Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
12 March 2021
Toledo man charged with using ‘Black Lives Matter of Greater Atlanta’ Facebook page to defraud donorsRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced today that a federal grand jury sitting in Cleveland returned a four-count indictment charging Sir Maejor Page, a.k.a. Tyree Conyers-Page, age 32, of Toledo, Ohio, with three counts of money laundering and one count of wire fraud. It is alleged that the defendant created a 501(c)(3) Facebook page entitled “Black Lives Matter of Greater Atlanta” and later used it to defraud donors out of more than $450,000 after BLMGA’s tax-exempt status as a charity with the IRS was revoked.
“These allegations involve fraudulent misrepresentations that the donations received would support Black Lives Matter (Atlanta, Georgia) when, as stated in the indictment, those funds were actually used by the defendant for personal expenses he incurred in Toledo and elsewhere,” said Acting U.S. Attorney Bridget M. Brennan. “It is our sincere hope that these charges help raise awareness about online scams and efforts by some to exploit the name and purpose of non-profit organizations for personal gain.”
"Page is accused of using unprecedented tensions and uncertainty due to widespread civil unrest and a global pandemic to fill his own bank account," said FBI Special Agent in Charge Eric B. Smith. "Page allegedly purchased homes, traveled, and spent other people's money to buy luxury items for himself, all on the backs of hardworking people believing they were donating to a worthy cause. The FBI will continue efforts to root out fraudsters who victimize our fellow citizens for personal gain."
The indictment states that from in or around May 2020 to on or about September 25, 2020, the defendant allegedly devised a scheme to defraud donors by falsely representing that donations to his 501(c)(3), Black Lives Matter of Greater Atlanta, would be used to combat racial and social injustices when in truth, the organization was no longer an established charity and the defendant was using the donations for his personal benefit.
According to the indictment, on or about February 18, 2016, the defendant created the Facebook page entitled Black Lives Matter of Greater Atlanta (“BLMGA”). In March of 2016, the defendant registered BLACK LIVES MATTER OF GREATER ATLANTA INC.” as a 501(c)(3) domestic non-profit corporation with the Georgia Secretary of State Corporation’s Division and assumed the role of President and CEO. Based on the information that the defendant provided, Facebook recognized BLMGA as a valid non-profit organization and allowed users to make donations directly to BLMGA through Facebook.
On or about May 15, 2019, BLMGA’s tax-exempt status as a charity with the IRS was revoked due to failure to submit IRS Form 990 for three consecutive years. On or about August 26, 2019, the Georgia Secretary of State Corporations Division administratively dissolved BLMGA’s non-profit corporation for failure to file necessary paperwork.
It is alleged that the defendant failed to notify Facebook of these revocations or ask that Facebook stop displaying BLMGA as a non-profit organization. As a result, BMLGA’s Facebook page continued to be displayed as a non-profit organization with a donation button through the end of September 2020, and Facebook continued to collect and disperse the purported charity donations on a bi-monthly basis.
To create the false pretense and representation that BLMGA was a legitimate social justice organization, the defendant routinely made posts on BLMGA’s public Facebook page about social and racial issues, including those occurring in Georgia. In addition to falsely representing BLMGA as a legitimate non-profit organization, the defendant is accused of using the BLMGA Facebook handle to privately communicate with other Facebook users and falsely represented that the donations would be used to “fight for George Floyd” and the “movement.” As a result, over one hundred people donated to BLMGA through its Facebook page
It is alleged that the defendant used a substantial portion of the funds donated to BLMGA to buy personal items, including entertainment, hotel rooms, clothing and firearms. The defendant is accused of using the largest sum of funds to purchase a property and the adjoining vacant lot on Glenwood Avenue and Maplewood Avenue in Toledo, Ohio. This property was to be used as a personal residence for the defendant, the indictment states. The defendant allegedly attempted to conceal the purchase of the property by titling it to “Hi Frequency Ohio” and requesting that the seller’s realtor enter into a nondisclosure agreement. This prevented the seller from disclosing that the defendant was the true buyer and that he used BLMGA funds to make the purchase.
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 Cleveland Division of the FBI – Toledo Resident Agency and the Toledo Police Department. This case is being prosecuted by Assistant United States Attorney Michael Freeman.
Tennessee Woman Sentenced to Nine Years in Federal Prison for Sex Trafficking of a MinorRead the Press Release
Jackson, Miss. – Tyra Latrice Clark, 22, of Clarksville, Tennessee, was sentenced yesterday by U.S. District Judge Kristi H. Johnson to serve a total of 108 months in federal prison, followed by five years of supervised release, for sex trafficking of a minor, announced Acting U.S. Attorney Darren J. LaMarca and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
Beginning on January 1, 2018, and continuing through January 5, 2018, Clark and co-defendant Courtney Tremel Louie were actively involved with the sex trafficking of a minor they had transported from Tennessee to Jackson. The minor was forced to perform commercial sex acts with men for money at various hotels. Clark and Louie placed ads on Internet websites for the commercial sex. The Jackson Police Department rescued the minor on January 5, 2018, from a locked apartment on Bailey Avenue in Jackson.
The defendants were indicted on March 7, 2018 and both pled guilty before Judge Jordan on August 17, 2018. Louie was sentenced on June 21, 2019, to serve a total of 141 months for his involvement.
The Federal Bureau of Investigation, the Jackson Police Department and the Mississippi Attorney General’s Office jointly investigated the case. Assistant United States Attorney Glenda R. Haynes prosecuted the case.
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.
Superseding federal indictment implicates Augusta woman in child exploitation investigationRead the Press Release
AUGUSTA, GA: An Augusta woman has been charged with sex trafficking in a newly unsealed federal indictment that files additional charges against the man to whom she was married at the time of the alleged offenses.
The superseding federal indictment unsealed this week charges Amanda Gunn, 34, of Augusta, with Sex Trafficking Conspiracy and Obstruction of a Child Sex Trafficking Investigation, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The conspiracy charge carries a penalty upon conviction of a minimum of 15 years in prison, up to life in prison, and there is no parole in the federal system.
U.S. Magistrate Court Judge Brian K. Epps ordered Gunn to remain in jail pending further proceedings after a lengthy detention hearing Thursday.
“This investigation is an exemplary demonstration of the relentless pursuit of our law enforcement partners in their work to protect vulnerable children,” said Acting U.S. Attorney Estes. “The FBI continues to find disturbing new information as the threads of this complex case unwind.”
Gunn’s then-husband, Michael Gunn, 36, of Evans, initially was indicted by a U.S. District Court Grand Jury one year ago, in March 2020, on four counts of Production of Child Pornography and one count of Possession of Child Pornography. The superseding indictment additionally charges Michael Gunn with Sex Trafficking Conspiracy; Sex Trafficking of a Child; Coercion and Enticement of a Child to Engage in Sexual Activity; and Obstruction of a Child Sex Trafficking Investigation. He remains in custody pending further court proceedings.
According to court documents and testimony, an FBI investigation in another state led agents to Michael Gunn as a source of child pornography, resulting in the discovery of child pornography on electronic devices in his home.
In a related case, Jonathan Eugene Grantham, 45, of Graniteville, S.C., is named in a four-count federal indictment charging him with Sex Trafficking of a Minor; Coercion and Enticement of a Minor to Engage in Sexual Activity; Travel with Intent to Engage in Illicit Sexual Conduct; and Transportation with Intent to Engage in Criminal Sexual Activity. FBI agents initiated the investigation of Grantham with information derived from the Gunn investigation.
“As our investigation of this case unfolded it became more and more disturbing as charges are now filed against both a husband and wife,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We must protect our children by identifying and apprehending accused predators who take advantage of their innocence to commit such atrocious acts.”
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case is being investigated under the Department of Justice Project Safe Childhood by the FBI and prosecuted for the United States by Assistant U.S. Attorneys Tania M. Groover and Project Safe Childhood Coordinator Tara M. Lyons.
Strongsville man accused of filing false tax returnsRead the Press Release
A federal grand jury sitting in Cleveland has handed down an indictment charging Richard Gould, 65, of Strongsville, with two counts of making and subscribing false tax returns.
“Knowingly underreporting taxable income, or otherwise submitting a false tax return, is a criminal tax violation,” said Acting U.S. Attorney Bridget M. Brennan. “As people prepare or review their tax returns this year, let this be a reminder that intentional violations of tax laws will be investigated by the IRS and prosecuted by our Office.”
“With filing season in full swing, it is important to file accurate and timely tax returns,” said Bryant Jackson, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Investigating those who willfully and intentionally file false tax returns is a top priority for IRS CI.”
According to the indictment, for the calendar years of 2014 and 2015, the defendant is accused of filing a joint United States Individual Income Tax Return (Form 1040) with his spouse and knowingly underreporting total income for both years. Specifically, the defendant is accused of stating that his occupation was “unemployed” when he knew, in fact, that he was gainfully employed.
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 a 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 Internal Revenue Service – Criminal Investigations. This case is being prosecuted by Assistant U.S. Attorney Brian McDonough.
Statement of Acting U.S. Attorney Gorman on Anti-Asian hate crimes and bias actsRead the Press Release
Seattle –Acting U.S. Attorney Tessa M. Gorman and FBI Special Agent in Charge Donald M. Voiret today highlighted the federal role in countering hate crimes and bias acts—especially those targeting Asian Americans and Pacific Islanders.
“Currently federal prosecutors and the FBI are reviewing two cases involving assaults on our Asian-American neighbors that have been charged by the King County Prosecuting Attorney’s Office,” said Acting U.S. Attorney Tessa Gorman. “These crimes, and other acts of hate and bias, have no place in our community. I urge members of our community to report hate-based crimes to either local or federal law enforcement and to contact our office’s civil rights line with information about discrimination in areas like housing, employment, education, or public accommodations.”
The FBI and U.S. Attorney’s Office review information about potential hate crimes from members in the community and also provide assistance to local, state, and tribal law enforcement with investigations of hate crimes. Office personnel have been reaching out to community groups to explain the federal role and encourage reports to local and/or federal law enforcement.
“The FBI is tasked with enforcing criminal civil rights in the U.S. and may initiate hate crime investigations when credible allegations exist of a federal statue violation,” said Donald M. Voiret, FBI Special Agent in Charge of the Seattle Field Office. “Especially during the COVID-19 pandemic, we want to emphasize that a criminal act against Asians, because of their ethnicity or national origin, is a hate crime. The FBI will use all authority under federal law to investigate and bring the offenders to justice.”
The most recent statistics on hate crimes are available here 2019 Hate Crime Statistics from the FBI’s Uniform Crime Report.
Additional resources regarding hate crimes and bias incidents are here:
https://civilrights.justice.gov/#your-rights
https://www.fbi.gov/investigate/civil-rights/hate-crimes#FBI-Resources
For information about contacting the U.S. Attorney’s Office in the Western
District of Washington visit: www.justice.gov/usao-wdwa/civil-rightsThe FBI’s Washington office can be reached at 206-622-0460, or submit a tip online at: https://tips.fbi.gov/.
Sky Global Executive and Associate Indicted for Providing Encrypted Communication Devices to Help International Drug Traffickers Avoid Law EnforcementRead the Press Release
Assistant U.S. Attorneys Meghan E. Heesch (619) 546-9442 and Joshua C. Mellor (619) 546-9733
NEWS RELEASE SUMMARY – March 12, 2021
SAN DIEGO – A federal grand jury today returned an indictment against the Chief Executive Officer and an associate of the Canada-based firm Sky Global on charges that they knowingly and intentionally participated in a criminal enterprise that facilitated the transnational importation and distribution of narcotics through the sale and service of encrypted communications devices.
Jean-Francois Eap, Sky Global’s Chief Executive Officer, and Thomas Herdman, a former high-level distributor of Sky Global devices, are charged with a conspiracy to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO). Warrants were issued for their arrests today.
According to the indictment, Sky Global’s devices are specifically designed to prevent law enforcement from actively monitoring the communications between members of transnational criminal organizations involved in drug trafficking and money laundering. As part of its services, Sky Global guarantees that messages stored on its devices can and will be remotely deleted by the company if the device is seized by law enforcement or otherwise compromised.
The indictment alleges that Sky Global installs sophisticated encryption software in iPhone, Google Pixel, Blackberry, and Nokia handsets. Sky Global device users communicate with each other in a closed network, and Sky Global routes these communications through encrypted servers located in Canada and France.
There are at least 70,000 Sky Global devices in use worldwide, including in the United States. The indictment alleges that for more than a decade, Sky Global has generated hundreds of millions of dollars in profit by facilitating the criminal activity of transnational criminal organizations and protecting these organizations from law enforcement.
According to the indictment, Sky Global’s purpose was to create, maintain, and control a method of secure communication to facilitate the importation, exportation, and distribution of heroin, cocaine and methamphetamine into Australia, Asia, Europe, and North America, including the United States and Canada; to launder the proceeds of such drug trafficking conduct; and to obstruct investigations of drug trafficking and money laundering organizations by creating, maintaining, and controlling a system whereby Sky Global would remotely delete evidence of such activities.
The indictment alleges that Sky Global employees used digital currencies, including Bitcoin, to facilitate illegal transactions on the firm’s website, to protect its customers’ anonymity, and to facilitate the laundering of the customers’ ill-gotten gains. According to the indictment, Sky Global employees also set up and maintained shell companies to hide the proceeds generated by selling its encryption services and devices.
In 2018, the principals of another communications encryption company, Phantom Secure, were indicted in the Southern District of California for their roles in providing encrypted devices to criminal groups. Phantom Secure’s chief executive, Vincent Ramos, pleaded guilty and admitted that he and his co-conspirators facilitated the distribution of narcotics around the world by supplying encrypted communications devices designed to thwart law enforcement.
As alleged in today’s indictment, Sky Global instituted an “ask nothing/do nothing” approach toward its clients shortly after the takedown of Phantom Secure. This policy allowed for Sky Global to claim plausible deniability from the activities of their clients that they knew or had reason to know participated in illegal activities, including international drug trafficking.
“The indictment alleges that Sky Global generated hundreds of millions of dollars providing a service that allowed criminal networks around the world to hide their international drug trafficking activity from law enforcement,” said Acting U.S. Attorney Randy Grossman. “Companies who do this are perpetuating the deadliest drug epidemic in our nation’s history. This groundbreaking investigation should send a serious message to companies who think they can aid criminals in their unlawful activities. I want to thank the prosecutors on this case, Meghan Heesch and Joshua Mellor, as well as our federal law enforcement partners at the FBI, DEA, IRS and the U.S. Marshals Service, for their excellent work on this case.”
