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15 October 2020
Two Defendants Charged Following Armed Robberies of Miami-Dade Convenience StoresRead the Press Release
Miami, Florida – Two South Florida residents have been charged with federal conspiracy, armed robbery, and firearms offenses in connection with a series of convenience store robberies in Miami-Dade, Florida.
The criminal complaint charges Floyd Ellis Wyche, 53, of Lauderhill, Florida and Willie Lee Smith, 48, of Hialeah, Florida, with conspiring to rob several convenience stores at gunpoint. According to the affidavit, on August 29, September 2, September 12, and October 13, robbers used firearms to steal approximately $8,000 in total from four convenience stores. During one of the robberies, a firearm was stolen from a store clerk.
As to the October 13 robbery, in addition to conspiracy, the complaint charges Wyche and Smith with substantive armed robbery and firearms counts. The complaint affidavit alleges the following against Wyche and Smith: On October 13, Wyche and Smith drove to a gas station in Miami, Florida. Wyche was behind the wheel. Once there, Smith exited the vehicle and entered the gas station. He pointed a firearm at the gas station clerk and demanded money. Smith then grabbed money from the cash register, left the store, and returned to the vehicle.
According to the affidavit, officers attempted to stop the vehicle, but Wyche refused to pull over, leading law enforcement on a vehicle chase into Broward County. It is alleged that during the pursuit, Smith exited the vehicle. Law enforcement ultimately stopped the vehicle and arrested Wyche. Officers located and arrested Smith. They also located the firearm stolen from a store clerk during one of the robberies.
Wyche and Smith had their initial appearances in federal court today before U.S. Magistrate Judge John J. O’Sullivan. Smith’s detention hearing is set for October 15. Wyche’s detention hearing is set for October 19. Both hearings will occur in federal magistrate court in Miami.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge Robert Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Director Alfredo Ramirez III of the Miami-Dade Police Department (MDPD), Chief of Police Jorge R. Colina of the City of Miami Police Department, and Chief of Police Sergio Velazquez of the Hialeah Police Department, made the announcement.
ATF, MDPD, City of Miami PD, and City of Hialeah PD investigated this case, with assistance from Florida Highway Patrol and Miramar Police Department. Assistant U.S. Attorney Elena Smukler is prosecuting this case.
This case is part of Project Safe Neighborhoods, a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated 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.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing to address when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
A criminal complaint is merely an accusation that contains allegations. A defendant is innocent unless and until found guilty in a court of law.
You may find a copy of this press release on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 20-mj-03812.
Twenty-Four Defendants, Including Alleged Aryan Circle Gang Members and Associates Indicted on Racketeering, Firearms, and Drug Chrges in Multiple StatesRead the Press Release
BEAUMONT, Texas - Five indictments in three different states were unsealed today indicting a total of twenty-four defendants, including alleged Aryan Circle (AC) gang members and associates, on charges of racketeering conspiracy, violent crimes in aid of racketeering, drug conspiracy, and unlawful firearms trafficking.
The indictments were announced by Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Stephen J. Cox of the Eastern District of Texas, U.S. Attorney Robert M. Duncan, Jr. of the Eastern District of Kentucky, and U.S. Attorney Mike Hurst of the Southern District of Mississippi. These indictments are part of a larger investigation into the AC, Operation Noble Virtue, that has targeted AC leadership and has resulted in seventeen federal convictions in six jurisdictions to date.
One of the indictments in the Eastern District of Texas charges six alleged AC members and associates with a racketeering conspiracy that includes acts involving murder, five alleged AC members with assault resulting in serious bodily injury in aid of racketeering, and two alleged AC members with kidnapping and conspiracy to commit kidnapping in aid of racketeering. Among those charged are alleged current and former high-ranking gang leaders including William Glenn Chunn, aka “Big Head,” 38, of Texas; Michael Martin, aka “Aryan Prodigy,” aka “AP,” 37, of Texas; Kevin Kent, aka “Big Kev,” 35, of Indiana; and Malachi David Wren, 51, of Texas. Other alleged AC members charged include Jesse Paul Blankenship, aka “JP,” 39, of Missouri; Timothy Long, aka “Timmy,” 41, of Arkansas; Jeremy Chad Dennis, aka “JD,” 43, of Texas; Becky Westbrook, 49, of Mississippi; Rodney Holt, aka “Turbo,” 48, of Texas; Bobby Dayle Boney, aka “Bear,” 50, of Texas; and Glynnwood Derrick, 46, of Texas. One additional defendant remains at large.
Another indictment in the Eastern District of Texas charges Rodney Holt, aka “Turbo”; as well as his associate who is not known to be an AC member, Eric Hoccheim, 39, of Texas, with five counts including firearms trafficking and conspiracy. Operation Noble Virtue also resulted in a third indictment in the Eastern District of Texas, which charges Jeremy Klintman, aka “Shamrock,” 37, of Texas; Eulalio Torres-Cadenas, aka “Yayo,” 43, of Mexico; Shane Louque, 45, of Louisiana; and Breanna Beckley, 39, of Texas, with conspiracy to distribute controlled substances. These defendants are not known to be affiliated with the AC.
The indictment in the Southern District of Mississippi charges William Glenn Chunn, aka “Big Head”; Aaron Matthew Rentfrow, aka “Mongo,” 40, of Indiana; Jeremy Chad Dennis, aka “JD”; and Johnathon Aaron Reynolds, 38, of Tennessee with violent crimes in aid of racketeering relating to the stabbing of an inmate at USP Yazoo. That indictment also charges Daniel Wade Holler, aka “Knucklehead,” 34, of Texas, with accessory after the fact relating to the same attack.
The indictment in the Eastern District of Kentucky charges Mitchell Leon Farkas, aka “Lifter,” 51, of Louisiana; Jonathan Tucker Gober, aka “Tucker,” 36, of Texas; James Matthew Poole, aka “Redwood,” 35, of Texas; and Andrew Dwayne Tinlin, aka “Tin,” 39, of Iowa, with violent crimes in aid of racketeering relating to the stabbing of an inmate at USP Big Sandy.
According to court documents, the AC is a violent, race‑based organization that operates inside federal prisons across the country and outside prisons in states including Texas, Arkansas, Louisiana, and Missouri. The AC was established in the mid‑1980s within the Texas state prison system (TDCJ) after a period of turmoil within the Aryan Brotherhood of Texas (ABT) resulted in rejected and ex-ABT members creating the AC. The AC was relatively small in comparison to other prison‑based gangs, but grew in stature and influence within TDCJ in the 1990s, largely through violent conflict with other gangs, white and non-white alike. In recent years, the AC’s structure and influence expanded outside of prisons to rural and suburban areas in numerous states.
Court records further indicate that the AC enforces its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, assault, and threats against those who violate the rules or pose a threat to the organization. Members, and oftentimes associates, are required to follow the orders of higher-ranking members without question. The criminal acts charged in the indictments described above include shootings, stabbings, beatings, and “patch-burnings,” which are violent attacks that result in removal of a victim’s gang tattoo.
An indictment is merely an allegation. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by an Organized Crime Drug Enforcement Task Force (OCDETF) consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Federal Bureau of Prisons; Texas Department of Public Safety; Houston Police Department-Gang Division; Montgomery County (TX) Precinct One Constable’s Office; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Texas Department of Criminal Justice; New Jersey Department of Corrections-Special Investigations Division; Indiana State Police; Fort Smith (AR) Police Department; Arkansas Department of Corrections; Arnold (MO) Police Department; Jefferson County (MO) Sheriff’s Department; St. Louis Metropolitan Police Department; St. Louis County (MO) Police Department; Indiana Department of Corrections; Carrollton (TX) Police Department; Waller (TX) Police Department; Montgomery County (TX) Sheriff’s Office; Travis County (TX) Sheriff’s Office; Tarrant County (TX) Sheriff’s Office; Evangeline Parish (LA) Sheriff’s Office; Smith County (TX) Sheriff’s Office; McCurtain County (OK) Sheriff’s Office; Montgomery County (TX) District Attorney’s Office; Liberty County (TX) District Attorney’s Office; Harris County (TX) District Attorney’s Office; Mercer County (NJ) District Attorney’s Office; Evangeline Parish (LA) District Attorney’s Office; and the Sebastian County (AR) District Attorney’s Office.
