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Friday 28 August 2020
Dennis Port Man Pleads Guilty to Child Pornography ChargesRead the Press Release
BOSTON – A Dennis Port man pleaded guilty yesterday to charges of receipt and possession of child pornography.
Sean Gleason, 36, pleaded guilty to one count of receipt of child pornography and one count of possession of child pornography. U.S. District Court Judge Denise J. Casper scheduled sentencing for Dec. 18, 2020. On Sept. 10, 2019, Gleason was arrested and charged by criminal complaint and has been in custody since.
Following an investigation into the use of a messaging application in the exchange of child pornography, a federal search warrant executed on Sept. 10, 2019 at a residence in Dennis Port revealed hundreds of images of child pornography on Gleason’s cell phone. A full forensic review of the phone revealed at least 498 images and at least one video of child pornography. The cache of child pornography included images depicting the abuse of infants, toddlers and prepubescent minors.
The charges of receipt and possession of child pornography each carry a sentence of up to 20 years in prison, and the charge of receipt of child pornography carries a mandatory minimum sentence of five years in prison. Both charges provide for a mandatory minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Adam W. Deitch of Lelling’s Major Crimes Unit is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Davenport Man Found Guilty by Jury of Felon in Possession of a FirearmRead the Press Release
DAVENPORT, IA- On Wednesday, August 26, 2020, a federal jury found Darvill Jimmy Joseph Bragg, age 25, of Davenport, guilty of the offense of felon in possession of a firearm.
The trial began on August 24, 2020. The Government presented witnesses who testified about a shooting involving Bragg that occurred at approximately 8:00 p.m. on October 25, 2019 in the parking lot of an apartment building in Davenport. Government witnesses also testified about a traffic stop, approximately three hours after the shooting, of a vehicle in which Bragg was the front seat passenger. The stop occurred near the same parking lot where the shooting occurred.
During the stop, Davenport Police Officers recovered a Taurus Judge, .45 caliber revolver in the front passenger door bin of the vehicle.
Sentencing is scheduled for January 15, 2021, at 9:30 a.m., at the Federal Courthouse in Davenport. If the Court determines Bragg is subject to the provisions of Title 18, United States Code, Section 924(e) (the Armed Career Criminal Act), he faces a mandatory minimum sentence of 15 years and up to life in prison.
In 2011, in Rock Island (Illinois) Circuit Court, Bragg was convicted of two armed robberies, Class X felonies, both of which involved the use of a firearm. In 2015, in Scott County (Iowa) District Court, Bragg was convicted of Willful Injury, a Class C felony, for an incident in which he shot and injured another man.
This investigation was conducted by the Davenport Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Convicted Felon Given 5 Year Sentence for Being in Possession of a FirearmRead the Press Release
Memphis, TN – Christopher Tomlinson, 32, has been sentenced to 63 months in federal prison for being a convicted felon in possession of a firearm. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on March 16, 2018, Memphis Police Department officers were on routine patrol at Rayburn Street and East Waldorf Avenue, when they observed a red Honda Accord parked more than twelve inches from the curb facing southbound with the driver’s side door fully open on to traffic. Tomlinson quickly exited the vehicle, and officers exited their squad car and told Tomlinson to stop while identifying themselves as police officers. Tomlinson did not stop; he fled on foot.
Officers observed Tomlinson holding a black and green gun in his right hand as they continued to give verbal commands to drop the gun and to stop. Officers located and detained Tomlinson behind a house on Patton Street. While searching Tomlinson, he attempted to pull away and run from the officers.
Later, an anonymous citizen advised law enforcement that Tomlinson threw something in the window of an abandoned house on Patton Street. Officers looked through the window of the house and observed a black and green gun, covered in mud, laying on the floor. Officers recovered a Springfield Armory 9mm caliber pistol. The gun was loaded with one live round in the chamber. Also recovered from the Honda Accord was a clear plastic baggy containing a green leafy substance and two scales from the front passenger seat. The green leafy substance tested positive for 0.8 grams of a total gross weight for marijuana.
On the morning of March 2, 2020, the day his jury trial was to begin, the defendant pled guilty to being a convicted felon in possession of a firearm. As a result of his prior felony convictions, including aggravated robbery and felon in possession of a firearm, Tomlinson is prohibited by federal law from possession of firearms or ammunition. Further, Tomlinson was on supervised release status at the time of this new federal firearms offense.
On August 27, 2020, U.S. District Court Judge John T. Fowlkes, Jr., sentenced Tomlinson to 63 months imprisonment followed by two years of supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "Convicted felons who possess firearms are an inherent danger to community, and this defendant continued to possess a firearm despite his prior violent felony conviction history and supervised release status. This gun-toter has clearly not learned his lesson, and will now be rightly punished and removed from our streets for 5 years."
The Memphis Police Department and Project Safe Neighborhoods Task Force investigated this case. The Project Safe Neighborhoods (PSN) initiative is 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. In 2017, PSN was reinvigorated as part of the Justice 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.
Assistant U.S. Attorney Wendy K. Cornejo and Special Assistant U.S. Attorney Joseph Griffith prosecuted this case on behalf of the government.
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Connecticut Contractor Charged with Paying BribesRead the Press Release
BOSTON – A Connecticut man was charged in connection with paying bribes to receive contracts for work at three collegiate institutions, including one located in Massachusetts.
Stephen Dinapoli, 40, of Wilton, Conn., was indicted on one count of conspiracy and two counts of bribery concerning programs receiving federal funds. Dinapoli was arraigned in federal court in Springfield this afternoon.
According to the indictment, Dinapoli was the principal of Big East Environmental, an environmental consulting firm, from 2013 to 2019. Floyd Young held positions involving facility maintenance at three collegiate institutions, including one located in Massachusetts. It is alleged that Young steered contracts for construction, repair, maintenance, and other work for the collegiate institutions to favored contractors, including Dinapoli, who paid him bribes, typically in the amount of 15% of the contract. Dinapoli allegedly paid bribes to Young in cash during face-to-face meetings. In addition, as Dinapoli received payment for work done at the collegiate institution, he paid Young bribes on a periodic basis.
Young was previously charged with conspiracy to receive bribes by agent of organization receiving federal funds, and is scheduled to plead guilty on Aug. 31, 2020.
On the charge of conspiracy, Dinapoli faces a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. For each count of paying bribes, Dinapoli faces a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling 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 Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Chinese National Charged with Destroying Hard Drive During FBI Investigation into the Possible Transfer of Sensitive Software to ChinaRead the Press Release
UPDATEPursuant to a motion by the government, the case against defendant Guan Lei described in the news release below was dismissed by the court on July 26,2021.
LOS ANGELES – A Chinese national and researcher at the University of California, Los Angeles has been arrested on federal charges of destroying evidence to obstruct an FBI investigation after he was observed throwing a damaged hard drive into a dumpster outside his apartment, the Justice Department announced today
Guan Lei, 29, of Alhambra, was arrested pursuant to a one-count criminal complaint unsealed this afternoon during his initial appearance in United States District Court.
The criminal complaint alleges that Guan, who was in the U.S. on a J-1 non-immigrant visa, threw a damaged hard drive into a trash dumpster near his residence on July 25. The FBI recovered the damaged hard drive after Guan was not allowed to board a flight to China and after Guan refused the FBI’s request to examine his computer. The affidavit in support of the complaint notes that the internal hard drive “was irreparably damaged and that all previous data associated with the hard drive appears to have been removed deliberately and by force.”
According to the complaint, Guan is being investigated for possibly transferring sensitive U.S. software or technical data to China’s National University of Defense Technology (NUDT) and falsely denying his association with the Chinese military – the People’s Liberation Army – in connection with his 2018 visa application and in interviews with federal law enforcement. Guan later admitted that he had participated in military training and wore military uniforms while at NUDT. One of Guan’s NUDT faculty advisors in China was also a lieutenant general in the PLA who developed computers used by the PLA General Staff Department, the PLA General Armament Department, Air Force, military weather forecasts, and nuclear technology. NUDT is “suspected of procuring U.S.-origin items to develop supercomputers with nuclear explosive applications” and has been placed on the Department of Commerce’s Entity List for nuclear nonproliferation reasons, according to the affidavit.
In addition to destroying the hard drive, the complaint alleges that Guan concealed digital storage devices from investigators and falsely told federal officials that he had not had any contact with the Chinese consulate during his nearly two-year stay in the U.S.
During his initial appearance this afternoon, Guan was ordered detained by a United States Magistrate Judge, who scheduled an arraignment for September 17.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The felony offense of destruction of evidence carries a statutory maximum sentence of 20 years in federal prison.
This case is being investigated by the FBI, Homeland Security Investigations, and U.S. Customs and Border Protection. The U.S. Department of State’s Diplomatic Security Service has provided substantial assistance during the investigation.
This case is being prosecuted by Assistant United States Attorneys Will Rollins and George Pence of the Terrorism and Export Crimes Section.
Chinese National Charged with Destroying Hard Drive During FBI Investigation into the Possible Transfer of Sensitive Software to ChinaRead the Press Release
UPDATE
The government dismissed all charges alleged in the indictment described in the press release below.
A Chinese national and researcher at the University of California, Los Angeles has been arrested on federal charges of destroying evidence to obstruct an FBI investigation after he was observed throwing a damaged hard drive into a dumpster outside his apartment, the Justice Department announced today.
Guan Lei, 29, of Alhambra, was arrested pursuant to a one-count criminal complaint unsealed this afternoon during his initial appearance in United States District Court.
The criminal complaint alleges that Guan, who was in the U.S. on a J-1 non-immigrant visa, threw a damaged hard drive into a trash dumpster near his residence on July 25. The FBI recovered the damaged hard drive after Guan was not allowed to board a flight to China and after Guan refused the FBI’s request to examine his computer. The affidavit in support of the complaint notes that the internal hard drive “was irreparably damaged and that all previous data associated with the hard drive appears to have been removed deliberately and by force.”
According to the complaint, Guan is being investigated for possibly transferring sensitive U.S. software or technical data to China’s National University of Defense Technology (NUDT) and falsely denying his association with the Chinese military – the People’s Liberation Army – in connection with his 2018 visa application and in interviews with federal law enforcement. Guan later admitted that he had participated in military training and wore military uniforms while at NUDT. One of Guan’s NUDT faculty advisors in China was also a lieutenant general in the PLA who developed computers used by the PLA General Staff Department, the PLA General Armament Department, Air Force, military weather forecasts, and nuclear technology. NUDT is “suspected of procuring U.S.-origin items to develop supercomputers with nuclear explosive applications” and has been placed on the Department of Commerce’s Entity List for nuclear nonproliferation reasons, according to the affidavit.
In addition to destroying the hard drive, the complaint alleges that Guan concealed digital storage devices from investigators and falsely told federal officials that he had not had any contact with the Chinese consulate during his nearly two-year stay in the U.S.
During his initial appearance this afternoon, Guan was ordered detained by a United States Magistrate Judge, who scheduled an arraignment for Sept. 17, 2020 .
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The felony offense of destruction of evidence carries a statutory maximum sentence of 20 years in federal prison.
This case is being investigated by the FBI, Homeland Security Investigations, and U.S. Customs and Border Protection. The U.S. Department of State’s Diplomatic Security Service has provided substantial assistance during the investigation.
This case is being prosecuted by Assistant U.S. Attorneys Will Rollins and George Pence of the Terrorism and Export Crimes Section.
Broken Arrow Woman Sentenced for Wire Fraud and Filing a False Tax ReturnRead the Press Release
A Broken Arrow woman was sentenced today in U.S. District Court for stealing $654,579 from her employer. Brandy Okey, 40, previously pleaded guilty to wire fraud and to signing a false tax return in March 2020.
Chief U.S. District Judge John E. Dowdell sentenced Okey to 41 months in federal prison to be followed by three years of supervised release. The Court further ordered the defendant pay $654,579 in restitution.
“Brandy Okey fraudulently pocketed more than $650,000 as chief financial officer when she embezzled from the Tulsa County Public Facilities Authority box office sales at Expo Square. Because of her greed, she now gets to spend more than three years in federal prison and pay back the ill-gotten funds to her employer,” said U.S. Attorney Trent Shores. “White collar criminals don’t get a pass for the financial fraud they inflict on businesses. Like all criminals, they will be met by a federal prosecutor to bring them to account for their crimes.”
In her position with Tulsa County Public Facilities Authority, Okey was responsible for accounting and financial management. Okey admitted that she used her access to the Expo Square box office cash collections to take cash funds. She then deposited a portion of the embezzled cash funds into personal bank accounts for her own use. Okey further used a portion of the cash funds to directly pay for personal expenses without depositing the funds. In order to conceal her scheme, Okey shredded the original deposit slips or prepared new slips showing a lower deposit amount. To further hide her scheme, Okey admitted that she did not accurately record box office collections on TCPFA financial statements. The fraudulent statements were emailed to the company’s Board of Directors.
Okey also admitted that she made and signed a false tax return for the year 2017 when she knowingly failed to report approximately $294,450 of income acquired through the scheme that year.
The FBI and IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Ryan M. Roberts prosecuted the case.
