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17 September 2020
Texas Woman Sentenced to 12 Years in Prison for Her Role in International Thai Sex Trafficking OrganizationRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of WARALEE WANLESS, 41, to 144 months in prison for her role in a massive international sex trafficking organization that was responsible for coercing hundreds of Thai women to engage in commercial sex acts across the United States. WANLESS was sentenced on September 16, 2020, by Senior Judge Donovan Frank in U.S. District Court in St. Paul, Minnesota.
Following a six-week trial, on December 12, 2018, a federal jury convicted WANLESS and four other defendants for their roles in operating the sex trafficking enterprise. Thirty-one defendants pleaded guilty prior to the 2018 trial. To date, 30 defendants have been sentenced.
As proven at trial, the sex trafficking organization coerced hundreds of women from Bangkok, Thailand, to engage in commercial sex acts in various cities across the United States, including Minneapolis, Los Angeles, Chicago, Atlanta, Phoenix, Washington, D.C., Las Vegas, Houston, Dallas, Seattle, and Austin. The trafficking victims were forced to participate in the criminal scheme through misleading promises of a better life in the United States and the ability to provide money to their families in Thailand. Once in the United States, the victims were sent to houses of prostitution, including several that WANLESS ran in Chicago, Dallas, and Washington, D.C., where they were forced to have sex with strangers – every day – for up to 12 hours a day, at times having sex with 10 men a day. The victims were isolated from the outside world, and their families in Thailand were threatened.
As proven at trial, the organization also engaged in widespread visa fraud to facilitate the international transportation of the victims and engaged in rampant and sophisticated money laundering in order to promote and conceal illegal profits. During the extensive investigation, law enforcement traced tens of millions of dollars to the organization.
Multiple agencies assisted in this investigation over the past five years including: Homeland Security Investigations; the Criminal Investigation Division of the IRS; the Department of Justice’s Criminal Division’s Money Laundering and Asset Recovery Section; the Department of Justice’s Civil Rights Division’s Human Trafficking Prosecution Unit; the St. Paul Police Department; the Bureau of Criminal Apprehension’s Minnesota Human Trafficking Investigators Task Force; the Anoka County Sheriff’s Office; the Cook County (Illinois) Sheriff’s Office; the State Department Diplomatic Security Service; and the International Organized Crime Intelligence and Operations Center (IOC-2). United States Attorney MacDonald also thanks the Thai Community Development Center for the support and advocacy they have done on behalf of the victims of this sex trafficking organization.
Assistant United States Attorneys Melinda Williams, Laura Provinzino, and Craig Baune are prosecuting the case.
This case is filed as United States v. Michael Morris, et al., 17-cr-107 (DWF/TNL) and United States v. Sumalee Intarathong, et al., 16-cr-257 (DWF/TNL).
Defendant Information:
WARALEE WANLESS, 41
The Colony, Texas
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
Sentenced:
- 144 months in prison
- Five years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Texas Man Charged in Miami Federal Court with Using False Payroll Documents to Obtain $1.2 Million in Covid ReliefRead the Press Release
MIAMI – Texas resident Uzoamaka Leonard Ohaebosim, 46, has been charged in the Southern District of Florida with federal bank fraud and making false statements to a financial institution after allegedly lying about his movie company’s payroll expenses and obtaining $1.2 million in Paycheck Protection Program (PPP) funds.
Ohaebosim was arrested in Texas and made his initial appearance in federal court there today. Authorities have seized the money.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge Kyle Myles of the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General (OIG), Office of Investigation’s Atlanta Regional Office, Eastern Regional Office, Gary Smith, Special-Agent-in-Charge, Southern Field Division, Treasury Inspector General for Tax Administration (TIGTA), Special Agent in Charge Michael J. De Palma of the IRS-Criminal Investigation (CI) Miami Office, and Special Agent in Charge Kevin A. Kupperbusch of the U.S. Small Business Association (SBA)-OIG, Investigations Division made the announcement.
The criminal complaint alleges that Ohaebosim sought approximately $1.2 million in PPP loans through applications to an insured financial institution. The complaint alleges that Ohaebosim submitted a PPP loan application that made numerous false and misleading statements regarding his company’s payroll expenses. Specifically, as part of the loan application, Ohaebosim allegedly provided a false IRS payroll tax form indicating that his company, Spite the Movie, LLC (“STM”), had over 100 employees who had received wages of approximately $983,000 with taxes withheld of approximately $122,000 in the first quarter of 2020. In truth, and in fact, STM had not paid these employees and had not filed this form with the IRS. Relying on this false IRS form, the financial institution in South Florida approved and funded approximately $1.2 million in PPP loans. Law enforcement has seized these funds.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FDIC-OIG, TIGTA, IRS-CI, and the SBA-OIG. Assistant U.S. Attorney Michael Berger of the Southern District of Florida is prosecuting the case.
Related court documents and information appear on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case no. 20-cr-03573.
Takedown Completes Arrests of 15 Alleged Drug Traffickers in Syracuse AreaRead the Press Release
SYRACUSE, NEW YORK – Five men arrested in Syracuse yesterday are alleged to be members of a conspiracy to traffic in cocaine and heroin operating between Puerto Rico, New York City, and Syracuse, announced Acting U.S. Attorney Antoinette T. Bacon, Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division, and Chief Kenton Buckner, City of Syracuse Police Department. Yesterday’s takedown follows a series of previous arrests by the multi-agency investigation that now includes 15 defendants.
The five men arrested yesterday appeared today in court on federal criminal complaints alleging a conspiracy to distribute and possess with intent to distribute cocaine and heroin, which operated from May 2020 to September 16, 2020. Thirteen of the defendants are residents of Onondaga County, one defendant is a resident of the Bronx, New York, and one defendant is a resident of Puerto Rico.
As part of this investigation, law enforcement seized approximately 4.5 kilograms of cocaine, 1,140 bags of heroin (approximately 44 grams), $75,000, a ghost gun, and three handguns – a Taurus PT 809 9mm handgun, a Ruger revolver, a Highpoint .40 caliber, and the lower part of a Glock pistol.
“These arrests confirm that even during this unprecedented global pandemic, federal, state, and local law enforcement agencies are working together to protect our communities from drug trafficking. Our commitment will never waver,” said Antoinette T. Bacon, Acting United States Attorney.
“A major drug pipeline from Puerto Rico to Syracuse has been dismantled as a result of this homegrown investigation,” said DEA Special Agent in Charge Ray Donovan. “Not only did we identify this drug network’s operations, we targeted the local dealers, taking guns and drugs off the streets of Syracuse. I applaud our law enforcement partners for their hard work and determination in keeping our cities safe.”
“The Syracuse Police Department is pleased to report a major drug operation has been removed from our city. We accomplished the mission by coordination with our federal partners at the US Attorney's Office and the DEA. We will continue these collaborations in our efforts to pursue individuals responsible for drug trafficking and gang violence in our city. It is our sincere hope this progress will improve the quality of life in some of our challenged communities,” said Syracuse Police Chief Kenton Buckner.
The charges resulting from the arrests are summarized below.
June/July Arrests
In June and July 2020, DEA and Syracuse Police arrested three (3) defendants alleged in federal criminal complaints to be members of a conspiracy to possess with intent to distribute and distribute heroin and cocaine.
On June 24, 2020, Jikeya McBride, 31, of Syracuse, NY was arrested and charged with distribution and possession with intent to distribute cocaine and heroin. If convicted, McBride faces up to 20 years in prison, a fine of up to $1,000,000 and a term of supervised release of at least three years and up to life.
On June 24, 2020, Aaron Acevedo, 27, of Syracuse, NY was arrested and charged with distribution and possession with intent to distribute cocaine and heroin, following the execution of a federal search warrant at his Syracuse, New York residence. If convicted, Acevedo faces up to 20 years in prison, a fine of up to $1,000,000 and a term of supervised release of at least three years and up to life.
On July 13, 2020, Claudio Acevedo-Maquita, 55, of the Bronx, NY was arrested and charged with possession with intent to distribute heroin following a traffic stop where forty-four (44) “bricks” of heroin (each “brick” consists of 50 individual bags of heroin) were seized in the vehicle. Acevedo-Maquita was allegedly travelling from New York City to Syracuse, New York, to deliver the heroin to co-conspirator Samuel Matos. If convicted, Acevedo-Maquita faces up to 20 years in prison, a fine of up to $1,000,000 and a term of supervised release of at least three years and up to life.
August 19, 2020 Arrests
On August 19, 2020, the following defendants were arrested and charged in federal criminal complaints alleging conspiracy to distribute and possess with intent to distribute heroin and cocaine:
Luis Mendez, 37, Syracuse, NY
Samuel Matos, 27, Syracuse, NY
Hector Santiago, 31, Syracuse, NY
Helbert Calo-Birriel, 31, Syracuse, NY
John Resto, 25, Syracuse, NY
Luis Resto, 25, Syracuse, NY
Jose Medina, 34, Syracuse, NY
If convicted, these defendants face between 5 years and life in prison, a fine of up to $5,000,000, and a term of supervised release of at least four years and up to life.
September 16, 2020 Arrests
On September 16, 2020, the following defendants were arrested and charged in federal criminal complaints alleging conspiracy to distribute and possess with intent to distribute heroin and cocaine:
Omar Fuentes, 24, Syracuse, NY
Jobany Tirado, 37, Syracuse, NY
Rahfet Shehadeh, 27, Syracuse, NY
Angel Negron-Collazo, 24, Syracuse, NY
If convicted, these defendants face between 10 years and life in prison, a fine of up to $10,000,000, and a supervised release term of at least 5 years and up to life.
Omar Fuentes is also alleged to have possessed a pistol in furtherance of a drug trafficking crime at the time of his arrest. If convicted of this count, Fuentes faces a mandatory consecutive term of 5 years in prison for the firearm count.
On September 16, 2020, Joel Franco-Ortiz, 34, of Puerto Rico, was arrested during a traffic stop and charged with possession with intent to distribute cocaine and heroin, and possession of a firearm in furtherance of a drug trafficking crime. If convicted, he faces up to 20 years in prison, a fine of up to $1,000,000 and terms of supervised release of at least three years and up to life for the drug-related counts, and a mandatory consecutive term of 5 years in prison for the firearm count.
A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the criminal complaints are merely accusations and all defendants are presumed innocent unless and until proven guilty.
This case is being investigated by the United States Drug Enforcement Administration (DEA), the Syracuse Police Department, the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Investigators from the Onondaga County District Attorney’s Office, the United States Postal Inspection Service, the New York State Police, and the Onondaga County Sheriff’s Department, and is being prosecuted by Assistant U.S. Attorney Sahar L. Amandolare.
Survivors of Sextortion and their Parents Share their Stories at Community WebinarRead the Press Release
DETROIT - The United States Attorney’s Office will convene a community webinar on Friday, September 18, 2020. Speakers at the webinar will talk about Sextortion. Sextortion is a type of online child exploitation where victims are coerced into providing sexually explicit images or videos often in compliance with a threat being made against them or their families. Sextortion crimes have been on the rise in recent years. With children occupying their time with internet activities during the pandemic, this increases their vulnerability to being targeted.
“The crime of sextortion begins on children’s smartphones, computers and other electronic devices,” stated United States Attorney Matthew Schneider. "“Parents, please speak with your children about the dangers of chatting online so we can keep all of our children safe. We hope this webinar will provide parents and children with helpful information so others don’t fall victim to this heinous crime.”
Join us for a webinar in which survivors of sextortion and their parents will share their experiences and advice. The webinar will also include general information about sextortion and supporting victims in court. Carol Todd and Dan Cojanu from the Canine Advocacy Program will both speak at the event. Carol Todd’s story and website can be found here https://www.amandatoddlegacy.org/about-carol.html
Parents, teachers, students, law enforcement, and community leaders are encouraged to attend.
