
Acting U.S. Attorney Boyle stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Small Business Administration Office of Inspector General, Federal Bureau of Investigation, and Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Individuals with information about allegations of attempted fraud involving COVID-19 are encouraged to 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.
St. Thomas Man Convicted of Felon in Possession of a FirearmRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert announced today that a federal jury on St. Thomas convicted 29-year-old Leroy Henry, Jr. yesterday of being a felon in possession of a firearm. He was acquitted of a second offense of being a felon in possession of ammunition. At the conclusion of the trial, Henry was remanded to the custody of the U.S. Marshal Service, pending his sentencing.
According to evidence presented at trial, an anonymous Crime Stoppers tip stated that Leroy Henry, Jr., a convicted felon, possessed a hidden compartment in his blue Infiniti, where he maintained an unregistered firearm that he planned to use to exact revenge on his brother’s murderer. This tip led to the FBI executing a search warrant on January 14, 2020. Agents searched Leroy Henry, Jr.’s car and, in a hidden compartment underneath his center console cupholders, located a fully loaded .23 Glock pistol, along with two magazines, one of which was extended.
During a subsequent interview, Leroy Henry, Jr. acknowledged to the agents that he had previously obtained it from a friend.
DNA samples collected from the gun were compared to a sample of Henry’s DNA. An FBI forensic examiner testified at the trial that the DNA analysis revealed that it was 78 septillion times more likely that Henry’s DNA was present on the Glock confiscated from his vehicle.
The Virgin Islands Police Department, the Federal Bureau of Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Assistant U.S. Attorneys Meredith J. Edwards and George Andrew Massucco-LaTaif are prosecuting the case.
This case is part of the Department of Justice’s Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. For more information on the Department of Justice’s Project Safe Neighborhoods, please see: https://www.justice.gov/psn.
Springfield Woman Sentenced for Tax Fraud ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, woman was sentenced in federal court today for her role in a conspiracy, led by a Christian County Jail inmate, to fraudulently claim more than $51,000 in income tax refunds.
Heather Nicole Neal, 35, was sentenced by U.S. District Judge Roseann Ketchmark to two years and six months in federal prison without parole.
On Sept. 17, 2020, Neal pleaded guilty to her role in a conspiracy to defraud the government. Neal admitted that she conspired with John Dennis Sedersten, an inmate in the Christian County Jail in Ozark, Mo., and other co-conspirators to file fraudulent tax returns. All false claims but one were halted by the IRS, and the one refund issued was recovered by law enforcement agents.
Sedersten organized and led the conspiracy from within the jail. He provided his co-conspirators with specific instructions regarding how to complete and file the false federal income tax returns. The fraudulent tax returns included false W-2 information, listing employers who did not employ the individual listed on the return, and reporting wages not earned, employment taxes not withheld, and business expenses not incurred by the individual. Sedersten provided them with the EIN for JDS Enterprises, a company registered to Sedersten, under which they could report the false wages and withholdings.
Neal filed a tax return under her own name that fraudulently claimed a refund of $9,864.
Co-defendant Janet Renea Kirby, 34, of Springfield, has also pleaded guilty and awaits sentencing. Kirby filed a tax return under her own name that fraudulently claimed a refund of $18,427.
Sedersten, who pleaded guilty in a separate but related case, admitted that conspirators filed fraudulent returns that sought a total of $373,372 in refunds. Sedersten was sentenced on Aug. 17, 2016, to six years and six months in federal prison without parole for his role in the conspiracy.
This case is being prosecuted by Assistant U.S. Attorneys Casey Clark and Steven Mohlhenrich. It was investigated by IRS-Criminal Investigation.
Serial Bank Robber Sentenced in Maryland to More Than 12 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell sentenced Fletcher Dorsett, age 53, of Salisbury, Maryland to 150 months in federal prison, followed by three years of supervised release, for a series of nine bank robberies and attempted robberies. Dorsett continued to commit robberies while on escape status from a halfway house after his release for a previous federal bank robbery conviction.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Rachel Byrd of the Federal Bureau of Investigation, Baltimore Field Office. Chief Melissa R. Hyatt of the Baltimore County Police Department; Commissioner Michael Harrison of the Baltimore Police Department; Chief Edward Jackson of the Annapolis Police Department; Interim Chief Hector Velez of the Prince George’s County Police Department; and Chief Robert J. Contee, III of the Metropolitan Police Department.
According to his guilty plea, Dorsett was previously convicted of federal bank robbery charges, sentenced to eight years in prison, and placed at a halfway house in May of 2019. On July 25, 2019, Dorsett did not return to the halfway house and was placed in escape status. Dorsett was subsequently arrested on a warrant relating to that escape on August 9, 2019, and held at Piedmont Regional Jail in Virginia until he was released on September 24, 2019.
Dorsett admitted that he robbed a bank in Baltimore on July 29, 2019, while he was on escape status. After his arrest and release on September 24, 2019, Dorsett continued to rob banks in Baltimore County, Baltimore City, Prince Georges County, and Washington, D.C., and attempted to rob two other banks. In all of these bank robberies, Dorsett used a note that threatened that he had a gun. Specifically, between September 26 and October 28, 2019, Dorsett robbed banks in Washington, D.C., and in Baltimore, Annapolis, and Nottingham, Maryland, and attempted to rob banks in Lanham, Maryland and Washington, D.C.
As Dorsett left the bank in Nottingham on October 28, 2019, an off-duty police officer who happened to be in the bank pursued and detained him until on-duty Baltimore County Police officers arrived and arrested him. Dorsett agreed to be interviewed by law enforcement and admitted to robbing the nine above-referenced banks in Maryland and Washington, DC. Dorsett also identified himself in various bank surveillance images captured during the robberies.
Acting United States Attorney Jonathan F. Lenzner praised the FBI, and the Baltimore County, Baltimore City, Annapolis, Prince George’s County and Metropolitan Police Departments for their work in the investigation and thanked the State’s Attorneys for Baltimore County, Baltimore City, Prince George’s County, and Anne Arundel County, and the U.S. Attorney for Washington, D.C. for their assistance in the investigation and prosecution. Mr. Lenzner thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the federal case.
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San Angelo Tax Preparers Charged with Scamming IRSRead the Press Release
Four San Angelo tax preparers have been charged with submitting fraudulent tax returns to the IRS, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
On Wednesday, April 14 2021, a federal grand jury indicted Hugo Cesar Granados, the 60-year-old manager of Columbia Tax Service, his adult daughter, Blanca L. Granados, his adult son, Hugo Alberto Granados, and his employee, Saul Garcia-Soto, on one count each of conspiracy to defraud the United States and several counts each of aiding in the preparation of false documents. Hugo Cesar Granados, Blanca Granados, and Hugo Alberto Granados surrendered themselves to IRS – Criminal Investigations and U.S. Marshals on Thursday afternoon. Saul Garcia-Soto remains a fugitive.
According to the indictment, the elder Mr. Granados and his co-conspirators falsified their clients’ individual income tax returns, Forms 1040, in order to inflate the clients’ tax refunds. As a member of the IRS’ Refund Transfer Program, Columbia Tax Service did not charge the taxpayers anything upfront, but took their preparation fee from the refund before the remainder was issued to the taxpayer. Mr. Granados created a training manual that instructed his employees how to file fraudulent tax returns.
Mr. Granados and his co-conspirators allegedly fabricated clients’ Schedule A, itemized deductions, and Schedule C, sole proprietorship profit and loss statements. They routinely claimed the taxpayer owned a business when no such business existed, claimed unreimbursed employee expenses such as travel and per diem, and claimed business expenses related to maintenance, utilities, supplies, insurance, and professional services that were never incurred.
From 2013 to 2017, the conspirators submitted numerous fraudulent tax returns, resulting in an estimated $18 million in tax losses to the government.
“These defendants brazenly fabricated clients’ financial statements and submitted them to the IRS, resulting in artificially inflated refunds,” said Acting U.S. Attorney Prerak Shah. “Conduct like this is a slap in the face to the many hardworking Americans who pay their taxes dutifully every year. We will not stand for tax fraud, especially by authorized tax preparers.”
“These defendants made a profit by falsifying their client’s tax returns without concern of the repercussions and now face the true costs of their actions in court,” said IRS - CI Acting Special Agent in Charge Jerry Gomez of the Dallas Field Office.
An indictment is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty in a court of law.
If convicted, Hugo Cesar Granados faces up to 14 years in federal prison; Blanca Granados faces up to 14 years; Hugo Alberto Granados faces up to 17 years; and Saul Garcia-Soto faces up to 20 years.
IRS – Criminal Investigations conducted the investigation. The San Angelo Division of the Northern District of Texas is prosecuting the case.
Rock Island Man Sentenced to Prison for Firearm ChargeRead the Press Release
DAVENPORT, Iowa – On Tuesday, May 4, 2021, United States District Court Chief Judge John A. Jarvey sentenced Christopher Mateo Perez, age 29, of Rock Island, to 180 months in prison for Felon in Possession of a Firearm announced Acting United States Attorney Richard D. Westphal. Perez was ordered to serve three years of supervised release to follow his prison term as well as pay $100 to the Crime Victims’ Fund.
In August of 2019 Perez was arrested on an outstanding warrant. A search warrant was conducted on Perez’s residence and officers located a loaded Glock 17 nine-millimeter pistol and various items consistent with drug trafficking. The gun contained 17 rounds of ammunition and had been reported stolen. Perez admitted the firearm belonged to him. At the time, Perez knew he was a convicted felon, therefore he was prohibited from possessing firearms.
This matter was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of Project Safe Neighborhoods, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
Rochester Man Sentenced to 260 Months in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
ST. PAUL, Minn. – A Rochester man was sentenced today to 260 months in prison followed by eight years of supervised release for conspiracy to distribute methamphetamine.
According to court documents, from May 2019 through August 2019, John Willis Netherton, 40, was part of a conspiracy to distribute methamphetamine. As part of the conspiracy, the defendant coordinated and facilitated the delivery of methamphetamine from his co-conspirator Miguel Zamora. Netherton also distributed methamphetamine to sub-distributors. Netherton collected funds from the sale of methamphetamine, which in part were ultimately sent back to the defendant’s source of supply.
John Willis Netherton, also known as “Big John,” also known as “Wicked One,” pleaded guilty on September 4, 2020, to one count of conspiracy to distribute methamphetamine. Previously on August 24, 2020, co-conspirator Jacob Paul Williams was sentenced to 180 months imprisonment and five years of supervised release. On August 28, 2020, co-conspirator Miguel Angel Cuevas Zamora was sentenced to 120 years imprisonment and two years of supervised release. Co-conspirators Joshua Alexander Sazo, Nicholas John Hanson, Jason Edwards Hoffman, Deja Lee Benton, Andrew Robert Berndt, and Kayleigh Rea Todd have all pleaded guilty and are pending sentencing.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Susan Richard Nelson sentenced the defendant.
This case is the result of an investigation conducted by the Drug Enforcement Administration, the Rochester Police Department, the Minnesota Bureau of Criminal Apprehension, the Southeast Minnesota Violent Crimes Enforcement Team, the Olmsted County Sheriff’s Office, the South Central Drug Investigation Unit, and the Minnesota State Patrol.
Assistant U.S. Attorney Allen A. Slaughter, Jr. is prosecuting the case.
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Railroad Inspector Charged with Lying About InspectionsRead the Press Release
A Federal Railroad Administration inspector has been charged with lying on official documents, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Tremelle Sykes, 54, was indicted Tuesday on eight counts of false statements. He will make his initial appearance before U.S. Magistrate Judge David Horan Friday morning.
According to the indictment, Mr. Sykes was employed by the FRA as a Hazardous Materials Safety Inspector assigned to inspect northeast Texas railroads and shippers for compliance with regulations pertaining to the transport of hazardous materials such as ethanol, crude oil, and other toxic or poisonous substances.
On at least eight occasions, Mr. Sykes allegedly falsified inspection reports, claiming to have conducted inspections that never actually occurred. The reports, filed over the course of six months in early 2019, covered railyard companies in Dallas, Fort Worth, Garland, Cleburne, Gunter, and Saginaw.
An indictment is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Sykes is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 40 years in federal prison, five years per count.
The Department of Transportation’s Office of Inspector General conducted the investigation. Assistant U.S. Attorney Nicholas Bunch is prosecuting the case.
Physician Indicted in $6 Million Medicare Fraud SchemeRead the Press Release
A California woman was arrested Thursday in Los Angeles on criminal health care fraud charges arising from her false home health certifications and related fraudulent billings to Medicare.
