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3 December 2020
14 Defendants Indicted for Participation in Manhattan Drug Trafficking OrganizationRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations (“HSI”) in New York, and Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of an indictment charging KENNETH SPEARMAN, a/k/a “Big Man,” a/k/a “Big Fella,” a/k/a “Friend,” SHELDON CLARK, a/k/a “Sal,” ERIC GRANT, a/k/a “E,” SIRRON STAFFORD, a/k/a “Sherm,” CAMERON FRANCIS, a/k/a “Cam,” ISAIAH LEDGISTER, a/k/a “Pooch,” TRISTAN OLIVER, a/k/a “Jay,” JOSEPH CAMPBELL, a/k/a “JoJo,” ERIC GASTON, HARVEY FOSTER, a/k/a “Fresh,” MAURICE WOMACK, a/k/a “Moe,” REGINALD CLAXTON, a/k/a “Dread,” a/k/a “Reggie,” LAVELLE MAITLAND, a/k/a “Vee,” and RAY BOYD, a/k/a “Mustafa,” with participating in a conspiracy to distribute crack cocaine in the vicinity of Adam Clayton Powell Jr. Boulevard (also known as 7th Avenue) between approximately 120th Street and 123rd Street, in Harlem. The case is assigned to U.S. District Judge Alvin K. Hellerstein.
Acting Manhattan U.S. Attorney Audrey Strauss said: “As alleged in the Indictment, the defendants were responsible for selling large amounts of crack cocaine in Manhattan. Thanks to the extraordinary work of our partners at NYPD and HSI, the defendants now face federal charges for their crimes.”
HSI Special Agent in Charge Peter C. Fitzhugh said: “HSI and NYPD dismantled a criminal organization that allegedly trafficked and distributed heroin and cocaine while terrorizing our streets with violence and no regard for the welfare of our community. Eradicating this ruthless syndicate will provide some relief to our neighborhoods, and is a step forward in an effort to safeguard our homeland.”
NYPD Commissioner Dermot Shea said: “The NYPD is relentless in combating the kind of violent crimes alleged in this federal indictment, which tear at the fabric of life in New York. I commend the United States Attorney’s Office for the Southern District of New York, and all of our partners, for their sustained focus in this important case.”
As alleged in the Indictment unsealed today in Manhattan federal court and in other court papers and proceedings[1]:
From at least in or about November 2019 up to and including in or about November 2020, KENNETH SPEARMAN, a/k/a “Big Man,” a/k/a “Big Fella,” a/k/a “Friend,” SHELDON CLARK, a/k/a “Sal,” ERIC GRANT, a/k/a “E,” SIRRON STAFFORD, a/k/a “Sherm,” CAMERON FRANCIS, a/k/a “Cam,” ISAIAH LEDGISTER, a/k/a “Pooch,” TRISTIAN OLIVER, a/k/a “Jay,” JOSEPH CAMPBELL, a/k/a “JoJo,” ERIC GASTON, HARVEY FOSTER, a/k/a “Fresh,” MAURICE WOMACK, a/k/a “Moe,” REGINALD CLAXTON, a/k/a “Dread,” a/k/a “Reggie,” LAVELLE MAITLAND, a/k/a “Vee,” and RAY BOYD, a/k/a “Mustafa,” participated in a conspiracy to distribute 280 grams and more of crack cocaine in and around Adam Clayton Powell Jr. Boulevard (also known as 7th Avenue) between approximately 120th Street and 123rd Street, in Harlem.
On or about November 3, 2020, in the same area, FRANCIS and two others robbed at gunpoint someone attempting to purchase narcotics and a firearm from FRANCIS.
* * *
KENNETH SPEARMAN, a/k/a “Big Man,” a/k/a “Big Fella,” a/k/a “Friend,” 45, SHELDON CLARK, a/k/a “Sal,” 55, ERIC GRANT, a/k/a “E,” 45, TRISTIAN OLIVER, a/k/a “Jay,” 43, ERIC GASTON, 36, REGINALD CLAXTON, a/k/a “Dread,” a/k/a “Reggie,” 57, LAVELLE MAITLAND, a/k/a “Vee,” 25, and RAY BOYD, a/k/a “Mustafa,” 57, were arrested yesterday and presented before United States Magistrate Judge Katharine H. Parker. JOSEPH CAMPBELL, a/k/a “JoJo,” 27, was arrested yesterday and will be presented before Judge Parker today. SIRRON STAFFORD, a/k/a “Sherm,” 43, CAMERON FRANCIS, a/k/a “Cam,” 20, ISAIAH LEDGISTER, a/k/a “Pooch,” 30, HARVEY FOSTER, a/k/a “Fresh,” 36, and MAURICE WOMACK, a/k/a “Moe,” 51, remain at large.
A chart containing the names, charges, and maximum penalties for each of the defendants is set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of a defendant would be determined by the judge.
Ms. Strauss praised the outstanding investigative work of HSI and the NYPD.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Ryan B. Finkel, Alexander Li, and Andrew A. Rohrbach are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Count
Defendants
Max. Penalty
Count One: Conspiracy to Distribute Controlled Substances (21 U.S.C. § 846)
KENNETH SPEARMAN, a/k/a “Big Man,” a/k/a “Big Fella,” a/k/a “Friend”
SHELDON CLARK, a/k/a “Sal”
ERIC GRANT, a/k/a “E”
SIRRON STAFFORD, a/k/a “Sherm”
CAMERON FRANCIS, a/k/a “Cam”
ISAIAH LEDGISTER, a/k/a “Pooch”
TRISTAN OLIVER, a/k/a “Jay”
JOSEPH CAMPBELL, a/k/a “JoJo”
ERIC GASTON
HARVEY FOSTER, a/k/a “Fresh”
MAURICE WOMACK, a/k/a “Moe”
REGINALD CLAXTON, a/k/a “Dread,” a/k/a “Reggie”
LAVELLE MAITLAND, a/k/a “Vee”
RAY BOYD, a/k/a “Mustafa”
Life imprisonment; Mandatory minimum sentence of 10 years
Count Two: Conspiracy to Commit Hobbs Act Robbery (18 U.S.C. §§ 1951 and 2)
CAMERON FRANCIS, a/k/a “Cam”
20 years’ imprisonment
Count Three: Hobbs Act Robbery (18 U.S.C. §§ 1951 and 2)
CAMERON FRANCIS, a/k/a “Cam”
20 years’ imprisonment
Count Four: Possession of a Firearm in Furtherance of a Crime of Violence, which Firearm was Brandished (18 U.S.C. §§ 924(c) and 2)
CAMERON FRANCIS, a/k/a “Cam”
Life imprisonment; Mandatory minimum sentence of 7 years
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
110 Gang Members Sentenced to Decades in Federal PrisonRead the Press Release
SYRACUSE, NEW YORK – Jamar Long, 25, and Reddell Smith, 35, both of Syracuse, were sentenced today to serve 210 months (Long), and 78 months (Smith), respectively, in federal prison for violating the Racketeering Influenced Corrupt Organizations Act (RICO), announced Acting United States Attorney Antoinette T. Bacon, Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and Syracuse Police Chief Kenton Buckner. Senior United State District Judge Frederick J. Scullin, Jr. also ordered Long and Smith to serve three years of supervised release following their terms of incarceration.
During his guilty plea, Long admitted to driving a car from which co-defendant and fellow 110 Gang member Anthony Hopper fired multiple shots at an individual in October 2014 – identified in the indictment as “Victim-3” – which caused that individual to lose control of his car, crash into a tree, and die. A federal jury found Anthony Hopper guilty of RICO violations, including Victim 3’s death, following a trial in October 2019. Long also admitted to selling drugs in 110 Gang territory. In imposing sentence, Senior Judge Scullin found that Long had possessed weapons and committed other acts of violence on behalf of the gang.
During his guilty plea, Smith admitted to stabbing another individual in December 2017 while with co-defendant and fellow 110 Gang member Damani Prince. Smith also admitted to selling crack cocaine in 110 Gang territory during 2017. Smith was previously convicted in 2011 of RICO violations, based on his membership in the 110 Gang. Smith was also sentenced today to serve an additional 13 months in prison for violating the terms of his supervised release on the 2011 RICO conviction.
Long and Smith were among fourteen defendants charged in the case. All of the defendants have either pleaded guilty or been convicted following trial. Previously sentenced 110 Gang RICO defendants in this case include:
- Anthony Hopper was sentenced to 385 months in prison, followed by a 5-year term of supervised release;
- Damani Prince was sentenced to 78 months in prison, followed by a 3-year term of supervised release;
- Rashawn Wynn was sentenced to 92 months in prison, followed by a 3-year term of supervised release;
- Davon Sullivan was sentenced to 68 months in prison, followed by a 3-year term of supervised release;
- Qualik Vaughn was sentenced to 68 months in prison, followed by a 3-year term of supervised release;
- Jason Lebron was sentenced to 92 months in prison, followed by a 3-year term of supervised release;
- Javon Peterson was sentenced to 98 months in prison, followed by a 3-year term of supervised release;
- Daquan Dowdell was sentenced to 120 months in prison, followed by a 3-year term of supervised release;
- Terry Linen was sentenced to 110 months in prison, followed by a 3-year term of supervised release;
- Deshawnte Waller was sentenced to 80 months in prison, followed by a 3-year term of supervised release; and
- Kemnorris Kinsey was sentenced to 150 months in prison, followed by a 3-year term of supervised release.
This case was investigated by the Federal Bureau of Investigation (FBI), the Syracuse Police Department, and the Gang Violence Task Force, which consists of members of the Syracuse Police, the FBI, the U.S. Drug Enforcement Administration (DEA), the U.S. Marshals Service, the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New York State Police, the New York State Department of Corrections, the New York State Attorney General, and the Onondaga County District Attorney’s Office. This case was prosecuted by Assistant U.S. Attorneys Nicolas Commandeur and Kristen Grabowski.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
2 December 2020
Wilkinsburg Man Sentenced in “SCO” Gang Drug Trafficking CaseRead the Press Release
PITTSBURGH, PA - A former resident of Pittsburgh, Pennsylvania has been sentenced in federal court on convictions of narcotics trafficking, United States Attorney Scott W. Brady announced today.
On December 1, 2020, Senior United States District Judge Arthur J. Schwab imposed the sentence of eight years of imprisonment, followed by eight years of supervised release, on Justin Law, 31, formerly of Wilkinsburg, PA.
According to information presented to the Court, the Greater Pittsburgh Safe Streets Task Force conducted a long-term investigation of drug trafficking occurring in and around the Braddock section of Pittsburgh. Law enforcement identified several individuals who were illegally distributing controlled substances in the Greater Pittsburgh Region, as members of a neighborhood-based street gang, self-titled "SCO" and whose leader was identified as Howard McFadden.
In January of 2019, investigators obtained authorization to conduct a federal wiretap investigation, which continued through May of 2019. As a result of this investigation, Law, along with 32 others were indicted in June of 2019 by a federal grand jury in three separate, but related, Indictments.
The Court was informed that intercepted communications confirmed that Law was conspiring with others to possess with intent to distribute and distribute heroin and is an associate of one of the main members of the conspiracy and of "SCO." The Court was further informed that Law was a fugitive from June 12, 2019, when law enforcement executed numerous federal arrest and search warrants, until October 3, 2019, when he was arrested by the United States Marshals Western District of Pennsylvania Fugitive Task Force.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
United States Attorney Brady commended the multi-agency team, which was led by the Federal Bureau of Investigation, for the investigation leading to the successful prosecution of Law. Partners in this investigation included the Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pennsylvania State Police, Pennsylvania Attorney General’s Office Bureau of Narcotics, and the Pittsburgh Bureau of Police. Other assisting agencies included the Monroeville Police Department, Penn Hills Police Department, Wilkinsburg Police Department, and Allegheny County Adult Probation.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
Wichita Man Pleads Guilty to Armed RobberiesRead the Press Release
WICHITA, KAN. – A Wichita man pleaded guilty today in connection with a series of armed robberies, U.S. Attorney Stephen McAllister said.
Brelen Vonfange, 28, Wichita, Kan., pleaded guilty to one count of robbery and one count of brandishing a firearm during a robbery. In his plea, VonFange admitted doing a robbery at a Kwik Shop at 3601 E. 47th South, as well as brandishing a firearm during another robbery at a QuikTrip at K-15 and 31st South.
In addition, VonFange admitted committing other robberies that will be considered during sentencing. Those include robberies at a Kwik Shop at 710 W. 29th and a Kwik Shop at 3959 S. Hydraulic.
In September, co-defendant Shaiquille Harris, 26, Wichita, Kan., was sentenced to 115 months in federal prison. Harris admitted driving Vonfange to the robberies.
Sentencing for Vonfange is set for Feb. 17. He could face up to 20 years in federal prison and a fine up to $250,000 on the robbery charge, as well as a penalty of not less than seven years and a fine up to $250,000 on the charge of brandishing a firearm.
McAllister commended the Wichita Police Department, the FBI and Assistant U.S. Attorney David Lind for their work on the case.
Wheeling woman admits to methamphetamine distributionRead the Press Release
WHEELING, WEST VIRGINIA – Kathleen Everly, of Wheeling, West Virginia, has admitted to a drug charge, U.S. Attorney Bill Powell announced.
Everly, also known as “Katie,” 38, pled guilty today to one count of “Aiding and Abetting the Distribution of Methamphetamine.” Everly admitted to working with another to sell methamphetamine in July 2019 in Ohio County.
Everly faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Utah man who trafficked meth from camper on Fort Peck Indian Reservation sentenced to prisonRead the Press Release
GREAT FALLS — A Utah man who towed a camper to the Fort Peck Indian Reservation and trafficked methamphetamine in the community was sentenced today to 51 months in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
Jeffrey Allen Dabb, 39, of Ogden, Utah, pleaded guilty on Sept. 1 to conspiracy to possess with intent to distribute meth.
Chief U.S. District Judge Brian M. Morris presided.
In court documents filed in the case, the prosecution said that Dabb, and his co-defendant, Andrew Michael Gomez, towed a camper from Utah and rented a vacant lot on the reservation. In August 2019, a Wolf Point Police officer received information about drug activity on property where the camper was parked. The officer obtained a tribal search warrant to enter the property and seize the camper. Dabb, Gomez and another individual were in the camper. Dabb said that they were in the area to work in the North Dakota oil fields and denied there was anything illegal in the camper.
During a search of the camper, law enforcement found more than 6.5 ounces of meth, drug ledgers, electronic money transfer receipts showing money wires to individuals in Utah, a set of brass knuckles with a built-in knife, scales, baggies and other drug paraphernalia.
Gomez pleaded guilty in the case and is awaiting sentencing.
Assistant U.S. Attorney Ethan Plaut prosecuted the case, which was investigated by the FBI and Fort Peck Law Enforcement Services.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 48% from 2013 to 2019. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Unsealed 14-Count Indictment Charges Six Individuals in Connection with Bluetooth Gas Skimming SchemeRead the Press Release
SALT LAKE CITY – A federal indictment unsealed Tuesday morning charges six individuals with conspiracy to steal money from customers at various gas stations in Utah and elsewhere. The indictment alleges the defendants and their co-conspirators executed the conspiracy by using Bluetooth enabled skimming equipment that they installed on the motherboard of the internal computer that controls the gas pumps. Victims of the alleged scheme lost at least $200,000.
Charged in the indictment are Yosbel Delgado-Valdes, age 40, Iraldo Pereda-Mendez, 32, Emmanuel Nina-Perez, 28, Jandry Artigas-Reyes, 35, and Yarislani Padron-Cruz, 35, all of Salt Lake City, and Yofre Napoleon Almonte, 47, a citizen of the Dominican Republic currently being held in the Davis County Jail on unrelated charges. In addition to Almonte, who is not a U.S. citizen, three defendants are legal permanent residents of the United States, one is a naturalized U.S. citizen, and one has an application pending for legal permanent resident status.
The skimming equipment contains a Bluetooth card reader/recorder that records information – such as customers’ credit card numbers and the name and zip code associate with the card – from the magnetic strip of customers’ cards as the customers insert the cards into gas pumps, according to the indictment. The defendants and their co-conspirators only needed to get within the necessary range of the Bluetooth skimming device to initiate a wireless Bluetooth connection to the device still inside the gas pump.
The indictment alleges the defendants then downloaded the digital credit card or debit card information that had been captured and stored in their skimming devices. They were then able to use the captured data to create duplicate “cloned” cards encoded with the same data as the customers’ authentic credit or debit cards.
After making the cloned cards, the defendants and their co-conspirators tested the cards by attempting small transactions – typically $1 – to identify which of the cloned cards were viable and could be used to make larger purchases.
After testing the cards, the defendants and their co-conspirators moved to what the indictment calls the “cash out” phase. The “cash out” phase generally involved large purchases of fuel, though they did make other purchases at gas stations and other retail stores. The fuel purchases were typically for vehicles they were driving, or for trusted associates/purchasers the defendants would meet, using the cloned cards to fill up their tanks. The defendants further used the cloned cards to fill external fuel tanks installed in the beds of their pickup trucks – later offloading that fuel into the tanks of semi trucks or into larger storage containers for future use or resale.
