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8 April 2021
Former Leader of Lowell Latin Kings Chapter Pleads Guilty to Racketeering ConspiracyRead the Press Release
BOSTON – A former Inca, of leader, of the Lowell Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to racketeering charges.
Alfred Nieves, a/k/a “King Alfy,” 33, pleaded guilty to conspiracy to conducting enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for July 21, 2021.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
As stated during the plea hearing, Nieves served as the Inca, or leader, of the Lowell Chapter of the Latin Kings. During the course of the conspiracy in June 2019, Nieves requested permission from the state and regional leadership of the gang to assault a relative of a Latin Kings member. Separately, in 2017, Nieves admitted to sending a coded message to a Latin King member in the Massachusetts prison system directing violence to be taken against a certain individual who was also incarcerated. The coded message was intercepted and deciphered by investigators.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Nieves is the 44th defendant to plead guilty in the case.
The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Commissioner Carol Mici of the Massachusetts Department of Correction made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Mendell’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Former Fairview Resident Sentenced After Pleading Guilty to Violating the Clean Water ActRead the Press Release
OKLAHOMA CITY – Yesterday, DAKOTA BRENNAN GRAY, of Carmen, Oklahoma, pleaded guilty to a single-count Information charging him with negligently discharging oil into a water of the United States, in violation of the Clean Water Act, announced Acting U.S. Attorney Robert J. Troester.
On December 2, 2020, Gray was charged by Information with violating the Clean Water Act. The Clean Water Act was enacted by Congress to restore and maintain the chemical, physical, and biological quality of the Nation’s waters. In addition, the Clean Water Act was enacted to prevent, reduce and eliminate water pollution in the United States and to conserve the waters of the United States for the protection and propagation of fish and aquatic life and wildlife, for recreational purposes, and for the use of such waters for public drinking water, agricultural, and industrial purposes. Among other offenses, the Clean Water Act prohibits the negligent discharge of oil or a hazardous substance in harmful quantities into a water of the United States.
Yesterday, Gray pleaded guilty to discharging crude oil into the Cottonwood Creek in Major County, Oklahoma. At the hearing, Gray admitted that he opened the valves on a tank battery that contained approximately 129 barrels of crude oil. Gray discharged the crude oil onto the ground and most of the oil eventually spilled into Cottonwood Creek, which is a tributary stream that flows approximately 22 miles from its headwaters in Major County northeast to is confluence with the Cimarron River near Orienta, Oklahoma. The Cimarron River flows to the Arkansas River, the Mississippi River, and ultimately the Gulf of Mexico.
A response team from the Environmental Protection Agency (EPA), along with the tank battery’s owners, participated in the cleanup and recovery operation. Response actions included the placement of rigid booms, sorbent pads, and an underflow dam to recover and remove the crude oil from Cottonwood Creek and the accompanying shoreline. Due to the prompt response and cleanup efforts, inspectors did not observe any permanent contamination of the affected area during follow-up inspections.
At yesterday’s combined plea and sentencing hearing, U.S. Magistrate Judge Suzanne Mitchell accepted Gray’s guilty plea and sentenced him to serve three years of probation.
"Enforcement of the Clean Water Act protects public health and the environment," said Acting U.S. Attorney Troester. "I commend the dedicated efforts of the U.S. Environmental Protection Agency for their investigative efforts and rapid response to mitigate the impact of the pollution."
"Our nation’s environmental laws are designed to protect our communities and our natural resources," said Special Agent in Charge Christopher Brooks of EPA’s Southwest Area Office. "EPA will continue to hold individuals responsible for their environmental crimes and the resulting harm."
This case is the result of an investigation by the EPA – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Charles Brown.
Reference is made to public filings for more information.
Former Employee of Huntington Non-Profit Charged with Theft of Federal FundsRead the Press Release
Phillips allegedly converted over $4.7 million of organization’s funds
HUNTINGTON, W.Va. -- Acting United States Attorney Lisa G. Johnston announced today the unsealing of a criminal complaint charging Ruth Marie Phillips, also known as Marie Phillips, 68, of Chesapeake, Ohio, with theft of federal funds from River Valley Child Development Services (“RVCDS”). Phillips was arrested today and appeared in federal court in Huntington before United States Magistrate Judge Cheryl A. Eifert.
RVCDS is a non-profit organization located in Huntington. RVCDS receives federal funding in excess of $10,000 in any one year and also receives state funding. RVCDS provides programs, services and support to children, families and the early childhood community.
According to the affidavit filed in support of the criminal complaint, Phillips worked as the Director of Business and Finance at RVCDS from approximately December 1, 1986 to on or about September 1, 2020. During this time, Phillips was responsible for all financial operations, including monitoring accounts receivable, creating and submitting invoices, reconciling bank accounts and issuing checks. The criminal complaint alleges that on or about April 2, 2002, Phillips opened a BB&T bank account under the name RVCDS without permission from RVCDS. Phillips listed her home address on the bank account and used it to knowingly convert approximately $4.72 million of RVCDS funds to her own use.
The criminal complaint further alleges that Phillips used the embezzled money for her own personal use and to fund Attitude Aviation, a full-service fixed-base operator authorized to provide aeronautical services, including fueling, rental of hangar space, aircraft rental, flight instruction and maintenance. Attitude Aviation has offices at Lawrence County Airpark in South Point, Ohio, and Tri-State Airport in Huntington. Phillips owns Attitude Aviation with at least two other people.
The allegations contained in the criminal complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty in a court of law.
If convicted, Phillips faces up to ten years in federal prison.
The Federal Bureau of Investigation (FBI) and the West Virginia State Police are conducting the investigation. Assistant United States Attorneys Kristin F. Scott and Kathleen Robeson are handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-mj-00034.
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Florida Resident Sentenced for Cyberstalking Idaho ResidentsRead the Press Release
BOISE – Alvin Willie George, 25, of Cross City, Florida, was sentenced to 51 months in federal prison followed by three years of supervised release for cyberstalking, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. U.S. District Judge B. Lynn Winmill also ordered George to pay $525.31 in restitution to one of the victims.
According to court records, in December 1999, in Texas, two female children were attacked in a bedroom. During the attack both children had their throats slit. One child survived the attack, but her friend was killed. The perpetrator of these crimes was convicted. Beginning in or around November 2016, and over the next several months, George began sending photos from the 1999 crime scene to the surviving victim and her sisters, all of whom live in Idaho. George did not know the surviving victim or her sisters, rather he researched the 1999 murder on the internet and used various Facebook accounts he created to send harassing and intimidating messages to these women, as well as threatening to rape and kill them.
This case was investigated by the Federal Bureau of Investigation and Boise Police Department.
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Florida Man Sentenced to 35 Years in Federal Prison for Four Armed RobberiesRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger today sentenced John Armstrong (32, North Fort Myers) to 35 years in federal prison for two bank robberies, an attempted bank robbery, a Hobbs Act robbery, and three counts of brandishing a firearm during a crime of violence.
Armstrong had pleaded guilty on September 22, 2020. Armstrong’s co-defendants, Tanya Legg (45, North Fort Myers) and Daniel Zirk (24, Spring Hill), also previously pleaded guilty and were sentenced in December 2020 for their roles in this.
According to court documents, on June 14, 2019, Armstrong used a firearm to rob a 7-Eleven convenience store in North Fort Myers. During this robbery, Armstrong struck one of the store employees in the face with his firearm. On July 31, 2019, Armstrong used a firearm to rob a Bank OZK in Punta Gorda, stealing more than $151,000 from the bank’s vault.
On September 25, 2019, Armstrong and Zirk attempted to commit an armed robbery of a PNC Bank in Davenport. Zirk carjacked two vehicles earlier that morning, holding the victims at gunpoint. Armstrong and Zirk later used one of the carjacked vehicles as a getaway car following the attempted PNC Bank robbery. The robbery failed after the bank’s alarm went off. The following day, Armstrong, Zirk, and Legg robbed a BB&T Bank in Altamonte Springs, during which Armstrong and Zirk threatened to kill the bank employees and used firearms to force the employees to open the bank’s vault. They then stole approximately $22,000 in cash from the vault. Legg helped plan and purchase supplies for the BB&T Bank robbery and the attempted PNC Bank robbery. She also served as the getaway driver for these two robberies.
On December 9, 2020, Legg was sentenced to 14 years’ imprisonment for her role in this case. Zirk was sentenced on December 16, 2020, to 22 years and 4 months in prison for his role in the case.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Altamonte Springs Police Department, the Fort Myers Police Department, the Hernando County Sheriff’s Office, the Lee County Sheriff’s Office, the Orange County Sheriff’s Office, the Orlando Police Department, the Osceola County Sheriff’s Office, the Pasco Sheriff’s Office, the Punta Gorda Police Department, the Seminole County Sheriff’s Office, and the Tampa Police Department. It was prosecuted by Assistant United States Attorneys Chauncey A. Bratt and Amanda Daniels.
Flandreau Man Sentenced for Abusive Sexual ContactRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Flandreau, South Dakota, man convicted of Abusive Sexual Contact was sentenced on April 5, 2021, by U.S. District Judge Karen E. Schreier.
Cecil Long, age 68, was sentenced to 24 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Long was indicted by a federal grand jury on January 7, 2020. He pled guilty on November 16, 2020.
The conviction stemmed from an incident between August 31, 2015, and August 30, 2016, when Long, without permission, engaged in sexual contact with a juvenile victim, who lived with Long at the time.
This case was investigated by the Federal Bureau of Investigation and the Flandreau Santee Sioux Tribal Police Department. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Long has been allowed to self-report to the custody of the U.S. Marshals Service by April 26, 2021.
Final Conspirator Pleads Guilty in Fraudulent Loan and Bank Bribery SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that ADEDAYO ILORI pled guilty today before United States District Judge Lewis J. Liman to one count of conspiracy to commit wire and mail fraud in connection with his role in a loan fraud scheme. ILORI also admitted that he conspired to commit money laundering, in violation of Title 18, United States Code, Section 1956(h). Codefendants Herode Chancy and Michael Albarella, who at the time of offense were employed as a managers at a Manhattan branch of a national bank (“Bank-1”), previously pled guilty before Judge Liman in connection with their respective roles in the scheme.
U.S. Attorney Audrey Strauss said: “Adedayo Ilori worked with bank insiders to obtain over $1 million in commercial loans for fake businesses. Ilori used stolen identities to apply for the loans and open bank accounts to receive the loan proceeds. His co-conspirators used a stolen identity provided by Ilori to launder a portion of the loan proceeds. Now all three have admitted their guilt and await sentencing for their crimes.”
According to the allegations in the Complaint, Indictment, and statements made in court:
From at least in or about March 2019 up to and including at least in or about March 2020, ILORI and Chancy conspired to fraudulently obtain business loans from a third-party commercial lender with the intent not to repay the loans – i.e., with the intent to “bust out” the loans. ILORI and Chancy together submitted eight fraudulent business loan applications for a total of $1,020,000 in business loans. The business loan applications submitted by ILORI and Chancy included doctored bank statements and listed the identities of other persons as the loan applicants, including stolen identities provided by ILORI. ILORI and Chancy also opened bank accounts using the identities of those other persons in order to receive the loan payments from the third-party commercial lender. ILORI and Chancy subsequently conspired with Albarella to open a bank account at Bank-1 using a stolen identity provided by ILORI to launder approximately $200,000 of the expected proceeds of the loan scheme. Albarella opened the bank account at Bank-1 using the stolen identity provided by ILORI and Chancy, and Albarella accepted a $10,000 bribe to open the bank account.
ILORI and Chancy believed that the underwriter for the third-party commercial lender was participating in the scheme and agreed to pay the underwriter a “commission” for the underwriter’s role in the scheme. In reality, however, the underwriter was an undercover law enforcement officer.
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ILORI, 42 of Queens, New York, pled guilty to one count of conspiracy to commit wire and mail fraud, which carries a maximum penalty of 20 years in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
ILORI is scheduled to be sentenced by Judge Liman on July 22, 2021, at 2:00 p.m.
Ms. Strauss praised the outstanding investigative work of the New York FBI’s Eurasian Organized Crime Task Force and the El Dorado Task Force of Homeland Security Investigations.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Tara M. La Morte and Cecilia E. Vogel are in charge of the prosecution.
Federal Court of Appeals Upholds Conviction and Life Sentence for Dubuque Man Who Distributed Heroin that Caused an Overdose DeathRead the Press Release
A Dubuque, Iowa, man’s conviction and life sentence for distributing heroin resulting in a death was upheld April 7, 2021, by the United States Court of Appeals for the Eighth Circuit.
On October 17, 2018, Richard Parker, age 49, from Dubuque, Iowa, was sentenced to concurrent life sentences following his jury conviction on two counts of distributing heroin, one of which resulted in an overdose death.
The evidence at trial showed that Parker obtained several grams of heroin in Chicago in April 2017. On Easter Sunday, Parker brought the heroin to a residence on Rhomberg Avenue in Dubuque. Parker and other individuals at the residence drank alcohol and smoked crack cocaine throughout the day. Prior to midnight, Parker and an individual identified as E.M. went into a back bedroom. While inside the room, Parker gave E.M. heroin, which she used. Shortly after using the heroin, E.M. stopped breathing. At approximately 12:20 a.m. on April 17, Parker called 911, and emergency responders arrived at the scene. As emergency responders were attempting to save E.M.’s life, Parker went into another room and hid the remaining approximately four grams of heroin in a chair, which was later found by investigators. The attempts to resuscitate E.M. were unsuccessful, and she was pronounced dead shortly after 1:15 a.m.
Parker had numerous felony criminal convictions. Amongst his prior convictions are four prior felony convictions related to drugs, including three prior convictions for drug distribution. In April 2017, Parker had recently been released after spending nearly a decade in prison for a burglary conviction.
