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Wednesday 27 January 2021
Former UAW Official Who Cooperated Against Two UAW Presidents Sentenced to 12 Months in Prison and Directed to Pay $342,000 in RestitutionRead the Press Release
Edward “Nick” Robinson, the former President of the United Auto Workers Midwest CAP and the former Director of the UAW Labor and Employment Training Corporation, was sentenced to 12 months in prison and was directed to pay $342,000 in restitution to the UAW and the IRS, pending a final restitution hearing, based on convictions for conspiring with other UAW officials to embezzle UAW funds and evade taxes announced U.S. Attorney Matthew Schneider.
Joining in the announcement were Irene Lindow, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Timothy Waters, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Sarah Kull, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.
Edward “Nick” Robinson, 73, of Kirkwood, Missouri, had previously pleaded guilty to conspiring to embezzle UAW dues money between 2010 and September 2019 and to evade paying taxes on his illegal income. Between at least 2010 and September 2019, Robinson served as the President of the UAW’s Midwest CAP of Region 5 of the International Union, United Automobile, Aerospace, and Agricultural Workers of America (“UAW”). The UAW Midwest CAP is one of the UAW’s Community Action Program Councils which are supported through UAW dues money. The UAW’s Region 5 is headquartered in Hazelwood, Missouri, and covers the tens of thousands of UAW members in Missouri and the sixteen states to the southwest, including California and Texas. Robinson also served as the Director of the UAW Labor and Employment Training Corporation headquartered in Hazelwood, Missouri. The UAW-LETC was supposed to provide workforce training and development programs.
The investigation revealed that Robinson had conspired with at least six other senior UAW officials, including two UAW Presidents, in a multiyear conspiracy to embezzle money from the UAW for the personal benefit of Robinson and other senior UAW officials. UAW officials concealed personal expenditures in the cost of UAW Region 5 conferences held in Palm Springs, California, Coronado, California, and Missouri. Between 2010 and 2018, other UAW officials submitted fraudulent expense forms seeking reimbursement from the UAW’s Detroit headquarters for expenditures supposedly incurred in connection with Region 5 leadership and training conferences. In truth, however, Robinson and his co-conspirators used the conferences to conceal the hundreds of thousands of dollars in UAW funds spent on lavish entertainment and personal spending for the conspirators.
During the sentencing hearing, the United States requested a reduced sentence for Robinson based on his extraordinary cooperation in the investigation and prosecution of other individuals, as well as based on his serious and chronic medical conditions. Back in March 2019, Robinson came forward to law enforcement and offered to work in an undercover capacity to expose embezzlement and corruption by the highest leaders of the UAW. Robinson’s proactive cooperation assisted the government in securing the convictions of two former UAW Presidents, Gary Jones and Dennis Williams, and UAW Board member and Regional Director Vance Pearson.
As part of his sentence, and pending a possible final restitution hearing, the Court directed Robinson to pay the UAW $300,000 in restitution based on his involvement in the embezzlement conspiracy. In addition, the Court ordered Robinson to pay $42,000 in restitution to the IRS based on his failure to pay taxes.
U.S. Attorney Schneider commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.
“The Court’s sentence today demonstrates that individuals who accept responsibility and engage in extraordinary and significant efforts to aid in the investigation of criminal activity will receive a reduced sentence,” said United States Attorney Matthew Schneider. “The Court’s sentence also ensures that full restitution will be paid to the UAW and its membership for Robinson’s criminal activity.”
“Robinson conspired with senior union officials to embezzle UAW funds in order to personally enrich himself at the expense of the hard-working men and women of the UAW. We will continue to work with our law enforcement partners to investigate corrupt union officials who violate their duty to the members they represent for personal gain,” stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
"Today's sentencing is the next step in a long campaign of restoring the UAW to its core purpose – working for the rights of its members," said Timothy Waters, Special Agent in Charge of FBI Detroit. "To his credit, Mr. Robinson took responsibility for the damage his actions caused to the UAW and worked to correct them. The sentence today reflects that but should not overshadow the seriousness of his conduct."
“IRS Criminal Investigation is committed to investigating anyone who intentionally conceals income from the IRS,” stated Sarah Kull, Special Agent in Charge of the Internal Revenue Service – Criminal Investigation Detroit Field Office.
“Edward Robinson betrayed the trust of his fellow union members and failed in his fiduciary duties by using his union position to carry out elaborate embezzlement schemes to steal over $250,000 from the UAW for the personal benefit of himself and other high-ranking union officers,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards. “Today's conviction leaves no question as to the agency’s commitment to seek justice when anyone puts personal financial gain ahead of the best interests of their fellow union members.”
The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey, Steven Cares, and Adriana Dydell.
Former Member of Baldwin Park City Council Pleads Guilty to Bribery and Admits Receiving Nearly $38,000 to Support a Police ContractRead the Press Release
LOS ANGELES – A former Baldwin Park city councilmember has pleaded guilty to accepting tens of thousands of dollars in bribes – including $20,000 in cash – from a Baldwin Park Police officer working at the FBI’s direction, in exchange for the councilmember’s political support of the Baldwin Park Police Association’s contract with the city, the Justice Department announced today.
Ricardo Pacheco, 58, of Baldwin Park, who was elected to the City Council in 1997 and served as mayor pro tempore in 2018, pleaded guilty on June 15 to a federal bribery charge. On Tuesday, federal prosecutors unsealed a criminal information against Pacheco, as well as portions of a plea agreement in which Pacheco agreed to fully cooperate in ongoing public corruption investigations. The unsealed plea agreement contains a redacted statement of facts to protect the integrity of ongoing aspects of those investigations.
In the documents unsealed this week, Pacheco admitted to soliciting and receiving a total of $37,900 in bribes from a Baldwin Park police officer from January through October 2018 to support and vote for the Police Association’s contract, which was worth at least $4.4 million over three years. The police officer who made the payments did so at the direction of the FBI after another officer and he approached the FBI and agreed to assist in its ongoing corruption investigation. In exchange for the payments, Pacheco voted in favor of the Police Association contract in March 2018.
The payments to Pacheco included a $20,000 cash bribe in October 2018, which the police officer provided to him in an envelope in a Baldwin Park coffee shop. Pacheco also solicited and received $17,900 in checks that he directed be made out to his church and sham political action committees he had set up using other individuals’ names but which he controlled.
As part of his plea agreement, Pacheco agreed to resign from his City Council seat, which he did in June. Pacheco also agreed to forfeit $83,145 in cash proceeds seized by the FBI, which included $62,900 that Pacheco said he had buried in his backyard in two locations.
Pacheco pleaded guilty before United States District Judge Otis D. Wright II. Pacheco is scheduled to be sentenced on August 2, at which time he will face a statutory maximum sentence of 10 years in federal prison.
The case against Pacheco was investigated by the FBI. This case is related to public corruption investigations being conducted by the FBI, IRS Criminal Investigation, and the United States Attorney’s Office.
Any member of the public who has information related to this or any other public corruption matter in Los Angeles County is encouraged to send information to the FBI’s tip line at tips.fbi.gov or to contact the FBI’s Los Angeles Field Office at (310) 477-6565.
The case against Pacheco is being prosecuted by Assistant United States Attorney Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section.
Former Media Producer Indicted on Charges of Extortion and Obstruction of JusticeRead the Press Release
A federal grand jury in the District of Puerto Rico returned an indictment Tuesday charging a former media producer with extortion and obstruction of justice during a federal investigation in San Juan, Puerto Rico.
Sixto Jorge Díaz Colón, 52, of San Juan, was charged with three counts of extortion and obstruction of justice related to his involvement in a scheme linked to the disclosure of Telegram chat messages during the summer of 2019, and his subsequent actions during the investigation of the allegations by the FBI.
According to the indictment, Díaz Colón attempted to extort a public official in the Government of Puerto Rico on June 20, 2019. Díaz Colón attempted to secure a $300,000 payment and other things of value from the official in exchange for the assurance that certain Telegram messages containing damaging information about various public officials in the government would not be disclosed publicly. When approached by the FBI on July 26, 2019, Díaz Colón is alleged to have deleted Telegram messages containing information about his involvement in the scheme, before surrendering his cellular telephone to the authorities.
“As alleged in the indictment, the defendant sought to extort a public official of the government of Puerto Rico for his own financial gain, and then compounded his crime by allegedly destroying evidence of his involvement in the scheme when approached by the FBI,” said Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division. “The Criminal Division is committed to preserving the public’s confidence in our government and protecting public and private citizens alike from the types of criminal exploitation posed by the defendant.”
“Defendant Sixto Jorge Díaz Colón threatened and attempted to extort government officials for $300,000 and the awarding of government contracts,” said Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “He threatened to use his influence as a member of the media and on behalf of two public relations firms to destroy the reputations of public officials if they didn’t comply with his requests. Make no mistake, the U.S. Attorney’s Office and our partner agencies will prosecute those who attempt to extort others and obstruct justice to the fullest extent of the law.”
“Public corruption has many faces… Most often the subject will be a public official who has used his/her position for personl gain,” said Rafael Riviere Vázquez, Special Agent in Charge of the FBI San Juan Field Office. “Sometimes, however, criminals will try to exploit the weaknesses of those who hold public office. This is also a form of public corruption and as any other form of corruption, it will not be tolerated. We have said this before and it merits repeating. If you are a victim or a witness to, or if you find yourself somehow involved in, a public corruption scheme, it will never be too late to do the right thing. We are here, we are doing our job and we want to hear from you.”
The case is being investigated by the FBI and is being prosecuted by Criminal Chief Timothy Henwood and Division Chief Myriam Fernández-González of the U.S. Attorney’s Office for the District of Puerto Rico and Trial Attorney Michael N. Lang of the Criminal Division’s Public Integrity Section (PIN). Former PIN Trial Attorney James Pearce also assisted in the investigation.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Media Producer Indicted on Charges of Extortion and Obstruction of JusticeRead the Press Release
WASHINGTON – A federal grand jury in the District of Puerto Rico returned an indictment Tuesday charging a former media producer with extortion and obstruction of justice during a federal investigation in San Juan, Puerto Rico.
Sixto Jorge Díaz Colón, 52, of San Juan, was charged with three counts of extortion and obstruction of justice related to his involvement in a scheme linked to the disclosure of Telegram chat messages during the summer of 2019, and his subsequent actions during the investigation of the allegations by the FBI.
According to the indictment, Díaz Colón attempted to extort a public official in the Government of Puerto Rico on June 20, 2019. Díaz Colón attempted to secure a $300,000 payment and other things of value from the official in exchange for the assurance that certain Telegram messages containing damaging information about various public officials in the government would not be disclosed publicly. When approached by the FBI on July 26, 2019, Díaz Colón is alleged to have deleted Telegram messages containing information about his involvement in the scheme, before surrendering his cellular telephone to the authorities.
“As alleged in the indictment, the defendant sought to extort a public official of the government of Puerto Rico for his own financial gain, and then compounded his crime by allegedly destroying evidence of his involvement in the scheme when approached by the FBI,” said Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division. “The Criminal Division is committed to preserving the public’s confidence in our government and protecting public and private citizens alike from the types of criminal exploitation posed by the defendant.”
“Defendant Sixto Jorge Díaz Colón threatened and attempted to extort government officials for $300,000 and the awarding of government contracts,” said Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “He threatened to use his influence as a member of the media and on behalf of two public relations firms to destroy the reputations of public officials if they didn’t comply with his requests. Make no mistake, the U.S. Attorney’s Office and our partner agencies will prosecute those who attempt to extort others and obstruct justice to the fullest extent of the law.”
“Public corruption has many faces… Most often the subject will be a public official who has used his/her position for personal gain,” said Rafael Riviere Vázquez, Special Agent in Charge of the FBI San Juan Field Office. “Sometimes, however, criminals will try to exploit the weaknesses of those who hold public office. This is also a form of public corruption and as any other form of corruption, it will not be tolerated. We have said this before and it merits repeating. If you are a victim or a witness to, or if you find yourself somehow involved in, a public corruption scheme, it will never be too late to do the right thing. We are here, we are doing our job and we want to hear from you.”
The case is being investigated by the FBI and is being prosecuted by Criminal Chief Timothy Henwood and Division Chief Myriam Fernández-González of the U.S. Attorney’s Office for the District of Puerto Rico and Trial Attorney Michael N. Lang of the Criminal Division’s Public Integrity Section (PIN). Former PIN Trial Attorney James Pearce also assisted in the investigation.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Former Macomb County Prosecutor Eric Smith Pleads Guilty to Obstruction of JusticeRead the Press Release
Former Macomb County Prosecutor Eric Smith, 53, of Macomb Township, pleaded guilty to a one-count Information charging him with Obstruction of Justice, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Detroit Division.
Smith entered his guilty plea before United States District Judge Linda V. Parker in United States District Court in Detroit this morning.
According to court records, Smith admitted to obstructing justice by attempting to get a friend and two of his assistant county prosecutors to make false statements to federal law enforcement officers and a federal grand jury in a federal criminal investigation of Smith’s own criminal conduct. The charge was based on an investigation by the Federal Bureau of Investigation that revealed that between 2012 and 2020, Smith conducted two fraud schemes to steal approximately $75,000 in cash from his political campaign fund to use for personal expenses. When he became aware of a federal grand jury investigation in 2019, Smith pressured three witnesses to lie and commit perjury on his behalf to federal authorities and a federal grand jury.
As part of guilty plea, Smith admitted that he had stolen over $74,000 from his campaign fund through two different fraud schemes. In one scheme, Smith falsely claimed that he was using campaign funds to pay rent on office space for his re-election efforts. In truth, however, Smith never used the office space, but instead wrote dozens of fraudulent checks to a friend worth over $50,000. The friend then kicked back cash from all of the cashed checks to Smith to use for his personal expenses. In a second fraud scheme, Smith wrote a check for $20,000 from the campaign fund to an assistant Macomb County prosecutor, ostensibly for “consulting” work on the campaign. However, the assistant prosecutor then cashed the check and surreptitiously provided $15,000 in cash to Smith for Smith’s personal expenses.
“Some may view Smith’s conviction as a reason to lack confidence in our elected officials or our prosecutors. But the opposite is true,” stated United States Attorney Matthew Schneider. “This case shows that our system works. When there is a rare case where a law enforcement officer commits crimes, he or she will be held accountable. Smith’s case is that kind of case. No one is above the law in Michigan — and that includes those who enforce the law.”
