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Newest first across public DOJ and U.S. Attorney press releases.
7 May 2021
Doctor Charged with Illegally Distributing Opioids, Defrauding Health Care Benefit ProgramsRead the Press Release
PITTSBURGH - A Pittsburgh-area physician has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics laws and health care fraud, Acting United States Attorney Stephen R. Kaufman announced today.
The 242-count Indictment, returned on May 5 and unsealed yesterday, named John Keun Sang Lee, age 78, of Venetia, Pennsylvania, as the sole defendant.
According to the Indictment, the defendant was a medical doctor and owner of the medical practice Jefferson Pain and Rehabilitation Center, with a principal office located at 4735 Clairton Blvd, Pittsburgh, Pa 15236. The indictment alleges that on multiple dates between May 2016 and October 2020, Lee knowingly distributed Schedule II controlled substances to five patients outside the usual course of professional practice and not for a legitimate medical purpose. The Indictment further alleges that from May 2016 to October 2020, Lee executed a scheme and artifice to defraud health care benefit programs Medicare and Medicaid by knowingly and willfully submitting claims for steroid injections that were neither reasonable nor medically necessary.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Karen Gal-Or is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Department of Health & Human Services – Office of Inspector General, the Drug Enforcement Administration, and the Pennsylvania Office of Attorney General conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Convicted felon admits threatening to kill a witness and a federal judgeRead the Press Release
BRUNSWICK, GA: A convicted felon and gang member faces substantial additional time in federal prison after admitting he threatened a witness and a federal judge.
Wilbert Stephens, 29, of Brunswick, Ga., pled guilty in U.S. District Court to Solicitation to Commit a Crime of Violence and Mailing Threatening Communications, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Stephens’ guilty plea subjects him to a statutory sentence of up to 20 years in federal prison and substantial financial penalties, followed by up to three years of supervised release. There is no parole in the federal system.
“Less than a year ago, Wilbert Stephens was sentenced to 10 years in prison on a firearms charge related to a drug trafficking investigation, and rather than accept responsibility for his criminal behavior, he sought to retaliate against those who held him accountable,” said Acting U.S. Attorney Estes. “He’ll now learn that his actions will keep him behind bars for a very long time – and our community will be safer as a result.”
As described in court documents and testimony, Stephens was indicted in U.S. District Court in 2018 along with 23 other defendants as part of a drug trafficking conspiracy. He later pled guilty to an Information charging him with Possession of Ammunition by a Convicted Felon and was sentenced in June 2020 to 10 years in prison. While being held in the Glynn County Detention Center awaiting transfer to federal prison, Stephens contacted a fellow member of the Gangster Disciples criminal street gang to solicit retaliation against a witness, and wrote and mailed a letter in which he threatened a federal judge.
Stephens remains in custody awaiting sentencing.
“Stephens’ death threats against a witness and a judge show his complete lack of remorse for the crimes he was convicted of,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “If there is anything positive to come from his actions, it’s that he will stay in prison and off our community’s streets for a much, much longer time.”
The case was investigated by the FBI and the U.S. Marshals Service, and prosecuted for the United States by Assistant U.S. Attorney Marcela C. Mateo.
Cleveland man found guilty in plot to ambush and kidnap law enforcement officersRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that a federal jury found Christian Ferguson, 21, of Cleveland, Ohio, guilty of two counts of attempted kidnapping. Ferguson was arrested on May 8, 2020, for an attempted plot to kidnap and ambush law enforcement officers responding to a false distress call in order to start an uprising.
“Mr. Ferguson devised a plan, and took steps to see it through, that involved placing a fake distress call to lure responding officers to the scene so that he could violently attack them, steal their department-issued weapons and equipment, and incite various militias to similarly attempt to overthrow the U.S. government and its institutions,” said Acting U.S. Attorney Bridget M. Brennan. "Exploiting first responders’ most solemn obligation – to protect and serve – as a way of luring them into a violent ambush and inciting violence against our democratic institutions was cowardly, heinous, and, as Mr. Ferguson’s jury determined today, criminal. The community members who reported this plan, and the federal agents who worked to prevent it, should be commended for their actions. Lives were saved.”
“Christian Ferguson's plan was to lure law enforcement to a remote location then murder as many as he could in hopes of starting an "uprising",” said FBI Special Agent in Charge Eric B. Smith. “Mr. Ferguson then attempted to recruit others to assist him in this cowardly and despicable act. We wish to thank those citizens who advised the FBI of the hateful and violent feelings Ferguson held for law enforcement. Ferguson's guilty verdict will ensure he is no longer able to promote or commit violence against those charged with the solemn responsibility to stop it.”
According to court records, in April of 2020, the FBI received a call-in complaint from a civilian regarding several violent and extremist online postings made in a chatroom by an individual later identified as Ferguson. In these postings, Ferguson expressed a desire to call in a false in-progress call to the police in order to lure law enforcement to a remote location where they could be robbed of their weapons and body armor and possibly killed. Based on this initial reporting, the FBI introduced a confidential human source into the chatroom, which was controlled by Ferguson.
In March of 2020, Ferguson further discussed this plot in the chatroom in greater detail. Specifically, Ferguson’s discussed purchasing high-powered firearms, creating homemade chemical weapons and leaving a “calling card” to promote media attention to his intended uprising. As part of the plot, Ferguson intended for the ambush to gather significant media attention and to inspire other militia groups.
Ferguson expressed an interest in a response by federal law enforcement officers to the phony distress call because he believed they had better quality firearms and body armor to steal. Furthermore, Ferguson made statements about tactical options for killing multiple targets and the disposal of their bodies.
As a result of these online conversations, Ferguson and multiple confidential human sources met on several occasions to further discuss Ferguson’s plan and see it to fruition. Ferguson then engaged in practice drills with an AR-15 rifle and, on one occasion, conducted reconnaissance in a dry run. Ferguson indicated to the FBI sources that his “final play” was in Washington, D.C.
On May 8, 2020, Ferguson ultimately facilitated a hoax distress call within the boundaries of the Cuyahoga Valley National Park to gauge response time by Park Rangers. Ferguson believed four federal officers arrived and indicated that if that many officers respond to the actual event, they would likely have to kill them all. Shortly thereafter, Ferguson was placed under arrest.
Ferguson is scheduled to be sentenced on August 27, 2021, before U.S. Judge Solomon Oliver, Jr. This case was investigated by the Cuyahoga Valley National Park Rangers, Cuyahoga Falls Police Department, City of Cuyahoga Falls Prosecutor’s Office, and the Cleveland Division of the FBI and is being prosecuted by Assistant U.S. Attorneys Duncan Brown and Jerome Teresinski.
Charlotte Man Is Sentenced to 11+ Years for the Attempted Armed Robbery of A Convenience StoreRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Max O. Cogburn Jr sentenced James Tiwauna Murray, 24, of Charlotte, to 137 months in prison and three years of supervised release for the 2019 attempted armed robbery of a 7-Eleven convenience store, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte-Mecklenburg Police Department join Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents and statements made in court, on September 9, 2019, at approximately 3:04 a.m., Murray, while armed with a handgun, entered the 7-Eleven convenience store, located at 5343 Monroe Road in Charlotte. Upon entering the store, Murray jumped over the counter and ran into the back office, where he encountered a store employee. Court records show that Murray told the store employee “this is a robbery” and shot the employee in the chest. Murray then ran out of the back office while the store employee pursued Murray. Murray shot at the store employee again and fled the scene without taking any of the store’s cash. The store employee reported the robbery to CMPD and Murray was arrested in the vicinity shortly thereafter.
On July 2, 2020, Murray pleaded guilty to attempted Hobbs Act robbery, which is the attempted robbery of a business engaged in interstate commerce.
Murray is currently in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In announcing today’s sentence, Acting U.S. Attorney Stetzer thanked the FBI and CMPD for their investigation of the case.
Assistant U.S. Attorney Christopher Hess handled the prosecution.
California money launderer for Mexican drug cartel sentenced to nearly 5 years in prisonRead the Press Release
Tacoma – A repeat offender, who laundered hundreds of thousands of dollars in drug proceeds for a Mexican drug cartel using bitcoin, was sentenced today to 58 months in prison, announced Acting U.S. Attorney Tessa M. Gorman. Gregory David Werber, 58, of Manhattan Beach, California, laundered drug proceeds for a drug trafficking organization that distributed heroin, fentanyl, cocaine, and methamphetamine in Western Washington. At the sentencing hearing, U.S. District Judge Robert J. Bryan told him, “There is no way to judge how many people have been hurt by this drug cartel and all of the people who suffered from drug addiction… You were helping violent people do violent things.”
“Drug traffickers are in it for the money–and those who collect the cash and send it over international borders to drug suppliers are key players in feeding the addictions that damage our communities,” said Acting U.S. Attorney Gorman. “This defendant lived the good life on the beach, with first class travel to collect drug money. But it was a lifestyle gained at the expense of those struggling with addiction to heroin, methamphetamine, and cocaine.”
During an 18-month investigation in 2017 and 2018, law enforcement identified Werber as the key money launderer for a drug distribution network. In Western Washington, the group distributed heroin, crystal methamphetamine, and fentanyl-laced counterfeit oxycodone pills in Pierce, Kitsap, King, Skagit and Snohomish Counties. Over the course of the investigation, law enforcement seized thousands of counterfeit oxycodone pills tainted with fentanyl, a powerful and potentially deadly opioid. Following one seizure from a vehicle, Washington State Patrol troopers were treated for their accidental exposure.
The investigation began with the Bremerton Police Department’s controlled buys of heroin through Facebook. On August 31, 2018, detectives and DEA agents seized more than 3,000 fentanyl-laced imitation oxycodone pills, nearly a kilogram of heroin, and more than $100,000 in cash from an apartment in South King County. On November 28, 2018, law enforcement seized more than 13 pounds of heroin from the engine compartment of a semi-truck driven by a frequent smuggler for the ring. In addition to coded cell phone conversations, many of the members of the ring also communicated via Facebook messenger. On December 6, 2018, law enforcement seized thousands of fentanyl-laced pills, more than 7.5 kilograms of heroin, and 3 kilograms of cocaine, dozens of firearms, and over $325,000 in cash. Nearly 50 defendants have been prosecuted in connection with the drug trafficking ring.
Werber originally used his own bank account to deposit drug cash and convert it to bitcoin to be transferred to drug conspirators in Mexico. Following one seizure of more than $100,000 by law enforcement in a traffic stop, Werber started using fake names to move the cash via FedEx. When an undercover agent contacted Werber and indicated he wanted to launder illegal proceeds, Werber described how he could handle the laundering of large amounts of cash and help the undercover agent avoid detection by the government.
Werber has prior federal convictions for credit card fraud, transporting stolen goods, smuggling, and passport fraud, and prior state convictions for drug trafficking, fraud, grand theft, and escape. His criminal conduct in this case began within months of his 2017 release from state prison following a nine-year sentence for a drug distribution conviction in Ohio. In fact, Werber has been in custody almost continuously since 1997.
Werber is forfeiting $69,000 in cash to the government. Following prison, he will be on three years of supervised release.
This investigation was conducted by the DEA Tacoma Resident Office and the Bremerton Police Department, with significant assistance from the Tahoma Narcotics Enforcement Team (TNET); DEA Special Operations Division, Chantilly, Virginia; and Northwest High Intensity Drug Trafficking Area (HIDTA).
The cases are being prosecuted by Assistant United States Attorneys Marci Ellsworth and Karyn Johnson.
Buffalo Man Arrested on Meth ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY—U.S. Attorney James P. Kennedy Jr. announced today that William Fugate, 31, of Buffalo, NY, was arrested and charged by criminal complaint with possessing with intent to distribute more than 50 grams of methamphetamine. The charge carries a minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Evan K. Glaberson, who is handling the case, stated that according to the complaint, on May 6, 2021, a search warrant was executed at a residence on Northumberland Avenue in Buffalo, during which the defendant was present. Law enforcement officers recovered approximately 13 ounces of suspected methamphetamine in a safe located in the master bedroom. The key to the safe was located on a table in the residence on Fugate’s car key ring. In addition, officers recovered a digital scale with white residue in a dresser in the bedroom where the suspected methamphetamine was located and a spoon with white residue on it in the safe.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Michael J. Roemer and was held pending a detention hearing on May 11, 2021.
The complaint is the result of an investigation by are the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Erie County Sheriff’s Office, under the direction of Sheriff Howard; the Lackawanna Police Department, under the direction of Chief Mark Packard; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Brazilian National Sentenced for Racketeering and Robbery ConspiraciesRead the Press Release
BOSTON – A member of Primeiro Comando da Massachusetts (“PCM”), a gang with Brazilian origins, was sentenced yesterday in connection with committing armed robberies.
Alvaro Dos Santos Melo, 22, a Brazilian national illegally residing in Everett, was sentenced by U.S. District Court Judge Patti B. Saris to four years in prison. The defendant will face deportation proceedings upon completion of his sentence. On Jan. 25, 2021, Melo pleaded guilty to conspiracy to commit robbery and racketeering conspiracy.
According to court documents, in September 2018, law enforcement began investigating members and associates of PCM, which first appeared in Massachusetts in 2017. It is alleged that members and associates of PCM were actively involved in violent crimes including the illegal sale of firearms, drug trafficking, robberies, kidnappings and armed assaults in numerous communities in Massachusetts, including Boston, Malden, Everett, Somerville, Framingham and Peabody, among others.
Melo participated in the armed robbery of a car in Marlborough and a conspiracy to commit armed robbery of a drug courier. Melo is also wanted in Brazil.