According to court documents, Lilit Gagikovna Baltaian, 58, of Porter Ranch, operated two medical clinics in the Los Angeles area. From approximately January 2012 to July 2018, Baltaian allegedly falsely certified patients to receive home health care from at least four Los Angeles area home health agencies. Baltaian’s false certifications were used by the home health agencies to fraudulently bill Medicare for the unnecessary home health care. Baltaian allegedly received a cash benefit related to these referrals and also submitted claims to Medicare for signing the fraudulent certifications and for patient visits and injections that were not needed and/or provided.
As further alleged in court documents, between January 2012 and July 2018, four home health agencies used Baltaian’s false certifications to submit fraudulent claims to Medicare, resulting in a total of approximately $6,029,674 paid on those claims.
Baltaian is charged with four counts of health care fraud. If convicted, Baltaian faces a maximum penalty of 10 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Tracy L. Wilkison of the Central District of California; Assistant Director in Charge Kristi Koons Johnson of the FBI’s Los Angeles Field Office; and Special Agent in Charge Timothy DeFrancesca of the U.S. Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Los Angeles Regional Office made the announcement.
The FBI and HHS-OIG are investigating the case, which was charged as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program nearly $19 billion.
Trial Attorney Emily Culbertson of the Criminal Division’s Fraud Section is 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.
Pennsylvania Man Pleads Guilty to Sex Offense Against A MinorRead the Press Release
BECKLEY, W.Va. – A Pennsylvania man pleaded guilty today to travel in interstate commerce to engage in illicit sexual activity with a minor. Gregory Thomas O’Connor, 47, of Stahlstown, Pennsylvania was charged by a single-count Information in April 2021.
According to the plea agreement, O’Connor admitted that on August 7, 2020, he initiated contact with a person on a Kik Messaging group for West Virginia teens. Believing a person to be a 13-year-old girl from Beckley, O’Connor engaged in conversations over the next six weeks wherein he told the minor he wanted to meet her to engage in sexual activity. O’Connor also coached her on masturbation and watching pornography in order to prepare for their sexual encounter. On September 2, 2020, O’Connor intended to travel to Beckley to meet the minor. He drove from Pennsylvania to Fairmont, but then had to turn around due to a work emergency. Following that time, he continued to discuss traveling at a future date to meet the girl for sexual activity.
If the plea agreement is accepted by the Court, O’Connor will be sentenced to 97 months in prison followed by 15 years of supervised release when he is sentenced in September 2021. He will also be required to register as a sex offender.
Acting United States Attorney Lisa G. Johnston made the announcement. Assistant United States Attorney Jennifer Rada Herrald is handling the prosecution.
The FBI Child Exploitation and Human Trafficking Task Force handled the investigation. United States District Judge Frank W. Volk presided over the hearing.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-00073.
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Ohio man sentenced to prison for mailing explicit threats to judgesRead the Press Release
COLUMBUS, Ohio – Shawn R. Marshall, 40, formerly of Akron, was sentenced in U.S. District Court today to 46 months in prison for mailing threatening communications from prison.
In 2016, Marshall was incarcerated with the Ohio Department of Rehabilitation and Correction in Lucasville, Ohio, serving a 16-year sentence for rape and kidnapping.
According to court documents, in April 2016, Marshall mailed a letter to a judge in Hamilton, Ohio, which contained the following threat: “In the name of Allah, I am going to hunt you down and cut your f***ing head off.” The letter was signed, “ISIS.”
In June 2016, Marshall mailed a second threatening letter, this time to the Ohio Supreme Court, threatening to rape the female justices on the Court. Marshall included a drawing of an anarchist symbol that matches a tattoo on his chest, and also put bodily fluids wrapped in plastic in the envelope to help identify himself and make the threat more credible. DNA testing confirmed the bodily fluids belonged to Marshall.
During law enforcement interviews, Marshall also admitted to sending threats to media outlets in Dayton and Cincinnati. Additionally, he admitted sending a letter to a Cleveland, Ohio, courthouse that included a mouse head.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed by U.S. District Judge Edmund A. Sargus, Jr. Assistant Deputy Criminal Chief Jessica W. Knight is representing the United States in this case.
North Carolina Tax Preparer Sentenced to Prison for Defrauding IRS and Co-Conspirator Pleads GuiltyRead the Press Release
A North Carolina return preparer was sentenced today to 22 months in prison for conspiring to defraud the IRS and one of her co-conspirators pleaded guilty on Wednesday for her role in the scheme.
Karen Marie Jones of Durham, North Carolina, was sentenced today to conspiring to defraud the United States. According to court documents and statements made in court, Jones owned Jones and Stone Taxes, a tax preparation business in Durham. From 2012 through 2017, Jones and two other return preparers at Jones and Stone, Andrea Marie Pasley and Audrey Renetta Odom, conspired to prepare false returns for clients. The returns fraudulently lowered the clients’ tax liabilities or inflated their refunds by claiming false education credits or dependents or by manipulating the clients’ income to qualify for larger earned income tax credits. Under the scheme, some clients were charged up to $3,000 for preparing returns. Based on an analysis of the falsely claimed education credits, the tax loss is approximately $1.2 million.
Pasley pleaded guilty Wednesday for her role in the scheme, and is scheduled to be sentenced on Aug. 11. She faces a maximum penalty of five years in prison and 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.
Odom previously pleaded guilty to conspiracy to defraud the IRS in December 2020, and is scheduled to be sentenced in June 2021.
In addition to the term of imprisonment, U.S. District Judge Catherine C. Eagles ordered Jones to serve three years of supervised release and to pay approximately $1,264,493 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina made the announcement.
IRS-Criminal Investigation investigated the case.
Assistant Chief Todd Ellinwood and Trial Attorney Kavitha Bondada of the Tax Division prosecuted the case.
North Carolina Tax Preparer Sentenced to Prison for Defrauding IRS and Co-Conspirator Pleads GuiltyRead the Press Release
WASHINGTON – A North Carolina return preparer was sentenced today to 22 months in prison for conspiring to defraud the IRS and one of her co-conspirators pleaded guilty on Wednesday for her role in the scheme.
Karen Marie Jones of Durham, North Carolina, was sentenced today to conspiring to defraud the United States. According to court documents and statements made in court, Jones owned Jones and Stone Taxes, a tax preparation business in Durham. From 2012 through 2017, Jones and two other return preparers at Jones and Stone, Andrea Marie Pasley and Audrey Renetta Odom, conspired to prepare false returns for clients. The returns fraudulently lowered the clients’ tax liabilities or inflated their refunds by claiming false education credits or dependents or by manipulating the clients’ income to qualify for larger earned income tax credits. Under the scheme, some clients were charged up to $3,000 for preparing returns. Based on an analysis of the falsely claimed education credits, the tax loss is approximately $1.2 million.
Pasley pleaded guilty Thursday for her role in the scheme and is scheduled to be sentenced on Aug. 11. She faces a maximum penalty of five years in prison and 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.
Odom previously pleaded guilty to conspiracy to defraud the IRS in December 2020 and is scheduled to be sentenced in June 2021.
In addition to the term of imprisonment, U.S. District Judge Catherine C. Eagles ordered Jones to serve three years of supervised release and to pay approximately $1,264,493 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina made the announcement.
IRS-Criminal Investigation investigated the case.
Assistant Chief Todd Ellinwood and Trial Attorney Kavitha Bondada of the Tax Division prosecuted the case.
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Nineteen Brazilian Nationals Charged in Nationwide Conspiracy to Open Fraudulent Driver Accounts at Leading Rideshare and Delivery Service CompaniesRead the Press Release
BOSTON – Nineteen Brazilian nationals were charged today with engaging in a nationwide conspiracy to set up fraudulent driver accounts with multiple rideshare and delivery service companies using stolen identities, and to rent or sell those accounts to drivers who might not otherwise qualify to drive for those services.
The alleged scheme also involved using the fraudulent accounts to exploit the company’s referral bonus programs, and using automated “bots” and GPS spoofing technology to increase the income earned from the fraudulent driver accounts. The government estimates that more than 2,000 victims’ identities were stolen and used as part of the scheme.
“The scheme alleged in today’s charges was extensive, violated customers’ privacy, and enabled unqualified drivers to work for rideshare and food delivery services,” said Acting U.S. Attorney Nathaniel R. Mendell. “Millions of us rely on these services every day for transportation and to have meals and groceries delivered to our homes. They are an important part of the economy, especially now. We allege that the conspirators took advantage of that by stealing customers’ identities while making deliveries and using those stolen identities to set up fraudulent accounts. That means accounts for unqualified drivers who could not meet minimum qualifications, were not eligible to work in the United States, or could not pass a background check. That’s illegal. I encourage individuals who believe they may be a victim of this fraud to contact my Office.”
“These individuals are accused of executing a nationwide con in which they dragged thousands of innocent people into their scheme by stealing their identities. They thought it would be an easy way to generate some quick money, but in doing so they potentially compromised public safety by putting people behind the wheel who couldn’t get jobs with these companies on their own,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “This massive fraud ring would have been more difficult to detect without the assistance of the victim companies in this case who are making a good faith effort to root out fraud and enhance their customers’ safety.”
The complaint alleges that beginning by at least January 2019, and continuing through at least April 2021, the defendants conspired with each other and with additional conspirators to defraud at least five different rideshare and delivery companies. The scheme involved obtaining images of victims’ driver’s licenses and Social Security numbers, creating fraudulent driver accounts using these identifiers, and renting or selling those accounts. Generally the accounts were rented or sold to individuals who did not otherwise qualify to drive for the rideshare and delivery services because they did not meet minimum qualifications, were not eligible to work in the United States, or could not pass a background check.
The conspirators allegedly coordinated with each other on the prices they charged drivers to use the fraudulent accounts, and shared tips with each other on how to circumvent the companies’ fraud detection systems. The conspirators are also alleged to have fraudulently obtained referral bonuses from the companies by creating fraudulent driver accounts for the sole purpose of referring other fraudulent driver accounts. The conspirators allegedly used “bots” and GPS spoofing technology to exploit the rideshare and delivery companies’ systems. A “bot” is a software application that runs automated tasks over the Internet. GPS spoofing technology allows a user to fake the user’s location.
As a result of the scheme, Internal Revenue Service Forms 1099 were generated in victims’ names for income the conspirators earned from the rideshare and delivery companies.
The following defendants were arrested and charged by criminal complaint with one count of conspiracy to commit wire fraud:
- Wemerson Dutra Aguiar, 25, a Brazilian national formerly residing in Lynn and Woburn, Mass.;
- Priscila Barbosa, 35, a Brazilian national residing in Saugus, Mass.;
- Edvaldo Rocha Cabral, 41, a Brazilian national residing in Lowell, Mass.;
- Clovis Kardekis Placido, 37, a Brazilian national residing in Citrus Heights, Cali.;
- Guilherme Da Silveira, 28, a Brazilian national residing in Revere, Mass.;
- Flavio Candido Da Silva, 35, a Brazilian national residing in Revere, Mass.;
- Altacyr Dias Guimaraes Neto, 34, a Brazilian national residing in Kissimmee, Fla.;
- Bruno Proencio Abreu, 28, a Brazilian national residing in Saugus, Mass.;
- Jordano Augusto Lima Guimaraes, 34, a Brazilian national residing in Salem, Mass.;
- Alessandro Felix Da Fonseca, 25, a Brazilian national residing in Revere, Mass.;
Nine defendants remain at large.
If you believe that you may be a victim of the allegations in this case, please visit https://www.justice.gov/usao-ma/victim-and-witness-assistance-program/us-v-wemerson-dutra-aguiar-and-us-v-priscila-barbosa-et-al
The charges of conspiracy to commit wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release, and a fine of 250,000 or twice the gross gain or loss from the offense, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Mendell and FBI Boston SAC Bonavolonta made the announcement today. Significant assistance was provided by the Massachusetts State Police, Concord Police Department, Lexington Police Department, Plymouth Police Department, Wilmington Police Department, Marlborough Police Department, Village of Rye Brook (N.Y.) Police Department, U.S. Customs and Border Protection, U.S. Postal Inspection Service and the National Crime Insurance Bureau. Assistant U.S. Attorneys Kristen A. Kearney and David M. Holcomb of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New York Man Pleads Guilty to Fentanyl and Heroin TraffickingRead the Press Release
BOSTON – A New York man pleaded guilty today in federal court in Boston to heroin and fentanyl possession and distribution charges.
James De La Cruz, 30, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin and 400 grams or more of fentanyl and one count of possession with intent to distribute one kilogram or more of heroin and 400 grams or more of fentanyl. U.S. District Judge Richard G. Stearns scheduled sentencing for Oct. 6, 2021.