"Any attempt to hinder a criminal investigation is a very serious matter," said Timothy Waters, Special Agent in Charge of FBI Detroit. "This case, a man who had taken an oath to uphold the law was actively encouraging others to break it. That Mr. Smith was unsuccessful in his attempt to undermine the investigation is a testament to the determination of the FBI to hold individuals accountable when they break the law."
As part of his guilty plea, Smith has agreed to forfeit the $69,950 in fraud proceeds that he personally received from his scheme to steal from his campaign account.
Obstruction of justice is a felony that carries a sentence of up to 20 years in federal prison.
The investigation of this case was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys R. Michael Bullotta and Robert Moran.
Former CFO Faces Additional Tax Charges for Failing to Pay over Hundreds of Thousands of Dollars in Payroll TaxesRead the Press Release
NEWARK, N.J. – The former chief financial officer (CFO) of a Sussex County retail construction company was indicted today on five additional tax charges stemming from his failure to collect, account for, and pay over hundreds of thousands in federal payroll taxes, Acting U.S. Attorney Rachael A. Honig announced.
Jonathan Baker, 39, of Green Township, New Jersey, was originally charged by indictment in December 2019 with five counts of wire fraud and three counts of money laundering for orchestrating a scheme to defraud his former employer and several lenders, including by embezzling millions of dollars for his own personal benefit.
Baker is currently out on bail and will be arraigned at a later date before U.S. District Judge William J. Martini.
According to the superseding indictment:
Baker held the title of CFO of Victim-Company 1, a small, privately held retail construction company located in Sparta, New Jersey. The company acted as a construction manager and a general contractor for construction projects, such as new business offices, retail spaces, and restaurants. Baker also held the title of manager of Victim-Company 2, which held 100 percent of the voting and equitable interest in Victim-Company 1.
From 2015 through 2018, Baker defrauded both companies and several commercial lenders, embezzling millions of dollars from the companies and fraudulently inducing commercial lenders into providing funds to Baker and his associated entities through fraudulent use of Victim-Company 1’s name, bank statements, balance sheet, and bank accounts.
Baker misappropriated millions of dollars from the Victim-Companies’ bank accounts and used the funds for his personal expenses, including mortgage payments on Baker’s residence, the purchase of a BMW, and the purchase of six donkeys.
Baker concealed the fraud by making false statements to members of the Victim-Companies after they confronted him with evidence of the fraud. He falsely claimed that a commercial lender had made a mistake in filing a lien against Victim-Company 1 and repeatedly misrepresented that the commercial lender would be issuing a retraction and apology. Baker then refused to meet or join conference calls with the members of the companies to discuss the liens against Victim-Company 1, refused to produce the Companies’ bank statements, changed the locks on the Companies’ offices, and attempted to disable the Companies’ email and phone system.
From Jan. 31, 2017, to Jan. 31, 2018, Baker withheld tax payments from the pay checks of the employees of Victim-Company 1 but failed to pay over hundreds of thousands of dollars in payroll taxes that were withheld and due to the IRS. Baker also failed to prepare and file quarterly federal tax returns on behalf of Victim-Company 1.
The wire fraud counts each carry a maximum potential penalty of 20 years in prison and a $250,000 fine. The money laundering counts each carry a maximum potential penalty of 10 years in prison and a $250,000 fine. The tax counts each carry a maximum potential penalty of five years in prison and a $250,000 fine.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., and special agents of the IRS, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to the superseding indictment.
The government is represented by Assistant U.S. Attorney Jonathan Fayer of the U.S. Attorney’s Office Economic Crimes Unit.
The charges and allegations contained in the superseding indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Former Amherst Pain Doctor Pleads Guilty to FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Dr. Gautam Arora, 44, formerly of Buffalo, NY, pleaded guilty before U.S. District Lawrence J. Vilardo to unlawfully acquiring controlled prescriptions by misrepresentation and fraud, and scheming to defraud a health care benefit program. The charges carry a maximum penalty of 10 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Joel L. Violanti, who is handling the case, stated that between April 2013, and May 2017, the defendant, while working as the pain management doctor at the Hens Pain Center in Amherst, NY, prescribed opioids to multiple patients outside the usual course of professional practice and without a legitimate medical purpose. These opioids included hydrocodone, oxycodone, dextroamphetamine-amphetamine, and carisoprodol. Arora wrote approximately 61 prescriptions for controlled substances to individuals who were either not his patients, or without first conducting a proper examination, verifying their medical condition, and assessing the risk of abuse by the individual patient.
In addition, between January 1 and March 31, 2016, the defendant fraudulently billed Medicare for patient office visits totaling $92,209.50. Arora requested and received payment for medical services he did not perform or did not perform to the extent represented.
The plea is the result of an investigation by the Drug Enforcement Agency, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
Sentencing is scheduled for June 18, 2021, at 9:30 a.m. before Judge Vilardo.
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Federal Indictment Charges Carjacking, Robbery and Firearm OffensesRead the Press Release
CHICAGO — A federal grand jury has indicted a Chicago man on carjacking and firearm charges for allegedly violently taking vehicles in Chicago and Cicero and attempting to steal another in Oak Park.
JAHEIM HENYARD, 19, stole a Dodge Charger from an Uber Eats driver in Chicago on Aug. 14, 2020, and a Kia Optima Hybrid LX from a victim in Cicero on Aug. 20, 2020, according to a seven-count indictment returned Tuesday in U.S. District Court in Chicago. Henyard also attempted to steal a Mercedes GLC 300 by brandishing a firearm at a victim in Oak Park on July 17, 2020, but was unsuccessful, the indictment states.
The indictment also accuses Henyard and two others – DARIUS YOUNG and XAVIER TATE – of participating in the robbery of a UPS truck in Oak Park on Aug. 21, 2020. During the robbery, the UPS driver was ordered to lay face down in the street while the offenders removed boxes from the truck and drove off, according to a criminal complaint previously filed in the case.
The indictment charges Henyard with two counts of carjacking, two counts of robbery, one count of attempted carjacking, and one count of using, carrying, and brandishing a firearm during a crime of violence. Young, 25, of Berwyn, and Tate, 23, of Chicago, are charged with robbery. Tate also faces a firearm count for allegedly illegally possessing a semiautomatic handgun in Chicago on the same day as the UPS heist. Arraignments in federal court in Chicago have not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The Chicago Police Department, Oak Park Police Department, and Cicero Police Department participated in the investigation. The Cook County State’s Attorney’s Office provided valuable assistance. The government is represented by Assistant U.S. Attorneys Charles W. Mulaney, Timothy Storino, and Albert Berry III.
“Our message to would-be carjackers is simple: Committing a senseless act of violence like carjacking will earn you a home in federal prison for a long time,” said U.S. Attorney Lausch. “Our office is working closely with our law enforcement partners to pursue, prosecute, and detain violent carjackers and gun offenders in Chicago and surrounding area.”
“Carjackers have long terrorized our local communities with acts of violence, but through the combined efforts of our police, federal, and prosecutorial partners we are bringing perpetrators to justice,” said FBI SAC Buie.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The carjacking and attempted carjacking counts are each punishable by up to 15 years in federal prison. The charge against Henyard for brandishing a firearm during a crime of violence carries a minimum prison term of seven years and a maximum term of life, which must be served consecutive to the sentence imposed for the underlying carjacking offense. The maximum sentence for robbery is 20 years. The firearm charge against Tate is punishable by up to ten years. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Federal Grand Jury Indicts Cheektowaga Man on Charges of Receiving and Possessing Child Pornography, Growing Marijuana, and Illegally Possessing GunsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that John Stuart, 32, of Cheektowaga, NY, was arrested and charged by complaint with receipt and possession of child pornography, possession of a firearm by an unlawful user of a controlled substance, manufacturing of marijuana plants, and maintaining drug-involved premises. The charges carry a maximum penalty of 20 years in prison and a $500,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that according to the indictment and a previously filed complaint, on October 19, 2020, members of the FBI Buffalo Child Exploitation Task Force, and the Cheektowaga Police Department executed a search warrant at a residence on Cleveland Drive in Cheektowaga, looking for evidence of the possession of child pornography. During the search, investigators seized two laptop computers, a cellphone, two hard drives, and a desktop computer tower from the residence. During the search, investigators also discovered a bedroom that was transformed into a marijuana growing operation. The room consisted of a tent housing approximately five mature marijuana plants, and four smaller plants, being grown hydroponically. Approximately one pound of dried marijuana ready for use, approximately six pounds of wet marijuana, and a quantity of psilocybin mushrooms were also seized. Three firearms, including one loaded with nine rounds of ammunition, were also found in the residence.
A preliminary examination of the cellphone recovered three videos of child pornography.
The defendant was arraigned before U.S. Magistrate Judge Jeremiah J. McCarthy and released on conditions.
The indictment is the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent-in-Charge Stephen Belongia, and the Cheektowaga Police Department, under the direction of Chief Michael Sliwinski.
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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Fayette County Man Charged with KidnappingRead the Press Release
PITTSBURGH- A resident of Point Marion, PA, has been indicted by a federal grand jury in Pittsburgh on a charge of kidnapping, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Kristopher Holmes, currently at Fayette County Jail, in Uniontown, PA, as the sole defendant.
According to the Indictment, on or about August 30, 2020, Holmes unlawfully abducted his intimate partner and willfully transported her from West Virginia to Pennsylvania.
The law provides for a maximum total sentence of life in prison, a fine of not more than $250,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nicole Vasquez Schmitt, the office’s Domestic Violence Prevention Coordinator, is prosecuting this case on behalf of the government.
The Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Fca US LLC Charged for Making Illegal Payments to Uaw OfficialsRead the Press Release
DETROIT – FCA US LLC (FCA, a/k/a Fiat Chrysler Automobiles), one of the big three American automobile manufacturers, has been charged with and has agreed to plead guilty to conspiring to violate the Labor Management Relations Act, also known as the Taft-Hartley Act, by making illegal payments to officers of the United Auto Workers union, United States Attorney Matthew Schneider announced today.
FCA is the American operating subsidiary of Stellantis.
Today, the United States filed a criminal Information against FCA, charging the company with conspiring with other entities and individuals to violate the Taft-Hartley Act by making more than $3.5 million in illegal payments to officers of the International Union, United Automobile, Aerospace, and Agricultural Implement Workers of America (UAW) during the period 2009 through 2016. During the conspiracy, executives of FCA, including Alphons Iacobelli, Jerome Durden, and others, engineered the illegal payments to senior officials of the UAW. During the conspiracy from 2009 through June 2015, Iacobelli was the Senior Vice President of FCA US LLC in charge of labor relations.
The illegal payments to UAW officials took various forms, including extravagant meals, rounds of golf, lavish parties for the UAW International Executive Board, an Italian-made shotgun, clothing, designer shoes, and other personal items paid for with credit cards issued by the joint training center. FCA executives also paid off the $262,000 home mortgage of former UAW Vice President General Holiefield. Holiefield and his widow also received hundreds of thousands of dollars directed through Holiefield’s purported charitable organization, as well as companies controlled by him which had contracts with the training center. The illegal payments were passed through the UAW-Chrysler Skill Development & Training Program d/b/a the UAW-Chrysler National Training Center (NTC). Ostensibly, the NTC was supposed to provide training and health and safety protections for FCA workers. The UAW officials who accepted illegal payments included former UAW Vice Presidents Holiefield and Norwood Jewell, Holiefield’s widow, Monica Morgan, and senior UAW officials, Virdell King, Keith Mickens, and Nancy Johnson. Morgan and all of the UAW officials, except for Holiefield, have pleaded guilty to conspiring to accept the illegal payments from FCA or tax charges. Holiefield died in 2014.
The United States has entered into a Rule 11 Plea Agreement with FCA. Under the terms of the agreement, FCA has agreed to plead guilty to violating the Labor Management Relations Act. The company has agreed to pay a fine of $30 million. In addition, FCA has agreed to be subject to probation for three years. During that three year period, an independent compliance monitor selected by the government will oversee the company’s adherence to federal labor laws. A guilty plea hearing has not yet been set, and the parties’ plea agreement will be subject to review and approval by the court.
United States Attorney Schneider said, “No matter the size or importance of a company, our job in the Justice Department is to faithfully enforce federal law. This proposed guilty plea ensures that FCA will be held accountable. With a $30 million fine, three years of probation, and a court-appointed monitor, we seek to make sure similar crimes do not happen at the company again.”
“FCA US LLC conspired to make improper labor payments to high-ranking UAW officials, which were used for personal mortgage expenses, lavish parties, and entertainment expenses. Instead of seeking to negotiate in good faith, FCA undermined the collective bargaining process and the UAW members’ rights to fair representation. We will continue to work with our law enforcement partners to root out systemic corruption and fraud involving unions," stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
“FCA provided money and other items of value in an attempt to create an atmosphere more favorable for negotiating with the UAW," said Timothy Waters, Special Agent in Charge of the FBI in Michigan. "This sweeping investigation and the plea today send a clear message that the FBI, along with its federal partners, will continue to hold corporations accountable when they violate federal laws.”
“FCA conspired with its executives and others to divert funds from the National Training Center and line the pockets of numerous UAW officials. These actions undermined the collective bargaining process and deprived UAW represented FCA employees of joint training opportunities. IRS-CI is committed to aggressively investigating corporate fraud and corrupt executives who abuse their positions of power and misuse corporate funds for their personal benefit,” stated Sarah Kull, Special Agent in Charge of the Internal Revenue Service – Criminal Investigation Detroit Field Office.
“Today’s proposed guilty plea holds FCA accountable for its role in undermining the collective bargaining process by making hundreds of thousands of dollars in illegal payments to high ranking UAW officers at the expense of UAW members,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards. “OLMS is committed to seeking justice when anyone puts personal financial gain ahead of the best interests of union members.”
Thus far, as part of this investigation of illegal payments by FCA to UAW officials, as well as fraud and embezzlement by other UAW officers, fifteen individuals have been convicted of federal crimes, including three former FCA executives. They include former UAW Vice President Joseph Ashton (30 months in prison) former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison), former UAW Vice President Norwood Jewell (15 months in prison), and former senior UAW official Michael Grimes (28 months in prison). In addition, the following UAW officials have pleaded guilty and are awaiting sentencing: former UAW President Gary Jones, former senior UAW official Jeffrey Pietrzyk, former UAW Region 5 Director and UAW Board member Vance Pearson, former UAW Midwest CAP President Edward “Nick” Robinson, and former UAW President Dennis Williams.
U.S. Attorney Schneider commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.
This case is being prosecuted by Assistant U.S. Attorneys David A. Gardey and Erin S. Shaw.
