Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 9 December 2020
Penfield Man Pleads Guilty to Bilking Investors Out of Hundreds of Thousands of DollarsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Brian L. Schumacher, 55, of Penfield, NY, pleaded guilty before Senior U.S. District Judge William M. Skretny to conspiracy to commit wire fraud. The charge carries a maximum penalty of 20 years in prison and a fine of $250,000.
Assistant U.S. Attorney Charles M. Kruly, who is handling the case, stated that, according to a previously-filed criminal complaint and the defendant’s plea agreement, between April and December of 2016, the defendant conspired with others to defraud two investors out of hundreds of thousands of dollars. The actions of Schumacher and others led investors, located in Massachusetts and California, to wire significant amounts of funding to Schumacher’s company, Integra Diamonds, located in Rochester, NY, to enable Integra Diamonds to purchase diamonds in Africa.
The Massachusetts victim (Victim 1) was contacted by a co-conspirator of the defendant, who initially indicated that an investment of $100,000.00 would yield a minimum profit of $60,000.00 in one year. Skeptical because of the generous return that was promised, Victim 1 sought assurances that he was not the initial or sole investor in Integra Diamonds. Subsequently, Victim 1 received documents that falsely suggested that Integra Diamonds had other investors, and which also falsely claimed that Integra Diamonds had agreements with a logistics vendor and U.S.-based diamond purchasers. On June 16, 2016, Victim 1 wire transferred $100,000.00 from his bank account to an account in the name of Integra Diamonds. During the course of the conspiracy, $30,000 was returned to Victim 1, but not the remaining $70,000 of his initial investment nor any of the promised return. $44,000 of Victim 1’s funds were attempted to be wired to Schumacher while he was in Sierra Leone to purchase diamonds. When that wire was unsuccessful, $44,500 was returned to a co-conspirator’s personal bank account.
Victim 2, a resident of California, also invested $100,000.00 in Integra Diamonds, after receiving a promise for a significant return. On December 2, 2016, Victim 2 wire transferred $100,000.00 from his bank account to an Integra Diamonds bank account. Schumacher then withdrew $90,000 in cash from Victim 2’s investment, which he spent on expenses associated with another trip to Sierra Leone to purchase diamonds. Schumacher used Victim 2’s money to purchase, among other things, 1,211.85 carats of industrial diamonds for $30,296.25. Schumacher then resold those diamonds to a U.S. diamond broker for $11,514, none of which was returned to Victim 2. Over the course of the next year, Victim 2 made multiple requests for status updates and for return of his fund. Schumacher provided a number of excuses for the failure of Victim 2's investment, including that the diamond purchase was simply taking longer than expected and that the original diamond purchase fell through. Victim 2 was also informed that Schumacher was trying to secure another deal. Ultimately, Integra Diamonds did not repay Victim 2 any portion of the $100,000 loan principle, or any interest.
The plea is the result of an investigation by the U.S. Postal Inspection Service, under the direction of Boston Division Inspector-in-Charge Joseph W. Cronin, and the Internal Revenue Service, Criminal Investigations Division, under the direction of Jonathan D. Larsen, Special Agent-in-Charge.
Sentencing is scheduled for March 24, 2021, before Judge Skretny.
# # # #
Parkersburg Man Sentenced to Four Years in Federal Prison for Dealing MethamphetamineRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today that Andrew Martin Hopkins, 58, of Parkersburg, was sentenced to 48 months in prison pursuant to his previous guilty plea to possession with intent to distribute methamphetamine.
“Hopkins had over 100 grams of meth that was 96% pure,” said United States Attorney Mike Stuart. “Another significant prison sentence for a dealer of this deadly drug.”
Hopkins previously admitted that he was driving a pickup truck in Vienna on May 19, 2019, when he was pulled over by an officer with the Vienna Police Department near the intersection of Grand Central Avenue and 21st Street for displaying a license plate that belonged on a vehicle of a different make and model. After the officer determined that Hopkins could not produce proper registration or proof of insurance for the vehicle, a K-9 was requested to respond to the scene of the traffic stop. After the K-9 arrived, it was deployed on the vehicle and provided a positive indication for the presence of controlled substances. Officers then searched and located methamphetamine inside the truck as well as on Hopkins’ person. A total of 102.85 grams of methamphetamine was located during the search, along with $3,631 in United States currency. This methamphetamine was sent to a laboratory and was confirmed to have a purity of 96%. Hopkins admitted to possessing the entire amount of methamphetamine and having the intention to distribute it to other people. Hopkins also admitted to selling methamphetamine to a confidential informant working with law enforcement officers on four different occasions.
The Vienna Police Department, the Parkersburg Narcotics Task Force, and the Federal Bureau of Investigation (FBI) conducted the investigation. Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00003.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Ohio Man Sentenced to Five Years in Federal Prison for Methamphetamine OffenseRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today that Devante Terrell Hatch, 28, of Akron, Ohio, was sentenced to 60 months in federal prison for possession with intent to distribute methamphetamine.
“This Akron drug dealer was caught with more than four pounds of meth in his vehicle,” said United States Attorney Mike Stuart. “And now he’ll be spending the next five years in federal prison.”
On February 25, 2019, the Parkersburg Narcotics Task Force (PNTF) received a tip that a large load of drugs was being delivered to a specific apartment on Staunton Avenue between 9:00p.m. and 11:00p.m. and that it would be coming from Akron, Ohio in a vehicle with Ohio license plates. Uniformed Parkersburg Police Officers began surveilling the area. At 10:05 p.m., they observed a GMC Terrain with Ohio license plates pull into the alley behind Staunton Avenue and park directly behind the apartment. Officers approached Hatch, who was driving the vehicle. Hatch claimed to be there to visit his girlfriend, but he could not tell them where she lived. The officers smelled marijuana and asked Hatch whether he had any in the vehicle. Hatch admitted that he did, and officers searched the vehicle. The officers located and seized two backpacks containing marijuana and more than four pounds of methamphetamine. At the plea hearing, Hatch admitted that he intended to distribute the methamphetamine in Parkersburg.
The Parkersburg Narcotics Task Force and the Parkersburg Police Department conducted the investigation. United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Joshua C. Hanks handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00061.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Northern District of Iowa Assistant United States Attorney Recognized for Superior PerformanceRead the Press Release
Assistant United States Attorney (AUSA) Daniel Chatham of the U.S. Attorney’s Office in the Northern District of Iowa was recognized by the U.S, Department of Justice’s Executive Office for U.S. Attorneys (EOUSA) with the a Director’s Award for Superior Performance as an AUSA. United States Attorney Peter E. Deegan, Jr. presented Mr. Chatham with the award on December 2, 2020.
Mr. Chatham was recognized for his superior performance as a Criminal AUSA. Since 2010, Mr. Chatham has been the Northern District of Iowa United States Attorney’s Office’s chief opioid prosecutor. During this time, he has prosecuted over 80 opioid cases, approximately 40 of which involved opioid deaths or injuries. These prosecutions have included six opioid overdose trials. As a result of his work, Mr. Chatham has developed a nationally recognized expertise in the investigation and prosecution of overdose cases. His expertise has led to nationwide invitations to speak on the subject, and frequent consultations with AUSAs from across the country. This award recognizes that Mr. Chatham has been instrumental in the Department of Justice’s battle against opioid abuse.
Mr. Chatham has prosecuted the most difficult and noteworthy opioid cases in the Northern of District of Iowa for the last decade. In 2015, he prosecuted the first known fentanyl dealer in the Cedar Rapids. In response to a substantial short-term increase in opioid overdoses in the Cedar Rapids area in early 2015, investigators and Mr. Chatham aggressively investigated the sources of the fentanyl-laced heroin that was being transported to Iowa from Chicago. Ultimately, Mr. Chatham prosecuted four defendants for distributing these drugs – drugs that resulted in two deaths and six serious bodily injuries. The lead defendant was sentenced to life imprisonment.
Another noteworthy case prosecuted by Mr. Chatham involved a street-level heroin dealer in Dubuque, Iowa, in early 2016. After returning from a resupply trip to Chicago, the dealer sold several grams of purported heroin to one of his customers. The customer provided portions of the purported heroin to three friends in his car, and then another individual inside a nearby apartment. Two of the friends in the car nearly immediately overdosed, requiring lifesaving measures by first responders. The individual inside the apartment was found deceased the next day. Laboratory analysis of the substances found in the car and apartment determined that the substance the dealer sold actually contained heroin and furanyl fentanyl, a fentanyl analogue that was not on the controlled substances schedules. With Mr. Chatham as lead counsel at trial, the dealer was convicted of distribution of, and conspiracy to distribute heroin and furanyl fentanyl resulting in two serious bodily injuries and a death. The dealer was sentenced to 252 months’ imprisonment.
Applying the principles he learned from these prior prosecutions, AUSA Chatham prosecuted another defendant in 2018 for distribution of heroin resulting in death. This case again involved complicated issues of multiple drug toxicity, this time involving cocaine and heroin. Mr. Chatham successfully prosecuted the defendant, with a jury finding that the heroin, and not the cocaine, caused the victim’s death. The defendant was sentenced to life imprisonment.
“Through his outstanding work, Assistant United States Attorney Dan Chatham has prosecuted the most difficult cases involving incredibly dangerous opioids at a time when the nation has been going through an opioid crisis,” said United States Attorney Peter E. Deegan, Jr. “Mr. Chatham showed tireless dedication, hard work, and an unyielding pursuit of justice while ensuring that those who distributed drugs that hurt and killed others were held accountable for their actions.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Follow us on Twitter @USAO_NDIA.
Northern California Man Indicted for Attempted Child Sex TraffickingRead the Press Release
RENO, Nev. – A Northern California resident had his initial appearance in federal court today following his arrest for attempted child sex trafficking, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada.
A federal grand jury returned an indictment charging Jeffrey Lofstead, 63, of Kings Beach, Placer County, California, with one count of attempted sex trafficking of children. He was arraigned before U.S. Magistrate Judge William G. Cobb, who scheduled a jury trial on February 8, 2021.
According to allegations made in the indictment, on or about October 7, 2020, Lofstead attempted to recruit and solicit a child, who had not yet attained 18 years, to engage in a commercial sex act.
If convicted, the statutory maximum penalty is life in prison.
An indictment merely alleges that a crime has been committed. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI’s Northern Nevada Child Exploitation and Human Trafficking Task Force, which includes the FBI; Reno Police Department; Washoe County Sheriff's Office; Nevada Attorney General's Office; Carson City Sheriff's Office; Douglas County Sheriff's Office; Nevada Highway Patrol; Nevada Department of Corrections; University of Nevada, Reno Police Department; and the Sparks Police Department. Assistant U.S. Attorney Peter Walkingshaw is prosecuting 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 Department of Justice’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
###
North Adams Man Sentenced to 30 Years in Prison for Distributing Fatal Drug to Young Afghanistan Veteran, and Then Incinerating His Body to Destroy EvidenceRead the Press Release
KALAMAZOO, MICHIGAN — On 7 December 2020, Damiane Buehrer, 43, was sentenced to serve 30 years in the Federal Bureau of Prisons for distributing a fatal dose of the deadly synthetic opioid carfentanil to Tyler Herendeen, then a resident of Hillsdale County.
In the early evening hours of 11 January 2017, on a remote section of Voorheis Rd. in Hillsdale County, Somerset Township firefighters responded to a 911 call reporting a blazing fire that had fully engulfed a Ford Escape. After the fire was extinguished, a badly burned human body was discovered in the trunk-space of the car. The body was subsequently identified through dental records as that of 30-year-old Herendeen, a life-long resident of Hillsdale County and an honorably-discharged member of the Michigan Army National Guard who had served in the Afghanistan war. Subsequent investigation by the Michigan State Police and the FBI determined that the cause of death was ingestion of carfentanil, an extremely toxic synthetic opioid that is increasingly being found in heroin mixtures. Indicted in April 2019, Buehrer pled guilty a few days before trial in July 2020 to giving the drug to Herendeen, and also admitted that he burned Herendeen’s body after he died in an effort to destroy evidence.
“Hopefully, the conviction and sentence in this case will provide Tyler’s family and friends with the comfort of knowing that justice was done, that Buehrer is out of circulation for decades to come, and that no one else will suffer the same fate as Tyler because of him. The sentence in this case should also send a clear message to anyone involved in illegal opioid distribution that the West Michigan law-enforcement community will come after them, and that they risk decades in prison every time they give another person their drugs,” said U.S. Attorney Andrew Birge.
“The death of Tyler Herendeen resulted from a tragic series of events brought about by Mr. Buehrer’s callous disregard for the lives of those to whom he gave drugs,” said David G. Nanz, Acting Special Agent in Charge of the FBI in Michigan. “No part of our country has been spared the effects of the opioid crisis. Those who engage in the illegal distribution of drugs will be held responsible for the inevitable consequences of their criminal behavior.”
“Today will hopefully provide some small amount of closure to the Herendeen family, as well as all who knew and cared about Tyler,” said Detective Sergeant David Stamler of the Michigan State Police, Jackson Post. “After many years of destructive behavior, Damiane Buehrer will no longer be a danger to the Hillsdale community. The Michigan State Police would like to thank the US Attorney’s Office for the Western District of Michigan, as well as the FBI, for the many long hours of assistance provided to the MSP over the last three years. These partnerships often make the difference in bringing a successful conclusion to investigations that take such devastating tolls on Michigan families.”
The case was investigated by the Federal Bureau of Investigation and the Michigan State Police. Michigan State Police troopers and detectives responded to the initial scene of the fire and investigated the case in collaboration with the FBI. The case was prosecuted by Assistant
U.S. Attorneys Hagen W. Frank and Kate Zell, who also prosecuted Buehrer for engaging in interstate dog fighting for profit. Buehrer was sentenced in October 2018 to serve a 46-month- sentence in the Federal Bureau of Prisons for the dog-fighting offense, while the investigation into Herendeen’s death continued. Buehrer will be required to complete the prison term for the dog-fighting case before he begins serving his 30-year-sentence.
###
New York Man Sentenced to Prison for Defrauding Sprint CorporationRead the Press Release
PITTSBURGH, PA – A resident of New York, NY was sentenced in federal court to charges of fraud conspiracy and aggravated identity theft, United States Attorney Scott W. Brady announced today.
Ramses Nathaniel Acosta, 39, was sentenced on two counts before United States Senior District Judge Joy Flowers Conti.
According to information provided to the court, Acosta, in a multi-state scheme, defrauded Sprint Corporation by using counterfeit drivers’ licenses to purchase cell phones and electronics in the identities of existing Sprint customers.
