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22 March 2021
Bentonia Man Sentenced to 15 Months for Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – Christopher Michael Cockrell, 45, of Bentonia, was sentenced today by U.S. District Court Judge Carlton W. Reeves to 15 months in federal prison, followed by 3 years of supervised release, for being a felon in possession of a firearm, announced Acting U.S. Attorney Darren J. LaMarca and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Cockrell was also ordered to pay a $1,500.00 fine. Judge Reeves imposed an additional 10-month prison sentence due to Cockrell’s violation of the terms of supervised release.
On September 2, 2020, the United States Probation Office discovered that Cockrell had possession of cell phone which contained a video showing a firearm in a hunting blind. Cockrell had been previously convicted in federal court in the Western District of Missouri for a Human Trafficking Offense. After having served a lengthy prison sentence, Cockrell was released from prison and came to live in Mississippi. Cockrell was then placed under the supervision of the United States Probation Office in the Southern District of Mississippi.
The United States Probation Office informed the ATF that they believed there was evidence that Cockrell had possessed a firearm. As a convicted felon it is against federal law for the Cockrell to possess a firearm. ATF agents investigated, and Cockrell eventually admitted that he had possessed firearms for hunting purposes.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorneys Bert Carraway and Charles W. Kirkham.
Bank Teller Indicted on Federal Fraud ChargesRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today the Indictment of KAREN FARRELL TIGLER, age 34, of Harvey, Louisiana, who was charged on Friday, March 19, 2021, in a twelve-count federal indictment for Bank Fraud, Making False Statements to Federal Agents, and Making and Subscribing False Tax Returns, in violation of Title 18, United States Code, Sections 1344 and 1001(a)(2) and Title 26, United States Code, Section 7206(1) respectively. If convicted, TIGLER faces a maximum term of thirty (30) years imprisonment and/or a fine of $1,000,000.00 or the greater of twice the gross gain to the defendant or twice the gross loss to any person of the offense under Title 18, United States Code, Section 3571. In addition, TIGLER faces a term of supervised release up to five (5) years after her release from prison.
According to today’s Indictment, from January 1, 2013, to November 14, 2016, TIGLER was employed as a multi-service banker with the Hancock Whitney Bank. TIGLER worked at the Whitney branch, also known as the “Morgan State Branch,” located at 430 Chartres Street, New Orleans, LA. Client A was in her mid-80s in 2015 and 2016 and was a banking customer of Whitney. From February 9, 2015, to October 28, 2016, approximately 100 counter checks totaling approximately $349,556 were processed and debited, without permission or authorization, from Client A’s account.
TIGLER used her position with the bank to embezzle approximately $349,556 from Client A’s account by using 100 counter checks to debit funds from Client A’s account. TIGLER used her position with the bank to access personal information from other legitimate banking transactions to create the fraudulent counter checks. TIGLER forged the signatures of Client A and various others on the counter checks in an effort to conceal her embezzlement scheme. TIGLER accessed or utilized legitimate checks drawn on Client A’s account in order to prepare fraudulent counter checks. TIGLER cashed 21 counter checks totaling $73,924 that were supposedly for “roofing,” “market/garden work,” “light fixtures/cleaning,” “extras plumbing,” “misc. work,” “renovations,” and “maintenance.” TIGLER cashed 79 counter checks totaling approximately $275,632 payable to another individual that were supposedly for “house,” “maintenance,” and for “happy birthday.”
TIGLER also lied to the FBI in an effort to conceal her embezzlement of funds from Client A’s account. TIGLER falsely claimed to the FBI to have received verbal approval from Client A to cash the counter checks. In addition, TIGLER failed to report $134,429 on her 2015 tax return and $215,127 on her 2016 return. TIGLER reported W-2 income from the bank of $21,290 for the tax year 2015 and $19,256 for 2016.
TIGLER spread the deposits of cash of embezzled funds into her various accounts. TIGLER also failed to report gambling winnings of $32,180 on her 2015 tax return. When confronted by a relative of Client A, TIGLER falsely implicated another individual in an effort to conceal her embezzlement of funds from Client A’s account.
“Ms. Tigler's alleged abhorrent greed was evident when she purposefully used her employment to embezzle thousands of dollars from an elderly client of the bank. Individuals like Ms. Tigler who allegedly engage in fraudulent schemes will be held accountable,” said Bryan Vorndran, FBI New Orleans Special Agent in Charge. “I would like to thank the efforts put forth by our partners at the Internal Revenue Service, and the Hancock Whitney Bank for helping the FBI disrupt fraud, especially fraud that affects our elderly population.”
“Honest and law-abiding citizens should not be victims of those who use deceit and fraud to line their pockets with other people’s money,” said Special Agent in Charge James E. Dorsey, IRS Criminal Investigation, Atlanta Field Office. “Those individuals who allegedly engage in financial fraud should know they will not go undetected and will be held accountable.” IRS Criminal Investigators will continue to use their financial expertise to identify and trace illicit funds associated with these types of fraud schemes.”
U.S. Attorney Evans reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, the Internal Revenue Service, and the Hancock Whitney Bank with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit, and Assistant U.S. Attorney Maria Carboni.
Attorney General Merrick B. Garland Announces Monty Wilkinson as Director of the Executive Office for U.S. AttorneysRead the Press Release
Attorney General Merrick B. Garland today announced that former acting Attorney General Monty Wilkinson has been appointed as the Director of the Executive Office for U.S. Attorneys (EOUSA). Wilkinson previously served as the Director of EOUSA from 2014 until December 2017, and prior to that as its Principal Deputy Director and Chief of Staff.
During his career with the Department of Justice, Mr. Wilkinson has served as Counselor and Deputy Chief of Staff to the Attorney General, as an Associate Deputy Attorney General, and as the Deputy Assistant Attorney General for Human Resources and Administration. He also held senior management positions for nearly a decade in the U.S. Attorney’s Office for the District of Columbia. Mr. Wilkinson started his career at the Department of Justice as a trial attorney in the Criminal Division.
Norman Wong, who has been serving as the Acting Director of EOUSA since January 20, 2021, will return to his position as Principal Deputy Director. “Norm Wong has served at EOUSA with distinction for a number of years and provided exemplary leadership to the U.S. Attorney’s Offices as Acting Director over the past seven weeks,” said Attorney General Garland. “Norm’s commitment to public service is exceptional and I thank him for his service.”
“I look forward to working with Monty again as I did 25 years ago when I was the Principal Associate Deputy Attorney General,” said Attorney General Garland. “Monty ensured that the Department continued to work and to honor its proud traditions during the leadership transition between new administrations. The Department is fortunate to have Monty back at EOUSA and I am confident he will help continue to build upon our many successes in enforcing our country’s laws, bringing criminals to justice and ensuring equal justice under the law.”
Learn more about EOUSA at https://www.justice.gov/usao.
Armed Carjacker Sentenced in Federal CourtRead the Press Release
United States Attorney Sean P. Costello of the Southern District of Alabama announced that Dorian Lakeith Webb, Jr., 19, of Mobile, was sentenced today for his participation in an armed carjacking which occurred in Mobile during December of 2019. In December of 2020, Webb pled guilty to the charge of brandishing a firearm during and in furtherance of the carjacking, a crime of violence under federal law.
According to documents filed in connection with his guilty plea, Webb participated with two other men in an armed robbery and carjacking of an individual who was trying to buy a gun through Facebook. The victim fled, and three or four shots were fired by the perpetrators. Several weeks later, Webb was pulled over driving 86 miles per hour in a 65 mph zone. When the car was stopped, Webb had a black bag on his lap containing a Glock pistol. Analysis of the Glock and the fired cartridges recovered from the carjacking confirmed that the pistol in Webb’s possession matched the spent casings. Webb admitted in his plea that he was one of the men involved in the carjacking.
United States District Court Judge Jeffery U. Beaverstock imposed a seven-year mandatory sentence in Webb’s case this morning, and ordered that Webb serve a five-year term of supervised release when he is released from custody. Webb was also ordered to pay $200 in restitution and a mandatory special assessment of $100. No fine was imposed. The judge further entered a forfeiture order as to the firearm used in the commission of the crime.
The case was investigated by the Mobile Police Department and the Federal Bureau of Investigation. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Arizona Man Found Guilty of Sex CrimesRead the Press Release
Acting United States Dennis R. Holmes announced that Carlocito Slim, 35, was found guilty of Attempted Commercial Sex Trafficking of a Minor and Attempted Enticement of a Minor Using the Internet following a two-day federal court trial held in Rapid City, South Dakota. The verdict was returned on March 10, 2021.
Each charge carries a mandatory minimum sentence of 10 years up to life in federal prison and/or a $250,000 fine, a mandatory minimum of five years up to lifetime supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Evidence at trial established that Slim was arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2017 Sturgis Motorcycle Rally, targeting internet predators. Following multiple text messages with a person Slim believed to be a pimp for a 15 year-old prostitute, but who was in fact an undercover agent, he proceeded to negotiate the time and place he would meet the minor to engage in unlawful sex acts. When Slim went to the pre-determined location to meet the minor’s pimp, he was instead met by law enforcement agents and placed under arrest.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Internet Crimes Against Children Task Force, and the Department of Homeland Security. Assistant U.S. Attorney Sarah B. Collins prosecuted and tried the case.
A presentence investigation was ordered and a sentencing date has not been set. Slim was remanded to the custody of the U.S. Marshals Service pending sentencing.
Acting U.S. Attorney Raj Parekh and FBI Leaders Condemn Acts of Violence and Discrimination Against Asian Americans and Pacific IslandersRead the Press Release
ALEXANDRIA, Va. – The U.S. Attorney’s Office for the Eastern District of Virginia and the FBI condemn all acts of violence, racism, xenophobia, and intolerance against Asian Americans and Pacific Islanders across the nation and in our communities.
“Hate crimes and discrimination against anyone, including Asian Americans and Pacific Islanders, are reprehensible acts that are contrary to the ideals of our Nation and have no place in our society,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We will not stand still amid the horrific reports of racist and xenophobic acts of violence targeting Asian American and Pacific Islander individuals and communities nationwide. I reaffirm our Office’s unwavering commitment to ensuring that those who perpetrate federal crimes fueled by hate are held accountable, and EDVA stands united with our law enforcement partners in combating these injustices. Asian Americans and Pacific Islanders are our fellow Americans, and like all human beings, deserve dignity, respect, and the right to live without fear. As part of our collective responsibility to ensure equality and justice for all, I urge members of the community to report hate-based crimes to law enforcement to ensure that anyone who engages in this deplorable conduct can be brought to justice.”
“The Asian American and Pacific Islander community can trust that the FBI is dedicated to investigating hate crimes, which can have a devastating impact and bring fear to entire communities,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office. “A Core Value of the FBI is respecting the dignity of all those we protect. The FBI is committed to working with all communities to build trust and address the fears they experience due to hate and biased-based crimes, which have no place in our Nation.”
The U.S. Attorney’s Office for the Eastern District of Virginia urges the community to be vigilant and to report any suspected hate-based crime to the FBI by submitting an online tip at fbi.gov/tips, by calling 1-800-CALL-FBI, or by calling 911 in an emergency.
Federal law protects against discrimination based on race, gender, religion, national origin, sexual orientation, gender identity, disability, age, and citizenship in several important aspects of daily life, such as housing, employment, places of public accommodation, educational opportunities, and other areas. More information about these and other federal civil rights protections is available at https://civilrights.justice.gov/#your-rights.
Additional resources regarding hate crimes and bias incidents are available at https://www.fbi.gov/investigate/civil-rights/hate-crimes.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office, Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, and Christopher Derrickson, Acting Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
19 March 2021
Waterloo Felon Pleads Guilty to Possessing a GunRead the Press Release
A man who was found in possession of ammunition and a few days later in possession of a loaded firearm pled guilty March 18, 2021, in federal court in Cedar Rapids.
Mar’yo Doyuan Lindsey, age 24, from Waterloo, Iowa, was convicted of one count of being a felon in possession of a firearm.
In a plea agreement, Lindsey admitted that the Iowa State patrol found him in a car on July 3, 2020, in possession of a large capacity magazine and ammunition. A few days later, on July 12, 2020, Lindsey was found by Waterloo police officers in possession of a loaded 9mm handgun. Lindsey had previously been convicted of the following felony offenses: (1) on April 28, 2014, in Black Hawk County, Iowa, he was convicted of possession of a firearm as a felon and carrying weapons on school grounds; and (2) on May 12, 2017, in Black Hawk County, Iowa, he was convicted of intimidation with a dangerous weapon, willful injury causing bodily injury, possession of a firearm as a felon, and going armed with intent.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Lindsey remains in custody of the United States Marshal pending sentencing. Lindsey faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Patrick J. Reinert and was investigated by the Iowa State Patrol, the Waterloo Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime.
Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2049.
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Virginia Man Sentenced for Cyber “Sextortion” SchemeRead the Press Release
ALEXANDRIA, Va. – A Warrenton man was sentenced today to 31 years in prison for a years-long “sextortion” scheme running from 2016 to 2020 in which he coerced numerous preteen and teenage victims to create and send him electronic images of themselves engaged in sexually explicit conduct.
“The defendant manipulated, coerced, and tormented children across the country by using an arsenal of repulsive tactics, which subjected these vulnerable minors to trauma that will painfully stay with them and their families forever,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “While no amount of jail time can ever undo the devastating physical and emotional damage the defendant has caused, we hope that today’s sentence will provide some measure of justice for the victims.”
Filippo Parlagreco, 36, pleaded guilty to the production, distribution, and possession of child pornography on November 5, 2020. According to court documents, in summer 2017, Parlagreco—posing as a teenage girl on social media—began communicating with a 14-year-old girl and persuaded her to send him sexually explicit photographs of herself. After she did so, Parlagreco posted the explicit photographs to another social media application and demanded that she produce and send him additional explicit images if she wanted them removed. Despite the victim blocking him on social media and reporting the crimes to law enforcement, Parlagreco continued to contact her with demands for sexually explicit images over the course of three years.
“This case demonstrates the grave dangers that children face online, where predators can pretend to be anyone and use sophisticated tactics to exploit the most vulnerable among us,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The defendant used an array of technology to target and torment innocent children for his own perverse pleasure, but as this prosecution shows, the Department of Justice will continue to marshal its resources to pursue these predators and combat this epidemic.”
“The Federal Bureau of Investigation and its local, state, and federal partners work tirelessly on a daily basis to investigate and bring to justice individuals engaged in the exploitation and sexual abuse of children,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office. “With this sentencing, we have removed a dangerous child predator from the community, and sent a clear message that acts of sextortion against minors over the internet are taken seriously and will be investigated and brought to justice.”