In September and October 2019, De La Cruz spoke with a cooperating witness several times and met with the cooperating witness to arrange a large drug shipment from New York to the Boston area. On Oct. 21, 2019, De La Cruz and his co-defendant Juan Santos Roque drove from New York to Peabody, Mass. with approximately 10 kilograms of fentanyl and six kilograms of heroin in a hidden compartment in Santos Roque’s vehicle. After meeting with the cooperating witness, law enforcement agents arrested both men.
Santos Roque pleaded guilty in October 2020 and is scheduled to be sentenced on May 12, 2021.
The charges of conspiracy to distribute and possession with intent to distribute one kilogram or more of heroin and 400 grams or more of fentanyl carry a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the Peabody Police Department. Assistant U.S. Attorney Stephen W. Hassink of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
New York Hedge Fund Founder Sentenced for Bankruptcy FraudRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that DANIEL KAMENSKY, the founder and former manager of New York-based hedge fund Marble Ridge Capital (“Marble Ridge”), was sentenced today in Manhattan federal court to six months in prison for engaging in fraud and extortion to pressure a rival bidder to abandon its higher bid for assets in connection with Neiman Marcus’s bankruptcy proceedings so that Marble Ridge could obtain those assets for a lower price. KAMENSKY pled guilty on February 3, 2021, before United States District Judge Denise L. Cote, who imposed today’s sentence.
U.S. Attorney Audrey Strauss said: “Daniel Kamensky committed bankruptcy fraud – undermining the integrity of bankruptcy proceedings and violating his fiduciary responsibility – in an effort to take extra profits for himself and his hedge fund. As he himself predicted, this fraud has now landed Daniel Kamensky in prison.”
As alleged in the Complaint, the Information, and statements made in court:
DANIEL KAMENSKY was the principal of Marble Ridge, a hedge fund with assets under management of more than $1 billion that invested in securities in distressed situations, including bankruptcies. Prior to opening Marble Ridge, KAMENSKY worked for many years as a bankruptcy attorney at a well-known international law firm, and as a distressed debt investor at prominent financial institutions.
The Neiman Marcus Bankruptcy
Neiman Marcus, an American chain of luxury department stores with stores located across the United States, filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”) in May 2020. At the outset of the bankruptcy, Marble Ridge, through KAMENSKY, applied to be on the Official Committee of Unsecured Creditors (the “Committee”) and was thereafter appointed to be a member of the Committee. As a member of the Committee, KAMENSKY had a fiduciary duty to represent the interests of all unsecured creditors as a group.
During the bankruptcy process, the Committee had negotiated with the owners of Neiman Marcus to obtain certain securities, known as MyTheresa Series B Shares (the “MYT Securities”), and ultimately, the Committee was successful in coming to a settlement to obtain 140 million shares of MYT Securities for the benefit of certain unsecured creditors of the bankruptcy estate. In July 2020, KAMENSKY was negotiating with the Committee for Marble Ridge to offer 20 cents per share to purchase MYT Securities from any unsecured creditor who preferred to receive cash, rather than MYT Securities, as part of that settlement.
Kamensky’s Fraudulent Scheme
On July 31, 2020, KAMENSKY learned that a diversified financial services company headquartered in New York, New York (the “Investment Bank”), had informed the Committee that it was interested in bidding a price between 30 and 40 cents per share – substantially higher than KAMENSKY’s bid – to purchase the MYT Securities from any unsecured creditor who was interested in receiving cash.
That afternoon, KAMENSKY sent messages to a senior trader at the Investment Bank (“IB Employee-1”) telling him not to place a bid, and followed those messages up with a phone call with IB Employee-1 and a senior analyst of the Investment Bank (“IB Employee-2,” and collectively the “Employees”). During that call, KAMENSKY asserted that Marble Ridge should have the exclusive right to purchase MYT Securities, and he threatened to use his official role as co-chair of the Committee to prevent the Investment Bank from acquiring the MYT Securities. KAMENSKY also stated that Marble Ridge had been a client of the Investment Bank in the past but that if the Investment Bank moved forward with its bid, then Marble Ridge would cease doing business with the Investment Bank.
The Investment Bank thereafter decided not to make a bid to purchase MYT Securities and informed the legal adviser to the Committee of its decision. The Investment Bank further told the legal adviser it made that decision because KAMENSKY – a client of the Investment Bank – had asked them not to.
Advisers to the Committee informed counsel for Marble Ridge of their call with the Employees, and after speaking with KAMENSKY, counsel for Marble Ridge falsely informed the advisers that KAMENSKY had not asked the Employees not to bid, but instead had told them to place a bid only if they were serious. Later that evening, KAMENSKY contacted IB Employee-1 and attempted to influence what IB Employee-1 would tell others, including the Committee and law enforcement, about KAMENSKY’s attempt to block the Investment Bank’s bid for the MYT Securities. KAMENSKY said at the outset of the call, in substance, “this conversation never happened.” During the call, KAMENSKY asked IB Employee-1 to say falsely that IB Employee-1 had been mistaken and KAMENSKY had actually suggested that the Investment Bank bid only if it were serious, and made comments including the following: “Do you understand . . . I can go to jail?” “I pray you tell them that it was a huge misunderstanding, okay, and I’m going to invite you to bid and be part of the process.” “But I’m telling you . . . this is going to the U.S. Attorney’s Office. This is going to go to the court.” “[I]f you’re going to continue to tell them what you just told me, I’m going to jail, okay? Because they’re going to say that I abused my position as a fiduciary, which I probably did, right? Maybe I should go to jail. But I'm asking you not to put me in jail.”
During a subsequent interview with the Office of the United States Trustee, which was conducted under oath and in the presence of counsel, KAMENSKY stated that his calls to IB Employee-1 were a “terrible mistake” and “profound errors in lapses of judgment.”
After this series of events, Marble Ridge resigned from the Committee and advised its investors that it intended to begin winding down operations and returning investor capital.
* * *
In addition to his prison term, KAMENSKY, 48, of Roslyn, New York, was sentenced to six months of supervised release on home confinement and ordered to pay a fine of $55,000.
Ms. Strauss praised the work of the FBI. Ms. Strauss further thanked the Office of United States Trustee and the Securities and Exchange Commission for their cooperation and assistance in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Richard Cooper and Daniel Tracer are in charge of the prosecution.
NDTX Round up: April 30 – May 6Read the Press Release
SENTENCING – CHRISTOPHER TRAJUAN COUSINS
On May 5, Christopher Trajuan Cousins, 28, was sentenced to 165 months in federal prison for conspiracy to interfere with commerce by robbery. In February 2018, Cousins and two co-conspirators robbed a Sprint store in Garland at gunpoint. The co-conspirators stole smartphones valued at approximately $13,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Erica Hilliard prosecuted the case.
GUILTY PLEA – OSWALDO AGUILERA-ADAME
On May 4, Oswaldo Aguilera-Adame, 29, pleaded guilty to possession with the intent to distribute a controlled substance. In June 2020, Aguilera-Adame controlled an apartment which received multiple kilograms of shipments of methamphetamine. Agents executed a search warrant of the apartment and arrested Aguilera-Adame outside of the residence. Inside the apartment, law enforcement located 18 kilograms of methamphetamine, 52 quarts of liquid methamphetamine, 24-gallon sized bags of methamphetamine, and $152,840 in drug proceeds. The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney John Kull is prosecuting the case.
SENTENCING – ARMANDO CONTRERAS-MARTINEZ
On May 5, Armando Contreras-Martinez, 27, was sentenced to 180 months in federal prison for conspiracy to possess with intent to distribute methamphetamine. In July 2018, federal agents executed a search warrant at Contreras-Martinez’s residence. Law enforcement recovered two firearms, 5.5 kilograms of methamphetamine, and equipment used in the methamphetamine conversion process. Additionally, law enforcement located cut-up gas tanks and wheel rims that had been used to transport methamphetamine into the United States. The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Suzanna Etessam prosecuted the case.
Member of White Supremacist Gang Pleads Guilty to Violent Assault and Conspiracy to Sell FirearmsRead the Press Release
A member of the Aryan Circle (AC) pleaded guilty Thursday to his role in an October 2016 violent assault, as well as conspiring to sell firearms to a convicted felon. Another individual pleaded guilty on April 19, to conspiring with members of the AC to sell methamphetamine.
Rodney Shane Holt, aka “Turbo,” 48, of Tyler, Texas, pleaded guilty to assault resulting in serious bodily injury in aid of racketeering, as well as conspiracy to sell firearms to a convicted felon. Holt committed the assault as part of his membership in the AC, a gang that operates in Texas and other states throughout the country. According to court documents, Holt planned and participated in the events surrounding a violent beating of another AC member who wanted to switch his gang affiliation, or “patch over,” from the AC to a different gang. Holt and other AC members carried out the attack in order to “X,” or remove the AC member from the gang, because joining another organization violated the AC’s rules. Holt also sold high caliber firearms to convicted felons.
Eulalio Torres-Cadenas, aka “Yayo,” 43, of Houston, Texas, pleaded guilty to conspiracy to possess with intent to distribute a controlled substance, namely 500 grams or more of a mixture or substance containing methamphetamine. According to court documents, Torres-Cadenas supplied an AC member with multiple kilograms of methamphetamine in 2016, in the area of Houston, Texas. The AC member then went on to distribute the methamphetamine to buyers in Louisiana, including other AC members. The drug conspiracy that Torres-Cadenas pleaded to was uncovered as part of Operation Noble Virtue, an investigation that has focused on the criminal conduct of the AC’s leadership.
The AC is a violent, white supremacist organization that originated in the Texas Department of Corrections and operates in federal prisons across the country, as well as outside prisons in states including Texas, Arkansas, Louisiana, and Missouri. The AC enforces its rules and promotes discipline among its members, prospects, and associates through murder, attempted murder, assault, and threats. Members, and oftentimes associates, are required to follow the orders of higher-ranking members without question.
Sentencing dates have not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Holt faces maximum sentences of 20 years in prison for the assault in aid of racketeering and five years in prison for the firearms conspiracy, while Torres-Cadenas faces a mandatory minimum sentence of 10 years in prison, and a maximum sentence of life in prison.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division and Acting U.S. Attorney Nicholas J. Ganjei for the Eastern District of Texas made the announcement.
This case is being investigated by an Organized Crime Drug Enforcement Task Force (OCDETF) consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Federal Bureau of Prisons; Texas Department of Public Safety; Houston Police Department-Gang Division; Montgomery County (TX) Precinct One Constable’s Office; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Texas Department of Criminal Justice; New Jersey Department of Corrections-Special Investigations Division; Indiana State Police; Fort Smith (AR) Police Department; Arkansas Department of Corrections; Arnold (MO) Police Department; Jefferson County (MO) Sheriff’s Department; St. Louis Metropolitan Police Department; St. Louis County (MO) Police Department; Indiana Department of Corrections; Carrollton (TX) Police Department; Montgomery County (TX) Sheriff’s Office; Travis County (TX) Sheriff’s Office; Tarrant County (TX) Sheriff’s Office; Evangeline Parish (LA) Sheriff’s Office; Smith County (TX) Sheriff’s Office; McCurtain County (OK) Sheriff’s Office; Montgomery County (TX) District Attorney’s Office; Liberty County (TX) District Attorney’s Office; Harris County (TX) District Attorney’s Office; Mercer County (NJ) District Attorney’s Office; Evangeline Parish (LA) District Attorney’s Office; and the Sebastian County (AR) District Attorney’s Office.
Trial Attorneys Bethany Lipman, Rebecca Dunnan and Alexander Gottfried of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Christopher Rapp of the Eastern District of Texas are prosecuting the case.
Man from Nambe sentenced to 15 years in federal prison for sexual abuse in Indian CountyRead the Press Release
ALBUQUERQUE, N.M. – Yvon Loretto, 62, of Nambe, New Mexico, and an enrolled member of the Pueblo of Nambe, was sentenced in federal court on May 5 to 15 years in prison for abusive sexual contact in Indian Country.
Loretto pleaded guilty on Aug. 11, 2020. According to the plea agreement, on or between Oct. 1, 2016, and Oct. 31, 2016, Loretto sexually abused the victim, who at the time was less than 12 years old. The assault occurred on the Pueblo of Nambe in Rio Arriba County, New Mexico.
Upon his release from prison, Loretto will be subject to eight years of supervised release and must register as a sex offender.
The Santa Fe Resident Agency of the FBI investigated this case. Assistant U.S. Attorney Joseph Spindle prosecuted the case.
