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Thursday 15 October 2020
Project Parkersburg Update: Detroit Man Sentenced to 10 Years for Cocaine and Methamphetamine TraffickingRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that a Detroit man was sentenced to federal prison for his role in a large-scale, multi-state drug trafficking conspiracy. Antoine Eltorio Terry, 43, was sentenced to 10 years in prison, followed by four years of supervised release, for conspiracy to distribute more than 500 grams of cocaine. Terry was prosecuted as part of Project Parkersburg – a major takedown and dismantling of a poly-drug, multi-state drug trafficking organization (DTO).
“10 years in federal prison. Terry is the latest Project Parkersburg defendant to receive a lengthy prison sentence,” said United States Attorney Mike Stuart. “He was arrested in Dayton, Ohio while waiting for a large drug shipment to arrive from Phoenix, Arizona. If not for the coordinated efforts of law enforcement to intercept the shipment, large amounts of cocaine and meth would have been sold on our streets. Project Parkersburg truly bolstered the safety of our communities by shutting down this DTO.”
Terry previously pled guilty and admitted working with co-defendants to obtain a large shipment of controlled substances from Phoenix, Arizona to be delivered to Dayton, Ohio and ultimately distributed in West Virginia and Ohio. Police intercepted that shipment in Dayton on September 19, 2018. The shipment contained approximately 121 pounds of methamphetamine and 13.2 pounds of cocaine. Terry was arrested nearby as he awaited the delivery of the shipment. Terry admitted his role was to obtain and distribute the cocaine while others intended to distribute the methamphetamine.
Stuart commended the investigative efforts of the Federal Bureau of Investigation (FBI), the Parkersburg Police Department, the Dayton (Ohio) Police Department, and the Parkersburg Narcotics and Violent Crime Task Force. The long-term, joint investigation resulted in at least 29 individuals being charged in federal and state court and the seizure of 121 pounds of ICE methamphetamine, six kilograms of cocaine, 217 grams of heroin and 478 grams of fentanyl.
Of the defendants charged in federal court, Terrence McGuirk, Todd Land, Jeffrey Hoyler, Nicholas Easton, T.J. Gibson, Edward Marks, Amy Rake, Marshall Polan, Troy Pastorino, Michael Holley, Colleen Moyle, and Amanda Atkinson have been sentenced. Aurelius Edmonds and Michael Rhodes await sentencing later this year. United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorneys Joshua Hanks and Jeremy Wolfe are handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00036.
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Project Guardian Efforts Result in 14 Federal Grand Jury Indictments this Week in the Western District of TexasRead the Press Release
Over the last seven days, federal grand juries in the Western District of Texas returned indictments charging 15 individuals with various firearms-related offenses under Project Guardian, announced U.S. Attorney Gregg N. Sofer.
In San Antonio, the grand jury returned three Project Guardian indictments charging four defendants. In the first indictment, 39-year-old George Martinez, Jr., of San Antonio, faces up to ten years in federal prison upon conviction for being a convicted felon in possession of a firearm. His criminal history includes a 2007 conviction in Bexar County for Assault Causing Bodily Injury to a Family Member as well as a 2017 felony drug possession conviction. In the second indictment, 71-year-old Juan Higinio Alvarado of San Antonio is alleged to have straw purchased multiple firearms and conspired with 66-year-old Juan Jose Nunez-Rubvalcaba, a citizen of Mexico, to smuggle those firearms into Mexico. Both face up to ten years in federal prison upon conviction. In the third indictment, 25-year old Jimi Ray Guzman is charged with one count of conspiracy to possess methamphetamine with intent to distribute, two counts of possession of methamphetamine with intent to distribute, one count of possession of a firearm during a drug trafficking crime and two counts of being a convicted felon in possession of a firearm. Upon conviction of all charges, Guzman faces between ten years and life in federal prison.
In Del Rio, the grand jury returned two indictments charging defendants with being illegal aliens in possession of a firearm. One indictment alleges that Mario Monreal-DeLeon, a 49–year-old Mexican citizen, possessed five firearms and approximately 175 rounds of ammunition he stole and attempted to smuggle into Mexico near the Eagle Pass area on August 23, 2020. The second indictment alleges that 33-year-old Israel Villa-Morguia, a Mexican citizen, possessed a .45 pistol and ammunition. Border Patrol agents discovered Villa-Morguia hiding in brush near the Uvalde Checkpoint on September 20, 2020. Both defendants face up to ten years in federal prison upon conviction.
In Waco, the federal grand jury returned indictments charging eight defendants with violations of unlawful possession of a firearm by a prohibited person who is either under indictment or a convicted felon. Two of the indictments relate to domestic violence offenses. In the first indictment, 43-year-old Luis Emetrio Gonzalez, of Belton, TX, faces up to ten years in federal prison upon conviction for being a convicted felon in possession of a firearm. Belton police officers responding to a family disturbance call on February 8, 2020, discovered Gonzalez in possession of an AR-15 rifle and a .380 caliber pistol. The criminal history for Gonzalez reveals three prior felony convictions for drug possession and burglary of a building dating back to 2007. In the second indictment, 37-year-old Robert Lewis Stephens, Jr., of Waco, faces up to ten years in federal prison upon conviction of being a convicted felon in possession of a firearm. On May 9, 2020, Waco Police officers responding to a domestic-violence-with-a-gun call, found Stephens in possession a 9mm semi-automatic pistol. The criminal history of Stephens reveals a 2009 conviction in McLennan County for Aggravated Assault with a Deadly Weapon and two felony cocaine possession convictions in McLennan County—one in 2001 and one in 2009.
In Pecos, the federal grand jury returned a one-count indictment charging 48-year-old Bernabe Cota Arce, a citizen of Mexico, with being an illegal alien in possession of two 9mm semi-automatic pistols. According to court records, Arce was attempting to smuggle the firearms into Mexico on September 5, 2020, through the Presidio Port of Entry. Upon conviction, Arce faces up to ten years in federal prison.
These cases are among approximately 350 pending illegal possession of firearms cases in the Western District of Texas.
“Firearms in the hands of dangerous felons, domestic abusers and others who are prohibited from possessing them present a real danger to the law abiding members of our communities. If you are convicted of federal firearms offenses, you can expect to face serious prison time. This Office remains committed to aggressively enforcing federal firearms laws and bringing to justice those who would illegally purchase, traffic, transfer, possess or use these weapons,” stated U.S. Attorney Sofer.
These cases are 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. Click here for more information about Project Guardian.
Assistant U.S. Attorneys William F. Calve, John Cannizzarro, John Cooper, Larry Fadler, Mark Frazier, Priscilla Garcia and Stephanie Smith-Burris are prosecuting these cases on behalf of the government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
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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.
Private Equity CEO Enters into Non-prosecution Agreement on International Tax Fraud Scheme and Agrees to Pay $139 Million, to Abandon $182 Million in Charitable Contribution Deductions, and to Cooperate with Government InvestigationsRead the Press Release
Robert F. Smith, the Chairman and Chief Executive Officer of a San Francisco based private equity company, entered into a Non-Prosecution Agreement (the agreement) with the Department of Justice, for his involvement from 2000 through 2015 in an illegal scheme to conceal income and evade millions in taxes by using an offshore trust structure and offshore bank accounts, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Tax Division, U.S. Attorney David L. Anderson for the Northern District of California, and Chief of Internal Revenue Service (IRS) Criminal Investigation Jim Lee. In that agreement, Smith admits his involvement in the illegal scheme and agrees to cooperate with ongoing investigations and to pay back taxes and penalties in full.
“It is never too late to do the right thing,” said U.S. Attorney Anderson. “It is never too late to tell the truth. Smith committed serious crimes, but he also agreed to cooperate. Smith’s agreement to cooperate has put him on a path away from indictment.”
According to the agreement, Smith, a resident of Austin, Texas, formed the Excelsior Trust in Belize, and a shell company, Flash Holdings, in Nevis in 2000. Smith used third-parties to conceal his beneficial ownership and control of the Excelsior Trust and Flash Holdings. In reality, Smith controlled both offshore structures and made all substantive decisions regarding Flash Holdings’ operations, transactions, income, investments and assets. Smith used the Excelsior Trust to conceal his ultimate ownership and control over Flash Holdings. He further used Flash Holdings to hide his interest in private equity investments. Smith admits that he formed these foreign entities in order to use them to avoid the payment of U.S. taxes.
Furthermore, Smith admits that he knowingly and intentionally used the Excelsior Trust and Flash Holdings and their associated foreign bank accounts in the British Virgin Islands and Switzerland to conceal from the IRS, and the U.S. Treasury Department, income earned and distributed to Flash Holdings from private equity funds. As a result of the overall scheme, Smith willfully did not report to the IRS over $200 million of partnership income. Smith also failed to report his ownership of his foreign bank accounts in BVI and Switzerland as required by law.
Over the years, Smith used millions of this unreported income to acquire and make improvements to real estate used for his personal benefit. Smith admits that, in 2005, he used approximately $2.5 million in untaxed funds to purchase and renovate a vacation home in Sonoma, California. In 2010, Smith again used untaxed funds to purchase two ski properties and a piece of commercial property in France. In 2011 and 2012, Smith used approximately $13 million of untaxed funds to build and make improvement to a residence in Colorado and to fund charitable activities at the property.
Under the terms of the agreement, Smith has agreed to continue cooperating with the Department of Justice in other related investigations. Further, Smith has agreed to pay approximately $56 million in taxes and penalties stemming from the unreported income and another $82 million in penalties stemming from his concealment of his offshore bank accounts. Taken altogether, Smith will pay more than $139 million in taxes and penalties.
Additionally, Smith agrees to abandon his protective claims for a refund totaling approximately $182 million that were filed with the IRS. The protective refund claims consisted, in part, of claims filed with the IRS for charitable contribution deductions on Sept. 21, 2018, and Oct. 11, 2019. As a result of the agreement, Smith shall take no further direct or indirect tax benefit from such claims.
Principal Deputy Assistant Attorney General Zuckerman, U.S. Attorney Anderson, and Jim Lee, Chief of IRS-Criminal Investigation, commended special agents of IRS-Criminal Investigation, who conducted the investigation, and thanked Senior Litigation Counsel Corey Smith of the Tax Division, Assistant U.S. Attorney Michael G. Pitman, and Trial Attorneys Lee Langston and Christopher Magnani of the Tax Division, who handled the case. The Justice Department’s Office of International Affairs of the Department’s Criminal Division also provided extensive assistance in this matter.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Private Equity CEO Enters into Non-Prosecution Agreement on International Tax Fraud Scheme and Agrees to Pay $139 Million, to Abandon $182 Million in Charitable Contribution Deductions, and to Cooperate with Government InvestigationsRead the Press Release
SAN FRANCISCO – Robert F. Smith, the Chairman and Chief Executive Officer of a San Francisco based private equity company, entered into a Non-Prosecution Agreement (the agreement) with the Department of Justice, for his involvement from 2000 through 2015 in an illegal scheme to conceal income and evade millions in taxes by using an offshore trust structure and offshore bank accounts, announced U.S. Attorney David L. Anderson for the Northern District of California, Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Tax Division, and Chief of Internal Revenue Service (IRS) Criminal Investigation Jim Lee. In that agreement, Smith admits his involvement in the illegal scheme and agrees to cooperate with ongoing investigations and to pay back taxes and penalties in full.
“It is never too late to do the right thing,” said U.S. Attorney Anderson. “It is never too late to tell the truth. Smith committed serious crimes, but he also agreed to cooperate. Smith’s agreement to cooperate has put him on a path away from indictment.”
According to the agreement, Smith, a resident of Austin, Texas, formed the Excelsior Trust in Belize, and a shell company, Flash Holdings, in Nevis in 2000. Smith used third-parties to conceal his beneficial ownership and control of the Excelsior Trust and Flash Holdings. In reality, Smith controlled both offshore structures and made all substantive decisions regarding Flash Holdings’ operations, transactions, income, investments and assets. Smith used the Excelsior Trust to conceal his ultimate ownership and control over Flash Holdings. He further used Flash Holdings to hide his interest in private equity investments. Smith admits that he formed these foreign entities in order to use them to avoid the payment of U.S. taxes.
Furthermore, Smith admits that he knowingly and intentionally used the Excelsior Trust and Flash Holdings and their associated foreign bank accounts in the British Virgin Islands and Switzerland to conceal from the IRS, and the U.S. Treasury Department, income earned and distributed to Flash Holdings from private equity funds. As a result of the overall scheme, Smith willfully did not report to the IRS over $200 million of partnership income. Smith also failed to report his ownership of his foreign bank accounts in BVI and Switzerland as required by law.
Over the years, Smith used millions of this unreported income to acquire and make improvements to real estate used for his personal benefit. Smith admits that, in 2005, he used approximately $2.5 million in untaxed funds to purchase and renovate a vacation home in Sonoma, California. In 2010, Smith again used untaxed funds to purchase two ski properties and a piece of commercial property in France. In 2011 and 2012, Smith used approximately $13 million of untaxed funds to build and make improvement to a residence in Colorado and to fund charitable activities at the property.
Under the terms of the agreement, Smith has agreed to continue cooperating with the Department of Justice in other related investigations. Further, Smith has agreed to pay approximately $56 million in taxes and penalties stemming from the unreported income and another $82 million in penalties stemming from his concealment of his offshore bank accounts. Taken altogether, Smith will pay more than $139 million in taxes and penalties.
Additionally, Smith agrees to abandon his protective claims for a refund totaling approximately $182 million that were filed with the IRS. The protective refund claims consisted, in part, of claims filed with the IRS for charitable contribution deductions on Sept. 21, 2018, and Oct. 11, 2019. As a result of the agreement, Smith shall take no further direct or indirect tax benefit from such claims.
U.S. Attorney Anderson; Principal Deputy Assistant Attorney General Zuckerman; and Jim Lee, Chief of IRS-Criminal Investigation, commended special agents of IRS-Criminal Investigation, who conducted the investigation, and the attorneys who handled the case. The case is being handled by Assistant U.S. Attorney Michael G. Pitman, Senior Litigation Counsel Corey Smith of the Tax Division, and Trial Attorneys Lee Langston and Christopher Magnani of the Tax Division. The Justice Department’s Office of International Affairs of the Department’s Criminal Division also provided extensive assistance in this matter.
Priest sentenced to prison for destruction and trespassing on restricted naval installationRead the Press Release
BRUNSWICK, GA: A priest with a long history of arrests during anti-war protests has been sentenced to federal prison for the April 2018 illegal entry and vandalism of Submarine Base Kings Bay.
Stephen Michael Kelly, 71, of Massachusetts, was sentenced by U.S. District Court Judge Lisa Godbey Wood to 33 months in federal prison and ordered to pay $33,503.51 in restitution, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Kelly, along with six other defendants, was found guilty after a four-day jury trial in October 2019 on charges of Conspiracy, Destruction of Property on a Naval Installation, Depredation of Government Property, and Trespass. He was ordered to serve three years of supervised release after completion of his prison sentence.
There is no parole in the federal system.
“Damaging security barriers to enter restricted military areas and commit vandalism is not lawfully protected speech and will be prosecuted in the Southern District of Georgia. The late-night activities of Stephen Kelly and other defendants cannot be construed as peaceful protests. These defendants destroyed government property at a considerable cost to the taxpayers and caused a significant disruption on an important Naval installation,” said U.S. Attorney Christine. “Worse still, their actions created a significant risk of serious injury and even death to themselves and base personnel. The court’s judgment and sentence is entirely appropriate.”
As admitted by the defendants during the trial, with their own videos of the activities shown to jurors, the seven entered an outer security fence at the naval installation in St. Marys, Ga., after cutting a padlock from a gate during the late hours of April 4, 2018. Once through the security fence, the group damaged and vandalized property inside the facility before being taken into custody by naval security personnel.
Kelly has served more than eight years in prison for previous similar trespass and vandalism convictions. At the time of the Kings Bay arrest, Kelly was serving probation for a September 2017 federal sentence for trespassing on Naval Base Kitsap-Bangor in Washington State. He will be remanded to the custody of the U.S. Marshals Service on a warrant for probation violation from the Western District of Washington.
Elizabeth McAlister, 80, of New London, Conn., previously was sentenced to the 17 months, nine days of time already served in the case, and Patrick M. O’Neill, 64, of Garner, N.C., is scheduled for sentencing Friday. The remaining defendants – Mark Peter Colville, 59, of New Haven, Conn.; Clare Therese Grady, 62, of Ithaca, N.Y.; Martha Hennessy, 65, of Perkinsville, Vt.; and Carmen Trotta, 57, of New York, N.Y. – are scheduled for sentencing in November.
The case was prosecuted for the United States by Assistant U.S. Attorneys Karl Knoche, E. Greg Gilluly Jr. and Channell Singh, with assistance from Litigation Technologist Dean Athanasopoulos. Special Agents Thomas Kenney and Barry Clinedinst led the investigation for the Naval Criminal Investigative Service.
Previously convicted Albuquerque man charged with firearms possession under Operation LegendRead the Press Release
ALBUQUERQUE, N.M. – Robert Maestas, 48, of Albuquerque, appeared in federal court on Oct. 7 for a detention hearing. Maestas is charged with being a felon in possession of a firearm and ammunition and will remain in custody pending trial.
According to a criminal complaint, on Sept. 3, after Maestas reportedly shot at the home of his former girlfriend, a search of his residence and vehicle revealed that Maestas allegedly was in possession of a pistol and ammunition. As a previously convicted felon, Maestas cannot legally possess a firearm or ammunition.