“Richard Parker committed a deadly crime. The sentence affirmed by the Court of Appeals ensures he will no longer sell lethal narcotics in our community” said Acting United States Attorney Sean R. Berry.
The case was investigated by the Dubuque Drug Task Force and Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Cedar Rapids Police Department; the Linn County Sheriff's Office; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement, and was prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-1034-LRR.
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Federal Court Grants Temporary Restraining Order Against Operators of “Get-Rich-Quick” SchemeRead the Press Release
CHARLOTTE, N.C. – U.S. District Court Judge Robert J. Conrad entered a Temporary Restraining Order (TRO) today against three Florida residents and three companies, to stop them from further operation of a predatory mass mailing scheme and from continuing to violate the criminal mail fraud statute.
According to the civil complaint filed on April 5, 2021, Keivy Chavez a/k/a Kamilo Correa, Jhon F. Palacio a/k/a Richard Diamond, Sr., and John Doe a/k/a Tom Jowarski, through several fictitious business entities including KC Promotions a/k/a Miracle Profits, TJ Ads and CS Enterprises, allegedly engaged in an ongoing chain letter mass mailing fraud scheme that has targeted thousands of victims across the United States, especially the elderly. The complaint also alleges that the defendants’ efforts have resulted in significant financial harm to their victims.
According to the complaint, the defendants allegedly made material misrepresentations and fraudulent statements through deceptive mass mailings in the form of chain letters and Internet advertisements, to induce victims to enroll in one or more of their fictitious “money-making” programs, including the “Cash and Gold Tycoon Program” and the “MAJOR BUX! HUGE BUZZ!! Money Making Program.” The complaint states that the defendants induced the victims by promising exponential profits in the form of cash, commission payments, gold coins and silver bars, among other things. The complaint also states that many victims relied on the defendants’ fraudulent misrepresentations and paid over $1,000 each to enroll in the fraudulent programs, only to receive nothing in return. According to the complaint, since February 2021, the defendants have sent thousands of unlawful mass mailings, and during the same time frame the United States Postal Inspection Service (USPIS) has collected over 30 mailings, including enrollment applications and payments, addressed to KC Promotions, from victims residing in 18 states, including in North Carolina.
According to the filed complaint, USPIS has issued a notice alerting the public about these types of fraudulent schemes, warning consumers they could be commiting a federal crime.
The TRO entered today by the U.S. District Court bars the defendants and their companies from continuing to engage in such predatory schemes to prevent further harm to potential victims.
In making today’s announcement, Acting U.S. Attorney Stetzer commended Postal Inspectors with USPIS for conducting this investigation.
The enforcement action is handled by Assistant U.S. Attorneys Katherine Armstrong and James B. Gatehouse, of the U.S. Attorney’s Office in Charlotte.
The claims made in the complaint are allegations that, if the case were to proceed to trial, the government must prove to receive a determination of liability.
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In March 2019, the U.S. Attorney's Office announced the Elder Justice Initiative, which aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit: https://www.justice.gov/usao-wdnc/elder-justice-initiative
In addition to mass mail fraud schemes, other financial scams targeting seniors are:
- Lottery phone scams – in which the callers convince seniors that a large fee or taxes must be paid before they can receive lottery winnings.
- Grandparent scams – which convince seniors that their grandchildren are in trouble and need money to make rent, repair a car, or even money for bail.
- Romance scams – which lull victims to believe that their online paramour needs funds for a U.S. visit or some other purpose.
- IRS imposter scams – which defraud victims by posing as IRS agents and claiming that victims owe back taxes.
- Sham business opportunities – which convince victims to invest in lucrative business opportunities or investments.
To avoid falling victim to a financial scam:
- Don’t share personal information with anyone you don’t know.
- Don’t pay a fee for a prize or lottery winning.
- Don’t click on pop-up ads or messages.
- Delete phishing emails and ignore harassing phone calls.
- Don’t send gift cards, checks, money orders, wire money, or give your bank account information to a stranger.
- Don’t fall for a high-pressure sales pitch or a lucrative business deal.
- If a scammer approaches you, take the time to talk to a friend or family member.
- Keep in mind that if you send money once, you’ll be a target for life.
- Remember, it’s not rude to say, “NO.”
- A good rule of thumb is, if it’s too good to be true, it’s likely a scam.
If you have been contacted by a scammer or believe you have fallen victim to a scam, please contact the Justice Department’s Elder Fraud Hotline at 1-833-Fraud-11 (1-833-372-8311). The National Elder Fraud hotline was created for the public to report fraud against individuals who are age 60 or older. The hotline is open seven days a week. For more information about the hotline, please visit https://stopelderfraud.ovc.ojp.gov/.
Fort Washakie Man Charged with Assault in Indian CountryRead the Press Release
Acting United States Attorney Bob Murray announced today that VICTOR YNOSTROSA, 21, of Fort Washakie was indicted by a federal grand jury on March 25, 2021, for assault with a dangerous weapon and assault resulting in serious bodily injury. The Indictment alleges that on December 20, 2020, in the District of Wyoming and within Indian Country, Ynostrosa assaulted an individual with a firearm and the assault resulted in serious bodily injury to the victim.
He appeared before United States Magistrate Judge Teresa McKee on April 8, 2021, and plead not guilty to the charges in the Indictment. A jury trial has been set for June 14, 2021, in Casper before Federal District Court Chief Judge Scott W. Skavdahl. The maximum penalty upon conviction is up to 20 years in prison, a $500,000 fine, $200 special assessment, and 3 years of supervised release. Restitution may also be ordered.
The investigation is being conducted by Federal Bureau of Investigation Special Agent Christine Coble. Assistant United States Attorney Kerry Jacobson is prosecuting the case.
The charges against Ynostrosa are merely accusations, and he is presumed innocent until proven guilty.
Ex-Accounting Manager Sentenced to 10½ Years in Prison for Embezzling More Than $36 Million from Internet CompanyRead the Press Release
LOS ANGELES – A former accounting manager for a Los Angeles firm was sentenced today to 126 months in federal prison for embezzling more than $36 million from his employer’s client and then using the bulk of the illicit gains to pay off tens of millions of dollars in credit card debt.
Paul McDaniel, 44, a.k.a. “Edward Martin Karuku,” who resided in Orange before fleeing the United States over four years ago, was sentenced by United States District Judge John A. Kronstadt. McDaniel pleaded guilty in September 2019 to one count of wire fraud.
For more than seven years, McDaniel embezzled the funds from Hypermedia Systems Inc., a media technology services firm based in downtown Los Angeles. McDaniel initially was an independent contractor for, and then an employee of, E-Times Corp., a downtown Los Angeles-based professional services firm that provided accounting assistance to Hypermedia Systems. McDaniel was assigned to work at Hypermedia as an accounting manager. As part of his job, he would request payments to be made from a Hypermedia account to pay Hypermedia vendors.
While working with Hypermedia, McDaniel formed a Nevada corporation with a name like one of Hypermedia’s vendors and then opened a bank account – which he controlled – in that entity’s name. He then used his authority as Hypermedia’s accounting manager to approve and direct tens of millions of dollars’ worth of payments to this bank account.
To justify the payments, McDaniel created more than 100 false and fictitious invoices that appeared to be from actual Hypermedia vendors, falsely stating the goods and services had been provided to the company. In total, McDaniel caused more than $36 million to be fraudulently transferred by wire or check from Hypermedia to the bank account he controlled. McDaniel used the ill-gotten gains to pay off $23 million in credit card bills and transferred another $8 million to his personal bank accounts. As part of his sentence, McDaniel was ordered to pay $36,332,388 in restitution to Hypermedia.
McDaniel fled to Costa Rica in early 2017, and he was arrested there later that year pursuant to a provisional arrest warrant filed by the United States. He was extradited to the United States in February 2019 and has been in custody since then.
The FBI investigated this matter.
Assistant United States Attorney Poonam G. Kumar of the Major Frauds Section prosecuted this case.
Duplin County Methamphetamine Trafficker Receives More Than 11 Years in Federal PrisonRead the Press Release
WILMINGTON, NC - Jason Hyland, 39, of Duplin County, was sentenced yesterday to 134 months in prison for Conspiracy to possess with the intent to distribute and distribute 500 grams or more of a mixture and substance containing methamphetamine and possession with intent to distribute 500 grams or more of a mixture and substance containing methamphetamine.
According to court documents and evidence presented in court, on June 30, 2020, Drug Enforcement Administration (DEA) agents working with Duplin County Narcotics Detectives received information that Hyland and Ashely Shakelford were traveling to Atlanta, Georgia to pick up two pounds of methamphetamine and then would be returning to Eastern North Carolina. On July 1, 2020, DEA agents assisted by Sampson County Sheriff’s Office Detectives stopped a car driven by Shakelford with Hyland as the sole passenger. The car was stopped in the Newton Grove area returning from Georgia. Detectives had a K-9 conduct a sniff of the car and the K-9 detected the odor of narcotics. Detectives searched the car and found more than a kilogram and half of methamphetamine. During the investigation, law enforcement discovered that between May and June 2020, Hyland made approximately 8 trips to Georgia to pick up methamphetamine. Hyland had distributed methamphetamine to Virginia and the Eastern District of North Carolina. Hyland was responsible for distributing approximately 6 kilograms of methamphetamine.
Shakelford was previously sentenced in federal court for her role and received 90 months imprisonment.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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 Drug Enforcement Administration, Bureau of Alcohol, Tobacco, and Firearms, the Craven, Duplin, New Hanover and Sampson County Sheriffs’ Offices and the Mount Olive Police Department investigated the case and Assistant U.S. Attorney Timothy Severo prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-cr-00130-M-1.
Drug Trafficking Gang Member Sentenced to 30 Years in PrisonRead the Press Release
SAN JUAN, Puerto Rico – Oscar Luis Mendoza Flores, a member of a violent drug trafficking gang that operated in the municipality of Cayey between 2008 and 2015, was sentenced by U.S District Judge Pedro A. Delgado-Hernández to a term of 360 months (30 years) in prison, announced United States Attorney for the District of Puerto Rico, W. Stephen Muldrow.
Oscar Luis Mendoza Flores was charged in a six-count indictment along with 32 other defendants in November 9, 2015, with conspiracy to possess with intent to distribute, and distribution of cocaine, heroin, crack, marijuana, alprazolam and oxycodone. Immigration and Customs Enforcement- Homeland Security Investigations (ICE-HSI) and the Puerto Rico Police Bureau (PRPB), Guayama Strike Force, were in charge of the investigation.
The indictment alleged that beginning in 2008, the organization distributed controlled substances within 1,000 feet of a real property comprising Luis Muñoz Morales and Brisas de Cayey Public Housing Projects (PHP), San Tomás and Canteras Wards, and other areas nearby and within the Municipality of Cayey, Puerto Rico, all for financial gain and profit. After being convicted at trial of conspiracy to possess with intent to distribute controlled substances in a protected location, possession with intent to distribute cocaine, heroin and marijuana in a protected location, and possession of firearms in furtherance of a drug trafficking crime, Oscar Luis Mendoza Flores was sentenced to a term of imprisonment of 300 months for the drug trafficking charges, and a term of imprisonment of 60 months to be served consecutively, for the possession of firearms in furtherance of a drug trafficking crime, for a total term of imprisonment of 360 months.
Members of the gang, including the defendant, participated in shootings in the common areas of the Luis Muñoz Morales PHP and surrounding areas. These shootings were meant to threaten and intimidate rival gangs, and endangered the lives of the law-abiding citizens residing in these neighborhoods. The co-conspirators possessed handguns of different makes, models, and calibers, as well as fully automatic handguns and high-power rifles.
“This lengthy sentence is the result of the outstanding work and collaboration between the PRPB Strike Forces, and Federal law enforcement (HSI Ponce),” said U.S. Attorney Muldrow. “I commend the investigative and prosecution team for their hard work. We will continue our joint efforts to dismantle violent gangs and ensure safety for all citizens of Puerto Rico.”
Deputy Chief of the Gang Section Teresa S. Zapata Valladares and Assistant United States Attorney César Rivera-Giraud prosecuted the case.
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Detroit Man Who Robbed Credit Union and Crashed Getaway Car Near Vandenberg Air Force Base Pleads Guilty to Bank Robbery ChargeRead the Press Release
LOS ANGELES – A Michigan man who robbed a credit union – and two days later attempted to rob a bank and led law enforcement on a high-speed pursuit that ended with him crashing his getaway car near Vandenberg Air Force Base – pleaded guilty today to a federal criminal charge.
Maurice Antwion Pilgrim Jr., 19, of Detroit, pleaded guilty to one count of bank robbery.
According to his plea agreement, on October 13, 2020, Pilgrim robbed Coast Hills Credit Union in Lompoc, netting $3,000 in the theft. Two days later, Pilgrim attempted to rob Mechanics Bank in Guadalupe by handing one of the tellers a note which read, “give me $5,000-$10,000 and no gets hurt.” Pilgrim fled the scene after seeing a nearby bank security guard.
After fleeing Mechanics Bank, local law enforcement spotted Pilgrim driving a car on Highway 1 and began pursuing him. After initially stopping his car, Pilgrim refused to exit the vehicle and, to avoid capture, sped away. During his subsequent flight from law enforcement he drove at speeds more than 110 mph, weaving in and out of traffic, and almost colliding with other motorists on the road, the plea agreement states.
Pilgrim’s vehicle went off the road near the Vandenberg Air Force Base visitor center, and he attempted to flee on foot, but he was quickly apprehended. Law enforcement recovered $552 from Pilgrim’s car and $1,700 from his pockets that were proceeds of his robbery of Coast Hills Credit Union two days earlier.
United States District Judge Percy Anderson has scheduled a June 21 sentencing hearing, at which time Pilgrim will face a statutory maximum sentence of 20 years in federal prison.