The cases are being prosecuted by Trial Attorneys Bethany Lipman, Rebecca Dunnan, Lakeita Rox-Love, and Alexander Gottfried of the Criminal Division’s Organized Crime and Gang Section, Assistant U.S. Attorney Christopher Rapp of the Eastern District of Texas, Assistant U.S. Attorney Jeremiah Johnson of the Eastern District of Kentucky, and Special Assistant U.S. Attorney Michael Figgs Ganter of the Southern District of Mississippi, with the assistance of the U.S. Attorney’s Office for the District of New Jersey, the U.S. Attorney’s Office for the Western District of Louisiana, and the U.S. Attorney’s Office for the Eastern District of Missouri.
Three local men charged for unlawfully possessing firearmsRead the Press Release
DAYTON – Three Dayton men were charged today with gun-related crimes.
Davonte Hall, 27, and Demarque Demons, 27, were each charged by a federal grand jury in separate indictments. Hall was charged with unlawfully possessing a firearm as a previously convicted felon. Demons was charged with using and carrying a firearm during and in relation to a drug trafficking offense and possessing heroin with intent to distribute.
Edward Clark, 33, was also charged by criminal information with unlawfully possessing a firearm as a previously convicted felon.
They are among more than 20 area men charged federally with gun crimes in Dayton in the past 90 days.
“We’ve recently seen historic levels of gun violence in our cities,” said David M. DeVillers, United States Attorney for the Southern District of Ohio. “The year has also brought unique challenges to police and prosecutors who combat this violence. It is vital that we work together and with the community to target the extremely small population of violent offenders who create such a huge and horrific impact on our communities.”
Hall allegedly caused a high-speed chase with local law enforcement after striking a Montgomery County deputy cruiser on Sept. 16, 2020. Prior to being disabled by marked police cruisers, Hall drove on a rim of a tire for several miles into oncoming traffic in an attempt to elude law enforcement. Hall’s vehicle was eventually boxed in by law enforcement, and Hall was found to be in custody of pistol with an extended magazine. Hall was previously convicted in Montgomery County of assaulting a police officer.
A criminal complaint details that Demons allegedly fled from law enforcement at a high rate of speed after an attempted traffic stop. When subsequently arrested, officers recovered a firearm, as well as heroinand a digital scale.
According to court documents in Clark’s case, investigators with the Regional Agencies Narcotics and Gun Enforcement (RANGE) Task Force found a handgun between a mattress and box spring in Clark’s bedroom while executing a search warrant. The handgun, which had been previously reported stolen, had an extended magazine and was loaded with 22 rounds. Clark has prior convictions in Montgomery County for aggravated robbery with a deadly weapon and kidnapping.
Others charged federally in Dayton in the past 90 days for gun crimes include:
Defendant
Age
From
Date Charged
Offense(s)
Lemanuel Booker
32
Dayton
7/14/2020
Unlawful possession of a firearm by a convicted felon; Possession of fentanyl and heroin with intent to distribute
Dustin VanWey
32
Dayton
7/28/2020
Unlawful possession of ammunition by a convicted felon
Jack Clarence Elson II
42
Dayton
7/28/2020
Unlawful possession of a firearm by a convicted felon; Unlawful possession of ammunition by a convicted felon; Possession of methamphetamine with intent to distribute
Kalani Grier
21
Dayton
7/28/2020
Brandishing a firearm during and in relation to a drug trafficking crime
Anthony McGlothan
40
Dayton
8/11/2020
Unlawful possession of a firearm by a convicted felon
Diondray Beal
35
Springfield
8/11/2020
Unlawful possession of a firearm by a convicted felon; Use and Carrying of a firearm during and in relation to a drug trafficking crime; Possession of fentanyl and methamphetamine with intent to distribute
Joshua Payne
36
Dayton
8/25/2020
Unlawful possession of a firearm by a convicted felon; Possession of a firearm in furtherance of a drug trafficking crime; Possession of methamphetamine and cocaine with intent to distribute
Joshua Ryan Fuller
31
Dayton
8/26/2020
Unlawful possession of a firearm by a convicted felon
Antwaun Smith
43
Dayton
9/8/2020
Unlawful possession of a firearm by a convicted felon; Possession of valeryl fentanyl with intent to distribute
Robert Gilmore
40
Dayton
9/8/2020
Unlawful possession of a firearm by a convicted felon; Unlawful possession of a firearm by a person convicted of a misdemeanor crime of domestic violence; Receipt of a firearm by a person under indictment; Possession of methamphetamine with intent to distribute
Samuel Hayes
61
Dayton
9/8/2020
Armed bank robbery; Brandishing a firearm during and in relation to a crime of violence; Unlawful possession of a firearm and ammunition by a convicted felon
Brent Shropshire Jr.
36
Dayton
9/10/2020
Unlawful possession of a firearm by a convicted felon
Charles Scott Cooper
53
Moraine
9/21/2020
Unlawful possession of a firearm by a person convicted of a misdemeanor crime of domestic violence
Stephon Jones
23
Dayton
9/22/2020
Brandishing a firearm during and in relation to a drug trafficking crime
Brandon Harrison
31
Dayton
9/22/2020
Unlawful possession of a firearm by a convicted felon
George Lail
26
Dayton
10/1/2020
Unlawful possession of a firearm by a convicted felon
Ronald Howe, Jr.
42
Dayton
10/1/2020
Unlawful possession of a firearm by a convicted felon
Tevin D. Brown
25
Dayton
10/2/2020
Unlawful possession of ammunition by a user of, or person addicted to, a controlled substance
Indictments, criminal complaints and bills of information merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Texas Man Sentenced on Cyberstalking, Making Interstate ThreatsRead the Press Release
HARRISONBURG, Virginia – Adrian Raul O’Dell, an Odessa, Texas man, who had an online relationship with a juvenile female in the Western District of Virginia and later cyberstalked and made online threats to the girl’s family following her suicide, was sentenced today to 41 months in federal prison. Acting United States Attorney Daniel P. Bubar and David W. Archey, Special Agent in Charge of the FBI’s Richmond Division made the announcement today.
O’Dell, 20, was charged in October of 2019 and arrested the following month at his home in Texas. He pleaded guilty earlier this year to two counts of cyberstalking and one count of making interstate threats.
“In today’s increasingly virtual world, where we live, work and learn online, this sentence demonstrates that if anyone uses these platforms to cyberstalk, harass and threaten others, we will hold them accountable,” Acting United States Attorney Bubar said today. “The FBI and Warren County Sheriff’s Office did an outstanding job in finding Mr. O’Dell and bringing him to justice in Virginia for his abhorrent actions. My office sends its deepest condolences to the family in this case, who lost a loved one, and hope they find some solace knowing justice was served.”
“The FBI is fully committed to investigating all forms of child exploitation, cyberstalking and online threats. We will pursue those responsible and bring them to justice,” said Special Agent in Charge David W. Archey. “Our hearts and thoughts are with the family through these difficult times. “
According to court documents, between September 2017 and around March 2018, O’Dell had an online relationship with a 16-year-old girl who lived in Linden, Virginia. In May 2018, following an investigation by the Warren County Sheriff’s Office, it was determined that the girl died by suicide in a wooded area near her home.
From June 2018 through June 2019, O’Dell, using a variety of false email and online personas, took credit for her suicide. The defendant then sent threatening and intimidating messages to her family members and friends that placed them in reasonable fear of death and serious bodily harm. In addition, these messages attempted to cause friends and family members substantial emotional distress. The defendant sent certain of these messages in violation of a protective order.
The investigation of the case was conducted by the Federal Bureau of Investigations and the Warren County Sherriff’s Office. Assistant United States Attorney Kate Rumsey is prosecuting the case for the United States.
Ten Defendants Charged for Unemployment Insurance FraudRead the Press Release
LAS VEGAS, Nev. – Ten individuals have been charged in the District of Nevada for their alleged roles in unemployment insurance fraud schemes, including charges for conspiracy, mail fraud, identity theft, and unlawful possession and use of fraudulently obtained unemployment debit cards.
