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Thursday 18 February 2021
Anchorage Man Sentenced for Gun Violence on School GroundsRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Laquinton Tyrone Dashawn Robbins, 28, has been sentenced by U.S. District Court Judge Ralph R. Beistline for possession of firearm in an Anchorage school zone. Robbins pled guilty to the offense in February 2020.
According to court documents, on October 3, 2018, Robbins possessed and discharged a gun on school grounds. Robbins shot another male in the parking lot of Denali Montessori Elementary School, during a time where children were still being dropped off for the school day. The altercation began when Robbins dropped off his girlfriend’s daughter at the school and was confronted by the victim. Their argument ended when Robbins pulled a Sig Sauer .40 caliber handgun from his backpack and shot the victim in the neck at point blank range. The shooting occurred during school hours, causing the school to go into lockdown. The victim has recovered from his life-threatening injuries.
Robbins was sentenced to 40 months in prison, followed by 3 years of supervised release. In imposing the sentence, Judge Beistline remarked that this sentence needs to send the message that “We are not going to tolerate bringing guns into school zones.” Additionally, charges of Attempted Murder in the First Degree and Assault in the First Degree remain pending in State of Alaska Superior Court.
The Anchorage Police Department (APD) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the investigation leading to the successful prosecution in this case. This case was charged in partnership with the Anchorage Municipal Prosecutor’s Office, which, since 2007, has assigned a prosecutor to work as a Special Assistant U.S. Attorney (SAUSA) on violent crime cases in Anchorage. This case was prosecuted by Assistant U.S. Attorney Jennifer Ivers, the former SAUSA.
This case is part of Project Safe Neighborhoods (PSN) 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 visit https://www.justice.gov/ag/about-project-guardian
Wednesday 17 February 2021
Wilmington Man Receives 13 Years in Federal Prison for Drug DistributionRead the Press Release
RALEIGH, N.C. – Miguel Angel Ramos, age 31, from Wilmington, NC was sentenced today in Federal District Court in Raleigh, NC. Ramos was sentenced to a total of 156 months in prison for the distribution of a quantity of fentanyl on July 25, 2019 in Wilmington, NC.
According to Court documents and information presented at today’s hearing, in July 2019, agents with the Wilmington Safe Street Task Force (WSSTF) conducted two controlled purchases of suspected heroin from Ramos. On July 17, 2019, under the supervision of agents with WSSTF, a confidential source (CI) purchased heroin from Ramos. The CI contacted Ramos and arranged a meeting with Ramos to purchase heroin at a gas station in the Greenfield Lake area of Wilmington. The CI met Ramos and purchased 50 bags of suspected heroin for $300.00. On July 25, 2019, law enforcement conducted a second controlled purchase of suspected heroin from Ramos. The CI met Ramos at a convenience store on Carolina Beach Road in Wilmington. The CI purchased 98 bags of suspected heroin for $500.00. In each instance, the suspected heroin tested positive as fentanyl after being sent to the lab for analysis. Ramos has prior state convictions for the possession of narcotics with the intent to sell or deliver and a prior state conviction for trafficking in opium or heroin.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Wilmington Safe Streets Task Force, Wilmington Police Department and Federal Bureau of Investigation (FBI) investigated the case and Special Assistant U.S. Attorney Murphy Averitt prosecuted the case.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation and the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
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-00012-D.
West Texas Kidnapper Pleads Guilty to Abducting 9-Year-Old GirlRead the Press Release
A west Texas man pleaded guilty today to abducting a 9-year-old girl from a birthday party, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Damien Dre Gonzales, 27, of Levelland, Texas pleaded guilty Wednesday morning to one count of kidnapping before Magistrate Judge D. Gordon Bryant, Jr.
“No child should ever have to endure the terror of being abducted,” said Acting U.S. Attorney Prerak Shah. “I am thankful for the rapid response of law enforcement to rescue this child and ensure that this defendant will never again victimize children.”
“The FBI and our law enforcement partners are determined to keep the children in our communities safe from danger,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “We will continue working together to hold child predators accountable for their crimes.”
According to plea papers, Mr. Gonzales admitted to abducting a 9-year old girl at a birthday party in Levelland, Texas to engage in illicit sexual intercourse.
During the birthday party in August, a woman began choking and most of the attendees went to assist with her sudden health emergency. While the minor’s father was attending to the woman, Mr. Gonzales lured the 9-year-old away by asking for help carrying alcohol to his vehicle. Mr. Gonzales encouraged the girl to get inside the vehicle and then he drove away.
The girl’s disappearance set off a frantic search by her family and those at the birthday party. They notified law enforcement and replayed home surveillance footage that showed the 9-year-old leaving with Mr. Gonzales.
About that same time, the Levelland Police Department received a report of a vehicle parked in the middle of the street several miles from the location of the birthday party. Mr. Gonzales hit a residential mailbox and stopped in the road. While in the car, Mr. Gonzales sexually assaulted the girl by removing her clothes and touching her.
When law enforcement arrived on the scene to investigate the parked car, they discovered the girl inside. Officers noticed that Mr. Gonzales’ jeans were unzipped, and his belt was unbuckled. Inside Mr. Gonzales’ car was an open box of condoms sitting in the passenger seat and one condom was missing from the box.
Mr. Gonzales faces a mandatory minimum of 20 years in federal prison and up to life behind bars.
The victim was immediately reunited with her parents and provided psychological and medical support.
The FBI Lubbock Resident Agency, Levelland Police Department, and Hockley County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Callie Woolam is prosecuting the case.
Warren County Man Admits Role in Scheme to Deceive Bank and Bank RegulatorsRead the Press Release
NEWARK, N.J. – A Warren County, New Jersey, man today admitted his role in a scheme to defraud a bank and bank regulators, Acting U.S. Attorney Rachael A. Honig announced.
Gary Ketchum, 73, of Hackettstown, New Jersey, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to a superseding information charging him with one count of conspiring to make false entries to deceive First State Bank and to deceive the Federal Deposit Insurance Corporation, FSB’s regulators.
According to documents filed in this case and statements made in court:
A three-phase scheme took place from 2009 to 2010. The first phase was to fraudulently infuse $7 million of capital into First State Bank (FSB). In the second phase of the scheme, conspirators caused FSB to make millions of dollars in loans based on material misrepresentations to cover up the fraudulent nature of the capital infusion and to end inquiries from FSB’s auditors. The final phase involved lying to the FDIC and FSB, among others, about the fraudulent capital infusion and loans.
In May 2017, a conspirator, Donna Conroy, pleaded guilty to her role and is awaiting sentencing. In October 2018, Ketchum, along with conspirators Joseph Natale, former CEO of FSB, formerly of Cranford, New Jersey, and Albert Gasparro were charged by indictment with conspiracy to deceive the FDIC and FSB, deceiving those two entities, conspiracy to commit bank fraud, and bank fraud. Natale is scheduled stand trial before Judge McNulty beginning on Nov. 1, 2021. The charges against Gasparro remain pending.
The conspiracy count to which Ketchum pleaded guilty carries a maximum potential penalty of five years in prison and a fine of $250,000, or twice the gross pecuniary gain derived from the offense or twice the gross loss sustained by any victim. Sentencing is scheduled for June 28, 2021.
Acting U.S. Attorney Honig credited special agents of the FDIC – Office of Inspector General, under the direction of Special Agent in Charge Patricia Tarasca; special agents of the FBI, Newark Division, Red Bank Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr.; and inspectors of the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), under the direction of Special Inspector General Christy Goldsmith Romero, with the investigation leading to today’s guilty plea.
The government is represented by Ari B. Fontecchio of the Economic Crimes Unit of the U.S. Attorney’s Office, District of New Jersey.
The charges and allegations against the remaining defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Virginia man indicted on sex offender chargeRead the Press Release
ELKINS, WEST VIRGINIA – Eddie Reese Cason, of Buckingham, Virginia, was indicted today on a sex offender charge, U.S. Attorney Bill Powell announced.
Cason, 37, was indicted today on one count of “Failure to Update Sex Offender Registration.” Cason, a person required to register as a sex offender, is accused of failing to update his sex offender registration from October 2020 to January 2021 in Randolph County after traveling from Virginia to West Virginia.
Cason is facing up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The U.S. Marshal Service and the West Virginia State Police investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
United States Attorney's Office District of Arizona January 2021 Immigration and Border Crimes ReportRead the Press Release
I. Illegal Reentry After Deportation (8 U.S.C. 1326)
177 individuals were charged in January with illegal reentry
A. 135 of those 177 individuals had previously been convicted of non-immigration criminal offenses in the U.S.
Of the 135 individuals with non-immigration criminal records:
1. 27 had violent crime convictions, including:
0 individuals had homicide convictions
11 individuals had sex offense convictions
14 individuals had domestic violence convictions2. 11 had property crime convictions
3. 24 had DUI convictions
4. 69 had drug crime convictions
B. 96 of those 177 individuals had been deported three or more times
II. Alien Smuggling (8 U.S.C. 1324)
31 individuals were charged in January with alien smuggling
III. Illegal Entry (Criminal Consequence Initiative) (8 U.S.C. 1325)
0 individuals were charged in January with illegal entry on the CCI calendar
Criminal conviction information is based on preliminary criminal history reports provided by the arresting agency.
These numbers represent United States Attorney's Office prosecutions only. These numbers do not include individuals apprehended by immigration enforcement officials and subjected solely to administrative process.
*The Department of Homeland Security instituted a policy in March 2020 of expeditiously returning aliens who illegally enter the United States rather than detaining them. The decreased number of individuals presented to this Office for prosecution coincides with the implementation of that policy and other COVID-19 related border restrictions.
RELEASE NUMBER: 2021-008_January Immigration and Border Crimes Report
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.U.S. Navy Concrete Contractor in Djibouti Admits Fraudulent Conduct and Will Pay More than $12.5 MillionRead the Press Release
Mark W. Pletcher (619) 546-9714 and Andrew J. Galvin (619) 546-9721
NEWS RELEASE SUMMARY – February 17, 2021
SAN DIEGO – Colas Djibouti, a contractor for the Department of the Navy at Camp Lemonnier and Chabelley Airfield, and the U.S. Embassy in Djibouti, admitted today that it faked testing results and submitted a series of false documents and false claims to the United States as part of a scheme to defraud the United States in the sale of substandard concrete used to construct U.S. Navy airfields in Djibouti.
Colas Djibouti, a French limited liability company, is a wholly owned subsidiary of Colas SA, a French civil engineering company. According to documents filed in court, as part of its contracts with the Department of the Navy, Colas Djibouti was required to certify that it supplied concrete with specific composition and characteristics. Notwithstanding these obligations, Colas Djibouti created fictitious testing results, made fraudulent representations regarding the concrete’s composition and characteristics, and knowingly provided concrete to the United States that did not comply with the specifications.
In one particularly egregious example, in response to a request for an analysis of the water used in the concrete mix, Colas Djibouti provided an analysis for a store-bought bottle of drinking water. As a result of this criminal conduct, Colas Djibouti ultimately supplied substandard concrete to the Department of Navy in Djibouti that could promote early cracking, surface defects, and corrosion of embedded steel, and thus significantly impair the concrete’s long-term durability.
In accordance with its agreement with the United States, Colas Djibouti will forfeit $8 million, pay another $2,042,002 to the Department of Navy in restitution, and pay a monetary penalty of $2.5 million.
“Wherever our Navy goes, we go,” said U.S. Attorney Robert Brewer in the Southern District of California. “We will continue to unwaveringly protect our American warfighters from fraud, graft and corruption as they protect us from enemies foreign and domestic.”
The case was investigated by the Defense Criminal Investigative Service, the Naval Criminal Investigative Service, and the Defense Contract Audit Agency. U.S. Attorney Brewer specifically commended the many agents and auditors who worked on this case in Djibouti and the United States, and Assistant U.S. Attorneys Mark Pletcher and Andrew Galvin, for their dedication and perseverance in the face of challenging circumstances.
“Our Sailors and Marines depend upon high quality products and services from our Department of the Navy contractors in order to meet the Department’s world-wide mission,” said acting Secretary of the Navy Thomas W. Harker. “This outcome demonstrates that the Department of the Navy will continue to insist that our contractors must meet our high standards. This global settlement demonstrates the strong cooperation between the Department of the Navy and the Department of Justice in preventing fraud, no matter where in the world it happens.”
The criminal case was investigated and prosecuted as part of the Africa Strike Force, an initiative by the Major Fraud and Public Corruption Section of the U.S. Attorney’s Office in San Diego, in conjunction with its law enforcement partners from the Defense Criminal Investigative Service, the Naval Criminal Investigative Service, among others. As the Department of Defense provides military and humanitarian aid throughout Africa to combat the rise of violent extremism from the likes of Boko Haram, Al Shabab and Al Qaeda in the Islamic Maghreb, Africa Strike Force was formed to serve an unmet need in protecting American interests from fraud and corruption. Africa Strike Force also recently announced charges against Micheline Pollock, a U.S. Army Corps of Engineers contractor who was indicted for defrauding the United States on military and humanitarian construction contracts throughout Africa.