Judge Conti sentenced Acosta to 27 months’ incarceration, and two years’ supervised release.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
Agents from Homeland Security Investigations conducted the investigation leading to the prosecution of Acosta.
More Than 100 Firearm “Switch” Devices Seized from Suburban Chicago Home; Devices Are Capable of Turning Handguns into Machine GunsRead the Press Release
CHICAGO — A suburban Chicago man was arrested on a federal firearm charge after law enforcement this week seized machine guns and more than 100 “switch” devices from his home. Each device is capable of converting a semi-automatic pistol into a machine gun.
LEONARD D. JOHNSON, also known as “Scrap,” 32, of Robbins, is charged with one count of illegal possession of a machine gun. Johnson was arrested Monday after agents from the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives executed a search warrant at his home. The agents seized five firearms, including three machine guns, and approximately 117 “switch” devices, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago.
Johnson made an initial court appearance Tuesday before U.S. Magistrate Judge Jeffrey T. Gilbert in Chicago and was ordered to remain in federal custody. A detention hearing is scheduled for Friday at 1:00 p.m.
The arrest was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of ATF. Valuable assistance was provided by the Lansing Police Department and Midlothian Police Department. The government is represented by Assistant U.S. Attorney Charles W. Mulaney.
Holding illegal firearm offenders accountable through federal prosecution is a centerpiece of Project Guardian and Project Safe Neighborhoods. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the Guardian and PSN programs to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
“Machine guns pose a dangerous threat to public safety and have no place on Chicago-area streets,” said U.S. Attorney Lausch. “Federal law enforcement will act swiftly to neutralize the threat posed by illegal machine guns and keep our communities safe.”
“This case is an excellent example of continued partnership,” said ATF SAC deTineo. “ATF agents, in coordination with local law enforcement and federal prosecutors, will investigate and prosecute those in possession of these illegal firearms.”
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The charge in the complaint is punishable by up to ten years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Mescalero Apache man sentenced to federal prison for chainsaw attackRead the Press Release
ALBUQUERQUE, N.M. – Josea Michael Kazhe, 20, of Mescalero, New Mexico, and an enrolled member of the Mescalero Apache Tribe, was sentenced on Dec. 8 to 18 months in federal prison after pleading guilty to assault resulting in serious bodily injury.
In his plea agreement, Kazhe admitted to assaulting another man with a chainsaw on the Mescalero Apache Reservation on Dec. 24, 2019. The victim’s injury was so serious he required emergency transportation to University Medical Center in El Paso.
Following his prison term, Kazhe will serve two years of supervised release.
The FBI investigated this case with the Bureau of Indian Affairs. Assistant U.S. Attorney Aaron O. Jordan prosecuted the case.
Member of Neo-Nazi Group Sentenced for Plot to Target Journalists and AdvocatesRead the Press Release
Johnny Roman Garza, 21, a member of the Neo-Nazi group Atomwaffen Division, was sentenced today to 16 months in prison and three years of supervised release for his role in a plot to threaten and intimidate journalists and advocates who worked to expose anti-Semitism.
Garza previously pled guilty in the U.S. District Court for the Western District of Washington to conspiring with other Atomwaffen members to commit three offenses against the United States: interference with federally-protected activities because of religion, in violation of Title 18, U.S. Code, Section 245; mailing threatening communications, in violation of Title 18, U.S. Code, Section 876; and cyberstalking, in violation of Title 18, U.S. Code, Section 2261A.
“The United States and other nations fought a global war to rid the world of murderous threats and violence by Nazis. The nation and its allies defeated Nazi Germany, but Nazi-inspired threats and violence continue to plague this nation and others 75 years after the end of World War II. The defendant threatened a Jewish journalist and conspired to intimidate journalists and advocates who worked to expose anti-Semitism around the country,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Threats motivated by religious intolerance are unacceptable, and so too are threats aimed at those who work to end such discrimination. The Justice Department will continue the fight against neo-Nazi-related threats and violence and is committed fully to investigating and prosecuting anyone who commits hate crimes.”
“While this defendant did not hatch this disturbing plot, he enthusiastically embraced it, researching addresses for journalists and those who oppose hate in our communities,” said Brian T. Moran U.S. Attorney for the Western District of Washington. “Ultimately in the dark of night he delivered a hateful, threatening poster -- spreading fear and anxiety. Such conduct has no place in our community.”
“Protecting our communities from terrorism, both domestic and international, is a top priority for the FBI,” said FBI Seattle Acting Special Agent in Charge Earl Camp. “Mr. Garza, along with his conspirators, targeted and intimidated journalists from minority groups with communications threatening violence. We are proud of the collaborative nationwide efforts of the FBI’s Joint Terrorism Task Forces and other law enforcement partners to hold these individuals accountable for their actions.”
In his plea agreement, Garza admitted that he conspired with the other defendants via an encrypted online chat group to identify journalists and advocates to threaten in retaliation for the victims’ work exposing anti-Semitism. The group focused primarily on journalists and advocates who were Jewish or people of color. In a message to the other co-defendants, Garza explained that the plot was designed to “have them all wake up one morning and find themselves terrorized by targeted propaganda.” On the night of Jan. 25, 2020, Garza placed a poster on the bedroom window of a prominent Jewish journalist that depicted a figure in a skull mask holding a Molotov cocktail in front of a burning home. The poster contained the victim’s name and address, and warned, “Your actions have consequences. Our patience has its limits . . . You have been visited by your local Nazis.”
The case was investigated by the FBI’s Joint Terrorism Task Forces in Tampa, Seattle, Houston, and Phoenix, with assistance from the Seattle Police Department. The case is being prosecuted by Assistant U.S. Attorney Thomas Woods and Civil Rights Division Trial Attorney Michael J. Songer, with assistance from National Security Division Trial Attorney David Smith and U.S. Attorney’s Offices in the Middle District of Florida, Southern District of Texas, District of Arizona, and Central District of California.
Member of Fitchburg Latin Kings Chapter Pleads Guilty Drug Distribution ChargesRead the Press Release
BOSTON – A member of the Fitchburg Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to drug distribution charges.
Dairon Rivera, a/k/a “King Mafia,” 27, pleaded guilty today to one count of conspiracy to distribute and possess with intent to distribute fentanyl. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for April 1, 2021. Dairon Rivera was charged in December 2019, at which time he was a member of the Fitchburg Chapter of the Latin Kings.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
During the plea proceedings, Dairon Rivera admitted to selling over 40 grams of fentanyl to a cooperating witness in a series of audio/video recorded sales that took place between April and December of 2017.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Dairon Rivera is the 26th defendant to plead guilty in the case.
The charge of conspiracy to distribute controlled substances provides for a sentence of up to 20 years in prison, a minimum of three years and up to life of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Commissioner Carol Mici of the Massachusetts Department of Correction made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
McPherson County Man Charged with Producing Child PornographyRead the Press Release
WICHITA, KAN. – A man from McPherson County was charged in federal court here today with sexually exploiting a 15-year-old victim, U.S. Attorney Stephen McAllister said.
Loren Olson, 68, Marquette, Kan., is charged with one count of producing child pornography and one count of the sex trafficking of a minor.
A criminal complaint filed in federal court in Wichita alleges Olson came to the attention of law enforcement after Facebook made a CyberTipline report to the National Center for Missing and Exploited Children (NCMEC). Facebook captured content in which Olson communicated with a 15-year-old victim. Olson made reference to having had sex with the victim, taking pictures during their sexual acts and paying the victim after sex.
If convicted, Olson could face a penalty of not less than 15 years and not more than 30 years in federal prison on the production count, and not less than 10 years on the other count. The FBI investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Man Pleads Guilty to Fraud Conspiracy Targeting Virginia ABC StoresRead the Press Release
NEWPORT NEWS, Va. – A Norfolk man pleaded guilty today to conspiracy to commit wire fraud and aggravated identity theft as part of a scheme to purchase alcohol for resale from Virginia Alcoholic Beverage Control Authority (ABC) stores with stolen debit and credit card numbers.
According to court documents, Tyrell Jackson, 44, joined together with three other men to defraud Virginia ABC stores by using debit and credit cards re-encoded with the stolen financial information of identity theft victims. Investigators have identified 20 direct victims of identity theft from Jackson’s role in the conspiracy, and at least 82 victims of the broader conspiracy.
Jackson is scheduled to be sentenced on March 24, 2021. The conspiracy to commit wire fraud offense carries a maximum sentence of 30 years in prison, and the aggravated identity theft offense carries a mandatory two years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Steve R. Drew, Chief of Newport News Police; and Tom Kirby, Chief of Virginia ABC’s Bureau of Law Enforcement made the announcement after Senior U.S. District Judge Henry E. Hudson accepted the plea.
Assistant U.S. Attorney Mack Coleman is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-45.
Lawrence Man Sentenced to Nine Years in Prison for Fentanyl DistributionRead the Press Release
BOSTON – A Lawrence man was sentenced yesterday for distributing fentanyl.
Keysi Batista, 32, was sentenced by U.S. District Court Judge William G. Young to 108 months in prison and four years of supervised release. On Sep. 14, 2020, Batista pleaded guilty to two counts of distribution of 40 grams or more of fentanyl.
Between August 2017 and November 2018, investigators conducted an undercover investigation of Batista’s fentanyl dealing. Over the course of 15 months, investigators conducted two controlled purchases of fentanyl from Batista. Batista was arrested on Nov. 15, 2019.
United States Attorney Andrew Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The FBI’s North Shore Gang Task Force conducted the investigation.
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.
Justice Department Files Lawsuit Against the State of Alabama for Unconstitutional Conditions in State's Prisons for MenRead the Press Release
Today, the Justice Department filed suit against the State of Alabama and the Alabama Department of Corrections. The complaint alleges that the conditions at Alabama’s prisons for men violate the Constitution because Alabama fails to provide adequate protection from prisoner-on-prisoner violence and prisoner-on-prisoner sexual abuse, fails to provide safe and sanitary conditions, and subjects prisoners to excessive force at the hands of prison staff.
“The United States Constitution requires Alabama to make sure that its prisons are safe and humane,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The Department of Justice conducted a thorough investigation of Alabama’s prisons for men and determined that Alabama violated and is continuing to violate the Constitution because its prisons are riddled with prisoner-on-prisoner and guard-on-prisoner violence. The violations have led to homicides, rapes, and serious injuries. The Department of Justice looks forward to proving its case in an Alabama federal courtroom.”
“Our office is committed to ensuring that all citizens’ constitutional rights are respected” said Acting U.S. Attorney for the Northern District of Alabama William R. Chambers Jr. “We will continue to work tirelessly to correct the constitutional deficiencies identified by our investigation into the state prison system.”
“The results of the investigation into safety and excessive force issues within Alabama’s prisons are distressing and continue to require real and immediate attention,” said U.S. Attorney for the Middle District of Alabama Louis V. Franklin Sr. “We hope the filing of this complaint conveys the department’s continued commitment to ensuring that the Department of Corrections abides by its constitutional obligations.”
“The COVID-19 pandemic has reminded us that one of the primary responsibilities of government is to keep our citizens safe,” said U.S. Attorney for the Southern District of Alabama Richard W. Moore. “That responsibility extends to citizens incarcerated within Alabama prisons. Our investigation has demonstrated that constitutionally required standards have not been met in Alabama prisons and this must be corrected. I am disappointed that the efforts of both Alabama officials and Department of Justice officials to find appropriate solutions have not resulted in a mutually agreed upon resolution. Our oath as public officials now requires us to follow the Constitution and to pursue justice in the courts.”
The lawsuit is the result of a multi-year investigation into allegations of constitutional violations within Alabama’s prisons for men conducted by the department’s Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama. As required by the Civil Rights of Institutionalized Persons Act (CRIPA), the department provided the state with written notice of the supporting facts for these alleged conditions, and the minimum remedial measures necessary to address them in Notice Reports issued on April 2, 2019 and July 23, 2020. CRIPA authorizes the department to act when it has reasonable cause to believe there is a pattern or practice of deprivation of constitutional rights of individuals confined to correctional facilities operated by or on behalf of state or local government. For over 20 months the department has engaged in negotiations with the state without achieving a settlement that would correct the deficiencies identified by the department’s investigation.
Today’s lawsuit seeks injunctive relief to address deficient conditions identified by the department’s investigation. The complaint contains allegations of unconstitutional conditions of confinement, which must be proven in federal court. The lawsuit does not seek monetary damages.
This investigation was conducted by attorneys with the Special Litigation Section of the Justice Department’s Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama. Individuals with relevant information are encouraged to contact the department by phone at (877) 419-2366 or by email at [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Justice Department Files Lawsuit Against the State of Alabama for Unconstitutional Conditions in State's Prisons for MenRead the Press Release
BIRMINGHAM, Ala. – Today, Justice Department filed suit against the State of Alabama and the Alabama Department of Corrections. The complaint alleges that the conditions at Alabama’s prisons for men violate the Constitution because Alabama fails to provide adequate protection from prisoner-on-prisoner violence and prisoner-on-prisoner sexual abuse, fails to provide safe and sanitary conditions, and subjects prisoners to excessive force at the hands of prison staff.
“The United States Constitution requires Alabama to make sure that its prisons are safe and humane,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The Department of Justice conducted a thorough investigation of Alabama’s prisons for men and determined that Alabama violated and is continuing to violate the Constitution because its prisons are riddled with prisoner-on-prisoner and guard-on-prisoner violence. The violations have led to homicides, rapes, and serious injuries. The Department of Justice looks forward to proving its case in an Alabama federal courtroom.”
“Our office is committed to ensuring that all citizens’ constitutional rights are respected” stated Acting U.S. Attorney for the Northern District of Alabama William R. Chambers, Jr. “We will continue to work tirelessly to correct the constitutional deficiencies identified by our investigation into the state prison system.”
“The results of the investigation into safety and excessive force issues within Alabama’s prisons are distressing and continue to require real and immediate attention,” U.S. Attorney for the Middle District of Alabama Louis V. Franklin, Sr. “We hope the filing of this complaint conveys the Department’s continued commitment to ensuring that the Department of Corrections abides by its constitutional obligations.”
“The COVID-19 pandemic has reminded us that one of the primary responsibilities of government is to keep our citizens safe,” said U.S. Attorney for the Southern District of Alabama Richard W. Moore. “That responsibility extends to citizens incarcerated within Alabama prisons. Our investigation has demonstrated that constitutionally required standards have not been met in Alabama prisons and this must be corrected. I am disappointed that the efforts of both Alabama officials and DOJ officials to find appropriate solutions have not resulted in a mutually agreed upon resolution. Our oath as public officials now requires us to follow the Constitution and to pursue justice in the courts.”