U.S. Attorney Nicholas A. Trutanich of the District of Nevada; Special Agent-in-Charge Quentin Heiden of the U.S. Department of Labor Office of Inspector General (DOL-OIG), Los Angeles Region; Executive Special Agent-in-Charge John D. Masters of the U.S. Postal Service Office of Inspector General (USPS-OIG), Office of Investigations, Western Area Field Office; Special Agent-in-Charge Brian Spellacy of the U.S. Secret Service, Las Vegas Field Office; and Special Agent-in-Charge Aaron C. Rouse of the FBI, Las Vegas Field Office made the announcement.
“On behalf of the U.S. Attorney’s Office, we’re grateful for our law enforcement partners’ hard work and coordination in bringing to justice those who have taken unemployment funds —intended to help Nevadans who lost their jobs due to the pandemic — for their own illegal gain,” said U.S. Attorney Trutanich. “We will continue devoting the resources and skills to investigating and stopping fraudsters from stealing taxpayer dollars meant for out-of-work Nevadans.”
“These charges demonstrate the Office of Inspector General’s commitment to combating fraud against the Unemployment Insurance program, which has become increasingly prevalent amid the pandemic. We will continue to work with our law enforcement and state workforce agency partners to pursue individuals who seek to undermine the integrity of the Unemployment Insurance program,” said Quentin Heiden, Special Agent-in-Charge, Los Angeles Region, U.S. Department of Labor Office of Inspector General.
“Today’s indictment of Ms. Jasmine Black sends a clear message that Mail Fraud, Identity Theft, and Obstruction of U.S. Mail, committed by a Postal Service employee, carries very serious consequences. The public we serve can rest assured that the Postal Service OIG, U.S. Attorney’s Office, and our partner law enforcement agencies remain committed to safeguarding the integrity of the U.S. Mail and ensuring the accountability and integrity of U.S. Postal Service employees,” said John Masters, Executive Special Agent-in-Charge, U.S. Postal Service Office of Inspector General (USPS-OIG), Office of Investigations, Western Area Field Office.
“The US Secret Service will continue to work with law enforcement and private partners to prioritize the investigative work required to combat a new wave of COVID-19 related fraud,” said Brian Spellacy, Special Agent-in-Charge, U.S. Secret Service, Las Vegas Field Office.
"Unfortunately the victims of these crimes are the unemployed citizens who are relying on these benefits to take care of their families; feeding them and keeping a roof over their heads. The FBI will continue working with our law enforcement partners to stop those who gain financially at the expense of taxpayers," said Aaron C. Rouse, Special Agent-in-Charge, FBI, Las Vegas Field Office.
According to the six federal criminal complaints announced today:
- Jasmine-Royshell Kanisha Black (32, of Las Vegas, Nevada) is charged with one count of conspiracy to commit mail fraud, one count of aggravated identity theft, and one count of obstruction of mail. As alleged in the complaint, Black was employed as a U.S. Postal Service mail carrier and assisted Vincent Okoye — previously charged in a federal indictment — with his scheme to fraudulently obtain unemployment benefits from the Nevada Department of Employment, Training & Rehabilitation (DETR) and the Arizona Department of Employment Services (DES). Black used her position as a mail carrier to help Okoye find straw addresses to which fraudulently obtained debit cards could be sent. She then intercepted and delivered those cards to Okoye in person. Debit cards recovered from a search of Okoye’s residence, car, and person had been approved for at least $460,000 in benefits by DETR and DES.
- Delashaun Dean (31, of Austin, Texas) is charged with one count of possession of counterfeit and unauthorized access devices and one count of identity theft. As alleged in the complaint, on October 3 and 5, 2020, Dean possessed at least 15 California Employment Development Department (EDD) debit cards containing unemployment insurance benefits issued in other people’s names. The debit cards in Dean’s possession had been approved for at least $220,000 in benefits by EDD.
- Kenneth Greenland (39, of Northridge, California) Brittany Griesel (37, of Santa Cruz, California), and Paul Naeger (37, of Spring, Texas) are each charged with one count of conspiracy to effect illegal transactions with access devices and one count of aggravated identity theft. In addition, Greenland and Griesel are charged with one count of illegal transactions with access devices. As alleged in the complaint, during a traffic stop in Las Vegas on August 8, 2020, law enforcement officers recovered eight EDD debit cards in other peoples’ names and $45,000 in cash in a car driven by Greenland in which Griesel was a passenger. According to bank records, Greenland and Griesel used those EDD debit cards at ATMs in Las Vegas and California, while Naeger used one of the debit cards found in the car to make calls while he was incarcerated in Texas. The debit cards recovered during the traffic stop had been approved for at least $250,000 in benefits by EDD.
- Joseph Holmes (21, of Fort Lauderdale, Florida) and Emelio Rochester (24, of Tallahassee, Florida) are each charged with one count of conspiracy to possess counterfeit and unauthorized access devices and one count of aggravated identity theft. As alleged in the complaint, during a traffic stop in Las Vegas on September 28, 2020, Holmes and Rochester possessed at least 17 EDD debit cards issued in the names of other people. During a search of a car Rochester was driving in which Holmes was a passenger, officers recovered almost $90,000 in cash. The debit cards recovered during the traffic stop had been approved for at least $385,000 in benefits by EDD.
- Antwine D. Hunter (33, of Las Vegas, Nevada) is charged with one count of mail fraud and one count of aggravated identity theft. As alleged in the complaint, on September 28, 2020, while executing a search warrant at Hunter’s residence, law enforcement officers recovered at least eight DETR debit cards and at least 15 identification cards in other people’s names. The debit cards recovered during the search had been approved for at least $215,000 in benefits by DETR.
- Keheir Jordan Parker (24, of Victorville, California) and Robert Barber (24, of Lawrenceville, Georgia) are each charged with one count of conspiracy to effectuate illegal transaction with an access device and one count of aggravated identity theft. As alleged in the complaint, during a traffic stop in Las Vegas on September 11, 2020, law enforcement officers recovered 12 EDD debit cards issued in other peoples’ names, along with ATM receipts showing use of the debit cards in Las Vegas and California to make withdrawals totaling $6,400. Officers also located more than $10,000 in cash on Parker, on Barber, and in the car. The debit cards recovered during the traffic stop had been approved for at least $150,000 in benefits by EDD.
A total of five of these defendants are in custody, three of which are currently in state custody at Clark County Detention Center on state charges. Two other defendants have made arrangements through their attorneys to self-surrender tomorrow morning. Black, Greenland, and Griesel are expected to make their initial court appearances in U.S. District Court in Las Vegas on October 16, 2020, all before U.S. Magistrate Judge Daniel J. Albregts. Naeger made his initial court appearance today in U.S. District Court in the Southern District of Texas. Dean, Rochester, and Hunter are currently in custody at Clark County Detention Center and will make their initial appearances in U.S. District Court in Las Vegas at a date to be determined later.
The minimum statutory penalty for aggravated identity theft is two years in prison. The maximum statutory penalty for mail fraud is 20 years in prison; for possession of counterfeit and unauthorized access devices, 10 years in prison; for illegal transactions with an access device, 15 years in prison; and for obstruction of mail, five years in prison. The maximum fine for each of these charges is $250,000. The minimum and maximum statutory sentences are prescribed by Congress and are provided here for informational purposes only.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
These cases are the products of investigations by the DOL-OIG, USPS-OIG, and U.S. Secret Service, with assistance from the Las Vegas Metropolitan Police Department, the FBI, the U.S. Postal Inspection Service, and the Nevada Attorney General’s Office. These cases are being prosecuted by Assistant U.S. Attorney Jim Fang.
Anyone with information about allegations of attempted fraud involving COVID-19 should please report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For information about COVID-19 fraud, visit the Department of Justice’s website at https://www.justice.gov/coronavirus and the National Unemployment Fraud Consumer Protection Guide at /media/1093226/dl?inline for prevention tips.
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Tax Preparer Sentenced to 27 Months in Prison for Conspiring to File False Income Tax ReturnsRead the Press Release
TRENTON, N.J. – A former employee of Tax Pro’s and Tax Solutions & Associates, tax preparation businesses located in Essex and Union counties, was sentenced today to 27 months in prison for conspiring to defraud the United States by filing false income tax returns, U.S. Attorney Craig Carpenito announced.