Man Indicted for Shooting Gun on Federal Property During the May 2020 ProtestRead the Press Release
INDIANAPOLIS - A federal grand jury in Indianapolis, returned an indictment charging an Indianapolis man with a Felon in Possession of a Firearm.
According to court documents, Tyrone Ross, 29, was in downtown Indianapolis on May 30, 2020, protesting the in-custody death of George Floyd in Minneapolis, Minnesota on May 25, 2020. The Federal Protective Services (FPS) cameras associated with the Birch Bayh Federal Building on Ohio Street, captured the activities of peaceful and non-peaceful protesters.
The indictment alleges that at approximately 11:15 p.m., the FPS cameras captured a group of approximately seven individuals who began assembling on federal property at the southeast corner of the federal building. As the group began to walk west on the north side of Ohio Street, a person in the group, later identified as Ross, pulled out a firearm from under his clothing and fired at least four shots across Ohio Street towards the Yolk Restaurant on the south side of Ohio Street. At the time, Ohio Street was filled with pedestrians and vehicles. After the shots were fired, the other members of the group began to run west as other pedestrians ran in different directions. The indictment further alleges that Ross then began running as well and caught up with the original group as they all ran toward the southwest corner of the federal building at the corner of Ohio Street and Meridian Street. As Ross continued to run on federal property, he again raised the handgun straight in the air and fired at least one additional round.
“Randomly shooting a gun across a busy street and crowded sidewalk at any time is senseless and reckless,” said Acting U.S. Attorney John E. Childress. “This type of behavior cannot be justified or tolerated in a civil society and will be prosecuted to the fullest extent of the law.”
“The charge against Mr. Ross demonstrates the tenacity of the FBI and our law enforcement partners in identifying, investigating, and disrupting individuals who incite violence and threaten the safety of other citizens,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “We will continue to devote time and resources to gather information and locate those who engage in such criminal activity.”
Ross is charged with Felon in Possession of a Firearm. If convicted, he faces a maximum $250,000 fine, 10 years in prison, and 3 years supervised release. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorney, Peter A. Blackett is 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.
Leader of Armed Home Invasion Robbery Crew Sentenced for RICO Conspiracy and Other Violent CrimesRead the Press Release
A Texas man was sentenced to 40 years in prison for his leadership role in an armed home invasion robbery crew that traveled the United States targeting families of South Asian and East Asian descent.
Juan Olaya, 41, of Houston, Texas, was convicted by a federal jury of one count of racketeering conspiracy, four counts of assault with a dangerous weapon in aid of racketeering, and four counts of brandishing a firearm during and in relation to a crime of violence on March 9, 2020. According to evidence presented at trial, Olaya acted as the road boss for an enterprise that committed a string of armed home invasions in Michigan, Georgia, New York, New Jersey, and Texas from August through December of 2014. Olaya recruited other crew members and assigned roles to those members. Olaya and crew members then traveled to specific locations, conducted surveillance, and executed the robberies.
“The Criminal Division is committed to protecting the American public from violent criminals, particularly when those criminals target individuals based on their ethnicity or race,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “We hope that this prosecution, trial conviction, and sentence will serve as a deterrent to others who might think about engaging in similar violent conduct.”
“Juan Olaya and his robbery crews committed a host of violent crimes that terrorized innocent victims across the United States,” said Special Agent in Charge Timothy Waters of the FBI’s Detroit Field Office. “His crimes are made more disturbing because the victims were chosen based on their ethnicity or race. The FBI will continue to work with our federal, state, and local partners to investigate and hold accountable predators like Olaya who threaten the safety of our communities.”
The organizer of the crew, Chaka Castro, ran the enterprise from 2011 through 2014. Castro was convicted by a federal jury on June 4, 2019, and was sentenced to 37 years in prison on Oct. 28, 2019. Castro generated lists of robbery targets in various states around the county, specifically families whose last names were common to certain ethnicities and assigned crews to carry out armed robberies inside the families’ homes.
The crew utilized a particular modus operandi in each of the robberies. Members preferred to rob homes while the families were present so they could use their victims to point out valuable items. Members disguised their appearance with clothing and bandanas so that victims would have difficulty identifying them. They openly carried and brandished firearms to gain control of the victims and then immediately corralled the victims, including children, into one location in the home. At least one crew member then restrained the victims using duct tape and threats of violence, as one or more others ransacked the home in search of cash, jewelry, and electronics. The crew organized their trips to involve multiple home invasion robberies over a series of days.
The FBI’s Ann Arbor Office investigated the case with the assistance of federal agencies including U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations and U.S. Secret Service, and local law enforcement agencies in Michigan, including Washtenaw County Sherriff’s Office, Ann Arbor Police Department and Canton Police Department; local law enforcement agencies in Ohio, including Beachwood Police Department; local law enforcement agencies in Georgia, including the Cobb County District Attorney’s Office, Cobb County Police Department, Gwinnett County Police Department, Duluth Police Department and Milton Police Department; local law enforcement agencies in New York, including Nassau County Police Department; the Tennessee Highway Patrol and local law enforcement agencies in Texas including Allen Police Department, Coppell Police Department, Flower Mound Police Department, Carrollton Police Department, Lewisville Police Department and Southlake Police Department.
Trial Attorneys Conor Mulroe and Bethany Lipman of the Criminal Division’s Organized Crime and Gang Section prosecuted the case.
Lame Deer man admits manslaughter crime in vehicle death of womanRead the Press Release
UPDATE: The defendant in this case, Jerard David Threefingers, ultimately withdrew his guilty plea and the case went to a jury trial, where he was acquitted on Dec. 14, 2021 of the charge alleged in the indictment described in the press release below.
BILLINGS – A Lame Deer man accused in the death of a woman who was struck and killed by his car on the Northern Cheyenne Indian Reservation pleaded guilty to charges today, Acting U.S. Attorney Leif M. Johnson said.
Jerard David Threefingers, 31, pleaded guilty to involuntary manslaughter, as charged in an indictment. Threefingers faces a statutory maximum of eight years in prison, a $250,000 fine and three years of supervised release. A plea agreement filed in the case calls for a term of five years of probation to be imposed if the federal district court judge accepts the agreement at sentencing. The judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. District Judge Susan P. Watters presided. Judge Watters ordered Threefingers released and set sentencing for Sept. 17.
In court documents filed in the case, the government alleged that on March 6, 2020, Threefingers was at a Muddy Cluster house, on the Northern Cheyenne Indian Reservation, where he was hanging out and drinking with the victim, identified as Jane Doe, and others. Threefingers and Doe argued, and he drove away in a car. Threefingers returned, Doe came outside and they continued to argue at the car. Doe attempted to punch at Threefingers through the window and then grabbed the handle of the car door. Threefingers started to drive away.
The government further alleged that Doe continued to hang onto the handle and that her hand became lodged in it. Doe fell and got caught under the car. Threefingers picked up Doe and drove her to a relative’s house. An ambulance was called, and Doe was pronounced dead. An autopsy determined the cause of death was multiple blunt force trauma.
Assistant U.S. Attorney Bryan T. Dake is prosecuting the case, which was investigated by the Bureau of Indian Affairs.
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Kinnear Man Sentenced to 42 Months on Assault ChargeRead the Press Release
Acting United States Attorney Bob Murray announced today that SHAYNE KYLE ARMAJO, age 34 of Kinnear, Wyoming was sentenced to 42 months of imprisonment, followed by three years of supervised release, by U.S. District Court Chief Judge Scott W. Skavdahl. A jury found Armajo guilty in February of assaulting his uncle with a knife.
In October 2020, Armajo and his uncle had been drinking heavily and were driving home from visiting friends when an argument about money ensued. The pair pulled to the side of the road where they exited the uncle’s truck, who had been driving, and continued arguing Armajo stabbed his uncle in the leg with a knife. Shortly after the stabbing, Armajo left the scene in his uncle’s truck. A passerby later spotted an unresponsive man lying by the side of the road, on the Wind River Indian Reservation, and called 911. The uncle was life-flighted to Wyoming Medical Center in Casper due to the significant loss of blood. He survived the assault.
“Even though both men had been drinking heavily and should not have been operating a motor vehicle, the fact that Armajo left his uncle for dead is extremely concerning. Because of his reckless behavior, he nearly killed a man and could have injured others while driving drunk,” said Acting U.S. Attorney Bob Murray. “Thanks to the passerby, the FBI and Wind River Police Department, the victim survived, and his attacker was held accountable.”
The case was investigated by the Federal Bureau of Investigation and the Wind River Police Department. The case was prosecuted by Assistant United States Timothy J. Forwood.
Justice Department Proposes New Regulation to Update Firearm DefinitionsRead the Press Release
WASHINGTON – The Department of Justice today issued a notice of proposed rulemaking that would update the definitions of “firearm” and related parts for the first time since 1968. The proposed rule would modernize the definition of “frame or receiver” and help close a regulatory loophole associated with the un-serialized privately made firearms that are increasingly being recovered at crime scenes across the country. These unmarked firearms, known as “ghost guns,” are often assembled from kits that are sold without background checks, making them easily acquired by criminals who otherwise would not be permitted to possess a firearm.
“We are committed to taking commonsense steps to address the epidemic of gun violence that takes the lives of too many people in our communities,” said Attorney General Merrick B. Garland. “Criminals and others barred from owning a gun should not be able to exploit a loophole to evade background checks and to escape detection by law enforcement. This proposed rule would help keep guns out of the wrong hands and make it easier for law enforcement to trace guns used to commit violent crimes, while protecting the rights of law-abiding Americans. Although this rulemaking will solve only one aspect of the problem, we have an obligation to do our part to keep our families and our neighborhoods safe from gun violence.”
As the proposed rule explains, from 2016 to 2020, more than 23,000 un-serialized firearms were reported to have been recovered by law enforcement from potential crime scenes — including in connection with 325 homicides or attempted homicides. The proposed rule, once implemented, would help address the proliferation of these un-serialized firearms in three ways:
- To help keep guns from being sold to convicted felons and other prohibited purchasers, the rule would make clear that retailers must run background checks before selling kits that contain the parts necessary for someone to readily make a gun at home.
- To help law enforcement trace guns used in a crime, the rule would require that manufacturers include a serial number on the firearm “frame or receiver” in easy-to-build firearm kits.
- To help reduce the number of “ghost guns” on our streets, the rule would set out requirements for federally licensed firearms dealers to have a serial number added to 3D printed guns or other un-serialized firearms they take into inventory.
Once the proposed rule is published in the Federal Register, the public will have 90 days to submit comments. The Notice of Proposed Rulemaking can be viewed here.
To learn more about the rulemaking process, please see the
attached.Jury Convicts Iranian National for Illegally Exporting Military Sensitive ItemsRead the Press Release
SAN ANTONIO – In San Antonio, a federal jury convicted Mehrdad Ansari, a 39-year-old Iranian citizen and a resident of the United Arab Emirates and Germany, for scheming to obtain military sensitive parts for Iran in violation of the Iranian Trade Embargo. These parts had dual-use military and civilian capability and could be used in such systems as nuclear weapons, missile guidance and development, secure tactical radio communications, offensive electronic warfare, military electronic countermeasures (radio jamming), and radar warning and surveillance systems.
The jury convicted Ansari of one count of conspiracy to violate the Iranian Transaction Regulations (ITR), one count of conspiracy to commit wire fraud, one count of conspiracy to defraud the U.S. Department of the Treasury and two counts of aiding and abetting the making of false statements. Evidence presented during trial revealed that Ansari attempted to transship cargo obtained from the U.S. by co-defendants Taiwanese citizen Susan Yip, aka Susan Yeh, and Iranian citizen Mehrdad Foomanie, aka Frank Foomanie, using Ansari’s companies, Gulf Gate Sea Cargo L.L.C. and Global Merchant L.L.C., located in Dubai, United Arab Emirates.
From October 9, 2007, to June 15, 2011, primarily Yip and Foomanie obtained or attempted to obtain from companies worldwide over 105,000 parts valued at approximately $2,630,800 involving more than 1,250 transactions. The defendants conducted 599 transactions with 63 different U.S. companies in which they obtained or attempted to obtain parts from U.S. companies without notifying the U.S. companies these parts were being shipped to Iran or getting the required U.S. government license to ship these parts to Iran.
At no time did Yip, Foomanie or Ansari, individually or through any of their companies, ever apply for or receive either a required U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) license or Department of Commerce export license to ship any item listed in this indictment to the Republic of Iran.