All eight of the defendants in the case pleaded guilty to racketeering conspiracy and other charges. In February 2021, Judge Saris sentenced co-defendant Breno Henrique DaSilva to 108 months in prison. In April 2021, Judge Saris sentenced co-defendant Matheus Marley Machado to 27 months in prison.
Acting United States Attorney Nathaniel R. Mendell; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. The Chelsea, Lowell, Malden, Marlborough, Somerville and Weymouth Police Departments and the Middlesex Sheriff’s Office provided assistance with the investigation. Assistant U.S. Attorney Timothy Moran, Deputy Chief of Mendell’s Organized Crime and Gang Unit, and Assistant U.S. Attorney Michael Crowley prosecuted the case.
Anchorage Man Sentenced to Federal Prison for International Parental KidnappingRead the Press Release
ANCHORAGE – An Anchorage man was sentenced to 18 months and 19 days in federal prison followed by one year of supervised release for kidnapping his two young children in 2014 while on a family vacation in the Philippines.
According to evidence presented at trial, Leo James Chaplin, 62, who is an American-born United States citizen, abducted the young children he shared with his then spouse in November 2014. Both children were born and lived in Anchorage prior to their abduction. Chaplin kept the children in the Philippines for over four-and-a-half years, depriving their mother from lawfully exercising her parental rights. Chaplin was also acting in flagrant disregard of Alaska family court orders to return the children to Alaska. In July 2019 Chaplin was arrested in the Philippines and the U.S. Marshals Service returned him to the United States in September 2019 for prosecution. The Federal Bureau of Investigation in conjunction with the U.S. Department of State ensured the safe reunification between the children and their mother.
“This sentence is a strong reminder that there are severe consequences for any parent who kidnaps their children,” said Acting U.S. Attorney Bryan Wilson of the District of Alaska. “Abducting young children and hiding them in a foreign country will not be tolerated and we will seek justice for those torn apart. The years of separation are lost forever, and the resulting emotional tragedy is unimaginable.”
The Federal Bureau of Investigation, U.S. Marshals Service, U.S. Department of State and U.S. Customs and Border Protection conducted the investigation leading to the successful prosecution of this case.
Assistant U.S. Attorneys Allison O’Leary and George Tran prosecuted the case.
To learn more about the FBI’s Crimes Against Children Program, visit fbi.gov. For more information and resources on International Parental Kidnapping, visit DOJ’s Child Exploitation and Obscenity Section webpage.
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Acting U.S. Attorney M. Rhett DeHart Recognizes National Police Week and Honors Officers Lost in Past YearRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart announced that the U.S. Attorney’s Office for the District of South Carolina will be honoring the 10 South Carolina law enforcement officers and three law enforcement K9s lost in the line of duty in 2020, while also recognizing the daily sacrifices made by all law enforcement officers, during National Police Week, observed from Sunday, May 9 through Saturday, May 15, 2021.
“Law enforcement officers and their families sacrifice greatly to protect and serve our communities,” said Acting U.S. Attorney DeHart. “Unfortunately, in the past year, South Carolina has suffered from the ultimate sacrifices made by officers across the state. We will always remember their sacrifices and honor their legacies.”
This year marks the 59th annual National Police Week that celebrates the contributions of law enforcement from around the country and recognizes their hard work, dedication, loyalty and commitment to keeping our communities safe. In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
Based on data shared by the FBI’s Law Enforcement Officers Killed and Assaulted (LEOKA) Program, 93 law enforcement officers died nationwide in line-of-duty incidents in 2020. The names of the fallen officers who have been added in 2021 to the wall at the National Law Enforcement Memorial will be read at a public vigil at 8:00 pm (EDT) on Thursday, May 13, 2021. A live stream of the vigil can be viewed at https://www.youtube.com/user/TheNLEOMF.
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Acting U.S. Attorney Jon Ophardt Recognizes Service of Law Enforcement for National Police WeekRead the Press Release
The week of May 9th to May 15th will be recognized around the country as National Police Week. This tradition of recognizing the service and sacrifice of law enforcement began in 1962, when President John F. Kennedy issued the first proclamation for Peace Officer’s Memorial Day and National Police Week. National Peace Officer’s Day, which falls on May 15th every year, honors law enforcement officers killed or disabled in the line of duty. National Police Week is set aside each year to recognize the significant contributions and extraordinary work by law enforcement in keeping our communities safe.
“Our federal, state, county, and local law enforcement partners regularly face challenging and dangerous situations, without hesitation,” stated Acting U.S. Attorney Jonathan A. Ophardt. “The commitment of law enforcement to protecting the safety of our community has not waivered during the difficulties of the pandemic. A necessary conversation is happening nationwide about police reform, and an examination of the role of police and the tactics they use is warranted and justified. I encourage continued engagement with this important issue, but also encourage celebration of the individuals who belong to the noble profession of law enforcement. We cannot live in a thriving community without having guardians of peace and a functioning system of justice. Police officers are vital to preventing the victimization of our children, our elders, our minority populations, and all vulnerable Vermonters. I thank each of them for their daily sacrifices and call good men and women to join them in the ranks of the hard working and honest law enforcement professionals serving all Vermonters.”
According to national statistics, 295 American law enforcement officers were killed in the line of duty in 2020. 182 of them died of COVID, which they contracted while on duty, serving their communities. This is a stark reminder of the level of dedication and good work law enforcement officers selflessly perform every day. Their work stands in sharp contrast with officers who unlawfully choose to abuse their authority and betray their peacekeeper oath.
Although Vermont was fortunate to avoid a law enforcement line-of-duty death this past year, the Vermont law enforcement community lost a close friend and colleague. On February 2, 2021, FBI Special Agent Daniel Alfin was shot to death in Sunrise, Florida while serving a search warrant at the home of a child pornography suspect. Agent Alfin’s death and that of his fellow FBI Agent sent shockwaves through the federal law enforcement community. SA Alfin had worked in the Albany Field Office of the FBI, which supports FBI investigations in Vermont. SA Alfin’s dedication to the protection of children included supporting multiple Vermont investigations and prosecutions, and his name was known within the Vermont USAO as an agent with the brightest of futures. His death was a true tragedy, and a grim reminder that all investigations have risk.
A total of 41 law enforcement officers have died on duty while serving Vermonters. The risks of this profession are a constant concern of our law enforcement officers and present in every town in Vermont. Danger is a possibility in each call for help. Their willingness to rush to intervene in instances of domestic violence, shootings, assaults, burglaries, homicides, robberies, and other crimes deserves gratitude.
The United States Attorney’s Office honors those who have lost their lives and been injured in service of others. We also recognize the sacrifice of law enforcement families, who shoulder a unique and complex set of emotions and challenges stemming from the service of their loved ones. Some endure the horrors of loss, but all endure additional anxiety and burdens stemming from the demands of a law enforcement career.
National Police Week also reminds us about the need for officer wellness. Law enforcement is a highly stressful profession, requiring a unique combination of poise, flexibility, and perception. The constant pressures of responding to unknown circumstances can take a toll in normal circumstances. The addition of a public health crisis and frequent burden of overtime undoubtedly has exacerbated the challenge. Law enforcement officers suffer increased heart disease, stress disorders, post-traumatic stress disorder (PTSD), depression, and alcohol abuse. Stigmas and the perception of potential impacts on employment create barriers to treatment. In 2020, 172 officers died of suicide. So far in 2021, 56 officers have taken their own lives. We encourage officers to seek the support and help they need. Please call 1-800-273-TALK or text “blue” to 741741.
The U.S. Attorney’s Office relies heavily on our federal, state, county, and local law enforcement partners in striving to make Vermont a safe community. During National Police Week, we will join Vermonters and our nation in remembering and honoring those injured and fallen officers who bravely served. And we will celebrate the noble sacrifice made by all honorable officers each and every day.
6 May 2021
Upper Marlboro Woman Pleads Guilty to Stealing Nearly $323,000 in Social Security Benefits to Which She Was Not EntitledRead the Press Release
Greenbelt, Maryland – Sonya Bannister Burford, age 53, of Upper Marlboro, Maryland, pleaded guilty on May 5, 2021, to the federal charge of theft of government property, for stealing $322,938 in Social Security benefits to which she was not entitled.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Michael McGill of the Social Security Administration (SSA) - Office of Inspector General (OIG), Philadelphia Field Division; and Special Agent in Charge Rico Medina of the Washington Metropolitan Area Transit Authority (WMATA) – OIG.
According to her guilty plea, Burford’s husband, who was receiving SSA Disability Insurance benefits, died on August 30, 1996. Upon his death, Burford failed to disclose to SSA that he had died and SSA continued to make monthly benefits payments. Between September 1996 and January 2020, Burford received and spent $322,938 in benefits paid to her husband after his death to which she was not entitled.
As detailed in her plea agreement, SSA paid the disability payments for her husband through direct deposit to a joint account held in Burford‘s and her husband’s name. After his death, Burford accessed the funds primarily through cash withdrawals or through the purchase of gift cards in large amounts at grocery stores. Burford also used the funds to make retail purchases and to pay for living expenses, and wrote checks to herself.
As part of her plea agreement, Burford will be required to forfeit and pay restitution in the full amount of the loss, which the parties agree is $322,938.
Burford faces a maximum of 10 years in federal prison for theft of government property. U.S. District Judge Peter J. Messitte has scheduled sentencing for August 5, 2021.
Acting United States Attorney Jonathan F. Lenzner commended the SSA OIG and WMATA OIG for their work in the investigation. Mr. Lenzner thanked Special Assistant U.S. Attorney Michael F. Davio, who is prosecuting the case.
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Two Texas Women Sentenced to Federal Prison for Involvement in Transnational Elder Fraud SchemeRead the Press Release
TYLER, Texas – Two Texas women have each been sentenced to 24 months in federal prison for conspiracy charges in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Pamela Sue Hannan, 68, of Sherman, and Pamela Sue Jennings, 69, of Houston, pleaded guilty on August 6, 2020, to conspiring with foreign co-conspirators to operate an unlicensed money transmitting business and were sentenced to 24 months in federal prison by U.S. District Judge J. Campbell Barker today.
“Today’s sentences send a clear message that schemes targeting elderly victims will not be tolerated, and those facilitating such schemes will be held accountable,” said Acting U.S. Attorney Nicholas J. Ganjei. “By acting as domestic money transmitters for foreign co-conspirators, these defendants played fundamental roles that allowed foreign actors to reach from overseas to target elderly victims in communities across the United States. Bringing the remaining perpetrators to justice remains a priority for this office.”
According to information presented in court, over the course of several years, Hannan and Jennings received funds from romance scam victims and from victims of other fraudulent schemes on behalf of their co-conspirators, who were based outside of the United States. In order to facilitate the scheme, Hannan and Jennings opened bank accounts in the names of businesses which purported to provide legitimate services. In reality, Hannan and Jennings used these businesses as fronts to facilitate the money transmitting scheme. Together, Hannan and Jennings received more than $4.1 million from victims of the schemes. Hannan and Jennings transferred the majority of the funds they received to their co-conspirators’ foreign bank accounts.
Hannan and Jennings were indicted by a federal grand jury on Oct. 16, 2019.
In October 2017, the Elder Abuse Prevention and Prosecution Act (EAPPA) was signed into law. The EAPPA’s purpose is to increase the federal government’s focus on preventing elder abuse and exploitation. Subsequently, the Department of Justice launched the Elder Justice Initiative (EJI). Through the EJI, the Department has participated in hundreds of criminal and civil enforcement actions involving misconduct that targeted vulnerable seniors. In March of last year, the Department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country. The EJI website contains useful information, including educational resources about prevalent financial scams so you can guard against them.
In August of 2020, the Eastern District of Texas announced its own initiative, in partnership with law enforcement and private financial institutions, to identify and prosecute transnational elder fraud. This EDTX initiative is designed to combat these criminal organization, both foreign and domestic, as well their networks of associates and money mules who launder the stolen funds.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed from 10:00 a.m. to 6:00 p.m. Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
This case is being investigated by the U.S. Department of Homeland Security-Homeland Security Investigations with assistance from the U.S. Postal Inspection Service, the Sherman Police Department, and the Appleton (Wisconsin) Police Department. It is being prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
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Two Niagara County Men Plead Guilty to Forcing Undocumented Immigrants to Work at Their Mexican RestaurantRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Roberto Montes-Villalpando, 60, of Sanborn, NY, and Abraham Montes, 28, of North Tonawanda, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to conspiracy to harbor aliens for financial gain and causing serious bodily injury. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorneys Meghan A. Tokash and Laura A. Higgins, who are handling the case, with support from the Department of Justice’s Civil Rights Division’s Human Trafficking Prosecution Unit, stated that the defendants owned and operated El Cubilete Mexican Restaurant, in Niagara Falls, NY. Between December 2014 and late 2018, the restaurant was located at 9400 Niagara Falls Boulevard. In late-2018, the restaurant moved to 2050 Cayuga Extension in Niagara Falls. Defendant Montes-Villalpando managed the restaurant, supervised the staff, including wait and kitchen staff, made hiring and firing decisions, and determined payroll. Defendant Montes supervised the kitchen staff. The kitchen staff included Victims 1, 2, 3, and 4, who were each natives and citizens of Mexico. The victims—none of whom had legal status in the United States—were employed by the defendants as cooks, food preparers, and dishwashers. In addition, the victims sublet a Niagara Falls apartment rented by defendant Montes-Villalpando.