The FBI, the Lompoc Police Department, the Guadalupe Police Department, and the Santa Barbara County Sheriff’s Office investigated this matter.
Assistant United States Attorney Lynda Lao of the General Crimes Section is prosecuting this case.
Colorado Physician Charged for Misappropriating Thousands from Three Different COVID Relief ProgramsRead the Press Release
An indictment was unsealed Wednesday in Denver charging a Colorado man with stealing nearly $300,000 in government funds from three different COVID relief programs and with making false statements in connection with bankruptcy proceedings.
According to court documents, Francis F. Joseph, 56, of Highlands Ranch, allegedly transferred approximately $118,000 in COVID relief funding from a medical clinic’s account into his personal bank account, after which he spent the money on, among other things, travel and home improvements. The stolen funds came from two programs that were designed to aid medical providers during the COVID-19 pandemic — the Accelerated and Advance Payment Program and the Provider Relief Fund.
The Accelerated and Advance Payment Program provides necessary funds in national emergencies in order to accelerate cash flow to impacted Medicare providers. The Provider Relief Fund, through which $50 billion was allocated to providers for the coronavirus response, was part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted March 29, 2020 and designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic.
Today’s indictment constitutes the nation’s second set of criminal charges related to the misuse of Provider Relief Fund moneys and the first time that charges have been brought in connection with fraud on the Accelerated and Advance Payment Program.
The indictment further alleges that following his termination from the clinic, Joseph applied for a $179,999 loan under the Paycheck Protection Program (PPP) on behalf of the medical practice, which he then directed into his personal bank account. Finally, the indictment alleges that Joseph filed for bankruptcy on behalf of (but unbeknownst to) the clinic following his termination and submitted documents containing materially false statements regarding his misappropriation of funds from the clinic in connection with that proceeding.
In April 2020, Congress authorized over $300 billion in additional PPP funding through the CARES Act. The PPP allows qualifying small business and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
Joseph is charged with theft in connection with health care, theft of government property, wire fraud, and making a false statement in connection with a bankruptcy proceeding. Joseph is scheduled to make his initial court appearance on May 25 before U.S. Magistrate Judge S. Kato Crews of the U.S. District Court for the District of Colorado. If convicted, he faces maximum penalties of 10 years in prison for each theft count, 20 years for wire fraud, and five years for the bankruptcy proceeding false statement. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Special Agent in Charge Curt Muller of the U.S. Department of Health and Human Services’ Office of Inspector General’s (HHS-OIG) Kansas City Region; and Special Agent in Charge Weston King of the U.S. Small Business Administration’s Office of Inspector General’s (SBA-OIG) Western Region made the announcement.
Trial Attorney Emily Gurskis of the Justice Department’s Fraud Section is prosecuting the case.
This case was brought in coordination with the Health Care Fraud Unit’s COVID-19 Interagency Working Group, which organizes efforts to address illegal activity involving health care programs during the pandemic. The Department of Justice also thanks the U.S. Attorney’s Office for the District of Colorado and the Colorado State Medicaid Fraud Control Unit for assistance they provided.
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 Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Cocoa Man Sentenced to 50 Years in Federal Prison for Using an 11-Year-Old Child to Produce Sex Abuse VideosRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Edgar John Dawson, Jr. (47, Cocoa) to 50 years in federal prison for five counts of using a minor child to produce sexual abuse videos and two counts of distributing child sex abuse images over the internet. Dawson was also ordered to register as a sex offender and to forfeit his phone. He has been in custody since his arrest on May 7, 2020.
Dawson had pleaded guilty to the distribution counts on November 17, 2020. He was subsequently found guilty of the production offenses on December 8, 2020, following a bench trial.
According to court documents, on five different occasions in March 2020 and May 2020, Dawson produced videos of himself using an 11-year-old child to engage in sexually explicit conduct. He then distributed these videos to others in internet chat rooms where persons with a sexual interest in children are known to gather. Dawson also shared images depicting the sexual abuse of numerous young children through an online messaging application in order to obtain similar images in return.
This case was investigated by the Federal Bureau of Investigation (Orlando and Jacksonville), the Metropolitan Police Department (Washington D.C.), and the Cocoa Police Department. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.
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 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 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.
Charlotte Man Is Sentenced to 16 Years in Prison for the Armed Robbery of A Dollar General StoreRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Kenneth D. Bell ordered Ishmeel Qyshawn Chapman, 20, of Charlotte, to serve 16 years in prison and three years of supervised release, on charges stemming from the April 2020 armed robbery of a Dollar General 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 (CMPD) join Acting U.S. Attorney Stetzer in making today’s announcement.
According to court documents and today’s sentencing hearing, on April 23, 2020, Chapman and another individual entered the Dollar General store located at 8825 WT Harris Boulevard in Charlotte. Upon entering, Chapman’s accomplice pointed a firearm at customers and a store employee, while Chapman grabbed a customer by the arms and forced him to the cash register counter. Court records show that the store employee complied with the robbers’ demands and opened the store’s first cash register, and Chapman’s accomplice began taking money out of it. While the employee was attempting to open the second cash register, Chapman struck the employee on the right side of her head, knocking her to the ground. Court records indicate that Chapman then took the firearm from his accomplice and pointed it at several customers, which included a one-year old child, and ordered the customers to hand over their purses and wallets.
According to court records, Chapman and his accomplice stole $510 from the cash register and fled the scene. As he was leaving the store, Chapman pointed a firearm at a customer and then struck the customer on the shoulder with the gun. CMPD officers alerted to the robbery located Chapman’s getaway vehicle and Chapman was arrested shortly thereafter. At the time of Chapman’s arrest, law enforcement also located the firearm used during the store robbery.
On December 1, 2020, Chapman pleaded guilty to robbery of a business affecting interstate commerce, or “Hobbs Act” robbery, and possession and brandishing a firearm during, in relation to, and in furtherance of a crime of violence.
Chapman is currently in federal custody in the Western District of North Carolina and will be transferred into the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the FBI and CMPD for their investigation of this case.
The prosecution for the government was handled by Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Charlotte.
Charleston Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Corey Allen Tucker, 25, of Charleston, pleaded guilty today to being a felon in possession of a firearm. A federal grand jury indicted Tucker in September 2020.
According to court documents and statements made in court, Tucker got into an altercation and shot an individual in South Charleston on January 7, 2019. Later that day, investigators with the Kanawha County Sheriff’s Department located Tucker in a South Charleston residence and found a 9mm pistol magazine loaded with unfired cartridges in his jacket pocket. Law enforcement officers searched the residence and found two firearms, including a Taurus Millennium G2 9mm pistol, buried in a cat litter box. Some of the ammunition loaded in that firearm was the same brand and type of shell casing located at the scene of the shooting. The magazine found in Tucker’s jacket pocket also fit the firearm. Tucker admitted to law enforcement that he shot the victim. Tucker was prohibited from possessing firearms by virtue of a 2016 conviction in South Carolina for assault and battery in the first degree.
Tucker faces up to ten years in prison when sentenced on July 22, 2021.
The Kanawha County Sheriff’s Department conducted the investigation and received assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorneys Julie White and Greg McVey are handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00162.
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Champaign County Man Sentenced to Two Years in Prison for Bank Fraud ConspiracyRead the Press Release
PEORIA, Ill. – David Litman, 41, of the village of Foosland, Ill., has been ordered to report to federal prison on May 18, 2021, to begin serving a two-year sentence for conspiracy to commit bank fraud and bank fraud in connection with a real estate short-sale scheme. Following the March 10, 2021, sentencing, U.S. District Judge James E. Shadid further ordered Litman to pay $279,900 in restitution and to serve two years on supervised release upon completion of his prison term.
On Dec. 17, 2019, Litman pleaded guilty to conspiring with others, between 2008 and 2010, to defraud lending institutions in a series of short-sale transactions. Specifically, Litman caused false broker price opinions undervaluing residential properties to be submitted to financial institutions holding the mortgages of the properties, which he intended to purchase via a short sale. Litman submitted additional false documents to the financial institutions to induce them to approve requested short sales, including falsified listing agreements and proof-of-funds letters. The financial institutions, relying on the false broker price opinions, false real estate commission expenses, false listing agreements, and other false documentation, approved short sales of properties to Litman for payments that were less than they otherwise would have been likely to receive.
In addition, Litman caused the recording of false expenses, including false real estate commissions, on HUD-1 settlement statements documenting the short sales into which he entered. Litman also attempted to conceal certain of these false real estate commission expenses through the late issuance of commission checks.
“The defendant’s repeated acts of fraud over several years caused lending institutions to lose a significant amount of money,” stated Acting U.S. Attorney Doug Quivey. “The defendant’s participation in the scheme thwarted the lenders’ ability to accurately value the homes involved and prevented them from recouping a greater portion of their losses on the homeowners’ mortgages. Fraud in any part of the mortgage industry ultimately costs both lenders and borrowers and can’t be tolerated.”
Assistant U.S. Attorneys Katherine V. Boyle and Eugene L. Miller represented the government in the prosecution. The charges were investigated by the Department of Housing and Urban Development’s Office of the Inspector General and the Federal Bureau of Investigation.
CARES Act Fraud Investigations Identify Twenty-Three Individuals Targeting Thirty-One Million DollarsRead the Press Release
PROVIDENCE – The United States Attorney’s Office, the Office of the Rhode Island Attorney General, the Federal Bureau of Investigation, and the Rhode Island State Police today publicly updated information on criminal investigations and prosecutions of individuals who are alleged to have targeted and defrauded federally funded programs created to assist businesses and individuals impacted by the COVID-19 pandemic, including the Paycheck Protection Program and Unemployment Insurance Program.
Since the enactment of the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020, a team of federal and state law enforcement personnel led by the Rhode Island State Police and the FBI, along with federal and state prosecutors, have worked together to identify, investigate, charge, and prosecute individuals who knowingly defrauded or attempted to defraud federally funded programs that provide emergency COVID-19 financial assistance to Rhode Islanders and others.
To date, federal charges have been brought against 23 individuals, including 15 this week, for fraudulently applying for aid from CARES Act funded programs. Investigators have identified more than $31 million dollars allegedly targeted by these fraudsters.
This week, 15
Defendants were charged by way of federal criminal complaints in U.S. District Court with wire fraud and money laundering, according to documents being unsealed today by the court. It is alleged that each defendant filed multiple claims for unemployment compensation in Rhode Island and in other states. Cumulatively, these defendants allegedly filed fraudulent unemployment claims in eleven states totaling $578,571. Of that, investigators and prosecutors have identified approximately $126,000 worth of fraudulent claims allegedly filed by these defendants with the Rhode Island Department of Labor and Training.“It’s disgraceful that anyone would attempt to fraudulently obtain CARES Act funds intended for hard working Americans during the current health crisis, and we are committed to vigorously pursuing the criminals who commit this fraud,” said Acting United States Attorney Richard B. Myrus. “Our team of agents and prosecutors has the reach, coordination, and expertise necessary for effective enforcement efforts against the scourge of COVID-19 relief fraud, and our investigations are far from over.”
“We are all aware that there are individuals who have taken advantage of the pandemic to advance their own financial interests,” said Attorney General Peter F. Neronha. “This broad, ongoing investigation, including the cases charged so far, involves precisely that type of activity. There are various aspects to this probe and varying kinds of schemes, but they all come down to this: as alleged, these defendants and others like them are fraudulently lining their own pockets at the expense of other Rhode Islanders and Americans at the most inopportune time.”
“What these individuals are accused of doing is selfish and despicable. They cashed in on a public health crisis by targeting nearly $31 million in federal funds that were meant to be a lifeline for tens of thousands of Rhode Islanders, and other Americans who are struggling to feed their families and keep their businesses afloat. It is critical that every dollar spent goes to those who need it, not to greedy con artists trying to cheat the system,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Those who blatantly steal taxpayer dollars by defrauding government programs during a national emergency will soon find themselves in federal court to answer for their crimes.”
“This federal money was earmarked for both business owners and individuals who were facing serious economic hardship as a result of COVID-19. The State Police, working closely with the FBI, US Attorney and RI Attorney General made it a priority to identify those individuals who felt emboldened to take advantage of a crisis affecting our entire nation,” said Colonel James M. Manni, Superintendent of the Rhode Island State Police.”
In addition to the 15 defendants charged this week, the United States Attorney’s Office in Rhode Island, working closely with its federal and state law enforcement partners, has charged the following cases in U.S. District Court in Providence:
- In May 2020, five weeks after the CARES Act was enacted by Congress, this office filed the first federal prosecution in the country alleging CARES Act fraud. In that case, it is alleged that two businessmen sought more than a half-million dollars in forgivable loans in Rhode Island, guaranteed by the Small Business Administration (CARES) Act.
- In September 2020, a Middletown businessman was charged with fraudulently seeking $4.7 million dollars in Paycheck Protection Program loans. The businessman, who has pleaded guilty, is awaiting sentencing.
- In October 2020, five individuals in Florida were charged in federal court in Rhode Island and arrested for allegedly engaging in identity theft and using stolen identities to open multiple bank accounts and to file a significant number of fraudulent unemployment insurance claims to the Rhode Island Department of Labor and Training, and elsewhere. In that case, more than $1.1 million dollars in cash, several hundred debit cards in the names of individuals whose identities were allegedly stolen, a large collection of high-end jewelry, and eight firearms were seized.
According to court documents, the fraud perpetrated by these defendants is significant. A preliminary review of nationwide unemployment data shows that IP addresses used by one of the defendants was used to file approximately 5,291 claims in 37 states, including Rhode Island, totaling $25 million dollars.
The team of federal, state, and local law enforcement agents and officers continue to investigate several other known subjects suspected of committing CARES Act fraud, and are committed to identify other individuals and groups it can be determined are committing CARES Act fraud.
