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Wednesday 24 March 2021
Lawrence Man Pleads Guilty to Defense Contracting FraudRead the Press Release
BOSTON – A Lawrence man pleaded guilty today to a scheme to defraud the U.S. Navy relating to glove liners purchased for use on nuclear submarines.
Adrian Urena, 40, pleaded guilty to one count of possessing false papers to defraud the United States and one count of making false statements. U.S. District Court Judge Richard G. Stearns scheduled sentencing for July 28, 2021.
Urena was an employee of a Lawrence company that contracts with the U.S. Navy through the Defense Contract Management Agency. The contractor entered into a contract to provide the Navy with white glove liners for use on nuclear submarines meeting certain specifications, including that the contractor would test the glove liners for heat sensitivity and obtain an associated certificate of testing. To avoid the testing requirement, Urena manufactured counterfeit certificates of testing and compliance, and presented these counterfeit certificates to a Department of Defense contracting officer. When investigators questioned Urena about the counterfeit certificates, Urena falsely claimed that the certificates were not intended to be genuine.
The charges of possession of false documents to defraud the United States and false statements each provide for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Michael T. Wiest, Special Agent in Charge of the Naval Criminal Investigative Service, Northeast Field Office; Patrick Hegarty, Special Agent in Charge of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office made the announcement today. Assistant U.S. Attorney Evan Panich of Mendell’s office is prosecuting the case.
Las Vegas Felon Pleads Guilty to Possession of A Loaded Sawed-Off ShotgunRead the Press Release
LAS VEGAS, Nev. – A convicted felon pleaded guilty today to possession of a sawed-off shotgun found during a traffic stop in Searchlight, Nevada, announced Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Patrick Gorman for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Ronald Allen Class, Jr, 31, of Las Vegas, pleaded guilty to one count of felon in possession of a firearm. U.S. District Judge Gloria M. Navarro scheduled a sentencing hearing for June 30, 2021.
According to court documents and admissions made in court by Class, on October 28, 2020, a Las Vegas Metropolitan Police Department officer stopped a car that was travelling more than 50 miles per hour on a 25 mile per hour section of U.S. Highway 95 through Searchlight. While speaking with the driver, the officer noticed that a passenger in the back seat was agitated. Turning his attention to the backseat passenger, the officer saw a sawed-off shotgun on the floor at the man’s feet. The officer secured the shotgun — a Remington 12 gauge semi-automatic shotgun, loaded with a round in the chamber — and took the man into custody. The man initially provided a false name, but the officer was able to identify him as Class. Class is prohibited from possessing a firearm due to prior felony convictions.
During the stop, the officer also discovered that: (a) the car had been stolen, and (b) three of the four people in the car, including Class, had an outstanding arrest warrant.
The maximum statutory penalty Class faces is 10 years in prison, a term of supervised release, and a monetary fine.
This case was investigated by the ATF and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Dan Cowhig is prosecuting the case.
The case was brought as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
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Laredo man charged with kickback/accounting fraud schemeRead the Press Release
LAREDO, Texas – A 46-year-old Laredo resident has been charged for stealing money from an automobile financing company through a kickback and accounting fraud scheme, announced Acting U.S. Attorney Jennifer B. Lowery.
Authorities arrested Roberto Montiel today. He is expected to make his initial appearance before a U.S. magistrate judge at 1:30 p.m. tomorrow in Laredo.
A federal grand jury returned the 12-count indictment March 18 which was unsealed today. It alleges Montiel misused his position as general manager of the company to sell vehicles that the company had repossessed. He allegedly sold them at prices below their market value in exchange for receiving a kickback from the buyer.
According to the indictment, Montiel also entered false information into the company’s accounting system and manipulated accounting records to inflate the company’s profitability and assets. This allegedly enabled him to hide the losses his scheme caused. He also allegedly received bonuses and commissions he was only entitled to receive if the company was profitable.
If convicted, Montiel faces up to 20 years in prison and a possible $250,000 maximum fine on each count of conviction.
The FBI conducted the investigation. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Jury Convicts Creators of Scheme to Fraudulently Process over $150 Million Through U.S. Financial InstitutionsRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced the conviction today of HAMID “Ray” AKHAVAN and RUBEN WEIGAND, following a four-week trial before the Honorable Jed S. Rakoff. AKHAVAN and WEIGAND devised a complex scheme involving fake companies, false websites, and fake “customer service centers,” to deceive U.S. issuing banks and credit unions into effectuating more than $150 million of credit and debit card purchases of marijuana by disguising those purchases as being for other kinds of goods, such as face creams and dog products. The defendants were each convicted of one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349.
Manhattan U.S. Attorney Audrey Strauss said: “As a jury has now found, Ray Akhavan and Ruben Weigand were in the business of selling lies. Under the radar of U.S. banks and credit card companies screening for suspicious and illegal activity, these men offered their services: creating fake companies and fake websites, and ginning up fake web traffic to those fake websites, all in the service of fraudulently moving money through the United States financial system. Today, a jury has seen through those lies and convicted Akhavan and Weigand of bank fraud.”
As reflected in the Indictment, public filings, and the evidence presented at trial:
From in or around 2016 through in or around 2019, AKHAVAN and WEIGAND, working with others, including principals from one of the leading on-demand marijuana delivery companies in the United States (the “Company”) planned and executed a scheme to deceive United States banks and other financial institutions into processing over $150 million in credit and debit card payments for the purchase and delivery of marijuana products (the “Scheme”).
The Scheme involved the deception of virtually all of the participants in the payment processing network, including issuing banks in the United States (the “Issuing Banks”) and Visa and MasterCard. The primary method used by AKHAVAN, WEIGAND, and other coconspirators to deceive the Issuing Banks involved the purchase and use of shell companies that were used to disguise the marijuana transactions through the use of phony merchants (the “Phony Merchants”). The shell companies were used to open offshore bank accounts with merchant acquiring banks and to initiate credit card charges for marijuana purchases made through the Company. AKHAVAN and WEIGAND worked with other co-conspirators to create these phony merchant accounts – including phony online merchants purportedly selling dog products, diving gear, carbonated drinks, green tea, and face creams – and established Visa and MasterCard merchant processing accounts with one or more offshore acquiring banks. They then arranged for more than a dozen Phony Merchants to be used by the Company to process debit and credit card purchases of marijuana products. Many of the Phony Merchants purported to be based in the United Kingdom, but, despite being based outside the United States, claimed to maintain U.S.-based customer service numbers.
To facilitate the Scheme, webpages were created and deployed to lend legitimacy to the Phony Merchants. The Phony Merchants typically had web pages suggesting that they were involved in selling legitimate goods, such as carbonated drinks, face cream, dog products, and diving gear. Yet these companies were actually being used to facilitate the approval and processing of marijuana transactions. The defendants’ scheme even involved fake visits to those websites to make it appear as though the websites had real customers and were operating legitimate online businesses.
The defendants’ scheme also involved the use of online tracking pixels. Because the descriptors listed on Company customers’ credit card statements often were the URLs for the Phony Merchant websites, Company customers were sometimes confused and did not recognize the transactions on their credit card statements. The defendants and their coconspirators were concerned that confused customers would call their Issuing Banks and inadvertently reveal the Scheme by indicating that they had purchased marijuana products and/or that they had made a purchase through the Company. To lessen the risk that customers would be confused, the defendants used a number of techniques, including online tracking pixels to track which users had visited the Company’s website. If a Company customer had visited the Company’s website and went to the URL listed on their credit card statement, they would automatically be re-routed to a webpage connected to the Company so that the customer would understand what the real purchase had been for (i.e., from the Company). However, in order to hide the Scheme, the defendants ensured that if a third party such as a bank or credit card company investigator visited a URL of a Phony Merchant, they would not be re-routed, and would therefore be unable to discern any connection between the Phony Merchant website and the Company and/or the sale of marijuana products.
Over $150 million in marijuana credit and debit card transactions were processed using the Phony Merchants. Some of the merchant websites listed for those transactions included: diverkingdom.com, desirescent.com, outdoormaxx.com, and happypuppybox.com. Moreover, none of the Phony Merchant website names listed for those transactions referred to the Company or to marijuana. AKHAVAN, WEIGAND, and others also worked with and directed others to apply incorrect merchant category codes (“MCCs”) to the marijuana transactions in order to disguise the nature of those transactions and create the false appearance that the transactions were completely unrelated to marijuana. Some of the MCCs/categories listed for the transactions included freight carrier, trucking; clock, jewelry, watch, and silverware; stenographic services; department stores; music stores/pianos; and cosmetic stores.
AKHAVAN was the leader of the transaction laundering scheme and WEIGAND was responsible for overseeing the acquiring bank accounts used by the Phony Merchants and sending the proceeds from the marijuana transactions back to bank accounts in the United States.
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AKHAVAN, 43, of, California, and WEIGAND, 38, of Germany, were each convicted of one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as the sentencing of the defendants will be determined by the judge. Sentencing before Judge Rakoff is scheduled for June 25, 2021.
Ms. Strauss praised the work of the Federal Bureau of Investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit and the Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Nicholas Folly, Tara La Morte, and Emily Deininger are in charge of the prosecution.
Jury Convicts Arlington Man of Gun CrimeRead the Press Release
A federal jury has convicted a five-time felon and suspected shooter of a gun crime, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Following a two-day trial and just 30 minutes of deliberation, a jury in Fort Worth found Abedel Sattar Alkheqani, 27, guilty of being a felon in possession of a firearm and ammunition.
According to evidence presented at trial, Mr. Alkheqani was arrested in March 2020, after officers with the Arlington Police Department identified him as a suspect in a shooting that occurred in a residential neighborhood in Arlington, Texas.
Witnesses told law enforcement that the suspect exited a pickup truck, pistol in hand, and fired three times as the victim tried to flee. The victim was struck multiple times and hospitalized, but ultimately recovered.
Based on witnesses’ descriptions of the suspect’s truck as well as surveillance video, officers were able to locate the truck used in the shooting approximately a half-mile from the scene. They determined the truck was registered to Mr. Alkheqani and noted that he matched witnesses’ descriptions of the shooter.
When officers pulled Mr. Alkheqani over a few hours later, they discovered marijuana in his jacket pocket and arrested him for possession. He then gave written consent for officers to search his home and vehicle.
During the search of Mr. Alkheqani's truck, law enforcement recovered a single round of 9mm caliber ammunition, which matched the manufacturer and caliber of the shell casings recovered at the shooting scene. At his residence, they recovered a .22 caliber rifle beside his bed and a magazine containing ammunition for the rifle within arm’s reach.
Mr. Alkheqani told officers that the rifle was his wife’s, but in recorded jailhouse calls, Mr. Alkheqani asked his wife, “is my rifle still there?” before correcting himself and stating, “I mean your rifle.” (Audio file available here.)
Forensic analysis later revealed that gunshot residue was recovered from Mr. Alkheqani’s body on the day of the shooting.
A query of Mr. Alkheqani's criminal history revealed five prior felony convictions, including four for burglary of a habitation – all offenses that made it a federal crime for him to possess a firearm or ammunition.
Based on the defendant’s multiple prior felony convictions, he is subject to a potential statutory sentencing enhancement under the Armed Career Criminal Act, which raises the maximum penalty for offenders with three previous convictions for a violent felony or serious drug offense. Mr. Alkheqani now faces a sentence of between 15 years and life in federal prison. His sentencing is set for Aug. 10, 2021.
The Arlington Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division conducted the investigation. Assistant U.S. Attorneys Levi Thomas and Frank Gatto tried the case. Senior U.S. District Judge Terry R. Means presided over the trial.
Joplin Man Sentenced to 24 Years for Meth Conspiracy, Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Missouri, man was sentenced in federal court today for his role in a drug-trafficking conspiracy that distributed at least 12 pounds of methamphetamine in the Joplin area, as well as for illegally possessing numerous firearms and thousands of rounds of ammunition.
Mark E. Burdge, 50, was sentenced by U.S. District Judge Stephen R. Bough to 24 years and eight months in federal prison without parole. The court also ordered Burdge to forfeit to the government $44,850 seized by law enforcement as the proceeds of drug trafficking.
On Nov. 3, 2020, Burdge pleaded guilty to one count of conspiracy to distribute methamphetamine, one count of possessing firearms in furtherance of a drug-trafficking crime, and one count of distributing methamphetamine on premises where children are present or reside.
Burdge admitted that he participated in a conspiracy to distribute methamphetamine from May 9, 2018, to July 18, 2019. Burdge imported at least 12 pounds (approximately 5.4 kilograms) of methamphetamine into southwest Missouri from a source in Oklahoma.
On May 9, 2018, investigators with the Ozarks Drug Enforcement Team executed a search warrant at Burdge’s residence. Officers seized a total of 71.96 grams of methamphetamine and approximately $20,550 from a bedroom in the residence. Officers also searched an outbuilding and seized six rifles, five shotguns, four pistols, a revolver, a .22-caliber Magnum derringer, and 4,000 rounds of assorted ammunition.
On July 18, 2019, investigators again executed a search warrant at Burdge’s residence, where they encountered a 10-year-old child among a number of individuals at the residence. Officers seized a total of 159.66 grams of methamphetamine and $24,300.
According to court documents, Burdge’s serious criminal history began when he was 29 when he was arrested with methamphetamine and marijuana in 1999. Felony convictions since then have included three convictions for possession of a controlled substance, as well as felony convictions for unlawful possession of a firearm and receiving stolen property.