Angelo Thompson, 39, of Reistertown, Maryland, previously pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to Count 1 of an indictment charging him with conspiracy to defraud the IRS.
According to documents filed in this case and statements made in court:
From at least 2009 to April 2015, Joseph Kenny Batts was co-owner, along with Damien Askew, of Tax Pro’s, a tax return preparation and payroll business in Essex County, where Thompson, Tony V. Russell, Rudolph Sanders, Batts, and Askew prepared tax returns. In order to boost their business, Thompson and these others conspired to falsify their clients’ federal income tax returns for the purpose of generating refunds from the IRS in amounts that their clients were not entitled to receive. The fraudulent practices that Thompson, Russell, Sanders, Batts, and Askew used to inflate tax refunds included fabricating and inflating credits for education and child care; deductions, such as charitable contributions and unreimbursed employee expenses; and Schedule C business losses.
Thompson and other members of the conspiracy also permitted Batts to use their Paid Taxpayer Identification Numbers (PTIN) – the identification number that paid tax preparers are required to place on tax returns that they have prepared – when preparing tax returns to conceal Batts’ identity as the actual tax return preparer, due to, among other things, Batts’ prior federal tax fraud conviction.
After law enforcement executed a search warrant at Tax Pro’s in or about April 2015, Batts discontinued Tax Pro’s and opened Tax Solutions and Associates in Union, where Thompson, Russell, and Batts continued preparing false federal income tax returns.
By fraudulently inflating the amounts of the tax refunds, Thompson and his co-conspirators caused a total tax loss to the IRS in excess of $1.6 million.
Askew, Sanders, and Russell, have pleaded guilty to their roles in the scheme. Batts was convicted at trial in September 2019 of one count of conspiracy to defraud the United States and five counts of aiding and assisting in the preparation of false federal income tax returns. Russell has been sentenced to four years in prison; Askew, Sanders and Batts are awaiting sentencing.
In addition to the prison term, Judge Shipp sentenced Thompson to three years of supervised release and ordered him to pay restitution of $103,320.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Cari Fais and Jihee Suh of the Special Prosecutions Division.
St. Thomas Man Sentenced to Federal Prison After Discharging a .45 Handgun into a BusinessRead the Press Release
St. Thomas, USVI – The United States Attorney Gretchen C.F. Shappert announced today that Arnold Malone, 44, of St. Thomas, was sentenced to 33 months in prison for being a felon in possession of a firearm.
According to court documents, on August 22, 2019, Virgin Islands Police Department officers responded to a call that an individual had discharged a firearm on St. Thomas.
When the officers arrived, they were unable to locate the man. Moments later, Central Dispatch advised the officers that the man had returned and discharged his firearm inside of a business establishment after he was denied entry by the manager. The officers traveled to the business establishment, and the manager advised them that the man was in the alley.
Officers made contact with the man, who was later identified as the defendant, Arnold Malone, and asked to speak with him in reference to the shooting. Officers asked the defendant if he had a license to possess a firearm in the United States Virgin Islands. The defendant responded that he did not. Officers conducted a pat down of the defendant and discovered a Lallamar Minimax X45 .45 caliber, with an extended magazine containing nine (9) rounds.
Prior to August 22, 2019, the defendant had been convicted of attempted first degree murder and carrying/use of a dangerous weapon during the commission of a violent crime. He was not authorized to carry a firearm under federal law.
This case was investigated by the Virgin Islands Police Department in conjunction with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by Assistant United States Attorney Juan A. Albino.
Special Counsel to the U.S. Attorney for the District of Columbia Elana Suttenberg Delivers Testimony before the D.C. Council regarding Policing Reform and Proposed Amendment of Rioting StatuteRead the Press Release
Chairman Allen and Members of the Council:
My name is Elana Suttenberg, and I am the Special Counsel for Legislative Affairs at the United States Attorney’s Office for the District of Columbia. I thank you for the opportunity to appear today to share the Office’s views regarding the proposed legislation.
As members of this community, we remain deeply disturbed by the death of George Floyd, and the circumstances surrounding his death. We support the fair and equitable treatment of individuals, regardless of race. In this time, we recommit ourselves to our duty as prosecutors—that is, to uphold the Constitution and the laws of the District of Columbia, and to serve justice for all. We support many of the goals of these bills, which include ensuring accountability for police misconduct, and we commend the Council for its role in furthering this goal.
Bill 23-0882, the “Comprehensive Policing and Justice Reform Amendment Act of 2020”
As to Bill 23-0882, the “Comprehensive Policing and Justice Reform Amendment Act of 2020,” we have several concerns regarding proposals in this bill relating to body-worn camera (BWC) footage. First, the bill proposes prohibiting MPD members from reviewing their BWC recording or BWC recordings that have been shared with them to assist in initial report writing. It bears emphasizing that, before this same change was implemented by the Council’s emergency legislation, MPD members were generally permitted to review their BWC recording or BWC recordings that had been shared with them to assist in initial report writing, but were precluded from reviewing their own BWC recording before writing an initial report where a police shooting was involved. As detailed in our June 8, 2020 letter to the Council regarding the emergency legislation, we support expanding that exception (that is, the preclusion of review) to encompass cases involving officer conduct that results in serious bodily injury or death, even where there is no firearm involved.
Our concerns, therefore, only apply to cases that do not involve a police shooting, or officer-involved death or serious bodily injury. These include homicides, sexual abuse, domestic violence, robberies, burglaries, assaults, and other violent crimes committed by civilians against other civilians.
Our primary objective is to ensure the accuracy of the initial police report. Particularly in less serious cases, where a detective may not be assigned, the initial police report is a crucial way to inform prosecutors, the defense, and judges about the facts of the case. Officer accuracy in report writing is paramount, and we are concerned about any change in law that could infringe on accuracy. Frequently, the language in the initial police report is the same language used in a Gerstein affidavit filed in court or in an arrest or search warrant, upon which judges rely when making decisions that affect a person’s liberty and privacy.[1]
Further, BWC footage may contain exculpatory material that is favorable to a defendant. This could include exculpatory statements made by civilian witnesses, exculpatory evidence captured on video, exculpatory suspects that could exonerate the accused, and misidentification of an arrestee. The law should encourage police to discover and capture exculpatory material at the earliest opportunity, and should not prohibit police from reviewing BWC footage where exculpatory material may exist.
Moreover, if officers are not permitted—outside of the context of officer conduct that results in serious bodily injury or death—to review BWC footage before writing a report, officers may be incentivized to write very brief initial reports that do not contain meaningful details, to the detriment of prosecutors seeking to make just charging decisions, defense counsel arguing probable cause and release conditions, and judges making probable cause and hold determinations.
Finally, the Police Executive Research Forum (PERF) clarified in a letter to this Committee that it continues to recommend that officers be allowed to view BWC recordings before writing an initial police report. We agree with PERF on this issue, and appreciate PERF resolving any ambiguity as to their current position.
Second, the bill proposes requiring the Mayor, within 5 business days after an officer- involved death or the serious use of force, to publicly release the names and BWC recordings of all officers who committed the officer-involved death or serious use of force, with certain exceptions. The Mayor would retain discretion to release other BWC recordings in matters of significant public interest.
We are concerned that this modification would, in fact, make it more difficult to investigate a serious officer-involved death or serious use of force. Such a result, of course, would be contrary to our shared goal of ensuring officer accountability for misconduct. Once the BWC footage is public, both the officer involved and any civilians involved would be able to watch it. The early publication of BWC could, in certain situations, create a narrative that makes it difficult to conduct an investigation, as it may lead witnesses to a conclusion that affects their testimony, or otherwise influence witness testimony. In our June 8, 2020 letter to the Council, we expressed concern about the initial proposal that BWC footage must be released 72 hours following an incident. This proposal has now been modified to mandate release after 5 business days, rather than 72 hours. Although 5 business days could allow for more investigation than 72 hours, it would still be very difficult for our office to conduct a full investigation within 5 business days, as a full investigation could include all relevant parties, including involved civilians, testifying before the grand jury.