Iranian Transaction Regulations prohibit, among other things, the exportation, re-exportation, sale or supply, directly or indirectly, to Iran or the Government of Iran, of any goods, technology or services from the U.S. or by a U.S. person. The embargo also prohibits any transaction by any U.S. person or within the U.S. that evades or avoids, or has the purpose of evading or avoiding, any prohibition set forth in the Executive Orders.
John C. Demers, Assistant Attorney General for National Security; U.S. Attorney Ashley C. Hoff; FBI San Antonio Division Special Agent in Charge Christopher Combs; Homeland Security Investigations (HSI) Acting Special Agent in Charge Craig Larrabee; Defense Criminal Investigative Service (DCIS) Southwest Field Office Special Agent in Charge Michael Mentalvos; and Acting Special Agent in Charge John Ruiz, U.S. Commerce Department’s Bureau of Industry and Security’s Office of Export Enforcement, Dallas Field Office, made today’s announcement.
Ansari faces up to 20 years in federal prison for conspiracy to violate Iranian Trade Regulations; up to five years for conspiracy to commit wire fraud; up to five years for conspiracy to defraud the U.S. Department of the Treasury; and up to five years on each count of aiding and abetting the making of false statements. Sentencing is scheduled for September 1, 2021.
In October 2012, Yip was sentenced to two years in federal prison after pleading guilty to conspiring to violate the ITR by acting as a broker and conduit for Foomanie to buy items in the U.S. and have them unlawfully shipped to Iran. Mehrdad Foomanie remains a fugitive.
FBI, HSI, the Department of Commerce, Bureau of Industry and Security and the Defense Criminal Investigative Service investigated this case. Assistant U.S. Attorneys Mark Roomberg, William R. Harris and Kelly Stephenson are prosecuting this case.
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Jury Convicts Iranian National for Illegally Exporting Military Sensitive ItemsRead the Press Release
WASHINGTON – A federal jury convicted an Iranian citizen and a resident of the United Arab Emirates and Germany, for scheming to obtain military sensitive parts for Iran in violation of the Iranian Trade Embargo. These parts had dual-use military and civilian capability and could be used in systems such as nuclear weapons, missile guidance and development, secure tactical radio communications, offensive electronic warfare, military electronic countermeasures (radio jamming), and radar warning and surveillance systems.
According to court documents and evidence presented at trial, Mehrdad Ansari, 39, of Iran, attempted to transship and transshipped cargo obtained from the U.S. by co-defendants Taiwanese citizen Susan Yip, aka Susan Yeh, and Iranian citizen Mehrdad Foomanie, aka Frank Foomanie, using Ansari’s company Gulf Gate Sea Cargo LLC, located in Dubai, United Arab Emirates.
From Oct. 9, 2007 to June 15, 2011, the defendants obtained or attempted to obtain from companies worldwide over 105,000 parts valued at approximately $2,630,800 involving more than 1,250 transactions. The defendants conducted 599 transactions with 63 different U.S. companies in which they obtained or attempted to obtain parts from U.S. companies without notifying the companies these parts were being shipped to Iran or getting the required U.S. government license to ship these parts to Iran.
At no time did Yip, Foomanie or Ansari, individually or through any of their companies, ever apply for or receive either a required U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) license or Department of Commerce export license to ship any item listed in this indictment to the Republic of Iran.
Iranian Transaction Regulations prohibit, among other things, the exportation, re-exportation, sale or supply, directly or indirectly, to Iran or the Government of Iran, of any goods, technology or services from the U.S. or by a U.S. person. The embargo also prohibits any transaction by any U.S. person or within the U.S. that evades or avoids, or has the purpose of evading or avoiding, any prohibition set forth in the Executive Orders.
Ansari was convicted of one count of conspiracy to violate the Iranian Transaction Regulations (ITR), one count of conspiracy to commit wire fraud, one count of conspiracy to defraud the U.S. Department of the Treasury and two counts of aiding and abetting the making of false statements. He is scheduled to be sentenced on Sept. 1 and faces a up to 20 years in federal prison for conspiracy to violate Iranian Trade Regulations; up to 5 years for conspiracy to commit wire fraud; up to 5 years for conspiracy to defraud the U.S. Department of the Treasury; and up to 5 years on each count of the aiding and abetting the making of false statements. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
In October 2012, Yip was sentenced to two years in federal prison after pleading guilty to conspiring to violate the ITR by acting as a broker and conduit for Foomanie to buy items in the U.S. and have them unlawfully shipped to Iran. Mehrdad Foomanie remains a fugitive.
Assistant U.S. Attorneys Mark Roomberg, William R. Harris and Kelly Stevenson are prosecuting the case, with valuable assistance provided by Deputy Chief for Export Control and Sanctions Elizabeth Cannon of the Justice Department’s Counterintelligence and Export Control Section.
Joplin Man Sentenced to 19 Years for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine that was shipped via UPS from Arizona.
Johnny T. Taylor, 33, was sentenced by U.S. District Judge Roseann Ketchmark to 19 years in federal prison without parole.
On June 23, 2020, Taylor pleaded guilty to participating in a conspiracy to distribute methamphetamine. Co-defendant Jennifer M. Conant, 41, of Joplin, also pleaded guilty to her role in the conspiracy and was sentenced on Aug. 13, 2018, to 10 years in federal prison without parole.
Taylor and Conant admitted they had a package shipped via UPS, which contained approximately one pound of methamphetamine, to a residence in Seneca, Mo.
On May 6, 2017, law enforcement officers tracked the suspicious package from its origin in Arizona and upon its arrival at the Joplin UPS conducted a search to confirm the package contained methamphetamine.
A federal agent conducted a controlled delivery of the package to its Seneca destination on May 7, 2017. Shortly after the package was delivered, officers executed a search warrant and located the package in a bedroom of the residence. An occupant of the residence told investigators that Taylor and Conant had the package shipped to his address and that they had inquired about the package just prior to law enforcement executing the search warrant. He then contacted Conant, with law enforcement officers listening to the conversation, and told her the package had arrived. Taylor and Conant arrived at the residence approximately 45 minutes later to pick up the package and were arrested.
This case was prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert. It was investigated by the Drug Enforcement Administration, the Newton County, Mo., Sheriff’s Department and the Ozark Drug Enforcement Team.
Jacksonville Man Sentenced to 30 Years for Human TraffickingRead the Press Release
RALEIGH, N.C. – A Jacksonville man was sentenced today to 360 months in prison for sex trafficking by force, fraud, or coercion. On September 24, 2020, Jesse Gabriel Marks pled guilty to the charges. The sentence also requires Marks to pay $249,700 in restitution to multiple victims.
According to court documents and other information presented in court, Marks, 38, prostituted hundreds of women, including at least one minor, over nearly two decades. He used drugs, including heroin and methamphetamine, to keep them dependent on and prostituting for him. After meeting Marks, many victims either developed addictions or deepened their addictions, ruining their health and, in many cases, their lives. Marks physically and emotionally abused many of the victims. He also gave women drug cocktails without their full knowledge and, once they were unconscious or nearly unconscious, sexually assaulted them. He recorded many of those sexual assaults on video.
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 James C. Dever III. The Onslow County Sheriff’s Office, the Naval Criminal Investigative Service, and the Jacksonville Police Department investigated the case and Assistant U.S. Attorneys Erin C. Blondel and Bryan Stephany prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-CR-127-D.
Irvine Man Arrested on Federal Grand Jury Indictment Alleging He Fraudulently Obtained $5 Million in COVID-Relief PPP LoansRead the Press Release
SANTA ANA, California – An Orange County man was arrested today on federal charges alleging he fraudulently obtained approximately $5 million in Paycheck Protection Program (PPP) loans for his sham businesses, then used the money on himself, including purchasing Ferrari, Bentley and Lamborghini sports cars.
Mustafa Qadiri, 38, of Irvine, was named in a federal grand jury indictment returned Wednesday charging him with four counts of bank fraud, four counts of wire fraud, one count of aggravated identity theft, and six counts of money laundering.
Qadiri surrendered to law enforcement this morning and is expected to make his initial appearance this afternoon in United States District Court in Santa Ana.
According to the indictment, Qadiri claimed to have operated four Newport Beach-based companies, none of which are currently in operation: All American Lending, Inc., All American Capital Holdings, Inc., RadMediaLab, Inc., and Ad Blot, Inc.
In May and June of 2020, Qadiri allegedly submitted false and fraudulent PPP loan applications to three banks on behalf of those companies. The false information allegedly included the number of employees to whom the companies paid wages, altered bank account records with inflated balances, and fictitious quarterly federal tax return forms. Qadiri allegedly also used someone else’s name, Social Security number and signature to fraudulently apply for one of the loans.
Relying on this false information, the banks funded the PPP loan applications and transferred approximately $5 million to accounts Qadiri controlled, according to the indictment. Qadiri allegedly used the fraudulently obtained PPP loan proceeds for his own personal benefit, including for expenses prohibited under the requirements of the PPP program, such as the purchase of luxury vehicles, lavish vacations, and the payment of his personal expenses.
Federal agents have seized the Ferrari, Bentley and Lamborghini cars that Qadiri allegedly purchased with the fraudulently obtained PPP loans, along with $2 million in alleged ill-gotten gains from his bank account.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is 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, Congress authorized more than $300 billion in additional PPP 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 percent. 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.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Homeland Security Investigations, the Small Business Administration Office of Inspector General, the FBI and IRS Criminal Investigation investigated this matter as part of the El Camino Real Financial Crimes Task Force.
Assistant United States Attorney Jennifer L. Waier of the Santa Ana Branch Office is prosecuting this case.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on May 6 was:
Aaron Leo Ludwig, 30, of Billings, on charges of felon in possession of a firearm, possession of a stolen firearm and illegal receipt of a gun by a person under indictment. If convicted of the most serious crime, Ludwig faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Ludwig was detained pending further proceedings. The FBI, Glacier County Sheriff’s Office and Billings Police Department investigated the case. PACER case reference. 21-24.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on May 4 was:
Ronald Dean Lords, 53, of Corvallis, on charges of wire fraud, money laundering and filing false tax returns. If convicted of the most serious crime, Lords faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release. Lords was released pending further proceedings. The FBI and IRS Criminal Investigation investigated the case. PACER case reference. 21-16.
Christopher Scott Jessop, 46, of Belgrade, on charges of felon in possession of a firearm. If convicted of the most serious crime, Jessop faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Jessop was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Gallatin County Sheriff’s Office and Montana Probation and Parole investigated the case. PACER case reference. 21-08.
Ramon Gomez Delgado, 32, of Mexico, on charges of illegal entry of a previously removed alien. If convicted of the most serious crime, Delgado faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Delgado was detained pending further proceedings. The Gallatin County Sheriff’s Office, Montana Highway Patrol and Department of Homeland Security’s Enforcement and Removal Operations. PACER case reference. 20-37.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on May 4 was:
Ras Jahmikes Matta, 27, of Billings, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Matta faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Matta was detained pending further proceedings. The FBI Transnational Organized Crime Task Force West and Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. PACER case reference. 21-22.
Appearing on May 6 and pleading not guilty was:
Raul Jorge Acosta, 27, of Billings, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Acosta faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Acosta was released pending further proceedings. The FBI Transnational Organized Crime Task Force West and the Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. PACER case reference. 21-22.
Robert Roswald Redfield, 40, of Lodge Grass, on charges of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Redfield faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Redfield was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Drug Enforcement Administration investigated the case. PACER case reference. 20-77.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Heroin User Sentenced to Federal Prison for Possessing a GunRead the Press Release
A Decorah man who unlawfully possessed a gun while a drug user was sentenced yesterday to 46 months in prison.
Lester Wallace Erickson, III, age 30, from Decorah, Iowa, received the prison sentence after a December 21, 2020, guilty plea to possession of a firearm by a prohibited person.
Information disclosed at sentencing and in his plea agreement showed that in October 2019 police officers responded to a storage unit in Ridgeway, Iowa. They found Erickson passed out in a vehicle. He had recently used heroin and fentanyl and overdosed. Erickson was treated for the overdose. Officers searched the vehicle and found a gun in a nearby bag. Erickson had stolen the gun a few days prior from a friend. He intended to pawn the gun. In 2018, Erickson was convicted of a felony-controlled substance offense. Erickson has twelve adult criminal convictions, nine of which were committed while he was on court supervision. Erickson also has one conviction for a violent offense.
Erickson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Erickson was sentenced to 46 months’ imprisonment. He was ordered to make payment of $100 to the special assessment fund. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Special Assistant United States Attorney Alex Geocaris and Assistant United States Attorney Ashley Corkery and investigated by the Winneshiek County Sheriff’s Department, the Division of Narcotics Enforcement, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosive.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from its Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2050.