This case was prosecuted by Assistant U.S. Attorneys Josephine L. Stockard and Byron Black. It was investigated by the Ozarks Drug Enforcement Team, the FBI, and the Bureau of Alcohol., Tobacco, Firearms and Explosives.
OCDETF
This case is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.Jefferson County man indicted on firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Rashad Khalill Faunteroy, of Charles Town, West Virginia, appeared today before a federal magistrate judge on a firearms charge after being indicted last week, Acting United States Attorney Randolph J. Bernard announced.
Faunteroy, 21, was indicted on one count of “Unlawful Possession of a Firearm.” Faunteroy, a person prohibited from having a firearm because of a domestic violence conviction, is accused of having a 9mm handgun in July 2020 in Jefferson County.
Faunteroy faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Timothy D. Helman is prosecuting the case on behalf of the government. The Charles Town Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Magistrate Robert W. Trumble presided.
Jefferson County Man Sentenced for Federal Firearms and Drug ViolationsRead the Press Release
BEAUMONT, Texas – A Nederland, Texas man has been sentenced to federal prison for firearms and drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Esdras Homero Pedroza, 27, pleaded guilty on January 6, 2021, to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. Today, he was sentenced to 180 months in federal prison today by U.S. District Judge Marcia A. Crone.
“Today’s sentence sends a clear message that this sort of criminal conduct—possession of drugs with an intent to distribute, and having a gun to facilitate the distribution—will not be tolerated in the Eastern District of Texas,” said Acting U.S. Attorney Nicholas J. Ganjei.
According to information presented in court, on August 7, 2020, Jefferson County Narcotics Task Force officers stopped Pedroza’s pickup truck after a brief pursuit on Highway 69 South in Port Arthur. After a drug detection dog alerted on the truck, the officers searched the vehicle. They found 336 grams of methamphetamine; a digital scale; $1,259 cash; and an AR-15 rifle. Pedroza was indicted by a federal grand jury on November 4, 2020 and charged with firearms and drug trafficking violations.
This case was investigated by the Jefferson County Sheriff’s Office and the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney John B. Ross.
House-flipping fraud sends Savannah man to federal prisonRead the Press Release
STATESBORO, GA: A Savannah man who concocted a schemed to enrich himself by repeatedly borrowing money against the same pieces of property will go to prison for fraud.
Christopher Grooms, 41, of Savannah, pled guilty to an Information charging him with Wire Fraud. U.S. District Court Judge R. Stan Baker sentenced Grooms to 33 months in federal prison, ordered him to pay $1,645,267.95 in restitution, and a forfeiture money judgment totaling $2,937,881.43, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. After completion of his prison term, Grooms must serve four years of supervised release.
There is no parole in the federal system.
“Financial fraud temporarily enriches criminals at the long-term expense of legitimate businesses,” said Acting U.S. Attorney Estes. “As Christopher Grooms discovered, our law enforcement partners are adept at rooting out these schemes, and his ill-conceived investment in criminal activity is returning a dividend of time behind bars.”
As described in court documents and testimony, Grooms operated several real estate investment companies that acquired and resold real estate. From 2013 to 2018, Grooms devised a scheme in which one of his companies would purchase a property using borrowed funds, and he would then falsify documents to show that the lien against the property had been satisfied. He would then secure additional loans against the property, repeatedly filing fraudulent paperwork to show the property was unencumbered by liens.
Grooms used the scheme at least 24 times for nearly $3 million in fraudulent loans from multiple financial institutions. The properties used in the scheme were located in Georgia cities including Savannah, Hinesville, Glennville, Midway and Allenhurst.
“The Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG) is committed to holding accountable those who waste, steal, or abuse the resources of the government-sponsored enterprises regulated by FHFA. We are proud to have partnered with the U.S. Attorney’s Office for the Southern District of Georgia in this case,” said Edwin S. Bonano, Special Agent-in-Charge, FHFA-OIG, Southeast Region.
“This sentence should serve as a stark reminder that such greed as seen in this case comes with a bigger cost,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI recognizes the impact on the banking institution and will continue to dedicate investigative resources to target fraud in its many forms.”
“Committing high-level fraud will not be tolerated in Georgia,” said Georgia Bureau of Investigation (GBI) Director Vic Reynolds. “The GBI worked hard on this investigation with local and federal partners to bring this case to a successful prosecution.”
The case was investigated by the FBI, the Federal Housing Finance Agency Office of the Inspector General, the GBI, and the Tattnall County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorneys Tara M. Lyons and Asset Recovery Unit Chief Xavier A. Cunningham.
Haskell Resident Pleads Guilty to Embezzlement from A Labor OrganizationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Brenda G. Walters, age 60, of Haskell, Oklahoma entered a guilty plea to Embezzlement from a Labor Organization, in violation of Title 29, United States Code, Section 501(c), punishable by not more than 5 years’ imprisonment, a fine up to $10,000.00, or both.
From in or about January 2012, and continuing until in or about July 2020, within the Eastern District of Oklahoma and elsewhere, the defendant, while serving as the Secretary-Treasurer of American Postal Workers Union, AFL-CIO, Muskogee Local Area 7, a labor organization engaged in an industry affecting commerce, did embezzle, steal, abstract, and convert to her own use, money, funds, property, securities, and other assets of the labor organization in the approximate amount of $95,100.00.
The charges arose from an investigation by the United States Department of Labor - Office of Labor-Management Standards.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Michael Cooper represented the United States.
Hardy County man admits to role in drug trafficking operationRead the Press Release
ELKINS, WEST VIRGINIA – Kenneth Allan Evans, of Moorefield, West Virginia, has admitted to his role in a drug distribution operation, Acting United States Attorney Randolph J. Bernard announced.
Evans, 48, pleaded guilty today to one count of “Possession with Intent to Distribute Methamphetamine.” Evans admitted to having more than five grams of methamphetamine, also known as “crystal meth” or “ice,” in August 2018 in Hardy County.Evans faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, and the Moorefield Police Department investigated. The task force consists of the FBI, the West Virginia State Police, the Grant County Sheriff’s Office, the Hardy County Sheriff’s Office, the Mineral County Sheriff’s Office, and the Keyser Police Department.
U.S. Magistrate Judge Michael John Aloi presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/hardy-county-man-appears-drug-charges
Hampshire County residents indicted on drug chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Andrew Ross Hose, of Augusta, West Virginia, appeared today before a federal magistrate judge on drug charges after being indicted last week, Acting United States Attorney Randolph J. Bernard announced.
Hose, 36, was indicted on one count of “Conspiracy to Possess With Intent to Distribute and to Distribute Heroin, Fentanyl, and Methamphetamine,” one count of “Distribution of Methamphetamine,” one count of “Aiding and Abetting Distribution of Methamphetamine,” one count of “Possession with Intent to Distribute Heroin and Fentanyl Mixture,” and two counts of “Possession with Intent to Distribute Methamphetamine.”
Also named in the indictment is Jessica Lynn Lundbald, of Augusta, West Virginia. Lundbald, 23, was indicted on one count of “Conspiracy to Possess With Intent to Distribute and to Distribute Heroin, Fentanyl, and Methamphetamine,” one count of “Aiding and Abetting Distribution of Methamphetamine,” one count of “Possession with Intent to Distribute Heroin and Fentanyl Mixture,” and one count of “Possession with Intent to Distribute Methamphetamine.”
Hose and Lundbald are accused of working together to distribute heroin, fentanyl and, methamphetamine in Hampshire County and elsewhere from June 2020 to February 2021.
Hose and Lundbald each face up to 20 years of incarceration and a fine of up to $1,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, investigated. The task force consists of the FBI, the West Virginia State Police, the Grant County Sheriff’s Office, the Hardy County Sheriff’s Office, the Hampshire County Sheriff’s Office, the Mineral County Sheriff’s Office, and the Keyser Police Department.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Magistrate Robert W. Trumble presided.
Haitian National Charged with Illegal ReentryRead the Press Release
BOSTON – A Haitian national previously residing in Boston was arrested and charged in federal court in Boston with illegal reentry.
Friendly Grandoit, 42, was arrested on March 19, 2021 and charged with one count of illegal re-entry into the United States after deportation. Grandoit was detained following an initial appearance before U.S. District Court Magistrate Judge Marianne B. Bowler.
According to charging documents, in 2005, Grandoit was encountered in pre-trial detention by immigration officials while pending trial on drug distribution charges in Middlesex County. Grandoit was convicted in Sept. 2006 of trafficking in a controlled substance and sentenced to three years in prison. Upon completion of his sentence, Grandoit was placed into removal proceedings and deported to Haiti in July 2008.
Sometime after his removal, Grandoit illegally reentered the United States. In Sept. 2019, Grandoit was arrested and charged in Woburn District Court with distribution of cocaine, identity fraud and operating with a suspended license and was detained. In April 2020, Grandoit posted bail and was released from custody. ICE, who had filed a detainer with the jail, was not notified. On March 19, 2021, Grandoit was arrested in this case.
The charge of illegal reentry provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Mendell’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. – A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Wisconsin Rapids Man Charged with Child Pornography Crimes
Benjamin T. Mann, 39, Wisconsin Rapids, Wisconsin, is charged with five counts of distributing child pornography and one count of possessing child pornography. The indictment alleges that in March and April 2020, Mann used Kik to distribute images of a minor engaged in sexually explicit conduct. The indictment also alleges that on March 3, 2021, Mann possessed a phone containing visual depictions of minors engaging in sexually explicit conduct, and that at least one of the depictions involved a minor who had not attained 12 years of age.
If convicted, Mann faces a mandatory minimum penalty of 5 years and a maximum of 20 years in federal prison on each distribution count, and a maximum of 10 years on the possession count. The charges against him are the result of an investigation by U.S. Immigration and Custom Enforcement’s Homeland Security Investigations, the Wisconsin Department of Justice Division of Criminal Investigation, and Wood County Sheriff’s Office. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
La Crosse Man Charged with Drug Crimes Involving Crack Cocaine & Cocaine
Aubrey L. Marshall, 45, La Crosse, Wisconsin, is charged with two counts of distributing crack cocaine. The indictment alleges that one of the distributions involved 28 grams or more of crack cocaine. He is also charged with one count of possessing 28 grams or more of crack cocaine for distribution, and one count of possessing cocaine for distribution. The indictment alleges that he distributed crack cocaine on January 18 and 25, 2021 and that he possessed crack cocaine and cocaine for distribution on January 25, 2021.
If convicted, Marshall faces a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison on each of the charges alleging 28 grams or more of crack cocaine, and a maximum of 20 years on the other two counts.
The charges against Marshall are the result of an investigation by the La Crosse Police Department and Federal Bureau of Investigation. Assistant U.S. Attorney Steven Anderson is handling the prosecution.
Chippewa Falls Man Charged with Possessing Methamphetamine for Distribution
Justin Barnard, 36, Chippewa Falls, Wisconsin, is charged with possessing 50 grams or more of methamphetamine for distribution. The indictment alleges that he possessed the methamphetamine on November 23, 2020.
If convicted, Barnard faces a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison. The charge against him is the result of an investigation by the West Central Drug Task Force, Menomonie Police Department, and Dunn County Sheriff’s Office. Assistant U.S. Attorney Taylor Kraus is handling the prosecution.
German Attorney Pleads Guilty to Money LaunderingRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Henning Schwarzkopf, a citizen of Germany and an attorney licensed to practice in Germany, pleaded guilty before United States Magistrate Judge Ramon E. Reyes, Jr., to money laundering by transferring funds that he believed to be the proceeds of a securities fraud scheme through the bank account of a Hong Kong shell company controlled by the defendant. Schwarzkopf was arrested on a criminal complaint in October 2020. When sentenced, Schwarzkopf faces up to 20 years in prison, as well as forfeiture and a fine of up to $250,000.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.
“Schwarzkopf brazenly plotted to launder over $1 million in funds that he believed had been stolen from investors trading in the securities markets,” stated Acting United States Attorney Lesko. “This Office, together with our law enforcement partners, will vigorously prosecute and hold accountable corrupt lawyers like the defendant who abuse their specialized knowledge to commit crimes.” Mr. Lesko thanked the Hamburg, Germany State Bureau of Criminal Investigation, the Hamburg, Germany Prosecution Service, and the Monaco Police Department Criminal Division for their assistance during the investigation.
“Schwarzkopf knew the money he was moving from the account of a Hong Kong-based shell company to bank accounts in New York was obtained through fraudulent means, but proceeded to engage in this money laundering scheme anyway in exchange for more than $50,000 in illegal kickbacks. Today’s guilty plea signals an end to Schwarzkopf’s fraud, but our office will continue to pursue all criminals whose crimes affect the integrity of the financial markets,” stated FBI Assistant Director-in-Charge Sweeney.
According to court filings and facts presented at his guilty plea, an undercover agent (“Undercover Agent”) was introduced to Schwarzkopf in October 2019 as someone who would launder money for the Undercover Agent. In subsequent encrypted communications and in two face-to-face meetings in Monaco and Germany, the Undercover Agent told Schwarzkopf that he was a stock promoter who operated pump-and-dump schemes in which he manipulated the price and trading volume of shares of publicly-traded companies. Furthermore, the Undercover Agent explained that as part of those schemes, he paid illegal kickbacks to stockbrokers who purchased the shares. The Undercover Agent advised Schwarzkopf that he wanted him to “create a fog” around those illegal kickbacks in order to disguise the source of the funds before they reached the brokers. Schwarzkopf agreed to transfer the funds and to falsely characterize the payments as “invoices” or “loan agreements.” Schwarzkopf retained a five percent fee from each transfer, even though he provided no services except to receive funds from the Undercover Agent in the bank account of a Hong Kong-based shell company that he controlled, and then forward those funds to bank accounts in New York.