Today’s criminal resolution, announced by the U.S. Attorney’s Office for the Southern District of California, was accompanied by the announcement by the Department of Justice, Civil Division, Commercial Litigation Branch of a simultaneous resolution of allegations of civil wrongdoing, under which Colas Djibouti will pay an additional $1,857,998.00.
“Government contractors that supply substandard materials to our armed forces not only cheat the American taxpayers but also impose added costs and burdens on the military,” said Acting Assistant Attorney General Brian M. Boynton for the Department of Justice’s Civil Division. “Today’s settlement demonstrates our commitment to ensure that those who do business with the government comply with their contractual obligations.”
“Aircraft taxiways are essential to military operations, and therefore require concrete that conforms to the high standards and specifications of the Department of Defense,” said Stanley A. Newell, Special Agent-in-Charge for the DCIS Transnational Operations Field Office. “The DCIS along with our investigative partners will vigorously root out illegal conduct like this that threatens U.S. military readiness and harms the integrity of the Department of Defense procurement system.”
"Protecting Navy interests is a top priority of the Naval Criminal Investigative Service. Anyone considering defrauding the Navy and U.S. taxpayers should know NCIS will aggressively pursue all such allegations, in concert with our law enforcement partners and the Department of Justice," said Todd Battaglia, Special Agent in Charge of the NCIS Europe and Africa Field Office.
DEFENDANT Corporate Location Case Number
Colas Djibouti Djibouti, Djibouti 21CR0280-WQH
SUMMARY OF CHARGES
Conspiracy to Commit Wire Fraud, in violation of 18 U.S.C. §§ 1349 and 1343
Maximum Penalty: Twice the pecuniary gain or twice the pecuniary loss, whichever is greater
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
U.S. Attorney Wrigley Announces the Arrest of a Lincoln Park, Michigan Man for Fentanyl PossessionRead the Press Release
BISMARCK - United States Attorney Drew Wrigley announced that a federal grand jury has indicted Larry Ownes III, age 25 of Lincoln Park, MI, for two counts of Possession with Intent to Distribute Fentanyl over 400 grams.
An indictment unsealed yesterday alleges Owens was arrested by MHA Drug Enforcement on June 10, 2020, while transporting hundreds of suspected fentanyl pills. After posting bond, Owens was again arrested on September 15, 2020, by the Ward County Narcotics Task Force. Owens was found in an apartment in Minot with over 5000 pressed fentanyl pills, numerous cellular phones and a large amount of cash.
"The fentanyl pills seized in this latest arrest have a street value of around $400,000, money that we have now extracted from the poison-pushers who grievously damage our communities," said US Attorney Drew Wrigley, "and we remain in hot pursuit of others."
Grand jury Indictments are allegations and are not evidence of guilt. The defendant is presumed innocent unless and until he is proven guilt beyond a reasonable doubt at trial.
This case is being investigated by the Ward County Narcotics Task Force, MHA Drug Enforcement and Homeland Security Investigation, and the case is being prosecuted by the United States Attorney’s office, with Assistant United States Attorney Jeremy A. Ensrud assigned to the case.
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U.S. Attorney John H. Durham Congratulates 3 AUSAs Nominated to be Connecticut Superior Court JudgesRead the Press Release
“I heartily congratulate Michael Gustafson, Gordon Hall and Ndidi Moses on being nominated by Governor Lamont for judgeships on the Connecticut Superior Court. These nominations speak to the hard work, superior legal skills and professionalism that these colleagues have displayed over their entire legal careers, and especially during their time as Assistant United States Attorneys. While the departures of Mike, Gordy and Ndidi will create a big hole in our office’s operations, and their wisdom and guidance will be sorely missed, their elevation to the bench greatly benefits the people of Connecticut and the Rule of Law.”
Two Mexican Citizens Sentenced for Robbery SpreeRead the Press Release
KNOXVILLE, Tenn. – On February 3, 2021, Juan Sanchez, 24, a citizen of Mexico, was sentenced by the Honorable Thomas A. Varlan, in the United States District Court for the Eastern District of Tennessee at Knoxville. Emanuel Trejo, 22, also of Mexico, Sanchez’s co-defendant, was sentenced on November 12, 2020 by the Honorable Thomas A. Varlan.
As part of their plea agreements, Juan Sanchez and Emmanuel Trejo agreed to plead guilty to an indictment charging them with three counts of Hobbs Act Robbery and three counts of brandishing and discharging a firearm in relation to those robberies. Juan Sanchez was sentenced to 288 months in prison. Emmanuel Trejo was sentenced to 192 months in prison. Both Sanchez and Trejo are subject to deportation following their terms of incarceration.
The federal Hobbs Act Robbery statute encompasses robberies of businesses or people engaged in interstate commerce. Sanchez and Trejo committed three armed robberies of three businesses in Knox, Loudon and Blount Counties in 2019.
One of those robberies was of the La Lupita store in Maryville, Tennessee. During that robbery, Sanchez fired multiple shots from his firearm. Fortunately, no one was injured.
“The lengthy sentence in this case strongly reflects the continued positive impact our federal, state, and local law enforcement partnerships have on stopping and prosecuting armed robberies within our communities. Our office will continue to aggressively prosecute those who commit armed robbery,” said U.S. Attorney J. Douglas Overbey.
This robbery had a major impact on the family who owns La Lupita as well as the customers who shop there, "Sheriff James Lee Berrong said. "Mr. Sanchez and Mr. Trejo committed a violent crime against citizen of our community, and our investigators took that to heart and worked extremely hard to solve this case. We are grateful to the FBI for taking the case to the federal level, equating to stiffer penalties. We are also proud of our working relationships with law enforcement agencies at all levels of government, and thankful our partnership worked so well in this case."
The criminal indictment was the result of an investigation by the Blount Count Sherriff’s Department and Federal Bureau of Investigation’s Safe Streets Task Force. This investigation was led by FBI Special Agent Wesley Latham.
Assistant United States Attorney Cynthia F. Davidson represented the United States.
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Turtle Mountain Indian Reservation Man sentenced to 30 years in Federal Prison for Aggravated Sexual Abuse of a Minor ChildRead the Press Release
Fargo – United States Attorney Drew Wrigley announced that U.S. District Court Chief Judge Peter D. Welte has sentenced Roger Ricky Counts, age 52 of Dunseith, ND, to 30 years in federal prison for Aggravated Sexual Abuse, 18 USC 2241(c). Judge Welte also sentenced Counts to lifetime supervised release and $100 in special assessment fees.
In July 2017, the Federal Bureau of Investigation (FBI) began investigating Roger Counts for the sexual abuse of minors after an eight year old child disclosed that Counts had sexually abused the child. Counts was serving as foster parent for the victim at the time the abuse occurred, and had served as a foster parent for other children in the Turtle Mountain community. A jury found Counts guilty of aggravated sexual abuse of a child on February 14, 2020.
"The defendant’s horrifying conduct was magnified by his abuse of the trust placed in him as a foster parent," said United States Attorney Drew Wrigley, "and the child victim was courageous to come forward and share the truth about these crimes so that justice could be served."
This case was investigated by the FBI and the Bureau of Indian Affairs (BIA), and was prosecuted by Assistant United States Attorney Matthew Greenley.
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Three North Korean Military Hackers Indicted in Wide-Ranging Scheme to Commit Cyberattacks and Financial Crimes Across the GlobeRead the Press Release
Note: Audio and Transcript of the February 17, 2021 press call is available on our videos page.
A federal indictment unsealed today charges three North Korean computer programmers with participating in a wide-ranging criminal conspiracy to conduct a series of destructive cyberattacks, to steal and extort more than $1.3 billion of money and cryptocurrency from financial institutions and companies, to create and deploy multiple malicious cryptocurrency applications, and to develop and fraudulently market a blockchain platform.
A second case unsealed today revealed that a Canadian-American citizen has agreed to plead guilty in a money laundering scheme and admitted to being a high-level money launderer for multiple criminal schemes, including ATM “cash-out” operations and a cyber-enabled bank heist orchestrated by North Korean hackers.
“As laid out in today’s indictment, North Korea’s operatives, using keyboards rather than guns, stealing digital wallets of cryptocurrency instead of sacks of cash, are the world’s leading bank robbers,” said Assistant Attorney General John C. Demers of the Justice Department’s National Security Division. “The Department will continue to confront malicious nation state cyber activity with our unique tools and work with our fellow agencies and the family of norms abiding nations to do the same.”
“Today's unsealed indictment expands upon the FBI’s 2018 charges for the unprecedented cyberattacks conducted by the North Korean regime,” said the FBI Deputy Director Paul Abbate. “The ongoing targeting, compromise, and cyber-enabled theft by North Korea from global victims was met with the outstanding, persistent investigative efforts of the FBI in close collaboration with U.S. and international partners. By arresting facilitators, seizing funds, and charging those responsible for the hacking conspiracy, the FBI continues to impose consequences and hold North Korea accountable for its criminal cyber activity."
“The scope of the criminal conduct by the North Korean hackers was extensive and long-running, and the range of crimes they have committed is staggering,” said Acting U.S. Attorney Tracy L. Wilkison for the Central District of California. “The conduct detailed in the indictment are the acts of a criminal nation-state that has stopped at nothing to extract revenge and obtain money to prop up its regime.”
“This case is a particularly striking example of the growing alliance between officials within some national governments and highly sophisticated cyber-criminals,” said U.S. Secret Service Assistant Director Michael R. D’Ambrosio. “The individuals indicted today committed a truly unprecedented range of financial and cyber-crimes: from ransomware attacks and phishing campaigns, to digital bank heists and sophisticated money laundering operations. With victims strewn across the globe, this case shows yet again that the challenge of cybercrime is, and will continue to be, a struggle that can only be won through partnerships, perseverance, and a relentless focus on holding criminals accountable.”
The hacking indictment filed in the U.S. District Court in Los Angeles alleges that Jon Chang Hyok (전창혁), 31; Kim Il (김일), 27; and Park Jin Hyok (박진혁), 36, were members of units of the Reconnaissance General Bureau (RGB), a military intelligence agency of the Democratic People’s Republic of Korea (DPRK), which engaged in criminal hacking. These North Korean military hacking units are known by multiple names in the cybersecurity community, including Lazarus Group and Advanced Persistent Threat 38 (APT38). Park was previously charged in a criminal complaint unsealed in September 2018.
The indictment alleges a broad array of criminal cyber activities undertaken by the conspiracy, in the United States and abroad, for revenge or financial gain. The schemes alleged include:
- Cyberattacks on the Entertainment Industry: The destructive cyberattack on Sony Pictures Entertainment in November 2014 in retaliation for “The Interview,” a movie that depicted a fictional assassination of the DPRK’s leader; the December 2014 targeting of AMC Theatres, which was scheduled to show the film; and a 2015 intrusion into Mammoth Screen, which was producing a fictional series involving a British nuclear scientist taken prisoner in DPRK.
- Cyber-Enabled Heists from Banks: Attempts from 2015 through 2019 to steal more than $1.2 billion from banks in Vietnam, Bangladesh, Taiwan, Mexico, Malta, and Africa by hacking the banks’ computer networks and sending fraudulent Society for Worldwide Interbank Financial Telecommunication (SWIFT) messages.
- Cyber-Enabled ATM Cash-Out Thefts: Thefts through ATM cash-out schemes – referred to by the U.S. government as “FASTCash” – including the October 2018 theft of $6.1 million from BankIslami Pakistan Limited (BankIslami).
- Ransomware and Cyber-Enabled Extortion: Creation of the destructive WannaCry 2.0 ransomware in May 2017, and the extortion and attempted extortion of victim companies from 2017 through 2020 involving the theft of sensitive data and deployment of other ransomware.
- Creation and Deployment of Malicious Cryptocurrency Applications: Development of multiple malicious cryptocurrency applications from March 2018 through at least September 2020 – including Celas Trade Pro, WorldBit-Bot, iCryptoFx, Union Crypto Trader, Kupay Wallet, CoinGo Trade, Dorusio, CryptoNeuro Trader, and Ants2Whale – which would provide the North Korean hackers a backdoor into the victims’ computers.
- Targeting of Cryptocurrency Companies and Theft of Cryptocurrency: Targeting of hundreds of cryptocurrency companies and the theft of tens of millions of dollars’ worth of cryptocurrency, including $75 million from a Slovenian cryptocurrency company in December 2017; $24.9 million from an Indonesian cryptocurrency company in September 2018; and $11.8 million from a financial services company in New York in August 2020 in which the hackers used the malicious CryptoNeuro Trader application as a backdoor.