If convicted, Maestas faces up to 10 years in prison. An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department investigated this case. Assistant U.S. Attorney Presiliano Torres is prosecuting the case.
Philadelphia Man Sentenced to 30 Years for Sexually Abusing and Recording the Abuse of a Four-Year-Old ChildRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that José Antonio Luna Benscome, 42, of Philadelphia, PA, was sentenced by U.S. District Court Judge C. Darnell Jones to 30 years in prison to be followed by five years of supervised release for child pornography offenses. The defendant’s sentence also requires him to register as a sex offender under Megan’s Law.
In October 2019, Luna Benscome pleaded guilty to charges of manufacturing and possessing child pornography, related to his abuse of a four-year-old child. In July 2018, the mother of the victim observed Luna Benscome holding her child’s hand and acting in a strange manner in the kitchen of her residence in Philadelphia. The mother reviewed her home surveillance system’s video, and found footage that showed Luna Benscome molesting her child on multiple occasions. The mother confronted the defendant about the sexual abuse, and he confessed to her, but then tried to convince her not to report it to the police. The defendant also confessed to Philadelphia Police Department detectives once the crime was reported. Subsequent investigation revealed that, in addition to sexually abusing the child and photographing the abuse, Luna Benscome made the child watch pornography on a number of occasions, took numerous photographs of the child naked, and had the child touch his genitals.
“Sexual exploitation of a minor of any age, let alone a preschooler, is utterly reprehensible and will be met with swift justice,” said U.S. Attorney McSwain. “Because of the quick response of the victim’s mother, the Philadelphia Police Department, and the FBI, we uncovered additional evidence of this defendant’s crimes – ensuring that he will now spend decades behind bars, where he belongs.”
“Luna Benscome subjected a four-year-old child to serial sexual abuse, documenting those depraved acts for his continued gratification,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “He’s a clear danger to children and has earned every minute behind bars to which he’s been sentenced. The FBI and our law enforcement partners are determined to take predators like this off the street, to prevent them from victimizing anyone else.”
This case is part of Project Safe Childhood (PSC), a program bringing together all levels of law enforcement and the communities they serve to reduce the sexual exploitation and abuse of children.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney José Arteaga.
Owner of Charter Bus Company Sentenced for Bribing Federal Safety InspectorRead the Press Release
BOSTON – The owner of a charter bus company operating in Massachusetts was sentenced Tuesday. Oct.13, 2020 for bribing a federal safety investigator in order to influence the safety review of passenger buses.
Le Wen Wu, 51, of Brooklyn, N.Y., was sentenced by U.S. Senior District Court Judge George A. O’Toole Jr. to two years of probation with the first 12 months to be served in home detention. In October 2019, Wu and co-defendant Yat Kuen Chan pleaded guilty to one count of conspiracy to pay an unlawful gratuity and to bribe a public official, one count of unlawful gratuities to a public official and one count of bribery of a public official. Wu and Chan were charged in September 2018. Chan was sentenced on May 26, 2020.
L&W Travel Inc. was a passenger bus charter company purportedly located on Cambridge Street in Boston. Chan acted as the safety manager and Wu was the owner, president, treasurer, secretary, vice president and director of L&W. In January 2018, L&W applied to register as a charter bus company with the Federal Motor Carrier Safety Administration (FMCSA), which establishes and enforces safe operating requirements for motor carriers, including mandatory safety audits within the first year of operation.
On multiple occasions in July and August 2018, during a safety audit of L&W, Chan and Wu gave a total of $2,800 in cash to an FMCSA safety investigator to influence the investigator’s compliance review and safety audit of L&W. For example, on Aug. 1, 2018 Chan gave the investigator $600 so that the investigator would not place an L&W bus immediately out of service based on two significant safety violations – inadequate brakes and a defective emergency exit door – but rather, would allow L&W to fix the brakes in Massachusetts and drive the bus to New Jersey for repair of the door.
United States Attorney Andrew E. Lelling; Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Kristina Barclay of Lelling’s Public Corruption and Special Prosecutions Unit prosecuted the case.
Operation Kick Boxer Results in Arrest of Sauk County Man Seeking to Have Sex with a 14-Year-OldRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that Zachary C. Wood (age: 45) of Merrimac, Wisconsin, was charged via a criminal complaint following his October 12, 2020, arrest by local and federal authorities.
Wood was arrested pursuant to Operation Kick Boxer, a collaborative effort involving the Milwaukee Division of the Federal Bureau of Investigation (FBI), the U.S. Attorney's Office for the Eastern District of Wisconsin, and the Winnebago County Sheriff's Office, https://go.usa.gov/x7qqY.
According to court filings, Wood began exchanging instant messages with an individual whom he believed to be the parent of a 14-year-old girl living in Oshkosh, Wisconsin. Wood expressed repeated interest in engaging in sexual activity with the 14-year-old and children as young as three years-old. Wood also sent pornographic images of children engaged in explicit sexual activity.
In actuality, Wood was communicating with a law enforcement agent working as a part of Operation Kick Boxer. Wood was arrested upon his arrival in the Eastern District of Wisconsin.
Wood faces charges of using a computer to attempt to persuade, induce, or entice a minor to engage in unlawful sexual activity, in violation of Title 18, United States Code, Section 2422(b), and distribution of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2). He faces a mandatory minimum sentence of ten years and up to a lifetime of imprisonment if convicted of those charges.
A criminal complaint is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood, marshals, federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The 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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Ohio Man Sentenced to 12 Years in Federal Prison for Drug and Gun CrimesRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today that an Ohio man was sentenced for drug and gun crimes. Keenan Watson, 24, of Dayton, was sentenced to 12 years -- 144 months -- in federal prison for possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. After completing his prison sentence, he will serve five years of supervised release.
“209 grams of meth. 135 grams of fentanyl. Two guns. Dangerous and deadly combination,” said United States Attorney Mike Stuart. “Watson posed a significant threat to public safety. Meth and fentanyl are leading causes of addiction and overdose deaths, while drug dealers with guns most often lead to violent crime in our communities. Great work by DEA and the Parkersburg Police Department in bringing Watson to justice.”
Watson had previously pled guilty on June 2, 2020, and admitted that on August 27, 2019, law enforcement officers executed a search warrant in Parkersburg, West Virginia. Watson was inside that residence, and ran outside when the officers entered. He ran from the officers until ultimately they were able to catch up and arrest Watson. Officers removed two handguns from Watson and also recovered approximately 209 grams of methamphetamine, and approximately 135 grams of what later proved to be fentanyl from a bag that he was carrying. Watson admitted that he possessed both guns to protect himself, the quantity of methamphetamine and fentanyl that he possessed, and any proceeds from the sales of those drugs.
The Drug Enforcement Administration (DEA) and the Parkersburg Police Department conducted the investigation. United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney L. Alexander Hamner handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00002.
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Officials Announce International Operation Targeting Transnational Criminal Organization QQAAZZ that Provided Money Laundering Services to High-Level CybercriminalsRead the Press Release
Fourteen members of the transnational criminal organization, QQAAZZ, were charged by a federal grand jury in the Western District of Pennsylvania in an indictment unsealed today. A related indictment unsealed in October 2019 charged five members of QQAAZZ. One additional conspirator, a Russian national, was arrested by criminal complaint in late March 2020 while visiting the United States, bringing the total number of charged defendants to 20. Acting Assistant Attorney General Brian C. Rabbitt of the U.S. Department of Justice’s Criminal Division and U.S. Attorney Scott W. Brady for the Western District of Pennsylvania, made the announcement today.
The QQAAZZ members, acting in concert with cybercriminals across the world, are accused of conspiring to launder money stolen from victims of computer fraud in the United States and elsewhere. More than 40 house searches were conducted in Latvia, Bulgaria, the United Kingdom, Spain and Italy, with criminal prosecutions initiated in the United States, Portugal, Spain and the United Kingdom. The largest number of searches and arrests were carried out in Latvia by the Latvian State Police (Latvijas Valsts Policija), and an extensive bitcoin mining operation associated with the group was seized in Bulgaria. Today’s announcement is in coordination with announcements by Europol and several law enforcement agencies across Europe who collaborated with the United States to develop parallel investigations and prosecutions of the QQAAZZ members in their own countries.
“Today’s charges, brought in coordination with our European law enforcement partners, reflect the Criminal Division’s steadfast efforts to work with authorities worldwide to protect the public from fraudsters and the money launderers who help them hide their stolen money,” said Acting Assistant Attorney General Brian C. Rabbitt. “Our message to money laundering organizations like QQAAZZ is simple: international borders will not stop the dedicated efforts of law enforcement across the globe to bring you to justice. In addition to the Criminal Division team, I would like to recognize the outstanding efforts of the team led by U.S. Attorney Scott Brady, FBI Pittsburgh, and our European partners.”
“Cybercrime victimizes individuals and companies all over the world, so our work to identify and disrupt cybercriminals requires global collaboration,” said U.S. Attorney Scott W. Brady for the Western District of Pennsylvania. “For the past several years, law enforcement from 16 countries has been conducting coordinated investigations of this criminal gang, and now parallel prosecutions will commence in the United States, Portugal, United Kingdom and Spain. As this case demonstrates, we will be relentless in our pursuit of cybercriminals regardless of where they reside.”
“This was an extensive investigation that had implications around the world,” said FBI Pittsburgh Special Agent in Charge Michael Christman. “Partnerships are essential, as no one agency can combat cybercrime alone. This case highlights the FBI’s strategy to target and dismantle the most significant cybercriminal enterprises through a global task force approach. I can assure everyone that the FBI and our partners will continue to work tirelessly to combat these cyber threats.”
“Cybercriminals are constantly exploring new possibilities to abuse technology and financial frameworks to victimize millions of users in a moment from anywhere in the world,” said Fernando Ruiz, Head of Europol’s European Cybercrime Centre. “Today’s operation shows how through a proper law enforcement international coordination we can turn the table on these criminals and bring them to justice.”
The indictment alleges that the QQAAZZ network laundered, or attempted to launder, tens of millions of dollars’ worth of stolen funds from victims of cybercrimes since 2016.
Comprised of several layers of members from Latvia, Georgia, Bulgaria, Romania, and Belgium, among other countries, the QQAAZZ network opened and maintained hundreds of corporate and personal bank accounts at financial institutions throughout the world to receive money from cybercriminals who stole it from bank accounts of victims. The funds were then transferred to other QQAAZZ-controlled bank accounts and sometimes converted to cryptocurrency using “tumbling” services designed to hide the original source of the funds. After taking a fee of up to 40 to 50 percent, QQAAZZ returned the balance of the stolen funds to their cybercriminal clientele.
The QQAAZZ members secured these bank accounts by using both legitimate and fraudulent Polish and Bulgarian identification documents to create and register dozens of shell companies which conducted no legitimate business activity. Using these registration documents, the QQAAZZ members then opened corporate bank accounts in the names of the shell companies at numerous financial institutions around the world, thereby generating hundreds of QQAAZZ-controlled bank accounts available to receive stolen funds from cyber thieves.
QQAAZZ advertised its services as a “global, complicit bank drops service” on Russian-speaking online cybercriminal forums where cybercriminals gather to offer or seek specialized skills or services needed to engage in a variety of cybercriminal activities. The criminal gangs behind some of the world’s most harmful malware families (e.g.: Dridex, Trickbot, GozNym, etc.) are among those cybercriminal groups that benefited from the services provided by QQAAZZ.
The 14 defendants named in the indictment unsealed today are:
- Nika Nazarovi, aka “Nika Utiashvili,” aka “Mihail Atansov,” aka “Stefan Trifonov Zhelyazkov,” 32, of Georgia;
- Martins Ignatjevs, aka “Yordan Angelov Stoyanov,” aka “Aleksander Tihomirov,” aka “Svetlin Iliyanov Asenov,” 33, of Latvia;
- Aleksandre Kobiashvili, aka “Antonios Nastas,” aka “Ognyan Krasimirov Trifonov,” 32, of Georgia;
- Dmitrijs Kuzminovs, aka “Parush Gospodinov Genchev,” 35, of Latvia;
- Valentins Sevecs, aka “Marek Jaswilko,” aka “Rafal Szczytko,” 32, of Latvia;
- Dmitrijs Slapins, 35, of Latvia;
- Armens Vecels, 24, of Latvia;
- Artiom Capacli, 31, of Bulgaria;
- Ion Cebanu, 26, of Romania;
- Tomass Trescinkas, 25, of Latvia;
- Ruslans Sarapovs, 19, of Latvia;
- Silvestrs Tamenieks, 21, of Latvia;
- Abdelhak Hamdaoui, 48, of Belgium; and
- Petar Iliev, 37, of Bulgaria.
The five defendants charged in the indictment unsealed in October 2019 are:
- Aleksejs Trofimovics, aka “Aleksejs Trofimovich,” aka “Alexey Trofimovich,” aka “Aleko Stoyanov Angelov,” 24, of Latvia;
- Ruslans Nikitenko, aka “Krzysztof Wojciech Lewko,” aka “Milen Nikolchev Nikolov,” aka “Rafal Zimnoch,” 41, of Latvia;
- Arturs Zaharevics, aka “Piotr Ginelli,” aka “Arkadiusz Szuberski,” 33, of Latvia;
- Deniss Ruseckis, aka “Denis Rusetsky,” aka “Sevdelin Sevdalinov Atanasov,” 24, of Latvia; and
- Deinis Gorenko, 25, of Latvia.
The Russian national charged by criminal complaint and arrested in late March 2020 while visiting the United States is Maksim Boiko, aka “Maxim Boyko” aka “gangass,” 30, of Russia.
The U.S. victims who had funds stolen, or attempted to be stolen, from their online bank accounts (including from banks headquartered in Pittsburgh, Pennsylvania) and destined for QQAAZZ-controlled bank accounts overseas include:
- a technology company in Windsor, Connecticut;
- a Jewish Orthodox Synagogue in Brooklyn, New York;
- a medical device manufacturer in York, Pennsylvania;
- an individual in Montclair, New Jersey;
- an architecture firm in Miami, Florida;
- an individual in Acworth, Georgia;
- an automotive parts manufacturer in Livonia, Michigan;
- a homebuilder in Skokie, Illinois;
- an individual in Carrollton, Texas; and
- an individual in Villa Park, California.
Acting Assistant Attorney General Rabbitt and U.S. Attorney Brady praised the outstanding investigative work of the FBI’s Pittsburgh Field Office and their law enforcement partners from Portugal, Spain, the United Kingdom, Latvia, Bulgaria, Georgia, Italy, Switzerland, Poland, Czech Republic, Australia, Sweden, Austria, Germany and Belgium. Acting Assistant Attorney General Rabbitt and U.S. Attorney Brady also thanked Europol in The Hague, Netherlands for coordinating the investigative efforts of the law enforcement agencies from the 15 participating countries. The Justice Department’s Office of International Affairs of the Department’s Criminal Division provided significant assistance by coordinating requests to foreign countries for searches, arrests, extraditions and evidence sharing. Assistance was also provided by the National Cyber-Forensics and Training Alliance (NCFTA) in Pittsburgh.
The case is being prosecuted by Assistant U.S. Attorney Charles A. “Tod” Eberle, Chief of the National Security and Cybercrime Section for the Western District of Pennsylvania, Assistant U.S. Attorney Brian Czarnecki of the Western District of Pennsylvania, and Trial Attorney Michael Parker of the Money Laundering and Asset Recovery Section of the U.S. Department of Justice’s Criminal Division.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Officials Announce International Operation Targeting Transnational Criminal Organization Qqaazz That Provided Money Laundering Services to High-Level CybercriminalsRead the Press Release
Note: Pre-recorded statements from officials quoted in this news release can be viewed here, an infographic can be viewed here, and copies of the indictments can be obtained by clicking on: US v. Nazarovi, et. al. and US v. Trofimovics, et. al.
U.S. Victims of Various Cybercriminal Malware Schemes throughout the United States Had Stolen Multi-Million Dollar Funds Laundered by QQAAZZ
PITTSBURGH – Fourteen members of the transnational criminal organization, QQAAZZ, were charged by a federal grand jury in the Western District of Pennsylvania in an indictment unsealed today. A related indictment unsealed in October 2019 charged five members of QQAAZZ. One additional conspirator, a Russian national, was arrested by criminal complaint in late March 2020 while visiting the United States, bringing the total number of charged defendants to 20. Acting Assistant Attorney General Brian C. Rabbitt of the U.S. Department of Justice’s Criminal Division and United States Attorney Scott W. Brady for the Western District of Pennsylvania, made the announcement today.
The QQAAZZ members, acting in concert with cybercriminals across the world, are accused of conspiring to launder money stolen from victims of computer fraud in the United States and elsewhere. More than 40 house searches were conducted in Latvia, Bulgaria, the United Kingdom, Spain and Italy, with criminal prosecutions initiated in the United States, Portugal, Spain and the United Kingdom. The largest number of searches and arrests were carried out in Latvia by the Latvian State Police (Latvijas Valsts Policija), and an extensive bitcoin mining operation associated with the group was seized in Bulgaria. Today’s announcement is in coordination with announcements by Europol and several law enforcement agencies across Europe who collaborated with the United States to develop parallel investigations and prosecutions of the QQAAZZ members in their own countries.
"Today’s charges, brought in coordination with our European law enforcement partners, reflect the Criminal Division’s steadfast efforts to work with authorities worldwide to protect the public from fraudsters and the money launderers who help them hide their stolen money," said Acting Assistant Attorney General Brian C. Rabbitt. "Our message to money laundering organizations like QQAAZZ is simple: international borders will not stop the dedicated efforts of law enforcement across the globe to bring you to justice. In addition to the Criminal Division team, I would like to recognize the outstanding efforts of the team led by U.S. Attorney Scott Brady, FBI Pittsburgh, and our European partners."