“The indictment of Sky Global’s CEO and main distributor is another major strike against transnational crime,” said Suzanne Turner, FBI Special Agent in Charge of the San Diego Field Office. “Eap and Herdman allegedly provided a service designed to allow criminals to evade law enforcement to traffic drugs and commit acts of violent crime without detection. Similar to our 2018 investigation of encrypted service provider Phantom Secure, the San Diego FBI targeted this Canadian company who also exploited encryption to go dark on law enforcement around the globe. With these highly impactful cases, we have shown that the FBI focuses on investigating international criminal organizations from the top so we can shut down entire illicit operations—and the associated technological infrastructure. Today, the FBI has removed what we allege to be another illicit secret communications network used by criminals in the US, Canada, and worldwide.” SAC Turner added, “I want to thank our partners at the Department of Justice, as well as our Canadian law enforcement partners, for their incredible work on this case.”
“DEA maintains an evolving global reach and combined with strong foreign law enforcement partnerships, is committed to searching out the most significant organized criminal groups facilitating sophisticated narcotics trafficking networks,” said DEA Los Angeles Field Division Special Agent in Charge Bill Bodner. “The joint effort to pursue these individuals who hide behind encrypted communication platforms shows that even the use of advanced technology will not enable suspects to conceal their criminal activities from law enforcement.”
“This case is another example of IRS-CI working closely with our international partners to follow the money and bring significant criminal activity to light,” said Special Agent in Charge Ryan Korner of the IRS-Criminal Investigation (IRS-CI) Los Angeles Field Office. “The indictment alleges that Sky Global’s network facilitated international crime across the world, but just as criminals know no borders, neither does federal law enforcement. The combined efforts of the Joint Chiefs of Global Tax Enforcement (J5) ensure that these types of illicit behavior are identified, tracked, and ultimately prosecuted on a global-scale.”
The international operation to seize Sky Global’s infrastructure involved cooperation and efforts by law enforcement authorities in the United States and Canada. In addition, on March 10, 2021, Europol announced that judicial and law enforcement authorities in Belgium, France and the Netherlands had wiretapped Sky Global’s servers and monitored hundreds of millions of messages by Sky Global’s users. The European investigation resulted in hundreds of arrests, the seizure of thousands of kilograms of cocaine and methamphetamine, hundreds of firearms, and millions of Euros.
“With technological advancement comes increased levels of criminal sophistication, but also new tools for police to combat crime,” says Assistant Commissioner Dwayne McDonald, BC RCMP Criminal Operations Officer for Federal, Investigative Services and Organized Crime. “The RCMP will continue to adopt new technologies and strategies to keep our communities safe. Collaboration with our international policing partners, such as in this case with the FBI and DEA, has become an integral part in the ever-evolving fight against organized crime.”
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANTS 21-CR-822GPC
Jean-Francois Eap Vancouver, British Columbia, Canada aka “888888”
Thomas Herdman Vancouver, British Columbia, Canada
SUMMARY OF CHARGES
Count 1: Racketeering Conspiracy, in violation of Title 18, U.S.C., Section 1962(d). Maximum Penalty: Life in prison
Count 2: Conspiracy to Distribute Controlled Substances, in violation of Title 21, United States Code, Sections 841(a)(1) and 846, and Title 18, United States Code, Section 2. Maximum Penalty: Life in prison
AGENCIES
Federal Bureau of Investigation
Drug Enforcement Administration
Internal Revenue Service-Criminal Investigations
United States Marshals Service
Department of Justice, Office of International Affairs
Royal Canadian Mounted Police
International Assistance Group, Canadian Department of Justice
Organized Crime Drug Enforcement Task Force
*The charges and allegations contained in an indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Singapore Resident Charged in Manhattan Federal Court with Fraudulent Pre-IPO Stock SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Peter C. Fitzhugh, Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Philip R. Bartlett, Inspector-in-Charge of the New York Field Division of the United States Postal Inspection Service (“USPIS”), Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), and Joseph Fucito, New York City Sheriff, announced today the unsealing of a criminal Complaint charging SHAMOON RAFIQ, a/k/a “Shamoon Omer Rafiq,” a/k/a “Omar Rafiq,” a/k/a “Omer Rafiq,” a resident of Singapore, with securities fraud, wire fraud, and aggravated identity theft for engaging in a scheme in which RAFIQ solicited millions of dollars through his use of false representations offering to sell purported investments in shares of stock in privately held companies that have not yet conducted an initial public offering (“pre-IPO stock”) that he did not actually own, his false impersonation of senior officials of a reputable family office investment firm, and other acts of deception.
U.S. Attorney Audrey Strauss said: “As alleged, Shamoon Rafiq exploited investors’ fear of missing out on the potential gains to be earned from investing in companies before they go public, and solicited millions of dollars from investors through brazen lies and deception. Rafiq allegedly elicited millions under the false pretense that he would sell shares of pre-IPO stocks which – unbeknownst to his investors – he did not even own and therefore could not sell. Furthermore, Rafiq allegedly sent faked emails impersonating senior officials of a reputable family office investment firm that supposedly backed his claims. I sincerely thank our law enforcement partners for their assistance in charging Rafiq for alleged predatory acts of deceit on his victims.”
HSI Special Agent-in-Charge Peter C. Fitzhugh said: “A fraudster with a felony conviction for wire fraud, Rafiq allegedly attempted to fleece investors out of their hard-earned cash by creating the illusion of a once-in-a-lifetime opportunity to invest victims’ funds into pre-IPO stocks such as Airbnb shares. In reality, no such opportunity existed and Rafiq' was simply trying to walk off with millions of dollars from Singapore. HSI’s El Dorado Task Force and our partners will continue to work tirelessly to identify, investigate, arrest and prosecute individuals, like Rafiq, who allegedly peddled too good to be true financial opportunities within the U.S. financial markets. Investors should be reminded that unbelievable investment prospects are sometimes just that.”
USPIS Inspector-in-Charge Phillip R, Bartlett said: “Mr. Rafiq’s alleged scheme is all based on the alleged perfect opportunity for ‘stock’ in a well-known company. The opportunity to own prominent holdings would be a boon to any investor, but in this case there was no stock, just a made up investment scheme to enrich an alleged serial fraudster. Through the collaboration of law enforcement, both domestically and globally, Mr. Rafiq will once again answer for his crimes to defraud investors. A reminder that no one eludes justice forever.”
NYPD Commissioner Dermot Shea said: “As alleged in this complaint, Shamoon Rafiq preyed on the hopes of innocent victims in elaborate financial swindles. But the joint work of our NYPD investigators and law enforcement partners put an end to these alleged crimes and I commend the United States Attorney’s Office in the Southern District of New York for bringing this important case.”
If you believe you are a victim of a fraudulent pre-IPO stock scheme perpetrated by SHAMOON RAFIQ or have information about the crimes charged in the Complaint, please call the United States Attorney’s Office at 866-874-8900.
According to the allegations in the Complaint unsealed today in Manhattan federal court:[1]
SHAMOON RAFIQ, a/k/a “Shamoon Omer Rafiq,” a/k/a “Omar Rafiq,” a/k/a “Omer Rafiq,” was born in the Netherlands in 1973 and presently resides in Singapore. RAFIQ was convicted in 2004 in the United States District Court for the Eastern District of New York for carrying out a wire fraud scheme in which he purported to sell pre-IPO stock in a privately held company that had not yet conducted its initial public offering when, in fact, RAFIQ did not own or have access to such stock. After serving a 41-month federal prison sentence for that crime, RAFIQ was deported from the United States and eventually relocated to Singapore.
Since at least July 2020, RAFIQ has been engaging in a new scheme from Singapore to defraud victims into paying him millions of dollars for alleged investment interests in various pre-IPO stocks that he does not actually own or control.
In connection with his new fraud scheme, RAFIQ has fraudulently impersonated two senior officials (“Victim-1” and “Victim-2”) of a prominent family office investment firm (“FamCap”) that manages and invests assets of members of a prominent billionaire family (the “Family”). In July 2020, RAFIQ caused the creation of a fake FamCap website (the “Fake FamCap Website”) that has automatically routed users to the official FamCap website, and the creation of fake FamCap email addresses for Victim-1 and Victim-2 that closely resemble, but are slightly different from, their official FamCap email addresses (the “Fake FamCap Email Addresses”). The Fake FamCap Website and Fake FamCap Email Addresses for Victim-1 and Victim-2 were created without their or FamCap’s consent. The Fake FamCap Email Addresses also included the names of Victim-1 and Victim-2 without their authorization.
In July 2020, RAFIQ began soliciting millions of dollars from investment firms in New York and elsewhere based on false claims that in exchange for their funds, he would sell them investment interests in a purported special purpose investment vehicle called “[Fam] Capital Technology Fund, LLC” that was supposedly managed by FamCap and allegedly owned pre-IPO stock in Airbnb, Inc., among other companies. For example, as part of this fraudulent scheme, RAFIQ deceived an investment firm based in New York, New York (the “New York Firm”), and one of the firm’s foreign institutional clients (the “Client”) into making agreements under which the Client wired about $9 million in mid-August 2020 into an escrow account in New York for anticipated release to a bank account in Singapore to pay RAFIQ for his purported sale of investment interests in the LLC.
In soliciting this $9 million investment, RAFIQ made a variety of false representations, including the following:
- RAFIQ falsely claimed that the LLC was managed by FamCap. In fact, the LLC never existed.
- RAFIQ falsely claimed that the LLC owned pre-IPO shares of Airbnb. In fact, the LLC did not own and could not have owned such stock because the LLC never existed.
- RAFIQ falsely claimed that Victim-1 and Victim-2 had approved of his sale of his alleged interests in the LLC. In fact, Victim-1 and Victim-2 do not know RAFIQ and have confirmed that FamCap was never involved in or approved of any such transaction.
During and to further the goals of this fraudulent scheme, RAFIQ also caused the creation and transmission of emails from the Fake FamCap Email Addresses and fake contracts and deal documents purporting to have been signed by Victim-1 or Victim-2 on behalf of FamCap that neither of them approved. For example, in August 2020, during the course of email communications with the New York Firm and Client concerning RAFIQ’s alleged sale to them of his purported interests in an alleged FamCap-managed LLC that supposedly held Airbnb shares, RAFIQ copied into the email chain the Fake FamCap Email Addresses to create the false impression that FamCap was involved in and approved of the alleged transaction.
In a separate parallel enforcement action, the United States Securities and Exchange Commission (the “SEC”) has filed civil charges against RAFIQ.
* * *
RAFIQ, 47, is a resident of Singapore and a citizen of the Netherlands. RAFIQ has been charged in a three-count Complaint with one count of securities fraud, which carries a maximum potential sentence of 20 years in prison; one count of wire fraud, which carries a maximum potential sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory prison sentence of two years that must be imposed to run consecutively to any other terms of imprisonment. In addition to potential prison sentences, each of these charges also carries potential financial penalties. The maximum potential prison sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
RAFIQ remains at large. The United States looks forward to working with our foreign partners to bring RAFIQ to justice.
Ms. Strauss praised the investigative work of HSI, USPIS, the NYPD and the New York City Sheriff’s Office, and she also thanked the SEC, which conducted a separate parallel investigation, for its assistance.
This case is being handled by this Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Samson Enzer is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of that charging document set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Sex Offender Who Fled with Girlfriend to Mexico Sentenced for Violating Sex Offender LawsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that LESTER B. JOY, 40, formerly of Waterbury, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 48 months of imprisonment, followed by five years of supervised release, for failing to register as a sex offender.
The Sex Offender Registration and Notification Act (“SORNA”) provides a comprehensive set of minimum standards for sex offender registration and notification in the United States and seeks to strengthen the nationwide network of sex offender registration and notification programs. In part, SORNA requires registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school.
According to court documents and statements made in court, on October 25, 2002, Joy was convicted in the State of New Jersey of sexual assault in the second degree, endangering the welfare of a child in the third degree and theft in the third degree. For these offenses, he was sentenced to three years of imprisonment, lifetime community supervision and was subject to lifetime registration as a sex offender. On January 4, 2006, Joy was convicted in Suffolk County, New York, of three counts of rape in the third degree, two counts of criminal sexual acts in the third degree and two counts of disseminating indecent material to a minor. For these offenses, he was sentenced to a period of 42 to 84 months of incarceration and lifetime probation.
On November 30, 2013, Joy was released from the Morris County, New Jersey jail following service of a sentence for violation of his lifetime term of community supervision in New Jersey. However, he did not register as a sex offender in either New Jersey or New York, and moved to Connecticut. He failed to notify New Jersey, New York and Connecticut officials of his move to Connecticut, as required. On February 23, 2015, Joy pleaded guilty in the District of Connecticut to failing to register as a sex offender. On May 18, 2015, he was sentenced in Hartford federal court to 27 months of imprisonment, followed by five years of supervised release, for that offense.
In January 2017, after he was released from federal prison, Joy failed to report to parole in New Jersey and failed to seek permission to change his address or advise New Jersey of his new address Connecticut. He also failed to comply with treatment requirements of his federal supervised release. In April 2017, Joy was sentenced to an additional seven months of federal imprisonment for violating the conditions of his supervised release. He was released from federal custody in August 2017.
On February 17, 2019, Joy’s girlfriend, who did not have physical or legal custody of her three minor children, participated in a Department of Children and Families’ supervised visit with the children at a restaurant in Waterbury. During the visit, Joy’s girlfriend was given permission to take the children to the restroom. Instead, Joy’s girlfriend took her children out the back door of the restaurant into a waiting vehicle determined to have been used by Joy in the past.
On March 7, 2019, Joy, his girlfriend and her three children were located by Mexican law enforcement authorities in Mazatlán, Mexico, and Joy and his girlfriend were arrested. Joy had failed to provide information to the Connecticut Sex Offender Registry, as required by SORNA, about his travel to Mexico.
Joy has been detained since his arrest. On October 29, 2020, Joy pleaded guilty in Waterbury Superior Court to three counts of risk of injury, and was sentenced to three years of incarceration followed by seven years of special parole.
On November 3, 2020, he pleaded guilty in federal court to failing to register as a sex offender.
Judge Underhill ordered Joy’s 48-month federal sentence to run concurrently with his state sentence.
This matter was investigated by the U.S. Marshals Service, Federal Bureau of Investigation and Waterbury Police Department, with the assistance of Mexican law enforcement authorities. The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater and Nancy V. Gifford.
Rochester Music Teacher Pleads Guilty to 74 Charges, Including 61 Counts of Production of Child PornographyRead 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 Philip M. Close, 43, of Rochester, NY, pleaded guilty before U.S. District Judge Charles A. Siragusa to a 74-count indictment, including 61 counts of production of child pornography and 13 counts of possession of material containing child pornography involving prepubescent minors. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum 2,090 years in prison, and a $18,500,000 fine.
“The defendant occupied a position of trust with respect to his students,” stated U.S. Attorney Kennedy. “His perverse violation of that trust, together with our duty to protect our children, warrant the defendant being held fully accountable for all that he did, and full accountability is precisely what today’s plea ensures.”