- Spear-Phishing Campaigns: Multiple spear-phishing campaigns from March 2016 through February 2020 that targeted employees of United States cleared defense contractors, energy companies, aerospace companies, technology companies, the U.S.Department of State, and the U.S. Department of Defense.
- Marine Chain Token and Initial Coin Offering: Development and marketing in 2017 and 2018 of the Marine Chain Token to enable investors to purchase fractional ownership interests in marine shipping vessels, supported by a blockchain, which would allow the DPRK to secretly obtain funds from investors, control interests in marine shipping vessels, and evade U.S. sanctions.
According to the allegations contained in the hacking indictment, which was filed on Dec. 8, 2020, in the U.S. District Court in Los Angeles and unsealed today, the three defendants were members of units of the RGB who were at times stationed by the North Korean government in other countries, including China and Russia. While these defendants were part of RGB units that have been referred to by cybersecurity researchers as Lazarus Group and APT38, the indictment alleges that these groups engaged in a single conspiracy to cause damage, steal data and money, and otherwise further the strategic and financial interests of the DPRK government and its leader, Kim Jong Un.
Money Launderer Charged in California and Georgia
Federal prosecutors today also unsealed a charge against Ghaleb Alaumary, 37, of Mississauga, Ontario, Canada, for his role as a money launderer for the North Korean conspiracy, among other criminal schemes. Alaumary agreed to plead guilty to the charge, which was filed in the U.S. District Court in Los Angeles on Nov. 17, 2020. Alaumary was a prolific money launderer for hackers engaged in ATM cash-out schemes, cyber-enabled bank heists, business email compromise (BEC) schemes, and other online fraud schemes. Alaumary is also being prosecuted for his involvement in a separate BEC scheme by the U.S. Attorney’s Office for the Southern District of Georgia.
With respect to the North Korean co-conspirators’ activities, Alaumary organized teams of co-conspirators in the United States and Canada to launder millions of dollars obtained through ATM cash-out operations, including from BankIslami and a bank in India in 2018. Alaumary also conspired with Ramon Olorunwa Abbas, aka “Ray Hushpuppi,” and others to launder funds from a North Korean-perpetrated cyber-enabled heist from a Maltese bank in February 2019. Last summer, the U.S. Attorney’s Office in Los Angeles charged Abbas in a separate case alleging that he conspired to launder hundreds of millions of dollars from BEC frauds and other scams.
Accompanying Mitigation Efforts
Throughout the investigation, the FBI and the Justice Department provided specific information to victims about how they had been targeted or compromised, as well as information about the tactics, techniques, and procedures (TTPs) used by the hackers with the goals of remediating any intrusion and preventing future intrusions. That direct sharing of information took place in the United States and in foreign countries, often with the assistance of foreign law enforcement partners. The FBI also collaborated with certain private cybersecurity companies by sharing and analyzing information about the intrusion TTPs used by the members of the conspiracy.
In addition to the criminal charges, the FBI and the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency, in collaboration with the U.S. Department of Treasury, today released a joint cybersecurity advisory and malware analysis reports (MARs) regarding North Korean cryptocurrency malware. The joint cybersecurity analysis and MARs highlight the cyber threat North Korea – which is referred to by the U.S. government as HIDDEN COBRA – poses to cryptocurrency and identify malware and indicators of compromise related to the “AppleJeus” family of malware (the name given by the cybersecurity community to a family of North Korean malicious cryptocurrency applications that includes Celas Trade Pro, WorldBit-Bot, Union Crypto Trader, Kupay Wallet, CoinGo Trade, Dorusio, CryptoNeuro Trader, and Ants2Whale). The joint cybersecurity advisory and MARs collectively provide the cybersecurity community and public with information about identifying North Korean malicious cryptocurrency applications, avoiding intrusions, and remedying infections.
The U.S. Attorney’s Office and FBI also obtained seizure warrants authorizing the FBI to seize cryptocurrency stolen by the North Korean hackers from a victim in the indictment – a financial services company in New York – held at two cryptocurrency exchanges. The seizures include sums of multiple cryptocurrencies totaling approximately $1.9 million, which will ultimately be returned to the victim.
Jon, Kim, and Park are charged with one count of conspiracy to commit computer fraud and abuse, which carries a maximum sentence of five years in prison, and one count of conspiracy to commit wire fraud and bank fraud, which carries a maximum sentence of 30 years in prison.
In relation to the case filed in Los Angeles, Alaumary has agreed to plead guilty to one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.
The charges contained in the indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
The investigation of Jon, Kim, and Park was led by the FBI’s Los Angeles Field Office, which worked closely with the FBI’s Charlotte Field Office. The U.S. Secret Service’s Los Angeles Field Office and Global Investigative Operations Center provided substantial assistance. The FBI’s Cyber Division also provided substantial assistance.
The investigations of Alaumary were conducted by the U.S. Secret Service’s Savannah Field Office, FBI’s Los Angeles Field Office, and the U.S. Secret Service’s Los Angeles Field Office and Global Investigative Operations Center. The FBI’s Criminal Investigative Division also provided substantial assistance.
The case against Jon, Kim, and Park is being prosecuted by Assistant U.S. Attorneys Anil J. Antony and Khaldoun Shobaki of the Cyber and Intellectual Property Crimes Section, with substantial assistance from Trial Attorney Scott Claffee of the Department of Justice National Security Division’s Counterintelligence and Export Control Section.
Assistant U.S. Attorneys Antony and Shobaki are also prosecuting the case against Alaumary, in which the U.S. Attorney’s Office for the Southern District of Georgia and the Criminal Division’s Computer Crimes and Intellectual Property Section (CCIPS) provided substantial assistance. Assistant U.S. Attorneys Antony and Shobaki, along with Assistant U.S. Attorney Jonathan Galatzan of the Asset Forfeiture Section, also obtained the seizure warrants for cryptocurrency stolen from the financial services company in New York.
The Criminal Division’s Office of International Affairs provided assistance throughout these investigations, as did many of the FBI’s Legal Attachés, as well as foreign authorities around the world. Numerous victims cooperated and provided valuable assistance.
Thai Woman Extradited to U.S., Indicted for Role in International Sex Trafficking ConspiracyRead the Press Release
United States Attorney Erica H. MacDonald today announced the extradition and indictment of SUMALEE INTARATHONG, 59, for her role in an international Thai sex trafficking organization. The 10-count superseding indictment charges INTARATHONG with conspiracy, human trafficking violations, and visa fraud. Thirty-six co-defendants have been charged and convicted for their roles in the conspiracy. On February 16, 2021, INTARATHONG made her initial appearance before Magistrate Judge Elizabeth Cowan Wright and was ordered to remain in detention pending further proceedings.
According to allegations in the superseding indictment and documents filed in court, the criminal organization compelled hundreds of women from Bangkok, Thailand, to engage in commercial sex acts in various cities across the United States. Before her arrest in Belgium on August 5, 2016, INTARATHONG served as a boss/trafficker for the organization. Each trafficked victim was “owned” by INTARATHONG or another boss/trafficker, until the victim could repay an exorbitant “bondage debt” of between $40,000 and $60,000. INTARATHONG and other co-conspirators arranged for victims to travel from Thailand to the United States and placed the victims in a house of prostitution somewhere in the United States.
According to allegations in the superseding indictment and documents filed in court, INTARATHONG and other co-conspirators in the organization engaged in widespread visa fraud to facilitate the international transportation of the victims. Members of the criminal organization assisted the victims in obtaining fraudulent visas and travel documents. As a part of obtaining visa documents, members of the criminal conspiracy gathered personal information from the victims, including the location of the victims’ families in Thailand. This information was later used to threaten victims who became non-compliant or tried to flee the organization in the United States.
According to allegations in the superseding indictment and documents filed in court, the organization dealt primarily in cash and engaged in rampant and sophisticated money laundering in order to promote and conceal illegal profits. Throughout the course of the conspiracy the criminal organization has moved tens of millions of dollars in illegal proceeds from the United States to Thailand and elsewhere.
This case is the result of an investigation conducted by Homeland Security Investigations, Criminal Investigation Division of the IRS, Diplomatic Security Service, St. Paul Police Department, Anoka County Sheriff’s Office and Cook County (Illinois) Sheriff’s Office, with the support of the International Organized Crime Intelligence and Operations Center (IOC-2). The Justice Department’s Office of International Affairs provided critical assistance in securing the defendant’s extradition from Belgium.
Assistant U.S. Attorneys Melinda Williams and Laura Provinzino are prosecuting the case with the assistance of the DOJ Civil Rights Division’s Human Trafficking Prosecution Unit and the Money Laundering and Asset Recovery Section.
The charges contained in the superseding indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
SUMALEE INTARATHONG, 59
Citizen of Thailand
Charges:
- Conspiracy to commit sex trafficking, 1 count
- Sex trafficking by use of force, fraud, and coercion, 1 count
- Conspiracy to commit forced labor, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
- Conspiracy to commit visa fraud, 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Statement from U.S. Attorney Andrew E. Lelling on Release of John ConnollyRead the Press Release
“It is not unusual for an inmate who is terminally ill and deemed no longer a threat to society to be released to home confinement. While the damage caused by John Connolly’s corrupt relationship with James Bulger and others can never be forgiven, and Connolly has been shown compassion and consideration that his victims were not, we agree with the sentiments of Mary and Patrick Callahan that Connolly should be permitted to die at home with his friends and family.”
Spring Lake Man Sentenced to More Than 13 Years for Distribution of Child PornographyRead the Press Release
WILMINGTON, N.C. – A Spring Lake man was sentenced today to 160 months in prison for Distribution of Child Pornography.
According to court documents, agents with the Department of Homeland Security received a cyber tip regarding suspected child pornography that had been uploaded to Kik, a social media messaging app, from the address at which Donald Gregory Hoggard, 40, lived. A search warrant was executed at the residence on October 8, 2019. Hoggard was present and admitted that he had an account with Kik. Hoggard admitted to posting and trading child pornography images on that social media app and admitted to having a Dropbox account which contained child sexual exploitation images and videos. A forensic analysis was performed on Hoggard’s digital devices and Dropbox account. Hoggard had hundreds of images and videos containing child pornography, some of which included the sexual abuse of infants or toddlers.
At the time of the execution of the search warrant, Hoggard was attending Fayetteville State University and was majoring in Education. He had been a substitute teacher in Cumberland County from 2016-2018.
“Every image, every depiction of child exploitation victimizes a vulnerable child. These are among the most despicable and base crimes we are tasked with prosecuting. But we take on these matters to protect these vulnerable victims and to bring these predators to justice,” said the United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr. “We are grateful for the sentence imposed by the Court today. And I would like to commend the dedicated law enforcement officers at the federal, state, and local level who have partnered to achieve today’s results. We are all safer because of their commitment to this work.”
“This sentencing not only removes a serial predator from our community, it also sends a message to others engaged in this filth that we are serious about finding, arresting and prosecuting them,” said acting Special Agent in Charge Ronnie Martinez, who oversees Homeland Security Investigations (HSI) operations in North Carolina. “Thanks to some hard work and the great partnerships we have with our law enforcement and community partners, this community can rest easier knowing this monster is no longer free.”
Robert J. Higdon, Jr., 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. Homeland Security Investigations, Harnett County Sheriff’s Office, Cary Police Department, State Bureau of Investigation and United States Marshals investigated the case and Assistant U.S. Attorney Charity Wilson, AUSA prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-cr-00247-M-1.
Somerset County Man Charged with Possessing MethRead the Press Release
JOHNSTOWN, Pa. -- A resident of Listie, PA, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Terrell Robison Ickes, 31, as the sole defendant.
According to Indictment presented to the court, from on or about June 23, 2020 to on or about July 3, 2020, Ickes knowingly, intentionally, and unlawfully, possessed with intent to distribute 50 grams or more of methamphetamine and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine.
The law provides for a maximum total sentence of life in prison, a fine of $10,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Arnold P. Bernard Jr. is prosecuting this case on behalf of the government.
The Somerset County Detectives and the Drug Enforcement Administration 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.
Six Defendants Arrested in Multiple States for Laundering Proceeds from Fraud Schemes Targeting Victims Across the United States Perpetrated by Ghana-Based Criminal EnterpriseRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Jonathan D. Larsen, Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced the arrests of FAROUK APPIEDU, FRED ASANTE, CELVIN FREEMAN, LORD ANING, SADICK EDUSEI KISSI, and FAISAL ALI, a/k/a “Clarence Graveley,” for charges in connection with their roles in a fraud and money laundering conspiracy based in the Republic of Ghana (“Ghana”) involving the theft of tens of millions of dollars. FREEMAN and ALI were arrested earlier today in New Jersey and will be presented in Manhattan federal court later today. ASANTE and ANING were arrested earlier today in Virginia and will be presented in the United States District Court for the Eastern District of Virginia in Alexandria, Virginia. APPIEDU was previously arrested in Queens, New York on October 18, 2020. KISSI was previously arrested in Fargo, North Dakota on February 5, 2020.