Bristow Man Charged with the Murder of His DaughterRead the Press Release
Adam Raymond Mason, 29, of Bristow, was charged today by criminal complaint with first degree murder in Indian Country following the death of his daughter, announced U.S. Attorney Trent Shores. A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
“The United States filed charges today alleging that a father punched, drowned, burned, and murdered his five-year-old daughter in Indian Country. This is heartbreaking. The alleged victim was set to start kindergarten next week,” said U.S. Attorney Trent Shores. “Now, it is time for our criminal justice system to go to work. The FBI, ATF, Creek County Sheriff’s Office, and Muscogee (Creek) Nation Lighthorse Tribal Police will continue their joint investigation. By rule, the United States Attorney’s Office will present this matter to a federal Grand Jury for their consideration as to whether probable cause exists to return an indictment. If so, then Assistant U.S. Attorney Ryan Roberts and I will prosecute the case to the fullest extent of the law and seek to prove to a jury the defendant’s guilt beyond a reasonable doubt. In the meantime, my team of victim specialists will work closely with the surviving family to ensure they are connected with appropriate resources as this case proceeds in federal court.”
According to court documents filed by an FBI agent, Mason, allegedly murdered his daughter on or about Aug. 25 and Aug. 26, 2020. The victim’s mother last spoke to her daughter the evening of Aug. 25 and became concerned about her daughter’s welfare when Mason allegedly refused to let her speak with her child on Aug. 26. Creek County deputies responded to 38187 West 311th St. South to check on the welfare of the girl and found the burned body of a child. Deputies took Mason into custody after they located him one mile west of his residence in Bristow.
A Muscogee (Creek) Nation Lightehorse investigator and the FBI agent interviewed Mason at the Creek County Sheriff’s Office where the defendant allegedly told the two that he believed his daughter was controlled by witchcraft. According to the affidavit, Mason then told investigators that he punched the victim, drowned her, then took her to a creek bed where he set her body on fire. Mason and his daughter are members of the Muscogee (Creek) Nation.
Mason was taken into custody by the U.S. Marshals Service and is expected to make an initial appearance today at 2 pm in U.S. District Court.
The FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Muscogee (Creek) Nation Lighthorse Tribal Police, and the Creek County Sheriff’s Office are conducting the investigation. U.S. Attorney Trent Shores and Assistant U.S. Attorney Ryan Roberts are prosecuting the case.
Bluefield Doctor Pleads Guilty to MisbrandingRead the Press Release
ABINGDON, Va. – Phillip Peterson, a family medicine physician in Bluefield Virginia, pleaded guilty this week in U.S. District Court in Abingdon to misbranding for a two-year pattern of prescribing Schedule II controlled substances to patients to what his office staff called “back door patients.” United States Attorney Thomas T. Cullen announced the guilty plea.
Peterson, 64, pleaded guilty earlier this week to a misdemeanor charge of misbranding. A drug is deemed misbranded if it is caused to be dispensed without a valid prescription. A prescription issued outside the usual course of professional practice is not valid. As part of his plea agreement, Peterson will serve one to three months in prison.
According to court documents, between December 2014 and January 2016, Peterson was a family medicine physician at Bluefield Family Medicine in Bluefield, Va. During this time, Peterson saw patients who did not check in with the receptionist and rather entered through the side door. Office staff called these patients “back door patients.” These patients came through the side door to pick-up Schedule II controlled substances prescriptions, which they had received from Peterson for years. These “back door patients” were not actually examined by Dr. Peterson each time they picked up prescriptions and did not pay for office visits.
Evidence showed that each of the prescriptions listed for the “back door patients” was issued outside the usual course of professional practice.
Dr. Peterson also had at least one patient who brought lists of prescriptions to the front desk of Bluefield Family Medicine for the receptionist to give to Dr. Peterson or his nurse. Dr. Peterson authorized those prescriptions, including prescriptions for Schedule II controlled substances, on occasion without the patient actually being seen or evaluated by Dr. Peterson. Evidence showed that these prescriptions were issued outside the usual course of professional practice.
The investigation of the case was conducted by Drug Enforcement Administration’s Tactical Diversion Squad. Assistant United States Attorneys Lena Busscher, Whit D. Pierce and Randy Ramseyer are prosecuting the case for the United States.
Billings leader of large methamphetamine organization sentenced to eight years in prisonRead the Press Release
BILLINGS — A Billings woman who admitted heading a large methamphetamine distribution ring after investigators seized six pounds of the drug at her home and another location was sentenced today to eight years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Jamie Juwann Ady, 42, also known as Jamie Ady Alatorre, pleaded guilty in October to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
The prosecution said in court documents that in November 2018, agents with the Eastern Montana High Intensity Drug Trafficking Area Task Force identified a large-scale meth trafficking organization that was bringing meth into Montana. Ady headed this organization and worked with other co-conspirators.
Agents executed a search warrant on Ady's residence and a secondary location in Laurel where Ady stored some of the drugs and seized approximately six pounds of meth. Ady admitted in an interview to being a meth distributor and said that she and another person had just returned from Las Vegas and Phoenix where they picked up four bundles of meth, each containing about 1.5 pounds, from a source. Six pounds of meth is the equivalent of about 21,744 doses.
Assistant U.S. Attorney Colin Rubich investigated the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force and FBI Western Transnational Organized Crime Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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American Man Indicted on Charges of Exploiting Children in LaosRead the Press Release
An American man was indicted today in connection with exploiting teenage boys in Laos.
Michael Sebastian, 52, was indicted on three counts of engaging in illicit sexual conduct in foreign places and three counts of sex trafficking of children. Sebastian was charged by criminal complaint and arrested on July 7, 2020 in Lynn, Massachusetts. Sebastian was released on conditions including home incarceration in Ashby following a detention hearing on July 31, 2020.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Andrew E. Lelling of the District of Massachusetts, and Special Agent in Charge Joseph R. Bonavolonta of the FBI’s Boston Field Office made the announcement.
According to the charging documents, Sebastian was living in Laos, where he taught English to Laotian youth. During at least the past two years, Sebastian provided housing to at least three boys, aged 13 to 18, to whom he taught English. In lieu of paying rent to live with him, Sebastian allegedly allowed the boys to pay off their rent by performing chores. According to the charging documents, these chores included giving Sebastian massages – which, in turn, included masturbating Sebastian.
The FBI’s Washington D.C. Field Office and the Bangkok, Thailand Field Office provided assistance with the investigation. Trial Attorney Leslie Fisher of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Anne Paruti, U.S. Attorney Lelling’s Project Safe Childhood Coordinator, are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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.
American Man Indicted on Charges of Exploiting Children in LaosRead the Press Release
BOSTON – An American man was indicted yesterday in connection with exploiting teenage boys in Laos.
Michael Sebastian, 52, was indicted on three counts of engaging in illicit sexual conduct in foreign places and three counts of sex trafficking of children. Sebastian was charged by criminal complaint and arrested on July 7, 2020 in Lynn. Sebastian was released on conditions including home incarceration at a residence in Ashby following a detention hearing on July 31, 2020.
According to the charging documents, Sebastian was living in Laos, where he taught English to Laotian youth. During at least the past two years, Sebastian provided housing to at least three boys, aged 13-18, to whom he taught English. In lieu of paying rent to live with him, Sebastian allegedly allowed the boys to pay off their rent by performing chores. According to the charging documents, these chores included giving Sebastian massages – which, in turn, included masturbating Sebastian.
The charge of engaging in illicit sexual conduct in foreign places provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $250,000. The charge of sex trafficking of children provides for a mandatory minimum sentence of 10 years (and 15 years where the minor victim is under 14 years of age) and up to life in prison, five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Acting Assistant Attorney General for the Justice Department’s Criminal Division Brian C. Rabbitt; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. The FBI’s Washington DC Field Office and the Bangkok, Thailand Field Office provided assistance with the investigation. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood coordinator, and Leslie Fisher, a Trial Attorney in the Justice Department’s Child Exploitation and Obscenity Section, are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Acting U.S. Attorney Announces Extradition of British Citizen for Operating an International Money Laundering and Fraud NetworkRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that HABEEB AUDU, a/k/a “Dickson,” a dual citizen of the United Kingdom and Nigeria, was extradited today from the United Kingdom. AUDU was charged with participation in a series of fraud schemes from at least in or about 2013 until at least April 2019, involving the theft and laundering of more than $2 million. AUDU was arrested in London, England, on June 26, 2019, on a provisional arrest warrant, and is the fourth defendant charged in this case. AUDU is expected to be presented on Monday, August 31, before U.S. Magistrate Judge James L. Cott. AUDU’s case is assigned to U.S. District Judge Katherine Polk Failla.
Acting U.S. Attorney Audrey Strauss said: “As alleged, Habeeb Audu played a key role in an international fraud conspiracy that victimized businesses and individuals by using stolen identities and social engineering to access victims’ bank accounts, and by engaging in business email compromise schemes. Thanks to the FBI and our international partners, including the Italian National Police, Audu is now in U.S. custody and facing charges in this District.”
FBI Assistant Director William F. Sweeney Jr. said: “Today’s indictment outlines the alleged fraudulent conduct of Habeeb Audu and other conspirators who, over the course of nearly six years, robbed the bank accounts of both individuals and businesses here in the United States, sometimes from locations nearly halfway across the world. Using traditional spoofing techniques and business email compromise schemes, these crimes collectively brought in more than $2 million in proceeds. While today’s charges bring about a victory in this case, let it be a warning to the public to remain extra vigilant with respect to their personal and professional finances. The market is unfortunately rife with this type of crime.”
According to the allegations in the Indictment unsealed today[1]:
From at least 2013 through in or about 2018, AUDU and various other conspirators (collectively, the “Conspirators”), located in countries including the United States, Canada, Italy, the United Kingdom, and the United Arab Emirates, were involved in a scheme to fraudulently access individuals’ and corporations’ bank accounts and to conduct financial transactions using those bank accounts without the knowledge or authority of the accounts’ legitimate owners (the “Bank Scheme”). As part of the Bank Scheme, the Conspirators placed thousands of calls to various United States banks, holding themselves out as legitimate accountholders of particular targeted bank accounts and using the stolen personal identifying information belonging to those accountholders. Using a particular telephone number “spoofing” service, and voice-altering technology, the Conspirators would deceive bank representatives into believing that the Conspirators were actual accountholders. In so doing, they convinced multiple U.S. banks to, among other things: move money from a victim’s savings account to the victim’s checking account (so that the Conspirators could more easily access the funds and conduct unauthorized transactions); falsely note on the account that the accountholder was traveling abroad (making the bank less likely to void suspicious international transactions made by the Conspirators); have “replacement” credit cards mailed to international addresses controlled by the Conspirators (whereupon the Conspirators could use them to make unauthorized purchases); and authorize foreign purchases made by the Conspirators.
AUDU, from at least December 2018 through April 2019, was also involved in separate schemes to defraud United States-based businesses and banks by means of business email compromise schemes (the “BEC Fraud Schemes”). For example, AUDU defrauded an Ohio-based restaurant chain (the “Restaurant Victim”) into wiring nearly $2 million to a bank account controlled by AUDU’s co-conspirators (the “AUDU Account”). He did so by tricking the Restaurant Victim into believing that one of its legitimate vendors had changed bank accounts to the AUDU Account, such that payments for the vendor’s services were made to the AUDU Account. These funds were thereafter quickly withdrawn from the AUDU Account and dispersed to other accounts controlled by AUDU and his co-conspirators.
Thereafter, in connection with an FBI undercover operation, AUDU and others each agreed, for a substantial fee, to launder moneys that they believed to be fraud proceeds, through bank accounts controlled by AUDU and his co-conspirators. In doing so, AUDU and his co-conspirators agreed to conceal the nature of those purportedly fraudulent proceeds.
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AUDU, 53, of the United Kingdom and Nigeria, is charged with one count of conspiracy to commit bank and wire fraud, which carries a maximum sentence of 30 years in prison; four counts of conspiracy to commit money laundering and money laundering, each of which carries a maximum of 20 years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison, to be served consecutively to any other sentence. 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.
Other defendants charged in this case include Abdulai Kennedy Saaka, a/k/a “Kenny,” of Atlanta, Georgia, who pled guilty to one count of money laundering conspiracy in January 2020; Alade Kazeem Sodiq, a/k/a “Eluku,” a citizen of the United Arab Emirates, whose case remains pending; and Dominic Francis Labiran, a citizen of the United Kingdom, who remains at large.
Ms. Strauss praised the outstanding investigative work of the FBI. She also thanked United States Customs and Border Protection, Italian judicial law enforcement authorities, including the Prosecutor of the Republic of Naples and the Servizio Centrale Operativo of the Italian National Police, the Metropolitan Police Service, London, United Kingdom, and the United Kingdom’s Crown Prosecution Service for their assistance in this case. The U.S. Department of Justice’s Office of International Affairs of the Department’s Criminal Division provided significant assistance in securing the defendant’s extradition from the United Kingdom.
The prosecution of this case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Kiersten A. Fletcher, Jonathan E. Rebold, and Andrew A. Rohrbach are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Thursday 27 August 2020
Whiting Mayor Charged with Wire and Tax Fraud and Enters into Agreement to Plead GuiltyRead the Press Release
HAMMOND – Joseph Stahura, age 64, of Whiting, Indiana, was charged with wire fraud and filing a false income tax return, announced U.S. Attorney Thomas L. Kirsch II. He has entered into a plea agreement indicating his intent to plead guilty to both charges. His wife, Diane Stahura, age 64, also of Whiting, Indiana entered into a deferred prosecution agreement wherein she acknowledges that the Government has sufficient evidence to charge her with wire fraud.