Because there are situations where it could be appropriate for the Mayor, in consultation with the relevant agencies, to release BWC footage, the Mayor should have discretion to release BWC footage at an appropriate time, balancing the needs of the community to see the footage with the needs of prosecutors to accurately investigate what happened, and the security and privacy rights of civilian witnesses who may be depicted in the footage.
Bill 23-0723, the “Rioting Modernization Amendment Act of 2020”
As to Bill 23-0723, the “Rioting Modernization Amendment Act of 2020,” we agree in principle with what we understand the Judiciary Committee Chairman’s goal to be in proposing an amendment to the rioting statute: to clarify the current statute so that it is clear to all and to ensure that it provides for public safety by appropriately capturing rioting versus otherwise protected conduct. We have several concerns, however, with this amended offense as drafted.
Under current law, a “riot” is “a public disturbance involving an assemblage of 5 or more persons which by tumultuous and violent conduct or the threat thereof creates grave danger or injury to property or persons.” D.C. Code § 22-1322(a). A person can be liable for the offense of rioting either for “willfully engag[ing] in a riot” or for “willfully incit[ing] or urg[ing] other persons to engage in a riot.” D.C. Code §§ 22-1322(b) and (c).
Further, under current law, a riot is a group activity, and the presence of a “riot” must first be established. The subsequent question of whether a particular person is “engaging” in a riot is an individualized determination. Courts have upheld a wide range of behavior as “engaging” in a riot. In Matthews v. United States, 419 F.2d 1177 (D.C. Cir. 1969), the Court of Appeals for the D.C. Circuit held that a defendant who took liquor from a liquor store during a riot was deemed to have engaged in the riot. In Carr v. District of Columbia, 587 F.3d 401, 406 (D.C. Cir. 2009), the D.C. Circuit stated that “if members of the crowd were cheering acts of violence committed by other marchers, they would be engaging in criminal conduct” under the rioting statute.
The proposed bill would modify the rioting statute to create liability for rioting where 10 or more people are each committing or attempting to commit a specified criminal offense in the area perceptible to one another. By changing the law in this manner, it would be more difficult to establish both that a riot exists and that an individual is engaging in a riot—even under circumstances where most members of our community would agree that the conduct at issue constituted rioting.
This is the case because the bill would change the offense of rioting by making rioting liability contingent upon each individual’s criminal or attempted criminal conduct, rather than contingent upon each individual’s willful participation in the group activity. In other words, to prove rioting under this bill, we would first have to prove that the defendant engaged in the underlying criminal conduct (for example, an assault, destruction of property, etc.), and then also prove that nine (9) other individuals engaged in underlying criminal conduct in the area perceptible to one another. Because this rioting bill provides the same maximum penalty as the penalty for much of the underlying criminal conduct on which the amended offense would rely, and creates additional elements to prove, there would be little incentive for prosecutors to charge a defendant with the offense of rioting. Rather, where appropriate, prosecutors likely would charge the defendant only with the underlying criminal conduct, such as assault or destruction of property.
Further, this proposal would remove liability for inciting or urging others to engage in a riot. This means that a person who organizes and coordinates a violent riot, but does not physically participate in it, would have no liability under this provision. Although other theories of accomplice liability could potentially apply, we believe that specific provisions for inciting a riot are warranted. Dispensing with specifically enumerated criminal liability for inciting others to riot will create gaps in the ability of law enforcement to address situations where a person or persons are actively encouraging others toward criminal behavior, and may reduce law enforcement’s ability to thwart such rioting behavior before it even begins.
Moreover, this proposal limits rioting to a misdemeanor offense, and eliminates a felony gradation of rioting. Under current law, felony liability attaches where, “in the course and as a result of a riot[,] a person suffers serious bodily harm or there is property damage in excess of $5,000.” D.C. Code § 22-1322(d). We recommend that the rioting statute maintain felony liability based on the level of bodily harm or the amount of property damage incurred.
Finally, the bill appears to use some language from the draft recommendations of the Criminal Code Reform Commission (CCRC). Without the context of the CCRC’s full recommendations, however, this language creates gaps in liability. For example, the bill references “a criminal offense that causes or would cause . . . [b]odily injury.” Under the CCRC’s recommendations, the corollary offense to simple assault would require “bodily injury.” Under current law, by contrast, simple assault does not require bodily injury as an element of the offense, see D.C. Code § 22-404(a)(1), although felony versions of assault do require various levels of bodily injury, see D.C. Code § 22-404(a)(2) (assault with significant bodily injury); D.C. Code § 22-404.10 (aggravated assault, which requires serious bodily injury). Because simple assault under current law does not require “bodily injury” as an element of the offense, simple assault would not constitute “a criminal offense that causes or would cause . . . bodily injury” under this bill. Thus, under this bill as drafted, a defendant who commits simple assault would not be liable for rioting—a result that we do not believe would be intended by the drafters.
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The U.S. Attorney’s Office for the District of Columbia looks forward to continuing to work with the Council, the community, and other stakeholders to ensure that our laws are just and equitable.
[1] A Gerstein affidavit, which is sworn to by a law enforcement officer, is a document filed in court setting forth the facts of a cases that provides a basis for the judicial finding of probable cause. A judicial finding of probable cause is required for pretrial detention.
Southern District Assistant U.S. Attorneys chosen to conduct national training session on human traffickingRead the Press Release
SAVANNAH, GA: Two Assistant U.S. Attorneys from the Southern District of Georgia were chosen to provide training on human trafficking to a nationwide audience of leaders and law enforcement.
Assistant U.S. Attorneys E. Greg Gilluly Jr. and Tania D. Groover served as subject matter experts on the Federal Law Enforcement Training Center’s (FLETC) virtual Human Trafficking Awareness Training (HTAT), said U.S. Attorney Bobby L. Christine. Wednesday’s training session, part of a program that members of Congress have sponsored across the country, was sponsored by U.S. Sen. David Purdue and U.S. Rep. Buddy Carter, along with Georgia First Lady Marty Kemp.
“AUSAs Greg Gilluly and Tania Groover have prosecuted some of the largest international and domestic human trafficking cases in the United States, and bring unparalleled expertise to this vital training program,” said U.S. Attorney Christine. “Our office is honored that they were chosen to share their expertise, and we hope their presentation delivers a higher level of awareness to legislative leaders and law enforcement professionals as they participate in the fight against modern slavery.”
Agents from Homeland Security Investigations and the FBI joined the U.S. Attorney’s Office in serving on a panel of experts to answer questions from class participants, including nearly 200 state and local law enforcement officers from Georgia and neighboring states. The session, facilitated by FLETC instructors in Brunswick, Ga., also identified local resources in the fight against human trafficking.
As they have in previous years, Gilluly and Groover are scheduled to provide similar training to law enforcement officers during the Sixth Annual Savannah Traffick Jam, planned for virtual delivery in January 2021.
About the AUSAs:
- AUSA Tania Groover is the point of contact for all human trafficking cases in the Southern District of Georgia, and coordinator for the Federal Human Trafficking Task Force in the Southern District. She has more than 18 years of experience as a state and federal prosecutor working victim cases involving sex trafficking, labor trafficking, child exploitation, rape, sexual assault, domestic violence, elder abuse, and homicide. Groover also works with law enforcement, victim-witness services providers, government agencies, and non-government agencies to help identify victims and provide victim services in human trafficking cases.
- AUSA Greg Gilluly serves as the Deputy Criminal Chief and formerly served as the Organized Crime Drug Task Force Coordinator, and in two decades as a prosecutor primarily handles complex organized crime cases including dismantling violent criminal enterprises involved in international drug trafficking, international human trafficking and international money laundering. Gilluly has received multiple OCDETF national awards, a U.S. Department of Justice Director’s Award, and national awards from the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, and various Offices of Inspector General. Gilluly has given presentations on human trafficking and organized crime throughout the United States.
If you believe you have information about a potential trafficking situation call the National Human Trafficking Hotline at 1-888-373-7888. Anti-Trafficking Hotline Advocates are available 24/7 to take reports of potential human trafficking. All reports are confidential and you may remain anonymous. Interpreters are available. The information you provide will be reviewed by the National Hotline and forwarded to specialized law enforcement and/or service providers where appropriate.