Manhattan U.S. Attorney Audrey Strauss said: “The fraud schemes alleged that these defendants facilitated were lucrative, diverse, and most of all, callous. As alleged, they engaged in email spoofing, duping elderly online daters into wiring them money, and applying for government-funded Coronavirus relief funds earmarked for the benefit of small businesses affected by the pandemic. Thanks to the determination of the IRS and FBI, these defendants face serious prison time, and their next online profiles could potentially appear in a place where they’ll be unable to catfish anymore – the website for the Bureau of Prisons.”
FBI Assistant Director William F. Sweeney Jr. said: “The scams we allege in this investigation include romance scams targeting the elderly, business e-mail compromise scams, and even fraudulent COVID-19 relief loans. In many of these and similar fraud cases, victims are reluctant to come forward because they fear embarrassment or reputational damage. Some may even believe the perpetrators are beyond our reach because they often live abroad. These arrests and indictments should serve as a reminder that the FBI and our law enforcement partners are here to help you and bring these bands of criminals to justice.”
IRS-CI Special Agent in Charge Jonathan D. Larsen said: “The arrests of the alleged ringleaders of this more than $50 million scheme today dealt a death blow to the vast criminal activity in which the defendants were engaged, including elderly scams, COVID-19 fraud, money laundering, among others. IRS Criminal Investigation will continue to aggressively pursue those who profit from illegal activity and ensure they are brought to justice.”
According to allegations in the indictments filed against APPIEDU, ASANTE, FREEMAN, ANING, and KISSI, a criminal complaint filed against ALI, and other court documents[1]:
From at least in or about 2013 through at least in or about 2020, the defendants were members of a criminal enterprise (the “Enterprise”) based in Ghana that committed a series of business email compromises and romance scams against individuals and businesses located across the United States, including in the Southern District of New York. The frauds perpetrated by the Enterprise have consisted of, among other frauds, business email compromises, romance scams, and fraud schemes related to the novel coronavirus/COVID-19 pandemic. First, the objective of the Enterprise’s business email compromise fraud scheme was to trick and deceive businesses into wiring funds into accounts controlled by the Enterprise through the use of email accounts that “spoofed” or impersonated employees of a victim company or third parties engaged in business with a victim company. Second, the Enterprise conducted the romance scams by using electronic messages sent via email, text messaging, or online dating websites that deluded victims, many of whom were vulnerable older men and women who lived alone, into believing the victim was in a romantic relationship with a fake identity assumed by members of the Enterprise. Once members of the Enterprise had gained the trust of the victims using the fake identity, they used false pretenses to cause the victims to wire money to bank accounts the victims believed were controlled by their romantic interests, when in fact the bank accounts were controlled by members of the Enterprise. Finally, the Enterprise submitted fraudulent loan applications through a loan program of the United States Small Business Administration (the “SBA”) designed to provide relief to small businesses during the COVID-19 pandemic, namely the Economic Injury Disaster Loan (“EIDL”) Program. The Enterprise submitted fraudulent EIDL applications in the names of actual companies to the SBA and when an EIDL loan was approved, the funds were ultimately deposited in bank accounts controlled by members of the Enterprise, including certain of the defendants.
APPIEDU, ASANTE, FREEMAN, and ANING received fraud proceeds from victims of the Enterprise in dozens of business bank accounts that they controlled in New York, New Jersey, and Virginia. The business bank accounts were opened in the names of companies formed by the defendants that were purportedly involved in, among other things, automobile sales, food imports and exports, and freight trucking and shipping. Once APPIEDU, ASANTE, FREEMAN, and ANING received fraud proceeds in bank accounts under their control, they withdrew, transported, and laundered those fraud proceeds to other members of the Enterprise abroad. The defendants primarily laundered the fraud proceeds through their businesses by using the proceeds to purchase automobiles, food products, and other goods from U.S.-based suppliers and distributors of such products and shipping those products to Ghana and elsewhere. The defendants’ transactions had the appearance of legitimate business transactions when, in fact, the products had been purchased using the proceeds of fraud schemes. This trade-based money laundering scheme was designed to obscure the origin of the fraud proceeds as well as the identity of the ultimate beneficiaries of these schemes.
Collectively, from in or about 2013 through at least in or about 2020, APPIEDU, ASANTE, FREEMAN, and ANING controlled more than 45 bank accounts that had deposits that totaled over approximately $55 million during that time period. A vast majority of the deposits consisted of large wire transfers and check or cash deposits from various U.S.-based individuals and entities that were victims of fraud schemes of the Enterprise, or payments for vehicles, food products, and other goods sold by the defendants that were purchased using fraud proceeds. As part of the investigation of APPIEDU, the Government has seized and is seeking the forfeiture of four luxury cars purchased, at least in part, with fraud proceeds, including two 2019 Rolls Royce Cullinans, a 2020 Bentley Continental GT, and one 2020 Mercedes-Benz G63 AMG.
KISSI received fraud proceeds from victims of the Enterprise in bank accounts that he controlled that were located in the Bronx, New York and elsewhere. Once he received the fraud proceeds in bank accounts under his control, KISSI withdrew, transported, and laundered those fraud proceeds to other members of the Enterprise located in Ghana.
ALI received fraud proceeds from victims of the Enterprise into a series of at least thirteen bank accounts at six different banks, which ALI controlled in the Bronx, New York. ALI used the name and identity of another person to open several of these bank accounts in order to conceal the proceeds of the fraud scheme. Once ALI received the fraud proceeds in bank accounts under his control, he withdrew, transported, and laundered those fraud proceeds to other members of the Enterprise.
* * *
FAROUK APPIEDU, 35, of the Bronx, New York, FRED ASANTE, 35, of Fredericksburg, Virginia, CELVIN FREEMAN, 47, of East Orange, New Jersey, and LORD ANING, 28, of Woodbridge, Virginia, were each charged in Indictment No. 21 Cr. 88 with one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of conspiracy to commit money laundering, which each carry a maximum sentence of 20 years in prison; one count of conspiracy to receive stolen money, which carries a maximum sentence of five years in prison; and one count of receipt of stolen money, which carries a maximum sentence of 10 years in prison. The case against APPIEDU, ASANTE, FREEMAN, and ANING is assigned to U.S. District Judge Jed S. Rakoff.
SADICK EDUSEI KISSI, 24, of Dickinson, North Dakota, was charged in Indictment No. 21 Cr. 64 with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering, which each carry a maximum sentence of 20 years in prison; one count of conspiracy to receive stolen money, which carries a maximum sentence of five years in prison; and one count of receipt of stolen money, which carries a maximum sentence of 10 years in prison. The case against KISSI is assigned to U.S. District Judge Paul A. Crotty.
FAISAL ALI, a/k/a “Clarence Graveley,” 34, of Orange, New Jersey, was charged in a criminal complaint with one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison; one count of making false statements to a bank, which carries a maximum sentence of 30 years in prison; one count of conspiracy to receive stolen money, which carries a maximum sentence of five years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison to be served consecutively to any other sentence imposed.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the FBI and IRS-CI. Ms. Strauss also thanked U.S. Customs and Border Protection, Homeland Security investigations, the Office of the Inspector General of the U.S. Department of Justice, FBI Field Offices in Washington, D.C., Newark, New Jersey, Fredericksburg, Virginia, and Fargo, North Dakota, U.S. Attorney’s Office for the Eastern District of Virginia, the Virginia State Police, the police departments of Fredericksburg, Arlington, and Prince William County, Virginia, and the Sheriff’s Office of Stafford County, Virginia for their assistance in the investigation of this case.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Sagar K. Ravi and Mitzi Steiner are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the Complaint and Indictment and the description of the Complaint and Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
San Jose Man Pleads Guilty to Computer Hack That Shut Down Opening Day Concession Sales at San Jose Earthquakes StadiumRead the Press Release
SAN JOSE - Salvatore A. La Rosa pleaded guilty today in federal court in San Jose to intentional damage to a protected computer, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair.
La Rosa, 41, of San Jose, admitted in his guilty plea to intentionally accessing Spectra Food Services and Hospitality’s (Spectra) on-line concessions management account for the Earthquakes Stadium without permission on February 29, 2020. The Earthquakes Stadium is home to the San Jose Earthquakes, a Major League Soccer team, and their first home game of the 2020 season was February 29, 2020. Spectra, headquartered in Philadelphia, Pennsylvania, was the concessions contractor for the stadium, and employees used Spectra’s mobile tablets as their Point-of-Sale terminals to sell food and other concession items. The tablets displayed menus and payment selections from an online-based application developed for sports stadiums.
La Rosa admitted in his plea agreement that he was a former employee of Spectra and worked at the stadium from February 14, 2015, until his termination on January 6, 2020. He admitted that he thereafter logged into the administrative port for the Earthquakes Stadium from his residence and used a password, without authority, to access Spectra’s concession menu and payment selections. During his unauthorized access, he intentionally deleted Spectra’s concession menu and payment selections. This act caused all of the Point-of-Sale tablets used by Spectra’s staff to stop working. Spectra’s ability to accept credit cards was also disabled. During the soccer match on February 29, 2020, Spectra’s staff had to resort to handwriting orders and using calculators to complete cash transactions, with the resulting delay leading to lost sales and verbal abuse from customers. In some instances, Spectra had to provide free food and beverages to club members because of its inability to process credit card transactions.
On March 7, 2020, Spectra and the San Jose Earthquakes, in an attempt to regain the trust and business of customers, offered a fifty-percent discount on all concessions at that day’s game.
According to the charging document filed in the case, Spectra suffered a loss of over $268,000 in damages, consisting of lost revenue, concession discounts offered at the March 7 game, employee time to repair the damage to the data, and labor costs.
“Once a computer hack has been discovered, it is critically important for business leaders to report the intrusion promptly and to cooperate fully with law enforcement,” said U.S. Attorney Anderson. “I want to thank Spectra and the San Jose Earthquakes for their good corporate citizenship. La Rosa’s conviction follows their prompt reporting and effective cooperation.”
“Insider threats can be incredibly damaging to companies, their data, and intellectual property even after an individual is no longer employed by the company,” said FBI San Francisco Special Agent in Charge Craig Fair. “It is important that companies take the necessary steps to ensure that the security of their networks and operations remain intact and that they are only available to those with authorized access."
On October 27, 2020, La Rosa was charged by Information with one count of Intentional Damage to a Protected Computer, in violation of 18 U.S.C. §§ 1030(a)(5)(A) and (c)(4)(B)(i). Under the plea agreement, La Rosa pled guilty to the sole count of the Information. La Rosa remains out of custody on bond.
La Rosa’s sentencing hearing is scheduled for 9:15 a.m. on May 19, 2021, before United States District Judge Lucy H. Koh in San Jose. The maximum statutory penalty for each count in violation of Intentional Damage to a Protected Computer, in violation of 18 U.S.C. §§ 1030(a)(5)(A) and (c)(4)(B)(i), is ten years imprisonment and a fine of $25,000, plus restitution if appropriate. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Susan Knight is the Assistant U.S. Attorney who is prosecuting the case with the assistance of legal tech Elise Etter and paralegal Rebecca Shelton. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Robber and attempted murderer receives life sentenceRead the Press Release
ATLANTA - Dravion Sanchez Ware, who shot a woman in the back at point-blank range as she trembled on the floor during one of his robberies, has been sentenced to life in federal prison for the robberies of nine Asian owned-and-operated businesses in Atlanta, Doraville, Duluth, Roswell, Stone Mountain, and Norcross between October and November 2017.
“Ware terrorized the victims of these robberies and nearly killed one woman,” said Acting U.S. Attorney Kurt R. Erskine. “The complete disregard for the lives of his victims was shocking, and he received an appropriate sentence. We hope this provides some peace to the victims by ensuring that Ware will never again terrorize the communities of our district.”
This sentence is a statement that anyone who carries out such evil and inflicts such trauma on innocent citizens has no right to be in our communities,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The sentence will not erase the traumatic scars his crimes left behind, but hopefully his victims can rest easier knowing Ware will not traumatize them or anyone else for the rest of his life.”
“The GBI Crime Lab was instrumental in this case. Expert analysis and testimony helped lead to a successful prosecution. The GBI is committed to provide the highest quality forensic services in all cases. For over a month, these gang members targeted and terrorized the Asian business community. This sentence is evidence that this behavior will not be tolerated in the state of Georgia,” said Vic Reynolds, Director, Georgia Bureau of Investigation.