In furtherance of the scheme, the indictment alleges the defendants committed several overt acts. For example, on April 30, 2020, Artigas-Reyes and Pereda-Mendez visited the Tesoro gas station in Sunset, Utah, just after midnight and installed a Bluetooth skimmer in the pump. On May 21, 2020, they installed a Bluetooth skimmer in a pump at a Texaco station in Scipio. The indictment alleges the acts were for the purpose of committing bank fraud.
Using the cloned credit or debit cards, the defendants obtained at least $200,000 in funds from multiple financial institutions, the indictment alleges. For instance, on May 5, 2020, Almonte made a $100 purchase at Exxon Mobil Common Cents in Bountiful using a cloned JP Morgan Chase credit card. On May 27, 2020, Artigas-Reyes made an $89.41 purchase at the Exxon Mobile Common Cents in Salt Lake City using a cloned Capital One credit card. Nina-Perez made a $100 purchase at Murphy Express in Riverton using a cloned PNC bank credit card and Delgado-Valdes made a $99.84 purchase at the Home Depot in West Jordan using a cloned Wells Fargo credit card.
“Utah is a hotbed of fraud schemes. I have directed prosecutors and investigative partners to pull out all of the stops in our combined efforts to take on those who victimize Utah residents with their fraud schemes. In this bank fraud ring, allegations suggest persistence, sophistication and organization on the part of the charged conspirators. Investigators and prosecutors have tried to match and surpass those characteristics in their efforts to bring this matter to justice in federal court,” U.S. Attorney John W. Huber said today.
“We all routinely fill up our gas tanks, which means any one of us could have been victims of this alleged crime,” said Special Agent in Charge Paul Haertel of the Salt Lake City FBI. “While the financial losses are significant, the victims are also left with the burden of taking the necessary steps to recover from the damage of identity theft. The FBI is committed to holding the alleged perpetrators accountable. We encourage the public to regularly check their bank statements and report fraud to local law enforcement or the FBI."
Each defendant is charged with conspiracy to commit bank fraud in the lead count of the indictment. Each defendant is also charged with one count of bank fraud and one count of aggravated identity theft. Almonte, who has three previous deportations from the country, is also charged with illegally entering the country after deportation. The potential maximum penalty for the conspiracy to commit bank fraud and bank fraud counts is 30 years in federal prison. Aggravated re-entry has a maximum penalty of 10 years in prison. An aggravated identity theft conviction carries a two-year mandatory sentence, which runs consecutive to any other sentence.
Indictments are not findings of guilt. Individuals charged in an indictment are presumed innocent unless or until proven guilty in court.
Padron-Cruz, Artigas-Reyes, Nina-Perez, and Delgado-Valdes were arrested in Utah on Nov. 20. During the execution of search warrants in connection with the arrests, agents and law enforcement officers found more than $40,000 as well as skimming equipment and what agents believe to be hundreds of cloned credit cards.
These four defendants, along with Almonte, had an initial appearance on the charges in the indictment Tuesday and Wednesday. Almonte has been in custody on an unrelated charge. A federal arrest warrant is pending for Pereda-Mendez.
Assistant U.S. Attorneys in the U.S. Attorney’s Office in Utah are prosecuting the case. It is being investigated by agents and task force officers working with the FBI’s Cyber Task Force and the Salt Lake City Police Department.
U.S. Law Enforcement Takes Action Against Approximately 2,300 Money Mules in Global Crackdown on Money LaunderingRead the Press Release
The U.S. Department of Justice, the FBI, the U.S. Postal Inspection Service, and six other federal law enforcement agencies announced the completion of the third annual Money Mule Initiative, a coordinated operation to disrupt the networks through which transnational fraudsters move the proceeds of their crimes. Money mules are individuals who assist fraudsters by receiving money from victims of fraud and forwarding it to the fraud organizers, many of whom are located abroad. Some money mules know they are assisting fraudsters, but others are unaware that their actions enable fraudsters’ efforts to swindle money from consumers, businesses, and government unemployment funds. Europol announced a simultaneous effort, the European Money Mule Action (EMMA) today.
Over the last two months, U.S. law enforcement agencies took action against over 2,300 money mules, far surpassing last year’s effort, which acted against over 600 money mules. This year, actions occurred in every state in the country. The initiative announced today targeted money mules involved in a wide range of schemes including lottery fraud, romance scams, government imposter fraud, technical support fraud, business email compromise or CEO fraud, and unemployment insurance fraud. Many of these schemes target elderly or vulnerable members of society.
“Money mules fuel fraud against some of America’s most vulnerable populations. Without the help of these money mules, many foreign fraud enterprises find it difficult to profit off of U.S. victims,” said Attorney General William P. Barr. “As this initiative demonstrates, the Department of Justice is committed to disrupting money mule networks, taking actions against more money mules this year than ever before, in an effort to cut off the flow of funds from American consumers and businesses to transnational criminal organizations.”
Eight federal law enforcement agencies participated in this year’s effort. Led by the Department of Justice’s Consumer Protection Branch, the FBI, and the U.S. Postal Inspection Service, the participating agencies include the Department of Labor Office of Inspector General, Federal Deposit Insurance Corporation Office of Inspector General, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Social Security Administration Office of Inspector General, U.S. Secret Service, and U.S. Treasury Inspector General for Tax Administration.
Some highlights from this year’s efforts are:
- Actions were taken to halt the conduct of approximately 2,300 money mules, spanning 92 federal districts.
- Law enforcement served approximately 2,000 money mules with letters warning the money mules that they were facilitating fraud and could face civil or criminal consequences for continuing their actions. Agents conducted over 450 interviews.
- On approximately 30 instances, agents seized assets or facilitated the return of victim funds. Among the asset seizures was a 2019 Lamborghini, which was seized as part of an investigation into a business email compromise scheme.
- The U.S. Postal Inspection Service filed 14 administrative actions requiring money mules to cease facilitating fraud.
- U.S. Attorney’s Offices and the Consumer Protection Branch filed 17 civil injunctive actions seeking court orders requiring money mules to stop facilitating fraudulent activity. Districts filing those actions include the Western District of Washington, District of South Carolina, Middle District of Florida, Southern District of Florida, Central District of California, Northern District of New York, and District of Colorado.
Additionally, more than 35 individuals were criminally charged or arrested for their roles in receiving victim payments and forwarding the fraud proceeds to accomplices or laundering fraud proceeds. Cases include:
- The U.S. Attorney’s Office for the Central District of California indicted three individuals for collecting parcels containing victim proceeds in a government imposter scheme.
- The U.S. Attorney’s Office for the District of Maryland indicted three individuals for opening bank accounts using falsified documents for the purposes of facilitating a business email compromise scam.
- The U.S. Attorney’s Office for the Western District of Texas indicted an individual for facilitating a lottery fraud scheme. The indictment also seeks to forfeit over $1.2 million.
- The U.S. Attorney’s Office for the Northern District of Ohio indicted two money mules who facilitated a grandparents scam.
- The U.S. Attorney’s Office for the Eastern District of Virginia charged a money mule who laundered gift cards purchased by fraud victims.
Additional criminal charges were brought by U.S. Attorney’s Offices in Southern District of Florida, Western District of Pennsylvania, Western District of North Carolina, Southern District of Texas, the Southern District of Mississippi, and the District of New Jersey.
The above charges are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
“The success of the Money Mule Initiative is the culmination of the hard work by and coordination between the FBI and our federal, state, local, and international partners,” said FBI Director Christopher Wray. “This campaign has resulted in hundreds of criminal arrests worldwide and justice for countless victims. Today’s announcement should send a clear message to those engaged in this type of criminal activity: they are not outside the reach of law enforcement, and the FBI and its partners will relentlessly pursue them in order to protect the American people.”
“The Postal Inspection Service has zero tolerance for fraudsters who use the U.S. Mail to transport funds from scammed victims,” said Chief Postal Inspector Gary Barksdale. “Postal Inspectors use cutting-edge technology to build strong cases and campaigns like those announced today, which make significant progress towards disrupting money mule networks. Postal Inspectors and our law enforcement partners will be relentless in the pursuit of criminal organizations that perpetrate these schemes.”
The agencies participating in the Money Mule Initiative and community partners are undertaking an outreach campaign to increase awareness of how fraudsters use and recruit money mules. U.S. Attorney’s Offices across the country, through their Elder Justice Coordinators, will be reaching out to their communities to educate the public about money mules. AmeriCorp Seniors (formerly Senior Corps) will be working to increase awareness of how money mules facilitate fraud and how consumers can avoid unwittingly assisting fraud schemes.
Additionally, the American Bankers Association will be engaging with its members on money mules and the role of financial institutions in addressing the problem. The Department of Justice will also be distributing resources for state and local law enforcement on identifying, disrupting, investigating, and prosecuting money mules.
To find public education materials, as well as information about how fraudsters use and recruit money mules, please visit www.justice.gov/civil/consumer-protection-branch/money-mule-initiative.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In January 2020, the department designated “Preventing and Disrupting Transnational Elder Fraud” as an Agency Priority Goal, one of its top four priorities. In March 2020, the department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep. The department has also conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
The department’s extensive efforts to combat elder fraud seek to halt the billions of dollars seniors lose each year to fraud schemes, including those perpetrated by transnational criminal organizations. The best method for prevention, however, is sharing information about the various types of elder fraud schemes with relatives, friends, neighbors, and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
U.S. Law Enforcement Takes Action Against Approximately 2,300 Money Mules in Global Crackdown on Money LaunderingRead the Press Release
WASHINGTON – The U.S. Department of Justice, the FBI, the U.S. Postal Inspection Service, and six other federal law enforcement agencies announced the completion of the third annual Money Mule Initiative, a coordinated operation to disrupt the networks through which transnational fraudsters move the proceeds of their crimes. Money mules are individuals who assist fraudsters by receiving money from victims of fraud and forwarding it to the fraud organizers, many of whom are located abroad. Some money mules know they are assisting fraudsters, but others are unaware that their actions enable fraudsters’ efforts to swindle money from consumers, businesses, and government unemployment funds. Europol announced a simultaneous effort, the European Money Mule Action (EMMA) today.
Over the last two months, U.S. law enforcement agencies took action against over 2,300 money mules, far surpassing last year’s effort, which acted against over 600 money mules. This year, actions occurred in every state in the country. The initiative announced today targeted money mules involved in a wide range of schemes including lottery fraud, romance scams, government imposter fraud, technical support fraud, business email compromise or CEO fraud, and unemployment insurance fraud. Many of these schemes target elderly or vulnerable members of society.
“Money mules fuel fraud against some of America’s most vulnerable populations. Without the help of these money mules, many foreign fraud enterprises find it difficult to profit off of U.S. victims,” said Attorney General William P. Barr. “As this initiative demonstrates, the Department of Justice is committed to disrupting money mule networks, taking actions against more money mules this year than ever before, in an effort to cut off the flow of funds from American consumers and businesses to transnational criminal organizations.”
Eight federal law enforcement agencies participated in this year’s effort. Led by the Department of Justice’s Consumer Protection Branch, the FBI, and the U.S. Postal Inspection Service, the participating agencies include the Department of Labor Office of Inspector General, Federal Deposit Insurance Corporation Office of Inspector General, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Social Security Administration Office of Inspector General, U.S. Secret Service, and U.S. Treasury Inspector General for Tax Administration.
Some highlights from this year’s efforts are:
• Actions were taken to halt the conduct of approximately 2,300 money mules, spanning 92 federal districts.
• Law enforcement served approximately 2,000 money mules with letters warning the money mules that they were facilitating fraud and could face civil or criminal consequences for continuing their actions. Agents conducted over 450 interviews. The U.S. Department of Labor Office of Inspector General in Puerto Rico served one warning letter to a senior citizen who may have knowingly acted as a money mule in an unemployment insurance fraud scheme.
• On approximately 30 instances, agents seized assets or facilitated the return of victim funds. Among the asset seizures was a 2019 Lamborghini, which was seized as part of an investigation into a business email compromise scheme.
• The U.S. Postal Inspection Service filed 14 administrative actions requiring money mules to cease facilitating fraud.
• U. S. Attorney’s Offices and the Consumer Protection Branch filed 17 civil injunctive actions seeking court orders requiring money mules to stop facilitating fraudulent activity. Districts filing those actions include the Western District of Washington, District of South Carolina, Middle District of Florida, Southern District of Florida, Central District of California, Northern District of New York, and District of Colorado.
Additionally, more than 35 individuals were criminally charged or arrested for their roles in receiving victim payments and forwarding the fraud proceeds to accomplices or laundering fraud proceeds. Cases include:
• The U.S. Attorney’s Office for the Central District of California indicted three individuals for collecting parcels containing victim proceeds in a government imposter scheme.
• The U.S. Attorney’s Office for the District of Maryland indicted three individuals for opening bank accounts using falsified documents for the purposes of facilitating a business email compromise scam.
• The U.S. Attorney’s Office for the Western District of Texas indicted an individual for facilitating a lottery fraud scheme. The indictment also seeks to forfeit over $1.2 million.
• The U.S. Attorney’s Office for the Northern District of Ohio indicted two money mules who facilitated a grandparents scam.
• The U.S. Attorney’s Office for the Eastern District of Virginia charged a money mule who laundered gift cards purchased by fraud victims.
Additional criminal charges were brought by U.S. Attorney’s Offices in Southern District of Florida, Western District of Pennsylvania, Western District of North Carolina, Southern District of Texas, the Southern District of Mississippi, and the District of New Jersey.
The above charges are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
“The success of the Money Mule Initiative is the culmination of the hard work by and coordination between the FBI and our federal, state, local, and international partners,” said FBI Director Christopher Wray. “This campaign has resulted in hundreds of criminal arrests worldwide and justice for countless victims. Today’s announcement should send a clear message to those engaged in this type of criminal activity: they are not outside the reach of law enforcement, and the FBI and its partners will relentlessly pursue them in order to protect the American people.”
“The Postal Inspection Service has zero tolerance for fraudsters who use the U.S. Mail to transport funds from scammed victims,” said Chief Postal Inspector Gary Barksdale. “Postal Inspectors use cutting-edge technology to build strong cases and campaigns like those announced today, which make significant progress towards disrupting money mule networks. Postal Inspectors and our law enforcement partners will be relentless in the pursuit of criminal organizations that perpetrate these schemes.”
The agencies participating in the Money Mule Initiative and community partners are undertaking an outreach campaign to increase awareness of how fraudsters use and recruit money mules. U.S. Attorney’s Offices across the country, through their Elder Justice Coordinators, will be reaching out to their communities to educate the public about money mules. AmeriCorp Seniors (formerly Senior Corps) will be working to increase awareness of how money mules facilitate fraud and how consumers can avoid unwittingly assisting fraud schemes.
Additionally, the American Bankers Association will be engaging with its members on money mules and the role of financial institutions in addressing the problem. The Department of Justice will also be distributing resources for state and local law enforcement on identifying, disrupting, investigating, and prosecuting money mules.
To find public education materials, as well as information about how fraudsters use and recruit money mules, please visit www.justice.gov/civil/consumer-protection-branch/money-mule-initiative.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In January 2020, the department designated “Preventing and Disrupting Transnational Elder Fraud” as an Agency Priority Goal, one of its top four priorities. In March 2020, the department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep. The department has also conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
The department’s extensive efforts to combat elder fraud seek to halt the billions of dollars seniors lose each year to fraud schemes, including those perpetrated by transnational criminal organizations. The best method for prevention, however, is sharing information about the various types of elder fraud schemes with relatives, friends, neighbors, and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
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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.
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U.S. Department of Justice Recognizes U.S. Attorney’s Office for the Northern District of Alabama for Its Work with Project Safe NeighborhoodsRead the Press Release
BIRMINGHAM, Ala. – Today, the Department of Justice recognized the U.S. Attorney’s Office for the Northern District of Alabama for Outstanding Individual Contribution in support of the Project Safe Neighborhoods (PSN) Initiative.
“Mr. Town’s vision to implement the P3 program enhanced the coordination and communication between federal and state prosecutorial agencies and law enforcement nationwide,” U.S. Attorney Escalona said.” “Prosecutors at all levels will be able to collectively target worst offenders for years to come.”
Jay E. Town, Former U.S. Attorney, was recognized for the outstanding work in support of the PSN Program through his design and successful implementation of the Prosecutor to Prosecutor Program (P3). The P3 Program, created in January 2018 by Mr. Town, was designed to enhance Project Safe Neighborhoods strategic plans and focus on the worst offenders in a given area or district. P3 is a six-step process in which state and federal prosecutors make joint decisions on whether a criminal case should be prosecuted by the U.S. Attorney's Office. Since P3 was implemented in 2018 in the Northern District of Alabama, there have been more than 300 cases referred to federal law enforcement from local P3 team members, of which more than half have been selected for federal prosecution. The robust success of the P3 team and its implementation of the P3 program have led to a 64% increase in violent crimes prosecutions since 2016. Specifically, there has been a 73% increase in the number of 922(g) and 924(c) firearms matters received by the Northern District of Alabama U.S. Attorney’s Office since its implementation. The Prosecutor to Prosecutor Program is recognized by the Department of Justice as a best practice and national model for each federal district. P3 has since been replicated and effectively implemented by numerous U.S. Attorney’s Offices across the country.