Dominican National Sentenced for Crack and Cocaine TraffickingRead the Press Release
BOSTON – A Dominican national previously living in Lawrence was sentenced today for trafficking crack cocaine (also known as cocaine base) and cocaine.
Encebio Esperitusanto, 41, was sentenced by U.S. District Court Judge Allison D. Burroughs to 33 months in prison. Esperitusanto will face deportation upon completion of his sentence. In June 2020, Esperitusanto pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute cocaine and 28 grams or more of cocaine base, one count of distribution of 28 grams or more of cocaine base and one count of distribution of cocaine. Esperitusanto has been in federal custody since he was arrested on March 13, 2019.
Esperitusanto sold crack cocaine to a cooperating source on two occasions in November 2018 in Lawrence. In February 2019, Esperitusanto again arranged for two additional sales of crack and cocaine to the same cooperating source.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division made the announcement today. Assistance was also provided by the U.S. Postal Inspection Service and Immigration and Customs Enforcement. Assistant U.S. Attorneys Katherine Ferguson and Stephen Hassink of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Distributor of Fake Pills Containing Fentanyl Sentenced to More Than Three Years in Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Carlos Mendoza today sentenced Antonio Walthour (28, Clarksville, TN) to three years and six months in federal prison for conspiracy to distribute controlled substances. Walthour had pleaded guilty on January 16, 2020.
According to court documents, this investigation began in February 2016 in response to a fatal drug overdose occurring at the home of Eric and Holly Falkowski, who were running a counterfeit prescription pill operation out of their home in Kissimmee. The Falkowskis were using fentanyl to make pills and pressing them to look like legitimate pharmaceutical controlled substances with markings such as “Xanax,” “Lortab,” “Percocet,” or “Watson.” In the summer of 2015, Walthour agreed to receive these pills and resell them for a profit. Walthour received and sold thousands of the pills in Tennessee before being arrested for this activity in August 2015. In 2017, Eric and Holly Falkowski were sentenced for their roles in the conspiracy to 188 months and 36 months, respectively.
This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Dana E. Hill.
Department of Justice Launches Global Action Against NetWalker RansomwareRead the Press Release
The Department of Justice today announced a coordinated international law enforcement action to disrupt a sophisticated form of ransomware known as NetWalker.
NetWalker ransomware has impacted numerous victims, including companies, municipalities, hospitals, law enforcement, emergency services, school districts, colleges, and universities. Attacks have specifically targeted the healthcare sector during the COVID-19 pandemic, taking advantage of the global crisis to extort victims.
“We are striking back against the growing threat of ransomware by not only bringing criminal charges against the responsible actors, but also disrupting criminal online infrastructure and, wherever possible, recovering ransom payments extorted from victims,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “Ransomware victims should know that coming forward to law enforcement as soon as possible after an attack can lead to significant results like those achieved in today’s multi-faceted operation.”
The NetWalker action includes charges against a Canadian national in relation to NetWalker ransomware attacks in which tens of millions of dollars were allegedly obtained, the seizure of approximately $454,530.19 in cryptocurrency from ransom payments, and the disablement of a dark web hidden resource used to communicate with NetWalker ransomware victims.
“This action reflects the resolve of the U.S. Attorney’s Office for the Middle District of Florida to target and disrupt sophisticated, international cybercrime schemes,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “While these individuals believe they operate anonymously in the digital space, we have the skill and tenacity to identify and prosecute these actors to the full extent of the law and seize their criminal proceeds.”
According to court documents, NetWalker operates as a so-called ransomware-as-a-service model, featuring “developers” and “affiliates.” Developers are responsible for creating and updating the ransomware and making it available to affiliates. Affiliates are responsible for identifying and attacking high-value victims with the ransomware, according to the affidavit. After a victim pays, developers and affiliates split the ransom.
“This case illustrates the FBI’s capabilities and global partnerships in tracking ransomware attackers, unmasking them, and holding them accountable for their alleged criminal actions,” said Special Agent in Charge Michael F. McPherson of the FBI’s Tampa Field Office. “If you are a victim of ransomware, contact your local FBI field office or submit a tip to tips.fbi.gov. You can also file a complaint with the FBI’s Internet Crime Complaint Center at www.ic3.gov.”
Seizure page of dark web hidden resource used to communicate with NetWalker ransomware victims.According to the affidavit, once a victim’s computer network is compromised and data is encrypted, actors that deploy NetWalker deliver a file, or ransom note, to the victim. Using Tor, a computer network designed to facilitate anonymous communication over the internet, the victim is then provided with the amount of ransom demanded and instructions for payment.
Actors that deploy NetWalker commonly gain unauthorized access to a victim’s computer network days or weeks prior to the delivery of the ransom note. During this time, they surreptitiously elevate their privileges within the network while spreading the ransomware from workstation to workstation. They then send the ransom note only once they are satisfied that they have sufficiently infiltrated the victim’s network to extort payment, according to the affidavit.
According to an indictment unsealed today, Sebastien Vachon-Desjardins of Gatineau, a Canadian national, was charged in the Middle District of Florida. Vachon-Desjardins is alleged to have obtained at least over $27.6 million as a result of the offenses charged in the indictment.
The Justice Department further announced that on Jan. 10, law enforcement seized approximately $454,530.19 in cryptocurrency, which was comprised of ransom payments made by victims of three separate NetWalker ransomware attacks.
This week, authorities in Bulgaria also seized a dark web hidden resource used by NetWalker ransomware affiliates to provide payment instructions and communicate with victims. Visitors to the resource will now find a seizure banner that notifies them that it has been seized by law enforcement authorities.
The investigation was led by the FBI’s Tampa field office.
Trial Attorneys S. Riane Harper and Brian Mund of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Carlton C. Gammons and Suzanne Nebesky of the U.S. Attorney’s Office for the Middle District of Florida are prosecuting the case against Vachon-Desjardins.
Substantial assistance was provided by the Department of Justice’s Office of International Affairs. Additionally, the Bulgarian National Investigation Service and General Directorate Combating Organized Crime provided substantial assistance in the seizure of the dark web hidden resource.
An indictment is merely an allegation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Department of Justice Launches Global Action Against NetWalker RansomwareRead the Press Release
Tampa, FL – The Department of Justice today announced a coordinated international law enforcement action to disrupt a sophisticated form of ransomware known as NetWalker.
NetWalker ransomware has impacted numerous victims, including companies, municipalities, hospitals, law enforcement, emergency services, school districts, colleges, and universities. Attacks have specifically targeted the healthcare sector during the COVID-19 pandemic, taking advantage of the global crisis to extort victims.
“We are striking back against the growing threat of ransomware by not only bringing criminal charges against the responsible actors, but also disrupting criminal online infrastructure and, wherever possible, recovering ransom payments extorted from victims,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “Ransomware victims should know that coming forward to law enforcement as soon as possible after an attack can lead to significant results like those achieved in today’s multi-faceted operation.”
The NetWalker action includes charges against a Canadian national in relation to NetWalker ransomware attacks in which tens of millions of dollars were allegedly obtained, the seizure of approximately $454,530.19 in cryptocurrency from ransom payments, and the disablement of a dark web hidden resource used to communicate with NetWalker ransomware victims.
“This action reflects the resolve of the U.S. Attorney’s Office for the Middle District of Florida to target and disrupt sophisticated, international cybercrime schemes,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “While these individuals believe they operate anonymously in the digital space, we have the skill and tenacity to identify and prosecute these actors to the full extent of the law and seize their criminal proceeds.”
According to court documents, NetWalker operates as a so-called ransomware-as-a-service model, featuring “developers” and “affiliates.” Developers are responsible for creating and updating the ransomware and making it available to affiliates. Affiliates are responsible for identifying and attacking high-value victims with the ransomware, according to the affidavit. After a victim pays, developers and affiliates split the ransom.
“This case illustrates the FBI’s capabilities and global partnerships in tracking ransomware attackers, unmasking them, and holding them accountable for their alleged criminal actions,” said Special Agent in Charge Michael F. McPherson of the FBI’s Tampa Field Office. “If you are a victim of ransomware, contact your local FBI field office or submit a tip to tips.fbi.gov. You can also file a complaint with the FBI’s Internet Crime Complaint Center at www.ic3.gov.”
According to the affidavit, once a victim’s computer network is compromised and data is encrypted, actors that deploy NetWalker deliver a file, or ransom note, to the victim. Using Tor, a computer network designed to facilitate anonymous communication over the internet, the victim is then provided with the amount of ransom demanded and instructions for payment.
Actors that deploy NetWalker commonly gain unauthorized access to a victim’s computer network days or weeks prior to the delivery of the ransom note. During this time, they surreptitiously elevate their privileges within the network while spreading the ransomware from workstation to workstation. They then send the ransom note only once they are satisfied that they have sufficiently infiltrated the victim’s network to extort payment, according to the affidavit.
According to an indictment unsealed today, Sebastien Vachon-Desjardins of Gatineau, a Canadian national, was charged in the Middle District of Florida. Vachon-Desjardins is alleged to have obtained at least over $27.6 million as a result of the offenses charged in the indictment.
The Justice Department further announced that on Jan. 10, law enforcement seized approximately $454,530.19 in cryptocurrency, which was comprised of ransom payments made by victims of three separate NetWalker ransomware attacks.
This week, authorities in Bulgaria also seized a dark web hidden resource used by NetWalker ransomware affiliates to provide payment instructions and communicate with victims. Visitors to the resource will now find a seizure banner that notifies them that it has been seized by law enforcement authorities.
The investigation was led by the FBI’s Tampa field office.
Assistant U.S. Attorneys Carlton C. Gammons and Suzanne Nebesky of the U.S. Attorney’s Office for the Middle District of Florida are prosecuting the case against Vachon-Desjardins, along with Trial Attorneys S. Riane Harper and Brian Mund of the Criminal Division’s Computer Crime and Intellectual Property Section.
Substantial assistance was provided by the Department of Justice’s Office of International Affairs. Additionally, the Bulgarian National Investigation Service and General Directorate Combating Organized Crime provided substantial assistance in the seizure of the dark web hidden resource.
An indictment is merely an allegation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Danville Restaurant Owner Pleads Guilty to Wire Fraud, Food Stamp FraudRead the Press Release
ROANOKE, Va. – Bobby Lee James, the owner of Seafood & More in Danville, Virginia, pleaded guilty today in U.S. District Court in Roanoke to defrauding the Supplemental Nutrition Assistance Program (SNAP) by exchanging cash for SNAP benefits, Acting United States Attorney Daniel P. Bubar announced today.
James, 69, pleaded guilty today to one count of wire fraud and one count of food stamp fraud. At sentencing, James faces a maximum statutory penalty of up to 20 years in prison and/or a fine of up to $250,000.
“Societal safety net programs such as SNAP exist to provide vital resources for those in our communities in need, not to line the pockets of fraudsters,” Acting United States Attorney Bubar said today. “When individuals defraud these programs, this United States Attorney’s Office, and our state and local partners, will hold them accountable.”
According to court documents, from October 2010 to July 2018, SNAP redemptions for Seafood and More exceeded the state average of all other seafood specialty class stores in Virginia by more than $2,465,555.
Following an investigation by law enforcement, James admitted that he, and others who worked at Seafood and More, redeemed SNAP benefits in exchange for cash between 2010 and 2018. James also admitted that he directed his employees to redeem SNAP benefits for case during the same time period and that he knew what he was doing was wrong. In total, Seafood and More caused approximately $1,835,767 in loses to the SNAP program.
The investigation of the case was conducted by the United States Department of Agriculture Office of Inspector General, the United States Secret Service, and the Danville Police Department. Assistant United States Attorney Charlene R. Day is prosecuting the case for the United States.
Dade City Man Admits Stealing and Laundering COVID Relief FundsRead the Press Release
Tampa, Florida – Keith Nicoletta (48, Dade City) has pleaded guilty to a conspiracy to launder stolen COVID relief funds. He faces a maximum penalty of 20 years in federal prison. Nicoletta also agreed to forfeit more than $1.9 million, a 2020 Mercedes, a 2020 Ford F-250, real property located in Pasco County, and other funds and assets that are traceable proceeds of the offense.
According to the plea agreement, in May 2020, Nicoletta and his conspirators stole more than $1.9 million in emergency loan funds from the Paycheck Protection Program (“PPP”), which were guaranteed by the Small Business Administration. The fraudulent PPP loan application claimed that Nicoletta’s local business had 69 employees with a purported monthly payroll exceeding $760,000—or more than $9 million annually. In fact, the business had no employees and its address was actually Nicoletta’s home.
Once the emergency loan was secured, the PPP funds were not used for qualified expenses. Instead, the conspirators immediately began laundering the money through several different financial institutions. Nicoletta also withdrew more than $100,000 in cash. In October 2020, more than $40,000 in cash was recovered during a search of Nicoletta’s home. After laundering the PPP funds, Nicoletta spent lavishly, including the purchase of a 2020 Mercedes for more than $100,000, a 2020 special edition Ford F-250 pickup valued at more than $66,000, jewelry, and the installation of a pool at his home costing approximately $63,000. None of the money, however, was used for payroll, as Congress had intended.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted March 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding. The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if the business spends the proceeds on these expenses within a set time period and uses at least a certain percentage of the loan toward payroll expenses.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation, Tampa Field Office. It is being prosecuted by Assistant United States Attorneys Kristen A. Fiore and Suzanne Nebesky.
Convicted Felon Sentenced to 51 Months Imprisonment for Possessing a Firearm in a Crowded Austin Parking LotRead the Press Release
A federal judge in Austin sentenced 27-year-old convicted felon Perry Lee Parks to 51 months imprisonment for illegally possessing a loaded 9 mm pistol in a crowded parking lot in downtown Austin, announced U.S. Attorney Gregg N. Sofer and Austin Police Chief Brian Manley.
According to court records, Austin Police officers arrested Parks on September 8, 2019, in a crowded parking lot behind a Sixth Street business. At the time of his arrest, Parks was in possession of a Glock 9mm pistol with a 31-round extended magazine loaded with 24 rounds of ammunition. Parks’ criminal history reveals six prior felony convictions ranging from theft to delivery of a controlled substance.
“We cannot live in a society where an individual who has six felony convictions over 10 years is permitted to roam our streets with a 9mm handgun loaded with 24 rounds of ammunition. Thanks to the hard work of the Austin Police Department, this particular individual will be off the streets and in federal prison. People may deserve a second chance – not seven,” said U.S. Attorney Sofer.
Parks pleaded guilty to the felon-in-possession charge on October 26, 2020. In addition to the 51-month prison term handed down yesterday, U.S. District Judge Lee Yeakel ordered that Parks be placed under supervised release for a period of three years after completing his prison term.