“Ware and Smith are indicative of the criminals who terrorize our communities and make them unsafe. Each day we put on our uniforms and put our lives on the line to fight crime, investigate cases like these, and do what it takes to keep our communities safe. When the courts convict these perpetrators, we are all vindicated. This news empowers us to keep doing the work we were called to do.” Atlanta Interim Police Chief Rodney Bryant.
“Continued cooperation between multiple local, state and federal agencies produces results. Results that keep our communities and streets safe. People rarely see the many man hours that went into this investigation. Fortunately, they get to see the results,” said Chief Chuck Atkinson, Doraville Police Department.
“The successful outcome and sentencing of these cases is a testament of the importance of agencies working together. Unlike police departments, criminals are not bound by jurisdictional boundaries and these cases are proof that great things happen when agencies proactively share information, work together, and compare cases. The State of Georgia is now a safer place thanks to the cooperation between local, state, and federal partners that enabled the removal of these dangerous criminals from our communities. Although the victims of these crimes will forever be traumatized, we hope these sentences are the beginning of their journey to healing and recovery,” Chief Kenneth DeSimone, Sandy Springs Police Department.
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: Between October 7th and November 10, 2017, Ware and his fellow gunman, Tabyron Rashad Smith, targeted Asian-run businesses in Metro-Atlanta for armed robberies. Of the at least nine businesses they robbed, three were located in Atlanta, two in Doraville, and one each in Norcross, Duluth, Stone Mountain, and Roswell, Georgia.
During the robberies, Ware frequently pistol-whipped defenseless victims that did not resist him, sending at least one man to the hospital. Ware also shot three women, one of whom was kneeling on the floor face down at the time. Fortunately, all three women survived.
Smith and Ware were captured on November 21st and 22nd, 2017, respectively, after a multi-jurisdictional investigation.
- Dravion Sanchez Ware, 25, of Atlanta, Georgia, was sentenced by U.S. District Judge Timothy C. Batten, Sr. to serve five concurrent life terms in prison, plus six concurrent 20-year terms, as well as to pay restitution in the amount of $135,951.81. Ware was convicted by a jury on August 2, 2019, for conspiracy to commit Hobbs Act robberies, five counts of Hobbs Act robbery, and five counts of discharging or brandishing a firearm during the robberies.
- Tabyron Rashad Smith, 26, of Atlanta, Georgia, pleaded guilty on July 23, 2019, to one count of conspiracy to commit Hobbs Act robberies and four counts of discharging or brandishing a firearm during several of the robberies. Judge Batten sentenced Smith to serve 27 years in prison, followed by three years on supervised release and to pay restitution in the amount of $135,951.81.
This case was investigated by the Federal Bureau of Investigation, the Georgia Bureau of Investigation, the Doraville Police Department, the Fulton County Police Department, the Gwinnett County Police Department, the Atlanta Police Department, the Roswell Police Department, and the Sandy Springs Police Department.
Assistant U.S. Attorney Bret R. Hobson and former Assistant U.S. Attorney Timothy H. Lee prosecuted the case.
This case was brought as a part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
- Dravion Sanchez Ware, 25, of Atlanta, Georgia, was sentenced by U.S. District Judge Timothy C. Batten, Sr. to serve five concurrent life terms in prison, plus six concurrent 20-year terms, as well as to pay restitution in the amount of $135,951.81. Ware was convicted by a jury on August 2, 2019, for conspiracy to commit Hobbs Act robberies, five counts of Hobbs Act robbery, and five counts of discharging or brandishing a firearm during the robberies.
Pittsburgh Felon Charged with Illegal Gun PossessionRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Terrence Pasley, age 32, as the sole defendant.
According to the Indictment, on January 16, 2021, Pasley, a convicted felon, was in possession of a firearm. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm.
The law provides for a maximum total sentence of not more than ten (10) years in prison, a fine of $250,000 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 Nicole Ann Stockey is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and City of 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.
Owner of Queens Carting Company Pleads Guilty to Bribery SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, George Kalergios, the owner of several companies that operated in the New York City area, including Zeus Waste Management Inc. (“Zeus Waste Management”), a carting business in Queens, pleaded guilty via videoconference before United States District Judge Pamela K. Chen to bribery and conspiracy to commit bribery in connection with a scheme to secure waste management contracts from a local college. When sentenced, Kalergios faces up to 15 years’ imprisonment. In addition, Kalergios agreed to pay forfeiture in the amount of $110,955.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.
“The defendant’s bribery scheme deprived a local college of the honest services of its contractors and employees,” stated Acting United States Attorney DuCharme. “Today’s guilty plea demonstrates that those who engage in criminal corruption to enrich themselves at the expense of institutions in our communities will be held accountable.” Mr. DuCharme expressed his grateful appreciation to the United States Attorney’s Office for the District of Massachusetts, and the FBI, Boston Field Office, for their assistance on the case.
“Instead of providing the best possible services to his clients with no strings attached, Kalergios participated in a quid-pro-quo arrangement that served to advance his selfish interests. Corrupt behavior has no place in the business of honest services, and today’s guilty plea highlights that basic truth,” stated FBI Assistant Director-in-Charge Sweeney.
As set forth in public filings, in June 2018, Kalergios agreed to bribe the facilities director of a college located in New York City (“College”) to grant Zeus Waste Management the exclusive right to remove non-hazardous waste from the College’s campus. Specifically, Kalergios agreed to pay the facilities director 10 percent of any payments that the College made to Zeus Waste Management under any contracts directed to the company. In July 2018, the facilities director awarded a three-year contract to Zeus Waste Management that gave it the exclusive right to remove non-hazardous waste from the College’s campus. Between July 2018 and March 2019, pursuant to their agreement, Kalergios made multiple cash payments to the facilities director totaling approximately $11,095.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Robert Polemeni and Special Assistant United States Attorney Virginia Nguyen are in charge of the prosecution.
The Defendant:
GEORGE KALERGIOS
Age: 57
Queens, N.Y.E.D.N.Y. Docket No. 21-CR-34 (PKC)
Owner of North Carolina Sport Supplement Co. Sentenced to Prison TimeRead the Press Release
ABINGDON, Va.- Brian Parks, the former owner of a North Carolina sports supplement company that introduced an unapproved drug into interstate commerce, was sentenced today in U.S. District Court in Abingdon to 12 months and one day in federal prison, Acting United States Attorney Daniel P. Bubar and Assistant Commissioner for Criminal Investigations Catherine A. Hermsen, FDA Office of Criminal Investigations, announced today.
Parks, 47, of Apex, North Carolina, and MedFixRX, Inc, now known as MedFit Sarmacuticals Inc., a sport supplement company based in Cary, North Carolina, pleaded guilty in November 2020 to one count of distributing unapproved new drugs with the intent to mislead and defraud the FDA and consumers. In connection with his plea, Parks forfeited $250,000.
“When Parks marketed drugs masquerading as dietary supplements that had not been approved by the FDA, he sidestepped important safeguards to protect the public, and committed a serious crime,” said Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia. “Our office will continue to closely partner with FDA to ensure safety and effectiveness in our drug supply.”
“Sports supplements’ that are manufactured and distributed outside the FDA’s oversight and that contain unapproved and possibly toxic ingredients endanger the health of unsuspecting consumers,” said Assistant Commissioner for Criminal Investigations Catherine A. Hermsen, FDA Office of Criminal Investigations. “Today’s actions represent our continued commitment to pursuing and bringing to justice those who mislead the public and intentionally attempt to subvert the regulatory functions of the FDA through the distribution of unapproved and potentially dangerous products.”
Parks admitted that from approximately June 2017 to September 2019 he and his company unlawfully distributed Selective Androgen Receptor Modulators (“SARMs”) and other substances that the FDA has not approved, including Ostarine (MK-2866), Ligandrol (LGD-4033), and Testolone (RAD-140). SARMs are synthetic chemicals designed to mimic the effects of testosterone and other anabolic steroids. The FDA has long warned against the use of SARMs like those found in MedFit products, including stating in a publicly available 2017 warning letter to another firm that SARMs have been linked to life-threatening reactions including liver toxicity, and have the potential to increase the risk of heart attack and stroke.
In pleading guilty, Parks also admitted that he intended to mislead and defraud the FDA and consumers by omitting ingredients on MedFitRX product labels, falsely claiming MedFitRX was licensed and registered to sell these new drugs, importing raw drug ingredients with the intent to avoid regulatory scrutiny, and misrepresenting MedFitRX products as “dietary supplements” or “sports supplements” to create the impression that they were safe and legal to use.
Assistant United States Attorney Randy Ramseyer of the U.S. Attorney’s Office for the Western District of Virginia and Trial Attorney Speare Hodges of the Department of Justice Civil Division’s Consumer Protection Branch prosecuted the case. This matter was investigated by the Food and Drug Administration’s Office of Criminal Investigations.
Newark Woman Admits Possessing Stolen MailRead the Press Release
TRENTON, N.J. – An Essex County, New Jersey woman admitted to unlawfully possessing stolen mail in Hunterdon and Monmouth Counties, Acting U.S. Attorney Rachael A. Honig announced.
Michele Dearaujo, 37, of Newark, pleaded guilty by videoconference before U.S. District Judge Anne E. Thompson to two counts of unlawfully possessing stolen mail.
According to documents filed in this case and statements made in court:
On Oct. 14, 2020, a mailbox in Hunterdon County was tampered with in the early morning; the victim had been expecting replacement credit cards to be delivered by mail. The victim later learned the victim’s credit card had been fraudulently used to purchase merchandise worth hundreds of dollars. The merchandise was to be shipped to Dearaujo at her address.
The investigation revealed that Dearaujo had stolen mail from several residences in New Jersey. Dearaujo admitted that on Nov. 20, 2020, in Hunterdon County, and on January 25 2019, in Monmouth County, she unlawfully possessed mail which had been stolen, knowing that it had been stolen.
The counts of unlawful possession of stolen mail each carry a maximum penalty of five years of imprisonment and a $250,000 fine. Sentencing is scheduled for June 14, 2021.
Acting U.S. Attorney Honig credited postal inspectors of the U.S Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero, with the investigation leading to today’s guilty plea. She also thanked the Tewksbury Township Police Department, Rumson Police Department, Saddle River Police Department, Woodcliff Lake Police Department, Warren Township Police Department, Readington Township Police Department, and Clinton Township Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Katherine Calle of the U.S. Attorney’s Office OCDETF/Narcotics Unit.
New York Felon Sentenced to 15 Years in Prison for Possessing AmmunitionRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that Darrell Lowers, 39, of New York, was sentenced to 15 years in federal prison for being a felon in possession of ammunition.
Lowers previously pled guilty and admitted that on January 21, 2020, when officers with the Charleston Police Department were dispatched to a residence in response to a report of shots fired, he was detained inside the residence and .45 caliber Winchester ammunition was recovered from his truck. Lowers was on parole out of New York at the time he committed this offense. He has prior felony convictions for second degree burglary in 2013, third degree arson in 2011, and attempted second degree assault in 2007. These convictions all occurred in New York.
The case was investigated by the Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Nick Miller is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00118.
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Neenah Man Sentenced on Child Pornography ChargeRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on February 16, 2021, Jesse K. Bell (age: 32) of Neenah, Wisconsin, was sentenced to 38 months’ imprisonment for possession of child pornography.
In May of 2020, Bell was found with pornographic images of children under 12 years old on his cellular telephone. Bell subsequently pled guilty to one count of possession of child pornography, contrary to Title 18, United States Code, Section 2252A(5)(b).
In pronouncing sentence, Senior U.S. District Judge William C. Griesbach noted the serious nature of Bell’s crime, which victimized children. Judge Griesbach further highlighted the disturbing nature of the images, the need to deter Bell and others from engaging in similar behavior, and Bell’s previous criminal record. Following his release from prison, Bell will serve ten years on supervised release and will be required to register as a sexual offender under federal and state law.
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 U.S. Department of Justice. 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.projectsafechildhood.gov.
This case was investigated by the Neenah Police Department with the assistance of the Federal Bureau of Investigation and the Brown County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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For further information contact: Public Information Officer Kenneth Gales
[email protected], (414) 297-1700
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Monroeville Felon Charged with Violating Federal Drug and Firearms LawsRead the Press Release
PITTSBURGH - A resident of Monroeville, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The three-count Indictment named Shaquawn David Cole, age 25, as the sole defendant.
According to the Indictment, on December 11, 2020, Cole possessed a firearm during and in relation to a drug trafficking offense after having been convicted of a felony. The Indictment further alleges that on the same date, Cole possessed with intent to distribute a quantity of fentanyl, and of heroin and fentanyl.
The law provides for a maximum total sentence of life imprisonment, a fine not to exceed $1,500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Ira M. Karoll is prosecuting this case on behalf of the government.
The Allegheny County Police Department 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.
Mexican National Sentenced for Illegal Firearm Used in Drive-By ShootingRead the Press Release
KANSAS CITY, Mo. – A Mexican national was sentenced in federal court today for illegally possessing the firearm he used in a drive-by shooting.