Revitalized in 2017, PSN is a critical piece of the Department’s crime reduction efforts. PSN has focused on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct
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.
U.S. Department of Justice Recognizes U.S. Attorney’s Office for the Eastern District of California for Its Work with Project Safe NeighborhoodsRead the Press Release
SACRAMENTO, Calif. – The Department of Justice recognized the Solano County District Attorney’s Office, located in the Eastern District of California, for being an Outstanding Local Prosecutor’s Office in support of the Project Safe Neighborhoods (PSN) Initiative and its work with the U.S. Attorney’s Office.
“Throughout 2018 and 2019, the Solano County District Attorney’s Office demonstrated outstanding professionalism, support for U.S. Attorney’s Office initiatives, and ongoing cooperation with federal and state law enforcement partners to promote greater public safety.” U.S. Attorney McGregor W. Scott said. “The Solano County District Attorney’s Office has demonstrated the exemplary initiative and collaboration needed to make PSN successful in keeping our communities safe, meeting bi-weekly with our office to discuss potential cases for federal prosecution.”
“This award exemplifies the true partnership between our office and the Office of the United States Attorney, Eastern District of California,” said District Attorney Abrams. “Project Safe Neighborhoods has truly been a success under U.S. Attorney McGregor Scott’s leadership. We jointly share an unwavering commitment to getting illegal guns off the street and keeping our community safe, and I am honored to be working in collaboration with the U.S. Attorney’s Office regarding this effort.”
The Solano County District Attorney’s Office was recognized for the outstanding work in support of the PSN program. Since the start of the PSN program in Solano County in July 2018, the Solano County District Attorney’s Office has presented more than 400 cases for potential federal adoption, with 46 cases selected for federal prosecution targeting some of the most violent and recidivist criminals in Solano County. They facilitated a meeting to connect AUSAs with over 30 local gang investigators, improving collaboration and coordination between federal, state, and local investigating agencies, and overall intelligence sharing.
In October and November 2018 a multi-agency effort spearheaded by the Solano County District Attorney’s Office to identify the highest-risk offenders on probation, parole, and Post-Release Community Supervision located dozens of fugitives in Solano County in advance of Operation Triple Beam, a December 2018 exercise by the U.S. Marshals Service.
The Solano County District Attorney’s Office worked with the U.S. Attorney’s Office to facilitate federal adoption of cases that originated with state charges. These cases included: (1) a March 2018 attempted homicide, in which two co-conspirators pipe bombed a residential home with a family of five inside [United States v. Capenhurst, et al., 2:18-cr-055-KJM]; (2) a series of five convenience store robberies, during which the lead defendant brandished a firearm and threatened the counter clerks at gunpoint [United States v. Young, et al., 2:18-cr-142-JAM]; and (3) five additional felon-in-possession of a firearm cases, including one defendant who was sentenced as an armed career criminal.
Given its position at the southwest boundary of the Eastern District of California, numerous cases originating in, or with ties to, Solano County, overlap with criminal conduct that could also be charged in surrounding counties (Napa, Contra Costa, Alameda, and/or Sacramento) or in the Northern District of California. In at least two significant cases, the Solano County District Attorney’s Office agreed to dismiss local charges in lieu of federal prosecution in cases with multijurisdictional criminality. These included: (1) the five Hobbs Act robberies charged in United States v. Young, et al., 2:18-cr-142-JAM, which spanned from Alameda County, to Solano County, to Sacramento County; and (2) a high-volume drug-trafficking case stretching from Alameda County to Solano County, in which detectives seized over 4 pounds of powder cocaine and over 3.5 pounds of cocaine base (crack cocaine) from the defendant’s home in Vallejo [United States v. McCutcheon, 2:18-cr-218-TLN]. The defendant in that case will be sentenced as a career offender.
The examples above are representative of the exemplary work the Solano County District Attorney’s Office has performed as part of PSN to decrease violent crime throughout Solano County and Northern California.
Revitalized in 2017, PSN is a critical piece of the Department’s crime reduction efforts. PSN has focused on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
U.S. Attorney's Office Participates in Law Enforcement Action Against Approximately 2,300 Money Mules in Global Crackdown on Money LaunderingRead the Press Release
CHARLOTTE, N.C. – The U.S. Attorney’s Office for the Western District of North Carolina joined the U.S. Department of Justice, the FBI, the U.S. Postal Inspection Service, and six other federal law enforcement agencies in announcing the completion of the third annual Money Mule Initiative, a coordinated operation to disrupt the networks through which transnational fraudsters move the proceeds of their crimes. Money mules are individuals who assist fraudsters by receiving money from victims of fraud and forwarding it to the fraud organizers, many of whom are located abroad. Some money mules know they are assisting fraudsters, but others are unaware that their actions enable fraudsters’ efforts to swindle money from consumers, businesses, and government unemployment funds. Europol announced a simultaneous effort, the European Money Mule Action (EMMA) today.
Over the last two months, U.S. law enforcement agencies took action against over 2,300 money mules, far surpassing last year’s effort, which acted against over 600 money mules. This year, actions occurred in every state in the country. The initiative announced today targeted money mules involved in a wide range of schemes including lottery fraud, romance scams, government imposter fraud, technical support fraud, business email compromise or CEO fraud, and unemployment insurance fraud. Many of these schemes target elderly or vulnerable members of society.
“Money mules fuel fraud against some of America’s most vulnerable populations. Without the help of these money mules, many foreign fraud enterprises find it difficult to profit off of U.S. victims,” said Attorney General William P. Barr. “As this initiative demonstrates, the Department of Justice is committed to disrupting money mule networks, taking actions against more money mules this year than ever before, in an effort to cut off the flow of funds from American consumers and businesses to transnational criminal organizations.”
“Criminals enterprises that perpetrate financial fraud are increasingly relying on money mules to launder ill-gotten gains and conduct financial transactions using illegal proceeds. Be it under the guise of a new romantic relationship or the promise of a new job, scammers employ many tactics that can dupe unsuspecting victims into carrying out these illegal money operations. Today’s initiative serves as a lesson and a warning: don’t let scammers fool you into doing their dirty work,” said Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Eight federal law enforcement agencies participated in this year’s effort. Led by the Department of Justice’s Consumer Protection Branch, the FBI, and the U.S. Postal Inspection Service, the participating agencies include the Department of Labor Office of Inspector General, Federal Deposit Insurance Corporation Office of Inspector General, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Social Security Administration Office of Inspector General, U.S. Secret Service, and U.S. Treasury Inspector General for Tax Administration.
Some highlights from this year’s efforts are:
- Actions were taken to halt the conduct of approximately 2,300 money mules, spanning 92 federal districts.
- Law enforcement served approximately 2,000 money mules with letters warning the money mules that they were facilitating fraud and could face civil or criminal consequences for continuing their actions. Agents conducted over 450 interviews.
- On approximately 30 instances, agents seized assets or facilitated the return of victim funds. Among the asset seizures was a 2019 Lamborghini, which was seized as part of an investigation into a business email compromise scheme.
- The U.S. Postal Inspection Service filed 14 administrative actions requiring money mules to cease facilitating fraud.
- U.S. Attorney’s Offices and the Consumer Protection Branch filed 17 civil injunctive actions seeking court orders requiring money mules to stop facilitating fraudulent activity. Districts filing those actions include the Western District of Washington, District of South Carolina, Middle District of Florida, Southern District of Florida, Central District of California, Northern District of New York, and District of Colorado.
Additionally, more than 35 individuals were criminally charged or arrested for their roles in receiving victim payments and forwarding the fraud proceeds to accomplices or laundering fraud proceeds. Cases include:
- The U.S. Attorney’s Office for the Western District of North Carolina has indicted four individuals operating as money mules in two separate business email compromise schemes.
- The U.S. Attorney’s Office for the Central District of California indicted three individuals for collecting parcels containing victim proceeds in a government imposter scheme.
- The U.S. Attorney’s Office for the District of Maryland indicted three individuals for opening bank accounts using falsified documents for the purposes of facilitating a business email compromise scam.
- The U.S. Attorney’s Office for the Western District of Texas indicted an individual for facilitating a lottery fraud scheme. The indictment also seeks to forfeit over $1.2 million.
- The U.S. Attorney’s Office for the Northern District of Ohio indicted two money mules who facilitated a grandparents scam.
- The U.S. Attorney’s Office for the Eastern District of Virginia charged a money mule who laundered gift cards purchased by fraud victims.
Additional criminal charges were brought by U.S. Attorney’s Offices in Southern District of Florida, Western District of Pennsylvania, Southern District of Texas, the Southern District of Mississippi, and the District of New Jersey.
The above charges are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
“The success of the Money Mule Initiative is the culmination of the hard work by and coordination between the FBI and our federal, state, local, and international partners,” said FBI Director Christopher Wray. “This campaign has resulted in hundreds of criminal arrests worldwide and justice for countless victims. Today’s announcement should send a clear message to those engaged in this type of criminal activity: they are not outside the reach of law enforcement, and the FBI and its partners will relentlessly pursue them in order to protect the American people.”
“The Postal Inspection Service has zero tolerance for fraudsters who use the U.S. Mail to transport funds from scammed victims,” said Chief Postal Inspector Gary Barksdale. “Postal
Inspectors use cutting-edge technology to build strong cases and campaigns like those announced today, which make significant progress towards disrupting money mule networks. Postal Inspectors and our law enforcement partners will be relentless in the pursuit of criminal organizations that perpetrate these schemes.”
The agencies participating in the Money Mule Initiative and community partners are undertaking an outreach campaign to increase awareness of how fraudsters use and recruit money mules. U.S. Attorney’s Offices across the country, through their Elder Justice Coordinators, will be reaching out to their communities to educate the public about money mules. AmeriCorp Seniors (formerly Senior Corps) will be working to increase awareness of how money mules facilitate fraud and how consumers can avoid unwittingly assisting fraud schemes.
Additionally, the American Bankers Association will be engaging with its members on money mules and the role of financial institutions in addressing the problem. The Department of Justice will also be distributing resources for state and local law enforcement on identifying, disrupting, investigating, and prosecuting money mules.
To find public education materials, as well as information about how fraudsters use and recruit money mules, please visit www.justice.gov/civil/consumer-protection-branch/money- mule-initiative.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In January 2020, the department designated “Preventing and Disrupting Transnational Elder Fraud” as an Agency Priority Goal, one of its top four priorities. In March 2020, the department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep. The department has also conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
The department’s extensive efforts to combat elder fraud seek to halt the billions of dollars seniors lose each year to fraud schemes, including those perpetrated by transnational criminal organizations. The best method for prevention, however, is sharing information about the various types of elder fraud schemes with relatives, friends, neighbors, and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
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.
Two More Defendants Charged with Federal Crimes Related to a Heroin and Fentanyl Trafficking Operation in Washington CountyRead the Press Release
Baltimore – A federal grand jury today returned a third superseding indictment charging eight defendants with federal charges related to a conspiracy to distribute controlled substances, specifically fentanyl and/or heroin in Washington County, Maryland. The third superseding indictment adds two additional defendants. The third superseding indictment alleges that the defendants conspired to distribute enough fentanyl to kill at least 600,000 people, and possessed firearms in furtherance of the drug conspiracy. The following defendants are charged in the third superseding indictment:
Christopher Scott Benton, a/k/a Brisco, age 30, of Hagerstown, Maryland; Jarvis Antonio Coleman-Fuller, age 32, of Hagerstown; Sirage Ekwan Carter Delaney, a/k/a Drama, age 41, of Hagerstown; Eric Tyrell Johnson, a/k/a E, age 36, of Owings Mills, Maryland; Michael Eugene Lyles, a/k/a Big Mike, age 45, of Frederick, Maryland; Jeroam Edwin Nelson, Jr., a/k/a Boob, age 30, of Hagerstown; Thamar J. Smith, a/k/a SK and Skoal, age 46, of Hagerstown; and
Philander Alexander Spruill, a/k/a Buddha, age 28, of Hagerstown.The third superseding indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore; Washington County Sheriff Douglas Mullendore; Chief Paul “Joey” Kifer of the Hagerstown Police Department; and Washington County State’s Attorney Charles P. Strong, Jr..
According to the 14-count indictment, beginning in about April 2019 and continuing to about September 2019, the defendants conspired to distribute heroin and/or fentanyl in the Washington County area. During the course of the investigation, law enforcement seized narcotics, including at least 1.2 kilograms of fentanyl, four firearms and ammunition, and at least $16,223 in cash. All of the defendants are charged with being members of the conspiracy. Smith, Johnson, Spruill, Nelson, and Coleman-Fuller are charged with possession with intent to distribute fentanyl and/or heroin; Johnson, Spruill, Nelson, and Coleman-Fuller are charged with being felons in possession of a firearm and/or ammunition; Spruill and Coleman-Fuller are charged with possession of a firearm in furtherance of a drug trafficking crime; and Coleman-Fuller is charged with possession of body armor by a violent felon.
If convicted, Benton, Nelson, and Spruill face a mandatory minimum sentence of at least 10 years in federal prison and up to life in prison for the drug charges; Coleman-Fuller, Delaney, Johnson, Lyles, and Smith all face a mandatory minimum sentence of at least five years in federal prison and up to 40 years in prison for the drug charges; Coleman-Fuller, Nelson, and Spruill each face a maximum sentence of 10 years in federal prison for being felons in possession of firearms and/or ammunition; Johnson faces a mandatory minimum sentence of at least 15 years in federal prison and up to life in prison for being a felon in possession of a firearm; and Coleman-Fuller and Spruill face a mandatory minimum of five years in federal prison, consecutive to any other sentence, and up to life in federal prison for possession of a firearm in furtherance of a drug trafficking crime. Coleman-Fuller also faces a maximum of three years in federal prison for possession of body armor by a violent felon. 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.
No initial appearance has been scheduled for Delaney and Lyles.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Edward Melvin Ware, a/k/a Eddie, age 33, of Edgewater, Maryland and his twin brother, Tyler Lee Ware, a/k/a Bugsy, age 33, of Hagerstown, who were charged in the second superseding indictment, have each pleaded guilty to conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl. Edward Ware pleaded guilty today and his brother pleaded guilty on October 28, 2020.
According to their plea agreements, from at least April 2019 through November 2019, the Wares were members of a drug trafficking organization (DTO) that operated in Hagerstown and elsewhere, distributing kilogram quantities of fentanyl and heroin, which DTO members acquired from sources of supply in Baltimore, New York City, and Mexico. DTO members, including Tyler Ware, also possessed firearms and ammunition in furtherance of their drug trafficking activity.
In June 2019, the Washington County Narcotics Task Force learned that the Wares were two of the primary retail distributors of narcotics for the DTO and were being supplied by at least three different wholesalers associated with the DTO. Law enforcement officers witnessed Tyler Ware and Edward Ware engaging in drug-related transactions with two of their wholesale suppliers and overheard numerous conversations with DTO members during which they discussed suppliers, types, amounts, and prices of narcotics; the locations, size, and pace of narcotics transactions; and the storage and disposition of narcotics, proceeds, and distribution paraphernalia.
As detailed in his plea agreement, between June 13 and June 23, 2019, Eddie Ware was overheard discussing plans to sell at least 23 grams of fentanyl and discussing at least $7,475 in narcotics proceeds. During the same time frame, Tyler Ware was overheard discussing plans to sell at least 55 grams of fentanyl and at least $3,925 in narcotics proceeds. It was reasonably foreseeable to the Wares that the conspiracy would involve—during this 10-day period alone—at least 94 grams of fentanyl.
The Wares face a mandatory minimum sentence of five years and a maximum of 40 years in prison for the conspiracy. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for Edward on March 9, 2021 and for Tyler on February 16, 2021 at 10:00 a.m.
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. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Robert K. Hur commended the DEA, HSI, the Washington County Narcotics Task Force, and the Washington County State’s Attorney’s Office for their work in the investigation, and thanked the Baltimore County State’s Attorney’s Office for its assistance. Mr. Hur thanked Assistant U.S. Attorneys Jeffrey J. Izant and Christina A. Hoffman, who are prosecuting this case.
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Three Members of Gardena Street Gang Charged in Federal Racketeering Case Alleging Murder of Man Outside His HomeRead the Press Release
LOS ANGELES – Three members of a Gardena street gang that operates in several states under the control of the Mexican Mafia, have been charged in federal court with violent crime in aid of racketeering for allegedly participating in a shooting that resulted in the death of a 29-year-old man who was gunned down in front of his home.
One of the defendants, Jesus Francisco Hernandez, was taken into custody this morning by special agents with Homeland Security Investigations. Hernandez is scheduled to make his initial appearance this afternoon in United States District Court in Los Angeles.
The three defendants are charged in a criminal complaint alleging they participated in the November 13 murder of the victim, who is identified in court papers as “E.C.” The charged defendants, all residents of Gardena, are:
- Jesus Hernandez, a.k.a. “Rowdy, 27;
- Antonio Yanez, a.k.a. “Tank,” 22, who is currently in state custody; and
- Justin Arteaga, a.k.a. “Hitta,” 20, who also is currently in state custody.
A fourth man who allegedly participated in the attack – G. Hernandez, who is Jesus Hernandez’s older brother and who is described in court papers as a longtime documented gang member – was shot by E.C.’s father during the November 13 incident and later died at a hospital.