The Austin Police Department investigated this case with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant U.S. Attorney Daniel Castillo prosecuted this case on behalf of the government.
This case is part of Operation Undaunted, a program which draws on the partnerships among federal, state and local law enforcement coupled with prosecution authorities to tackle the rising violent crime rate, interrupt violence, protect innocent life and restore peace to central and west Texas communities.
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Converse Man Indicted for Production of Child PornographyRead the Press Release
Today, a federal judge unsealed an indictment charging 20-year-old Tanner Bryce Real of Converse with producing, receiving and possessing child pornography, announced U.S. Attorney Gregg N. Sofer and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Real is charged with 10 counts of production of child pornography, 10 counts of receipt of child pornography and one count of possession of child pornography. The indictment alleges that between March 2019 and April 2020, the defendant coerced at least 10 minor victims into engaging in sexually explicit conduct for the purpose of producing visual depictions of such conduct. The indictment further alleges that the defendant received child pornography electronically.
Real remains in federal custody. Each count of production of child pornography calls for between 15 and 30 years in federal prison upon conviction. Each count of receipt of child pornography calls for between five and 20 years in federal prison upon conviction. Possession of child pornography calls for up to 20 years in federal prison upon conviction.
The Boerne Police Department initiated this case and is working in conjunction with the FBI's San Antonio Crimes Against Children Task Force on this investigation. Assistant U.S. Attorney Tracy Thompson is prosecuting this case on behalf of the government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is considered innocent until proven guilty in a court of law.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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.
Connecticut Mother of Three Sentenced to 14 Years for Traveling to Pennsylvania to Attempt to Have Sex with TeenagerRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Sarah Norton, 41, of Jewett City, Connecticut, was sentenced to 14 years in prison, followed by 20 years of supervised release by United States District Court Judge Joseph P. Leeson for child exploitation offenses stemming from her sexually explicit interactions with a 14-year-old boy.
In December 2019, Norton was found guilty after a three-day trial of one count of attempted enticement of a minor to engage in illegal sexual activity, and one count of traveling to engage in illicit sexual conduct with a minor.
The defendant, a mother of three, met the victim while “gaming” online. She then used online and cell phone communications to attempt to seduce the victim into engaging in sexually explicit contact. In late 2017, Norton traveled from her home in Connecticut to Pennsylvania to meet with the boy for sex in a hotel room that she had rented in the vicinity of Allentown, PA. Norton’s plan was foiled after the victim’s father became suspicious of the messages the victim had on his cell phone and interrupted the plan.
“Sarah Norton deliberately and aggressively manipulated a 14-year-old boy, a child that was around the same age as her own children, for her own sexually deviant motives,” said Acting U.S. Attorney Williams. “Her predatory behavior is difficult to comprehend; as a mother herself, she knew the damage she was causing and simply did not care. Our Office will continue to investigate and prosecute sexual predators like the defendant so that they can no longer harm innocent children.”
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.
The case was investigated by the Federal Bureau of Investigation and the Upper Macungie Police Department, and is being prosecuted by Assistant United States Attorney Sherri A. Stephan.
Colorado Man Sentenced to 19 Years for Enticing a MinorRead the Press Release
United States Attorney Joe Kelly announced that Nathan Lee Kempter, 33, of Littleton, Colorado, was sentenced today in Lincoln, Nebraska, by Chief United States District Judge John M. Gerrard. Kempter was previously found guilty by a jury for enticement of a minor and travel with intent to engage in illicit sexual conduct. Kempter was sentenced to 19 years in prison. After his release from prison, he will begin a 12-year term of supervised release. There is no parole in the federal system. Kempter will also be required to register as a sex offender.
In August of 2019, the Lincoln Police Department was contacted about a missing 14-year-old girl. The girl had last been heard talking to someone on the phone. She had been observed near her residence getting into a red, four-door SUV and leaving the area. Her phone was reviewed for additional information and revealed a Colorado telephone number that she had called. The number belonged to Kempter who resided in Highlands Ranch, Colorado. Kempter was also the registered owner of a red 2015 Nissan SUV. The police were able to track the movement of Kempter’s cellphone and determined it was located just across the Nebraska/Colorado border on Interstate 76. Lincoln Police contacted law enforcement authorities in Colorado.
On August 02, 2019 at 11:54 p.m., Douglas County, Colorado Sheriff’s deputies saw Kempter driving toward his residence in Highland Ranch, Colorado. Deputies stopped the vehicle in front of the residence and Kempter was arrested. At that time, Kempter informed the deputies that the young girl in his vehicle was 14 years old.
The 14-year-old stated she met Kempter on the Reddit website, in a chat room for teen runaways. Her screen name indicated she was a 14-year-old female. After communicating with Kempter on Reddit, they moved their conversation to Tumblr, another social media platform, and exchanged messages between July 23, 2019 and August 2, 2019. During these conversations, Kempter made it known he wanted to have sex with the girl and would bring her to Colorado.
After picking her up at her residence in Nebraska, Kempter began to drive west on Interstate 80. She was told to lay down in the front seat and cover herself. At some point while in Nebraska, Kempter stopped at a Walmart so that he could buy her new clothes. Evidence obtained in a search of Kempter’s vehicle revealed the purchase of boy’s pants, a shirt, and a blanket.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Lincoln Police Department, the Douglas County Sheriff’s Department in Colorado and the Federal Bureau of Investigation.
Cincinnati man sentenced to 20 years in prison for sexually exploiting toddlerRead the Press Release
CINCINNATI – Thomas Winkelbach, 79, of Cincinnati, was sentenced in U.S. District Court today to 240 months in prison and a lifetime of supervised release for taking sexually explicit photos of a toddler victim.
Winkelbach pleaded guilty in federal court in July 2020 to one count of sexual exploitation of a minor.
According to court documents, Winkelbach used a digital camera to take sexually explicit pictures of a young child touching Winkelbach’s penis and other pictures of Winkelbach masturbating in front of the victim. The crime occurred in 2014 or 2015, but the exact date is unknown. The victim was between 1 and 2 years old.
Investigators say in court documents that Winkelbach has been searching for, downloading and trading child pornography on the internet for years. Between all of his digital media seized by investigators in October 2019, Winkelbach possessed thousands of images of child pornography.
The Hamilton County Sheriff’s Office and Cincinnati Police Department’s Regional Electronics Computer Investigations (RECI) Task Force investigated this case.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Hamilton County Sheriff Charmaine McGuffey; and Cincinnati Police Chief Eliot K. Isaac announced the sentence imposed today by U.S. District Judge Michael R. Barrett. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.
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California Man Sentenced for Iowa Methamphetamine ConspiracyRead the Press Release
A California man who conspired to distribute methamphetamine in Iowa was sentenced on January 26, 2021, in federal court in Sioux City.
Gabriel Mata-Becerra, 27, from Hayward, California, pled guilty on September 17, 2020, to conspiracy to distribute methamphetamine.
At the plea hearing, Mata-Becerra admitted that beginning on or about March 2019 and continuing to on or about May 2019, he and others had an agreement to distribute more than 50 grams of methamphetamine. While acting in furtherance of that agreement, on or about April 21, 2019, Mata-Becerra was traffic stopped in Wyoming and law enforcement seized approximately ten pounds of ice methamphetamine from inside an unconnected speaker box in the trunk of his vehicle. Mata-Becerra further admitted that he had acquired the methamphetamine in California and was traveling from California to Hawarden, Iowa to deliver the methamphetamine to another person.
Mata-Becerra was sentenced before United States District Court Chief Judge Leonard T. Strand. Mata-Becerra was sentenced to 51 months’ imprisonment. He must also serve a 3 year term of supervised release following any imprisonment. There is no parole in the federal system. Mata-Becerra is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office; the Wyoming State Patrol; and Wyoming Division of Criminal Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4054. Follow us on Twitter @USAO_NDIA.
Businessman Charged in Scheme to Hoard Personal Protective Equipment and Price Gouge Health Care ProvidersRead the Press Release
WASHINGTON – A Mississippi businessman was charged with defrauding the United States and other health care providers in a $1.8 million scheme related to acquiring and hoarding personal protective equipment (PPE) and price gouging health care providers, including numerous U.S. Department of Veterans Affairs (VA) hospitals in critical need of PPE.
Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division, Darren J. LaMarca, Acting U.S. Attorney of the Southern District of Mississippi, Michelle A. Sutphin, Special Agent in Charge of the FBI’s Jackson, Mississippi Field Office, Michael J. Missal, Inspector General of the VA Office of Inspector General (OIG), and Jack Stanton, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE HSI), New Orleans Field Office made the announcement.
Kenneth Bryan Ritchey, 57, of Ocean Springs, Mississippi, was charged in an indictment in the Southern District of Mississippi with conspiracy to commit wire fraud and mail fraud, conspiracy to defraud the United States, conspiracy to commit hoarding of designated scarce materials, and hoarding of designated scarce materials. The defendant made his initial appearance today before U.S. Magistrate Judge Robert Myers of the Southern District of Mississippi.
The indictment alleges that after the first U.S.-confirmed case of COVID-19, Ritchey participated in a scheme to defraud health care providers, including the VA, of more than $1.8 million by acquiring PPE and other designated materials from all possible sources, including home improvement stores and online retailers, and ultimately hoarding the same. The indictment alleges that due to nationwide PPE shortages and COVID-19-related fears, Ritchey directed sales representatives to solicit health care providers, including the VA, to purchase PPE and other designated materials at excessively inflated prices through high-pressure sales tactics and through misrepresenting sourcing and actual costs. It is alleged that Ritchey sold PPE to health care providers desperate to acquire the same at incredible markups. For instance, the indictment alleges that Ritchey sold N-95 masks to the VA and other health care providers for as much as $25.00 per mask, despite acquiring such masks at much lower prices.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI’s Jackson Field Office, VA-OIG, and ICE HSI. Principal Assistant Deputy Chief Dustin M. Davis and Trial Attorney Sara E. Porter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kathlyn R. Van Buskirk of the Southern District of Mississippi are prosecuting the case.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The public is asked to report COVID-19 fraud, hoarding or price-gouging to the National Center for Disaster Fraud’s (NCDF) National Hotline at (866) 720-5721 or visit The Department of Justice’s NCDF website.
Businessman Charged in Scheme to Hoard Personal Protective Equipment and Price Gouge Health Care ProvidersRead the Press Release
A Mississippi businessman was charged with defrauding the United States and other health care providers in a $1.8 million scheme related to acquiring and hoarding personal protective equipment (PPE) and price gouging health care providers, including numerous U.S. Department of Veterans Affairs (VA) hospitals in critical need of PPE.
Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division, Darren J. LaMarca, Acting U.S. Attorney of the Southern District of Mississippi, Michelle A. Sutphin, Special Agent in Charge of the FBI’s Jackson, Mississippi Field Office, Jeffrey A. Breen, Special Agent in Charge of the VA Office of Inspector General (OIG) South Central Field Office, and Jack Stanton, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE HSI), New Orleans Field Office made the announcement.
Kenneth Bryan Ritchey, 57, of Ocean Springs, Mississippi, was charged in an indictment in the Southern District of Mississippi with conspiracy to commit wire fraud and mail fraud, conspiracy to defraud the United States, conspiracy to commit hoarding of designated scarce materials, and hoarding of designated scarce materials. The defendant made his initial appearance today before U.S. Magistrate Judge Robert Myers of the Southern District of Mississippi.
The indictment alleges that after the first U.S.-confirmed case of COVID-19, Ritchey participated in a scheme to defraud health care providers, including the VA, of more than $1.8 million by acquiring PPE and other designated materials from all possible sources, including home improvement stores and online retailers, and ultimately hoarding the same. The indictment alleges that due to nationwide PPE shortages and COVID-19-related fears, Ritchey directed sales representatives to solicit health care providers, including the VA, to purchase PPE and other designated materials at excessively inflated prices through high-pressure sales tactics and through misrepresenting sourcing and actual costs. It is alleged that Ritchey sold PPE to health care providers desperate to acquire the same at incredible markups. For instance, the indictment alleges that Ritchey sold N-95 masks to the VA and other health care providers for as much as $25.00 per mask, despite acquiring such masks at much lower prices.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI’s Jackson Field Office, VA-OIG, and ICE HSI. Principal Assistant Deputy Chief Dustin M. Davis and Trial Attorney Sara E. Porter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kathlyn R. Van Buskirk of the Southern District of Mississippi are prosecuting the case.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The public is asked to report COVID-19 fraud, hoarding or price-gouging to the National Center for Disaster Fraud’s (NCDF) National Hotline at (866) 720-5721 or visit The Department of Justice’s NCDF website.
Burlington County Doctor Sentenced to 33 Months in Prison for Role in $24 Million Telemedicine Compounded Medication SchemeRead the Press Release
NEWARK, N.J. – A Burlington County, New Jersey, doctor was sentenced today to 33 months in prison for his role in a telemedicine scheme to prescribe expensive compounded medications to patients who did not need them, Acting U.S. Attorney Rachael A. Honig announced.
Bernard Ogon, 48, of Burlington Township, New Jersey, previously pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to one count of health care fraud conspiracy. Judge Vazquez imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
Ogon admitted he signed prescriptions for compounded medications (medications with ingredients of a drug tailored to the needs of a particular patient) without having established a doctor-patient relationship, spoken to the patient or conducted any medical evaluation. Ogon often signed preprinted prescription forms – with patient information and medication already filled out – where all that was required was his signature. Then, instead of providing the prescription to the patient, Ogon would return the prescriptions to specific compounding pharmacies involved in the conspiracy. Ogon was paid $20 to $30 for each prescription he signed, and his participation in the conspiracy caused losses to health care benefit programs of over $24 million, including losses to government health care programs of over $7 million.
In addition to the prison term, Judge Vazquez sentenced Ogon to three years of supervised release and ordered restitution of $24.3 million and forfeiture of $75,000.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr.; the Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty, and special agents of the Department of Health and Human Services, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to today’s sentencing.
The government is represented by Jason S. Gould, Acting Chief of the Violent Crimes Unit of the U.S. Attorney’s Office in Newark.
Brooklyn Attorney Charged with Defrauding Real Estate InvestorsRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Shimon Rosenfeld, an attorney admitted to practice law in the State of New York since 1987, with defrauding multiple investors of at least $4 million by falsely claiming he was investing their funds in real estate opportunities. Rosenfeld was arrested this morning and made his initial appearance this afternoon via videoconference before United States Chief Magistrate Judge Cheryl. L. Pollak. The defendant was released on a $200,000 bond.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Patrick J. Freaney, Deputy Special Agent-in-Charge, United States Secret Service, New York Field Office (USSS), announced the charge.