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that from 2016 to 2019, the defendant owned the Close School of Music on West Ridge Road in the Town of Parma and provided private music lessons to children of all ages. During that time, Close hid spy cameras throughout the school and secretly recorded the students, parents, and other teachers. Some of these cameras captured videos of the defendant inappropriately touching his students and himself during lessons. Close also placed two spy cameras in the school’s only bathroom: one under the toilet and one hidden in a watercooler facing the toilet. The defendant intentionally positioned these cameras to record the naked genitals of young girls when they stood up from the toilet. Prior to opening the Close School of Music in 2016, the defendant worked at a different music school. Between 2012 and 2016, he also placed a spy camera in the bathroom of that school and intentionally recorded the naked genitals of young girls when they went to the bathroom.
Between 2012 and 2019, Close produced hundreds of videos of child pornography involving 61 identified minor victims. The youngest victim was four years old. While executing search warrants at the Close School of Music, investigators also discovered 13 devices that contained other images and videos of child pornography.
The plea 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; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; and the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
Sentencing is scheduled for August 16, 2021, at 10:00 a.m. before Judge Siragusa.
# # # #
Providence Man Admits to Trafficking More Than A Kilo of CocaineRead the Press Release
PROVIDENCE – A Providence man arrested shortly after law enforcement watched him take possession of a package that contained more than a kilogram of cocaine shipped from Puerto Rico pleaded guilty in U.S. District Court in Providence to possessing more than 500 grams of cocaine with the intent to distribute.
According to court documents, Modesto Batista, 30, was sitting inside a vehicle parked near a Providence residence when a U.S. Postal Service Inspection agent made a controlled delivery of the package to the front porch of that residence. Law enforcement had become aware that the package contained a significant quantity of cocaine.
According to court documents, as Homeland Security Investigations agents, U.S. Postal Inspection Service agents, and detectives assigned to the Rhode Island High Intensity Drug Trafficking Area Task Force watched, Batista quickly removed the package from the porch and transported it to his Providence residence.
Moments after Batista went inside his residence, agents knocked on the door and announced their presence, after which they forcibly entered the residence. Batista was found standing at the foot of the stairs leading to the upstairs portion of the house. The package containing more than 1,400 grams of cocaine was found at Batista’s feet.
From inside Batista’s bedroom agents seized, among other items, a 9mm semiautomatic handgun and a magazine for the firearm loaded with fourteen rounds of live ammunition. Various items used in the delivery of cocaine were also found inside the residence.
Appearing on Thursday before U.S District Court Chief Judge John J. McConnell, Jr., Batista, who has been detained since his arrest on December 10, 2020, pleaded guilty to possession of over 500 grams of cocaine with the intent to distribute, announced Acting United States Attorney Richard B. Myrus, Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, and Superintendent of the Rhode Island State Police Colonel James M. Manni.
Batista is scheduled to be sentenced on June 3, 2021.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
###
Previously Convicted Sex Offender Pleads Guilty to Distribution of Child PornographyRead the Press Release
Baltimore, Maryland- Christopher Russell Fox, age 42, of Brooklyn, Maryland, pleaded guilty on March 9, 2021 to distribution of child pornography. Fox is a registered sex offender, previously convicted of a third-degree sex offense in 2016, in Howard County Circuit Court.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to his guilty plea, between March and May of 2018, a technology company sent numerous CyberTip Reports regarding child pornography incidents occurring on its video conference platform. Files submitted with the reports depicted prepubescent males engaged in sexually explicit conduct.
As detailed in his plea agreement, investigation revealed that Fox repeatedly used a video conferencing platform to pose as a minor male, in order to communicate with other users. Fox routinely sought out minor males on the video conferencing platform, engaged them in sexual conversation, asked them to trade sexually explicit images and videos, and asked them to stream live images. While he was on probation for his 2016 sex offense conviction, Fox used three separate accounts on the video conferencing platform in order to trade images and videos of minor males engaged in sex acts on at least eleven occasions between December 10, 2017 and May 19, 2018. For example, on March 24, 2018, Fox posed as an 8th grade male and engaged in sexually explicit conversation with a user who stated he was in the 10th grade. During the conversation Fox sent the user a video of three prepubescent males engaging in sexual acts.
On May 10, 2019, investigators executed a federal search warrant at Fox’s residence and seized digital items including Fox’s computer and a mini thumb drive. A forensic review of those items revealed that Fox possessed over 158 images of child pornography on the digital devices. These images, along with the videos Fox traded online, demonstrate that Fox distributed, received, and possessed over 600 images of child pornography.
As part of his plea agreement, Fox must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Fox faces a mandatory minimum sentence of 15 years in prison and a maximum of 40 years in prison for distribution of child pornography. U.S. District Judge Richard D. Bennett has scheduled sentencing for June 10, 2021 at 11 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended the FBI for its work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Christine L. Duey and Matthew Maddox, who are prosecuting the federal case.
# # #
Ohio man sentenced for role in drug distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Cory Davonta Smith, Jr., of Barberton, Ohio, was sentenced today to 57 months of incarceration for his role in a drug distribution operation, Acting United States Attorney Randolph J. Bernard announced.
Smith, also known as “C.J.,” age 27, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute 50 Grams or More of Methamphetamine” in July 2020. Smith admitted to working with others to distribute 50 grams or more of crystal methamphetamine, also known as “ice,” in November 2018 in Gilmer County.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The Mountain Lakes Drug & Violent Crimes Task Force investigated.
Senior U.S. District Judge Irene M. Keeley presided.
North Carolina Man Sentenced to 4 Years in Prison for Possessing Gun and Drugs in New HavenRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that JIMMIE WILLIAMSON, also known as “James Land,” 38, of Durham, North Carolina, was sentenced yesterday by U.S. District Judge Jeffrey A. Meyer in New Haven to 48 months of imprisonment, followed by three years of supervised release, for drug and firearm offenses.
According to court documents and statements made in court, on February 22, 2019, New Haven Police responded to a report of a suspected gunshot in the vicinity of Winchester Avenue and encountered Williamson behaving erratically outside of a residence. A search of a vehicle that was parked in the driveway of the residence revealed a loaded Glock 9mm pistol, 69 pills containing methamphetamine, and a quantity of packaged marijuana. Williamson was arrested on that date.
Forensic analysis of the firearm revealed the presence of Williamson’s DNA.
Williamson’s criminal history includes felony convictions in North Carolina state court for drug and firearm offenses, and a 2005 federal conviction in the Middle District of North Carolina for possession of a firearm by a convicted felon.
Williamson has been detained since his arrest. On February 24, 2020, he pleaded guilty to one count of possession with intent to distribute controlled substances, and one count of possession of a firearm by a convicted felon.
This matter was investigated by the New Haven Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case was prosecuted by Assistant U.S. Attorney Margaret M. Donovan.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
New York Man Pleads Guilty to Drug Trafficking ChargeRead the Press Release
CONCORD - Lorenzo Vasquez, 29, of New York, pleaded guilty in federal court to aiding and abetting the possession of controlled substances with intent to distribute, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on February 25, 2020, a New Hampshire state trooper pulled over a vehicle operated by Vasquez for traffic violations. Vasquez stated he did not have a license and the vehicle was a rental in his sister’s name. The trooper learned through further investigation that Vasquez had a suspended license and a warrant out of Pennsylvania. A drug detection dog later indicated that there were drugs in the vehicle. After obtaining a search warrant, officers located over 202 grams of cocaine base, over 90 grams of heroin, and a digital scale within the vehicle.
Vasquez is scheduled to be sentenced on June 18, 2021.
“Criminals who travel to New Hampshire to sell drugs should understand that their illegal conduct will not be tolerated,” said Acting U.S. Attorney Farley. “The hard work of the New Hampshire State Police prevented this cocaine base and heroin from being distributed in the Granite State. As this case shows, we are working closely with our law enforcement partners to stop the flow of illegal drugs into New Hampshire and to put drug dealers out of business.”
This matter was investigated by the New Hampshire State Police Mobile Enforcement Team. The case is being prosecuted by Assistant U.S. Attorney Joachim H. Barth.
###
NDTX Round up: March 5-11Read the Press Release
SENTENCING – LEONEL GENARO YANEZ
On March 5, Leonel Yanez, 47, was sentenced to 135 months in federal prison for possession with intent to distribute a methamphetamine. Yanez, an illegal immigrant from Morelia, Mexico, met an individual in Mesquite, Texas where he purchased car audio speakers which he knew contained 20 kilograms of methamphetamine. Yanez planned to distribute the narcotics to an individual who was taking the speakers to Florida. This DEA conducted the investigation. Assistant U.S. Attorney Rachael Jones prosecuted the case.
SENTENCING – JOSE ALBERTO HINOJOSA
On March 10, Jose Alberto Hinojosa, 28, was sentenced to 40 months in federal prison for conspiracy to possess with intent to distribute methamphetamine. In February 2019, Hinojosa was stopped by a Perry County, Mississippi sheriff’s deputy. During a roadside investigation, Hinojosa admitted to law enforcement that he had been smoking methamphetamine. A further search of his vehicle revealed approximately $29,000 in currency. Hinojosa gave a statement to law enforcement that he had picked up five kilograms of methamphetamine from a friend in Dallas to transport to Tampa, Florida. While in Tampa, he received further instructions regarding the delivery of the methamphetamine. The DEA conducted the investigation. Assistant U.S. Attorney Myria Boehm prosecuted the case.
GUILTY PLEA – TANIA DELAROSA
On March 11, Tania Delarosa, 42, plead guilty to bank robbery. On March 27, 2020, Delarosa entered a Bank of America in Dallas. She presented a note to the bank teller and stated she had a gun. The note contained a threat that Delarosa would go to the teller’s house and kill her family. Immediately, the teller notified other bank employees, who in turn contacted law enforcement. Delarosa subsequently fled the bank without any cash. Delarosa was identified based on the surveillance footage and arrested after she boarded a nearby bus. She now faces up to 20 years in federal prison for her crimes. The FBI and the Dallas Police Department conducted the investigation. Assistant U.S. Attorney Rebekah Ricketts is prosecuting the case.
SENTENCING – CORNELIUS WALKER
On March 11, Cornelius Walker, 34, was sentenced to 25 years in federal prison for four counts of interference with commerce by robbery, and two counts of brandishing and discharging a firearm in furtherance of a crime of violence. On January 9, 2018, Walker entered a Dallas convenience armed with a firearm. He discharged a firearm in the direction of the convenience store employee causing the clerk to flee. Walker jumped over the counter and took the register tray. On January 10, Walker entered another Dallas convenience store wearing a white mask and black hoodie. Armed with a firearm, he jumped over the counter demanding cash from the convenience store employee. Fearing for his life, the employee opened the register giving Walker cash. On January 11, Walker robbed a convenience store in Richardson. While demanding cash from the store clerk, Walker shot the employee twice in the chest before fleeing. A few days later, Walker entered a Carrollton restaurant wearing a grey hoodie, grey socks on his hands, and a grey mask. He pointed a firearm at the restaurant’s general manager. Walker put the gun to another employees back while demanding cash from the restaurant. In sum from the four robberies, Walker stole $387.24. The FBI conducted the investigation. Assistant U.S. Attorney Shane Read prosecuted the case.
Miami Man Charged with Multiple Bank RobberiesRead the Press Release
Miami, Florida – Federal prosecutors have charged 43-year-old Christopher C. Pinkston of Miami with robbing two banks in South Florida last month.
According to allegations in the criminal complaint affidavit, at about 1:30 p.m. on February 11, 2020, Pinkston entered the Chase Bank located at 13745 S.W. 152nd Street in Miami, approached a teller window, and handed the teller a note saying: "I need 30,000 Dollars or everybodys [sic] Dead." The victim teller gave Pinkston $1,000 in cash, after which Pinkston exited the bank, leaving the demand note behind, says the affidavit.
The complaint charges Pinkston with robbing a second bank at about 1:30 p.m. on February 19, 2020. On that day, according to the affidavit, Pinkston entered the City National Bank located at 13780 S.W. 88th St. in Miami, approached a teller window, and handed the teller a note saying: "Goodmorning this is a robbery Handover $30,000 you have less than one min no ink bombs or trackers Thank you [sic]." The victim teller handed Pinkston $5,100 in cash, after which Pinkston exited the bank, leaving the demand note behind, according to the affidavit.
Following an investigation, law enforcement arrested Pinkston on March 11, 2021. He will make his initial appearance today at 1:30 p.m. before U.S. Magistrate Judge John J. O’Sullivan, who sits in Miami.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and FBI Miami Special Agent in Charge George L. Piro made the announcement.
FBI Miami investigated this case, with cooperation and assistance from Miami Dade Police Department and City of Miami Police Department, Special Investigations Section. Assistant United States Attorney Joseph Egozi is prosecuting this case.
Each bank robbery charge carries a maximum sentence of 20 years.
A criminal complaint is merely an accusation containing allegations. A defendant is presumed innocent unless and until found guilty in a court of law.
You may find a copy of this press release on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 21-mj-20462.
###
Miami Man Charged with Multiple Bank RobberiesRead the Press Release
Miami, Florida – Federal prosecutors have charged 43-year-old Christopher C. Pinkston of Miami with robbing two banks in South Florida last month.
According to allegations in the criminal complaint affidavit, at about 1:30 p.m. on February 11, 2020, Pinkston entered the Chase Bank located at 13745 S.W. 152nd Street in Miami, approached a teller window, and handed the teller a note saying: "I need 30,000 Dollars or everybodys [sic] Dead." The victim teller gave Pinkston $1,000 in cash, after which Pinkston exited the bank, leaving the demand note behind, says the affidavit.
The complaint charges Pinkston with robbing a second bank at about 1:30 p.m. on February 19, 2020. On that day, according to the affidavit, Pinkston entered the City National Bank located at 13780 S.W. 88th St. in Miami, approached a teller window, and handed the teller a note saying: "Goodmorning this is a robbery Handover $30,000 you have less than one min no ink bombs or trackers Thank you [sic]." The victim teller handed Pinkston $5,100 in cash, after which Pinkston exited the bank, leaving the demand note behind, according to the affidavit.
Following an investigation, law enforcement arrested Pinkston on March 11, 2021. He will make his initial appearance today at 1:30 p.m. before U.S. Magistrate Judge John J. O’Sullivan, who sits in Miami.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and FBI Miami Special Agent in Charge George L. Piro made the announcement.
FBI Miami investigated this case, with cooperation and assistance from Miami Dade Police Department and City of Miami Police Department, Special Investigations Section. Assistant United States Attorney Joseph Egozi is prosecuting this case.
Each bank robbery charge carries a maximum sentence of 20 years.
A criminal complaint is merely an accusation containing allegations. A defendant is presumed innocent unless and until found guilty in a court of law.
You may find a copy of this press release on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 21-mj-20462.
###
Mescalero man sentenced to two years in prison for assaultRead the Press Release
ALBUQUERQUE, N.M. – Edmond Andrew Yahnahki Shanta, 23, of Mescalero, New Mexico, and an enrolled member of the Mescalero Apache Tribe, was sentenced on March 3 in federal court to two years and four months in prison for assault resulting in serious bodily injury in Indian Country. Shanta pleaded guilty to the crime on June 4, 2020.