This event is free and open to the public. The meeting will take place on Friday, September 18 from 11:00 a.m. to 12:15 p.m.
To attend, please click on the following link
https://usao.webex.com/usao/onstage/g.php?MTID=eb7fb7cf39cdcdba69ef68d1bbad12779 and type in Detroit313! Attendance is limited to the first 1,000 users.
NOTE: This event is open press.
State-Sponsored Iranian Hackers Indicted for Computer Intrusions at U.S. Satellite CompaniesRead the Press Release
An indictment was unsealed today charging three computer hackers, all of whom were residents and nationals of the Islamic Republic of Iran (Iran), with engaging in a coordinated campaign of identity theft and hacking on behalf of Iran’s Islamic Revolutionary Guard Corps (IRGC), a designated foreign terrorist organization, in order to steal critical information related to U.S. aerospace and satellite technology and resources.
“For the third time in three days, the Department has charged Iranian hackers,” said Assistant Attorney General for National Security John C. Demers. “This case highlights the Islamic Revolutionary Guard Corps’ efforts to infiltrate the networks of American companies in search of valuable commercial information and intellectual property. It is yet another effort by a rogue foreign nation to steal the fruits of this country’s hard work and expertise.”
“We will relentlessly pursue and expose those who seek to harm American companies and individuals wherever they reside in the world,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “The use of malware, the theft of commercial data and intellectual property, and the use of social engineering to steal the identities of U.S. citizens to accomplish unlawful acts will not be tolerated. Along with our incredible and steadfast law enforcement partners, the Eastern District of Virginia continues to lead efforts to combat serious cybercrime globally and the charges outlined in the indictment exposing IRGC linked hacking operations in the United States are just another example of the fruits of our seamless teamwork.”
“Today’s charges are yet another example of the FBI’s dedication to investigating those who target and attempt to steal data and proprietary information from the U.S.,” said James A. Dawson, Assistant Director in Charge of the FBI’s Washington Field Office. “Today’s charges allege that these individuals conspired in a coordinated campaign with known IRGC members and acted at their direction. The defendants targeted thousands of individuals in an attempt to steal critical information related to U.S. aerospace and satellite technology. The FBI remains dedicated to protecting the U.S., and we continue to impose risk and consequences on cyber adversaries through our unique authorities, world-class capabilities, and enduring partnerships.”
As alleged in the indictment, the defendants’ hacking campaign, which targeted numerous companies and organizations in the United States and abroad, began in approximately July 2015 and continued until at least February 2019. According to the indictment, the defendants at one time possessed a target list of over 1,800 online accounts, including accounts belonging to organizations and companies involved in aerospace or satellite technology and international government organizations in Australia, Israel, Singapore, the United States, and the United Kingdom.
To facilitate their victimization of these targets, the defendants engaged in a coordinated campaign of social engineering to identify real U.S. citizens working in the satellite and aerospace fields whose identities the defendants could assume online. The defendants then impersonated those individuals and used their stolen identities to register email addresses and fraudulently purchase domains and hacking tools for use in the scheme. The defendants then created customized spear phishing emails that purported to be from the individuals whose identities the defendants had stolen, in an attempt to entice the recipients to click on malicious links embedded in the emails. Once a recipient clicked on a malicious link, malware would be downloaded to the individual’s computer, giving the defendants unauthorized access to the recipient’s computer and network. The defendants then used additional hacking tools to maintain unauthorized access, escalate their privileges, and steal data sought by the IRGC. Using these methods, the defendants successfully compromised multiple victim networks, resulting in the theft of sensitive commercial information, intellectual property, and personal data from victim companies, including a satellite-tracking company and a satellite voice and data communication company.
Charged in the indictment are defendants Said Pourkarim Arabi, 34, Mohammad Reza Espargham, age unknown, and Mohammad Bayati, 34. The U.S. District Court for the Eastern District of Virginia has issued warrants for their arrest.
Arabi, who was a member of the IRGC, is charged with conspiracy to commit computer intrusions, which carries a maximum sentence of five years in prison, obtaining information by unauthorized access to protected computers, which carries a maximum sentence of five years in prison, intentional damage to protected computers, which carries a maximum sentence of ten years in prison, aggravated identity theft, which carries a mandatory sentence of two years in prison, and conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison.
Esphargham is charged with conspiracy to commit computer intrusions, which carries a maximum sentence of five years in prison, obtaining information by unauthorized access to protected computers, which carries a maximum sentence of five years in prison, intentional damage to protected computers, which carries a maximum sentence of ten years in prison, and conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison.
Bayati is charged with conspiracy to commit computer intrusions, which carries a maximum sentence of five years in prison, and conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison.
Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorneys Nathaniel Smith III, Jay V. Prabhu, and Danya Atiyeh, and Trial Attorney Evan Turgeon of the National Security Division’s Counterintelligence and Export Control Section are prosecuting this case.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Springfield Man Sentenced to More than 15 Years in Prison for Sex TraffickingRead the Press Release
BOSTON – A Springfield man was sentenced yesterday for sex trafficking female victims through a prostitution business.
William Coleman, 49, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 186 months in prison and five years of supervised release. In February 2020, Coleman pleaded guilty to one count of conspiracy to commit sex trafficking and nine counts of sex trafficking. Coleman has been in custody since his arrest on Dec. 23, 2018.
“This sentence is a stern reminder of the consequences facing those involved in the unconscionable practice of sex trafficking,” said United States Attorney Andrew E. Lelling. “My office, in tandem with our law enforcement partners, remains steadfast in its resolve to eradicate illegal sex trafficking operations that prey on vulnerable victims.”
“This sentencing is yet another success in the fight against the crime of human trafficking in our region,” said Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations (HSI), Boston. “We applaud this sentence as a measure of justice for the victims who suffered often brutal sexual exploitation at the hands of Coleman through his web of illegal activity which covered multiple states. This case could never have been completed without the expert, close coordination of our concerned community of stakeholders in the Western Massachusetts Human Trafficking Working Group.”
From 2016 to 2018, Coleman ran a prostitution business in the Springfield area, the greater Hartford, Conn., area, and other parts of Connecticut. Coleman used violence and the drug addictions of eight female victims to coerce them into engaging in commercial sex acts with paying customers. The victims were typically required to turn over all of their earnings to Coleman, and their daily lives were tightly controlled by him. Most of the women were not allowed to keep any of the money they earned, and they were only to obtain their drugs – in most cases, heroin – from Coleman. Victims who did not engage in prostitution for Coleman, or who did not follow his rules, were subjected to physical assaults, sexual violence and the withholding of drugs. Coleman used websites to post prostitution advertisements for the victims working for him.
U.S. Attorney Lelling; Hampden County District Attorney Anthony D. Gulluni; HSI Boston Acting SAC Shea; Hampden County Sheriff Nicholas Cocchi; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Springfield Police Commissioner Cheryl Clapprood; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office prosecuted the case.
This case is the result of the efforts of the Western Massachusetts Human Trafficking Working Group, which was established in August 2015 to investigate and prosecute crimes involving commercial sex trafficking.
Sixteen Alleged Members and Associates of Southwest Baltimore “NFL” Gang Facing Federal Indictment, Including Federal Charges for a Racketeering Conspiracy Involving Four Murders and Murder-For-HireRead the Press Release
Baltimore, Maryland – A federal grand jury has returned a fourth superseding indictment charging 16 defendants with participating in violent racketeering and drug conspiracies that allegedly resulted in four murders, one attempted murder, five overdose deaths, and nine overdose distributions resulting in serious bodily injury. The fourth superseding indictment was returned on September 15, 2020, and includes three new defendants, as well as new charges, including a racketeering conspiracy, a murder-for-hire conspiracy, a conspiracy to distribute controlled substances resulting in serious physical injury and death, and related drug and gun charges.
The fourth superseding indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Chief Marcus Jones of the Montgomery County Police Department; and Commissioner Michael Harrison of the Baltimore Police Department.
U.S. Attorney Robert K. Hur stated, “We will continue to work with our law enforcement partners to reduce violent crime and deadly drug dealing and hold accountable those who bring them to our streets. And criminals should be on notice that witness intimidation and retaliation will not be tolerated—period. We are determined to root out the sources of this type of violence from our neighborhoods and seek the community’s continue help in doing so.”
“These are violent, dangerous men who have allegedly terrorized the streets of Baltimore for years with murder-for-hire plots, witness intimidation, drug trafficking, laced drugs and other brazen criminal acts,” said Jennifer C. Boone, Special Agent in Charge of the FBI Baltimore Field Office. “This gang was devastating neighborhoods and destroying families. Today, together, with the help of our law enforcement partners, I am proud to announce these significant indictments. We will continue to work together to fight crime, but we also need the need community assistance through tips and information to help keep Baltimore safe.”
The following defendants are charged in the fourth superseding indictment:
Gregory Butler, a/k/a Gotti, Sags and Little Dick, age 28, of Baltimore; Darran Malik Butler, a/k/a Lik, age 21, of Baltimore; Bobby Cannon, a/k/a Freaky, age 23 of Baltimore; Darean Cook, age 27, of Baltimore; Juawan Davis, a/k/a Fat Daddy, age 24, of Baltimore; Edward Buddy Hall, a/k/a Gwar, age 54, of Baltimore; Timothy Legard, age 29, of Bunker Hill, West Virginia; Davon Owens, a/k/a Gusto, age 31, of Baltimore; D’Andre Preston, a/k/a Whiteboy and Whites, age 23, of Baltimore; Desmond Ringgold, a/k/a Worm and Fool, age 28, of Baltimore; James Henry Roberts, a/k/a Bub, age 29, of Baltimore; Tirrel Saunders, a/k/a Pretty, age 32, of Baltimore; Nathan Stanley, age 48, of Rixeyville, Virginia; Jamie Wagoner, age 37, of Stephens City, Virginia; Laura Warner, age 36, of Berkeley County; and
Emanuel Watkins, age 62, of Baltimore.According to the 33-count indictment, from 2016 to March 26, 2020, Gregory Butler, Darran Butler, Cannon, Davis, Preston, and Roberts were part of the NFL criminal enterprise, which has social and familial ties to the Edmondson Village neighborhood in southwest Baltimore. The term NFL stands for Normandy, Franklin, and Loudon, which are three adjacent streets that run through the Edmondson Village. The fourth superseding indictment alleges that those six defendants engaged in a pattern of criminal racketeering activity including acts involving murder, narcotics trafficking and smuggling, illegal firearms possession, bribery, witness intimidation, and witness retaliation.
The fourth superseding indictment alleges that NFL members and associates purchased, maintained, and circulated weapons and firearms for use in criminal activity by NFL members and associates, sometimes obtaining firearms from drug customers as a form of payment in exchange for drugs. According to the fourth superseding indictment, NFL members used firearms in connection with the enterprise’s illegal activities, including, drug trafficking and acts involving murder, and used violence, threats, and intimidation to prevent victims and witnesses from cooperating with law enforcement against NFL members and associates about criminal acts committed by NFL.
According to the fourth superseding indictment, NFL members and associates were involved in murder and attempted murder, including murder-for-hire schemes. NFL members and associates offered bounties for the murder of witnesses and rivals and allegedly acted as brokers connecting hitmen with individuals who had offered bounties for the murder of witnesses and rivals. NFL members and associates also allegedly carried out contract killings to enrich themselves and to retaliate against witnesses and rivals.