Southern Colorado Man Pleads Guilty to Federal Hate Crime and Explosives Charges for Plotting to Blow up SynagogueRead the Press Release
DENVER – United States Attorney Jason R. Dunn, in conjunction with the Justice Department announced that Richard Holzer, age 28, pleaded guilty today to federal hate crime and explosives charges for plotting to blow up the Temple Emanuel Synagogue in Pueblo, Colorado.
Holzer pleaded guilty to intentionally attempting to obstruct persons in the enjoyment of their free exercise of religious beliefs, through force and the attempted use of explosives and fire, in violation of Title 18, United States Code, Section 247, and to attempting to maliciously damage and destroy, by means of fire and explosives, a building used in interstate commerce, in violation of Title 18 United States Code, Section 844(i).
In the plea agreement, Holzer admitted that he planned to destroy Temple Emanuel, a synagogue in Pueblo, Colorado, that is listed on the National Register of Historic Places. Holzer, who self-identifies as a Neo-Nazi and a white supremacist, used social media accounts to promote white supremacy ideology and acts of violence and visited Temple Emanuel to observe Jewish congregants. After one such visit, Holzer told undercover FBI agents that he wanted to do something that would tell Jewish people in the community that they are not welcome in Pueblo, and they should leave or they will die. Holzer sent an undercover FBI agent pictures of himself holding automatic weapons and said he was “getting ready for RAHOWA,” shorthand for a racial holy war.
During a meeting with undercover agents to discuss his plans, Holzer repeatedly expressed his hatred of Jewish people and suggested using explosive devices to destroy the Synagogue. Holzer told the undercover agents that he wanted to “get that place off the map.” Holzer further admitted that he coordinated with the undercover agents to obtain explosives, including pipe bombs.
On the evening of November 1, 2019, Holzer met with undercover agents, who provided Holzer with inert explosive devices that had been fabricated by the FBI, including two pipe bombs and 14 sticks of dynamite. Before taking custody of the explosives, Holzer removed a copy of “Mein Kampf” from his bag and told the undercover agents that “this is a move for our race.” Holzer admitted that he planned to detonate the explosives several hours later, in the early hours of Saturday morning, November 2, 2019. The actions Holzer admitted in the plea agreement meet the federal definition of domestic terrorism, as they involved criminal acts dangerous to human life that were intended to intimidate or coerce a civilian population.
“This is the most important work that we can do – protecting our communities by stopping an attack before it occurred,” said U.S. Attorney Jason Dunn. “The people of Pueblo and the State of Colorado are safer as a result of today’s guilty plea and the outstanding work of prosecutors, the FBI, and our other law enforcement partners.”
“The defendant attempted to bomb the Temple Emanuel Synagogue to drive people of Jewish faith out of his community,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Violence motivated by religious intolerance strikes at the heart of a free society, and the Justice Department will continue to investigate and prosecute these violent acts of hate.”
“Today Richard Holzer pled guilty for plotting to harm members of a religious organization in Pueblo, Colorado,” said FBI Denver Special Agent Charge Michael Schneider. "We remain committed to working with our partners to protect Colorado's citizens from those who plan to commit acts of violence, including that which constitutes a hate crime or domestic terrorism, and hold those individuals accountable. We would like to thank the Southern Colorado Joint Terrorism Task Force, Pueblo Police Department, and the U.S. Attorney's Office for their dedication and perseverance in this investigation.”
Sentencing is set for January 20, 2021, before U.S. District Judge Raymond P. Moore. Holzer faces a maximum sentence of 20 years in prison for the hate crime charge and 20 years for the explosives charge, a fine of up to $250,000, and a term of supervised release.
Assistant United States Attorney Julia Martinez and Trial Attorney Michael J. Songer of the Civil Rights Division are prosecuting the case on behalf of the government. The FBI conducted the investigation with the assistance of the Pueblo Police Department and Pueblo County Sheriff’s Office.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER. The case number is 19-cr-488.
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.
South Bend, Indiana Man Sentenced to 12 Years in PrisonRead the Press Release
SOUTH BEND –Lamont Jamerson, age 34, of South Bend, Indiana was sentenced by United States District Court Judge Jon E. DeGuilio upon his plea of guilty of being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
Jamerson was sentenced to 144 months in prison followed by 2 years of supervised release.
According to documents filed in this case, in August 2019, Jamerson was in an ongoing dispute with another individual about money. Jamerson called and texted that person multiple times, then went to the individual’s home and pointed a gun at the window where they were standing. The individual called 911 and police officers located Jamerson shortly thereafter outside the home with a loaded 9mm handgun that had an extended magazine. Jamerson has multiple prior convictions, including three for burglary as well as carrying a handgun without a license, residential entry, and battery resulting in moderate bodily injury.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the South Bend Police Department. The case was handled by Assistant U.S. Attorney Molly E. Donnelly.
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Shamo Sentenced to Life in Prison After Conviction for Organizing, Directing Drug Trafficking OrganizationRead the Press Release
SALT LAKE CITY – Aaron Michael Shamo, the CEO of a nationwide dark net drug trafficking organization that distributed more than a half million counterfeit pills throughout the country, will serve life in federal prison after engaging in, and being convicted of, the most serious offense in the Controlled Substance Act. U.S. District Judge Dale A. Kimball imposed the sentence Thursday morning in Salt Lake City.
A federal jury found Shamo guilty of organizing and directing a drug trafficking organization that imported fentanyl and alprazolam from China and used the drugs to manufacture fake oxycodone pills made with fentanyl and counterfeit Xanax tablets following a trial in August 2019. Forty-seven witnesses testified at trial and hundreds of exhibits were received into evidence.
The jury convicted Shamo, 30, of Cottonwood Heights, Utah, of engaging in a continuing criminal enterprise, three counts of aiding and abetting the importation of a controlled substance, possession of a controlled substance with intent to distribute, manufacture of a controlled substance, and two counts of knowing and intentional adulteration of drugs while held for sale. The jury also found Shamo guilty of aiding and abetting the use of the U.S. Mail in furtherance of a drug trafficking offense, conspiracy to commit money laundering, money laundering promotion and concealment, and engaging in monetary transactions in property derived from specified unlawful activity. Shamo was found guilty on 12 of the 13 counts in the indictment. The jury did not make a decision on the aiding and abetting the distribution of fentanyl resulting in death count.
The nation’s opioid crisis was in full effect by the end of 2016, when Shamo was distributing his fentanyl-laced oxycodone around the country. Shamo distributed the controlled substances to other individuals for distribution in all 50 states using their storefront, PHARMA-MASTER, on the Dark Net marketplace AlphaBay and the U.S. mail. Federal law enforcement agents and prosecutors say an undercover purchase of 100 oxycodone pills is a substantial step in a drug investigation. Shamo sold more than half a million fentanyl-laced pills on the dark net. He also sold hundreds of thousands of fentanyl pills locally. Prosecutors told the jury that Shamo became the person he set out to be – the Pharma Master.
Evidence at trial showed Shamo did the things leader and organizers do. He was in control of the majority of the functions of the enterprise. He established the dark web store front, hired employees, took charge of marketing and product placement. He was a drug dealer to other drug dealers. He had the contacts in China and ordered the fentanyl. Most significantly, investigators were led to Shamo as they followed the proceeds of the drug trafficking organization. He had sole access to incoming bitcoin payments from customers. Shamo referred to the organization as his baby and his empire, prosecutors argued at trial.
Shamo developed the fentanyl product through a dangerous “trial and error” process as he distributed it to individuals across the country, evidence showed. Experts say 1 milligram of fentanyl in a pill can have dangerous consequences up to and including death. Shamo received messages from customers that they were getting sick. His response, prosecutors said, was to send more pills to the complaining customers. There was no shortage of fake pain pills. Co-defendants in the case, who were responsible for packaging and shipping, used a vacuum to clean up pills from the floor because they believed it was not worth their time to pick them up because of the volume of pills they were manufacturing.