Acting United States Attorney Myrus acknowledges the FBI, Rhode Island State Police, United States Department of Labor – Office of Inspector General, Small Business Administration, United States Postal Inspection Service, Internal Revenue Service Criminal Investigation, United States Secret Service, Social Security Administration – Office of Inspector General, Homeland Security Investigations, and the Providence Police Department for their investigative work resulting in the latest arrests.
Acting United States Attorney Myrus thanks the Lincoln, East Providence, North Providence, Warwick, Cranston and Newport Police Departments for their added support.
Cases charged to date are being prosecuted in U.S. District Court by Assistant United States Attorneys Denise M. Barton, Stacey P. Veroni, and Lee H. Vilker, and Rhode Island Assistant Attorney General John Moreira, cross-designated as a Special Assistant United States Attorney.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
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Boston Man Pleads Guilty to Investment Fraud SchemeRead the Press Release
BOSTON – The owner of several Boston-based investment companies pleaded guilty today in federal court in Boston to operating a Ponzi-like fraud scheme.
Tanmaya Kabra, 27, pleaded guilty to four counts of wire fraud. U.S. District Court Judge Denise J. Casper scheduled sentencing for Aug. 30, 2021.
Kabra conducted business through a company called LaunchByte.io LLC and several affiliated entities. He held himself out to investors as a successful serial entrepreneur, venture capitalist and angel investor in start-up companies. Offering lucrative and low or no-risk returns on investments, Kabra lured investors with representations that their funds would be used to foster the growth and development of start-up companies, in order to prepare those companies for sale or for other legitimate business opportunities. In reality, Kabra used the money that he received from investors to pay off existing debts to prior investors in his scheme and to fund his lavish personal expenses, including using more than $200,000 of fraudulently obtained funds to purchase a power boat.
As part of his plea agreement, Mr. Kabra admitted to victimizing more than 10 individuals who suffered more than $1.5 million in losses as a result of the scheme.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The Securities & Exchange Commission provided valuable assistance in this investigation. Assistant U.S. Attorneys Christopher Looney and James B. Herbert of Mendell’s Criminal Division are prosecuting the case.
Blair Woman Sentenced for Conspiracy to Distribute Methamphetamine and Use of a Firearm in Relation to a Drug Trafficking CrimeRead the Press Release
Acting United States Attorney Jan Sharp announced that Morgan C. Brown, 25, of Blair, Nebraska, was sentenced on April 7, 2021, in federal court in Omaha, Nebraska, for conspiracy to distribute 50 grams or more of actual methamphetamine, and for using a firearm during and in relation to a drug trafficking crime. United States District Judge Brian C. Buescher sentenced Brown to 200 months of imprisonment for the conspiracy and a consecutive 60 months of imprisonment for the use of the firearm during and in relation to that conspiracy. There is no parole in the federal system. Brown was also sentenced to a 5-year term of supervised release on the conspiracy conviction and a 2-year term of supervised release on the firearm conviction to run concurrently.
On June 5, 2019, Brown was searched pursuant to a probation condition from a prior drug-possession conviction, and law enforcement found her in possession of over $8,000 in United States currency, a gun, drug paraphernalia, and a digital scale. On August 16, 2019, law enforcement stopped Brown’s vehicle near Lincoln, Nebraska, and found in the vehicle drug paraphernalia, a digital scale, and a package containing more than 250 grams of methamphetamine. In total, Brown was involved in the trafficking of at least 50 pounds of methamphetamine from July 2018 until August 2019. Over the course of the investigation, law enforcement seized more than $30,000 from Brown as the proceeds of drug distribution.
This case was investigated by the Omaha Police Department and Lincoln/Lancaster County Narcotics Task Force.
Bank Employee Arrested for Defrauding Her Employer of $1.7 MillionRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a criminal complaint charging GANGADAI RAMPERSAUD AZIM, a/k/a “Julie Azim,” with wire fraud, bank fraud, bank theft, money laundering, and conspiracy, for her role in a scheme to defraud her employer, a Manhattan-based bank, of approximately $1.7 million. AZIM was arrested today and presented before United States Magistrate Judge Stewart D. Aaron this afternoon.
U.S. Attorney Audrey Strauss said: “As alleged, Gangadai Azim betrayed her position as a trusted bank employee to defraud the bank and misappropriate client funds for more than a dozen years. She allegedly stole more than $1.7 million and concealed the scheme until an absence from work led to its discovery. Now Azim faces the prospect of a much longer absence from work.”
FBI Assistant Director William F. Sweeney Jr. said: “Azim’s alleged $1.7 million fraud scheme not only victimized her employer, but also risked the financial standing of the customers whose accounts she manipulated. In the long run, defrauding a financial institution with the hope of making an easy profit only resulted in federal charges and the potential for time behind bars.”
According to the allegations in the Complaint[1] unsealed today in Manhattan federal court:
Between August 2008 and January 2021, AZIM, a long-time employee of a New York, New York-based bank (“Bank-1”) stole approximately $1.7 million from her employer. Over the course of approximately 12 years, AZIM executed hundreds of wire transfers of Bank-1 funds to co-conspirators and related companies, who then sent portions of the ill-gotten funds to AZIM’s personal bank account.
In furtherance of her scheme to defraud Bank-1, AZIM repeatedly made false entries in Bank-1’s systems, misappropriating funds paid to Bank-1 by its clients to satisfy outstanding loan obligations and then extending the maturity dates of those loan obligations, making it appear as though the loan obligations had not yet been paid. When even the fraudulently extended maturity dates came due, AZIM originated new, fraudulent loans. AZIM utilized the proceeds of those fraudulent loans to satisfy the loans for which she had previously stolen the client payments. In doing so, AZIM abused her position at Bank-1 and enriched herself at the expense of her employer.
AZIM’s fraud was discovered by Bank-1 when AZIM took a leave from her position at Bank-1 as a result of illness earlier this year. In January 2021, Bank-1 debited the account of a client of Bank-1 (“Client-1”) in order to pay off an outstanding loan obligation Client-1 had coming due. Client-1 then alerted Bank-1 that the debit was improper, as Client-1 had, in fact, paid off that obligation in 2019. Upon further investigation, Bank-1 discovered that while the funds had been withdrawn from Client-1’s account in or about 2019, AZIM had misappropriated those funds, using them for purposes other than satisfying Client-1’s obligation.
As a result of identifying this discrepancy, Bank-1 officials discovered approximately 14 loan obligations (the “Fraudulent Loan Obligations”), worth more than approximately $1 million, for which no underlying documents existed. AZIM appears to have entered each of the Fraudulent Loan Obligations in Bank-1’s systems so that the proceeds could be used, in significant part, to pay off outstanding loan obligations coming to maturity; those loan obligations had, in fact, already been satisfied by clients, but AZIM had misappropriated the payments. In addition, Bank-1 officials discovered approximately five outstanding loan obligations, worth more than approximately $706,000, for which AZIM appears to have extended the maturity dates, despite the relevant clients having paid off the loan obligations.
The approximately $1.7 million of loan proceeds resulting from the Fraudulent Loan Obligations and the improperly extended maturity dates appear to have been misappropriated by AZIM. Over the course of approximately 12 years, between 2008 and 2020, AZIM caused approximately 200 wire transfers of Bank-1’s funds, each for an amount under $10,000, to be sent to third party accounts, including those of co-conspirators and related companies, which then returned portions of those funds to AZIM.
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AZIM, 58, of Richmond Hill, New York, is charged in the Complaint with (1) conspiring to commit wire fraud and bank fraud, which carries a maximum sentence of 30 years in prison; (2) bank fraud, which carries a maximum sentence of 30 years in prison ; (3) wire fraud, which carries a maximum sentence of 20 years in prison; (4) bank theft, embezzlement, or misapplication, which carries a maximum sentence of 30 years in prison; (5) conspiring to commit money laundering, which carries a maximum sentence of 20 years in prison; and (6) money laundering, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the FBI in this case.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Katherine Reilly is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Baltimore Police Department Officer Facing Federal Indictment for Stealing Approximately $10,000 from Funds Seized in Execution of Search Warrant, and Then Making False Statements to FBI InvestigatorsRead the Press Release
Baltimore, Maryland – A federal grand jury today returned an indictment today charging Ethan Glover, age 49, of Baltimore, Maryland, for the federal charges of false statements to law enforcement and theft of government property. Glover joined the Baltimore Police Department (BPD) on February 19, 2003. He became a federal task force officer (TFO) with the Drug Enforcement Administration in 2013.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to the two-count indictment, on April 8, 2016 Glover participated in the execution of a search warrant on John Avenue as a member of DEA Group 51. Law enforcement recovered three duffel bags containing large amounts of cash and a handwritten document with currency totals stating there was $2,428,900 in the house. Glover transported the cash from the residence to another location where a search warrant had been executed, and then to the DEA Baltimore Office, alone in his vehicle the entire time. The indictment alleges that during the drive from John Avenue to the DEA Baltimore Office, Glover stole a portion of the cash seized at the John Avenue residence. Ultimately, Glover took the seized cash to a professional counting service due to the large amount. The counting service found that the amount of cash seized, inclusive of any suspected counterfeit bills, totaled $2,419,125, which is $9,775 less than what was actually seized at the John Avenue residence, according to the handwritten document recovered within the home.
The indictment further alleges that Glover went to his then-girlfriend’s apartment with what he described to her as $10,000 in cash. Glover allegedly hid the funds in her bathroom. During conversations about the money, Glover told his girlfriend that he was followed by another TFO while driving the cash from the search warrant site and that the money came from a “big case” that had been recently featured on the news. Approximately one week later, Glover allegedly moved the money from his girlfriend’s apartment to his home.
On April 23, 2016, Glover allegedly used some of the cash stolen from the John Avenue search to buy his then-girlfriend a pair of shoes valued at $295 from a mall in Pennsylvania. According to the indictment, in June 2016, his then-girlfriend moved into his home and saw a large sum of money hidden behind Glover’s refrigerator.
As detailed in the indictment, on February 28, 2020, Glover participated in a voluntary interview with the FBI about a seizure that had occurred with the officer-in-charge of BPD’s Gun Trace Task Force. Before being questioned, Glover confirmed that he understood that it was a crime to lie to the FBI TFO’s interviewing him. When questioned, Glover asked the interviewing TFO’s how much the arrestee “is saying is missing? Is it money or drugs? How much did he say he had? A million?” or words to that effect. Glover told investigators that he did not witness any officer steal money during this seizure. Glover also stated that he did not steal money from this particular seizure or any other case, saying, “I’ve never stolen anything in my life. Never money or drugs.”
If convicted, Glover faces a maximum sentence of 10 years in federal prison for theft of government property and five years in federal prison for making false statements to federal law enforcement. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. No court appearance is currently scheduled for Glover.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the FBI and BPD for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Leo J. Wise and Christine Goo, who are prosecuting this case.
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Australian Citizen Arrested for Visa FraudRead the Press Release
ALBANY, NEW YORK – Paul J. Carter, also known as Paul Hamilton, and formerly known as Paul J. Cristallo, was arrested yesterday for making false statements on a visa application.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Kevin Kelly, Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo Field Office.
Carter, age 55, an Australian citizen residing in Watervliet, New York, is accused of lying about whether he used other names, as well as his criminal history, when he applied for a U.S. visa in 2018. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty
Carter appeared in court yesterday before United States Magistrate Judge Daniel J. Stewart, and was ordered detained pending a detention hearing scheduled for tomorrow, April 9.
If convicted, Carter faces up to 10 years in prison, as well as a maximum $250,000 fine. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by HSI, with assistance from the U.S. Department of State Diplomatic Security Service, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Ashland man admits assaulting person with rifle on Northern Cheyenne Indian ReservationRead the Press Release
BILLINGS — An Ashland man accused of hitting another man in the head with a rifle pleaded guilty to an assault charge today, Acting U.S. Attorney Leif Johnson said.
Channing Lee Ziler, 33, pleaded guilty to assault resulting in serious bodily injury. Ziler faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. Ziler was detained pending further proceedings. A sentencing date is pending.
In court documents filed in the case, the government alleged that on Dec. 31, 2017, Bureau of Indian Affairs law enforcement officers responded to a 911 call at a residence in Ashland, on the Northern Cheyenne Indian Reservation. Multiple people were drinking at the residence, including Ziler. Witnesses described Ziler as being violent that night. The victim, identified as John Doe, arrived at the residence with other individuals. Witnesses described Ziler as holding a rifle when Doe arrived and saying, “this looks like someone I can slap around.” Ziler then struck Doe in the head with the rifle.
Ziler took Doe’s truck and left with Doe and another person. Law enforcement received another 911 call that the truck had run out of gas and that Ziler had set it on fire to stay warm in below zero temperatures. Ziler left the scene with the other individual, and law enforcement found Doe by the truck. Doe was taken to a Billings hospital for treatment of injuries.
Assistant U.S. Attorney Bryan Dake is prosecuting the case, which was investigated by the FBI.
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Anchorage Man Sentenced to Nine Years in Federal Prison for Using Craigslist to Setup Armed RobberiesRead the Press Release
ANCHORAGE – An Anchorage man was sentenced to nine years in prison followed by three years of supervised release for possession of a firearm during two separate armed robberies of Craigslist sellers.
According to court records, on August 24, 2019, Cloyd Lacap Jr., 22, robbed two individuals at gun point after arranging to meet them for the supposed purpose of purchasing items each had listed for sale online.
The first robbery took place in the parking lot of Balto Seppala Park in Anchorage where Lacap had arranged to meet the seller of a PlayStation gaming console. When the seller opened his trunk at the park to show the gaming console, Lacap pulled out a handgun, racked the slide and took the gaming console before leaving the park on foot.