"Cybercrime victimizes individuals and companies all over the world, so our work to identify and disrupt cybercriminals requires global collaboration," said U.S. Attorney Scott W. Brady for the Western District of Pennsylvania. "For the past several years, law enforcement from 16 countries has been conducting coordinated investigations of this criminal gang, and now parallel prosecutions will commence in the United States, Portugal, United Kingdom and Spain. As this case demonstrates, we will be relentless in our pursuit of cybercriminals regardless of where they reside."
"This was an extensive investigation that had implications around the world," said FBI Pittsburgh Special Agent in Charge Michael Christman. "Partnerships are essential, as no one agency can combat cybercrime alone. This case highlights the FBI’s strategy to target and dismantle the most significant cybercriminal enterprises through a global task force approach. I can assure everyone that the FBI and our partners will continue to work tirelessly to combat these cyber threats."
"Cybercriminals are constantly exploring new possibilities to abuse technology and financial frameworks to victimize millions of users in a moment from anywhere in the world," said Fernando Ruiz, Head of Europol’s European Cybercrime Centre. "Today’s operation shows how through a proper law enforcement international coordination we can turn the table on these criminals and bring them to justice."
The indictment alleges that the QQAAZZ network laundered, or attempted to launder, tens of millions of dollars’ worth of stolen funds from victims of cybercrimes since 2016.
Comprised of several layers of members from Latvia, Georgia, Bulgaria, Romania, and Belgium, among other countries, the QQAAZZ network opened and maintained hundreds of corporate and personal bank accounts at financial institutions throughout the world to receive money from cybercriminals who stole it from bank accounts of victims. The funds were then transferred to other QQAAZZ-controlled bank accounts and sometimes converted to cryptocurrency using "tumbling" services designed to hide the original source of the funds. After taking a fee of up to 40 to 50 percent, QQAAZZ returned the balance of the stolen funds to their cybercriminal clientele.
The QQAAZZ members secured these bank accounts by using both legitimate and fraudulent Polish and Bulgarian identification documents to create and register dozens of shell companies which conducted no legitimate business activity. Using these registration documents, the QQAAZZ members then opened corporate bank accounts in the names of the shell companies at numerous financial institutions around the world, thereby generating hundreds of QQAAZZ-controlled bank accounts available to receive stolen funds from cyber thieves.
QQAAZZ advertised its services as a "global, complicit bank drops service" on Russian-speaking online cybercriminal forums where cybercriminals gather to offer or seek specialized skills or services needed to engage in a variety of cybercriminal activities. The criminal gangs behind some of the world’s most harmful malware families (e.g.: Dridex, Trickbot, GozNym,
etc.) are among those cybercriminal groups that benefited from the services provided by QQAAZZ.
The 14 defendants named in the indictment unsealed today are:
1. Nika Nazarovi, aka "Nika Utiashvili," aka "Mihail Atansov," aka "Stefan Trifonov Zhelyazkov," 32, of Georgia;
2. Martins Ignatjevs, aka "Yordan Angelov Stoyanov," aka "Aleksander Tihomirov," aka "Svetlin Iliyanov Asenov," 33, of Latvia;
3. Aleksandre Kobiashvili, aka "Antonios Nastas," aka "Ognyan Krasimirov Trifonov," 32, of Georgia;
4. Dmitrijs Kuzminovs, aka "Parush Gospodinov Genchev," 35, of Latvia;
5. Valentins Sevecs, aka "Marek Jaswilko," aka "Rafal Szczytko," 32, of Latvia;
6. Dmitrijs Slapins, 35, of Latvia;
7. Armens Vecels, 24, of Latvia;
8. Artiom Capacli, 31, of Bulgaria;
9. Ion Cebanu, 26, of Romania;
10. Tomass Trescinkas, 25, of Latvia;
11. Ruslans Sarapovs, 19, of Latvia;
12. Silvestrs Tamenieks, 21, of Latvia;
13. Abdelhak Hamdaoui, 48, of Belgium; and
14. Petar Iliev, 37, of Bulgaria.
The five defendants charged in the indictment unsealed in October 2019 are:
1. Aleksejs Trofimovics, aka "Aleksejs Trofimovich," aka "Alexey Trofimovich," aka "Aleko Stoyanov Angelov," 24, of Latvia;
2. Ruslans Nikitenko, aka "Krzysztof Wojciech Lewko," aka "Milen Nikolchev Nikolov," aka "Rafal Zimnoch," 41, of Latvia;
3. Arturs Zaharevics, aka "Piotr Ginelli," aka "Arkadiusz Szuberski," 33, of Latvia;
4. Deniss Ruseckis, aka "Denis Rusetsky," aka "Sevdelin Sevdalinov Atanasov," 24, of Latvia; and
5. Deinis Gorenko, 25, of Latvia.
The Russian national charged by criminal complaint and arrested in late March 2020 while visiting the United States is Maksim Boiko, aka "Maxim Boyko" aka "gangass," 30, of Russia.
The U.S. victims who had funds stolen, or attempted to be stolen, from their online bank accounts (including from banks headquartered in Pittsburgh, Pennsylvania) and destined for QQAAZZ-controlled bank accounts overseas include:
• a technology company in Windsor, Connecticut;
• a Jewish Orthodox Synagogue in Brooklyn, New York;
• a medical device manufacturer in York, Pennsylvania;
• an individual in Montclair, New Jersey;
• an architecture firm in Miami, Florida;
• an individual in Acworth, Georgia;
• an automotive parts manufacturer in Livonia, Michigan;
• a homebuilder in Skokie, Illinois;
• an individual in Carrollton, Texas; and
• an individual in Villa Park, California.
Acting Assistant Attorney General Rabbit and U.S. Attorney Brady praised the outstanding investigative work of the FBI’s Pittsburgh Field Office and their law enforcement partners from Portugal, Spain, the United Kingdom, Latvia, Bulgaria, Georgia, Italy, Switzerland, Poland, Czech Republic, Australia, Sweden, Austria, Germany and Belgium. Acting Assistant Attorney General Rabbit and U.S. Attorney Brady also thanked Europol in The Hague, Netherlands for coordinating the investigative efforts of the law enforcement agencies from the 15 participating countries. The Justice Department’s Office of International Affairs of the Department’s Criminal Division provided significant assistance by coordinating requests to foreign countries for searches, arrests, extraditions and evidence sharing. Assistance was also provided by the National Cyber-Forensics and Training Alliance (NCFTA) in Pittsburgh.
The case is being prosecuted by Assistant U.S. Attorney Charles A. "Tod" Eberle, Chief of the National Security and Cybercrime Section for the Western District of Pennsylvania, Assistant U.S. Attorney Brian Czarnecki of the Western District of Pennsylvania, and Trial Attorney Michael Parker of the Money Laundering and Asset Recovery Section of the U.S. Department of Justice’s Criminal Division.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Northern District of Georgia addresses unlawful firearms possession by domestic abusers from all anglesRead the Press Release
ATLANTA – Since 2019, when Attorney General William P. Barr created the Department of Justice’s first ever-Domestic Violence Working Group—galvanizing national efforts to bring federal firearms laws to bear against armed domestic abusers—federal prosecutors in the Northern District of Georgia have taken a multi-faceted approach uniquely tailored to the issues in Georgia.
“Keeping firearms out of the hands of dangerous criminal offenders is one of the Department of Justice’s top priorities,” said Attorney General Barr. “This is especially important when it comes to individuals with prior domestic violence convictions. The statistics are clear that when domestic violence offenders have access to guns, their partners and their families are at much greater risk of falling victim to gun violence. In fact, in some communities across America, roughly half of the homicides are related to domestic violence. The Department of Justice is committed to keeping guns out of the hands of those who are prohibited from having them, and we will continue investigating and prosecuting all domestic violence firearms related crimes.”
“Georgia is one of only a handful of states in which it is not unlawful, under state law, to possess a firearm after a misdemeanor domestic violence conviction,” said U.S. Attorney Byung J. “BJay” Pak. “Similarly, Georgia law does not prohibit firearm possession after the entry of a domestic violence protection order. Federal law, however, makes it a felony to possess a firearm under both circumstances. Federal prosecution of armed offenders with a track record of domestic violence provides an opportunity to prevent additional violence before it occurs.”
“According to the CDC, data suggests that about one in six homicide victims are killed by an intimate partner,” said ATF Acting Director Regina Lombardo. “Nearly half of female homicide victims in the U.S. are killed by a current or former male intimate partner. ATF is committed to aggressively pursuing prohibited possession of firearms due to domestic violence convictions and certain protective orders. It is another way we prevent violent gun crime within our communities.”
The situation in Georgia is particularly grave. Firearms were the cause of death in 73 percent of domestic violence fatalities. Tragically, the problem is not a new one. According to the Georgia Commission on Family Violence, from 2010–2017, at least 758 Georgians died from a firearm in domestic violence-related incidents.
In addition to serving on the national working group and overseeing federal prosecutions in the Northern District of Georgia, U.S. Attorney Pak has endorsed a broad-based effort prioritizing training for local partners and promoting community awareness, which included a virtual community forum on Firearms and Domestic Violence on October 14, 2020.
U.S. Attorney Pak presented the forum moderated by CBS46 anchor Karyn Greer, which included discussions with DeKalb District Attorney Sherry Boston; Janet Paulsen, a survivor of domestic violence; Dr. Lauren Hudak, a doctor of Emergency Room medicine at Grady Memorial Hospital; Sharla Jackson, statewide domestic violence training coordinator for the Prosecuting Attorney’s Council of Georgia; and Brian Johnston, Assistant Special Agent in Charge, Georgia Bureau of Investigation. To listen to the archived forum, please visit our website found at https://www.justice.gov/usao-ndga/project-guardian. Additional information about federal firearms prohibition related to domestic violence is also provided via the above link.
If you or someone you know is being abused, there are community and statewide resources available to you. Call the toll-free, 24-hour hotline for a confidential place to get help and find resources. 1-800-33-HAVEN (1-800-334-2836).
The U.S. Attorney’s Office’s efforts concerning firearms and domestic violence are part of two national Department of Justice programs concerning firearms violations and violent crime: Project Guardian and Project Safe Neighborhood (PSN).
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.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
North Pole Man Charged for Illegal Hunting and Filing Fraudulent Subsistence Permit ApplicationsRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that a North Pole man has been charged in a 32 count Information alleging violations of the Lacey Act and other federal laws stemming from a 16 year span of submitting fraudulent Federal Subsistence Permit Applications and subsequent illegal hunting and transporting of wildlife in a Federal Subsistence Area located south of Delta Junction, Alaska.
According to the charging document, between 2002-2018, Robert John Albaugh, 58, and his wife applied for and received a combined 63 Federal Subsistence Hunt permits for Game Management Unit 13 and took 23 caribou and 1 moose pursuant to those permits by falsely claiming to be rural residents of Delta Junction, AK, in order to take unfair advantage of federal regulations that seek to support the long-standing subsistence traditions of rural Alaska.
In 1980, Congress passed the Alaska National Interest Lands Conservation Act (ANILCA), which protects the subsistence needs of rural Alaskans. Subsistence is defined by federal law as “the customary and traditional uses by rural Alaska residents of wild, renewable resources for direct personal or family consumption as food, shelter, fuel, clothing, tools or transportation; for the making and selling of handicraft articles out of nonedible by-products of fish and wildlife resources taken for personal or family consumption; and for the customary trade, barter or sharing for personal or family consumption.”
The Federal Subsistence Management Program is a multi-agency effort to provide the opportunity for a subsistence way of life by rural Alaskans on Federal public lands and waters while maintaining healthy populations of fish and wildlife. Subsistence fishing and hunting provide a large share of the food consumed in rural Alaska. Nowhere else in the United States is there such a heavy reliance upon wild foods. This dependence on wild resources is cultural, social and economic. Alaska's indigenous inhabitants have relied upon the traditional harvest of wild foods for thousands of years and have passed this way of life, its culture, and values down through generations. Subsistence has also become important to many non-Native Alaskans, particularly in rural Alaska.
Robert Albaugh is currently awaiting his first court appearance on the charges. If convicted, Albaugh faces up to one year in federal prison and a $100,000 fine on each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Bureau of Land Management Office of Law Enforcement and Security conducted the investigation following a separate investigation of the Albaughs by the Alaska Wildlife Troopers for Taking of Wildlife Closed Season. This case is being prosecuted by Assistant U.S. Attorney Ryan D. Tansey for the U.S. Attorney’s Office, District of Alaska.
These charges are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
North Carolina Return Preparer Pleads Guilty in Tax Fraud SchemeRead the Press Release
A Rocky Mount, North Carolina, tax return preparer pleaded guilty today to conspiring to defraud the United States, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Robert J. Higdon, Jr. for the Eastern District of North Carolina.
According to court documents and statements made in court, between 2009 and 2017, Adrienne Williams owned and operated Ultimate Tax Service, a return preparation business, which had an office in Rocky Mount, North Carolina. Williams trained her employees on various ways to prepare false tax returns, including by claiming false federal income tax withholdings. In all, the false returns prepared and filed by Williams and her employees on behalf of clients sought more than $3.5 million in inflated refunds.
Sentencing is scheduled before U.S. District Court Judge Terrence W. Boyle. At sentencing, Williams faces a statutory maximum sentence of five years in prison. She also faces a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Higdon, Jr. commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Michael L. Jones and Assistant U.S. Attorney Susan B. Menzer, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New Orleans Man Sentenced for Being an Armed Career CriminalRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that on October 13, 2020, BRIAN STEPHENS, a/k/a “Toomer,” age 35, of New Orleans, was sentenced for possessing firearms after felony convictions.
According to court documents, STEPHENS an armed career criminal, possessed firearms on three occasions. On July 16, 2017, STEPHENS was stopped in a vehicle in possession of a firearm with an obliterated serial number, and then fled on foot. On October 3, 2018, STEPHENS discarded a stolen firearm during a foot chase with police officers. On December 20, 2018, law enforcement officers executed a search warrant at STEPHENS’s home in Metairie and located two firearms, one of which was stolen.
U. S. District Court Judge Wendy B. Vitter sentenced STEPHENS to serve (15) fifteen years in prison, to be followed by three (3) years of supervised release. Judge Vitter also imposed a $300 special assessment.
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.
U.S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Louisiana State Police, the Federal Bureau of Investigation, the New Orleans Police Department, and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Maria M. Carboni was in charge of the prosecution.
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New Orleans Man Sentenced for Being an Armed Career CriminalRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that on October 13, 2020, BRIAN STEPHENS, a/k/a “Toomer,” age 35, of New Orleans, was sentenced for possessing firearms after felony convictions.
According to court documents, STEPHENS, an armed career criminal, possessed firearms on three occasions. On July 16, 2017, STEPHENS was stopped in a vehicle in possession of a firearm with an obliterated serial number, and then fled on foot. On October 3, 2018, STEPHENS discarded a stolen firearm during a foot chase with police officers. On December 20, 2018, law enforcement officers executed a search warrant at STEPHENS’s home in Metairie and located two firearms, one of which was stolen.
U. S. District Court Judge Wendy B. Vitter sentenced STEPHENS to serve (15) fifteen years in prison, to be followed by three (3) years of supervised release. Judge Vitter also imposed a $300 special assessment.
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.
U.S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Louisiana State Police, the Federal Bureau of Investigation, the New Orleans Police Department, and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Maria M. Carboni was in charge of the prosecution.
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New Haven Man Charged with Gun and Drug OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford has returned a three-count indictment charging WILLIE JACKSON, 25, of New Haven, with firearm possession and narcotics distribution offenses.
The indictment was returned on September 29, 2020. Jackson appeared today via videoconference before U.S. Magistrate Judge Robert A. Richardson and entered a plea of not guilty to the charges. Jackson has been detained since his arrest on related state charges on March 27, 2020.
This prosecution is part of a coordinated federal, state and local law enforcement effort to address rising gun violence in New Haven. Participating in this effort are the New Haven Police Department; the FBI’s New Haven Safe Streets/Gang Task Force; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the New Haven State’s Attorney’s Office, and the U.S. Attorney’s Office.
The indictment alleges that, on February 26, 2020, Jackson possessed and distributed a quantity of crack cocaine and, on March 27, 2020, possessed a loaded Ruger SR40 .40 caliber handgun and a quantity of heroin that he intended to distribute.
It is alleged that Jackson’s criminal history includes state felony convictions for assault, robbery and firearm offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The indictment charges Jackson with one count of possession of a firearm by a convicted felon, which carries a maximum term of imprisonment of 10 years; one count of possession with intent to distribute, and distribution of, cocaine base (“crack”), which carries a maximum term of imprisonment of 20 years; and one count of possession with intent to distribute heroin, which carries a maximum term of imprisonment of 20 years.
If convicted, Jackson faces a maximum term of imprisonment of 10 years on the firearm charge, and a maximum term of imprisonment of 20 years of each of the controlled substances charges.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Brendan Keefe.