Between December 29, 2019 and August 2020, Schwarzkopf sent 30 transfers totaling approximately $1,100,784 that he believed were the proceeds of securities fraud from the Hong Kong bank account of his shell company to bank accounts in the United States, earning approximately $57,936 in fees.
The case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Mathew S. Miller and David Gopstein are in charge of the prosecution.
The Defendant:
HENNING SCHWARZKOPF
Age: 69
Hamburg, GermanyE.D.N.Y. Docket No. 21-CR-117 (EK)
Georgia Institute of Technology professor charged with Visa and wire fraudRead the Press Release
ATLANTA - Gee-Kung Chang has been arraigned on federal charges of conspiracy to commit visa fraud, conspiracy to commit wire fraud, and wire fraud. Chang and Jianjun Yu were indicted on March 18, 2021.
“The defendants allegedly abused the visa program and deceived Georgia Tech to bring researchers into the United States,” said Acting U.S. Attorney Kurt R. Erskine. “The charges presented are the first step toward holding them accountable.”
“The United States welcomes academics and researchers from across the globe,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “But we cannot allow anyone to exploit our benevolence. That's what these defendants are accused of doing and now they will be judged.”
“Schemes like this not only steal invaluable opportunities from legitimate, hard-working students it also allows scammers to come to the United States and profit from their misdeeds,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Identifying, arresting and prosecuting violators is vital to protect the integrity of our nation’s visa program.”
According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: Chang, a professor at the Georgia Institute of Technology (“Georgia Tech”) in Atlanta, Georgia, and Yu, who was then a research director at ZTE USA—a subsidiary of ZTE Corporation, a partially state-owned Chinese telecommunications and information technology company—in Morristown, New Jersey, allegedly conspired together to bring Chinese nationals to the United States to conduct research at the company.
To facilitate the entry of the Chinese nationals into the United States, Chang allegedly abused his position as a professor at Georgia Tech, an institution that was a designated exchange sponsor for the Department of State’s J-1 Visa program, to arrange for Chinese nationals to fraudulently obtain and maintain J-1 Visas.
The J-1 Visa program is for individuals approved to participate in specific work-and-study-based exchange visitor programs with exchange sponsor institutions, like Georgia Tech. The program is not intended for general employment of foreign workers in the United States.
In the J-1 Visa paperwork submitted to the Department of State, the Chinese nationals allegedly indicated that they would be working with Chang at Georgia Tech. In reality, the indictment alleges, after arriving in the United States, the Chinese nationals traveled to and resided in New Jersey to work with Yu at ZTE USA. And, in some instances, Chinese nationals were paid salaries from Georgia Tech while they were actually working at ZTE USA.
Gee-Kung Chang, 73, of Smyrna, Georgia, was arraigned before U.S. Magistrate Judge Christopher C. Bly. Chang and Jianjun Yu, 53, of Basking Ridge, New Jersey, were indicted by a federal grand jury on March 18, 2021. Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant U.S. Attorney Samir Kaushal is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Fortson, Georgia Man Pleads Guilty in International Child Exploitation CaseRead the Press Release
COLUMBUS, Ga. – A Fortson, Georgia man has pleaded guilty to coercion and enticement of a minor as a result of an international child exploitation investigation, said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia.
Brandon Bywater, 27, of Fortson, Georgia, pleaded guilty to one count coercion and enticement of a minor before U.S. District Judge Clay D. Land. Bywater faces a mandatory minimum sentence of ten years and up to life in prison, a term of supervised release of not less than five years and up to lifetime supervision, and a $250,000 fine. In addition, Bywater will be required to register as a sex offender under the Sex Offender Registration Act. Sentencing is scheduled for July 14, 2021. There is no parole in the federal system.
“Our office will pursue federal prosecution to its fullest against those who seek to harm children,” said Acting U.S. Attorney Leary. “I commend the excellent work of Homeland Security Investigations and the Harris County Sheriff’s Office, and also extend our gratitude to the Royal Canadian Mounted Police (RCMP) Centre for Missing and Exploited Children for its critical role launching this investigation and helping to stop a child predator.”
“Great teamwork and the dedication to protecting our most vulnerable resource, our children, led to the successful resolution of this case,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “This case reinforces the need for caution when using social media or connecting with people online because you don’t know who you’re interacting with. The more vigilant you are the more you help us prevent these crimes.”
On June 26, 2018, a Kik social media app user “drawingkid500” uploaded child pornography. This was detected by Kik and forwarded to the Royal Canadian Mounted Police (RCMP) Centre for Missing and Exploited Children. The case was referred to Homeland Security Investigations (HSI) after the RCMP geo-located the IP address of the Kik user to the United States. HSI’s investigation led to a search warrant of Bywater’s residence. Bywater admitted to being Kik user “drawingkid500” and that he sent, received and downloaded images of child pornography, including images of toddlers and infants. Agents discovered 27 images of child exploitation on Bywater’s phone, with 14 involving child pornography of prepubescent children. During a forensic examination of a device seized from the defendant, it was discovered that Bywater had texted with a 13-year-old 7th grader more than 400 times. In these texts, Bywater initially pretended to be a high school sophomore named “Jack” and enticed the victim to send nude photos of herself. In addition to receiving nude photos of the victim, Bywater sent nude photos of himself to the girl.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by Homeland Security Investigations (HSI) and the Harris County Sheriff’s Office. Assistant U.S. Attorney Crawford Seals is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Former state trooper charged with sexually assaulting two women while on dutyRead the Press Release
HOUSTON – Authorities are seeking potential victims following the arrest of a 32-year-old Spring man on federal civil rights violations, announced Acting U.S. Attorney Jennifer B. Lowery.
Lee Ray Boykin Jr. is a former State Trooper with the Texas Department of Public Safety. The criminal complaint, filed today, alleges he deprived two separate victims of their right to bodily integrity. He is also charged with carrying and using a firearm during a crime of violence as well as destruction, alteration or falsification of records in a federal investigation.
Boykin is expected to make his initial appearance before U.S. Magistrate Judge Sam S. Sheldon at 2 p.m. today.
The complaint alleges that on Aug. 7, 2020, Boykin conducted a traffic stop near an Express Inn at 9025 North Freeway in Houston. After issuing the driver a written warning, Boykin allegedly ordered the passenger to get into his patrol car. The charges allege he then drove her to a back parking lot at 10700 North Freeway and parked near a dumpster. There, he threatened to take the victim to jail for an out-of-state warrant if she did not perform oral sex on him, according to the complaint. She allegedly feared for her life and safety and obeyed Boykin’s commands. Following the sex act, Boykin placed his hand on his weapon and ordered her to run, according to the charges.
The investigation revealed there had been a second victim, according to the complaint. On Aug. 3, 2020, Boykin had allegedly pulled up behind a vehicle parked at a Texaco gas station at 9404 North Freeway in Houston. He told the passenger she had outstanding warrants and said he was taking her to a substation, according to the charges. He then allegedly ordered her into his vehicle and drove her to the same back parking lot at 10700 North Freeway. The complaint alleges Boykin told her he knew what she did for a living and wanted some of it - meaning sex. Fearing Boykin, she complied with his demands and performed oral sex on him, according to the charges.
If convicted, he faces up to life in prison.
Authorities believe there may be other victims. Anyone with information about potential additional victims is asked to contact the FBI at 713-693-5000.
The Houston Police Department, Texas Rangers and FBI are conducting the investigation. Assistant U.S. Attorneys Sebastian Edwards and Eun Kate Suh are prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Former drug clinic employee sentenced for trafficking meth while on bondRead the Press Release
CORPUS CHRISTI, Texas – A 44-year-old resident of Corpus Christi has been ordered to prison after admitting her role in a federal drug scheme, announced Acting U.S. Attorney Jennifer B. Lowery.
Katrina Kelly pleaded guilty Nov. 19, 2020.
Today, U.S. District Judge David S. Morales ordered her to serve a 96-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard additional information describing Kelly's drug trafficking after previously earning a master's degree in social work and serving as a rehabilitation program specialist for a methadone clinic with Texas Health and Human Services. In handing down the sentence, Judge Morales noted Kelly's continued criminal conduct even while on bond in two federal cases.
In April 2020, Kelly was involved in a conspiracy with others to possess with intent to distribute kilograms of meth. She negotiated terms of the sale or distributed the meth from a residence in Corpus Christi. Laboratory analysis later positively confirmed the substance linked to her was meth.
Previously released on bond, Kelly was later taken into custody after violating the terms of her bond conditions. She will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with assistance from Texas Department of Public Safety and police departments in Kingsville and Corpus Christi. Assistant U.S. Attorney Reid Manning prosecuted the case.
Former Statesboro medical practice employees sentenced for embezzlementRead the Press Release
STATESBORO, GA: Two former employees of a Statesboro pediatrics practice have been sentenced to federal prison for stealing money from the business.
Kristen Hart, 37, of Statesboro, and Alisa Brown, 44, of Statesboro, each pled guilty to an Information charging them with Theft or Embezzlement in Connection with Health Care, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia.
U.S. District Court Chief Judge J. Randal Hall sentenced Hart to 16 months in prison and ordered her to pay $115,550.69 in restitution, and U.S. District Court Judge R. Stan Baker sentenced Brown to 21 months in federal prison and ordered her to pay $239,626.86 in restitution and a fine of $1,000. Each must serve 3 years of supervised release after completion of their prison term, and there is no parole in the federal system.
“The COVID-19 pandemic has presented a significant challenge for small businesses, including health care practices,” said Acting U.S. Attorney Estes. “It’s much more difficult when seemingly trustworthy employees treat their jobs as a license to steal.”
As described in court documents and testimony, Hart and Brown were employees of Bulloch Pediatrics Group who used a variety of methods to steal from their employer. Hart, the office manager, began to make personal purchases on the office’s bank cards in 2015 and eventually spent tens of thousands of dollars at various businesses, including Amazon. Brown, a nurse manager who began to steal from her employer in 2013, and Hart also both purchased thousands of dollars in postal money orders which they would then convert to their own use without their employer’s knowledge or consent. When the thefts were uncovered in 2020, both employees were terminated and prosecuted.
“As this case highlights, the United States Postal Inspection Service will assist its law enforcement partners and help bring individuals to justice who misuse the United States Postal Service or its services, to steal from victim businesses or individuals,” said Juan Vargas, Acting Inspector in Charge of the Miami Division of the U.S. Postal Inspection Service-Miami Division.
“Greed is not good,” said U.S. Secret Service Atlanta Special Agent in Charge Steven Baisel. “Those who chase its allure, particularly at the expense of those who trust them, will most often find themselves trapped. We will continue to work with our law enforcement partners to bring them to justice.”
The U.S. Secret Service and the U.S. Postal Inspection Service investigated the case, which was prosecuted on behalf of the United States by the U.S. Attorney’s Office for the Southern District of Georgia.
Former Roanoke-Area EMS Worker Pleads Guilty to Tampering with Fentanyl and HydromorphoneRead the Press Release
ROANOKE, Va. – Jeffery Leedy, a former emergency medical services worker for Roanoke County Emergency Medical Services, pleaded guilty yesterday in U.S. District Court in Roanoke to tampering with vials of fentanyl and hydromorphone, Acting United States Attorney Daniel P. Bubar announced.
Leedy, 31, pleaded guilty to one count of tampering with a consumer product (fentanyl and hydromorphone) that affects interstate commerce with reckless disregard for the risk that another person will be placed in danger of death or bodily injury. At sentencing, Leedy faces a maximum possible sentence of up to ten years in prison and a fine of up to $250,000.
“When Leedy tampered with fentanyl and hydromorphone, he put patients’ care at risk, violated the trust we place in our health care workers, and committed a serious crime,” said Acting U.S. Attorney Bubar today. “I applaud the good work carried out by FDA and the Virginia State Police to ensure the public receives unadulterated medication.”
According to court documents, from November 2018 to June 2019, Leedy tampered with at least 50 vials of fentanyl and hydromorphone while working at Centra Lynchburg General Hospital and as an Emergency Medical Services (EMS) worker for Roanoke County Emergency Medical Services.
On May 16, 2019, a Roanoke City EMS ambulance crew member discovered a suspected tampered vial of fentanyl while on an EMS call. When he attempted to administer the vial to a patient, he noticed the cap was not secured and believed the vial has been tampered with. Further investigation revealed that Leedy had tampered with the vial by removing the fentanyl and replacing it with saline.
A supervisor with the Roanoke County EMS queried the access card database and determined that Leedy had been accessing the rescue squad building at night, while he was not working, to take the fentanyl. Further investigation revealed at least 50 vials of fentanyl and hydromorphone had been tampered with.
The investigation of the case was conducted by the Food and Drug Administration – Office of Criminal Investigations and Virginia State Police. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.
Five men indicted on multiple charges in mail theft schemeRead the Press Release
HOUSTON – A federal grand jury sitting in Houston has returned a superseding indictment against five Honduran nationals in a bank fraud conspiracy, announced Acting U.S. Attorney Jennifer B. Lowery.