Between November 1, 2014, and February 18, 2018, the defendants recruited and hired undocumented foreign nationals who had entered the United States illegally to work for them. Montes-Villalpando and Montes enticed prospective laborers who lived and worked in Ohio, including Victim 1 and Victim 2, to work at El Cubilete by promising them better pay and fewer hours. During their employment, Victims 1, 2, 3, and 4 were paid less than required by the Fair Labor Standards Act and by New York State law, which required a minimum wage of $9/hour. According to analysis performed by the Department of Labor, Office of the Inspector General, the victims were underpaid in the following amounts respectively: Victim 1—$5,386.60; Victim 2—$8,513.44; Victim 3—$61,665.40; and Victim 4—$6,006.60.
Additionally, in about February 2018, defendant Montes punched Victim 3 in the nose and stated he would kill Victim 3. Montes then used a fire extinguisher to strike Victim 3 in the head causing him to fall to the ground. Victim 3 was transported to a hospital for medical treatment where he was diagnosed with a broken nose and a laceration on his head was closed with staples.
The pleas are the result of an investigation by the Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, under the direction of Nikitas Splagounias, Acting Special Agent-in-Charge of the New York Region; and the Human Trafficking Task Force of Western District New York, which is co-led by the United States Attorney's Office, Erie County Sheriff's Office and International Institute of Buffalo.
Sentencing is scheduled for September 14, 2021, at 9:30 a.m. before Judge Vilardo.
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Trucking Company Employee Pleads Guilty to PPP Loan Application FraudRead the Press Release
SALT LAKE CITY – Lisa Bradshaw Rowberry, 49, of Provo, pleaded guilty for her role in Paycheck Protection Program (PPP) loan fraud scheme last week in federal court. Rowberry pleaded guilty to loan application fraud for unlawfully obtaining a federal Paycheck Protection Program (PPP) loan for the Frisbu trucking company, where she was employed by the owner of the company and co-defendant, Hubert Ivan Ugarte. Ugarte pleaded guilty to PPP loan fraud and federal bribery charges involving the FedEx Ground Hub in federal court last month.
According to the plea agreement, Rowberry admitted to submitting a fraudulent loan application to Transportation Alliance Bank in Ogden, Utah, for PPP loans authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and that she fraudulently obtained $210,000 in PPP loans for Frisbu after failing to disclose on the loan application that Ugarte was under federal indictment for his role in a bribery scheme involving the FedEx Ground Hub. Rowberry stated that she first met Ugarte while working as Branch Manager at a U.S. Bank branch in Utah where Ugarte was a customer, and that when she went to work for Ugarte, she was aware that he was under federal indictment for his role in a FedEx Ground Hub bribery scheme that occurred in Utah.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to millions of Americans suffering from 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 more than $300 billion in additional PPP funding, and Congress again authorized more than 284 billion in Additional PPP funding in 2021.
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 entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses a certain amount of the PPP loan proceeds on payroll expenses.
Sentencing is set for July 7, 2021 for Rowberry and on June 3, 2021 for Ugarte.
Assistant United States Attorneys in the Utah U.S. Attorney’s Office prosecuted the case against Rowberry. Special Agents from the FBI, IRS, and the Department of Transportation Office of Inspector General conducted the investigations.
Three Maryland Residents Facing Federal Indictment for Dating and Business Email Compromise Scams with Alleged Losses of More Than $2.3 MillionRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging three defendants on federal charges of conspiracy to commit wire fraud, conspiracy to commit money laundering, and aggravated identity theft:
Noel Chimezuru Agoha, age 37, of Baltimore, Maryland
Sessieu Ange Oulai, age 34, of Parkville, Maryland, and
Kelechi Arthur Ntibunka, age 32, of Essex, Maryland.The indictment was returned on March 22, 2021, and was unsealed today. Agoha and Ntibunka were arrested yesterday and had their initial appearances today. At today’s hearing, U.S. Magistrate Judge Beth P. Gesner ordered that Agoha and Ntibunka be detained pending a detention hearing scheduled on May 12, 2021. Oulai is currently detained on unrelated state charges and will have an initial appearance on the federal charges at a later date.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Special Agent in Charge Edwin Guard of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service; and Commissioner Michael Harrison of the Baltimore Police Department.
According to the three-count indictment, from August 2016 to December 2018, the conspirators conspired with others to execute a business email compromise scam (“BEC” scam) in which the defendants sent deceptive emails to victim businesses posing as clients or representatives of companies with whom the victims had ongoing business to induce money from victims. The parties being impersonated were also victimized by the BEC scam because the object of the fraud was to intercept payments intended for these parties and/or to deprive these parties of money to which they were entitled.
As part of the scheme, “drop accounts” were opened with financial institutions and controlled by the defendants and their co-conspirators, in order to receive money from victims of criminal fraud schemes, including the BEC scam, allegedly perpetrated by the defendants and their conspirators. During the course of the conspiracy, Agoha transmitted the identity of at least one BEC victim to a co-conspirator.
The indictment alleges that the conspirators created fraudulent email accounts that included or abbreviated the names of the BEC scam victims, or accessed the BEC victims’ email accounts without authorization, in order to send fraudulent emails impersonating the victims and to receive information and funds without the victims’ knowledge or authorization. Conspirators sent emails and made phone calls to the BEC victims requesting and instructing the victims to make electronic transfers and payments of money into the drop accounts, without the knowledge or authorization of the victims being impersonated. Agoha, Oulai, Ntibunka, and other conspirators allegedly monitored drop account activity (deposits, transfers, and balances), relayed information, and provided instruction about transactions to co-conspirators via text messages. In total, the defendants and their co-conspirators allegedly received, or attempted to receive, more than $1.1 million in proceeds from BEC scams.
The indictment further alleges that from May 2016 to July 2018, Agoha conspired with others to execute a dating scam. As detailed in the indictment, members of the conspiracy communicated with individual victims on dating websites and created a false pretense of a romantic relationship with the victims to coax the victims to send money. The conspirators allegedly used common dating scam tactics, including claiming fictious financial hardships and crises in order to persuade victims to transfer funds to the drop accounts. As part of the conspiracy, Agoha allegedly provided drop account information to co-conspirators to relay to dating victims including routing numbers, account numbers, and the name of the account holder. The indictment alleges that Agoha and his co-conspirators accrued more than $1.2 million in dating scam proceeds.
Finally, the indictment alleges that Agoha, Oulai, and Ntibunka conspired to launder proceeds from the dating and BEC scams in order to conceal the source of the funds. Specifically, the defendants allegedly negotiated payments for their roles in conducting drop account transactions, transferred and disbursed money received from the scams into other accounts, withdrew cash, and negotiated bank checks made payable to themselves and others.
If convicted, the defendants face a maximum sentence of 30 years in federal prison for conspiracy to commit wire fraud affecting financial institutions and a maximum of 20 years in federal prison for conspiracy to commit money laundering. In addition, Agoha faces a mandatory sentence of two years in federal prison, consecutive to any other sentence imposed, for aggravated identity theft. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. Individuals charged by indictment are presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended HSI, the Diplomatic Security Service, and the Baltimore Police Department for their work in the investigation and thanked the Florida Department of Law Enforcement for its assistance. Mr. Lenzner thanked Assistant U.S. Attorney Matthew J. Maddox, who is prosecuting this case.
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Tallahassee Man Convicted for Communicating Threats of ViolenceRead the Press Release
TALLAHASSEE, FLORIDA – This afternoon a federal jury convicted Daniel Alan Baker, 33, of Tallahassee on two counts of transmitting a communication in interstate commerce containing a threat to kidnap or injure another person. The conviction, which followed a two-day trial that began Tuesday morning, was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
Baker was arrested by agents of the Federal Bureau of Investigation on January 15, 2021, after he issued a “Call to Arms” for like-minded individuals to violently confront protestors that may gather at the Florida Capitol in the wake of the January 6 riots at the U.S. Capitol. He specifically called for others to join him in encircling any protestors and confining them at the state Capitol complex using firearms. Baker posted two such threatening communications on January 12 and 14, 2021.
“The free exercise of speech is central to our democracy,” stated Acting U.S. Attorney Coody. “However, the defendant’s threats of armed violence to inhibit expression of political views different than his own are both unlawful and dangerous. This office and our law enforcement partners are committed to protecting public safety, and the jury’s verdict today has ensured that the defendant will be held accountable for his actions.”
At trial, evidence was presented showing that both threatening communications were true threats. The evidence included Baker’s foreign and domestic military training, his experience with firearms and explosives, as well as his social media posts that threatened the use violence and calls to war against those of different ideologies. Jurors observed social media posts in which Baker proclaimed himself as an anarchist, relayed his desire to slay his enemies, and boasted about assaulting law enforcement officers at protests in addition to his capabilities as a trained sniper. The evidence also included three firearms, a loaded shotgun and handgun depicted in many of his posts which were seized from Baker at the time of his arrest, and a third firearm, an AK-47 style rifle purchased by Baker days before transmission of his “Call to Arms.”
Baker’s sentencing hearing is scheduled for August 16, 2021, at 3:30 pm, at the United States Courthouse in Tallahassee before the Honorable Allen Winsor. Baker faces a maximum sentence of five years imprisonment, a $250,000 fine, and three years’ supervised release on each count.
"This case proves that the FBI will not tolerate those who seek to wreak havoc in our communities," said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. "Violence designed to intimidate citizens and influence government is what the FBI's counterterrorism team was designed to combat, and our team remains laser focused on identifying, investigating, and disrupting individuals who cross the line from expressing beliefs to violating federal law by inciting violence or engaging in criminal activity. The communities of North Florida deserve nothing less than our full commitment to aggressively pursue these cases, and we will continue to work alongside our federal, state, and local law enforcement partners. We are especially grateful for the work of the Florida Department of Law Enforcement, Leon County Sheriff’s Office and Tallahassee Police Department in this case."
This conviction was the result of a collaborative investigation by the Federal Bureau of Investigation, Florida Department of Law Enforcement, Leon County Sheriff’s Office, and the Tallahassee Police Department. Assistant United States Attorneys Stephen Kunz and Lazaro Fields prosecuted this case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Syracuse Man Sentenced to 18 Years for Uploading Child Pornography to FacebookRead the Press Release
SYRACUSE, NEW YORK – Randy Tremfer, 43, of Syracuse, was sentenced today in federal court in Utica to 18 years in prison for transportation of child pornography, announced Acting United States Attorney Antoinette T. Bacon and Kevin Kelly, Special Agent in Charge of Homeland Security Investigations (HSI), Buffalo Field Office.
In pleading guilty, Tremfer admitted that on January 24, 2019, he uploaded to Facebook a video containing child pornography, and that he possessed 37 additional videos of child pornography in his Facebook account. Tremfer committed the offense while on supervised release for a prior federal conviction for receipt and possession of child pornography, for which he served a 60-month prison sentence. United States District Judge David N. Hurd sentenced Tremfer to an additional 18 months in prison for violating the conditions of that release, which will run consecutively to the sentence imposed for his new crime.
Tremfer was also sentenced to serve a lifetime term of supervised release after he is released from prison, and he will continue to be required to register as a sex offender.
This case was investigated by Homeland Security Investigations and was prosecuted by Assistant U.S. Attorney Michael F. Perry 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.
Superseding Indictment Charges 8 Bridgeport Gang Members with Drug Trafficking, Committing 6 MurdersRead the Press Release
As part of an ongoing investigation into gang-related drug trafficking and related violence in Bridgeport, a federal grand jury in New Haven has returned a superseding indictment charging an additional four Bridgeport men with conspiring to engage in a pattern of racketeering activity, including drug trafficking, murder and attempted murder.
Today’s announcement was made by Leonard C Boyle, Acting United States Attorney for the District of Connecticut; Joseph T. Corradino, State’s Attorney for the Fairfield Judicial District; Bridgeport Acting Police Chief Rebeca Garcia; David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; Kelly D. Brady, Special Agent in Charge, ATF Boston Field Division; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England.
The superseding indictment, which was returned on May 3 and unsealed yesterday, charges
KEISHAWN DONALD, 20
TREVON WRIGHT, also known as “Tre,” 19
KYRAN DANGERFIELD, 24, ERIC HAYES, also known as “Heavyweight Champ,” 24
TRAVON JONES, also known as “Budda,” 19
TYRONE MOORE, also known as “Ty Ralph Lauren,” 19
CHARLES ANTHONY BONILLA, also known as “30 Cal” and “Ant,” 22
HARRY BATCHELOR, also known as “Bookie,” 24Donald, Wright, Dangerfield and Hayes were originally charged by indictment in January 2021, and the original indictment included overt acts related to four murders. The superseding indictment adds Jones, Moore, Bonilla and Batchelor as defendants, and includes overt acts related to an additional two murders.
Batchelor was arrested this morning. He appeared before U.S. Magistrate Judge Robert M. Spector via videoconference and is detained. The other defendants are detained in federal or state custody.
As alleged in court documents and statements made in court, in an effort to address escalating violence in Bridgeport, the FBI, ATF, DEA, U.S. Marshals, and Bridgeport Police are actively investigating multiple Bridgeport-based groups whose members are involved in narcotics trafficking, murder and other acts of violence. The eight defendants are members or associates of the “East End gang,” which began as a local street gang based in the East End of Bridgeport, but currently has members and associates who are either incarcerated or living throughout Bridgeport and surrounding towns. The East End gang has been aligned with other groups, including the PT Barnum Gang, the East Side gang and 150, which is a geographic gang based on the West Side of Bridgeport. These groups were aligned against rival organizations in Bridgeport, including the “Original North End” (“O.N.E.”) and the “Greene Homes Boyz,” (“GHB/Hotz”), based in the Charles F. Greene Homes Housing Complex in Bridgeport’s North End.