U.S. Attorney Durham noted that this prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN) program and Project Longevity. PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
Narcotics Dealer Responsible for Overdose Death Pleads Guilty to Offenses Related to the Distribution of Fentanyl Analogues and Synthetic Opioids on the Darknet and to Making False StatementsRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Phillip R. Bartlett, the Inspector in Charge of the New York Division of the United States Postal Inspection Service (“USPIS”), and Peter C. Fitzhugh, the Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced that CHUKWUEMEKA OKPARAEKE, a/k/a “Emeka,” pled guilty to distributing U-47700, a controlled substance analogue of AH-7921; importing 100 grams and more of acryl fentanyl, a controlled substance analogue of fentanyl, from Hong Kong; and making false statements to prosecutors and investigators regarding the proceeds of his offenses. OKPARAEKE pled guilty today in White Plains federal court before U.S. Magistrate Judge Paul E. Davison. The case is assigned to U.S. District Judge Nelson S. Román.
Through his guilty plea, OKPARAEKE admitted that in November 2016, he sold U-47700 to an individual (the “Victim”), who died from an overdose after using the drug. OKPARAEKE further admitted that his narcotics offenses involved 9.044 kilograms of acryl fentanyl, 6.957 kilograms of U-47700, 1.159 kilograms of furanyl fentanyl, an analogue of fentanyl, and 12 grams of 4-ANPP. As part of his guilty plea, OKPARAEKE agreed to forfeit 680.60963624 bitcoins – approximately $7,298,000 – in proceeds generated by his illicit narcotics sales.
Acting U.S. Attorney Audrey Strauss said: “As he admitted today, Chukwuemeka Okparaeke peddled highly addictive, and in one case lethal, opioids over the darknet. He also lied to agents and prosecutors about the whereabouts of more than $7 million in bitcoin proceeds from his illegal sales. Now Okparaeke will forfeit those illicit proceeds, and he awaits sentencing for his crimes.”
Postal Inspector in Charge Phillip R. Bartlett said: “This case represents the tragic impact of fentanyl and other illicit narcotics in this country. Mr. Okparaeke used the anonymity of the darknet to peddle his narcotics believing he would be shielded from arrest and prosecution. Postal Inspectors want to remind criminals there is no place you can hide when you use the U.S. Mail to facilitate your illegal activity. We will spare no resource to find you, arrest you, and bring you to justice for your illegal deeds.”
HSI Special Agent-in-Charge Peter C. Fitzhugh said: “This investigation identified Okparaeke as a darknet marketplace vendor responsible for the sale of highly addictive and deadly narcotics which resulted in a fatal overdose. The anonymity most seek by using the darknet did not shield Okparaeke, who is now facing the consequences of his actions. One overdose, one life taken, is one too many. To those who try to hide on the darknet while profiting off ruined lives, you will be found, you will be arrested, and you will be prosecuted.”
According to the allegations in the Superseding Information, Complaint, other court filings, and statements made during public court proceedings:
From at least July 2016 through March 2017, OKPARAEKE imported kilogram-quantities of fentanyl analogues, including acryl fentanyl and furanyl fentanyl, and other synthetic opioids, including U-47700, from Hong Kong and China into the United States. To transact with customers and coordinate his narcotics sales, OKPARAEKE used a darknet website known as AlphaBay Market (“AlphaBay”), accessible only through a special software program that allows users to mask their identities and anonymize their internet traffic. Under the AlphaBay vendor name “Fentmaster,” OKPARAEKE engaged in more than 7,000 sales of synthetic opioids, which he shipped to customers throughout the United States using the U.S. Postal Service. OKPARAEKE paid a commission on each of his narcotics sales to the administrators of AlphaBay. In total, OKPARAEKE’s narcotics trafficking generated more than $7 million in illicit proceeds.
In November 2016, OKPARAEKE sold three grams of U-47700 to the Victim, an 18-year-old living in Vancouver, Washington, in an AlphaBay transaction. The Victim used the drugs purchased from OKPARAEKE and died in a U-47700 overdose on November 10, 2016. Prior to his death, the Victim researched Fentmaster online. On November 6, 2016, the Victim sent a friend a text message saying that he had purchased drugs from Fentmaster. The Victim subsequently left a review on OKPARAEKE’s AlphaBay vendor page confirming that he had received the drugs.
OKPARAEKE – who attended medical school before he began selling synthetic opioids on AlphaBay – used extensive measures to conceal his identity, including software to encrypt his internet traffic and communications sent from his cellphone. Using alter egos, he boasted online about his exploits as a darknet drug trafficker, offered advice to other drug dealers, and published a short story describing his criminal activities and his strategies for evading law enforcement. In January 2017, Customs and Border Protection (“CBP”), in conjunction with HSI and USPIS, intercepted several packages containing kilogram quantities of fentanyl analogues that OKPARAEKE had imported from Hong Kong. Subsequently, in March 2017, law enforcement searched a drug premises OKPARAEKE maintained in Kearny, New Jersey. During the search, law enforcement seized more than 10 kilograms of U-47700, acryl fentanyl, and furanyl fentanyl, as well as a quantity of 4-ANPP and approximately 82 mailing envelopes containing smaller amounts of those substances that OKPARAEKE had packaged for distribution to his customers.
On September 15, 2020, OKPARAEKE met with representatives of the U.S. Attorney’s Office for the Southern District of New York and USPIS. During that meeting, OKPARAEKE falsely represented that approximately 680 bitcoins – more than $7 million – generated by his narcotics sales on AlphaBay were not in his possession and control. In addition, OKPARAEKE falsely claimed that a third party had stolen the bitcoin from him through hacking and other unauthorized access to OKPARAEKE’s electronic accounts. OKPARAEKE subsequently surrendered the 680 bitcoins to USPIS and agreed to forfeit those proceeds as part of his plea agreement.
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OKPARAEKE, 31, of Middletown, New York, pled guilty to one count of distributing U-47700, a controlled substance analogue of AH-7921, which carries a maximum sentence of 20 years in prison; one count of importing 100 grams and more of acryl fentanyl, a controlled substance analogue of fentanyl, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life imprisonment; and one count of making false statements in a matter within the executive branch of the Government of the United States, which carries a maximum sentence of five 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 defendant will be determined by the judge.
OKPARAEKE is scheduled to be sentenced by Judge Román on December 17, 2020, at 10:30 a.m.
Ms. Strauss praised the outstanding efforts of USPIS, HSI, CBP, the Federal Bureau of Investigation, the Fairfax County, Virginia, Police Department, the Virginia Office of the Attorney General, the Middletown Police Department, and the Vancouver, Washington, Police Department for their investigative work and ongoing support and assistance with the case.
The case is being prosecuted by the Office’s White Plains Division. Assistant United States Attorneys Gillian Grossman, Olga Zverovich, and Sagar Ravi are in charge of the prosecution.
Muskogee Man Sentenced to 33 Months for Failure to Register as Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Yarnell Qudellious Payne, age 36, of Muskogee, Oklahoma was sentenced to 33 months’ imprisonment, and 5 years of supervised release for Failure To Register As Sex Offender, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3). After he is released from prison, Payne is also required to comply with drug testing and treatment, sex offender treatment including polygraphs to monitor compliance, sex offender registration, and he is prohibited from living with or having unsupervised contact with children without prior approval from his Probation Officer. The charges arose from an investigation by the he United States Marshals Service.
The Indictment alleged that from on or about November 2018, the exact date being unknown to the Grand Jury, until on or about January 29, 2019, in the Eastern District of Oklahoma, and elsewhere, the defendant, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received felony convictions from the State of Nebraska, in Lancaster County, on or about January 4, 2017, for Sexual Assault of a Child, Third Degree, traveled in interstate and foreign commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
United States Attorney Brian J. Kuester said, “Federal sex offender registration statutes protect the public by requiring sex offenders to properly notify the appropriate law enforcement agencies where they are residing. The United States Marshals Service and its local law enforcement partners play a vital role in public safety by enforcing these laws.”
“As part of our efforts to keep our communities safe, it is with great pride that the United States Marshals Service works alongside state, local and tribal law enforcement to ensure that convicted sex offenders comply with the requirements of the Sex Offender Registration and Notification Act” said, United States Marshal Kerry Pettingill.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Sarah McAmis represented the United States.
Morris Man Pleads Guilty to Involuntary Manslaughter in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Matthew West Nix, age 33, of Morris, Oklahoma entered a guilty plea to Involuntary Manslaughter In Indian Country, in violation of Title 18, United States Code, Sections 1112, 1151 and 1153, punishable by not more than 8 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about November 20, 2018, within the Eastern District of Oklahoma, in Indian Country, the defendant, Matthew West Nix, an Indian, did unlawfully kill Darla Nanette Maxwell while in the commission of an unlawful act not amounting to a felony, that is operating a motor vehicle under the influence of one or more intoxicating substances, contrary to 47 O.S. § 11-902, without due caution and circumspection and with a wanton and reckless disregard for human life, and knew and should have known that his conduct imperiled the lives of others.
The charges arose from an investigation by the Federal Bureau of Investigation.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Ben Gifford represented the United States.
Michigan Man Pleads Guilty to Conspiring to Defraud the IRS and to Steal Crash Reports from the Detroit Police DepartmentRead the Press Release
A Birmingham, Michigan, resident pleaded guilty today to conspiring to defraud the IRS and to steal from an organization receiving federal funds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to court documents, from at least July 2014 through April 2018, Mathew Schwartz, the owner and operator of the law firm Legal Genius P.L.L.C., along with co-conspirators, took and distributed to other co-conspirators Detroit Police Department traffic crash reports, many of which were marked “unapproved” and not publicly available. The co-conspirators then used their access to these illegally obtained reports to solicit crash victims for personal injury lawyers, chiropractors, healthcare professionals, and other businesses.
Court documents also show from 2015 through 2017, Schwartz took steps to obstruct and impede the IRS. He diverted Legal Genius business income into his personal bank account, and paid individuals performing services for Legal Genius with checks made payable to “cash,” to assist those individuals with concealing their taxable income from the IRS and the Social Security Administration.
U.S. District Court Judge Matthew F. Leitman scheduled sentencing for Schwartz for Feb. 18, 2021. Schwartz faces a maximum of five years in prison on each count and a $250,000 fine for each of the conspiracy offenses. Schwartz also faces a period of supervised release, restitution, and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS-Criminal Investigation and the FBI, who conducted the investigation, and Tax Division Trial Attorney Mark McDonald of the Tax Division, who is prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Magnolia man gets life for exploiting young female he met and communicated with via Roblox and FacebookRead the Press Release
HOUSTON – A 47-year-old Magnolia resident has been sentenced to the maximum sentences allowed by federal law following his conviction of coercion and enticement as well as production and possession of child pornography, announced U.S. Attorney Ryan K. Patrick.
George Daniel McGavitt pleaded guilty March 11.
Today, District Judge Gray Miller sentenced him to serve life for the coercion and enticement. He also received 360 and 120 months for the production and possession charges, respectively. He will also be ordered to register as a sex offender. Restitution will be determined at a later date.
“All over the country we are seeing an increase of online child exploitation and targeting,” said Patrick. “Our kids have been on their devices a lot since March - both for school and for fun - and predators are out there. Parents must have access to their kid’s devices, know their online communities and talk with them about internet boundaries.”
At the hearing today, Judge Miller considered the statements of the victim and her father. They described how McGavitt’s actions scarred their family for life, changed how they viewed the world and stole their sense of security. The victim explained how she was attending school online and using Roblox to play games. McGavitt, portraying himself as 16 years of age, approached her through that application and had her switch over to Facebook. “Within three months, the free, bubbly, carefree girl that I knew myself to be became isolated, depressed, and suicidal,” she said.
She said McGavitt had stolen so much from her - the experience of her first kiss, her virginity and her feeling of safety anywhere.
The investigation into McGavitt began May 26, 2019. The barely-teenage victim had advised her parents she had been involved in an online relationship with an adult male known as “Daniel McGavitt,” who she believed resided in Texas. The pair had been communicating via Facebook. On several occasions, McGavitt had requested she send him nude photographs or videos of herself engaging in sex acts. The victim also detailed an occasion in April 2019 when McGavitt traveled to Arkansas and engaged in sexual intercourse with her multiple times.
Authorities investigated three different Facebook accounts, including those of the victim and the profiles McGavitt utilized. That investigation revealed voluminous communications between them. Law enforcement observed at least three images depicting the victim engaging in sexually explicit conduct. These were just a few of the 71 images and 13 videos McGavitt caused the victim to create and send to him during his nine-month manipulation of her.
A search warrant of his phone also revealed several chat conversations between the victim and McGavitt during which he controlled her and caused her to produce child pornography images. Further, he acknowledged her young age, discussing her birthday, getting married and impregnating her.
Authorities were also able to place McGavitt less than a mile from the victim’s residence.
McGavitt has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI in Houston conducted the investigation with the assistance of Washington County, Arkansas, Sheriff’s Office and FBI - Little Rock.
Assistant U.S. Attorney Sherri L. Zack prosecuted the case, which was brought as part of Project Safe Childhood(PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
MS-13 Member Sentenced to 30 Years in Federal Prison for Violent Racketeering Crimes, Including Two MurdersRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar today sentenced MS-13 gang member Albaro Rosa Moreno, a/k/a Slow, age 24, of Silver Spring, Maryland, to 30 years in federal prison, followed by five years of supervised release for conspiracy to participate in a racketeering enterprise, in connection with his gang activities, including two murders.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore Office; Acting Chief Patrick Grossman of the Frederick City Police Department; Frederick County State’s Attorney J. Charles Smith, III; Chief William Lowry of the Anne Arundel County Police Department; Anne Arundel County State’s Attorney Anne Colt Leitess; Interim Chief Hector Velez of the Prince George’s County Police Department; Prince George’s County State’s Attorney Aisha N. Braveboy; Chief Marcus Jones of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
“The violence perpetrated by MS-13 members in our communities is totally unacceptable—especially the extreme and barbaric violence such a beheading and dismemberment that is a calling card of the MS-13 gang. The U.S. Attorney’s Office in Maryland and our local and state partners are committed to keeping our communities safe from the violent threat of MS-13,” said U.S. Attorney Robert K. Hur. “We continue to work with our counterparts here and abroad to prevent gang violence and bring to justice those who bring danger to our streets. We need the continued help of members of our communities in order to carry on our work against MS-13.”
“Albaro Rosa Moreno thought he could steal lives and escape unscathed. Today’s sentencing should send a message to MS-13 members and their associates that medieval-style violence and senseless murder will not be tolerated,” said Jennifer C. Boone, Special Agent in Charge of the FBI Baltimore Field Office “The FBI and our partners will aggressively pursue gangs wherever they surface and we are steadfast in our commitment to making Maryland a safe place for the people who call it home.”
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Frederick County, Anne Arundel County, Prince George’s County, and Montgomery County, Maryland. Rosa Moreno admitted that from at least January 2017, he was a member and associate of the Parkview Locos Salvatrucha (PVLS) clique of MS-13.
At all times of this conspiracy, members of MS-13 were expected to protect the name, reputation, and status of the gang from rival gang members and other persons. To protect the gang and to enhance its reputation, MS-13 members were expected to use any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence. MS-13 had mottos consistent with its rules, beliefs, expectations and reputation including “mata, viola, controla,” which translates as, “kill, rape, control,” and “ver, oir y callar,” which means, “see nothing, hear nothing and say nothing.”
MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang, as well as against rival gang members. Participation in criminal activity by a member, particularly in violent acts directed at rival gangs or as directed by gang leadership, increase the respect accorded to that member, resulting in that member maintaining or increasing his position in the gang, and opens the door to a promotion to a leadership position. One of the principal rules of MS-13 is that its members must attack and kill rivals, often referred to as “chavalas,” whenever possible.
According to his plea agreement, in March 2017, Rosa Moreno participated in the murder of Victim 13. MS-13 gang members had decided that Victim 13 had betrayed the gang because he was in a relation with a female who they believed to be associated with the 18th Street Gang, a rival of MS-13. Under the ruse that they were going to a party, on March 31, 2017, MS-13 gang members brought Victim 13 to Wheaton Regional Park in Wheaton, Maryland. Other gang members had dug a grave and gathered weapons at that location. When Victim 13 arrived, Rosa Moreno and other MS-13 gang members attacked him with a machete and knives until he was dead. Victim 13’s body was then beheaded, dismembered, and buried in the grave.
In September 2017, investigators recovered Victim 13’s body from a clandestine grave in Wheaton, Maryland. The medical examiner found that the cause of death was homicide. The body had suffered numerous blunt and sharp force traumas, the victim’s head had been severed, and his heart had been removed.
As detailed in his plea agreement, April 2017, Rosa Moreno assisted with the murder of Victim 14, whom Rosa Moreno and his fellow gang members believed was a member of a rival gang. Gang members found Victim 14 in Silver Spring, Maryland. After they confirmed that he was a member of a rival gang – based on a review of his phone and tattoos – they arranged with other gang members to identify a place in Frederick, Maryland where the victim could be killed. The MS-13 gang members then contacted other gang members (from the Fulton, PVLS, and other cliques) to arrange to transport Victim 14 to Frederick. Rosa Moreno and other gang members also traveled from Silver Spring to Frederick. MS-13 gang members brought Victim 14 to the Frederick City Watershed off Gambrill Park Road in Frederick, Maryland, where they had dug a grave and gathered weapons. When Victim 14 arrived, gang members hit him with a tree branch and other gang members attacked him with a machete and knives until he was dead. Victim 14’s body was then dismembered and buried in the grave. Although Rosa Moreno assisted with the murder of Victim 14, he was not permitted to directly participate because he had actively participated in the murder of Victim 13 just a few days before. In June 2017, the remains of Victim 14 were found in the shallow grave where he had been buried.
The murders of Victim 13 and Victim 14 were intended to maintain and increase the status of MS-13 and allow Rosa Moreno and other MS-13 members to maintain or increase their status within the gang.