The lawsuit is the result of a multi-year investigation into allegations of constitutional violations within Alabama’s prisons for men conducted by the department’s Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama. As required by the Civil Rights of Institutionalized Persons Act (CRIPA), the department provided the state with written notice of the supporting facts for these alleged conditions, and the minimum remedial measures necessary to address them in Notice Reports issued on April 2, 2019 and July 23, 2020. CRIPA authorizes the department to act when it has reasonable cause to believe there is a pattern or practice of deprivation of constitutional rights of individuals confined to correctional facilities operated by or on behalf of state or local government. For over 20 months the department has engaged in negotiations with the State without achieving a settlement that would correct the deficiencies identified by the department’s investigation.
Today’s lawsuit seeks injunctive relief to address deficient conditions identified by the department’s investigation. The complaint contains allegations of unconstitutional conditions of confinement, which must be proven in federal court. The lawsuit does not seek monetary damages.
This investigation was conducted by attorneys with the Special Litigation Section of the Justice Department’s Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama. Individuals with relevant information are encouraged to contact the department by phone at (877) 419-2366 or by email at [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Justice Department Files Lawsuit Against the State of Alabama for Unconstitutional Conditions in State's Prisons for MenRead the Press Release
MOBILE, Ala. - Today, the Justice Department filed suit against the State of Alabama and the Alabama Department of Corrections. The complaint alleges that the conditions at Alabama’s prisons for men violate the Constitution because Alabama fails to provide adequate protection from prisoner-on-prisoner violence and prisoner-on-prisoner sexual abuse, fails to provide safe and sanitary conditions, and subjects prisoners to excessive force at the hands of prison staff.
“The United States Constitution requires Alabama to make sure that its prisons are safe and humane,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The Department of Justice conducted a thorough investigation of Alabama’s prisons for men and determined that Alabama violated and is continuing to violate the Constitution because its prisons are riddled with prisoner-on-prisoner and guard-on-prisoner violence. The violations have led to homicides, rapes, and serious injuries. The Department of Justice looks forward to proving its case in an Alabama federal courtroom.”
“Our office is committed to ensuring that all citizens’ constitutional rights are respected” said Acting U.S. Attorney for the Northern District of Alabama William R. Chambers Jr. “We will continue to work tirelessly to correct the constitutional deficiencies identified by our investigation into the state prison system.”
“The results of the investigation into safety and excessive force issues within Alabama’s prisons are distressing and continue to require real and immediate attention,” said U.S. Attorney for the Middle District of Alabama Louis V. Franklin Sr. “We hope the filing of this complaint conveys the department’s continued commitment to ensuring that the Department of Corrections abides by its constitutional obligations.”
“The COVID-19 pandemic has reminded us that one of the primary responsibilities of government is to keep our citizens safe,” said U.S. Attorney for the Southern District of Alabama Richard W. Moore. “That responsibility extends to citizens incarcerated within Alabama prisons. Our investigation has demonstrated that constitutionally required standards have not been met in Alabama prisons and this must be corrected. I am disappointed that the efforts of both Alabama officials and Department of Justice officials to find appropriate solutions have not resulted in a mutually agreed upon resolution. Our oath as public officials now requires us to follow the Constitution and to pursue justice in the courts.”
The lawsuit is the result of a multi-year investigation into allegations of constitutional violations within Alabama’s prisons for men conducted by the department’s Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama. As required by the Civil Rights of Institutionalized Persons Act (CRIPA), the department provided the state with written notice of the supporting facts for these alleged conditions, and the minimum remedial measures necessary to address them in Notice Reports issued on April 2, 2019 and July 23, 2020. CRIPA authorizes the department to act when it has reasonable cause to believe there is a pattern or practice of deprivation of constitutional rights of individuals confined to correctional facilities operated by or on behalf of state or local government. For over 20 months the department has engaged in negotiations with the state without achieving a settlement that would correct the deficiencies identified by the department’s investigation.
Today’s lawsuit seeks injunctive relief to address deficient conditions identified by the department’s investigation. The complaint contains allegations of unconstitutional conditions of confinement, which must be proven in federal court. The lawsuit does not seek monetary damages.
This investigation was conducted by attorneys with the Special Litigation Section of the Justice Department’s Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama. Individuals with relevant information are encouraged to contact the department by phone at (877) 419-2366 or by email at [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Jamestown Man Arrested While on New York State Parole Going to Prison Following Crack Cocaine ConvictionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Earl Stone Jr. a/k/a Ooh Wop, 28, of Jamestown, NY, who was convicted of possession with intent to distribute crack cocaine, was sentenced by U.S. District Judge Richard J. Arcara to serve 32 months in prison.
Assistant U.S. Attorney Meghan E. Leydecker, who handled the case, stated that the defendant was arrested, with another absconding parolee, Shaquelle Coleman, on January 23, 2019, for violating terms of parole. Stone and Coleman were located in the upstairs bedroom of a residence on West 7th Street in Jamestown. Stone had what appeared to be floor insulation from the attic of the residence all over his clothing. During a search of the residence, suspected crack cocaine was located in the attic. A digital scale with white residue and three cellular telephones were also seized. A review of the three cellular telephones recovered several text messages coordinating the sale of narcotics.
Shaquelle Coleman was previously convicted and is scheduled to be sentenced on January 21, 2021.The sentencing is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Jamestown Police Department, under the direction of Chief Timothy Jackson; the New York State Department of Corrections and Community Supervision, under the direction of under the direction of Acting Commissioner Anthony J. Annucci; and the New York State Police, under the direction Major James Hall.
# # # #
Jackson Man Sentenced to over 6 Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
Jackson, Miss. – Michael Devell Smith, 28, of Jackson, was sentenced today by U.S. District Judge Henry T. Wingate to 75 months in federal prison and 5 years of supervised release for conspiring to possess with intent to distribute 50 grams or more of methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle A. Sutphin with the Federal Bureau of Investigation in Mississippi. Smith was also ordered to pay a $1,500 fine.
From January 2017 to May 2017, Smith sold methamphetamine to buyers, delivering approximately 414 grams of methamphetamine, which was tested and determined to be between 95-99% pure. Smith was indicted on February 6, 2019 as a result of an extensive operation targeting illegal methamphetamine distribution in central Mississippi.
The case was investigated by the Federal Bureau of Investigation, Homeland Security Investigations, Mississippi Bureau of Narcotics, Jackson Police Department, Madison Police Department, Ridgeland Police Department, and the Rankin County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Chris Wansley and Keesha Middleton.
Iowa Man Who Used Facebook Messenger to Entice a 12-Year-Old for Sexual Activity Pleads Guilty in Federal CourtRead the Press Release
A man who sought out and enticed a 12-year-old for sexual activity pled guilty today in federal court in Sioux City.
Nathan Landrum, age 40, from Carnarvon, IA, was convicted of enticement of a minor.
In a plea agreement, Landrum admitted that in April 2020, using Facebook Messenger, he knowingly enticed a 12-year-old child to his apartment for sexual activity. Landrum brought the child to his bedroom where he intended to engage in sexual activity with the child.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Landrum remains in custody of the United States Marshal pending sentencing. Landrum faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Ron Timmons and was investigated by the Federal Bureau of Investigation and the Sac County Sheriff’s Office. 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 Attorneys’ 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.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4046.
Follow us on Twitter @USAO_NDIA.
Individual Pleads Guilty to Participating in Internet-of-Things Cyberattack in 2016Read the Press Release
An individual, formerly a juvenile, pleaded guilty to committing acts of federal juvenile delinquency in relation to a cyberattack that caused massive disruption to the Internet in October 2016.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Scott W. Murray of the District of New Hampshire, and Special Agent in Charge Joseph R. Bonavolonta of the FBI’s Boston Division made the announcement.
According to the plea agreement, the individual conspired to commit computer fraud and abuse by operating a botnet and by intentionally damaging a computer. Because the individual was a juvenile at the time of the commission of the offense, the individual’s identity is being withheld pursuant to the Juvenile Delinquency Act, see 18 U.S.C. § 5031, et seq. The guilty plea took place in a closed proceeding before Chief Judge Landya B. McCafferty in the District of New Hampshire. Judge McCafferty scheduled the individual’s sentencing for Jan. 7, 2021.
According to unsealed court documents, from approximately 2015 until November of 2016, the individual conspired with others to create and operate one or more online botnets to launch cyberattacks against victim computers (specifically targeting those belonging to online gamers or gaming platforms) in order to take those computers offline altogether or otherwise significantly impair their functionality. These attacks are often referred to as “Distributed Denial of Service” or “DDoS” attacks.
In general, a DDoS attack is a type of cyberattack in which a malicious actor directs a large volume of Internet traffic to a victim computer or network, overwhelming it and rendering it unable to function as intended. Successful DDoS attacks can take individual computer users, websites, or entire computer networks offline altogether or otherwise slow their performance. DDoS attacks are often conducted through the use of botnets (short for “robot networks”), that is, large numbers of compromised computers under the control of an individual or group of actors.
According to court documents, in September and October of 2016, the individual and others created a botnet, which was a variant of the so-called “Mirai” botnet, for use in launching DDoS attacks. Mirai infected “Internet-of-Things” devices, such as Internet-connected video cameras and recorders, and turned them into bots to be used to launch DDoS attacks.
According to court documents, on Oct. 21, 2016, the individual and others used the botnet they created to launch several DDoS attacks in an effort to take the Sony PlayStation Network’s gaming platform offline for a sustained period. The DDoS attacks impacted a domain name resolver, New Hampshire-based Dyn, Inc., which caused websites, including those pertaining to Sony, Twitter, Amazon, PayPal, Tumblr, Netflix, and Southern New Hampshire University (SNHU), to become either completely inaccessible, or accessible only intermittently for several hours that day. As a result of the individual’s DDoS attacks, Dyn, Sony, SNHU, and other entities and individuals suffered losses including lost advertising revenues and remediation costs. Sony estimated that its resultant losses included approximately $2.7 million in net revenue.
This case was investigated by the FBI with assistance from the National Crime Agency and Police Service of Northern Ireland. The case is being prosecuted by Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Georgiana MacDonald of the District of New Hampshire. Former Assistant U.S. Attorney Arnold H. Huftalen provided substantial assistance.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Indictment: Topeka Man Distributed HeroinRead the Press Release
TOPEKA, KAN. – A Topeka man was indicted in federal court today with distributing heroin, U.S. Attorney Stephen McAllister said.
James Licht, 39, Topeka, Kan., was charged with one count of distributing heroin and one count of unlawful possession of firearms by a previously convicted felon.
According to documents filed in court, in October investigators served a search warrant at Licht’s residence in the 1400 block of SW 5th Street in Topeka. Among the items seized were heroin, more than $1,500 in cash, a .45 caliber pistol, a 9 mm pistol, other firearms and drug paraphernalia.
Licht was paying $1,500 to $2,000 an ounce to buy 1 to 2 ounces of heroin each week.
Licht was prohibited from possessing a firearm due to a felony conviction in 2019 in Shawnee County District Court.
If convicted, he could face up to 20 years in federal prison and a fine up to $1 million on the heroin charge and up to 10 years and a fine up to $250,000 on the firearm charge. The Drug Enforcement Administration and the Kansas Highway Patrol investigated. Special Assistant U.S. Attorney Lindsey Debenham is prosecuting.
OTHER INDICTMENTS
Frederick L. Martin, 25, Sedgwick, Kan., is charged with one count of producing child pornography and one count of committing a crime involving a minor while registered as a sex offender. The crimes are alleged to have occurred in Sedgwick County, Kan., during August through October 2020.
If convicted, he could face a penalty of not less than 35 years and not more than 60 years in federal prison and a fine up to $250,000 on the charge of producing child pornography, and an additional 10 years (consecutive) on the other count. Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Carlos Ivan Radales-Velasquez, 47, who is not an American citizen, is charged with one count of unlawfully re-entering the United States after being deported. He was found Nov. 22, 2020, in Manhattan, Kan.
If convicted, he could face a penalty of up to 20 years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Human Smuggler Sentenced to 15 Years in Prison for Assaulting a Federal OfficerRead the Press Release
Jackson, Miss. – Vicente Lopez-Sanchez, 41, an illegal alien from Mexico, was sentenced today by U.S. District Judge Henry T. Wingate to 180 months in prison, followed by three years of supervised release, for assaulting and inflicting serious bodily injury upon a federal law enforcement officer, announced U.S. Attorney Mike Hurst, Gilbert Trill, Acting Special Agent in Charge of Homeland Security Investigations in New Orleans and Diane Witte, Field Office Director of ICE Enforcement and Removal Operations (ERO).
“Our office has zero tolerance for those who attack and harm our law enforcement. Such criminals can be assured they will receive swift prosecution and severe punishment for their unlawful acts. I commend our federal agents, local police, and prosecutors for ensuring that this criminal was held accountable and that justice prevailed. We will continue to do our part to protect the public and our law enforcement, and to ensure that our laws are enforced,” said U.S. Attorney Hurst.
On August 2, 2018, a Brandon Police officer stopped Lopez-Sanchez for a traffic violation on Interstate I-20. Because Lopez-Sanchez had no driver’s license and could only name one of the four passengers he was transporting, the officer suspected alien smuggling. Lopez-Sanchez then resisted arrest by Brandon police officers and an ICE Deportation Officer. During the fight, Lopez-Sanchez broke a bone in the Deportation Officer’s foot.
Lopez was indicted on August 21, 2018 and charged with assaulting a federal officer. He was found guilty on October 22, 2019 after a two-day trial before Judge Wingate in U.S. District Court in Jackson. Lopez-Sanchez has previously been sentenced for a related offense of illegally reentering the United States following a prior deportation, and has been currently serving that sentence.
The case was investigated by Homeland Security Investigations and Immigration and Customs Enforcement, with assistance from the Brandon Police Department. The case was prosecuted by Assistant United States Attorneys Theodore Cooperstein and Lynn Murray.
Honduran National Previously Convicted of an Aggravated Felony, Pleads Guilty to Illegal ReentryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that ARNULFO FERRERA-ARRAZOLA, age 35, a citizen of Honduras, pleaded guilty on December 8, 2020 before U.S. District Court Judge Wendy B. Vitter today to a one-count indictment for illegal reentry of a removed alien, previously convicted of an aggravated felony.