Further, the fourth superseding indictment alleges that NFL members and associates used social media to promote the enterprise, including by posting displays of wealth and advertising affiliation to the NFL Enterprise, as well as to intimidate and retaliate against actual and suspected witnesses, including by posting displays of firearms, brandishing firearms, intimating the use of firearms, and revealing information about the identity of suspected cooperating witnesses. In addition, NFL members and associates assisted incarcerated NFL members and associates by moving evidence and contraband for them, and assisting with their drug trafficking operations while they remained incarcerated, including smuggling contraband cell phones and controlled substances into correctional facilities.
From at least 2016 through his arrest on April 3, 2019, Gregory Butler allegedly controlled a drug trafficking organization (DTO) that distributed large quantities of heroin, fentanyl, cocaine, and crack cocaine in Maryland, Virginia, West Virginia, and Pennsylvania. The indictment alleges that in order to maximize their profits, members of the DTO cut the heroin and crack cocaine with other substances, such as fentanyl and diphenhydramine (often found in sleeping pills). As detailed in the fourth superseding indictment, the defendants were aware that the drugs they distributed were causing overdoses, with at least five overdose deaths being attributed to the distribution of drugs by members of the conspiracy, including the father of one of the conspirators.
If convicted, the six defendants charged with racketeering face a maximum of life in prison for the racketeering conspiracy; all the defendants except Preston, face a maximum of life in prison for conspiracy to distribute a controlled substance resulting in death or serious physical injury; and Gregory Butler, Hall, and Wagoner each face a mandatory minimum of 20 years in federal prison and a maximum of life in prison, for each count of distribution of a controlled substance resulting in death or serious injury. Darran Butler, Preston, and Roberts also face a maximum of life in prison for conspiracy to use and/or for the use of interstate commerce facilities in the commission of murder-for-hire; Davis, Owens and Roberts also face a maximum sentence of life in prison for possessing with intent to distribute heroin, crack cocaine, or fentanyl. Cannon, Preston, and Warner face a maximum sentence of 40 years in prison for possessing with intent to distribute heroin, crack cocaine, or fentanyl. Gregory Butler, Cannon, Davis, Hall, Owens, and Roberts also face a mandatory minimum sentence of five years in prison, consecutive to any other sentence, and a maximum sentence of life in prison for possession of a firearm in relation to a drug trafficking crime. Finally, Gregory Butler, Hall, Owens, Preston, and Roberts face a maximum sentence of 10 years in prison for possession of a firearm and ammunition by a prohibited person. Fifteen defendants charged in the fourth superseding indictment have been arrested and are detained pending trial. Jamie Wagoner remains a fugitive.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI, the DEA, the Montgomery County Police Department and the Baltimore Police Department for their work in the investigation. Mr. Hur commended the U.S. Postal Inspection Service; the City of Rockville Police Department; the Baltimore County, Howard County, and Montgomery County Police Departments; the Frederick County Sheriff’s Office; the Maryland State Police; the West Virginia State Police; the Virginia State Police; the Warren County (VA) Sheriff’s Department; the Winchester (VA) and Front Royal (VA) Police Departments; and the Frederick County and Howard County State’s Attorney’s Offices. Mr. Hur thanked Assistant U.S. Attorneys Matthew DellaBetta and Michael Goldsticker, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Sioux Falls Woman Charged with Theft of Government Funds, False Statement, and Concealment of Information from SSI ProgramRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, woman has been indicted by a federal grand jury for Theft of Government Funds, False Statement, and Concealment of Information from SSI Program.
Amber Lynn Roggenkamp, age 40, was indicted on September 1, 2020. She appeared before U.S. Magistrate Judge Veronica L. Duffy on September 15, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
On the Theft of Government charge, the Indictment alleges that between on or about February 6, 2017, and September 30, 2019, Roggenkamp willfully and knowingly embezzled, stole, and purloined money from Title XVI Supplemental Security Income (SSI). Roggenkamp lied to the Social Security Administration in order to obtain SSI benefits for her son.
On the False Statement charge, the Indictment alleges that on or about July 12, 2019, Roggenkamp knowingly and willfully made false, fictitious, and fraudulent statement and representations during a SSI non-medical review. Roggenkamp did not accurately report her household resources, including the balance of her savings account.
Finally, on the Concealment of Information from SSI Program charge, the Indictment alleges that on or about September 28, 2017, Roggenkamp, having knowledge of the occurrence of an event affecting the initial and continued right to receive payment of Title XVI SSI benefits payments on behalf of another individual, concealed and failed to disclose such event with the intent to fraudulently secure such benefits in a greater amount and quantity than was due, and when no such benefit was authorized. Specifically, Roggenkamp failed to disclose the reactivation of her savings account with a large deposit in order to continue to receive and spend SSI benefits payments made by the Social Security Administration for the benefit of the minor child for whom she served as representative payee.
The charges are merely accusations and Roggenkamp is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Social Security Administration, Cooperative Disability Investigation Unit. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
Roggenkamp was released on bond pending trial. A trial date has not been set.
Sex Offender Convicted of Transporting Child PornographyRead the Press Release
Orlando, Florida –A federal jury has found Michael David Harrison (52, Sparks, NV) guilty of transportation of child pornography. Harrison faces a mandatory minimum penalty of 15 years, and up to 40 years, in federal prison. His sentencing hearing is scheduled for December 3, 2020.
Harrison had been indicted on December 4, 2019.
According to testimony and evidence presented at trial, Harrison transported multiple videos depicting the sexual abuse of young children from his home in Nevada to Florida. He then transported the videos on a cruise to the Bahamas. Agents from U.S. Customs and Border Protection detected the videos on Harrison’s computer when he reentered the United States. Harrison was previously convicted, in 2009, of multiple sex offenses against victims under the age of 16.
This case was investigated by U.S. Customs and Border Protection, Homeland Security Investigations, and the Brevard County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Emily C. L. Chang.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.Senior federal agent charged with violating civil rightsRead the Press Release
McALLEN, Texas – A 44-year-old Border Patrol (BP) supervisor is set to appear in federal court on allegations she deprived several constitutional rights of a La Joya woman, announced U.S. Attorney Ryan K. Patrick.
Adriana Gandarilla is expected to make her initial appearance before U.S. Magistrate Judge J. Scott Hacker Friday, Sept. 18.
She is a Senior BP agent with 19 years of experience.
On May 6, 2018, a La Joya woman began recording law enforcement activities taking place at her residence, according to the charges. At that time, Gandarilla allegedly commanded the woman to stop recording with her cell phone.
According to the allegations, Gandarilla physically forced the woman to delete the recording by grabbing her by her neck and arms. Gandarilla allegedly pushed her against the front outside wall of the woman’s residence.
If convicted of the civil rights charge, Gandarilla faces up to one year in federal prison and a possible $100,000 maximum fine.
Customs and Border Protection - Office of Professional Responsibility conducted the investigation. Assistant U.S. Attorney Sebastian Edwards is prosecuting the case.
A criminal information is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Savannah man admits 2018 murder of soldier's wife at Fort StewartRead the Press Release
SAVANNAH, GA: A Savannah man has admitted to killing the wife of a deployed U.S. Army soldier on post at Fort Stewart.
Stafon Jamar Davis, 28, of Savannah, pled guilty to Premeditated Murder and to Possession of a Firearm by a Convicted Felon in the July 9, 2018 shooting death of Abree Boykin, 24, a resident of post housing at Fort Stewart Army Reservation, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
“Stafon Davis’ admission of guilt in the cold-blooded murder of Abree Boykin will help bring some degree of closure in this horrific crime against the spouse of a deployed American soldier,” said U.S. Attorney Christine. “Our law enforcement agencies and prosecutors have performed outstanding work in bringing this killer to justice.”
Abree Boykin was the wife of SGT Shawn Boykin, a member of the U.S. Army who was assigned to Fort Stewart’s 1st Armored Brigade Combat Team, 3rd Infantry Division. At the time of the murder, SGT Boykin was deployed in South Korea.
Davis admitted to being a childhood friend of Abree Boykin and to shooting and killing her in the early morning hours of July 9, 2018, in her on post residence and fleeing Fort Stewart in her vehicle. Davis, who had been released from prison after serving a federal sentence for armed robbery, later was apprehended in West Palm Beach., Fla.
“This was a horrific and senseless murder of a member of our Army family,” said Chris Grey, spokesperson for the U.S. Army Criminal Investigation Command. “Our highly-trained special agents worked tirelessly and methodically with our law enforcement partners to bring this individual to justice.”
“The outcome of this case is a direct result of the partnership we have with the U.S. Army and the U.S. Attorney's Office Southern District of Georgia,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Abree Boykin's family and friends will never be rid of the pain and suffering this senseless murder has caused them, but it does give them some sense of resolve to know that justice will be served.”
This case is being investigated by the FBI and the Army Criminal Investigation Command, with assistance from the Savannah Police Department and the U.S. Marshals Service, and prosecuted by Assistant U.S. Attorney Jennifer G. Solari and Special Assistant U.S. Attorney Katelyn Semales.
Saugerties Man Sentenced to 70 Years for Child Sexual Exploitation OffensesRead the Press Release
ALBANY, NEW YORK – Matthew R. Osuba, age 35, of Saugerties, New York, was sentenced yesterday to 840 months in prison for sexually exploiting a child, and distributing and possessing child pornography.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
During Osuba’s August 2019 jury trial, evidence demonstrated that Osuba created and appeared in a video depicting sexually explicit conduct with a sleeping child. He was also convicted of sending pornographic images of children over the internet, and possessing additional child pornography on his cell phone.
At sentencing, Senior United States District Judge Thomas J. McAvoy found that Osuba had engaged in a pattern of sexual exploitation of children. Judge McAvoy found by a preponderance of the evidence that Osuba had sexually abused two additional children, each under the age of 5.
Judge McAvoy stated that Osuba’s 70-year term of imprisonment – the maximum permitted by law – was necessary to protect children and the public, because Osuba posed a significant risk of committing future child pornography offenses and “hands-on” child sexual abuse. Judge McAvoy also imposed a 25-year term of supervised release to follow Osuba’s term of imprisonment, and ordered him to pay $3,000 in restitution to one of his victims.
This case was investigated by the FBI and its Child Exploitation Task Force, which includes investigators from the New York State Police, Town of Colonie Police Department, and Warren County Sheriff’s Department. The case was prosecuted by Assistant U.S. Attorneys Katherine Kopita and Shira Hoffman.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Rosebud Man Sentenced on Assault and Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man convicted of Assault with a Dangerous Weapon and False Statements During Purchase of a Firearm was sentenced on September 14, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
John Larvie, age 30, was sentenced to 38 months in federal prison, followed by 3 years of supervised release, for each charge, running concurrently to each other, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Larvie was indicted by a federal grand jury on June 11, 2019, for the Assault charge and again on October 16, 2019, for the Firearm charge. He pled guilty on May 5, 2020, to both charges.
The conviction stemmed from incidents that occurred on November 20, 2018, and July 22, 2019. On November 20, 2018, after an argument escalated between Larvie and his dating partner, Larvie stomped on his dating partner’s chest, while wearing boots, with the intent to do bodily harm to her. On July 22, 2019, shortly after being prosecuted and convicted in Tribal court for sexually assaulting his dating partner, Larvie attempted to purchase an AR15-style rifle. While filling out the ATF Form 4473, Larvie, knowing he had been convicted of a misdemeanor crime of domestic violence, falsely represented that he had not been convicted of a domestic violence crime, in an effort to obtain the weapon.
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.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Michael Elmore prosecuted the case.
Larvie remains in the custody of the U.S. Marshals Service.
Rosebud Man Indicted on Theft and Drug ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Theft in Connection with Health Care, Theft From a Tribal Organization, and Obtaining Controlled Substances by Deception.