United States Attorney Thomas L. Kirsch II said,
“Today’s charges and guilty plea are another black eye for Northwest Indiana. Mr. Stahura, an elected official for over 35 years, illegally used his campaign funds for personal activities and expenditures and lied about it on his publically filed campaign reports and tax returns. He knew his conduct was illegal, yet he persisted in it for over 5 years.
“My office has a long history of aggressively pursuing public corruption cases on behalf of the honest citizens of our community. That will continue as long as I am US Attorney. While most elected officials serve the public professionally and honestly, some do not. Those who seek illegal personal gain by virtue of their public office will be held accountable.
“If you have information concerning corrupt public officials, I encourage you to call my office or the FBI.”
According to documents in the case, Mr. Stahura, the Mayor of Whiting, Indiana since 2004, and his wife used his campaign fund for personal expenditures, like gambling, credit card debt and providing financial support to an adult daughter. Mr. Stahura has been the Mayor of Whiting since 2004 and prior to that he served as a Whiting City Councilman for 20 years. He was also the Chairman and Treasurer of his campaign committee entitled “Committee to Elect Joe Stahura” (“Committee”).
From February 2014 through 2019, Mr. and Mrs. Stahura used approximately $255,000 of funds from the “Committee” for personal purposes, while disguising the activity by filing campaign reports with false and misleading information and by omitting material information from the reports. To further defraud, they sought donations from individuals and entities, and held fund raising events to raise money for the “Committee”. Mrs. Stahura transferred money from the “Committee’s” bank account to the Stahuras’ personal bank account, which were then used the funds to pay personal bills, provide support for their daughter and gamble at casinos. To further the scheme, on multiple occasions between 2014 and 2019, Joe Stahura filed false and misleading campaign finance reports with the Board of Elections which omitted information about the personal use of the campaign funds that had been occurring from 2014 through November 2019.
In April 2019, Mr. Stahura filed a false tax return. He falsely listed his gross income, not accounting for the amount stolen from the Campaign Account in 2018 which was approximately $51,480. Additionally, on his campaign finance report he overstated the “loan repayment amount” to his campaign by approximately $40,000.
Indiana campaign finance law restricted the use of money contributed to a campaign committee. Candidates could use committee money to pay expenses reasonably related to a campaign for political office, continuing political activity, and activity related to service in elected office. Candidates could not use committee money for a primarily personal purpose or commingle personal funds with campaign funds. Indiana campaign finance law also required campaign committees to regularly file public reports using a state form containing instructions including “WARNING: Using campaign funds for primarily personal purposes is prohibited.” Reports had to itemize each expenditure above $100, name the recipient and state a purpose. These reports provided citizens with a record of the expenditure of campaign funds, provided donors with a measure of accountability regarding the funds, and assisted voters in making informed decisions at the polls.
Mr. Stahura entered into a plea agreement, which has been filed with the court, to resolve the criminal charges. If this signed plea agreement is accepted by the court, the length of sentence and amount of restitution will be determined by the court at a sentencing hearing after consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
“Public corruption continues to be a high priority for IRS Criminal Investigation”, stated Special Agent in Charge Kathy A. Enstrom of the IRS Criminal Investigation, Chicago Field Office. “Public officials stealing campaign funds for personal purposes is an unacceptable practice and IRS Criminal Investigation will be there to uncover the fraud and tax evasion in order to bring the dishonest officials to justice.”
“Public corruption is the top criminal investigative priority for the FBI. The American people and the FBI do not tolerate public officials who use their position for private gain. Public corruption erodes the trust constituents put in their elected officials and undermines the integrity of government,” said Special Agent in Charge Paul Keenan, FBI Indianapolis. “The FBI and our partner law enforcement agencies will continue our mission to root out fraud and corruption in all forms and serve our communities."
This case is being investigated by the Internal Revenue Service, Criminal Investigation Division and the Federal Bureau of Investigation, both members of the US Attorney’s Public Corruption Task Force. The case is being prosecuted by Assistant U.S. Attorneys Philip Benson and Gary Bell.
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Westville Woman Ordered to Pay $708,971.93 in RestitutionRead the Press Release
HAMMOND-Debra McCall, 46, of Westville, Indiana was sentenced by U.S. District Court Judge Theresa L. Springmann upon her guilty plea to bank fraud and filing a false tax return, announced U.S. Attorney Kirsch.
McCall was sentenced to 27 months in prison, 2 years of supervised release to include 6 months of home confinement and ordered to pay $708,971.93 in restitution.
“Ms. McCall took advantage of her employer’s trust for her own selfishness,” said United States Attorney Thomas L. Kirsch II. “Many small businesses operate on a thin margin and pilfering money from employers could cause severe financial issues, disrupting the lives of many who rely on those businesses for their livelihoods. My Office and our federal partners take these crimes seriously and will continue to prosecute schemes like these throughout the District.”
According to documents in the case, McCall, while employed as a bookkeeper for a small local sales company, used her position of trust to steal more than $700,000 from her employer during a three year period. She devised and executed a scheme to embezzle money from her employer’s accounts by using her knowledge of the bookkeeping and accounting software. She created and printed checks drawn on the company’s accounts. She made the checks payable to her boyfriend and forged the manager’s signature on each check. She then canceled the checks in the accounting system and balanced the company’s books by incorporating the amounts she took into other entries to avoid detection. McCall admitted that she stole the money and gambled it away.
“As we often see in embezzlement cases, the victims are not only the taxpayers, but also the individuals and entities who suffer the financial harm”, stated Special Agent in Charge Kathy A. Enstrom of the IRS Criminal Investigation, Chicago Field Office. "We would like the taxpayers to take notice that today’s 27-month sentence of Debra McCall resulted in serious prison time because she misused her position of trust at her company by embezzling company funds and failing to report the funds on her income tax return.”
“Ms. McCall thought she could use her position of trust in the office and her access to company funds for her own personal benefit. But, instead, her greed and self-interest means she is headed to prison for her crime,” said Special Agent in Charge Paul Keenan, FBI Indianapolis. “The FBI and our law enforcement partners will continue to aggressively investigate those who abuse their positions and hold them accountable.”
This case is the result of the investigative efforts of the Internal Revenue Service, Criminal Investigation Division and the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Alexandra McTague.
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Waterloo Man to Spend Seven Years in Prison for Possessing a Sawed-Off Shotgun after Multiple Felony ConvictionsRead the Press Release
A man who possessed a sawed-off shotgun was sentenced today to seven years in federal prison.
Levi Farren Miller, age 30, from Waterloo, Iowa, received the prison term after a January 7, 2020 guilty plea to being a felon in possession of a firearm.
Evidence at sentencing hearing showed that Miller displayed a sawed-off shotgun while in a heated disagreement with a neighbor regarding the neighbor moving Miller’s items off the neighbor’s porch. Miller, a white male, used racially charged language during the confrontation. Miller had previously been convicted of multiple felonies, including burglary twice, theft twice, attempted burglary, and conspiracy to manufacture methamphetamine.
Miller was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Miller was sentenced to 84 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support our Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
Miller is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Waterloo Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-cr-02031.
Follow us on Twitter @USAO_NDIA.
Vienna Man Pleads Guilty to Tax FraudRead the Press Release
Defendant fraudulently obtained over $267,000 by underreporting his income to the IRS
CHARLESTON, W.Va. – Timothy Nolan, 58, of Vienna, pled guilty to the felony offense of tax fraud, announced United States Attorney Mike Stuart. Nolan faces up to three years in prison, a $250,000 fine and one year of supervised release when he is sentenced on November 23, 2020. He also will be subject to an order of restitution for $267,786.42, with the final determination to be made by the court at sentencing.
“Nolan schemed and defrauded the IRS for several years to the tune of more than $267,000,” said United States Attorney Mike Stuart. “Up to three years in a federal prison, a $250,000 fine and full restitution of nearly $268,000. Tax obligations are not voluntary. No one likes paying taxes but tax payments are not optional.”
Nolan admitted that he would underreport his income on his personal income taxes. Specifically, in 2015, he reported to the IRS he had a taxable income of $17,788 when he actually had a taxable income of over $200,000. When Nolan fraudulently reported his income, he verified through a written declaration that was filed under the penalty of perjury that the return was accurate. Nolan significantly underreported his personal income for the tax years 2013 through 2016, and signed declarations to the IRS to that effect. Nolan also underpaid his employment taxes (Form 941) for his employees from 2013 through 2017 and did not pay workers compensation premiums for unreported and underreported wages. Nolan admitted the total amount of income wrongfully withheld was $267,778.42.
The investigation was conducted by the Department of the Treasury, the Internal Revenue Service-Criminal Investigation (IRS-CI), the United States Department of Justice Tax Division and the West Virginia Office of the Insurance Commissioner.
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Erik S. Goes is 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-00136.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Uxbridge Doctor Pleads Guilty to Conspiring to Distribute AdderallRead the Press Release
BOSTON – An Uxbridge doctor pleaded guilty yesterday to conspiring to prescribe an amphetamine for reasons other than legitimate medical purposes.
Leslie Caraceni M.D., 58, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute Adderall and three counts of distributing and dispensing Adderall. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Dec. 15, 2020.
Caraceni was indicted in November 2018 with Rene Ruliera, 52, of Southborough, who pleaded guilty in August 2019 and is scheduled to be sentenced on Sept. 8, 2020. Co-conspirator Meghan Giacomuzzi, 37, of Whitinsville, pleaded guilty in February 2019 and is scheduled to be sentenced on Nov. 17, 2020.
Between March 2016 and February 2018, Caraceni, Ruliera and Giacomuzzi conspired to distribute Adderall, an amphetamine, for reasons other than for a legitimate medical purpose and not in the usual course of medical practice. Caraceni hired both Ruliera and Giacomuzzi to work at her medical practice in Framingham and later in Whitinsville, and enlisted both in a conspiracy to sell and distribute Adderall to individuals who had not been medically examined or given a clinical diagnosis to warrant a prescription. Office visitors met with either Ruliera or Giacomuzzi, discussed their desired prescription, paid for their office visit and left with a signed prescription for Adderall. Office visits lasted just minutes and each such visit cost approximately $200, payable in cash or through a credit card or debit card. Caraceni collected the cash from the office or received funds through deposits to her bank account.
Caraceni provided Ruliera and Giacomuzzi with blank prescription pads and explained how to fill out prescriptions for sale. Electronic communications between Caraceni, Ruliera and Giacomuzzi documented Caraceni’s knowledge of the prescriptions written by Ruliera and Giacomuzzi, the number of office visitors seen in her absence and the profits resulting from their sale of prescriptions to those visitors. Between November 2015 and July 2018, records from the Massachusetts Prescription Monitoring Program show that well over 1,500 prescriptions for Adderall—amounting to over 110,000 pills—were filled in Massachusetts based on Caraceni’s prescriptions.
Each charge provides a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Uxbridge Police Chief Marc Montminy; and Southborough Police Chief Kenneth Paulhus made the announcement. Assistant U.S. Attorney Craig Estes of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Upshur County man admits to making a bombRead the Press Release
ELKINS, WEST VIRGINIA – William John Clark, of Buckhannon, West Virginia, has admitted to a firearms charge, U.S. Attorney Bill Powell announced.
Clark, age 62, pled guilty to one count of “Making a Destructive Device.” Clark admitted to making an explosive bomb, which wasn’t registered as required by law. The crime occurred in March 2020 in Upshur County.
Clark faces at up to 10 years of incarceration and a fine of up to $10,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Upshur County Sheriff’s Office investigated.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information, please see https://www.justice.gov/projectguardian.
U.S. Magistrate Judge Michael John Aloi presided.
United States Settles Suit Against Two Additional Responsible Parties for the Release of Mercury in the Village of Rye BrookRead the Press Release
Audrey Strauss, Acting United States Attorney for the Southern District of New York, and Peter D. Lopez, Regional Administrator of the U.S. Environmental Protection Agency (“EPA”), announced today that the United States has filed a civil lawsuit against CYTEC INDUSTRIES, INC. (“Cytec”) and KEYSPAN GAS EAST CORPORATION d/b/a NATIONAL GRID (“National Grid”) (collectively, the “Defendants”), and has simultaneously filed a consent decree settling the lawsuit. In the complaint, brought pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. §§ 9601-9675 (“CERCLA”) – commonly known as the Superfund statute – the United States alleged that the Defendants arranged for the disposal or treatment of mercury by Port Refinery, Inc. (“Port Refinery”), a mercury refining business in the Village of Rye Brook, New York, which led to releases of mercury into the environment. Through the lawsuit, EPA sought to collect the costs that it has incurred since April 2004 in connection with its clean-up of mercury at the Port Refinery Superfund Site (the “Site”) in the Village of Rye Brook in Westchester County, New York. The consent decree, which provides for a combined payment of $142,653 by the Defendants, has been lodged with the District Court for a period of at least 30 days, after which it will be submitted for the Court’s approval.
Acting United States Attorney Audrey Strauss said: “Both Cytec and National Grid contributed to contamination in a residential community by arranging for the treatment or disposal of toxic mercury, and now they are each paying a share of the costs they have imposed on the community. This Office will continue to hold responsible parties accountable for their share of the costs at the Site.”