Angel Javier Contreras Melara, 44, Bayron Rolando Guzman Yanez, 28, Elvin Lioile Rivas, 22, Hoffman Ramon Osorio Gallardo, 29, and Jonathan Arreaga Camey, 35, are charged with conspiracy to commit bank fraud, bank fraud, possession of stolen mail and aggravated identity theft. All but Camey were illegally residing in Houston. Camey is a legal permanent resident of Houston but could lose his status if convicted.
Melara and Rivas are currently in custody. The remaining three were permitted release pending further criminal proceedings. All are expected to appear for their arraignments on the charges in the superseding indictment before a U.S. magistrate judge in the near future.
The 17-count indictment alleges multiple mail thefts throughout the Greater Houston area beginning in mid-2019 and continuing through the end of 2020. The conspirators would allegedly look for checks within the stolen mail and alter them to deposit into accounts the conspirators controlled.
If convicted, the defendants face up to 30 years in prison for the conspiracy and bank fraud counts and five years if convicted of the mail theft. They also face an additional and mandatory two years for the aggravated identity theft counts which must be served consecutively to any other prison term imposed.
The U.S. Postal Inspection Service conducted the investigation with the assistance of police departments in Meadows Place, Houston and Sugar Land. Assistant U.S. Attorney Christine Lu is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Five Face Federal Charges for Alleged Nationwide Elder Fraud ScamRead the Press Release
Indianapolis – Acting United States Attorney John E. Childress announced federal charges and arrests of five individuals for their roles in a nationwide elder fraud conspiracy. According to the criminal complaint, Darlens Renard, age 31, of North Lauderdale, Florida; Jasaun Pope, age 30, of Valley Stream, New York; Princess Elizer, age 30, of Dallas, Georgia; Jennifer Glemeau, age 28, of Marietta, Georgia; and Kareem Brown, age 30, of North Baldwin, New York, were each charged with conspiracy to commit mail fraud and conspiracy to commit money laundering.
“Stealing the hard-earned money of seniors by preying on the love and commitment they have for their families is hard to comprehend,” said Childress. “This type of loss not only causes significant financial hardship; it causes an emotional hardship for the victims as well. Our office is committed to rooting out these fraudsters and holding them accountable so they no longer can victimize our senior Hoosiers.”
According to the charges, since at least April 2020, the defendants participated in a conspiracy to defraud seniors out of thousands of dollars in cash by convincing them that their relatives were in serious trouble and in dire need of money. The defendants would travel to a city, identify unoccupied residences where overnight packages could be sent, and relay those addresses to their co-conspirators. The co-conspirators would place calls to elderly victims and inform them that their grandchild or other relative had an urgent legal or medical problem and needed money immediately. The caller, who often claimed to be an attorney, police officer, or other authority figure, told the victim to send an overnight delivery of cash—typically between $5,000 and $15,000—to the address the defendants provided. The defendants tracked the overnight package of cash to the address, picked it up shortly after delivery, and then took their cut of the proceeds before sharing it with their co-conspirators.
To date, investigators have identified numerous victims of the defendants’ scheme, who in total have lost over $350,000.
The charges allege that since April 2020 the defendants traveled to at least ten cities in five different states to perpetrate their scheme. In mid-August 2020, they came to Indianapolis, Indiana. After the defendants identified addresses, scam calls were made to at least seven victims, each from different states, who ultimately sent money to Indianapolis.
According to the complaint, one of the victims, age 82, from Crawfordsville, Indiana, was told that her daughter had been in an accident and was in legal trouble because a gun was found in her vehicle. In addition to asking for money, the caller allegedly told the victim that there was a “gag order” in her daughter’s case, to prevent the victim from sharing the story with others. In two shipments, the Crawfordsville victim sent a total of $12,500 in cash to the defendants.
Similarly, another of the victims, age 81, from Orleans, Massachusetts, was allegedly told that her grandniece was involved in a vehicle collision that badly injured children in the other vehicle. The caller said he needed $9,000 in cash to be sent immediately to an address in Indianapolis for medical bills and legal fees. The next day, after sending the money, the victim received another call asking for another $9,000. The victim agreed to send the money but happened to speak with her grandniece later that day and learned the caller’s story was a scam. The victim contacted law enforcement, which led to the investigation that resulted in today’s charges.
This investigation was led by the Internal Revenue Service–Criminal Investigation Division, U.S. Postal Inspection Service, and the Metro Drug Task Force. The investigation was supported by the Chicago Division of the U.S. Drug Enforcement Administration, Homeland Security Investigations, U.S. Marshal’s Service, and state and local law enforcement partners in Orleans, Massachusetts; Bartonville, Illinois; Starkville, Mississippi; New York, New York; Ossining, New York; Westchester County, New York; Delaware County, Ohio; Hermantown, Pennsylvania; Charleston, South Carolina; Myrtle Beach, South Carolina; Sumter County, South Carolina; Hendersonville, Tennessee; Sumner County, Tennessee; Hurst, Texas; and Richmond, Virginia.
Tamera Cantu, Acting Special Agent in Charge of the IRS Criminal Investigation Division in Chicago stated, “IRS Criminal Investigation will continue to do what it does best…follow the money and disrupt criminal enterprises. In this case, the object of the defendant’s schemes was to defraud the elderly. These charges are the result of ongoing efforts to protect and dissuade international criminal enterprises from establishing themselves in Indiana. Together with the cooperative efforts of our law enforcement partners, we identified and vigorously investigated the fraud and those involved in this scheme. IRS-CI is proud to be able to contribute our financial expertise to this international collaboration of law enforcement agencies.”
Bryan Musgrove, Acting Inspector in Charge of the Detroit Division of the U.S. Postal Inspection Service stated, “This investigation was an excellent example of a partnership between federal and state law enforcement agencies and the Southern District of Indiana U.S. Attorney’s Office. Together these partners brought down a large-scale fraud conspiracy that targeted the elderly. I fully commend the hard work and countless hours put forth by all the law enforcement agencies involved. Because of their hard work, several defendants who operated throughout the U.S. and Canada were brought to justice.”
Raquel Ramirez, Director of the Metro Drug Task Force stated, “Although typically focusing on large-scale drug trafficking and violent offenders, Metro Drug Task Force was proud to participate in the international collaboration of law enforcement agencies to investigate and arrest this international criminal group targeting our most vulnerable citizens for financial gain.”
The U.S. Attorney’s Office would also like to thank the Sûreté du Québec’s (Quebec Security) National Organized Crime Suppression Squad for their support and assistance during this investigation. Today, the Canadian authorities, based in Montreal, announced that they are currently carrying out a major law enforcement operation, including multiple search warrants, that targets a criminal organization perpetrating the elder fraud scam, which has specifically targeted victims in the United States.
According to Assistant United States Attorneys Nick Linder and MaryAnn Mindrum, who are prosecuting this case for the government, each of the co-conspirators faces up to 20 years in prison on each charge if indicted and convicted.
A criminal complaint is not a finding of guilt. All defendants are presumed innocent until proven otherwise, by trial or guilty plea, in federal court.
The Department of Justice has an interactive tool for elders who have been financially exploited to help determine to which agency they should report their incident, and also a senior scam alert website. Elder fraud complaints may be filed with the FTC at https://reportfraud.ftc.gov/#/ or at 877-FTC-HELP.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to investigating and prosecuting those who engage in fraud and money laundering. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 5.1.
First North Korean National Brought to the United States to Stand Trial for Money Laundering OffensesRead the Press Release
WASHINGTON – After nearly two years of legal proceedings, Mun Chol Myong (“Mun”), 55, a national of the Democratic People’s Republic of Korea (DPRK), has been extradited to the United States. This case represents the first ever extradition to the United States of a DPRK national. Mun is accused of laundering money through the U.S. financial system as part of a scheme to provide luxury items to the DPRK.
“The indictment alleges that Mun defrauded banks and laundered money in an effort to evade counter-proliferation sanctions imposed on North Korea by the United States and the United Nations,” said John C. Demers, Assistant Attorney General for National Security. “He is the first North Korean intelligence operative—and the second-ever foreign intelligence operative—to have been extradited to the United States for violations of our laws. We will continue to use the long reach of our laws to protect the American people from sanctions evasion and other national security threats.”
“We are pleased that Mun has been extradited and will stand trial for the offenses alleged in the indictment,” said Acting U.S. Attorney Channing D. Phillips for the District of Columbia. “The U.S. Attorney’s Office for the District of Columbia will always be prepared to protect our nation’s financial system and pursue those who violate our laws, regardless of where they might hide.”
“One of the FBI’s biggest counterintelligence challenges is bringing overseas defendants to justice, especially in the case of North Korea,” said Alan E. Kohler, Jr. Assistant Director of the FBI’s Counterintelligence Division. “Thanks to the FBI’s partnership with foreign authorities, we’re proud to bring Mun Chol Myong to the United States to face justice, and we hope he will be the first of many.”
“It is important to underscore the relevance of this first-ever extradition of a North Korean national,” said Michael F. Paul, Special Agent in Charge of the FBI’s Minneapolis field office. “Our Minneapolis agents worked this case closely with international partners highlighting how FBI special agents are persistent and have an international impact wherever they are.”
According to the indictment and other court documents unsealed today, between Apr. 2013 and Nov. 2018, Mun and others conspired to covertly and fraudulently access the U.S. financial system. Mun is alleged to have defrauded U.S. banks and violated both U.S. and U.N. sanctions as part of his money laundering activities in transactions valued at over $1.5 million. The indictment further alleges that Mun was affiliated with the DPRK’s primary intelligence organization, the Reconnaissance General Bureau (RGB), which is the subject of U.S. and U.N. sanctions.
Mun has been detained in a foreign country since his arrest by local authorities on May 14, 2019. He made his initial appearance today in federal court in the District of Columbia, where he was indicted on May 2, 2019. Mun faces six counts of money laundering, including conspiracy to commit money laundering.
According to the indictment, Mun and his conspirators went to great lengths to avoid detection of their sanctions-busting operation. They used a web of front companies and bank accounts registered to false names and removed references to the DPRK from international wire transfer and transactional documents. By intentionally concealing that their transactions were for the benefit of DPRK entities, Mun and his conspirators deceived U.S. correspondent banks into processing U.S. dollar transactions for the benefit of DPRK entities, which the correspondent banks would have otherwise not processed.
This investigation was conducted by the FBI’s Minneapolis Field Office and coordinated by the FBI’s Counterintelligence Division. The Department of Justice would also like to thank the U.S. Indo-Pacific Command and the U.S. Marshals Service (USMS) Investigative Operations Division (IOD) for providing analytical support during the investigation.
Assistant U.S. Attorneys Michael P. Grady and Tejpal S. Chawla of the U.S. Attorney’s Office for the District of Columbia, and Trial Attorney David C. Recker of the National Security Division’s Counterintelligence and Export Control Section. The Justice Department’s Office of International Affairs provided substantial assistance in securing Mun’s arrest and extradition. The FBI’s Washington Field Office also provided essential support during the extradition process.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty beyond a reasonable doubt in a court of law.
Felon Pleads Guilty to Possession of FirearmRead the Press Release
CHARLESTON, W.Va. – A felon pleaded guilty today to being in possession of a firearm. John Leach, 55, formerly of St. Albans, was indicted by a federal grand jury in September 2020.
Leach admitted that on November 25, 2018, he was driving an improperly registered truck and was pulled over by the West Virginia State Police. In the truck, Leach had a loaded .25 caliber pistol. Leach was prohibited from possessing firearms due to multiple, prior felony convictions, including a 2006 conviction for malicious wounding in Kanawha County Circuit Court.
“I thank the West Virginia State Police and the ATF for their excellent work in this case,” said Acting United States Attorney Lisa G. Johnston.
Leach faces up to 10 years in prison when he is sentenced on June 30, 2021.
The West Virginia State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Steve Loew is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00172.
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Fayette County man admits to drug distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Darrell Ernest Reese, of Robson, West Virginia, has admitted to heroin distribution, Acting United States Attorney Randolph J. Bernard announced.
Reese, age 44, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Heroin.” Reese admitted to working with another to distribute heroin in March 2019 in Harrison County.Reese faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Ex-police officer sent to prison after drug stopRead the Press Release
HOUSTON – A former officer with the Houston Police Department (HPD) has been ordered to prison after admitting her guilt in a Houston-area cocaine conspiracy, announced Acting U.S. Attorney Jennifer B. Lowery.
Julissa Diaz, 41, Houston, pleaded guilty Jan. 16, 2020, to conspiracy to possess with the intent to distribute cocaine. At that time, she admitted she stopped a vehicle containing cocaine and arrested the occupant to allow others to steal the drugs.
Today, U.S. District Judge Gray Miller ordered her to serve an 87-month sentence to be immediately followed by three years of supervised release.
Diaz is no longer employed with HPD.
“Julissa Diaz used her position as a sworn police officer to commit these crimes. When she participated in the drug trafficking conspiracy, she violated a sacred oath, as well as the trust our city placed in her,” stated Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux. “Each day, the overwhelming majority of law enforcement officers place their lives on the line to protect our communities, while upholding the trust of a nation, and stand firmly against those few who would tarnish our badge.”
In early November 2018, Carlos Campos identified a potential drug courier and provided that information to Jesse Holt, a tow truck driver. Holt passed the information Ricardo Diaz – the then husband of Julissa Diaz - who gave it to his wife and asked her to conduct the illegal stop.