Javier Guerrero-Garcia, 23, was sentenced by U.S. District Judge Greg Kays to eight years and six months in federal prison without parole.
On June 29, 2020, Guerrero-Garcia pleaded guilty to being an illegal alien in possession of a firearm. Guerrero-Garcia admitted that he fired a Glock .40-caliber semi-automatic handgun into a residence early in the morning of Nov. 19, 2017.
A Kansas City, Missouri, resident contacted police officers after Guerrero-Garcia fired multiple shots at her house at approximately 3:45 a.m. on Nov. 19, 2017. When the resident went outside she saw Guerrero-Garica’s red BMW driving away. Shortly thereafter, Guerrero-Garcia returned and fired more shots at her home and vehicles. Police officers arrived at the scene and learned that bullets had entered the home, and three vehicles had been struck by bullets.
About an hour later, Kansas City police officers conducted a traffic stop of the red BMW Guerrero-Garcia was driving. When he and two passengers got out of the vehicle, officers saw the Glock handgun as well as an extended magazine inside the vehicle. The handgun had been reported as stolen.
A forensic examination was performed on the .40-caliber shell casings recovered from the scene of the shooting and the Glock handgun recovered from the vehicle. This examination confirmed the .40-caliber shell casings recovered from the scene of the shooting were fired from the Glock handgun.
Guerrero-Garcia has a prior federal conviction in Kansas for being an illegal alien in possession of a firearm, for which he was sentenced in 2018 to 14 months in prison.
This case was prosecuted by Assistant U.S. Attorney Mary Kate Butterfield. It was investigated by the Kansas City, Mo., Police Department and Homeland Security Investigations.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Methamphetamine Dealer Sentenced to 8 Years in Federal Prison for Distribution of MethamphetamineRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Allen Lee Fullerton, age 51, of Spokane, Washington, was sentenced today after having pleaded guilty on November 19, 2020, to one count of Distribution of Methamphetamine. United States District Judge Thomas O. Rice sentenced Fullerton to an 8-year term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, Fullerton coordinated several deliveries of methamphetamine in July through September of 2019. Fullerton’s conduct involved a total of approximately 290 grams of methamphetamine. Fullerton avoided direct participation in many of the deliveries by directing an associate to make them on his behalf.
United States Attorney Hyslop said, “The United States Attorney’s Office for the Eastern District of Washington commends the law enforcement officers with the Idaho State Police, Coeur d’Alene Police Department, Spokane County Sheriff’s Office, and the Drug Enforcement Administration who investigated this case. Their seamless partnership resulted in the successful outcome of this matter. The sentence imposed by the court removes a drug trafficker from our streets and sends a clear message to others who may choose to engage in such criminal activity.”
This case was investigated by the Spokane Resident Office of the Drug Enforcement Administration, the Idaho State Police, Coeur d’Alene Police Department, and Spokane County Sheriff’s Office. This case was prosecuted by Timothy J. Ohms, an Assistant United States Attorney for the Eastern District of Washington.
Marshall County man sentenced for firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Roger Dale Bolen, of Moundsville, West Virginia, was sentenced today to 63 months of incarceration for a firearms charge, U.S. Attorney Bill Powell announced.
Bolen, age 42, pled guilty to one count of “Unlawful Possession of Firearm” in June 2020. Cochran, prohibited from having a firearm because of a prior felony conviction, admitted to having a .380 caliber pistol in August 2019 in Marshall County.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Marshall County Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Marshall County man admits to firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – John D. Freshwater, of Moundsville, West Virginia, has admitted to a firearms charge, U.S. Attorney Bill Powell announced.
Freshwater, 36, pleaded guilty today to one count of “Unlawful Possession of a Firearm and Ammunition.” Freshwater, a person prohibited from having firearms because of a prior conviction, admitted to having a 9mm pistol and 55 rounds of 9mm hollow point ammunition in January 2020 in Marshall County.
Freshwater faces up to 10 years of incarceration and a fine of up to $10,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Marshall County Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Maple Grove Investment Advisor Pleads Guilty to Defrauding Clients Out of More Than $2.2 MillionRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of ISAIAH LESLIE GOODMAN, 33, to one count of mail fraud. GOODMAN entered his guilty plea earlier today before Judge Susan Richard Nelson in U.S. District Court. GOODMAN is scheduled to be sentenced on June 29, 2021.
According to his guilty plea and documents filed with the court, GOODMAN was a registered investment advisor and broker who owned Becoming Financial Group, Inc., and Becoming Financial Advisory Services L.L.C. GOODMAN also owned and operated MoneyVerbs, a business that claimed to provide customers with financial guidance through an internet-based app. Through Becoming Financial Group, Inc., and Becoming Financial Advisory Services L.L.C., GOODMAN represented that he would provide his clients with financial planning and investment advice, including purporting to place his clients’ savings and retirement funds into financial accounts that GOODMAN claimed were safe, secure, and profitable.
According to his guilty plea and documents filed with the court, from at least 2017 through November 2020, GOODMAN defrauded at least 23 of his investor clients out of approximately $2,250,123. As part of his scheme to defraud, GOODMAN lied to prospective and existing clients about his use of their money, the security and profitability of the financial accounts he claimed to administer on their behalf, and the status and performance of their funds. During in-person sales pitches or through email messages and phone calls, GOODMAN provided clients with materially false and fraudulent information, including investment proposals and bogus online account information. GOODMAN also misrepresented to clients that their funds would be returned to them upon request, when, in fact, GOODMAN either kept all of the money or provided investors with refunded payments that were late, incomplete, or both, or that were refunds actually funded by other clients’ money.
According to his guilty plea and documents filed with the court, instead of placing his clients’ money into safe and secure investment accounts, GOODMAN deposited client funds into bank accounts he controlled. GOODMAN misappropriated his clients’ funds for his own use and benefit by, among other things, purchasing and remodeling his home in Maple Grove, using funds for the purchase and construction of a $1.69 million home in Plymouth, buying a 2019 Ford Expedition and a 2020 Ford Explorer, funneling approximately $700,000 toward his other business, MoneyVerbs, and paying for personal expenditures, including a hot tub, a cruise, fitness club memberships, jewelry, and credit card payments.
As part of the plea agreement, GOODMAN will forfeit to the United States his right, title, and interest in any property, which constitutes or is derived from proceeds traceable to his mail fraud scheme, including real property in Maple Grove and Plymouth, Minnesota, vehicles, and his interest in his MoneyVerbs business.
This case is the result of an investigation conducted by the FBI and the Minnesota Commerce Fraud Bureau.
Assistant U.S. Attorney Matthew S. Ebert is prosecuting the case.
Defendant Information:
ISAIAH LESLIE GOODMAN, 33
Maple Grove, Minn.
Convicted:
- Mail fraud, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Los Angeles Man Arrested, Charged with Defrauding Two Electronics BusinessesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Shola Yusuf Adediji a/k/a Michael Kopeck, 37, of Los Angeles, CA, with conspiracy to commit wire fraud, and wire fraud. The charges carry a maximum penalty of 20 years in prison.
Assistant U.S. Attorney Paul E. Bonanno, who is handling the case, stated that according to the indictment, between May and August 2019, the defendant conspired with others to defraud two electronics businesses (Business 1 and Business 2), one in Amherst, NY, and one in Fort Meyers, Florida, to obtain high-end electronic merchandise. Adediji and others posed as potential customers of the businesses and submitted fraudulent purchase orders. During the course of the scheme, Business 1 and Business 2 shipped merchandise to Adediji and others at various locations in the United States. The defendant used the fictitious name “Michael Kopeck” to rent a storage unit for the fraudulently obtained merchandise, which included 10 televisions 82-inch televisions.
The defendant will be arraigned today at 1:00 p.m. before U.S. Magistrate Judge H. Kenneth Schroeder, Jr.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Liquor Entrepreneur Arrested for Defrauding InvestorsRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”) announced that JOSEPH CIMINO, the founder of an Orange County-based tequila company, was arrested this morning and charged with securities fraud and wire fraud arising out of his fraudulent solicitation of investments for the company. CIMINO will be presented before United States Magistrate Judge Judith C. McCarthy in White Plains federal court later today.
U.S. Attorney Audrey Strauss said: “Joseph Cimino allegedly raised nearly $1 million in investor funds for his start-up tequila company by lying about the company’s finances, and then spent a significant portion of that money to finance his own lifestyle. Now Cimino faces the sobering reality of federal securities and wire fraud charges.”
FBI Assistant Director William F. Sweeney Jr. said: “Through falsely inflating capital, misleading investors, and lying about other aspects of his tequila company, Cimino, as alleged, raised nearly $1 million in furtherance of his fraudulent scheme. While his alleged illegal activity continued over a period of four years, today’s arrest has effectively shattered any hopes he may have had of continuing to scam innocent investors.”
According to the allegations contained in the Complaint[1] unsealed today in White Plains federal court:
From 2014 to 2018, CIMINO raised approximately $935,000 from at least 25 investors ostensibly to fund a tequila company that he founded (the “Tequila Company”). Throughout this period CIMINO made numerous false and misleading representations in an effort to attract and maintain investors. For example, in multiple communications with prospective investors, CIMINO falsely inflated the amount of capital that the Tequila Company had raised from other investors, and falsely represented that certain individuals were investors in the Tequila Company, when in reality they had not invested any funds. CIMINO also fabricated or falsely inflated the Tequila Company’s sales in a number of investor communications. In December 2015, CIMINO made statements in an email to a prospective investor falsely implying that the Tequila Company already had sales, when in fact, the company’s initial sales did not occur until 2017. In July 2017, CIMINO falsely represented in an investor report and quarterly profit and loss (“P&L”) statement that the Tequila Company’s year-to-date sales totaled 3,410 cases, when its actual sales totaled only 350 cases. Then, in October 2017, CIMINO falsely represented that the Tequila Company’s year-to-date sales totaled 6,035 cases, when its actual year-to-date sales totaled barely 20 percent of that number. CIMINO further claimed to investors in October 2017 that the Tequila Company would receive reimbursement for 800 cases of tequila that were supposedly destroyed at a distributor’s warehouse in Puerto Rico as a result of Hurricane Maria. That statement was a fabrication. In reality, the Tequila Company had no insurance and none of its inventory had been destroyed in the hurricane.
In addition to deceiving investors about the Tequila’s Company’s financial condition, CIMINO used investor money for personal expenses, including groceries, pet supplies, and personal entertainment. From 2014 to 2018, CIMINO transferred approximately $472,000 of investor money from the Tequila Company into his personal bank account, and used a significant portion of those deposits for personal living expenses, contrary to the operating agreements provided to investors.
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CIMINO, age 56, of Warwick, New York, is charged with one count of securities fraud and one count of wire fraud. Each charge 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 a judge.
Ms. Strauss praised the investigative work of the FBI Hudson Valley White Collar Crime Task Force and Orange County Sheriff’s Office. Ms. Strauss also thanked the Securities & Exchange Commission for its assistance in the investigation.
In a related case, the Securities & Exchange Commission brought a civil action today against CIMINO in U.S. District Court in White Plains.
The criminal case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Benjamin Gianforti and Daniel Loss are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations and every fact described should be treated as an allegation.
- Lexington Petty Offense Docket Cancelled
Kutztown Man Sentenced to 20 Years in Prison for Child Pornography OffensesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that John Joseph Krasley, 52, of Kutztown, PA, was sentenced to 20 years in prison, 10 years of supervised release, and ordered to pay $30,000 total in restitution to certain victims by United States District Court Judge Edward G. Smith for receiving, accessing, transporting, and distributing child pornography.
For more than five years, between March 2013 and June 2018, Krasley trafficked in child pornography. He communicated online at all times of the day and night with other child sex offenders, distributing horrific images of children being sexually abused, and maintaining an extensive collection of videos and images. Krasley also communicated with an undercover agent and distributed graphic images mostly depicting infants, but also toddlers and pre-pubescent boys, all of whom were being sexually abused. After an extended investigation by Homeland Security Investigations, the defendant was arrested and charged by Indictment with 14 counts of child exploitation offenses. In October 2019, the defendant was convicted after trial of all charges against him.
“Child sexual exploitation is appallingly pervasive, exacerbated by the easy availability of digital media and communications,” said Acting U.S. Attorney Williams. “Every video, every image, depicts a real victim, an innocent child who will feel the scars for a lifetime. These investigations are therefore so important, and every conviction makes the community safer for children everywhere. Thanks to the tireless efforts of the investigators on this case, Krasley’s years of exploiting the victimization of children online are over.”
“We stand ready to protect our community’s most valuable asset, our children,” said Brian A. Michael, Special Agent in Charge for Homeland Security Investigations Philadelphia. “Predators who possess and distribute child sexual abuse material re-victimize innocent and vulnerable children every time a photo or video is shared. Homeland Security Investigations special agents and our law enforcement partners will relentlessly pursue child predators, in every form, and ensure those who commit these atrocious crimes are brought to justice.”