According to his plea agreement, Shanta assaulted the victim on July 13, 2019, in Otero County, New Mexico, on the Mescalero Apache Reservation. Shanta struck the victim in the face with a rock causing a deep cut and several fractures. After being airlifted to a Level 1 Trauma Center in El Paso, Texas, the victim needed surgery and four days of medical care for injuries sustained in the assault.
Upon his release from prison, Shanta will be subject to two years of supervised release.
The FBI investigated this case with assistance from the Bureau of Indian Affairs. Assistant U.S Attorney Aaron O. Jordan is prosecuting the case.
Members of Harrison County Drug Ring Sentenced for Methamphetamine TraffickingRead the Press Release
MARSHALL, Texas – Two Harrison County men were sentenced to prison today for federal drug trafficking and firearms crimes in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Armando Ivan De La Torre, a.k.a. “Poncho,” pleaded guilty on Oct. 6, 2020, to possession with intent to distribute methamphetamine and use and carrying of a firearm during a drug trafficking crime. De La Torre was sentenced to 190 months in federal prison today by U.S. District Judge Rodney Gilstrap. Judge Gilstrap also sentenced Martin Lopez to 84 months in federal prison for possession with intent to distribute methamphetamine.
“Interagency cooperation between federal, state, and local agencies is essential in achieving our mission of dismantling drug trafficking organizations—from top to bottom—and disrupting the flow of drug-related crime and violence into our communities,” said Acting U.S. Attorney Nicholas J. Ganjei. “Those involved in this investigation serve as an example of how that cooperation brings about shared success.”
According to information presented in court, both men were members of an organization responsible for importing large quantities of methamphetamine from Mexico and distributing it in Marshall. The ring operated as both direct seller of methamphetamine, as well as a source-of-supply to other drug dealers.
On Feb. 19, 2020, De La Torre and Lopez were indicted by a federal grand jury along with seven other co-conspirators, and charged with violations of federal drug trafficking laws.
Operation Pine Curtain is a long-term drug trafficking and money-laundering investigation that has already resulted in the arrest and prosecution of numerous co-conspirators. Danny Brian Hernandez, Ronald Charles Parker, Daniel Ramirez, Guadalupe Salvador Diosdado, Erik Alberto Galindo, and Rachel Naomi Hernandez have pleaded guilty and have been sentenced. Andres Michael Martinez-Juarez, Cristian Leobardo Torres-Santana, Francisco Moreno, Fernie Moreno, Amanda Jean Crisp, and Damarcus Damon Armstrong have pleaded guilty and are awaiting sentencing. Several others have been arrested, pleaded not guilty, and are awaiting trial.
This is an Organized Crime Drug Enforcement Task Force (OCDETF) case and is being investigated by the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Texas Department of Public Safety; the Harrison County Sheriff’s Office; and the Marshall Police Department. This case is being prosecuted by Assistant U.S. Attorney Lucas Machicek. OCDETF is the largest anti-crime task force in the country and its mission is to disrupt and dismantle the most significant drug trafficking and transnational criminal organizations that threaten the United States. The prosecutor-led, intelligence-driven, multi-agency task forces leverage the authorities and expertise of federal, state, and local law enforcement.
Maryland Woman Pleads Guilty in Rhode Island to Aggravated Identity TheftRead the Press Release
PROVIDENCE – An Abington, Maryland, woman appeared in U.S. District Court in Providence, RI, on Thursday and admitted that she used the stolen identity of a customer of a Maryland business where she was employed in June 2018 and stolen blank checks from two businesses to fraudulently obtain money and services, including for the rental of a home in southern Rhode Island.
Lauren Houck, 31, admitted to the court that she gained the personal identity of the customer and forged her signature on 83 checks totaling more than $291,400. Most of the funds were used to finance a lavish lifestyle.
Houck admitted that as part of her schemes, she used the stolen identity and stolen business checks for payment to rent a house in southern Rhode Island from November 2018 to December 2019. As payment, Houck submitted three stolen checks totaling $14,000, each containing the forged signature of the person whose identity she stole.
Appearing before U.S. District Court Judge William E. Smith, Houck pleaded guilty to aggravated identity theft, announced Acting United States Attorney Richard B. Myrus, Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, and Superintendent of the Rhode Island State Police Colonel James M. Manni.
Houck is scheduled to be sentenced on May 27, 2021.
Aggravated identity theft is punishable by a statutory mandatory term of imprisonment of two years in federal prison, a fine of up to $250,000, and a term of up to one year of federal supervised release.
The case, investigated by the U.S. Postal Inspection Service and Rhode Isand State Police, is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
###
Man Sentenced to 20 Years in Debit Card Theft SchemeRead the Press Release
A U.S. citizen who formerly resided in the Dominican Republic has been sentenced to 20 years in federal prison for his role in a scheme to steal debit cards from bank customers, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Gregory Jean-Louis, a 46-year-old U.S. citizen living in the Dominican Republic at the time of his crime, was charged with fraud conspiracies in the Northern District of Texas and in the Southern District of Florida in 2019 and 2020, respectively. The Florida case was transferred to the Northern District of Texas, and Mr. Jean-Louis pleaded guilty in both cases to charges of conspiracy to commit bank fraud and access to device fraud. He was sentenced today by U.S. District Judge Reed O’Connor to 240 months in federal prison and was ordered to pay more than $3.3 million in restitution to Bank of America and Citizens Bank.
During the sentencing hearing, internal investigators from Bank of America and Citizen’s Bank testified about their years-long investigation into the fraud, which revealed that the defendant and his coconspirators had victimized hundreds of customers.
According to plea papers, Mr. Jean-Louis admitted that he and his coconspirators used stolen PII (personal identification information) to obtain debit cards in the names of customers of Bank of America and Citizens Bank.
Posing as actual customers of the financial institutions, Mr. Jean-Louis – also known to his coconspirators as “G.” – reached out to the banks, requesting that they mail duplicate debit cards and PIN numbers to customers’ actual addresses.
He then directed coconspirator “runners” to steal the debit cards and PIN numbers from the customers’ mailboxes, and to send him photos of the cards and PINs so he could activate them.
Using the fraudulently obtained cards, the group withdrew thousands of dollars from customers’ accounts from ATMs across the country, including in Texas, New York, Massachusetts, Rhode Island, Connecticut, California, and Pennsylvania. Much of the money was wired to Mr. Jean-Louis.
The United States Postal Inspection Service conducted the investigation; the U.S. Marshals Service assisted in Mr. Jean-Louis’ apprehension. Assistant U.S. Attorney Rob Boudreau prosecuted the case.
Man Sentenced in Ft. Pierce to over 12 Years in Prison for Smuggling Migrants by Sea as Hurricane ApproachedRead the Press Release
Miami, Florida – Yesterday, a federal judge in Ft. Pierce sentenced a Bahamian man to 151 months in prison for trying to smuggle migrants into the United States on a poorly-equipped and overloaded boat while the area was under a hurricane warning.
According to court documents, on the night of July 30, 2020, Vonne Rolle, 29, of Coopers Town, Bahamas, attempted to pilot a vessel from Freeport, Bahamas, to the St. Lucie Inlet, with twelve migrants on board. At the time, the area was under a hurricane warning due to the approaching storm, Isaias. The vessel, which was overloaded and not equipped with food, water, or life jackets, broke down prior to arriving in Florida. It drifted until a boater discovered it the next day. The United States Coast Guard rescued Rolle and the other migrants, including a minor, 26 miles off the coast of Stuart, Florida. Rolle was arrested and charged. On December 11, 2020, Rolle pled guilty to migrant smuggling.
Rolle was convicted and sentenced in 2016 on a separate alien smuggling charge investigated by HSI in Fort Pierce, Florida. Rolle was previously deported from the U.S. in April 2018.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office, made the announcement.
HSI Miami investigated this case, with assistance from the U.S. Coast Guard and U.S. Border Patrol. Assistant U.S. Attorney Justin Hoover is prosecuting the case.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 20-14029-CR-JEM.
###
Man Sentenced for Attempting to Board International Flight with a Loaded FirearmRead the Press Release
Assistant U.S. Attorney Jaclyn Stahl (619) 546-8456
NEWS RELEASE SUMMARY – March 12, 2021
SAN DIEGO – Elan Leroy Gwynn, a San Diego resident, was sentenced today to nine months in custody for attempting to board an international flight from San Diego International Airport to London with a loaded gun in his carry-on luggage.
According to admissions in his plea agreement, Gwynn proceeded through the Transportation Security Administration (TSA) security checkpoint on March 17, 2020. Gwynn placed his carry-on luggage on the conveyor belt for the X-ray machine, and TSA officers identified an object that appeared to be a loaded firearm.
Officers with the San Diego Harbor Police responded and discovered, loose in the bottom of Gwynn’s bag, a Glock 19 replica ghost gun with a fifteen-round magazine, loaded with eleven 9-millimeter rounds of ammunition. A ghost gun is a firearm made by an individual without a serial number or other identifying markings. Ghost guns are illegal under California law. Gwynn was also in possession of several grams of methamphetamine. The FBI responded and placed Gwynn under arrest.
U.S. District Judge Janice L. Sammartino also ordered Gwynn to pay a $5,000 fine and ordered forfeiture of the gun and ammunition seized in this case.
“Firearms have no place on airplanes and pose a serious threat to all aboard,” said Acting U.S. Attorney Randy Grossman. “If individuals engage in this type of dangerous behavior, the FBI and the U.S. Attorney’s Office will investigate and bring appropriate charges.” Grossman thanked Assistant U.S. Attorney Jaclyn Stahl as well as the FBI, San Diego Harbor Police and TSA for their excellent work on this case.
“The FBI's Joint Terrorism Task Force (JTTF) is available to respond immediately to investigate federal violations of law that threaten the safety of airline passengers,” said FBI Special Agent in Charge Suzanne Turner. “The safety of the flying public is a priority for the FBI.”
The FBI and U.S. Attorney’s Office will continue to dedicate resources to investigations related to national security and criminal activity at San Diego air, land, and sea ports. This case was investigated by the San Diego FBI and the U.S. Attorney's Office, with support from San Diego Harbor Police and the Transportation Security Administration. Other agencies supporting the FBI include, the Department of Homeland Security, U.S. Customs and Border Protection, the Federal Aviation Administration, and the San Diego Port Authority.
DEFENDANT Case No. 20-CR-1188-JLS
Elan Leroy Gwynn Age: 36 San Diego, California
SUMMARY OF CHARGES
Carrying a weapon or explosive on an aircraft, in violation of 49 U.S.C. § 46505.
Maximum Penalty: Ten years in prison; $250,000 fine.
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego Harbor Police
Transportation Security Administration
Man Charged in Yosemite National Park Sexual AssaultRead the Press Release
FRESNO, Calif. — A five‑count indictment was unsealed today charging Charles Porter, 30, formerly of Chino Hills, charging him with assault with intent to commit aggravated sexual abuse, assault with the intent to commit abusive sexual contact, attempted aggravated sexual abuse, abusive sexual contact, and assault by striking, beating or wounding, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on April 14, 2020, in Yosemite National Park, Porter assaulted the victim while making non-consensual sexual contact with him in an attempt to sexually assault the victim.
This case is the product of an investigation by the National Park Service. Assistant U.S. Attorneys Katherine E. Schuh and Laura Jean Berger are prosecuting the case.
If convicted, Porter faces a maximum statutory penalty of life in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Lone Rock Man Sentenced for Social Security FraudRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Christopher M. Hynek, 47, of Lone Rock, Wisconsin was sentenced today by U.S. District Judge William M. Conley to 1 year and 1 day in prison for Social Security fraud and ordered to pay restitution in the amount of $98,256. Hynek pleaded guilty this charge on September 1, 2020.
According to a 2018 grand jury indictment, Hynek made a claim to his private disability insurer in 2002 for injuries he had suffered to his arms in 2000. He then filed a claim for Social Security Disability Insurance benefits in 2003, alleging the same injuries.
While receiving benefits, Hynek was working at his parents’ printing business, Hynek Printing in Richland Center, Wisconsin, and subsequent printing businesses that Hynek Printing later acquired as it expanded. The fact that Hynek continued to work made him ineligible for Social Security disability benefits, but Hynek concealed and failed to disclose his work activity and money from the business that he was paid “under the table,” as the judge found.
In explaining the need for a prison sentence, Judge Conley noted the seriousness of the offense and observed that Hynek perpetrated a “prolonged fraudulent scheme out of greed.”
“This sentencing should stand as a warning to those who would conceal information from SSA to receive benefits—we will hold you accountable,” said Inspector General Ennis. “The Office of the Inspector General will continue to ensure the integrity of SSA’s programs, which provide a critical safety net for those who cannot work.”
The charge against Hynek was the result of an investigation conducted by the Social Security Administration Office of the Inspector General. The prosecution of the case has been handled by Assistant U.S. Attorneys Robert Anderson and Zachary Corey.
Little Rock Woman Sentenced to 41 Months in Prison for COVID Relief FraudRead the Press Release
LITTLE ROCK—A Little Rock woman was sentenced to 41 months in federal prison after fraudulently obtaining nearly $2 million in Paycheck Protection Program (PPP) loans intended to provide relief for small businesses affected by COVID-19. Jonathan D. Ross, Acting United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced the sentence of Ganell Tubbs, 41.
Tubbs pleaded guilty to bank fraud in December 2020 and admitted that she purported to own two businesses: The Little Piglet Soap Company, LLC, and Suga Girl Customs, LLC. According to the Arkansas Secretary of State, neither business is in good standing, and both businesses list Tubbs’ residence and personal phone number as the business contact information.
On April 30, 2020, Tubbs submitted a PPP application representing that Suga Girl Customs had paid $1,385,903 in wages and compensation during the first quarter of 2020. She was approved for a PPP loan of $1,518,887 and received the funds on May 5, 2020, but two days later, she used the proceeds to make an $8,000 payment on her personal student loan. The following week, Tubbs spent approximately $6,000 in online purchases at retailers including Apple, Michael Kors, Sephora, North Face, Nike, and others.
Similarly, on May 5, 2020, Tubbs submitted another PPP application, this time regarding The Little Piglet Soap Company. Based on the false representations she made in the loan application, The Little Piglet Soap Company received a PPP loan for $414,375.
The indictment, which was returned by a grand jury on July 7, 2020, charged Tubbs with two counts of bank fraud, two counts of making a false statement on a loan application, and one count of engaging in a monetary transaction with proceeds of unlawful activity. Tubbs’ earlier guilty plea to one count of bank fraud was received in exchange for dismissal of the remaining charges.