Once law enforcement was able to identify Parlagreco, further investigation revealed that he had sexually exploited at least 13 other minor victims nationwide between 2016 and 2020 in a similar manner, including some as young as 11 years old. Parlagreco’s tactics ranged from false promises of confidentiality and misrepresentation of his identity to extortion and threats of prosecution. The evidence further showed that he traded child sexual abuse material with other offenders online, and that he possessed hundreds of images and dozens of videos of child sexual abuse in an encrypted portion of his phone.
Acting U.S. Attorney Raj Parekh of the Eastern District of Virginia, Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, and Assistant Director in Charge Steven D’Antuono of the FBI’s Washington Field Office made the announcement.
Assistant U.S. Attorney Jonathan Keim and Trial Attorneys Jessica Urban and Gwendelynn Bills of the Justice Department’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
The FBI’s Washington Field Office investigated the case with assistance from local law enforcement throughout the country.
The case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-243.
Van Zandt County Man Sentenced for Mail-Order OpioidsRead the Press Release
TYLER, Texas – A Wills Point, Texas, man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Namand Joaquincy Battles pleaded guilty on July 29, 2020, to possession with intent to distribute a controlled substance. Today, he was sentenced to 27 months in federal prison by U.S. District Judge J. Campbell Barker.
“I commend the hard work of the investigative team that put this case together,” said Acting U.S. Attorney Nicholas J. Ganjei. “We will continue to use a multi-agency approach to combat international drug trafficking. We will not tolerate drug dealers like this one trying to profit off the addictions of our fellow citizens.”
According to information presented in court, in January 2020, law enforcement officials received information that a package had been seized as it was being shipped from the United Kingdom to a Wills Point, Texas, address. The package, which was marked “clothing,” contained some clothes and snacks as well as 50,000 Tramadol tablets. Federal agents were able to determine a second package was being mailed from the United Kingdom to the same Wills Point, Texas address. That package also contained 50,000 Tramadol tablets and had been intercepted by law enforcement at the John F. Kennedy airport in New York. Battles was identified as the intended recipient. The investigation revealed that after receiving the packages from overseas sources, he would repackage the tablets for distribution by using United States Postal Service Priority Mail boxes and envelopes. Battles admitted to having possessed with intent to distribute at least 100,000 Tramadol 100 mg tablets during the course of his criminal activities. He was indicted by a federal grand jury on January 15, 2020.
This case was investigated by the U.S. Customs and Border Protection, Homeland Security Investigations, U.S. Postal Inspection Service, Texas Department of Public Safety-Criminal Investigations Division, and Van Zandt County Sheriff’s Office, and prosecuted by Assistant U.S. Attorney Allen Hurst.
Two Reeves County Detention Center Guards Charged with Smuggling Cell Phones to InmateRead the Press Release
Today, U.S. Magistrate Judge David Fannin unsealed an information charging two prison guards with smuggling cell phones and other contraband to a Reeves County Detention Center (RCDC) inmate, announced U.S. Attorney Ashley C. Hoff and Department of Justice Office of Inspector General (DOJ-OIG) Special Agent in Charge Cloey Pierce, Houston Division.
The information unsealed today charges El Paso residents Eduardo Garcia, age 19, and Armando Valdivia, age 22, with one count of providing contraband in prison. The information alleges that from August 2020 to September 2020, the RCDC guards smuggled multiple cell phones to an inmate inside the prison facility.
The defendants, who were arrested yesterday by DOJ-OIG agents, face up to one year in federal prison and a maximum $100,000 fine upon conviction. During the initial appearance today, Judge Fannin set a personal recognizance bond for Garcia. Garcia is scheduled for a preliminary hearing on March 24, 2021. Valdivia remains in custody and is scheduled for a detention and preliminary hearing on March 22, 2021.
DOJ-OIG investigated this case. Assistant U.S. Attorney Kevin Eaton is prosecuting this case.
An information is merely a charge and should not be considered as evidence of guilt. Defendants are presumed innocent until proven guilty in a court of law.
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Two Red Lake Men Charged with Sexual Abuse of ChildrenRead the Press Release
Acting United States Attorney W. Anders Folk today announced federal charges against two men in separate child sexual abuse cases occurring on the Red Lake Indian Reservation. The defendants, KEITH ALLEN EHRICH, 38, and KORY PAUL LUSSIER, 24, made their initial appearances earlier today before Magistrate Judge David T. Schultz in U.S. District Court.
According to the allegations in the indictment against EHRICH, between August 2017 and October 11, 2020, EHRICH knowingly engaged in the sexual abuse of a minor.
According to the allegations in the criminal complaint against LUSSIER, between August 2, 2014 and September 20, 2020, LUSSIER knowingly engaged in the sexual abuse of a minor.
These cases are the result of investigations conducted by the Red Lake Department of Public Safety and the FBI Headwaters Safe Trails Task Force.
These cases are being prosecuted by Assistant U.S. Attorney Alexander D. Chiquoine.
The charges contained in the indictment and the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant Information:
KEITH ALLEN EHRICH, 38
Red Lake, Minn.
Charges:
- Sexual abuse of a minor, 1 count
- Abusive sexual contact with a child, 1 count
KORY PAUL LUSSIER, 24
Red Lake, Minn.
Charges:
- Aggravated sexual abuse of a child, 1 count
- Abusive sexual contact with child, 1 count
- Sexual abuse of a minor, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Tulsa Man Sentenced to 55 Months in Prison after Threatening Civilians, Officer with a FirearmRead the Press Release
A man who pointed a gun at civilians and in the direction of a Broken Arrow police officer was sentenced today in federal court, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge Claire V. Eagan sentenced Jonathan David Kelley, 36, of Tulsa, to 55 months in federal prison followed by three years of supervised release. In November, Kelley pleaded guilty to being a felon and drug user in possession of a firearm.
“Jonathan Kelley is a convicted felon and methamphetamine user and as such, is prohibited by federal law from possessing a firearm. He was a danger to the public and law enforcement officers serving our communities,” said Acting U.S. Attorney Clint Johnson. “Now, he is no longer a threat because violating federal firearms laws has serious consequences. He will serve more than five years in prison for his crimes. I am thankful for the officers and agents of the Broken Arrow and Tulsa Police Departments and ATF, as well as Assistant U.S. Attorney Mark Morgan, who leads our 2150 Initiative. Their work is critical to protecting Oklahomans and reducing gun crime in our communities.”
Broken Arrow Police Officers encountered Kelley disoriented and waving around a gun in public on Sept. 5, 2020. The defendant also pointed the gun at two civilians earlier in the day. During the incident, Kelley refused the officers’ commands to drop the firearm and continued walking away, cycling the firearm and telling officers he “had a round in the chamber.” Kelley also pointed his gun in the direction of an officer who arrived during the incident. Officers were eventually able to apprehend and arrest the defendant safely and collect the Glock 17 pistol with a round in the chamber.
According to the government’s sentencing motion, Tulsa police officers had also responded to a domestic violence call involving Kelley and his gun on Aug. 29, 2020.
The Broken Arrow Police Department, Tulsa Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Mark R. Morgan prosecuted the case.
Kelley was prosecuted as part of the 2150 Initiative, a collaborative effort between the U.S. Attorney’s Office for the Northern District of Oklahoma, Tulsa Police Department, ATF, and all other local, state, tribal and federal law enforcement partners to combat violent crime by focusing efforts on prohibited persons in possession of firearms as well as those responsible as the “source” of the firearms to prohibited persons. The initiative was named in memory of Tulsa Police Sergeant Craig Johnson. Sgt. Johnson’s badge number, 2150, was selected for the initiative as a way to honor his life and his commitment to the Tulsa community. This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.
Towing Company Owner Sentenced for Tax Fraud and Evading Cash Transaction ReportingRead the Press Release
BOSTON – The owner of a Revere towing company was sentenced yesterday on charges of engaging in an under-the-table payroll fraud scheme that defrauded the government of more than $3.3 million.
Gennaro Angiulo, 49, of Nahant and Saugus, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to 42 months of probation with 18 months of home confinement and ordered to pay restitution of $1,769,486 and forfeiture of $430,000. Judge Woodlock also ordered that Angiulo complete 40 hours of community service per week during his term of home confinement and not be involved in running his business, GJ Towing, during this time period. The government recommended a sentence of 27 months in prison.
In November 2020, Angiulo pleaded guilty to one count of willful failure to collect and pay over taxes and one count of evading cash transaction reporting requirements.
For tax years 2014 through at least 2017, Angiulo paid a portion of the wages to employees of GJ Towing, in cash “under the table.” In doing so, Angiulo did not collect, account for or pay over to the IRS required withholding and FICA taxes. The cash payments to employees were funded, at least in part, by cashing checks from clients of GJ Towing and other third parties in groups totaling not more than $10,000 in a single day.
Acting United States Attorney Nathaniel R. Mendell and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement. Assistant U.S. Attorney Sara Miron Bloom of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
Three men admit participation in gambling operationRead the Press Release
AUGUSTA, GA: Two Waynesboro, Ga., men and a Greenwood, S.C., man have admitted to federal charges for participating in a longtime illegal gambling operation.
Grady Brandon Mobley, 44, and Daniel Cates, 50, both of Waynesboro, Ga., and Joel Rees, 59, of Greenwood, S.C, entered guilty pleas to Informations charging each of them with Prohibition of an Illegal Gambling Business, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Mobley also pled guilty to Fraud and False Statements.
In accordance with the plea agreement, Mobley faces a negotiated sentence of 12 months plus one day in federal prison, and has forfeited $340,084. He also agrees to pay $207,716 in restitution to the IRS and Georgia Department of Revenue, and a fine of $2,000. Cates agreed to the forfeiture of $100,000.
After plea hearings before U.S. District Court Chief Judge J. Randal Hall, each of the three men were released on bond pending sentencing and formal acceptance of the plea agreement at a later date.
“These men participated in an illegal gambling operation for at least a decade in the Waynesboro area, eventually funneling business through a foreign-based website,” said Acting U.S. Attorney Estes. “But even that offshore venture wouldn’t keep them out of the reach of diligent law enforcement professionals who turned the tables on this illicit operation.”
As described in court documents and testimony, Mobley operated as a “bookie” for an illegal sports betting operation for at least the past 10 years in Burke County, at first collecting bets and paying out winnings himself, and later through a sports betting website operated from Costa Rica.
In 2015, Mobley merged his operation and began splitting his profits with a smaller gambling ring operated by Jones. From 2015 to 2017, Mobley cashed bettor’s checks totaling approximately $220,000 at his parent’s check cashing business which operated out of the Mobley Package Shop in Girard, Ga. To help conceal the growing amount of cash involved in the transactions, Mobley enlisted the assistance of Cates, who admitted that he funneled approximately $250,000 in gambling proceeds through his Waynesboro tire store, Cates Firestone, in return for money and favors from Mobley.
During this period, Mobley admitted filing false information on his income tax returns to conceal the amount of proceeds from the illegal gambling operation.
“No matter how hard these defendants tried to hide their illegal operation, their greed ultimately caught up with them,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “FBI agents will pursue criminal activity that violates our Constitution, no matter where an investigation takes them, and along with the U.S. Attorney’s Office will hold them accountable.”
“Schemes concealing funds in order to evade income tax, such as those utilized by Mobley, are unfair to every taxpayer who obeys the law and pays their fair share,” said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey. “The public should know that IRS-Criminal Investigation will do everything we can to hold individuals accountable for their actions.”
The case is being investigated by the FBI and IRS Criminal Investigations, and prosecuted for the United States by Assistant U.S. Attorneys Tara M. Lyons and Asset Recovery Unit Chief Xavier A. Cunningham.
The International Rescue Committee (“IRC”) Agrees to Pay $6.9 Million to Settle Allegations That It Performed Procurement Fraud by Engaging in Collusive Behavior and Misconduct on Programs Funded by the United States Agency for International DevelopmentRead the Press Release
WASHINGTON – The Justice Department announced today that the International Rescue Committee (“IRC”) has agreed to pay $6.9 million to settle allegations under the False Claims Act related to United States Agency for International Development (“USAID”)-funded programming for beneficiaries affected by the conflict in Syria. The settlement announced on March 16, 2021, is part of a civil resolution involving the U.S. Attorney’s Office for the District of Columbia, USAID, and the USAID Office of Inspector General (OIG).
IRC is a global humanitarian aid, relief and development nongovernmental organization that provides emergency aid and long-term assistance to refugees. It is headquartered in New York, New York. In the early years of the conflict in Syria, IRC received USAID funding for humanitarian assistance programming, specifically to provide emergency cross-border humanitarian assistance to internally displaced persons located within Syria.
USAID’s OIG conducted investigations in Turkey into allegations that IRC staff participated in a collusion and kickback scheme with a Turkish supply ring, which included bid-rigging activities in the selection of goods and services contracts for cross-border humanitarian relief into Syria. USAID OIG and the USAO-DC Civil Division also investigated allegations that IRC staff received kickbacks, steered bid procurement tenders, and allowed conflicts of interest between staff and suspect vendors. The investigation revealed that conduct by IRC staff resulted in the procurement of goods at unreasonably high prices, which were subsequently invoiced to USAID from October 2012 to December 2015.
USAO-DC Civil Division and USAID OIG thoroughly examined all source documents including contracts, proposals, contract terms, and invoices, in the lead-up to IRC’s agreement to pay the United States $6,934,500 to settle the False Claims Act allegations.
We are happy to bring this case to resolution and will continue to work with Offices of Inspectors General to ensure that humanitarian aid dollars that are targeted for humanitarian assistance for displaced persons are not compromised by lax oversight controls but are used appropriately to help those in dire need,” said Acting United States Attorney Channing D. Phillips.
Acting USAID Inspector General Thomas J. Ullom stated, “This settlement sends a strong message that USAID-funded implementers must have systems in place to detect, deter, and prevent fraud in humanitarian assistance programming. Aid organizations that lack proper monitoring and oversight controls over their procurement processes put taxpayer dollars at risk and compromise the delivery of critical assistance to those in need. USAID OIG’s global investigative operations will continue to shine a light on and drive consequences for fraud affecting USAID programming.”
Statement of Acting U.S. Attorney Gonzalez on Anti-Asian Hate Crimes and Bias ActsRead the Press Release
BOISE – Acting U.S. Attorney Rafael M. Gonzalez, Jr. and Special Agent in Charge Dennis W. Rice of the Federal Bureau of Investigation’s (FBI) Salt Lake City Field Office today highlighted the federal role in countering hate crimes and bias acts—especially those targeting Asian Americans and Pacific Islanders.