According to the affidavit in support of the criminal complaint, E.C. and his brother were seated in parked car near their driveway when they were confronted by three men on foot – G. Hernandez, Yanez and Arteaga. E.C.’s brother told the men they were not affiliated with a gang and they were simply in front of their longtime home. As the men neared the parked car, E.C. stepped out of the vehicle while his brother texted their father, asking him to bring his gun outside because of the escalating situation.
The affidavit alleges that G. Hernandez swung at E.C., who swung back, and all three assailants pulled out guns and began shooting. The father saw the text message and soon after heard approximately 15-20 gunshots. The father came out to the car and saw G. Hernandez approximately 50 yards down the street. G. Hernandez began shooting at the father, who returned fire and struck G. Hernandez. One of the other gunman also fired at the father after G. Hernandez fell to the ground.
Police and paramedics responded to the scene, where they treated E.C., but he died soon after as a result of the 10 gunshot wounds he suffered. G. Hernandez, who was found lying on the street with gunshot wounds to his head and chest, was brought to a hospital, where he died several days later.
Soon after the shooting, Gardena Police officers arrested J. Hernandez and Yanez in the backyard of a nearby residence. Responding officers also recovered four 9mm handguns, three of which were “ghost guns” with no serial numbers.
Arteaga was arrested on November 17 at Los Angeles International Airport as he was preparing to board a one-way flight to Guadalajara, Mexico. He was wearing the same hat he was seen wearing on security video taken the night of the shooting, according to the affidavit.
Yanez and Arteaga initially were charged by the Los Angeles County District Attorney’s Office, which has dismissed those charges in light of the federal racketeering case. Jesus Hernandez was not charged after he was detained by local authorities.
The federal complaint alleges that the murder of E.C. was committed to further the power of the Gardena 13 street gang, which is described in the affidavit as a criminal enterprise that has documented membership in California, Nevada, Texas, Hawaii and Rosarito, Mexico. The Gardena Police Department believes the gang distributes narcotics, primarily methamphetamine, both locally and in Hawaii.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The violent crime in aid of racketeering offense alleged in the complaint carries a statutory maximum sentence of the death penalty or life in federal prison because victim E.C. was murdered.
This matter is being investigated by Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Gardena Police Department.
This case is being prosecuted by Assistant United States Attorney Joseph D. Axelrad of the Violent and Organized Crime Section.
Temple Woman Sentenced to more than 15 Years in Federal Prison for Possessing and Distributing Child PornographyRead the Press Release
In Waco today, a federal judge sentenced 33-year-old Temple, Texas resident Lydia Brynn Christensen to 188 months in federal prison for possessing and distributing images and videos depicting the sexual exploitation of children including those of a female child under the age of two, announced U.S. Attorney Gregg N. Sofer; FBI Special Agent in Charge Christopher Combs, San Antonio Division; and Temple Police Chief Shawn Reynolds.
In addition to the prison term, U.S. District Judge Alan Albright ordered that Christensen pay $11,000 in restitution to her victims and be placed on supervised release for a period of 10 years after completing her prison term.
On June 2, 2020, Christensen pleaded guilty to one count of possession of child pornography and one count of distribution of child pornography.
According to court records, authorities executed a federal search warrant at the defendant’s residence on August 30, 2019, based on information they had received about the contents of her cell phone. During the search, authorities seized the phone. A forensic search of the phone revealed the presence of numerous images and videos depicting child pornography, including those of a female child under the age of two engaged in sexually explicit conduct with an adult male. Also, authorities discovered numerous communications on the phone whereby Christensen had solicited, transmitted and received child pornography.
The FBI and the Temple Police Department Special Crimes Unit conducted this investigation. Assistant U.S. Attorney Greg Gloff prosecuted this case on behalf of the government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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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.
Syracuse-Area Brothers Sentenced to Prison for Conspiracy to Traffic in Contraband Cigarettes and Money LaunderingRead the Press Release
SYRACUSE, NEW YORK – Jamal Hassan, age 42, of Liverpool and Saddam Hassan, age 39, of East Syracuse were sentenced yesterday for conspiring to traffic in contraband cigarettes. Jamal Hassan was also sentenced yesterday for his guilty plea to one count of conspiracy to commit money laundering. The announcement was made by Acting United States Antoinette T. Bacon, Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), Jonathan D. Larsen, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI)-New York Field Division, Commissioner Michael R. Schmidt, New York State Department of Taxation and Finance, Chief Terence A. Monahan, New York City Police Department, and Chief Kenton Buckner, City of Syracuse Police Department
Senior Judge Norman A. Mordue sentenced Jamal Hassan to serve 30-months in prison and ordered a three-year term of supervised release to follow. Senior Judge Mordue sentenced Saddam Hassan to serve 24- months in prison and a three-year term of supervised release. Senior Judge Mordue ordered both defendants to pay $1,117,080 in restitution to New York State, which represents the tax loss from the sale of the contraband cigarettes. Additionally, the court imposed a $400,000 money judgment against both defendants.
In pleading guilty the Hassan brothers admitted that they conspired to possess, sell, distribute, and purchase over 5 million contraband cigarettes. During searches at their residence and at a storage facility rented by Jamal Hassan and used by Saddam Hassan, law enforcement officers seized over 250,000 contraband cigarettes and over 760 counterfeit New York State tax stamps. The Hassan brothers further admitted that they sold contraband cigarettes to markets and deli stores in the Syracuse area resulting in a loss of tax revenue to New York State in the amount of $1,117,080.
This case was investigated by Homeland Security Investigation (HSI) Buffalo Field Office; Internal Revenue Service-Criminal Investigation; the New York City Police Department (Intelligence Bureau-Strategic Intelligence Unit); the New York State Department of Taxation and Finance; the Oswego County Drug Task Force; and the Syracuse Police Department, and was prosecuted by Assistant U.S. Attorney Tamara B. Thomson.
St. Francis Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, man convicted of Abusive Sexual Contact was sentenced on November 30, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Abraham Joseph Crane, a/k/a Abraham Joseph Pretty Voice, a/k/a Sam Crane, age 65, was sentenced to time served through January 5, 2021, equal to approximately 18 months in custody, 10 years of supervised release, $1,462.71 in restitution, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Crane was indicted by a federal grand jury on May 14, 2019. He pled guilty on September 14, 2020.
The conviction stemmed from an incident that occurred between August 1, 2018, and November 16, 2018, in Todd County, South Dakota, wherein Crane did knowingly engage in sexual contact with a person who was incapable of appraising the nature of the conduct.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Crane was immediately turned over to the custody of the U.S. Marshals Service.
Six Defendants Indicted for Fraud and Money Laundering Scheme that Operated Seven “Birth Houses” in Suffolk CountyRead the Press Release
Earlier today, at the federal courthouse in Central Islip, an indictment was unsealed charging Ibrahim Aksakal, Indicted Co-conspirator #1, Enes Burak Cakiroglu and Sarah Kaplan with conspiring to commit visa fraud, health care fraud, wire fraud and money laundering, and Fiordalisa Marte and Edgar Rodriguez with conspiring to commit health care fraud, wire fraud and money laundering, for their participation in a so-called “birth tourism” scheme in Suffolk County between approximately 2017 and 2020. The scheme facilitated pregnant Turkish women fraudulently entering the United States using tourist and business visas to give birth so that their children would obtain birthright citizenship and medical benefits.
Five of the defendants were arrested this morning and will be arraigned this afternoon before Magistrate Judge Steven I. Locke. One defendant remains at large.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York; Timothy D. Sini, District Attorney for Suffolk County; Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations (HSI), and Geraldine Hart, Commissioner, Suffolk County Police Department (SCPD), announced the arrests and the indictment.
As alleged in the Indictment, from at least January 2017 to the September 2020, the defendants advertised a birth tourism scheme on two Turkish-language Facebook pages, www.facebook.com/ bebegimamerikadadogsun and www.facebook.com/amerikadadogum.org, and a Turkish-language website https://amerikadadogum.org. Translated into English, “bebegimamerikadadogsun” means “My baby should be born in America,” and “amerikadadogum” means “Giving Birth in America.” As translated, some of the defendants’ advertisements stated, “If you believe your baby should be born in the USA and become a U.S. citizen then you are at the right place. . . . [W]e at ‘Bebegim Amerika Dogsun’ . . . will provide future mothers and fathers this opportunity, with minimal costs . . . .” The advertisements further stated that fees paid by pregnant women – approximately $7,500 nearly all in cash – would include transportation, “insurance” to cover the costs of pre-natal, delivery and post-natal medical care, assistance with the process for applying for United States citizenship on behalf of children born in connection with the scheme and consultation in Turkish concerning health care issues. The defendants also allegedly instructed the women to conceal their pregnancies.
As alleged in the indictment and court filings, the pregnant women were housed in one of seven “birth houses” that the defendants maintained in Center Moriches, Dix Hills, East Northport, East Patchogue, Smithtown and West Babylon, New York. Defendants Aksakal, Indicted Co-conspirator #1, Cakiroglu and Kaplan facilitated the lodging and transportation of the pregnant women. Marte and Rodriguez, who were professionally trained and certified to assist individuals to apply for health coverage, obtained the purported “insurance” which was actually Medicaid benefits, by submitting fraudulent Medicaid applications on behalf of the pregnant women.
As a result of the defendants’ scheme, the indictment alleges that Medicaid disbursed more than $2.1 million in fraudulently-obtained benefits, and estimates that the defendants’ received approximately $750,000 in fees from the pregnant women, a portion of which was funneled to one or more bank accounts in Turkey.
“Using Internet ads, the defendants perpetrated an international fraud that relied upon a parade of women who paid them thousands of dollars in fees in order to enter the United States under false pretenses, to give birth here. The defendants cashed in on the desire for birthright citizenship, and the American taxpayer ultimately got stuck with the $2.1 million bill,” stated Acting United States Attorney DuCharme. “The indictment unsealed today reinforces the principle that American citizenship is not for sale, and that our benefits programs are not piggy banks for criminals to plunder.”
Mr. DuCharme expressed his grateful appreciation to the United States Department of Health and Human Services, United States Department of State, Diplomatic Security Service, New York State Department of Health and the Office of the Medicaid Inspector General for their assistance during the investigation.
“This is a brazen birth tourism scheme in which the defendants not only violated our nation's immigration laws, but went a step further, sticking the taxpayers of Suffolk County with the bill for their scam by stealing millions of dollars from the Medicaid program,” stated District Attorney Sini. “Medicaid is designed to help people in need – not to be used as a slush fund for criminals to subsidize their fraudulent schemes, which is precisely what these defendants did. Let the message be clear: federal and local law enforcement will continue to work together to protect the residents of Suffolk County.”
“This international criminal organization operated a fraud scheme to exploit women and their newborns” stated HSI Special Agent-in-Charge Fitzhugh. “Birth tourism is dangerous, inhumane and diverts precious community resources to the coffers of criminals. HSI’s collaborative efforts and extraordinary partnership with the Suffolk County District Attorney’s Office and the U.S. Attorney’s Office, Eastern District of New York, has led to multiple criminal arrests around the county today. Those arrested today are charged with fraud and money laundering, and now may instead find themselves touring the inside of a federal prison.”
“Our Suffolk County Police Department detectives uncovered a birth tourism scheme and thanks to their tenacity and the countless hours dedicated to investigating the intricacies of the scheme, a case came together and six individuals are now being held responsible for their roles in this conspiracy,” stated SCPD Commissioner Hart. “This indictment should send a message to others exploiting birth tourism—bilking the system and swindling our residents is not tolerated here in Suffolk. Together, with the Eastern District of New York, the Suffolk County District Attorney’s Office, and Homeland Security Investigations along with assistance from other state agencies, this operation has been halted and those responsible are being held accountable.”
The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face a maximum sentence of 20 years’ imprisonment.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Bradley T. King and Oren Gleich and Special Assistant United States Attorneys Jeremy Glicksman and Joseph Conley are in charge of the prosecution.
The Defendants:
IBRAHIM AKSAKAL (also known as “Dennis”)
Age: 48
East Patchogue, New YorkENES BURAK CAKIROGLU
Age: 24
East Patchogue, New YorkSARAH KAPLAN (also known as “Hatun Kaplan” and “Hatin Kaplan)
Age: 46
Center Moriches, New YorkFIORDALISA MARTE (also known as “Lisa”)
Age: 41
Lindenhurst, New YorkEDGAR RODRIGUEZ (also known as “Eddie”)
Age: 48
Farmingville, New YorkE.D.N.Y. Docket No. 20-CR-400 (JS)
Seven charged in 67-count indictment for animal-fighting operation dismantled in Dodge CountyRead the Press Release
DUBLIN, GA: Seven men have now been indicted on federal charges involving a dog-fighting operation broken up in 2018 in Dodge County.
The indictments in the Southern District of Georgia were secured in a federal grand jury session by Special Assistant U.S. Attorney Jessica Rock, the district’s dedicated animal cruelty prosecutor, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The 67-count indictment targets the owner of a site used for dog fighting and individuals alleged to have participated in fights at the facility.
“Contests of animal cruelty not only are illegal, but also are cesspools of associated criminal activity including gambling, drug trafficking and illegal firearms possession,” said U.S. Attorney Christine. “We won’t tolerate it, and with our prosecutors and law enforcement partners, we are determined to eradicate this barbaric practice.”
The lead defendant in the case, James Lampkin, a/k/a “Pookie,” 45, of Eastman, Ga., is charged with Conspiracy to Violate the Animal Welfare Act; and 63 counts of Possessing and Training a Dog for Purposes of an Animal Fighting Venture, related to the 63 dogs seized on his property where the dog fights were alleged to have taken place. The charges all are felonies, each carrying a possible penalty upon conviction of up to five years in prison. Lampkin also is charged with Attending an Animal Fighting Venture, a misdemeanor punishable by up to one year in prison. Also charged are:
- Benjamin Shinhoster III, 40, of Augusta, charged with Conspiracy to Violate the Animal Welfare Act; Transporting and Delivering a Dog for Purposes of an Animal Fighting Venture; Sponsoring and Exhibiting a Dog in an Animal Fighting Venture; and Attending an Animal Fighting Venture;
- Deveon Hood, 33, of Tennille, Ga., charged with Conspiracy to Violate the Animal Welfare Act; and Attending an Animal Fighting Venture;
- Xavier Simmons, 34, of Sandersville, Ga., charged with Conspiracy to Violate the Animal Welfare Act; and Attending an Animal Fighting Venture;
- Andre Archer, 23, of Sandersville, Ga., charged with Conspiracy to Violate the Animal Welfare Act; and Attending an Animal Fighting Venture;
- Joe Ford, 32, of Elgin, S.C., charged with Conspiracy to Violate the Animal Welfare Act, and Attending an Animal Fighting Venture; and,
- Dwight McDuffie, 44, of Eastman, Ga., charged with Attending an Animal Fighting Venture.
The animals were seized and the defendants identified on March 17, 2018, when Georgia State Patrol troopers and Georgia Department of Natural Resources game wardens responding to reports of a dog fight being held in the area performed traffic stops in Eastman, discovering a dog in one of the vehicles that appeared to have been injured while fighting. The 63 dogs were later seized at Lampkin’s residence after investigators serving a search warrant found the animals chained in the back yard.
While the Asset Forfeiture Unit of the Southern District of Georgia U.S. Attorney’s Office initiated a civil forfeiture action, an animal rescue operation took custody of the dogs and evaluated them for adoption. After a favorable ruling in the forfeiture case, with the exception of one animal diagnosed with cancer, all of the dogs were adopted.
“The vicious pastime of pitting animals against each other in a fight to the death has no place in a civilized society,” said Special Agent in Charge Jason Williams of USDA-OIG. “The outstanding work of the USDA-OIG agents who investigated this case and the prosecutors of the U.S. Attorney’s Office made it possible to bring these operators of a major animal fighting venture to justice.”
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the U.S. Department of Agriculture Office of the Inspector General, and prosecuted for the United States by Special Assistant U.S. Attorney Jessica Rock.
Robbers Sentenced to 20 Years in Prison for Violent Albany Crime SpreeRead the Press Release
ALBANY, Ga. – The final defendant involved in a string of violent convenience store robberies in Albany in 2016, shooting and injuring two clerks, was sentenced to prison for his crime today, announced Charlie Peeler, the U.S. Attorney for the Middle District of Georgia.
Anthony Parks, 28, of Albany, was sentenced by U.S. District Judge Leslie Gardner to a total of 240 months in prison, 120 months per count, after pleading guilty to two counts of possession and discharge of a firearm during a crime of violence. In June, co-defendant Javarius Mallory, 26, of Albany, was sentenced by Judge Gardner to the same term of imprisonment, after pleading guilty to two counts of possession and discharge of a firearm during a crime of violence. There is no parole in the federal system.
“One cashier was shot while he was face-down, another shot in the leg. Parks and Mallory, always armed and often masked, did not hesitate to unload rounds of ammunition while demanding cash from terrified, hard-working employees of these businesses. This kind of violence will not be tolerated in Albany or elsewhere in the Middle District of Georgia, and we will seek severe prison sentences for violent criminals,” said U.S. Attorney Charlie Peeler. “I want to commend the good work of the Albany Police Department and FBI who teamed up to track these defendants down and bring them to justice.