Michael Brian Whirlwind Soldier, age 47, was indicted on September 9, 2020. He appeared before U.S. Magistrate Judge Veronica L. Duffy on September 15, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between December 17, 2019, and July 28, 2020, Whirlwind Soldier, a paramedic and the director of the Crow Creek Ambulance Service, did knowingly and willfully embezzle, steal, and convert without authority to his own use hundreds of vials of fentanyl, morphine, and hydromorphone belonging to the Crow Creek Ambulance Service.
The charges are merely accusations and Whirlwind Soldier is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Department of Health and Human Services, the Drug Enforcement Administration, the South Dakota Division of Criminal Investigation, and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Whirlwind Soldier was released on bond pending trial. A trial date has not been set.
Rogers Man Sentenced to 20 Years in Federal Prison for Drug PossessionRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, First Assistant United States Attorney for the Western District of Arkansas, announced that Shawn Schuckman, age 45, was sentenced today to 240 months in federal prison, followed by 4 years of supervised release for Possession with Intent to Distribute Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, during the course of an investigation into the distribution of controlled substances in the Western District of Arkansas, the Drug Enforcement Administration Fayetteville Resident Office (DEA) identified Schuckman, as a distributor of methamphetamine in Northwest Arkansas, and an investigation was initiated into his criminal activity.
In January 2020, upon the conclusion of the investigation, agents and local law enforcement attempted to take Schuckman into custody for his outstanding warrants. Following a short pursuit, Schuckman was apprehended. Investigators located and seized approximately 1,341.4 grams of actual methamphetamine from Schuckman’s hotel room, from the roadway (where he had thrown it out of the window during the pursuit), from his vehicle, and from his person.
A federal grand jury indicted Schuckman in March 2020, and he entered a guilty plea in June 2020.
This case was investigated by the Drug Enforcement Administration and the Benton County Narcotics Unit. Assistant United States Attorney Kim Harris prosecuted the case for the United States.
Putnam County Library Employee Indicted on Charges of Production and Distribution of Child Exploitation MaterialRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Kurt Batucan Sheldon (29, Interlachen) with one count of production of child exploitation material and two counts of distribution of child exploitation material. If convicted, Sheldon faces a mandatory minimum penalty of 15 years, and up to 30 years, in federal prison for the production count and a minimum mandatory penalty of 5 years, and up to 20 years, on each distribution count. In a previous detention hearing, held on September 14, 2020, the court ordered Sheldon detained pending further proceedings.
According to the indictment, Sheldon produced child exploitation material on May 3, 2020, and distributed child exploitation material on May 24 and May 26, 2016.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
Any person who was, or knows of someone who may have been, a possible child victim is urged to contact HSI at 1-866-DHS-2ICE or online via http://www.ice.gov/webform/hsi-tip-form.
This case was investigated by the Clay County Sheriff’s Office and Homeland Security Investigations. It will be prosecuted by Assistant United States Attorneys Ashley Washington and Kelly Karase.
It is another case 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.
Project Guardian: Princeton Man Sentenced for Federal Gun CrimeRead the Press Release
BLUEFIELD, W.Va. – A Princeton man was sentenced to 41 months in federal prison for being a felon in possession of a firearm, announced United States Attorney Mike Stuart. Akeem R. Dickerson, 28, also will serve three years of supervised release.
At his plea hearing in June, Dickerson admitted that on August 31, 2019, an officer with the Princeton Police Department pulled him over for not wearing his seatbelt while he was driving. During the traffic stop, the officer smelled marijuana. When asked about the marijuana smell, Dickerson admitted that he did in fact have marijuana in the car and he also admitted that he had a gun. The officer then searched the car with Dickerson’s consent. The officer found a Springfield, model XDS, .45 caliber semi-automatic handgun. Dickerson admitted that knew he was not supposed to possess any firearms because he was a convicted felon. Dickerson was prohibited from possessing any firearm under federal law because he was convicted in 2012 in McDowell County Circuit Court of the felony offenses of voluntary manslaughter and wanton endangerment with a firearm.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Princeton Police Department.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Timothy D. Boggess handled the prosecution.
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. The United States Attorney’s Office has prosecuted this case with support from the Project Guardian partners noted above. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
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. 1:20-cr-00011.
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Pittsburgh Woman Sentenced for Money Laundering ConspiracyRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA has been sentenced in federal court to one day in the custody of the United States Marshals Service, followed by three years of supervised release, on her conviction of conspiracy to launder monetary instruments, United States Attorney Scott W. Brady announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Holly Shrum, age 30.
According to information presented to the court, the Drug Enforcement Administration and other agencies conducted a multi-year investigation of the marijuana trafficking conspiracy of Shrum’s codefendants. From 2012 through 2017, Shrum’s codefendants arranged for marijuana to be supplied from the West Coast and mailed to the Pittsburgh area through the United States Postal Service. Shrum’s codefendants would then distribute the marijuana in the Western District of Pennsylvania, primarily on college campuses, such as Indiana University of Pennsylvania. During the operation of the conspiracy, Shrum conspired to launder proceeds from her codefendants’ marijuana trafficking operations.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
United States Attorney Brady commended the Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation, the Pittsburgh Bureau of Police, and the Indiana Borough Police for the investigation leading to the successful prosecution of Shrum.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
Parker Man Sentenced on Firearm ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Parker, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on September 15, 2020, by U.S. District Judge Charles B. Kornmann.
Rollin Lee Dollens, age 52, was sentenced to 3 years of probation with 8 months of house arrest, a $1,000 fine, a special assessment to the Federal Crime Victims Fund in the amount of $100, and forfeiture of a handgun.
Dollens was indicted by a federal grand jury on February 11, 2020. He pled guilty on September 15, 2020.
The conviction stemmed from an incident that occurred on September 16, 2019, wherein Dollens, an unlawful user of methamphetamine, knowingly possessed a handgun while driving in Corson County, South Dakota.
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.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the Corson County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Owner of third cockfighting venue and other defendants arrested in continuing crackdown on animal fighting operationsRead the Press Release
AUGUSTA, GA: An Emanuel County man has been arrested on federal charges for owning and operating a cockfighting venue that coordinated weekend contests with a nearby venue raided in June.
These coordinated law enforcement actions have now shut down what are believed to be the three largest animal fighting operations in the state of Georgia, with the prosecutions assisted by Georgia’s first dedicated federal animal cruelty prosecutor.
Wendell Allan Strickland, 66, of Swainsboro, Ga., was taken into custody Thursday morning, Sept. 17, for charges in a federal indictment on two counts of Sponsoring and Exhibiting an Animal in an Animal Fighting Venture; two counts of Conducting an Illegal Gambling Business; and one count of Possession and Transport of an Animal in an Animal Fighting Venture, all felonies; and one misdemeanor charge of Attending an Animal Fighting Venture, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charges carry penalties of up to five years in prison, along with substantial fines and asset forfeiture.
“Animal fighting operations are concentrated arenas of animal cruelty, and our office will aggressively pursue prosecution of anyone who seeks recreational thrills from such activities,” said U.S. Attorney Christine. “In coordination with our law enforcement partners, we have shut down three of these reprehensible operations and seized more than $220,000 in cash suspected to be illegal gambling proceeds.”
The investigation into animal fighting operations in the Southern District, led by the U.S. Department of Agriculture Office of the Inspector General (USDA-OIG) and in cooperation with multiple federal, state and local law enforcement agencies and the U.S. Attorney’s Office, determined that Strickland owned and operated The Red Barn on his Swainsboro property. Multiple law enforcement agencies participated in Operation Sunset in the early morning hours on Sept. 17 and arrested Strickland at the site, where the fighting pit was in the process of being dismantled and a box of cockfighting gear was seized.
Cockfights were held at The Red Barn on alternating weekend schedules with those at Little Sunset, a larger venue in nearby Midville, Ga., owned by William Shannon Scott, 48. Scott was arrested on federal charges as part of Operation Sunrise, a multi-agency raid of a cockfighting tournament at his property on June 20 in which nearly 200 possible defendants were identified.
A third cockfighting venue owner, Lanier Augustus Hightower Jr., 64, of Lincolnton, also is under indictment after a December 2019 raid on a cockfighting tournament on his farm. Hightower was arrested on federal warrants on Aug. 5 and has pled not guilty in a court appearance. Two of the defendants indicted for felony animal fighting charges along with Hightower were taken into custody Sept. 15, and more than two dozen defendants facing a misdemeanor charge of Attending an Animal Fighting Venture have had or scheduled initial appearance hearings.
“The cruel and inhumane practice of animal fighting has no place in a civilized society and is against federal law,” said Special Agent in Charge Jason Williams of USDA-OIG. “The outstanding work of the USDA-OIG agents who investigated this case made it possible to bring these operators of a major animal fighting venture to justice. This agency has made animal fighting a high priority in order to demonstrate that these vicious acts of cruelty to animals will not be tolerated.”
Indictments are only charges. Defendants are presumed innocent unless and until proven guilty.
The cases are being investigated by the USDA-OIG and prosecuted for the United States by Assistant U.S. Attorneys Alejandro V. Pascual IV and Xavier A. Cunningham, and Special Assistant U.S. Attorneys Jessica Rock and Edwin Caban Jr.
U.S. Attorney's Office for the Southern District of Georgia Animal fighting ring inside The Red Barn in Swainsboro, Ga., surrounded by stadium-style bleacher seating. U.S. Attorney's Office, Southern District of Georgia Office of The Red Barn animal fighting venue in Swainsboro, Ga., includes whiteboards for tallying fight results.Orlando, Florida Residents Charged in Drug Conspiracy and Shooting of Benzel Hampton in Burlington’s Old North EndRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that on September 15, 2020, the following individuals were indicted by a federal grand jury for drug and firearms offenses:
• James Felix, a.k.a. “Mike,” 37, of Orlando, Florida
• Johnny Ford, a.k.a. “Sonny,” 33, of Orlando, Florida
• Brandon Sanders, a.k.a. “Baby Boy,” 19, of Orlando, Florida
• Lesine Woodson, a.k.a. “Coco” and “Lexi,” 33, of Orlando, FloridaThe Third Superseding Indictment charges all four defendants with conspiracy to distribute 28 grams or more of cocaine base and conspiracy to commit a firearm offense. Felix and Ford are additionally charged with being felons in possession of a firearm and using, carrying and discharging a firearm during and in relation to a controlled substance offense.
According to Court records, on April 16, 2019, in Burlington’s Old North End, Benzel Hampton was shot and killed. Hampton had previously partnered with Lesine Woodson to distribute cocaine base in and around Burlington, Vermont. In January 2019, Hampton was arrested after leading police on a high-speed chase. Woodson – a passenger in the car – had more than $8,600 of United States currency hidden under her clothing. This event led to a feud between Hampton and Woodson.
Woodson’s dispute with Hampton escalated and she brought James Felix and Johnny Ford to Vermont. On April 16, 2019, after learning of a text message sent by Hampton, Woodson drove Felix, Ford and Sanders to confront Hampton at 235 North Willard Street in Burlington. A gun battle ensued and Hampton was shot at least six times with two separate firearms, leading to his death. The indictment alleges that Felix and Ford discharged these firearms. After the shooting Ford arranged for the disposal of the firearms. These firearms were later recovered by law enforcement in a wooded area in South Burlington. The cause of Hampton’s death was later determined to be gunshot wounds to his torso and head.
Felix and Woodson were arrested on April 16, 2019 in Burlington, and Ford and Sanders were arrested in Enfield, Connecticut, where police discovered approximately $17,000 and over 100 grams of cocaine base in their motel room.
The charges are merely accusations and each defendant is presumed innocent unless and until proven guilty. If convicted, Felix and Ford face up to life imprisonment and an overall mandatory minimum sentence of 15 years, while Woodson and Sanders face up to 40 years of imprisonment and a mandatory minimum of 5 years. Each defendant’s ultimate sentence will be advised by the Federal Sentencing Guidelines.