Later the same day, Lacap arranged to meet the seller of an iPhone in the parking lot of a restaurant in Anchorage’s Turnagain neighborhood. After arriving in an unidentified car, Lacap got in the back seat of the seller’s vehicle. When the seller showed him the smartphone, Lacap pointed a handgun at the victim, grabbed the phone and then exited the victim’s vehicle. Lacap left in the same vehicle that he arrived in.
Lacap was indicted by a federal grand jury in January 2020 and later pleaded guilty to one count of possessing a firearm during a crime of violence. He has been detained without bail on his federal case since January 24, 2020.
Prior to pleading guilty in this case, Lacap pleaded guilty in State of Alaska Superior Court case 3AN-19-05391CR to assault in the first degree and misconduct involving weapons in the first degree as part of a global plea agreement. Lacap’s guilty pleas in the state case were for his role in a May 2019 armed robbery in Anchorage. That case was prosecuted by Assistant District Attorney Saritha Anjilvel.
Acting U.S. Attorney Bryan Wilson for the District of Alaska; Special Agent-in-Charge Jonathan T. McPherson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and Chief Justin Doll of the Anchorage Police Department made the announcement.
Assistant U.S. Attorney Allison O’Leary prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
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Note to editors:
From our partners with the Anchorage Police Department, here are some precautions to take when making purchases online:
- Never go to the meet alone. Have at least one other person with you. Make sure another individual, who is not with you, knows where you are, what you are doing, and any details you have about the other party you are meeting.
- Meet in a public place that has cameras and a lot of foot traffic such as a superstore parking lot.
- Meet during a busy time of day – not late at night or early in the morning when there are not many other people around.
- If the party you are meeting arrives in a vehicle, jot down the license plate and a description of the vehicle.
- Pay attention to the physical attributes of the people you are meeting with in case you need to give a detailed description of them to the police later.
- Only deal in cash. Checks and cashier checks can easily be forged. Pay attention to the money you accept. Make sure it looks and feels the way money should.
- Should you be threatened, follow the instructions of the suspect(s), leave the area as soon as possible, and call 9-1-1 as quickly as you can.
Alabama Woman Pleads Guilty to Bank FraudRead the Press Release
Jackson, Miss. – Tanya Henry Shelby, 40, of Pelham, Alabama, pled guilty yesterday before U.S. District Judge Kristi H. Johnson to bank fraud, announced Acting United States Attorney Darren J. LaMarca and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
From November 2015 through April 2016, Shelby owned a car dealership named Tanya Shelby Auto Sales dba Payless Car Sales, in Hinds County, Mississippi. As part of the scheme to defraud, Shelby opened personal and business accounts at the Mississippi National Guard Federal Credit Union and Citizens National Bank. She further negotiated and executed checks that were drawn on the accounts at Mississippi National Federal Credit Union and Citizens National Bank when she knew that the accounts had insufficient funds. As part of the scheme to defraud, Shelby negotiated and deposited checks with insufficient funds at the financial institutions that resulted in the institutions showing inflated balances on her accounts that caused the checks to be honored rather than be returned unpaid.
Additionally, Shelby opened and used lines of credit at NextGear Capital and Citizens National Bank to secure credit for the same three vehicles at each financial institution, knowing that payments would not be made on any of the lines of credit.
On December 2, 2020, Shelby was charged with bank fraud in a single count Information. She will be sentenced by Judge Johnson on July 13, 2021, at 1:30 p.m. and faces a maximum penalty of 30 years in prison and a $1,000,000 fine.
The case was investigation by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Erin Chalk.
Acting U.S. Attorney Williams and 15+ Philadelphia-Area Federal Agency Directors Issue Letter to Citizens Announcing Initiative to Combat City’s Gun Violence EpidemicRead the Press Release
PHILADELPHIA – During a press conference held on Independence Mall this morning, Acting United States Attorney Jennifer Arbittier Williams was joined by senior officials from more than 15 federal agencies operating in the Philadelphia area to announce their collective effort to combat the raging epidemic of violence in the city and support the work of the Philadelphia Police Department, which was represented at the event by Commissioner Danielle Outlaw. In a letter addressed to the citizens of the Eastern District of Pennsylvania, federal leaders pledged an “All Hands On Deck” effort from their respective agencies to identify, investigate and hold responsible perpetrators of violent crime.
“The violence in Philadelphia affects all of us, not just residents of the city – millions of people travel in and out for work, school, medical care and more. The mission of the federal agencies gathered here today is to keep our entire District safe in partnership with local authorities,” said Acting U.S. Attorney Williams. “That is why we are here today: to announce that together, we are ‘All Hands On Deck’ to stop the violence and support the Philadelphia Police Department in their work. Violent criminals should be on notice that we are re-doubling our efforts and we are coming for you. We have had enough.”
“Our citizens, our children, and even our officers are being victimized as a result of the continued violence in the city. Enough is enough. The PPD and our federal partners recognize the gravity of the challenges that we face. We must continue to work together—citizens, police, and stakeholders - in order to make headway against the scourge of gun violence. We truly are in support of and need ‘All Hands On Deck’,” stated Commissioner Danielle Outlaw.
The text of the letter to the citizens is as follows. The entire letter is available on the USAO-EDPA website.
To the Citizens of the Eastern District of Pennsylvania:
The current violence in Philadelphia affects all of us. Over 1.5 million people live in the City, and millions more travel into the City for work or school, to receive medical care, and to enjoy the City’s parks and cultural attractions. The impact of the ongoing violence is felt in Philadelphia as well as far beyond the City’s limits.
As federal law enforcement, our mission is to keep our entire District safe, and the current state of affairs puts the safety and well-being of everyone in the Eastern District of Pennsylvania at risk. Murders and shootings in Philadelphia continue to rise at an alarming pace. In 2020, 499 people were murdered—a 40% increase from the 356 homicides that occurred in 2019. And in 2021, we are on pace to surpass 600 murders, a horrifying milestone. Importantly, these numbers do not tell the whole story because they do not include the victims of violence who were lucky enough to survive, nor do they address the harm caused to Philadelphia’s commerce and spirit as people find themselves afraid to venture outside after dark.
These statistics are grim. We cannot allow violent criminals to hold Philadelphia hostage.
That is why we, the undersigned leaders of federal law enforcement agencies, have come together to deliver this message: We are outraged and have had enough.
Many of the federal agencies below investigate violent crime as part of their mission. But even those that do not have joined this letter to show their commitment to the cause. We are joining together, like never before, to use every tool at our disposal to find and arrest the most dangerous criminals. From obtaining search warrants, to reviewing cell phone records and ballistics evidence, to mobilizing our network of sources, we are sharing information and working every angle—standing shoulder to shoulder with Philadelphia police—to do all that we can to reverse this trend. And when we find those who are committing violence, we will prosecute them and obtain stiff sentences when they are convicted.
We know what the City needs: it needs All Hands On Deck to stop the violence. And that is what we are committed to provide.
Abatement Company Owner Pleads Guilty to Illegally Removing AsbestosRead the Press Release
A New York woman pleaded guilty today to illegally removing and disposing of asbestos.
According to court documents, between 2015 and 2016, Stephanie Laskin, 45, of Newburgh, along with several others, conspired to illegally remove asbestos from a former IBM site in Kingston, now known as TechCity. The facility in question contained over 400,000 square feet of regulated asbestos-containing material (RACM), as well as an additional 6,000 linear feet of RACM pipe wrap.
Laskin, the owner of A2 Environmental Services (A2ES), who had special asbestos abatement training, hired numerous workers and supervisors to conduct the asbestos removal. She and her co-conspirators pressured these workers to expedite the removal of asbestos at the site to meet contract deadlines. In doing so, she led them to cut corners, violate their remediation training, and handle RACM in dangerous and illegal ways.
At times, she and other A2ES supervisors, including Gunay Yakup who pleaded guilty in March, instructed workers to remove RACM dry. Wetting is required by law and helps to prevent airborne asbestos fibers. When the workers questioned her, Laskin gave them the choice of following her directions or losing their jobs. This resulted in numerous violations of the Clean Air Act’s “work practice standards,” which address how asbestos can be stripped, bagged, removed, and disposed of with relative safety. Laskin is scheduled to be sentenced on July 27 and faces a maximum penalty of five years in prison.
“Defendant Laskin went into this project with her eyes open, planning to do it on the cheap,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division (ENRD). “But, that meant doing this project in knowing violation of the law and her supervisor training, placing others at risk of inhaling asbestos fibers. This criminal prosecution holds her accountable.”
Laskin admitted that she and her supervisors, workers, and other co-conspirators removed substantial amounts of RACM from the site in violation of the work-practice standards and were issued numerous notices of violation (NOVs) associated with dry removal, storing bulk quantities of RACM waste on-site in open containers, failing to properly contain work areas to avoid discharges of RACM to the outside air, sweeping dry RACM in ways that produced visible emissions, and conducting work outside containment and other dry removal abatement techniques. In light of the repeated violations, New York State Department of Labor (NYSDOL) inspectors issued “red tags” for the site on Aug.1, 2016, which stopped all work and ended Laskin’s company’s illegal abatement efforts.
The site was later deemed to be contaminated by the Environmental Protection Agency (EPA) and municipal authorities. Cleanup costs associated with asbestos contamination at the site are estimated to be in the millions. Asbestos has been determined to cause lung cancer, asbestosis, and mesothelioma, an invariably fatal disease. The EPA has determined that there is no safe level of exposure to asbestos.
Special agents of the EPA and individuals from the New York Departments of Labor and Environmental Conservation investigated the case. Todd W. Gleason and Gary N. Donner of ENRD’s Environmental Crimes Section prosecuted the case with the assistance of paralegal Chloe Harris.
3 Family Members Sentenced for Health Care Fraud Schemes Targeting VeteransRead the Press Release
PITTSBURGH – Brothers Mehran David Kohanbash and Joseph Kohan, and their nephew, Nima Rodefshalom, have been sentenced for their roles in an elaborate fraud scheme that stole millions of dollars from health care systems across the United States.
United States District Judge Susan Paradise Baxter on Wednesday sentenced Nima Rodefshalom, 38, of Los Angeles, CA to 54 months’ imprisonment and today sentenced David Kohanbash, 53, of Beverly Hills, CA to 54 months’ imprisonment and Joseph Kohan, 62, of Encino, CA to 42 months’ imprisonment. The defendants pleaded guilty in December 2020 to charges of healthcare fraud, conspiracy to commit fraud, and conspiracy to violate the federal anti-kickback statutes. Additionally, 16 corporate entities (pharmacies) pled guilty to charges of healthcare fraud, conspiracy to commit fraud, and/or conspiracy to violate the federal anti-kickback statutes. Sentencing for the defendant pharmacies has not yet been scheduled. The defendants have already paid more than $60 million to the government as part of forfeiture and a civil settlement. As part of the sentence the Court ordered $54.5 million in restitution to compensate the health insurance companies that were defrauded, including the military health insurance entity, TRICARE.
According to the information presented to the Court at the time of the pleas the three defendants conspired together to execute health care fraud schemes that targeted patients that had undergone, or were to undergo, bariatric surgical procedures. The individual defendants together with the defendant pharmacies engaged in a series of interconnected actions that resulted in misleading advertising associated with supplying what were described to the Court as nutritional shakes; the inducement to enlist various patients in ordering the nutritional shakes resulted in the defendants and the pharmacies securing the patients’ insurance information which in turn resulted in the defendants (individual defendants and by and through the pharmacies) soliciting the patients to appeal to their respective physicians to prescribe what were described for the Court as High Yield (expensive) medications.
These medications were often compounded, meaning that one or more of the pharmacies mixed together preexisting medications or substances to provide a new or different product. It was a part of the scheme(s) involved in the guilty pleas that the defendants conspired to promote these medications that often yielded extremely high profits. It was a part of the healthcare fraud scheme that the defendants defrauded healthcare benefit programs, both private insurance carriers and the government run health care program, TRICARE, for military members and their families, by manipulating the
collection of co pays on various medications to make it appear that co pays were being collected when in fact they were not. An honest reporting of the failure to collect co pays would have resulted in the defendants being unable to bill insurance carriers for the cost of the various medications. The various schemes in which the defendants were involved were overlapping and ran from September of 2013 through May of 2018.
"Identifying and prosecuting individuals who exploit health care benefit programs for personal enrichment is a priority of our office," said Acting United States Attorney Stephen R. Kaufman. "The sentencings of these defendants to federal prison and the significant amount of forfeiture - the largest in District history - should serve as a sign of our commitment to pursue justice and preserve the integrity of health care benefit programs."
"With these sentencings, the defendants will now be held accountable for their intentions to defraud our healthcare system," said Acting Special Agent in Charge Carlton Peeples. "They’ll spend the next few years behind bars thinking about what their selfish actions cost them, the patients and our healthcare systems. This case involves $60 million in penalties and forfeiture. It’s the largest forfeiture in a criminal case in the history of the Western District of Pennsylvania. I commend the work of the agents involved in our Erie office, which worked this case tirelessly from beginning to end, while having limited resources and working the numerous other violations the FBI investigates. This case will have an impact nationwide and should also serve as a warning to other companies who choose to operate with fraud schemes instead of honesty. The FBI is committed to working with our federal and public sector partners to stop fraud and ensure everyone receives quality medical care."
"These sentences and monetary forfeitures demonstrate the commitment of the Defense Criminal Investigative Service, Federal Bureau of Investigation, Defense Health Agency, and the United States Attorney's Office in the Western District of Pennsylvania, to protect the American warfighter and taxpayer from those that attempt to victimize them by defrauding our nation's healthcare programs including TRICARE," said Bryan Denny, Patrick Hegarty, and Chris Dillard, Special Agents in Charge, U.S. Department of Defense Office of Inspector General, Defense Criminal Investigative Service. "False and inappropriate billings, by virtue of intended schemes or willful ignorance, place the American Warfighter in danger, erode public confidence and undermine the mission of our military services. DCIS and its law enforcement partners will continue to investigate healthcare fraud allegations in order to protect U.S. military members and the American taxpayer."