“No one in Idaho should live in fear of violence because of who they are, what they look like, or what part of the world they or their families came from,” said Acting U.S. Attorney Gonzalez. “The U.S. Attorney’s Office and the FBI are committed to bringing all of our tools to bear in supporting our Asian American and Pacific Islander community groups here in Idaho, as we have witnessed a rise in hate and bias incidents occurring across the country. These crimes, and other acts of hate and bias, have no place in our community. I urge all Idahoans to report hate-based crimes to either local or federal law enforcement.”
The U.S. Attorney’s Office and FBI review information about potential hate crimes from members in the community and also provide assistance to local, state, and tribal law enforcement with investigations of hate crimes. Office personnel have been reaching out to community groups to explain the federal role and encourage reports to local and/or federal law enforcement.
“Hate crimes are not only an attack on an individual, but an entire community,” said Special Agent in Charge Dennis Rice of the Salt Lake City FBI. “As hate crimes are the highest priority of the FBI’s civil rights program, I want to assure the public that we will work diligently with our law enforcement partners to thoroughly investigate any allegations of such crimes."
The most recent statistics on hate crimes are available here 2019 Hate Crime Statistics from the FBI’s Uniform Crime Report.
Additional resources regarding hate crimes and bias incidents can be found by visiting these links: civilrights.justice.gov/#your-rights and fbi.gov/investigate/civil-rights/hate-crimes#FBI-Resources.
For information about contacting the U.S. Attorney’s Office in the District of Idaho visit: www.justice.gov/usao-id/. The FBI’s Salt Lake City Field office can be reached at (801) 579-1400. To submit an online tip, visit www.tips.fbi.gov/.
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San Jose Physician Charged with Unlawfully Distributing Hydrocodone and OxycodoneRead the Press Release
SAN JOSE – Donald Siao appeared today to face federal charges that he illegally distributed hydrocodone and oxycodone pills in his medical practice and committed health care fraud, announced Acting United States Attorney Stephanie M. Hinds, Drug Enforcement Administration Acting Special Agent in Charge Peter A. Vainauskas, Federal Bureau of Investigation Special Agent in Charge Craig D. Fair, U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) Special Agent in Charge Steven Ryan, and the California Department of Justice, Division of Medi Cal Fraud and Elder Abuse (DMFEA).
The federal complaint alleges that Siao, 55, of San Jose, is a medical doctor licensed by the state of California who conducted his practice in San Jose. His license authorized him to write prescriptions for Schedule II through V controlled substances for medical care. The complaint alleges that a prescription monitoring system identified Siao was a high prescriber, exemplified by a recent year when Siao wrote 8,201 prescriptions for controlled substances, including large quantities of hydrocodone and oxycodone and many instances of the dangerous combination of opioid, muscle relaxant, and benzodiazepine. An investigation followed.
During the investigation, the complaint alleges that undercover law enforcement agents posed as new patients and met with Siao at his medical practice. The complaint describes that during initial visits, the agents complained of pain in vague or general terms. Siao conducted little or no physical examinations, the complaint alleges. The initial and subsequent visits usually lasted approximately two minutes. In initial visits Siao prescribed hydrocodone or oxycodone, and the complaint describes that in follow-up appointments Siao continued to prescribe the same medicine and increased the amounts.
In one example in the complaint, an uncover agent posing as a patient met with Siao at an initial appointment and complained of pain. Following an eight second physical examination, Siao wrote a prescription for 30 pills of Norco, a hydrocodone-acetaminophen combination. In subsequent visits as short as 2 minutes and 10 seconds, the undercover agent requested larger prescriptions for reasons that included he had given away pills to his employees as work incentives and that he had ran out of pills when he went to a concert. Siao increased the size of the prescriptions, eventually writing a prescription for 90 Norco pills at his last visit. In another example in the complaint, an undercover agent requested and received a larger prescription of Norco so he could pay back friends with the pills. The agent then requested a prescription for Marinol, explaining he would not take the Marinol but rather would display the prescription at work as a pretext for his positive drug tests, saying “that way it covers the dirty drug test.” Siao replied “gotcha” and wrote the prescription.
The complaint also charges Siao with health care fraud and alleges that on May 9, 2018, he wrote alprazolam and oxycodone prescriptions for a patient without any legitimate medical purpose.
Siao is charged with three counts of illegal distribution of hydrocodone and one count of illegal distribution of oxycodone, all in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(C). If convicted of any of these counts, he faces a maximum penalty of 20 years in prison and a maximum fine of $1,000,000. Siao is also charged with two counts of health care fraud, in violation of 18 U.S.C. § 1347. If convicted of either of these counts, he faces a maximum penalty of 10 years in prison and a maximum fine of $250,000. However, any sentence following conviction would 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.
Siao made an initial appearance today in federal court before the Honorable Susan van Keulen, United States Magistrate Judge. He remains out of custody on bond. His next scheduled appearances are a hearing to review bond conditions on March 24, 2021, at 1 p.m., before U.S. Magistrate Judge van Keulen and a hearing for status on indictment set for April 19, 2021, at 1 p.m., before United States Magistrate Judge Robert M. Illman.
The charges contained in the criminal complaint are mere allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being prosecuted by the United States Attorney’s Office for the Northern District of California. This prosecution is the result of an investigation by DEA, FBI, HHS-OIG, and DMFEA. Through DMFEA, the California Department of Justice regularly works with other law enforcement agencies to investigate and prosecute fraud perpetrated on the Medi Cal program against a wide variety of healthcare providers, including doctors and pharmaceutical companies. Through DMFEA’s civil and criminal enforcement efforts, the Attorney General has recovered tens of millions of dollars from and secured the convictions of hundreds of Medicaid providers who violate California laws through fraudulent and wrongful practices.
San Diego Law Enforcement Leaders Condemn Anti-Asian Hate CrimesRead the Press Release
Kelly Thornton (619) 546-9726
NEWS RELEASE SUMMARY – March 19, 2021
SAN DIEGO – Acting U.S. Attorney Randy Grossman, San Diego FBI Special Agent in Charge Suzanne Turner and San Diego County District Attorney Summer Stephan today condemned racism, xenophobia, and intolerance against Asian Americans and Pacific Islanders in the United States and urged members of the community to report hate-based crimes and incidents to law enforcement.
“Acts of hate have no place in our community,” Grossman said. “No one should be targeted because of who they are or where they are from. When someone is targeted because of their race or ethnicity, terror reverberates to every member of their community. We want to receive reports of activities motivated by hate so that we can address civil rights violations, as well as hate and bias incidents.”
“The FBI and our partners at the United States Attorney’s Office and the District Attorney’s Office simply won’t tolerate crimes spurred by hate and which are meant to intimidate and isolate the groups targeted,” said SAC Turner. “People of all races, ethnicity and national origins deserve to feel safe in their communities. If a crime is shown to be motivated by bias, it will be investigated by the FBI and the perpetrators held responsible for their actions.” SAC Turner emphasized, “Today, we are reminding the public to report information regarding any hate crime to the FBI.” Members of the public may report a potential hate crime to the Federal Bureau of Investigation at 1-800-CALL-FBI or online at www.tips.fbi.gov.
“Hate crimes are despicable and inexcusable, said Stephan. “Protecting our community from hate crimes is a priority for my office because hate erodes our right to equality and fairness, leaves a lasting impact on the victim and instills fear in the wider community. Hate won’t be tolerated, and I encourage the community to report both hate incidents and hate crimes.” Stephan said the San Diego County District Attorney's Office has seen a three-fold increase in hate crimes targeting Asian communities in San Diego County and is currently prosecuting several such criminal cases. The DA’s Office has established an online tool at SanDiegoDA.com where the public can directly report suspected hate crimes.
The U.S. Attorney’s Office and the Federal Bureau of Investigation review information and community reports about potential hate crimes for potential prosecution, and also provide assistance to local, state, and tribal law enforcement with investigations of hate crimes through their participation in the San Diego Regional Anti-Hate Crime Coalition. Local leaders, including Assistant U.S. Attorney and Civil Rights Enforcement Coordinator Christopher Tenorio and Deputy District Attorney and Lead Hate Crimes Prosecutor Leonard Trinh, will participate in a webinar hosted by Alliant International University ABC 10 News, San Diego, on March 23, 2021, titled “Unpacking Domestic Terrorism: Combating Hate & Targeted Violence Against the Asian-American Community.”
For information about this event, please see attached flyer.
The most recent statistics on hate crimes are available here 2019 Hate Crime Statistics from the FBI’s Uniform Crime Report.
Additional resources regarding hate crimes and bias incidents are here:
https://civilrights.justice.gov/#your-rights
https://www.fbi.gov/investigate/civil-rights/hate-crimes#FBI-Resources
Russellville Woman Sentenced to More Than 21 Years in Prison for Kidnapping in Aid of RacketeeringRead the Press Release
LITTLE ROCK—A Russellville woman was sentenced today for her role in two kidnappings carried out on behalf of a white supremacist gang. Amanda Rapp, 40, was sentenced to 262 months, or 21.8 years, in federal prison by United States District Judge Brian S. Miller.
Rapp pleaded guilty on October 29, 2020, to two counts of Kidnapping in Aid of Racketeering. In addition to the term of 262 months’ imprisonment, Judge Miller also sentenced Rapp to five years of supervised release following her term of imprisonment.
The investigation began in 2016, when local and federal agencies initiated a joint investigation to identify, infiltrate, and dismantle drug trafficking organizations in Russellville. Agents identified multiple individuals who were trafficking methamphetamine in the Pope County area. The investigation revealed that Rapp was an associate of the New Aryan Empire (NAE), a white supremacist organization that began as a prison gang and functioned as a drug trafficking organization.
In May 2017, Rapp and other NAE members and associates kidnapped two individuals who they suspected of cooperating with law enforcement, which violated the rules imposed by leaders of NAE. The two victims were held against their will for over 24 hours, during which time NAE members and associates restrained the victims and assaulted them. During the kidnapping, one of the assailants heated a knife with a torch and placed the hot knife on the face of one of the victims, causing severe and permanent disfigurement.
“Today’s sentence in Operation ‘To The Dirt’ is an important step in pushing back against the turmoil brought about by gang activity in the River Valley,” said Jonathan D. Ross, Acting United States Attorney for the Eastern District of Arkansas. “We will continue to investigate the violent activities that stem from drug trafficking in this as well as other corrupt organizations.”
“This case was a joint effort with our state, local and federal partners and stands as a great example of a cooperative and complimentary investigation,” stated Clayton R. Merrill, Resident Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). “ATF continues to remain committed to stopping those who use firearms to further their criminal activities and who are preying on our communities.”
“Our neighborhoods deserve to exist without fear and intimidation inflicted by violent drug gangs like the New Aryan Empire,” said Drug Enforcement Administration Special Agent in Charge Brad L. Byerley. “The unprecedented collaboration between all law enforcement agencies represented in this region exemplifies the continuing unified goal of keeping our neighborhoods safe and secure. The sentencing of this individual will undoubtedly convey a strong and unified message to those who continue to engage in criminal activities, threatening the safety of our citizens.”
“The U.S. Postal Inspection Service will always prioritize cases involving violent crimes and narcotics. We are proud to have investigated this case with our federal and local law enforcement partners to achieve this end,” said Thomas Noyes, Inspector in Charge of the Fort Worth Division. “We thank the U.S. Attorney’s Office for their dedication to this case as well. Working together, we will continue to identify, and bring to justice, those who threaten our communities.”
“I greatly appreciate the cooperative investigative effort of our investigators in conjunction with our federal, state, and local law enforcement partners that resulted in successful resolution of these cases,” said David Ewing, Chief of the Russellville Police Department. “The teamwork displayed by those involved shows that our cumulative efforts reinforces our commitment to safeguarding our respective communities from this type of criminal behavior.”
Rapp was charged on September 3, 2019, in a federal indictment that charged more than 50 people from the Pope County area with violations of the Racketeer Influenced and Corrupt Organizations Act, Violent Crimes in Aid of Racketeering, and numerous gun and drug violations. The case is named “To The Dirt,” a reference to the NAE slogan referring to the rule that members must remain in the NAE until they die. The charges allege acts involving attempted murder, kidnapping, maiming, and conspiracy to distribute methamphetamine. Of the 55 total defendants charged in “Operation ‘To The Dirt,’” 49 defendants have pleaded guilty, and nine of those defendants have already been sentenced to prison terms: Jared Dale, 84 months; Britanny Conner, 120 months; Keith Savage, 120 months; Joseph Pridmore, 150 months; Daniel Adame, 262 months; Justin Howell, 155 months; James George, 70 months; Amos Adame, 121 months; and Skippy Don Sanders, 262 months. The remaining defendants are awaiting trial.
The investigation was conducted by ATF, DEA, the United States Postal Inspection Service, the Pope County Sheriff’s Office, Fifth Judicial Drug Task Force, and the Russellville Police Department, with assistance from the FBI.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Rochester Man Who Pleaded Guilty to Rioting Going to Prison for Burning A Mobile Office Trailer During Civil UnrestRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Javon Hardy, 25, of Rochester, NY, who pleaded guilty to rioting, was sentenced to serve 12 months in prison by U.S. District Judge Charles J. Siragusa. Hardy was also ordered to pay restitution in the amount of $14,504.
“Javon Hardy is one of 16 defendants charged in connection with violent protests that occurred in Rochester and Buffalo during a period of civil unrest in 2020, and the first to be sentenced to prison,” stated U.S. Attorney Kennedy. “While my Office will zealously protect every individual’s right to free speech, we will also zealously protect public safety by holding law breakers accountable for their criminal conduct.”
Assistant U.S. Attorney Douglas E. Gregory, who handled the case, stated that on May 30, 2020, in the City of Rochester, the defendant, along with numerous other individuals, participated in a public protest near the Public Safety Building located at 185 Exchange Street. At various times during the protest, the gathering turned violent, resulting in significant property damage and looting.
During the course of his rioting, Hardy approached a mobile office trailer located at the corner of Court Street and Exchange Boulevard. After walking up the stairs to the trailer, the defendant reached through a broken window and lit an object inside the trailer which started the fire. Hardy exclaimed “Let that (expletive) burn,” and “If it’s not on fire, I didn’t do my job.” The burning of the trailer and defendant’s statements were captured on Facebook Live, which streamed the burning of the trailer on the internet. The mobile office trailer was completely destroyed by fire.
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Rochester Police Department, under the direction of Chief Cynthia Herriott-Sullivan; the Gates Police Department, under the direction of Chief James VanBrederode; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; the New York State Police, under the direction of Major Barry Chase; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley; the Greater Rochester Area Narcotics Enforcement Team; and the Rochester Fire Department, under the direction of Fire Chief Willie Jackson.