Regional Administrator Peter D. Lopez said: “These companies sent mercury-containing materials to this site where they were improperly handled, resulting in mercury being released into the environment and putting people in the area at risk. Thankfully, EPA was able to take action to address the risk, and this settlement holds the companies accountable, ensuring that taxpayers don’t bear the full burden of the cleanup at this site.”
As alleged in the complaint filed yesterday in White Plains federal District Court, each of the Defendants arranged for the sale and transport of used or scrap mercury, or mercury-containing products, directly or indirectly to Port Refinery. Port Refinery then processed these materials as part of a mercury refining business it operated out of a residence in Rye Brook, New York. Port Refinery’s treatment and processing of the scrap mercury sent by the Defendants and other parties led to extensive releases of mercury, a hazardous substance, requiring two separate clean-up actions by EPA. In connection with the second clean-up, which began in 2004, EPA has incurred costs at the Site for a variety of investigative and removal activities, including, among other things, excavating and disposing of more than 9,300 tons of mercury-contaminated soil from the Site.
In the consent decree filed yesterday, the Defendants admit and accept responsibility for the following:
- EPA has determined that from the 1970s through the early 1990s, Port Refinery engaged in, among other things, the business of mercury reclaiming, refining, and processing.
- Port Refinery operated in the Village of Rye Brook out of a two-story garage bordered by private residences on its south, east, and west sides.
- EPA has determined that Port Refinery took virtually no environmental precautions or safety measures during its mercury refinement process.
- EPA has determined that Port Refinery released a significant amount of mercury into the environment, contaminating the Site.
- EPA has determined that mercury from the Defendants’ mercury-containing products was comingled at the Site and contributed to the mercury released into the environment.
- Defendants delivered materials containing scrap mercury to Port Refinery during its period of operations.
Pursuant to the consent decree, the Defendants will pay a total of $142,653 in costs incurred by EPA, consisting of $93,076 to be paid by Cytec, and $49,577 to be paid by National Grid.
* * *
This lawsuit is the United States’ fifth lawsuit against responsible parties to recover clean-up costs for the second clean-up at the Site. Prior to this settlement, the United States had recovered $827,229 from other responsible parties. The United States is continuing to pursue its claims against additional potentially responsible parties.
The consent decree will be lodged with the District Court for a period of at least 30 days before it is submitted for the Court’s approval, to provide public notice and to afford members of the public the opportunity to comment on the consent decree.
This case is being handled by the Office’s Environmental Protection Unit. Assistant U.S. Attorney Anthony J. Sun is in charge of the case.
United States Files Complaint to Forfeit 280 Cryptocurrency Accounts Tied to Hacks of Two Exchanges by North Korean ActorsRead the Press Release
The Justice Department today filed a civil forfeiture complaint detailing two hacks of virtual currency exchanges by North Korean actors. These actors stole millions of dollars’ worth of cryptocurrency and ultimately laundered the funds through Chinese over-the-counter (OTC) cryptocurrency traders. The complaint follows related criminal and civil actions announced in March 2020 pertaining to the theft of $250 million in cryptocurrency through other exchange hacks by North Korean actors.
“Today’s action publicly exposes the ongoing connections between North Korea’s cyber-hacking program and a Chinese cryptocurrency money laundering network,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “This case underscores the department’s ongoing commitment to counter the threat presented by North Korean cyber hackers by exposing their criminal networks and tracing and seizing their ill-gotten gains.”
“Today, prosecutors and investigators have once again exemplified our commitment to attribute national security cyber threats, to impose costs on these actors, and bring some measure of relief to victims of malicious cyber activities,” said Assistant Attorney General John C. Demers of the Justice Department’s National Security Division. “Although North Korea is unlikely to stop trying to pillage the international financial sector to fund a failed economic and political regime, actions like those today send a powerful message to the private sector and foreign governments regarding the benefits of working with us to counter this threat.”
“As part of our commitment to safeguarding national security, this office has been at the forefront of targeting North Korea’s criminal attacks on the financial system,” said Acting U.S. Attorney Michael R. Sherwin of the District of Columbia. “This complaint reveals the incredible skill of our Cryptocurrency Strike Force in tracing and seizing virtual currency, which criminals previously thought to be impossible.”
“Despite the highly sophisticated laundering techniques used, IRS-CI’s Cybercrimes Unit was able to successfully trace stolen funds directly back to North Korean actors,” said Don Fort, Chief of IRS Criminal Investigation (IRS-CI). “IRS-CI will continue to collaborate with its law enforcement partners to combat foreign and domestic operations that threaten the United States financial system and national security.”
“FBI efforts to stop the flow of threat finance around the world are central to our strategy to address transnational crime,” said Assistant Director Calvin A. Shivers of the FBI’s Criminal Investigative Division. “This strategy is strengthened by the skills and expertise we continue to develop in virtual asset investigations such as this, which enable the FBI and our partners to identify and seize illicit assets.”
“As North Korea becomes bolder and more desperate in their efforts to steal money using sophisticated money laundering techniques, HSI will continue to apply pressure by exposing their fraudulent transactions,” said Special Agent in Charge Steven Cagen of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Denver. “We are committed to safeguarding the interest of the United States against the criminal elements in North Korea to protect the integrity of the cyber financial system.”
“At U.S. Cyber Command, we leverage a persistent engagement approach to challenge our adversaries’ actions in cyberspace,” said Brigadier General Joe Hartman, Commander of the Cyber National Mission Force. “This includes disrupting North Korean efforts to illicitly generate revenue. Department of Defense cyber operations do not occur in isolation. Persistent engagement includes acting through cyber-enabled operations as much as it does sharing information with our interagency partners to do the same.”
“Today’s complaint demonstrates that North Korean actors cannot hide their crimes within the anonymity of the internet. International cryptocurrency laundering schemes undermine the integrity of our financial systems at a global level, and we will use every tool in our arsenal to investigate and disrupt these crimes,” said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office. “The FBI will continue to impose risks and consequences on criminals who seek to undermine our national security interests.”
The forfeiture complaint filed today details two related hacks of virtual currency exchanges.
As alleged in the complaint, in July 2019, a virtual currency exchange was hacked by an actor tied to North Korea. The hacker allegedly stole over $272,000 worth of alternative cryptocurrencies and tokens, including Proton Tokens, PlayGame tokens, and IHT Real Estate Protocol tokens. Over the subsequent months, the funds were laundered through several intermediary addresses and other virtual currency exchanges. In many instances, the actor converted the cryptocurrency into BTC, Tether, or other forms of cryptocurrency – a process known as “chain hopping” – in order to obfuscate the transaction path. As detailed in the pleadings, law enforcement was nonetheless able to trace the funds, despite the sophisticated laundering techniques used.
As also alleged in the pleadings, in September 2019, a U.S.-based company was hacked in a related incident. The North Korea-associated hacker gained access to the company’s virtual currency wallets, funds held by the company on other platforms, and funds held by the company’s partners. The hacker stole nearly $2.5 million and laundered it through over 100 accounts at another virtual currency exchange.
The funds from both of the above hacks, as well as hacks previously detailed in a March 2020 forfeiture action (1:20-cv-00606-TJK), were all allegedly laundered by the same group of Chinese OTC actors. The infrastructure and communication accounts used to further the intrusions and fund transfers were also tied to North Korea.
The claims made in this complaint are only allegations and do not constitute a determination of liability. The burden to prove forfeitability in a civil forfeiture proceeding is upon the government.
The investigation was conducted by IRS-CI’s Washington, D.C. Cyber Crimes Unit, the FBI’s Chicago and Atlanta Field Offices, and HSI’s Colorado Springs Office with additional support from the FBI’s San Francisco Field Office. Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section, Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section and Assistant U.S. Attorneys Zia M. Faruqui, Jessi Camille Brooks, and Christopher Brown are prosecuting the case, with assistance from Supervisory Paralegal Specialist Elizabeth Swienc and Legal Assistant Jessica McCormick.
Support to this effort was provided by FBI’s San Francisco Field Office and the U.S. Attorney’s Office of the Northern District of Georgia.
Support to this effort was also provided by United States Cyber Command. More information about the command’s efforts to combat North Korean and other malware activity can be found on Twitter and VirusTotal.
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.
United States Files Complaint to Forfeit 280 Cryptocurrency Accounts Tied to Hacks of Two Exchanges by North Korean ActorsRead the Press Release
WASHINGTON – The Justice Department today filed a civil forfeiture complaint detailing two hacks of virtual currency exchanges by North Korean actors. These actors stole millions of dollars’ worth of cryptocurrency and ultimately laundered the funds through Chinese over-the-counter (OTC) cryptocurrency traders. The complaint follows related criminal and civil actions announced in March 2020 pertaining to the theft of $250 million in cryptocurrency through other exchange hacks by North Korean actors.
“As part of our commitment to safeguarding national security, this office has been at the forefront of targeting North Korea’s criminal attacks on the financial system,” said Acting U.S. Attorney Michael R. Sherwin of the District of Columbia. “This complaint reveals the incredible skill of our Cryptocurrency Strike Force in tracing and seizing virtual currency, which criminals previously thought to be impossible.”
“Today’s action publicly exposes the ongoing connections between North Korea’s cyber-hacking program and a Chinese cryptocurrency money laundering network,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “This case underscores the department’s ongoing commitment to counter the threat presented by North Korean cyber hackers by exposing their criminal networks and tracing and seizing their ill-gotten gains.”
“Today, prosecutors and investigators have once again exemplified our commitment to attribute national security cyber threats, to impose costs on these actors, and bring some measure of relief to victims of malicious cyber activities,” said Assistant Attorney General John C. Demers of the Justice Department’s National Security Division. “Although North Korea is unlikely to stop trying to pillage the international financial sector to fund a failed economic and political regime, actions like those today send a powerful message to the private sector and foreign governments regarding the benefits of working with us to counter this threat.”
“Despite the highly sophisticated laundering techniques used, IRS-CI’s Cybercrimes Unit was able to successfully trace stolen funds directly back to North Korean actors,” said Don Fort, Chief of IRS Criminal Investigation (IRS-CI). “IRS-CI will continue to collaborate with its law enforcement partners to combat foreign and domestic operations that threaten the United States financial system and national security.”
“FBI efforts to stop the flow of threat finance around the world are central to our strategy to address transnational crime,” said Assistant Director Calvin A. Shivers of the FBI’s Criminal Investigative Division. “This strategy is strengthened by the skills and expertise we continue to develop in virtual asset investigations such as this, which enable the FBI and our partners to identify and seize illicit assets.”
“As North Korea becomes bolder and more desperate in their efforts to steal money using sophisticated money laundering techniques, HSI will continue to apply pressure by exposing their fraudulent transactions,” said Special Agent in Charge Steven Cagen of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Denver. “We are committed to safeguarding the interest of the United States against the criminal elements in North Korea to protect the integrity of the cyber financial system.”
“At U.S. Cyber Command, we leverage a persistent engagement approach to challenge our adversaries’ actions in cyberspace,” said Brigadier General Joe Hartman, Commander of the Cyber National Mission Force. “This includes disrupting North Korean efforts to illicitly generate revenue. Department of Defense cyber operations do not occur in isolation. Persistent engagement includes acting through cyber-enabled operations as much as it does sharing information with our interagency partners to do the same.”
"Today’s complaint demonstrates that North Korean actors cannot hide their crimes within the anonymity of the internet. International cryptocurrency laundering schemes undermine the integrity of our financial systems at a global level, and we will use every tool in our arsenal to investigate and disrupt these crimes," said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office. “The FBI will continue to impose risks and consequences on criminals who seek to undermine our national security interests.”
The forfeiture complaint filed today details two related hacks of virtual currency exchanges.
As alleged in the complaint, in July 2019, a virtual currency exchange was hacked by an actor tied to North Korea. The hacker allegedly stole over $272,000 worth of alternative cryptocurrencies and tokens, including Proton Tokens, PlayGame tokens, and IHT Real Estate Protocol tokens. Over the subsequent months, the funds were laundered through several intermediary addresses and other virtual currency exchanges. In many instances, the actor converted the cryptocurrency into BTC, Tether, or other forms of cryptocurrency – a process known as “chain hopping” – in order to obfuscate the transaction path. As detailed in the pleadings, law enforcement was nonetheless able to trace the funds, despite the sophisticated laundering techniques used.
As also alleged in the pleadings, in September 2019, a U.S.-based company was hacked in a related incident. The North Korea-associated hacker gained access to the company’s virtual currency wallets, funds held by the company on other platforms, and funds held by the company’s partners. The hacker stole nearly $2.5 million and laundered it through over 100 accounts at another virtual currency exchange.
The funds from both of the above hacks, as well as hacks previously detailed in a March 2020 forfeiture action (1:20-cv-00606-TJK), were all allegedly laundered by the same group of Chinese OTC actors. The infrastructure and communication accounts used to further the intrusions and fund transfers were also tied to North Korea.
The claims made in this complaint are only allegations and do not constitute a determination of liability. The burden to prove forfeitability in a civil forfeiture proceeding is upon the government.
The investigation was conducted by IRS-CI’s Washington, D.C. Cyber Crimes Unit, the FBI’s Chicago and Atlanta Field Offices, and HSI’s Colorado Springs Office with additional support from the FBI’s San Francisco Field Office. Assistant U.S. Attorneys Zia M. Faruqui, Jessi Camille Brooks, and Christopher Brown, with assistance from Supervisory Paralegal Specialist Elizabeth Swienc and Legal Assistant Jessica McCormick, Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section, and Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Support to this effort was provided by FBI’s San Francisco Field Office and the U.S. Attorney’s Office of the Northern District of Georgia.