“To the victims of these robberies, including two injured by gun shots, not even this sentence will justify the pain you have gone through,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “You feared for your lives and may never fully recover emotionally from that terror. But, hopefully knowing no one else will be threatened by them will bring some comfort to you.”
“This is another example of the collaboration that the Albany Police Department has with state and federal resources in addressing criminal acts in our community. Let this be a message to those who are intent on causing chaos and disorder, that the consequences of your decisions will have lasting effects on your life,” said Chief Michael Persley, Albany Police Department. “Our community has many challenges, and I am asking for community members to get involved and help our youth avoid situations like this. Many thanks to the men and women of the police department and FBI who worked tirelessly to bring these subjects to justice. There is more work to be done, but together we can continue to keep the good in the Good Life City.”
The defendants were involved in a violent robbery spree across Albany during 2016, both admitting guilt in a total of four of the seven robberies charged in the indictment. Parks and Mallory, armed and masked, robbed the Neighborhood Grocery on West Gordon Avenue close to midnight on September 9, 2016. During the robbery, Parks fired three shots into a locked office door, stealing a total of $8,702. A little more than two weeks later, on September 23, 2016, Mallory admitted he held up the same Neighborhood Grocery Store on West Gordon Avenue, armed with a loaded 9mm pistol. Every time Mallory demanded more money from the store clerk, he would discharge his weapon into the ceiling. Five spent 9mm shell casings were found inside the store, and Mallory ran off with $3,923. The defendants held up the BP store on Dawson Road in the early morning hours of October 6, 2016 with two clerks inside. One clerk, who got on the floor when the pair walked in, armed and masked, was shot by Parks in the buttocks. The other clerk chased the defendants after they ran off on foot with cash stolen from the store, and fired his own gun at them, shattering the back windshield of a customer’s vehicle. Both Parks and Mallory, armed with handguns and wearing ski masks to cover their faces, robbed the Dawson Food Mart on Dawson Road on November 3, 2016. Mallory shot the clerk in his leg.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/archives/projectguardian.
The case was investigated by the FBI and the Albany Police Department. U.S. Attorney Charlie Peeler and Assistant U.S. Attorney and Criminal Chief Michael Solis prosecuted the case for the Government. 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.
Queens Man Going to Prison for 20 Years for Narcotics Conspiracy and His Role in the Murder of Two BrothersRead 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 Misael Montalvo, 45, of Queens, NY, who was convicted of conspiracy to distribute cocaine, was sentenced to serve 20 years in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joseph M. Tripi, who handled the case, stated that between 2000 and November 2011, the defendant conspired to sell cocaine in the Buffalo area. In 2004, Montalvo, having previously resided in Buffalo, moved to Queens, NY, and returned to Buffalo approximately twice a month to sell cocaine.
Following a lengthy sentencing hearing, the Court determined that, as part of the drug conspiracy, the defendant orchestrated an armed burglary and robbery at the apartment of Nelson and Miguel Camacho, two brothers with whom Montalvo had been previously involved in drug trafficking activities. On November 11, 2004, Montalvo drove co-defendants Efrain Hidalgo and Brandon Jonas, whom he had recruited, along with a juvenile, to the area of the victims’ apartment. The defendant dropped them off with a loaded AK-47 rifle and an aluminum baseball bat and drove away. Thereafter, Hidalgo, Jones and the juvenile forced their way into the victims’ apartment. Once inside, Jonas immediately shot Nelson Comacho in the arm with the AK-47. As Hildalgo, Jonas, and the juvenile searched the apartment for money, Hildalgo encountered Miguel Comacho, who pointed a gun at him. Jonas then shot Miguel Comacho repeatedly with the AK-47, killing him. Thereafter, Jonas also shot an injured Nelson Comacho in the head, killing him as well. No money or drugs were stolen during the armed burglary and robbery. In determining that Montalvo ought to be held responsible for the murders, Judge Arcara concluded, “while the defendant did not intend for Jonas to murder his former co-conspirators, the ruthlessness of his planned armed burglary and robbery that resulted in their murder reflects of the nature of the co-conspirator relationships with the victims sufficiently to reflect on the seriousness of his drug conspiracy offense of conviction. Accordingly, the Court finds that an upward departure or variance to account for the felony murders applies.”
While imposing sentence, Judge Arcara noted that an innocent man, Josue Ortiz, wrongly served 10 years in state prison for the murders of the brothers. As a result of this federal prosecution, in 2015, Josue Ortiz was able to get his New York State homicide conviction vacated by an Erie County Court judge.
Efrain Hidalgo, who was the leader of the 7th Street Gang, was previously convicted and sentenced to serve 330 months in prison. Brandon Jonas was also previously convicted and is awaiting sentencing.
“This prosecution, quite literally, helped to transform the West Side of the City of Buffalo,” noted U.S. Attorney Kennedy. “Thanks to the investigative efforts of the Buffalo Police Department, the New York State Police, and the FBI, and the tremendous work of prosecution team led by AUSA Tripi, control of the West Side of Buffalo was removed from these violent street gangs and returned to the law-abiding residents and business owners who live in the neighborhood. As a result of this prosecution, a total of 65 individuals who were members or associates of the 10th Street and 7th Street gangs were convicted in federal court, and 64 have been sentenced. Ten cold case homicides, involving murders of victims ranging in age from 14-to 47-years-old, and including gang rivals, drug dealers, and innocent bystanders/people shot via mistaken identity, were solved as a result of this prosecution—as were dozens of non-fatal attempted murder shootings. Four of the 65 defendants went to trial and each was convicted and each sentenced to life imprisonment. This prosecution demonstrates that although a strong law enforcement response may not alone be sufficient to solve the problem of violence in our community, it is an indispensable part of the solution, and there can be no lasting solutions without it.”
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Stephen Belongia; the New York State Police, under the direction of Major James Hall; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
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Previously Convicted Felon Involved in Shooting Admits Illegal Possession of Firearm and AmmunitionRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man previously convicted of three felonies admitted today to illegally possessing a firearm and ammunition in connection with a shooting, U.S. Attorney Craig Carpenito announced.
Jamel Armfield, 20, of Jersey City, pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an indictment charging him with one count of possession of a firearm and ammunition by a convicted felon.
According to documents filed in this case and statements made in court:
On June 24, 2020, Armfield knowingly possessed a .45 caliber Springfield Armory semi-automatic handgun, Model XD-45 ACP, and 14 rounds of .45 caliber ammunition, when he fired nine rounds from that handgun at a vehicle traveling on Gates Avenue in Jersey City. The motive and intended target(s) remain unknown. The shooting was captured on a nearby surveillance camera. The firearm was then hidden by Armfield and recovered by members of the Jersey City Police Department. It contained five additional rounds of ammunition. At that time, Armfield had previously been convicted in the Superior Court of New Jersey, Hudson County, of possession of a controlled dangerous substance, possession with intent to distribute controlled dangerous substances on or near school property, and resisting arrest, all of which are felonies.
The charge to which Armfield pleaded guilty carries a maximum penalty of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for April 6, 2021.
This case is part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
U.S. Attorney Carpenito credited special agents and task force officers of the ATF, under the direction of Special Agent in Charge Charlie J. Patterson, Newark Field Division, and the Jersey City Police Department, under the direction of Public Safety Director James Shea, with the investigation leading to today’s guilty plea. He also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, for its assistance with the investigation.
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’s Criminal Division in Newark.
Defense counsel: Rahul Sharma Esq., Assistant Federal Public Defender, Newark
Parmelee Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Parmelee, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on November 30, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Aaron Brian James Neck, age 44, was sentenced to 10 months in federal prison, followed by two years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Neck was indicted by a federal grand jury on October 16, 2019. He pled guilty on September 14, 2020.
The conviction stemmed from an incident that occurred on August 29, 2019, near Norris, South Dakota, when Neck did forcibly assault and interfere with a law enforcement officer who was employed by the Rosebud Sioux Tribe Law Enforcement Services, and such conduct did involve physical contact.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore prosecuted the case.
Neck was immediately turned over to the custody of the U.S. Marshals Service.
Omaha Man Sentenced for Distributing Crack Cocaine and Possessing a FirearmRead the Press Release
United States Attorney Joe Kelly announced that Jordan D. Cotton, 29, of Omaha, Nebraska, was sentenced today for distributing crack cocaine while possessing a firearm. United States District Judge Brian C. Buescher sentenced Cotton to 130 months in federal prison. There is no parole in the federal system. Cotton will also serve a 5-year term of supervised release following his release from the Bureau of Prisons.
On December 3, 2019 law enforcement used a Confidential Informant (CI) to buy 4.5 grams of crack cocaine from Cotton at his residence in Omaha. On December 6, 2019, the Omaha Police Department Gang Unit executed a search warrant at Cotton’s home, recovering 51 grams crack cocaine, a 9mm handgun, $1,734 in United States Currency, digital scales, vacuum sealed bags with cocaine residue and venue items. Cotton was present and was arrested when the warrant was executed. At the time of his arrest Cotton, a previously convicted felon for Carrying a Concealed Weapon, Second Offense, and Possession of a Deadly Weapon by a Felon, was on Nebraska state parole after being released from prison on January 25, 2018.
This case was investigated by the Omaha Police Department and Bureau of Alcohol Tobacco, Firearms, and Explosives task force as 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.
Odessa Pharmacy and Owner to Pay $320,000 in Civil Penalties for Alleged Violations of the Controlled Substances Act and the Combat Methamphetamine Epidemic Act of 2005Read the Press Release
Odessa pharmacy Town & Country Drug, Inc. (Town & Country) and its owner, pharmacist Gary Warren, have entered into a civil settlement with the United States that requires them to pay $320,000 in civil penalties to resolve allegations that they violated certain provisions of the Controlled Substances Act (CSA) and the Combat Methamphetamine Epidemic Act of 2005 (CMEA), announced U.S. Attorney Gregg N. Sofer and Drug Enforcement Administration (DEA) Special Agent in Charge Kyle Williamson, El Paso Division.
During a routine inspection of Town & Country in May 2017, DEA Diversion investigators identified significant discrepancies in the pharmacy’s inventory of controlled substances. DEA investigators noted that Town & Country was in violation of numerous regulatory recordkeeping provisions and had sold pseudoephedrine and ephedrine products without self-certifying as required by the Combat Methamphetamine Epidemic Act of 2005 (CMEA). During a follow-up inspection in February 2020, DEA Diversion investigators identified additional discrepancies in the pharmacy’s inventory of controlled substances, determining that Town & Country continued to both violate CSA recordkeeping requirements and sell pseudoephedrine and ephedrine products without self-certifying. These requirements are intended to prevent the diversion of controlled substances for illegal purposes.
The CMEA was signed into law on March 9, 2006 to regulate, among other things, over-the-counter sales of ephedrine, pseudoephedrine, and phenylpropanolamine products, common ingredients in cough, cold, and allergy products. Retail provisions of the CMEA include daily sales limits and 30-day purchase limits, placement of product out of direct customer access, sales logbooks, customer ID verification, employee training and self-certification of regulated sellers. The CMEA was passed because those drugs are precursor chemicals used in the illicit manufacture of methamphetamine or amphetamine.
“Pharmacies play a vital role in ensuring that opioids and other addictive drugs are not diverted and abused,” said U.S. Attorney Sofer. “This office will use all available tools at our disposal, including civil remedies when appropriate, to detect, prevent, and prosecute violations of federal recordkeeping requirements.”
“Historically, most diversion of legitimate controlled substance occurs at the retail level,” said DEA Special Agent in Charge Williamson. “The DEA will continue to combat the rising tide of prescription abuse in our country by ensuring DEA-registered entities follow all requirements set forth by the law.”
Town & Country has informed the government that it is enhancing its recordkeeping and compliance program in response to the deficiencies identified by the DEA and that it will maintain a current certification under the CMEA.
The DEA’s Diversion Control Unit in El Paso led the investigation of this matter. Assistant U.S. Attorney Thomas Parnham negotiated the settlement on behalf of the government. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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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.
North Carolina man admits to ginseng violationRead the Press Release
ELKINS, WEST VIRGINIA – David Changhyub Lee, of Raleigh, North Carolina, has admitted to aiding and abetting the illegal transportation of ginseng across state lines, U.S. Attorney Bill Powell announced.
Lee, 35, pled guilty today to one count of “Interstate Transportation of Ginseng in Violation of State Law – Aiding and Abetting.”
In the fall of 2018, Lee was identified as a willing buyer of illegally transported ginseng. In September and October 2018, Lee facilitated and purchased nearly 15 pounds of ginseng for a total of $4250 from Randolph County and elsewhere and transported it to North Carolina.
This case was in violation of the federal Lacey Act (16 USC § 3371 et seq.), which prohibits the taking and interstate trafficking of protected plants and animals in violation of state law. Under 16 USC § 3373, it's a felony if the plant's market value exceeds $350.00. West Virginia's ginseng statute (WV Code 19-1A-3a) has various requirements for the ginseng market. One requirement is that ginseng not be transported to another state absent a certificate of origin from the West Virginia Division of Forestry.
Lee faces up to one year of incarceration and a fine of up to $10,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The U.S. Fish and Wildlife Service and the West Virginia Natural Resources Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Nine Individuals Charged in A Superseding Indictment for Firearms TraffickingRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury returned a superseding indictment charging nine individuals for firearms trafficking without a license in the District of Puerto Rico, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The investigation was a joint effort between U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Postal Inspection Service (USPIS), the Drug Enforcement Administration (DEA), and the Puerto Rico Police Department (PRPD).
According to the superseding indictment, defendants Kenrick Vargas-Castro, Emmanuel Rivera-Figueroa, Christopher Shaquille Pérez-Álvarez, Kassandra Cruz, and Mariam Figueroa engaged in the business of dealing in firearms without a license. The purpose of their firearms trafficking conspiracy was to ship firearms from Texas to Puerto Rico for distribution within Puerto Rico for pecuniary gain.
As part of the conspiracy, Pérez-Álvarez purchased firearms in Texas and sent them to Puerto Rico where other co-conspirators delivered them to other individuals in exchange for money. Defendant Mariam Figueroa-Alicea straw purchased firearms in Texas and received money transfers from co-conspirators who were part of the firearms trafficking organization located in Puerto Rico. Defendant Kassandra Cruz prepared firearms for mailing, sent them to Puerto Rico by mail, and received money transfers related to these transactions.
Kenrick Vargas-Castro delivered the firearms to individuals in Puerto Rico in exchange for money. Rivera-Figueroa received firearms from Vargas-Castro and others and delivered them to other individuals in exchange for money.
Count two of the superseding indictment charges Kenrick Vargas-Castro, Kevin Ramos, Leemarie Torres-Castro, Julio Torres-Castro, Emmanuel Rivera-Figueroa, and Christian Pérez-Álvarez for conspiracy to possess with intent to distribute over five (5) kilograms of cocaine. These defendants are facing a narcotics forfeiture allegation of $66,933.
Count three charges Kenrick Vargas-Castro, Kevin Ramos, Leemarie Torres-Castro, and Julio Torres-Castro with using means of communication, that is, telephones and the United States mail, to facilitate the trafficking of firearms. Count four charges Kenrick Vargas-Castro, Kevin Ramos, and Leemarie Torres-Castro with a money laundering conspiracy. According to the superseding indictment, these three coconspirators transported currency from the continental United States into Puerto Rico, having the currency concealed within luggage and transported through commercial airlines for delivery in Puerto Rico. They are facing a money laundering forfeiture allegation of $66,291.
Upon conviction of the offenses listed in the superseding indictment, Kenrick Vargas-Castro shall forfeit to the United States one Keltec PLR16 pistol, one Aero Precision X-15 pistol, sixty-three (63) .300 caliber bullets, one round of .45 caliber ammunition, and fifty (50) rounds of .40 caliber ammunition. Christopher Shaquille Pérez-Álvarez and Mariam Figueroa-Alicea shall forfeit to the United States nine (9) Century Arms Micro Draco pistols 7.62 caliber.
“We will vigorously prosecute those involved in the illegal trafficking of drugs and firearms, which are subsequently used in the commission of violent crimes like the shootings that we have seen lately in our communities,” said U.S. Attorney Muldrow. “These arrests show our commitment to hold people accountable for drug and firearms trafficking, as well as for laundering the proceeds of their criminal activities.”
“The indictment and arrest of these individuals sends a clear message to those involved in money laundering as well as drug and illegal weapons trafficking,” said Ivan J. Arvelo, special agent in charge for HSI San Juan. “ICE HSI, along with its local, state and federal law enforcement partners, will go after them, bring them to justice and seize the assets produced by their illicit activity.”
Assistant U.S. Attorneys Jeanette M. Collazo-Ortiz and Jonathan L. Gottfried, Chief of the Violent Crimes and National Security Section, are in charge of the prosecution of the case. If convicted, the defendants face up to five years in prison for the firearms trafficking conspiracy; up to twenty for drug trafficking; and up to twenty years for money laundering.
An indictment contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
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Navajo man pleads guilty to sexual abuse of a child in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Copey Ferlin Henderson, 27, an enrolled member of the Navajo Nation, pleaded guilty in federal court in Albuquerque today to sexually abusing a child in Indian Country.