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Portland man sentenced to prison for gun and drug crimesRead the Press Release
Tacoma – A Portland, Oregon, resident was sentenced today in U.S. District Court in Tacoma to 20 months in prison and 3 years of supervised release for being a felon in possession of a firearm and possession of heroin and oxycodone with intent to distribute, announced Acting U.S. Attorney Tessa M. Gorman. HUSHAM ZEYAD AL-ANI, 31, was arrested in October 2019, following an undercover law enforcement operation where AL-ANI, who goes by the name “Ash,” purchased two assault rifles from an undercover agent. At the sentencing hearing, U.S. District Judge Robert J. Bryan said, “You’ve gotten into a lot of trouble and committed a lot of crimes.”
According to records filed in the case, AL-ANI has felony convictions in Washington (possession of heroin with intent to deliver and illegal firearm possession–2014) and Oregon (burglary–2017) which prohibit him from possessing firearms. Nevertheless, in the fall of 2019, law enforcement got word that AL-ANI was attempting to purchase firearms. An undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) posed as a gun seller offering firearms for sale. AL-ANI arrived at the meet location in a parking lot in Vancouver and inspected two AK-47-type assault rifles. AL-ANI paid the agent and took possession of the guns, whereupon he was immediately arrested by Vancouver Police and ATF agents.
Following the arrest, law enforcement discovered AL-ANI had a 9mm Glock-style unserialized, privately made polymer pistol stowed in his car, and had heroin, a small amount of methamphetamine, and oxycodone pills in his possession.
AL-ANI pleaded guilty in November 2020.
The case was investigated by the ATF and the Vancouver Police Department.
The case was prosecuted by Assistant United States Attorney Gregory A. Gruber.
Pittsfield Man Pleads Guilty to Marijuana and Tax OffensesRead the Press Release
BOSTON – A Pittsfield man pleaded guilty today in federal court in Springfield to marijuana and tax offenses.
Jacob Sweener, 30, pleaded guilty to one count of conspiracy to distribute marijuana, one count of possession with intent to distribute marijuana and two counts of filing a false tax return. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for June 21, 2021.
Sweener admitted that from 2013 to January 2017 he conspired with others to distribute marijuana. On Jan. 10, 2017, 41 pounds of marijuana and over $69,000 in cash were seized during a search of his home. Sweener also filed false income tax returns for 2014 and 2015 by substantially under-reporting his income by more than $300,000 and failing to pay more than $90,000 that he owed in federal income taxes.
The charges of conspiracy to distribute marijuana and possession with intent to distribute marijuana each provide for a sentence of up to five years in prison, a lifetime of supervised release, a fine of $250,000 and forfeiture. The charge of filing a false tax return provides for a sentence of up to three years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Acting Assistant Attorney General David A. Hubbert of the Department of Justice’s Tax Division; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement today. Assistant U.S. Attorney Alex J. Grant of Mendell’s Springfield Branch Office and Trial Attorney Christopher O’Donnell of the Justice Department’s Tax Division are prosecuting the case.
Orthopedic Practice and Physician Pay $80K to Resolve Controlled Substances Act AllegationsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that ORTHOPAEDIC SPECIALTY GROUP, P.C., and DR. LAWRENCE KIRSCHENBAUM entered into a civil settlement agreement with the federal government and have agreed to pay a total of $80,000 to resolve allegations that they violated civil provisions of the Controlled Substances Act.
Orthopaedic Specialty Group, P.C. (“OSG”) is an orthopedic practice with locations in Bridgeport, Fairfield, Milford and Shelton. Kirschenbaum practices out of OSG’s Fairfield location, and specializes in interventional pain management. The allegations against OSG and Kirschenbaum involve the claim that on 40 separate occasions between April 2017 and January 2019, Kirschenbaum’s patients received “early fills” of their prescriptions for controlled substances. When a prescription is filled early, it is filled before the supply provided pursuant to an earlier prescription is or should be exhausted. The government alleges that these 40 “early fills” violated the Controlled Substances Act and its implementing regulations.
Congress, with the passage of the Controlled Substances Act, took steps to create “a closed system” of distribution for controlled substances in which every facet of the handling of the substances – from their manufacture to their consumption by the ultimate user – was to be subject to intense governmental regulation. This mission was taken against the backdrop of trying to prevent the diversion and abuse of legitimate controlled substances, while still ensuring that an adequate supply of those substances meet the medical and scientific needs of the United States.
As part of the settlement agreement, OSG and Kirschenbaum have agreed to stop dispensing Schedule II controlled substances from OSG’s offices. Instead, OSG patients will fill their prescriptions for these opioids at pharmacies. OSG has agreed to incorporate this change in protocol into a written policy, and will disseminate the written policy to all of OSG’s staff and physicians.
This investigation was conducted by the Drug Enforcement Administration’s Office of Diversion Control, and the Connecticut Department of Consumer Protection, Drug Control Division. The case was prosecuted by Assistant U.S. Attorney Sara Kaczmarek.
Omaha Man Convicted of Child EnticementRead the Press Release
Acting United States Attorney Jan Sharp announced that James Joiner, 48, of Omaha, Nebraska, was found guilty on March 18, 2021, following a two-day jury trial in federal court for Attempted Enticement of a Minor. United States District Judge Brian C. Buescher scheduled Joiner’s sentencing for June 16, 2021, at 11:00 a.m. Joiner faces up to life in prison, with a mandatory minimum of ten years. Joiner remains detained pending sentencing.
In March 2020, Joiner responded to an online prostitution advertisement by texting the phone number listed in the ad. An undercover law enforcement officer purporting to be a 15-year-old female responded to Joiner’s texts. Joiner made arrangements to meet the 15-year-old female at a gas station in Omaha, offering to pay the female and buy her an iTunes gift card. When Joiner arrived at the gas station, he was detained by law enforcement. Joiner admitted to answering the prostitution ad and texting with what he believed to be a 15-year-old female, but testified that he intended to try to talk the female into doing some house cleaning work for him as an alternative way to make money.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Douglas County Sheriff’s Office and the Omaha FBI's Child Exploitation and Human Trafficking Task Force.
Novus Hospice CEO Pleads Guilty to Healthcare FraudRead the Press Release
The CEO of a local hospice agency has pleaded guilty to defrauding Medicare and Medicaid, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Bradley J. Harris, the 39-year-old former head of Novus and Optimum Health Services, pleaded guilty on Friday to conspiracy to commit healthcare fraud and healthcare fraud.
“Mr. Harris scammed federal healthcare programs out of millions of dollars, and worse yet, denied vulnerable patients the medical oversight they deserved, writing pain prescriptions without physician input and allowing terminally ill patients to go unexamined,” said Acting U.S. Attorney Prerak Shah. “The Justice Department cannot allow unscrupulous business people to interfere with the practice of medicine. We are determined to root out healthcare fraud.”“In addition to causing fraudulent billing for tens of millions of dollars, Mr. Harris preyed upon patients and families that did not have a true understanding of Novus and hospice services. The core of the company was rooted in deception, and the lack of physician oversight allowed Mr. Harris to make medical decisions for his own financial benefit,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “We will continue to work tirelessly with our state and federal partners to hold those who commit health care fraud accountable and seek justice for patients that are harmed in furtherance of fraud schemes.”
According to his plea papers, Mr. Harris admitted that from 2012 to 2016, he billed Medicare and Medicaid for hospice services that were not provided, that were not directed by a medical professional, or that were provided to patients who were not actually eligible for hospice care. He further admitted that he used blank, pre-signed controlled substance prescriptions to doll out potent drugs without physician input.
Mr. Harris admitted that two of his coconspirators, Dr. Mark Gibbs and Dr. Laila Hirjee, frequently certified that that his hospice patients faced terminal illnesses without actually examining with the patients in person, as required by Medicare. (A “terminal” patient is one with a life expectancy of six months or less, according to the Department of Health & Human Services.) The doctors were paid around $150 for each false order they signed.
Mr. Harris also admitted that Dr. Gibbs, Dr. Hirjee, and another physician, Dr. Charles Leach, left him blank controlled substance prescriptions, sometimes a whole pad at a time. This allowed Mr. Harris, an accountant by trade, to “prescribe” schedule II controlled substances to hospice beneficiaries without the guidance of a medical professional.
In plea papers, Mr. Harris admitted that in summer 2014, he realized he could avoid exceeding Medicare’s aggregate hospice cap by enrolling an influx of first-time hospice patients. So, he negotiated an agreement with a company called Express Medical that allowed him to access potential patient’s confidential medical information in return for using Express Medical for laboratory services and home health visits. His wife and other Novus staff then called on individuals that had at some point been patients of Express Medical to recruit them for Novus hospice services, regardless of whether they were eligible to receive benefits.
When the Center for Medicare & Medicaid Services suspended Novus based upon credible allegations of fraud, Mr. Harris and simply transferred patients from Novus to a new company, “Company A.” Dr. Gibbs became a medical director for the “new” hospice company, which used Novus staff and transferred hospice reimbursements back to Novus, Mr. Harris admitted.
The defendant now faces up to 14 years in federal prison. His sentencing hearing has been set for Aug. 3 before Chief U.S. District Judge Barbara M.G. Lynn.
Ten of Mr. Harris’ codefendants, including Dr. Leach, have already pleaded guilty. Four more, including Dr. Gibbs and Dr. Hirjee, are slated for trial on April 5.
The Federal Bureau of Investigation’s Dallas Field Office, the U.S. Department of Health & Human Services Office of Inspector General (HHS-OIG), and the Texas Attorney General’s Medicaid Fraud Control Unit conducted the investigation. Assistant U.S. Attorneys Donna Strittmatter Max, Marty Basu, and Chad Meacham are prosecuting the case.
Newark Man Arrested on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Jesse C. DeJohn, 25, of Newark, NY, was arrested and charged by criminal complaint with possession of child pornography. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that according to the complaint, on January 14, 2021, during the execution of a search warrant by the New York State Police at the defendant’s residence, investigators seized a desktop computer and a USB thumb drive. A forensic search of DeJohn’s electronic devices recovered approximately 721 images and five videos containing child pornography.
The defendant made an initial appearance this morning before U.S. Magistrate Judge Marian W. Payson and was detained.
The complaint is the result of an investigation by the New York State Police, under the direction of Major Barry Chase, and the Unites States Department of Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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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New Orleans Man Sentenced for Heroin Conspiracy and Firearm ChargesRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that on March 18, 2021, JOHN JONES, age 46, of New Orleans, was sentenced by United States District Judge Barry W. Ashe after previously pleading guilty to one count of conspiracy to distribute and to possess with intent to distribute more than one kilogram of heroin and one count of possessing a firearm after a felony conviction.
According to court documents, JONES and others conspired to distribute and to possess with intent to distribute one kilogram or more of heroin between sometime prior to July 19, 2017 and on or about June 29, 2018. Additionally, on or about April 5, 2018, JONES possessed three firearms. JONES was prohibited from possessing firearms because he was convicted in 2002 of conspiracy to possess with the intent to distribute 50 grams or more of cocaine base.
United States District Court Judge Ashe sentenced JONES to 10 years of imprisonment, followed by five years of supervised release. The Court also imposed a $200 mandatory special assessment.
U.S. Attorney Duane A. Evans praised the work of the Federal Bureau of Investigation, the Drug Enforcement Administration, and the New Orleans Police Department in investigating this matter. Assistant United States Attorneys Maria Carboni and Jonathan L. Shih were in charge of the prosecution.
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NDTX Round up: March 12-18Read the Press Release
SENTENCING – RENE RANGEL-MANJARREZ
On March 12, Rene Rangel-Manjarrez, 34, was sentenced to 13 months in federal prison for making a false statement during the purchase of a firearm. Rangel-Manjarrez was recruited and paid money by Jose Celby Hernadez to purchase firearms on behalf of Hernandez. Rangel-Manjarrez traveled from Brownsville, TX to Pleasanton, TX to purchase firearms from a licensed dealer. He stated on ATF Form 4473s that he was the actual buyer of the firearms, when in fact he was not. He purchased the firearms on behalf of and for Hernandez. The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Phelesa Guy prosecuted the case.
GUILTY PLEA – ERIC GRZYWINSKI
On March 16, Eric Grzywinski, 49, plead guilty to attempted production of child pornography. Law enforcement received a cybertip from the National Center for Missing and Exploited Children (NCMEC) concerning a suspicious social media user on Twitter that was posting images of child pornography to his social media page. Grand Prairie Police obtained a search warrant for the individual’s account which was traced back to a local motel. A hotel employee identified Grywinski to law enforcement as a hotel customer. In August 2019, law enforcement arrested Grzywinski on child pornography charges. During a post arrest interview, he admitted to chatting with a minor from Alabama on a dating app. Grzywinski admitted to exchanging lewd and lascivious images with her and posting images on Twitter that could be considered alarming. Grywinski faces up to 50 years in federal prison for his crimes. The FBI and the Garland Police Department conducted the investigation. Assistant U.S. Attorney Camille Sparks is prosecuting this case.
GUILTY PLEA – MA EUGENIA CERVANTES PASTRANA
On March 18, Ma Eugenia Cervantes Pastrana, 38, plead guilty to conspiracy to possess with intent to distribute a controlled substance. In March 2019, Pastrana agreed to transport a loaded vehicle for a drug trafficking organization. Pastrana believed she was transporting bulk proceeds of drug trafficking that were concealed in the vehicle she was driving. Law enforcement stopped Pastrana in Hunt County, Texas and located approximately 24 kilos of heroin in the vehicle. She now faces up to 20 years in federal prison for her crimes. The Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
Man Sentenced to Prison for Sextorting Numerous Children Around the CountryRead the Press Release
A Virginia man was sentenced today to 31 years in prison for a years-long sextortion scheme in which he coerced numerous preteen and teenage victims to create and send him images of themselves engaged in sexually explicit conduct. The defendant was further sentenced to a lifetime of supervised release and ordered to pay restitution to the victims.
Filippo Parlagreco, 36, of Warrenton, pleaded guilty to production, distribution, and possession of child pornography on Nov. 5, 2020. According to court documents, the defendant — posing as a teenage girl on social media — began communicating with a 14-year-old girl and persuaded her to send him sexually explicit photographs of herself. After she did so, he posted the explicit photographs to another social media application and demanded that she produce and send him additional explicit images if she wanted them removed. Despite the victim blocking him on social media and reporting the crimes to law enforcement, the defendant continued to contact her with demands for sexually explicit images over the course of three years. Once law enforcement was able to identify the defendant, further investigation revealed that the defendant sexually exploited at least 13 other minor victims nationwide in a similar manner, including some as young as 11 years old; that he traded child sexual abuse material with other offenders online; and that he possessed hundreds of images and videos of child sexual abuse material in an encrypted portion of his phone.