“Aaron Shamo knew the nation was on fire with opioids and he poured fuel on the flames, over and over and over, never getting burned himself, but causing pain and misery wherever his fire spread. Aaron Shamo could be considered the face of the opioid epidemic. He was a profiteer, callously making millions of dollars and living a life of leisure while exploiting those suffering through opioid addiction,” Assistant U.S. Attorney Vernon Stejskal said in closing argument during the trial.
In their sentencing memorandum, federal prosecutors told the Court that the true scope of the defendant’s victims cannot be calculated. Since Shamo sold the fentanyl-laced fake oxycodone pills in bulk to redistributors, the end users of the pills could not always be located by investigators. Evidence shows that more than 90 individuals died from subsequent overdoses.
“The defendant’s history and characteristics support the imposition of a life sentence. The defendant dedicated himself to building his drug trafficking empire and becoming rich. The defendant also new about the acute dangers of fentanyl but continued to produce fentanyl-laced fake oxycodone pills at an ever-increasing rate prior to his arrest,” prosecutors wrote in a sentencing memorandum. “Dark net drug traffickers falsely operate under the assumption that they are anonymous and untouchable. Dark net drug traffickers see the immense profit potential for the highest-volume sellers of opioids online – sellers like Shamo. A life sentence would deter current and future dark net drug traffickers,” they wrote.
“Shamo’s drug trafficking organization is a graphic example of the dangers in drug trafficking and the harm it causes individuals, families, and communities. At least 90 of Shamo’s retail customers have died. Because Shamo’s organization supplied pills to other drug distributors on a wholesale basis, it is impossible to know for sure how many have perished in this illicit drug network. Most of Shamo’s profit hinged on fentanyl-laced fake pain pills, and fentanyl is an extraordinarily poisonous substance,” U.S. Attorney John W. Huber said. “Congress mandated the life sentence imposed today, which implies that a bi-partisan majority of our nation’s policymakers agreed on this significant sentence for circumstances like those found in Shamo’s conduct,” Huber said.
"In 2016, Shamo sold 1 million fentanyl-laced fake oxycodone pills to unsuspecting buyers in every state in the union. While the total harm he caused can never be measured, at least 90 of his known customers have died from overdoses. The Court’s sentence today—life imprisonment—brings justice to the families of his deceased customers and everyone else affected by his crimes. The Attorney General’s Office extends its deepest sympathies to the families of the deceased, recognizing that not even a just sentence can restore what was lost. We remain fully engaged in our effort to combat the opioid epidemic by aggressively investigating and prosecuting drug dealers who prey on the addicted," Utah Attorney General Sean D. Reyes said.
“The tragedy of the opioid crisis continues to this day, fueled in large part by those who use every method available, including the Dark Web, to sell their illicit goods to those with substance abuse addictions," said Catherine Hermsen, Assistant Commissioner for Criminal Investigations- FDA Office of Criminal Investigations. “The FDA will continue to work with its law enforcement partners to protect the public health and disrupt and dismantle illegal prescription drug manufacturing and distribution.”
“Aaron Shamo profited off of the pain and suffering of others in the hopes of becoming rich and famous. Shamo deserves to be held accountable for his actions. This investigation highlights the on-going struggle that our country faces with opioid addiction and the cooperative efforts needed to successfully dismantle criminal organizations targeting our neighborhoods,” Michael J. Tinkler, Assistant Special Agent in Charge of the DEA’s Utah District Office, said.
“Today’s sentence is the result of a collaborative investigation between federal, state and local partners and exemplifies our commitment to dismantle major narcotics and money laundering operations in Utah,” said Eric Balliet, Deputy Special Agent in Charge of U.S. Homeland Security Investigations, Denver. “As this case shows, you can’t hide on the dark net. HSI will continue to use its considerable technological expertise to investigate criminals like Shamo who push dangerous drugs into our neighborhoods and contribute to the epidemic of opioid addiction in our country.”
“Mr. Shamo put at risk countless individuals addicted to opioids, through the sale of dangerous counterfeit fentanyl-laced pills. His drug empire affected the entire nation and today Mr. Shamo and the United States people received their justice,” said IRS Criminal Investigation Special Agent in Charge, Tara Sullivan. “We will continue to work together with our law-enforcement partners to dismantle criminal enterprises like Mr. Shamo’s, who intend to financially profit from the exploitation and suffering of our communities and Americans as a whole.”
“The conviction and sentencing of Aaron Shamo is an excellent example of multiple law enforcement agencies combining their expertise and resources to work on the common goal of taking down dark web vendors. These vendors work under the belief they are anonymous, selling dangerous narcotics such as the deadly fentanyl uncovered in this investigation. U.S. Postal Inspectors are committed to continuing our work to dismantle drug trafficking operations to keep USPS customers and employees safe from greedy drug traffickers who favor profit over human lives,” stated Inspector in Charge Melisa Llosa of the U.S. Postal Inspection Service, Phoenix Division.”
A restitution hearing in the case will be held in November.
Assistant U.S. Attorney Vernon Stejskal of the U.S. Attorney’s Office and Special Assistant U.S. Attorneys Michael Gadd and Kent A. Burggraaf prosecuted the case. Gadd and Burggraaf are Assistant Attorneys General in the Utah Attorney General’s Office. Special agents of the U.S. Department of Homeland Security Investigations, DEA, IRS-Criminal Investigation, the Food and Drug Administration Office of Criminal Investigations, and Postal Inspectors with the U.S. Postal Inspection Service investigated the case.
Seventeen Tobacco Farmers Settle Civil Claims in Widespread Crop Insurance Fraud InvestigationRead the Press Release
LEXINGTON, Ky.—Seventeen tobacco farmers throughout eastern Kentucky have agreed to resolve civil allegations that they violated the False Claims Act, a federal law that prohibits submitting false or fraudulent claims for payment to the government. As part of their civil settlement agreements, all of the defendants admitted that they submitted, or caused to be submitted, false claims to a federally-backed crop insurance program.
The United States Department of Agriculture administers its crop insurance program through approved private insurance companies, who sell federally-backed multi-peril crop insurance (“MPCI”) policies to farmers. MPCI policies provide insurance coverage for harvests that are at risk from inclement weather or other naturally occurring events. Under the crop insurance program, eligible farmers are paid benefits based, in part, on factual representations as to the amount of crop harvested and sold and the cause of loss.
As part of their civil settlement agreements, all 17 defendants admitted that they submitted, or caused to be submitted, false claims for MPCI indemnity payments to federally-funded approved crop insurance providers. Several defendants submitted claims for damaged tobacco crop in order to receive indemnity payments, but in fact sold the same tobacco for cash under fictitious names at Clay’s Tobacco Warehouse. Other defendants claimed ownership of the crops on their insurance applications, despite having partial or no ownership, in order to hide the identity of the crop owner and receive a cut of the indemnity payment. With assistance from crop insurance agents and adjusters, the defendants also inflated crop loss amounts and submitted falsified documentation about the quality of the tobacco crop to the insurance company. The 17 defendants acknowledged that they made these false statements and false claims in order to secure indemnity payments to which they were not otherwise entitled.
Collectively, these defendants received nearly $900,000 in indemnity payments as a result of their false claims. The defendants all have agreed to pay the United States as part of their settlement agreements. Several of the defendants also have agreed to sell farmland, vehicles, and other property and remit the net sale proceeds to the federal government.
The government’s work in this investigation illustrates its commitment to combatting crop insurance fraud through civil enforcement under the False Claims Act. Tips from all sources about potential fraud can be reported to the U.S. Department of Agriculture Office of Inspector General at http://www.usda.gov/oig/hotline.htm.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Jason Williams, Special Agent in Charge, United States Department of Agriculture Office of Inspector General; James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation; Bryant Jackson, Special Agent in Charge, Internal Revenue Service-Criminal Investigation; and Juan Garrett, Director, Kentucky Department of Insurance Fraud Investigation Division, jointly announced the civil settlements.
These investigations are conducted by the United States Department of Agriculture Office of Inspector General, United States Department of Agriculture Risk Management Agency, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and Kentucky Department of Insurance. The United States is represented by Assistant United States Attorneys Meghan Stubblebine and Christine Corndorf.