“Through this alleged scheme, Rosenfeld abused his position as an attorney and betrayed his victims’ trust for his own selfish gain,” stated Acting United States Attorney DuCharme. “Those who commit fraud, including lawyers, must be brought to justice, and this Office will continue to work tenaciously to ensure integrity in the practice of law.”
“As alleged, Rosenfeld solicited investments based on his stated intent to purchase various real estate and 'flip' it for substantial profit. In reality, he didn't buy any properties, so there were none to sell. Rather, Rosenfeld used the money he received to make his own financial trades and investments. Today, we’ve flipped the script on him and held him accountable for his fraudulent actions,” stated FBI Assistant Director-in-Charge Sweeney.
“The U.S. Secret Service remains dedicated to investigating those who commit financial fraud and would like to recognize the efforts of our law enforcement partners in helping bring them to justice,” stated USSS Deputy Special Agent-in-Charge Freaney. “This investigation exemplifies the success that law enforcement can achieve when working in a collaborative manner. In this instance, the defendant allegedly perpetrated a scheme to defraud and misappropriated funds from numerous victims for his own personal gain.”
According to the complaint, between May 2014 and March 2018, Rosenfeld allegedly perpetrated a fraudulent scheme by soliciting and receiving approximately at least $4 million from various individuals (collectively, the “Victims”) based on fraudulent misrepresentations. Specifically, Rosenfeld induced the Victims to invest their money with the defendant based, in part, on representations that he would purchase real estate and sell it to a prospective buyer at a higher price, also referred to as “flipping” the property. Rosenfeld further told the Victims that he would split the profits from the real estate transactions with the Victims. In reality, Rosenfeld misappropriated the investors’ money by directing the funds into bank accounts he controlled and using the money to trade securities out of his brokerage account. Rosenfeld falsely told the Victims that there were problems with the real estate transactions, such as title or appraisal issues, to explain why no properties had been purchased.
If convicted of wire fraud, Rosenfeld faces up to 20 years’ imprisonment. The charge in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Business & Securities Fraud Section. Assistant United States Attorney Hiral D. Mehta is in charge of the prosecution.
The Defendant:
SHIMON ROSENFELD
Age: 59
Brooklyn, New YorkE.D.N.Y. Docket No. 21-MJ-96
Braddock Felon Charged with Violating Federal Drug and Firearms LawsRead the Press Release
PITTSBURGH, PA. - A resident of Braddock, PA, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal firearms and narcotics laws, United States Attorney Scott W. Brady announced today.
The three-count Indictment named Deshaun Curtis Jones, age 29, as the sole defendant.
According to the Indictment, on January 20, 2021, Jones possessed fentanyl with intent to distribute, possessed a firearm in furtherance of a drug trafficking crime, and possessed a firearm as a convicted felon.
The law provides for a maximum total sentence of life in prison, a fine of $1,500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Doug Maloney is prosecuting this case on behalf of the government.
The FBI and the North Huntingdon Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Aroostook County Man Pleads Guilty to Federal Drug ChargeRead the Press Release
BANGOR, Maine: A Presque Isle man pleaded guilty in federal court today to conspiring to distribute and possess with intent to distribute methamphetamine, U.S. Attorney Halsey B. Frank announced.
According to court records, between approximately July 2018 and May 2019, members of the conspiracy obtained methamphetamine in western and southern states from sources in Mexico. Conspirators distributed the drugs in Aroostook County and other parts of central and northern Maine. Michael Deveau, 35, traveled with co-conspirators on one such trip to Georgia to obtain methamphetamine and transport it back to Maine.
Deveau faces up to 20 years in prison and a fine of up to $1 million. He also faces between three years and a lifetime of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The U.S. Drug Enforcement Administration, Homeland Security Investigations and the Maine Drug Enforcement Agency investigated this case with the assistance of multiple state and local law enforcement agencies.
The prosecution is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) Program, a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Albuquerque man faces federal firearms charges under Operation LegendRead the Press Release
ALBUQUERQUE, N.M. – Eduardo Enrique Zazueta, 27, of Albuquerque, appeared in federal court Jan. 13, charged with being a felon in possession of a firearm and ammunition.
Zazueta was indicted by a federal grand jury on Nov. 17, 2020. According to the indictment, on Sept. 20, 2020, Zazueta allegedly possessed a 9mm pistol and ammunition. As a previously convicted felon, Zazueta cannot legally possess firearms or ammunition.
A complaint is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Zazueta faces up to 10 years in prison.
The Bureau of Alcohol Tobacco, Firearms and Explosives investigated this case as part of Operation Legend, a coordinated federal and local law enforcement initiative to fight gun and dangerous crime. Assistant U.S. Attorney Jaymie L. Roybal is prosecuting the case.
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Albany Felon Sentenced to 32 Months for Illegally Possessing a FirearmRead the Press Release
ALBANY, NEW YORK – Zaiqua Acosta, age 22, of Albany, was sentenced today to 32 months in prison for unlawfully possessing a firearm and ammunition as a felon.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Acosta, who has a 2016 felony conviction for criminal possession of stolen property, admitted that on May 5, 2020, he possessed a Smith & Wesson SD40 VE .40 caliber pistol, loaded with nine rounds of ammunition.
Senior Judge Lawrence E. Kahn also imposed a 3-year term of post-imprisonment supervised release.
This case was investigated by the Albany Police Department and the ATF, and was prosecuted by Assistant U.S. Attorney Rachel Williams.
Tuesday 26 January 2021
Yankton Man Sentenced for Transportation of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Yankton, South Dakota, man convicted of Transportation of Child Pornography was sentenced on January 25, 2021, by U.S. District Judge Karen E. Schreier.
Joshua Robert Hein, age 49, was sentenced to 130 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Hein was indicted by a federal grand jury on July 9, 2019. He pled guilty on June 26, 2020.
The conviction stemmed from incidents between November 1, 2018, and February 21, 2019, when Hein, using his cell phone and the internet, uploaded graphic image and video files depicting child pornography into his Google account. Hein knew the files contained child pornography.
This case was investigated by South Dakota Division of Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Hein was immediately turned over to the custody of the U.S. Marshals Service.
U.S. Attorney Announces Extradition of Two Defendants in Multimillion-Dollar Text Messaging Consumer Fraud SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Ramsey E. Covington, the Acting Special Agent-in-Charge of the Boston Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that MICHAEL PEARSE, an Australian national, and YONGCHAO LIU, a/k/a “Kevin Liu,” a Chinese national, were extradited from Australia and arrived in the United States yesterday. PEARSE and LIU were extradited on charges of conspiracy to commit wire fraud, wire fraud, aggravated identity theft, and, as to PEARSE, conspiracy to commit money laundering, stemming from the defendants’ participation in a scheme to charge mobile phone customers millions of dollars in monthly fees for unsolicited, recurring text messages about topics such as horoscopes, celebrity gossip, and trivia facts, without the customers’ knowledge or consent – a practice that the defendants and their co-conspirators referred to as “auto-subscribing.” The portion of the fraudulent scheme that PEARSE, LIU, and their co-conspirators orchestrated generated more than $50 million in proceeds for themselves. PEARSE and LIU will be presented and arraigned today before U.S. Magistrate Judge Debra Freeman. The case has been assigned to U.S. District Judge Analisa Torres.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Michael Pearse and Yongchao Liu played key roles in an international consumer fraud conspiracy that victimized hundreds of thousands of mobile phone customers to the tune of more than $50 million. Thanks to IRS Criminal Investigation and the FBI, as well as our international partners, Pearse and Liu are now in the United States and facing serious charges in this District.”
IRS-CI Acting Special Agent in Charge Ramsey E. Covington said: “Through a sophisticated text messaging scam, the defendants and their co-conspirators allegedly swindled more than $50 million in proceeds from hundreds of thousands of unwitting mobile customers. Yesterday’s extraditions continue the pathway to justice for the staggering number of victims and financial losses accumulated as a result of this alleged scheme. I applaud the collective efforts of the law enforcement agencies whose collaboration and coordination made the extraditions possible.”
FBI Assistant Director William F. Sweeney Jr. said: “Pearse and Liu will finally face the consequences for the text messaging scheme they were charged with more than five years ago. Their extradition is a reminder that being out of our sight and out of our reach are two different things.”
According to allegations in the Indictment[1], evidence presented at the trial of co-conspirator Darcy Wedd, and other public filings:
From in or about 2011 through in or about 2013, PEARSE, LIU, and their co-conspirators engaged in a multimillion-dollar scheme to defraud consumers by placing unauthorized charges for premium text messaging services on consumers’ cellular phone bills, through a practice known as auto-subscribing.
During the relevant time period, Lin Miao, a co-conspirator of PEARSE and LIU, operated a company called Tatto, which offered premium text messaging services – such as monthly horoscopes, celebrity gossip, and trivia facts – to mobile phone customers. PEARSE and LIU worked for a company called Bullroarer, which was affiliated with Tatto. PEARSE was the CEO of Bullroarer and LIU was a Java development engineer for Bullroarer. Co-conspirator Darcy Wedd operated Mobile Messenger, a U.S. aggregation company in the mobile phone industry that served as a middleman between content providers such as Tatto and mobile phone carriers, and was responsible for assembling monthly charges incurred by a particular mobile phone customer for premium text messaging services and placing those charges on that customer’s cellular phone bill.
To carry out the scheme, co-conspirators at Tatto purchased large numbers of mobile phone numbers from co-conspirators at Mobile Messenger, who had access to those numbers by virtue of their employment. PEARSE, LIU, and their co-conspirators then worked to have unsolicited text messages sent to these and other mobile phone numbers and to enroll those customers in premium text messaging services without their knowledge or consent. PEARSE, LIU, and their co-conspirators also took steps to conceal the fraud scheme by making it appear as if the customers had, in fact, elected to purchase the text messaging services, when in truth they had not.
The consumers who received the unsolicited text messages typically ignored or deleted the messages, often believing them to be spam. Regardless, the consumers were billed for the receipt of the messages, at a rate of $9.99 per month, through charges that typically appeared on the consumers’ cellular telephone bills in an abbreviated and confusing form, e.g., with billing descriptors such as “96633IQ16CALL8668611606” and “25184USBFIQMIG.” The $9.99 charge recurred each month unless and until consumers noticed the charges and took action to unsubscribe. Even then, consumers’ attempts to dispute the charges and obtain refunds from Tatto, Bullroarer, or other corporate affiliates of Tatto were often unsuccessful.
After obtaining proceeds of the fraud scheme, PEARSE worked with other co-conspirators to launder the proceeds. PEARSE and his co-conspirators distributed the proceeds of the fraud scheme among themselves and others involved in the scheme by, among other things, causing funds to be transferred through the bank accounts of a series of shell companies and companies held in the names of third parties. This was done in order to conceal the nature and source of the payments and PEARSE’s and his co-conspirators’ participation in the fraud.
Through their successful orchestration of this fraud scheme, which affected hundreds of thousands of consumers, PEARSE, LIU, and their co-conspirators generated more than $50 million in fraud proceeds for themselves.
* * *
PEARSE, 52, and LIU, 33, are each charged with one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. §§ 1343 and 1349, which carries a maximum penalty of 20 years in prison; one count of wire fraud, in violation of 18 U.S.C. §§ 1343 and 2, which also carries a maximum penalty of 20 years in prison; and one count of aggravated identity theft, in violation of 18 U.S.C. §§ 1028A and 2, which carries a mandatory sentence of two years in prison, consecutive to any other sentence imposed. In addition, PEARSE is charged with one count of conspiracy to commit money laundering, in violation of 18 U.S.C. §§ 1956(a)(1)(B)(i), 1957, and 1956(h), which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of IRS-CI and the FBI. In addition, Ms. Strauss thanked law enforcement partners in Australia, particularly the International Crime Cooperation Central Authority, Australian Federal Police, and the New South Wales Police Force, as well as the U.S. Department of Justice’s Office of International Affairs, for their support and assistance with the defendants’ extraditions.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Jilan Kamal and Olga Zverovich are in charge of the prosecution.
The charges in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment and charges set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Two More Individuals Plead Guilty in Connection with Health Care Kickback ConspiracyRead the Press Release
TEXARKANA, Texas – Two more individuals have pleaded guilty to conspiring to pay and receive kickbacks in violation of the Anti-Kickback Statute, announced Acting United States Attorney Nicholas J. Ganjei.
Kimberly Willette, 59, of Friendswood, Texas, and Edwin Chad Isbell, 48, of McKinney, Texas, pleaded guilty to conspiracy to commit illegal remunerations on Jan. 25, 2021 before U.S. Magistrate Judge Caroline Craven.
Nicolas Arroyo of Newport Coast, California, previously pleaded guilty for his involvement in the conspiracy.
“Kickback schemes are anti-competitive, lead to overutilization and higher program costs, and prioritize profits over patient care,” said Acting United States Attorney Nicholas J. Ganjei. “The payment and receipt of kickbacks related to federal health care programs will not be tolerated in the Eastern District of Texas.”
According to information presented in court, the defendants conspired with others to pay and receive kickbacks in exchange for the referral of, and arranging for, health care business, specifically pharmacogenetic (PGx) tests. Pharmacogenetic testing, also known as pharmacogenomic testing, is a type of genetic testing that identifies genetic variations that effect how an individual patient metabolizes certain drugs. The illegal arrangement concerned the referral of PGx tests to clinical laboratories in Fountain Valley, California, Irvine, California, and San Diego, California. More than $28 million in illegal kickback payments were exchanged by the defendants and others during the conspiracy.
In December 2019, Arroyo and eleven other individuals from three states were charged for their roles in the kickback conspiracy. A federal grand jury in the Eastern District of Texas returned an indictment against Philip Lamb of Scottsdale, Arizona; Nicolas Arroyo of Newport Coast, California; Vincent Marchetti, Jr., of Coronado, California; William Flowers of Houston, Texas; Steven Donofrio of Temecula, California; James J. Walker, Jr. a/k/a Jimmy Walker of Frisco, Texas; Timothy Armstrong of Frisco, Texas; Virginia Blake Herrin of Frisco, Texas; Patrick Ridgeway of Jackson, Mississippi; Chismere Mallard of McAllen, Texas; Ray W. Ng of Dallas, Texas; and Ashley Kretzschmar of Aledo, Texas; for conspiring to commit illegal remunerations in violation of the Anti-Kickback Statute.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remunerations in exchange for the referral of or arranging for items or services payable under federal health care programs. Under federal statutes, violations of the Anti-Kickback statute are punishable by up to five years in federal prison.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, the FBI Dallas – Frisco Resident Agency, and the U.S. Department of Homeland Security, Homeland Security Investigations. It was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and L. Frank Coan, Jr.