“This case demonstrates the grave dangers that children face online, where predators can pretend to be anyone and use sophisticated tactics to exploit the most vulnerable among us,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The defendant used an array of technology to target and manipulate children for his own perverse pleasure. As this prosecution shows, the Department will continue to marshal its resources to pursue child predators and hold them accountable for victimizing children.”
“The defendant manipulated, coerced, and tormented children across the country by using an arsenal of repulsive tactics, which subjected these vulnerable minors to trauma that will painfully stay with them and their families forever,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “While no amount of jail time can ever undo the devastating physical and emotional damage the defendant has caused, we hope that today’s sentence will provide some measure of justice for the victims.”
“The FBI and its local, state, and federal partners work tirelessly on a daily basis to investigate and bring to justice individuals engaged in the exploitation and sexual abuse of children,” said Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office. “With this sentencing, we have removed a dangerous child predator from the community and sent a clear message that acts of sextortion against minors over the internet are taken seriously and will be investigated and brought to justice.”
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, which is composed of FBI Agents, along with task force officers from federal, state, and local law enforcement agencies in Northern Virginia and the District of Columbia. Significant assistance was provided from local law enforcement throughout the country.
Trial Attorneys Jessica Urban and Gwendelynn Bills of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jonathan Keim of the Eastern District of Virginia prosecuted the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Local Man Sentenced to 20 Years in Federal Prison for Multiple Armed CarjackingsRead the Press Release
Memphis, TN – Antonio Bunting, 23, has been sentenced to 240 months in federal prison for committing multiple carjackings and brandishing a firearm during those crimes of violence. Joseph C. Murphy, Jr., Acting U.S. Attorney, announced the sentence today.
According to information presented in court, on June 28, 2018, victim R.D. was driving southbound on Shelby Drive when flagged down by two males with children asking for a ride. The victim pulled over, and one of the males pointed a handgun and told him to get out of the vehicle, a 2014 Toyota Corolla. When the victim did not immediately comply, the men assaulted him with a firearm. The males fled in his vehicle, leaving him with injuries to his knee, lip, and face. On July 1, 2018, the vehicle was located on Sanford Road. Angelo Bunting’s fingerprints were discovered on the vehicle. The victim observed Bunting in a photo lineup and stated he resembled the man with a firearm at the driver’s window.
On July 6, 2018, victim E.S. was at the Shell station on Millbranch Road when he observed two males exit a red vehicle and approach him as he returned to his car after paying inside. The first suspect pointed a firearm at the victim and demanded his keys, while the second suspect put a firearm to the victim’s back and demanded money. The victim gave the suspects his keys, wallet, and cell phone. Both fled in the victim’s vehicle, a 2011 Chevrolet Impala; an unidentified individual drove the red vehicle away separately. The victim’s vehicle was later located on Elvis Presley Boulevard. The victim identified Bunting in a photo lineup and stated that he looked similar to one of the suspects.
On July 13, 2018, victim J.M. was washing his car, a 2013 Volkswagen Passat, at a carwash on Holmes Road when approached by two suspects, both of whom pointed firearms at him and demanded his vehicle. The victim complied, and the suspects left the scene. The vehicle was tracked by GPS in Southaven, Mississippi. Bunting’s fingerprints were found in the interior of the vehicle. Victim J.M. positively identified Angelo Bunting as one of the suspects who carjacked him.
On July 31, 2018, Bunting was arrested by officers with the Memphis Police Department’s Victim Crime Unit and the Multi Agency Gang Unit in connection with these crimes, as well as other robbery charges, which are still pending in state court. Bunting was originally indicted for these violent crimes on October 23, 2018. https://www.justice.gov/usao-wdtn/pr/five-men-indicted-carjacking-and-armed-robbery-memphis. On October 26, 2020, Bunting pleaded guilty to the offenses as charged.
On March 17, 2021, U.S. District Judge Mark Norris sentenced Bunting to 20 years in federal prison to be followed by two years of supervised release. There is no parole in the federal system.
The Memphis Police Department–Violent Crimes Unit (VCU) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case.
Special Assistant U.S. Attorney Samuel D. Winnig and Assistant U.S. Attorney Elizabeth Rogers prosecuted this case on behalf of the government. SAUSA Winnig is currently assigned from the Shelby County District Attorney General’s Office to prosecute violent crimes and firearms offenses in federal court.
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Justice Department Files Civil Action to Shut Down Mississippi Tax Return PreparerRead the Press Release
The United States has filed a complaint in the U.S. District Court for the Northern District of Mississippi seeking to bar a Senatobia, Mississippi, tax return preparer from preparing federal income tax returns for others.
The civil complaint was filed against Kathy R. Moton and alleges that she owns and operates defendant K&M Tax Essentials LLC. According to the complaint, Moton and K&M Tax Essentials prepared and filed hundreds of tax returns from 2018 through 2020. The complaint alleges that defendants prepared returns that claimed false American Opportunity Tax Credits, which provide a tax credit for tuition and expenses for an undergraduate or other recognized education credential. The complaint further alleges that defendants submitted forms to the IRS falsely attesting that they confirmed the taxpayer’s eligibility for the credits, but concealed the fraudulent claims from their customers by omitting forms from the copies of returns provided to those customers. According to the complaint, defendants’ practices resulted in a loss to the IRS of over $1 million.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a list of important reminders for taxpayers who are about to file their 2020 tax returns, including how to prepare for a smooth filing process.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronic federal tax forms that can be filled out and filed online for free.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Files Civil Action to Shut Down California Tax Return PreparerRead the Press Release
The United States has filed a complaint in the U.S. District Court for the Eastern District of California seeking to bar a Visalia, California tax return preparer from owning or operating a tax return preparation business and preparing federal income tax returns for others.
The civil complaint was filed against Esther Oregon both individually and doing business as “Mex Tax Service,” which the complaint alleges is a sole proprietorship. The complaint alleges Oregon and Mex Tax Service prepared federal income tax returns for taxpayers that underreported their customers’ federal tax liabilities for the 2017 and 2018 tax years by including, among other things, inflated or false claims for tax credits, itemized deductions, and income or business expense deductions.
According to the complaint, defendants prepared over 3,600 tax returns in aggregate for tax years 2017 and 2018. The complaint alleges that the IRS interviewed certain customers of Oregon and/or Mex Tax Service about their 2017 and 2018 tax returns and calculated, based on those interviews, an average underreporting of $4,120 per return in 2017 and $2,714 per return in 2018. According to the complaint, the estimated total direct harm to the Treasury, based on those calculations, exceeds $6.9 million.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a list of important reminders for taxpayers who are about to file their 2020 tax returns, including how to prepare for a smooth filing process.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jury Convicts Bloods Gang Member of Murder, Robbery, and Drug Trafficking ChargesRead the Press Release
NEWPORT NEWS, Va. – A federal jury convicted a Washington, D.C. man today on charges of murder with a firearm, robbery, and conspiracy to possess and distribute cocaine.
According to court records and evidence presented at trial, on January 15, 2017, Dawhan Archible, 27, and his co-conspirators, murdered Luke Michael Dudley, 23, with a firearm in the aftermath of a drug deal. Archible is a self-proclaimed “bloods boss” and admitted he has been in the Bloods gang since he was 13 years old.
“Today’s verdict represents justice for victim Luke Dudley and his family, who will forever endure the unimaginable pain and heartache of losing him,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA remains steadfast in our fight against all forms of violence, and we are grateful to our prosecutors and law enforcement partners for their tireless commitment and dedication to this case.”
On the morning of the murder, Archible traded heroin for cocaine, which he then traded with Dudley for what he believed to be Percocet pills. Following the drug transaction, Archible learned that Dudley had provided him fake drugs instead of Percocet. In response, Archible and his co-conspirators broke into Dudley’s rooming house in Newport News and confronted him. Archible directed a co-conspirator to bring a firearm. Archible shot Dudley several times with a 9mm Glock pistol and then handed the gun to his co-conspirator, who also shot Dudley.
Later that afternoon, local law enforcement officers responded to a burglary call and found Dudley deceased from 17 gunshot wounds to the head, torso, and extremities. Archible’s DNA was linked to blood recovered from the scene.
Archible faces a maximum penalty of life imprisonment on the murder charge and 20 years on each of the remaining counts when sentenced on August 10. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division; and Steve R. Drew, Chief of Newport News Police, made the announcement after U.S. District Judge David J. Novak accepted the verdict.
Assistant U.S. Attorneys Howard J. Zlotnick, Lisa R. McKeel, and Brian J. Samuels are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-15.
Iranian Nationals Charged with Conspiring to Evade U.S. Sanctions on Iran by Disguising $300 Million in Transactions over Two DecadesRead the Press Release
LOS ANGELES – A federal criminal complaint unsealed today charges 10 Iranian nationals with running a nearly 20-year-long scheme to evade U.S. sanctions on the Government of Iran by disguising more than $300 million worth of transactions – including the purchase of two $25 million oil tankers – on Iran’s behalf through front companies in the San Fernando Valley, Canada, Hong Kong and the United Arab Emirates. In addition, a civil forfeiture complaint filed today seeks a money laundering penalty in the amount of $157,332,367.
The complaint, filed in October 2020 in United States District Court in Los Angeles, charges the defendants with one count of conspiracy to violate the Iranian Transactions and Sanctions Regulations, the Iranian Financial Sanctions Regulations and the International Emergency Economic Powers Act. The defendants are believed to be located outside of the United States.
“In a wide-ranging scheme spanning nearly two decades and several continents, the defendants conspired to abuse the U.S. financial system to conduct hundreds of millions of dollars in transactions on behalf of the Government of Iran,” said Acting United States Attorney Tracy L. Wilkison for the Central District of California. “Today’s indictment is an example of the will of federal law enforcement to bring to justice those who violate our sanctions and laws designed to strengthen our national security.”
“In a substantial civil forfeiture action filed by the Department, the defendants stand to lose over $157 million in funds involved in violations of the Iran sanctions,” said Assistant Attorney General for National Security John C. Demers. “This is only right. Through the use of front companies, money service businesses and exchanges throughout the world, the defendants worked to disguise hundreds of millions of dollars’ worth of transactions on behalf of a state sponsor of terrorism. Make no mistake, the Department of Justice will continue to deploy all tools necessary to curb the Iranian regime’s ability to use the U.S. financial system to support its malign endeavors.”
“Sanctions are imposed, in part, to thwart an adversarial country’s ability to take actions in violation of diplomatic agreements and which threaten international relations,” said Kristi K. Johnson, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The charges announced today should send a message that the United States will not allow the laundering of money through American banks as a secret backdoor to conduct business and avoid the limitations imposed by sanctions.”
According to court documents, the complaint details a decades-long conspiracy to evade U.S. sanctions on Iran, a nation which the U.S. State Department has designated as a state sponsor of terrorism. During the scheme, the defendants allegedly created and used more than 70 front companies, money service businesses and exchange houses – often using the name “Persepolis” or “Rosco” – in the United States, Iran, Canada, the United Arab Emirates and Hong Kong. The defendants also allegedly made false representations to financial institutions to disguise more than $300 million worth of transactions on Iran’s behalf, using money wired in U.S. dollars and sent through U.S.-based banks.
The complaint alleges that the defendants were aware of U.S. sanctions on Iran throughout the conspiracy. In one email exchange, for example, defendants allegedly discussed the U.S. government’s efforts to disrupt Iranian Supreme Leader Ali Khamenei’s “international financial network,” an organization allegedly designed to conceal investments from the Iranian people and international regulators. In an iCloud account, one defendant saved a press report about new U.S. sanctions imposed on firms suspected of funding the Iranian Revolutionary Guard Corps.
As alleged, several defendants operated or were employed by Persepolis Financial Services Inc., an Encino-based company that facilitated the illegal transfer of U.S. dollars on Iran’s behalf from 1999 through the early 2000s. After a Persepolis Financial executive was convicted in 2003, several defendants left the country and moved to Canada and the United Arab Emirates. There, they owned, operated or were employed by additional front companies – using the names Rosco Trading, Rosco International, Persepolis and Rosco Investment – that were used for well over a decade to secretly facilitate U.S. dollar transactions on Iran’s behalf.
In addition, several defendants allegedly used a Hong Kong-based front company known as Total Excellence Ltd. to secretly buy two $25 million oil tankers on Iran’s behalf. The U.S. later sanctioned the businessman for using Iranian money to purchase oil tankers and to help Iran ship crude oil in violation of U.S. and European Union sanctions. In 2013, two defendants allegedly defrauded a financial institution in the UAE by preparing a fraudulent invoice and making false statements indicating that a transaction in U.S. dollars – processed through a New York-based bank – was undertaken on behalf of a UAE-based front company. In actuality, the true buyer was an Iranian oil and gas company, the affidavit states.
Furthermore, in 2016, several defendants allegedly conspired to wire millions of dollars through the U.S. financial system to complete a transaction with a South Korean equipment manufacturer on Iran’s behalf. During that transaction, four defendants instructed the manufacturer to not to “mention any name of Iran” in any paperwork exchanged with financial institutions processing the transaction, the affidavit alleges. In March 2017, the South Korean company sent $1 million to a front company selected by the conspirators.
Finally, in 2016, the conspirators secretly transferred thousands of dollars into Southern California on Iran’s behalf, including $66,766 that a defendant transferred to a Santa Monica-based company with a bank account held at Wells Fargo & Co., to acquire electronic equipment at the direction of a business associate at an Iran-based company, according to the affidavit.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted, the defendants would face a statutory maximum sentence of 20 years in federal prison.
The FBI is investigating the case.
Assistant U.S. Attorneys William M. Rollins of the Terrorism and Export Crimes Section, Dan G. Boyle of the Asset Forfeiture Section, and Trial Attorney David Lim of the Department of Justice’s Counterintelligence and Export Control Section are prosecuting this case.
Iranian Nationals Charged with Conspiring to Evade U.S. Sanctions on Iran by Disguising $300 Million in Transactions over Two DecadesRead the Press Release
WASHINGTON – A federal criminal complaint unsealed today charges 10 Iranian nationals with running a nearly 20-year-long scheme to evade U.S. sanctions on the Government of Iran by disguising more than $300 million worth of transactions – including the purchase of two $25 million oil tankers – on Iran’s behalf through front companies in the San Fernando Valley, Canada, Hong Kong and the United Arab Emirates. In addition, a forfeiture complaint filed today seeks a money laundering penalty in the amount of $157,332,367.