United States District Judge Brian S. Miller imposed the sentence, which included two years of supervised release in addition to the 41 month prison sentence. Judge Miller also ordered Tubbs to pay $14,000 restitution, as the rest of the nearly $2 million was able to be recovered previously. The FBI, the Small Business Administration – Office of Inspector General, and the U.S. Treasury Inspector General for Tax Administration conducted the investigation. Assistant United States Attorneys Pat Harris and Jamie Dempsey prosecuted the case.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Lexington Woman Gets 10 Years in Federal Prison on Drug ChargesRead the Press Release
Columbia, South Carolina – Acting United States Attorney M. Rhett Dehart announced today that Ashley Shay Cook, 38, of Lexington, was sentenced to ten years in federal prison after pleading guilty to conspiracy to possess with intent to distribute methamphetamine and cocaine.
Evidence presented in court established that on December 21, 2018, deputies with the Lexington County Sheriff’s Department responded to Cook’s residence in search of a wanted person known to frequent the residence. After consent to search the residence for the fugitive, law enforcement observed drug paraphernalia in plain view. Law enforcement obtained and executed a search warrant on the residence and located approximately 241 grams of methamphetamine, approximately 2 grams of cocaine, baggies commonly used to package drugs for individual sales, and digital scales. After waiving her Miranda rights, Cook admitted to possessing the drugs and making drug sales. Cook was on probation at the time of the instant offense.
United States District Judge Mary Geiger Lewis sentenced Cook to 120 months in federal prison, followed by 48 months of court-ordered supervision. There is no parole in the federal system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Lexington County Sheriff’s Department. Special Assistant United States Attorney Casey Rankin Smith prosecuted the case.
The case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
#####
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on March 10 was:
Holly Michele Hedberg, 38, of Billings, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Hedberg faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. The FBI Western Transnational Organized Crime Task Force and Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. PACER case reference. 20-109.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
XXX
Gunrunner and his accomplices sentenced for trafficking more than 100 firearms from Georgia to MarylandRead the Press Release
ATLANTA – Warren Vernell Robertson, III, a prolific gun trafficker, along with two of his accomplices, has been sentenced for a variety of federal offenses involving the illicit resale of Georgia-sourced firearms on the streets of Baltimore, Maryland.
“Criminals who unlawfully traffic in firearms often only export crime and violence to other communities,” said Acting U.S. Attorney Kurt R. Erskine. “The impact of gun trafficking on our communities is especially acute now, given the uptick in violent crime occurring in many cities.”
“These defendants put guns in the hands of criminals,” said Arthur Peralta, ATF Atlanta Special Agent in Charge. “ATF will continue to focus its attention on anyone who chooses to arm criminals and willfully contribute to the violence harming our communities.”
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: From 2018, through the date of his arrest in mid-2020, Robertson trafficked more than 100 firearms from Georgia to Maryland. During that time, Robertson paid at least four other people, including co-defendant Asante Moore, to unlawfully purchase firearms on his behalf. Robertson also purchased firearms online using nearly a dozen fictitious names and email addresses. Robertson then sold the firearms in Baltimore.
Several of the guns trafficked by Robertson were recovered by law enforcement officers and from individuals involved in criminal activities. For example, ATF agents in Maryland seized nearly a dozen pistols and a rifle from inside a rental car Robertson had driven from Atlanta. Additionally, only weeks after Moore purchased a semiautomatic pistol for Robertson, Baltimore police officers recovered the firearm from a drug dealer. The pistol was fully loaded at that time.
In addition, during the first three months of 2020, Moore purchased more than 20 guns for Robertson. On March 16, 2020, Moore, Robertson, and Robertson’s cousin, Erik Alfonso Cohen, Jr., traveled together to a pawn shop in Jonesboro, Georgia, to purchase three of those guns. At the time, Cohen was prohibited from possessing firearms because he had been convicted of a weapons-related offense in Maryland. Robertson’s criminal history also included convictions for drug possession and other offenses.
All three defendants pleaded guilty to the following offenses and were sentenced by U.S. District Judge Leigh Martin May:
- Warren Vernell Robertson, III, 25, of East Point, Georgia and Aberdeen, Maryland, was sentenced on March 10, 2021, to three years in prison, to be followed by three years of supervised release. He pleaded guilty on November 20, 2020, to the offense of making a false statement to a licensed firearms dealer.
- Erik Alfonso Cohen, Jr., 23, of Edgewood, Maryland, was sentenced on March 3, 2021, to one year, six months in prison, to be followed by three years of supervised release. Cohen pleaded guilty on December 3, 2020, to the charge of unlawful possession of a firearm.
- Asante Moore, 24, of Atlanta, Georgia, was sentenced on December 2, 2020, to three months in prison to be followed by three years of supervised release. Moore pleaded guilty on September 9, 2020, to the offense of unlawfully dealing in firearms.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The U.S. Attorney’s Office for the District of Maryland provided valuable assistance.
Assistant U.S. Attorney Theodore S. Hertzberg prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
This case was also brought as part of Project Guardian, a national Department of Justice initiative to reduce gun violence and enforce federal firearms laws, including those related to firearms trafficking. More information about Project Guardian can be found at https://www.justice.gov/projectguardian.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Gift Stores Owner Pleads Guilty to Unlawfully Prescribing and Distributing Controlled Substances and Prescription Drugs, Generating Nearly $1.7 Million in SalesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas gift stores owner pleaded guilty today to the unlawful prescription and distribution of controlled substances and prescription drugs at her two stores, announced Acting U.S. Attorney Christopher Chiou for the District of Nevada.
Patricia Padilla, 62, of Las Vegas, pleaded guilty to one count of conspiracy to distribute a controlled substance, and one count of conspiracy to import prescription drugs and distributing prescription drugs when not licensed as an importer, wholesaler, a pharmacist, and practitioner. U.S. District Judge James C. Mahan scheduled a sentencing hearing for June 11, 2021.
According to court documents and admissions made in court by Padilla, she owned and operated Sinaloa Store, Inc. (from approximately May 30, 2013 to August 18, 2020) and Deportes Y Mas Store, Inc. (from May 2019 to August 18, 2020), both gift stores in Las Vegas. Padilla would meet “patients” with an alleged medical problem or condition in a back room of a store. On a note card, she would write a “prescription” for controlled substances to treat the alleged medical problem or condition. The patient would then pay an employee at the front of the store to “fill” the prescription. To ensure the stores’ drug inventories were stocked, Padilla conspired with others to import prescription drugs and controlled substances in bulk quantities from Mexico and El Salvador into the United States.
Padilla has no state or federal license that would have permitted her to lawfully prescribe, distribute, or dispense controlled substances. The total amount of drug proceeds seized from Padilla during the investigation was $1,698,655.60.
The maximum statutory penalties faced by Padilla are: (a) 10 years in prison for conspiracy to distribute a controlled substance; (b) five years in prison for conspiracy to import prescription drugs and distributing prescription drugs when not licensed as an importer, wholesaler, a pharmacist, and practitioner; (c) a period of supervised release; and (d) a monetary fine.
The case was investigated by the Drug Enforcement Administration and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Peter S. Levitt is prosecuting the case.
###
Four Additional Members of Los Angeles-Based Fraud Ring Indicted for Exploiting COVID-Relief ProgramsRead the Press Release
A federal grand jury in Los Angeles returned a superseding indictment, unsealed Thursday, charging four additional individuals for their alleged participation in a scheme to submit over 150 fraudulent loan applications seeking over $21.9 million in COVID-19 relief funds guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Manuk Grigoryan, 27, of Sun Valley, California; Arman Hayrapetyan, 38, of Glendale, California; Edvard Paronyan, 40, of Granada Hills, California; and Vahe Dadyan, 41, of Glendale, were each charged in a superseding indictment filed in the Central District of California with one count of conspiracy to commit wire fraud and bank fraud and one count of conspiracy to commit money laundering.
Grigoryan, Hayrapetyan, and Paronyan were each also charged with 11 counts of wire fraud and eight counts of bank fraud. In addition, Grigoryan and Hayrapetyan were each charged with one count of aggravated identity theft. Vahe Dadyan was charged with six counts of wire fraud, three counts of bank fraud, and one count of money laundering.
Grigoryan, Paronyan, and Vahe Dadyan made their initial court appearances before U.S. Magistrate Judge Maria A. Audero of the U.S. District Court for the Central District of California. If convicted, each defendant faces a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The superseding indictment adds charges to previously charged co-defendants Richard Ayvazyan, Marietta Terabelian, Artur Ayvazyan, and Tamara Dadyan for wire fraud, bank fraud, conspiracy to commit money laundering, and aggravated identity theft.
According to the superseding indictment, the defendants conspired together, and with others, as part of a disaster-relief loan fraud ring based in and around Los Angeles, California, and used the fraudulently obtained funds as down payments on luxury homes and to buy gold coins, diamonds, jewelry, luxury watches, fine imported furnishings, designer handbags and clothing, cryptocurrency, and securities.
Richard Ayvazyan and Tamara Dadyan are also charged with committing crimes while they were released on bond awaiting trial. Richard Ayvazyan is charged with five counts of money laundering, and Tamara Dadyan is charged with one count of attempted bank fraud. The superseding indictment alleges that Richard Ayvazyan continued to use his alias “Iuliia Zhadko” to launder the proceeds of the scheme, including by using the money to buy cryptocurrency and securities. As alleged, Tamara Dadyan repeatedly lied to a bank as part of a scheme to unlawfully obtain disaster-relief funds that had been frozen in an account that she had fraudulently opened using a stolen identity.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Tracy L. Wilkison of the U.S. Attorney’s Office for the Central District of California; Special Agent in Charge Kristi Johnson of the FBI’s Los Angeles Field Office; Special Agent in Charge Ryan L. Korner of the IRS Criminal Investigation (IRS-CI) Los Angeles Field Office; Special Agent in Charge Weston King of the Small Business Administration’s Office of Inspector General (SBA-OIG) Western Region; and Special Agent in Charge Jay N. Johnson of the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG) Western Region made the announcement.
The FBI, IRS-CI, SBA-OIG, and FHFA-OIG are investigating the case.
Trial Attorney Christopher Fenton of the Justice Department’s Fraud Section and Assistant U.S. Attorneys Brian Faerstein and Scott Paetty of the U.S. Attorney’s Office for the Central District of California are prosecuting the case.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP, and $10 billion in low-interest loans to small businesses through the EIDL program. In April 2020, Congress authorized over $300 billion in additional PPP funding and $10 billion in additional EIDL funding, and in December 2020, Congress authorized another $284 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities, and fixed-debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used for the same purpose as the PPP funds.
The Fraud Section leads the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP and EIDL funds, as well as numerous real-estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/cares-act-fraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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 Sheriff’s Captain Sentenced to Prison for Illegal Gun Deals and CorruptionRead the Press Release
Assistant U. S. Attorneys Nicholas Pilchak (619) 546-9709 or Andrew Haden (619) 546-6961
NEWS RELEASE SUMMARY – March 12, 2021
SAN DIEGO – Former San Diego County Sheriff’s Captain Marco Garmo was sentenced to two years in prison today for years of unlawful firearms transactions and for an array of corrupt conduct relating to unlicensed marijuana dispensaries operating in his former jurisdiction.
In pronouncing sentence, U.S. District Judge Gonzalo Curiel said that Garmo’s conduct demonstrated arrogance reaching a level where Garmo was “almost becoming a mob boss of sorts” in picking winners and losers and dispensing unlawful favors to friends and family.
Garmo admitted in pleading guilty in September that he had acted as an unlicensed firearm dealer, buying almost 150 weapons and re-selling almost 100 over a period of roughly six years. A number of those transactions involved “straw purchases,” where Garmo acquired firearms for others by falsely claiming that they were for him. This was an important part of Garmo’s firearms dealing because California law limits the initial purchase of certain newer handguns to law enforcement officers only.
In his plea agreement, Garmo admitted that one of his goals in selling so many guns was profit, but another was to curry favor with prominent county residents whom he expected might support his planned run for Sheriff of San Diego County.
Garmo also acknowledged tipping off an illegal marijuana dispensary that he believed was about to be searched by Sheriff’s deputies, in order to give an advance warning to his cousin, who was one of the dispensary’s owners. The unlawful cannabis operation cleared its shelves of cash and valuable products the same night it received Garmo’s warning. And once the dispensary had reopened—after receiving the all-clear from Garmo the following morning—Garmo’s cousin sought his help again weeks later, after the premises was posted with an abatement notice. The warning would have required the dispensary to close its doors and cease its lucrative business, but Garmo forwarded it to an acquaintance employed at the county and asked “Can we push it back?” Garmo’s associate replied, “Yes you can.”
Court documents explain how Garmo also bent his public authority for his private gain by pitching a corrupt “consulting” arrangement to another property owner whose premises had been condemned for hosting a different unlicensed marijuana dispensary. While acting as the chief law enforcement officer in charge of eradicating such unlawful activity, Garmo suggested that the landlord hire Garmo’s co-defendant Waiel “Will” Anton along with Garmo’s associate at the County as outside “consultants” to reopen his property. According to his plea agreement and court filings, Garmo had secretly arranged with the County associate for Garmo to receive a 10 percent kickback on the fees. When the landlord declined the offer, Garmo told the County employee to have the County “piss on” him by way of retaliation.
“This investigation uncovered blatant and repetitive violations of the public trust by a senior law enforcement officer,” said Attorney for the United States Linda Frakes. “Garmo was sworn to uphold the law, but instead he abused his authority and the legal privileges he enjoyed as a police officer for his own personal benefit, and then lied to cover it up. The U.S. Attorney’s Office is committed to ensuring that no public official is above the law.”
Garmo’s unlawful conduct persisted despite repeated warnings and admonitions from his superiors, the ATF, and the San Diego County District Attorney’s Office, according to court filings. Garmo’s firearms dealing resulted in a prior disciplinary warning and his near prosecution by state authorities in 2017, but nevertheless continued with only minor alterations designed to avoid further scrutiny. Garmo’s efforts to avoid answering for his conduct continued even after he was confronted by FBI and ATF agents in February 2019, when he lied repeatedly during an interview. As he admitted in his plea agreement, Garmo lied to agents about tipping off marijuana dispensaries, conducting straw purchases, and receiving money from Anton as part of a separate kickback scheme.
In that enterprise, Anton had set up a different “consulting” venture in which he offered services to applicants for permits to carry a concealed weapon from the County. In exchange for substantial fees, Anton would help his applicants submit their paperwork and secure an appointment with the civilian County staff that processed them. As set out in Court records, Anton’s services included an eight-month reduction in the wait time for the initial appointment with the County—a service that Anton could provide because he had built an unusual relationship with County staff. In particular, the indictment alleges that Anton made an illegal cash payment to a County clerk who ensured favored treatment for his clients. Garmo admitted in his plea papers that his role in Anton’s scheme was to refer “consulting” clients to Anton in exchange for kickbacks of $100 apiece.
According to the indictment, Garmo was a Sheriff’s deputy for the San Diego County Sheriff’s Department for almost 27 years until September 20, 2019. In his plea, Garmo admitted that he was engaged in the unlawful acquisition, transfer, and sale of firearms during his entire tenure as the Captain of the Rancho San Diego Station.