According to court documents, on or about February 13, 2020, ARNULFO FERRERA-ARRAZOLA was found in the United States after having been officially deported and removed on April 29, 2009. ARNULFO FERRERA-ARRAZOLA was previously convicted on or about December 27, 2007 of an aggravated felony.
ARNULFO FERRERA-ARRAZOLA faces a maximum term of imprisonment of twenty years, a fine of up to $250,000.00, three years supervised release after imprisonment, and a $100 special assessment. Sentencing is scheduled for February 9, 2020 before U.S. District Court Judge Vitter.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Julia K. Evans is in charge of the prosecution.
* * *
Hazleton Man Sentenced to 65 Months’ Imprisonment for Methamphetamine and Cocaine TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Juan Elvis Monsanto, age 60, of Hazleton, a citizen of the Dominican Republic, was sentenced on December 8, 2020, to 65 months’ imprisonment by U.S. District Court Judge Robert D. Mariani, for trafficking in cocaine and more than 50 grams of methamphetamine.
According to United States Attorney David J. Freed, Monsanto previously pleaded guilty to possession with intent to distribute more than 50 grams of methamphetamine and cocaine. Monsanto committed the crime in February 2016, in Hazleton.
Judge Mariani also ordered Monsanto to serve four years on supervised release following his prison sentence. Monsanto also faces possible deportation as a result of his conviction.
Monsanto was indicted by a federal grand jury in May 2016, as a result of an investigation by the Drug Enforcement Administration (DEA) and Hazleton Police. Assistant U.S. Attorney Francis P. Sempa 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.
# # #
Greenwich Resident Charged with Federal Offenses Stemming from Alleged Investment Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Joleen Simpson, Acting Special Agent in Charge of IRS Criminal Investigation in New England, today announced that a federal grand jury in New Haven has returned an indictment charging SAMUEL KLEIN, 64, of Greenwich with offenses stemming from an alleged investment fraud scheme.
The indictment was returned on December 7, 2020. Klein appeared yesterday via videoconference before U.S. Magistrate Judge Holly B. Fitzsimmons and was released on a $500,000 bond.
As alleged in the indictment, Klein made false representations to a victim-investor, including that the victim-investor’s funds would be invested in distressed debt, when Klein knew that all of the investment funds would not be used for the stated purposes. Based on these false representations, the victim-investor wrote a check in the amount of $200,000 to Visual Group LLC, an entity Klein controlled, for the purpose of making a purported investment in distressed debt. Klein caused the check to be transported from New York to Connecticut and deposited into a bank account in the name of Visual Group LLC. Klein subsequently solicited and received an additional $50,010 from the victim-investor by falsely representing that Klein needed to purchase title insurance in approximately that amount.
Klein knew that all of the funds he solicited from the victim-investor would not be used for his stated purposes, and that some of the funds would be utilized by Klein for personal and other expenditures.
The indictment charges Klein with one count of interstate transportation of property taken by fraud and one count of money laundering. Both offenses carry a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Jennifer Laraia.
Greensburg Physician Sentenced to Prison for Drug Distribution, Health Care Fraud, and Money LaunderingRead the Press Release
PITTSBURGH – A Greensburg physician was sentenced in federal court today for three counts of distribution of buprenorphine, a Schedule III controlled substance; one count of health care fraud; and one count of money laundering, United States Attorney Scott W. Brady announced.
Nabil Jabbour, 69, a physician who previously operated an addiction-treatment practice out of offices in Greensburg and Connellsville, Pennsylvania, was sentenced to twelve months and one day in prison followed by one year of supervised release. Jabbour was also ordered to pay a $75,000 fine and a total of $40,000 in restitution to Medicare and the Pennsylvania Medicaid program. He will also forfeit approximately $17,000 in previously seized cash and casino chips.
"As a physician, Nabil Jabbour took an oath to uphold the ethical standards of his profession; instead, he operated a cash-only business that took advantage of vulnerable patients seeking help for their opioid addiction so that he could spend their money at casinos," said U.S. Attorney Brady. "We will continue our steady pursuit to bring drug-dealing doctors to justice."
"We trust our doctors to carefully and thoughtfully write prescriptions, not use their access to profit off of highly addictive medications meant to treat opioid addiction - an addiction that steals the lives of 12 Pennsylvanians a day," said Attorney General Josh Shapiro. "Dr. Jabbour admitted to unlawfully prescribing buprenorphine on multiple occasions for cash. My office and our partners in law enforcement will continue to hold individuals accountable who recklessly put the lives of others at risk for their own personal gain."
During his plea hearing on October 28, 2019, Jabbour admitted that on three occasions between July 2016 and December 2016 he unlawfully prescribed buprenorphine to undercover law enforcement officers. Buprenorphine is commonly used in the treatment of patients suffering from opioid addiction, and it is sold under the trade names Suboxone, Subutex, or Zubsolv. As Jabbour acknowledged, none of the undercover officers to whom he prescribed buprenorphine suffered from opioid use disorder or otherwise displayed symptoms of withdrawal. Jabbour further admitted that he did not accept insurance from his patients, requiring instead that they pay him in cash—typically $100 for an initial office visit and $80 for each subsequent visit. Although Jabbour did not accept insurance, he admitted that he caused Medicare and Pennsylvania Medicaid, two government-funded healthcare programs, to cover the costs of fraudulent buprenorphine prescriptions that he wrote for his patients. Finally, Jabbour also admitted to one count of money laundering based on a transaction he initiated at the Meadows Casino in July 2016 involving $13,960 in cash derived from his unlawful distribution of buprenorphine.
Pursuant to a written plea agreement, Jabbour also accepted responsibility for unlawfully distributing buprenorphine to undercover officers on fourteen additional occasions, maintaining his office locations in Greensburg and Connellsville as drug-involved premises, and laundering approximately $47,000 in cash from his buprenorphine practice during four additional trips to the Meadows Casino. Jabbour also agreed that he was responsible for between 10,000 and 20,000 dosage units of unlawful buprenorphine prescriptions.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government.
The investigation leading to the filing of charges in this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from multiple federal and state agencies to combat the growing prescription opioid epidemic, including the Drug Enforcement Administration, Pennsylvania Office of Attorney General – Medicaid Fraud Control Unit, Internal Revenue Service – Criminal Investigation, and U.S. Department of Health and Human Services – Office of Inspector General. The Pennsylvania State Police, the Pennsylvania Office of the Attorney General – Narcotics Unit, Greensburg City Police, South Greensburg Police, and Westmoreland County Sheriff’s Office also provided assistance during the investigation and prosecution of Jabbour.
Frankfort Man Sentenced to 120 Months for Attempting to Entice a Minor OnlineRead the Press Release
FRANKFORT, Ky. - A Frankfort man, Ricky Joe Cornish Jr., 33, was sentenced to 120 months in prison on Tuesday, by U.S. District Judge Gregory F. Van Tatenhove, after previously pleading guilty to using the internet to entice a minor to engage in sexual activity.
According to his guilty plea agreement, on May 16, 2019, Cornish contacted an individual, who self-identified as a 15-year-old female living in Franklin County, Kentucky, using the MeetMe/Skout messenger application over the Internet, on his cellular telephone. The person Cornish contacted was, in reality, an investigator with the Kentucky Office of the Attorney General’s Cyber Crimes Branch. The investigator communicated that they were also with a 17-year-old female, and Cornish expressed interest in having sex with the 17-year-old.
Later that same day, Cornish drove to an agreed-upon hotel, in order to meet the minor and engage in criminal sexual activity. When Cornish arrived at the agreed-upon meeting place in Franklin County, he was arrested by law enforcement officers. An examination of Cornish’s cell phone revealed the conversation with the investigator, as well as a similar conversation with another individual, who is believed to be a minor female.
Cornish pleaded guilty in July 2020.
Under federal law, Cornish must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for 20 years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Ralph Gerds, Assistant Special Agent in Charge, U.S. Secret Service Louisville Field Division; and Daniel Cameron, Attorney General for the Commonwealth of Kentucky, jointly announced the sentencing.
The investigation was conducted by United States Secret Service and Kentucky Attorney General’s Cyber Crimes Branch. The United States was represented by Assistant U.S. Attorneys David Marye and Tashena Fannin.
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
— END —
Former Sales Representative Admits Role in Compounded Prescription Drug SchemeRead the Press Release
NEWARK, N.J. – A former sales representative today admitted his role in a scheme to defraud a New Jersey state health benefits program, U.S. Attorney Craig Carpenito announced.
Thomas Bowers, 46, of Little Falls, New Jersey, pleaded guilty by videoconference before U.S. District Judge William J. Martini to an information charging him with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Compounding is a practice in which a pharmacist or physician combines, mixes, or alters ingredients of a drug to create a medication tailored to the needs of an individual patient. The Food and Drug Administration does not approve compounded drugs and thus does not verify the safety, potency, effectiveness, or manufacturing quality of compounded drugs. Generally, a physician may prescribe compounded drugs when an FDA-approved drug does not meet the health needs of a particular patient.
Between December 2014 and March 2016, Bowers worked as a sales representative for a marketing company that marketed and sold compounded drugs to physicians, including pain, scar and wound creams and certain supplements and vitamins. Certain compounding pharmacies paid the marketing company based on a percentage of the reimbursement payments they received from health care benefit programs for each prescription that Bowers referred to the pharmacies. The marketing company, in turn, paid Bowers based on the compounded prescriptions he generated. Bowers recruited patients, including family members, who had prescription drug coverage under the New Jersey School Employee’s Health Benefits Program, to obtain medically unnecessary prescriptions for compounded drugs. Bowers paid patients that he recruited to obtain prescriptions from doctors even though the doctors did not have any interaction with the patients for purposes of determining that a prescription was medically necessary. He obtained medically unnecessary prescriptions from doctors who only conducted a cursory patient examination that was insufficient to legitimately deem that a compounded drug was medically necessary for the patient.
The count of conspiracy to commit health care fraud carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gain or loss from the offense, whichever is greater. As part of his plea agreement, Bowers must forfeit $157,747 in criminal proceeds and pay restitution of at least $593,678. Sentencing is scheduled for April 8, 2021.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Adam Baker of the United States Attorney’s Office, Opioid Abuse Prevention and Enforcement Unit in Newark.
Former Member of Boston Latin Kings Chapter Sentenced for Racketeering ConspiracyRead the Press Release
BOSTON – A former member of the Boston-based Devon Street Kings Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) was sentenced today on racketeering charges. The defendant admitted to shooting in the direction of another Latin Kings member in June 2019.
Juan Figueroa, a/k/a “King Pun,” 25, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to two years in prison and three years of supervised release. In September 2020, Figueroa pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. Figueroa was arrested and charged in December 2019, at which time he was a member of the Devon Street Kings, a Boston-based Chapter of the Latin Kings, and had formerly been a member of the New Bedford Chapter.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
Figueroa admitted to participating in a June 2019 shooting in which he shot in the direction of a Latin Kings member who was in bad standing with the gang. Figueroa further admitted to creating numerous songs and accompanying music videos that served as compelling propaganda for the gang. Producing music under the name, “The Almighty King Pun,” Figueroa’s songs and music videos depicted the gang members brandishing firearms, boasting about their proclivity for violence and describing the scope of their successful drug distribution operations. The music videos featured groups of Latin Kings members wearing gang colors, clothing and symbols, and throwing up gang signs. The lyrics of these music videos taunted and threatened rival gang members.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Figueroa is the seventh defendant to be sentenced in the case.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; Boston Police Commissioner William Gross; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard and Lauren Graber of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Former Founder and CEO of Nanotechnology Company Charged in Manhattan Federal Court in Connection with Multimillion-Dollar Securities Fraud SchemeRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that JAMES JEREMY BARBERA, the former founder and chief executive officer of a nanotechnology company based in New York, New York, was arrested this morning in New York on securities fraud and wire fraud charges stemming from a scheme to defraud investors in the company. Among other illicit activity, BARBERA fraudulently induced dozens of investors to invest at least approximately $12.2 million based on false and misleading statements, by failing to use investors’ funds as promised, and by converting investors’ money to his own use. BARBERA will be presented this afternoon in Manhattan federal court before U.S. Magistrate Judge Sarah Netburn.
Acting U.S. Attorney Audrey Strauss said: “As alleged, James Barbera defrauded investors out of millions of dollars by offering the opportunity to invest in a seemingly plausible but wholly fictitious technology, purportedly developed in coordination with NASA. Barbera allegedly further misled investors with false statements about institutional investors, licensing agreements, an imminent IPO, and other lies, and misappropriated investor money for his own use. Now he is in custody and facing prosecution for his alleged crimes.”
FBI Assistant William F. Sweeney Jr. said: “As we allege today, Barbera, in his position as founder and CEO of a privately-held nanotechnology company, fraudulently collected more than $12 million from investors and used approximately half the money to pay for personal expenses including private school and college tuition for his children and mortgage payments on his Central Park West apartment. Among other misrepresentations he made, Barbera claimed his company had an exclusive relationship with NASA and even used NASA’s logo to solicit investors. As we demonstrated today, Barbera’s non-existent ‘exclusive’ landed him nothing more than a trip through the federal criminal justice system.”
According to the allegations in the Complaint unsealed today in Manhattan federal court:[1]
Between in or about 2009 and in or about 2019, BARBERA was the founder and CEO of a privately held nanotechnology company that represented to investors that the company had developed a breathalyzer sensor technology that could detect cancer and narcotics in human breath, based on technology developed by the National Aeronautics and Space Administration (“NASA”), and that it was also partnered with a major U.S. research university.
From at least in or about 2013 through in or about 2020, BARBERA and others perpetrated a scheme to defraud dozens of investors out of at least approximately $12.2 million (i) by soliciting investments in the company’s equity and notes through false and misleading statements, (ii) by failing to use investors’ funds as promised, and (iii) by converting investors’ money to his own use. BARBERA and others made false and misleading representations to actual and potential investors, including as set forth below:
BARBERA falsely represented that the company had developed a breathalyzer sensor, based on technology developed by NASA, that could detect narcotics and cancer from a person’s breath. In truth and in fact, and as BARBERA well knew, the company and NASA never developed such a technology. Indeed, NASA conducted no research for the company related to this technology after in or about late 2017, and NASA did not permit research related to narcotics testing at NASA facilities.
BARBERA falsely represented that the company had an exclusive license with NASA for certain patents related to a breathalyzer sensor technology for the life of the patents, and used NASA’s name and logo to solicit investors in the company. In truth and in fact, and as BARBERA well knew, the company did not have an exclusive license with NASA.