The complaint, filed in October 2020 in U.S. District Court of Los Angeles, charges the defendants with one count of conspiracy to violate the Iranian Transactions and Sanctions Regulations, Iranian Financial Sanctions Regulations and the International Emergency Economic Powers Act. The defendants are believed to be located outside of the United States. If convicted, the defendants would face a statutory maximum sentence of 20 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“In a substantial civil forfeiture action filed by the Department, the defendants stand to lose over $157 million in funds involved in violations of the Iran sanctions,” said Assistant Attorney General for National Security John C. Demers. “This is only right. Through the use of front companies, money service businesses and exchanges throughout the world, the defendants worked to disguise hundreds of millions of dollars worth of transactions on behalf of a state sponsor of terrorism. Make no mistake, the Department of Justice will continue to deploy all tools necessary to curb the Iranian regime’s ability to use the U.S. financial system to support its malign endeavors.”
“The FBI has a keen ability to track nefarious actors who use the U.S. financial system to evade sanctions,” said Alan E. Kohler, Jr., Assistant Director of the FBI’s Counterintelligence Division. “Our investigation revealed over 70 front companies were used by these individuals to hide their conspiracy in support of the Iranian Governments pursuit of nuclear weapons and sponsorship of terrorism.”
“In a wide-ranging scheme spanning nearly two decades and several continents, the defendants conspired to abuse the U.S. financial system to conduct hundreds of millions of dollars in transactions on behalf of the Government of Iran,” said Acting United States Attorney Tracy L. Wilkison for the Central District of California. “Today’s indictment is an example of the will of federal law enforcement to bring to justice those who violate our sanctions and laws designed to strengthen our national security.”
According to court documents, the complaint details a decades-long conspiracy to evade U.S. sanctions on Iran, a nation which the U.S. State Department has designated as a state sponsor of terrorism. During the scheme, the defendants allegedly created and used more than 70 front companies, money service businesses and exchange houses – often using the name “Persepolis” or “Rosco” – in the United States, Iran, Canada, the United Arab Emirates and Hong Kong. The defendants also allegedly made false representations to financial institutions to disguise more than $300 million worth of transactions on Iran’s behalf, using money wired in U.S. dollars and sent through U.S.-based banks.
The complaint alleges that the defendants were aware of U.S. sanctions on Iran throughout the conspiracy. In one email exchange, for example, defendants allegedly discussed the U.S. government’s efforts to disrupt Iranian Supreme Leader Ali Khamenei’s “international financial network,” an organization allegedly designed to conceal investments from the Iranian people and international regulators. In an iCloud account, one defendant saved a press report about new U.S. sanctions imposed on firms suspected of funding the Iranian Revolutionary Guard Corps.
As alleged, several defendants operated or were employed by Persepolis Financial Services Inc., an Encino-based company that facilitated the illegal transfer of U.S. dollars on Iran’s behalf from 1999 through the early 2000s. After a Persepolis Financial executive was convicted in 2003, several defendants left the country and moved to Canada and the United Arab Emirates. There, they owned, operated or were employed by additional front companies – using the names Rosco Trading, Rosco International, Persepolis and Rosco Investment – that were used for well over a decade to secretly facilitate U.S. dollar transactions on Iran’s behalf.
In addition, several defendants allegedly used a Hong Kong-based front company known as Total Excellence Ltd. to secretly buy two $25 million oil tankers on Iran’s behalf. The U.S. later sanctioned the businessman for using Iranian money to purchase oil tankers and to help Iran ship crude oil in violation of U.S. and European Union sanctions. In 2013, two defendants allegedly defrauded a financial institution in the UAE by preparing a fraudulent invoice and making false statements indicating that a transaction in U.S. dollars – processed through a New York-based bank – was undertaken on behalf of a UAE-based front company. In actuality, the true buyer was an Iranian oil and gas company, the affidavit states.
Furthermore, in 2016, several defendants allegedly conspired to wire millions of dollars through the U.S. financial system to complete a transaction with a South Korean equipment manufacturer on Iran’s behalf. During that transaction, four defendants instructed the manufacturer to not to “mention any name of Iran” in any paperwork exchanged with financial institutions processing the transaction, the affidavit alleges. In March 2017, the South Korean company sent $1 million to a front company selected by the conspirators.
Finally, in 2016, the conspirators secretly transferred thousands of dollars into Southern California on Iran’s behalf, including $66,766 that a defendant transferred to a Santa Monica-based company with a bank account held at Wells Fargo & Co., to acquire electronic equipment at the direction of a business associate at an Iran-based company, according to the affidavit.
The FBI is investigating the case.
Assistant U.S. Attorneys William M. Rollins of the Terrorism and Export Crimes Section, Dan G. Boyle of the Asset Forfeiture Section, and Trial Attorney David Lim of the Department of Justice’s Counterintelligence and Export Control Section are prosecuting this case.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on March 16 was:
Brett Williams James Jones, 27, of Lame Deer, on charges of assault with a dangerous weapon and assault resulting in serious bodily injury. If convicted of the most serious crime, Jones faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Jones was released pending further proceedings. The FBI investigated the case. PACER case reference. 20-73.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on March 17 was:
Joseph Mark Parsons Menke, 29, of Belgrade, on charges of distribution and receipt of child pornography. If convicted of the most serious crime, Menke faces a mandatory minimum five years to 20 years in prison, a $250,000 fine and five years to life of supervised release. Menke was released pending further proceedings. The Internet Crimes Against Children Task Force, Bozeman Police Department and Montana Department of Justice’s Division of Criminal Investigation investigated the case. PACER case reference. 21-04.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on March 16 was:
Kaycee Lynn Menz, 29, of Poplar, on charges of conspiracy to possess and distribute oxycodone, possession with intent to distribute oxycodone, possession with intent to distribute methamphetamine, conspiracy to commit money laundering and money laundering. If convicted of the most serious crime, Menz faces a mandatory minimum five years to 40 years in prison, a $5 million fine and four years of supervised release. Menz was detained pending further proceedings. The FBI, Drug Enforcement Administration, Roosevelt County Sheriff’s Office and Montana Highway Patrol investigated the case. PACER case reference. 21-11.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Husband and Wife Russian Nationals Plead Guilty to Bribery, Visa Fraud, Tax Charges, and Agree to Forfeit $5.9 MillionRead the Press Release
NEW BERN, N.C. – Leonid Teyf, 59, a Russian national formerly residing in Raleigh, North Carolina, pled guilty today to bribery of a public official, visa fraud, and false statements on a tax return. Tatiana Teyf, 43, pled guilty to a false statement in an immigration matter.
In December 2018, Teyf was charged in an indictment with the bribery, murder-for-hire, possession of a firearm with an obliterated serial number, harboring illegal aliens, and unlawful use of a visa procured through false claims. Teyf was also charged in a money laundering conspiracy with Tatiana Teyf and others, and several tax charges regarding the wrongful denial of the existence of overseas financial interests and the failure to file required forms in regard to the same overseas accounts.
The indictment alleged that between 2010 and 2012, Leonid Teyf received kickbacks of Russian government funds amounting to more than $150,000,000. The indictment additionally alleged that since December 2010, Leonid and Tatyana Teyf and others opened at least 70 financial accounts at four financial institutions in the names of themselves and businesses under their control and received an approximate total of $39,500,000 in 294 wire transfers. By December 2018, approximately $9 million of these funds remained in accounts within the United States and the funds were seized at that time.
The indictment further alleged Teyf knowingly used and possessed a U.S. immigrant visa which he had procured through false claims made on his I-140 application and that he and Tatiana Teyf had harbored and assisted other persons from Russia in coming to and remaining in the United States.
As otherwise alleged in publicly available documents filed in federal court by the Government, during the course of the investigation into the money laundering charges, Leonid Teyf came to believe that Tatiana Teyf was having an affair with another man. Leonid Teyf discussed with an FBI confidential source having the man murdered. Teyf also paid an employee with the United States Department of Homeland Security $10,000 to find the man and have him deported from the United States. When the deportation plan was taking a longer period of time than he expected, Leonid Teyf returned to the previously discussed murder-for-hire plan and paid the confidential source $25,000 to kill the man before the end of 2018. To assist in the commission of the murder, Leonid Teyf supplied the confidential source with a firearm on which the serial number had been removed.
Teyf entered a plea of guilty to violations of 18 U.S.C. § 201, the payment of the $10,000 bribery to the federal official, 18 U.S.C. § 1546, visa fraud, and 26 U.S.C. § 7206(1), filing a false tax return. Tatiana Teyf plead guilty to a separately filed Criminal Information, which charged a violation of 18 U.S.C. § 1015(a), making a false statement in an immigration document. Both agreed to forfeit assets in the total amount of $5,900,241 and Teyf agreed to forfeit the firearm that was provided to the confidential source. He also agreed to be judicially deported once his sentence is complete.
Pursuant to the plea, the Acting United States Attorney for the Eastern District of North Carolina agreed to dismiss the murder-for-hire, firearm, money laundering, harboring illegal aliens, and all but one of the tax charges against Teyf, and to seek a sentence of 60 months’ imprisonment for him. Pursuant to Tatiana Teyf’s plea to the charge in the Criminal Information, all charges against her in the Indictment will be dismissed and the government will not seek a term of imprisonment.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement, noting, “Attempts to subvert U.S. laws through lies and bribery cannot be tolerated. This is particularly true when such attempts are done with the intent of causing greater harm and this office stands ready to pursue these cases with every available tool. Thankfully, through the proactive work of our law enforcement partners, the violence desired was prevented.”
U.S. District Judge Louise W. Flanagan accepted the plea. The investigation of this case was conducted by agents of the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, Homeland Security Investigations, and the Raleigh Police Department.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case 5:18-cr-00452-FL.
Harvey Man Pleads Guilty to Clean Water Act Violation from 2016 Oil SpillRead the Press Release
NEW ORLEANS – The United States Attorney’s Office announced that JAMES TASSIN, age 50, of Harvey, pled guilty on March 18, 2021 to violating the Clean Water Act in connection with an oil spill in 2016.
According to court documents, TASSIN was a marsh buggy operator working on the Chenier Ronquille Barrier Island Restoration Project, which was overseen by contractors working for the National Oceanic and Atmospheric Administration (“NOAA”). The project took place where Louisiana’s coastal wetlands meet the Gulf of Mexico, near several oil and gas pipelines, including Bay Marchand-to-Ostrica-to-Alliance (“BOA”) pipelines, which ran underneath and parallel to the dike on northern side of the island.
Months after the project began, the site manager at the project instructed TASSIN to dig an access channel for crew boats that was different from the access channel in the project plans provided by NOAA. This new access channel ran directly over the BOA pipelines, which were clearly marked at the time. TASSIN worked on that new access channel over multiple days.
On September 5, 2016, TASSIN drove his marsh buggy through the newly deepened access channel and struck one of the BOA pipelines, causing it to leak oil that created a sheen in the surrounding water in Bay Long. When TASSIN reported the spill to his supervisors, the site manager instructed TASSIN to use his marsh buggy to obscure the evidence that he had been deepening the unauthorized access channel, and TASSIN did so.
“The defendant in this case recklessly violated regulations designed to protect the environment and then tried to hide his actions,” said Christopher Brooks, Special Agent in Charge of EPA’s Criminal Enforcement Program in Louisiana. “Today’s guilty plea demonstrates that we will hold violators responsible for breaking our environmental laws.”
“Today’s announcement is a clarion call for stewardship and accountability in the pipeline transportation system,” said Todd Damiani, Special Agent-in-Charge, Southern Region, Department of Transportation Office of Inspector General. “Together with our law enforcement and prosecutorial partners, we will continue our vigorous efforts to pursue those who knowingly disregard laws and regulations intended to protect our Nation’s natural resources.”
“The Department of Commerce OIG is dedicated to working with our partners to curb fraud, waste and abuse, especially when projects receiving NOAA funding result in environmental hazards,” said Duane Townsend, Special Agent in Charge, U.S Department of Commerce, Office of Inspector General.
TASSIN faces up to one year in prison, a fine of up to $100,000, and up to one year of supervised release following any term of imprisonment. Judge Susie Morgan set the sentencing hearing for June 22, 2021.
The case was investigated by the Environmental Protection Agency’s Criminal Investigation Division, the Department of Transportation’s Office of Inspector General, and the Department of Commerce’s Office of Inspector General. Assistant U.S. Attorney Nicholas D. Moses is in charge of the prosecution.
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Grand Jury - March 2021Read the Press Release
Acting United States Attorney Jan W. Sharp announced the federal Grand Jury for the District of Nebraska has returned 22 unsealed Indictments charging 24 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Simon Carcamo Sevilla, age 31, is charged in a three-count Indictment. Count I charges the defendant with use of an identification document not lawfully issued on or about September 5, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count II charges the defendant with misuse of a Social Security number on or about September 5, 2019. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count III charges the defendant with illegal reentry after deportation on or about February 25, 2021. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Brandon D. Carr, age 35, of Omaha, is charged with felon in possession of a firearm on or about February 23, 2021. The maximum possible penalty if convicted is 10 years’ imprisonment, $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Crispin Cruz-Trejo, age 38, is charged with illegal reentry after deportation on or about March 3, 2021, following an aggravated felony conviction. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Derrick G. Dawdy, age 36, of Ashland, Nebraska, is charged in a three-count Indictment. Count I charges the defendant with embezzlement of mail by postal employee on or about September 1, 2020 and on or about December 28, 2020. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count II charges the defendant with theft from mail by postal employee on or about September 1, 2020 and on or about December 28, 2020. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count III charges the defendant with delay of mail by postal employee on or about September 1, 2020 and on or about December 28, 2020. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.* David A. Foreman, age 53, of Omaha, is charged in a two-count Indictment. Count I charges the defendant with distribution of methamphetamine on or about December 18, 2020. The maximum possible penalty if convicted is 20 years’ imprisonment, $1,000,000 fine, a three-year term of supervised release, $100 special assessment. Count II charges the defendant with possession with intent to distribute 50 grams or more of methamphetamine (actual) between on or about December 18, 2020. The maximum possible penalty if convicted is life imprisonment, a $20,000,000 fine, a ten-year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit United States currency seized on or about December 20, 2020.
* Sanjuana Garcia-Ramirez, age 38, of Lexington, Nebraska, is charged with possession with intent to distribute 50 grams or more of methamphetamine on or about January 5, 2021. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, a four-year term of supervised release, $100 special assessment.