In fact, one of Garmo’s firearms transactions involved a brazen sale inside the Captain’s Office of the Rancho San Diego Station on October 28, 2016. Garmo admitted that on that date, he and co-defendant Giovanni Tilotta (a licensed San Diego gun dealer) sold a Glock handgun, an AR-15 style rifle, and a Smith & Wesson handgun to local defense attorney Vikas Bajaj inside Garmo’s office. Garmo coordinated backdated paperwork to avoid the 10-day waiting period required by California law for handgun purchases, and Garmo supplied Bajaj with misappropriated San Diego Sheriff’s Department-issued ammunition. Garmo acknowledged that this sale violated California law, which requires firearms sales to be conducted at a handful of specific locations such as the dealer’s premises.
Bajaj entered his own guilty plea on December 9, 2020, to a misdemeanor charge of aiding and abetting Tilotta with the entry of false records during the unlawful October 28 sale. According to Bajaj’s plea agreement, he knew that the firearms transfer records were backdated and falsified, but signed the forms and went ahead with the transfer regardless. U.S. Magistrate Judge Jill L. Burkhardt sentenced Bajaj to one year of probation and ordered him to forfeit all four firearms involved in the transaction.
Garmo’s co-defendant and prominent San Diego jeweler Leo Hamel pleaded guilty in November 2019 to aiding and abetting Garmo’s unlicensed dealing. Hamel admitted working with Tilotta to create falsified records to make Garmo’s firearms straw purchases appear legitimate. Hamel also acknowledged that Garmo benefited from his arrangement with Hamel by securing Hamel’s future support for Garmo’s anticipated campaign for Sheriff of San Diego County. Former Sheriff’s Lieutenant Fred Magana pleaded guilty at the same time, acknowledging his role in the straw purchase of two handguns at Tilotta’s gun shop for Hamel.
The next hearing in the ongoing case against Anton and Tilotta is set for April 29, 2021 before Judge Curiel.
In total, approximately 297 firearms and 131,458 rounds of ammunition have been forfeited as part of this investigation. Garmo was also sentenced to pay a fine of $8,350.
Frakes praised the lead prosecutors on the case, Assistant U.S. Attorneys Nicholas Pilchak and Andrew Haden, as well as the talented and dedicated investigators from the ATF and FBI. Frakes added that the U.S. Attorney’s Office wishes to extend its sincerest gratitude to the San Diego County Sheriff’s Department for initiating this investigation, and for their assistance and support throughout its course.
“ATF’s mission of deterring illegal firearms trafficking and violent gun crime is best addressed through cooperative efforts with our partner law enforcement agencies,” said ATF Los Angeles Special Agent in Charge Monique Villegas. “This is an excellent example of working with multiple agencies to protect the public and increase public safety. ATF pledges an unwavering commitment to targeting, identifying and investigating trafficking schemes that divert firearms from lawful commerce into the illegal marketplace.”
FBI Special Agent in Charge Suzanne Turner said, “Former San Diego Sheriff's Department Captain Marco Garmo failed his department, his sworn oath, and the public trust. Today’s sentence demonstrates that no one is above the law – not even a high-ranking law enforcement official. This case demonstrates the FBI's commitment to investigating public corruption at all levels and highlights our dedication to preserving public confidence in law enforcement. SAC Turner further stated, “I want to commend the San Diego Sheriff's Department and the ATF for their partnership and commitment to fully investigating the corrupt actions by this former law enforcement officer.”
U.S. v. Garmo, et. al, 19-CR-4768-GPC
Defendants
Morad Marco Garmo, 52 years old
Leo Joseph Hamel, 62 years old
Giovanni Vincenzo Tilotta, 38 years old
Fred Magana, 42 years old
Waiel Yousif Anton, 35 years old
Summary of Charges
Title 18, U.S.C., Sec. 922(a)(1)(A) – Engaging in the Business of Dealing in Firearms Without a License
Maximum Penalty: Five years in prison
Investigating Agencies
Bureau of Alcohol Tobacco Firearms & Explosives (ATF)
Federal Bureau of Investigation (FBI)
*The charges and allegations contained in an indictment are merely accusations. The defendants are considered innocent unless and until proven guilty.
Former Rohnert Park Police Officers Charged with Conspiracy to Commit Extortion and Related Charges in Marijuana Seizure SchemeRead the Press Release
SAN FRANCISCO – The United States Attorney’s Office for the Northern District of California unsealed charges today in a criminal complaint charging former Rohnert Park police officers Brendon Jacy Tatum and Joseph Huffaker with conspiracy to commit extortion under color of official right, announced Acting United States Attorney for the Northern District of California Stephanie M. Hinds, FBI Special Agent in Charge Craig D. Fair, and Internal Revenue Service-Criminal Investigations Acting Special Agent in Charge Michael Daniels. Tatum also is charged with falsification of records in a federal investigation and tax evasion.
According to the complaint, Tatum, from Santa Rosa, and Huffaker, from Rohnert Park, were employed as officers by the City of Rohnert Park Department of Public Safety Police Services Patrol Division (RPDPS). Tatum was employed with RPDPS between 2003 and 2018, and Huffaker was employed with RPDPS between 2012 and 2019. RPDPS operated an interdiction team between 2014 and early 2017 that conducted traffic stops on vehicles along Highway101 between Cloverdale and Rohnert Park in a program designed to seize illegal drugs. Tatum and Huffaker were both assigned to the interdiction team at various times between 2015 and January 2017—when interdiction operations were terminated by RPDPS.
The criminal complaint describes how Tatum and others allegedly conducted numerous interdictions while on duty, in which Tatum is alleged to have extorted at least $3,700 in cash and significant amounts of marijuana from victim drivers they stopped along Highway 101, by threatening to arrest them and seize the assets and marijuana if the victim drivers did not consent to the seizures. In these cases, Tatum and the other officers made no reports of the seizure, did not submit the marijuana or assets into evidence, and sought no destruction orders for the marijuana. These seizures were completely undocumented by the officers, contrary to policy, but were captured in audio and video footage from the officers’ body-worn cameras.
The undocumented stops and seizures allegedly occurred even after termination of the interdiction team’s operations. On December 5, 2017, the complaint alleges, Tatum and Huffaker stopped a driver along Highway 101. Neither were wearing RPDPS uniforms and they claimed to be ATF agents. The complaint alleges Tatum and Huffaker extorted marijuana from the victim driver and the seizure went completely undocumented. Again, on December 18, 2017, Tatum and another officer stopped another driver carrying 23 pounds of marijuana, packaged in one-pound bags, labeled by date and strain. That driver also had four crates of hash, all destined for a dispensary lab. Again, Tatum and the other officer were not in RPDPS uniforms and identified themselves as ATF agents when they told the driver they would either arrest him and seize the marijuana and hash, or the driver could agree to let them take the marijuana. Tatum and the officer took the marijuana.
In February 2018, the press began reporting on robberies along Highway 101 by purported law enforcement agents, and specifically the robbery that took place on December 5, 2017. These reports indicated that the victims had been interviewed by the FBI. The criminal complaint alleges that Tatum responded by drafting a press release claiming RPDPS was responsible for the December 5, 2017 stop, and then prepared a false police report to conceal his criminal activity.
The complaint also alleges that during 2016, at the same time Tatum was extorting marijuana from drivers along Highway 101, he made hundreds of thousands of dollars in cash deposits into his own accounts, as well as his wife’s bank account. The complaint explains that the deposits all were made in amounts under $10,000, in an apparent attempt to avoid banking laws requiring disclosure of the deposits. In addition, during the same period, Tatum used approximately $46,000 in cash that did not come from any of his accounts to purchase a fishing boat. In summary, the cash deposits into Tatum’s and his family members’ accounts during that year, along with the cash used to purchase the fishing boat, totaled $443,059. The complaint alleges all these assets went unreported on Tatum’s tax returns for 2016.
“The public entrusts police officers to enforce the law,” said Acting U.S. Attorney Hinds. “The public faith erodes when that trust is violated. The abuse of police powers cannot be tolerated and must be vigorously prosecuted.”
“The FBI has a solemn responsibility to investigate allegations of public corruption and the abuse of power by any public servant. The Rohnert Park Department of Public Safety cooperated fully with the FBI to put a stop to this serious breach of public trust and to hold these individuals accountable for their actions,” said FBI Special Agent in Charge Craig Fair. “There is no greater responsibility for law enforcement than to abide by the oath of office and respect the Constitutional rights of all people.”
“The IRS enforces the nation’s tax laws, but also takes particular interest in cases where someone, like Tatum, allegedly deposits large amounts of cash below the Currency Transaction Reporting requirements to evade any filings by financial institutions and evade income taxes from the IRS,” said IRS Criminal Investigation, Acting Special Agent in Charge Michael Daniels. “With both law enforcement and financial investigation expertise, our agents are uniquely qualified to follow these types of financial transactions. Today’s action show the IRS is committed pursing justice for all including those who violate the public trust.”
In sum, Tatum and Huffaker are charged with conspiracy to commit extortion under color of official right, in violation of 18 U.S.C. § 1951. In addition, Tatum is charged with falsifying records in a federal investigation, in violation of 18 U.S.C. § 1519, and tax evasion, in violation of 26 U.S.C. § 7201.
A complaint merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Tatum and Huffaker are scheduled to make their initial appearance on March 12, 2021, before the United States Magistrate Judge Sallie Kim.
If convicted, the defendants face a maximum sentence of 20 years in prison, 3 years of supervised release, and a fine of $250,000 on the conspiracy charge. In addition, Tatum faces a maximum statutory sentence of 20 years on the false records charge and 5 years on the tax evasion charge. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Special Prosecutions Section of the United States Attorney’s Office for the Northern District of California. This case is being investigated by the FBI and the IRS-CI.
Former Federal Prison Official and Factory manager at USP-Marion Sentenced to PrisonRead the Press Release
Benton, Ill. – Shawn E. Whitecotton, 50, of Herrin, Illinois, was sentenced to 16 months confinement today, consisting of 8 months in federal prison and 8 months of home confinement after his release. At his sentencing, United States District Court Judge Staci M. Yandle agreed with federal prosecutors that Whitecotton knowingly obtained thousands of dollars by abusing his management position at the federal penitentiary at Marion, Illinois (USP-Marion), lied about it, and then obstructed justice while trying to cover up his scheme.
“It is important for the community to have faith in our institutions, including our federal prisons,” U.S. Attorney Steven D. Weinhoeft said. “We will always hold public officials accountable if they abuse positions of public trust for their own financial benefit.”
“Whitecotton failed to inform the government that, while he was a UNICOR factory manager, he was also being paid directly by a contractor he oversaw; and he doubled down when he thought he’d get caught. Today’s sentencing shows that there is no place for lying and deceit among federal employees,” said William J. Hannah, Special Agent in Charge of the Department of Justice
Office of the Inspector General Chicago Field Office.Whitecotton was a career federal corrections officer and served as the factory manager of the
UNICOR manufacturing facility operating within USP-Marion. ¹ In 2014, USP-Marion’s UNICOR facility contracted with a private company, PGB Hanger, Inc. (“PGB”), to manufacture wire clothing hangers. As factory manager, Whitecotton was directly responsible for the PGB contract.
Shortly after the work began, Whitecotton approached PGB’s owner and offered to work for PGB as a salesperson – in direct violation of government ethics rules. PGB agreed and they signed a written contract setting Whitecotton’s compensation at $1,500.00 a month, plus a commission for each hanger sold on new accounts and a monthly phone allowance. He then accepted over $20,000.00 in payments from PGB during the following year.
¹ UNICOR is a wholly-owned government corporation administered by the Bureau of Prisons (BOP) that operates manufacturing facilities in certain BOP facilities. The goal is to prepare federal inmates for successful reentry into society by providing them with job training and work skills. UNICOR hires BOP inmates to work in its factories, at different locations. In some circumstances, UNICOR contracts with private vide product manufacturing services.In 2015, while Whitecotton was continuing to work for PGB as a salesperson, he became aware that federal investigators were interviewing staff and inmates working in his factory. Worried that his prohibited job with PGB might be exposed, Whitecotton concocted a cover-up. He amended documents to make it appear that his son had been working for PGB, as opposed to Whitecotton. He also instructed PGB’s owner not to cooperate with investigators if anyone asked for an interview.
Whitecotton further told PGB’s owner that if he did agree to speak to investigators, the owner should say that Whitecotton’s son, not Whitecotton, had been working with PGB as a salesperson and receiving payments for the past year.
Whitecotton further attempted to conceal his prohibited job with PGB by making false statements on certified government forms. As a supervisory employee in the executive branch of the United States, Whitecotton was required to annually report his financial interests, any outside employment activities, and any positions held outside his role at the prison. The purpose of this requirement was to uncover any possible conflicts of interest a supervisory employee may have in the performance of his or her duties. The forms specifically required Whitecotton to disclose any sources of income over $200. At the time, Whitecotton had received over $20,000 in payments from
PGB, but he knowingly failed to disclose that information, to prevent federal investigators from discovering the truth.In December 2020, Whitecotton pled guilty to two counts of making materially false statements related to those government forms.
Along with 8 months in prison and 8 months of home confinement, Judge Yandle ordered Whitecotton to pay restitution in the amount of $23,475.25 – the total amount he earned from PGB. As part of his sentence, Whitecotton was also ordered to serve 10 months on supervised release after his home confinement ends.
This case was investigated by the FBI and Department of Justice Office of the Inspector
General. The case was prosecuted by Assistant United States Attorney Luke J. Weissler.
Final Member of Wausau Methamphetamine Conspiracy SentencedRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Ger Moua, 32, Wausau, Wisconsin, pleaded guilty and was sentenced yesterday by Chief U.S. District Judge James D. Peterson to 66 months in federal prison for distributing methamphetamine and possessing a firearm as a felon.
Moua was a close associate of the leader of the drug trafficking operation, Lisa Xiong, early in the conspiracy. She helped Lisa Xiong by directly distributing methamphetamine and overseeing the money and drug exchanges of lower-level associates in the trafficking operation. Moua’s relevant conduct includes approximately 130 grams of methamphetamine.
During one drug deal in March 2019, Moua brought a firearm for protection and then used the gun as collateral while she awaited a larger methamphetamine supply. Judge Peterson noted the devastation left in the wake of the methamphetamine crisis but emphasized the increased danger to the community when a firearm is possessed during a drug deal.
Moua’s criminal history includes one prior state offense, and she was on supervision for that offense when she participated in this drug-trafficking operation. According to Judge Peterson, her history combined with her methamphetamine distribution and possession of a firearm warranted a lengthy sentence, to provide just punishment and protect the community.