BARBERA falsely represented to potential and actual investors that institutional investors, including a large, publicly traded chemical company, had made substantial investments in the company. In truth and in fact, and as BARBERA well knew, that institutional investor never invested in the company.
BARBERA falsely represented that the company would soon have an initial public offering (“IPO”), which would result in large profits to investors. In truth and in fact, and as BARBERA well knew, the company was not close to an IPO.
BARBERA converted to his own use approximately 50 percent of the approximately $12.2 million in investor funds in the form of cash withdrawals and to pay personal expenses, including private school and college tuition for his children, mortgage payments on his Central Park West apartment, and for his other personal items, such as credit card bills, jewelry, automobiles, and daily living expenses.
Previously, BARBERA was the CEO of a publicly traded company. On or about July 29, 2014, the U.S. Securities and Exchange Commission (“SEC”) announced the settlement of federal securities fraud charges against BARBERA and that company for making materially false and misleading statements about the true business operations and finances of that company. As part of that settlement, BARBERA was permanently enjoined from future violations of the antifraud provisions of the federal securities laws, and agreed to pay a $100,000 penalty and to be permanently barred from acting as an officer or director of a public company.
* * *
BARBERA, 64, was arrested this morning at his home in New York, New York. BARBERA was charged with one count of securities fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison. He was also charged with one count of conspiracy to commit securities fraud and wire fraud, which carries a maximum sentence of five years in prison. The charges carry a maximum fine of $5 million, or twice the gross gain or loss from the offenses. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding work of the FBI and NASA’s Office of Inspector General, and also thanked the SEC for its assistance and cooperation in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Joshua A. Naftalis is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the Complaint and the descriptions of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Former Chief Operating Officer Who Defrauded Asset Management Company and Its Clients Sentenced to 3 Years in PrisonRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that RICHARD DIVER was sentenced on December 7 to 36 months in prison in connection with his embezzlement from the asset management company where he served as chief operating officer. DIVER previously pled guilty to investment adviser fraud in connection with his fraudulently overbilling the company’s clients by hundreds of thousands of dollars and rerouting those funds into his personal account, and wire fraud for diverting millions of dollars in the company’s payroll to which he was not entitled to his personal account over a period of several years. U.S. District Judge Loretta A. Preska, who accepted DIVER’s guilty plea, imposed the sentence in Manhattan federal court.
Manhattan U.S. Attorney Audrey Strauss said: “Richard Diver stole five million dollars, first by defrauding his employer over several years, and then – as if those millions were not enough – turning to the firm’s clients and lining his pockets with excess billings. This sentence should serve as a reminder that this kind of fraud and abuse will not be tolerated.”
According to statements in the Indictment and Complaint in this case, and statements made in public court proceedings:
DIVER was the chief operating officer (“COO”) of a Manhattan-based asset management company (“Company-1”) that offers its customers investment planning and wealth management services. As COO, DIVER’s responsibilities included overseeing the company’s payroll and billing functions, and he had unfettered access to the payroll controls.
Beginning in 2011 and continuing into December 2018, DIVER fraudulently caused Company-1’s third-party payroll vendor to pay him salary significantly beyond his authorized salary and bonus. Over that period, DIVER caused over $4.5 million to be routed to his personal checking account above and beyond his approved compensation.
In 2017, DIVER began to also defraud Company-1’s clients. Typically, Company-1 billed its clients quarterly, in most cases having been authorized by the clients to deduct its investment advisory fees directly from their custodial accounts. DIVER began to cause an employee to run the billing process, which was based on a fixed percentage of the assets the clients had under the company’s management, at off-cycle intervals as to certain clients in addition to the regular quarterly intervals at which it billed legitimately. These billings were not accompanied by any notice. The clients affected by this practice therefore had their accounts debited twice, but were only notified of the single legitimate billing in periodic reports and correspondence from the company. DIVER routed the excess funds to his own personal bank accounts through the company’s payroll system. Through this mechanism, DIVER defrauded the clients of over $700,000.
In December 2018, certain clients noticed the overbilling and complained to Company-1’s president, who confronted him. DIVER admitted to both fraudulent practices, stating that the funds he had stolen were consumed by his own “wild” spending. Prior to his arrest, law enforcement agents recorded a conversation in which DIVER acknowledged having defrauded the company of $4.5 million through the payroll fraud and certain clients of over $700,000 through the billing fraud.
* * *
DIVER, 64, of New York New York, was also sentenced to a three-year term of supervised release. He was further ordered to forfeit $5,248,197 and pay an additional $5,248,197 in restitution to his former employer.
Ms. Strauss praised the investigative work of the U.S. Postal Inspection Service and thanked the New York Regional Office of the U.S. Securities and Exchange Commission, which separately filed civil charges against DIVER.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Martin S. Bell is in charge of the prosecution.
Florida man indicted for unlawfully accessing IRS system and fraudulently filing tax returnsRead the Press Release
MARTINSBURG, WEST VIRGINIA – Keith Joseph, of Miami, Florida, was indicted on multiple counts of wire fraud and aggravated identity theft, U.S. Attorney Bill Powell announced.
Joseph, age 37, was indicted on six counts of “Wire Fraud” and six counts of “Aggravated Identity Theft.” Joseph is accused of fraudulently accessing the Internal Revenue Service (IRS) eAuthentication online taxpayer system, which has servers located in Berkeley County, from March 2015 to March 2017. Joseph allegedly obtained personal identifying information of taxpayers without their knowledge to gain access to the IRS online taxpayer system. Once he had access, Joseph unlawfully obtained income tax transcripts and fraudulently filed tax returns using the taxpayers’ personal identifying information. The total amount claimed by the fraudulent returns in the scheme was at least $152,948.00.
Joseph faces up to 20 years incarceration and a fine of up to $250,000 for each of the wire fraud counts and two years incarceration for each of the aggravated identity theft counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Treasury Inspector General for Tax Administration Cybercrime Investigations Division investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Florida Man Pleads Guilty to Participating in Immigration Marriage Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that SHELDON STEPHENSON, 28, of North Lauderdale, Florida, pleaded guilty yesterday to a conspiracy charge stemming from his participation in an immigration marriage fraud scheme.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. District Judge Michael P. Shea occurred via videoconference.
According to court documents and statements made in court, Jodian Stephenson operated Stephenson Immigration and Legal Services, LLC, in Bridgeport. Between 2011 and 2017, Jodian Stephenson conspired with others, including Sheldon Stephenson, to arrange 28 sham marriages between U.S. citizens and non-citizens residing in the U.S. for the purpose of the non-citizens’ applying for and obtaining “lawful permanent residence” (“LPR”) status, also known as a “green card.”
As part of the scheme, Jodian Stephenson prepared several immigration documents needed as part of the non-citizen’s LPR application. She had the applicant and spouse sign the documents and, in many cases, mailed the documents to the U.S. Citizenship and Immigration Service immigration authorities for the applicant. In some cases, Jodian Stephenson or her assistants prepared other false documents for the couple, such as a false lease that portrayed the couple as living together.
Jodian Stephenson typically charged between $17,000 and $20,000 to complete this process for a non-citizen, and the citizen spouse received between $2,000 and $4,000 for his or her participation.
In pleading guilty, Sheldon Stephenson admitted that he assisted Jodian Stephenson in arranging four such sham marriages. Sheldon Stephenson helped to introduce the couples, helped them obtain marriage licenses, prepared their immigration paperwork, and coached them for their immigration service interviews.
Sheldon Stephenson pleaded guilty to one count of conspiracy to commit immigration marriage fraud, which carries a maximum term of imprisonment of five years. He is released on a $50,000 bond while awaiting sentencing, which is not scheduled.
On August 19, 2019, Jodian Stephenson pleaded guilty to the same offense. She also awaits sentencing.
Six other individuals, including U.S. citizens who entered into one or more fraudulent marriages with non-citizens, have been convicted for participating in this scheme.
This investigation is being conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), and U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security. The case is being prosecuted by Assistant U.S. Attorney Henry K. Kopel.
First of four members of ‘Atomwaffen’ Neo-Nazi group sentenced to 16 months in prison for plot to intimidate journalists and advocatesRead the Press Release
Seattle – A 21-year-old Arizona man was sentenced today in U.S. District Court in Seattle to 16 months in prison for his role in a plot to deliver threatening posters to journalists and advocates, announced U.S. Attorney Brian T. Moran. JOHNNY ROMAN GARZA pleaded guilty September 8, 2020, to conspiracy to mail threatening communications, to commit stalking, and to interfere with federally protected activities. GARZA is one of four men indicted in February 2020 for their plot to deliver threatening posters to journalists and advocates for minority groups. At the sentencing hearing, U.S. District Judge John C. Coughenour observed that since his guilty plea, GARZA had attempted to educate himself about the minority groups he targeted with hate and work to undo some of the harm he inflicted. In imposing the sentence Judge Coughenour noted the “critically important role that the press has in informing the public.” Prison time was necessary the judge said, “given the severity of this conduct and the horrible impact it had on people that are important in our society.”
“While this defendant did not hatch this disturbing plot, he enthusiastically embraced it, researching addresses for journalists and those who oppose hate in our communities,” said U.S. Attorney Moran. “Ultimately in the dark of night he delivered a hateful, threatening poster -- spreading fear and anxiety. Such conduct has no place in our community.”
“The United States and other nations fought a global war to rid the world of murderous threats and violence by Nazis. The nation and its allies defeated Nazi Germany, but Nazi-inspired threats and violence continue to plague this nation and others 75 years after the end of World War II. The defendant threatened a Jewish journalist and conspired to intimidate journalists and advocates who worked to expose anti-Semitism around the country,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Threats motivated by religious intolerance are unacceptable, and so too are threats aimed at those who work to end such discrimination. The Justice Department will continue the fight against neo-Nazi-related threats and violence and is committed fully to investigating and prosecuting anyone who commits hate crimes.”
In his plea agreement, GARZA admitted that he conspired with the other defendants via an encrypted online chat group to identify journalists and advocates to threaten in retaliation for the victims’ work exposing anti-Semitism. The group focused primarily on journalists and advocates who were Jewish or people of color. In a message to the other co-defendants, GARZA explained that the plot was designed to “have them all wake up one morning and find themselves terrorized by targeted propaganda.” On the night of January 25, 2020, GARZA placed a poster on the bedroom window of a prominent Jewish journalist that depicted a figure in a skull mask holding a Molotov cocktail in front of a burning home. The poster contained the victim’s name and address and warned, “Your actions have consequences. Our patience has its limits . . . You have been visited by your local Nazis.”
“Protecting our communities from terrorism, both domestic and international, is a top priority for the FBI,” said FBI Seattle Acting Special Agent in Charge Earl Camp. “Mr. Garza, along with his conspirators, targeted and intimidated journalists from minority groups with communications threatening violence. We are proud of the collaborative nationwide efforts of the FBI’s Joint Terrorism Task Forces and other law enforcement partners to hold these individuals accountable for their actions.”
GARZA told Judge Coughenour that he had joined the conspiracy at a time of “darkness and isolation.” He said he “fell in with the worst crowd you could fall in with.” GARZA says the consequences of his actions have made him a changed person.
Defendant Taylor Ashley Parker-Dipeppe, 21, of Tampa, Florida, pleaded guilty in September 2020 and is scheduled for sentencing on February 24, 2021. The two leaders of the conspiracy, Kaleb Cole and Cameron Brandon Shea, are scheduled for trial on March 22, 2021.
The case was investigated by the FBI’s Joint Terrorism Task Forces in Tampa, Seattle, Houston, and Phoenix, with assistance from the Seattle Police Department. The case is being prosecuted by Assistant United States Attorney Thomas Woods and Civil Rights Division Trial Attorney Michael J. Songer, with assistance from National Security Division Trial Attorney David Smith and U.S. Attorney’s Offices in the Middle District of Florida, Southern District of Texas, District of Arizona, and Central District of California.
Federal Jury Convicts Illinois Man for Bombing the Dar Al-Farooq Islamic CenterRead the Press Release
Today, a federal jury returned guilty verdicts against MICHAEL HARI, 49, for his role in the bombing of the Dar al-Farooq (“DAF”) Islamic Center in Bloomington, Minnesota, on August 5, 2017. The announcement was made by United States Attorney for the District of Minnesota Erica H. MacDonald, Assistant Attorney General Eric S. Dreiband of the Department of Justice’s Civil Rights Division, and Special Agent in Charge of the FBI's Minneapolis field office Michael Paul. Following a five week trial, the jury convicted HARI on all five counts of the indictment, including Intentionally Defacing, Damaging, and Destroying any Religious Real Property Because of the Religious Character of that Property; Intentionally Obstructing, and Attempting to Obstruct, by Force and the Threat of Force, the Free Exercise of Religious Beliefs; Conspiracy to Commit Federal Felonies by Means of Fire and Explosives; Carrying and Using a Destructive Device During and in Relation to Crimes of Violence; and Possession of an Unregistered Destructive Device. HARI faces a mandatory minimum sentence of 35 years in prison. A sentencing date before U.S. District Judge Donovan W. Frank will be scheduled at a later time.
“Michael Hari’s goal in bombing the Dar al-Farooq Islamic Center was to spread hatred, instill fear, and threaten the constitutionally protected right to freedom of religion. This act of violence, driven by hatred and ignorance, shook our community,” said United States Attorney Erica H. MacDonald. “Today’s guilty verdicts represent a condemnation of that hatred and uphold our fundamental right to live and worship free from the threat of violence and discrimination. I am sincerely grateful to the Assistant U.S. Attorneys and the FBI Special Agents who, over several years, have remained steadfast in their pursuit of justice. I also want to extend my deepest gratitude to the members of DAF who, despite their fears, showed strength and resiliency by testifying at trial. I hope today’s verdict offers a sense of peace as the community moves forward.”
“I commend the outstanding efforts of the trial team from the United States Attorney’s Office and the FBI, which tried this case with support from the Civil Rights Division. The jury’s verdict confirms the fundamental principle that every person in this country has the right to exercise religion free from violence and fear,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “We are grateful for our law enforcement partners on this case and are pleased to see justice being carried out.”
"Extremist violence such as this – fueled by exclusive, insular hatred and intended to intimidate Minnesotans based simply on their faith – will not be tolerated by the FBI and our regional law enforcement partners,” said Michael Paul, special agent in charge of the FBI's Minneapolis field office. “Today's verdict is a strong warning to criminal extremists conspiring and calculating to target innocent Americans because of their personal beliefs. Our ranks are universally steadfast in our commitment to the FBI’s core mission – to protect our communities and to protect the rights of all Americans.”