Assistant United States Attorneys Shardul S. Desai and James R. Wilson are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Department of Defense Office of the Inspector General conducted the investigation that led to the prosecution of Nima Rodefshalom, Mehran David Kohanbash, Joseph Kohan, Insure Nutrition, Inc., Affordable Pharmacy, Inc., ASC Pharmaceutical, LLC, DQD Enterprise Corporation, DTST Ventures, LLC, Econo Pharmacy, Inc., Emerson Pharmacy, Inc., Genorex Pharmaceutical, LLC, Nutrition Plus, Inc., Pharmatek Pharmacy, Inc., Premier Med Services, Inc., Rexford Pharmacy, Inc., Specialty Pharmacy Management of America, Inc., Solutech Pharmaceuticals, LLC, Village Drug & Compounding, Inc., and Vitamed LLC.
7 April 2021
Woman Pleads Guilty for Her Role in Narcotics Conspiracy Operating in the Jamestown, NY AreaRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Kylie Reeves, 28, of Jamestown, NY, pleaded guilty before U.S. Magistrate Judge Michael J. Roemer to conspiring to possess with intent to distribute, and distributing, 50 grams or more of methamphetamine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorneys Joshua A. Violanti and Misha Coulson, who are handling the case, stated that the defendant was part of a drug trafficking ring led by co-defendant Rocco Beardsley. Reeves distributed methamphetamine and heroin for Beardsley, who managed the defendant, controlled the supply, and set the prices. Reeves also allowed Beardsley to utilize her residence on W. Cowden Place in Jamestown and communicated with others on his behalf. On March 24, 2020, Beardsley was arrested on New York State warrants following a traffic stop. Law enforcement officers recovered large quantities of methamphetamine, fentanyl, cocaine, crack cocaine, hydrocodone, and other controlled substances from Beardsley’s vehicle. Investigator’s then searched Beardsley’s residence, recovering methamphetamine, a glass plate with white powder material, digital scale, and $185.00 in United States currency. Reeves and her three minor children also lived at the residence. Following Beardsley’s arrest, the defendant conducted drug trafficking activities on his behalf, communicating with co-conspirators, associates, suppliers, and customers in order to continue receiving proceeds.
Reeves was indicted along with six other defendants in October 2020. She is the first defendant to be convicted.
The plea is the result of an investigation by the Jamestown Police Department and the Jamestown Metro Drug Task Force, under the direction of Acting Jamestown Police Chief Timothy Jackson; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
Sentencing will be scheduled at a later date.
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Wilmington Man Sentenced for Armed Robbery of Scotchman Convenience StoreRead the Press Release
WILMINGTON, N.C. –A Wilmington man was sentenced today to 100 months in prison for robbery affecting interstate commerce and possession of a firearm in furtherance of a crime of violence.
According to court documents and other evidence, Shaun Cedric Robinson, 22, and a co-defendant went to the Scotchman gas station and convenience store in Burgaw on June 4, 2019 and robbed the store. Robinson entered the store and held the clerk at gunpoint while he demanded money. The clerk opened the cash register and the co-defendant took the money out of the register. Robinson’s co-defendant had driven Robinson to the store to effectuate the robbery and was going to be the get-away driver. However, Robinson ran the opposite direction from where the car was parked, and his co-defendant drove away from the scene without him. The clerks were able to describe the car that fled the area and officers with the Burgaw Police Department were able to locate the car very shortly after the robbery. Robinson’s co-defendant was with the car and was detained for questioning. Robinson was found a short time after the robbery walking within 3 blocks of the Scotchman. Robinson was wearing clothing consistent with the robber and attempted to flee from law enforcement when they approached him. In addition, Robinson had money from the store on his person as well as the firearm used during the robbery. The firearm belonged to his co-defendant’s sister. Both men were transported to the Burgaw Police Department. Robinson once again fled from law enforcement but was found a short time later. Robinson gave a statement to law enforcement wherein he denied participating in the robbery. He claimed another person had done the robbery. When law enforcement confronted him about his clothing being consistent with the clothing worn by the robber, Robinson claimed he let the robber wear his pants and after the robbery Robinson took the pants back from the real robber and took the firearm from him. Despite his initial claims of innocence, Robinson ultimately pled guilty on November 4, 2020 and was sentenced today.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Burgaw Police Department investigated the case and Assistant U.S. Attorney Charity Wilson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-cr-00080-M.
VIPD Crime Prevention Bureau, Project Safe Neighborhoods, and Community Leaders Invite Everyone to Support the Garden Street Community on St. Thomas with a Walk Through the Neighborhood on Friday, April 9th at 6:30 p.m.Read the Press Release
St. Thomas, USVI- United States Attorney, Gretchen C.F. Shappert announced today that members of the Virgin Islands Police Department Crime Prevention Bureau, the U.S. Virgin Islands Project Safe Neighborhood initiative, and Community leaders, together with representatives from the neighborhood, will be meeting at Bred Gade and Garden Street on Friday, April 9th at 6:30 p.m. to walk the neighborhood and hear concerns from community residents. Participants will be asked to wear masks and practice social distancing.
Shappert noted that the historic Garden Street community has experienced tragic, gun-related violence. "We all remember that on May 8th of last year, a Friday morning, residents of the Garden Street community heard repeated gunshots at around 8:30 a.m. Moments later, 39-year-old Jamal Jacobs was found lying face down on the road. His tragic death was the 10th homicide of the year on St. Thomas," Shappert said. "This senseless act of violence profoundly impacted the community."
For more information about the Garden Street walk, please contact: 340-244-6539.
Project Safe Neighborhoods
Project Safe Neighborhoods (PSN) is a nationwide Department of Justice initiative to reduce gun crime in America through strategic partnerships between federal, local, and community stakeholders. PSN targets gun crime and gun-related violence, while supporting violence reduction strategies and the coordination of community-based partnerships. The goal is to create safer neighborhoods by reducing gun violence and fostering public safety.
Two Pittsburgh Residents Indicted on Drug ChargesRead the Press Release
PITTSBURGH, PA. - Two residents of Pittsburgh, PA, have been indicted by a federal grand jury in Pittsburgh on charges of possession with intent to distribute crack cocaine, cocaine, fentanyl, and methamphetamine, Acting United States Attorney Stephen R. Kaufman announced today.
The two-count Indictment named Jared Thomas, 38, and Catherine Strong, 35, as defendants.
According to the Indictment presented to the grand jury, on March 11, 2021, Thomas was found to be in possession of cocaine, 28 grams or more of crack cocaine, and fentanyl, and Strong was found to be in possession of methamphetamine.
The law provides for a maximum total sentence of 40 years in prison, a fine of $5,000,000 or both for Thomas and a maximum total sentence of 20 years in prison, a fine of $1,000,000 or both for Strong. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants. The defendants are currently being detained at the Allegheny County Jail.
Assistant United States Attorney Michael R. Ball is prosecuting this case on behalf of the government.
The Drug Enforcement Agency and the Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Transnational Money Launderer Sentenced to 50 Months in PrisonRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that ALADE KAZEEM SODIQ, a/k/a “Eluku,” was sentenced in Manhattan federal court to 50 months in prison for conspiracy to commit money laundering. SODIQ, a money launderer who operated in Dubai, United Arab Emirates, was charged in 2019 along with Habeeb Audu, Abdulai Kennedy Saaka, Dominic Francis Labiran, and Yusuf Owolabi Abdul. SODIQ pled guilty on November 19, 2020, to one count of conspiracy to commit money laundering, before U.S. District Judge Katherine Polk Failla, who also imposed today’s sentence.
U.S. Attorney Audrey Strauss said: “Using a widely available telephone ‘spoofing’ service and other deceitful means, Alade Sodiq, in concert with others, was able to steal and conceal millions of dollars in victim funds. Sodiq has rightly received a significant sentence for his crimes. This Office is committed to working with the FBI to uncover and uproot organizations like Sodiq’s that would exploit the U.S. financial system.”
According to the allegations in the Indictment, court filings, and statements made during court proceedings, including SODIQ’s plea and sentencing hearings:
From at least 2013 through in or about 2018, SODIQ and various other conspirators, located in countries including the United States, Canada, Italy, the United Kingdom, and the United Arab Emirates (collectively, the “Conspirators”), were involved in a scheme to fraudulently access millions of dollars held in individuals’ and corporations’ bank accounts, and to conduct financial transactions using those bank accounts without the knowledge or authority of the accounts’ legitimate owners (the “Bank Scheme”). As part of the Bank Scheme, the Conspirators placed thousands of calls to various United States banks, holding themselves out as legitimate accountholders of particular targeted bank accounts and using the stolen personal identifying information belonging to those accountholders. Using a particular telephone number “spoofing” service, and voice-altering technology, the Conspirators would deceive bank representatives into believing that the Conspirators were actual accountholders. In so doing, they convinced multiple U.S. banks to, among other things: Transfer funds into accounts from which the Conspirators could access the funds and conduct further unauthorized transactions; falsely list victim accountholders as “traveling abroad” to reduce the chances of the bank flagging suspicious international transactions made by the Conspirators; have “replacement” credit cards mailed to international addresses controlled by the Conspirators; and authorize foreign purchases made by the Conspirators.
SODIQ was also involved in separate schemes to defraud United States-based businesses and banks by means of business email compromise schemes (the “BEC Fraud Schemes”). For example, SODIQ and his co-conspirators defrauded a North Carolina-based healthcare company (the “Healthcare Company Victim”) into wiring over $1 million to a bank account controlled by one of SODIQ’s co-conspirators (the “SODIQ Co-conspirator Account”). They did so by tricking the Healthcare Company Victim into believing that one of its legitimate vendors had changed bank accounts to the SODIQ Co-conspirator Account, such that payment for the vendor’s services were made to the SODIQ Co-conspirator Account. These funds were thereafter quickly withdrawn from the SODIQ Co-conspirator Account and dispersed to other accounts controlled by SODIQ and his co-conspirators.
Thereafter, in connection with an FBI undercover operation, SODIQ and others each agreed, for a substantial fee, to launder funds that they believed to be fraud proceeds through bank accounts controlled by SODIQ’s co-conspirators. SODIQ and his co-conspirators agreed to conceal the nature of those purportedly fraudulent proceeds.
In addition to the prison term, SODIQ, 50, of Dubai, United Arab Emirates, was also sentenced to one year of supervised release, and ordered to pay $298,581.11 in restitution and forfeiture in the amount of $23,385.00.
Other defendants charged in this case include Abdulai Kennedy Saaka, a/k/a “Kenny,” of Atlanta, Georgia, who pled guilty to one count of money laundering conspiracy was sentenced to 32 months in prison; Habeeb Audu, a/k/a “Dickson,” a citizen of the United Kingdom and Yusuf Owolabi Abdul, a/k/a “Saheed Sador,” a citizen of Canada, whose cases remain pending; and Dominic Francis Labiran, a citizen of the United Kingdom, who remains at large.
Ms. Strauss praised the outstanding investigative work of the FBI.
The prosecution of this case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Kiersten A. Fletcher, Jonathan E. Rebold, and Andrew A. Rohrbach are in charge of the prosecution.
The charges against Habeeb Audu, Yusuf Owolabi Abdul, and Dominic Francis Labiran are merely accusations, and they are presumed innocent unless and until proven guilty.
Suburban Chicago Man Sentenced to Two and a Half Years in Prison for Illegal Sports Gambling and Tax OffensesRead the Press Release
CHICAGO — A suburban Chicago man was sentenced today to two and a half years in federal prison for conducting an illegal sports gambling business and filing false tax returns.
GREGORY EMMETT PALOIAN conducted his illegal sports bookmaking business in Chicago, Melrose Park, and Elmwood Park. Paloian accepted wagers on the outcome of sporting events, including collegiate games and professional football, basketball, baseball, and hockey games. Paloian retained the services of a website where his bettors could view odds on sporting events, place bets, and track their winnings and losses. Paloian and his agents regularly met with the bettors to collect losses or pay out winnings.
From 2012 to 2018, Paloian caused an accountant to file false tax returns that Paloian knew substantially understated his income, including income derived from the operation of his illegal gambling business. The conduct caused a total loss to the IRS of $172,458, and the Illinois Department of Revenue of $25,238.
Paloian, 66, of Elmwood Park, pleaded guilty earlier this year to one count of conducting an illegal gambling business, and one count of filing a false tax return. U.S. District Judge Joan Humphrey Lefkow imposed the 30-month sentence after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Tamera Cantu, Acting Special Agent-in-Charge of the Chicago office of the IRS Criminal Investigation Division.
“This was a large, high stakes, predatory gambling organization,” Assistant U.S. Attorneys Terry M. Kinney and Ankur Srivastava argued in the government’s sentencing memorandum. “It was a highly lucrative illegal business which generated hundreds of thousands of dollars of revenue for Paloian and his agents during the many years it was in operation.”
St. Croix Man Sentenced to 24 months for Attempted Coercion and Enticement for Illegal Sexual ActivityRead the Press Release
St. Croix, USVI – The United States Attorney, Gretchen C.F. Shappert, announced today that on Tuesday, April 6, 2021, Chief Judge Wilma Lewis sentenced Rashead Gerard, 24, of St. Croix, to 24 months in prison, five years of supervised release and a $100 special assessment for attempted coercion and enticement for illegal sexual activity.