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Seattle man charged with stealing police rifle, setting patrol car on fire during May 30 riot in downtown SeattleRead the Press Release
Seattle - A felon from Georgia, with a domestic violence conviction and no contact order in Washington State, was arrested yesterday charged with arson and weapons crimes for his conduct during civil unrest on May 30, 2020, announced U.S. Attorney Brian T. Moran. TYRE WAYNE MEANS JR will make his initial appearance in federal court at 2:00 today on a criminal complaint charging him with four federal felonies: arson, possession of a stolen firearm, and two counts of unlawful possession of a firearm.
“This is just the latest in a series of cases where our office has brought federal criminal charges related to civil disorder, and should be a wake-up call for those who think they can commit crimes hidden by a crowd,” said U.S. Attorney Moran. “Federal law enforcement and local police are piecing together publicly available video and photographic evidence to identify and ultimately prosecute those who thought they could escape accountability for their actions. In this case it means a felon, who is legally barred from possessing firearms, now faces tough federal sanctions.”
According to the criminal complaint, just after 4:00 p.m. on May 30, 2020, MEANS JR was captured on video lighting a paper towel and placing it in the back of a Seattle Police patrol car parked outside of Nordstrom on 6th Avenue in downtown. Other persons in the crowd fed the fire with lighter fluid and other accelerants and the vehicle was destroyed by fire. After he lit one patrol car on fire, MEANS JR is observed on video reaching through the destroyed rear window of a different patrol car and removing a rifle bag. MEANS JR opens the bag, and looks inside. MEANS JR is seen fighting with an unidentified man who tries to retrieve the rifle bag before MEANS JR runs from the scene. A subsequent surveillance video on Pine Street, around the corner from where the rifle was stolen, shows MEANS JR in a fight with another man. While MEANS JR and the man are throwing punches, an unidentified man picks up the rifle bag and ultimately walks away. Later that day the rifle was anonymously returned to the Seattle Police West Precinct.
MEANS JR was identified as the suspect in the video by his distinctive clothing, jewelry, tattoos, and association with a female who also had distinctive tattoos and a significant social media presence. MEANS JR was arrested in Bremerton, Washington, where he was meeting with his Washington State Department of Corrections probation officer.
MEANS JR is prohibited from possessing firearms due to two felony convictions in the state of Georgia: serious injury by vehicle and obstructing law enforcement by use of threats or violence. In Washington, MEANS JR has a felony conviction for domestic violence that includes a no-contact order–that order also prohibits him from possessing firearms.
Arson is punishable by a mandatory minimum 5 years in prison and up to 20 years in prison. All three firearms charges are punishable by up to 10 years in prison.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the FBI and the Seattle Police Department.
The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
means_complaint.pdfSaint Louis Man Pleads Guilty to Using Online Marketplaces to Rob Victims of iPhonesRead the Press Release
Clyde Jefferson, 28, of St. Louis, appeared before United States District Judge E. Richard Webber and pled guilty to five counts of interference with commerce by robbery and one count of brandishing a firearm in furtherance of a crime of violence. Judge Webber set the case for sentencing on January 14, 2021.
Jefferson admitted that he used online marketplaces including Facebook Marketplace, OfferUp, and Letgo to arrange for victims to sell him their iPhones at locations in the City of St. Louis and St. Louis County. When meeting the victims, Jefferson would offer them counterfeit currency in exchange for their iPhones. Jefferson brandished a firearm during several of the transactions, which occurred on August 3, September 21, and October 8, 2018, and on January 8 and 29, 2019.
The United States alleges that Jefferson shot one of his victims, a fact which Jefferson disputes and the Court will resolve at the sentencing hearing.
This case is being investigated by the United States Secret Service, the St. Louis Metropolitan Police Department and the Richmond Heights Police Department. Assistant United States Attorney Jennifer Roy is handling the case for the U.S. Attorney’s Office.
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Rocky Mount Return Preparer Pleads Guilty to Multi-Year Tax Fraud SchemeRead the Press Release
RALEIGH, N.C. – A Rocky Mount woman pleaded guilty today to Conspiracy to Defraud the United States.
According to court documents and statements made in court, Adrienne Jeanine Williams, 48, owned and operated Ultimate Tax Service, a return preparation business, in Rocky Mount, North Carolina. For tax years 2011 through 2016, six other return preparers worked for Williams. Clients’ returns included an array of false items to include education credits, itemized deductions, wages, and Schedule C businesses, but the primary false item was making it appear the clients had already paid taxes when they had not. This created a dollar-for-dollar enlarged refund. In all, the false returns prepared and filed by Williams and her employees on behalf of clients claimed approximately $4.4 million federal income tax withholdings for which the IRS never received a corresponding Form 1099 corroborating the claimed withholding. The loss to the United States exceeded $3.5 million.
Williams also filed false returns in her own name for tax years 2011, 2014, 2015, and 2017, similarly claiming she paid additional 1099 withholding when she had not.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after Chief U.S. District Judge Terrence W. Boyle accepted the plea. The Internal Revenue Service – Criminal Investigations is investigating the case and Assistant U.S. Attorney Susan Menzer and Tax Division Trial Attorney Michael Jones are prosecuting the case. Chief Judge Boyle will sentence Williams during the January 2021 term of court.
The maximum penalty is five years’ imprisonment and a $250,000 fine.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:20-cr-00079-BO.
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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.
Rhode Island Man Sentenced to 23 Months for Fraudulently Acquiring Firearms from a Licensed DealerRead the Press Release
Portland, Maine: A Rhode Island man was sentenced yesterday in federal court in Portland for providing false information in connection with the acquisition of firearms from a licensed dealer, U.S. Attorney Halsey B. Frank announced.
U.S. District Court Judge Nancy Torresen sentenced Salvador Rodrigues, 23, of Pawtucket, Rhode Island, to 23 months in prison and three years of supervised release. Rodrigues pleaded guilty on November 21, 2019.
According to court records, on five separate occasions between April 2018 and August 2018, Rodrigues purchased firearms from Kittery Trading Post. During each of the five purchases, Rodrigues presented an invalid Maine driver’s license and/or falsely claimed in writing that he had not been convicted of a felony offense. In fact, he had been convicted in Rhode Island of felony possession of a pistol without a license and a felony drug offense in May 2018.
The Pawtucket Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case, which was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. For more information about PSN please visit www.justice.gov/psn.
Raleigh Man Pleads Guilty to Conspiracy to Commit Bank Fraud by Using Synthetic IdentitiesRead the Press Release
RALEIGH, N.C. – A Raleigh man pleaded guilty today to Conspiracy to Commit Bank Fraud.
According to court documents and information presented in open court, Jacques Maurico Anderson, 32, conspired with others to defraud financial institutions of approximately $393,875. Anderson and a close friend purchased synthetic identities from an individual they met on Craig’s List. Anderson used this nine-digit-number, commonly referred to as a CPN, on credit applications instead of the social security number issued to him by the Social Security Administration because his credit was poor. Anderson and his friend enhanced the credit worthiness of their new credit profiles by adding the CPN coupled with their names as authorized users to credit cards issued to individuals with high credit scores. As a result, lenders and credit card issuers were scammed in believing Anderson and his friend had good credit and the ability to pay off indebtedness.
Between February 17, 2017 and March 8, 2017, Anderson and his friend went on a month long shopping spree with their new synthetic identities. They also substantially inflated their income and provided false residential addresses. In total, they purchased or attempted to purchase five automobiles, eight All-Terrain Vehicles (ATVs), one covered wagon trailer and obtained seven credit cards. Anderson and his friend attempted to sell some of the ATVs that they fraudulently obtained to others.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. Magistrate Judge Robert Numbers accepted the plea. The Federal Bureau of Investigation and the Social Security Administration, Office of Inspector General are investigating the case and Assistant U.S. Attorney Susan Menzer is prosecuting the case.
U.S District Judge James C. Dever, III will sentence Anderson during the January 2021 term of court. The maximum penalties are thirty years’ imprisonment and a $1,000,000 fine. Restitution is mandatory.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-cr-00266-D.
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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.
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.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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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.
Follow us on Twitter: SDWVNews and USAttyStuart
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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.
* * *
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)