According to the plea agreement, Henderson admitted that on May 16, 2019, he engaged in sexual activity with a child, who at the time of the offense was older than 12 but younger than 16. Henderson, who was 25 at the time, committed the offense in Cibola County on the Navajo Nation.
Henderson is currently in custody pending sentencing. He faces up to 15 years in federal prison.
The Ramah Navajo Police Department investigated this case. Assistant U.S. Attorney Novaline D. Wilson is prosecuting the case.
Nashville Man Pleads Guilty to Drug Distribution & Firearms Charges in Case That Left A Three-Year-Old Child with A Gunshot to the HeadRead the Press Release
NASHVILLE, Tenn. – December 2, 2020 – Kedrick Ross, 27, of Nashville, pleaded guilty Monday in U.S. District Court to drug distribution and firearms charges, resulting from an 11-count indictment handed down last year, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Ross was initially charged in a criminal complaint on October 2, 2019, and indicted by a federal grand jury in November 2019 and charged with three counts of being a convicted felon in possession of firearms; three counts of possession of a firearm in furtherance of a drug crime; possession of a controlled substance with intent to distribute marijuana, methamphetamine and Xanax, within 1,000 feet of an educational institution; possession of a controlled substance with intent to distribute marijuana and methamphetamine, within 1,000 feet of a public housing complex; possession with intent to distribute methamphetamine; and two counts of obstruction of justice.
On December 13, 2018, Ross, a convicted felon, was in possession of a stolen Glock .40 caliber handgun, 208 grams of marijuana, and a mixture of methamphetamine near the Watkins College of Art in Nashville. While out on bond on these state charges, on May 29, 2019, Ross was in possession of a stolen Glock 9mm handgun, a stolen Glock .45 caliber handgun, marijuana and methamphetamine, while in the Cumberland View Public Housing development, and on September 9, 2019, Ross was in possession of a stolen Glock .40 caliber handgun while in possession of methamphetamine, with intent to distribute. This firearm was determined to have been the same firearm that Ross left unattended at a relative’s house and with which his 3-year- old son shot himself in the head on the same day and was critically injured. Ross later obstructed justice during the investigation of this incident by attempting to persuade his cousin to falsely claim that this firearm belonged to the cousin’s deceased husband.
Ross faces a mandatory minimum sentence of 16 years and up to life in prison when he is sentenced on April 23, 2021.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Metropolitan Nashville Police Department Youth Services Division. Assistant U.S. Attorney Sunny A.M. Koshy is prosecuting the case.
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Montrose Man Sentenced to 180 Months in Prison for Methamphetamine TraffickingRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of MARK OREN SCHORN, 53, to 180 months in prison for his role in a methamphetamine trafficking conspiracy. SCHORN, who pleaded guilty on August 19, 2020, was sentenced today before Judge Eric C. Tostrud in U.S. District Court in St. Paul, Minnesota.
According to the defendant’s guilty plea and documents filed in court, SCHORN and his co-conspirators engaged in a large-scale methamphetamine trafficking operation. On April 14, 2020, law enforcement stopped SCHORN’s co-conspirators, including Lucas Jay Madison, near Faribault, Minnesota, as they traveled back from Phoenix, Arizona. Law enforcement conducted a search of the vehicle and recovered approximately 23 pounds of methamphetamine contained within a backpack. Lucas Jay Madison was sentenced to 235 months in prison on November 24, 2020.
According to the defendant’s guilty plea and documents filed in court, the recovered methamphetamine was intended for delivery to SCHORN and other co-conspirators in the Twin Cities. On the same day, law enforcement conducted multiple search warrants, including at SCHORN’s apartment in Montrose, Minnesota. Law enforcement found over $100,000, two digital scales, an empty holster, metal knuckles with a retractable knife, and ammunition in various calibers inside SCHORN’s bedroom. During the execution of the search warrant, SCHORN attempted to flee the apartment. The following day, law enforcement located a 9mm handgun hidden along SCHORN’s flight path.
This case is the result of an investigation conducted by the United States Drug Enforcement Administration, the Anoka Hennepin Drug Task Force, the Cannon River Drug & Violent Offender Task Force, the Southeast Minnesota Gang and Drug Task Force, the Wright County Sheriff’s Office, the Rice County Sheriff’s Office, the Anoka County Sheriff’s Office, the Minnesota State Patrol, and the Edina Police Department.
Assistant United States Attorney Allen A. Slaughter prosecuted the case.
Defendant Information:
MARK OREN SCHORN, 53
St. Paul, Minn.
Convicted:
- Conspiracy to distribute methamphetamine, 1 count
Sentenced:
- 180 months in prison
- Five years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Michigan Man Living in the Philippines Pleads Guilty to Child Exploitation OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JASON KELLER, 35, originally of Dearborn Heights, Michigan, pleaded guilty today to one count of receipt of child pornography.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. District Judge Victor A. Bolden occurred via videoconference.
According to court documents and statements made in court, in September 2018, Keller, using the moniker “Eddie Buttered Toast,” contacted a 14-year-old female in Connecticut and claimed he was a 17-year-old boy from Chicago. At the time, Keller was living in the Philippines. Keller then sent the minor victim a series of grooming emails that eventually coaxed the minor victim into sending photos of herself engaged in sexually explicit conduct to Keller. Some of the emails Keller sent to the minor victim included sexually explicit images of himself.
On December 19, 2018, a grand jury in New Haven returned an indictment charging Keller. Keller was located and arrested in the Philippines in June 2019. He was removed from the Philippines and returned to the U.S. on December 12, 2019. He has been detained since his arrest.
Receipt of child pornography carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years. A sentencing date is not scheduled.
This matter has been investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the U.S. Marshals Service, International Investigations Branch, with the assistance of the Philippine Bureau of Immigration, Fugitive Search Unit. The case is being prosecuted by Assistant U.S. Attorney Lauren Clark.
U.S. Attorney Durham thanked the U.S. Department of Justice’s Office of International Affairs for its assistance in this matter.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Mercer County Man Charged with Possessing A Large Quantity of Heroin with Intent to DistributeRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man is expected to make his initial appearance today after being charged with possession with the intent to distribute 100 grams or more of heroin, U.S. Attorney Craig Carpenito announced.
Daevon Bell, 26, of Hamilton Township, New Jersey, is charged by complaint with one count of possession with intent to distribute 100 grams or more of heroin. He was arrested by special agents of the U.S. Drug Enforcement Administration on Dec. 1, 2020, and is scheduled to appear this afternoon before U.S. Magistrate Judge Douglas E. Arpert.
According to documents filed in this case and statements made in court:
A law enforcement investigation revealed that Bell was engaged in the distribution of heroin in Trenton and the surrounding area. Based on information received from a reliable source, law enforcement officials determined that Bell was in possession of a large quantity of heroin on Dec. 1, 2020. Law enforcement officials followed Bell in his vehicle from Trenton to Morrisville, Pennsylvania. Bell drove to an apartment complex, retrieved a bag from the trunk of his vehicle and entered an apartment. Shortly thereafter, Bell exited the apartment holding a bag and returned to his vehicle. Law enforcement agents approached Bell, who then attempted to flee in his vehicle, striking a DEA agent and striking another occupied law enforcement vehicle. Bell discarded the bag from the vehicle, and then led law enforcement on a high-speed chase into New Jersey, and was apprehended in Lawrenceville, New Jersey. Law enforcement recovered approximately 150 bricks of suspected heroin from the bag that Bell had discarded from the vehicle.
The charge of possession with intent to distribute 100 grams or more of heroin carries a minimum sentence of five years and a maximum of 40 years in prison, and a $5 million fine.
U.S. Attorney Carpenito credited special agents of the DEA under the direction of Special Agent in Charge Susan A. Gibson.in Newark, and the Philadelphia Division under the direction of Special Agent in Charge Jonathan A. Wilson, with the investigation leading to today’s charges. He also thanked the Buck’s County District Attorney’s Office, under the direction of District Attorney Matthew D. Weintraub and the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, for their assistance.The case was investigated as part of the Violent Crime Initiative (VCI) in Mercer County, New Jersey. The VCI was formed in August 2020 by the U.S. Attorney’s Office for the District of New Jersey and the Mercer County Prosecutor’s Office, and the Trenton Police Department for the purpose of combatting violent crime in and around Trenton. As part of this partnership, federal, state, and local agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the Trenton Police Department, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J.
The government is represented by Assistant U.S. Attorney Michelle S. Gasparian of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Brian P. Reilly Esq., Assistant Federal Public Defender, Trenton
Member of North Shore Latin Kings Chapter Pleads Guilty to Drug Distribution ChargesRead the Press Release
BOSTON – A member of the North Shore Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to drug distribution charges.
Jesus Diaz, a/k/a “King Kiko,” 37, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute cocaine base, also known as “crack” cocaine. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for March 24, 2021. Diaz was charged in December 2019, at which time he was in custody for another pending case in Massachusetts state court.
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, Diaz admitted to selling a cooperating witness over 70 grams of cocaine base, or “crack” cocaine, in a series of audio/video recorded sales that took place between January and March of 2015.
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. Diaz is the 24th 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.
Member of “Boogaloo” Movement Group Charged with Enticement of A Minor to Engage in Sexual ActivityRead the Press Release
SAN FRANCISCO – Robert Jesus Blancas, a/k/a “Orgotloth” a/k/a “MuskOx,” made his initial appearance today after being charged in a federal criminal complaint alleging the enticement of a minor to engage in sexual activity, that is, the production of child pornography, announced U.S. Attorney David L. Anderson and FBI Special Agent in Charge Craig D. Fair.
According to the criminal complaint, Blancas, 33, a transient resident of the Bay Area, was identified as a member of an anti-government citizen militia group associated with the so-called “boogaloo” movement. A search of his electronic devices revealed not only evidence of his association with this group and communications related to acts of violence against law enforcement, but also evidence of his activities related to child pornography.
The criminal complaint alleges that in or about May 2020, Blancas met a 15-year-old minor female on an online forum. Through at least August 2020, Blancas exchanged thousands of text messages over multiple online and text message platforms with the minor victim, instructing her to send him pornographic photographs and videos of herself.
The criminal complaint further alleges that photographs and videos of the minor victim sent to Blancas depict a young girl and the bedroom of a young girl. The criminal complaint also describes examples of Blancas’s prior conversations of a sexually explicit nature with additional users who identified their ages to him as 13, 15, and 16.
Blancas is charged with the enticement of a minor to engage in sexual activity in violation of 18 U.S.C. § 2422(b). If convicted, Blancas faces a minimum penalty of 10 years to a maximum of lifetime in prison, a minimum of 5 years to a maximum of lifetime of supervised release, and a maximum of a $250,000 fine. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
A complaint merely alleges that a crime has been committed, and the defendant is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
Blancas was arrested on December 1, 2020, and made his initial appearance in federal court earlier today before U.S. Magistrate Judge Laurel Beeler. Blancas is currently held in custody pending further proceedings. His next federal court appearance is scheduled for a detention hearing on December 8, 2020, before U.S. Magistrate Judge Laurel Beeler.
The prosecution is being handled by the Special Prosecutions Section of the U.S. Attorney’s Office for the Northern District of California. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Marshall County man indicted on firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – James Warren, of Cameron, West Virginia, is facing a firearms charge, U.S. Attorney Bill Powell announced.
Warren, 59, was indicted on one count of “Unlawful Possession of Firearms.” Gray, a person prohibited from having a firearm because of a prior felony conviction, is accused of having six firearms and various ammunition in May 2020 in Marshall County.
Warren faces up to 10 years of incarceration and a fine of up to $250 ,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Marshall County Sheriff’s Office investigated.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Manitowoc Couple Indicted on Methamphetamine ChargeRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on December 1, 2020, a federal grand jury indictment was issued against Malachi R. Hetzer (age: 29) and Breanna E. Pieschel (age: 32) both of Manitowoc, Wisconsin.
The indictment alleges that Hetzer and Pieschel conspired to distribute in excess of five grams of actual methamphetamine with the intent to distribute it to others in violation of Title 21, United States Code, Sections 841(a) and 841(b)(1)(A). “Actual” methamphetamine possesses a high level of purity and is also known as “crystal” methamphetamine or “ice.” If convicted of the charge, Hetzer and Pieschel face a mandatory minimum of five years’ imprisonment and up to 40 years’ imprisonment. They face a fine of up to $5,000,000 and from four years to a lifetime on supervised release.
An indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
This case was investigated by the Manitowoc County Metropolitan Drug Enforcement Group. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
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.
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Man Charged with Kidnapping and Carjacking with Intent to KillRead the Press Release
RICHMOND, Va. – A federal grand jury returned an indictment today charging a Maryland man with the kidnapping and carjacking of a woman in Henrico County in September 2019.
According to allegations in the indictment, on Sept. 18, 2019, Devon Allen Odell Scott, 38, of Edgewood, abducted a woman for the purpose of committing a sexual assault on and robbery of that same victim, and after traveling from Maryland to Virginia in furtherance of that offense. In the course of the kidnapping, Scott forcibly carjacked the victim’s vehicle with the intent to cause death and serious bodily harm to that victim.
Scott is charged with carjacking and kidnapping. If convicted, he faces a maximum penalty of life 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.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office; and Eric D. English, Chief of Henrico County Police Division, made the announcement.
Assistant U.S. Attorneys Thomas A. Garnett and Peter S. Duffey are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Man Admits Role in Nationwide Card Fraud, Money Laundering SchemeRead the Press Release
Assistant U. S. Attorney Nicholas Pilchak (619) 546-9709
NEWS RELEASE SUMMARY – December 2, 2020
SAN DIEGO – A former Glendale resident pleaded guilty today to engaging in a long-running, nationwide fraud conspiracy that stole unwitting victims’ financial information by skimming it from ATMs and gas pumps in San Diego and across the country, and used the stolen information to make phony credit and debit cards. Seven men in total are charged with participating in that conspiracy, and in a related money laundering conspiracy, that netted over a million dollars in ill-gotten gains.
Defendant Arsen Minasyan entered a guilty plea today before U.S. Magistrate Judge Linda Lopez to participating in a conspiracy to launder the proceeds of fraud committed by unauthorized access devices: essentially, fake credit and debit cards used as part of the fraud scheme.
The indictment alleges that Minasyan and his co-defendants worked together to steal unwitting victims’ credit and debit card information by using skimming devices installed in common points of sale such as gas pumps and ATMs. With the stolen information in hand, the conspirators made a host of unauthorized cards that they then used to buy postal money orders and make withdrawals from victims’ accounts.
“This office will not tolerate those who prey upon unwitting victims innocently using the financial system for their everyday needs,” said U.S. Attorney Robert Brewer, “nor thieves’ criminal partners who launder their money. Both fraudsters and their money laundering accomplices will face justice.” Brewer praised prosecutor Nick Pilchak and U.S. Secret Service agents for their excellent work on this case.
“The fraudulent compromise of individuals’ financial security threatens our economic stability and security as a whole, and will not go undetected,” said San Diego Acting Special Agent in Charge of Secret Service Timothy Scott. “I commend the especially skilled investigators who worked tirelessly to detect these defendants and their criminal activity, despite their futile efforts to operate in the shadows.”
In his plea agreement, Minasyan admitted that he and another defendant had between them $13,380 in illicit cash and 68 phony cards on just a single day last summer during the conspiracy. Minasyan acknowledged that the entire scheme inflicted losses and attempted losses of at least $1.2 million on its victims, and that he personally participated in the scheme in Glendale, New York, Oklahoma, and Southern California.
According to the charges in the indictment, the conspiracy victimized individuals and their accounts across the country: in New York, Illinois, Missouri, Oklahoma, and at over a dozen post offices in Southern California, including throughout the San Diego area, where the perpetrators used stolen cards to buy hundreds of thousands of dollars of postal money orders, which they then laundered through the banks.
The money laundering charges detail how three defendants—the Simonyan brothers and their accomplice, Minasyan—laundered the criminal funds through shell bank accounts and structured withdrawals. For example, in one month alone, the Simonyan brothers allegedly withdrew $91,500 in cash from a single bank account in structured amounts under $10,000 to avoid the threshold for reporting the withdrawals to the authorities.
Minasyan is set to be sentenced February 24 at 9:30 a.m. by U.S. District Judge Michael M. Anello. The remaining defendants are next in court on January 13, 2021 before Judge Anello.
Anyone who believes that they may be a victim of this offense can visit the U.S. Department of Justice’s large case website for more information: www.justice.gov/largecases.