The indictment alleges that the East End gang distributed heroin, crack cocaine, marijuana and Percocet pills; used and shared firearms; and committed murder and other acts of violence against rival gang members and other individuals. East End members celebrated their criminal conduct on social media websites such as Facebook and YouTube, and committed acts of intimidation and made threats to deter potential witnesses to their crimes and to protect gang members and associates from detection and prosecution by law enforcement authorities.
Among the violent acts committed by the gang, the indictment alleges that:
- On January 30, 2018, Donald shot and killed Eric Heard, a.k.a. “Fetti,” a member and associate of the GHB/Hotz gang;
- On March 5, 2019, Hayes shot and killed Jerrell Gatewood;
- On July 4, 2019, Bonilla shot and killed Richard McDonald, a member and associate of the GHB/Hotz gang;
- On July 12, 2019, Jones and Moore shot and killed Sean Warren, also known as “Kujoe,” a member and associate of the O.N.E. gang;
- On September 15, 2019, Wright shot and attempted to kill Marquis Isreal, a.k.a. “Garf” or “Gbaby,” a member and associate of the O.N.E. gang;
- On October 17, 2019, Jones shot and attempted to kill Joshua Gilbert, a member and associate of the O.N.E. gang;
- On December 8, 2019, Wright shot and attempted to kill Arvan Smith, a.k.a. “Arv Barkley,” an associate of the O.N.E. gang;
- On January 26, 2020, Wright shot and killed Myreke Kenion and shot and attempted to kill D’Andre Brown, both members and associates of the GHB/Hotz gang;
- On June 25, 2020, Dangerfield and “JW,” an East End associate who is now deceased, and another individual, shot and killed Tyler Ballew, a member and associate of the O.N.E. gang;
If convicted, Donald, Wright, Dangerfield, Hayes, Jones, Moore and Bonilla face a maximum term of imprisonment of life, and Batchelor faces a maximum term of imprisonment of 20 years.
Acting U.S. Attorney Boyle noted that, in the past year, 24 members of the East End, O.N.E. and GHB/Hotz gangs have been charged with federal offenses as a result of this ongoing investigation.
Acting U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the FBI’s Safe Streets and Violent Crimes Task Forces, ATF, DEA, U.S. Marshals Service, Bridgeport Police Department, Connecticut State Police and the Bridgeport State’s Attorney’s Office, with the assistance of the U.S. Postal Inspection Service, Connecticut Forensic Science Laboratory and the Waterbury Police Department. The case is being prosecuted by Assistant U.S. Attorneys Rahul Kale, Jocelyn C. Kaoutzanis, Peter D. Markle and Karen L. Peck.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN), Project Longevity and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Summerville Tax Return Preparer Indicted for Preparing False Income Tax ReturnsRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart stated today that a Federal Grand Jury has returned a 17-count indictment charging Earl Wayne Ravenell, 46, of Summerville, for preparing false income tax returns.
Ravenell is charged with 16 counts of willfully aiding and assisting in the preparation of false and fraudulent tax returns and one count of making and subscribing a false tax return. The maximum penalty Ravenell could receive per count is three years imprisonment and a fine of $250,000.
The case was investigated by the Internal Revenue Service. Assistant United States Attorney Dean H. Secor is prosecuting the case.
Acting United States Attorney DeHart stated that all charges in indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Snow Hill Man Sentenced to 18 Years for Methamphetamine TraffickingRead the Press Release
WILMINGTON, N.C. – A Snow Hill man was sentenced today to 216 months in prison for Conspiracy to Distribute and Possess with the Intent to Distribute Fifty (50) Grams or More of Methamphetamine and Distribution of Fifty (50) Grams or More of Methamphetamine. In addition, he was fined $10,900.00 by the court.
According to court documents, Roderick Derrell Jones, a/k/a “Coffee” and “Base,” 41, distributed a total of over ninety (90) grams of crystal methamphetamines during three controlled purchases in April and May of 2020. The methamphetamine seized during those deals was either 99% or 100% pure.
Special Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) also learned that Jones was seeking assistance with a planned armed robbery. Jones had commented that he would be willing to put a gun to the head of an infant child in order to extract more money from the intended victim. ATF utilized an informant to meet with Jones in order to divert his attention from an actual victim, and instead arrested him when he was in route to another planned armed robbery. He was found in possession of a firearm that day.
Jones was previously convicted in State Court in 1997 of Common Law Robbery and in 2002 of Second-Degree Rape and of Robbery with a Dangerous Weapon. He was also convicted of three counts of Indecent Exposure between 2016 and 2018.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Kinston Police Department and the ATF investigated the case and Assistant U.S. Attorney Laura S. Howard prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:20-cr-00061-M-1.
Slidell Woman Sentenced to 34 Months for Wire Fraud and Aggravated Identity Theft ViolationsRead the Press Release
NEW ORLEANS – The United States Attorney’s Office for the Eastern District of Louisiana announced today that RACHEL E. LIPPS (“LIPPS”), age 40, of Slidell, LA was sentenced to 34 months imprisonment by the Honorable Susie Morgan for thirty-three counts of wire fraud, in violation of Title 18, United States Code, Section 1343 and a single count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. For Counts 1-33, the Court imposed 10 month concurrent sentences to be served consecutively to a 24 month sentence LIPPS received for Count 34. Additionally, the Court ordered that LIPPS serve 3 year (Counts 1-33) and 1 year (Count 34) terms of supervised release, all to run concurrently. LIPPS was ordered to pay $3400 in special assessment fees and restitution in the amount of $473,978.53.
According to court documents, between January 2013 and October 2017, LIPPS served as a part-time bookkeeper for Business A. Business A was a Louisiana corporation domiciled in Slidell, Louisiana. LIPPS was entrusted with the daily accounting and her job functions included accessing and utilizing QuickBooks software to issue payroll checks and pay vendors on behalf of Business A. Using QuickBooks, LIPPS fraudulently printed and cashed checks made payable to herself and several of her creditors. On or about July 22, 2014, LIPPS forged the signature of Business A’s co-owner on a check despite not having the authority to do so. In all, LIPPS stole $473,978.53 from Business A and its owners.
This matter was handled by the Federal Bureau of Investigation and the Saint Tammany Parish Sheriff’s Office. United States Attorney Duane A. Evans is prosecuting the case.
Seven Members of Violent Gang Charged with Racketeering and Firearms OffensesRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), Raymond P. Donovan, Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), and Kevin P. Bruen, Acting Superintendent of the New York State Police (“NYSP”), announced today the unsealing of an eleven-count Indictment charging JAYQUAN SMITH, a/k/a “Six,” RASHIEN JACKSON, a/k/a “Pop,” JAMES BELL, a/k/a “Dex,” DAQUAN MURPHY, a/k/a “Fritz,” JONATHAN ODENTHAL, a/k/a “White Boy,” HASSAN SIMMONS, a/k/a “Hart,” and DERICK MURPHY, a/k/a “Yogi,” with racketeering and firearms offenses, as well as violent crimes in aid of racketeering, in connection with their membership and association with the 800 YGz gang (the “800 YGz”). DAQUAN MURPHY was taken into custody yesterday. DERICK MURPHY and SMITH were already in federal custody on separate charges. BELL and JACKSON were in state custody on separate charges. The defendants will be presented this afternoon before U.S. Magistrate Judge Katharine H. Parker in Manhattan federal court. SIMMONS and ODENTHAL remain at large. The case has been assigned to U.S. District Judge Alison J. Nathan.
U.S. Attorney Audrey Strauss said: “As alleged in today’s indictment, members and associates of a violent street gang wreaked havoc in the Bronx for many years, committing numerous acts of violence against rival gang members. Thanks to the hard work of our law enforcement partners, the defendants now face federal charges for these serious crimes.”
DEA Special Agent in Charge Raymond P. Donovan said: “These defendants are charged with participating in the activities of the 800 YGz gang and committing numerous acts of violence. Their alleged criminal conduct has been a scourge on communities in the Bronx for years. I applaud the New York Drug Enforcement Task Force and U.S. Attorney’s Office Southern District of New York on their teamwork and diligence throughout this impactful investigation.”
NYPD Commissioner Dermot Shea said: “The kind of street violence these defendants were allegedly willing to carry out threatens the fabric of life for everyone in our city. This federal prosecution puts an end to it, strengthened by the joint work of our NYPD officers, federal partners and prosecutors from the United States Attorney’s Office in the Southern District of New York.”
New York State Police Acting Superintendent Kevin P. Bruen said: “This case involves members of a gang that engaged in numerous alleged acts of violence, with absolutely no regard for the consequences of their actions. I want to commend our partners for their cooperation and hard work to hold these subjects accountable and remove this threat from our neighborhoods.”
According to the allegations in the Indictment unsealed today in Manhattan federal court[[1]]:
JAYQUAN SMITH, a/k/a “Six,” RASHIEN JACKSON, a/k/a “Pop,” JAMES BELL, a/k/a “Dex,” DAQUAN MURPHY, a/k/a “Fritz,” JONATHAN ODENTHAL, a/k/a “White Boy,” HASSAN SIMMONS, a/k/a “Hart,” and DERICK MURPHY, a/k/a “Yogi,” are members and associates of the 800 YGz, a racketeering enterprise that operates principally in the New York City metropolitan area. In order to enrich the enterprise, preserve and protect the power of the enterprise, and enhance its criminal operations, 800 YGz members and associates committed, conspired, attempted, and threatened to commit acts of violence; distributed and possessed with intent to distribute narcotics, including crack cocaine and marijuana; engaged in wire fraud; and obtained, possessed, and used firearms.
On or about July 8, 2019, BELL shot at rival gang members, injuring two individuals, in the Bronx, New York.
On or about March 27, 2020, JACKSON shot at rival gang members in the Bronx, New York.
On or about September 16, 2020, JACKSON slashed a rival gang member in the Bronx, New York.
On or about November 21, 2020, SMITH shot at rival gang members in the Bronx, New York.
On or about December 21, 2020, SMITH shot at rival gang members in the Bronx, New York.
On or about August 28, 2020, JACKSON possessed a firearm during and in relation to a drug trafficking offense.
A chart containing the names, charges, and maximum and minimum penalties for the defendants is set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for information purposes only, as any sentencing of the defendants will be determined by the judge.
Ms. Strauss praised the outstanding work of the New York Drug Enforcement Task Force, comprising agents and officers of the DEA, NYPD, and NYSP. Ms. Strauss also thanked the NYPD’s 48th Precinct for its assistance with the investigation.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jim Ligtenberg and Alexandra Rothman are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTY
Count One
Racketeering Conspiracy
18 U.S.C. § 1962(d)
All defendants
Life imprisonment
Count Two
Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering
18 U.S.C. §§ 1959 and 2
JAMES BELL
Twenty years’ imprisonment
Count Three
Firearms Offense
18 U.S.C. §§ 924(c) and 2
JAMES BELL
Life imprisonment
Mandatory minimum of ten years’ imprisonment
Count Four
Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering
18 U.S.C. §§ 1959 and 2
RASHIEN JACKSON
Twenty years’ imprisonment
Count Five
Firearms Offense
18 U.S.C. §§ 924(c) and 2
RASHIEN JACKSON
Life imprisonment
Mandatory minimum of ten years’ imprisonment
Count Six
Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering
18 U.S.C. §§ 1959 and 2
RASHIEN JACKSON
Twenty years’ imprisonment
Count Seven
Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering
18 U.S.C. §§ 1959 and 2
JAYQUAN SMITH
Twenty years’ imprisonment
Count Eight
Firearms Offense
18 U.S.C. §§ 924(c) and 2
JAYQUAN SMITH
Life imprisonment
Mandatory minimum of ten years’ imprisonment
Count Nine
Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering
18 U.S.C. §§ 1959 and 2
JAYQUAN SMITH
Twenty years’ imprisonment
Count Ten
Firearms Offense
18 U.S.C. §§ 924(c) and 2
JAYQUAN SMITH
Life imprisonment
Mandatory minimum of ten years’ imprisonment
Count Eleven
Firearms Offense
18 U.S.C. §§ 924(c) and 2
RASHIEN
JACKSON
Life imprisonment
Mandatory minimum of five years’ imprisonment
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations and every fact described should be treated as an allegation.
Savannah prison inmate pleads guilty to distribution of child pornographyRead the Press Release
SAVANNAH, GA: A Savannah man has admitted he distributed child pornography from inside a state prison transitional center after serving a sentence for failing to register as a sex offender.
Melton Andrew Padgett Jr., 47, of Savannah, pled guilty in U.S. District Court to one count of Distribution of Child Pornography, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The plea subjects Padgett to a possible statutory sentence of up to 40 years in federal prison, along with substantial financial penalties, followed by a period of supervised release of five years to life.
There is no parole in the federal system.
“This defendant is a shocking example of a child predator who shared videos of child exploitation even as his sentence for a previous offense was nearing its end,” said Acting U.S. Attorney Estes. “With our law enforcement partners, we will continue to be vigilant in removing such criminals from our community.”
As described in court documents and testimony, Georgia’s Internet Crimes Against Children Task Force in March 2020 received a cyber tip from the National Center for Missing and Exploited Children that led investigators to Padgett. In his guilty plea, Padgett admitted sharing videos of child exploitation through a social media messaging service. At the time Padgett shared these images of child pornography Padgett was completing a state term of imprisonment and was being housed in the Coastal Transitional Center in Savannah. Padgett has prior convictions for child molestation and failing to register as a sex offender.
“This predator has not gotten the message that he cannot continue to prey upon our children or share these disturbing images with others involved in this depravity,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Cases like this strengthen the resolve and the commitment that HSI and its law enforcement partners have to protect our children and our communities.”
The case was investigated by Homeland Security Investigations and the Savannah Police Department, and prosecuted for the United States by Assistant U.S. Attorneys Jennifer J. Kirkland and Project Safe Childhood Coordinator Tara M. Lyons.