Previously, a Second Superseding Indictment additionally charged Angelina Pearson-Fitzpatrick, 56, of Burlington, and Devlin Koski, 31, of South Hero with participation in the conspiracy to distribute 28 grams or more of cocaine base. The Second Superseding Indictment further charged Pearson-Fitzpatrick with participation in the conspiracy to commit a firearm offense. On July 15, 2020, Pearson-Fitzpatrick pleaded guilty to the charges in the Second Superseding Indictment. On August 19, 2020, Koski also pleaded guilty to the charge in the Second Superseding Indictment. Both Pearson-Fitzpatrick and Koski await sentencing.
Assistant United States Attorneys Nathanael T. Burris and Paul J. Van de Graaf are handling the case for the government. Felix is represented by Attorney David Sleigh; Ford is represented by Attorney Robert Katims; Sanders is represented by Attorney Frank Twarog; Woodson is represented by Attorney Peter Langrock; Pearson-Fitzpatrick is represented by Attorney John-Claude Charbonneau; and Koski is represented by Attorney Paul Volk.
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 enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting firearm use and possession crimes; prioritizes prosecuting persons who make false statements when attempting to obtain firearms; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives concerning persons who attempt to obtain firearms illegally; coordinates responses to persons prevented from obtaining firearms for mental health reasons; and ensures the use of modern intelligence tools and technology to focus on the criminals posing the greatest threat to our communities.
For more information, please see https://www.justice.gov/projectguardian.
Operation Legend: Case of the DayRead the Press Release
Each weekday, the Department of Justice will highlight a case that has resulted from Operation Legend. Today’s case is out of the Western District of Missouri. Operation Legend launched in Kansas City on July 8, 2020, in response to the city facing increased homicide and non-fatal shooting rates.
United States vs. Leamandreal Dorsey
“Court documents cite a long history of gun violence and drug trafficking by this defendant who terrorized his neighborhood, allegedly shooting several victims,” Garrison said. “This is his second federal charge for illegally possessing firearms. Operation LeGend is successfully taking armed, violent criminals like this off the street to make our neighborhoods safer.”
A Kansas City, Missouri, man was charged with a firearm crime on July 24, 2020, in federal court in the Western District of Missouri after he was arrested for allegedly shooting three victims in an incident that week.
Leamandreal Dorsey, 40, was charged in federal court with being a felon in possession of a firearm. According to the charging document, Dorsey illegally possessed a firearm, specifically a Glock .40-caliber handgun attached to an extended drum magazine that contained 40 live rounds of ammunition.
On April 1, 2020, Kansas City police officers responded to a reported weapons disturbance. One of Dorsey’s neighbors told officers that Dorsey pointed a gun at him and threatened him. Officers contacted Dorsey at his home, sitting on the roof of a black Mercedes-Benz C300. It is alleged that Dorsey jumped into the driver’s seat when officers approached. Dorsey was removed from his vehicle and taken into custody. The owner of the vehicle provided consent for the officers to search the car, and they found a backpack in the passenger’s seat that contained the Glock .40-caliber handgun attached to an extended drum magazine, as well as a spare magazine.
Although this incident occurred on April 1, Dorsey was arrested following a separate shooting incident that occurred the week of July 24 during which three individuals were wounded by gunfire.
According to charging documents, on July 22, 2020, Kansas City, Missouri, police officers responded to a shooting. Six individuals were on the front porch of a residence when an individual - later identified as Dorsey - started shooting at them. According to the victims, Dorsey walked away, but returned minutes later and began shooting again; he then fled on foot. Three of the individuals were struck by gunfire and transported to the hospital. Investigators found 31 spent shell casings at the scene.
Later the same day, investigators received a Crime Stoppers tip that identified Dorsey as the shooter.
Because of a previous felony conviction punishable by more than one year in prison, Dorsey is prohibited from possessing a firearm. His prior convictions includes being a felon in possession of a firearm, for which he served three years in federal prison. He also has two prior felony convictions for unlawful use of a weapon, two prior felony convictions for possession of a controlled substance, and a prior felony conviction for drug trafficking.
The charging document also alleges four previous instances in which Dorsey pointed firearms at people and threatened them. Among those incidents, Dorsey shot a man in the hip who was running from Dorsey’s residence following a disagreement.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Background on Operation Legend
President Trump promised to assist America’s cities that have been plagued by violence. In July, Attorney General William P. Barr announced the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative across all federal law enforcement agencies working in conjunction with state and local law enforcement officials to fight violent crime in cities across America that were experiencing an uptick in violence. Operation Legend is named after four-year-old LeGend Taliferro, who was shot and killed on June 29th in Kansas City, Missouri, while asleep in his home.
Since its inception, Operation Legend has yielded more than 2000 local, state, and federal arrests, with more than 592 defendants charged with federal crimes.
Operation Legend was launched in Kansas City, Mo., on July 8, 2020, and expanded to Chicago and Albuquerque on July 22, 2020, to Cleveland, Detroit, and Milwaukee on July 29, 2020, to St. Louis and Memphis on Aug. 6, 2020, and to Indianapolis on Aug. 14, 2020. As part of Operation Legend, Attorney General Barr has directed federal agents from the FBI, U.S. Marshals Service, DEA and ATF to surge resources to these cities to help state and local officials fighting violent crime.
Oklahoma City Man Found Guilty After Five Years of Criminal Conduct, Including Two ShootingsRead the Press Release
OKLAHOMA CITY – A federal jury has found DOMINIC EUGENE HUNT, 26, of Oklahoma City, guilty of numerous firearms, ammunition, and drug-related charges after five years of criminal conduct, announced U.S. Attorney Timothy J. Downing.
On November 6, 2019, a third superseding indictment charged Hunt with nine counts of various firearms, ammunition, and drug-related charges from four separate episodes of criminal conduct spanning from 2014 to 2019. The Third Superseding Indictment charged Hunt with the following: Counts 1 & 5) Drug User in Possession of a Firearm; Count 2) Maintaining a Drug-Involved Premises; Counts 3 & 6) Possession with Intent to Distribute; Counts 4 & 7) Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and Counts 8 & 9) Felon in Possession of Ammunition.
On September 4, 2020, Hunt pleaded guilty to Counts 1-3 before the case went to trial. On September 11, 2020, after a four-day trial, the jury returned guilty verdicts on the remaining six counts.
Evidence at trial showed that Hunt, also known as "Dime Sack," illegally possessed three different firearms, including an assault rifle, in furtherance of his possession of marijuana with intent to distribute on at least two different occasions in 2014. Evidence also showed the ammunition Hunt illegally possessed in Count 8 was the ammunition used to shoot a victim on January 20, 2019, during a confrontation about a possible stolen car. That victim survived. Finally, evidence showed that the ammunition Hunt illegally possessed in Count 9 was shot from the same gun as the ammunition in Count 8 and was used in a drive-by shooting on February 2, 2019, that resulted in the death of one victim.
Hunt’s prosecution highlights the resources that the United States Attorney’s Office can bring to bear in addressing violent crimes. The prosecution of Counts 8 and 9 was based on work by the Oklahoma City Police Department (OCPD), but also depended heavily on ballistics expertise from the Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF), as well as cell phone location analysis provided by the Federal Bureau of Investigation (FBI).
Hunt is expected to be sentenced within the next few months. Due to his convictions on Counts 4 and 7 alone, Hunt faces a minimum of 10 years in prison, and up to life, as well as possible fines and a period of supervised release.
This case is the result of investigations by the OCPD, ATF, and FBI. Assistant U.S. Attorneys Jacquelyn M. Hutzell and David McCrary prosecuted the case. This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Norris Man Indicted on Assault ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Norris, South Dakota, man has been indicted by a federal grand jury for Assault With a Dangerous Weapon and Assault Resulting In Serious Bodily Injury.
Nicholas Miles Ten Fingers, age 27, was indicted on September 9, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 14, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on July 25, 2019, Ten Fingers assaulted an individual with a sharp edged instrument with the intent to do bodily harm and the assault resulted in serious bodily injury.
The charges are merely accusations and Ten Fingers is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Ten Fingers was released on bond pending trial. A trial date has not been set.
Norman Car Dealership Executives Charged with Wire Fraud Conspiracy, Forgery, and Identity Theft in Subprime Auto LoansRead the Press Release
OKLAHOMA CITY – A federal indictment charges BOBBY CHRIS MAYES, 48, CHARLES GOOCH, 61, and COURTNEY WELLS, 35, all residents of Norman, with 25 counts of wire fraud, conspiracy, issuing forged securities, and aggravated identity theft, announced Timothy J. Downing, United States Attorney for the Western District of Oklahoma.
On September 16, 2020, a federal grand jury returned an indictment alleging that from January 2014 to March 2019, Mayes, Gooch, and Wells utilized their positions as co-owners of the Big Red Dealerships (Big Red Sports/Imports, Big Red Kia, Norman Yamaha, Norman Mitsubishi, and Mayes Kia) to engage in a conspiracy to commit wire fraud in which they sought to obtain millions of dollars of loan proceeds. The indictment further alleges the defendants made materially false statements and omissions to the lenders about the type, source, and amount of borrowers’ down payments or vehicle trade-ins, and bribed at least one loan officer.
According to the indictment, the Big Red Dealerships used advertisements to target potential customers with poor credit. Mayes, Gooch, and Wells fraudulently induced lenders to approve loans for such customers by documenting that the customers provided cash down payments or trade-in vehicles, even when neither transaction took place. The indictment alleges at least one lender approved questionable loans after being provided with cash bribes from a Big Red Dealership manager. It is alleged that, on the defendants' instruction, Big Red Dealership employees concealed the ongoing criminal conduct, even forging the signatures of customers who supposedly provided cash down payments.
The indictment alleges approximately 476 loans were approved based on false cash down payments, and roughly 636 loans were approved based on false vehicle trade-ins.
Count 1 charges all three defendants with conspiracy to commit wire fraud. Counts 2-13 charge all three defendants with wire fraud based on 12 loan packages sent to lenders for specific customers. If convicted of any of Counts 1-13, each defendant faces up to 20 years in prison and a $250,000.00 fine.
Counts 14-19 charge all three defendants with uttering forged securities based on checks forged by Big Red Dealership employees. If convicted of any of Counts 14-19, each defendant faces up to 10 years in prison and a $250,000 fine.
Counts 20-25 charge all three defendants with aggravated identity theft against the customers whose signatures were forged. If convicted of any of Counts 20-25, each defendant faces a mandatory term of imprisonment of 2 years to run consecutive to any other term of imprisonment and a $250,000 fine.
The public is reminded these charges are merely accusations and that the defendants are presumed innocent unless proven guilty beyond a reasonable doubt. Reference is made to court filings for further information. Attached is the indictment the federal grand jury returned in this matter. To download a photo of U.S. Attorney Downing, click here.
This case is the result of an investigation by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys K. McKenzie Anderson and Tom Snyder.
New Charges, Plea Deals in San Francisco City Hall Corruption InvestigationRead the Press Release
SAN FRANCISCO – Charges were filed today in a criminal complaint alleging that Alan Varela and Bill Gilmartin, the president and vice president, respectively, of a Bay Area civil engineering and construction firm, bribed Mohammed Nuru, formerly San Francisco’s Director of Public Works, announced United States Attorney David L. Anderson, and Siddhartha Patel, Assistant Special Agent in Charge of the Federal Bureau of Investigation. Additional facts regarding the investigation and charges can be found here: https://youtu.be/J1EJRrM0k3g
According to an affidavit filed in connection with the complaint, Varela and Gilmartin provided gifts and benefits to Nuru since at least as early as 2013, including, among other things, $20,000 in meals and a tractor worth $40,000 for Nuru to use at his personal vacation home. In exchange for these benefits, Nuru allegedly provided Varela and Gilmartin with a steady stream of illegal inside information about a lucrative San Francisco public contract to build and operate an asphalt recycling plant that Varela and Gilmartin sought.