* Patrick R. Graves, age 34, is charged in a six-count Indictment. Counts I through III charge the defendant with bank fraud on or about September 2020 and continuing through on or about November 2020. The maximum possible penalty if convicted is 30 years’ imprisonment, a $1,000,000 fine, a five-year term of supervised release, and a $100 special assessment for each count. Count IV charges the defendant with aggravated identity theft on or about November 16, 2020. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count V charges the defendant with aggravated identity theft on or about November 18, 2020. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment. Count VI charges the defendant with identity theft on or about November 18, 2020. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Jeffry A. Hogan, age 39, of Colorado Springs, Colorado, is charged in a four-count Indictment. Count I charges the defendant with conspiracy and possession with intent to distribute 500 grams or more of methamphetamine on or about June 1, 2020 and continuing to on or about February 12, 2021. The maximum possible penalty if convicted is life imprisonment, $20,000,000 fine, ten-year term of supervised release, and a $100 special assessment. Count II charges the defendant with possession with intent to distribute 50 grams or more of methamphetamine on or about February 12, 2021. The maximum possible penalty if convicted is life imprisonment, $10,000,000 fine, an eight-year term of supervised release, $100 special assessment. Count III charges the defendant with using, carrying, and possessing a firearm during and in furtherance of a drug trafficking crime between on or about February 12, 2021 The maximum possible penalty if convicted is life consecutive imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count IV charges the defendant with use felon in possession of a firearm between on or about February 12, 2021 The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit United States currency seized on or about February 12, 2021.
* Jourdain Hyman St. Cyr, age 35, of Winnebago, Nebraska, is charged with assaulting, resisting, or impeding certain officers or employees on or about March 4, 2021. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Kelly J. Jablonski, age 41, of Lincoln, Nebraska, is charged in a two-count Indictment. Count I charges the defendant with conspiracy and possession with intent to distribute 500 grams or more of methamphetamine on or about June 1, 2020 and continuing to on or about February 12, 2021. The maximum possible penalty if convicted is life imprisonment, $10,000,000 fine, five-year term of supervised release, and a $100 special assessment. Count II charges the defendant with possession with intent to distribute 500 grams or more of methamphetamine on or about February 12, 2021. The maximum possible penalty if convicted is life imprisonment, $10,000,000 fine, a five-year term of supervised release, $100 special assessment. There is also an allegation to forfeit United States currency seized on or about February 12, 2021.
* Kevin N. Jacoway, age 32, of Omaha, and Timothy A. Fox, age 34, of Omaha, are charged in a three-count Indictment. Count I charges Jacoway and Fox with distribution and receipt of child pornography on or about August 28, 2020 and on or about February 23, 2021. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a life term of supervised release, and a $100 special assessment. Count II charges Jacoway with possession of child pornography on or about December 2, 2020. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a life term of supervised release, and a $100 special assessment. Count III charges Fox with possession of child pornography on or about December 2, 2020. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a life term of supervised release, and a $100 special assessment.
* Brenden J. Joray, age 23, of Papillion, Nebraska, is charged in a three-count Indictment. Count I charges Joray with transportation of a minor with intent to engage in criminal sexual activity on or about January 30, 2021 and on or about February 17, 2021. The maximum possible penalty if convicted is life imprisonment, a $250,000 fine, a life term of supervised release, and a $100 special assessment. Count II charges the defendant with travel in interstate commerce for the purpose of engaging in any illicit sexual conduct on or about January 30, 2021 and on or about February 17, 2021. The maximum possible penalty if convicted is 30 years’ imprisonment, a $250,000 fine, a life term of supervised release, and a $100 special assessment. Count III charges the defendant with enticement of a minor to engage in any sexual activity on or about November 1, 2020 and on or about February 17, 2021. The maximum possible penalty if convicted is life imprisonment, a $250,000 fine, a life term of supervised release, and a $100 special assessment.
* Jose O. Maes, age 36, of Colorado Springs, Colorado, is charged with conspiracy and possession with intent to distribute 500 grams or more of methamphetamine on or about June 1, 2020 and continuing to on or about February 12, 2021. The maximum possible penalty if convicted is life imprisonment, $20,000,000 fine, ten-year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit United States currency seized on or about February 12, 2021.
* Dywan Meredith, age 29, of Omaha, is charged with felon in possession of a firearm on or about January 14, 2021. The maximum possible penalty if convicted is 10 years’ imprisonment, $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Jose Vidal Navarro-Gonzalez, a/k/a Jose Navarro, age 46, is charged in a two-count Indictment. Count I charges the defendant with possession with intent to distribute 500 grams or more of methamphetamine on or about February 22, 2021. The maximum possible penalty if convicted is life imprisonment, $10,000,000 fine, a five-year term of supervised release, $100 special assessment. Count II charges the defendant with use possess firearm with drug trafficking on or about February 22, 2021. The maximum possible penalty if convicted is life imprisonment consecutive, a $250,000 fine, a five-year term of supervised release, and a $100 special assessment.
* Bruce A. Nelson, age 53, of Orleans, Nebraska, is charged in a three-count Indictment. Count I charges Nelson with counterfeiting and forging obligations or securities on or about August 1, 2020, and September 7, 2020. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count II charges the defendant with passing or uttering counterfeit obligations or securities on or about August 31, 2020. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count III charges the defendant with passing or uttering counterfeit obligations or securities on or about September 4, 2020. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Joseph T. Pearce, II, age 39, of Plainview, Nebraska, is charged in a three-count Indictment. Count I charges Pearce with filing a false tax return on or about April 13, 2015. The maximum possible penalty if convicted is 3 years’ imprisonment, a $100,000 fine, a one-year term of supervised release, and a $100 special assessment. Count II charges the defendant with filing a false tax return on or about April 11, 2016. The maximum possible penalty if convicted is 3 years’ imprisonment, a $100,000 fine, a one-year term of supervised release, and a $100 special assessment. Count III charges the defendant with filing a false tax return on or about April 20, 2017. The maximum possible penalty if convicted is 3 years’ imprisonment, a $100,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Gregorio Ramirez-Silva, age 34, is charged with illegal reentry after deportation on or about March 12, 2021. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Janis Strautkalns, age 48, of Lincoln, Nebraska, is charged in a fourteen-count Indictment. Counts I through X charge Strautkalns with failure to pay over withholding & FICA taxes on or about September 30, 2016 and continuing through December 31, 2018. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment each count. Counts XI through XIV charge the defendant with failure to file tax return on or about 2015 through 2018. The maximum possible penalty if convicted is 1 year’ imprisonment, a $100,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Carney Turner, a/k/a Tez, age 40, is charged in a five-count Indictment. Count I charges Turner with sex trafficking of a minor on or about November 17, 2020 through February, 2021. The maximum possible penalty if convicted is life imprisonment, a $250,000 fine, a life term of supervised release, and a $100 special assessment. Count II charges the defendant with sex trafficking of a minor on or about August 1, 2020 through October 31, 2020. The maximum possible penalty if convicted is life imprisonment, a $250,000 fine, a life term of supervised release, and a $100 special assessment. Count III charges the defendant with sex trafficking of a minor on or about January 1, 2020 through September 25, 2020. The maximum possible penalty if convicted is life imprisonment, a $250,000 fine, a life term of supervised release, and a $100 special assessment. Count IV charges the defendant with coercion and enticement of a minor on or about August 1, 2020 through October 31, 2020. The maximum possible penalty if convicted is life imprisonment, a $250,000 fine, a life term of supervised release, and a $100 special assessment. Count V charges the defendant with coercion and enticement of a minor on or about January 1, 2020 through September 25, 2020. The maximum possible penalty if convicted is life imprisonment, a $250,000 fine, a life term of supervised release, and a $100 special assessment. There is also an allegation to forfeit United States property seized in Counts I through III.
* Joseph Ward, Jr., age 44, of Phoenix, Arizona, and Vickie M. Ward, a/ka Vickie M. Cloyd, age 41, of Phoenix, Arizona, are charged in an eight-count Indictment. Counts I and II charge Joseph and Vickie with conspiracy to commit bank fraud on or about April 11, 2017, and June 13, 2017. The maximum possible penalty if convicted is 30 years’ imprisonment, a $1,000,000 fine, a three-year term of supervised release, and a $100 special assessment. Counts III through VIII charge the defendants with wire fraud on or about May 17, 2017 through June 13, 2017. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment each count.
* Clifford Wright, III, age 31, of Omaha, is charged with felon in possession of a firearm on or about July 23, 2020. The maximum possible penalty if convicted is 10 years’ imprisonment, $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
Fremont Man Sentenced to 18 Months in Prison and Ordered to Forfeit $1.7 Million for Smuggling Illegal High-Intensity Discharge HeadlightsRead the Press Release
OAKLAND – Chu-Chiang Ho, a/k/a Kevin Ho was sentenced today in United States District Court to 18 months in prison and ordered to forfeit $1.7 million for illegally importing automobile headlights for years that he knew failed to meet U.S. safety standards, announced Acting United States Attorney Stephanie M. Hinds, Homeland Security Investigations NorCal Special Agent in Charge Tatum King, and Customs and Border Protection San Francisco Director of Field Operations Richard F. Di Nucci. The sentence was handed down by the Honorable Jon S. Tigar, United States District Judge.
Ho, 44, of Fremont, admitted he was aware that the headlights and headlight kit parts he imported from China violated U.S. safety laws because they emit a much brighter light than conventional headlights and create a public safety hazard. In his plea agreement, Ho admitted that in October 2005 he reported to the National Highway Transportation Safety Administration that the High-Intensity Discharge (HID) lights he imported from China were too bright and did not meet regulatory photometric requirements. Ho also claimed he discontinued the sale of all illegal headlights. Instead, for the next 13 years he smuggled these illegal parts into the United States and sold them through websites he controlled, including HIDExtra.com, kalex.us, and opt7.com.
Ho also admitted in his plea agreement that he acted to conceal his scheme. He worked with suppliers to mischaracterize the merchandise he imported in documents provided to U.S. Customs and Border Protection to deceive that agency into believing the merchandise was legal. Ho also changed company names numerous times to avoid detection and listed a variety of family members as corporate officers of his companies despite maintaining his control over the business at all times.
Ho admitted that he profited from his scheme and used the proceeds of the illegal HID Kits to assist in his purchase of various properties in the Bay Area. He admitted that at least $1.7 million in proceeds from his sales is traceable to products he illegally smuggled into the United States.
A federal grand jury indicted Ho on March 14, 2019, charging him with seven counts of smuggling illegal headlights into United States, in violation of 18 U.S.C. § 545. Under the plea agreement, Ho pleaded guilty to one count and the United States dismissed the remaining charges.
In addition to sentencing Ho to a prison term of 18 months and to forfeit $1.7 million, U.S. District Judge Jon S. Tigar also sentenced Ho to a three year period of supervised release to follow his prison term. The defendant remains out of custody on bond and was ordered to surrender to begin his sentence on April 27, 2021.
Assistant U.S. Attorneys Thomas R. Green and Chris Kaltsas are prosecuting the case with the assistance of Noble Hughes and Kay Konopaske. The prosecution is the result of an investigation by the U.S. Department of Homeland Security, Homeland Security Investigations and Customs and Border Protection, with the assistance of the Customs and Border Protection Office of Assistant Chief Counsel, San Francisco, and counsel for the U.S. Trade Fraud Task Force.
Four Defendants Charged with Voter Registration FraudRead the Press Release
RALEIGH, N.C. – Federal criminal cases were unsealed today charging four defendants with making false claims of U.S. citizenship in order to register to vote in the 2016 general election.
The cases stem from an investigation led by the U.S. Attorney’s Office for the Eastern District of North Carolina that has resulted in charges against 24 defendants over the last 18 months. The charges include making false claims of U.S. citizenship in order to register to vote, naturalization fraud, and fraud and misuse of visas, permits, and other documents as it relates to the registration to vote, and false statements in immigration proceedings. Two defendants are charged with illegally voting in the 2016 general election.
Each defendant is charged individually and there are no charges of conspiracy.
The investigation of these cases was conducted by agents of Homeland Security Investigations under the Document and Benefit Fraud Task Force (DBFTF) in the Eastern District of North Carolina.
The U.S. Attorney’s Office would like to express its appreciation to the U.S. Department of Homeland Security for their support in the investigation.
Former UCLA Soccer Coach Sentenced in College Admissions CaseRead the Press Release
BOSTON – The former men’s soccer coach at the University of California – Los Angeles (UCLA), was sentenced today in connection with his involvement in a scheme to use bribery and fraud to facilitate the admission of applicants to UCLA.
Jorge Salcedo, 48, of Dana Point, Calif., was sentenced by U.S. District Court Judge Indira Talwani to eight months in prison, one year of supervised release and forfeiture in the amount of $200,000. In January 2021, Salcedo agreed to plead guilty to one count of conspiracy to commit federal programs bribery.
In 2016, Salcedo agreed with William “Rick” Singer, Ali Khosroshahin – a former head coach of women’s soccer at the University of Southern California – and others to facilitate the admission of a student to UCLA as a purported women’s soccer recruit. Salcedo emailed the UCLA women’s soccer coaches the student’s transcript, test scores, and a fake soccer profile that he had received from Singer and Khosroshahin. When UCLA compliance officers questioned how the applicant had been discovered and whether she actually played soccer, Salcedo created a fake backstory, resulting in her subsequent admission as a recruited walk-on for the women’s soccer team. Salcedo was paid a bribe of $100,000 for his actions.
In 2018, Salcedo agreed with Singer and Khosroshahin to “recruit” the son of another client of Singer’s to the UCLA men’s soccer team despite the fact that the student did not play soccer competitively. In the recruitment paperwork, Salcedo falsely reported that he had seen the student play in China and that he planned to offer him a 25% scholarship. The student was subsequently admitted to UCLA as a student-athlete on the men’s soccer team with a 25% scholarship. In exchange, Salcedo accepted a $100,000 bribe from Singer.
Salcedo also agreed with Singer to recruit another student in return for $100,000.
Singer and Khosroshahin previously pleaded guilty in connection with their roles in the offense. They have not yet been sentenced.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Ramsey E. Covington, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Justin D. O’Connell, Leslie A. Wright, and Kristen A. Kearney of Mendell’s Criminal Division prosecuted the case.
The details contained in the court documents are allegations and the remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Employee of Federal Reserve Board Pleads Guilty to Theft of Government PropertyRead the Press Release
Greenbelt, Maryland – Venkatesh Rao, age 67, of Bethesda, Maryland, pleaded guilty on March 18, 2021 to theft of government property from his former employer, the Board of Governors of the Federal Reserve System (Federal Reserve Board or FRB).
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge John T. Perez of the Federal Reserve Board Office of Inspector General.