DEFENDANTS Age Case Number 20cr314-MMA
- Davit Simonyan 30 Residence: Glendale, California
- Vahram Simonyan 34 Residence: Glendale, California
- Arsen Minasyan 34 Residence: Western Region Detention Facility
- Gor Plavchyan 26 Residence: Winnetka, California
- Arsen Galstyan 40 Residence: Glendale, California
- Mukuch Mkrtchyan 32 Residence: Fair Oaks, California
- Smbat Shahinyan 41 Residence: Glendale, California
SUMMARY OF CHARGES
Conspiracy to Launder Monetary Instruments, in violation of Title 18, United States Code, Section 1956(h) (Defendants 1 through 3 only)
Maximum Penalty: Twenty years in prison; fine of $500,000 or twice the value of the property involved
Conspiracy to Possess Fifteen or More Unauthorized Access Devices, in violation of Title 18, United States Code, Sections 1029(b)(2), 1029(a)(3), and 1029(c)(1)(A)(i) (Defendants 1 and 3–7 only)
Maximum Penalty: Five years in prison; fine of $250,000 or twice the gross gain or loss
AGENCY
United States Secret Service
U.S. Postal Inspection Service
*The charges and allegations contained in an indictment are merely accusations. The defendants are considered innocent unless and until proven guilty
MS-13 Gang Associate Sentenced to Life Imprisonment for Murder in Deli on Long IslandRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Jose Suarez, an associate of the Sailors Locos Salvatruchas Westside (Sailors) clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, was sentenced to life in prison by United States Circuit Judge Joseph F. Bianco. In May 2019, Suarez was convicted following a three-week jury trial of murder, racketeering and assault charges in connection with the January 30, 2017 murder of Esteban Alvarado-Bonilla and the shooting of a female employee at a deli in Central Islip, and the December 18, 2016 assault of a man outside a restaurant in Brentwood.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Geraldine Hart, Commissioner, Suffolk County Police Department (SCPD), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the sentence.
“Suarez will deservedly spend the rest of his life in a federal prison for the brutal murder and mayhem he committed in the name of the MS-13 gang,” stated Acting United States Attorney DuCharme. “The investigation and trial of this case is the result of the unyielding commitment of the Office and our partners on the FBI’s Long Island Gang Task Force to eradicate the MS-13 in this district.”
“Mr. Suarez' life sentence in federal prison is simply another brick in the wall we've built around MS-13 to stop this violent gang from terrorizing people on Long Island. Agents and detectives assigned to the FBI's Long Island Gang Task Force, whose work continues to this day, have put in a tremendous amount of time and effort to dismantle this gang. The results of their labor, as well as the community's commitment to working with us to prevent a resurgence in gang activity, is commendable,” stated FBI Assistant Director-in-Charge Sweeney.
“The relentless efforts of the FBI’s Long Island Gang Task Force and the Eastern District of New York have never wavered in holding MS-13 gang members accountable for their violent, senseless crimes,” stated SCPD Commissioner Hart. “Thanks to their dedication, Suarez will spend the rest of his life behind bars for the murder and assaults that he committed. This sentence sends a message that our department along with our local and federal law enforcement partners remain determined to dismantle this transnational gang.”
“The continued efforts of the Long Island Gang Task Force continues to show positive results in their commitment to eradicate criminal gang activity. The conviction of MS-13 Gang Member Jose Suarez on charges of Murder, Racketeering and Assault charges is a clear example that this multi-agency approach is working. I would like to acknowledge the continued efforts of the dedicated investigators and their agencies for keeping residents and our communities safe,” stated NCPD Commissioner Ryder.
On January 30, 2017, a member of the Sailors clique saw Alvarado-Bonilla inside El Campesino Deli in Central Islip. Believing that Alvarado-Bonilla was a rival gang member, several members of the Sailors clique plotted to kill him. Suarez drove MS-13 member Mario Aguilar-Lopez and an MS-13 associate to a street near the deli. Aguilar-Lopez entered the deli, approached the victim from behind and shot him multiple times, killing him. One of the bullets traveled through Alvarado-Bonilla’s head and struck a female employee of the deli standing directly in front of him. Aguilar-Lopez ran out of the deli and to the car where Suarez was waiting, and the two fled the scene. The store employee survived a gunshot wound to the chest. In November 2018, Aguilar-Lopez pleaded guilty to causing Alvarado’s death and shooting the store clerk. He is awaiting sentencing.
On December 18, 2016, Suarez and several MS-13 members and associates assaulted two men outside the Super Taco facility in Brentwood, seriously injuring one of the men. The victims were attacked because one of them had disrespected the MS-13.
Today’s sentencing is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13. The MS-13’s leadership is based in El Salvador, Mexico, Guatemala and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. With numerous branches, or “cliques,” the MS-13 is the largest and most violent street gang on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 60 murders in the district, and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, NCPD, SCPD, the Nassau County Sheriff’s Department, the Suffolk County Sheriff’s Office, the Suffolk County Probation Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department, and the New York State Department of Corrections and Community Supervision.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys John J. Durham, Michael T. Keilty, Paul G. Scotti and Justina L. Geraci are in charge of the prosecution.
The Defendant:
JOSE SUAREZ (also known as “Chompira”)
Age: 26
Central Islip, New YorkE.D.N.Y. Docket No. 16-CR-403 (JFB)
Licensed Attorney and Disbarred Attorney Charged with Securities Fraud for Roles in Fraudulent Opinion Letter SchemeRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and Carl W. Hoecker, the Inspector General of the Office of Inspector General of the U.S. Securities and Exchange Commission (“SEC-OIG”), announced today the unsealing of an Indictment in Manhattan federal court charging RICHARD RUBIN and THOMAS CRAFT with securities fraud. The Indictment alleges that RUBIN, a disbarred attorney, and CRAFT, an attorney licensed in Florida, engaged in a fraudulent scheme in which CRAFT falsely represented that he had undertaken certain legal work in connection with three types of attorney opinion letters, all of which enabled the relevant securities to be sold to the investing public. In truth and in fact, RUBIN, despite his disbarment, had undertaken all of the legal work attested to in the letters; CRAFT merely served as a “rubber stamp” on the letters in exchange for tens of thousands of dollars in monetary compensation. RUBIN was taken into custody today in New York, New York, and will be presented today before Magistrate Judge Katharine H. Parker in Manhattan federal court. CRAFT was taken into custody today in West Palm Beach, Florida, and will be presented today in federal court in Florida. The case has been assigned to United States District Judge Paul A. Engelmayer.
Acting U.S. Attorney Audrey Strauss said: “As alleged, rather than act as gatekeepers against fraud, the defendants used their positions as attorneys – albeit one of them disbarred – to actively carry out a fraud, working to generate dozens of attorney opinion letters containing false representations that brought false comfort to the investing public that certain legal work had been performed and certain information had been confirmed as accurate.
SEC Inspector General Carl W. Hoecker said: “Today’s criminal indictment demonstrates our commitment to holding bad actors accountable for undermining the integrity of the securities registration system.”
As alleged in the Indictment unsealed today in Manhattan federal court:[1]
Securities Registration Requirements and SEC Rule 144
Under the Securities Act of 1933 (the “Securities Act”), anyone seeking to sell a security must first register the offering of that security unless an exemption applies. See 15 U.S.C. § 77e. This registration requirement protects investors by promoting disclosure of information pertinent to informed investment decisions.
A company registering the offer of securities must complete a registration statement such as SEC Form S-1 before the securities can be listed on a national exchange and publicly traded. SEC Form S-1 contains information pertinent to informed investment decisions, including, among other things, information on the company’s business operations, the company’s financial condition, and a description of the company’s management. In connection with SEC Form S-1, the company is required to file an opinion letter (the “Form S-1 Opinion Letter”) from a licensed attorney regarding the legality of the securities being offered or sold pursuant to the registration statement. A company’s SEC Form S-1 and the Form S-1 Opinion Letter are available to the public on the SEC’s Electronic Data Gathering, Analysis, and Retrieval System (“EDGAR”).
“Restricted securities” refers to securities acquired in unregistered, private sales from the issuing company or from an affiliate of the issuer, with “affiliate” meaning a person that directly or indirectly controls, or is controlled by, or is under common control with, an issuer. Affiliates can also include an executive officer or a director or large shareholder who is in a relationship of control with respect to the issuing company. Restricted securities bear a legend indicating that the securities may not be resold in the marketplace unless they are registered with the SEC or are exempt from such registration requirements.
Securities Act Rule 144 (“Rule 144”), codified at 17 C.F.R. § 230.144, provides a registration exemption for the resale of restricted securities. Specifically, it permits the public resale of restricted securities if a number of conditions are met, including conditions relating to how long the securities are held, the way in which they are sold, the public information available to investors about the securities, and the amount that can be sold at any one time. However, even if these conditions are met, the sale of restricted securities to the public is still not permitted until a transfer agent removes the “restricted” legend from the security.
The term “transfer agent” refers to a company that keeps track of individuals and entities that own the stocks and bonds of a given company that has publicly traded securities. Among other things, transfer agents issue and cancel certificates to reflect changes in ownership, serve as the company’s intermediary for payouts, exchanges, or mailings, and handle lost, destroyed or stolen certificates. Transfer agents also, when appropriate, remove the “restricted” legend from securities.
A Rule 144 Seller’s Representation Letter, or “Seller’s Representation Letter,” is a letter to a transfer agent to establish certain facts underlying a legal opinion that the securities at issue can be sold publicly pursuant to Rule 144. The transfer agent relies on the Seller’s Representation Letter in determining whether to remove the restricted legend from a security.
Over-the-Counter Securities and OTC Markets Group
Over-the-counter (“OTC”) securities are securities that are traded between two counterparties outside of a formal securities exchange. OTC Markets Group (“OTC Markets”) is a company headquartered in New York, New York that provides price and liquidity information for OTC securities.
OTC Markets requires issuers seeking to be quoted on certain tiers of OTC Markets to hire a licensed attorney to review company records and submit a letter to OTC Markets (an “OTC Markets Attorney Letter”) regarding whether information publicly disclosed by the issuer is in compliance with the condition in SEC Rule 144 governing the public information available to investors about the issuer. OTC Markets relies on the OTC Markets Attorney Letter to determine whether an issuer’s security may be quoted on OTC Markets. OTC Markets Attorney Letters are available to the public on the OTC Markets website.
The Scheme to Defraud
From at least in or about 2011 through at least in or about September 2018, RUBIN and CRAFT, the defendants, participated in a fraudulent scheme in which CRAFT falsely represented that he had undertaken certain legal work in connection with Seller’s Representation Letters, OTC Markets Attorney Letters, and S-1 Opinion Letters, all of which enabled the relevant securities to be sold to the investing public. In addition, in connection with the securities of certain issuers, RUBIN, the defendant, falsely represented that he was an attorney in Seller’s Representation Letters and OTC Markets Attorney Letters, all of which enabled the relevant securities to be sold to the investing public. The false representations were in letters pertaining to over a dozen companies.
RUBIN, 78, of Brooklyn, New York, and CRAFT, 55, of Tequesta, Florida, are each charged with one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison, one count of securities fraud in violation of 18 U.S.C. §§ 1348 and 2, which carries a maximum sentence of 25 years in prison, and one count of securities fraud in violation of 15 U.S.C. §§ 78j(b) and 78ff, 17 C.F.R. § 240.10b-5, and 18 U.S.C. § 2, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
* * *
Ms. Strauss praised the investigative work of the SEC OIG. Ms. Strauss also thanked the U.S. Postal Inspection Service, Office of the Inspector General, which assisted in the investigation. Ms. Strauss also thanked the SEC Division of Enforcement, which brought a separate civil enforcement action against the defendants.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Martin Bell and Jordan Estes are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Lee County Man Sentenced to Jail for Communicating A False Distress Message to the U.S. Coast GuardRead the Press Release
Fort Myers, Florida – U.S. District Judge John L. Badalamenti today sentenced Justin Patrick Obert (32, Fort Myers) to three months in federal prison, followed by three years of supervised release, for communicating a false distress message to the Coast Guard. The court also ordered Obert to pay $13,414.78 to the Coast Guard for costs associated with their search and rescue response.
Obert had pleaded guilty on August 21, 2020.
According to court documents, on the evening of September 9, 2019, Obert drunkenly discharged two red distress flares from a vessel near Fort Myers Beach, triggering an emergency search and rescue operation by the United States Coast Guard, Fort Myers Beach Fire Rescue, and the Florida Fish and Wildlife Commission. Ultimately, an intoxicated Obert was determined to be the person who had discharged the emergency flares, which he did when no emergency assistance was actually needed, causing the unnecessary diversion of search and rescue personnel from multiple agencies.
“Hoax calls put the public at risk,” said Capt. Matt Thompson, Coast Guard Sector St. Petersburg Commander. “Mariners on the water rely and count on Coast Guard assets and personnel to be ready and able to respond when they are in distress. Hoax calls can redirect critical rescue capabilities and put lives at risk in the dangerous maritime domain.”
This case was investigated by the Coast Guard Investigative Service, the Florida Fish and Wildlife Commission, and the Collier County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Simon R. Eth.
La Crosse Man Sentenced to over 10 Years for Possessing Methamphetamine for DistributionRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that James Dean, 37, La Crosse, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 10 ½ years in federal prison for possessing methamphetamine with intent to distribute.
On February 5, 2020, La Crosse police officers received a tip from an informant that Dean was at a gas station. Officers were aware that Dean had an active felony arrest warrant. Officers responded to the gas station and saw Dean get into the passenger side of a car. As the car left the gas station, officers attempted a traffic stop but Dean ran out of the car. During a brief foot pursuit, Dean ran full speed into a picnic table and flipped into the air. After Dean hit the ground, officers were able to arrest him after a short struggle.
During a search incident to the arrest, officers found multiple bags in Dean’s pockets containing a total of 58 grams of methamphetamine. Officers searched the area around Dean and found a loaded 9 mm Smith and Wesson handgun. Officers also searched the vehicle in which Dean was a passenger and found 219 grams of methamphetamine hidden inside of a laptop case.
In imposing the sentence, Judge Peterson expressed his displeasure that the crime involved a large amount of methamphetamine, a loaded firearm, and resisting arrest. Judge Peterson noted that Dean has a “really horrible” criminal history, including over 20 felony convictions, and was involved in selling a significant amount of methamphetamine to the La Crosse community. Judge Peterson also stated that Dean was participating in criminal activity at a high level and the 10 ½ year sentence was necessary to protect the public.
The charge against Dean was a result of an investigation conducted by the La Crosse Police Department. The prosecution of the case has been handled by Assistant U.S. Attorney Aaron Wegner.
Kevin M. Epstein Appointed as U.S. Trustee for the Southern and Western Districts of TexasRead the Press Release
Attorney General William P. Barr has appointed Kevin M. Epstein as the U.S. Trustee for the Southern and Western Districts of Texas (Region 7) effective Jan. 1, 2021, the Executive Office for U.S. Trustees (EOUST) announced today. He will replace Henry G. Hobbs Jr., who is retiring after 28 years of government service.
Mr. Epstein has been a Trial Attorney with the U.S. Trustee Program for 21 years, first in San Jose, California, and since 2003 in San Antonio, Texas. During his tenure, he also has served as an Acting Assistant U.S. Trustee in charge of three different field offices. Mr. Epstein received his law degree from the University of Texas School of Law and his undergraduate degree from Duke University, both with honors.
“We are pleased to have Mr. Epstein join our leadership team,” said EOUST Director Cliff White. “His depth of legal experience and practical approach to management, along with his strong commitment to mission, will serve Region 7 well. I also want to extend my best wishes and deepest appreciation to Mr. Hobbs for his many significant contributions to the U.S. Trustee Program over the years.”
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 90 field office locations. Region 7 has offices in Austin, Corpus Christi, Houston, and San Antonio, Texas.
Justice Department Settles with Amtrak to Resolve Disability Discrimination Across its Intercity Rail SystemRead the Press Release
The Justice Department today announced that it reached an agreement with Amtrak, the National Railroad Passenger Corporation, to resolve the department’s findings of disability discrimination in violation of the Americans with Disabilities Act (ADA). Under the agreement Amtrak will fix inaccessible stations and pay $2.25 million to victims hurt by its inaccessible stations.
The accompanying complaint filed by the department alleges that Amtrak has violated and continues to violate the ADA by failing to make existing stations in its intercity rail transportation system readily accessible to and usable by individuals with disabilities, including individuals who use wheelchairs. The ADA gave Amtrak 20 years from the law’s 1990 enactment to make its stations accessible, requiring Amtrak to comply by July 26, 2010.
“When Congress enacted the Americans with Disabilities Act in 1990, it recognized the crucial role transportation plays in our lives,” said Eric Dreiband, Assistant Attorney General of the Civil Rights Division. “Transportation is the linchpin of access for people with disabilities to the full economic, social, and cultural benefits of our country. The Americans with Disabilities Act gave Amtrak until 2010 to make its stations accessible for individuals with disabilities. Amtrak failed or refused to comply with the Congressionally-mandated 2010 deadline, and Amtrak’s noncompliance with the Americans with Disabilities Act injured individuals with disabilities. Passengers with disabilities have waited long enough. Today’s agreement is a historic victory for individuals with disabilities, Amtrak, the rule of law, and the promise of equal opportunity for all Americans. We welcome Amtrak’s commitment today to bring its system into compliance with the law so that all individuals have an equal opportunity to barrier-free rail transportation.”
Under the agreement, Amtrak has committed to make its intercity rail stations accessible, prioritizing stations with the most significant barriers to access. Over the next 10 years, Amtrak will design at least 135 stations to be accessible, complete construction at 90 of those stations, and have at least 45 more under construction. Amtrak will also train staff on ADA requirements and implement an agreed-upon process for accepting and handling ADA complaints. As part of this commitment, Amtrak recently established an Office of the Vice President of Stations, Properties & Accessibility to coordinate its compliance with the ADA.