Eleven individuals were charged in an indictment returned by a federal grand jury in September 2019 for their roles in this methamphetamine distribution conspiracy. Charges against one of the original defendants were redacted from the indictment following the death of that individual. Ger Moua is the final defendant to plead guilty and be sentenced. The others are:
1. Meng Xiong, Wausau, was sentenced to 5 years on June 12, 2020;
2. Chou Xiong, Wausau, was sentenced to 78 months on December 8, 2020;
3. Soua Khang, Wisconsin Rapids, Wisconsin, was sentenced to 7 years on December 9, 2020;
4. Lisa Xiong, Wausau, was sentenced to 156 months on December 21, 2020;
5. John Gates, Hewitt, Wisconsin. was sentenced to 5 years on December 23, 2020;
6. Ya Yang, Wausau, was sentenced to 30 months on January 11, 2021;
7. Vang Yang, St. Paul, Minnesota, was sentenced to 30 months on January 21, 2021;
8. Chai Thao, Wausau, was sentenced to 5 years on March 1, 2021; and
9. Chong Chueneng Moua, St. Paul, Minnesota, was sentenced to 84 months on March 2, 2021.
The charges against these defendants was the result of an investigation conducted by the Federal Bureau of Investigation; Central Wisconsin Narcotics Task Force; Marathon County Sheriff’s Office; Wisconsin Department of Justice Division of Criminal Investigation; Lincoln County Sheriff’s Office; Wausau Police Department; Everest Metro Police Department; and Wisconsin State Patrol. The prosecution of the cases has been handled by Assistant U.S. Attorney Diane Schlipper.
Felon Sentenced for Possession of Firearm and AmmunitionRead the Press Release
BOSTON – A Lawrence man was sentenced yesterday for being a felon in possession of a firearm and ammunition.
Nathaniel Toribio, 22, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to 21 months in prison and three years of supervised release. In November 2020, Toribio pleaded guilty to being a felon in possession of a firearm and ammunition. Toribio was federally charged in July 2020.
On Nov. 24, 2019, state parole officers were in Lawrence in an attempt to locate Toribio, who had removed his GPS monitoring device and absconded from parole supervision. Upon locating Toribio, the officers discovered an un-holstered, loaded firearm inside Toribio’s waistband. The firearm was identified as a Ruger Security-9 9mm pistol with 10 rounds of ammunition in the magazine.
Due to previous convictions punishable by more than one year in prison, Toribio is prohibited from possessing firearms and ammunition.
Acting United States Attorney Nathaniel R. Mendell and Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division made the announcement today. Valuable assistance was provided by the Massachusetts Parole Board, Lawrence Police Department and the Essex County District Attorney’s Office. Assistant U.S. Attorney Philip C. Cheng of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Everett Man Charged with Armed Bank RobberyRead the Press Release
BOSTON – An Everett man has been charged in connection with committing armed bank robbery.
Jamaine Howell, 35, was charged by criminal complaint with bank robbery and using a firearm in furtherance of a crime of violence. Howell made an initial appearance yesterday before U.S. District Court Magistrate Judge M. Page Kelley. Howell has been in state custody since his arrest on state charges on Feb. 16, 2021.
According to charging documents, on Feb. 7, 2021, Howell entered a branch of TD Bank on Commonwealth Avenue in Allston and gave a demand note and a plastic bag to the teller. Howell threatened the teller and stated that he had a gun. Howell then allegedly threatened two bank customers and displayed a firearm. After taking his plastic bag – now containing about $5,900 – from the teller, Howell instructed one of the customers to come with him and led the customer out of the bank. After walking about a block with Howell, the customer managed to flee while the defendant was distracted.
It is further alleged that, later that week, police received a report that Howell brandished a firearm at a guest at a hotel in Sharon. On Feb. 16, 2021, police officers arrested Howell, and found him armed with a loaded .45 caliber Ruger handgun. Police also found a loaded semi-automatic shotgun in a vehicle that had previously been rented to Howell.
The charge of bank robbery provides for a sentence of up to 25 years in prison, up to five years of supervised release and a fine of up to $250,000. The charge of using a firearm in furtherance of a crime of violence provides for an additional sentence of five years to be served consecutively to any other sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The Boston, Sharon and Lynn Police Departments provided valuable assistance with the investigation. Assistant U.S. Attorneys Bill Abely and Charles Dell’Anno of Mendell’s Major Crimes Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Drug Trafficker from Ringgold, Louisiana Sentenced to Federal PrisonRead the Press Release
SHREVEPORT, La. - Acting United States Attorney Alexander C. Van Hook announced that James Coleman, 44, of Ringgold, Louisiana, was sentenced by United States District Judge Elizabeth E. Foote to 132 months (11 years) in prison, followed by 5 years of supervised release, for conspiracy to distribute and possession with intent to distribute methamphetamine.
Coleman was involved in a drug trafficking organization that was selling illegal narcotics and was charged in a federal indictment with drug offenses. The investigation that led to these charges began in January 2017. Law enforcement agents learned that Coleman and others were distributing and possessing methamphetamine and crack cocaine. Their investigation revealed that Coleman purchased illegal narcotics from other co-conspirators and then distributed them to various individuals in and around the Ringgold, Louisiana area.
During the investigation, law enforcement agents obtained authority to intercept phone calls on a cell phone belonging to a co-defendant. On several occasions, agents intercepted phone calls wherein Coleman discussed drug trafficking. Agents also conducted controlled purchases of narcotics from Coleman between January 1, 2017 and June 2018. Each purchase took place in the Ringgold area and was video and audio recorded. The narcotics purchased during the controlled buys were sent to the lab for analysis and it was determined that Coleman sold 9.3 grams of crack cocaine and 125.74 grams of pure methamphetamine.
The FBI and members of its Northwest Louisiana Violent Crime Task Force, which included officers from the Bienville Parish Sheriff’s Office, Bossier Parish Sheriff’s Office, Caddo Parish Sheriff’s Office, Desoto Parish Sheriff’s Office, and Louisiana State Police, conducted the investigation. Assistant U.S. Attorney Allison L. Duncan prosecuted the case.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
# # #
Dominican National Sentenced for Fentanyl TraffickingRead the Press Release
BOSTON – A Dominican man previously residing in Lawrence was sentenced today in federal court in Boston in connection with drug trafficking activities involving fentanyl.
Cecilio Guzman, 28, was sentenced by U.S. District Court Judge Patti B. Saris to 29 months in prison. Guzman will face deportation proceedings upon completion of his sentence. In December 2020, Guzman pleaded guilty to one count of distribution and possession with intent to distribute 40 grams or more of fentanyl. Guzman was charged by complaint and arrested by state authorities on Nov. 20, 2019.
Guzman arranged to sell 120 grams of fentanyl to a cooperating witness for the government. On Nov. 20, 2019, Guzman met with the witness in Lawrence, sold him the fentanyl, and was subsequently arrested.
Acting United States Attorney Nathaniel R. Mendell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement today. The investigation was conducted with the assistance of the Andover, Haverhill, Lawrence, Lowell and Wilmington Police Departments. Special assistance was provided by the Essex District Attorney’s Office. Assistant U.S. Attorney Stephen Hassink of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
Detroit Man Sentenced to Federal Prison for Fentanyl DistributionRead the Press Release
BECKLEY, W.Va. – Acting United States Attorney Lisa G. Johnston announced that Honorable United States District Judge Frank W. Volk sentenced Cornelius Pope, 24, of Detroit, Michigan to 12 months and one day in federal prison for distribution of fentanyl and three years of supervised release.
Pope previously pled guilty on October 2, 2020. According to court documents, Pope admitted to distributing fentanyl and heroin on four separate occasions between November 7, 2018 and May 26, 2020, to confidential informants throughout the Beckley area.
Johnston commended the law enforcement officers and Assistant U.S. Attorney Alex Hamner for their excellent work.
“The proliferation of fentanyl in the Southern District of West Virginia and throughout the United States is threatening the lives of countless individuals,” said Acting U.S. Attorney Lisa G. Johnston.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Beckley-Raleigh Drug and Violent Crime Unit.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:20-cr-00085.
Follow us on Twitter: SDWVNews
###
Department of Justice Issues Statement Regarding Decision in Skyworks v. CDCRead the Press Release
Brian M. Boynton, Acting Assistant Attorney General for the Civil Division of the Department of Justice, released the following statement:
"The CDC’s eviction moratorium—which Congress extended last December and the CDC later extended through March 31, 2021—protects many renters who cannot make their monthly payments due to job loss or health care expenses. By preventing people from becoming homeless or having to move into more-crowded housing, the moratorium helps to slow the spread of COVID-19.
The Department of Justice respectfully disagrees with the March 10 decision of the district court in Skyworks v. CDC concluding that the moratorium exceeds CDC’s statutory authority to protect public health. In the Department’s view, that decision conflicts with the text of the statute, Congress’s ratification of the moratorium, and the rulings of other courts.
In any event, the decision applies only to the particular plaintiffs in that case. It does not prohibit the application of the CDC’s eviction moratorium to other parties. For other landlords who rent to covered persons, the CDC’s eviction moratorium remains in effect."
Defendant Sentenced for Involuntary Manslaughter after Killing a Man at Tulsa’s Downtown Bus StationRead the Press Release
A Tulsa man was sentenced today in federal court for involuntary manslaughter in Indian Country after killing Barry James Harrell during a brief altercation in downtown Tulsa, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge Gregory K. Frizzell sentenced Harlan Frank Hardiman, 51, to 24 months in prison followed by three years of supervised release.
“Harlan Hardiman punched Barry Harrell in the head and walked away. When Mr. Harrell fell, his head struck the concrete, and he lay unconscious for 15 minutes before being discovered by a Tulsa police officer. He later died as a result of the injuries sustained at the hands of the defendant,” said Acting U.S. Attorney Clint Johnson. “Harlan Hardiman will now spend the next two years in federal prison for his actions. I am thankful for the Tulsa Police Department and Assistant U.S. Attorney Kevin Fletcher who pursued justice for the victim and his family.”
At a November plea hearing, Hardiman admitted that on Sept. 3, 2020, he punched Harrell in the head at the downtown Tulsa Transit bus terminal located at 319 S. Denver Ave. As a result of the punch, the victim fell and hit his head on the concrete sidewalk. Harrell subsequently died of a massive head bleed, called a subdural hematoma.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Kevin Fletcher is prosecuted the case. AUSA Fletcher is a prosecutor from the Northern District of Iowa. He volunteered to assist prosecution efforts here in the Northern District of Oklahoma due to the increased volume of cases since the Supreme Court’s ruling which stated the Creek Nation Reservation had never been officially disestablished by Congress. The United States and the Muscogee (Creek) Nation have jurisdiction of all cases that occur on the reservation involving Native American victims or defendants.
Daughter of Prolific Mexican Cartel Leader Pleads Guilty to Criminal Violation of the Foreign Narcotics Kingpin Designation ActRead the Press Release
A dual U.S.-Mexican citizen pleaded guilty today to willfully engaging in financial dealings with Mexican companies that had been identified as Specially Designated Narcotics Traffickers by the U.S. Department of the Treasury, Office of Foreign Assets Control (OFAC).
According to court documents, Jessica Johanna Oseguera Gonzalez, 34, of Guadalajara, Mexico, violated the criminal penalties of the Foreign Narcotics Kingpin Designation Act (the Kingpin Act) by engaging in property transactions with six Mexican businesses that OFAC previously designated to be “specially designated narcotics traffickers.” These six businesses were so designated because they provided material support to the Mexican drug trafficking organization known as the Cartel Jalisco Nueva Generacion (CJNG), which was itself designated by OFAC in April 2015. Oseguera Gonzalez’s father, Nemesio Ruben Oseguera Cervantes, aka “El Mencho,” who is the leader of CJNG, and her uncle, Abigael Gonzalez Valencia, who is the leader of the Los Cuinis drug trafficking organization, were also sanctioned by OFAC in April 2015.
“The Kingpin Act is a critically important tool in the U.S. government’s unrelenting efforts to target foreign drug cartels that seek to flood American streets with illegal drugs,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The Department of Justice will aggressively investigate and criminally prosecute those who willfully violate Treasury Department sanctions under the Kingpin Act, as a key component of our broader whole-of-government strategy to dismantle and disrupt foreign drug cartels.”
“Today’s guilty plea is a result of our relentless commitment to disrupt and dismantle all aspects of the CJNG organization,” said Special Agent in Charge Bill Bodner of the Drug Enforcement Administration’s (DEA) Los Angeles Field Division. “Our efforts will continue to include a focus on those who facilitate these illicit drug networks. Together with the Department of Justice, we will use all the investigative tools available, including OFAC designations, to bring to justice those who engage in illegal activity that is fueling the drug crisis nationwide.”
Court documents indicate that Oseguera Gonzalez was an owner of two Mexican companies designated by OFAC, J&P Advertising S.A. de C.V., and JJGON S.P.R. de R.L. de C.V., and that she was an officer, director, or agent of four additional sanctioned businesses, Las Flores Cabanas, Mizu Sushi Lounge, Tequila Onze Black, and Operadora Los Famosos S.A. de C.V., doing business as Kenzo Sushi. She remained an owner, officer, director, or agent of those entities following their OFAC designations, and did not seek the required license from OFAC to engage in those financial transactions.
Oseguera Gonzalez pleaded guilty to willfully violating the Kingpin Act’s prohibitions on engaging in transactions or dealings in property with entities or persons sanctioned under the Kingpin Act, and to being an officer, director, or agent of entities who knowingly participated in Kingpin Act violations. She is scheduled to be sentenced on June 11 and faces a maximum penalty of up to 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The DEA’s Los Angeles Field Division is investigating the case, and the Justice Department particularly thanks the Office of Foreign Assets Control of the Department of the Treasury for its support. The Justice Department’s Office of International Affairs provided investigative assistance.
Trial Attorneys Brett Reynolds, Kaitlin Sahni, and Kate Naseef of the Justice Department’s Narcotic and Dangerous Drug Section are prosecuting the case.
This case received significant support from the Organized Crime Drug Enforcement Task Force (OCDETF) program. The OCDETF program supports investigations around the country to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking, and money laundering organizations and enterprises.
Dallas County Man Convicted at Trial for Child EnticementRead the Press Release
PLANO, Texas – An Irving, Texas man has been convicted of attempted coercion and enticement of a minor in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Cody Ryan Turner, 37, was found guilty by a jury on March 10, 2021, following a three-day trial before U.S. District Judge Sean D. Jordan.
“I commend our law enforcement partners for their vigilance in ensuring the safety of our children,” said Acting U.S. Attorney Nicholas J. Ganjei. “Those who target child victims are the worst among us. Their actions will not be tolerated. The Eastern District of Texas will continue to find such individuals and bring them to justice.”
According to information presented in court, in August 2019, Turner began messaging an individual he believed to be a young teen on a popular social media application. After receiving no response throughout August 2019, he sent a graphic image to the child in December 2019. Turner then messaged the child again in June 2020. The individual who Turner believed to be a teen responded and identified herself as a child. From June-September 2020, Turner sent a series of sexually explicit messages to this individual.
On September 8, 2020, believing that the child was at home attending school online because of COVID, Turner sent a message asking, "want company"? Evidence introduced at trial showed that Turner drove from Irving to a location in Plano to meet the child, at which time he was arrested by a joint law enforcement team comprised of officials from the FBI and the Plano Police Department.