According to his guilty plea, in 2019, the Federal Reserve Board notified Rao that it considered his work performance to be unsatisfactory and Rao made a decision to voluntarily separate from the Board. Over the course of five weekend days in November 2019, Rao entered the FRB building in Washington, D.C. approximately 16 times and printed more than 50 restricted government documents from his workstation and avoided FRB restrictions on the emailing and electronic copying of restricted materials. Rao removed the restricted documents, which contained proprietary information used by the FRB to conduct bank stress tests, from the FRB building and stored the materials at his home.
Rao faces a maximum sentence of one year in federal prison for theft of government property. U.S. Magistrate Judge Gina L. Simms has scheduled sentencing for May 28, 2021.
Acting United States Attorney Jonathan F. Lenzner commended the Federal Reserve Board Office of Inspector General for its work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Harry M. Gruber and Peter J. Martinez, who are prosecuting the case.
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Former Correctional Officer Pleads Guilty to Role in Bribery and Drug Smuggling ConspiracyRead the Press Release
A North Carolina man pleaded guilty today to smuggling drugs and other contraband into Caledonia Correctional Institution in exchange for bribe payments.
According to court documents, Kenneth Farr, 47, of Rocky Mount, worked as a correctional officer at Caledonia Correctional Institution, a state prison in Halifax County. On at least six occasions in 2018, Farr used his position to smuggle contraband, including marijuana, tobacco, and what he believed to be oxycodone pills, to inmates in the prison. In exchange for smuggling the contraband, Farr received payments ranging from $300 to $500 in cash or via a mobile application and pocketed at least $2,200 from inmates and their associates.
Farr pleaded guilty to one count of conspiracy to use a facility in interstate commerce in furtherance of unlawful activity. He is scheduled to be sentenced in mid-June and faces a maximum of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division and Special Agent in Charge Robert R. Wells of the FBI’s Charlotte Field Office made the announcement.
The FBI is investigating the case, with significant assistance from the North Carolina Department of Public Safety.
Trial Attorneys Rebecca M. Schuman and Lauren E. Britsch of the Criminal Division’s Public Integrity Section are prosecuting the case.
Former Casino Employee Sentenced to Three Years in Federal PrisonRead the Press Release
Jackson, Miss. – Darren Nickey, 31, a former employee of the Pearl River Resort – Silver Star Casino was sentenced today by U.S. District Judge Henry T. Wingate to 36 months in prison, followed by three years of supervised release, for theft by an employee of a gaming establishment on Indian lands, announced Acting United States Attorney Darren J. LaMarca. Nickey was also ordered to pay restitution in the amount of $18,340.
From March 2016 through May 2016, on three separate occasions, Nickey embezzled over $1,000 at a time from cash recyclers in the Casino. Because he worked as a cashier in the retail store on the premises, Nickey had access to the cash recycler to stock his cash register. He also made use of colleagues’ log-in passwords to hide the cash thefts. Further investigation revealed that Nickey had repeated the thefts to total $18,340 in over 40 withdrawals.
Nickey was indicted on December 12, 2018 on three counts of theft from the Silver Star Casino. He pled guilty before Judge Wingate on February 19, 2019.
Acting U.S. Attorney Darren J. LaMarca stated, “Federal law imposes severe penalties for crimes committed in licensed gaming establishments. The great potential for misconduct in these settings calls for constant vigilance and self-discipline of those entrusted with the casinos’ operation.”
Acting U.S. Attorney LaMarca commended the work of the Choctaw Police Department of the Mississippi Band of Choctaw Indians, who investigated the case. The case was prosecuted by Assistant United States Attorneys Theodore Cooperstein and Kevin Payne.
Foreign Nationals Sentenced for Roles in Transnational Cybercrime EnterpriseRead the Press Release
Two foreign nationals — one Russian, the other Macedonian — were sentenced today for their role in the Infraud Organization, a transnational cybercrime enterprise engaged in the mass acquisition and sale of fraud-related goods and services, including stolen identities, compromised credit card data, computer malware, and other contraband.
Sergey Medvedev, aka “Stells,” “segmed,” and “serjbear,” 33, of Russia, pleaded guilty in the District of Nevada to one count of racketeering conspiracy in June 2020 and was sentenced today to 10 years in prison. According to court documents, Medvedev was a co-founder of Infraud along with Syvatoslav Bondarenko of Ukraine. From November 2010 until Infraud was taken down by law enforcement in February 2018, Medvedev was an active participant in the Infraud online forum, operating an “escrow” service to facilitate illegal transactions among Infraud members. For several years, Medvedev served as Infraud’s administrator, handling day-to-day management, deciding membership, and meting out discipline to those who violated the enterprise’s rules.
Marko Leopard, aka “Leopardmk,” 31, of North Macedonia, pleaded guilty in the District of Nevada to one count of racketeering conspiracy in November 2019 and was sentenced today to five years in prison. According to court documents, Leopard joined Infraud in June 2011, offering his services as an “abuse immunity” web hoster to Infraud members who wished to create websites to sell contraband. Unlike a legitimate host, Leopard would knowingly cater to websites offering illegal goods and services, ignoring any abuse reports from internet users. He hosted a number of sites for Infraud members in this fashion, providing the infrastructure that allowed his co-conspirators to profit off of their criminal activities.
“Dismantling a cybercrime organization like Infraud requires aggressive pursuit of not only those who steal, sell, and use personal data, but also those who provide the infrastructure that allows cybercrime organizations to operate,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “Today’s sentences should serve as a warning to any web host who willingly looks the other way for a quick buck — and that the United States will hold these bad actors accountable, even when they operate behind a computer screen halfway across the world.”
“While criminal operators lurk in the deepest corners of the internet, they ultimately do not escape the reach of law enforcement,” said Special Agent in Charge Francisco Burrola of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Las Vegas. “We will continue to aggressively investigate, disrupt, and dismantle hidden illegal networks that pose a threat in cyberspace. HSI and our partners are at the forefront of combating cyber financial crimes and illicit activities spread by online criminals looking for financial gain.”
Infraud was a criminal enterprise that existed to enrich its members and associates through a myriad of criminal acts of identity theft and financial fraud. Infraud facilitated the sale of contraband by its members, including counterfeit documents, stolen bank account and credit account information, and stolen personal identifying information. Members and associates of Infraud operated throughout the world and the United States, to include Las Vegas. The enterprise, which boasted over 10,000 members at its peak and operated for more than seven years under the slogan “In Fraud We Trust,” is among the largest ever prosecuted by the Department of Justice.
Infraud was responsible for the sale and/or purchase of over 4 million compromised credit and debit card numbers. The actual loss associated with Infraud was in excess of $568 million USD.
HSI Las Vegas and the Police Department of Henderson, Nevada, investigated the case. The Justice Department’s Office of International Affairs provided significant assistance in securing the defendant’s extradition from Croatia.
Deputy Chief Kelly Pearson and Trial Attorneys Chad McHenry and Alexander Gottfried of the Justice Department’s Organized Crime and Gang Section prosecuted the case.
Florida Return Preparers Charged with Defrauding the IRSRead the Press Release
A federal grand jury in Fort Lauderdale returned an indictment on Tuesday, March 16, 2021, charging two tax preparers with conspiring to defraud the United States and preparing false tax returns. The defendants made their initial court appearance before U.S. Magistrate Judge Patrick M. Hunt today.
According to the indictment, Nikency Alexis owned and operated Unity Tax & Financial Services, a return preparation business in Broward County. From 2011 through at least 2016, Alexis and Thony Guillaume, a return preparer at Unity Tax, allegedly conspired to defraud the IRS by preparing returns for clients that fraudulently increased their clients’ tax refunds. The returns allegedly falsely claimed business and education expenses that the clients did not in fact incur. The indictment also charges that Alexis made false statements on his own personal income tax returns.
If convicted, each defendant faces a maximum sentence of five years in prison on the conspiracy charge and three years in prison on each count of preparing false tax returns for their clients. Alexis also faces a maximum sentence of three years in prison on each count related to his own false tax returns. In addition, the defendants face a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida made the announcement.
Special agents of IRS-Criminal Investigation are investigating the case.
Trial Attorney Lauren Archer of the Tax Division and Assistant U.S. Attorney Deric Zacca are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Federal Jury Convicts Former Mayor of Portage, Ind., on Bribery ChargeRead the Press Release
CHICAGO — A federal jury today convicted the former mayor of Portage, Ind., on a bribery charge for soliciting and pocketing money in connection with the awarding of city contracts.
The jury in U.S. District Court in Hammond, Ind., convicted JAMES SNYDER, 43, of Portage, Ind., on one count of bribery. Evidence at the two-week trial revealed that while serving as mayor, Snyder corruptly solicited and received $13,000 from a business that received more than $1.125 million in city contracts. The conviction is punishable by up to ten years in federal prison.
Snyder was also convicted following a prior trial in 2019 of obstructing and impeding collection efforts of the IRS. He faces a maximum sentence of three years in prison on that charge. Sentencing for both charges is set for July 1, 2021.
The verdict today was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Paul Keenan, Special Agent-in-Charge of the Indianapolis Field Office of the FBI; and Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The Indiana State Police provided valuable assistance. The government was represented at trial by Assistant U.S. Attorney Jill R. Koster of the Northern District of Indiana, and Assistant U.S. Attorney Ankur Srivastava of the Northern District of Illinois. The prosecution was supervised by the U.S. Attorney’s Office for the Northern District of Illinois upon recusals by supervisory personnel from the U.S. Attorney’s Office for the Northern District of Indiana.
Erie Woman Purchased Guns for Prohibiter PossessorRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
Treasure Ann Gray, 40, pleaded guilty to two counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from March 9, 2020, to July 21, 2020, Gray conspired with two co-defendants to violate federal straw purchase laws and acquired firearms for a co-defendant who was prohibited from possessing firearms based on prior criminal convictions.
Judge Cercone scheduled sentencing for July 20, 2021 at 1:00 p.m. The law provides for a total sentence of 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Gray on bond.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Pennsylvania State Police, Conewango Police Department, and Homeland Security Investigations conducted the investigation that led to the prosecution of Gray. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Eleven plead guilty to running multi-year mortgage fraud schemeRead the Press Release
ATLANTA – Eleven defendants have pleaded guilty to conspiracy to defraud the United States in a mortgage fraud scheme spanning more than four years and resulting in the approval of more than 100 mortgages based on fabricated documents and false information. Many of the loans are insured by the Federal Housing Administration (FHA) resulting in claims being paid for mortgages that have defaulted.
“These defendants brazenly manipulated the real estate lending process by using their knowledge of the system,” said Acting U.S. Attorney Kurt Erskine. “Mortgage fraudsters threaten the soundness of the real estate market in our community and divert critical resources away from those borrowers who properly qualify for loans. Rooting out bad actors who attempt to abuse the system for their own personal gain makes the mortgage lending system safer and fairer for everyone.”
“These defendants who dragged down our economy by using deception, will now be sentenced and forced to reimburse the victims of their conspiracy,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is committed to combating such criminal activity to protect our citizens and the real estate market from predators who are most interested in pocketing money that they have no right to.”
“These offenders engaged in blatant criminal acts with the sole purpose of enriching themselves at the cost of a federal housing program designed to assist millions of American homebuyers. Their fraudulent undertaking strikes at the fiscal integrity of the FHA and we will work diligently in conjunction with our law enforcement partners to hold them accountable” said Wyatt Achord, Special Agent in Charge, HUD Office of Inspector General.
“The Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG) is committed to holding accountable those who waste, steal, or abuse the resources of the Government-Sponsored Enterprises regulated by FHFA. We are proud to have partnered with the U.S. Attorney’s Office for the Northern District of Georgia in this case,” said Edwin S. Bonano, Special Agent-in-Charge, FHFA-OIG, Southeast Region.
According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: The defendants participated in a conspiracy in which homebuyers and real estate agents submitted fraudulent loan applications to induce mortgage lenders to fund mortgages.
Listing agents Eric Hill and Robert Kelske represented a major nationwide homebuilder and helped more than 100 homebuyers who were looking to buy a home, but who were unqualified to obtain a mortgage, commit fraud. The agents instructed the homebuyers as to what type of assets they needed to claim to have in the bank, and what type of employment and income they needed to submit in their mortgage applications.
Hill and Kelske then coordinated with multiple document fabricators, including defendants Fawziyyah Connor and Stephanie Hogan, who altered the homebuyers’ bank statements to inflate their assets and to create bank entries reflecting false direct deposits from an employer selected by the real estate agent. The document fabricators also generated fake earnings statements that matched the direct deposit entries to make it appear that the homebuyer was employed, and earning income, from a fake employer. Other participants in the scheme then acted as employment verifiers and responded to phone calls or emails from lenders to falsely verify the homebuyers’ employment. Defendants Jerod Little, Renee Little, Maurice Lawson, Todd Taylor, Paige McDaniel and Donald Fontenot acted as employment verifiers. Hill and Kelske coordinated the creation and submission of the false information so that the lies to the lenders were consistent.
In another aspect of the scheme, real estate agent Anthony Richard falsely claimed to represent homebuyers as their selling agent in order to receive commissions from the home sales. In reality, Richard had never even met the homebuyers he claimed to represent. To avoid detection, he often notified closing attorneys that he would be unable to attend the closing and sent wire instructions for the receipt of his commissions. When Richard received his unearned commissions, he kicked back the majority of the commissions to Hill or Kelske for enabling him to be added to the deal, keeping a small share for his role in the scheme.
The following defendants have pleaded guilty to conspiring to defraud the United States:
• Eric Hill, 50, of Tyrone, Georgia
• Robert Kelske, 52, of Smyrna, Georgia
• Fawziyyah Connor, 41, of Tyrone, Georgia
• Stephanie Hogan, 57, of Norcross, Georgia
• Jerod Little, 42, of McDonough, Georgia
• Renee Little, 33, of McDonough, Georgia
• Maurice Lawson, 36, of Powder Springs, Georgia
• Todd Taylor, 54, of Fairburn, Georgia
• Paige McDaniel, 49, of Stockbridge, Georgia
• Donald Fontenot, 52, of Locust Grove, Georgia
• Anthony Richard, 44, of Locust Grove, Georgia
These defendants have agreed to pay restitution to the victims of their conspiracy, including the Department of Housing and Urban Development, which insures many of the residential mortgages in the United States. Sentencing hearings have been set for these defendants before U.S. District Judge Mark H. Cohen.
A twelfth defendant, Cephus Chapman, 49, of Warner Robins, Georgia is awaiting trial. Members of the public are reminded that the indictment only contain charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation, Department of Housing and Urban Development Office of Inspector General, and Federal Housing Finance Agency Office of Inspector General.
Assistant U.S. Attorneys Alison Prout and Ryan Huschka are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.