On Nov. 8, 2018, Julissa Diaz stopped and arrested the occupant who was actually an undercover officer posing as the drug courier. The vehicle contained eight kilograms of cocaine. Julissa Diaz deliberately left the drugs in the car so the co-conspirators could then steal it. Holt was stationed nearby and towed the car away.
Ricardo Diaz - her now ex-husband, 46, Campos, 35 and Holt, 46, all of Houston, also pleaded guilty. Campos later received an 87-month sentence, while Ricardo Diaz was sentenced to 108 months. Holt was ordered to serve a 42-month term of imprisonment. All of the sentences will be immediately followed by five years of supervised release.
Julissa Diaz was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The DEA and HPD conducted the investigation. Assistant U.S. Attorneys Craig Feazel and John Jocher prosecuted the case.
Elizabethtown Man Sentenced to Federal Prison After Being Caught During Sting OperationRead the Press Release
LOUISVILLE, KY. – Travis Puckett, 23, originally of Elizabethtown, Kentucky, previously pled guilty before United States District Judge Rebecca Grady Jennings for attempted online enticement of a minor, announced Acting United States Attorney Michael A. Bennett. Today, Judge Jennings sentenced Puckett to 10 years in prison followed by a 15-year term of Supervised Release. There is no parole in the federal system. Puckett will be required to register as a sex offender.
“Mr. Puckett will serve a 10-year federal prison sentence followed by 15 years of supervision as a result of the outstanding work of AUSA Lawless and our federal, state, and local law enforcement partners,” stated Acting U.S. Attorney Bennett. “Our children and communities are safer because of their tireless effort in identifying, charging, and prosecuting those who engage in this egregious criminal conduct.”
According to the Plea Agreement, on October 6, 2019, a Detective with the Louisville Metro Police Department took part in an undercover investigation on the Internet. The Detective posed as a 14-year-old girl on a social media app. At approximately 6:00 p.m. that evening, a person using the profile of a 22-year-old, white male, from Elizabethtown, and identified as “Travis,” sent the undercover profile a message. “Travis,” later identified as Puckett, initially stated he thought the undercover officer was the police and then stated that he wished the undercover officer was 18. Puckett texted, “your cute and all just don’t want any charges.”
Puckett requested that the undercover detective prove he wasn’t the police and provided a Snapchat username for further communication. The undercover detective communicated with Puckett via Snapchat and sent several non-pornographic pictures of an undercover female officer, all the while maintaining the age of 14. The two stopped communicating at approximately 11:30 p.m. that evening, as the undercover advised that “her” parents were home and they could talk the next day. The next day, around noon, Puckett initiated contact with the undercover. Puckett asked what the undercover was doing that evening around 8:00 p.m. Puckett asked to get together and directed the conversation towards sex. At approximately 10:30 p.m. that evening, Puckett arrived at the agreed upon location and was arrested. When he arrived, he had a cellular telephone and condoms.
During a post-Miranda interview, Puckett admitted he was the person who had been communicating with a 14-year-old girl, beginning on the social media app “Skout.” He admitted telling her he wanted to engage in sexual activities. During the interview, Puckett wrote an apology letter to the undercover persona. In it, he stated he was sorry and that he felt terrible for disrespecting her.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The joint investigation was conducted by the United States Secret Service, Kentucky Office of the Attorney General, Kentucky State Police, and Louisville Metro Police Department.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
El Paso Man Sentenced to Federal Prison for Money Laundering Connected to East Texas Meth Trafficking RingRead the Press Release
MARSHALL, Texas – An El Paso man was sentenced to prison today for his role in a money laundering conspiracy in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Damian Munoz, 36, pleaded guilty on April 20, 2020 to conspiracy to commit money laundering and was sentenced to 35 months in federal prison by U.S. District Judge Rodney Gilstrap today.
“Drug trafficking is a predatory enterprise that victimizes vulnerable addicts, while simultaneously encouraging violence and criminality for profit,” said Acting U.S. Attorney Nicholas J. Ganjei. “We are committed to cutting off the flow of profits to those who would harm our communities in order to put them out of business.”
According to information presented in court, Munoz was associated with an organization responsible for importing large quantities of methamphetamine from Mexico and distributing it in Hughes Springs and elsewhere. The organization was also responsible for trafficking numerous firearms acquired in East Texas down to Mexico. Munoz received more than $15,000 in drug proceeds from traffickers and then transported this cash to others located in Mexico. On May 16, 2019, twenty-one others were indicted by a federal grand jury, and charged with violations of federal drug trafficking, firearms, and money laundering laws.
Operation Patch Over is a long-term drug trafficking and money-laundering investigation that has already resulted in the arrest and prosecution of numerous co-conspirators. Twenty others have already pleaded guilty and been sentenced in the case, including Oscar Dean Davis, who received 264 months in prison as the head of the East Texas methamphetamine distribution ring.
This is an Organized Crime Drug Enforcement Task Force (OCDETF) case and is being investigated by the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Texas Department of Public Safety. This case is being prosecuted by Assistant U.S. Attorney Lucas Machicek. OCDETF is the largest anti-crime task force in the country and its mission is to disrupt and dismantle the most significant drug trafficking and transnational criminal organizations that threaten the United States. The prosecutor-led, intelligence-driven, multi-agency task forces leverage the authorities and expertise of federal, state, and local law enforcement.
Eight Charged with Conspiring to Distribute Fentanyl and Cocaine and Money Laundering ConspiracyRead the Press Release
BOSTON – Eight people were charged in federal court in Boston in connection with an investigation into a Boston-based fentanyl and cocaine trafficking and money laundering organization.
According to charging documents, a year-long wiretap investigation revealed that the defendants, who were directly connected to a poly-drug trafficking organization operating in Mexico, were actively distributing fentanyl and cocaine and laundering drug proceeds on behalf of a Mexican organization.
“All eyes have been on the COVID pandemic, but the opioid epidemic continues to kill thousands of people in Massachusetts each year,” said Acting United States Attorney Nathaniel R. Mendell. “Prosecuting drug traffickers who profit off of addiction and desperation is essential to save lives, protect the vulnerable and make communities safer. On behalf of all our federal partners, I would like to acknowledge the exceptional work of the Massachusetts State Police in this case. Their investigative skills and commitment to teamwork made this result possible.”
“DEA is committed to investigating and dismantling large-scale poly drug trafficking organizations like this one operating throughout the Northeast,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division. “This organization was allegedly responsible for the distribution of multi kilogram shipments of fentanyl and cocaine on behalf of their Mexican sources of supply. This investigation demonstrates the strength of collaborative local, state and federal law enforcement efforts in Massachusetts and our strong partnership with the U.S. Attorney’s Office to seek and bring to justice anyone who engages in these crimes.”
“This case disrupted a Boston-based drug trafficking organization with direct ties to a Mexican cartel that allegedly distributed dangerous drugs like fentanyl and cocaine in our communities and conspired to launder their proceeds in an effort to conceal what they were doing,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Investigations like this prove the essential value of strong partnerships among federal, state and local law enforcement agencies and the importance of working together to dismantle criminal enterprises that profit from flooding our streets with illicit drugs.”
“As alleged, these arrests represent the dismantlement of a transnational criminal organization that profited from flooding the streets with dangerous narcotics,” said William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations, Boston. “The apprehensions in this investigation could only have occurred through the tireless efforts and close cooperation of many local, state and federal law enforcement partners throughout the region. HSI Boston is grateful to all of these partners and to the United States Attorney’s Office for the District of Massachusetts for their dedication to bringing these defendants, whose alleged crimes have damaged countless lives in New England, to justice.”
“Much of the illegal narcotics trade in Massachusetts is sourced by drugs coming from other countries, and a comprehensive narcotics interdiction strategy must target not just the local street-level dealers at the end of the chain, but also those with ties to the international source,” said Colonel Christopher S. Mason, Superintendent of the Massachusetts State Police. “As shown by these charges, this operation was successful in doing just that and deals a blow to this particular pipeline of fentanyl and cocaine from Mexico into the Boston area. I commend the federal, state and local officers whose hard work produced these excellent results.”
The following individuals were charged by criminal complaint with conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl and cocaine and conspiracy to launder money:
1. Cesar Alejandro Castro Pujols, a Dominican national residing in Milton, Mass.;
2. Andre Heraux Martinez, a Dominican national residing in Hyde Park, Mass.;
3. Fermin Castillo, residing in Mexico;
4. Saturnino Guerrero, a Dominican national residing in Roxbury, Mass.;
5. Kevin Carmona Victorino, of Dorchester, Mass.; and
6. Kevin Hayes, of Centerville, Mass.
Castro, Heraux, Castillo, Guerrero and Carmona were also charged with conspiracy to launder money, along with:
7. Songfeng Chen, a Chinese national residing in Quincy, Mass.; and
8. Chi Ying, a Chinese national residing in Malden, Mass.
According to the criminal complaint, investigators intercepted phone communications by various members of a Massachusetts-based drug cell that was being supplied with large quantities of fentanyl and cocaine by a Mexican drug trafficking organization. It is alleged that Castro, the leader of a Massachusetts-based drug cell, coordinated directly with Mexico-based drug suppliers to obtain and distribute drugs and to launder drug proceeds. Heraux and Carmona assisted Castro in distributing drugs and laundering drug proceeds. Castro allegedly supplied fentanyl and cocaine to Guerrero, who distributed those drugs to his own customer base. It is further alleged that Chin and Ying worked for money laundering organizations that laundered drug proceeds on behalf of the Mexican organization.
On March 23, 2021, investigators seized approximately 17 kilograms of fentanyl, approximately $220,000 in U.S. currency and three vehicles, including a Porsche while executing search warrants in Boston, Malden, Quincy, Milton and Centerville.
In August 2020, 18 additional defendants involved in this operation were charged with drug trafficking offenses.
To date, this investigation has resulted in charges against 26 defendants and the seizure of 55.5 kilograms of fentanyl, 24 kilograms of cocaine, 500 fentanyl pills and approximately $1,470,000 in cash and real assets.
The charge of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl provides for a sentence of at least 10 years and up to life in prison, at least five years and up to life of supervised release and a fine of up to $10 million. The charge of conspiracy to launder money provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Mendell, DEA SAC Boyle, FBI Boston SAC Bonavolonta, HSI Boston Acting SAC Walker and Massachusetts State Police Colonel Mason made the announcement. Valuable assistance was provided by the Bureau of Alcohol, Tobacco, and Firearms, Boston Field Division; the Internal Revenue Service’s Criminal Investigations in Boston; Boston Police Department; Barnstable Police Department; and the Suffolk and Plymouth County Sheriff Departments. Assistant U.S. Attorney Leah B. Foley of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation and was investigated by the Boston OCDETF Strike Force. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Delaware County Man Sentenced to 210 Months for Transportation of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Daniel Miller, age 26, of Stamford, New York, was sentenced today to serve 210 months (17.5 years) in federal prison for using his cellphone to upload child pornography to an online cloud storage account announced Acting United States Attorney Antoinette T. Bacon and Special Agent in Charge Thomas F. Relford of the Albany Field Office of the Federal Bureau of Investigations (FBI).
As part of his earlier guilty plea in United States District Court, Miller, who was twice previously convicted in Schoharie County Court: first in 2015 for Possessing an Obscene Sexual Performance by a Child, and then in 2017 for Sexual Abuse in the First Degree and Endangering the Welfare of a Child, admitted that while on probation for these prior convictions he uploaded images and videos of child pornography to his Dropbox account using a cellphone he was not permitted to have under the terms of his probation.
Senior United States District Judge Thomas J. McAvoy also imposed a 15-year term of supervised release, which will start after Miller is released from prison. As a result of his conviction, Miller will also be required to register as a sex offender upon his release from prison.
This case was investigated by the Federal Bureau of Investigation (FBI), the Delaware County Sheriff’s Office, and the Delaware County Probation Office and was prosecuted by Assistant U.S. Attorney Sahar L. Amandolare and Special Assistant U.S. Attorney Adrian S. LaRochelle.
The case was prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is 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 https://www.justice.gov/psc.
Davenport Man Sentenced to Prison for Drug and Firearm OffensesRead the Press Release
DAVENPORT, Iowa — On Friday, March 19, 2021, United States District Court Chief Judge John A. Jarvey sentenced Eric Joseph Holloway, age 29, of Davenport, to 300 months in prison for Conspiracy to Distribute Controlled Substances, Possession of Firearms in Furtherance of a Drug Trafficking Crime, and Felon in Possession of Firearms and Ammunition, announced Acting United States Attorney Richard D. Westphal. Holloway was ordered to serve five years of supervised release and pay $300 to the Crime Victims’ Fund.
On September 2, 2020, Holloway pleaded guilty to three counts of a nine-count indictment. The investigation began in December 2017 when law enforcement identified Holloway following a pursuit and located 33 grams of marijuana and drug paraphernalia inside the vehicle. In August 2018, Holloway was involved in a hit and run vehicle crash in Davenport, and, while fleeing the scene, threw marijuana, cocaine, and prescription pills into a nearby dumpster. In December 2018, law enforcement executed a search warrant at Holloway’s residence and seized cocaine, marijuana, a .45 caliber Glock 30 handgun, a .223 caliber Palmetto Arms rifle, and ammunition. In July 2019, law enforcement located Holloway in a vehicle with methamphetamine, crack cocaine, marijuana, morphine and fentanyl, prescription pills, and a loaded .40 caliber Glock 22 handgun. Holloway admitted possessing the firearms in this case in connection with and furtherance of his drug trafficking activities. As a convicted felon, Holloway was prohibited from owning or possessing firearms and ammunition.