As proven at trial, during the summer of 2017, HARI established a terrorist militia group called “The White Rabbits” in Clarence, Illinois. HARI recruited co-defendants Michael McWhorter and Joe Morris to join the militia, which he outfitted with paramilitary equipment and assault rifles. On August 4 and 5, 2017, HARI, McWhorter, and Morris drove in a rented pickup truck from Illinois to Bloomington, Minnesota, to bomb the DAF Islamic Center. HARI targeted DAF to terrorize Muslims into believing they are not welcome in the United States and should leave the country.
As proven at trial, HARI, McWhorter, and Morris arrived at DAF on August 5, 2017, at approximately 5:00 a.m. At HARI’s direction, Morris used a sledgehammer to break the window of the Imam’s office at DAF, and he threw a plastic container with a mixture of diesel fuel and gasoline into the office. Also at HARI’s direction, McWhorter then lit the fuse on a 20-pound black powder pipe bomb and threw it through the broken window. McWhorter and Morris ran back to the truck, where HARI was waiting in the driver’s seat. The three men sped away from the building and drove back to Illinois. When the pipe bomb exploded, the blast caused extensive damage to the Imam’s office. It also ignited the gasoline and diesel mixture, causing extensive fire and smoke damage. At the time of the bombing, several worshipers were gathered in the mosque for morning prayers.
On January 24, 2019, McWhorter and Morris pleaded guilty to their roles in the bombing.
This case is the result of an investigation conducted by the Federal Bureau of Investigation.
United States Attorney MacDonald thanks Assistant United States Attorneys John Docherty, Allison Ethen and Timothy Rank, Justice Department Civil Rights Division Trial Attorney Timothy Visser, Lead Paralegal Specialist Lynette Simser, Witness Specialists Jeffery Knopps and Selina Kolsrud, Community Affairs Director Angie LaTour, former Assistant United States Attorney Julie Allyn, and the special agents of the FBI’s Minneapolis and Springfield, Illinois Divisions, the ATF, and the Bloomington Police Department for their hard work and commitment to the pursuit of justice. United States Attorney further thanks the Justice Department’s Civil Rights Division, the United States Attorney’s Office for the Central District of Illinois and the FBI’s Springfield field office for their collaboration and partnership. United States Attorney MacDonald also thanks Assistant United States Attorney Eugene Miller, of the Central District of Illinois, for his support and assistance to this case.
Defendant Information:
MICHAEL HARI, 49
Clarence, Ill.
Convicted:
- Intentionally Defacing, Damaging, and Destroying any Religious Real Property Because of the Religious Character of that Property, 1 count
- Intentionally Obstructing, and Attempting to Obstruct, by Force and the Threat of Force, the Free Exercise of Religious Beliefs, 1 count
- Conspiracy to Commit Federal Felonies by Means of Fire and Explosives, 1 count
- Carrying and Using a Destructive Device During and in Relation to Crimes of Violence, 1 count
- Possession of an Unregistered Destructive Device, 1 count
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Federal Jury Convicts Drug Trafficker for Providing Half-Million Dollars to Purchase 20 Kilograms of CocaineRead the Press Release
CHARLOTTE, N.C. – A Charlotte federal jury has convicted Anthony Tommy Foster, 45, of Mokena, Illinois, of conspiracy to possess with intent to distribute cocaine and aiding and abetting possession with intent to distribute cocaine, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Robert J. Conrad, Jr. presided over the two-day trial, which ended today.
U.S. Attorney Murray is joined in making today’s announcement by Ronnie Martinez, Special Agent in Charge of ICE’s Homeland Security Investigations (HSI) in North Carolina; Chief Chad Hawkins of the Belmont Police Department; Chief Johnny Jennings of the Charlotte-Mecklenburg Police Department (CMPD); Chief Joseph D. Ramey of the Gaston County Police Department; Chief Travis Brittain of the City of Gastonia Police Department; Chief Don Roper of the Mt. Holly Police Department; and Michael Eiss of the Waxhaw Police Department.
According to filed court documents and evidence presented at trial, Foster was involved in a drug trafficking conspiracy with his two co-defendants, Reynaldo Padilla and Alejandro Padilla. Trial evidence established that on June 29, 2020, Reynaldo Padilla and Alejandro Padilla arranged the purchase of 20 kilograms of cocaine for $500,000. Trial evidence further established that Reynaldo Padilla and Alejandro Padilla met with Foster on the same day in Belmont, N.C. At that meeting, Foster handed Reynaldo Padilla a duffel bag that contained $500,000 in cash. According to trial evidence, the conspirators intended to make future purchases of 100 to 200 kilograms of cocaine, per transaction.
Both Reynaldo Padilla and Alejandro Padilla have pleaded guilty to conspiracy to possess with intent to distribute cocaine and aiding and abetting possession with intent to distribute cocaine, and are currently awaiting sentencing.
Foster is in federal custody. Foster is facing a sentence of 15 years to life in prison per charge, due to his prior federal drug trafficking conviction. A sentencing date for Foster has not been set.
In making today’s announcement, U.S. Attorney Murray thanked ICE-HSI, the Belmont Police Department, CMPD, the Gaston County Police Department, the City of Gastonia Police Department, the Mt. Holly Police Department, and the Waxhaw Police Department for the investigation and coordination in this case.
Assistant U.S. Attorney Steven R. Kaufman, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Federal Grand Jury A Indictments Announced for DecemberRead the Press Release
United States Attorney Trent Shores today announced the results of the December 2020 Federal Grand Jury A.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Joshua Michael Arneecher. Third Degree Burglary in Indian Country. (superseding) Arneecher, 33, of Tulsa, is charged with breaking into the victim’s vehicle with intent to steal items of value. The Tulsa Police Department and FBI are the investigative agencies.
Samuel James Bray and Morgan Alexandria Guevin. Robbery in Indian Country; Attempted Robbery in Indian Country; Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence. Bray, 32, and Guevin, 30, both of Tulsa, are charged with stealing and attempting to steal jewelry and a motor from the victim by force and intimidation. Further, they are both charged with brandishing a firearm during this crime of violence. The FBI and Tulsa Police Department are the investigative agencies.
Donta Keith Davis. Bank Robbery With a Dangerous Weapon; Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence. Davis, 38, of Sayre, is charged with robbing a bank by brandishing a firearm. The FBI and Tulsa Police Department are the investigative agencies.
David Allen Dean. Felon in Possession of Firearm and Ammunition; Possession of Heroin With Intent to Distribute; Possession of a Short-Barrel Shotgun in Furtherance of a Drug Trafficking Crime. Dean, 38, of Tulsa, is charged with being a felon in possession of a Mossberg 12-gauge shotgun with a 15 5/8in barrel and ammunition. Dean is a 4-time convicted felon. Further, Dean allegedly possessed heroin with the intent to distribute. He is also being charged with possessing the Mossberg short barrel shotgun in furtherance of a drug trafficking crime. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department are the investigative agencies.
Chaney Hair. Distribution of Methamphetamine. Hair, 28, of Hinton, is charged with distributing methamphetamine. The Oklahoma Bureau of Narcotics and Dangerous Drugs is the investigative agency.
Grant N. Jackson IV. Child Abuse in Indian Country. Jackson, 40, of Tulsa, is charged with child abuse after allegedly burning the young victim with scalding hot bathtub water. The FBI and Tulsa Police Department are the investigative agencies.
Floyd Twobears Joshua. Possession of Methamphetamine With Intent to Distribute; Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Joshua, 20, of Sapulpa, is charged with intentionally possessing with intent to distribute 50 grams or more of methamphetamine. He is also being charged with possessing a Taurus Judge .45 Colt/.410 caliber pistol in furtherance of a drug trafficking crime. The Drug Enforcement Administration and Jenks Public Schools Police Department are the investigative agencies.
Sajjad Ali Khan. Abusive Sexual Contact in Indian Country. Khan, 50, of Tulsa, allegedly touched the victim inappropriately without her consent. The FBI, Sapulpa Police Department, and Oklahoma State Bureau of Investigations are the investigative agencies.
John Kimble. Felon in Possession of a Firearm and Ammunition. Kimble, 32, of Tulsa, is charged with being a felon in possession of a Glock, .22 caliber pistol and ammunition. Kimble is a 10-time convicted felon. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department are the investigative agencies.
Ryan Glen McClain. Assault With a Dangerous Weapon in Indian Country; Assault by Striking, Beating, and Wounding in Indian Country; Assault Resulting in Substantial Bodily Injury to an Intimate Partner and Dating Partner in Indian Country. (Superseding) McClain, 37, of Tulsa, is charged with 3 counts of assault. On Sept. 10, McClain allegedly assaulted his dating partner by striking and wounding her with his fists and a television. The FBI and Tulsa Police Department are the investigative agencies.
Dominique Laron Morgan; Rontaysha Leann Cox; Treveon Marquise Cato. Sex Trafficking of Children; Possession of Marijuana With Intent to Distribute; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; Felon in Possession of a Firearm and Ammunition; Coercion and Enticement of a Minor to Engage in Sexual Activity; Possession of Material Involving the Sexual Exploitation of Minors. (Superseding) Morgan, 25, of Tulsa; Cox, 27, of Wichita, Kansas; and Cato, 23, of Tulsa, allegedly recruited, enticed, harbored, and advertised a minor to participate in sexual activity, profiting from her exploitation. Advertisements for the teenager were discovered on a website promoting prostitution and soliciting sex acts in exchange for money. Morgan is further charged with possession of marijuana with intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, felon in possession of a firearm and ammunition, and coercion and enticement of a minor to engage in sexual activity. Cox is also charged with possession of a firearm in furtherance of a drug trafficking crime (added in this superseding indictment), coercion and enticement of a minor to engage in sexual activity, and possession of material involving the sexual exploitation of minors. The Tulsa Police Department Vice-Human Trafficking Unit, Immigration and Customs Enforcement’s Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Ryan Thomas Phillips. Strangulation of a Dating and Intimate Partner in Indian Country; Assault Resulting in Substantial Bodily Injury to an Intimate Partner and Dating Partner in Indian Country. Phillips, 28, of Mound, is charged with two counts of assault. On April 25, Phillips allegedly assaulted his dating partner by strangling her and striking her in the face. The FBI and Glenpool Police Department are the investigative agencies.
Jonathon Ray Scott. Robbery in Indian Country. Scott, 36, of Tulsa, is charged with robbery after allegedly taking money from the victim by means of force and violence. The FBI and Tulsa Police Department are the investigative agencies.
David Owen West. Mail Fraud; Engaging in Unlawful Monetary Transactions. (Superseding) West, 59, of Drumright, is charged with 27 counts of mail fraud and 5 counts of engaging in unlawful monetary transactions. From 2013 to 2017, West allegedly devised a scheme to defraud his employer for the sake of monetary gain. According to the indictment, West oversaw the oil and gas sites for his company and was in charge of choosing vendors to assist in the maintenance and transport of production. West allegedly began stealing oil and selling it to another company. Further, West allegedly created an LLC so that the purchasers would pay him and his LLC for the stolen production. West not only defrauded his employer in this way, but also allegedly had his employer pay for the transportation and maintenance that were required for the sale of the stolen production. West had his employer mail company checks through the U.S. Postal Service; therefore, committing mass mail fraud and engagement in unlawful monetary transactions. The FBI and IRS–Criminal Investigation are the investigative agencies.
Jerry Paul Wright. Theft in Indian Country. Wright, 47, of Tulsa, is charged with stealing a 2006 Dodge Ram pickup truck from the victim. The FBI and Tulsa Police Department are the investigative agencies.
Essex County Man Admits Possessing Firearm in Furtherance of Drug Trafficking CrimeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted possessing a handgun in furtherance of a drug trafficking crime, U.S. Attorney Craig Carpenito announced today.
Ricky Terrell, 24, of Newark, pleaded guilty by videoconference before U.S. District Court Judge John Michael Vazquez to an information charging him with one count of possession of a firearm in furtherance of a drug trafficking crime, specifically, the possession with intent to distribute heroin and cocaine.
According to documents filed in this case and statements made in court:
Stephen Crane Village is a public housing complex in Newark, on the border with Belleville. From February 2019 through February 2020, law enforcement officers investigated individuals who controlled an open-air drug market that operated within Stephen Crane Village.
Through numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement determined that numerous individuals conspired to distribute and did actually distribute narcotics, including heroin, fentanyl, cocaine and cocaine base, in and around Stephen Crane Village.
On Feb. 25, 2020, law enforcement lawfully searched Terrell’s residence and recovered heroin and cocaine, a Smith & Wesson .40 caliber handgun, and numerous rounds of ammunition.
The possession of a firearm in furtherance of a drug trafficking crime carries a statutory mandatory minimum term of five years in prison, a maximum of life in prison, and a maximum fine of $250,000. Sentencing is scheduled for April 21, 2021.
U.S. Attorney Carpenito credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; the Belleville Police Department, under the direction of Chief Mark Minichini; special agents and task force officers of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark; the Newark Police Department, under the direction of Public Safety Director Anthony Ambrose; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; and the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, with the investigation leading to today’s guilty plea. He also thanked the U.S. Marshals Service, the Nutley Police Department, the Bloomfield Police Department, the West Orange Police Department, the Verona Police Department, the Orange Police Department and the Bergen County Sheriff’s Office for their assistance with this case.
This investigation was part of the Newark Violent Crime Initiative (VCI), in which the U.S. Attorney’s Office has partnered with state, federal, county, and local law enforcement to investigate crime in Newark and the surrounding cities. This case is also conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case is also a 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 ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian
The government is represented by Assistant U.S. Attorney Tracey Agnew of the Organized Crime and Gangs Unit of the U.S. Attorney’s Office in Newark.
Drug Traffickers Sentenced to 12+ Years in PrisonRead the Press Release
SHREVEPORT, La. – Acting United States Attorney Alexander C. Van Hook announced that two men from Las Vegas, Nevada, responsible for distributing large quantities of methamphetamine to the Shreveport/Bossier City area have been sentenced by United States District Judge S. Maurice Hicks, Jr.
Rodolfo Baires, a/k/a “Seiko,” 33, of Las Vegas, Nevada, was sentenced to 151 months (12 years, 7 months) in prison followed by 5 years of supervised release for conspiracy to possess with intent to distribute methamphetamine with intent to distribute.