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Harrison Man Sentenced to 60 Months in Federal Prison for Setting Fire in the Buffalo National RiverRead the Press Release
FORT SMITH – A Harrison man was sentenced on May 5, 2021, to five years in prison followed by three years of supervised release and ordered to pay $12,494.14 in restitution on one count of Willfully and Without Authority and Consent of the United States Set on Fire Timber, Underbrush, Grass and Other Inflammable Material Upon a Public Domain within the Buffalo National River. The Honorable US District Judge P.K. Holmes, III, presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court documents, In March 2020, Jacob Edward Walls, 29, was indicted by a federal grand jury, of setting a wildland fire within Buffalo National River, in Newton County, near Pruitt, on February 5, 2019. Federal investigators determined Walls set a fire within the park, which threatened nearby private structures and lands, and subsequently fled the area.
Acting U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The National Park Service, Investigative Services Branch, and the U.S. Park Rangers at Buffalo National River investigated the case. The Newton County Sheriff’s Office assisted in the case
Assistant U.S. Attorney Kyra Jenner prosecuted the case.
Guatemalan Man Who Possessed a Fraudulent Social Security Card and a Fraudulent Permanent Resident Card Sentenced to PrisonRead the Press Release
A Guatemalan man who possessed false identification documents was sentenced today to two months in federal prison.
Miguel Padilla, age 46, a citizen of Guatemala illegally present in the United States and living in Waterloo, Iowa, received the prison term after a March 3, 2021, guilty plea to one count of unlawful possession of identification documents.
In a plea agreement, Padilla admitted that in August 2019, he possessed a fraudulent social security card and a fraudulent permanent resident card, also known as a “green card,” in connection with completing paperwork to obtain employment in Waterloo, Iowa. The account numbers on the identification documents were assigned to other people. Social Security and Permanent Resident cards are documents used to prove identity and are prescribed by statute or regulation for entry into or as evidence of authorized stay or employment in the United States.
Padilla was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Padilla was sentenced to 60 days’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Padilla was released on the bond previously set and is to surrender to the United States Marshal on May 21, 2021.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-02048.
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Guatemalan Man Sentenced to Prison for Illegally Reentering the United States After Being DeportedRead the Press Release
A Guatemalan man who illegally returned to the United States after being deported once was sentenced yesterday to 15 months in federal prison.
Moses Suarez-Garcia age 39, a citizen of Guatemala, illegally present in the United States and residing in Dubuque, Iowa, received the prison term after a January 15, 2021, guilty plea to one count of illegal reentry into the United States.
Information disclosed at sentencing showed that in November 2019, Dubuque police officers responded to a report of sexual abuse. Suarez-Garcia and another woman were located. Suarez-Garcia was charged with, and ultimately convicted of, assault with intent to commit sexual abuse. Officers learned through their investigation that Suarez-Garcia had been removed from the United States in 2012 but had since illegally reentered.
Suarez-Garcia was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Suarez-Garcia was sentenced to 15 months’ imprisonment. He was ordered to make payment of $100 to the special assessment fund. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-1038.
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Four Individuals Plead Guilty to RICO Conspiracy Involving “Bulletproof Hosting” for CybercriminalsRead the Press Release
Four Eastern European nationals have pleaded guilty to conspiring to engage in a Racketeer Influenced Corrupt Organization (RICO) arising from their providing “bulletproof hosting” services between 2008 and 2015, which were used by cybercriminals to distribute malware and attack financial institutions and victims throughout the United States.
According to court documents, Aleksandr Grichishkin, 34, and Andrei Skvortsov, 34, of Russia; Aleksandr Skorodumov, 33, of Lithuania; and Pavel Stassi, 30, of Estonia, were founders and/or members of a bulletproof hosting organization. The group rented Internet Protocol (IP) addresses, servers, and domains to cybercriminal clients, who used this technical infrastructure to disseminate malware used to gain access to victims’ computers, form botnets, and steal banking credentials for use in frauds. Malware hosted by the organization included Zeus, SpyEye, Citadel, and the Blackhole Exploit Kit, which rampantly attacked U.S. companies and financial institutions between 2009 and 2015 and caused or attempted to cause millions of dollars in losses to U.S. victims. A key service provided by the defendants was helping their clients to evade detection by law enforcement and continue their crimes uninterrupted; the defendants did so by monitoring sites used to blocklist technical infrastructure used for crime, moving “flagged” content to new infrastructure, and registering all such infrastructure under false or stolen identities.
“Every day, transnational organized cybercriminals deploy malware that ravages our economy and victimizes our citizens and businesses,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The criminal organizations that purposefully aid these actors — the so-called bulletproof hosters, money launderers, purveyors of stolen identity information, and the like — are no less responsible for the harms these malware campaigns cause, and we are committed to holding them accountable. Prosecutions like this one increase the costs and risks to cybercriminals and ensure that they cannot evade responsibility for the enormous injuries they cause to victims.”
“Fraud over the internet has had a major economic impact on our community, and all over our nation and the world,” stated Acting U.S. Attorney Saima S. Mohsin of the Eastern District of Michigan. “An essential part of reducing the fraud involves vigorously investigating and prosecuting individuals such as these ‘bulletproof hosters’ who enable the fraudsters in victimizing people over the internet.”
“Over the course of many years, the defendants facilitated the transnational criminal activity of a vast network of cybercriminals throughout the world by providing them a safe-haven to anonymize their criminal activity,” said Special Agent in Charge Timothy Waters of the FBI’s Detroit Field Office. “This resulted in millions of dollars of losses to U.S. victims. Today’s guilty plea sends a message to cybercriminals across the globe that they are not beyond the reach of the FBI and its international partners, and that anyone who facilitates or profits from criminal cyber activity will be brought to justice.”
According to court filings and statements made in connection with their guilty pleas, Grichishkin and Skvortsov were founding members of the organization and its proprietors. Skvortsov was responsible for marketing the organization’s criminal business and served as a point of contact for important and/or disgruntled clients, and Grichishkin was the organization’s day-to-day leader and oversaw its personnel. Skorodumov was one of the organization’s lead systems administrators, and at some points, its only systems administrator. In this role, he configured and managed the clients’ domains and IP addresses, provided technical assistance to help clients optimize their malware and botnets, and monitored and responded to abuse notices. Stassi undertook various administrative tasks for the organization, including conducting and tracking online marketing to the organization’s criminal clientele and using stolen and/or false personal information to register webhosting and financial accounts used by the organization.
Stassi, Skorodumov, and Grichishkin pleaded guilty in February and March 2021 to one count of RICO conspiracy. Skvortsov pleaded guilty today to the same charge. All four guilty pleas took place before Chief U.S. District Judge Denise Page Hood in the Eastern District of Michigan. Sentencing of Stassi, Skorodumov, Grichishkin, and Skvortsov has been set for June 3, June 29, July 8, and Sept. 16, respectively. Each defendant faces a maximum penalty of 20 years in prison. A federal district court judge will determine each sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI investigated the case with critical assistance from law enforcement partners in Germany, Estonia, and the United Kingdom.
Senior Counsel Louisa K. Marion of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Patrick E. Corbett of the Eastern District of Michigan prosecuted the case. The Justice Department’s Office of International Affairs provided substantial assistance.
Four Former Minneapolis Police Officers Indicted on Federal Civil Rights Charges for Death of George Floyd; Derek Chauvin Also Charged in Separate Indictment for Violating Civil Rights of a JuvenileRead the Press Release
Note: A copy of the indictment against Chauvin et al. can be viewed
here and the two count indictment against Chauvin can be viewed here.WASHINGTON — A federal grand jury in Minneapolis, Minnesota, returned two indictments that were unsealed today. The first indictment charges former Minneapolis Police Department officers Derek Chauvin, 45; Tou Thao, 35; J. Alexander Kueng, 27; and Thomas Lane, 38, with federal civil rights crimes for their roles in the death of George Perry Floyd Jr.
The three-count indictment alleges that all four defendants, while acting under color of law, willfully deprived Mr. Floyd of his constitutional rights, in violation of Title 18, United States Code, Section 242. Specifically, Count One of the indictment alleges that on May 25, 2020, Chauvin held his left knee across Mr. Floyd’s neck, and his right knee on Floyd’s back and arm, as George Floyd lay on the ground, handcuffed and unresisting, and kept his knees on Mr. Floyd’s neck and body even after Mr. Floyd became unresponsive. The indictment alleges that Chauvin’s actions violated Mr. Floyd’s constitutional right to be free from the use of unreasonable force by a police officer and resulted in bodily injury to, and the death of, Mr. Floyd.
Count Two of the indictment charges that Thao and Kueng willfully failed to intervene to stop Chauvin’s use of unreasonable force, resulting in bodily injury to, and the death of, Mr. Floyd. Finally, Count Three of the indictment alleges that all four defendants saw Mr. Floyd lying on the ground in clear need of medical care and willfully failed to aid him. The indictment alleges that by doing so, all four defendants willfully deprived Mr. Floyd of his constitutional right not to be deprived of liberty without due process of law, which includes an arrestee’s right to be free from a police officer’s deliberate indifference to his serious medical needs. The indictment alleges that this offense resulted in bodily injury to, and the death of, Mr. Floyd.
A separate, two-count indictment also charges Chauvin with willfully depriving a Minneapolis resident who was then fourteen-years-old of the constitutional right to be free from the use of unreasonable force by a police officer, in violation of Title 18, United States Code, Section 242. Count One of this indictment alleges that on Sept. 4, 2017, Chauvin, without legal justification, held the teenager by the throat and struck the teenager multiple times in the head with a flashlight. The indictment alleges that this offense included the use of a dangerous weapon—a flashlight—and resulted in bodily injury to the teenager. Count Two of the indictment charges that Chauvin held his knee on the neck and the upper back of the teenager even after the teenager was lying prone, handcuffed, and unresisting, also resulting in bodily injury.
Both indictments charge violations of Title 18, United States Code, Section 242. 18 U.S.C. § 242 states that it is a crime for an official acting under color of law to willfully violate a person’s constitutional rights. If government employees, like police officers, use or misuse the power provided to them by their position, they are acting “under color of law.”
An indictment is merely a formal accusation of criminal conduct. The defendants are presumed innocent unless and until they are proven guilty beyond a reasonable doubt in a court of law.
The charges announced today are separate from the Justice Department’s civil pattern or practice investigation into the City of Minneapolis and the Minneapolis Police Department that the Attorney General announced on April 21. The charges announced today are criminal, while the pattern or practice investigation is a civil investigation that will be conducted separately and independently from the criminal case, and will be handled by a different team of career staff from the Civil Rights Division and the U.S. Attorney’s Office.
The charges announced today are also separate from, and in addition to, the charges the State of Minnesota has brought against these former officers related to the death of Mr. Floyd. The federal charges allege different criminal offenses; specifically, they allege violations of the U.S. Constitution, rather than of state law.
Principal Deputy Assistant Attorney General Pamela S. Karlan and Acting U.S. Attorney W. Anders Folk for the District of Minnesota commend the investigative efforts of the FBI and the Minnesota Bureau of Criminal Apprehension in this matter, and thank the Minneapolis Police Department for its cooperation in the investigation.
The federal criminal cases are being prosecuted by Acting U.S. Attorney W. Anders Folk of the District of Minnesota, Special Litigation Counsel Samantha Trepel and Trial Attorney Tara Allison of the Civil Rights Division of the U.S. Department of Justice, and Assistant U.S. Attorneys Samantha Bates, LeeAnn Bell, Evan Gilead, Manda Sertich and Allen Slaughter of the District of Minnesota.
Four Former Minneapolis Police Officers Indicted on Federal Civil Rights Charges for Death of George Floyd; Derek Chauvin Also Charged in A Separate Indictment for Violating Civil Rights of A JuvenileRead the Press Release
MINNEAPOLIS – A federal grand jury in Minneapolis, Minnesota returned two indictments that were unsealed today. The first indictment charges former Minneapolis Police Department officers Derek Chauvin, 45; Tou Thao, 35; J. Alexander Kueng, 27; and Thomas Lane, 38, with federal civil rights crimes for their roles in the death of George Perry Floyd Jr.
The three-count indictment alleges that all four defendants, while acting under color of law, willfully deprived Mr. Floyd of his constitutional rights, in violation of Title 18, United States Code, Section 242. Specifically, Count One of the indictment alleges that on May 25, 2020, Chauvin held his left knee across Mr. Floyd’s neck, and his right knee on Floyd’s back and arm, as George Floyd lay on the ground, handcuffed and unresisting, and kept his knees on Mr. Floyd’s neck and body even after Mr. Floyd became unresponsive. The indictment alleges that Chauvin’s actions violated Mr. Floyd’s constitutional right to be free from the use of unreasonable force by a police officer and resulted in bodily injury to, and the death of, Mr. Floyd.