This matter was investigated by the Davenport Police Department, Drug Enforcement Agency, and the Scott County Sheriff’s Office. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Coppell Man Pleads Guilty to $24 Million COVID-Relief Fraud SchemeRead the Press Release
A Coppell businessman pleaded guilty today to orchestrating a fraudulent scheme to obtain approximately $24.8 million in forgivable Paycheck Protection Program (PPP) loans and laundering the proceeds.
According to court documents, Dinesh Sah, 55, of Coppell, admitted that he submitted 15 fraudulent applications, filed under the names of various purported businesses that he owned or controlled, to eight different lenders seeking approximately $24.8 million in PPP loans.
Sah claimed that these businesses had numerous employees and hundreds of thousands of dollars in payroll expenses when, in fact, no business had employees or paid wages consistent with the amounts claimed in the PPP applications.
Sah further admitted that he submitted fraudulent documentation in support of his applications, including fabricated federal tax filings and bank statements for the purported businesses, and falsely listed other persons as the authorized representatives of certain of these businesses without the authority to use their identifying information on the applications.
“The Paycheck Protection Program was designed to aid struggling business owners, not to line the pockets of crafty profiteers,” said Acting U.S. Attorney Prerak Shah of the Northern District of Texas. “Even as fellow businesspeople tried desperately to procure the funds they needed to keep their business afloat, Sah dipped into federal coffers to fund his lavish lifestyle. The Justice Department is committed to protecting the PPP from fraud and deceit.”
“As the nation was crippled by a global pandemic, Sah fraudulently obtained over $17 million in PPP funds intended to help legitimate small businesses and spent that money on luxury cars and multiple homes,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “As our nation continues to fight this unprecedented virus, the Department of Justice and its law-enforcement partners remain committed to aggressively pursuing individuals who exploit COVID-relief programs and to ensuring that these ill-gotten gains are returned.”
Sah admitted that, based on his false statements and fabricated documents, he received over $17 million in PPP loan funds and diverted the proceeds for his personal benefit, using them to purchase multiple homes in Texas, pay off the mortgages on other homes in California, and buy a fleet of luxury cars, including a Bentley convertible, Corvette Stingray, and Porsche Macan. Sah also sent millions of dollars in PPP proceeds in international money transfers. As part of his guilty plea, Sah will forfeit, among other property, eight homes, numerous luxury vehicles, and more than $7.2 million in fraudulent proceeds that the government seized to date.
Sah pleaded guilty to one count of wire fraud and one count of money laundering in the Northern District of Texas. He will be sentenced at a later date and faces a maximum penalty of 30 years in federal prison.
The Dallas Field Offices of the FDIC-OIG, IRS-Criminal Investigation, and U.S. Treasury Inspector General for Tax Administration are investigating the case.
Assistant Deputy Chief Anna G. Kaminska of the Criminal Division’s Fraud Section and Section Chief Katherine Miller of the U.S. Attorney’s Office for the Northern District of Texas are prosecuting the case. Assistant U.S. Attorneys Erica Hilliard and Dimitri Rocha are handling the asset-forfeiture component of the case.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The Fraud Section leads the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real-estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/cares-act-fraud.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Clarksville Man Facing Child Pornography ChargesRead the Press Release
NASHVILLE, Tenn. – March 24, 2021 – A Clarksville, Tennessee man was arrested last week and charged with possession of child pornography, announced Acting U.S. Attorney Mary Jane Stewart. Austin Kidd, 27, was arrested on March 17th at his home by agents of Homeland Security Investigations (HSI). Kidd appeared before U.S. Magistrate Judge Barbara D. Holmes this morning for a detention hearing and was ordered held in custody pending trial.
According to the criminal complaint, in March 2020, HSI Nashville received an investigative referral pertaining to Kidd and his internet activity in April 2019. Agents were able to identify a Facebook account, “ShadowPhoenix24,” as belonging to Kidd and through further investigation, agents identified Internet Protocol (IP) addresses associated with Kidd’s home address in Clarksville. Agents were also aware that in August 2019, a foreign law enforcement agency notified the FBI of an IP address in San Antonio, Texas that was used to access online child sexual abuse and exploitation material. This address was found to have been occupied by Kidd during the time the access occurred and before he relocated to Clarksville.
Through further investigation, HSI agents determined that the IP address associated with Kidd’s Clarksville residence had accessed The Onion Router (TOR) network, which is an anonymizing network that masks the IP address of users and is commonly used by persons when accessing child pornography. Based on the information obtained through the investigation, agents obtained a federal search warrant for Kidd’s residence and subsequently seized his cell phone and other media storage devices. To date, approximately 260 suspected images and videos depicting child sexual abuse have been identified on the devices.
The complaint further alleges that Kidd is in the final hiring process to become a substitute teacher for middle school children.
If convicted, Kidd faces up to 20 years in prison.
This case is being prosecuted by Assistant U.S. Attorney Monica Morrison.
A criminal complaint is merely an accusation. Kidd is presumed innocent until proven guilty in a court of law.
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Clarksburg man admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Jo-El Rene Torres, of Clarksburg, West Virginia, has admitted to a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Torres, 36, pleaded guilty today to one count of “Possession with Intent to Distribute Heroin and Fentanyl.” Torres admitted to having heroin and fentanyl in May 2020 in Upshur County.
Torres faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Lakes Drug Task Force, the West Virginia State Police, the Upshur County Sheriff’s Office, and the Buckhannon Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Chino Woman Arrested on Indictment Alleging Fentanyl and Heroin Trafficking Operation through Southern California AirportsRead the Press Release
LOS ANGELES – Federal authorities today arrested a San Bernardino County woman on an indictment charging her with recruiting drug couriers to smuggle pound quantities of fentanyl and heroin through Southern California airports for transport to other parts of the United States.
Chavon Sayles, a.k.a. “Amber,” 28, of Chino, was arrested this morning at her residence. She is expected to be arraigned this afternoon in United States District Court in Los Angeles.
A federal grand jury indictment returned on March 16 charges her with one count of conspiracy to distribute heroin and fentanyl, and one count of possession with intent to distribute fentanyl.
According to the indictment, from June 2018 to March 2019, Sayles and other co-conspirators recruited drug couriers to transport heroin and fentanyl through Hollywood Burbank Airport, Long Beach Airport, and Ontario International Airport to Ohio, Oregon, and elsewhere in the nation. Sayles allegedly contacted the couriers the night before the flight, and then booked their flight.
The couriers would then receive a bag containing concealed pound quantities of drugs, and they would be responsible for checking it in at the airport, the indictment alleges. In June 2018, a co-conspirator, for whom Sayles allegedly purchased a plane ticket the night before, checked a bag intended for delivery to other co-conspirators in Ohio containing 6.5 pounds of heroin at Hollywood Burbank Airport. In July 2018, Sayles allegedly picked up another co-conspirator and dropped her off at Long Beach Airport with 6.6 pounds of fentanyl in her luggage for a flight to Dayton, Ohio.
In January 2019, Sayles allegedly told one co-conspirator via text to get ready for a short trip from Ontario International Airport to Portland, Oregon the next day, and to “make sure you bring a lot of stuff your bag has to look so full it’s going to bust.” The co-conspirator later checked into the airport with a bag containing 3.2 pounds of heroin, the indictment alleges.
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.
If convicted of all charges, Sayles would face a statutory maximum sentence of life imprisonment and a mandatory minimum sentence of 10 years in federal prison.
Other co-conspirators, including Tatijana Bell, 27, of San Bernardino, and Keeshanai Monique Wilcher, 27, of San Bernardino, have pleaded guilty to federal narcotics charges in connection with this case. Wilcher is serving a 31-month prison sentence for her role in this drug trafficking operation.
Homeland Security Investigations investigated this matter.
Assistant United States Attorneys Jehan M. Pernas of the International Narcotics, Money Laundering, and Racketeering Section, and Morgan J. Cohen of the General Crimes Section are prosecuting this case.
California Man Sentenced to 10 Years in Federal Prison for Drug TraffickingRead the Press Release
Jackson, Miss. – Donte Ramon Nelson, 41, of Compton, California, was sentenced today by Chief U.S. District Judge Daniel P. Jordan III to 120 months in federal prison, followed by three years of supervised release, for conspiracy to possess with intent to distribute 100 grams or more of heroin and 400 grams or more of a substance containing fentanyl, announced Acting U.S. Attorney Darren LaMarca, Special Agent in Charge Brad Byerley of the Drug Enforcement Administration (DEA) and Special Agent in Charge Michelle Sutphin with the Federal Bureau of Investigation (FBI) in Mississippi.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
This OCDETF case is the result of an extensive investigation targeting illegal narcotics distribution in central Mississippi that involved the distribution of methamphetamine, heroin, marijuana and cocaine from California using the United States Postal Service. It was investigated by the Drug Enforcement Administration, Federal Bureau of Investigation, Mississippi Bureau of Narcotics and the Madison County Police Department. It was prosecuted by Assistant United States Attorneys Chris Wansley and Keesha Middleton.
CEO of NYC Non-Profit Charged in Bribery and Kickbacks Scheme Involving Publicly Funded Housing and Social ServicesRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and Margaret Garnett, the Commissioner of the New York City Department of Investigation (“DOI”), announced today the arrest of VICTOR RIVERA on charges of honest services fraud and money laundering. As alleged in an Information filed today in Manhattan federal court, RIVERA, while leading a non-profit organization (“Organization-1”) that operated soup kitchens, homeless shelters, and affordable-housing facilities in New York City, schemed to enrich himself through bribes and kickbacks from Organization-1’s contractors. RIVERA will be presented and arraigned later today before United States District Judge Sidney H. Stein.
Manhattan U.S. Attorney Audrey Strauss said: “Many of the over 8.4 million residents of New York City rely on government-assisted non-profits to provide food, affordable housing, and other essential services for their well-being. As alleged in today’s charges, by accepting bribes and kickbacks, Victor Rivera sought to leverage his position as the CEO of a non-profit into a very much for-profit situation for himself. The vast majority of organizations in New York City’s non-profit networks honorably provide assistance to those in need, but when any individual selfishly exploits one of those organizations for their own personal gain, they will find themselves facing criminal charges for corruption.”
DOI Commissioner Margaret Garnett said: “As CEO of a City-funded nonprofit, this defendant should have been serving the underprivileged, including the homeless; instead, according to the criminal information, he schemed to enrich himself and his relatives, taking bribes and kickbacks from those doing business with his organization. New York City provides billions of dollars to support nonprofits, many of which run organizations with integrity and provide valuable, essential services. But corruption at nonprofit social services contractors remains an investigative priority for DOI, and today's arrest should serve as notice to any individual who sees the City's coffers as a path to personal profit. DOI thanks the U.S. Attorney's Office for the Southern District of New York for its partnership and commitment to this important corruption investigation.”
As alleged in the Information:[1]
RIVERA was the President and Chief Executive Officer of Organization-1, which annually spent millions of dollars in public funds on real estate, security, cleaning, construction, and food expenses, among other costs related to the housing and social services Organization-1 provided. From at least in or about 2013 until in or about 2020, RIVERA engaged in a scheme to enrich himself and his relatives by soliciting and accepting bribes and kickbacks from contractors doing work related to or for Organization-1. The scheme yielded RIVERA at least hundreds of thousands of dollars in illicit gains. RIVERA laundered some of the corrupt payments through intermediary entities he controlled, including through a purported consulting company nominally owned by one of RIVERA’s relatives.
* * *
RIVERA, 61, of Stony Point, New York, is charged with one count of honest services wire fraud conspiracy, one count of honest services wire fraud, and one count of money laundering. Each count carries a maximum potential prison sentence of 20 years. The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only; any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of Special Agents of the United States Attorney’s Office for the Southern District of New York and of DOI, and thanked the Internal Revenue Service for its participation in the investigation.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys David Abramowicz and Tara La Morte are in charge of the prosecution.
The allegations contained in the Information are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Information and the description of the Information set forth below constitute only allegations, and every fact described should be treated as an allegation.
Brevard County Man Sentenced to 19 Years for Armed Drug Trafficking, FentanylRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Thomas Michael Ibarra (30, Brevard County) to 19 years in federal prison for conspiracy to possess with the intent to distribute fentanyl and possession of a firearm in furtherance of a drug trafficking offense. Ibarra had pleaded guilty on October 27, 2020.
According to court documents, Ibarra was responsible for distributing more than 9 kilograms of fentanyl in the Brevard County area during the approximately one-year period leading up to his arrest. Further, when arrested, Ibarra was in possession of nearly a quarter of a kilogram of fentanyl, and during the execution of a search warrant at his residence, law enforcement recovered two firearms, over three-quarters of a kilogram of fentanyl, scales, and other drug paraphernalia.
This case was investigated by the Drug Enforcement Administration and the Palm Bay Police Department, with assistance from the Federal Bureau of Investigation, the Melbourne Police Department, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Shawn P. Napier.
Berryville Man Sentenced to 90 Months, Required to Forfeit Firearms for Illegal Possession of Guns, Distribution of CocaineRead the Press Release
HARRISONBURG, Va. – Cironta Commander, who pleaded guilty to possession of a firearm by a convicted felon and possession with the intent to distribute cocaine, was sentenced this week in U.S. District Court in Harrisonburg to 90 months in federal prison and ordered to forfeit his firearms, Acting United States Attorney Daniel P. Bubar, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division, and Jarod Forget, Special Agent in Charge of the Drug Enforcement Administration’s Washington Division announced today.