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. 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.
The case was investigated by Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Albert S. Glenn.
Judge sentences former accounting clerk for defrauding the companyRead the Press Release
ST. LOUIS – United States District Judge Henry Autrey sentenced Stephanie Baker to 12 months and one day in prison along with restitution to the victims in the amount of $192,336.74 today. The 48-year-old O’Fallon, Missouri resident pleaded guilty, in October, to three counts of mail fraud related to her former position in the accounting department of Prairie Farms Dairy Supply Company.
Baker was an employee of Prairie Farms, working in that company’s accounting department. Baker’s duties and responsibilities included applying and allocating Prairie Farms customer payments to their customer accounts. As part of her duties, Baker would routinely receive checks from Prairie Farms customers, and make accounting entries to apply those checks to each customer’s account and therefore reduce the balance owed to Prairie Farms of that particular customer account by the amount of the check received.
C.S. owned and operated a Dairy Queen restaurant franchise in southern Illinois. DQ Columbia maintained an account at Prairie Farms and purchased and received products from Prairie Farms on a regular basis. DQ Columbia was required under its franchise agreement to order and receive substantially all its food, dairy products and supplies from Prairie Farms.
Beginning in or about March, 2018 and continuing through in or about December, 2018, Baker devised, intended to devise, and knowingly participated in a scheme to defraud and obtain money from Prairie Farms and C.S., in an approximate amount of $192,336.74, by means of materially false and fraudulent pretenses, representations and promises.
Baker received and applied payments from Prairie Farms customers other than DQ Columbia to DQ Columbia’s account. DQ Columbia, therefore, received credit and a reduction it its account balance for payments that were not made by DQ Columbia, but instead were made by other Prairie Farms customers. Further, the other Prairie Farms customers who made the actual payments did not receive credit and a reduction in their own account balances. As part of her scheme, Baker misapplied approximately $143,933.74 in other customer payments to the DQ Columbia account. Baker withheld and did not mail out statements to the other Prairie Farms customers so that those other customers would not realize that their prior payments to Prairie Farms had not been credited to their accounts.
Baker falsely represented, to C.S., for DQ Columbia to continue receiving food, dairy products and supplies from Prairie Farms, C.S. needed to make cash payments personally to Baker. At Baker’s direction, C.S. met with Baker on numerous occasions and delivered cash to Baker based upon Baker’s false representations that she would deliver the cash to Prairie Farms and credit DQ Columbia’s account accordingly. In fact, Baker kept the cash she received from C.S., did not credit DQ Columbia’s account for the cash payments, and used the cash for her own personal use, including for the boarding and related expenses for show horses and other general living expenses, unrelated to the legitimate business of Prairie Farms. C.S. met with Baker on numerous occasions and made cash payments to Baker totaling approximately $48,403.00. Prairie Farms and its owners had no knowledge of the cash payments which C.S. made to Baker and received no portion of these cash payments.
Baker received numerous checks from Prairie Farms customers through the U.S. mail and as part of her scheme misapplied those payments as credits to the account of DQ Columbia. .
The Federal Bureau of Investigation investigated this case. Assistant U.S. Attorney Hal Goldsmith handled the case for the U.S. Attorney’s Office.
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Judge sentences former St. Charles corporate executive for fraudulently using company’s credit cardRead the Press Release
ST. LOUIS – United States District Judge E. Richard Webber sentenced Tara Sabatini to 30 months in prison today. The 45-year-old St. Charles, Missouri resident pleaded guilty, in October, to one count of wire fraud.
Sabatini was employed as the “Senior Director of Sales” by a company located in St. Louis, Missouri that sold wholesale amounts of food to various commercial customers, typically grocery store chains. The company provided Ms. Sabatini with a company-funded corporate credit card and authorized her to use the credit card for official business, including work travel and some client expenses.
During 2017 and 2018, Sabatini used her corporate credit card to fund personal expenses, including but not limited to purchasing luxury ticket packages from a Major League Baseball team located in New York. She frequently engaged in electronic communications with New York employees of the team for ticket purchase and delivery purposes. After receiving these tickets, Sabatini attended some of the baseball games and also gave some of the tickets to her friends and family. Sabatini further sold some of the baseball tickets through an Internet service and spent the proceeds of the ticket sales on her personal expenses.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Gwendolyn Carroll is handling the case.
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Judge sentences St. Louis County man for role in fentanyl distribution ringRead the Press Release
ST. LOUIS – United States District Judge Stephen R. Clark sentenced Roman Frenchie to 60 months in prison today. The 22-year-old Overland, Missouri resident pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute fentanyl.
Beginning in 2018 and continuing until November 20, 2019, Frenchie and his co-conspirators began distributing large quantities of fentanyl in the St. Louis Metropolitan area. Their initial supplier was Juan Gonzalez, who was charged in a separate indictment with conspiracy to distribute and possess with intent to distribute both fentanyl and methamphetamine. Gonzalez continued to supply Frenchie and his co-conspirators until DEA and U.S. Marshals arrested Gonzalez in September 2019. Prior to his arrest, Gonzalez would either ship fentanyl through mail or hand-deliver the narcotics to co-conspirators who traveled to Arizona at the request of co-conspirators including Marcius Futrell. Futrell was also charged with drug conspiracy in the same case as Gonzalez. While Gonzalez and Futrell were fugitives from the charges in that indictment, they continued to conspire with Frenchie and others to distribute fentanyl.
After September 2019, Frenchie and his co-conspirators then obtained another source of fentanyl in Arizona and continued their distribution. Once the raw fentanyl arrived in the the St. Louis area, co-conspirators would "cut" or "stretch" the fentanyl with products like Dormin to increase its volume and their profit. The cut fentanyl was then put in capsules and sold by members of the conspiracy. The conspiracy was responsible for distributing in excess of four kilograms of fentanyl.
The Federal Bureau of Investigation, Drug Enforcement Administration, St. Louis County and St. Louis Metropolitan Police Department investigated this case. Assistant United States Attorney Paul D’Agrosa is handling this case.
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Johnstown Man Indicted on Drug ChargesRead the Press Release
Johnstown, PA - One resident of Johnstown, PA, has been indicted by a federal grand jury in Pittsburgh on charges of distribution and possession with the intent to distribute a quantity of a substance containing cocaine, heroin, and fentanyl, United States Attorney Scott W. Brady announced today.
The two-count Indictment named Troy Jamal Jones, age 33, as the sole defendant.
According to Indictment presented to the court, Jones was found to distribute and possess with the intent to distribute a quantity of a mixture and substance containing a detectable amount of cocaine base, in the form commonly known as crack, and a quantity of a mixture and substance containing a detectable amount of heroin and fentanyl.
The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation 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.
Japanese CEO and Employees Charged in Scheme to Defraud U.S. Navy and Dump Wastewater in OceanRead the Press Release
Three Japanese nationals, including the president and chief executive officer of Yokohama, Japan-based Kanto Kosan Co. Ltd. (Kanto Kosan) were indicted by a federal grand jury Tuesday in connection with an alleged long-running scheme to defraud the U.S. Navy and pollute Japanese waters by dumping contaminated water removed from U.S. Navy ships into the ocean.
Sojiro Imahashi, the president and CEO of Kanto Kosan, Tsuyoshi Ifuku, and Yuki Yamamiya, were charged with one count of conspiracy to make false claims, to commit ocean dumping, and to commit major fraud against the U.S.; four counts of major fraud against the U.S.; and six counts of submitting false claims.
“The defendants deceived the U.S. Navy by willfully failing to satisfy the company’s obligations under $120 million in contracts with the Department of Defense that were designed, among other things, to ensure the company not only delivered the required services to the Navy, but also complied with critical environmental safeguards,” said Acting Assistant Attorney General Nicholas L. McQuaid for the Justice Department’s Criminal Division. “The Criminal Division will continue its efforts to protect the integrity of military contracting and safeguard taxpayer dollars.”
“The defendants deserve to be held fully accountable for their alleged scheme to illegally dump wastewater as it threatened the integrity of the Department of the Navy procurement process, degraded the readiness of the warfighter, and squandered taxpayer dollars and valuable investigative resources,” said NCIS Far East Field Office Special Agent in Charge Tim Mahew. “NCIS remains committed to working with DCIS and our federal and international law enforcement partners to root out crime that threatens the communities where our DON personnel live and work.”
“The alleged conduct of the defendants in this case posed a threat to the critical strategic alliance between the United States and our valuable partner nation of Japan,” said Special Agent in Charge Stanley A. Newell of the Transnational Operations Field Office for the Defense Criminal Investigative Service (DCIS). “The dedicated special agents of the DCIS, along with our investigative partners of the Naval Criminal Investigative Service, will tirelessly investigate and bring to justice anyone who swindles the Department of Defense and threatens U.S. military readiness.”
According to the indictment, from approximately 2007 to 2020, Kanto Kosan received contracts from the U.S. Navy valued at approximately $120 million, tens of millions of which related to the removal, treatment, and disposal of contaminated oily wastewater (OWW) generated by U.S. Navy ships in Yokosuka, Sasebo, and Okinawa. Under the terms of the contracts, Kanto Kosan was typically required to treat the OWW in accordance with Japanese environmental regulations prior to discharging it into the ocean.
The indictment alleges that Kanto Kosan, acting through the defendants, transferred OWW to treatment barges, on which Kanto Kosan was supposed to use various methods to treat and clean the OWW prior to discharging it into the ocean. To ensure that discharged OWW met Japanese environmental standards, the U.S. Navy contracts typically required Kanto Kosan to “conduct semiannually sampling and testing of effluent discharge from the treatment barge[s]. . . in a laboratory that is certified by the Japanese regulatory authority . . . and provide copies of the test results to [the U.S. Navy]. . . within five (5) working days of receiving results from the accredited Japanese laboratory.” Compliance with the environmental testing regime set out in the contracts was one of the standards by which Kanto Kosan’s performance was measured.
The indictment alleges that in approximately 2007, the defendants and others decided that, instead of properly treating the OWW, Kanto Kosan would minimally treat OWW to remove visible contaminates and then discharge the improperly treated or untreated OWW into the ocean. To circumvent the testing regime, the defendants directed that a storage tank on Kanto Kosan’s OWW treatment barges be kept filled with tap water, and then directed personnel from the environmental testing laboratories that Kanto Kosan engaged to take samples from the tanks filled with tap water. Kanto Kosan employees also added OWW to the tanks filled with tap water on occasion to avoid exposing the scheme. As a result, the U.S. Navy was deceived into believing Kanto Kosan was properly treating the OWW, and into paying its invoices.
An indictment is merely an allegation. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
NCIS and DCIS investigated the case. Trial Attorney Michael P. McCarthy of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section is the nation’s leading prosecuting authority for complex procurement fraud and corruption matters.
Interpreter in Federal Criminal Investigation Charged with Disclosing Investigation and Court-Ordered Wiretap to Targeted Drug DealerRead the Press Release
SAN JOSE – Liliana Moreno, a Spanish translator hired as a contractor by the Drug Enforcement Administration (DEA) in a drug trafficking investigation, appeared today in United States District Court to face federal charges that she intentionally disclosed the investigation and its court-ordered wiretap to the investigation’s target, announced United States Attorney David L. Anderson, Department of Justice Office of the Inspector General Los Angeles Field Office Special Agent in Charge Zachary Shroyer, and Drug Enforcement Administration Special Agent in Charge Daniel C. Comeaux.
“We trusted Liliana Moreno to keep her work confidential,” said U.S. Attorney Anderson. “Law enforcement needs confidentiality to protect the rights of the innocent and the guilty. We allege Moreno violated that trust.”
“Moreno jeopardized an investigation when she allegedly tipped off the subject of a court-authorized wiretap. DOJ employees and contractors who share confidential law enforcement information will be held accountable for their actions,” said Zachary Shroyer, Special Agent in Charge of the Department of Justice Office of the Inspector General Los Angeles Field Office.
“Releasing sensitive government information can have devastating consequences. Not only does it damage a case, often beyond repair, but more importantly, it also endangers the lives of those agents and officers assigned to the investigation,” said DEA Special Agent in Charge Daniel Comeaux. “In instances such as these we will ensure justice is served without delay.”
According to the federal complaint unsealed today, Moreno, age 35, of Modesto, California, worked for a private company that contracts with DEA to provide translation services. DEA regularly uses interpreters in court-authorized wiretaps to monitor and translate intercepted telephone calls in a foreign language. DEA hired Moreno as a contractor, and she promised in DEA employment contracts never to disclose any investigative information without authorization and to notify DEA if she had any personal association with a target of an investigation.