Count Two of the indictment charges that Thao and Kueng willfully failed to intervene to stop Chauvin’s use of unreasonable force, resulting in bodily injury to, and the death of, Mr. Floyd. Finally, Count Three of the indictment alleges that all four defendants saw Mr. Floyd lying on the ground in clear need of medical care and willfully failed to aid him. The indictment alleges that by doing so, all four defendants willfully deprived Mr. Floyd of his constitutional right not to be deprived of liberty without due process of law, which includes an arrestee’s right to be free from a police officer’s deliberate indifference to his serious medical needs. The indictment alleges that this offense resulted in bodily injury to, and the death of, Mr. Floyd.
A separate, two-count indictment also charges Chauvin with willfully depriving a Minneapolis resident who was then fourteen-years-old of the constitutional right to be free from the use of unreasonable force by a police officer, in violation of Title 18, United States Code, Section 242. Count One of this indictment alleges that on Sept. 4, 2017, Chauvin, without legal justification, held the teenager by the throat and struck the teenager multiple times in the head with a flashlight. The indictment alleges that this offense included the use of a dangerous weapon—a flashlight—and resulted in bodily injury to the teenager. Count Two of the indictment charges that Chauvin held his knee on the neck and the upper back of the teenager even after the teenager was lying prone, handcuffed, and unresisting, also resulting in bodily injury.
Both indictments charge violations of Title 18, United States Code, Section 242. 18 U.S.C. § 242 states that it is a crime for an official acting under color of law to willfully violate a person’s constitutional rights. If government employees, like police officers, use or misuse the power provided to them by their position, they are acting “under color of law.”
An indictment is merely a formal accusation of criminal conduct. The defendants are presumed innocent unless and until they are proven guilty beyond a reasonable doubt in a court of law.
The charges announced today are separate from the Justice Department’s civil pattern or practice investigation into the City of Minneapolis and the Minneapolis Police Department that the Attorney General announced on April 21. The charges announced today are criminal, while the pattern or practice investigation is a civil investigation that will be conducted separately and independently from the criminal case, and will be handled by a different team of career staff from the Civil Rights Division and the United States Attorney’s Office.
The charges announced today are also separate from, and in addition to, the charges the State of Minnesota has brought against these former officers related to the death of Mr. Floyd. The federal charges allege different criminal offenses; specifically, they allege violations of the U.S. Constitution, rather than of state law.
Principal Deputy Assistant Attorney General Pamela S. Karlan and Acting U.S. Attorney W. Anders Folk for the District of Minnesota commend the investigative efforts of the FBI and the Minnesota Bureau of Criminal Apprehension in this matter, and thank the Minneapolis Police Department for its cooperation in the investigation.
The federal criminal cases are being prosecuted by Acting U.S. Attorney W. Anders Folk of the District of Minnesota, Special Litigation Counsel Samantha Trepel and Trial Attorney Tara Allison of the Civil Rights Division of the U.S. Department of Justice, and Assistant U.S. Attorneys Samantha Bates, LeeAnn Bell, Evan Gilead, Manda Sertich, and Allen Slaughter of the District of Minnesota.
Former Tennessee Correctional Officer Sentenced for Covering up Staff Assault of an InmateRead the Press Release
A former Tennessee Correctional Officer was sentenced today to a year and a day in prison and two years supervised release for conspiring to cover up the beating of an inmate and for persuading other officers to provide false information to investigators.
On May 7, Tommy Morris, a former Corporal with the Tennessee Department of Corrections (TDOC) at the Northwest County Correctional Complex in Tiptonville, Tennessee, pleaded guilty to federal offenses arising out of the assault of R.T., an inmate in the mental health unit at the facility. Morris is the third officer to be sentenced.
“The defendant, as a supervisory correctional officer, watched other officers assault a vulnerable inmate and then he guided these officers in their efforts to cover up their criminal conduct,” said Principal Deputy Assistant Attorney General Pamela S. Karlan for the Justice Department’s Civil Rights Division. “The Justice Department will continue to hold accountable those who commit civil rights violations and those who conspire with their fellow officers to obstruct the ensuing criminal investigation.”
“The civil rights statutes are there to protect the Constitutional rights and freedoms of everyone,” said Acting U.S. Attorney Joseph C. Murphy Jr. for the Western District of Tennessee. “Our office will prosecute those who violate these laws, regardless of the victim’s status and those who attempt to cover up these crimes.”
“This sentence should send a clear message that the FBI makes it a priority to bring to justice any law enforcement officer who violates the civil rights of those in his care and custody,” said Special Agent in Charge Douglas M. Korneski of the FBI Memphis Field Office. “It undermines the respect and reputation of all law enforcement officers when a correctional officer violates the civil rights of an inmate whose safety he is charged with.”
On Nov. 24, 2020, Morris pleaded guilty to conspiring to cover up the beating of R.T. and to knowingly encouraging correctional officers to provide investigators with false and misleading information.
This case was investigated by the Memphis Division of the FBI with the support of the TDOC, and is being prosecuted by Trial Attorney Rebekah J. Bailey of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney David Pritchard of the U.S. Attorney’s Office for the Western District of Tennessee.
Former Montgomery County Teacher Charged in Superseding Indictment with Traveling to the Philippines to Have Sex with ChildrenRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Craig Alex Levin, 65, of King of Prussia, PA, was charged by Superseding Indictment with additional child exploitation offenses related to his travel to the Philippines. The defendant, who was previously detained in the Philippines, was deported back to the United States in August 2020 and has been held in federal detention since that time.
The Superseding Indictment contains sixteen counts including nine counts of interstate and foreign travel for the purpose of engaging in illicit sexual conduct with a minor, two counts of sex trafficking of a minor, one count of use of an interstate commerce facility to entice a minor to engage in sexual activity, two counts of distribution of child pornography, one count of transfer of obscene material to a minor, and one count of transportation of child pornography.
The Superseding Indictment alleges that Levin, a former high school teacher for the Lower Merion School District, created and maintained Facebook accounts that he used to communicate with minors in the Philippines for the purpose of enticing them to engage in illicit sexual conduct with him during his visits to the Philippines. In addition, the defendant allegedly used Facebook Messenger to send images depicting minors engaging in sexually explicit conduct and obscene photographs from his residence to minors in the Philippines. Between August 29, 2016 and May 8, 2019, Levin is alleged to have traveled to the Philippines nine times to have sex with minor children. Levin was first indicted with child exploitation offenses related to his travel to the Philippines in February 2020.
“As alleged in the Superseding Indictment, the defendant repeatedly traveled to the Philippines and stayed for months as a time in order to sexually prey on children,” said Acting U.S. Attorney Williams. “If Mr. Levin thought he could get away with these crimes because they occurred on the other side of the world, that was a grave miscalculation on his part. Holding child sexual predators accountable, including those who travel overseas to commit their heinous acts, will continue to be a top priority of our Office.”
“Craig Levin went to extraordinary lengths to sexually exploit children, as alleged in the superseding indictment,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “He repeatedly trekked thousands of miles to the Philippines and ensconced himself there for months, taking advantage of situations of extreme poverty in order to prey on underage girls. Child sexual exploitation is abhorrent anywhere it occurs, and the FBI will continue to go after Americans who travel abroad for that purpose. We’re determined to hold them accountable for the damage they’ve done and prevent them from victimizing anyone else’s child.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
If convicted, the defendant faces a maximum possible sentence of lifetime imprisonment with a mandatory minimum of ten years’ imprisonment, lifetime supervised release, a $4,000,000 fine, and a $1,600 special assessment, and an additional $75,000 mandatory special assessment.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Sarah Damiani and Trial Attorney Austin M. Berry of the Department of Justice’s Child Exploitation and Obscenity Section.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Deputy Campaign Manager Pleads Guilty to Theft of Campaign FundsRead the Press Release
An Illinois man pleaded guilty today to the theft of more than $115,000 in campaign funds from the McSally for Senate Campaign in 2018 and 2019.
According to court documents, Anthony Barry, 33, of Yorkville, served as a deputy campaign manager and consultant for former U.S. Senator Martha McSally. Barry used his position in the campaign to fraudulently direct the campaign to make payments to him beyond what he was owed for his salary and had the fraudulently obtained funds deposited into his personal bank account.
Barry pleaded guilty to an information charging him with one count of unlawful conversion of campaign funds. He is scheduled to be sentenced on July 6, and faces a maximum term of five 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; Acting U.S. Attorney Glenn B. McCormick for the District of Arizona; and Assistant Director in Charge Steven M. D’Antuono of FBI’s Washington Field Office made the announcement.
The FBI’s Washington Field Office is investigating the case.
Trial Attorneys Rosaleen O’Gara and Nicole Lockhart of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney William Voit of the District of Arizona are prosecuting the case.
Former Client Relationship Manager at Bank of America Sentenced for Embezzling from Client CompanyRead the Press Release
BOSTON – A former client relationship manager at Bank of America was sentenced today in connection with embezzling $1.5 million from a client company and using a portion of those funds to purchase luxury items.
Waqas Ali, 31, of Abington, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to one year and one day in prison and two years of supervised release, one year of which is to be served on home confinement. Ali was also ordered to pay $600,000 in restitution and forfeiture. In October 2020, Ali pleaded guilty to wire fraud and unlawful monetary transactions.
Ali was the client relationship manager for the victim company, which was a Bank of America client. Ali opened a checking account in the name of the victim company without its knowledge or authorization, and between September 2016 and July 2017, fraudulently transferred over $1.5 million from the victim company’s accounts to a fraudulent account.
Ali used approximately $600,000 of the funds he fraudulently obtained to fund his lifestyle and pay for luxury items, including a Porsche SUV and retail items at Neiman Marcus, Bloomingdales, Christian Louboutin and Tag Heuer.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Mackenzie A. Queenin of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
Former CEO of La Quinta Communication Services Company Pleads Guilty to Charges He Defrauded Major Lender to Tech StartupsRead the Press Release
RIVERSIDE, California – The former CEO of a La Quinta-based communication services company pleaded guilty today to federal criminal charges that he fraudulently obtained $5 million in bank loans by, among other things, submitting sham financial documents that falsely stated his company’s net worth.
Richard Loren Lewis, 67, of La Quinta, pleaded guilty to a two-count information charging him with bank fraud and making a false statement to a financial institution.
According to his plea agreement, from April 2013 to April 2016, Lewis schemed to defraud Silicon Valley Bank, a Santa Clara-based commercial bank that funds start-up technology companies.
Lewis, who was the CEO of Blue Wave Media Inc., and served on its board of directors, fraudulently obtained loans from the bank by preparing and causing to be prepared false financial documents, including balance sheets and income statements, which falsely overstated, among other things, Blue Wave Media’s net worth, liquidity, and revenue.
Based on the false financial documents, Lewis caused Silicon Valley Bank to approve the loans to Blue Wave Media and deposit the loan proceeds into a bank account he controlled. Lewis’s misrepresentations caused the bank to approve four loans totaling $5 million.
Lewis admitted he executed the scheme by willfully causing a loan and security agreement to be signed with Silicon Valley Bank in April 2013 to secure a $500,000 loan. In January 2014, he submitted an amendment to the agreement to the bank to secure an additional $500,000 loan. In June 2014, Lewis willfully caused another amendment to the agreement to secure a $1 million loan, and, in April 2015, Lewis signed a third amendment to the agreement with the bank to secure a $3 million loan.
As a result of Lewis’s fraudulent scheme, Silicon Valley Bank sustained actual losses of approximately $3,414,064, according to the plea agreement.
United States District Judge John W. Holcomb has scheduled a July 30 sentencing hearing, at which time Lewis will face a statutory maximum sentence of 30 years in federal prison.
The FBI investigated this matter.
Assistant United States Attorney Robert S. Trisotto of the Riverside Branch Office is prosecuting this case.
Former Attorney Sentenced for Embezzlement and Tax ChargesRead the Press Release
BOSTON – A former attorney was sentenced today in connection with a long-running scheme to embezzle funds from trusts for which he served as trustee.
Kevin M. Brill, 61, of Newton, was sentenced by U.S. Senior District Judge Mark L. Wolf to two years in prison, three years of supervised release and a fine of $15,000. Brill was also ordered to pay restitution of $381,662 to the victims and $169,000 to the IRS. On Jan. 11, 2021, Brill pleaded guilty to six counts of wire fraud and four counts of filing false tax returns.