According to the plea agreement filed with the court, on or about August12, 2019, Gerard responded to an ad posted online. A Homeland Security Investigations agent posed as the father of a female minor, who was looking for a tour guide to show her around for an hour or two. The defendant asked what the minor wanted to do, and the agent replied, "anything that you’re up for." The agent told the defendant that the minor was 14 and the defendant told the agent he would pay for 30 minutes to engage in sexual activity with the minor. They agreed to meet at the Fort in Frederiksted around 5:30 p.m. The defendant was arrested when he went to the agreed-upon location and condoms and money were found in his car.
The case was investigated by Homeland Security Investigations. It was prosecuted by Assistant U.S. Attorney Rhonda Williams-Henry.
Social Security Fraud Leads to Federal Prison TimeRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that a Wilmington woman was sentenced today to 5 months in federal prison for defrauding the U.S. Social Security Administration (“SSA”) of more than $200,000 over the past fifteen years. Chief Judge Leonard P. Stark of the United States District Court for the District of Delaware pronounced the sentence.
According to court documents, Susan DiFelice, 63, spent over a decade collecting fraudulent Social Security benefits that were intended for a deceased beneficiary. In 2005, a family friend of DiFelice’s died. Because DiFelice was a joint user on her deceased friend’s bank account, she knew that the SSA continued to deposit more than $1,000 into his account each month. As the informant on the death certificate, DiFelice also knew that she was required to notify relevant authorities, including the SSA, of the death. Instead, however, DiFelice withdrew the SSA funds and used them for her own personal expenses.
U.S. Attorney Weiss stated, “Ms. DiFelice’s criminal conduct lasted for fifteen years, undermining SSA’s mission to provide for the vulnerable among us. I commend the SSA Office of the Inspector General for their steadfast commitment to ensuring justice in this case.”
“This sentence stands as a warning to those who violate the public trust by misusing Social Security benefits after someone dies,” said Gail S. Ennis, Inspector General for the Social Security Administration. “Our auditors and criminal investigators work side by side, and with SSA and other agencies, to identify those who fail to report deaths for personal gain. I want to thank the United States Attorney’s Office for its efforts to bring this individual to justice.”
The SSA Office of the Inspector General investigated this case under the supervision of Special Agent in Charge Michael McGill, and Assistant U.S. Attorney Christopher R. Howland prosecuted.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 20-CR-48-LPS.
Six Individuals Charged with Multi-Million Dollar Nationwide Scheme to Peddle Fraudulent StocksRead the Press Release
Miami, Florida – Six South Florida residents were indicted by a federal grand jury on charges that they defrauded investors of approximately $21 million by falsely claiming that the investors’ money would go towards the development of a lucrative mobile gaming application that, in reality, never launched and generated no revenue. The fraud scheme operated out of Broward and Palm Beach counties, targeted victim investors across the country, and involved the use of telephone sales rooms (or “boiler rooms”).
Juan Antonio Gonzalez, Acting United States Attorney, Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami Field Office, made the announcement.
Gerald Parker, 78, of Juno Beach, Florida, Michael Assenza, 44, of Boca Raton, Florida, Paul Geraci, 45, of Parkland, Florida, Ted Romeo, a/k/a “Ted Lamar”, 62, of Pompano Beach, Florida, Paul Vandivier a/k/a “Dough Wright”, 61, of West Palm Beach, Florida, and Cindy Vandivier a/k/a “Madison Brooke” a/k/a “Madison Brookes”, 64, of West Palm Beach, Florida, are charged with conspiracy to commit mail fraud and wire fraud. Parker, Geraci, Romeo, Paul Vandivier, and Cindy Vandivier are also charged with substantive wire fraud and conspiracy to commit money laundering. In addition, Parker, Geraci, Paul Vandivier, and Cindy Vandivier are charged with substantive money laundering. Parker, Paul Vandiver, and Cindy Vandivier are also charged with mail fraud.
According to the indictment, the six defendants fraudulently sold stock in a Florida company called Social Voucher.com, Inc. (“Social Voucher”) that was later referred to as Stocket, Inc. (“Stocket”). The indictment alleges that in 2013, Parker, the Chief Executive Officer of Social Voucher and Assenza, the Director of Technology, created Social Voucher to develop a mobile gaming application which was intended to combine online gaming and online shopping. Social Voucher was supposed to earn revenue from users of the mobile application buying products while using the application.
Parker hired boiler room salespeople, including Geraci, Romeo, Paul Vandivier, and Cindy Vandivier, to personally solicit investors and hire other sales agents to solicit, offer, and sell shares of Social Voucher stock to investors via telemarketing, according to the indictment. All six defendants allegedly informed investors that their money would be used to develop the mobile gaming application. But Parker, as alleged in the indictment, paid kickbacks and undisclosed commissions of thirty (30) to fifty (50) percent of the investor funds raised by the boiler rooms for Social Voucher that were concealed from the investors. Geraci, Romeo, Paul Vandivier, and Cindy Vandivier sometimes falsely held themselves out to investors as employees of the company.
The indictment further alleges that the defendants made a number of other material misstatements to the Social Voucher investors, including failing to inform investors that Parker in fact used investor funds to gamble at the casino; concealing Assenza’s criminal convictions for securities fraud and money laundering and Parker’s civil securities fraud judgment; and concealing prior regulatory fraud actions against Romeo, Paul Vandivier, and Cindy Vandivier. At times, according to the indictment, Romeo, Paul Vandivier, and Cindy Vandivier used aliases or names different than the names listed on the publicly filed regulatory actions against them when soliciting potential investors or answering investors’ questions.
The six defendants and others raised approximately $21 million in funds from Social Voucher investors. At no point did the Social Voucher mobile gaming application generate any revenue or profit.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
FBI Miami is investigating this case. This case is being prosecuted by Assistant U.S. Attorney Elizabeth Young. Assistant U.S. Attorney Emily Stone is handling asset forfeiture related to the matter.
The case is assigned to United States District Judge Rodney Smith in Fort Lauderdale, Florida. Geraci’s initial appearance is scheduled on April 7, Romeo’s initial appearance is scheduled on April 9, Assenza’s initial appearance is scheduled on April 9, and the other defendants have not yet been scheduled.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-60101.
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Sioux City Man Sentenced to Federal Prison for Armed CarjackingsRead the Press Release
A man who carjacked and robbed two men at gunpoint in a single evening was sentenced to fifteen years in federal prison. The sentencing took place April 6, 2021, in federal district court in Sioux City.
Jeremiah Shortenhaus, age 27, from Sioux City, Iowa, received the prison term after an October 20, 2020, guilty plea to possessing and brandishing a firearm in furtherance of a crime of violence.
Evidence presented by the United States at Shortenhaus’s detention, change of plea, and sentencing hearings revealed that on July 27, 2019, Shortenhaus robbed a man at gunpoint in Sioux City, Iowa while the man was in his car at an ATM. Shortenhaus ordered the man out of his vehicle, entered through the passenger side and stole the vehicle along with personal property from inside the vehicle. Later that same night, in South Sioux City, Nebraska, Shortenhaus robbed a second victim who was sitting in his vehicle waiting for the morning paper. Shortenhaus pointed a handgun at the victim, ordered him to get out of the car and hand over his wallet and phone. Shortenhaus then left the parking lot in the victim’s vehicle. Shortenhaus was apprehended by a Sioux City police officer after a high-speed chase that ended when Shortenhaus crashed the second stolen car and fled on foot.
Shortenhaus was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Shortenhaus was sentenced to 180 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Shortenhaus is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was investigated by the Sioux City, Iowa Police Department and the South Sioux City, Nebraska Police Department and was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR‑4068.
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Sexual Predators Sentenced for Attempted Coercion and Enticement, Distribution of Child PornographyRead the Press Release
PLANO, Texas – Two men have been sentenced for crimes against children, including attempted coercion and enticement of a minor and distribution of child pornography, in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
“The Eastern District of Texas, along with its law enforcement partners, is committed to locating and stopping the most dangerous predators,” said Acting U.S. Attorney Nicholas J. Ganjei. “Many of the events of these cases occurred during the height of the pandemic; however, these agents never stopped working to ensure the safety of the children in our community.”
“Crimes against children are some of the most reprehensible acts that law enforcement is determined to prevent and punish once they occur,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “We are thankful for the collaboration of our partners in the Dallas Child Exploitation and Human Trafficking Task Force. It is because of this partnership that these two individuals are now facing lengthy sentences for their crimes.”
Christopher A. Sheffer, 58, of Media, Pennsylvania pleaded guilty to attempted coercion and enticement of a minor on Oct. 30, 2020 and was sentenced to 240 months in federal prison today by U.S. District Judge Sean D. Jordan. Judge Jordan also ordered Sheffer to pay a fine of $40,000 and a $5,000 assessment pursuant to the Justice for Victims of Trafficking Act of 2015.
According to information presented in court, in September 2019, Sheffer was the administrator of a group on a popular social media and communications application. As an administrator, he had the authority to determine who could join the group, which was devoted to incest and individuals who sexually abuse children. Participants in the group shared child pornography as well as their interest in molesting children. Sheffer privately communicated with an individual who he believed had access to a prepubescent child. Over the next few months, Sheffer expressed his interest in meeting the child for sex, mailed the child gifts, and sent the child private messages. On July 10, 2020, Sheffer flew from his home in Pennsylvania to Texas, where he then rented a car and drove to a specific location to meet the child and engage in sexual acts.
Judge Jordan also sentenced Thomas Earl Cardwell, Jr., 43, of Kemp, Texas, to 210 months in federal prison. Cardwell had previously pleaded guilty to distributing child pornography on Oct. 19, 2020.
According to information presented in court, Cardwell had been arrested for and convicted of online solicitation of a minor, sexual conduct in July 2019 in the 371st District Court of Tarrant County, Texas. He was released from the Texas Department of Criminal Justice in December 2019. Two months later, in February 2020, Cardwell began communicating with individuals on a social media application about his desire to perform oral sex on female children. As part of those communications, on March 6, 2020, Cardwell distributed four videos of child pornography, depicting prepubescent minors engaged in sexually explicit conduct.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
These cases were investigated by the Federal Bureau of Investigation – Dallas Child Exploitation and Human Trafficking Task Force and members of the Plano Police Department. These cases were prosecuted by Assistant U.S. Attorney Marisa Miller.
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Self-Described Member of Boogaloo Bois Arrested, Charged with Illegal Possession of A Machine GunRead the Press Release
Acting United States Attorney W. Anders Folk today announced a federal criminal complaint charging MICHAEL PAUL DAHLAGER, 27, of St. Cloud, Minnesota, with illegal possession of a machine gun. DAHLAGER, who was taken into custody early this morning, made his initial appearance today before Magistrate Judge Becky Thorson in U.S. District Court. DAHLAGER was ordered to remain in custody pending a formal detention hearing, which is scheduled for April 9, 2021.
According to the allegations in the criminal complaint, in November of 2020, the FBI initiated an investigation into DAHLAGER, a self-proclaimed member of the “Boogaloo Bois,” a loosely connected group of individuals who espouse violent anti-government sentiments. The term “Boogaloo” itself references an impending second civil war in the United States and is associated with violent uprisings against the government. In November 2020, the FBI learned through a confidential human source (“CHS”) that DAHLAGER was discussing his willingness to kill members of law enforcement. The FBI also learned that DAHLAGER was in possession of a 3D-printed “drop in auto sear” and a homemade firearm suppressor. An “auto sear” is a part designed and intended for use in converting a semi-automatic weapon to shoot automatically by a single pull of the trigger and is a machine gun under federal law.
According to the allegations in the criminal complaint, on November 21, 2020, while meeting with the CHS and others at his residence, DAHLAGER showed the CHS several tactical items including body armor, an AR-15 style assault rifle with a folding stock, and an item DAHLAGER claimed was a suppressor. The CHS observed loaded magazines for an assault rifle in DAHLAGER’s residence. DAHLAGER also showed the CHS two auto sears, which DAHLAGER said a friend had created using a 3D printer. DAHLAGER told the CHS that his residence has port-holes to make a stand if law enforcement confronts him.
According to the allegations in the criminal complaint, on December 12, 2020, DAHLAGER traveled from St. Cloud to conduct surveillance at the Minnesota State Capitol building in St. Paul, Minnesota, while attending a “Stop the Steal” rally. DAHLAGER scouted law enforcement numbers, over-watch positions for the Boogaloo Bois, quick reaction forces, and which streets were blocked by law enforcement. DAHLAGER made a video recording of his observations at the Minnesota State Capitol rally, which he later reviewed with the CHS.
According to the allegations in the criminal complaint, on January 10, 2020, the CHS approached DAHLAGER about obtaining an auto sear. DAHLAGER told the CHS he had several auto sears and was willing to provide one to the CHS. DAHLAGER told the CHS that he bought a cover for his suppressor to make the device appear to be a heat shield because DAHLAGER knew the suppressor was not legal. DAHLAGER also showed the CHS a video depicting DAHLAGER shooting what appeared to be the same rifle equipped with the same suppressor the CHS had seen in the PREMISES on November 21, 2020. On February 3, 2021, during a meeting at his residence, DAHLAGER provided two auto sears to the CHS and demonstrated how the devices should be inserted into a firearm.
This case is the result of an investigation conducted by the FBI’s Joint Terrorism Task Force, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
This case is being prosecuted by Assistant U.S. Attorney Andrew R. Winter, and Trial Attorneys George Kraehe and Phil Viti of the National Security Division's Counterterrorism Section.
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
MICHAEL PAUL DAHLAGER, 27
St. Cloud, Minn.
Charges:
- Unlawful possession of a machine gun, 1 count
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Robert Goins Leeper Receives 21 Year Prison Sentence for Conspiracy to Distribute MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – On April 5, 2021, Robert Goins Leeper, 52, currently of Clarksville, was sentenced by the Honorable J. Ronnie Greer, in the United States District Court for the Eastern District of Tennessee at Greeneville.