Sacramento Man Sentenced to 10 Years in Prison for Unlawfully Possessing a GunRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Troy L. Nunley sentenced Billy Paul Dunn, 48, of Sacramento, today to 10 years in prison for being a felon in possession of a firearm, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Dunn has been previously convicted of six felony offenses as well as misdemeanor crimes of violence for threats with intent to terrorize, assault with a deadly weapon, and battery on a non-cohabitating spouse. Dunn was released from state custody on Post Release Community Supervision in October 2019. In August 2020, Dunn was arrested with a loaded gun.
This case was the product of an investigation by the Sacramento County Sheriff’s Office and the Sacramento County Probation Department with the assistance of the Federal Bureau of Investigation’s Safe Streets Task Force. Assistant U.S. Attorney Justin Lee prosecuted the case.
This case is brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Rancho Cordova Man Indicted a Second Time for Firearms ChargesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Kevin Lester Wise, 64, of Rancho Cordova, charging him with being a felon in possession of a firearm and possession of an unregistered silencer, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, a federal search warrant of Wise’s residence resulted in the discovery of a Ruger .22 caliber rifle and a silencer. Wise had previously attempted to unlawfully import another silencer from China. In 1990, Wise was convicted in Sacramento County for unlawful assault by an officer while he was serving as a deputy sheriff. In 2013, Wise was convicted in federal court in the Eastern District of California for a being a felon in possession of a firearm. As a convicted felon, Wise is prohibited from owning firearms, including silencers.
This case was the product of an investigation by the Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
If convicted, Wise faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Quincy Man Charged with Child Pornography OffenseRead the Press Release
BOSTON – A Quincy man was arrested on May 3, 2021 and charged with receipt of child pornography.
Andre Tilahun, 27, was charged in a criminal complaint with one count of receipt of child pornography. Following an initial appearance yesterday, Tilahun was detained pending a detention hearing scheduled for May 7, 2021.
According to the charging documents, in April 2021, investigators executed a search warrant at Tilahun’s home and seized a laptop belonging to Tilahun. A forensic examination of the laptop revealed that Tilahun received images depicting child pornography on the Kik Messenger platform. It is also alleged that Tilahun participated in a Kik chatroom where participants shared child pornography.
The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, five years and up to life of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement. Valuable assistance was provided by the Quincy Police Department and Weymouth Police Department. Assistant U.S. Attorney Benjamin A. Saltzman of Mendell’s Major Crimes Unit is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. 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 identity and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Previously Convicted Sex Offender Pleads Guilty to Possession of Child PornographyRead the Press Release
Baltimore, Maryland – Daniel Provencal, age 47, of Denton, Maryland, pleaded guilty today to possession of child pornography. Provencal acknowledged that, at the time he committed the crime, he was on supervised release for a 2006 federal conviction for distribution of child pornography.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Rachel Byrd of the Federal Bureau of Investigation, Baltimore Field Office; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; and Caroline County State’s Attorney Joe Riley.
According to his guilty plea, between January and October 2020, Provencal possessed and repeatedly distributed child pornography on a social media provider, using multiple electronic devices and usernames. Specifically, Provencal used an Internet-based messaging application to distribute depictions, including photos and videos, of minors engaged in sexually explicit conduct. The child pornography included videos and images of prepubescent minors and videos and images that depicted sadomasochistic conduct.
On January 24, 2020 and January 31, 2020, the messaging application sent CyberTips to the National Center for Missing and Exploited Children (NCMEC) reporting two usernames that had uploaded child pornography. Investigators learned that the IP address used to login to each of the accounts was the same and was assigned to Provencal at his residence in Denton.
Law enforcement executed a search warrant at Provencal’s residence on October 15, 2020, recovering two cellphones, numerous micro SD cards, a laptop computer, notebook computer, and three tablets. Law enforcement also seized from Provencal’s bedroom a piece of paper that had 26 account usernames and passwords listed, including the two usernames which the messaging application had reported to NCMEC.
A subsequent forensic review of Provencal’s devices revealed that they each contained child pornography. In total, the devices contained at least 5,000 child pornography videos. In addition, at least one video depicts sadistic or masochistic conduct, namely a prepubescent girl bound and in bondage. The forensic review also revealed that Provencal repeatedly, on multiple devices, distributed child pornography images and videos to other users on the messaging application and engaged in explicit chats in which he discussed his sexual attraction to minors.
As detailed in his plea agreement, upon his release from prison, Provencal must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Provencal and the government have agreed that, if the Court accepts the plea agreement, Provencal will be sentenced to 126 months in federal prison. Provencal also faces 12 to 18 months in prison for violating his supervised release, which may be imposed concurrent or consecutive to the sentence in this case. U.S. District Judge Catherine C. Blake has not yet scheduled sentencing.
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 Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended the FBI, the Maryland State Police, and the Caroline County State’s Attorney’s Office for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Paul A. Riley, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Previously Convicted Felon from Philadelphia Convicted After Trial in Federal Court of Illegally Possessing a FirearmRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Jesse Golden, 30, of Philadelphia, PA, was convicted today after a three-day trial of illegally possessing a firearm and ammunition as a convicted felon.
In September 2019, the defendant was Indicted following an investigation by the Philadelphia Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. In May 2019, a Philadelphia Police officer saw a video on the social media platform Instagram in which the defendant was sitting in a car with another individual and brandishing a distinctive painted-black revolver. Investigators determined that Golden had multiple prior felony convictions, so they obtained a search warrant for the defendant’s residence. During the execution of that warrant they found an unloaded revolver and 100 rounds of ammunition the same caliber as the firearm. The revolver they found matched the look (including the paint job) of the firearm in the Instagram video. Evidence presented at trial showed that testing performed on the gun found DNA that matched the defendant’s DNA.
“The crime of being a felon in possession of a firearm is a serious offense, particularly in a city like Philadelphia, where gun violence is prevalent,” said Acting U.S. Attorney Williams. “As the evidence presented at trial showed, Jesse Golden illegally possessed a gun and flagrantly displayed it, a video of which wound up on social media. Now, Golden is facing a mandatory minimum of fifteen years in prison if the Court declares him an armed career criminal, and he could face as much as life in prison. Our Office is determined to continue doing everything we can to reduce gun violence in Philadelphia by being ‘All Hands On Deck’ to get criminals like Golden off the streets for a long, long time.”
“A felon in possession of a firearm always presents a great danger to our community,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division “The public is very fortunate that the Philadelphia Police Department was able to interdict the defendant before harm could come to anyone. We are committed to making our community safer by working with our local, state and federal partners in identifying and removing armed criminals from our streets.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney David Ignall.
Pottsville Man Sentenced to One Year and One Day Imprisonment for Destruction of Government Property and Firearm OffenseRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on May 4, 2021, Joshua Keller, age 30, of Pottsville, Pennsylvania, was sentenced to one year and one day imprisonment followed by a two-year term of supervised release by U.S. District Court Judge Robert D. Mariani, for destruction of government property and lying during the purchase of a firearm. Judge Mariani also ordered Keller to pay $39,393 in restitution.
According to Acting U.S. Attorney Bruce D. Brandler, Keller had pled guilty to one count of destruction of government property and one count of lying during the purchase of a firearm. While under the influence of methamphetamine, Keller vandalized two GSA vehicles in a Virginia parking lot by repeatedly striking them with a tire iron and spraying down the inside of the vehicles with a fire extinguisher. In a separate incident, Keller purchased a firearm for an individual in exchange for methamphetamine.
The case was investigated by the GSA Office of Inspector General. Assistant United States Attorney Scott R. Ford prosecuted the case.
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Philadelphia Man Pleads Guilty to Transporting Multiple Kilos of Cocaine to Western PARead the Press Release
PITTSBURGH, PA -- A former resident of Philadelphia, PA, pleaded guilty in federal court to charges of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
Jermaine Kyle Clark, 43, pleaded guilty to two counts before Senior United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that as a result of an Allegheny County District Attorney Narcotics Enforcement Team (DANET) investigation into drug-trafficking activity within Allegheny County, DANET investigators, in February of 2019 using a Confidential Source (CS), orchestrated a controlled purchase of 5 kilograms of cocaine from the CS’s Philadelphia-based cocaine source of supply, Jermaine Clark, aka Fats.
Clark, in conjunction with his guilty plea, admitted that he and co-defendant Suggs traveled from Philadelphia to Pittsburgh to conduct the drug transaction, using two vehicles, a Chevrolet Traverse and Subaru Tribeca, which both contained after-market, hydraulically controlled "traps" or compartments near the rear of the vehicles.
On February 24, 2019, Clark and Suggs met with the CS at a local restaurant and, on February 25, 2019, Clark and the CS agreed to meet to conduct the drug transaction at a location in North Braddock. Investigators conducted surveillance in the vicinity of where the drug transaction was to occur and observed the Chevy Traverse, driven by Clark, and Subaru Tribeca, driven by Suggs, arrive. The Court was further informed that investigators located 5 kilograms of cocaine in the Chevrolet Traverse’s trap and $8,060, behind the passenger seat in the Subaru as well as 18 kilograms of cocaine in the Subaru’s trap.
Judge Conti scheduled sentencing for Sept. 2, 2021 at 11:00 a.m. The law provides for a maximum total sentence of not less than ten years and up to life in prison, a fine of up to $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered that Mr. Clark remain in custody.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Allegheny County District Attorney Narcotics Enforcement Team (D.A.N.E.T), conducted the initial investigation and the arrest on February 25, 2019, and the Federal Bureau of Investigation conducted the investigation that led to the federal prosecution of Clark.
Owner of Several Connecticut and New York Pizza Restaurants Sentenced to Prison for Tax OffenseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that BRUNO DiFABIO, 51, of Ridgefield, was sentenced today by U.S. District Judge Victor A. Bolden to 30 days of imprisonment, followed by three years of supervised release, for a federal tax offense.
According to court documents and statements made in court, DiFabio has had various ownership interests in several pizza restaurants in Connecticut and New York, including Pinocchio Pizza LLC, doing business as Pinocchio Pizza in New Canaan, Connecticut; Top Oven Restaurant Corp., doing business as Pinocchio Pizza in Wilton, Connecticut; DiFabio Brothers Pizza Corp., doing business as Amore Pizza in Scarsdale, New York; Odell Pizza, Inc., doing business as Amore Cucina and Bar in Stamford, Connecticut; Nepperhan Restaurants Group, Inc., doing business as ReNapoli Pizza, in Old Greenwich, Connecticut; and Homefield Restaurant Corp., doing business as Pinocchio Pizza in Pound Ridge, New York.
DiFabio and his business partner in some restaurants, Steven Cioffi, engaged in a practice whereby cash was removed from the cash register and not deposited into the restaurant’s operating bank account. The businesses’ outside bookkeeper and accountant used the bank records to determine business gross receipts. When cash was removed from the register and not deposited into the business bank account, the cash would not be reported to the Internal Revenue Service. DiFabio and Cioffi also knew that certain employees had their wages paid in cash, and that a certain number of the employees were paid either a portion or the entirety of their wages “off the books.” By paying various expenses in cash and “off the books,” DiFabio, Cioffi and others facilitated the manipulation of net income reported to the IRS and the underpayment of withholding taxes to the IRS.
As a result of the scheme, the loss to the IRS in income taxes and employment taxes for the 2013 through 2015 tax years was $816,954. DiFabio has paid approximately $125,000 in restitution to date, and he has agreed to provide additional assets, including interests in his home and businesses, to make full restitution.
On October 25, 2018, DiFabio pleaded guilty to one count of conspiracy to file false income tax returns and payroll tax returns.
DiFabio, who is released on a $100,000 bond, is required to report to prison on July 12, 2021.
On September 24, 2018, Cioffi pleaded guilty to one count of aiding and assisting in the filing of a false tax return. The loss to the IRS in income taxes and employment taxes for the 2013 through 2015 tax years attributable to Cioffi’s conduct in this scheme was $122,177.59. On April 27, 2021, Judge Bolden sentenced him to 30 days of imprisonment and ordered him to make full restitution.
On June 4, 2019, Idalecia Lopes Santos, the businesses’ bookkeeper, pleaded guilty to one count of tax evasion. On March 30, 2021, she was sentenced to three years of probation.
On January 25, 2021, James Guerra, the businesses’ accountant, pleaded guilty to one count of willful failure to collect and pay over withholding taxes. He awaits sentencing.
This investigation has been conducted by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Owner of Lighthouse Properties Pleads Guilty to Wire FraudRead the Press Release
LYNCHBURG, Va. – A Forest, Virginia, man, who owned and operated Lighthouse Properties of Virginia Inc., [LHP], pleaded guilty yesterday in connection with an embezzlement scheme in excess of $550,000.
According to court documents, Timothy Darrell Penick, 38, owned and operated LHP since approximately 2011. LHP provided real estate management services to clients, including homeowners’ associations and property owners. Beginning in June 2018, Penick devised a scheme to defraud multiple LHP clients. He obtained authorization from clients to directly access client bank accounts and would then transfer funds from those accounts to other accounts in LHP’s name. Penick was the only authorized owner and signer on these LHP accounts. Penick used these funds for purposes that were not authorized by the clients and did not benefit the client.
To conceal the misuse of client funds, Penick created fraudulent bank account statements that omitted transactions from the client accounts into the LHP accounts. These fraudulent bank statements would then be used to create financial packets provided to clients and client representatives.
“Penick violated his clients’ trust when he defrauded them. This behavior is a serious federal crime and simply won’t be tolerated,” said Acting U.S. Attorney Bubar. “I’m proud of the work of our state and federal law enforcement partners that brought Penick to justice and will provide the victims in this case with restitution for the crimes committed against them.”