A total of 30 defendants have been charged in this case with participating in a racketeering conspiracy and/or other crimes related to their association with MS-13. A total of 19 defendants, including Rosa Moreno, have pleaded guilty to crimes related to their participation in MS-13 gang activities.
Anyone with information about MS-13 is encouraged to provide their tips to law enforcement. The FBI and Homeland Security Investigations both have nationwide tiplines that you can call to report what you know. You can reach the FBI at 1-866-STP-MS13 (1-866-787-6713), or you can call HSI at 1-866-DHS-2-ICE.
United States Attorney Robert K. Hur commended the FBI; HSI; the Frederick City Police Department; the Anne Arundel, Montgomery, and Prince George’s County Police Departments; and the Anne Arundel, Frederick, Montgomery, and Prince George’s County State’s Attorneys for their work in the investigation, and recognized the Baltimore County Police Department for its assistance. Mr. Hur thanked Assistant U.S. Attorneys Kenneth S. Clark, Catherine K. Dick, and Matthew DellaBetta, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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MS-13 Gang Member Sentenced to 3 Years in Prison for Drug Dealing ConspiracyRead the Press Release
FRESNO, Calif. — Oscar Reyes, 31, of Mendota, was sentenced by U.S. District Judge Dale A. Drozd to three years in prison for conspiracy to distribute and possess with intent to distribute controlled substances, U.S. Attorney McGregor W. Scott announced.
According to court documents, Reyes was a member of La Mara Salvatrucha (MS-13), a violent criminal street gang that engages in racketeering activity, including murder, kidnapping, extortion, and drug trafficking. Reyes pleaded guilty to conspiring to distribute controlled substances on behalf of the MS-13 gang, the proceeds of which were the lifeblood of an extremely violent gang.
On Aug. 31, 2018, U.S. Attorney Scott announced the results of a multi-agency operation in Mendota where 25 individuals associated with MS-13 were arrested in California on federal and state charges. The investigation began after reports that MS-13 had established a presence in Fresno County. The investigation centered in and around the City of Mendota, a Central Valley town 35 miles west of Fresno. Investigators found evidence of broad criminal activity, including murder, assault, firearms possession and drug trafficking activity.
Of the federal defendants charged in this case, four have previously been sentenced, four others have pleaded guilty and are awaiting sentencing. The remaining eight co-defendants are scheduled for trial on Feb. 2, 2021. These remaining defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
The investigation was conducted by the California Department of Justice and California Highway Patrol Special Operations Unit, the Multi-Agency Gang Enforcement Consortium (MAGEC), the Federal Bureau of Investigation, Homeland Security Investigations (HSI), the Fresno County District Attorney’s Office, the Fresno County Sheriff’s Office, and the California Department of Corrections and Rehabilitation Special Services Unit (SSU). The CHP Special Operations Unit is a collaborative investigative effort between the California Department of Justice and California Highway Patrol that provides statewide enforcement to combat violent career criminals, gangs, and organized crime groups, along with intrastate drug traffickers. Assistant U.S. Attorneys Ross Pearson, Kathleen Servatius and Kimberly Sanchez are prosecuting this and related cases.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF is the largest anticrime task force in the country, and its mission is to disrupt and dismantle the most significant drug trafficking and transnational criminal organizations that threaten the United States. The prosecutor-led, intelligence-driven, multi‑agency task forces leverage the authorities and expertise of federal, state, and local law enforcement.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
MEDIA ADVISORY: United States Attorney Robert Duncan Jr. holds Press Conference to Discuss Violent Crime and Firearm ProsecutionsRead the Press Release
LEXINGTON, Ky. – United States Attorney Robert M. Duncan Jr., will be joined by federal, state, and local partners to discuss violent crime efforts and prosecutions of firearm-related charges in FY2020.
Who: Robert M. Duncan Jr., United States Attorney for the Eastern District of Kentucky
Shawn Morrow, Special Agent in Charge, Alcohol, Tobacco, and Firearms
Chief Lawrence Weathers, Lexington Police Department
Sheriff Kathy Witt, Fayette County Sheriff’s Department
Where: U.S. Attorney's Office
Eastern District of Kentucky
260 W. Vine Street, Suite 300
Lexington, Kentucky, 40507
When: Friday, Oct. 16, 2020 at 10 a.m
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Loris Man Sentenced to Five Years in Federal Prison for Possessing a Firearm in Furtherance of Drug TraffickingRead the Press Release
Florence, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Nakeem Supreme Jenerette, 20, of Loris, was sentenced to five years in federal prison after pleading guilty to possessing a firearm in furtherance of a drug trafficking crime.
Evidence presented to the court showed that on September 25, 2019, officers from the Horry County Police Department responded to a call for service in reference to shots fired in Loris. When officers arrived, they saw a car leaving at a high rate of speed. Officers attempted to initiate an investigative traffic stop of the car, but the car would not stop. Instead, the car led officers on a high-speed chase, disregarding several stop signs. The car chase ended in Longs, where both the driver and passenger exited the car while it was still moving and ran on foot. Both the driver and passenger were taken into custody a short time later.
An officer located the passenger, Nakeem Jenerette, in the woods laying on the ground next to an American tactical .223 caliber firearm with a loaded 30-round magazine clip. The firearm was wrapped in a T-shirt, which contained 10 expended .223 rounds. A search of Jenerette revealed a clear plastic Ziploc bag containing multiple bags of what was later confirmed by laboratory analysis to be cocaine and cocaine base (commonly known as “crack” cocaine).
United States District Judge Donald C. Coggins, Jr. sentenced Jenerette to 60 months in federal prison, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Horry County Police Department.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant United States Attorney Lauren Hummel of the Florence office prosecuted the case.
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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.
Long Island Felon Sentenced to 35 Years’ Imprisonment for Armed Robbery, Shooting and Obstruction of JusticeRead the Press Release
Earlier today, in federal court in Central Islip, Spencer Jean was sentenced by United States District Judge Joanna Seybert to 35 years’ imprisonment for Hobbs Act robbery of a marijuana trafficker, discharging a firearm during a crime of violence and obstruction of justice. Jean was found guilty following a jury trial in July 2019.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, announced the sentence.
On March 20, 2018 in Middle Island, Jean robbed $1,500 worth of marijuana from a drug dealer he had met at a halfway house following his 2008 conviction for committing a series of nine armed robberies in Nassau and Suffolk Counties for which he received a sentence of 10 years’ imprisonment. During the robbery, Jean shot the victim in the leg at close range with a 9mm Glock handgun loaded with hollow-point bullets. The victim was placed on life support due to loss of blood and hospitalized for one month, but survived his injuries. After his arrest, Jean directed a former girlfriend to provide an alibi for him by lying to law enforcement and falsely testifying at trial that he was at a nursing home in Medford at the time of the shooting.
“The defendant demonstrated disregard for the life of his victim and no respect for the rule of law, even after having served a lengthy prison sentence,” stated Acting U.S. Attorney DuCharme. “It is thus appropriate and just that he now will be incapacitated in prison for more than three decades.” Mr. DuCharme expressed his grateful appreciation to the Federal Bureau of Investigation, New York Field Office, for the investigative work on the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorneys’ 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.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Anthony Bagnuola and Allen L. Bode are in charge of the prosecution.
The Defendant:
SPENCER JEAN (also known as “Cash”)
Age: 34
Westbury, New YorkE.D.N.Y. Docket No. 19-CR-123 (JS)
Local Pain Doctor Going to Prison for 70 Months for Conspiring to Distribute Controlled Substances and Health Care FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Dr. Eugene Gosy, 60, of Clarence, NY, who was convicted of conspiracy to distribute controlled substances and healthcare fraud, was sentenced to serve 70 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
“The Hippocratic Oath requires physicians to do no harm,” noted U.S. Attorney Kennedy, “and the defendant’s crimes in this case—prescribing drugs outside the reasonable practice of medicine and without a legitimate medical purpose and healthcare fraud—clearly did harm to certain of his patients and to our healthcare system. But this prosecution—and the public debate it sparked—also brought with it an unintended benefit in helping to diagnose and identify some of the underlying conditions and factors which may have contributed not only to defendant’s crimes but to the larger opioid crisis generally. From a healthcare system, which, in 2001, decided to treat pain as a 5th vital sign, thereby incentivizing a surge in opioid prescriptions; to a pharmaceutical industry, which developed and aggressively marketed powerful opioids, all the while minimizing their risks and exaggerating their benefits; to an educational system, which failed appropriately to educate and train healthcare professionals regarding all of the dangers or these powerful drugs and how to deal with patients suffering from addiction; to a medical community, which was too willing to refer its most difficult cases and problematic patients to a single provider who was perhaps too willing to take them; to a criminal justice system, which was slow to recognize that it would be unable simply to arrest its way out of the problem—there is, when it comes to the opioid crisis, plenty of blame to go around. But this prosecution is not about blaming anyone. My Office does not prosecute people; we prosecute violations of federal law. Today’s sentence simply holds one person—Dr. Eugene Gosy—responsible for the criminal violations of federal law he committed. Nothing more. Nothing less.”
“Opioid fraud schemes have devastated many communities around this country. Today’s sentencing demonstrates our commitment to hold accountable individuals whose reckless prescribing pose a danger to the public and contribute to the ongoing opioid epidemic," said Special Agent-in-Charge Scott J. Lampert, of the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations' New York Region. “In coordination with our law enforcement partners, we will use all available resources to thoroughly investigate crimes involving opioids and other prescription drugs.”
“Our investigation into Dr. Gosy’s role in the illegal proliferation of pain medication at the height of opioid epidemic was vindicated by his guilty plea, earlier this year,” stated DEA Special Agent-in-Charge Ray Donovan. “Today’s sentencing emphasizes law enforcement’s commitment to saving lives by investigating, arresting, and prosecuting those responsible for fueling opioid addiction and overdoses.”“Gosy's plea laid bare his criminal indifference to the well-being and health of many of his patients and their families,” said Stephen Belongia, Special Agent-in-Charge of the FBI's Buffalo Office. Gosy's practice of medicine placed a higher value on profit through fraud than the fragile lives of those who came to him for help. After his arrest, many expressed support for Gosy believing his treatments were based on good judgment and sincerity, but investigation revealed and his plea prove this was not the case. There is no doubt that Gosy exploited his patients’ pain for profit, at a tragic cost. This case demonstrates the importance of protecting patients suffering from chronic pain from those willing to capitalize on their suffering.”
Assistant U.S. Attorneys Brendan T. Cullinane, Jonathan P. Cantil, and Charles J. Volkert, who handled the case, stated that in carrying out the conspiracy, Dr. Gosy and his employees at the Gosy Center, which included nurse practitioners and physician assistants working under Dr. Gosy’s direction and control, issued more prescriptions for controlled substances annually than any other prescriber or prescribing entity in New York State, including hospitals. Specifically, Dr. Gosy and his employees carried out their conspiracy by:
• prescribing controlled substances without conducting a physical examination and/or after conducting only a limited and inadequate physical examination;
• prescribing controlled substances in ways that were likely to cause, and did cause, dependence and addiction, and that contributed to existing addictions;
• issuing prescriptions for controlled substances in dosages and/or in combinations dangerous to the health and safety of the patient;
• issuing prescriptions for controlled substances despite indications that patients were abusing and misusing the prescribed controlled substances;
• prescribing controlled substances without monitoring or using objective treatment information;
• recommending a course of treatment, including the prescription of controlled substances, which caused patients to become so addicted to opioid drugs that some eventually utilized heroin and other street drugs, in order to satisfy their addiction;
• issuing prescriptions for controlled substances to patients despite knowing that such patients had overdosed, or had otherwise been hospitalized for conditions relating to misuse of controlled substances;
• continuing to prescribe controlled substances in the same manner, and failing to adapt practices to prevent additional deaths and overdoses, despite having notice that treatment they were following had resulted in obvious drug-seeking behavior and addiction; numerous patient overdoses; and patient deaths;
• signing death certificates, in the absence of an autopsy or medical examination, for deceased patients to whom Gosy and/or his employees had prescribed controlled substances despite aberrant behaviors;
• recommending a course of treatment, including the prescribing of controlled substances, which caused the death of at least six individuals, and contributed to the deaths of others;
• utilizing a telephonic patient prescription renewal process, whereby patients could obtain prescriptions for Schedule II, III and IV controlled substances that were prepared by persons who were not medically trained and issued by mid-level providers who had inadequate knowledge about the prescription and the patient, and without adequate review of the prescription and the patient’s chart;
• Dr. Gosy pre-signing blank prescriptions and permitting other persons to fill out the remaining information for the prescription, when he would leave the Buffalo area for extended periods;
• Dr. Gosy failing properly to review and sign his own patient file notes, and arranging for other, non-medical, personnel to sign said patient file notes, to make it appear as if he had reviewed them;
• Dr. Gosy failing properly to review patient file notes/reports prepared by mid-level providers working under his supervision and working in collaboration with him, and arranging for other, non-medical, personnel to sign said patient file notes, to make it appear as if he had reviewed them;
• failing adequately to review records provided to the office from other providers, and failing to obtain a complete patient history and information about present illness and conditions;
• prescribing controlled substances to individuals while failing to refer the patient to and/or ensure compliance with drug addiction treatment despite aberrant behaviors, and requests from patients and/or their family members for help with addiction;
• prescribing methadone to individuals exhibiting aberrant behaviors, outside of a methadone clinic setting, and without employing additional safety precautions or referring the patient to addiction treatment;
• Dr. Gosy, beginning in 2008, circumventing state and federal regulations by prescribing buprenorphine for the treatment of narcotics addiction, improperly using his regular DEA number, and sometimes labeling the prescriptions as for “pain management,” even when the drug was being prescribed primarily for the purpose of treating narcotics addiction;
• Dr. Gosy issuing prescriptions to patients for buprenorphine, a Schedule III controlled substance, for the treatment of narcotics addiction, without having completed the required medical training course in order to be a “qualifying physician” to treat narcotics addiction;
• Dr. Gosy failing to complete training requirements, including Continuing Medical Education courses, Worker’s Compensation training, and Infectious Disease Control training, and instead requiring members of his office staff to take the online courses purporting to be the defendant; and
• Dr. Gosy engaging in prescribing patterns whereby high-risk patients that had run out of their prescribed opioids were given buprenorphine until Dr. Gosy could again prescribe other opioids.
Other practices adopted and used in defendant Gosy’s office included the following:
• Mid-level providers (Physician Assistants and Nurse Practitioners) were encouraged to maximize volume of patients seen. Providers who saw certain volumes of patients received monetary bonuses, and/or gifts. Providers who saw less patients were threatened with pay cuts. Providers also earned credit towards bonuses for performing certain, more lucrative procedures on patients.
• Beginning in 2012, a “script line” was established which allowed patients seeking prescriptions, who were not scheduled for an office visit, to call and request a prescription. The “script line” was attended to by individuals with no medical training or certification. They were responsible for drafting the requested prescriptions with the proper drug and dosage, checking the patient’s file for “alerts,” and the New York State iStop program, a Prescription Monitoring Program. Each week a mid-level provider was designated to sign all, or almost all, prescriptions requested through the “script line.” This typically amounted to hundreds of prescriptions per day, many of which were for patients whom the practitioner had never seen and/or with whom the practitioner had little or no familiarity.
• A system was in place for ordering urine drug tests whereby, once the test was ordered, an employee other than the treating practitioner would typically fill out the request form for the laboratory. As a result, the drug screens often tested for the presence or absence of drugs other than those actually prescribed to the patient. However, as part of the usual course of medical practice, urine drug tests should have been ordered and reviewed in consultation with the patient’s medical file, including history and list of current prescribed medications. This is because urine drug testing provided valuable objective information to assist in diagnostic and therapeutic decision making, provided confirmation of compliance with the treatment plan, and provided indication of overutilization of prescribed drugs, diversion/non-use of prescribed drugs, the use of prescription drugs not prescribed to a particular patient, and/or the use of alcohol or illicit street drugs.• As with the “script line,” toxicology results, including urine drug screens, were reviewed by a mid-level provider, many of whom had never seen the patient and/or with whom the practitioner had little or no familiarity. As a result, tests were often labeled as “consistent,” and not given appropriate attention, even when the tests showed the presence of a non-prescribed drug, or the lack of a prescribed drug.
• Patient records often contained incorrect or insufficient information to justify a diagnosis and warrant treatment. Mid-level providers frequently dictated their office notes, failed to review their notes after transcription, and “batch signed” large quantities of notes without review. In addition, Dr. Gosy rarely, if ever, signed his own notes, and arranged for others to affix his signature to office notes and patient files, in order to facilitate more expeditious billing.
The sentencing is the result of an investigation by the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent-in-Charge Scott Lampert; the Drug Enforcement Administration, under the direction of Ray Donovan, Special Agent-in- Charge, New York Field Division; the Federal Bureau of Investigation’s Western New York Health Care Task Force, under the direction of Special Agent-in-Charge Stephen Belongia; the Army National Guard - New York National Guard Counterdrug Task Force, under the direction of Lt. Col. Nicholas Dean; the New York State Department of Financial Services, under the direction of Superintendent Linda A. Lacewell; the New York State Office of the Workers’ Compensation Fraud Inspector General, under the direction of Inspector General Letizia Tagliafierro; and the New York State Bureau of Narcotics Enforcement.
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Local Man Pleads Guilty to Attempting to Board Flight at Cyril E. King International Airport with a Kilo of Cocaine Strapped to His WaistRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert announced that earlier today, Miguel Batista, Jr. pled guilty to possession of a controlled substance (cocaine) with intent to distribute in federal court. Sentencing is scheduled for February 4, 2021.