Turner was indicted by a federal grand jury on September 17, 2020. Under federal statutes, he faces a minimum of 10 years and up to life in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being 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 FBI and the Plano Police Department and prosecuted by Assistant U.S. Attorney Marisa Miller and Special Assistant U.S. Attorney Bethany Pickett.
Crow Agency man admits stabbing manRead the Press Release
BILLINGS — A Crow Agency man today admitted stabbing another man last year on the Crow Indian Reservation, Acting U.S. Attorney Leif Johnson said.
Dee Bad Bear, 59, pleaded guilty to an indictment charging him with assault with a dangerous weapon. Bad Bear faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set. Bad Bear was detained.
In court documents filed in the case, the prosecution alleged the assault occurred on April 17, 2020 at a Lodge Grass residence, located on the Crow Indian Reservation. Bad Bear and the victim, identified as John Doe, were drinking alcohol and talking. Doe went to the bathroom and when he came out, Bad Bear slashed him with a knife. Doe was treated for injuries at a hospital in Billings. A knife matching a description by the victim was recovered from Bad Bear’s car.
Assistant U.S. Attorney Jeanne Torske is prosecuting the case, which was investigated by the FBI.
XXX
Convicted Felon, Drug User, and Domestic Abuse Misdemeanant Who Possessed a Firearm Sentenced to Federal PrisonRead the Press Release
A man who possessed a loaded pistol was sentenced March 12, 2021, to more than one year in federal prison.
David Devall, age 43, from Sioux City, Iowa, received the prison term after an October 13, 2020, guilty plea to being a felon, drug user and domestic abuse misdemeanant in possession of a firearm and ammunition. Devall was previously convicted of felony and domestic abuse crimes which made it illegal for him to possess a gun.
Evidence at Devall’s, detention, change of plea, and sentencing hearings revealed that on in the early morning hours of December 17, 2019, officers with the Sioux City, Iowa, police department observed a suspicious vehicle in an area behind a closed business. An officer in an unmarked vehicle began following the suspicious vehicle, and learned the vehicle was registered to Devall through the license plate. Shortly thereafter, the vehicle accelerated away and travelled in excess of 65 mph for an unspecified distance. The officers following Devall noted that the vehicle, which had slowed significantly, was making a series of suspicious turns down various streets in Sioux City. A marked police unit was summoned, which activated its emergency lights and followed the defendant into the drive-through of a closed McDonald’s restaurant, where the vehicle was stopped. Officers observed the driver, who was later found to be Devall, making movements inside the vehicle, at which time he was ordered to exit the vehicle. During a search of the car, officers located a black backpack behind the front passenger’s seat, inside of which were two baggies, a jar containing marijuana, a marijuana pipe, a methamphetamine pipe, a scale, methamphetamine, and a loaded 9mm Smith & Wesson handgun. There was a round in the chamber of the gun and 14 rounds in the magazine.
Devall was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Devall was sentenced to 16 months’ imprisonment. He must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
Devall is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from our Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was investigated by the Sioux City, Iowa Police Department and the U.S. Department of Justice’s Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4007.
Follow us on Twitter @USAO_NDIA.
Child Predator and Cyberterrorist, Buster Hernandez, aka "BrianKil," is Sentenced to 75 years in Federal PrisonRead the Press Release
Indianapolis – Acting U.S. Attorney John Childress announced today that Buster Hernandez, 29, of Bakersfield, California, was sentenced to 75 years in federal prison by U.S. District Judge Tanya Walton Pratt.
In August 2017, Hernandez was initially charged with sexually exploiting a minor, threatening to use an explosive device and threatening to kill, kidnap, or injure another person. Those charges eventually extended to include 41 separate allegations including: the production of child pornography, the coercion and enticement of minors, the receipt and distribution of child pornography, the threatened use of explosive devices, extortion, threats to kill, kidnap or injure other persons, witness tampering, obstruction of justice and retaliation against a victim. The offense conduct included the actual or attempted sextortion of at least 375 victims including those from two foreign countries, threats to kill, rape, and kidnap hundreds and threats to use explosive devices against Plainfield and Danville High Schools, the Shops at Perry Crossing, and a local Walmart.
“Today we mark, with quiet satisfaction, that here evil has been met with justice. Conduct like this falls so far outside even the most basic understanding of human decency and compassion that our natural inclination might be to look away from this horrible spectacle,” said Childress. “We cannot do so. We must acknowledge that evil such as this exists in our world so that we might give thanks for those brave men and women who give their all to see that it does not prevail and so that we are all reminded to do whatever we must to protect our children.”
“Today also marks a milestone in a long and complex case that represents the efforts of an extremely talented group of federal prosecutors and law enforcement and state and local law enforcement from across the county. Sadly, but with hope for the future, today also allows us to importantly acknowledge the many victims of the defendant and even more importantly allows us to express our solidarity with them and to pledge our continued efforts in support of their healing.”
In December of 2015, the Brownsburg Police Department contacted the FBI asking for assistance with a cyber-threat case involving a minor female victim (Victim 1) who was a resident of Plainfield, Indiana. For approximately 16 months, Hernandez used Facebook under different aliases to communicate with Victim 1 to extort sexually explicit pictures from her. This crime is commonly referred to as “sextortion.”
When Victim 1’s mother intervened, and refused to provide additional images, Hernandez, using the alias, “Brian Kil” threatened to kill Victim 1, her mother, younger sister, and boyfriend. Hernandez also posted on Facebook that he intended to bomb Plainfield and Danville High Schools, The Shops at Perry Crossing, and Walmart in the Plainfield area.
Hernandez posted, “I am coming for you. I will slaughter your entire class and save you for last.” He further made threats to law enforcement saying, “I will add a dozen dead police to my tally…Try me pigs, I will finish you off as well.” Hernandez also threatened school administrators and parents.
In the interest of public safety, school administrators decided to close the Plainfield and Danville High Schools and The Shops at Perry Crossing in Plainfield was also evacuated and closed until Dec. 19, 2015.
In response to the threats, Plainfield school administrators and law enforcement scheduled a community forum at the high school. More than 1000 people attended. As part of his criminal tradecraft, Hernandez used counterintelligence at the forum. He coerced Victim 3, whom he had been extorting for years, to attend the forum, take notes, and record law enforcement’s statements about the investigation into “Brian Kil.” Hernandez then posted information about the forum to make it appear as though he lived among his victims and could harm them at any moment. When discussing sending Victim 3 to the community forum, Hernandez said to Victim 3, “a lot of people think im too far to do anything. Thanks to you ill be quoting [expletive] directly from the forum. People are going to think twice about their kids safety after that.”
Hernandez also sexually exploited and threatened several other minor victims in Hendricks County and other cities in Indiana. When victims stopped complying with his demands, he posted sexually explicit images and videos that the victim had sent against their will and often threatened to kill them and their families.
Hernandez also used sophisticated methods to obfuscate his identity and encrypt his devices. In the summer of 2017, the FBI discovered that the person using the moniker “Brian Kil” and hundreds of other aliases was an unemployed 26-year-old male named Buster Hernandez. Hernandez was living with his girlfriend and her 85-year-old grandmother in Bakersfield California. In total, Hernandez victimized no less than 375 victims from around the country.
This investigation was jointly conducted by the FBI, the Indiana State Police, the Plainfield Police Department, the Brownsburg Police Department, and the Washington County Maryland Sheriff’s Office.
“Mr. Hernandez has been sitting in a jail cell for more than three years since a collective law enforcement effort put an end to his reign of terror, and today’s sentence ensures he will remain behind bars for a very long time, unable to victimize anyone else, ever again,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “The communities of Plainfield and Danville, and those in other states where he victimized young girls, can rest easy knowing the FBI and our partners worked tirelessly and used all our resources to find him and bring this day about.”
The Indiana State Police proudly stands with our law enforcement partners as this complex case comes to a close and a person is held accountable for their actions that affected so many people,” said Indiana State Police Superintendent Doug Carter.
“The Plainfield Police Department is very pleased with the outcome of this multi-jurisdictional and nationwide investigation, prosecution and sentencing,” said Plainfield Police Chief Jared McKee. “Our hope is that the conviction and sentencing of this perpetrator is a relief to the many victims seeking closure. The countless victims, Town of Plainfield residents, the entire Plainfield Community School Corporation, and communities all over the country can find comfort in knowing that justice has been served. Our agency would like to thank the efforts of our federal, state, and local partners in bringing this case to closure, including the FBI, the U.S. Attorney’s Office for the Southern District of Indiana, the Indiana State Police and the Brownsburg Police Department.”
“This investigation is a shining example of the local, state, and federal cooperation that exists to effectively investigate and capture the predators that focus upon our children, said Brownsburg Police Chief Joseph Grimes. “The Brownsburg Police Department is proud to be part of the team that makes the protection of our children a priority and does not waiver in its stance to effectively locate and apprehend those who seek to bring them harm. We stand steadfast in support of the victims in their time of healing, as they are the true heroes in demonstrating bravery through adversity.”
According to Assistant U.S. Attorney Tiffany J. Preston, who prosecuted this case for the government, Hernandez must also serve a lifetime of supervised release following his imprisonment.
Attached to this release is a list of other account usernames that Hernandez used to communicate with his victims. If you believe you have been a victim of sextortion by Buster Hernandez, a/k/a Brian Kil, a/k/a Purge of Maine, and or any of the usernames listed, please contact the Indianapolis FBI Office at 317-595-4000, Option 2, or submit the information to https://www.fbi.gov/tips.
In November of 2020, Acting U.S. Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to prosecute those who exploit and harm children, produce and distribute child pornography, and use sextortion. See U.S. Attorney’s Office, Southern District of Indiana Strategic Plan Section 4.1 and 4.4.
Hernandez User NamesCañon City Man Charged for Interfering with Flight CrewRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announced that Landon Perry Grier, 24, of Cañon City has been charged with interfering with a flight crew in violation of Title 49, United States Code, Section 46504. Grier made his initial appearance in federal court in Denver yesterday, where he was advised of the charge against him and ordered released on conditions of pre-trial supervision.
According to the facts contained in the complaint, on March 9, 2021, Grier was a passenger onboard Alaska Airlines flight 1474 traveling from Seattle to Denver. During the flight, Grier was asked eight to ten times to put on a face mask, as required by airline policy. Grier initially ignored the flight attendant, but then struck her arm. Later, passengers notified a different flight attendant that Grier was urinating in his seat. A flight attendant notified the captain. When the captain was notified, he was preparing to land after declaring an emergency for an unrelated maintenance issue.
Interfering with a flight crew carries a potential penalty of up to 20 years in prison and/or a fine of up to $250,000.
The charge in the criminal complaint is an allegation and the defendant is presumed innocent until proven guilty.
The investigation was conducted by the Federal Bureau of Investigation with substantial assistance from the Denver Police Department. Assistant United States Attorneys Brad Giles and David Tonini are handling the prosecution.
Case number: 21-mj-00038-MEH-1
# # #
Visit our website http://www.justice.gov/usao/co | Follow us on Twitter @DCoNews
Sign up for new releases [email protected]
California man pleads guilty to email compromise scheme that stole millions from Northwest maritime construction firmsRead the Press Release
Seattle – A 44-year-old Inglewood, California, man pleaded guilty today in U.S. District Court in Seattle to an email compromise scheme that stole more than $3.3 million from a boat-building company, announced Acting U.S. Attorney Tessa M. Gorman. LESLIE REDD III, pleaded guilty to conspiracy to commit wire fraud and wire fraud. He is scheduled for sentencing before Chief U.S. District Judge Ricardo S. Martinez on June 25, 2021.
According to records filed in the case, including the plea agreement, in October 2018, REDD entered a scheme with a co-conspirator in Pennsylvania and others. The scheme began when a malicious link was sent to an email address of an employee at the engine-building company. The link allowed the conspirators to gain access to the company’s email system and review various emails such as invoices. The conspirators then posed as a billing executive at the engine manufacturing company and sent the boat-building company instructions to wire the payment funds to a specific bank account. The conspirators had set up a fake company and the account at a Pennsylvania bank specifically to receive these funds. The false emails indicated the engine-building company’s usual bank account was undergoing an audit and said that the engine-building company therefore needed to use a different bank than it had previously.
On October 29, 2018, the boat builder paid the invoice for $3,316,730 by wiring the funds as directed by the fraudulent emails. The co-conspirator in Pennsylvania quickly forwarded $3,074,500 to bank accounts controlled by REDD and other co-conspirators. Of the ill-gotten funds, REDD kept $857,350 in accounts he controlled. Investigators were able to seize $420,817 from those accounts.
As part of his plea agreement REDD has agreed to forfeit the money in his bank account and make restitution in an amount to be agreed upon at sentencing. Both wire fraud and conspiracy to commit wire fraud are punishable by up to 20 years in prison.
The case is being investigated by the FBI Seattle Office Cyber Task Force.
The case is being prosecuted by Assistant United States Attorney Andrew Friedman.
Belizean National Convicted of Using Fraudulent Immigration and Social Security Cards at Nevada DMVRead the Press Release
LAS VEGAS, Nev. – A federal jury convicted a Belize citizen yesterday for using a fraudulent United States Permanent Resident Card and a fake Social Security card (listing a Social Security number not assigned to him) while applying for a "Real ID" identification card at a Nevada Department of Motor Vehicles office in Henderson.
After a four-day jury trial, Rickon Amyon Wade, aka “Ricky Wade,” 35, was found guilty of one count of Fraud and Misuse of Visas, Permits, and Documents, and one count of Misuse of a Social Security Number. A sentencing hearing has been scheduled for June 16, 2021, before U.S. District Judge Gloria M. Navarro.
According to court documents and evidence presented at trial, on October 1, 2020, Wade applied for a Nevada Real ID identification card at a DMV office in Henderson. As part of the application process, Wade filled out a form and provided a DMV Field Technician with a United States Permanent Resident Card and Social Security card as identification. The Field Technician could not validate and verify the identification cards Wade presented. Wade had obtained the counterfeit immigration and Social Security cards from a street vendor in California.
An investigation revealed that Wade traveled from Belize to Mexico and entered the United States at a Texas Port of Entry in January 2000, as a temporary visitor for pleasure or tourism. He was authorized to stay in the United States until July 2000. Because Wade did not have a pending application with U.S. Customs and Immigration Services to remain in the United States after July 2000, his continued stay was unlawful.
Wade faces a maximum sentence of 15 years in prison, supervised release, and a monetary fine.
Acting U.S. Attorney Christopher Chiou for the District of Nevada, Special Agent in Charge Francisco Burrola for Homeland Security Investigations (HSI), and Special Agent in Charge Robb Stickley for the Social Security Administration (SSA), Office of the Inspector General (OIG), San Francisco Field Division made the announcement.
The case was investigated by HSI and the SSA-OIG after referral by the Nevada Department of Motor Vehicles Compliance Enforcement Division. Assistant U.S. Attorneys Jessica Oliva and Kimberly Frayn are prosecuting the case.
###