“Mr. Penick manipulated his clients and went to great lengths to conceal his criminal activity. With this plea, Mr. Penick accepts responsibility for his actions and the clients have the justice they deserve,” said Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division. “We are grateful for the partnership of the Campbell County Sheriff's Office and the United States Attorney's Office's - Western District of Virginia in this investigation.”
Penick pleaded guilty to one count of wire fraud. He is scheduled to be sentenced on September 7, 2021. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Campbell County Sheriff’s Office and Federal Bureau of Investigation are investigating the case.
Assistant U.S. Attorney Michael Baudinet is prosecuting the case.
Oswego County Man Pleads Guilty to Receipt and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Gary Goodale, age 40, of Fulton, New York, pled guilty today before Senior United States District Judge Thomas J. McAvoy to one count of receipt of child pornography and three counts of possession of child pornography, announced Acting United States Attorney Antoinette T. Bacon and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI). The terms of Goodale’s plea agreement call for a sentence of at least 35 years, and up to 50 years of imprisonment, to be followed by a lifetime term of supervised release. Sentencing is set for September 8, 2021.
As part of his guilty plea, Goodale admitted that he used his personal computer to receive images of child pornography over the internet, and that he possessed child pornography on three electronic devices. A forensic review of Goodale’s cellular telephone and two portable electronic storage devices revealed that all three contained numerous image files depicting child pornography. Goodale admitted that the images he possessed include sexually explicit photographs of two minors that he produced himself.
Goodale was previously convicted on December 8, 1999, in Oswego County Court for Sodomy in the First Degree in violation of New York Penal Law, Section 130.50(3), which makes it unlawful to engage in deviate sexual intercourse with another person who is less than eleven years old, and was sentenced at that time to 8 years imprisonment.
Goodale’s case was investigated by Homeland Security Investigations, Syracuse Office with assistance from the New York State Police Troop D Computer Crimes Unit, the Oswego County District Attorney’s Office and the Fulton Police Department, and is being prosecuted by Assistant United States Attorney Geoffrey J. L. Brown.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney's offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Orange Park Senior Sentenced to 27 Months in Federal Prison for Possessing Images and Videos of Child Sex AbuseRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Robert Lee Martin (66, Orange Park) to 27 months in federal prison, followed by 10 years of supervised release, for possessing images and videos depicting the sexual abuse of children.
Martin had pleaded guilty on February 6, 2020.
According to court documents, special agents from Homeland Security Investigations executed a federal search warrant at Martin’s home in November 2018, after receiving a cyber tip that an image depicting child sexual abuse had been uploaded over the internet from the residence. Martin was at the home and told the HSI agents that he has a problem and that he has been “fighting it forever.” Martin explained that he keeps a laptop computer at his friend’s house that he uses to “look at the stuff,” referring to child exploitation materials. Subsequent seizure and forensic examination of this computer revealed that it contained more than 700 images and 8 videos depicting minors being sexually abused, including very young children.
“This child predator is now securely behind bars and our community is safer as a result thanks to the law enforcement partnership between HSI Jacksonville and the Clay County Sheriff’s Office,” said HSI Jacksonville Assistant Special Agent in Charge K. Jim Phillips.
This case was investigated by Homeland Security Investigations and the Clay County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
It is another case 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.justice.gov/psc.
Operation Targeting Illegal Fishing in the Bahamas Nets Conviction of Florida Keys Man and Vessel TransferRead the Press Release
Miami, Fl. – Henry J. Danzig, 57, of Tavernier, was sentenced today in U.S. District Court in Key West by United States Magistrate Judge Lurana S. Snow, for illegally harvesting commercial quantities of demersal finfish from the vicinity of Cay Sal Bank, in the Commonwealth of the Bahamas, and transporting the fish into the United States in violation of the Lacey Act. Demersal finfish are those that live and feed on ocean bottoms.
Magistrate Judge Snow sentenced Danzig to a period of probation of one year and a $25 special assessment. In addition, Danzig was ordered to make restitution to the Commonwealth of the Bahamas for his illegal harvesting activities, by forfeiting a newly constructed and outfitted 30’ Contender Tournament boat, which will be employed by the Royal Bahamas Defense Force to prevent, deter, and eliminate illegal and unreported fishing within the archipelagic waters of the Bahamas.
According to the Information to which the defendant pled guilty on April 26, 2021, a Joint Factual Statement filed by the parties, and statements in court, on May 9, 2020, Danzig, and four others were intercepted by the U.S. Coast Guard in the Atlantic Ocean outside of Tavernier, in the Florida Keys, while they were returning from Bahamian waters. Danzig and his companions were aboard Danzig’s 39’ Contender fishing vessel, the “Bodacious.” On boarding the vessel, the Coast Guard and found and seized 167 reef fish, totaling approximately 529 pounds. At the time, Bahamian waters were closed due to the Covid-19 pandemic.
Additional investigation revealed that Danzig was co-owner of the City Hall Café, in Tavernier, FL, through which some illegally sourced Bahamian fish had been sold on prior occasions.
The Lacey Act, Title 16, United States Code, Section 3372(a)(2), prohibits the import, export, transport, sale, receipt, acquisition, or purchase of any fish in foreign commerce which was taken, possessed, transported, or sold in violation of any foreign law.
Statute Law of the Bahamas, Revised Edition 2010, Fisheries Resources (Jurisdiction & Conservation), Chapter 244, Part V, Section 70(1), in effect at the time of the conduct at issue, prohibited the export of any fishery product or resource from the Bahamas, except under and in accordance with the terms of a license granted by the Government of the Bahamas, and after presentation of the product or resource to a fisheries inspector.
According to the Joint Factual Statement, neither Danzig nor those associated with him in the charged conduct possessed a lawfully issued license from the Bahamas, to take, export or sell any fishery product or resource fish from Bahamian waters.
Operation Bahamarama is a joint enforcement effort by National Oceanic and Atmospheric Administration (NOAA) National Marine Fisheries Service (NMFS) Office for Law Enforcement (OLE), the United States Coast Guard (USCG) and the Florida Fish and Wildlife Conservation Commission (FWCC) to specifically target Illegal, Unreported, and Unregulated (IUU) fishing to and from the waters of the United State Exclusive Economic Zone (EEZ) and in conformity with the Port States Measure Agreement (PSMA), an international agreement designed to target IUU fishing. In conjunction with the Commonwealth of the Bahamas and the Bahamas Defense Force (BDF), air and marine assets, and intelligence gathering efforts were instrumental in the success of this particular mission. Information had been received by NOAA Special Agents regarding Florida-origin IUU fishing in the Bahamas, resulting in enforcement efforts focused on known violators.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and Manny Antonaras, Special Agent in Charge, NOAA Fisheries Office of Law Enforcement, Southeast Division, made the announcement.
“The U.S. Attorney’s Office is committed to helping protect the fishery resources of our neighbors in the Bahamas from poachers and others who seek to profit at the expense of scarce natural resources,” said Acting U.S. Attorney Gonzalez. “We will prosecute those who violate conservation laws intended to promote and secure sustainable fisheries.”
“Preventing illegal, unreported and unregulated (IUU) fishing is a high priority for NOAA OLE,” said Manny Antonaras, Assistant Director of NOAA’s Office of Law Enforcement, Southeast Division. “OLE will continue to cooperate with The Bahamas to help combat IUU fishing through bilateral enforcement operations, setting an example for effective fisheries enforcement cooperation.”
Mr. Gonzalez commended the coordinated investigative efforts of the NOAA Office for Enforcement, the U.S. Coast Guard, and the Florida Fish & Wildlife Conservation Commission which brought the matter to a successful conclusion. The criminal case is being prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case number 20-cr-10011.
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Omaha Man Convicted of Possessing Crack with the Intent to DistributeRead the Press Release
Acting United States Attorney Jan W. Sharp announced that a federal jury in Omaha, Nebraska, returned a guilty verdict today against Skyler F. Sanders, age 34, of Omaha, for Possession with Intent to Distribute 28 Grams or More of a Mixture or Substance Containing Cocaine Base (Crack). As a result of this conviction, Sanders is facing a mandatory minimum sentence of 5 years imprisonment and a maximum possible sentence of 40 years. There is no parole in the federal system. Senior United States District Judge Joseph F. Bataillon presided over the 3-day trial. Judge Bataillon scheduled sentencing for August 16, 2021, at 1:00 PM.
On October 3, 2019, law enforcement officers with the Federal Bureau of Investigation, Douglas County Sheriff’s Office, and the Omaha Police Department were conducting surveillance of Sanders’s residence in Omaha. Law enforcement had search warrants for Sanders’s DNA and cellular phone for a separate investigation. When law enforcement attempted to make contact with Sanders, Sanders ran from them and during the short foot pursuit, a special agent saw Sanders reach into his pocket and then throw something. Sanders fell as he was going over a chain link fence and surrendered to law enforcement. Officers searched the vicinity of where Sanders was seen throwing something and found a bag of powder cocaine and a bag of crack cocaine over a wood privacy fence about 5-10 feet from where Sanders was seen throwing something. These items were collected and found to be a little over 17 grams of powder cocaine and a little over 30 grams of crack cocaine. The crack cocaine was packaged in 9 separate individual bags.
This case was investigated by the Omaha Police Department, the Douglas County Sheriff’s Office, and the Federal Bureau of Investigations.
Novi Man Charged in Unemployment Insurance Fraud SchemeRead the Press Release
DETROIT – A Novi man was charged in a criminal complaint with aggravated identity theft, mail fraud, wire fraud, and money laundering in a scheme to defraud the State of Michigan’s (SOM) Unemployment Insurance Agency (UIA), announced Acting United States Attorney Saima Mohsin.
Mohsin was joined in the announcement by Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General and Timothy Kolar, Administrator of the Michigan Unemployment Insurance Agency, Michigan Department of Labor and Economic Opportunity.
Charged is Terrell Dwayne Mason, 39.
The criminal complaint alleges that Mason defrauded the State of Michigan’s Unemployment Insurance Agency by unlawfully using the identities of inmates in state and federal prison to file claims for Pandemic Unemployment Assistance benefits. To date, the investigation has shown that Mason allegedly filed over 40 fraudulent claims. Mason allegedly used his relationship with a State of Michigan Unemployment Insurance employee to process the bad claims through the state’s UI system. The complaint further alleges that the claims resulted in payments of over $300,000 and would have paid over $800,000 if not detected by law enforcement.
Mason, who is on supervised release after serving a prison sentence for a prior federal conviction for conspiracy to commit wire and mail fraud, was tracked to and arrested by the United States Marshals Service in Oklahoma on a warrant for allegations he violated the terms of his release. Proceedings to address Mason’s alleged violations of supervised release are pending before United States District Judge Robert H. Cleland.
The criminal complaint is a result of an investigation by the United States Department of Labor – Office of Inspector General and the Federal Bureau of Investigation. This case is being prosecuted by Assistant U.S. Attorney Mark Chasteen.
A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed, a determination will be made whether to seek a felony indictment.
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Newark Parking Authority Employee Sentenced to 30 Months in Prison for Narcotics Distribution and Illegally Possessing FirearmsRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 30 months in prison for being a felon in possession of two firearms, and for distributing heroin and cocaine base, Acting U.S. Attorney Rachael A. Honig announced.
Aughkay L. Green, a/k/a “K-Boogie,” 50, of Newark, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to a three-count indictment charging him with possession of heroin and cocaine base with intent to distribute and with being a felon in possession of numerous firearms and ammunition.
According to documents filed in this case and statements made in court:
On Jan. 12, 2017, Green sold 25 bricks – later determined to be 38 grams – of heroin to “Individual 1,” for $1,200. On March 22, 2017, Green sold Individual 1 48.9 grams of crack cocaine for $2,250. Green was under law enforcement surveillance and observed to be dressed in his Newark Parking Authority uniform.
On April 1, 2017, Green, accompanied by an unidentified male associate, met Individual 1 in Irvington, New Jersey, where Green’s associate provided Individual 1 with: (1) a Smith and Wesson Model 21 .44 caliber handgun; (2) a Smith and Wesson Model 15 .38 handgun, and (3) 50 rounds of hollow-point .44 caliber ammunition marked “44 REM MAG FC.” Green’s associate received $1,360 from Individual 1, and subsequently provided Green with proceeds from the sale and discussed using these proceeds for the purchase of narcotics.
In addition to the prison term, Judge Hayden sentenced Green to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI and task force officers of the Joint Terrorism Task Force, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark.
The government is represented by Assistant U.S. Attorney Dean C. Sovolos of the U.S. Attorney’s Office National Security Unit.
Newark Man Sentenced to 110 Months in Prison for Hobbs Act RobberyRead the Press Release
CAMDEN, N.J. – A Newark man was sentenced today to 110 months in prison for his role in robbing a barbershop, Acting U.S. Attorney Rachael Honig announced.
Philip Hedgespeth, 45, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an indictment charging him with one count of Hobbs Act robbery, one count of possessing a firearm in furtherance of a crime of violence and one count of possessing a firearm as a previously convicted felon. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On May 1, 2018, Hedgespeth entered the Cache Barbershop located in Newark and brandished a firearm at an employee and customer, demanding cash from them. The customer was an off-duty Newark police officer, who attempted to stop Hedgespeth and prevent the robbery. Hedgespeth escaped and jumped into a waiting vehicle. Newark police engaged in a motor vehicle chase with the suspects, which ended when the suspects’ vehicle became disabled on McCarter Highway. Hedgespeth then attempted to flee the scene on foot but was apprehended after a brief chase.