Commander, 22, of Berryville, Virginia, pleaded guilty in December 2020 to one count of possession of a firearm by a convicted felon and one count of possession with the intent to distribute and distributing 28 grams or more of cocaine base.
According to court documents, on January 27, 2020 an officer with the Berryville Police Department initiated a traffic stop of Commander. As the officer returned to his cruiser to investigate a potential discrepancy in Commander’s paperwork, Commander sped from the scene at a high rate of speed. When the defendant approached an intersection, he failed to stop at a stop sign and drove into a grassy area between an apartment building and a tree, where there were people present in the common area. As the defendant reentered the roadway, he drove toward a dead end and crashed into a tree.
Commander attempted to flee the scene on foot while carrying a backpack but was detained. In a search of the backpack, officers found a loaded Smith & Wesson, 9mm, semi-automatic pistol containing five rounds of ammunition. In addition, officers found approximately 3.66 oz. of marijuana, $4,738 in cash, a bundle of clear plastic bags commonly used for narcotics distribution, and a small plastic bag of white powder with 2.19 grams of powder cocaine. At the time of his possession of the firearm, Commander was a previously convicted felon prohibited from legally possessing a firearm.
Local police executed a search warrant at the defendant’s residence in Berryville, Va., on February 3, 2020. In the basement of the residence, officers found three rifles and $4,392. In the closet in the master bedroom, agents located a shoebox with an additional $11,000 in cash.
Additionally, during the search of a Cadillac Escalade parked in the driveway, agents recovered an access card for a storage unit in Stephens City, Virginia. Agents went to that location and learned the unit had only been leased following Commander’s arrest. After obtaining a search warrant of the location, agents recovered a variety of narcotics, including 191.64 grams of fentanyl, 32.96 grams of heroin, 349.47 grams of powder cocaine and 181.83 grams of cocaine base.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the Berryville Police Department, the Virginia State Police’s Northwest Virginia Regional Drug Task Force, the Clarke County Sheriff’s Office, and the Office of the Clarke County Commonwealth’s Attorney. Assistant United States Attorney Christopher Kavanaugh prosecuted the case for the United States.
Antitrust Division Issues 2021 Annual NewsletterRead the Press Release
The Department of Justice’s Antitrust Division today issued the 2021 edition of its annual Spring Newsletter. The newsletter highlights the division’s recent activities and successes on civil and criminal enforcement, diversity initiatives, international cooperation, and competition advocacy. The newsletter also includes a message from Acting Assistant Attorney General Richard Powers.
“Thanks to the dedication of the division’s employees, we’ve continued our efforts on behalf of American consumers, workers, and taxpayers despite the crisis posed by COVID-19,” said Acting Assistant Attorney General Richard A. Powers. “As the Acting Assistant Attorney General, it is my privilege to work with the division’s phenomenal staff as we continue our critical work through this transition period. The civil servants who work for the division are deeply invested in promoting competition and making the economy fairer for all Americans. I am grateful to them and intend to make sure that all employees are fully supported and empowered to do their important work and that we remain a process driven organization.”
The newsletter highlights the division’s accomplishments and features profiles of division staff. It can be found at https://www.justice.gov/atr/division-operations/division-update-spring-2021.
Acting U.S. Attorney, IRS address COVID fraud through investigation, awarenessRead the Press Release
DAYTON — The U.S. Attorney’s Office for the Southern District of Ohio and Internal Revenue Service’s Criminal Investigation Division (IRS-CI) Cincinnati Field Office mark the one-year anniversary of the Coronavirus Aid, Relief and Economic Security (CARES) Act by urging taxpayers to continue reporting instances of suspected fraud and by pledging their continued commitment to investigating COVID-19 financial crimes.
Over the last year, U.S. Attorney’s Office and IRS-CI has been combatting COVID-19 fraud related to the Economic Impact Payments, Paycheck Protection Program (PPP) and Employee Retention Credit. IRS CI has investigated more than 350 tax and money laundering cases nationwide totaling $440 million. These investigations covered a broad range of criminal activity, including fraudulently obtained loans, credits and payments meant for American workers, families, and small businesses.
On March 16, 2021, Nadine Consuelo Jackson, 32 of Dayton, Ohio, was sentenced to 24 months in prison for committing wire fraud and making a false statement to a bank related to two Paycheck Protection Program (PPP) loans and one Economic Injury Disaster Loan (EIDL). Jackson fraudulently sought forgivable PPP loans in the amount of $1.3 million and $1.2 million from financial institutions by claiming to have more than 70 employees earning wages at a Dayton-based private investigation and security services business, Extract LLC. In actuality, there were few or no other employees working at Extract LLC.
Other fraud charges are pending in Columbus and in Cincinnati.
“At the same time we’re all fighting the spread of the virus, we unfortunately also have to fight the spread of fraudsters who hinder our economic recovery,” Acting U.S. Attorney Vipal J. Patel said, noting that other potential crimes are under investigation in the 48-county Southern District of Ohio. “The CARES Act is supposed to help small businesses keep afloat, but some will try to scam the system. Anyone who suspects that fraud may be going on should report it, either through the IRS website, another appropriate law enforcement agency, or even to your local police. The key is to report it.”
“The CARES Act was designed to provide financial assistance to Americans struggling as a result of the pandemic,” said Bryant Jackson, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Unfortunately, some individuals saw several of the programs enacted as an opportunity to steal and commit fraud. IRS CI will continue to partner with the United States Attorney’s Office and our law enforcement partners to investigate CARES Act fraud and bring those committing the fraud to justice.”
While abuses of the various CARES Act assistance programs have been limited in the overall administration of the law, some unscrupulous businesses and individuals have sought to enrich themselves through fraudulent activity. IRS-CI encourages the public to share information regarding known or suspected fraud attempts against any of the programs offered through the Cares Act.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted on March 29, 2020, to provide emergency financial assistance to millions of Americans suffering the economic effects of the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program. In April 2020, Congress authorized over $300 billion in additional funding, and in December 2020, another $284 billion.
The Paycheck Protection Program allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
To learn more about COVID-19 scams and other financial schemes visit IRS.gov. Official IRS information about COVID-19 and Economic Impact Payments can be found on the Coronavirus Tax Relief page, which is updated frequently.
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30 Members of A Violent Gang Charged for Drug Trafficking in Mayagüez, Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On March 10, 2021, a federal grand jury in the District of Puerto Rico returned an indictment charging 30 violent gang members with conspiracy to possess with intent to distribute controlled substances, and aiding and abetting in the possession/distribution of controlled substances, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration (DEA) and the Puerto Rico Police Bureau (PRPB) Mayagüez Strike Force investigated the case.
“This arrest operation spotlights the hard work and dedicated partnership between federal and state law enforcement agencies,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “We share the mission of taking violent criminals off the streets and enhancing community-wide efforts to make Puerto Rico a safer place.”
“DEA and our federal, state and local partners have not let our guard down. We remain committed to protecting our families and communities. Today’s arrests serve as an example of law enforcement’s dedication to disrupting and dismantling violent drug organizations that affect not only the citizens of Mayagüez but all of Puerto Rico,” said DEA Caribbean Division Special Agent in Charge A.J. Collazo.
The indictment alleges that from in or about the year 2017, to the date of the return of the indictment, the drug trafficking organization distributed cocaine base (commonly known as “crack”), heroin, cocaine, and marihuana, within 1,000 feet of the Manuel Hernández Rosa, commonly known as “Candelaria”, Rafael Hernández, also known as “Kennedy”, and El Carmen Public Housing Projects, and other areas in the municipality of Mayagüez, all for financial gain and profit.
As part of the conspiracy, the members of the drug trafficking gang established drug points that would move within different areas inside the public housing projects in order to avoid police detection; and operated during the day and night, at times operated 24 hours a day. Some co-conspirators would routinely possess, carry, brandish, and use firearms to protect themselves and their drug trafficking organization. Some of the sellers within the organization had access to different vehicles and would stash the narcotics in order to retrieve them when they sold the drugs. The 30 co-conspirators acted in different roles in order to further the goals of their organization, to wit: four suppliers and 26 sellers. The defendants indicted are:
Carmelo Ramírez-Polidura
Benigno Torres-Benítez, a/k/a “Porki”
Norbert A. Molina-Avilés, a/k/a “Alex Fogón”
Christian Anjul Martínez-Valentín
Emilio Rivera-Rodríguez, a/k/a “Gafas/Chino”
Abel Francisco Lozada-Colón
Rogelio A. Rivera-Acosta
Josué M. Justiniano-Méndez, a/k/a “Molle”
Gilbert Vargas-Deriux, a/k/a “Gemelo”
Alexander Justiniano-Pagán, a/k/a “Alex Tota”
Jason Nieto-Martínez, a/k/a “Milta”
José A. Velázquez-Pérez, a/k/a “Tato”
Carlos A. Rivera-Gómez, a/k/a/ “Buggie”
Joseph Toro-Pérez, a/k/a “Viejo”
Gerardo Méndez-Nazario, a/k/a “Chupi”
Gilfredo Luciano-Merle, a/k/a/ “Crayola”
Sonny B. Cardona-Zapata
Christopher Malavé-Bracero
Luis J. Borrero-Mejías, a/k/a “Chelo”
José L. Malavé-Cintrón, a/k/a “Pito”
José L. Rivera-Colón, a/k/a “Baby Rasta”
David Cruz-Ibarrondo, a/k/a “Davo”
Israel Rivera-Acosta, a/k/a “Yiyo/Guillo”
Ángel L. Soler-Muñiz
Erichell Ramírez-González
Christian Joel Soto-Calderón, a/k/a “Salsilla”
Walberto Rivera-Vigo, a/k/a “Wally El Pelotero”
Jhomar Echevarría-Luciano
Eileen Echevarría-Luciano
José L. Malavé-González, a/k/a “Lichi Motora”
Assistant U.S. Attorney Myriam Fernández, Chief of the Asset Recovery and Money Laundering Unit and Assistant U.S. Attorney Linet Suárez are in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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10 defendants indicted in multi-state, fraudulent COVID-19 related business loan schemeRead the Press Release
NEWNAN, Ga. - Ten defendants, who operated as part of a larger group, have been indicted for participating in a wide ranging, multi-state scheme to submit fraudulent loan applications on behalf of non-existent businesses as part of the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP).
“The impact of COVID-19 on small businesses around the country has been devastating,” said Acting U.S. Attorney Kurt R. Erskine. “The defendants allegedly abused both programs by submitting fraudulent applications and obtaining thousands of dollars that should have gone to support struggling businesses. We will work tirelessly to protect the integrity of the EIDL and PPP and to help small businesses stay afloat.”
“The COVID-19 pandemic has caused financial hardships for many hardworking business owners across the nation. The CARES Act was signed to provide economic assistance to keep companies afloat while navigating through these uncertain times,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “Postal Inspectors are committed to aggressively pursuing investigations in which the U.S. Mails are used to facilitate criminal schemes.”
According to Acting U.S. Attorney Erskine, the indictment, and other information presented in court: On August 11, 2020, agents with the U.S. Postal Inspection Service (USPIS) and the Drug Enforcement Administration executed a search warrant at the home of Alicia Quarterman in connection with an ongoing narcotics trafficking investigation. A package containing methamphetamine hidden in dog food containers had been mailed to Quarterman’s home. As part of the court-authorized search, law enforcement seized Quarterman’s cell phones and discovered a handwritten ledger with the personal and banking information of several individuals.
After obtaining a second search warrant for the cell phones, USPIS inspectors uncovered hundreds of text messages and photos related to an additional crime, fraudulent EIDL and PPP business loans.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law passed in March 2020 that provided $2.2 trillion dollars in emergency financial assistance to the millions of Americans who are suffering the economic effects caused by COVID-19. The provisions of the CARES Act, in conjunction with an officially declared disaster by the United States Government, allowed the Small Business Administration (“SBA”) to offer EIDL funding to business owners negatively affected by COVID-19. The EIDL application information, submitted by the applicant, was used by SBA systems to calculate the amount of money the business was eligible to receive in the form of a loan. However, in conjunction with the submission of an EIDL application, by having clicked on and checked a box within the on-line application, an applicant could request and then receive up to $10,000.00, an EIDL Advance which did not have to be repaid.
Another source of relief from the March 2020 CARES Act is the PPP which allows qualifying small businesses and other organizations to receive PPP loans to pay payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time and uses a certain percentage of the PPP loan proceeds for payroll expenses.
Once Quarterman and her co-conspirator, Katrina Lawson, who is a former deputy sheriff for Fulton County, Georgia and is still a certified peace officer, became familiar with the requirements and applications for the EIDL program and the PPP, they allegedly devised a scheme to submit fraudulent business loan applications on behalf of their friends and family who did not actually own businesses. Quarterman would recruit co-conspirators who would send her their personal and banking information mostly via text message, and then Quarterman would send that information to Lawson who would submit the applications to the SBA. After the fraudulent loans were paid out by the SBA or partner banks, the co-conspirators completed their scheme by allegedly paying Quarterman a “fee” from the proceeds of the fraudulent loans which she would split with Lawson.