Additional documents filed today in court indicate that two other contractors previously charged in the ongoing public corruption probe intend to plead guilty. In one case, a filed plea agreement indicates that Balmore Hernandez, the CEO of a local construction company, will plead guilty and has agreed to cooperate in the government’s investigation. In the other case, local contractor Florence Kong will also plead guilty, and will admit that she bribed Nuru with, among other things, a Rolex watch worth more than $35,000, in return for which Nuru corruptly helped Kong obtain San Francisco public contracts, including work at her recycling facility. Kong will also admit lying to the FBI about her interactions with Nuru. Kong’s guilty plea is not a cooperation plea.
Varela and Gilmartin are the seventh and eighth defendants to be charged as part of the graft probe. Hernandez and Kong are the third and fourth defendants to plead guilty. Charges were previously filed against Nuru and local restaurateur Nick Bovis on January 28, 2020. In June of this year, charges were filed against Hernandez and Kong, as well as against Sandra Zuniga, the Mayor’s Fix-It Director. Charges were also filed in June against Walter Wong, a local contractor and permit expediter. Hernandez joins Wong and Bovis in agreeing to cooperate with the government’s investigation.
“Public works contracts in San Francisco are supposed to be awarded on a merit system in San Francisco for the benefit of the residents and taxpayers of San Francisco,” said U.S. Attorney Anderson. “The complaint filed today alleges that this merit system was undermined with insider information and favorable treatment. Instead of awarding public works contracts on the basis of merit, the defendants allegedly sought to secure significant profits on the basis of bribes and backroom deals.”
“While our investigation is ongoing, I hope the resolutions in the Hernandez and Kong cases will help restore confidence in our city governments for Bay Area residents,” said assistant SAC Patel. “San Francisco City Hall can and will function without the influence of the corruption we have seen unravel in this case.”
Varela and Gilmartin face a maximum statutory penalty of up to 10 years in prison, as well as fines that could go as high as $250,000 or twice the gross gain or loss from the alleged bribery scheme. In addition, the court may order additional terms of supervised release and restitution. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553
The prosecution is being handled by the Office of the U.S. Attorney, Northern District of California’s new Corporate Fraud Strike Force and is the result of an investigation by the FBI.
New Bedford Member of the Latin Kings Pleads Guilty to Being a Felon in PossessionRead the Press Release
BOSTON – A member of the New Bedford Chapter of the Almighty Latin King and Queen Nation pleaded guilty today to being a felon in possession of a firearm as a result of a federal investigation into a shooting on April 19, 2020, in New Bedford.
Alexander Pizarro, a/k/a “King Tego,” 28, pleaded guilty to one count of being a felon in possession of a firearm. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for Jan. 19, 2021. Pizarro was charged in May 2020.
On April 19, 2020, police responded to a report of seven shots fired near a residence on Clark Street in New Bedford. During the response, police located a tan and black Taurus 9mm firearm in an alleyway near the residence. Based on information received from a 911 caller, police were directed to an apartment and located Pizarro. After searching his cell phone, investigators located a photograph of Pizarro in the apartment holding what appeared to be the same firearm that was recovered from Clark Street. This photograph was taken approximately two hours before the shots-fired incident. Through ballistics comparison, the seized firearm was matched to the recovered shell casings from the shooting that evening.
Due to multiple prior convictions, Pizarro is prohibited from possessing firearms. According to court documents, Pizarro was known to investigators to be a member of the New Bedford Chapter of the Latin Kings, and had recently posted multiple pictures holding firearms to his SnapChat account. At the time of the shooting incident, Pizarro was on probation for a 2017 firearms conviction in Rhode Island.
The charge of being a felon in possession of a firearm provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Assistant U.S. Attorney Philip A. Mallard of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Naperville Man Arrested on Child Pornography Charge for Allegedly Enticing Underage Boy to Produce Sexually Explicit VideosRead the Press Release
CHICAGO — A Naperville man was arrested today on a federal child pornography charge for allegedly enticing an underage boy to produce sexually explicit videos and photos of himself.
JEREMIAH HARRIS, 21, contacted the underage boy on a social media application and repeatedly enticed him to produce sexually explicit videos and photographs of himself and send them to Harris, according to a criminal complaint filed in U.S. District Court in Chicago. The minor victim informed Harris during their initial online encounter that he was 13 years old, the complaint states.
The complaint charges Harris with one count of producing child pornography. He was arrested this morning and is scheduled to make an initial court appearance today at 2:00 p.m. CDT before U.S. Magistrate Judge M. David Weisman in Chicago.
The complaint was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The investigation was conducted by the FBI Chicago Child Exploitation and Human Trafficking Task Force, which includes the Cook County Sheriff’s Office, Cook County State’s Attorney’s Office, and Chicago Police Department. The Crystal Lake Police Department and FBI Waco, Texas, Resident Agency provided valuable assistance. The government is represented by Assistant U.S. Attorney Christopher V. Parente.
Production of child pornography is punishable by a minimum sentence of 15 years in prison and a maximum of 30 years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The federal investigation remains ongoing. If you believe that you or someone you know was a victim of sexual exploitation by Jeremiah Harris, you are encouraged to call the FBI Chicago Field Office at (312) 421-6700.
Mississippi Man Pleads Guilty to Smuggling Five Pounds of Meth in Box of Cookies, Three Pounds of Heroin in Pair of SneakersRead the Press Release
KANSAS CITY, Mo. – A Jonesboro, Mississippi, man has pleaded guilty in federal court to transporting more than five pounds of methamphetamine and nearly three pounds of heroin through Kansas City, Missouri, en route to St. Louis, Mo.
Willie Lewis Braison, 47, pleaded guilty before U.S. District Judge Brian C. Wimes on Wednesday, Sept. 16, to one count of possessing methamphetamine with the intent to distribute, and one count of possessing heroin with the intent to distribute.
A Kansas City, Mo., Police Department detective saw Braison get off the train at a local station on Jan. 17, 2019. The detective contacted Braison and asked to search his suitcase.
By pleading guilty, Braison admitted that he was carrying a suitcase that contained methamphetamine and heroin aboard a train from Los Angeles, California, for delivery in St. Louis. Inside the suitcase, five bundles that contained a total of 5.1 pounds of methamphetamine were hidden inside a cardboard box that was labeled as a variety pack of cookies. Also inside the suitcase were two bundles of heroin hidden inside a pair of size 18 high-top tennis shoes. The bundles, shaped like the insoles of the shoes, weighed a total of 2.9 pounds.
Under federal statutes, Braison is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 80 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Kansas City Interdiction Task Force and the Drug Enforcement Administration.
Mexican National Sentenced to 18 Months for Timeshare Telemarketing ScamRead the Press Release
NEW ORLEANS –JULIO CESAR RIVERA ROJAS, age 33, a resident and citizen of Mexico, was sentenced on September 16, 2020 to 18 months in the Bureau of Prisons after pleading guilty to one count of conspiracy to commit wire fraud by U.S. District Court Judge Jane Triche Milazzo of the Eastern District of Louisiana, announced U.S. Attorney Peter G. Strasser.
As detailed in the factual basis and superseding bill of information, the defendants, from at least January 1, 2016, to the present, conspired together and with others to commit wire fraud in connection with a telemarketing scheme that targeted and victimized persons in the United States, Canada and South America. As part of the elaborate scheme, the conspirators made unsolicited phone calls to owners of resort timeshare properties to induce them to pay fees associated with the bogus sale of their property. The defendants misrepresented the existence of a buyer for their timeshare and solicited money from the victims to facilitate the sale. They solicited the timeshare owners to enter into agreements to sell their timeshares and pay for alleged “closing costs” with electronic wire transfers from banking institutions within the United States to Mexican banks. There were no interested buyers, the closings did not occur, and the timeshares were not resold. Instead, the conspirators simply pocketed the advanced fees. Of the U.S. victims, 40 were age 60 and older and the total estimated loss is at least $10,000,000.
The defendants, who are all based in Mexico, operated under the business names Planet Travel and Newport International Investments, and at other times used the following business names: Advance Travel INC, All American Real Estate, American International Investment Group, Bear Claw Travel, Best Investment Services, Champion Properties, Closing Source LLC, Equity Closing Services Group, Global Offshore Services, NSC Holding, Peach Title, Sandia Title, Travel and Acquisitions, Travel Innovations, Travel Plus Acquisitions, Travel Right, and World Travelers, Inc. All of these domain websites have been seized by the Federal Bureau of Investigation and the Department of Justice.
Elder fraud complaints may be filed with the Federal Trade Commission at www.ftccomplaintassistant.gov or at 1-877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime at www.ovc.gov. Additional elder justice resources, training, and outreach materials can be found at the Elder Justice Website at www.elderjustice.gov.
RIVERA ROJAS, who worked as an accountant, was ordered to pay restitution of $4,000,000 USD, a fee of $100.00, and he is subject to deportation after serving 18 months. To date, one other defendant, Jesus Ledesma Bernal, was sentenced to 18 months in the Bureau of Prisons on August 4, 2020, for his role as a telemarketer in this criminal organization.
This case is the product of an extensive and ongoing investigation by special agents of Federal Bureau of Investigation. Assistant United States Attorneys Edward J. Rivera and Paige O’Hale are prosecuting the case.
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Member of Navajo Nation charged with sexual abuse of minor in Indian countryRead the Press Release
ALBUQUERQUE – Ryan Kee Jones, 25, of Yatahey, New Mexico, and an enrolled member of the Navajo Nation, appeared in federal court on September 16, 2020, on a criminal complaint charging him with aggravated sexual abuse of a minor in Indian Country.
According to the criminal complaint, during the spring of 2018, Jones sexually assaulted a minor, who was approximately 12-years old at the time. Over the next several months, according to the complaint, he allegedly sexually assaulted her multiple times. The abuse took place in Yatahey, New Mexico, in McKinley County, within the exterior boundaries of the Navajo Nation.
Jones was arrested on Sept. 15. He is currently in custody pending a preliminary and detention hearing. Jones faces a mandatory minimum of 30 years’ imprisonment if convicted of the charged offense.
Criminal complaints are only allegations. A defendant is presumed innocent unless and until proven guilty.
The Gallup office of the FBI investigated this case with assistance from the Navajo Nation Police Department. Assistant U.S. Attorney Jennifer M. Rozzoni is prosecuting the case.
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Lev Parnas and David Correia Charged with Conspiring to Defraud Investors in Their Fraud Insurance Company “Fraud Guarantee”Read 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 LEV PARNAS and DAVID CORREIA were charged in a Superseding Indictment with conspiring to commit wire fraud in connection with their efforts to raise funds ostensibly for their business, “Fraud Guarantee.” The Superseding Indictment also includes additional campaign finance charges against the defendants.
In October 2019, PARNAS, CORREIA, IGOR FRUMAN, and ANDREY KUKUSHKIN were charged in a four-count indictment alleging that each of the defendants conspired to violate the ban on political donations and contributions by foreign nationals. In addition, PARNAS and FRUMAN were charged with conspiring to make contributions in connection with federal elections in the names of others, and with making false statements to and falsifying records to obstruct the administration of a matter within the jurisdiction of the Federal Election Commission (“FEC”).