Support to this effort was also provided by United States Cyber Command. More information about the command’s efforts to combat North Korean and other malware activity can be found on Twitter and VirusTotal.
U.S. Marshals searching for 6 Ohio residents in a drug conspiracy involving heroin, fentanyl, “crack” cocaine, and meth in WheelingRead the Press Release
WHEELING, WEST VIRGINIA – The U.S. Marshals are searching for six individuals who are wanted in a drug conspiracy operation that spanned Ohio and West Virginia, U.S. Attorney Bill Powell announced.
The Marshals are asking for information leading to the arrests of:
• Dominique Revell Dungey, also known as “Murda,” 28, of Martins Ferry, Ohio
• Tyrone Majette, also known as “Rullo” and “Marlo,” 24, of Martins Ferry, Ohio
• Sihrahn Major, II, also known as “Black,” 24, of Columbus, Ohio
• Antonio Mario Hall, 28, of Cleveland, Ohio
• Damion Jontaz Pippens, also known as “Dolla” and “DJ,” 36, of Euclid, Ohio
• Joseph Garth, also known as “Nephew,” 23, of Bellaire, OhioThe six men are facing charges in a drug distribution operation that sold cocaine base, also known as “crack,” heroin, methamphetamine, including “ice,” and fentanyl in Ohio County and elsewhere from February 2019 to August 2020. In some instances, the sale of the drugs took place near protected locations such as North Park Apartments, Riverview Towers, Luau Manor, Madison Elementary School, Jensen Playground, Belle Isle Playground, Elks Playground, Bridge Park Playground, West Virginia Northern Community College, Wheeling Central Catholic High School, and Wheeling University.
Anyone with information is asked to contact the U.S. Marshal Service at 304-232-2980.
There are 20 others charged in this case. See the release issued on August 6, 2020: https://www.justice.gov/usao-ndwv/pr/26-charged-drug-conspiracy-involving-heroin-fentanyl-crack-cocaine-and-meth-wheeling
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Wrigley Announces String of Violent Gang Members Indicted on Federal Robbery ChargesRead the Press Release
FARGO - United States Attorney Drew Wrigley announced that a federal grand jury has indicted Abbot William Aho, a/k/a Boogie, age 26, Fergus Falls, MN, for Conspiracy to commit Robbery; Robbery; Use of a Firearm in Relation to a Crime of Violence; Conspiracy to Possess a Controlled Substance with Intent to Distribute, and Distribution of a Controlled Substances; Continuing Criminal Enterprise; and Aiding and Abetting.
The Indictment was unsealed today, and alleges that from January 2019 through May 2019, Abbot Aho, led a criminal gang known as the "Slither Gang," members of which conspired with Aho and other individuals to target robbery victims who were themselves alleged drug traffickers in North Dakota, Minnesota, and elsewhere. The Indictment further alleges that Abbot Aho and the co-conspirator gang members carried out a string of robberies by threats of violence, the infliction of violence, and the brandishing of firearms and other dangerous weapons. Abbot Aho and the co-conspirators often resorted to home invasions or setting up victims to meet at a public place, and then robbed them of drugs, money, firearms and personal property, later selling the drugs they stole.
"While the victims in this string of violent attacks and robberies were often criminals themselves, this law enforcement initiative is a critically important component of our push to identify, prosecute and incarcerate the most violent criminals operating in North Dakota and the region," said United States Attorney Drew Wrigley, "and we are dramatically increasing federal robbery prosecutions as a result of these focused efforts."
In addition to numerous similar though unrelated federal prosecutions across the state as a part of this initiative, several of Aho’s co-conspirators have also been indicted in North Dakota and are awaiting trial:
• Sarah Ann Carlson, age 21, Minneapolis, MN: Indicted on charges of Conspiracy to Interfere with Commerce by Threats and Violence – Hobbs Act Robbery; Interference with Commerce by Threats and Violence – Hobbs Act Robbery; Use of a Firearm During and in Relation to a Crime of Violence; and Aiding and Abetting
• Jared Christopher Kaul, age 21, Fridley, MN: Indicted on charges of Conspiracy to Interfere with Commerce by Threats and Violence – Hobbs Act Robbery; Conspiracy to Possess with Intent to Distribute; and Distribute Controlled Substances
• Josiah Thomas Aguilar, age 21, Dilworth, MN: Indicted on charges of Conspiracy to Interfere with Commerce by Threats and Violence – Hobbs Act Robbery; Interference with Commerce by Threats and Violence – Hobbs Act Robbery; Use of a Firearm During and in Relation to a Crime of Violence; Conspiracy to Possess with Intent to Distribute and Distribute Controlled Substances; and Aiding and Abetting
Grand jury Indictments are allegations and are not evidence of guilt. The defendant is presumed innocent unless and until he is proven guilt beyond a reasonable doubt at trial.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Fergus Falls MN Police Department; and the Ottertail County States Attorney’s Office, and the case is being prosecuted by the United States Attorney’s office, with Assistant United States Attorney Chris C. Myers assigned to the case.
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Two charged with conspiracy to transport illegal aliens appear in federal courtRead the Press Release
ALBUQUERQUE, N.M. – Christian Barron, 32, and Rosa Briones, 29, both U.S. citizens, have been charged in a criminal complaint with conspiracy to transport illegal aliens. The defendants made an initial appearance in federal court on Aug. 21 and a bond hearing Aug. 24.
According to the complaint, on August 12, 2020, agents from Santa Teresa Border Patrol Station patrolling New Mexico Highway 9 observed a sedan leaving an area near the exact location where other agents had just discovered multiple individuals entering the United States illegally. While conducted an immigration stop, agents discovered that the driver, along with his passenger, had picked up eight individuals who had just entered the country. One person was concealed in the trunk of the car with no water or ventilation, wearing a thermal hoodie as temperatures reached 104 degrees.
With the exceptions of Barron and Briones, everyone in the car was determined to be in the country illegally.
A criminal complaint is only an accusation. Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt. If convicted, Barron and Briones face up to 10 years in prison.
This case was investigated by the U.S. Border Patrol. Assistant U.S. Attorney Matthew Ramirez is prosecuting the case.
Tuscaloosa Man Sentenced to More Than 21 Years in Federal Prison for Illegally Possessing a FirearmRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a Tuscaloosa resident and six-time convicted felon to prison for possessing a pistol during a 2018 shooting at an intersection on Skyland Boulevard in Tuscaloosa, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Acting Special Agent in Charge Toby Taylor.
Chief U.S. District Judge L. Scott Coogler sentenced LARRY LEON BRYANT, 34, to 262 months in prison on one-count of being a felon in possession of a firearm under the Armed Career Criminal Act. A jury convicted Bryant after a two-day trial in October of 2019.
“Bryant’s lengthy sentence was driven by his extensive criminal history that included multiple drug distribution convictions,” Escalona said. “We continue to focus our prosecutions on felons who arm themselves, especially those who use firearms to continue their criminal activity.”
“Removing the criminal element that uses a firearm to facilitate violent crimes is a priority of ATF,” ATF Acting Special Agent in Charge, Toby Taylor said. “This focused investigation of an individual with an extensive criminal history will have a lasting impact within this community.”
On December 13, 2018, Bryant’s SUV was stolen from his driveway. Later that day, Bryant and his brother located the SUV on East Skyland Boulevard. Bryant stopped behind the SUV at a red light, and Bryant’s brother pulled in front of the SUV. Traffic camera video showed that the brother fired a shot into the windshield and then met Bryant at the driver’s side door. Shots were then fired into the driver’s side of the SUV.
Tuscaloosa police arrested both men at the scene and collected two pistols. A subsequent examination of the SUV, the pistols, and expended bullets and shell casings determined that multiple pistols had been fired with rounds entering not only through the windshield but also through the driver’s window and the rear tailgate doors. The driver of the SUV, a juvenile, was struck in the head but survived.
ATF investigated the case along with the Tuscaloosa Violent Crimes Unit. Assistant U.S. Attorneys Alan Baty and Brittney Bucak prosecuted the case.
Trenton Man Sentenced to 10 Years in Prison for Role in Heroin Trafficking ConspiracyRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man was sentenced today to 120 months in prison for his role in a large drug trafficking conspiracy that distributed more than one kilogram of heroin in Trenton and the surrounding area, U.S. Attorney Craig Carpenito announced.
Davias Taylor, a/k/a “Vicey,” 28, of Trenton, previously pleaded guilty before Chief U.S. District Judge Freda L. Wolfson to an information charging him with one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin. Chief Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
In October 2018, Taylor and 25 other members of a drug trafficking conspiracy operating in Trenton were charged with conspiracy to distribute heroin. On Feb. 27, 2020, a grand jury returned a 10-count second superseding indictment charging Jerome Roberts, a/k/a “Righteous,” a/k/a “Lee”; David Antonio, a/k/a “Papi,” a/k/a “Pop,” a/k/a a/k/a “Santiago Ramirez”; Timothy Wimbush, a/k/a “Young Money”; Taquan Williams, a/k/a “Trip”; Jubri West; Dennis Cheston Jr., a/k/a “Beans”; and Wayne K. Bush with various crimes relating to the drug-trafficking conspiracy, as well as firearms offenses. To date, 23 defendants have pleaded guilty in connection with their participation in the conspiracy.
From as early as October 2017 to October 2018, the defendants and others engaged in a narcotics conspiracy that operated in the areas of Martin Luther King Boulevard, Sanford Street, Middle Rose Street, Southard Street, Hoffman Avenue, and Coolidge Avenue in Trenton, and that sought to profit from the distribution of heroin and numerous other controlled substances. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin, the use of confidential sources of information, and other investigative techniques, law enforcement learned that defendants Jakir Taylor and Jerome Roberts obtained regular supplies of hundreds of “bricks” of heroin from defendant David Antonio, to whom they referred as “Papi.” The investigation revealed that during the conspiracy, Davias Taylor met David Antonio and introduced him to his conspirators, Jakir Taylor and Jerome Roberts, so that Antonio could supply the conspiracy with significant quantities of heroin. Davias Taylor himself also obtained and redistributed significant quantities of heroin for profit.
In addition to the prison term, Davias Taylor was sentenced five years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr.; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, Trenton Field Office, under the direction of Special Agent in Charge Charlie J. Patterson; officers of the Trenton Police Department, under the direction of Police Director Sheilah Coley; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; officers of the Burlington Township Police Department, under the direction of Police Director Bruce Painter; and detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Coffina, with the investigation leading to today’s sentencing. He also thanked officers of the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan; detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri; officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler; and members of the New Jersey State Board of Parole for their assistance in the case.
The government is represented by J. Brendan Day, Attorney-in-Charge of the U.S. Attorney’s Office’s Trenton Office, and Assistant U.S. Attorney Alexander Ramey of the U.S. Attorney’s Office’s Criminal Division in Trenton.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Greater Trenton Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies to enhance the identification, apprehension, and prosecution of individuals involved in gang-related activities, violent crime, and drug distribution in and around the greater Trenton area. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations against the remaining defendants are merely accusations and those defendants are presumed innocent unless and until proven guilty.
Three KC Men Charged in Armed Carjacking That Resulted in Police Pursuit, Fatal CollisionRead the Press Release
KANSAS CITY, Mo. – Three Kansas City, Missouri, men have been charged in federal court for their roles in an armed carjacking Monday night that led to a high-speed chase and a collision that killed another motorist.
Derrell M. Wade, also known as Derrelle, 19, Curtis R. Daniels, 18, and Michael A. Brown, 18, were charged in a two-count complaint filed in the U.S. District Court in Kansas City, Mo., on Wednesday, Aug. 26. They remain in federal custody pending a detention hearing, which has not yet been scheduled.
The federal criminal complaint charges each of the defendants with participating in a carjacking that occurred on Monday, Aug. 24. The complaint also charges Wade with brandishing a firearm during a crime of violence.
According to an affidavit filed in support of the federal criminal complaint, Wade pointed a gun at the victim, identified in court documents as “T.R.,” as he was walking away from his parked vehicle, a gold 2007 Prius, at approximately 10:35 p.m. on Monday, Aug. 24. Wade allegedly pressed the barrel of his gun against T.R.’s forehead, and demanded, “give me your keys.” Another person took T.R.’s cell phone from his hand. T.R. was repeatedly struck in the back with an unknown object by a third person, and told to stay on his knees. The three men then fled in T.R.’s vehicle, the affidavit says.
T.R. immediately contacted law enforcement, and used his wife’s cell phone to track his stolen cell phone, using the Find My Phone app. Police officers saw the stolen Prius driving southbound on Lister Avenue, passing over the main thoroughfare of East 23rd Street, at about 11:09 p.m. Officers pulled behind the vehicle, which the affidavit says was being driven by Wade, and the vehicle accelerated a high rate of speed away from the officers. Officers activated their emergency equipment and initiated a pursuit of the vehicle.
According to the affidavit, Wade drove at speeds up to 75 miles per hour and ran several stop signs during the pursuit. When Wade ran the stop sign at 23rd Street and Lawn Avenue, the Prius collided with another vehicle. This collision resulted in the fatality of an occupant from that vehicle.