Some of Quarterman and Lawson’s co-conspirators also allegedly recruited additional participants to the scheme and then sent their information to Quarterman for fraudulent loan applications. As part of their crimes, the defendants not only submitted false information for the business loans, but for the PPP, they also allegedly created fake Internal Revenue Service documentation to support the applications.
Besides Alicia Quarterman, 38, of Fayetteville, Georgia, and Katrina Lawson, 41, of Houston, Texas, the following individuals also participated in the scheme and are charged in the indictment:
- India Middleton, 34, of Accokeek, Maryland,
- James McFarland, 56, of Atlanta, Georgia,
- Tranesha Quarterman, 33, of Atlanta, Georgia,
- Darryl Washington, 66, of Atlanta, Georgia,
- Adarin Jones, a/k/a Adrian Jones, 42, of Atlanta, Georgia,
- Katie Quarterman, 28, of Atlanta, Georgia,
- Nikia Wakefield, 42, of Rockville, Maryland, and
- Victor Montgomery, 43, of Washington, D.C.,
Overall, between July 1, 2020 and August 11, 2020, Quarterman sent Lawson the information for about 48 different individuals, and she allegedly completed approximately 58 fraudulent EIDL applications, seeking $490,000. In that same time frame, Lawson allegedly submitted 11 fraudulent PPP loan applications on behalf of many of the same individuals in an attempt to obtain at least $224,000. The defendants are charged with various counts of conspiracy to commit wire fraud, wire fraud, bank fraud, mail fraud, and money laundering.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges, and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Postal Inspection Service.
Assistant U.S. Attorney Miguel R. Acosta is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Tuesday 23 March 2021
Yuba City Man Pleads Guilty to Possession of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Scott Stephen Howard, 36, of Yuba City, pleaded guilty today to possession of child pornography, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on April 11, 2016, Howard knowingly possessed visual depictions of minors engaged in sexually explicit conduct.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Shea J. Kenny is prosecuting the case.
Howard is scheduled to be sentenced by U.S. District Judge John A. Mendez on June 29. Howard faces a maximum penalty of 10 years in prison as well as a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Woman Indicted on Federal Firearm Charge for Allegedly Providing Handgun to Convicted FelonRead the Press Release
CHICAGO — A woman has been indicted on a federal firearm charge for allegedly providing a semi-automatic handgun to a convicted felon whom she knew was not lawfully allowed to possess it. The convicted felon was also charged.
BENITTA GROSS knowingly disposed of the gun in Chicago on June 20, 2020, to TERRANCE ELKINS, knowing that Elkins was previously convicted of a felony and not lawfully allowed to possess a firearm, according to an indictment returned in U.S. District Court in Chicago.
Gross, 32, of Springfield, Ill., is charged with one count of disposal of a firearm to a prohibited person. Elkins, 32, of Springfield, Ill., is charged with one count of illegal possession of a firearm by a convicted felon. Gross and Elkins made initial court appearances Friday before U.S. Magistrate Judge Young B. Kim in Chicago. Elkins was ordered detained in federal custody, while Gross was ordered released on bond. A status hearing was scheduled for April 6, 2021, at 10:00 a.m., before U.S. District Judge John J. Tharp, Jr.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; and David Brown, Superintendent of the Chicago Police Department. Substantial assistance was provided by the Cook County State’s Attorney’s Office, Sangamon County State’s Attorney’s Office, Sangamon County Sheriff's Office, U.S. Marshals Service, and Springfield, Ill., Police Department. The government is represented by Assistant U.S. Attorney Kartik K. Raman.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each charge in the indictment is punishable by a maximum sentence of ten years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
West Virginia Man Sentenced to 15 Years in Prison for Traveling to Alabama with the Intent to Engage in Illicit Sexual Conduct with a MinorRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a West Virginia man for child exploitation, announced U.S. Attorney Prim F. Escalona, and U.S. Immigration and Customs Enforcement Homeland Security Investigations Special Agent in Charge Katrina W. Berger.
U.S. District Court Judge Liles C. Burke sentenced Andrew Scott Davis, 37, to 180 months in prison followed by a lifetime of supervised release. Davis pleaded guilty in December 2020 to one count of traveling with the intent to engage in illicit sexual conduct with a minor. According to the plea agreement, Davis travelled from Circleville, West Virginia to Madison County, Alabama between November 2019 and January 2020, and met with the minor five times. Davis began an online relationship with the minor through Snapchat. This conviction will require him to register as a sex offender in accordance with the Sex Offender Registration and Notification Act (SORNA).
“Protecting our children will always be a top priority of my office,” USA Escalona said. “In today’s world of technology, it is important that parents educate their children about safe and appropriate online behavior and immediately report inappropriate contact between an adult and their child to law enforcement.”
“Social media and the internet are great tools for entertainment, education and collaboration, but they can also be great tools for predators looking to victimize our children,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI and its law enforcement partners are dedicated to finding, arresting, and prosecuting those involved in this heinous crime.”
U.S. Immigration and Customs Enforcement Homeland Security Investigations investigated the case, along with the Huntsville Police Department, and the Madison County Sheriff’s Office. Assistant U.S. Attorney R. Leann White prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
Upshur County Individuals Guilty of Conspiring to Commit ID Theft for COVID Economic Impact PaymentsRead the Press Release
TYLER, Texas – Two individuals from Gilmer, Texas have pleaded guilty to conspiring to commit identity theft in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Emilee Fenton, 24, pleaded guilty to conspiracy to unlawfully transfer, possess, and use a means of identification today before U.S. Magistrate Judge K. Nicole Mitchell. Dalton Brewer, also 24, pleaded guilty to the same charge on March 4, 2021.
“Economic Impact Payments were designed to reach the most needy, not to line the pockets of criminals. The Eastern District of Texas is committed to fighting fraud and criminal activity related to the COVID-19 pandemic,” said Acting U.S. Attorney Nicholas J. Ganjei. “Today’s plea is just another example of how our office and our law enforcement partners are holding accountable the wrongdoers who exploit this crisis.”
Fenton and Brewer were indicted by a federal grand jury on August 19, 2020 and charged with conspiracy to unlawfully transfer, possess, and use a means of identification. Fenton was also charged with theft of government money and aggravated identity theft.
According to the indictment, from at least November 2019 through June 2020, Brewer and Fenton conspired to possess and use the means of identification of other persons, including names, Social Security numbers, and dates of birth, in connection with the theft of government money, aggravated identity theft, wire fraud, theft of mail, and fraudulent use or possession of identifying information. Fenton was also charged with theft of government money and aggravated identity theft for her role in obtaining two Economic Impact Payments (EIPs) using the means of identification of other persons.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized over $2 trillion in relief programs, including approximately $560 billion for benefits to individuals. An estimated $300 billion of that total was allocated for EIPs.
At sentencing, Brewer and Fenton each face up to 15 years in federal prison.
This case is being investigated by the U.S. Postal Inspection Service (USPIS), Treasury Inspector General for Tax Administration (TIGTA), and the Internal Revenue Service-Criminal Investigations (IRS-CI) and prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
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Two Newark Men Sentenced to Prison for Trafficking Crack Cocaine and Heroin with Newark’s ‘Famous Boyz’ Street GangRead the Press Release
NEWARK, N.J. – Two members of the Newark street gang known as the “Famous Boyz” were sentenced to prison for conspiring to distribute crack cocaine and heroin, Acting U.S. Attorney Rachael A. Honig announced today.
Malik Minor, aka “YK,” 23, of Newark, was sentenced today to 63 months in prison and five years of supervised release; Javon Holmes, aka “J-Dot,” 21, of Newark, was sentenced March 22, 2021, to 108 months in prison and four years of supervised release. Minor previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of conspiring to distribute 28 grams or more of crack cocaine, and 100 grams or more of heroin. Holmes previously pleaded guilty to a superseding information charging him with one count of conspiring to distribute 28 grams or more of crack cocaine, and 100 grams or more of heroin, and possessing with the intent to distribute 28 grams or more of crack cocaine. Judge Arleo imposed both sentences by videoconference.
According to the documents filed in this case and statements made in court:
The Famous Boyz are a subset of the Brick City Brim set of the Bloods street gang, which dealt significant quantities of heroin and crack cocaine, primarily in and around the area of South 18th Street and 15th Avenue, in Newark. The gang often referred to this area as the “8 Block,” “18th,” or simply by reference to the number “8.”
In October 2018, Minor, Holmes, and 15 other members of a violent drug trafficking conspiracy operating in Newark were charged by complaint with conspiracy to distribute crack cocaine and/or heroin following a lengthy wiretap investigation. Shaka McKinney and Jahid Vauters, aka “K,” aka “KO,” also were charged with firearms possession offenses. To date, 15 of the defendants have pleaded guilty to drug and firearm charges and three await sentencing.
On Feb. 25, 2019, a grand jury returned an indictment charging three of the defendants, Patricio Hernandez, Jonathan Hernandez, and Jonathan Garcia, aka “Bebo” with one count each of conspiracy to distribute and to possess with intent to distribute 280 grams or more of crack cocaine for their alleged participation in supplying the “Famous Boyz” with cocaine. On Sept. 30, 2019, a grand jury returned a 21-count superseding indictment against Patricio Hernandez, Jonathan Hernandez, Garcia, Holmes, and John Mosley, aka “Breezy,” aka “Brazy.” The charges in the superseding indictment remain pending against Patricio Hernandez and Mosley.
Acting U.S. Attorney Honig credited special agents of ATF, under the direction of Special Agent in Charge Charlie J. Patterson in Newark, and members of the Newark Department of Public Safety, under the direction of Public Safety Director Anthony F. Ambrose, with the investigation leading to the guilty pleas.
She also thanked the DEA, under the direction of Special Agent in Charge Susan A. Gibson; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; the N.J. State Police, under the direction of Col. Patrick J. Callahan; the Belleville Police Department, under the direction of Chief Mark Minichini; and the Livingston Police Department, under the direction of Chief Gary Marshuetz.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and is part of the Violent Crime Initiative (VCI) in Newark. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety to combat violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Board of Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Angelica M. Sinopole of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.
The charges and allegations against the remaining defendants are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Top Federal Prosecutor in Los Angeles and Head of FBI Field Office Denounce Hate Crimes and Racism Targeting Asian AmericansRead the Press Release
LOS ANGELES – With a call to the public to report hate crimes to law enforcement authorities, Acting United States Attorney Tracy L. Wilkison and FBI Assistant Director in Charge Kristi K. Johnson today condemned bigotry, racism and hatred against the Asian American and Pacific Islander community.
“Discrimination against Asian Americans is a long-standing and malignant problem that has found new roots in the pandemic,” said Acting U.S. Attorney Wilkison. “Everyone deserves to feel safe in their communities, and attacks based on race, ethnicity or national origin have no place in our society. We urge the public to report potential racial discrimination and hate crimes to law enforcement so we can address these illegal and immoral acts.”
“The FBI is committed to reaching out to the AAPI community, among other groups who have been targeted historically with racial bigotry, so that affected individuals know their rights and know that they have an ally with their law enforcement professionals,” said Assistant Director in Charge Johnson, who runs the FBI’s Los Angeles Field Office. “The FBI and partners with the Los Angeles County Sheriff’s Department and the Los Angeles Police Department operate the L.A. Hate Crimes Task Force to investigate and properly address hate crime allegations. We encourage anyone who believes their civil rights were violated to report it so that we can determine whether a crime occurred. Hate crime threats in the form of racially charged rhetoric or violent assaults are taken extremely seriously as we continue to safeguard the rights of every individual, citizen and non-citizen alike."
In addition to working with colleagues in law enforcement, the United States Attorney’s Office and the FBI review allegations of hate crimes for possible federal prosecution. Members of the public may report a potential hate crime to the Federal Bureau of Investigation. The FBI’s Los Angeles Field Office can be reached 24 hours a day at (310) 477-6565, or reports can be made online at https://tips.fbi.gov/. The Civil Division of the U.S. Attorney’s Office also investigates non-criminal instances of discrimination, and citizens may report potential civil rights violations by submitting this form.
The United States Attorney’s Office is increasing its outreach efforts as more people are becoming aware of anti-Asian bias in our communities. The Office last week participated in a rally on the steps of the Kenneth Hahn Hall of Administration to emphasize that we all stand together as we see an increase in the reporting of hate crime incidents against Asian Americans in our district. The event was presented by the LA vs Hate Campaign and featured representatives from County Supervisors’ offices, the Mayor’s office, the Anti-Defamation League, Asian Americans Advancing Justice, and other civil and human rights leaders in Los Angeles County.
The United States Attorney’s Office and the FBI, along with other federal partners and community stakeholders, are hosting a virtual community event on April 22 to discuss the federal government’s multi-faceted response to hate against the AAPI community and other communities.
President Biden on January 26 issued the “Presidential Memorandum Condemning and Combating Racism, Xenophobia, and Intolerance Against Asian Americans and Pacific Islanders in the United States.” The memorandum mandates that the Attorney General explore opportunities to support, consistent with applicable law, the efforts of State and local agencies, as well as AAPI communities and community-based organizations, to prevent discrimination, bullying, harassment, and hate crimes against AAPI individuals, and expand collection of data and public reporting regarding hate incidents against such individuals.
The Justice Department’s Civil Rights Division enforces federal anti-discrimination laws, and the United States Attorney’s Office has dedicated units that prosecute civil rights violations in its Criminal Division: Public Corruption and Civil Rights Section and enforce civil rights laws in its Civil Division.