The Superseding Indictment returned today – in addition to charging PARNAS and CORREIA with conspiracy to commit wire fraud – charges CORREIA with making false statements to and falsifying records to obstruct the administration of a matter within the jurisdiction of the FEC; charges PARNAS, FRUMAN, and CORREIA with soliciting a foreign national to make donations and contributions in connection with federal and state elections; and charges PARNAS, FRUMAN, and KUKUSHKIN with aiding and abetting the making of donations and contributions by a foreign national in connection with federal and state elections.
The case is assigned to U.S. District Judge J. Paul Oetken in the Southern District of New York. Trial is currently scheduled for February 1, 2021.
Acting U.S. Attorney Audrey Strauss said: “As alleged, Lev Parnas and David Correia conspired in a fraud using a company called ‘Fraud Guarantee’ that purported to insure investors against corporate fraud while in fact, as alleged, they misled investors as to what would be done with their money. ‘Fraud Guarantee’ takes on a different meaning in light of today’s allegations that the company was a vehicle for committing fraud, not insuring against it. Parnas, Correia, Igor Fruman, and Andrey Kukushkin are also charged with additional violations of the laws prohibiting foreign nationals from donating or contributing to federal or state election campaigns. This Office remains committed to investigating and prosecuting those whose alleged criminal conduct threatens to undermine the integrity of our political process.”
FBI Assistant Director William F. Sweeney Jr. said: “We couldn't say it better ourselves – the behavior alleged today is indeed fraudulent – guaranteed. The FBI and the American public expect that it will be our fellow citizens whose voices determine the outcome of our Nation's elections, not deliberately corrupt behavior, or foreign influence disguised as legitimate activity. The FBI is determined to disrupt this type of behavior, and our investigation is ongoing.”
According to the Superseding Indictment[1] filed in Manhattan federal court:
Between in or about late 2012 and in or about mid-2019, PARNAS and CORREIA conspired to defraud multiple victims by inducing them to invest in their company, “Fraud Guarantee,” based on materially false and misleading representations. Among other things, PARNAS and CORREIA falsely claimed that the investors’ funds would be used solely for legitimate business expenses of Fraud Guarantee, when in fact the funds were largely withdrawn as cash, transferred to personal accounts, and used for various apparently personal expenditures. PARNAS and CORREIA also made materially false representations concerning, among other things, how much money PARNAS had contributed to the company and how much money the company had raised overall. At least seven victims invested in Fraud Guarantee based at least in part on PARNAS’s and CORREIA’s false and misleading representations, with each victim being fraudulently induced to pay hundreds of thousands of dollars, for a total of more than $2 million.
The scheme started in or about late 2012, when PARNAS and CORREIA established Fraud Guarantee. Ironically, they pitched Fraud Guarantee to potential investors as a company that would provide services to protect investors from fraud. In particular, PARNAS and CORREIA claimed that Fraud Guarantee would offer an insurance product that would allow policyholders to recoup their losses in the event they lost money due to fraudulent conduct. Thus, for example, if an investor invested in “Company XYZ” and purchased a Fraud Guarantee policy, then in the event that the investor lost the value of the investment due to a criminal fraud at Company XYZ, Fraud Guarantee would enable the investor to recoup the investor’s losses. However, despite certain efforts by PARNAS and CORREIA to launch Fraud Guarantee and bring its products to market, the company never became operational.
PARNAS and CORREIA induced multiple victims to invest in Fraud Guarantee by claiming, among other things, that they were raising funds to facilitate the company’s development, that all of the money would be used for legitimate business expenses, and that PARNAS and CORREIA were not taking salaries. PARNAS and CORREIA even provided one victim with a contract providing that his funds would be used “to finance the development, promotion, and initial operation of an investment protection business” and would be “fully reserved and committed” for such purposes. In fact, while a portion of the victims’ funds was used for Fraud Guarantee business expenses, the majority was not. Rather, the funds were largely withdrawn as cash, transferred to accounts in the name of PARNAS or CORREIA or their family members, or spent on various apparently personal expenditures, including hundreds of thousands of dollars in rent for PARNAS’s personal residence and tens of thousands of dollars at luxury car leasing companies. PARNAS and CORREIA also used certain victim money to fund political donations.
PARNAS and CORREIA also induced certain victims to invest in Fraud Guarantee by misrepresenting, among other things, the amount of money PARNAS personally contributed to the company, and the amount raised overall. For example, PARNAS and CORREIA provided at least one victim with a table reflecting that PARNAS’s “capital account” was as high as $1.1 million; CORREIA told another victim via email that “[t]here was ‘significant’ investment from all parties in order to take ownership [in Fraud Guarantee] . . . equated to several millions of dollars invested”; and CORREIA told another victim – during a phone call that the victim recorded without CORREIA’s knowledge – that “[m]illions . . . $4 or $5 million probably” had been invested overall in Fraud Guarantee. These representations were false and misleading because the company had not only raised far less money than they claimed, but also the funds they had raised had largely been withdrawn as cash, transferred to personal accounts, and spent on various apparently personal expenditures, rather than being used solely for legitimate business expenses.
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PARNAS, 48, FRUMAN, 54, CORREIA, 45, and KUKUSHKIN, 47, are each charged with one count of conspiring to violate the ban on donations and contributions in connection with federal and state elections by foreign nationals, which carries a maximum sentence of five years in prison. PARNAS and FRUMAN are also charged with one count of conspiring to make contributions in connection with federal elections in the names of others, which carries a maximum sentence of five years in prison. PARNAS, FRUMAN, and CORREIA are each charged with one count of making false statements, which carries a maximum sentence of five years in prison; and one count of falsifying records to obstruct the administration of a matter within the jurisdiction of the FEC, which carries a maximum sentence of 20 years in prison. PARNAS, FRUMAN, and CORREIA are each charged with one count of soliciting a foreign national to make donations and contributions in connection with federal and state elections, which carries a maximum sentence of five years in prison; and PARNAS, FRUMAN, and KUKUSHKIN are each charged with one count of aiding and abetting the making of donations and contributions by a foreign national in connection with federal and state elections, which carries a maximum sentence of five years in prison. PARNAS and CORREIA are charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge.
Ms. Strauss praised the outstanding work of the FBI.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Rebekah Donaleski, Nicolas Roos, and Douglas Zolkind are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment, and the description of the Superseding Indictment set forth herein, constitute only allegations, and every fact described therein should be treated as an allegation.
Laurel man charged with COVID-19 relief fraud in connection with Paycheck Protection ProgramRead the Press Release
BILLINGS—A Laurel man was arraigned today on an indictment alleging he attempted to illegally obtain $35,000 from the Paycheck Protection Program, a federal loan program created through the Coronavirus Aid, Relief, and Economic Security (CARES) Act to help businesses struggling with the financial effects of the coronavirus pandemic, U.S. Attorney Kurt Alme said today.
Matthew Jason Welch, 38, pleaded not guilty to two counts of wire fraud as charged in an indictment filed on Aug. 21. An indictment merely alleges that crimes have been committed, and defendants are presumed innocent until proven guilty beyond a reasonable doubt. Wire fraud carries a maximum penalty of 20 years in prison, a $250,000 fine and three years of supervised release.
The indictment against Welch is the first PPP fraud case to be charged in Montana.
U.S. Magistrate Judge Timothy J. Cavan presided. Welch was released pending further proceedings.
The indictment alleges Welch attempted to unjustly enrich himself by submitting an application on April 23 to obtain a PPP loan under false and misleading pretenses by making false statements about his criminal history. It is also alleged he intended to use the loan proceeds to pay for restitution and other costs related to pending criminal cases against him. The indictment further alleges that Welch, in the name of Welch Sole Proprietorship, sought $35,000 in PPP funds to support payroll, lease and mortgage-interest costs and utility costs and that he falsely certified he was not subject to criminal charges.
The U.S. Small Business Administration and the U.S. Secret Service investigated the case. Pacer case reference. 20-103.
The progress of this case may be monitored regularly through the U.S. District Court calendar and the PACER system. To establish a PACER account, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Judge sentences cartel-connected drug dealer to 25 years for trying to establish cocaine pipeline from Mexico to St. LouisRead the Press Release
ST. LOUIS, MO – Chief United States District Judge Rodney W. Sippel sentenced Roy William Burris, Jr., 40, of Paramount, California, to 25 years in prison for his role in a conspiracy to distribute more than five kilograms of cocaine.
On February 12, 2020, at the conclusion of a 10-day jury trial, Burris was found guilty of the crime of conspiracy to distribute cocaine, and the jury further found that the quantity of cocaine involved in the conspiracy attributable to Burris was five kilograms or more.
Trial evidence established that this was an organized crime conspiracy in which Burris and others purchased hundreds of thousands of dollars’ worth of cocaine in multi-kilogram amounts for further distribution and sale. As part of the conspiracy, Burris, operating in Southern California and elsewhere, obtained bulk quantities of cocaine from suppliers with ties to the Sinaloa Cartel. Burris then organized multi-kilogram sales of cocaine to others for further distribution.
Burris was originally arrested at the Long Beach Airport in California on February 29, 2016, en route to St. Louis, carrying a loaded handgun, seven cellular phones, drug ledgers reflecting hundreds of thousands of dollars’ worth of drug transactions, and other indicia of drug trafficking. Following his release in California, Burris continued to traffic cocaine and was arrested again on March 30, 2016, in Hawaiian Gardens, California, in possession of 5 kilograms of cocaine and approximately $150,000 in U.S. Currency. Burris was again released and ultimately traveled to Culiacán, Mexico, to meet with members of the Sinaloa Cartel about distributing bulk amounts of cocaine in St. Louis, Missouri. On September 7, 2016, Burris, along with other members of the conspiracy, succeeded in having approximately 10 kilograms of cocaine shipped via UPS to the Silver Lining bar in South St. Louis. DEA agents were able to successfully intercept the shipment, and Burris was subsequently arrested in California.
At the sentencing hearing, Chief Judge Sippel discussed the seriousness of the offense, including the immeasurable and tragic consequences of Burris’s distribution of over 100 kilograms of cocaine into American communities, and noting the countless families who have lost a loved one to addiction and illegal drugs.
At the time Burris participated in the instant conspiracy, he was on probation for a prior drug trafficking offense committed in Kentucky.
This case was investigated by the United States Drug Enforcement Administration, specifically DEA Chicago, DEA St. Louis, DEA Los Angeles; the St. Louis Metropolitan Police Department; LA IMPACT (Los Angeles Interagency Metropolitan Police Apprehension Crime Task Force); California State Highway Patrol; ICE (Homeland Security Investigations, Los Angeles, CA); U.S. Customs and Border Protection (San Ysidro, CA); and the Long Beach Police Department. This case was prosecuted by the United States Attorney’s Office for the Eastern District of Missouri with assistance from the United States Attorney’s Office for the Northern District of Illinois.
Judge Sentences Lake St. Louis Man for scheming to defraud NFL PlayerRead the Press Release
ST. LOUIS, MO – United States District Judge Catherine Perry sentenced Abayomi Martin to 15 months in prison. The 43-year-old Lake St. Louis resident pleaded guilty, in March, to one count of wire fraud relative to a scheme to defraud and obtain money from Dallas Cowboy’s player Brandon Carr. Martin was also ordered to pay restitution to the victim in the amount of $261,194.71
Martin solicited an investment from Brandon Carr for a purported part ownership in a clothing company known as Famous Nobodys. Martin falsely represented to Carr he had an ownership interest in Famous Nobodys, and Carr’s investment would provide Carr a 17.5% ownership interest in the clothing company.