Two Akron-area men charged with intent to distribute approximately 10,000 THC vape cartridges and psilocin in Northern OhioRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced today that a four-count indictment charging Gage Predojev, age 22, and Justin Duma, age 22, both of Akron, Ohio, with drug trafficking and firearm offenses was unsealed following the arrest of the defendants.
Gage Predojev was charged with one count of possession with intent to distribute controlled substances (THC) and one count of felon in possession of a firearm. Justin Duma was charged with one count of possession with intent to distribute controlled substances (psilocin) and one count of possession of a firearm in furtherance of drug trafficking.
In September of 2019, it is alleged that defendant Predojev drove from Michigan to Cleveland, Ohio, with approximately 10,000 THC vape cartridges in his vehicle. Defendant Predojev allegedly intended to distribute the vape cartridges in the Northern District of Ohio.
In October 2019, law enforcement agents executed a search warrant at the Akron-area residence of defendants Predojev and Duma and seized various controlled substances, including THC vape cartridges and 400+ grams of psychedelic mushrooms (psilocin); several firearms and ammunition; and $18,432.00 in cash.
Defendant Predojev is prohibited from owning a firearm due to previous convictions of drug trafficking in the Summit County Court of Common Pleas.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This case was investigated by the FDA – Office of Criminal Investigations in conjunction with the Ohio Attorney General’s Organized Crime Commission Major Crimes Task Force which consists of the Cuyahoga County Sheriff’s Department, Cuyahoga County Prosecutor’s Office, FDA-OCI, U.S. Postal Inspection Service and Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Aaron P. Howell.
Turtle Mountain Indian Reservation Man sentenced to 30 years in Federal Prison for Sexually Abusing Six ChildrenRead the Press Release
Fargo – United States Attorney Drew Wrigley announced that U.S. District Court Chief Judge Peter D. Welte has sentenced Roger Decoteau, age 65 of Belcourt, ND, to 30 years and 5 months in federal prison for Abusive Sexual Contact, 18 USC 2244. Judge Welte also sentenced Decoteau to lifetime supervision, to register as a sexual offender, and $200 in special assessment fees.
In November 2018, the Federal Bureau of Investigation (FBI) began investigating Roger Decoteau for the sexual abuse of minors after an eight year old child disclosed that Decoteau had sexually abused the child. The FBI continued its investigation, eventually securing evidence that Decoteau had sexually abused six children. The children were all under the age of 12 when Decoteau abused them, and each of the children viewed Decoteau as a trusted adult and foster parent. Decoteau has served as a foster parent in the Turtle Mountain community for nearly a decade.
On May 6, 2019, Decoteau was arrested and charged for multiple counts of child sexual abuse. Decoteau admitted to sexually abusing three minor females, claiming that he was "feeling helpless" so he "turned to the helpless."
"The defendant preyed upon children he had a responsibility to protect," said US Attorney Drew Wrigley, "and his deplorable exploitation of these children all but ensures that the final decades of his life will be spent in federal prison."
This case was investigated by the FBI and the Northern Plains Children’s Advocacy Center, and was prosecuted by Assistant United States Attorney Dawn M. Deitz.
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Tri-City Metro Drug Task Force Receives over $132,800 Forfeiture Award from U.S. Department of Justice as a Result of Dismantling Fentanyl-Laced Pill Drug Trafficking Ring in the Tri-City AreaRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, and Frank A. Tarentino III, Special Agent in Charge of the Seattle Field Division of the U.S. Drug Enforcement Administration, announced today and presented the Tri-City Metro Drug Task Force with $132,876 in asset forfeiture equitable sharing funds. Kennewick Police Chief Ken Hohenberg, Governing Board Chair of the Metro Drug Task Force, accepted the funds on behalf of the Task Force.
The Tri-City Metro Drug Task Force was originally formed in 1988 and has for more than 30 years had a significant impact on disruption of narcotics trafficking and related criminal activities in the Tri-Cities region, and across the State of Washington and the Pacific Northwest. It can use these funds to further its efforts. The Metro Drug Task Force is comprised of officers from the Kennewick Police Department, Richland Police Department, Pasco Police Department, West Richland Police Department, Benton County Sheriff’s Office, and Franklin County Sheriff’s Office.
The asset forfeiture funds presented today are the result of an Organized Crime Drug Enforcement Task Force (OCDETF) and Metro Drug Task Force investigation which targeted distributors of Fentanyl-laced pills in the Tri-City area. The investigation and law enforcement action began in 2017, indictments issued in 2018, and in 2020 the final assets were forfeited.
Fentanyl, an extremely dangerous and deadly opioid, is largely responsible for the marked increase in drug overdoses and deaths in Eastern Washington. Fentanyl is the most dangerous and insidious drug facing our community today. Fentanyl-laced pills, are illegally manufactured most commonly in Mexico and have found their way into this community and others in devastating numbers. Fentanyl is 100 times more potent than morphine and hundreds of times more potent than street-level heroin. People using even a partial Fentanyl-laced pill have died instantly.
The forfeiture funds shared with Metro Drug Task Force today were seized and forfeited from two defendants who have been previously sentenced and a third individual who is a fugitive:
- Taylor Fertig, of Kennewick, Washington, pleaded guilty to Conspiracy to Distribute 400 grams or more of Fentanyl, and was sentenced on June 26, 2019, to a 10-year term of imprisonment, to be followed by a 5-year term of court supervision. He was also ordered to forfeit $12,220 in U.S. currency seized by the United States. According to information disclosed during court proceedings, Fertig was identified as one of the first major distributors in the Tri-City area of Fentanyl-laced pills that are unlawfully made to appear to be prescription oxycodone medication.
- Dustin Alvin Zuhlke of Kennewick, Washington, pleaded guilty to Conspiracy to Distribute Fentanyl, and was sentenced on October 22, 2020, to a 4-year term of imprisonment, to be followed by a 3-year term of court supervision, and was ordered to forfeit $136,982 in U.S. currency seized by the United States. According to information disclosed during court proceedings, Zuhlke was identified as a large scale distributor of Fentanyl-laced pills, selling over 1,000 pills per week in 2017.
- Remijio Morfin-Mendoza is a fugitive. Notwithstanding Morfin-Mendoza’s fugitive status, the United States seized and forfeited $16,893 in U.S. currency from him. On June 5, 2018, he was indicted by a grand jury in the Eastern District of Washington for one count of Conspiracy to Distribute Fentanyl and two counts of Distribution of Fentanyl. The public is reminded that charges contained in an indictment are only accusations and are not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Pursuant to applicable regulations, an 80% share of the funds seized from Zuhlke, Fertig, and Morfin-Mendoza are being shared with the Metro Drug Task Force in recognition of its significant contribution to this investigation. The shared asset forfeiture funds will assist the Metro Drug Task Force in further crime-fighting efforts.
The Department of Justice Asset Forfeiture Program is, first and foremost, a law enforcement program. It removes the tools of crime from criminal organizations, deprives wrongdoers of the proceeds of their crimes, recovers property that may be used to compensate victims, and deters crime. The Department of Justice underscores these law enforcement purposes with all federal, state, local, and tribal law enforcement agencies.
One of the ancillary benefits of asset forfeiture is sharing federal forfeiture proceeds with cooperating state and local law enforcement agencies through equitable sharing as is occurring here. The Department of Justice Equitable Sharing Program enhances cooperation between federal, state, local, and tribal law enforcement by providing valuable additional resources to those law enforcement agencies.
United States Attorney William Hyslop said, “The influx of Fentanyl into Eastern Washington is a huge threat to this area. Prosecuting Opioid/Fentanyl-related cases is a top priority for the United States Attorney’s Office. We are committed to investigating and dismantling Fentanyl trafficking and we are actively engaged in community outreach efforts to educate people about the dangers of this deadly drug. This investigation exemplifies the positive crime fighting results that can be achieved when federal, state, local, and Tribal law enforcement agencies collaborate and work together. Our citizens are safer and our communities are more secure as a result of joint law enforcement efforts like what occurred here. The Metro Drug Task Force’s determined investigative work with the DEA and swift action have been critical to the success of this investigation.”
“Fentanyl is taking lives throughout the country and destroying the communities we live in,” said DEA Special Agent in Charge Frank Tarentino. “In the last year, DEA has seen a 187% increase in fentanyl seizures in Eastern Washington. Fentanyl continues to be an eminent threat to the public and its production and distribution is contributing to an increase in crime and violence. Through the outstanding partnerships with our local, state, and federal partners, our relentless pursuit of these dangerous criminals will not stop.”
The enforcement action resulting in this forfeiture was part of an OCDETF investigation. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of drug-related crimes. This OCDETF investigation was conducted by the Drug Enforcement Administration.
This case was investigated by the Spokane Resident Office of the Drug Enforcement Administration in partnership with the Metro Drug Task Force.
This case was prosecuted by Stephanie Van Marter and Brian M. Donovan, Assistant United States Attorneys for the Eastern District of Washington.
More information regarding the DOJ Equitable Sharing Program can be found here: DOJ Guide to Equitable Sharing.
Three Individuals Indicted for Firearms TraffickingRead the Press Release
SAN JUAN, Puerto Rico – On January 20, 2021, a federal grand jury returned a six-count indictment charging Carlos Osorio-Pérez, Luz Damaris Pérez-Velázquez and Onyx Yerielle Olivera-Rivera in a conspiracy to obtain firearms in Florida and sell them in Puerto Rico, all without a license. Members of the conspiracy would mail firearms from Florida to Puerto Rico and send thousands of dollars from Puerto Rico to Florida.
United States Attorney for the District of Puerto Rico W. Stephen Muldrow made the announcement. The Bureau of Alcohol, Tobacco, Firearms and Explosives is in charge of the investigation of the case.
According to the indictment, the conspiracy has been ongoing since June 2019. In the past three months, Mr. Osorio Pérez purchased over twenty-five AR-15 type pistols in Florida. Three packages sent via Priority Mail on December 14 and 15, 2020 from Florida to Puerto Rico contained eleven firearms. Mr. Osorio-Pérez sent messages such as “Puedo dejarte los palos en 950” (I can give you the long guns for $950). Another message read: “Un duro necesita 3 cosas” “Dinero armamento y gente”; “Y somos algo necesario.” (A tough guy needs three things, money, weapons and people. We are needed).
Assistant U.S. Attorney Carlos R. Cardona and Jonathan L. Gottfried, Chief of the Violent Crimes and National Security Section, are in charge of the prosecution of the case. If convicted, the defendants face up to 10 years in prison for each firearms count.
An indictment contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
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Texan sentenced for attempting to smuggle over 80 people on multiple occasionsRead the Press Release
LAREDO, Texas – A 45-year-old Rio Bravo resident has been ordered to federal prison following his conviction for conspiring to transport aliens within the country for a profit, announced U.S. Attorney Ryan K. Patrick.
Jose Reyes Ipina Jr. pleaded guilty Feb. 3, 2020.
Today, U.S. District Judge Marina Garcia Marmolejo handed Ipina a 57-month term of imprisonment to be immediately followed by three years of supervised release. At the hearing, the court heard additional information including evidence detailing his involvement in prior alien smuggling trips and his role as a recruiter/organizer in the alien smuggling organization.
The investigation revealed that on Nov. 8, 2019, a smuggling operation was taking place at a truck yard of Texas Highway 359 near Ranch Road in Laredo. Authorities spotted Ipina in his truck at a nearby store around the same time of the potential smuggling event. They also noticed a white tractor-trailer combination departing the truck yard and heading north on Interstate Highway 35 until stopping at a Border Patrol (BP) checkpoint for inspection.
There, a K-9 alerted to the presence of contraband. The driver – later identified as Alfredo Gutierrez Jr. – and the tractor-trailer were referred to secondary inspection where law enforcement found 29 illegal aliens hidden in the rear of his trailer.
A search of Gutierrez’s phone revealed he had been in contact with Ipina.
The ensuing investigation later tied Ipina a prior smuggling event in June 2019 at the Interstate Highway 35 BP checkpoint. At the time of that offense, authorities discovered a total of 52 aliens hidden inside the tractor-trailer.
On June 30, Gutierrez, 43, Laredo, was sentenced to 57 months in federal prison for his role in the conspiracy.
Ipina has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of BP. Assistant U.S. Attorney Paul A. Harrison prosecuted the case.
Ten Jersey City Men Charged in Conspiracy to Burglarize More Than 40 PharmaciesRead the Press Release
NEWARK, N.J. – Ten Jersey City men have been charged for their roles in a pharmacy burglary conspiracy that victimized at least 40 pharmacies in northern New Jersey in a three-month span, Acting U.S. Attorney Rachael A. Honig announced today.
Mohummad Simmons, 25, a/k/a “Mo Waps;” Tamir Brown, 27, a/k/a “Stragg;” Rico Phang, 19, a/k/a “Little Mil;” Deon Davis, 24, a/k/a “Dee;” Michael Simeus, 27, a/k/a Jerk;” David Booker, 28; Darrel Hicks, 25; Daquan Hart, 22, a/k/a “Day Day;” Jamiel French, 27, a/k/a “Money Mil;” and Tyriq Rembert, 28, all of Jersey City, New Jersey, are each charged by complaint with one count of conspiracy to commit burglary involving controlled substances. Simmons, Hart, and Rembert appeared by videoconference for their initial appearances before U.S. Magistrate Judge James B. Clark III on Jan. 22, 2021, and Hicks appeared today by videoconference for his initial appearance before U.S. Magistrate Judge Leda D. Wettre. Brown is in custody on related state charges. The remaining defendants are at large.
“The complaint charges that the defendants went on a crime spree throughout northern New Jersey, breaking into pharmacies and stealing dangerous controlled substances, including opioids,” Acting U.S. Attorney Honig said. “I applaud the Drug Enforcement Administration and our local law enforcement partners for responding quickly to identify these suspects so that they can be brought to justice.”
"The success of this investigation was the result of teamwork, the sharing of information between law enforcement agencies, and good, old-fashioned police work," Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division Susan A. Gibson said. “Those arrested thought they could get away with their crime wave of theft, but they will now face justice. The public should know that DEA and our law enforcement partners will always pursue those who choose to violate the law.”