James Lee Logan, 59, of Las Vegas, Nevada, was sentenced to 63 months (5 years, 3 months) in prison, followed by 5 years of supervised release for possession of methamphetamine with intent to distribute.
According to evidence introduced in Court, during the month of May 2017, agents with the Drug Enforcement Administration learned that an individual from Las Vegas with the nickname “Seiko” was planning to send a large quantity of methamphetamine to the Shreveport/Bossier City area sometime during that month. Law enforcement agents learned that someone named “James” would be delivering the narcotics, as well as a description of the vehicle he would be driving.
During the early morning hours of May 26, 2017, a Louisiana State Police Trooper conducted a traffic stop of a vehicle for a traffic violation. The vehicle was being driven by James Lee Logan. Logan advised law enforcement officers that he was traveling from Las Vegas to Shreveport. An open-air search was conducted by a K-9 officer which resulted in a positive indication of the presence of narcotics on a spare tire located in the rear of the vehicle. A search of the spare tire revealed eight packages of suspected methamphetamine wrapped in cellophane and brown tape, weighing 6,100 grams. The narcotics were sent to the DEA Crime Lab and tests confirmed that it was in fact methamphetamine.
Utilizing an informant after Logan’s arrest, agents received several recorded phone calls from “Seiko” inquiring as to the whereabouts of “James.” Agents were able to confirm that “Seiko” was in fact Rodolfo Baires and he was living in Las Vegas. Agents obtained a photo of Baires and a confidential source confirmed that Baires and “Seiko” were in fact one in the same and he was the individual responsible for sending 6,100 grams of methamphetamine that was seized from James Lee Logan in the Western District of Louisiana.
The DEA and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
# # #
Dominican National Pleads Guilty to Passport FraudRead the Press Release
BOSTON – A Dominican national previously residing in Malden pleaded guilty today in federal court in Boston to passport fraud.
Jairo Antonio Feliz, 35, pleaded guilty to two counts of making a false statement in a passport application. U.S. District Judge Douglas P. Woodlock scheduled sentencing for April 6, 2021.
In November 2011, Feliz applied for a U.S. passport at a post office in Lynn using the name and Social Security number of a U.S. citizen. In October 2012, Feliz again applied for a U.S. passport at a post office in Lynn using the name and Social Security number of a different U.S. citizen.
The charge of making a false statement in a passport application provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Jonathan Davidson, Special Agent in Charge of the U.S. Department of State's Diplomatic Security Service, Boston Field Division made the announcement. Assistant U.S. Attorneys Bill Abely and Charles Dell’Anno of Lelling’s Major Crimes Unit are prosecuting the case.
Doctor Admits Distributing Opioids to Patients and Soliciting Sexual Favors from Patients in Exchange for OpioidsRead the Press Release
TRENTON, N.J. – A New York doctor today admitted distributing opioids without a legitimate medical reason and soliciting sexual favors from patients in exchange for opioid prescriptions, U.S. Attorney Craig Carpenito announced.
Joseph Santiamo, 65, of Staten Island, New York, pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging him with conspiracy to distribute oxycodone, a controlled dangerous substance.
“This defendant knowingly prescribed for his patients dangerous quantities of oxycodone, and even more egregiously, solicited sexual favors from certain patients who were struggling with substance abuse in exchange for writing them additional opioid prescriptions,” U.S. Attorney Carpenito said. “Many of these patients were dealing with pain and addiction, and instead of getting help from their doctor, they were drawn deeper into the cycle of drug abuse. His admission of guilt today ensures that he will be appropriately punished for this behavior.”
“This defendant not only violated his oath to help people, he took advantage of them when they were most vulnerable for his own selfish needs,” Susan A. Gibson, Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division, said. “The only difference between him and a person who deals drugs on the street is the white lab coat he wears. The men and women of the DEA are always committed to pursue those who choose to violate the law.”
According to documents filed in this case and statements made in court:
From Jan. 1, 2012, through May 3, 2018, Santiamo owned and operated a medical practice in Staten Island focused on internal medicine and geriatric care. He prescribed large quantities of oxycodone outside the ordinary course of professional practice and without a legitimate medical purpose. For a number of his patients, there was no medical necessity for Santiamo to treat them with oxycodone, nor to prescribe the large quantities that he did. In addition, Santiamo solicited sexual favors from certain of his younger patients in exchange for unlawful oxycodone prescriptions. These patients were all under the age of 40 at the time Santiamo provided them with prescriptions and thus would not typically be treated by a geriatric care physician like Santiamo. In some instances, Santiamo did this despite evidence that certain patients were abusing opioids.
The count of conspiracy to distribute oxycodone carries a maximum penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for April 12, 2021.
U.S. Attorney Carpenito credited special agents, diversion investigators and task force officers of the DEA, under the direction of Special Agent in Charge Gibson in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Adam Baker and Chief of the Opioids Unit Melissa Wangenheim in Newark.
Denton County Methamphetamine Dealer Sentenced for Drug Trafficking ViolationsRead the Press Release
PLANO, Texas – A 41-year-old Highland Village, Texas man has been sentenced to federal prison for drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Bryan Thomas Smith pleaded guilty on August 14, 2020, to possession with intent to distribute methamphetamine and was sentenced to 70 months in federal prison today by U.S. District Judge Sean D. Jordan.
According to information presented in court, on Feb. 14, 2020, officers in Highland Village surveilled Smith’s residence in reference to previously-issued felony warrants for evading arrest in a motor vehicle. Officers stopped a vehicle for a traffic violation as it left the house. The driver was identified as an Uber driver, while the passenger falsely identified himself as “Fletcher Smith.” Officers, however, recognized the passenger as Bryan Thomas Smith and detained him. Although Smith continued to falsely maintain that he was “Fletcher Smith,” officers retrieved a wallet from the ground with Bryan Thomas Smith’s driver’s license inside. This wallet also contained $104 dollars in genuine and counterfeit United States currency. Officers also seized a glass smoking pipe from Smith’s person, and additionally found a bag in the backseat of the Uber vehicle. A later inventory conducted at the police department revealed the bag to contain:
• Counterfeit currency and uncut sheets of counterfeit currency totaling $2,220
• A journal with Smith’s name written inside the cover
• Handwritten account numbers and passwords
• A smaller bag containing four baggies of methamphetamine
• A smaller bag containing multiple MDMA tablets
• A tin case containing 16 amphetamine and dextroamphetamine pills
• Three baggies containing 13 alprazolam pills
On Feb. 18, 2020 officers executed a search warrant at Smith’s residence, locating and seizing additional amounts of methamphetamine and counterfeit United States currency. Police also seized items related to the production of counterfeit U.S. currency, including computers and printers.
Smith was indicted on March 12, 2020. On April 7, 2020, police went to Smith’s residence to execute the arrest warrant for Smith. Smith, who was standing outside near the home, once again falsely identified himself as Fletcher Smith. In an attempt to deceive officers on behalf of her son, Smith’s mother also claimed that the defendant’s identity was Fletcher Smith. Officers went into the residence to search for Smith before realizing Smith had provided a false name. Smith, meanwhile, fled from police on foot into a wooded area towards Lake Lewisville. Law enforcement pursued Smith, who jumped into the lake and tried to swim across. After nearly drowning, Smith exited the lake and attempted to hide in the woods, before being taken into custody.
This case was investigated by the U.S. Drug Enforcement Administration, U.S. Secret Service and Highland Village Police Department and prosecuted by Assistant U.S. Attorney Matthew T. Johnson.
Del City Woman Pleads Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kami Rai Gill, age 34, of Del City, Oklahoma entered a guilty plea to Drug Conspiracy in violation of Title 21, United States Code, Section 846, punishable by not less than 10 years and not more than life imprisonment, a fine up to $10,000,000.00, or both.
The Indictment alleged that beginning on November 4, 2016 and continuing until on or about the date of Indictment, in the Eastern District of Oklahoma and elsewhere, Kami Rai Gill did willfully and knowingly combine, conspire, confederate, and agree with others known and unknown, including Enrique Pacheco and Lilliana Alvarez Soto, to violate federal drug laws by acquiring kilograms of heroin and distributing it for money. On two separate dates in August 2019, Gill possessed with the intent to distribute over 500 grams of heroin in Oklahoma City.
The charges arose from a joint investigation led by the Drug Enforcement Administration, along with the Federal Bureau of Investigation, the Internal Revenue Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Oklahoma Bureau of Narcotics and Dangerous Drugs, the Oklahoma Department of Corrections, the Oklahoma Highway Patrol, the Muskogee County Sheriff’s Office, the Muskogee Police Department, and the Tulsa County Sheriff’s Office. Additionally, many prominent agencies which are members of the DEA High Intensity Drug Trafficking Area Task Force (“HIDTA”), contributed to this investigation, including: the Tulsa Police Department, the Broken Arrow Police Department, the Chickasaw Nation Lighthorse Police Department, the Miami Police Department, the Moore Police Department, the El Reno Police Department, the Yukon Police Department, the Duncan Police Department, the Norman Police Department, the Choctaw Police Department, the Edmond Police Department, the Oklahoma County Sheriff’s Office, the Canadian County Sheriff’s Office, the Rogers County District Attorney’s Office, and the Oklahoma County District Attorney’s Office. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (“OCDETF”) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Rob Wallace, Assistant United States Attorney Ryan Conway, and Special Assistant United States Attorney Christopher Schroeder represented the United States.
Defendants Sentenced for Drug Trafficking, Witness Tampering, and Other Related OffensesRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that U.S. District Judge Janet T. Neff sentenced Melvin James Harris, 46, of Peshawbestown, Michigan, to 240 months in prison for committing five felonies between August and November, 2019. A jury convicted Harris in July 2020 of distributing cocaine, assaulting a federal officer, contempt of court, conspiracy to witness tamper, and witness tampering. The jury also convicted Harris’ sister, Vanessa Louis Hunter, 45, of Rockford, Illinois, of conspiring with Harris to tamper with a witness. A third member of the conspiracy, Corey John Raphael, pled guilty to joining the conspiracy as well. Hunter was sentenced to 18 months in prison, and Raphael was sentenced to 33 months.
The evidence at trial showed that on August 14, 2019, Harris sold cocaine to an individual who was assisting police with narcotics investigations. Harris chose the location for the sale – a spot within the Grand Traverse Band of Ottawa and Chippewa Indians’ community, commonly known as Peshawbestown. Four days later, Harris assaulted a federal officer who was attempting to arrest him.
In September 2019, Harris was charged in federal court with distributing cocaine and assaulting an officer. After he learned the identity of the person who had assisted police with the narcotics investigation, Harris conspired with Hunter, Raphael, and others to tamper with that witness, in an effort to discourage the witness from testifying against him. Harris ultimately succeeded in contacting the witness through intermediaries and asked the witness not to go to court. Harris also disseminated the witness’s name and other personal information in violation of a court order. He used the jail’s phone system to do so, and he directed his co-conspirators and associates to further disseminate the information through Facebook and other means. Additional charges against Harris, Hunter, and Raphael soon followed.
Harris has a long, violent criminal history and was classified as a “career offender” at sentencing. In its sentencing memo, the United States emphasized Harris’ extensive criminal history, which started in his teens and continued unabated into his 40’s. The United States noted that violence and drug trafficking were recurrent themes throughout his history, and he had earned 18 criminal history points. The United States noted at sentencing that Harris had literally made a career out of crime, and it was time for that career to end.
As for Harris, Hunter, and Raphael’s efforts to tamper with witnesses and obstruct justice, the United States argued that this conduct struck at the heart of the criminal justice system and warranted a significant sentence.
“The sentences imposed in this case send a clear message to those who would try to sell drugs, assault federal officers, and tamper with witnesses,” said U.S. Attorney Andrew Birge. “My Office takes these cases seriously and will vigorously prosecute them.”
This case was jointly investigated by the Traverse Narcotics Team, Drug Enforcement Administration, Grand Traverse Band Tribal Police Department, Leelanau County Sheriff’s Office, and Michigan State Police.
###
Defendant Sentenced in $25 Million Diamond Ponzi SchemeRead the Press Release
Miami, Florida – A South Florida federal district judge sentenced a Washington D.C. man who operated a fraudulent diamond investment scheme to serve 84 months in federal prison and pay over $23 million in victim restitution.
From about May 2014 through May 2019, defendant Jose Angel Aman and his partners solicited people throughout the United States and Canada to invest in diamond contracts. Aman and his partners promised investors that they would use the money to purchase rough colored diamonds for Aman to cut, polish and resell at a profit. They reassured investors that their money was safe because it was secured by Aman’s inventory of diamonds (purportedly valued at $25 million). Aman and his partners presented the investment as a high return, no risk deal.
These promises and statements were false. Aman rarely used investors’ money to purchase, cut, and resell rough diamonds. Nor did Aman have a $25 million diamond inventory. To conceal the fraud, Aman made purported interest payments to existing investors with money from new investment victims. At the end of the investment period, Aman and the partners would convince the investors to roll over their money by falsely claiming that the investors had the full value of their investments to put into new deals. They provided sham “Reinvestment Contracts” to the investors, a tactic they used to buy time until Aman could locate new investors and additional money.
When this scheme was about to collapse, Aman set up a new business, Argyle Coin, LLC, which was purportedly in the business of developing a cryptocurrency token backed by diamonds. Aman solicited new investors for Argyle, promising high rates of return with no risk. Aman used only a fraction of the money received from Argyle investors to develop a cryptocurrency token. He used most of it to pay purported interest payments to the earlier investors and to benefit himself and his partners.
During the course of the Ponzi scheme, Aman and his partners collected over $25 million from hundreds of investors. Among other things, Aman used the money to support his lavish lifestyle.
Aman was sentenced by U.S. District Judge Rodolfo A. Ruiz II, who sits in Fort Lauderdale. This matter was investigated by FBI West Palm Beach, with assistance from the Florida Office of Financial Regulation. AUSAs Ellen Cohen and Adrienne Rabinowitz prosecuted this case.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami Field Office, made the announcement.
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 at http://pacer.flsd.uscourts.gov, under case number 20-cr-80062.