As part of the plea agreement filed with the court, Leeper pleaded guilty to an indictment charging him with one count of Conspiracy to Distribute and Possess with the Intent to Distribute 50 Grams or More of Actual Methamphetamine, U.S.C. 21 U.S.C. § § 846, 841(a)(1), and (b)(1)(A). Leeper was sentenced to 262 months (21.8 years) in prison, followed by five years of supervised release.
In the spring of 2017, local and federal agencies coordinated an investigation into a methamphetamine distribution organization operating in Elizabethton, Tennessee. Leeper was identified as a member of the conspiracy, and it was determined that Leeper conspired with others to distribute hundreds of pounds of methamphetamine into upper northeast Tennessee. Leeper used co-defendants to transport pounds of methamphetamine from California to Tennessee, and he then distributed the methamphetamine to other co-defendants for further distribution. Additionally, Leeper possessed firearms during the conspiracy to protect himself and others during drug transactions.
The criminal indictment was the result of an investigation by the Homeland Security Investigation (“HSI”), the Drug Enforcement Administration (“DEA”), and the Elizabethton and Carter County Joint Drug Task Force. This investigation was led by HSI Special Agent John Bulla.
Assistant U.S. Attorney Meghan L. Gomez represented the United States.
The investigation resulted from the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Richmond Assisted Living Facility Owner Charged with Elder Fraud SchemeRead the Press Release
RICHMOND, Va. – A federal grand jury returned an indictment yesterday charging the former owner of a Richmond-based assisted living facility with allegedly diverting over $800,000 in federal and state benefits that were intended to pay for the care of the facility’s residents.
“As alleged in the indictment, the defendant repeatedly left the residents of her assisted living facility in deplorable conditions while she diverted their essential benefits to pay for her gambling expenses in Atlantic City and Las Vegas, and to fund her personal debts, travel, and retail purchases,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We will vigorously pursue justice on behalf of vulnerable members of our community to ensure that those entrusted to care for the elderly and infirm are held accountable if they exploit the critical trust placed in them.”
According to the indictment, Mable B. Jones, 77, of Richmond, owned and operated Jones & Jones, an assisted living facility complex that served primarily elderly and incapacitated adults. For residents who were legally incapable of managing their own funds, Jones & Jones served as a representative payee and regularly received state and federal benefits payments on behalf of those residents. Representative payees are required to use Social Security benefits to provide for the beneficiary’s needs, including food, clothing, housing, and medical care. Representative payees, moreover, are specifically prohibited from using Social Security benefits for anything other than the beneficiary’s needs. Similar requirements also apply to auxiliary grants issued by the Commonwealth of Virginia’s Department for Aging and Rehabilitative Services.
According to the indictment, beginning around December 2015 and continuing through the facility’s closure in 2019, Jones converted more than $800,000 of the residents’ federal and state benefits for her own personal use. As alleged in the indictment, Jones used the residents’ benefits to satisfy her personal debts, including her mortgage and bankruptcy payments, and to fund her personal travel, retail purchases, and gambling expenses, including at casinos in Atlantic City, New Jersey and Las Vegas, Nevada.
According to the indictment, Jones’s diversion of resident benefits allegedly led to significant and persistent deficiencies in the facilities, care, and services provided to Jones & Jones residents, including deficiencies that allegedly endangered residents’ health and safety. These conditions ultimately prompted state and federal audits of the facility before its closure, during which Jones allegedly made false statements about her conversion and use of resident funds.
Jones is charged with wire fraud and making false statements. If convicted, she faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; Michael McGill, Special Agent-in-Charge, Social Security Administration Office of the Inspector General, made the announcement.
Assistant U.S. Attorneys Kaitlin G. Cooke and Shea Gibbons are prosecuting the case.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local, and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-30.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Restaurant Chain Manager Sentenced to 30 Months in Prison for Employment Tax FraudRead the Press Release
A California restaurant chain manager was sentenced today to 30 months in prison for employment tax fraud.
According to court documents, Aleksandar Sreckovic, of San Diego, was a manager for San Diego Home Cooking, a restaurant group with over 110 employees and five restaurants in the San Diego area: Café 56 & Bar and Mission Valley Café & Bar in San Diego, Lake Murray Café in La Mesa, Lakeside Café in Lakeside, and Centre City Café in Escondido. Sreckovic had significant control over the finances of San Diego Home Cooking and had a duty to account for and pay employment taxes on behalf of the company’s employees to the IRS.
In November 2014, Sreckovic directed an outside payroll company to stop making employment tax payments to the IRS. From the last quarter of 2014 through the last quarter of 2017, Sreckovic did not file employment tax returns, nor did he pay employment taxes for San Diego Home Cooking. Instead, Sreckovic paid other creditors and his own personal expenses. In total, Sreckovic caused a tax loss of over $1.5 million.
In addition to the term of imprisonment, U.S. District Judge Cathy Ann Bencivengo ordered Sreckovic to serve one year of supervised release and to pay approximately $2.3 million in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Randy Grossman for the Southern District of California made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorney Matthew Hoffman of the Justice Department’s Tax Division and Assistant U.S. Attorney Andrew Galvin of the Southern District of California prosecuted the case.
Pittsburgh Man Charged with Federal Drug Law ViolationRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Vincent Chambers, age 40, as the sole defendant.
According to the Indictment, on March 10, 2021, Chambers possessed with the intent to distribute crack cocaine, a Schedule II controlled substance, heroin, a schedule I controlled substance, and fentanyl, a Schedule II controlled substance.
The law provides for a maximum total sentence of not more than twenty (20) years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Allegheny County Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pakistani National Indicted and Sanctioned for Human Smuggling ConspiracyRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging a citizen of Pakistan for allegedly leading a scheme to smuggle undocumented individuals into the United States from Pakistan and Afghanistan.
According to court documents, between January 2015 and December 2020, Abid Ali Khan, 40, allegedly organized, led, and worked with others in his Pakistan-based smuggling network to facilitate the travel of undocumented individuals to the United States. Khan allegedly disregarded the fact that the individuals did not have prior authorization to enter the United States and that their entry into the United States would be illegal. Khan also allegedly encouraged, induced, and brought undocumented individuals to the United States for commercial advantage and financial gain.
“Khan allegedly led a global human smuggling operation that used fraudulent documents and international travel routes to facilitate the entry of unauthorized individuals into the United States,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We are committed to holding accountable those who seek personal monetary gain by compromising and undermining the integrity of the immigration process.”
“Abid Ali Khan is alleged to have organized and led an international organization that, in exchange for monetary payment, facilitated the illegal smuggling of individuals through various countries to the United States,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “As this case demonstrates, the department continues to identify and prosecute those who seek to profit from conduct that undermines our system of legal immigration and imperils the lives of those being smuggled, often under dangerous conditions.”
“Homeland Security Investigations (HSI) Miami is committed to prosecuting individuals who pose a threat to national security and our critical infrastructure, including exploiting our global financial systems through their smuggling networks,” said Special Agent in Charge Anthony Salisbury of HSI Miami. “A recent HSI-led investigation revealed the Pakistani-based Abid Khan human smuggling network, operating in the Middle East and southwest Asia, is allegedly exploiting systemic vulnerabilities in order to move people into the United States and elsewhere.”
“This outcome is a result of the outstanding dedication and commitment by case agents and the effective partnership between HSI and the Justice Department’s Human Rights and Special Prosecutions Section, including significant contributions made by CBP’s Counter Networks Division, members of the HSI Human Smuggling Unit and other partners,” said Chief Ramon Romo of the HSI Human Smuggling Unit. “Their collaborative efforts make our country a safer place.”
Khan allegedly accepted payment in exchange for planning and coordinating the international travel for foreign nationals to travel from Pakistan through multiple countries, to include Brazil and the United States, allegedly offered or provided false documents for foreign nationals to use for travel through multiple countries, and allegedly instructed foreign nationals that his co-conspirators would facilitate various parts of the travel between Pakistan and the United States.
In addition to the criminal charges filed against Khan, the Treasury Department’s Office of Foreign Assets Control (OFAC) also announced today that it has designated Khan, the Khan Transnational Criminal Organization (TCO), and several other members of his smuggling network in connection with their involvement in a global network of human smugglers and the smuggling of undocumented noncitizens to the United States. The Treasury Department’s sanctions require the blocking and reporting of all assets held by Khan, his associates, and the Khan TCO in the United States, or in the possession and control of U.S. persons. The sanctions also prohibit all dealings by U.S. persons, or persons within (or transiting) the United States, that involves any property or interests of Khan, his associates, or the Khan TCO.
The Department of Justice recognizes OFAC’s efforts to help stop Khan and his network from allegedly continuing to smuggle persons to the United States.
The case is being investigated by HSI Miami, with assistance from the HSI Human Smuggling Unit; U.S. Customs and Border Protection; Department of Homeland Security Homeland Identities, Targeting, and Exploitation Center (HITEC); HSI Biometric Identification Transnational Migration Alert Program; HSI Attaché Panama; and HSI Attaché Brasilia.
The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence, and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Assistant U.S. Attorney Ron Walutes of the Eastern District of Virginia and Trial Attorney Jay A. Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-68.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Pakistani National Indicted and Sanctioned for Human Smuggling ConspiracyRead the Press Release
A federal grand jury in the Eastern District of Virginia returned an indictment today charging a citizen of Pakistan for allegedly leading a scheme to smuggle undocumented individuals into the United States from Pakistan and Afghanistan.
According to court documents, between January 2015 and December 2020, Abid Ali Khan, 40, allegedly organized, led, and worked, with others in his Pakistan-based smuggling network to facilitate the travel of undocumented individuals to the United States. Khan allegedly disregarded the fact that the individuals did not have prior authorization to enter the United States and that their entry into the United States would be illegal. Khan also allegedly encouraged, induced, and brought undocumented individuals to the United States for commercial advantage and financial gain.
“Abid Ali Khan is alleged to have organized and led an international organization that, in exchange for monetary payment, facilitated the illegal smuggling of individuals through various countries to the United States,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “As this case demonstrates, the department continues to identify and prosecute those who seek to profit from conduct that undermines our system of legal immigration and imperils the lives of those being smuggled, often under dangerous conditions.”
“Khan allegedly led a global human smuggling operation that used fraudulent documents and international travel routes to facilitate the entry of unauthorized individuals into the United States,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “We are committed to holding accountable those who seek personal monetary gain by compromising and undermining the integrity of the immigration process.”
“Homeland Security Investigations (HSI) Miami is committed to prosecuting individuals who pose a threat to national security and our critical infrastructure, including exploiting our global financial systems through their smuggling networks,” said Special Agent in Charge Anthony Salisbury of HSI Miami. “A recent HSI-led investigation revealed the Pakistani-based Abid Khan human smuggling network, operating in the Middle East and southwest Asia, is allegedly exploiting systemic vulnerabilities in order to move people into the United States and elsewhere.”
“This outcome is a result of the outstanding dedication and commitment by case agents and the effective partnership between HSI and the Justice Department’s Human Rights and Special Prosecutions Section, including significant contributions made by CBP’s Counter Networks Division, members of the HSI Human Smuggling Unit and other partners,” said Chief Ramon Romo of the HSI Human Smuggling Unit. “Their collaborative efforts make our country a safer place.”
Khan allegedly accepted payment in exchange for planning and coordinating the international travel for foreign nationals to travel from Pakistan through multiple countries, to include Brazil and the United States, allegedly offered or provided false documents for foreign nationals to use for travel through multiple countries, and allegedly instructed foreign nationals that his co-conspirators would facilitate various parts of the travel between Pakistan and the United States.
In addition to the criminal charges filed against Khan, the Treasury Department’s Office of Foreign Assets Control (OFAC) announced today that it has designated Khan, the Khan Transnational Criminal Organization (TCO), and several other members of his smuggling network in connection with their involvement in a global network of human smugglers and the smuggling of undocumented noncitizens to the United States. The Treasury Department’s sanctions require the blocking and reporting of all assets held by Khan, his associates, and the Khan TCO in the U.S., or in the possession and control of U.S. persons. The sanctions also prohibit all dealings by U.S. persons, or persons within (or transiting) the United States, that involve any property or interests of Khan, his associates or the Khan TCO.
The Department of Justice recognizes OFAC’s efforts to help stop Khan and his network from allegedly continuing to smuggle persons to the United States.
The case is being investigated by HSI Miami, with assistance from the HSI Human Smuggling Unit; U.S. Customs and Border Protection; Department of Homeland Security Homeland Identities, Targeting, and Exploitation Center (HITEC); HSI Biometric Identification Transnational Migration Alert Program; HSI Attaché Panama; and HSI Attaché Brasilia.
The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence, and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
The case is being prosecuted by Trial Attorney Jay A. Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section, and Assistant U.S. Attorney Ron Walutes of the U.S. Attorney’s Office for the Eastern District of Virginia.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Omaha Man Sentenced for Attempted Enticement of a MinorRead the Press Release
Acting United States Attorney Jan Sharp announced that Raul Valdez Rivas, 43, was sentenced today in federal court in Omaha, Nebraska, for attempted enticement of a minor. The Honorable Brian C. Buescher sentenced Valdez Rivas to 120 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Valdez Rivas will be required to serve 5 years of supervised release. He will also be required to register as a sex offender and is subject to deportation.
In April 2020, Valdez Rivas contacted the phone number listed in an online prostitution advertisement. Valdez Rivas communicated via text message and phone calls with a sheriff’s deputy posing as a fifteen-year-old boy. Valdez Rivas offered to pay the boy to engage in sexual acts with him and arranged a meeting. When Valdez Rivas arrived at the designated location, he was arrested.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Douglas County Sheriff’s Office and the Omaha FBI's Child Exploitation and Human Trafficking Task Force.