According to documents filed in this case and statements made in court:
From Oct. 11, 2020, through Dec. 22, 2020, the defendants forcibly entered and burglarized, or attempted to burglarize, pharmacies throughout northern New Jersey. They typically wore dark clothing, facemasks, and gloves, and gained entry to the pharmacies by breaking windows or doors with a brick or a rock. They took various types of controlled substances and other prescription drugs for the purpose of redistribution. During these burglaries, several controlled substances were prioritized, including codeine, a Schedule II controlled substance, acetaminophen with codeine, a Schedule III controlled substance, and promethazine with codeine, a Schedule V controlled substance. Pharmacies were victimized in Secaucus, North Bergen, Linden, Guttenberg, Kenilworth, Madison, Short Hills, Iselin, Jersey City, West New York, North Arlington, and Lyndhurst.
For example, on Oct. 11, 2020, at approximately 4:40 a.m., Simmons, Phang and a conspirator forcibly entered a pharmacy in Secaucus and took promethazine with codeine, a Schedule V controlled substance, and were recorded on surveillance video. They fled the scene in a black Chevrolet Malibu registered to Simmons. Prior to the burglary, the Malibu approached the area of the burglary following a silver Pontiac Grand Prix. Immediately after the burglary, the Malibu departed the area following the Pontiac.
In another instance, on Nov. 6, 2020, at approximately 5:45 a.m., Simmons and Phang forcibly entered a pharmacy in Linden with the intent to steal controlled substances. Approximately one hour and fifteen minutes before the burglary, the two men had been the subjects of a motor vehicle stop in Union, New Jersey, while traveling in the Malibu. Surveillance video footage from the pharmacy in Linden showed Simmons and Phang wearing the same clothing that they were wearing during the body camera footage of the motor vehicle stop. The surveillance video also showed Simmons and Phang depart the area of the burglary in the Malibu.
The charge of conspiring to burglarize pharmacies carries a maximum penalty of 10 years in prison.
Acting U.S. Attorney Honig credited the Secaucus Police Department, under the direction of Chief Dennis Miller, with leading the investigation into this multi-jurisdictional burglary ring, along with special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson. She also thanked the Hudson County Prosecutor's Office, the Union County Prosecutor's Office, the Bergen County Prosecutor's Office, the Middlesex County Prosecutor's Office and the Jersey City, North Bergen, Harrison, Hillside, Elizabeth, Guttenberg, Kearny, North Arlington, Bernards Township, Maywood, Lyndhurst, Millburn, Linden, Woodbridge, Madison, West New York, Clifton, Parsippany, Roselle, Hoboken, Edison, Kenilworth, Highland Park, Belleville, Teaneck, and Bayonne police departments.
The case is being prosecuted by Desiree Grace Latzer, Deputy Chief of the Criminal Division, in Newark.
Tax preparer sentenced after admitting to preparing fraudulent federal income tax returnsRead the Press Release
STATESBORO, GA: A tax preparer has been sentenced to probation after she admitted preparing fraudulent federal income tax returns that resulted in illegally excessive refunds for multiple clients.
Shawree A. Hagins, 59, of Millen, Ga., was sentenced to three years’ probation by U.S. District Court Judge R. Stan Baker after pleading guilty to Fraud and False Statements Related to Tax Filings, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Hagins also was ordered to pay $75,000 in restitution.
“Tax preparers have a responsibility to legally and accurately prepare tax returns on behalf of their clients,” said U.S. Attorney Christine. “Shawree Hagins instead scammed all American taxpayers to enrich herself by illegally inflating the amount of tax refunds due to her clients, and will pay the price for that fraud.”
As described in court documents and testimony, Hagins prepared at least 36 tax returns on behalf of 12 clients, fraudulently claiming deductions in excess of the amount to which the taxpayers were entitled. The fraudulent claims resulted in a loss of $75,000 to the Internal Revenue Service (IRS).
“Unscrupulous return preparers truly undermine the American tax system and the trust of taxpayers relying on their expertise” said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey. “Don’t just look at the refund or the amount you owe, always ask questions and review your entire tax return with your return preparer. As we approach tax filing season, those who might consider preparing false tax returns should be aware there will be consequences as evidenced today.”
“Hagins showed a complete disrespect for the law with her flagrant actions and abused her position of trust for her own personal greed,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Let this sentencing be a warning with tax season approaching, that claiming money that doesn't belong to you at the expense of every American taxpayer will not be allowed.”
The case was investigated by IRS Criminal Investigations and the FBI, and prosecuted for the United States by Assistant U.S. Attorney Tara M. Lyons.
Superseding Indictment Charges Six Men with Conspiracy, Firearms Violations, Violent CarjackingsRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal superseding indictment against JOSHOAMEI DEANGELO RICHARDSON, 19, JAMES BROCK WILLIAMS, JR., 20, ISAIAH STACY ALSTAD, 22, CLIFTON GERMAINE WALKER, JR., 23, JORDAN SYDNEY SHAMAH RHODES, 22, and ERIC TROY BALLARD, JR., 18, for conspiracy, firearms violations, and carjacking. All six defendants have been ordered to remain in custody pending further proceedings.
United States Attorney Erica H. MacDonald stated, “This past summer the Twin Cities saw a disturbing trend of shootings and carjackings. This criminal activity will not be tolerated in our communities. Federal law enforcement, in concert with our state and local partners, is committed to holding accountable the perpetrators of this violence.”
According to the allegations in the superseding indictment and documents filed with the court, from at least May 2020 through January 2021, the defendants maintained active membership in the street gang known as the “Top 5.” The purpose of the gang was to make money for its members through criminal acts, including thefts, robberies, and distribution and sale of controlled substances. Proceeds of the money obtained through the commission of criminal acts were distributed among the Top 5 members. Top 5 members would use, carry, and possess firearms to commit these criminal acts as well as carry out acts of violence against rival gang members, including shootings and assaults. Top 5 members used social media to discuss criminal activity, recruit new members, and display cash, firearms, and controlled substances.
According to the allegations in the superseding indictment and documents filed with the court, on August 25, 2020, at approximately 2:30 a.m., WILLIAMS and BALLARD, carjacked a 2006 black BMW 530i, near the 1200 block of Jackson Street, in St. Paul, Minnesota, at gunpoint and physically assaulted the driver of the vehicle. That same day, at approximately 6:50 a.m., RICHARDSON, WILLIAMS, ALSTAD, WALKER, and BALLARD, carjacked a 2012 Dodge Charger, at gunpoint, from the parking lot of a restaurant near White Bear Avenue in St. Paul. That same day, at approximately 9:00 a.m., RICHARDSON, WILLIAMS, ALSTAD, and BALLARD carjacked a 2012 blue Subaru Outback, at gunpoint, from Maria Avenue near Metropolitan State University in St. Paul. During the time period alleged in the superseding indictment and documents filed with the court, the defendants illegally possessed 10 semiautomatic pistols and committed other violent acts and crimes.
These cases are the result of investigations conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Saint Paul Police Department, the Minneapolis Police Department, the Columbia Heights Police Department, and the South Saint Paul Police Department.
This case is being prosecuted by Assistant U.S. Attorneys Benjamin Bejar and Thomas Calhoun-Lopez.
The charges and allegations contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant Information:
JOSHOAMEI DEANGELO RICHARDSON, a/k/a Yoshi, a/k/a Yodaa Ballard, 19
St. Paul, Minn.
Charges:
- Conspiracy to use, carry, and brandish firearms during and in relation to a crime of violence, 1 count
- Felon in possession of a firearm, 1 count
- Aiding and abetting carjacking, 2 counts
- Aiding and abetting using, carrying, and brandishing a firearm during and in relation to a crime of violence, 2 counts
JAMES BROCK WILLIAMS, JR., a/k/a Jackboy, a/k/a J, 20
St. Paul, Minn.
Charges:
- Conspiracy to use, carry, and brandish firearms during and in relation to a crime of violence, 1 count
- Aiding and abetting carjacking, 3 counts
- Aiding and abetting using, carrying, and brandishing a firearm during and in relation to a crime of violence, 3 counts
ISAIAH STACY ALSTAD, a/k/a Zay, a/k/a Lil Zay, a/k/a Zay Money, 22
Columbia Heights, Minn.
Charges:
- Conspiracy to use, carry, and brandish firearms during and in relation to a crime of violence, 1 count
- Felon in possession of a firearm, 2 counts
- Aiding and abetting carjacking, 2 counts
- Aiding and abetting using, carrying, and brandishing a firearm during and in relation to a crime of violence, 2 counts
CLIFTON GERMAINE WALKER, JR., a/k/a K-Killa, a/k/a Clif, 23
St. Paul, Minn.
Charges:
- Conspiracy to use, carry, and brandish firearms during and in relation to a crime of violence, 1 count
- Aiding and abetting carjacking, 1 count
- Aiding and abetting using, carrying, and brandishing a firearm during and in relation to a crime of violence, 1 count
- Felon in possession of a firearm, 1 count
JORDAN SYDNEY SHAMAH RHODES, a/k/a 2 3, 22
White Bear Lake, Minn.
Charges:
- Conspiracy to use, carry, and brandish firearms during and in relation to a crime of violence, 1 count
- Unlawful Controlled-Substance User in Possession of Firearms, 3 counts
ERIC TROY BALLARD, JR., a/k/a Donk, a/k/a Lil Donk, a/k/a Tray Williams, 18
St. Paul, Minn.
Charges:
- Conspiracy to use, carry, and brandish firearms during and in relation to a crime of violence, 1 count
- Aiding and abetting carjacking, 3 counts
- Aiding and abetting using, carrying, and brandishing a firearm during and in relation to a crime of violence, 3 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Stratford Man Sentenced to More Than 5 Years in Federal Prison for Drug and Firearm OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LUIS MARTINEZ, also known as “Macho,” 55, of Stratford, was sentenced today by U.S. District Judge Alvin W. Thompson to 63 months of imprisonment, followed by three years of supervised release, for narcotics distribution and ammunition possession offenses.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, in the summer of 2017, members of the FBI’s Bridgeport Safe Streets Task Force and Bridgeport Police Department began investigating individuals who were distributing narcotics in and around Bridgeport. The investigation, which included the use of court-authorized wiretaps and controlled purchases of narcotics, resulted in federal charges against 19 defendants and the seizure of narcotics, items used to process and package drugs for street sale, eight firearms, and more than $360,000 in cash. The investigation revealed that Martinez was supplying another narcotics distributor with cocaine and opioid pills.
A subsequent investigation of an unrelated drug distributor revealed that Martinez was also acquiring and distributing heroin.
Martinez was arrested on November 6, 2018. On that date, investigators searched Martinez’s residence and seized boxes of .45 caliber hollow-point ammunition and $11,132 in cash.
Martinez has been detained since his arrest. On October 25, 2019, he pleaded guilty to one count of conspiracy to possess with intent to distribute controlled substances, one count of conspiracy to possess with intent to distribute heroin, and one count of possession of ammunition by a convicted felon.
Martinez’s criminal history includes state convictions for manslaughter, assault, weapons and larceny offenses, and a federal conviction stemming from his role in a crack cocaine distribution ring.
Judge Thompson ordered Martinez to forfeit the cash and ammunition seized on the date of his arrest. Martinez previously forfeited more than $56,000 in cash that he had shipped to a drug supplier in California, but was seized by law enforcement at a parcel delivery hub.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department, as well as the DEA, Connecticut State Police, and the Stratford, Norwalk, Seymour and Trumbull Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Karen L. Peck and Patrick J. Doherty through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Stacey Pomrenke, Kurt Pomrenke Sentenced to Prison Time for Conspiring to Defraud the United StatesRead the Press Release
ABINGDON, Va.- Stacey Pomrenke and her husband Kurt Pomrenke were sentenced today in U.S. District Court in Abingdon for conspiring to defraud the United States while Stacey Pomrenke was on pre-trial release. Acting United States Attorney Daniel P. Bubar, David W. Archey, Special Agent in Charge of the FBI’s Richmond Division, and Kelly R. Jackson, Special Agent in Charge of Internal Revenue Service-Criminal Investigations, made the announcement today.
Stacey Pomrenke, 48, of Abingdon, Virginia, was sentenced today to 30 months in federal prison and ordered to pay a fine of $10,000. In November 2020 she waived her right to be indicted and pleaded guilty to a one-count Information charging her with conspiring to defraud the United States while on pre-trial release.
Kurt Pomrenke, 67, also of Abingdon, was sentenced today to 12 months and one-day in federal prison and ordered to pay a fine of $5,000. In November he pleaded guilty to a one-count Information charging him with conspiring to defraud the United States.
“Today’s sentence concludes a troubling case, in which convicted fraudsters remained undeterred in their criminal conduct—even after significant federal convictions,” Acting U.S. Attorney Bubar stated. “Instead of simply accepting and serving her original prison sentence, Stacey Pomrenke, with the assistance of her husband, carried out an additional fraud scheme to exploit a drug treatment program to shorten her sentence. We hope today’s sentences will serve as a deterrence to others, and greatly appreciate the hard work of the FBI and IRS-CI to again bring the Pomrenkes to justice.”
“Fraud against a federal program is fraud against every American taxpayer. Mr. and Mrs. Pomrenke were convicted of conspiring to defraud a federal program designed to aide those with serious needs while incarcerated,” Special Agent in Charge Archey said today. “Their sentence should serve as a reminder that the FBI will aggressively investigate those cases and refer them to the United States Attorney's Office for prosecution.”
“Even after Stacey Pomrenke was found guilty following a 9-day trial on 14 corruption counts and Kurt Pomrenke was found guilty of one count of contempt of court relating to his wife’s federal trial, the couple continued to show blatant disregard for the law by using deception to gain Stacey Pomrenke’s early release from prison,” said Special Agent in Charge Jackson, of IRC-CI Washington DC Field Office. “The selfish action of fraudulently entering programs designed to assist those dealing with addiction merits legal recourse.”
According to court documents, on October 27, 2015, Stacey Pomrenke was arrested based upon the return of an indictment alleging multiple violations of federal law resulting from the federal investigation of Bristol Virginia Utilities Authority. When interviewed by a probation officer for the United States District Court for the Western District of Virginia, Stacey Pomrenke denied any history of substance abuse. Following her conviction for multiple federal offenses, Stacey Pomrenke was again interviewed by probation officers for the United States District Court. During this interview, Stacey Pomrenke again denied any history of substance abuse and stated she was a “social drinker.” Stacey Pomrenke remained on release until September 26, 2016.