According to court records, on October 12, 2019, Miguel Batista, Jr. was selected for inspection by Customs and Border Protection agents during routine screening at the Cyril E. King International Airport. During the inspection, agents found a vacuum-sealed package of cocaine weighing approximately 1.07 kilograms taped to Batista’s torso which was concealed under a compression shirt and another layer of clothing.
The case was investigated by Homeland Security Investigations and Customs and Border Protection, and prosecuted by the United States Attorney’s office for the district of the Virgin Islands.
Lincoln Man Receives 100-Year Sentence for Producing Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Titus Miller, 27, of Lincoln was sentenced today by Senior United States District Judge Richard G. Kopf for five counts of production of child pornography. Miller was sentenced to 20 years in prison on each count which will be served consecutively to equal a total of 100 years in prison. Upon his release, he will serve a lifetime term of supervised release. There is no parole in the federal system. Miller will also be required to register as a sex offender. Miller was additionally ordered to pay $50,000 in special assessments which will contribute to funds established for victims of these types of crimes.
On October 21, 2019, Special Agents in the Knoxville, Tennessee Field Office of the Federal Bureau of Investigation (FBI) executed a search warrant and arrested a subject in Alabama. The subject disclosed information that he had been exchanging images and videos of child pornography with an individual, later identified as Titus Miller, via an internet based messaging application called Telegram, a means and facility of interstate and foreign commerce. Agents were provided access to the Alabama subject’s phone and Telegram account. Upon reviewing chats within Telegram, agents saw that on October 15, 2019, Miller transmitted a video to the Alabama subject depicting Miller engaging in sexually explicit conduct on a minor male victim under the age of 10. This video was later recovered from Miller’s phone during the course of a search warrant by the FBI and Lincoln Police Department on October 22, 2019, at Miller’s residence in Lincoln, Nebraska.
While accessing the Alabama subject’s account, agents were able to covertly act as the Alabama subject and began communicating with Miller. On October 22, 2019, Miller sent the undercover FBI agent four videos depicting juvenile males under the age of 12 engaging in sexually explicit conduct. These videos were also recovered from Miller’s phone during the course of a search warrant by the FBI and Lincoln Police Department on October 22, 2019, at Miller’s residence in Lincoln, Nebraska.
Investigation determined that from August 20, 2019 through October 15, 2019, Miller worked at Playful Painters Daycare, located in Lincoln, Nebraska. Miller worked the nighttime shift and had a supervisory role at the daycare. The videos were produced at the daycare while Miller had custody, care and supervisory control over the minor victims. Each video was produced using a Samsung Galaxy S9 smart phone and stored on a SanDisk media storage card. All of the videos were also stored in the Telegram internet based messaging application.
Miller previously pled guilty to the five counts of production of child pornography on July 15, 2020. Each count concerned a minor victim ranging in age from 4 – 6.
After today’s sentencing Acting Special Agent in Charge Paula Ebersole said, “The 100 year sentence guarantees Titus Miller will spend the rest of his life in Federal prison. He will no longer be able to hurt or victimize children again. FBI Omaha will continue to work shoulder to shoulder with our law enforcement partners, to bring to justice those who prey on the most vulnerable members of our communities.”
United States Attorney Kelly expressed “Today’s sentence of 100 years is the highest imposed in the District of Nebraska for the manufacture of child pornography. Miller’s actions were reprehensible, unspeakable, and carefully planned for his own gratification and that of others who find their satisfaction in the exploitation of defenseless children. One hundred years, although significant does not erase the damage done to the young children. Our thoughts and sympathy are with their families.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation and Lincoln Police Department.
Leader of 18th Street Gang Arrested for Murder and Racketeering ConspiracyRead the Press Release
A superseding indictment was unsealed today in federal court in Brooklyn against Walter Fernando Alfaro Pineda, also known as “Clever,” a Houston-based national leader of the 18th Street gang. The superseding indictment, which was unsealed as to 11 co-defendants in March 2020, charges Alfaro with racketeering conspiracy, conspiracy to commit murder and murder in-aid-of racketeering for criminal activity between September 2016 and February 2018. Alfaro was arrested today by federal agents in Houston, Texas, and the government will seek his removal to the Eastern District of New York.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and charges.
“Today’s arrest of a national leader of the 18th Street gang is a milestone in the Department’s effort to dismantle this vicious organization and hold its members responsible for their crimes of violence,” stated Acting United States Attorney DuCharme. “We will continue working tirelessly until all gangs are eradicated in our communities so that the public can move about freely under the rule of law and without fear of harm from transnational organized crime elements.”
As alleged in the superseding indictment and detailed in other court filings, Alfaro allegedly authorized the murder of Jonathan Figueroa in October 2017. Alfaro’s order to New York-based 18th Street members set a series of events into action to effectuate the brutal murder of Figueroa, who was suspected of cooperating with law enforcement. On the night of October 24, 2017, Figueroa was lured by another 18th Street member to travel with him by bus from New York City to Kingston, New York. When they arrived in Kingston, the victim met other 18th Street members and hiked into Turkey Point State Forest, a 140-acre wooded park and swamp bordering the western bank of the Hudson River in Ulster County, New York. There, Figueroa was stabbed more than 100 times. After the murder, 18th Street members buried the victim in a make-shift grave in the forest. One gang member recorded the killing to disseminate among other 18th Street members as a warning to those who considered disrespecting the gang.
Alfaro is also charged, along with 11 co-defendants, with racketeering conspiracy for his participation in a pattern of criminal activity, including murders, attempted murders, fraudulent identification production, and extortion.
The charges in the superseding indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
If convicted, Alfaro faces a mandatory sentence of life imprisonment and is eligible for the death penalty.
The government’s case is being prosecuted by Assistant United States Attorneys Jonathan P. Lax and Erin Reid of the Office’s International Narcotics and Money Laundering Section.
The Defendant:
WALTER FERNANDO ALFARO PINEDA (also known as “Clever”)
Age: 41
Houston, TexasE.D.N.Y. Docket No. 18-139 (S-5) (LDH)
Justice Department Announces $29 Million to Support Justice and Mental Health ProgramsRead the Press Release
The Department of Justice today announced awards totaling more than $29 million to support adult and juvenile justice initiatives designed to reduce crime and recidivism associated with mental illness and co-occurring disorders.
“More and more people with mental illness are coming into contact with the criminal justice system, straining law enforcement resources and placing exceptional demands on our jails and prisons,” said Office of Justice Programs (OJP) Principal Deputy Assistant Attorney General Katharine T. Sullivan. “By supporting partnerships between justice system professionals and treatment providers, we are making substantial investments in addressing the link between mental health and public safety.”
Through OJP’s Bureau of Justice Assistance (BJA), the Justice and Mental Health Collaboration Program is providing $18.6 million to support innovative cross-system collaboration for individuals with mental illnesses or co-occurring mental health and substance abuse disorders who come into contact with the justice system. The program funds collaborative projects between criminal justice and mental health partners to plan, implement or expand a justice and mental health program.
Through BJA’s Collaborative Mental Health and Anti-Recidivism Initiative, nearly $900,000 is being provided to the Wisconsin Department of Corrections to establish a statewide pilot program that partners with the appropriate agencies within the state. The initiative will establish a collaborative prison anti-recidivism effort to provide comprehensive care before, during, and after incarceration for persons with serious mental illness, with a goal of reducing recidivism.
Through BJA’s Improving Justice and Mental Health Collaboration - Training and Technical Assistance to Grantees and the Field Program, $4.6 million is being awarded to the Council of State Governments in Lexington, Kentucky, to provide training and technical assistance to law enforcement and other criminal justice agencies and their partner mental health and substance abuse authorities to reduce crime and recidivism associated with people with mental illnesses.
OJP’s Office of Juvenile Justice and Delinquency Prevention is providing nearly $5 million through the Juvenile Justice and Mental Health Collaboration Program to improve outcomes for youth with mental illness or co-occurring mental health and substance abuse disorders who come into contact with the juvenile justice system. The funding may be used for mental health courts, specialized training and collaborative efforts between juvenile justice and mental health agencies to promote public safety by offering mental health treatment services and substance abuse treatment services.
For a complete list of grant programs, amounts awarded, and recipients, click here.
Additional information about these awards and other FY 2020 grant awards made by the Office of Justice Programs can be found online at the OJP Awards Data webpage.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Justice Department and Indian Authorities Announce Enforcement Actions Against Technical-Support Fraud Scheme Targeting SeniorsRead the Press Release
A federal court has ordered an individual and 5 companies to stop engaging in a technical-support fraud scheme that is alleged to have defrauded hundreds of elderly and vulnerable U.S. victims, the Department of Justice announced today.
The temporary restraining order issued by the court follows the filing of a complaint by the United States, which seeks both preliminary and permanent injunctions to prevent the defendants from further victimizing U.S. consumers. The complaint filed by the Civil Division’s Consumer Protection Branch and the U.S. Attorney’s Office for the Southern District of Florida was coordinated through the Department’s Transnational Elder Fraud Strike Force, which Attorney General Barr established last year to combat foreign fraud schemes targeting older Americans.
According to the complaint filed today in the U.S. District Court for the Southern District of Florida, the defendants’ scheme contacted U.S. consumers via internet pop-up messages that falsely appeared to be security alerts from Microsoft or another well-known company. The pop-up messages fraudulently claimed that the consumer’s computer was infected by a virus, purported to run a scan of the consumer’s computer, falsely confirmed the presence of a virus and malware, and then provided a toll-free number to call for assistance. When victims called the toll-free number, they were connected to India-based call centers participating in the fraud scheme. Call center workers asked victims to give them remote access to their computers and told victims that they detected viruses or other malware on their computers. Eventually, the call center workers would falsely diagnose non-existent problems and ask victims to pay hundreds of dollars for unnecessary services and software.
In an unprecedented collaborative effort, the Central Bureau of Investigation (CBI) in India took actions in parallel with today’s filing against corporate and individual participants in the scheme located in Delhi, Noida, Gurgaon, and Jaipur. CBI, India’s federal investigative agency, took note of the international fraud being perpetrated by these companies operating from various locations in India. CBI registered a criminal case against five companies involved in the scheme and conducted an investigation to identify and locate the perpetrators of the crime. Coordinated search operations were conducted at the offices of these companies and at the residences of the directors of the entities. According to CBI, incriminating digital evidence related to the scheme was collected and seized during the searches.
“Today’s filing reflects the Department of Justice’s continuing commitment to use all tools available to protect seniors from fraud, especially schemes perpetrated by transnational criminal organizations,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Civil Division. “The Department of Justice sincerely appreciates the CBI’s efforts to disrupt and prosecute technical-support fraud, government imposter fraud, and all other schemes directed at the American public.”
“Fraud schemes that target the most vulnerable members of our society, including the elderly, will be not be tolerated in our district,” said U.S Attorney Ariana Fajardo-Orshan for the Southern District of Florida. “Our Office has and will continue to protect consumers through both civil and criminal prosecutions. We urge consumers not to click on any pop-up messages or links that appear on their computer devices claiming that the devices are infected by viruses and at risk of irreversible damage. Consumers should delete those pop-ups and instead contact their software provider or local computer consultant directly.”
“The FBI works with its local, state, federal and international partners to combat technical fraud schemes,” said Assistant Director of the International Operations Division Charles Spencer. “We will continue to collaborate with law enforcement partners in order to hold criminals who engage in this type of deceptive activity accountable. However, we cannot do this alone, therefore we encourage anyone who suspects that they may be a victim of internet related fraud to report it to the FBI’s Internet Crime Complaint Center.”
“Postal Inspectors are prepared to defend the U.S. Mail from anyone who attempts to use it to defraud American citizens,” said Inspector-In-Charge Delany De Leon-Colon of the U.S. Postal Inspection Service’s Criminal Investigations Group. “Through our partnerships with federal law enforcement agencies and our international counterparts, we’re able to extend our defense of the Nation’s mail across the globe. Today’s action marks a strong step forward towards stopping these ruthless scammers from using the mail to further their scheme,” said De Leon-Colon.
The complaint alleges that Michael Brian Cotter, 59, of Glendale, California, knowingly provided U.S. support for India-based accomplices in furtherance of the scheme. Cotter facilitated the scheme through several companies, including Singapore registered Global Digital Concierge Pte. Ltd., formerly known as Tech Live Connect Pte. Ltd., Nevada registered companies Sensei Ventures Incorporated and NE Labs Inc., New York registered Kevisoft LLC, and United Kingdom registered Kevisoft UK LTD. The temporary restraining order issued by the court today dismantles these defendants’ U.S. infrastructure, such as websites and payment processing relationships, and prohibits the defendants from continuing to facilitate the alleged scheme.
According to law enforcement officials with CBI, “as India’s premier federal investigative agency, CBI reaffirms its commitment for continued close collaboration with the FBI and promoting cooperation with U.S. law enforcement agencies on cybercrime and cyber security. CBI has been making concerted efforts to identify and rapidly dismantle any network of transnational cyber frauds operated out of India. This case further reinforces our continued commitment towards safer cyber space for all citizens globally.”
The filed complaint asserts that, since at least 2011, Cotter has worked with co-conspirators in India to operate the alleged scheme, including registering website domains, setting up shell companies, and entering into relationships with banks and payment processors to facilitate the collection of funds from victims of the scheme. Individual victims are alleged to have reported paying hundreds to thousands of dollars to the scheme for unwanted and unnecessary technical-support services.
The complaint seeks an injunction under the Anti-Fraud Injunction Statute immediately shutting down the defendants’ role in the fraudulent schemes in order to protect U.S. victims from further harm. The injunctions sought by the United States would authorize the immediate shutdown of websites used to contact and collect payments from victims, and would enjoin Cotter and the corporate defendants from engaging in telemarketing activity related to computer technical support or accepting payments related to any purported technical support service.
The widespread fraud allegedly committed in this case was brought to the Transnational Elder Fraud Strike Force’s attention by Microsoft, which often is impersonated by those engaged in technical-support fraud schemes.
Acting Assistant Attorney General Clark thanked the Postal Inspection Service for its investigation of the case, and the FBI’s Economic Crimes Unit and Legal Attaché’s Office in Delhi, India, for their substantial coordination efforts. He also expressed appreciation to Microsoft for apprising the Strike Force of the alleged offenses. The U.S. case is being handled by Trial Attorney Ann Entwistle of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney James Weinkle of the U.S. Attorney’s Office in the Southern District of Florida.
The claims made in the complaint are allegations only, and there has been no determination of liability.
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. Later, 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 likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
The department’s extensive and broad-based efforts to combat elder fraud seek to halt the billions of dollars senior lose to fraud schemes, including those perpetrated by transnational criminal organizations. The best method for prevention, however, is by 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 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
Glendale Payday Loan Company Owner Pleads Guilty to Wire FraudRead the Press Release
LOS ANGELES – A payday loan company owner pleaded guilty today to a federal criminal charge for defrauding money transmitting companies by failing to remit to them, as promised, nearly $1 million of wire transfers sent on behalf of his customers over just two weeks.
Arsen Khumaryan, 41, of Glendale, pleaded guilty to one count of wire fraud. United States District Judge John A. Kronstadt has scheduled a January 28 sentencing hearing, at which time Khumaryan will face a statutory maximum sentence of 20 years in federal prison.
Khumaryan owns Ask Inter Inc. (AII), a Glendale-based company that does business as Monroe’s Payday Advance, a financial services and check-cashing store. AII was an agent of MoneyGram and Ria Money Transfer, businesses that quickly provide money for a fee to individuals and companies in need of it.
As part of AII’s contracts with MoneyGram and Ria, Khumaryan was required to deposit into a trust account the money he received from his customers. After the wire transfer requests were made, MoneyGram and Ria would use their own funds to wire money to the recipients. AII was then required remit the customers’ funds from the trust account to MoneyGram and Ria no later than one business day after the customer requested the wire transfer. In exchange for selling MoneyGram and Ria’s products, the companies paid AII a commission based on the fees collected from customers.
According to his plea agreement, on May 23, 2018, Khumaryan advertised on social media that customers at his store could wire money, using MoneyGram and Ria, anywhere in the world without paying any fees, and could cash checks from Ria without fees during the upcoming Memorial Day weekend. Khumaryan admitted he knew that MoneyGram and Ria had not agreed to waive their wire transfer fees, nor had Ria agreed to waive its check-cashing fees.
Between May 23 and June 6, 2018, Khumaryan caused MoneyGram to send approximately $795,338 to recipients through its money transfer system. He also caused Ria to send 376 wire transfers totaling approximately $130,328 to recipients through that company’s money transfer system. Khumaryan pocketed the customers’ funds rather than remit them to the companies per his contractual obligations, causing the companies to lose more than $925,000. No MoneyGram or Ria customers were affected by Khumaryan’s fraud. This case is MoneyGram’s largest loss in the United States involving an agent’s misappropriation.
In addition, Khumaryan knowingly caused 16 bogus checks totaling approximately $104,057 to be processed through Ria’s money check-cashing system, the plea agreement states.
Khumaryan also admitted to submitting approximately $137,303 in fraudulent payments on personal credit cards issued to him by a business identified in the plea agreement as Company 3 by drawing against accounts he knew had insufficient funds to cover his payments.
The total losses in this case are $1,167,026, Khumaryan admitted.
This matter was investigated by the FBI and Homeland Security Investigations.
This case is being prosecuted by Assistant United States Attorney Valerie L. Makarewicz of the Major Frauds Section.