Wade left the driver’s seat and attempted to run away. Wade, who appeared to be limping, fell to the ground. As he was falling, the affidavit says, he pulled a loaded Smith and Wesson 9mm semi-automatic handgun from his waistband and threw it in the grass.
Brown got out of the passenger side rear door of the Prius and began running toward Elmwood Avenue. He was found hiding near a grill in a residential backyard and arrested.
Daniels, who was sitting in the front passenger seat of the Prius, was arrested without incident.
The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Emily A. Morgan. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Operation LeGend
Operation LeGend is a federal partnership with local law enforcement to address the increase in homicides and violent crime in Kansas City, Mo., in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.Three Indicted in Conspiracy to Illegally Acquire Firearms for a FelonRead the Press Release
ERIE, Pa. – A former resident of Jamestown, New York and two residents of Erie, Pennsylvania have been indicted by a federal grand jury in Erie on a charges of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
The five-count Indictment named Michael Deniro Hackett, 41, Kathryn Nicole Shaw, 23, and Treasure Ann Gray, 40, as defendants.
According to the Indictment presented to the court, from March 9, 2020, to July 21, 2020, the defendants conspired to violate federal straw purchase laws and acquired firearms for Hackett who was prohibited from possessing firearms based on prior criminal convictions.
The law provides for a maximum total sentence of 45 years in prison, a fine of $1,250,000, or both for Hackett and a maximum total sentence of 15 years in prison, a fine of $500,000, or both defendant Shaw and Gray. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Pennsylvania State Police, Conewango Police Department, and Homeland Security Investigations conducted the investigation leading to the Indictment in this case. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the Fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tax Fugitive ApprehendedRead the Press Release
PHOENIX, Ariz. – Kevin Scott Wynn, 59, of Scottsdale, Arizona, was apprehended last week by the United States Marshals Service after failing to appear for his scheduled sentencing.
A Phoenix jury convicted Wynn on December 5, 2019 of one felony count of tax evasion and three misdemeanor counts of failure to file a tax return. Before trial, Wynn had been on pretrial release, but subject to a curfew and electronic monitoring.
After his conviction, Wynn was released pending sentencing, but required to follow a curfew and wear an ankle monitor. In April 2020, Wynn filed a motion with the court, requesting to lift those restrictions on his release. The District Court sided with the government and refused to modify the conditions of Wynn’s release.
On June 30, approximately four weeks before his scheduled sentencing date, Wynn cut off his ankle monitor, and left it on the ground outside his office. United States Pretrial Services received a tamper alert, sought a warrant, and alerted law enforcement. Over the course of the next 53 days, the United States Marshals Service, with assistance from Internal Revenue Service – Criminal Investigations, the Coast Guard, Customs and Border Protection, Immigration and Customs Enforcement, and Mexican law enforcement authorities worked together to trace Wynn’s movements, contacts, and money. In particular, in the months before he fled – and at a time when he was asserting in court filings that he intended to pay his past due tax obligations – Wynn withdrew more than one million dollars in cash from his business bank accounts.
Mexican law enforcement authorities apprehended Wynn in the wealthy Polanco neighborhood of Mexico City on Friday, August 21, and deported him to Houston the following day. At the time he was apprehended, Wynn had in his possession a Mexican voter identification card with his photograph and another person’s name.
Wynn currently remains in the custody of the Marshals Service following an initial appearance in Houston on August 24. He will be transported back to Arizona for a sentencing hearing currently scheduled for September 28. At sentencing, Wynn faces a maximum sentence of 96 months in prison, in addition to a restitution order of up to $765,429.22 to account for past due taxes, penalties, and interest.
“I applaud the tireless work of the United States Marshal Service and all of our law enforcement partners to ensure Wynn was caught and that he will face justice for his crimes,” said United States Attorney Michael Bailey.
“Wynn spent a lot of time and money preparing for his life as an international fugitive,” said United States Marshal David Gonzalez. “Unfortunately for him, his life on the run was for only 53 days. My special thanks to our partners in the Republic of Mexico for their assistance in the capture of Wynn.”
“IRS-CI thanks the U.S. Marshal and his staff for the apprehension of this fugitive,” said Ismael Nevarez Jr., Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation. “Their efforts will ensure that Mr. Wynn is held accountable for his tax crimes.”
Internal Revenue Service – Criminal Investigations conducted the underlying investigation, and the United States Marshals Service led the fugitive apprehension efforts. The United States Attorney’s Office, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-18-1649-PHX-SMB
RELEASE NUMBER: 2020-070_WynnSouth Kingstown Man Ordered to Home Confinement on Child Pornography ChargesRead the Press Release
PROVIDENCE – A 25-year-old South Kingstown man was arrested today and ordered to home confinement following an initial appearance in U.S. District Court in Providence on federal child pornography charges.
It is alleged in court documents that William Schock shared a sexually explicit image of a prepubescent female with others, using an online social media app. It is alleged that Schock also downloaded and stored video files depicting child pornography.
According to court documents, Homeland Security Investigations (HSI) agents in Ottawa provided information to HSI agents in Providence of an IP address that was used to upload an image of child pornography. HSI Providence agents determined that the IP address allegedly belonged to a subscriber in South Kingstown, and that at least two accounts allowing access to the social media app used to upload child pornography were allegedly accessed from that IP address.
Earlier today, HSI agents, assisted by the Rhode Island State Police and members of the Internet Crimes Against Children Task Force, executed a court-authorized search of Schock’s residence. An on-scene forensic preview of Schock’s cell phone allegedly revealed a password protected app for file storage that, once accessed, revealed numerous videos that depict child pornography.
Schock appeared before U.S. District Court Magistrate Judge Patricia A. Sullivan, charged by way of a federal criminal complaint with distribution of child pornography and possession of child pornography, announced United States Attorney Aaron L. Weisman, Homeland Security Investigations Acting Special Agent in Charge Michael S. Shea, and Superintendent of the Rhode Island State Police Colonel James M. Manni.
Schock was released to home confinement with electronic GPS monitoring.
According to court documents, William Schock was arrested by Rhode Island State Police in 2015 and charged with indecent solicitation of a child. In 2016, Schock pleaded guilty to two counts of cyberstalking.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Distribution of child pornography is punishable by statutory penalties of 5-20 years in federal prison and 5 years to lifetime supervised release. Possession of child pornography is punishable by up to 20 years imprisonment followed by 5 years to lifetime supervised release.
The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
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South Bend, Indiana Man Sentenced to 57 Months in PrisonRead the Press Release
SOUTH BEND –Geneco Glover, 39, of South Bend, Indiana, was sentenced by United States District Court Judge Damon R. Leichty upon his plea of guilty for mail fraud and aggravated identity theft, announced U.S. Attorney Kirsch.
Glover was sentenced to 57 months in prison and 2 years of supervised release, and ordered to pay $162,465.85 in restitution.
According to documents in this case, from at least January 2006 to February 2020, Glover defrauded more than 50 individual victims after obtaining their personal information and either adding himself as an authorized user on the victims’ credit card accounts or opening additional credit card accounts in the victims’ names. After gaining access to the victims’ accounts, Glover would change the mailing addresses for these accounts to mailing addresses under his control in order to receive credit cards mailed to the victims. Glover stole at least $160,000 from his victims. After being charged, Glover initially agreed to self-surrender in November 2018. Instead of turning himself in, he spent the next 15 months fleeing from law enforcement, but was finally captured in February 2020.
This case was investigated by the United States Postal Inspection Service; Elkhart County Sheriff’s Department; Mishawaka Police Department; South Bend Police Department; Parma Heights Police Department (Ohio); and Middleburg Heights Police Department (Ohio). The case was handled by Assistant U.S. Attorney Luke N. Reilander.
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Sioux Falls Man Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of Being a Felon in Possession of a Firearm was sentenced on August 25, 2020, by U.S. District Judge Lawrence L. Piersol.
Levi Shanteau, age 25, was sentenced to 21 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Shanteau was indicted by a federal grand jury on March 3, 2020. He pled guilty on June 10, 2020.
The conviction stemmed from an incident on January 30, 2020, in Sioux Falls, where police responded to an escalating violent situation. Levi Shanteau left the house as the police arrived and a loaded handgun was found tucked in his pants. Shanteau was on probation at the time for a 2018 felony drug conviction, which he knew prohibited him from possessing a gun.
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. 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 by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Sioux Falls Police Department. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Shanteau was immediately turned over to the custody of the U.S. Marshals Service.
Serial Armed Robber Sentenced to 9 YearsRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Nicholas K. Murn, 26, Whitewater, Wisconsin, pleaded guilty and was sentenced yesterday by U.S. District Judge William M. Conley to nine years in federal prison, for committing five armed robberies of Rock County businesses during a two-week period of time in October 2019. His term of imprisonment will be followed by a three-year term of supervised release.
Murn committed the following robberies:
1. Tex’s Grocery, 1909 Saint Lawrence Avenue, Beloit, Wisconsin, on October 17, 2019;
2. Casey’s General Store, 464 S. John Paul Road, Milton, Wisconsin, on October 23, 2019;
3. Stop N’ Go, 3515 E. Milwaukee Street, Janesville, Wisconsin, on October 24, 2019
4. Mulligans BP Convenience, 3961 Milton Avenue, Janesville, on October 26, 2019; and
5. Rollette Oil Gas Station, 1451 Madison Road, Beloit, on October 30, 2019.
Because Murn brandished a firearm during each robbery, he was subject to a mandatory minimum seven-year sentence, which is what he asked Judge Conley to impose. Although Murn did not have a prior criminal history, Judge Conley denied his request because of the trauma Murn inflicted on the victims.
The charges against Murn were the result of an investigation conducted by the Beloit, Janesville, and Fort Atkinson Police Departments, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
Rosebud Woman Sentenced for Threatening a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, woman convicted of Influencing a Federal Officer by Threat was sentenced on August 24, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Jamie E. Oliver, a/k/a Jamie E. Decory, age 35, was sentenced to 4 years of probation and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Oliver was indicted by a federal grand jury on February 11, 2020. She pled guilty on August 24, 2020.
The conviction stemmed from an incident that occurred on October 6, 2019, in Mission, South Dakota. On that date, a Rosebud Sioux Tribe Law Enforcement Services Officer responded to a call for service. Oliver was arrested for assaulting another individual. While she was being transported to the Rosebud Sioux Tribe Adult Correctional Facility, Oliver remarked that she was going to remember the officer and take the officer’s life. During transport, Oliver continued to threaten to murder the law enforcement officer, who was employed by the Rosebud Sioux Tribe Law Enforcement Services.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore prosecuted the case.
Oliver was immediately released.
Roanoke Woman Pleads Guilty to Theft of Public MoneyRead the Press Release
ROANOKE, Va. – A Roanoke woman, who conspired with others to enrich themselves by obtaining federal income tax refunds from the IRS to which they were not entitled, pleaded guilty yesterday in U.S. District Court in Roanoke, United States Attorney Thomas T. Cullen announced.
Michelle Coppola, 59, a resident of Roanoke, Va., pleaded guilty yesterday to one count of conspiring to knowingly and willfully commit the offense of theft of public money. Coppola will be sentenced November 13, 2020.
Coppola admitted today to conspiring with Osazuwa Peter Okunoghae, and others, from August 2012 through April 2014 in the Western District of Virginia and Eastern District of Texas to steal IRS tax refunds that were not their own.
According to court documents, Coppola knew the IRS tax refunds she was receiving were not her own and that it was therefore illegal for her to receive them. Throughout the course of the scheme, Coppola received approximately $53,470 is fraudulent IRS tax refunds to which she was not entitled.
The investigation of the case was conducted by the Internal Revenue Service. The prosecution of Coppola and her co-conspirators is being handled by Assistant United States Attorney Charlene R. Day for the Western District of Virginia and Assistant United States Attorney Nathaniel C. Kummerfeld for the Eastern District of Texas.
Rapid City Man Charged with Unlawful Possession of FirearmsRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Possession of a Firearm by a Prohibited Person and Possession of a Stolen Firearm.
Nicholas Carlow, age 21, was charged on August 20, 2020. Carlow appeared before U.S. Magistrate Judge Daneta Wollmann on August 26, 2020, and pleaded not guilty to the charges. The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Carlow, previously convicted of a felony and prohibited from possessing firearms, possessing a Cugir Arms Factory semi-automatic pistol and a stolen Ruger semi-automatic pistol in March and July 2020 at Rapid City. The charges are merely an accusation and Carlow is presumed innocent until and unless proven guilty.
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. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities 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 by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Carlow was detained pending trial. A trial date has not been set.
Rapid City Man Charged with Unlawful Possession of FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Possession of a Firearm and Ammunition by a Prohibited Person.
Allen Libby, age 29, was charged on August 20, 2020. Libby appeared before U.S. Magistrate Judge Daneta Wollmann on August 26, 2020, and pleaded not guilty to the charge. The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Libby, previously convicted of a felony and prohibited from possessing firearms, possessing a 9mm semi-automatic pistol in April 2020 at Rapid City. The charge is merely an accusation and Libby is presumed innocent until and unless proven guilty.
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. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities 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 by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Libby was detained pending trial. A trial date has not been set.
Rapid City Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Failure to Register as a Sex Offender.