The complaint outlines that DEA assigned Moreno as the lead monitor and Spanish translator for a court-authorized wiretap in an investigation of a drug trafficking organization whose membership included numerous Spanish-speaking members. During February and March of 2018, the complaint alleges that while monitoring calls Moreno recognized an individual on a call who she knew from the individual’s romantic relationship with a friend of Moreno. DEA agents also displayed a surveillance photo and name of that individual, deemed Wire Target 2 in the complaint, in the wire room where Moreno worked. Despite this, Moreno did not notify DEA about her knowledge and association with Wire Target 2, the complaint outlines. Instead, Moreno met with her friend on March 17, 2018, and according to the complaint’s allegations, warned the friend that Wire Target 2’s calls were being intercepted in a DEA wiretap investigation and that DEA had a photo of Wire Target 2. Moreno’s friend relayed this information to Wire Target 2, and the complaint describes how Wire Target 2 and another drug-trafficking organization member thereafter discarded their wiretapped cell phones, frustrating and significantly delaying the investigation.
Moreno made her initial appearance on the complaint, which was unsealed today, before the Honorable Virginia K. DeMarchi, United States Magistrate Judge. Moreno remains out of custody on a $50,000 bond. Moreno’s next scheduled appearance is on February 19, 2021, for appointment of counsel before United States Magistrate Judge DeMarchi.
A complaint merely alleges that a crime has been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Moreno is charged with one count of unlawful disclosure of electronic surveillance, in violation of 18 U.S.C. § 2232(d). If convicted, the defendant faces a maximum sentence of 5 years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The United States Attorney’s Office Special Prosecutions Section is prosecuting the case. The prosecution is the result of an investigation by the Department of Justice Office of the Inspector General and the Drug Enforcement Administration.
Harrison County man indicted on firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – Dustin Cain Anderson, of Clarksburg, West Virginia, was indicted today on a firearms charge, U.S. Attorney Bill Powell announced.
Anderson, 26, was indicted today on one count of “Unlawful Possession of a Firearm.” Anderson, a person prohibited from having firearms, is accused of having a .22 caliber revolver in November 2020 in Upshur County.
Anderson is facing up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Upshur County Sheriff’s Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Harrisburg Man Sentenced to 18 Months’ Imprisonment for Stealing Thousands of Dollars’ Worth of Postage StampsRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Arthur Gibson, age 48, of Harrisburg, Pennsylvania, was sentenced on February 16, 2021, to 18 months’ imprisonment followed by three years of supervised release, by Chief U.S. District Court Judge John E. Jones III, for stealing government property.
According to Acting United States Attorney Bruce D. Brandler, Gibson previously pled guilty to purchasing thousands of dollars’ worth of postage stamps from post offices in the Middle District of Pennsylvania and elsewhere in July 2019. Gibson admitted that to purchase the stamps, he used personal checks, knowing that the funds in his bank account were insufficient to cover the cost of the stamps. Gibson agreed to pay restitution to the U.S. Postal Service in the amount of $22,990, which represents the value of the postage stamps that Gibson unlawfully obtained.
The case was investigated by the United States Postal Inspection Service and the Northeastern Regional Police Department. Assistant U.S. Attorney Carlo D. Marchioli prosecuted the case.
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Harrisburg Man Sentenced to 11 Years’ Imprisonment for Cumberland County Armed Bank RobberiesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on February 16, 2021, Aaron Johnson, age 30, of Harrisburg, Pennsylvania, was sentenced to 132 months’ imprisonment followed by five years on supervised release by Chief U.S. District Court Judge John E. Jones III, for armed bank robbery.
According to Acting United States Attorney Bruce D. Brandler, Johnson committed four armed bank robberies in Cumberland County between February and September 2019:
- AmeriChoice Federal Credit Union on February 15, 2019, stole $6,300;
- Centric Bank on July 12, 2019, stole $8,450;
- BB&T Bank on July 31, 2019, stole $10,079; and
- PNC Bank on August 19, 2019, stole $2,734.
Chief Judge Jones also ordered Johnson to pay restitution to the banks in the amount of $27,563.
The case was investigated by the Federal Bureau of Investigation, the Lower Allen Police Department, East Pennsboro Township Police Department, Camp Hill Borough Police Department, and the Hampden Township Police Department. Assistant U.S. Attorney Johnny Baer is prosecuting 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. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Hardy County man indicted on drug chargesRead the Press Release
ELKINS, WEST VIRGINIA – Matthew Curtis Delawder, of Moorefield, West Virginia, was indicted today on drug charges, U.S. Attorney Bill Powell announced.
Delawder, 37, was indicted today on three counts of “Distribution of Methamphetamine,” one count of “Possession with Intent to Distribute Methamphetamine,” and one count of “Unlawful Possession of a Firearm.” Delawder is accused of having and selling methamphetamine in Grant and Hardy Counties in October 2020. Delawder, who is prohibited from having firearms, is also accused of having .22 caliber rifle in Hardy County in February 2021.
Delawder is facing up to 20 years of incarceration and a fine of up to $1,000,000 for each of the drug counts. He is also facing up to 10 years of incarceration and a fine of up to $250,000 for the firearms count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the West Virginia State Police investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Guilford Business Owner Sentenced for Tax EvasionRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Christopher Parker, 63, of Guilford, Vermont, was sentenced today in the United States District Court in Burlington following his conviction for tax evasion. U.S. District Judge Christina Reiss sentenced Parker to time served, to be followed by three years of supervised release including 200 hours of community service. Prior to his sentencing, Parker had paid in full the roughly $281,000 in federal income taxes due and owing which he evaded through his conduct in this case. Parker’s supervised release is also subject to special conditions requiring him to cooperate with the Internal Revenue Service in connection with any delinquent or additional taxes, interest or penalties.
Parker is the sole proprietor of Christopher M. Parker LLC, a building restoration business based in Guilford. As described in court filings and statements made on the record at his sentencing, Parker evaded taxes by understating his income to his tax preparer over several years, between 2014 and 2018. His business generated approximately $3.35 million in gross revenues during that period. However, Parker reported only approximately $2.5 million in gross revenues to the Internal Revenue Service on his income tax returns, resulting in an approximately $281,000 tax loss to the United States.
United States Attorney Christina E. Nolan commended the investigative efforts of the Internal Revenue Service’s Criminal Investigation Division.
The United States is represented in this matter by Assistant U.S. Attorney Spencer Willig. Jerome F. O’Neill of Gravel & Shea PC represents Parker.
Gang Member Sentenced to More Than 7 Years in Prison for Gun and Drug OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JASON FIGUEROA, also known as “Hood” and “Hoodie,” 31, of Hartford, was sentenced today by U.S. District Judge Kari A. Dooley to 87 months of imprisonment, followed by three years of supervised release, for crack cocaine distribution and firearm possession offenses.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI’s Northern Connecticut Gang Task Force and Hartford Police Department into the trafficking of narcotics and associated violence in Hartford’s South End by members and associates of the Almighty Latin Kings Nation (“Latin Kings”). In December 2019, investigators learned that Figueroa, a member of the Latin Kings, was distributing crack cocaine, and that he possessed several firearms at his Franklin Avenue residence. Between December 2019 and March 2020, law enforcement made six controlled purchases of crack from Figueroa.
On March 23, 2020, Figueroa was the victim of shooting on Bond Street and suffered gunshot injuries to his face. On April 8, 2020, while Figueroa was hospitalized, investigators conducted a court-authorized search of his residence and seized eight firearms, numerous rounds of ammunition, and assorted gun paraphernalia. The firearms included a handgun capable of discharging shotgun shells, and a “ghost” gun with a laser sight. Four of the firearms recovered from the residence were reported stolen.
Figueroa was arrested on April 23, 2020. While incarcerated, Figueroa was recorded on a prison call discussing retaliation for the shooting on March 23.
Figueroa’s criminal history includes two state felony firearm convictions.
Figueroa has been detained since his arrest. On November 23, 2020, he pleaded guilty to one count of possession with intent to distribute, and distribution of, cocaine base (“crack”), and one count of possession of a firearm by a convicted felon.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division provided valuable assistance to the investigation.
This case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Former Tacoma resident sentenced to 15 years in prison for production of images of child molestationRead the Press Release
Tacoma - A former Tacoma resident, who was residing in South Bend, Indiana, at the time of his arrest, was sentenced today in U.S. District Court in Tacoma to 15 years in federal prison for production of child pornography, announced U.S. Attorney Brian T. Moran. SAMUEL PHILLIPS, 27, must register as a sex offender upon release from prison and will be supervised by federal probation for 25 years. At the sentencing hearing, U.S. District Judge Benjamin Settle said, “This involves the abuse of those who are the most vulnerable – young children…. A young child has been given a life sentence of this trauma.”
PHILLIPS pleaded guilty in September 2020. In March 2018, PHILLIPS was residing in a Tacoma apartment with a 5-year-old child, when he made video recordings of the sexual abuse. PHILLIPS relocated to Indiana in early 2019. His spouse discovered the videos on his phone. PHILLIPS was arrested by South Bend Police, who alerted the Tacoma Police Department. PHILLIPS was charged federally with production of child pornography on April 30, 2019. Charges in state court for sexual abuse of the child are pending.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The case was investigated by the Tacoma Police Department and FBI, with assistance from the South Bend, Indiana, Police Department.
The case was prosecuted by Assistant United States Attorneys Angelica Williams and Matt Hampton.
Former Subcontractor Sentenced for Obstruction of JusticeRead the Press Release
A former subcontractor for the U.S. Marines Corps was sentenced today to 18 months in prison for destroying records in connection with a federal investigation of bribery and procurement fraud at Marine Corps Base Camp Lejeune (MCBCL), located in Jacksonville, North Carolina, announced Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division.
The former subcontractor, William Thompson, 56, of Sneads Ferry, North Carolina, previously pleaded guilty to one count of obstruction of justice. According to documents filed with the Court, Thompson owned and operated C&D Painting and Construction, a construction company with its principal place of business in Sneads Ferry. Public Official 1 was a civilian employee of the U.S. Marine Corps who directed the procurement of information technology services and equipment to be used by the Marine Corps at MCBCL and elsewhere.
In March 2018, agents of the Naval Criminal Investigative Service (NCIS), FBI, and IRS-Criminal Investigation (IRS-CI) interviewed Thompson. During the interview, law enforcement agents informed Thompson that they were investigating an alleged bribery conspiracy concerning work that C&D Construction completed as a subcontractor at MCBCL, and about renovations that Thompson performed at Public Official 1’s residence. At the time of the interview, the investigation was covert and not known to all subjects, including Public Official 1.
On the same evening of the interview and the following morning, Thompson exchanged several text messages with Public Official 1 in which Thompson informed Public Official 1 that the FBI, NCIS, and IRS-CI were investigating Public Official 1’s involvement in contracting matters while Public Official 1 was employed by the Marine Corps. After informing Public Official 1 of the ongoing federal investigation, Thompson deleted the relevant text messages from his phone, despite knowing that the messages constituted evidence related to the federal investigation into bribery and procurement fraud at MCBCL.
This case was investigated by the FBI, Department of Defense Office of Inspector General, NCIS, Naval Audit Service, and IRS-CI.
Trial Attorney Erica O’Brien Waymack of the Criminal Division’s Public Integrity Section is prosecuting the case.
Former Leader of Latin Kings Department of Correction Chapter Pleads Guilty to Racketeering Conspiracy ChargesRead the Press Release
BOSTON – A former Leader of the Massachusetts Department of Correction Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to racketeering charges.
Frutuoso Barros, a/k/a “King Fruity,” 40, pleaded guilty to conspiracy to conduct 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 June 2, 2021.
Barros admitted to his role in conspiring in February 2010 to murder two members of the Latin Kings active in the area of Lynn, Mass., who were believed to be “renegade” and not following directives issued by the gang’s national leadership in Chicago. In 2015, Barros was convicted in Essex County Superior Court for these crimes and sentenced to state prison. While he was substantively convicted in state court for those offenses, today Barros admitted that these crimes were committed in furtherance of the Latin Kings racketeering enterprise.
As detailed in court filings, the Latin Kings bring disputes and related gang violence into jails and prisons where members are incarcerated. Once in state prison, Barros’s membership in the Latin Kings continued and he took the position as Inca, or Leader, of the Latin Kings within the Massachusetts Department of Correction (MA DOC) system. In this role, Barros coordinated the operations of the Latin Kings inside MA DOC, including issuing directives of violence against individuals serving sentences and coordinating the violence that the gang committed inside of the MA DOC facilities. As part of his leadership role, Barros received information concerning the identities of those targeted for violence in the jails and prisons, locations of the targets and of incarcerated Latin Kings members, the standing of certain individuals with the gang and the status of disputes and alliances with other gangs both inside and outside of the prison system.
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. Barros is the 34th 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.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Lelling’s Criminal Division are prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
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.