In addition to the prison term, Judge Kugler sentenced Hedgespeth to five years of supervised release.
Acting U.S. Attorney Honig credited law enforcement officers of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Craig B. Kailimai, Newark Field Division, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Naazneen Khan of the U.S. Attorney’s Office Organized Crimes and Gangs Unit in Newark.
New Yorker Sentenced in Eastern District of Texas for Nationwide Identity Theft and Fraud SchemeRead the Press Release
SHERMAN, Texas - A Huntington, New York, man has been sentenced to federal prison in connection with an identity theft scheme in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Daniel Brian Rink, 37, pleaded guilty on June 24, 2020, to conspiracy to commit bank fraud and was sentenced to 51 months in federal prison today by U.S. District Judge Amos L. Mazzant, III. He was also ordered to pay $230,783 in victim restitution.
“Identify theft is not a victimless crime. Indeed, it often causes great hardship to its victims, and could lead to years of trying to repair one’s finances, reputation, and credit,” said Acting U.S. Attorney Nicholas J. Ganjei. “This sentence sends a clear message that the fraudulent use of victims’ identities will be aggressively prosecuted in the EDTX.”
According to information presented in court, Dallas-Fort Worth Airport police officers discovered drugs in Rink’s luggage on Oct. 7, 2018. Police also found fraudulent identification cards that contained Rink’s photograph as well as credit cards and Sam’s Club membership cards that matched the names on the identification cards. Further investigation revealed Rink had applied for credit accounts using the names on the fraudulent identification cards. He then used those cards to purchase various items, including computers, iPhones, and prepaid gift cards.
On Nov. 15, 2018, Rink rented a 2018 Audi Q3 from Enterprise Rent-a-Car by using one victim’s Illinois identification card and paying for the rental with another victim’s credit card. A few days later, the card issuer notified the Port of Portland, Oregon, Police Department that the credit card had been used to rent a hotel room at the Portland Airport. Investigators located the Audi in the hotel parking lot and Rink inside the hotel. Rink was in possession of the false Illinois identification, another fictitious Illinois identification card that contained his photograph, victim credit cards, and gift cards. His hotel room contained more fictitious identification cards with his photograph, fraudulent credit cards, cellular phones, and a gaming system. Text and picture message exchanges on Rink’s phone included victims’ personal and credit information; discussions about the credit limit amounts they opened in victims’ names in Oregon and Colorado; and sharing of victims’ personal identification used to open and use credit in the victims’ names.
In addition, the investigation revealed that Rink’s co-conspirators used device-making equipment to manufacture fraudulent state identification documents and credit cards, provided other conspirators with fraudulent documents, and directed those conspirators to different cities throughout the United States, including Frisco and Plano, Texas, to open instant credit accounts to purchase merchandise. After purchasing the items, the conspirators would ship the illegally obtained goods to New York, where they were resold for cash. Conspirators used fraudulently obtained credit cards to rent vehicles to travel during their commission of the offense.
In all, Rink and his associates caused a loss of more than $1 million to various lenders and individual victims. On Dec. 11, 2019, a federal grand jury in the Eastern District of Texas, returned a 35-count indictment against Rink and 17 others.
This case was investigated by Homeland Security Investigations, DFW Airport Police Department, and the Port of Portland, Oregon Police Department, and prosecuted by Assistant U.S. Attorney Matthew T. Johnson.
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New York and Florida Resident Charged with $3.8 Million Paycheck Protection Program Fraud SchemeRead the Press Release
NEWARK, N.J. – A dual New York and Florida resident was charged for his role in fraudulently obtaining federal Paycheck Protection Program (PPP) loans totaling $3.8 million, Acting U.S. Attorney Rachael A. Honig and Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division announced today.
Gregory J. Blotnick, 34, of New York City and West Palm Beach, Florida, is charged by complaint with eight counts of wire fraud affecting a financial institution and six counts of money laundering. Blotnick is scheduled to have his initial appearance by videoconference on May 20, 2021, before a U.S. Magistrate Judge.
“The funds made available through the Paycheck Protection Program are intended to help businesses and their workers get through the financial hardships caused by the COVID-19 pandemic, not to enrich the unscrupulous few who, like this defendant, lie to obtain those funds for their own personal profit,” Acting U.S. Attorney Honig said. “We will continue to protect the viability of important federal programs like these by working quickly to identify, investigate, and prosecute the individuals who see a time of national crisis as an opportunity to commit fraud.”
“Not only did Blotnick fraudulently obtain almost $4 million in relief funds reserved for those suffering serious financial harm from the tragic COVID-19 pandemic, he also lied about how he would use those funds, placing millions of dollars in losing stock trades,” said Acting Assistant Attorney General McQuaid said. “The Justice Department and its law enforcement partners remain committed to aggressively pursuing and holding accountable fraudsters who treat COVID relief programs like a personal piggy bank.”
“There are many small businesses out there that are suffering who are relying on the CARES Act to keep them and their employees afloat as we continue to feel the financial hardships brough on by this pandemic,” Michael Montanez, Special Agent in Charge, IRS Criminal Investigation, Newark Field Office, said. “As alleged in the Complaint, Mr. Blotnick took advantage of the emergency financial assistance by lying and submitting fraudulent applications for loans he did not deserve. IRS Criminal Investigation will work with our law enforcement partners to root out corrupt individuals who try to illegally obtain CARES Act assistance they are not entitled to receive.”
“As the Federal government moves to support small businesses during this critical time, members of the Federal Home Loan Bank system play an integral role in the Paycheck Protection Program,” Special Agent in Charge Robert Manchak of the Northeast Region of the Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), said. “The charges announced today serve as a reminder that those who mislead lenders and seek to defraud the CARES Act will be held accountable. We are proud to work with the Department of Justice and our federal law enforcement partners during this unprecedented crisis.”
“These charges demonstrate our commitment to hold accountable those who attempt to defraud pandemic-related assistance programs designed to aid businesses and employees in these challenging times,” said Special Agent in Charge John F. Grasso, Social Security Administration Office of the Inspector General (SSA-OIG). “We will continue to collaborate across agency lines to combat this self-serving type of fraud. I want to thank the Federal Housing Finance Authority OIG, IRS Criminal Investigation, Federal Deposit Insurance Corporation OIG, and the U.S. Attorney’s Office for their efforts to bring this individual to justice.”
“These charges reflect greed and a selfish attempt to increase personal wealth on the backs of Americans suffering from the ongoing pandemic,” Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation OIG (FDIC-OIG) New York Region, said. “As with this case, we will continue to vigorously investigate financial crimes and we appreciate the cooperation of our fellow law enforcement partners.”
According to documents filed in this case and statements made in court:
Blotnick submitted eight fraudulent PPP loan applications to several lenders on behalf of seven purported businesses.
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 percent. 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.
Blotnick submitted eight fraudulent PPP loan applications to several lenders on behalf of seven purported businesses. The applications allegedly contained fraudulent representations to the participating lenders, including documentation of federal tax returns. According to Social Security Administration records, there were no wages or Forms W-2 processed for any of the entities between 2018 and 2020. Blotnick also fabricated the existence of employees listed in purported payroll expense sheets submitted to the various financial institutions.
Based on Blotnick’s alleged misrepresentations, the lenders approved Blotnick’s PPP loan applications and provided Blotnick’s purported business with approximately $3.8 million in federal COVID-19 emergency relief funds meant for distressed small businesses. Blotnick then transferred most of the proceeds into a brokerage account and lost most of it through stock trading.
The eight counts of wire fraud affecting a financial institution each carry a maximum penalty of 20 years in prison and a $250,000 fine; the six counts of money laundering each carry a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain to the defendant or gross loss to the victim, whichever is greater.
Acting U.S. Attorney Rachael Honig credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Manchak; special agents of the IRS – Criminal Investigation, under the direction of Special Agent in Charge Montanez; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Grasso; special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Special Agent in Charge Tarasca in New York; and special agents of the Board of Governors of the Federal Reserve System Consumer Financial Protection Bureau, Office of Inspector General, under the direction of Special Agent in Charge Stephen Donnelly, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the U.S. Attorney’s Office’s Government Fraud Unit in Newark and Trial Attorney Cory E. Jacobs of the Department of Justice, Criminal Division, Market Integrity and Major Frauds Unit.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
New York Man Pleads Guilty to Controlled Substance OffenseRead the Press Release
BOSTON – A Bronx, N.Y. man pleaded guilty on May 4, 2021 in connection with his role in a conspiracy to distribute a controlled substance in 2019.
Jason Jimenez, 27, pleaded guilty to one count of unlawful use of a communications facility. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Sept. 9, 2021.
On July 10, 2019, Jimenez was arrested after making admissions to investigators in connection with a drug transaction. He was indicted in August 2019 as part of a coordinated enforcement operation in the Merrimack Valley dubbed “Operation Devil’s Highway.” The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against a total of 40 people for federal drug offenses, with at least a dozen more individuals facing state charges.
The charge of unlawful use of a communications facility provides for a sentence of up to four years in prison, one year 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 and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. Valuable assistance was provided by the Lawrence Police Department and North Andover Police Department. Assistant U.S. Attorney Evan Panich of Mendell’s Office is prosecuting the case.
New York City Man Charged with Nearly $4 Million COVID-19 Relief Fraud Scheme and Money LaunderingRead the Press Release
A criminal complaint was filed in the District of New Jersey today charging a dual-resident of New York and Florida with fraudulently obtaining and laundering nearly $4 million in funds from the COVID-19 relief Paycheck Protection Program (PPP).
According to court documents, Gregory J. Blotnick, 34, of New York City and West Palm Beach, used a variety of false representations to fraudulently obtain more than $3.8 million in federal COVID-19 PPP funds. To obtain the loan money, Blotnick submitted eight falsified loan applications to numerous lenders on behalf of five of Blotnick’s businesses, including his New York City-based hedge fund management firm, Brattle Street Capital LLC and related entities. To obtain the PPP loans, Blotnick submitted false information, including the number of his employees, federal tax returns for his businesses, and his payroll documentation, and he certified that he would use the loan money only for business-related purposes. After fraudulently obtaining the loans, Blotnick laundered and misused the loan proceeds by, among other things, transferring those proceeds to brokerage accounts and placing more than $3 million in losing stock trades.
“Not only did Blotnick fraudulently obtain almost $4 million in relief funds reserved for those suffering serious financial harm from the tragic COVID-19 pandemic, he also lied about how he would use those funds, placing millions of dollars in losing stock trades,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The Justice Department and its law enforcement partners remain committed to aggressively pursuing and holding accountable fraudsters who treat COVID-19 relief programs like a personal piggy bank.”
“The funds made available through the Paycheck Protection Program are intended to help businesses and their workers get through the financial hardships caused by the COVID-19 pandemic, not to enrich the unscrupulous few who, like this defendant, lie to obtain those funds for their own personal profit,” said Acting U.S. Attorney Rachael A. Honig for the District of New Jersey. “We will continue to protect the viability of important federal programs like these by working quickly to identify, investigate, and prosecute the individuals who see a time of national crisis as an opportunity to commit fraud.”
“As the federal government moves to support small businesses during this critical time, members of the Federal Home Loan Bank system play an integral role in the Paycheck Protection Program,” said Special Agent in Charge Robert Manchak of the Northeast Region of the Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG). “The charges announced today serve as a reminder that those who mislead lenders and seek to defraud the CARES Act will be held accountable. We are proud to work with the Department of Justice and our federal law enforcement partners during this unprecedented crisis.”
“These charges demonstrate our commitment to hold accountable those who attempt to defraud pandemic-related assistance programs designed to aid businesses and employees in these challenging times,” said Special Agent in Charge John F. Grasso of the Social Security Administration OIG (SSA-OIG) New York Field Division. “We will continue to collaborate across agency lines to combat this self-serving type of fraud. I want to thank the Federal Housing Finance Authority OIG, IRS Criminal Investigation, Federal Deposit Insurance Corporation OIG, and the U.S. Attorney’s Office for their efforts to bring this individual to justice.”
“These charges reflect greed and a selfish attempt to increase personal wealth on the backs of Americans suffering from the ongoing pandemic,” said Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation OIG (FDIC-OIG) New York Region. “As with this case, we will continue to vigorously investigate financial crimes and we appreciate the cooperation of our fellow law enforcement partners.”
Blotnick is charged with eight counts of wire fraud and six counts of money laundering. The defendant is scheduled for his initial court appearance on May 20. If convicted, he faces a maximum penalty of 20 years in prison for each count of wire fraud, and a maximum of 10 years in prison for each count of money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FHFA-OIG, IRS-CI, SSA-OIG and the FDIC-OIG are investigating the case.
Trial Attorney Cory E. Jacobs of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Fatime Meka Cano of the U.S. Attorney’s Office for the District of New Jersey are prosecuting 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 Justice Department’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.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
New Orleans Man Sentenced to Twelve Months and One Day in Prison for Being A Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that CHARLES EDWARD BANKS (“BANKS”), age 38, of New Orleans, Louisiana was sentenced to imprisonment on May 4, 2021 by U.S. District Court Judge Wendy B. Vitter for charges relating to possession of a firearm.
BANKS pled guilty on November 12, 2019, to being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
According to court documents, on March 17, 2018, NOPD officers obtained a search warrant for BANKS’s vehicle and found a silver and black 9mm Ruger pistol. A criminal inquiry revealed that BANKS had a least one prior conviction that carried a penalty of at least one year in prison. BANKS indicated that at the time he possessed the firearm, he knew he had been convicted of a felony.
Judge Wendy B. Vitter sentenced BANKS to twelve (12) months and one (1) day in the Bureau of Prisons, followed by 2 years of supervised release. BANKS also must pay a $100 special assessment fee.