Jasper Chase Alone, age 34, was charged on August 20, 2020. Chase Alone appeared before U.S. Magistrate Judge Daneta Wollmann on August 26, 2020, and pleaded not guilty to the charge. The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 5 years up to lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Chase Alone knowingly failing to update his sexual offender registration between November 2019 and March 2020. The charge is merely an accusation and Chase Alone is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Chase Alone was released pending trial. A trial date has not been set.
Quapaw Man Sentenced to Life for Sexually Abusing a Child Under 12Read the Press Release
A federal judge sentenced a Quapaw man today for sexually abusing a child under 12 years of age in Indian Country, announced U.S. Attorney Trent Shores.
U.S. District Judge Gregory K. Frizzell sentenced Wilkie Bill Burtrum, 60, to life in prison for the aggravated sexual abuse of a minor in Indian Country and to 360 months for abusive sexual contact with a child under 12 in Indian Country. Burtrum previously spent 14 years in federal prison for sexually abusing two other children.
“After repeated convictions for child molestations, a life sentence of imprisonment was the only way to protect children from this monster. I am so proud that a young victim bravely spoke up and helped us stop Burtrum from hurting any other children,” said U.S. Attorney Trent Shores. “Because of a team of committed investigators, prosecutors, and victim specialists, Wilkie Burtrum was brought to justice. We stand ready to help any other child victim who may want to come forward.”
Burtrum was convicted of abusing the victim between August 2018 and October 2019. During his March trial, the prosecution contended that the defendant paid extra attention to the victim and offered him special privileges in order to gain the child’s trust. During the time the defendant and victim were together, Burtrum purposefully touched the victim sexually both over his pants and under his clothing. The child eventually confided in a relative then his father, who reported the crimes to authorities.
During the trial, an additional victim, who came forward during the investigation, also testified about abuse he suffered at the hands of Burtrum approximately five years ago. The prosecution further introduced into evidence a 1993 sexual abuse conviction, establishing a pattern of behavior by the defendant. In that case, Burtrum served 14 years in prison for four counts of aggravated sexual abuse in Indian Country with children under 12.
Restitution will be determined at a later hearing set for Sept. 10, 2020. Burtrum remains in the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility.
The Quapaw Tribal Marshals Service and Miami Police Department conducted the investigation. Assistant U.S. Attorneys Shannon Cozzoni and Scott Proctor prosecuted the case.
This case was prosecuted as part of the Project Safe Childhood initiative. PSC combats the epidemic of child sexual exploitation and abuse and was launched in May 2006 by the Department of Justice. Led by United States Attorney’s 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.
Purveyors of fraudulent Native American-style goods and products sentenced in federal courtRead the Press Release
ALBUQUERQUE, N.M. – Jawad Khalaf, 72, of Albuquerque, New Mexico, Nashat Khalaf, 73, of Gallup, New Mexico, Sterling Islands, Inc., a wholesale jewelry business in Albuquerque, and Al-Zuni Global Jewelry, Inc., a wholesale jewelry business in Gallup, were sentenced in federal court in Albuquerque yesterday. In April, the defendants pled guilty to misrepresentation of Indian-produced goods and services in an amount greater than $1000 as part of a scheme to import Native American-style jewelry from the Philippines and sell it to customers in the United States as authentic. Another defendant, Taha Shawar, 49, of Breckenridge, Colorado, remains a fugitive.
Jawad Khalaf and Nash Khalaf were sentenced to 2 years’ supervised release and Jawad Khalaf must also perform 100 hours of community service. Sterling Islands Inc. was sentenced to 5 years’ probation and 50 hours community service, while Al-Zuni Global Jewelers, Inc. was sentenced to 5 years’ probation and 20 hours community service. Collectively, the defendants will pay $300,000 to the Indian Arts and Crafts Board and forfeit their interests in $288,738.94 seized by investigators in the case.
A grand jury returned an indictment on Dec. 19, 2018, charging these defendants and three other people with conspiracy, smuggling goods into the United States and misrepresentation of Indian-produced goods and products. The defendants admitted that on Oct. 28, 2015, they displayed and offered for sale miniature canteens at Al-Zuni Global Jewelry in Gallup. These canteens were not actually Indian-produced but could have reasonably been mistaken for authentic Indian-produced canteens.
“I want to express my appreciation for the hard work of the investigators and prosecutors who brought this case to conclusion,’ said John C. Anderson, U.S. Attorney for the District of New Mexico. “It is the culmination of countless hours of diligent work and cooperation among our partnering law enforcement agencies on behalf of Native American artists and artisans. We stand ready to bring the power of the law to bear upon those seeking to profit from cultural theft.”
“This U.S. Fish and Wildlife Service-led investigation uncovered a transnational criminal scheme that defrauded U.S. consumers and Native American artists,” said Assistant Director of the Office of Law Enforcement Edward Grace. “I would like to thank our special agents for their exemplar investigative work as well as our state and federal partners, who because of their collaboration and dedication to duty, these defendants were sentenced yesterday.”
“The Land of Enchantment’s identity and economy relies heavily on Indian art and culture,” said Meridith Stanton, Director of the Indian Arts and Crafts Board (IACB), U.S. Department of the Interior. The IACB by statute is responsible for enforcement of the Indian Arts and Crafts Act, which includes criminal penalties for marketing counterfeit Indian art and craftwork, to protect the economic livelihoods of Indian artists and artisans.
“Consumers must have confidence that the ‘Indian art’ they are purchasing in New Mexico is authentic, and not imported from factories in the Philippines,” said Director Stanton. “At the same time, Indian artists and economies must be protected from unfair competition from counterfeit Indian art. Robust Indian Arts and Crafts Act enforcement ensures that Indian artistic traditions can be passed down from one generation to the next to preserve an important American treasure – authentic Indian art. The Board commends our colleagues at the Office of the U.S. Attorney for the District of New Mexico and the U.S. Fish and Wildlife Service’s Office of Law Enforcement for their extraordinary dedication, diligence, and commitment in working with us to combat the sale of counterfeit Indian art.”
“The FBI hopes this case sends a loud and clear message that those who try to cheat Native Americans of their cultural heritage will be held accountable,” said James C. Langenberg, Special Agent in Charge of the FBI’s Albuquerque Field Office. “We will continue working closely with our partners to make sure our nation’s precious artistic resources are protected.”
“These individuals conspired to exploit the rich culture and work of Indian artisans for their personal gain by selling counterfeit merchandise and passing it as genuine Indian art and craftwork,” said Erik P. Breitzke, acting Special Agent in Charge of Homeland Security Investigations (HIS) El Paso. “This sentence sends a powerful message to others who believe they can do the same and elude justice. HSI will continue to cooperate with our law enforcement partners to assist in protecting and preserving Native American cultural heritage.”
“Yesterday’s sentencing marks a turning point in this case and provides some closure to those who were victimized by this unfair practice,” said Sonya K. Chavez, U.S. Marshal for the District of New Mexico. “This collaboration affirms law enforcement’s commitment to pursuing those who believe they can get away with fraud against our state and our unique cultural resources.”
“The Department of Game and Fish is proud to have been an integral part of this multi-jurisdictional prosecution,” said New Mexico Department of Game and Fish director Michael Sloane. “We take pride in both conserving wildlife and protecting the diverse cultures of New Mexico. We congratulate our partners on a job well done.”
The Office of Law Enforcement for the Southwest Region of the U.S. Fish and Wildlife Service led the investigation of this case with assistance from the Albuquerque Division of the FBI, Homeland Security Investigations, the Indian Arts and Crafts Board, the Drug Enforcement Administration, the U.S. Marshals Service, and the New Mexico Department of Game and Fish. Assistant U.S. Attorneys Jonathon M. Gerson, Sean J. Sullivan, Kristopher N. Houghton, and Stephen R. Kotz prosecuted the case.
Project Safe Neighborhoods: Detroit Man Pleads Guilty to Drug and Gun CrimesRead the Press Release
HUNTINGTON, W.Va. – A Michigan man has pled guilty to drug and gun crimes, announced United States Attorney Mike Stuart. Darelle Devon Boynton, 35, of Detroit, pled guilty to distribution of heroin and possession of a firearm by a convicted felon.
Boynton admitted that on January 23, 2020, he sold approximately 1.75 grams of heroin for $100 to a confidential informant. He also admitted that on January 30, 2020, he sold 8.47 grams of heroin to a confidential informant inside a car at 2005 10th Ave. in Huntington.
On February 13, 2020, police searched his house at 199 Davis St. in Huntington. Boynton had approximately 35.13 grams of heroin in his bedroom which he intended to sell. Also on February 13, 2020, Boynton possessed a Glock Model 19, 9mm pistol while inside a bar called Tamika’s, formerly known as the Copa, located at 2005 10th Ave. in Huntington. Boynton had previously been convicted of crimes that carried punishments of more than one year in prison, including armed robbery, possession of a firearm by a felon and fleeing from a police officer. Because of those convictions, he was prohibited from possessing the firearm.
Boynton faces up to 30 years in prison when sentenced on November 30, 2020.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Greg McVey is handling the prosecution.
This case is being prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.) and Project Safe Neighborhoods.
Operation S.O.S. is an enforcement surge that seeks to reduce the supply of deadly synthetic opioids in high impact areas.
The Project Safe Neighborhoods (PSN) program 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.
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. 3:20-cr-00038.
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Previously deported sex offender charged with illegal reentryRead the Press Release
ALBUQUERQUE, N.M. – Isaias Magana, 41, a convicted sex offender from El Salvador, has been charged with illegally reentering the United States. Magana made an initial appearance in court on Aug.14, and at a hearing on Aug. 18 was ordered to be detained pending trial.
According to a criminal complaint, shortly after midnight on August 13, U.S. Border Patrol Agents allegedly discovered Magana and two other individuals attempting to conceal themselves in the desert brush. A record check revealed that Magana had a criminal history including an aggravated felony conviction for sexual offenses in Utah, and that he subsequently had been deported to El Salvador from the United States through Phoenix, Arizona, in April 2019.
Under federal law, as alien who previously has been arrested and convicted of an aggravated felony and subsequently deported from the United States may not lawfully reenter the country without consent to apply for admission.
A criminal complaint is only an accusation. Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt. If convicted, Magana faces up to 20 years in prison.
This case was investigated by the U.S. Border Patrol. Assistant U.S. Attorney Matthew Ramirez is prosecuting the case.
Pittsburgh Man Pleads Guilty to Federal Child Sexual Exploitation ChargesRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of receipt and possession of material depicting the sexual exploitation of minors, United States Attorney Scott W. Brady announced today.
James Franklin Young, 37, pleaded guilty to two counts before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, on or before November 14, 2018, through on or about August 28, 2019, Young received material depicting the sexual exploitation of minors, and on August 28, 2019, Young knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Judge Horan scheduled sentencing December 17, 2020, at 9:00 a.m. The law provides for a total sentence of not less than five years nor more than 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Young remains under detention pending the sentencing hearing.
Assistant United States Attorney Robert C. Schupansky is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the prosecution of Young.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Pine Ridge Man Sentenced to Life in Prison for First Degree Murder of ChildRead the Press Release
United States Attorney Ron Parsons announced that a Pine Ridge, South Dakota, man convicted of First Degree Murder and Assault Resulting in Serious Bodily Injury was sentenced on August 21, 2020, by Jeffrey L. Viken, U.S. District Judge.
Zachariah Michael Poor Bear, age 26, was sentenced to life in federal prison and ordered to pay a $100 special assessment to the Federal Crime Victims Fund as to the First Degree Murder charge. Poor Bear was sentenced to 10 years in federal prison, to be served concurrently to the murder charge, and was ordered to pay another $100 special assessment to the Federal Crime Victims Fund for the Assault Resulting in Serious Bodily Injury charge.
The conviction stemmed from Poor Bear killing a 19 month-old baby by inflicting blunt force trauma to her head and abdomen in May 2015 at Pine Ridge. Poor Bear was found guilty at trial.
“The murder of a child is incomprehensible,” said U.S. Attorney Parsons. “We mourn the loss of this precious little girl and pray that the justice represented by this life sentence will bring some measure of rest to her family.”
“This crime was gut-wrenching and there is no question the sentencing is just,” said FBI Minneapolis Assistant Special Agent in Charge, Bob Perry. “The FBI is responsible for investigating the most serious crimes in Indian Country and along with our law enforcement partners, we will continue to aggressively pursue these cases. The FBI is committed to protecting all of the tribal communities we serve, helping victims, and ensuring that justice is met for violent offenders.”
The investigation was conducted by the Federal Bureau of Investigation, the Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorneys Sarah B. Collins and Eric Kelderman prosecuted the case.
Poor Bear was immediately remanded to the custody of the U.S. Marshals Service.
Pennsylvania Man Pleads Guilty to Starting Fire During Delta FlightRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Robert Vincent Allen, a resident of Pennsylvania, has pleaded guilty to the attempted destruction of an aircraft. Allen appeared remotely, and is free on bond. The Denver Division of the FBI joined in today’s announcement.
According to the stipulated facts contained in Allen’s plea agreement, on the morning of April 1, 2020, Allen boarded Delta Air Lines flight #1706 at the Los Angeles International Airport scheduled to fly to Detroit, Michigan. Shortly after take-off, other passengers observed Allen acting strangely, moving continuously about the cabin, and switching seats. Delta crewmembers monitored Allen, advised the pilot in command of a possible issue and attempted to get Allen settled. Allen later entered the lavatory, and refused to come out again. The lavatory smoke alarm sounded. Crewmembers forced open the door, removed Allen from the lavatory and extinguished burning paper he set on fire.