On August 11, 2016, Stacey Pomrenke was sentenced to 34 months in federal prison and ordered to self-report to the Bureau of Prisons facility at Alderson, West Virginia. The Bureau of Prisons operates an intensive drug and alcohol abuse treatment program known as the Residential Drug Abuse Program (RDAP). In order to gain entry to RDAP, a federal inmate must meet certain criteria, including having a diagnosable and verifiable drug or alcohol abuse disorder. By successfully completing RDAP, an inmate can qualify for early release from custody.
Beginning on or about August 19, 2016, Stacey and Kurt Pomrenke were solicited by and began corresponding with Tony Pham a.k.a. Anh Nguyen, the operator of RDAP Law Consultants LLC, a business that solicited prospective and current federal inmates through telephone calls and emails offering assistance in applying for, and qualifying for, RDAP. For a fee, RDAP Law Consultants coached and advised prospective and current inmates on how to gain admission to RDAP by lying to the Bureau of Prisons about the existence, duration, and extent of a qualifying substance abuse disorder.
On August 22, 2016, Stacey Pomrenke entered into a consulting agreement with RDAP Law Consultants, agreeing to pay $7,500. The agreement was revised by Kurt Pomrenke and signed by Stacey Pomrenke and Anh Nguyen. Shortly after entering into the agreement, Nguyen began coaching Stacey and Kurt Pomrenke regarding the steps they would need to take to defraud the Bureau of Prisons to secure Stacey Pomrenke’s admission to RDAP.
In one of the first discussions with Nguyen, Stacey and Kurt Pomrenke made it clear that Stacey Pomrenke only drank a glass or two of wine a week and did not have an alcohol abuse problem or addiction.
Based on the advice of Nguyen, on August 31, 2016, Stacey Pomrenke made an appointment with her physician and falsely stated that over the last three years she had been drinking more and going from one glass of wine up to three glasses of wine at night. As a result of the false statements, Stacey Pomrenke’s physician prescribed her Ativan to prevent physical complications from alcohol withdrawal when she reported to prison.
On September 18, 2016, Nguyen sent an email to Stacey Pomrenke with the subject line “Show Withdrawal Symptoms.” In the email, Nguyen detailed a series of withdrawal symptoms Stacey Pomrenke should show within the first 24 hours of reporting to prison.
Between August 31, 2016 and September 25, 2016, Nguyen continued to work with Stacey Pomrenke and Kurt Pomrenke through telephone calls and emails to develop a false, but plausible story of alcohol abuse and the need for treatment.
On September 26, 2016, Stacey and Kurt Pomrenke traveled to the Bureau of Prisons facility at Alderson, West Virginia. When Stacey Pomrenke reported to the facility, she was intoxicated and under the influence of alcohol. During her initial health screen, Stacey Pomrenke told officials she “had been drinking at least a bottle of wine daily since 2008.” At the time she made the statement, Stacey Pomrenke knew that statement to be false.
As a result of her false statements and fraudulent claims of alcohol abuse and addiction, Stacey Pomrenke was admitted to RDAP on November 2, 2016 and began the program on December 2, 2016. As a result of Stacey Pomrenke successfully being admitted to the RDAP program, Kurt Pomrenke agreed to discuss Nguyen’s assistance with other “high profile potential clients” of RDAP Law Consultants, LLC.
Stacey Pomrenke completed RDAP on or about September 22, 2017. Because she completed RDAP, Stacey Pomrenke’s term of imprisonment was reduced by seven months and one day.
The investigation of the case was conducted by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigations. Assistant United States Attorneys Zachary T. Lee and Lena L. Busscher are prosecuting the case for the United States.
South Carolina Man Sentenced to 40 Years for Production and Receipt of Child PornographyRead the Press Release
PIKEVILLE, Ky. - A South Carolina man, Jonathan Edward Manigault, 36, was sentenced on Monday to 480 months in federal prison, by U.S. District Judge Karen Caldwell, for one count of production of child pornography and one count of knowingly receiving child pornography.
Manigault admitted that he directed Christina B. Mitchell, of Pike County, to take photographs of a 3-year-old victim engaging in sexually explicit conduct. Manigault provided Mitchell with specific, detailed instructions on what types of explicit photographs to produce and provide him. According to the plea agreement, Mitchell transmitted the photographs to Manigault using the Facebook Messenger application. Thereafter, Manigault had Mitchell agree to produce additional images of an additional underage victim.
Manigault pleaded guilty in September 2020.
Mitchell pleaded guilty, on August 26, 2019, to two counts of producing child pornography. According to her plea agreement, Mitchell produced sexually explicit images of a 3-year-old and an 8-year-old victim. Mitchell was sentenced to 420 months in federal prison, in February 2020.
Under federal law, Manigault and Mitchell must serve 85 percent of their prison sentences. Manigault will be under the supervision of the U.S. Probation Office for 15 years, following his release.
“One of the greatest responsibilities of law enforcement is to protect young children from sexual exploitation, abuse, and the damage it causes,” said Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky. “As this case shows, there are some who prey on astonishingly vulnerable victims. So, we will continue to do our part to ensure that these offenders are identified, prosecuted, and punished. The despicable conduct in this case justifies our efforts, and certainly warrants the punishments the Court has imposed.”
“There is no place in our society for criminals who prey upon our most precious and vulnerable children,” said James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office. “The sentences administered today are a direct reflection of a criminal justice system that will not stand for such contemptible behavior. The FBI and all of our law enforcement partners stand ready to use all of our available resources to protect our youngest citizens.”
Acting United States Attorney Shier; SAC Brown, FBI, Louisville Field Office; and Chief Chris Edmonds, Pikeville Police Department, jointly announced the sentences.
The investigation was conducted by the FBI Louisville Field Office, FBI Columbia Field Office, and the Pikeville Police Department. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Jenna E. Reed.
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 U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Serial Armed Robber Sentenced to 20 Years in Federal PrisonRead the Press Release
A man who robbed a series of money remitter businesses in Tulsa and Glenpool was sentenced today in federal court, announced U.S. Attorney Trent Shores.
U.S. District Judge John F. Heil III sentenced Justus Edward Murphy, 23, of Tulsa, to 20 years in federal prison followed by three years of supervised release. Murphy was further ordered to pay restitution representing the businesses’ losses, totaling $9,680.40.
“Justus Murphy was a brazen serial robber. He put innocent lives in danger when he used a gun to threaten employees in five of his six robberies,” said U.S. Attorney Trent Shores. “This prosecution was successful because of the coordinated efforts of three law enforcement entities: the Tulsa Police Department, Glenpool Police Department, and the FBI. Then, Assistant U.S. Attorney Eric Johnston adeptly represented the interests of the United States in securing this conviction. I applaud the 20-year sentence handed down by Judge Heil today in federal court. Justice has been served.”
Murphy previously pleaded guilty to six counts of robbery and two counts of carrying, using, and brandishing a firearm during and in relation to a crime of violence. Murphy robbed six money remitter businesses including Check ‘n Go, Approved Cash, Advance America, and Check Into Cash. Murphy entered the businesses, asking employees about obtaining loans. In most of the robberies, he handed employees threatening notes, claiming he would harm them if they did not hand over cash from the businesses’ money drawers. In five of the six robberies he threatened employees with a pistol. Examples of the messages were “120 Seconds $5,000 OR I will Shoot U! IF U DO ANYTHING NOT NORMAL YOU’RE DEAD.” and “IF I HEAR SIRENS, YOU AND ME DEAD! YOU HAVE 220 SECONDS TO GET $5,000.”
The Tulsa Police Department, Glenpool Police Department and FBI conducted the investigation. Assistant U.S. Attorney Eric O. Johnston prosecuted the case, which came to the U.S. Attorney's Office as a result of the Supreme Court’s McGirt decision.
Schenectady Man Charged with Unlawful Possession of a FirearmRead the Press Release
ALBANY, NEW YORK -Elijah Torres, age 30, of Schenectady, New York, was charged earlier this month with unlawfully possessing a loaded 9mm pistol as a felon.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
The criminal complaint alleges that Torres, a felon, possessed a loaded 9mm pistol on March 18, 2020 in Schenectady. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Torres appeared last Friday before United States Magistrate Judge Daniel J. Stewart, and was ordered detained pending further proceedings.
Torres faces up to 10 years in prison, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the ATF and Schenectady Police Department, and is being prosecuted by Assistant U.S. Attorney Ashlyn Miranda.
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Santa Clarita Man Pleads Guilty to Fraudulently Obtaining over $1 Million in COVID-19 Relief PPP Loans for His Sham CompaniesRead the Press Release
LOS ANGELES – A Santa Clarita Valley man pleaded guilty today to a federal criminal charge that he fraudulently obtained more than $1 million in Paycheck Protection Program (PPP) loans for his sham companies by submitting fake tax documents and fraudulent employee information.
Raymond Magana, 40, of Santa Clarita, pleaded guilty to one count of fraud in connection with major disaster or emergency benefits.
According to his plea agreement, in May and June 2020, Magana submitted to banks applications for PPP loans that contained false statements about the number of employees and the amount of payroll expenses. Specifically, on June 3, 2020, Magana submitted a PPP loan application to Customer’s Bank for $940,416 for The Building Circle LLC, a company registered in his name. In that application, Magana falsely listed that the company’s average monthly payroll was $376,167, and it employed 40 workers. Magana admitted to submitting fraudulent tax documents that reported $4,402,000 in annual wages paid to 40 employees in 2019 and $852,000 paid in employee wages during the first quarter of 2020.
Both IRS and California Employment Development Department records showed that the company never reported paying any employees, and the underwriting packet also did not include a list of employees or associates for the company, according to an affidavit filed with a criminal complaint in this case.
Investigators later determined that the Pico Rivera address given as The Building Circle’s headquarters was a 980-square-foot, single-family home that appeared to be a residence, not a business. Ultimately, the loan application was approved and $940,416 was funded to Magana’s shell company on June 4, 2020, the affidavit states.
Magana also admitted that he applied for and received a PPP loan of $360,415 for Forward Builders LLC, another shell company, using fake tax documents and false employee information, and falsely claiming $1.73 million in employee wages.
When a bank manager contacted Magana after one of the business accounts receiving PPP funds had been frozen because of suspicious activity, he told the bank “We have all the documents, we got approved,” and he refused to agree to return the improperly obtained PPP funds, the affidavit states. The bank nonetheless kept the $940,416 in defendant’s bank account frozen and defendant could not access it, the plea agreement states.
The actual loss from the two loans that were approved and disbursed was $360,415, according to the plea agreement.
United States District Judge Stanley Blumenfeld Jr. has scheduled a May 11 sentencing hearing, at which time Magana will face a statutory maximum sentence of 30 years in federal prison.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized more than $300 billion in additional PPP funding. In December 2020, Congress authorized $250 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set period and use at least a certain percentage of the loan towards payroll expenses.
In December 2020, Steven R. Goldstein, 36, of Northridge, Magana’s business partner, pleaded guilty to a single-count information charging him with fraud in connection with major disaster or emergency benefits. Goldstein admitted that he fraudulently obtained $655,000 in PPP loans for his companies by submitting false tax documents and fake employee information. Goldstein’s sentencing hearing is scheduled for March 30.
IRS Criminal Investigation and the Small Business Administration Office of Inspector General investigated this case.
Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office is prosecuting this case.
San Francisco Resident Ordered to Return Stolen Cryptocurrency and Cash to Victims of Multi-Million Dollar Cryptocurrency FraudRead the Press Release
SAN JOSE – Jerry Ji Guo was sentenced today for his role is a scheme to defraud his clients of cash and cryptocurrency in connection with an initial coin offering, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair. Guo was ordered to pay $4,392,636.14 in restitution, and was sentenced to a term of six months in prison. The sentence was handed down by the Honorable Beth Labson Freeman, U.S. District Judge.Guo, 33, of San Francisco, pleaded guilty to the charge on August 26, 2019. In pleading guilty, Guo admitted he represented himself as an initial coin offering consultant and promised his clients he would perform marketing and publicity services. Rather than perform these services, Guo embezzled the clients’ cash and cryptocurrency.
“Some criminals believe mistakenly that cryptocurrency is beyond the reach of law enforcement,” said U.S. Attorney Anderson. “This case shows we can use criminal forfeiture to compensate fraud victims even when cryptocurrency is used in the fraud.”
“The FBI is tasked with pursuing crimes and the various means and methods that criminals use to commit those crimes,” said FBI San Francisco Special Agent in Charge Craig D. Fair. “In the financial sector, cryptocurrency has emerged as a significant threat as it affords criminals with a space to conduct activity that is particularly difficult to trace and detect,” he said. “In this case, the FBI relied upon partners in the private sector to respond appropriately to legal process so the FBI could make efforts to locate and seize stolen cryptocurrency.”
A federal grand jury indicted Guo on November 15, 2018, charging him with eight counts of wire fraud, in violation of 18 U.S.C. § 1343. Guo pleaded guilty to one count and the remaining counts were dismissed.
In addition to pleading guilty, Guo agreed to cooperate with the government in the identification and return of property through the forfeiture process. On November 14, 2019, the government obtained a stipulated application for a preliminary order of forfeiture. Further, the government obtained warrants to seize the stolen cash and cryptocurrency, and on February 26, 2020, obtained a final order of forfeiture against the stolen property. Accordingly, the government now is in a position to return the stolen property to the victims.
According to papers filed by the government, the current value of the cash and cryptocurrency is now estimated to be more than $20 million. The Money Laundering and Asset Recovery Section, a component of the Department of Justice’s Criminal Division in Washington, D.C., will use the victim restoration process to return stolen property to victims.
In addition to the prison term and restitution, Judge Freeman also sentenced the defendant to a three-year period of supervised release.
Assistant United States Attorneys Daniel Kaleba and Chris Kaltsas prosecuted the case with the assistance of Elise Etter. The prosecution is the result of an investigation by the FBI.
Rochester Woman Pleads Guilty to Production of Child Pornography Involving 8 and 5-Year-Old ChildrenRead 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 Rebecca Wilson, 31, of Rochester, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to two counts of production of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, and a $250,000 fine.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that between June and August 2018, the defendant engaged in an ongoing pattern of sexual abuse, subjecting an eight-year-old to multiple instances of sexual acts, while producing multiple videos and images of those sexual acts. Between January and April 2020, Wilson engaged in another ongoing pattern of sexual abuse, subjecting a five-year-old to multiple instances of sexual acts, during which the defendant once again produced video and images.
Wilson made these videos and images at the request of James Oliver Young and transferred them to him via Facebook messenger. Charges remain pending against Young. 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.
The plea is the result of an investigation by the New York State Police, under the direction of Major Barry Chase, and Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
Sentencing is scheduled for June 14, 2021, at 3:00 p.m. before Chief Judge Geraci.
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