The U.S. Attorney's Office praised the work of the Bureau of Alcohol, Tobacco, Firearms & Explosives. The prosecution of the case was conducted by Assistant United States Attorney Kathryn McHugh.
Mother, Son Who Sold Drugs on Dark Web Sentenced to Combined 18 Years in PrisonRead the Press Release
An Arlington mother-son duo who shipped methamphetamine through the U.S. Mail has been sentenced to a combined 18 years in federal prison, announced Acting U.S. Attorney Prerak Shah.
Mary Jane McIntyre, 61, pleaded guilty in December to possession of a controlled substance with intent to distribute; she was sentenced Thursday by U.S. District Judge Mark T Pittman to 72 months in federal prison. Her son, Sean Alexander Harris, 29, pleaded guilty in December to a similar charge; he was sentenced last month by U.S. District Judge Reed O’Connor to 144 months in federal prison.
According to court documents, in March 2020, the North Texas Parcel Task Force intercepted a package thought to originate from a dark web narcotics vendor. The package – stamped with the label of a fictious company, Forever Stylist, Inc., purportedly based in Lewisville, Texas – contained several grams of a substance that field-tested positive for methamphetamine.
Investigators traced the package back to Mr. Harris, who they later observed depositing parcels of narcotics at various postal centers across the metroplex. They also identified Mr. Harris’ mother, Ms. McIntyre, on post office surveillance camera mailing parcels for her son.
The ensuing investigation identified more than 8,400 packages containing an estimated total of more than 75 pounds of methamphetamine posted between October 2019 and October 2020.
In plea papers, Mr. Harris admitted he sold narcotics over the dark web to buyers across the country.
“Suspects mistakenly believe they can remain hidden in the shadows of the dark web,” said Thomas Noyes, Inspector in Charge of the Fort Worth Division. “Postal Inspectors’ objectives are to rid the mail of illicit drug trafficking, preserve the integrity of the mail and, most importantly, provide a safe environment for postal employees and the American public. The sentencing handed down today should serve as a reminder to other perpetrators engaged in this type of criminal activity that we will ensure they are brought to justice. We thank the USPS-OIG and DEA for their partnership, in addition to the U.S. Attorney’s Office who remain a steadfast protector of the public.”
The U.S. Postal Inspection Service, U.S. Postal Service Office of Inspector General, and the Drug Enforcement Administration’s Dallas Field Division conducted the investigation. Assistant U.S. Attorney Robert Boudreau is prosecuting the case.
Monmouth County Business Owner Sentenced to One Year in Prison for Tax Evasion and Failing to Pay Employment Payroll TaxesRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, business owner was sentenced today to 12 months and one day in prison for tax evasion and failure to pay the IRS over $540,000 in employment taxes, Acting U.S. Attorney Rachael A. Honig announced today.
Wilson Salas-Molina, 41, of Howell, New Jersey, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of payroll tax evasion and one count of failure to collect, account for, and pay over payroll taxes. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in the case and statements made in court:
Salas-Molina was the owner and operator of US Contractor Inc. (aka Wilson Contractors Inc., aka WC Contractor Inc.), a roofing business located in Monmouth County. From 2012 to 2018, Salas-Molina was required to withhold and pay over to the IRS the employment taxes for US Contractor employees. Salas-Molina cashed checks he received from roofing clients at a check cashing service and paid his 14 employees in cash to conceal his payment of wages and his failure to report, account for, and pay over employment taxes to the IRS. The scheme resulted in a failure to withhold and pay over $540,000 in employment taxes to the IRS.
In addition to the prison term, Judge Sheridan sentenced Salas-Molina to three years of supervised release and ordered Salas-Molina to pay $541,181 in restitution to the IRS.
Acting U.S. Attorney Honig credited special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Courtney A. Howard of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Man Pleads Guilty to Applying for a Paycheck Protection Program Loan under False PretensesRead the Press Release
A former Tulsa resident who fraudulently applied for a Paycheck Protection Program forgivable loan guaranteed by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security (CARES) Act pleaded guilty today in federal court, announced Acting U.S. Attorney Clint Johnson.
Adewale Matthew Abel, 51, pleaded guilty to making a false statement to a financial institution. He is scheduled to be sentenced on Aug. 10, 2021.
“Stopping COVID-related fraud continues to be a priority for the Department of Justice. In the past year, this office has charged six defendants, including Mr. Abel, for fraudulent schemes related to Paycheck Protection Program forgivable loans,” said Acting U.S. Attorney Clint Johnson. “I appreciate the diligent work of Assistant U.S. Attorneys Kristin Harrington and Victor Régal who make up my Coronavirus Anti-Fraud Team. Today’s conviction reflects their resolve to hold fraudsters accountable for stealing taxpayer-funded resources needed by America’s small businesses.”
From May 3, 2020, to May 11, 2020, Abel made false statements to Stride Bank on an application for a Paycheck Protection Program loan in the approximate amount of $300,000 for a company, Pinnacle Industry LLC, that Abel claimed to own and operate. On a borrower application, Abel falsely claimed the company had a payroll of $120,000; employed 20 people; was in operation on Feb. 15, 2020 and had employees for whom it paid salaries and payroll taxes; and would use the loan funds to retain workers and maintain payroll or make mortgage interest payments, lease payments and utility payments as specified under the Paycheck Protection Program Rule. He then signed the application, certifying that information provided in the application and supporting documents was true and accurate.
The Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection Office of Inspector General; Small Business Administration Office of Inspector General; and FBI are the investigative agencies. Assistant U.S. Attorneys Kristin Harrington and Victor A.S. Régal are prosecuting the case.
Overall, the Justice Department has charged at least 120 defendants with fraud related to the Paycheck Protection Program (PPP), a provision of the $2.2 trillion CARES Act aimed at helping small businesses keep workers on their payrolls. The Department has also charged approximately 140 defendants with unemployment insurance fraud.
To learn more about the Department’s COVID response, visit: https://www.justice.gov/coronavirus. For further information on the Criminal Division’s enforcement efforts on PPP fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/ppp-fraud. For further information on the Civil Division’s enforcement efforts, visit the following website: https://www.justice.gov/civil.
To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
MS-13 Member Pleads Guilty to Racketeering Conspiracy Involving Murder and Attempted MurderRead the Press Release
A Maryland man pleaded guilty today to conspiracy to participate in a racketeering enterprise by murdering a suspected rival gang member and attempting to murder two other victims, in connection with his MS-13 gang activities.
According to his plea agreement and other court documents, from March 2016, Moises Alexis Reyes-Canales, aka Sicopita, 23, of Annapolis, was a member and associate of MS-13, and participated in a racketeering conspiracy that included assaults, murder, attempted murder, robbery, and drug trafficking. Specifically, Reyes-Canales admitted that he participated in the murder of a suspected rival gang member and conspired and attempted to murder two victims in Annapolis. In addition, between January 2016 and February 2017, Reyes-Canales and other MS-13 members/associates sold marijuana to raise funds for the gang. The drug proceeds were used for, among other purposes, the purchase of more narcotics, weapons, and to send to MS-13 members and associates in other states and in El Salvador.
“Reyes-Canales and his co-defendants committed murder, attempted murders, and other violent crimes on behalf of MS-13, causing lasting harm to victims and the Annapolis community,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “Through the diligent efforts of law enforcement and department prosecutors, these defendants will no longer harm and intimidate the Annapolis community. We will continue our relentless pursuit of MS-13 gang members, both in the United States and internationally.”
“The violence perpetrated by Reyes-Canales and his fellow MS-13 members was brutal and tragic and is totally unacceptable,” said Acting U.S. Attorney Jonathan F. Lenzner of the District of Maryland. “The U.S. Attorney’s Office in Maryland and our local and state partners are working together to remove these violent gang members and to keeping our communities safe from the violent threat of MS-13. We continue to work with our counterparts here and abroad to bring to justice these transnational gangs. We need the continued help of members of our communities in order to carry on our work against MS-13.”
“This case illustrates that gang organizations are driven by greed and profit no matter the cost to innocent lives or our communities,” said Special Agent in Charge James Mancuso for the Homeland Security Investigations’ (HSI) Baltimore Field Office. “It is HSI’s priority to investigate crimes related to transnational gang violence, a duty we diligently and systematically discharge with the help of our federal, state, local and international law enforcement partners.”“ATF is committed to focusing our efforts on identifying and investigating those who use violence and firearms to intimidate and brutalize others,” said Special Agent in Charge Tim Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division. “The strong partnerships ATF has with our federal, state, and local law enforcement partners, as well as prosecutors, are crucial in targeting these offenders and dismantling the violent gangs who try to take over communities.”
Co-defendants Marlon Cruz-Flores, 25, and Manuel Martinez-Aguilar, aka “El Lunatic” and “Zomb,” 22, both of Annapolis, previously pleaded guilty to the racketeering conspiracy and gun charge. Cruz-Flores was sentenced to 38 years in prison and Martinez-Aguilar was sentenced to 24 years. Co-defendant Fermin Gomez-Jimenez, 23, of Annapolis, pleaded guilty to conspiracy to participate in a racketeering enterprise and to using, carrying, and discharging a firearm during a crime of violence and is scheduled to be sentenced on May 18. Co-defendant David Diaz-Alvarado, 20, of Annapolis, pleaded guilty to murder in aid of racketeering in connection with his MS-13 gang activities. Co-defendant, Juan Carlos Sandoval-Rodriguez, 23, of Annapolis, was convicted on Oct. 31, 2019, of murder in aid of racketeering and conspiracy to commit murder in aid of racketeering after an 11-day jury trial for the murder of Victim 1. He faces a mandatory sentence of life in prison at his sentencing which will be scheduled at a later date. All of the defendants remain detained.
Reyes-Canales and the government have agreed that, if the court accepts the plea terms, Reyes-Canales will be sentenced to 35 years in federal prison. Chief U.S. District Judge James K. Bredar has scheduled sentencing for Reyes-Canales on Sept. 19.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
HSI, ATF, the Anne Arundel Police Department, the Annapolis Police Department and the Anne Arundel State’s Attorney Office investigated the case.
Trial Attorneys Matthew Hoff and Samantha Mildenberg Loiero of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Zachary Stendig of the District of Maryland are prosecuting the case.
Anyone with information about MS-13 is encouraged to provide their tips to law enforcement. The FBI and HSI both have nationwide tiplines that you can call to report what you know. You can reach the FBI at 1-866-STP-MS13 (1-866-787-6713), or you can call HSI at 1-866-DHS-2-ICE.
MS-13 Member Pleads Guilty to RICO Conspiracy Involving MurderRead the Press Release
BOSTON – A member of the MS-13 gang pleaded guilty yesterday in federal court in Boston to racketeering charges and admitted to participating in a 2018 murder in Lynn.
Jonathan Tercero Yanes, a/k/a “Desalmado,” 24, a national of El Salvador, pleaded guilty to racketeering conspiracy. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Sept. 15, 2021.
MS-13 is a transnational street gang operating in Massachusetts and numerous other states, as well as countries such as El Salvador, Honduras and Guatemala. MS-13 members follow certain core rules and principles, including that members attack and attempt to kill members of rival gangs, and members do not act as informants or cooperate with law enforcement.
MS-13 is organized in Massachusetts and elsewhere in the form of so-called “cliques” or smaller groups that operate under the larger mantle of MS-13. Tercero Yanes was a member of the Sykos Locos Salvatrucha clique of MS-13. Achieving promotion in MS-13 generally requires the commission of a significant act of violence.
Tercero Yanes was indicted in 2018 following an investigation into the murder of a teenage boy whose body was found in a park in Lynn on Aug. 2, 2018. The injuries to the victim’s body indicated that the victim had been stabbed dozens of times. As part of his plea, Tercero Yanes admitted that on or about July 30, 2018, he participated in that murder while a member of the MS-13 gang.
Tercero Yanes is the 4th defendant in this case to plead guilty and accept responsibility for his participation in murder. The remaining defendants in this case are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Based upon his conviction for RICO conspiracy involving murder, Tercero Yanes faces a sentence of up to life in prison, up to three years of supervised release and a fine of up to $250,000. Tercero Yanes will also be subject to deportation upon the completion of his sentence. 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Essex County District Attorney Jonathan Blodgett; Suffolk County District Attorney Rachel Rollins; Acting Boston Police Commissioner Gregory Long; and Lynn Police Chief Michael Mageary made the announcement.
Local repairman sent to prison for defrauding customersRead the Press Release
HOUSTON – A 36-year-old resident of Sugar Land has been ordered to federal prison following his conviction arising out of a mail fraud conspiracy, announced Acting U.S. Attorney Jennifer B. Lowery.
Mark Ricky Mitchell pleaded guilty Jan. 16.
Today, U.S. District Judge Kenneth M. Hoyt handed Mitchell a 33-month sentence to be immediately followed by three years of supervised release. The court included a condition of supervised release that prohibits Mitchell from engaging in any machine repair business without prior approval. He was further ordered to pay $1,148,156.98 in restitution.
At the time of his plea, Mitchell admitted he devised a scheme to defraud customers of his machine part repair shop located in Houston. He would make numerous false claims to his customers - that he had facilities in close proximity which would reduce turnaround time, how fast parts could be repaired and that he would provide a quote before beginning work.
Once he obtained possession of the victims’ parts, Mitchell demanded payment for fraudulent charges before he would return the parts. The charges were significantly more than Mitchell had originally quoted for work that was never performed nor authorized.
The victims suffered a loss of approximately $700,000 as a result of Mitchell’s scheme.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorney Justin R. Martin prosecuted the case.