Upon hearing the smoke alarm, the pilot in command concluded that he could not safely operate the aircraft with a fire onboard and diverted the flight to Denver International Airport (DIA). Crewmembers seated him in the last row of the plane. Officers arrested Allen after the flight landed at DIA.
Allen was charged in a federal criminal complaint on April 2, 2020, and indicted by a federal grand jury in Denver on June 2, 2020. The guilty plea was entered before U.S. District Court Judge Christine M. Arguello on August 26, 2020.
Allen will be sentenced on December 16, 2020. He faces not more than 20 years in federal prison, a fine of $250,000, and payment of restitution to Delta Air Lines.
This case was investigated by the Denver FBI and the Denver Police Department. The defendant is being prosecuted by Assistant U.S. Attorney Patricia Davies.
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 by searching for Case Number 20-cr-147.
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.
Pelham Man Pleads Guilty to Mail Fraud Scheme Involving Fraudulent Surety BondsRead the Press Release
CONCORD - Leo Rush, 76, of Pelham, pleaded guilty in federal court to mail fraud, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Rush ran the Newport Insurance Company from his home office in Pelham. As Rush knew, the Newport Insurance Company was not licensed to sell insurance in New Hampshire or any other state. Rush also maintained a website for the company that listed a false address in Rhode Island.
From 2012 through 2019, Rush sold fraudulent surety bonds through Newport Insurance Company for construction projects in several states. Surety bonds are a form of insurance, subject to oversight by state insurance regulatory agencies. For certain construction projects, contractors are required to purchase surety bonds from licensed insurance companies to ensure that workers and material suppliers are paid and to ensure that a contractor’s work is completed and performed according to a contract’s specifications. Thus, if a contractor defaults on a contract, the owner of the construction project can trigger the surety’s obligation and receive payments required to complete the contract up to the value of the bond.
Rush sold these surety bonds knowing that they were fraudulent. He knew his company was not a licensed insurer and that it did not have the financial ability to make payments equal to the value of the bonds. In fact, after the deposits were made in the Newport Insurance bank account, Rush used the proceeds for his personal benefit, leaving no money to make payments on claims made against surety bonds.
From 2012 through 2019, Rush’s victims paid him over $633,000 for fraudulent surety bonds valued at over $23 million.
Rush is scheduled to be sentenced on December 10, 2020.
“Financial crimes cause serious harm to victims and deprive them of their hard-earned money,” said U.S. Attorney Murray. “Through this deceitful scheme, the defendant obtained over $600,000 from his victims, while subjecting them to the risk of major financial loss in the event that they needed to file a claim against his fraudulent surety bonds. To stop this type of criminal activity and seek justice for victims, we work closely with our law enforcement partners to identify and prosecute fraudsters and other white collar criminals.”
“Mr. Rush’s conduct is inexcusable. With today’s guilty plea, he is finally taking responsibility for deceiving and defrauding his clients out of hundreds of thousands of dollars by selling fake insurance policies that would have left them in serious trouble if claims were made, since he did not have the money to back them,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Individuals like Mr. Rush who engage in this type of financial fraud should know they will not go undetected, and sooner or later, they will be brought to justice. We thank the New Hampshire Insurance Department for its partnership in this investigation.”
This matter was investigated by the New Hampshire Insurance Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Matthew T. Hunter and former Assistant U.S. Attorney Robert Kinsella.
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Pascagoula Man Pleads Guilty to Illegally Possessing a FirearmRead the Press Release
Gulfport, Miss. – Walter Edward Bohl, 64, of Pascagoula, pled guilty today before U.S. District Judge Halil S. Ozerden, to knowingly possessing a firearm after having been committed to a mental institution, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On May 20, 2020, when agents executed a federal search warrant at Bohl’s residence in Pascagoula, Bohl was found to be in possession of a Smith and Wesson, Model M&P 15, 5.56 caliber Rifle. Bohl was prohibited by law from possession a firearm as he had been previously committed to a mental institution.
Walter Edward Bohl was indicted by a federal grand jury on June 23, 2020. He will be sentenced by Judge Ozerden on November 30, 2020, at 10:00 a.m., in Gulfport. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by The Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Andrea Jones.
Park City Man Faces Fraud, Money Laundering Charges in Connection with Alleged Fraud SchemeRead the Press Release
SALT LAKE CITY – A federal grand jury returned a five-count indictment late Wednesday afternoon charging Timothy Andrew Nemeckay, 60, of Park City, Utah, with securities fraud, making false statements to the Security Exchange Commission (SEC), wire fraud, and money laundering in connection with an alleged fraud scheme.
According to the indictment, Nemeckay was the founder and manager of Mine Shaft Brewing, a Park City business. The indictment alleges Nemeckay represented to investors that Mine Shaft was raising funds to develop a brewery and restaurant in Park City and later in Santa Clarita, California. Nemeckay collected approximately $2.7 million from approximately 100 investors from across the United States in connection with the Mine Shaft investment offering, the indictment alleges. The indictment alleges the fraud scheme started in early 2013 and continued until around July 6, 2020.
“Far too many Utah headlines report homegrown fraud schemes. There are disproportionate numbers of wolves in sheep’s clothing in our state. In this indictment, the alleged offender was even under the thumb of securities regulators when he persuaded investors to pay into his scheme, and he purportedly used investor money to pay off previously ordered restitution,” U.S. Attorney John W. Huber said today. “Once again, we encourage those considering investment opportunities to do their due diligence before handing over their life savings to someone who doesn’t have their interests at heart.”
Nemeckay made a series of representations to investors in connection with the investment offering, including telling them that Mine Shaft was offering Series A Preferred Equity shares totaling $9.4 million and that Mine Shaft had already raised or had sizeable commitments for the funding needed. Investors were told, the indictment alleges, that the minimum investment amount was $20,000 and that the investment would earn 8 percent annual interest. Investors were also told that Mine Shaft would use funds to acquire and develop a brewery in Park City and that the location would produce thousands of barrels of alcohol for distribution. He represented that the location would operate as a restaurant and event center and become a top craft brewer in five years and that investors would receive the first right of refusal on additional investment rounds – among other things.
The indictment alleges Nemeckay issued and sent “investor newsletters” to convince investors to invest and that their investments were succeeding.
In furtherance of the scheme, the indictment alleges Nemeckay also made a variety of other false misrepresentations to investors, including telling them that Mine Shaft was seeking capital to fund the launch of the brewery when, in fact, he was seeking funding for his personal use. The indictment alleges Nemeckay used approximately $1.7 million of Mine Shaft investor funds for his own personal use. Less than $550,000 of investment funds were used toward developing a brewery in Park City and later Santa Clarita.
Interest payments were usually not made to investors, the indictment alleges, and when they were, the payments came from new investor money.
The indictment also alleges Nemeckay reported to investors that he had provided information to the SEC regarding his involvement with Mine Shaft’s fundraising efforts and the SEC had expressed no concern. In fact, he was in violation of State of Utah and federal orders not to participate in the purchase and sale of securities. Nemeckay was the subject of an administrative action with the Utah Division of Securities for selling unregistered securities.
On July 7, 2014, the defendant entered into a Stipulation and Consent Order with the Utah Division of Securities. The sanctions barred Nemeckay from associating with a broker-dealer and from being licensed in any capacity in the securities industry in Utah. It also included a fine of $350,000 with $313,710 offset by restitution to investors.
Nemeckay used Mine Shaft investor funds to pay $312,266.47 in restitution following the sanctions by the Utah Division of Securities.
A summons will be issued for Nemeckay to appear for an initial appearance on the charges. The maximum potential penalty for securities fraud is 25 years in federal prison. The two counts of making false statements to the SEC and the wire fraud count each carry 20-year potential sentences. The potential penalty for money laundering is 10 years.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Assistant U.S. Attorneys in the U.S. Attorney’s Office are prosecuting the case. Special agents of the Utah Division of Securities and the FBI are investigating the case.
New York City Man Arrested, Charged with Cyberstalking and Identity TheftRead 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 David Mondore, 29, of New York, New York, was arrested this morning in Manhattan and charged by complaint with unauthorized access to computer systems in furtherance of any criminal act in violation of state law; unauthorized access to a protected computer in furtherance of fraud; and aggravated identity theft. The unauthorized access charges carry a maximum penalty of five years in prison and a $250,000 fine. Aggravated identity theft carries a mandatory two years in prison, which must be served consecutive to any penalty imposed on other charges.
Assistant U.S. Attorney Charles M. Kruly, who is handling the case, stated that according to the complaint, on December 5, 2019, the FBI received information that the Snapchat account of a SUNY Geneseo student (Victim l) may have been compromised. According to Victim 1, she received a message from a Snapchat account owned by an acquaintance (Acquaintance 1). The person messaging Victim 1 from Acquaintance l's account asked her for her Snapchat login credentials under the ruse that Acquaintance 1 would use Victim l's account to check whether “Acquaintance 1” had been “blocked” by another user. Victim 1 shared her credentials to the person using Acquaintance l's account. Soon after, Victim 1 received a text message purported to be from Snapchat Security indicating that her account had been locked and that she needed to provide a pin number to unlock it. The text message also advised that the pin requested would be the same pin used for Victim l's “My Eyes Only” folder in her Snapchat account. Victim 1 replied and provided the pin number for the folder.
Shortly thereafter, Victim 1 received an email from the true Snapchat, notifying her of a new device login to her account. The true Snapchat also notified Victim 1 that the email address associated with her account had been changed, preventing access to her account. Victim 1 was later made aware that the person who had gained access to her Snapchat account used her account to send an explicit photo of her, which had been saved in her Snapchat account, to 116 Snapchat users on her Snapchat friend list. The photo was captioned, “Flash me back if we are besties.” Four of Victim 1's friends responded, sending explicit pictures of themselves.
One of the friends who responded was Acquaintance 2, and like Victim 1, Acquaintance 2 was a student at SUNY Geneseo at the time. She stated that once she replied with an explicit picture of herself, she noticed that Victim 1's Snapchat account saved the photo, which Acquaintance 2 noted was unusual for Victim 1 to do. Acquaintance 2 then received a text message from Victim 1 saying that her Snapchat account had been hacked and apologized if anyone received suspicious messages from her. Acquaintance 2 then filed a police report fearing that the individual who had accessed Victim l's Snapchat account had the explicit photo Acquaintance 2 sent to Victim l's account. Subsequently, Victim 1 advised that multiple high school friends of hers from her hometown of Delmar, New York, had their Snapchat accounts hacked in a similar way. Most, if not all, of the victims attended the high school she attended and had some connection to Acquaintance 1.
A second victim, Victim 2, who lives in the Northern District of New York, filed a police report on December 7, 2019. According to Victim 2, his Snapchat account received messages from Acquaintance 3's Snapchat account requesting his login credentials for his Snapchat account. The person operating Acquaintance 3's account claimed that she deleted her Snapchat account and wanted to login from Victim 2's account to confirm her account was deleted. Victim 2 provided who he believed was Acquaintance 3 with his Snapchat login credentials. Like Victim 1, a short time later, Victim 2 received a text message purported to be Snapchat Security, indicating that his account was locked due to suspicious activity. The text message then requested Victim 2's pin number to unlock the account. Victim 2 provided his pin number, which was also the same as the pin number for Victim 2's “My Eyes Only” folder. Victim 2 was then locked out of his Snapchat account. Thereafter, Victim 2’s account was used to send a photo of male genitalia to 11 Snapchat users, with the caption “send a nude back.”
Investigators traced the phone numbers purporting to send text messages from Snapchat security and the IP addresses used to hack into the victims’ Snapchat accounts, and each resolved to the defendant, David Mondore. A search of Mondore’s iCloud account revealed the photo of Victim 1 described above; the photos that were sent to Victim 1’s Snapchat account in response to the request for explicit photos; a Snapchat conversation between Victim 1 and Acquaintance 1; and the photo of Victim 2 described above.
“This case should serve as a cautionary reminder that many individuals lurking on social media use those platforms to engage in decidedly anti-social behavior,” stated U.S. Attorney Kennedy. “As alleged, defendant engaged in multiple manipulative techniques in order to hack his way into the accounts of social media users so that he could get what he was after—explicit photographs of those users. While it may sound mundane, my advice is pretty simple and it applies whether you are communicating online or over the phone—do not share your personal information, especially your passwords, with anyone.”
“David Mondore’s alleged crimes are predatory,” said Stephen Belongia, Special Agent-in-Charge of the FBI’s Buffalo Office. “The facts in this case are all-too-familiar to us in the FBI. Here, and across the globe, we have witnessed hackings coupled with exploitation and extortion, and our agents and analysts are acutely focused on attacking this cyber-related criminal behavior. I thank the brave victims in this case who, although terrorized, came forward and reported what happened to them. And while it must have been difficult to do, by coming forward they were instrumental in keeping future names off Mondore’s long list of alleged victims.”
Anyone who believes their Snapchat account was compromised in a similar manner is asked to call the FBI at 716-856-7800.
The defendant is making an initial appearance this afternoon in the Southern District of New York, and will be returned to the Western District of New York at a later date.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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