Ganado Man Sentenced to 50 Months in Prison for Sexually Abusing MinorRead the Press Release
PHOENIX, Ariz. – On Tuesday, Harlan Billie, 30, of Ganado, Arizona, was sentenced by Chief U.S. District Judge G. Murray Snow to 50 months in prison for sexually abusing a minor. Billie was also sentenced to lifetime supervised release and is required to register as a sex offender. Billie previously pleaded guilty to Sexual Abuse of a Minor.
Billie sexually assaulted the teenage victim at a home in Sanders, Arizona, on the Navajo Nation Indian Reservation. Both Billie and the victim are members of the Navajo Nation Indian Tribe.
The Federal Bureau of Investigation investigated this matter. Assistant United States Attorney Christine Ducat Keller, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-18-08237-PCT-GMS
RELEASE NUMBER: 2020-086_Billie# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Fugitive Charged with Leading Multimillion Dollar Fraud Scheme, Falsifying Evidence, and Tax CrimesRead the Press Release
An American citizen was charged in two indictments unsealed this week for his alleged participation in an investment fraud scheme in which he allegedly misappropriated $6.1 million in investor-funds, manufactured evidence to mislead an investigation by the Securities and Exchange Commission (SEC) and concealed the proceeds of his fraudulent scheme from the IRS.
Mykalai Kontilai, aka Michael Contile, 51, formerly of Las Vegas, Nevada and New York, New York, was charged by sealed grand jury indictment on June 3, 2020, in the District of Nevada with one count of securities fraud, six counts of wire fraud, six counts of laundering of money instruments, one count of money transaction in property derived from specified unlawful activity, and four counts of willful failure to file tax returns. Kontilai was also charged by sealed grand jury indictment on March 10, 2020, in the District of Colorado with one count of conspiracy to obstruct proceedings, two counts of obstruction of proceedings, one count of tampering with documents, and two counts of false statements. Arrest warrants have been issued, however, Kontilai is believed to have traveled to Russia to avoid prosecution. The FBI has also released a “Wanted” poster to facilitate his arrest.
The District of Nevada indictment alleges that from 2012 through 2018, Kontilai lured investors into giving him money to start an e-commerce auction business. The indictment further alleges Kontilai falsely told investors that he invested millions of dollars of his own money in the business and was not taking “a dime of salary.” According to the filing, Kontilai led bank officials to believe that money he withdrew was for business purposes when in fact it was for himself. On one occasion alone he allegedly withdrew $770,000 in cash from a company bank account, not to purchase inventory for the company, but for his personal use. He also allegedly used investor funds to purchase a Cadillac with the vanity tag, “MYKALAI,” and to pay for private school tuition and rent on luxury homes throughout the country. Kontilai is also charged with failing to file tax returns for tax years 2015 through 2018 when he was engaged in this scheme.
The District of Colorado indictment alleges that Kontilai covered up his theft by providing false testimony, and altering and manufacturing documents in an SEC investigation. Among other things, Kontilai is alleged to have tampered with a bank statement to substantiate his testimony that he loaned the company five million dollars and was justified in taking investor money to pay himself back. The altered bank statement showed the company’s account with a balance of $4,999,065, when the actual balance at the time was $935.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Las Vegas Field Offices of the FBI and IRS Criminal Investigation Division with assistance from the Washington and New York Field Offices of the FBI. Trial Attorney Emily Scruggs of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Tony Lopez of the U.S. Attorney’s Office for the District of Nevada are prosecuting the case. The U.S. Attorney’s Office for the District of Colorado, the Justice Department’s Tax Division, and the Justice Department’s Office of International Affairs also provided assistance.
The Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country.
Individuals who believe that they may be a victim in this case should contact the FBI’s Las Vegas Field Office.
Fugitive Charged with Leading Multimillion Dollar Fraud Scheme, Falsifying Evidence, and Tax CrimesRead the Press Release
LAS VEGAS, Nev. – An American citizen was charged in two indictments unsealed this week for his alleged participation in an investment fraud scheme in which he allegedly misappropriated $6.1 million in investor-funds, manufactured evidence to mislead an investigation by the Securities and Exchange Commission (SEC) and concealed the proceeds of his fraudulent scheme from the IRS.
Mykalai Kontilai, aka Michael Contile, 51, formerly of Las Vegas, Nevada and New York, New York, was charged by sealed grand jury indictment on June 3, 2020, in the District of Nevada with one count of securities fraud, six counts of wire fraud, six counts of laundering of money instruments, one count of money transaction in property derived from specified unlawful activity, and four counts of willful failure to file tax returns. Kontilai was also charged by sealed grand jury indictment on March 10, 2020, in the District of Colorado with one count of conspiracy to obstruct proceedings, two counts of obstruction of proceedings, one count of tampering with documents, and two counts of false statements. Arrest warrants have been issued, however, Kontilai is believed to have traveled to Russia to avoid prosecution. The FBI has also released a
“Wanted” poster to facilitate his arrest.The
District of Nevada indictment alleges that from 2012 through 2018, Kontilai lured investors into giving him money to start an e-commerce auction business. The indictment further alleges Kontilai falsely told investors that he invested millions of dollars of his own money in the business and was not taking “a dime of salary.” According to the filing, Kontilai led bank officials to believe that money he withdrew was for business purposes when in fact it was for himself. On one occasion alone he allegedly withdrew $770,000 in cash from a company bank account, not to purchase inventory for the company, but for his personal use. He also allegedly used investor funds to purchase a Cadillac with the vanity tag, “MYKALAI,” and to pay for private school tuition and rent on luxury homes throughout the country. Kontilai is also charged with failing to file tax returns for tax years 2015 through 2018 when he was engaged in this scheme.The
District of Colorado indictment alleges that Kontilai covered up his theft by providing false testimony, and altering and manufacturing documents in an SEC investigation. Among other things, Kontilai is alleged to have tampered with a bank statement to substantiate his testimony that he loaned the company five million dollars and was justified in taking investor money to pay himself back. The altered bank statement showed the company’s account with a balance of $4,999,065, when the actual balance at the time was $935.An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Las Vegas Field Offices of the FBI and IRS Criminal Investigation Division with assistance from the Washington and New York Field Offices of the FBI. Trial Attorney Emily Scruggs of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Tony Lopez of the U.S. Attorney’s Office for the District of Nevada are prosecuting the case. The U.S. Attorney’s Office for the District of Colorado, the Justice Department’s Tax Division, and the Justice Department’s Office of International Affairs also provided assistance.
The Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country.
Individuals who believe that they may be a victim in this case should contact the FBI’s Las Vegas Field Office.
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Founder and CEO of Iranian Financial Services Firm Sentenced to Prison for Conspiring to Violate U.S. SanctionsRead the Press Release
Assistant Attorney General for National Security John C. Demers and U.S. Attorney Erica H. MacDonald today announced the sentencing of Seyed Sajjad Shahidian, 33, to 23 months in prison for his role in conducting financial transactions in violation of U.S. sanctions against Iran. Shahidian, who pleaded guilty on June 18, 2018, was sentenced today before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota. Shahidian, a citizen of Iran, was arrested in London, England on Nov. 11, 2018, and, on May 15, 2020, was extradited to the United States.
“Shahidian lied to U.S. suppliers, illegally transferred funds from Iran, used fraudulent passports and ids, and established a business whose entire purpose was to circumvent U.S. sanctions and to enable others to do the same,” said Assistant Attorney General for National Security John C. Demers. “Today’s sentence should discourage other would-be sanctions violators from following in Mr. Shahidian’s footsteps.”
“Mr. Shahidian was the founder and CEO of a financial services firm that employed fraudulent tactics designed to circumvent United States sanctions lawfully imposed on the Government of Iran. Such actions are criminal and threaten our national security interests,” said U.S. Attorney Erica MacDonald. “In Iran, based on his illegal business, Mr. Shahidian had been a high-profile executive and a millionaire. He is now a convicted felon who has lost everything. This prosecution holds Mr. Shahidian accountable for his crimes and sends a broader message to others considering violating sanctions laws that there are serious consequences for doing so.”
“Today’s sentencing sends a clear message that those who try to willfully violate U.S. sanctions against Iran will be held accountable,” said Michael Paul, special agent in charge of the FBI’s Minneapolis field office. “The FBI and our worldwide partners will continue to identify, investigate and pursue those who perpetrate these deceptive criminal schemes with a deliberate disregard for our nation’s safety and security.”
According to the defendant’s guilty plea and documents filed in court, PAYMENT24 was an internet-based financial services company with approximately 40 employees and offices in Tehran, Shiraz, and Isfahan, Iran. The primary business of PAYMENT24 was helping Iranian citizens conduct prohibited financial transactions with businesses based in the United States, including the unlawful purchase and exportation of computer software, software licenses, and computer servers from United States companies. According to PAYMENT24’s website, the company charged a fee to circumvent “American sanctions,” and claimed to have brought in millions of dollars of foreign currency into Iran.
According to the defendant’s guilty plea and documents filed in court, Shahidian, the founder and former Chief Executive Officer of PAYMENT24, co-conspirator Vahid Vali, and other individuals violated the restrictions on trade and exports from the United States to Iran. On its website, PAYMENT24 sold a package to assist its Iranian clients with making online purchases from United States-based businesses, which included a PayPal account, a fraudulent “ID card and address receipt,” a remote IP address from the United Arab Emirates, and a Visa gift card. The PAYMENT24 website also offered its clients advice on how to create accounts with a foreign identity and how to avoid restrictions on foreign websites, including advising clients to “never attempt to log into those sites with an Iranian IP address.”
According to the defendant’s guilty plea and documents filed in court, Shahidian admitted to making material misrepresentations and omissions to United States-based businesses regarding the destination of the United States-origin goods. In order to accomplish the transactions, Shahidian obtained payment processing accounts from United States-based companies like PayPal using fraudulent passports and other false residency documentation to falsely represent that his customers resided outside of Iran. Shahidian admitted to opening hundreds of PayPal accounts on behalf of his PAYMENT24 customers who resided in Iran and to unlawfully bringing millions of U.S. dollars into the economy of Iran. As noted in recently unsealed court documents in the Northern District of California, Shahidian’s payment services were used to register domains targeted for seizure based on their association with Iranian Cyber Influence Operations.
Pursuant to the International Emergency Economic Powers Act (IEEPA), unauthorized exports of goods, technology or services to Iran, directly or indirectly from the United States or by a United States person are prohibited.
This case was the result of an investigation conducted by the Minneapolis Division of the FBI. The United States Attorney’s Office for the District of Minnesota, the United States Department of Justice National Security Division, and the Federal Bureau of Investigation are grateful for the substantial assistance provided by law enforcement authorities in the United Kingdom, including in particular the National Crime Agency and the London Metropolitan Police, in connection with the arrest and extradition in this matter.
Assistant U.S. Attorneys Timothy C. Rank and Charles J. Kovats of the District of Minnesota and Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
Founder and CEO of Iranian Financial Services Firm Sentenced to Prison for Conspiring to Violate U.S. SanctionsRead the Press Release
Assistant Attorney General for National Security John C. Demers and U.S. Attorney Erica H. MacDonald today announced the sentencing of SEYED SAJJAD SHAHIDIAN, 33, to 23 months in prison for his role in conducting financial transactions in violation of U.S. sanctions against Iran. SHAHIDIAN, who pleaded guilty on June 18, 2018, was sentenced today before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota. SHAHIDIAN, a citizen of Iran, was arrested in London, England on November 11, 2018, and, on May 15, 2020, was extradited to the United States.
“Mr. Shahidian was the founder and CEO of a financial services firm that employed fraudulent tactics designed to circumvent United States sanctions lawfully imposed on the Government of Iran. Such actions are criminal and threaten our national security interests,” said U.S. Attorney Erica MacDonald. “In Iran, based on his illegal business, Mr. Shahidian had been a high-profile executive and a millionaire. He is now a convicted felon who has lost everything. This prosecution holds Mr. Shahidian accountable for his crimes and sends a broader message to others considering violating sanctions laws that there are serious consequences for doing so.”
“Shahidian lied to U.S. suppliers, illegally transferred funds from Iran, used fraudulent passports and ids, and established a business whose entire purpose was to circumvent U.S. sanctions and to enable others to do the same,” said Assistant Attorney General for National Security John C. Demers. “Today’s sentence should discourage other would-be sanctions violators from following in Mr. Shahidian’s footsteps.”
“Today’s sentencing sends a clear message that those who try to willfully violate U.S. sanctions against Iran will be held accountable,” said Michael Paul, special agent in charge of the FBI’s Minneapolis field office. “The FBI and our worldwide partners will continue to identify, investigate and pursue those who perpetrate these deceptive criminal schemes with a deliberate disregard for our nation’s safety and security.”
According to the defendant’s guilty plea and documents filed in court, PAYMENT24 was an internet-based financial services company with approximately 40 employees and offices in Tehran, Shiraz, and Isfahan, Iran. The primary business of PAYMENT24 was helping Iranian citizens conduct prohibited financial transactions with businesses based in the United States, including the unlawful purchase and exportation of computer software, software licenses, and computer servers from United States companies. According to PAYMENT24’s website, the company charged a fee to circumvent “American sanctions,” and claimed to have brought in millions of dollars of foreign currency into Iran.
According to the defendant’s guilty plea and documents filed in court, SHAHIDIAN, the founder and former Chief Executive Officer of PAYMENT24, co-conspirator VAHID VALI, and other individuals violated the restrictions on trade and exports from the United States to Iran. On its website, PAYMENT24 sold a package to assist its Iranian clients with making online purchases from United States-based businesses, which included a PayPal account, a fraudulent “ID card and address receipt,” a remote IP address from the United Arab Emirates, and a Visa gift card. The PAYMENT24 website also offered its clients advice on how to create accounts with a foreign identity and how to avoid restrictions on foreign websites, including advising clients to “never attempt to log into those sites with an Iranian IP address.”
According to the defendant’s guilty plea and documents filed in court, SHAHIDIAN admitted to making material misrepresentations and omissions to United States-based businesses regarding the destination of the United States-origin goods. In order to accomplish the transactions, SHAHIDIAN obtained payment processing accounts from United States-based companies like PayPal using fraudulent passports and other false residency documentation to falsely represent that his customers resided outside of Iran. SHAHIDIAN admitted to opening hundreds of PayPal accounts on behalf of his PAYMENT24 customers who resided in Iran and to unlawfully bringing millions of U.S. dollars into the economy of Iran.
Pursuant to the International Emergency Economic Powers Act (IEEPA), unauthorized exports of goods, technology or services to Iran, directly or indirectly from the United States or by a United States person are prohibited.
This case was the result of an investigation conducted by the Minneapolis Division of the FBI. The United States Attorney’s Office for the District of Minnesota, the United States Department of Justice National Security Division, and the Federal Bureau of Investigation are grateful for the substantial assistance provided by law enforcement authorities in the United Kingdom, including in particular the National Crime Agency and the London Metropolitan Police, in connection with the arrest and extradition in this matter.
Assistant U.S. Attorneys Timothy C. Rank and Charles J. Kovats of the District of Minnesota and Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
Defendant Information:
SEYED SAJJAD SHAHIDIAN, a/k/a “Soheil Shahidi,” 33
Shiraz, Iran
Convicted:
- Conspiracy to defraud and commit offenses against the United States, 1 count
Sentenced:
- 23 months in prison
- 2 years of supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former Wilmington Doctor Receives 70 MonthsRead the Press Release
WILMINGTON, Del. – Today, U.S. District Judge Richard G. Andrews sentenced Charles Esham, a 61-year old former physician, to 70 months in prison for issuing illegal oxycodone prescriptions over a two-year period.
According to court documents and evidence presented at trial, between 2015 and 2016, Esham issued oxycodone prescriptions that were outside the course of usual professional practice and not for a legitimate medical purpose. Many of the more than 4,000 pills covered by those prescriptions were diverted and sold. Following a week-long trial, a jury convicted Esham of 39 counts of unlawful distribution of oxycodone. He has been incarcerated since the completion of the trial in December 2019.
On learning of the sentence, U.S. Attorney David C. Weiss stated, “Esham wrote oxycodone prescriptions as if he were taking orders at an ice-cream shop. He exercised almost no medical judgment or oversight when prescribing powerful opioids. In doing so, he effectively handed over his prescription pad to a drug trafficking ring and, worse, he papered his files to try to cover his tracks. Today, the Court sent a powerful message: doctors who violate their oaths and betray the trust that society places in them will answer for their crimes.”
"Medical professionals such as Dr. Esham have an ethical and legal obligation to prescribe powerful prescription painkillers such as oxycodone only for legitimate medical purposes," said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration's (DEA) Philadelphia Field Division. "His conviction on 39 counts of drug distribution totaling over 4,000 pills of oxycodone shows his total disregard for these same obligations; Dr. Esham's conduct was criminal."
This case was investigated by the DEA Philadelphia Field Division. Assistant U.S. Attorneys Christopher R. Howland and Dylan J. Steinberg prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 17-CR-71-RGA.
Former Virgin Islands Law Enforcement Officer Sentenced for Solicitation of BribeRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced today that Robert Defreitas, formerly a sworn law enforcement officer with the Virgin Islands Department of Licensing and Consumer Affairs (DLCA), was sentenced to 41 months in prison for Travel Act Bribery and Solicitation of a Bribe by a Public Employee. Defreitas was convicted of these offenses following a jury trial in December 2019.