To compensate those harmed by inaccessible stations while trying to travel by train, Amtrak will establish a $2.25 million settlement fund. Individuals with mobility impairments who traveled or desired to travel at 78 specified stations with significant accessibility issues may be compensated from the settlement fund.
This action was brought by the Disability Rights Section of the department’s Civil Rights Division. To read the settlement agreement, please click here, and to read the complaint, please click here.
This year marks the 30th Anniversary of the ADA. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. To learn more about the ADA’s history and impact, please visit the department’s ADA Anniversary webpage.
For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Justice Department Files Lawsuit Against Village of Airmont, New York, for Zoning Restrictions that Target the Orthodox Jewish CommunityRead the Press Release
The Justice Department today announced that it filed a lawsuit against the Village of Airmont, New York, alleging that it violated the Religious Land Use and Institutionalized Persons Act (RLUIPA) by targeting the Orthodox Jewish community through zoning ordinances restricting religious schools and home synagogues, and by enforcing its zoning code in a discriminatory manner to prevent Orthodox Jews from using their property consistent with their faith.
“In this country, states, towns, and villages cannot make or enforce any law that abridges the privileges or immunities of American citizens, nor can they deny to any person within their jurisdiction the equal protection of the laws,” said Eric Dreiband, Assistant Attorney General for the Civil Rights Division. “The Fourteenth Amendment to the U.S. Constitution enshrined these principles in our law, and the Congress extended them when it enacted the Religious Land Use and Institutionalized Persons Act. Zoning ordinances that seek to exclude people and organizations because of their religion violate the law. Furthermore, targeting Orthodox Jewish individuals for the purpose of excluding them from a community is both illegal and a direct assault on this Nation’s fundamental values. This unlawful anti-Semitic conduct is wholly unacceptable in the United States of America, and the U.S. Department of Justice will not tolerate it. The Department of Justice will continue to use the full force of its authority to stop this despicable conduct and prevent its recurrence.”
“As a jury found over two decades ago, the Village of Airmont was born out of a spirit of animus against a religious minority,” said Acting U.S. Attorney for the Southern District of New York Audrey Strauss. “Sadly, rather than working to overcome that shameful legacy, Airmont has flagrantly ignored the terms of a court judgment and implemented land use practices that by design and operation are again meant to infringe unlawfully on the rights of a minority religious community. Religious discrimination will not be tolerated. We will remain vigilant to ensure that the right to worship freely and without undue interference is protected for all.”
The complaint, filed in the Southern District of New York, alleges that the Village adopted a zoning code that, in violation of the terms of a prior federal court judgment, eliminated residential places of worship as by-right uses and applied its code in a manner that made it impossible for members of the Orthodox Jewish community to obtain approval for religious schools and home synagogues. The complaint also alleges that the Village implemented an 18-month moratorium used to prevent the Orthodox Jewish community from advancing religious zoning applications, and interpreted and enforced its zoning code to prevent Orthodox Jews from using their property to construct Sukkahs, ritual huts required under Orthodox Jewish beliefs, and Mikvahs, ritual baths necessary for religious observance.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
In July 2018, the Department of Justice announced the formation of the Religious Liberty Task Force. The Task Force brings together department components to coordinate their work on religious liberty litigation and policy, and to implement the Attorney General’s 2017 Religious Liberty Guidance.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or through the complaint portal on the Place to Worship Initiative website. More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
Judge sentences St. Louis man for carjacking resulting in death of Gus Gus Fun Bus OwnerRead the Press Release
ST. LOUIS, MO – United States District Judge Catherine D. Perry sentenced Curtis Alford to 20 years in prison today. The 22-year-old East St. Louis, Illinois resident pleaded guilty to one count of carjacking resulting in the death of Michael Arnold.
On June 16, 2018, Alford and his accomplice rushed up to two victims putting money in a parking meter. The victims were in St. Louis attending the ‘Taste of St. Louis’ event downtown. Alford sprayed the victims with pepper spray as he tried to grab their truck keys. While Alford struggled with both victims, he grabbed one by the hair and neck, pulling her to the sidewalk. Alford then pulled the keys from her belt loop and got in her truck. One of the victims then attempted to stop Alford as he started the engine. He shoved her out of the way and began to pull away from the curb.
“I definitely have animosity towards the defendant because he tried to either cause me serious harm or possibly even kill me, when all I was doing was standing there. I have never witnessed something like that before, somebody being murdered, even as a draftee during the Korean conflict,” said Harry Frye, Jr, who is one of Alford’s carjacking victims.
Michael Arnold, who witnessed the carjacking, was in the street near the truck and taking a picture of the incident. As Alford pulled away, Arnold tried moving out of the way, but Alford drove over him, pinning Mr. Arnold under the truck. Alford then dragged Mr. Arnold across the street, jumped the curb, hit another victim who had been walking on the sidewalk, struck a fire hydrant and then sped off. Alford picked up his accomplice around the corner and continued to speed away. As a group of pedestrians and two police officers gathered near the corner of Seventh Street and Chestnut, Alford sped in their direction, eventually crashing the truck. The officers and pedestrians had to scatter to avoid being hit. Officers immediately arrested Alford and his accomplice. Mr. Arnold suffered multiple, severe internal injuries and died days later of these injuries.
"The loss of Mike is always with us and that will never change. This day is about what the defendant took from all of us. However, now we may be able to move past the criminal aspects of this terrible event,” said Mike Arnold’s wife, Suzanne Arnold. “More than anything, though, I hope we can remember all the beautiful things Mike was to us. Hopefully he gets the justice he deserves."
Arnold’s daughter Molly Arnold states, “My dad was such a major part of this community and of my family. It's been over two years of trying to get past the responsibilities that came along with his death. When the pandemic required shutting down the courts, I felt like we'd been thrown back into uncertainty and this looming last loose end wouldn't get tied up any time soon. It feels now like we can grieve the way we were meant to grieve.” Molly Arnold continues, “Thinking only of Dad and not worrying about whether we will see justice, if our statements are ready, and what our next steps have to be. I appreciate the love and the support that we've received from so many, and I appreciate that I find myself coming across kind words and happy memories even now. It has helped us to get through the hardest parts of this, and I'm so grateful for that. The fact that people still honor him over two years after his death is a true testament to the kind of person my father was. The love that he sowed reaches farther than I could have expected and it continues to grow through the community. It's a legacy that most dream of."
"Our family has forever been changed for the worst and each person in our family has lost an important person to them since we lost Mike," said Michael Arnold’s mom, Barbara Arnold.
U.S. Attorney Jeff Jensen says, “My heart breaks for the Arnold Family and I greatly appreciate the cooperation of the other victims. This is a senseless tragedy.” Jensen goes on to say, “Curtis Alford deserves every day of his sentence.”
The Federal Bureau of Investigation and St. Louis Metropolitan Police Department investigated this case. Assistant United States Attorney Paul D’Agrosa is handling the case.
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Judge sentences Jefferson County owner of of mushroom grow lab for possessing and intending to distribute methamphetamineRead the Press Release
ST. LOUIS, MO – United States District Judge Stephen N. Limbaugh, Jr. sentenced Shawn Tepen to 90 months in prison today. The 32-year-old Cedar Hill, Missouri resident pleaded guilty to possession of methamphetamine with the intent to distribute.
Tepen was identified, in May 2019, as a suspect who was receiving a large number of suspected narcotics packages at his home on Golden Spring Court in Cedar Hill. Investigators, from the FBI and USPIS, worked with members of the Jefferson County Drug Task Force who advised they also received information Tepen was distributing meth and other narcotics.
On September 3, investigators learned Tepen would be receiving a package containing meth. On September 6, investigators located a package addressed to Tepen’s home with a return address from Los Angeles, California and a fake name listed as the sender. Investigators used a K-9 to sniff the package and the dog indicated a presence of narcotics. Investigators, using a search warrant, searched the package and discovered four pounds and 7.8 ounces of a crystalline substance later determined to be meth.
On September 9, an undercover postal investigator did a controlled delivery of the package to Tepen’s home. Eventually, Tepen left his home, picked up the package and went back into his home. Investigators, using an anticipatory search warrant, searched Tepen’s home and found a firearm with three magazines, 1,983.7 grams of meth and a large mushroom grow lab in the basement.
The FBI, U.S. Postal Inspection Service, and Jefferson County Drug Task Force investigated this case. Assistant United States Attorney Nauman Wadalawala is handling the case.
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Jefferson County Carjacker Receives Nearly a Decade in PrisonRead the Press Release
BEAUMONT, Texas – A 24-year-old Beaumont, Texas man has been sentenced to federal prison for violent crime violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Tremaurice Arthur Randall pleaded guilty on Aug. 4, 2020, to carjacking and brandishing a firearm in furtherance of a crime of violence and was sentenced to 114 months in federal prison today by U.S. District Judge Marcia Crone.
A co-defendant, Thaddiaus Joseph Thomas, 34, of Beaumont, Texas, pleaded guilty to the same charges on Aug. 12, 2020 and is awaiting sentencing.
According to information presented in court, on Dec. 21, 2019, Thomas and Randall traveled to the Excellent Carwash located at 5010 Haden Road in Beaumont, Texas, wearing masks, where they approached a man who was sitting in the driver’s seat of his 2003 Dodge Ram pickup truck. Thomas pointed a pistol at the man and Randall ordered him to “give it up” before the two pulled the man out of his truck and threw him to the ground. Thomas then pistol whipped the man in the head and fired one shot toward his feet. Randall and Thomas then entered the pickup truck and fled. Thomas and Randall were indicted by a federal grand jury on March 4, 2020 and charged with conspiracy to commit carjacking, carjacking, possession of a firearm during a crime of violence, and possession of a firearm by a prohibited person.
This case is 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 un violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney John B. Ross.
Jamestown Man Pleads Guilty to Receiving Naked Pictures of Young Girls on Social MediaRead 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 Shane Guay, 30, of Jamestown, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to receipt of child pornography. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that in November 2016, the defendant solicited minor victims through the Instagram application to produce images of child pornography. On November 6, 2016, the defendant received an image of Victim 1, who was 12 years old at the time. On November 8, 2016, Guay received two images of Victim 2, who was 13 years old at the time.
During the investigation, law enforcement officers recovered 587 images and five videos of child pornography on electronic devices seized from the defendant. Some of the images included prepubescent children, as well as depictions of violence.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the HSI Office of International Affairs in S. Africa; the New York State Police, under the direction of Major James Hall; the Olean Police Department, under the direction of Chief Jeff Rowley; the Harris County, GA Sheriff’s Office, under the direction of Sheriff Mike Jolley; and the Ayer, Massachusetts Police Department, under the direction of Chief William A. Murray.
Sentencing is scheduled for April 1, 2021, at 2:00 p.m. before Judge Sinatra.
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In “Staggering” Conspiracy, Former Police Chief, Prosecutor, and Police Officers Sentenced for Framing an Innocent Man with a CrimeRead the Press Release
Special Attorneys Michael Wheat (619) 546-8437, Joseph Orabona (619) 546-7951, Janaki Chopra (619) 546-8817, and Colin McDonald (619) 546-9144
NEWS RELEASE SUMMARY – December 2, 2020
HONOLULU, Hawaii – Former Honolulu Police Chief Louis Kealoha and his wife, former Honolulu prosecutor Katherine Kealoha, were sentenced in federal court this week to 84 months and 156 months in prison, respectively, for a range of criminal conduct, including framing their relative with a crime to conceal their own fraud. Additionally, the Kealohas’ co-conspirators, former Honolulu police officers Derek Wayne Hahn and Minh-Hung “Bobby” Nguyen, received 42 months and 54 months, respectively, for their involvement in the conspiracy.
Chief U.S. District Judge J. Michael Seabright of the District of Hawaii handed down the sentences, remarking that the conspiracy was “staggering in its breadth, its scope, and its audacity.” He stated further that “the impact on the community is clear: The conduct of the defendants has shaken the community and its trust in the Honolulu Police Department.”
The sentences mark the end of one of the largest public corruption cases in Hawaii history. In June 2019, after six weeks of trial and one day of deliberation, a federal jury in Honolulu convicted the Kealohas, Hahn, and Nguyen of conspiracy and attempted obstruction of justice pertaining to the false arrest and prosecution of Katherine’s uncle, Gerard Puana. The evidence at trial established that the conspirators used their considerable power, including commandeering the Honolulu Police Department’s elite Criminal Intelligence Unit (CIU), to frame Gerard with stealing the Kealohas’ mailbox. Hahn and Nguyen were both members of CIU, which acted directly at the behest of Louis Kealoha. The Kealohas’ motive for framing Gerard was to discredit and intimidate him after he accused Katherine of stealing money from him and his elderly mother—Katherine’s grandmother. The evidence at trial demonstrated that the Kealohas took and spent over $148,000 of the grandmother’s money in just a six-month period, with payments going towards expenses such as mortgage payments, Elton John concert tickets, Mercedes and Maserati car payments, a trip to Disneyland, and a $23,976 brunch tab at the Sheraton Waikiki to celebrate Louis Kealoha’s induction as Honolulu Police Chief in 2009.
Once Gerard started voicing claims of fraud, the Kealohas moved to silence him by falsely accusing him of a felony offense. To frame Gerard, the conspirators prepped the Kealohas’ mailbox to be “stolen,” selectively edited grainy surveillance video to conceal their preparatory acts, falsely identified Gerard as the culprit captured by the video, falsified police reports, withheld and destroyed evidence, and repeatedly lied about their activity to investigators, the federal grand jury, and the District Court for the District of Hawaii. This all occurred while Louis Kealoha was Honolulu’s Police Chief and while Katherine Kealoha was a high-ranking Honolulu prosecutor.
“This was a flagrant and stunning abuse of power that victimized an entire community by undermining public confidence in its leaders and the rule of law,” said U.S. Attorney Robert Brewer. “After years of manipulating the levers of justice to shroud their own crimes, justice has been delivered to these defendants.” Brewer praised FBI agents and Special Attorneys Michael Wheat, Joseph Orabona, Janaki Chopra, and Colin McDonald for achieving justice in this case after many years of tenacious investigation and skillful litigation.
“Our citizens entrust public servants with great powers and authorities. It is our responsibility to serve our community with integrity and authenticity – with truth and justice as our hallmark,” said Special Agent in Charge Eli S. Miranda. “The Kealohas betrayed this trust for their own selfish entitlements, using deception and breaking the same laws they swore to uphold. The FBI will enthusiastically continue to investigate any corrupt public official who willfully and maliciously abuse their office.”
In addition to their custodial sentences, Katherine Kealoha and Louis Kealoha were ordered to pay $454,984.78 and $237,698.56, respectively, in restitution to their victims, and ordered to forfeit property representing proceeds of fraud, including the Kealohas’ former home in Honolulu, a Rolex watch, and $228,746.79. Katherine Kealoha is already in custody; Louis Kealoha, Hahn, and Nguyen were ordered to self-surrender to the Bureau of Prisons on April 12, 2021.
DEFENDANTS
Louis M. Kealoha Age: 60 Honolulu, Hawaii
Katherine P. Kealoha Age: 50 Honolulu, Hawaii
Derek Wayne Hahn Age: 48 Honolulu, HawaiiMinh-Hung “Bobby” Nguyen Age: 46 Kaneohe, Hawaii
SUMMARY OF CONVICTIONS
Louis Kealoha
CR No. 17-00582-JMS-WRP
Conspiracy to Commit Offenses Against the United States – Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison, $250,000 fine
Obstruction of Official Proceeding – Title 18, U.S.C., Section 1512(c) (three counts)
Maximum penalty: Twenty years in prison, $250,000 fine
CR No. 18-00068-JMS-WRP
Bank Fraud, in violation of 18 U.S.C. § 1344
Maximum Penalty: Thirty years in prison, $1 million fine
Katherine Kealoha
CR No. 17-00582-JMS-WRP
Conspiracy to Commit Offenses Against the United States – Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison, $250,000 fine
Obstruction of Official Proceeding – Title 18, U.S.C., Section 1512(c) (three counts)
Maximum penalty: Twenty years in prison, $250,000 fine
CR No. 18-00068-JMS-WRP
Bank Fraud, in violation of 18 U.S.C. § 1344
Maximum Penalty: Thirty years in prison, $1 million fine
Aggravated Identity Theft, in violation of 18 U.S.C. § 1028A
Maximum Penalty: Mandatory term of imprisonment of two years, to be served consecutive to the sentence imposed for any underlying charge; fine of up to $250,000
CR No. 19-00015 JMS-WRP
Misprision of Felony, in violation of 18 U.S.C. § 4
Maximum Penalty: Three years in prison; fine of up to $250,000
Derek Wayne Hahn and Minh-Hung “Bobby” Nguyen
CR No. 17-00582-JMS-WRP
Conspiracy to Commit Offenses Against the United States – Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison, $250,000 fine
Obstruction of Official Proceeding – Title 18, U.S.C., Section 1512(c) (three counts)
Maximum penalty: Twenty years in prison, $250,000 fine
AGENCY
Federal Bureau of Investigation
Honolulu, Portland, and San Diego Divisions