From 2012 to July 2017, Brill served as a trustee for three family trusts with fiduciary responsibilities to protect and preserve the trust funds and make expenditures for the benefit of the beneficiary. Instead, Brill embezzled and misappropriated more than $600,000 from the trusts and used the proceeds for personal expenses including the purchase of a vehicle, a vacation home in Vermont, major renovations to the vacation home, and his personal credit card bills.
In addition, Brill failed to report his illegal income to the IRS, thereby avoiding payment of more than $169,000 that he owed in federal income taxes.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement. Assistant U.S. Attorney Victor A. Wild of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
Florida Resident Sentenced for Misbranding and Money Laundering Conspiracies Involving Online Sale and Distribution of Unapproved Drug Obtained from OverseasRead the Press Release
PITTSBURGH, Pa. – A resident of Odessa, Florida, was sentenced in federal court on May 5, 2021, for one count of conspiracy to smuggle misbranded drugs into the United States and introduce them into interstate commerce, as well as one count of money laundering conspiracy, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Mark R. Hornak sentenced Julia Fees, 29, to four years of probation. Fees was also ordered to forfeit a total of approximately $231,000 to the United States.
During the defendant’s plea hearing on Jan. 17, 2019, Fees admitted her role in obtaining and distributing etizolam to individual consumers for their personal, recreational use. Etizolam, as Fees admitted, is a drug known as a thienodiazepine, which is chemically similar to benzodiazepines (e.g., Xanax) and carries risks of dependency, toxicity, and the possibility of fatal overdose—particularly in combination with other depressants. Etizolam is not approved by the U.S. Food and Drug Administration in the United States, and it cannot legally be imported, distributed, or prescribed domestically for use as a drug. The defendant further admitted that she and her business partner and co-conspirator, William Kulakevich, illegally brought significant quantities of etizolam into the United States from an overseas supplier—an Indian national named Jeetendra Belani, aka Jeetu—for the purpose of distributing the drug to individual consumers. As part of the conspiracy, the defendant arranged to have etizolam smuggled into the United States from Belani through the use of, among other means, multiple post office boxes controlled by the defendants. To evade scrutiny by regulatory and law enforcement authorities, Fees and Kulakevich used false and misleading packaging, and generally misrepresented the nature of the products sold on their website.
In addition, in order to promote their continued illegal activities, Fees and Kulakevich engaged in money laundering activity, including by using varied methods to transfer funds to Belani in India as payment for his ongoing supply of etizolam. These methods included international wire transfers, virtual currency payments, and even cash payments. To further mask the co-conspirators’ activities, Fees admitted using used a front entity—Clicken Little LLC—and related bank accounts to route payments between the defendants and Belani.
Kulakevich and Belani previously pleaded guilty for their roles in the etizolam conspiracies—among other offenses as to Belani—and were sentenced to eight months’ imprisonment and approximately thirteen months’ imprisonment, respectively.
Assistant United States Attorney Eric G. Olshan prosecuted this case on behalf of the government. The United States Food and Drug Administration – Office of Criminal Investigations and Homeland Security Investigations conducted the investigation leading to the conviction in this case.
Florida Man Sentenced to Prison After Traveling to Edwardsville to Cash Counterfeit Checks Using Stolen IdentitiesRead the Press Release
BENTON, Ill. – Elvin Lugo-Cales, 47, of Orlando, Florida, was sentenced today to 51 months in federal prison and 3 years of court supervision after his release. In January, Lugo-Cales pled guilty to conspiracy to commit bank fraud, use of a false passport, and aggravated identity theft.
On March 2, 2020, Lugo-Cales and his co-defendant, Johnny Collado, flew from New York to St. Louis for the sole purpose of defrauding banks using stolen identities. They were paid members of a criminal organization based in New York. Collado was the driver and coordinated the scheme through text messages with a co-conspirator in New York. Lugo-Cales was known in the scheme as a “soldier”
– a person willing to travel to a new city, walk into banks, and conduct fraudulent transactions face- to-face with bank tellers using fake IDs and counterfeit checks.On March 5, 2020, Collado drove Lugo-Cales in a rental car to a US Bank location in Edwardsville, Illinois. Lugo-Cales went inside the bank while Collado waited in the car. Lugo-Cales walked up to a bank teller and presented a counterfeit check in the amount of $3,650.00 made payable to an identity theft victim from Colorado. The check had a forged endorsement and the victim’s social security number written on the back. Lugo-Cales also presented a false U.S. passport card bearing
Lugo-Cales’ photograph and the name of the victim. He then asked the bank teller to cash the check.The bank teller recalled an internal e-mail she had received warning branches about a man traveling around the St. Louis area attempting to cash counterfeit checks. Seeing that Lugo-Cales fit the description of the suspect, she notified her bank manager and stalled the transaction while the bank manager called the police.
Lugo-Cales grew nervous and demanded the bank teller return his check and passport card. When the teller refused, he left the bank and drove away with Collado, leaving behind the counterfeit check and passport card with his picture on it. The two men were pulled over and arrested nearby.
Lugo-Cales had over $1,500 cash in his pocket at the time of his arrest. Collado had numerous items concealed near his crotch, including over $25,000 in cash, multiple counterfeit IDs, counterfeit credit cards, and 19 blank counterfeit checks.
During the sentencing hearing, United States District Judge Staci M. Yandle remarked that identity theft is a “very serious offense” that “destroys people’s lives.
Federal Inmate and Accomplice Plead Guilty to Tax Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A federal inmate and his accomplice pleaded guilty today to charges stemming from a fraudulent tax withholding scheme, announced Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Ismael Nevarez Jr. for the Internal Revenue Service Criminal Investigations (IRS CI).
According to court documents and admissions made in court, Jabari Laquan Marshall, 43, devised the fraudulent tax withholding scheme while incarcerated in a Bureau of Prisons facility. As part of the scheme, Marshall provided co-defendant Jalen Tony Henry, 27, with false documents that purportedly showed the sale of certain trade secrets for $25 million during the 2014 tax year. To make those false documents appear more credible, Marshall used the real social security numbers of two other individuals.
In April 2015, Henry filed an amended tax return for tax year 2014, using the false documents and fraudulently claiming that — as part of the fictitious sale of the trade secrets — $5,575,633 in federal income tax had been withheld on his behalf. Henry requested a tax refund of $1,359,645, and actually received a refund check for $1,439,039, which he deposited into his bank account. Marshall then directed Henry to split the funds among their family members. Because of the suspicious nature of the transaction, Henry’s bank account was frozen, and the IRS successfully recovered $1,433,971 of the refund amount sent to Henry.
Marshall pleaded guilty to one count of theft of government money and one count of aggravated identity theft. Henry pleaded guilty to one count of theft of government money. The maximum statutory penalty is 10 years in prison for theft of government money, and two years in prison for aggravated identity theft. Both defendants are scheduled to be sentenced by U.S. District Judge James C. Mahan on August 13, 2021.
The case was investigated by IRS CI. Assistant U.S. Attorney Eric Schmale is prosecuting the case.
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FCI Hazelton Inmate sentenced for assault and contraband chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Dell Dingle, an inmate at the Federal Correction Institution Hazelton in Bruceton Mills, West Virginia, was sentenced today to an additional 30 months of incarceration after admitting to assault and contraband charges, Acting U.S. Attorney Randolph J. Bernard announced.
Dingle, 45, pleaded guilty to one count of “Assault of a Correctional Officer Involving Physical Contact” and one count of “Possession of a Prohibited Object (Narcotic).” Dingle admitted to attacking a federal correctional officer during the officer’s workday in May 2019. Dingle also admitted to having suboxone inside the prison in October 2019.
Assistant U.S. Attorney Christopher L. Bauer prosecuted the case on behalf of the government. The Federal Bureau of Prisons investigated.
U.S. District Judge Thomas S. Kleeh presided.
Estill County Man Convicted of Methamphetamine Trafficking and Illegal Firearm PossessionRead the Press Release
LEXINGTON, Ky. - An Estill County man was convicted on Thursday, by a federal jury sitting in Lexington, of four counts of trafficking methamphetamine and a firearm offense.
Following a three day trial before United States District Judge Karen K. Caldwell, the jury convicted 56 year-old George Harrison on three counts of distribution of 50 grams or more of methamphetamine, one count of possession with the intent to distribute methamphetamine, and possession of a firearm by a convicted felon.
The evidence at trial established that Harrison sold methamphetamine to the Kentucky State Police, in a series of controlled purchases. Specifically, Harrison sold over 50 grams of methamphetamine to a confidential informant, on three separate occasions, in September of 2018. During a search of his premises, at the time of arrest, approximately 12 grams of methamphetamine and over $1,000.00 was found. Harrison was arrested on September 18, 2019 and detained at the Fayette County Detention Center. While incarcerated, Harrison communicated through recorded jail phone calls with his girlfriend about securing drugs, money, and a firearm that law enforcement did not recover during the search of his house. The Kentucky State Police secured another search warrant and recovered a 45 -caliber pistol, $16,546.00 and more than 500 grams of methamphetamine. The jury found that the $16,546.00 was forfeitable to the United States, as drug proceeds.
Harrison was indicted in August of 2019.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; Jerry C. Templet Jr., Special Agent in Charge, Homeland Security Investigations; and Colonel Phillip “PJ” Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the jury’s verdict.
The investigation was conducted by DEA, ATF, DHS-HSI, and the Kentucky State Police. The United States was represented in the case by Assistant U.S. Attorney Emily K. Greenfield
Harrison will appear for sentencing on August 6, 2021. If the district court finds Harrison’s prior Kentucky conviction for complicity to commit murder conviction is a serious violent felony, he faces a mandatory minimum of 15 years to life imprisonment. For the firearm offense, he faces up to ten years. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.
EDVA Commemorates Asian American and Pacific Islander Heritage MonthRead the Press Release
ALEXANDRIA, Va. – In the month of May, the U.S. Attorney’s Office for the Eastern District of Virginia (EDVA) honors the rich traditions, history, and cultures that are recognized during Asian American and Pacific Islander (AAPI) Heritage Month.
“Asian Americans and Pacific Islanders have enriched our Office, our communities, and our Nation with their enduring leadership, vibrant cultures, and extensive contributions to all aspects of our society,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and the first Indian American and person of color to serve as EDVA’s chief federal law enforcement official. “While showing steadfast resilience in the face of great hardship, they have helped shape our country’s history for the better, including protecting the Nation during times of war, serving the American people at all levels of government, and spearheading innovations in the law, science, education, commerce, and the arts, among many other fields. As a proud member of the AAPI community, I am honored to continue EDVA’s commitment to celebrating the rich heritage of Asian Americans and Pacific Islanders, and furthering our collective efforts to promote equality, diversity, and inclusion in everything we do.”
The Asian American and Pacific Islander heritage encompasses a diverse group of nations and cultures from the entire Asian continent and the Pacific islands of Melanesia, Micronesia, and Polynesia, which includes Native Hawaiians. At present, there are over 20 million Asian Americans and Pacific Islanders in the United States, and more than 300,000 living veterans from the AAPI community.
The national theme for this year’s observance is “Advancing Leaders Through Purpose-Driven Service.” The month of May was chosen to commemorate the immigration of the first Japanese to the United States on May 7, 1843, and to mark the anniversary of the May 10, 1869 completion of the transcontinental railroad, which was built primarily by Chinese immigrant workers.
This year’s AAPI commemoration comes at a time of heightened fear and pain for Asian Americans and Pacific Islanders in our country. “Hate crimes and discrimination against anyone, including Asian Americans and Pacific Islanders, are reprehensible acts that are contrary to the ideals of our Nation and have no place in our society,” said Acting U.S. Attorney Parekh in a recent statement condemning acts of violence against Asian Americans. “I reaffirm our Office’s unwavering commitment to ensuring that those who perpetrate federal crimes fueled by hate are held accountable, and EDVA stands united with our law enforcement partners in combating these injustices.”
During the 2021 AAPI Heritage Month celebration, EDVA will host office-wide virtual events, including a virtual fireside chat with Vanita Gupta, a lifelong civil rights lawyer who recently became the first woman of color to serve as the Associate Attorney General of the United States, and discussions involving the prosecution of hate crimes in partnership with the Justice Department’s Civil Rights Division. Recently, EDVA hosted virtual events with Aloke Chakravarty, a former Assistant U.S. Attorney who prosecuted the Boston Marathon bombings case, and Chief Judge Sri Srinivasan of the U.S. Court of Appeals for the D.C. Circuit, the first South Asian American federal appellate court judge in the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.