###
Cryptocurrency Founder “Bruno Block” Charged with Multimillion-Dollar Tax Evasion SchemeRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Kelly R. Jackson, Special Agent in Charge of the Washington, D.C., Field Office of the Internal Revenue Service, Criminal Investigation Division (“IRS-CI”), announced today the unsealing of an Indictment in Manhattan federal court charging AMIR BRUNO ELMAANI, a/k/a “Bruno Block,” the founder of the cryptocurrency “Oyster Pearl,” with tax evasion. As alleged, ELMAANI made millions of dollars from the sale of a new cryptocurrency but evaded reporting that income to the IRS, including by filing a false tax return, operating his business and owning assets through pseudonyms and shell companies, obtaining income through nominees, and dealing in gold and cash. ELMAANI was arrested this morning in Martinsburg, West Virginia, and will be presented later today before United States Magistrate Judge Robert W. Trumble in the Northern District of West Virginia. The case is assigned to Chief United States District Judge Colleen McMahon in the Southern District of New York.
In a separate civil action, the Securities and Exchange Commission is filing civil charges against ELMAANI today.
Acting Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Amir Bruno Elmaani purported to establish a high-tech method of financing a high-tech business, but the underlying scheme was old-fashioned fraud and tax evasion. Elmaani allegedly generated millions by soliciting investor money through his own cryptocurrency, adding to the purportedly fixed number of tokens and converting them to other cryptocurrencies, and failing to report or pay tax on any of the proceeds. Thanks to the FBI and IRS-CI, Elmaani is now in custody and facing federal prosecution.”
FBI Assistant Director William F. Sweeney Jr. said: “Taking advantage of the ever-so-popular cryptocurrency market, Elmaani allegedly capitalized on the investments of those who purchased virtual currency through Oyster Pearl, which he founded. As it turns out, Elmaani was funneling the proceeds of his alleged cryptocurrency scheme through a shell company that hid the true nature of his financial interests, ultimately never paying taxes on his earnings. With minimal reported income in 2018, he still managed to spend over $10 million for the purchase of yachts, but after today’s arrest, he won’t be sailing anywhere anytime soon.”
IRS Special Agent-in-Charge Kelly R. Jackson said: “Ensuring the integrity of our tax system is a priority of IRS-CI. Evading taxes only aims to deteriorate the confidence in this system and those who fail to pay their fair share will be investigated. Using cryptocurrency as a means to defraud and evade taxes will not stop our agents from doing what we do best – following the money.”
As alleged in the Indictment unsealed today in Manhattan federal court:[1]
In September and October 2017, ELMAANI began promoting online his new cryptocurrency known as Pearl tokens. Using a variation of his online pseudonym “Bruno Block,” ELMAANI stated that he planned to develop an online data-storage platform, known as Oyster Protocol, which would allow users to purchase online data storage with Pearl tokens. Instead of using his real name, ELMAANI operated almost exclusively online under the pseudonym “Bruno Block.” ELMAANI concealed his true identity from his prospective employees and business associates and never met them in person.
In the fall of 2017 and thereafter, ELMAANI sold Pearl tokens to the investing public through an “initial coin offering” and on cryptocurrency market platforms. ELMAANI announced that he intended to take a “founder’s share” of Pearl tokens for his own personal use. ELMAANI owned and controlled the subsequently established company Oyster Protocol Inc. through a shell company not associated with his true name.
In a statement issued under ELMAANI’s online pseudonym on June 7, 2018, ELMAANI stated that he was retaining millions of Pearl tokens as his “ownership stake” in Oyster Protocol, but that he had to move the tokens to a different cryptocurrency wallet “in order to avoid being double-taxed.” In truth, ELMAANI did not report or pay tax on any of his cryptocurrency proceeds. At various points, ELMAANI used friends and family as nominees to receive cryptocurrency proceeds and transfer them or U.S. currency to his own accounts.
ELMAANI dealt substantially in precious metals, kept gold bars in a safe on a yacht he owned, and used large amounts of cash to pay personal expenses.
In late October 2018, although the number of Pearl tokens was purportedly fixed, ELMAANI used his access to the blockchain technology used to create Pearl tokens to mint new tokens, which he took for his own personal use (the “Exit Scheme”). ELMAANI thereby increased the total volume of Pearl tokens. Shortly after creating the new tokens, ELMAANI converted the Pearl tokens he had obtained to other types of cryptocurrency on an online marketplace or exchange. As a result of ELMAANI’s conduct, trading in Pearl tokens halted on that exchange and the price of Pearl tokens held by investors dropped substantially. Pearl tokens were subsequently de-listed from the primary exchange where they were traded. Subsequent to the Exit Scheme, ELMAANI used his friends and family to receive cryptocurrency and to transfer funds to a bank account in his name.
While ELMAANI initially attempted to hide even “Bruno Block’s” involvement in the Exit Scheme, he later effectively admitted to the conduct online under his “Bruno Block” pseudonym. In a recorded call with the then-chief executive officer (“CEO”) of Oyster Protocol Inc., after the Exit Scheme, the CEO asked ELMAANI why he had to take the additional new Pearl tokens if he had already cashed out millions of dollars’ worth of Pearl tokens in the past. ELMAANI responded, in part, that “taxes are pretty nasty.” ELMAANI carried out the Exit Scheme only days before the exchange he had used to cash out his Pearl tokens was set to require “know your customer” personal identifying information from its users.
ELMAANI filed a false 2017 tax return stating that he had only approximately $15,000 of income from a “patent design” business, and he filed no return and reported no income to the IRS in 2018. Nevertheless, ELMAANI spent, in 2018, over $10 million for the purchase of multiple yachts, $1.6 million at a carbon fiber composite company, hundreds of thousands of dollars at a home improvement store, and over $700,000 for the purchase of two homes, one of which was titled in the name of a shell company and the other in the name of two of his associates.
* * *
ELMAANI, 28, is charged with two counts of tax evasion, each of which carries a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Ms. Strauss praised the investigative work of the FBI and IRS-CI and also thanked the Securities and Exchange Commission and the Commodity Futures Trading Commission for their assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Margaret Graham and Drew Skinner are in charge of the prosecution.
The charges contained in the Indictment 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 Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Civil Rights Division Opens Investigation into Potential Discrimination in Public ContractingRead the Press Release
The Department of Justice Civil Rights Division has opened an investigation into whether the public contracting and procurement practices of Kansas City, Missouri, comply with the U.S. Constitution and the Civil Rights Act of 1964.
“No person anywhere in the United States should be subjected to unlawful discrimination on the ground of race, color or national origin, and the Civil Rights Act makes Kansas City, Missouri’s receipt of federal funding contingent on keeping that commitment,” said Eric Dreiband, Assistant Attorney General for Civil Rights. “All government in this free country must treat all persons with equal dignity and respect and without dividing people into racial and ethnic blocs for the purpose of labelling certain people winners and others losers because of their race. The Department of Justice today opened an investigation to determine whether Kansas City, Missouri’s contracting program complies with the United States Constitution and the Civil Rights Act.”
According to publicly available information, for at least 24 years, Kansas City has used quota-based “set asides” in nearly 30 percent of all public contract dollars to favor certain people because of their race and sex and disfavor others.
The department is opening an investigation into Kansas City’s public contracting and procurement programs to determine whether those programs violate Title VI, which prohibits race discrimination by entities receiving federal funds
Title VI incorporates the anti-discrimination protections of the Equal Protection Clause of the U.S. Constitution’s Fourteenth Amendment. Discrimination on the ground of race in public contracting in the form of quota-based set asides may violate the Equal Protection Clause, which provides that “[n]o state shall . . . deny to any person within its jurisdiction the equal protection of the laws.”
“Classifications based on race carry a danger of stigmatic harm. Unless they are strictly reserved for remedial settings, they may in fact promote notions of racial inferiority and lead to a politics of racial hostility.” See City of Richmond v. J.A. Croson Co., 488 U.S. 469, 493 (1989) (plurality opinion). Quota-based set asides may violate both the Equal Protection Clause and Title VI. In City of Richmond, the Supreme Court determined that a 30 percent minority set-aside by the City of Richmond, Virginia violated the Constitution.
The notice of investigation is not a finding of fault or wrongdoing by the city or any other individual or entity, and the department has not reached any conclusions about these matters.
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Charlie Peeler Announces Resignation as U.S. Attorney for the Middle DistrictRead the Press Release
MACON, Ga. – Charlie Peeler, the U.S. Attorney for the Middle District of Georgia, is resigning as U.S. Attorney effective 11:59 p.m., December 11, 2020. Following his resignation, he plans on reentering private practice with a law firm in Atlanta, Georgia.
“Serving as the United States Attorney for the Middle District of Georgia has been the most rewarding experience of my professional career. I thank the President for the trust he placed in me, and I thank Attorney General Barr and former Attorney General Sessions for their leadership and support. I am deeply grateful for the opportunity to have worked with the talented men and women in the United States Attorney’s Office and our brave and dedicated federal, state and local law enforcement to protect our citizens and make the Middle District of Georgia a better place,” said U.S. Attorney Peeler.
“I want to thank U.S. Attorney Charlie Peeler for his dedicated service to the people of Georgia,” said Governor Brian Kemp. “Working together, we cracked down on gang violence and made incredible progress in our fight to end human trafficking in Georgia. On behalf of all Georgians, Marty and I are grateful for Charlie’s steadfast commitment to the Peach State, and we wish him well in his future endeavors.”
“Charlie Peeler has served the state of Georgia with honor and integrity as the United States Attorney for the Middle District of Georgia,” said Attorney General Chris Carr. “As a long-time friend, I had the pleasure of speaking at USA Peeler’s swearing-in ceremony to kick off his tenure, and every day since, we have been partnering to combat gang violence, eradicate human trafficking, curb opioid abuse, crack down on Medicaid fraud and more. USA Peeler will leave the Middle District in a safer and more prosperous state, and he will be missed as he returns to private practice. We thank him greatly for his service these past three years.”
“It has been an honor and a privilege to work with Charlie Peeler over the last three years. Charlie has been a good friend to law enforcement throughout the state of Georgia,” said U.S. Marshal John Cary Bittick. “In my opinion, Charlie has been a great United States Attorney and a great representative of the Middle District of Georgia.”
“It has been an honor working side-by-side with Charlie Peeler. He has done a great job as the U.S. Attorney and we will miss him,” said GBI Director Vic Reynolds.
“The citizens of this state and this country should be grateful for the commitment, dedication and accomplishments that U.S. Attorney Charlie Peeler has achieved over the past three years,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI could not be more appreciative of the partnership we have developed with him and his office in our effort to protect our citizens and uphold our Constitution. All of us at the FBI Atlanta field office and resident agencies in the Middle District of Georgia wish this great public servant as much success in private practice.”
“The citizens of the Middle District of Georgia were well served by U.S. Attorney Charles Peeler,” said Robert J. Murphy, the Special Agent in Charge of the U.S. Drug Enforcement Administration’s Atlanta Field Division. “It was refreshing to work with a man whose guiding principles were doing what was right and making the community a safer place. Charlie worked hand-in-hand with law enforcement on a daily basis to make sure we were bringing to justice those who preyed on our community. I wish Charlie well in his future endeavors. Hopefully, Charlie will have an opportunity to serve our country again.”
“U.S. Attorney Charlie Peeler understands the needs of each community he has served,” said Arthur Peralta, Special Agent in Charge of ATF Atlanta. “As the U.S. Attorney, Charlie Peeler has served with distinction and honor. He has inspired us to seek justice for those who cannot do it on their own. He has provided an example of courage for us to emulate and even though he holds a high position, he is a friend to each one of us. The Atlanta Field Division extends profound gratitude to U.S. Attorney Peeler for his service to the Nation and to our Georgia communities.”
“The United States Secret Service and the US Attorney’s Office, Middle District of Georgia, have always been strong partners. United States Attorney Charlie Peeler made that relationship even better throughout his tenure,” said Clint A. Bush, Resident Agent in Charge, United States Secret Service, Albany Georgia Resident Office. “United States Attorney Peeler maintained an unwavering dedication to ensure those who sought to commit financial fraud against the United States of America and the citizens of Georgia would be held accountable. His professional contributions to safeguard our financial system and communities have greatly benefited us all and for that we are very grateful.”
U.S. Attorney Peeler, a graduate of the University of Georgia and the University of Georgia School of Law, has served as the U.S. Attorney for the Middle District of Georgia since 2017. During his tenure, U.S. Attorney Peeler implemented an effective and sustainable strategy to combat violent crime in all five divisions in the Middle District of Georgia. He also created a Complex Fraud Unit in the Office to detect, investigate and eliminate fraud by maximizing parallel civil and criminal divisions’ resources. During his three-years as U.S. Attorney, the Office grew to its highest number of Assistant U.S. Attorneys and prosecuted more criminal defendants than any other three-year period in the Office’s recorded history. The U.S. Attorney’s Office also began reentry forums, pairing recently released inmates with non-profits to assist them in obtaining jobs, housing and education. Under U.S. Attorney Peeler’s leadership, the office partnered with the Peyton Anderson Foundation, the Federal Defender’s Office and the U.S. District Court to create and distribute “Armed With Knowledge,” an educational program centered on a short film warning children and teenagers of the life-altering consequences of unlawful firearm possession.
U.S. Attorney Peeler served on the Attorney General’s Subcommittee for Cybercrime and Intellectual Property and the Subcommittee for Service Members and Veterans Rights. U.S. Attorney Peeler also chaired the Department of Justice’s Investment Review Board, which is responsible for vetting and recommending technology purchases for the Department of Justice.
The Middle District of Georgia covers 70 of Georgia’s 159 counties and includes Albany, Valdosta, Columbus, Macon and Athens. The U.S. Attorney’s Office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, child exploitation, fraud, firearms, illegal gangs and narcotics. The office also defends the United States in civil cases, pursues civil fraud matters on behalf of the United States and collects debts owed to the United States. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Charleston Man Pleads Guilty to Possession of Child PornographyRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today that Christopher Ryan Christian Counts, 28, of Charleston, pled guilty to possession of child pornography.
“Egregious crime,” said United States Attorney Mike Stuart. “Counts is a repeat offender with two prior sex offense convictions in state court. We will continue to prosecute to the fullest extent of the law those who prey on our children.”
Counts admitted that on December 31, 2019, he possessed 259 images and 14 videos of child pornography, many of which depicted prepubescent minors engaged in sexually explicit conduct. Some of the images and videos contained scenes depicting minors and infants engaged in sadistic or masochistic conduct. Counts has two prior sex offense convictions in Kanawha County Circuit Court.
Counts faces up to twenty years in prison when sentenced on March 29, 2021.
The West Virginia State Police Internet Crimes Against Children (ICAC) Task Force and Homeland Security Investigations (HSI) conducted the investigation. Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Julie M. White is handling the prosecution.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00130.
Follow us on Twitter: SDWVNews and USAttyStuart
###