According to the evidence presented at trial, in August 2018 Defreitas assisted with a DLCA inspection of a St. Thomas business, during which time he discovered that one of the company’s workers had not entered the country by legal means. Defrietas attempted to use this information against the victim. The victim later recorded a phone call in which Defreitas sought sexual favors in return for not reporting the vicitm’s immigration status, and this recording was played for the jury during the prosecution’s case-in-chief.
This case was investigated by the Virgin Islands Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Nathan Brooks.
Former Georgia correctional officer, boyfriend sentenced to federal prison for possession of drugs intended for prison distributionRead the Press Release
DUBLIN, GA: A Georgia Department of Corrections officer and her convicted-felon boyfriend were sentenced to federal prison for possession of drugs packaged for smuggling into prison.
Lekesia Lashea Harden, 23, of Dublin, was sentenced in U.S. District Court to 10 years in prison by Judge Dudley H. Bowen, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. A jury in October 2019 convicted Harden on one count of Possession with Intent to Distribute Marijuana and Methamphetamine after a two-day trial. Tremayne O. Linder, 31, of Dublin, who pled guilty to the same charge, previously was also sentenced to 10 years in prison. After completion of their prison terms, Harden must serve five years on supervised release, and Linder must serve three years. There is no parole in the federal system.
“As a correctional officer, Lakesia Harden knew what she was doing when she engaged in drug trafficking and associated with Tremayne Linder, a convicted felon,” said U.S. Attorney Christine. “Both of them will now spend substantial time in federal prison for their crimes.”
According to court documents and testimony, Harden worked as a correctional officer for the Georgia Department of Corrections (GDC) at Wheeler Correctional Facility, a medium-security, privately owned state prison in Alamo, Ga. Linder was on probation for a felony conviction on state charges when officers from the Dublin Police Department and Georgia Department of Community Supervision visited Harden and Linder’s residence April 9, 2018, to serve Linder with an arrest warrant for failing to complete the requirements of probation.
During a search of the residence, officers found 12 small packages, two of them containing methamphetamine and 10 containing marijuana. The marijuana was wrapped in electrical tape with some of the packages containing rolling papers, evidence that the material was packaged for smuggling into prison.
“Harden’s crime taints every law enforcement officer who takes an oath to uphold the law,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “She chose her relationship with a convicted felon over her oath and now she, too, is a convicted felon and will be held accountable along with her associate, convicted felon Tremayne Linder.”
“The GDC maintains a zero-tolerance policy for individuals who choose to ignore their oath and jeopardize our non-negotiable mission of public safety. We appreciate the support of our federal partners in our efforts to see that justice is served on this former officer,” said GDC Commissioner Timothy C. Ward. “The actions of this individual do not reflect the hundreds of officers who are committed each and every day to ensuring the safety of the public and the safe operations of our facilities.”
The case was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Dublin Police Department, and prosecuted for the United States by Special Assistant U.S. Attorney Michael Marchman and Assistant U.S. Attorney Hank Syms.
Former Baltimore Police Officer Sentenced to More Than Six Years in Prison for Federal Charge of Possession of Child PornographyRead the Press Release
Baltimore, Maryland - U.S. District Judge George L. Russell, III today sentenced James Robert Wissmann, IV, age 35, of Baltimore, Maryland, formerly a police officer with the Baltimore City Police Department, to 78 months in federal prison, followed by 25 years of supervised release, for possession of child pornography. Judge Russell also ordered that, upon his release from prison, Wissmann must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA). Baltimore Police Department (BPD) officials suspended Wissmann on July 31, 2019, after a search at his residence. Wissmann subsequently resigned from the BPD.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to his guilty plea, starting no later than July 2017, using fake names and fake e-mail addresses, Wissmann created accounts on a mobile application that allows users to join a “room” where they can message, video chat, watch videos and images, and share files, and used those accounts to distribute and receive files of child pornography and to discuss the sexual exploitation of children. The application monitored the activity on its platform and identified Wissmann’s accounts as sharing contraband files, shut down Wissmann’s accounts, and subsequently submitted reports to the National Center for Missing and Exploited Children (“NCMEC”). Each time Wissmann’s accounts were shut down, Wissmann created a new account, using fake names and e-mail addresses, and continued to share child pornography and discuss child exploitation.
In 2018 and 2019, Wissmann created at least seven separate accounts on the application after being banned based on trafficking in child pornography. On October 11, 2018, the application sent five reports to NCMEC relating to child exploitation activity in Wissmann’s account. All five reports contained images that depict naked prepubescent females.
As detailed in his plea agreement, Wissmann took a variety of steps to avoid detection by the online platforms and law enforcement. Those steps included the use of fake names and e-mail addresses when creating accounts; the purchase of a Virtual Private Network account (a service that lets a user access the web privately by routing the connection through a server and hiding the user’s online actions); the use of the Tor anonymity network (used to conceal a user’s location, usage, and identity); regularly deleting, reinstalling, and then deleting various applications; and by using a file-wiping utility to permanently delete files.
On July 31, 2019, investigators executed a search warrant at Wissmann’s residence and seized Wissmann’s laptop computer, removable digital media, and mobile phones, which he used to commit the offense. During a forensic examination of the seized items, investigators found images and videos of child pornography on Wissmann’s laptop, including images depicting prepubescent minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI, the Baltimore City Police Department, and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
# # #
Florida Resident Sentenced to 2 Years Probation after Previously Pleading Guilty to Accessing a Protected Computer without Authorization and Recklessly Causing DamageRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that CARLOS DAVID IRIAS, age 47, a resident of Cutler Bay, Florida, was sentenced to two (2) years probation by United States District Judge Eldon E. Fallon after previously pleading guilty to a one-count bill of information charging him with intentionally accessing a protected computer without authorization and recklessly causing damage resulting in loss to Company A, a company in New, Orleans, Louisiana that previously employed IRIAS, of more than $5,000 during one year, in violation of 18 U.S.C. '' 1030(a)(5)(B) and 1030(c)(4)(A). Judge Fallon also ordered IRIAS to pay restitution in the amount of $14,593 to Company A.
According to court documents, from about 2012 until August 14, 2017, IRIAS worked for Company A, which was in the business of developing and distributing specialized urological medical devices including scopes and laser fibers. IRIAS was responsible for designing marketing templates, coordinating sales, and developing client contacts. IRIAS terminated his employment with Company A on August 14, 2017, after which time he was no longer authorized to access Company A’s cloud-based server, which handled marketing-related functions, including storing email contact lists and marketing templates and brochures.
On November 2, 2018, IRIAS accessed Company A’s secured cloud-based computer system from his home in Cutler Bay, Florida without authorization and thereafter exported the contents to a server under his control. He then deleted the information from the cloud-based system. As a result of the unauthorized intrusion, Company A was unable to conduct marketing campaigns from about November 2018 until October 2019. Company A was also unable to contact and communicate with their customer base for approximately two or three months, which jeopardized Company A’s reputation in the specialized field in which it operated. As a result of such conduct, IRIAS recklessly caused damage to Company A, in the amount of approximately $14,593.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg, Supervisor of the Public Corruption Unit, is in charge of the prosecution.
Florida Man Who Financed and Patronized Child Sex-Trafficking Ring in the Philippines Pleads GuiltyRead the Press Release
Tampa, Florida – Christopher John Streeter (63, Land O’ Lakes) today pleaded guilty to sex trafficking of a minor under the age of 14. He faces a mandatory penalty of 15 years, and up to life, in federal prison. A sentencing date has not yet been set.
According to the
plea agreement , from September 2018 through June 2019, Streeter directly participated in a scheme that sexually exploited children in the Philippines in order to produce child sex abuse videos for his consumption. Over that period, Streeter communicated and transacted with Philippines-based facilitators to recruit children to engage in sex acts on camera. The child victims—some of whom were as young as 12 and 13 years old—were particularly vulnerable due to poverty and illness.Streeter sent payments to the Philippines in exchange for depictions of the victims engaging in sex acts. The money that Streeter remitted covered various recording and production costs, such as hotel rooms, transportation, and a commission for the recruiters. In return, Streeter received videos and images of minors involved in various sex acts. Streeter negotiated and paid a premium for videos and images depicting female minors losing their virginity. He also negotiated and paid a premium for media depicting female minors being placed at risk of pregnancy, including additional payment for emergency contraception pills, and, occasionally, for abortions.
One of Streeter’s victims was a 12-year-old female from Ozamis, Philippines. In 2018 and 2019, Streeter communicated with a Philippine recruiter in Ozamis named Analyn Tababini. On multiple occasions, while in the Tampa Bay area, Streeter paid Tababini to arrange for sex abuse videos to be made of the victim. The monies covered production costs, including the male abuser, money for the victim, hotel expenses, and a commission for Tababini. In return, Tababini sent Streeter several videos of the sexual abuse of the victim. At one point, Streeter voiced displeasure with the videos not depicting insemination of the victim and ordered Tababini to purchase emergency contraception and make the victim take it for future videos.
In addition to working for Streeter, Homeland Security Investigations Transnational National Criminal Investigative Unit in Manila discovered that Tababini has facilitated internet sex shows of minors in exchange for payment from an array of international clientele. In a recent, coordinated operation conducted by the Philippine National Police in Ozamis, Philippines, six of Tababini’s child sex-trafficking victims (including Streeter’s 12-year-old victim) were rescued by the Philippine Department of Social Welfare and Development. Philippine authorities also arrested Tababini and executed three search warrants in support of their continuing investigation.
This case was investigated by Homeland Security Investigations (Tampa and Manila), with assistance from the Pasco Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Frank Murray. The Philippines victim-rescue operation was conducted by the Philippine National Police (Manila), with assistance from Homeland Security Investigations (Tampa and Manila), U.S. Customs and Border Protection (National Targeting Center), the Philippine National Police Woman and Children Protection Center (Mindanao Field Unit), and the Ozamis City Police Office.
Five Alleged Members of the Gangster Disciples Indicted on Federal Racketeering ChargesRead the Press Release
A federal grand jury in Oxford, Mississippi, returned a six-count superseding indictment charging five alleged members of the Gangster Disciples gang, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney William C. Lamar of the Northern District of Mississippi.
The superseding indictment charges Latroy Daniels, Gregory Moffett, Michael Willie, Derrick Houston, and Darrell Steele with conspiracy to commit racketeering acts and participating in several violent assaults in aid of a racketeering enterprise for their alleged involvement in violent crimes that occurred across the state of Mississippi, both inside and outside of prison facilities. The indictment additionally charges Steele with using a destructive device in furtherance of a violent crime. The superseding indictment was returned by the grand jury Wednesday and unsealed today in the U.S. District Court of the Northern District of Mississippi.
According to the superseding indictment, the Gangster Disciples is a violent national criminal gang, founded in Chicago, and now active in numerous states across the U.S., including Mississippi. The gang operates under the leadership of a corporate board, which is responsible for gang decisions at the national level. Each state has a state and regional leadership of “governors” and other subordinate gang leaders, who are responsible for the gang’s activities in specific geographic regions and specific substantive areas. The scope of the Gangster Disciples’ crimes is wide-ranging throughout their national operation. The gang protects its power and operation through threats, intimidation and violence, including murder, attempted murder, and arson. Notably, the indictment highlights the firebombing of a state prison official’s car and home by members of the Gangster Disciples in September 2019.
An indictment merely contains allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by a multi-agency task force consisting of agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives, and investigators with the Mississippi Department of Corrections. The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and U.S. Attorney’s Office in the Northern District of Mississippi.
Evans man admits possessing child pornographyRead the Press Release
AUGUSTA, GA: An Evans man awaits sentencing after pleading guilty to possessing child pornography.
Oludare Oluwabusi, 43, of Evans, pled guilty to one count of Possession of Child Pornography before U.S. District Court Chief Judge J. Randal Hall, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charge carries a possible sentence of up to 20 years in federal prison, a requirement for registration as a sex offender, and a period of supervised release after completion of the prison term. There is no parole in the federal system.
“Each time they are created, stored, shared or viewed, images of child pornography represent the encapsulated, continual victimization of minors,” said U.S. Attorney Christine. “Possessing images of child pornography is a violation of the law, it is sickening and it is depraved, and with the collaboration of our vigilant law enforcement partners, we will not tolerate it.”
As outlined in court documents and testimony, in April, FBI agents acted on a cyber tip from the National Center for Missing and Exploited Children when they searched Oluwabusi’s home in Riverwood Plantation. An agent later testified in court to finding graphic images of child pornography on multiple devices belonging to Oluwabusi that were seized from the home.
“The FBI will always make it a top priority to keep our children safe and work with our federal, state and local partners to track down anyone involved in this abhorrent behavior,” said Chris Hacker, Special Agent in Charge of FBI Atlanta.
The FBI is investigating the case, which is being prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara M. Lyons.
Essex County Man Arrested for Stealing Checks and Cash from Post OfficeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man working as a contract custodian at a U.S. Post Office in Maplewood, New Jersey, was arrested today for bank fraud and theft of government property, including stealing nearly $15,000 in checks and cash from the Maplewood Post Office and fraudulently depositing the checks, U.S. Attorney Craig Carpenito announced.
Mark Gregory Jr., 27, of East Orange, New Jersey, is charged by complaint with one count of bank fraud and two counts of theft of government property. He is scheduled to appear this afternoon by videoconference before U.S. Magistrate Judge Michael A. Hammer.
According to documents filed in this case:
Between March 2019 and July 2019, Gregory stole certain checks placed into the stream of mail by customers at the Maplewood Post Office, and cash paid by customers and held at the Maplewood Post Office, and subsequently deposited those checks, in New Jersey and elsewhere, into bank accounts that he controlled.
The bank fraud charge is punishable by a maximum potential penalty of 30 years in prison and a fine of up to $1 million. The theft of government property charges are punishable by a maximum potential penalty of 10 years in prison and a maximum $250,000 fine.
U.S. Attorney Carpenito credited special agents with the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, and postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Tazneen Shahabuddin of the Special Prosecutions Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Eleven Individuals Charged in Red Lake Methamphetamine, Fentanyl Trafficking ConspiracyRead the Press Release
United States Attorney Erica H. MacDonald today announced two separate federal indictments charging 11 individuals in connection with parallel methamphetamine and fentanyl distribution conspiracies on the Red Lake Indian Reservation. Ten defendants are currently in custody and will make their initial appearances in U.S. District Court over the next several days.
According to allegations in the indictment, between August 2019 and December 2019, KYLE DALE CLARK, JOSE ARCEGA-VEJAR, VALERIE ANN CLARK, VANESSA LOUISE COBENAIS, KATHI LYN DUDLEY, DREW WILLIAM GRAVES, and KALYSSA KAILANI DEANAH WHITE conspired with each other to distribute methamphetamine on the Red Lake Indian Reservation and the surrounding area. Between April 15, 2020, through April 22, 2020, WHITE and ARCEGA-VEJAR also conspired with DAVID ALAN JOURDAIN, TARA MAE LUSSIER, and ANDREW JAMES NEADEAU to distribute fentanyl on the Red Lake Indian Reservation and the surrounding areas.
According to allegations in the indictment, COREY LEE DONNELL and KYLE CLARK were charged with firearms violations for illegally selling and possessing a firearm, namely a Glock model 26gen5, 9mm pistol. Because he has a prior felony conviction in U.S. District Court, KYLE CLARK is prohibited from possessing firearms or ammunition at any time.
United States Attorney Erica H. MacDonald thanks the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Red Lake Tribal Police Department, the Bureau of Indian Affairs, and the Federal Bureau of Investigation’s Headwaters Safe Trails Task Force for their collaboration and skilled investigative work in bringing these indictments. Additional assistance during the arrests was provided by the Federal Bureau of Investigation in Fargo and the Metro Street Crimes Unit in Fargo, North Dakota.
Special Assistant U.S. Attorney Gina L. Allery and Assistant U.S. Attorney Deidre Y. Aanstad are prosecuting the case.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant Information:
KYLE DALE CLARK, 29
City of residence unknown
Charges:
- Conspiracy to distribute methamphetamine, 1 count
- Felon in possession of a firearm, 1 count
JOSE ARCEGA-VEJAR, a/k/a “Jos Ar,” a/k/a “Jose Robles,” 32
Baja, Mexico
Charges:
- Conspiracy to distribute methamphetamine, 1 count
- Conspiracy to distribute fentanyl, 1 count
VALERIE ANN CLARK, 51
Redby, Minn.
Charges:
- Conspiracy to distribute methamphetamine, 1 count
VANESSA LOUISE COBENAIS, 31
Bemidji, Minn.
Charges:
- Conspiracy to distribute methamphetamine, 1 count
KATHI LYN DUDLEY, 42
Redby, Minn.
Charges:
- Conspiracy to distribute methamphetamine, 1 count
COREY LEE DONNELL, 28
Redby, Minn.
Charges:
- Sale or transfer of a firearm to a prohibited person, 1 count
DREW WILLIAM GRAVES, 32
City of residence unknown
Charges:
- Conspiracy to distribute methamphetamine, 1 count
KALYSSA KAILANI DEANAH WHITE, 19
Red Lake, Minn.
Charges:
- Conspiracy to distribute methamphetamine, 1 count
- Conspiracy to distribute fentanyl, 1 count
DAVID ALAN JOURDAIN, 38
Red Lake, Minn.
Charges:
- Conspiracy to distribute fentanyl, 1 count
TARA MAE LUSSIER, 20
Red Lake, Minn.
Charges:
- Conspiracy to distribute fentanyl, 1 count
ANDREW JAMES NEADEAU, 28
Red Lake, Minn.
Charges:
- Conspiracy to distribute fentanyl, 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600