On September 12, 2016, after Martin presented him with what appeared to be a legitimate operating agreement setting out Carr’s purported ownership interest in Famous Nobodys, Carr wired $250,000 to Martin for the purpose of owning as an equity holder and operating Famous Nobodys. However, the true owner of Famous Nobodys never knew of this purported agreement by Martin, never received any of Carr’s investment money and never agreed to turn over any ownership interest in Famous Nobodys to Martin. Instead, Martin used the investment funds provided by Brandon Carr for his own personal use and expenses, including cash withdrawals and personal credit card payments. Martin also used a portion of Brandon Carr’s funds to pay for the expenses and training costs of several professional boxers in Las Vegas, Nevada, all without the knowledge and authority of Carr.
Martin continued the fraud by sending Carr false email communications and text messages purporting to update him on Carr’s purported investment in Famous Nobodys. Brandon Carr had intended to use any profits from his investment in Famous Nobodys to fund his broad based charitable foundation, Carr Cares. Instead, Carr never received any funds back from Martin, who fraudulently used Carr’s entire investment for personal expenses and uses unrelated to any true investment in Famous Nobodys.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Hal Goldsmith is handling the case for the United States Attorney’s Office.
Iranian Hackers Indicted for Stealing Data from Aerospace and Satellite Tracking CompaniesRead the Press Release
ALEXANDRIA, Va. – An indictment was unsealed today charging three computer hackers, all of whom were residents and nationals of the Islamic Republic of Iran (Iran), with engaging in a coordinated campaign of identity theft and hacking on behalf of Iran’s Islamic Revolutionary Guard Corps (IRGC), a designated foreign terrorist organization, in order to steal critical information related to United States aerospace and satellite technology and resources.
“We will relentlessly pursue and expose those who seek to harm American companies and individuals wherever they reside in the world,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “The use of malware, the theft of commercial data and intellectual property, and the use of social engineering to steal the identities of United States citizens to accomplish unlawful acts will not be tolerated. Along with our incredible and steadfast law enforcement partners, the Eastern District of Virginia continues to lead efforts to combat serious cybercrime globally and the charges outlined in the indictment exposing IRGC linked hacking operations in the United States are just another example of the fruits of our seamless teamwork.”
Charged in the indictment are defendants Said Pourkarim Arabi, 34, Mohammad Reza Espargham, 25, and Mohammad Bayati, 34, all Iranian nationals residing in Iran.
“For the third time in three days, the Department has charged Iranian hackers,” said John C. Demers, Assistant Attorney General for National Security. “This case highlights the Islamic Revolutionary Guard Corps’ efforts to infiltrate the networks of American companies in search of valuable commercial information and intellectual property. It is yet another effort by a rogue foreign nation to steal the fruits of this country’s hard work and expertise.”
According to allegations in the indictment, the defendants’ hacking campaign, which targeted numerous companies and organizations in the United States and abroad, began in approximately July 2015 and continued until at least February 2019. The defendants at one time possessed a target list of over 1,800 online accounts, including accounts belonging to organizations and companies involved in aerospace or satellite technology and international government organizations in Australia, Israel, Singapore, the United States, and the United Kingdom.
“Today’s charges are yet another example of the FBI’s dedication to investigating those who target and attempt to steal data and proprietary information from the United States,” said James A. Dawson, Assistant Director in Charge of the FBI’s Washington Field Office. “Today’s charges allege that these individuals conspired in a coordinated campaign with known IRGC members and acted at their direction. The defendants targeted thousands of individuals in an attempt to steal critical information related to United States aerospace and satellite technology. The FBI remains dedicated to protecting the United States, and we continue to impose risk and consequences on cyber adversaries through our unique authorities, world-class capabilities, and enduring partnerships.”
To facilitate their victimization of these targets, the defendants engaged in a coordinated campaign of social engineering to identify real United States citizens working in the satellite and aerospace fields whose identities the defendants could assume online. The defendants then impersonated those individuals and used their stolen identities to register email addresses and fraudulently purchase domains and hacking tools for use in the scheme. The defendants then created customized spear phishing emails that purported to be from the individuals whose identities the defendants had stolen, in an attempt to entice the recipients to click on malicious links embedded in the emails. Once a recipient clicked on a malicious link, malware would be downloaded to the individual’s computer, giving the defendants unauthorized access to the recipient’s computer and network. The defendants then used additional hacking tools to maintain unauthorized access, escalate their privileges, and steal data sought by the IRGC. Using these methods, the defendants successfully compromised multiple victim networks, resulting in the theft of sensitive commercial information, intellectual property, and personal data from victim companies, including a satellite-tracking company and a satellite voice and data communication company.
Arabi is charged with conspiracy to commit computer intrusions, obtaining information by unauthorized access to protected computers, intentional damage to protected computers, aggravated identity theft, and conspiracy to commit wire fraud. If convicted, Arabi faces a maximum penalty of 20 years in prison.
Esphargham is charged with conspiracy to commit computer intrusions, obtaining information by unauthorized access to protected computers, intentional damage to protected computers, and conspiracy to commit wire fraud. If convicted, Esphargham faces a maximum penalty of 20 years in prison.
Bayati is charged with conspiracy to commit computer intrusions, and conspiracy to commit wire fraud. If convicted, Bayati faces a maximum penalty of 20 years in prison.
Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorneys Nathaniel Smith III, Jay V. Prabhu, and Danya Atiyeh are prosecuting the case with assistance from Trial Attorney Evan Turgeon of the Justice Department’s National Security Division.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-217.
International Competition Network Addresses Enforcement and Policy Challenges of the Digital Economy at United States-Hosted 19th Annual ConferenceRead the Press Release
The International Competition Network (ICN) held its 19th annual conference on September 14-17, 2020. Co-hosted by the Antitrust Division and the Federal Trade Commission (FTC), the conference was the ICN’s first virtual conference.
Originally planned as an in-person conference in Los Angeles in May, the conference transitioned to a virtual format as a result of the COVID-19 pandemic. Assistant Attorney General Makan Delrahim of the Antitrust Division and FTC Chairman Joseph J. Simons led the U.S. delegation.
“Global engagement through ICN is essential to our work in preserving market competition in the United States," said Assistant Attorney General Delrahim. "We are proud to have co-hosted this year’s ICN conference and to have had conversations on issues of great national importance, such as the role of antitrust enforcement in the digital economy, made available to the public."
“In these challenging times, it has been uplifting to see the strong commitment of the global competition community to reaffirming the central importance of competition policy to growth, innovation, and economic recovery,” said FTC Chairman Simons. “The FTC is proud to have co-hosted the ICN’s 19th annual conference and looks forward to working with our colleagues around the world to meet the challenges of the digital economy and ensure competitive markets that serve consumers.”
The conference examined a range of competition enforcement and policy issues, including those involving the digital economy. Over 2,500 delegates from around the world participated in the conference, including agency leadership and staff, as well as competition experts from international organizations and the legal, business and academic communities.
Assistant Attorney General Delrahim and Chairman Simons opened the conference and participated in a showcase program that explored competition enforcement in the digital economy, including enforcement tools and international cooperation.
During the conference, the ICN working groups on cartels, unilateral conduct, advocacy, mergers, and agency effectiveness highlighted achievements and developments with respect to their projects.
Deputy Assistant Attorney General for International and Policy, Rene Augustine, led the Division’s international team in the strategic development and implementation of the international conference.
Deputy Assistant Attorney General Richard Powers of the Antitrust Division spoke on a panel discussing big data and cartelization inspired by a scoping paper finalized this year by the Cartel Working Group. Under the Antitrust Division’s leadership, the group also finalized guidance on enhancing cross-border leniency cooperation.
FTC Commissioner Christine Wilson spoke on a panel on the objectives, design, and implementation of remedies in unilateral conduct s cases involving digital markets. The Unilateral Conduct Working Group produced a report detailing the results of an ICN survey on dominance and substantial market power in digital markets.
The Advocacy Working Group held a panel on competition advocacy in the digital age. The group also issued a report on providing input to policymakers on the competitive impact of government regulations.
The Merger Working Group organized a panel on merger investigations in the digital sector that addressed the characteristics of digital mergers, theories of harm, remedies, and the scope for international cooperation. The group also issued a report on agency experiences with conglomerate mergers and work exploring the impact of procedural infringements by parties during merger investigations.
The Agency Effectiveness Working Group’s panel focused on competition agencies’ strategies to address the challenges of the digital economy. The group also has led the ICN’s efforts since the outset of the COVID-19 pandemic to share operational experiences and information on agencies’ adaptation policies.
The ICN Steering Group has also begun exploring the issues related to competition enforcement and advocacy pertaining to the intersection between competition, consumer protection, and data privacy law and policy, a project initiated by the FTC.
The ICN also unveiled its plan to conduct a comprehensive organizational review, co-led by the FTC, of the ICN’s substantive coverage, tools, and operational framework with a view to preparing for future developments and challenges as the ICN enters its third decade in 2021.
Recordings of the conference will be available on the ICN conference webpage after the close of the conference. Materials and recordings related to the Antitrust Division’s participation are available on the division’s International Program page
Supplemental annual conference programming will be held throughout the fall, including additional sessions organized by each of the ICN’s five Working Groups. The Antitrust Division, together with its co-chairs, will also lead a session for participants in the ICN Framework on Competition Agency Procedures (CAP).
The ICN was created in October 2001 to increase understanding of competition policy and promote convergence toward sound antitrust enforcement around the world. It was founded by 15 agencies including the Antitrust Division and the FTC, and has grown to 140 agencies from 129 jurisdictions, supported by a wide network of non-government advisors from around the world.
Hudson County Man Charged with Trafficking in Child PornographyRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was indicted today on charges of conspiring to produce and distribute, and producing, distributing, receiving, and possessing, images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Ramon Zelaya, 36, of Union City, is charged by superseding indictment with one count of conspiring to produce and distribute child pornography, two counts of sexual exploitation of a child, one count of distributing child pornography, two counts of receiving child pornography, and two counts of possessing child pornography. Zelaya was initially charged by complaint in March 2019 and by indictment in November 2019.
According to documents filed in this case and statements made in court:
On April 21, 2018, Zelaya used Facebook to conspire with an individual in the Dominican Republic to sexually abuse the individual’s minor child, create images of that abuse, and send the images to Zelaya, who then distributed the images among various Facebook accounts he controlled.
Between Aug. 20, 2018, and Sept. 20, 2018, Zelaya, representing himself as a teenaged boy, used Instagram communications to persuade a child to send him a revealing photograph. He then threatened to reveal that photograph as a means of coercing the child into sending him sexually explicit images. Zelaya subsequently distributed the images via Facebook.
The production charges each carry a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, and a $250,000 fine. The distribution charges each carry a mandatory minimum penalty of five years in prison, a maximum of 20 years, and a $250,000 fine. The possession charges carry maximum penalties of 20 years in prison and 10 years in prison, respectively, as well as a $250,000 fine for each. The conspiracy charge carries a maximum penalty of five years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason Molina, with the investigation leading to the charges. He also thanked the Union City, New Jersey, Police Department, under the direction of Chief Nichelle Luster, the Bayonne Police Department, under the direction of Chief of Police Robert Geisler, and the Public Prosecutor’s Office of San Cristóbal, Dominican Republic, for assistance in the investigation.
The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the U.S. Attorney’s Office Cybercrime Unit in Newark.
The charge and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Hotel Owner Pleads Guilty to Conspiring with Bank President to Defraud First NBC BankRead the Press Release
NEW ORLEANS – The United States Attorney’s Office announced that ARVIND “MIKE” VIRA (“VIRA”), age 74, a resident of New Orleans, Louisiana, pled guilty today to a years-long conspiracy with First NBC Bank president Ashton J. Ryan to defraud the New Orleans-based bank that failed in April 2017.
According to court documents, in 2006, Ryan lobbied VIRA to move his business accounts to First NBC Bank. VIRA agreed and became a customer of First NBC Bank. Thereafter, Ryan provided VIRA with preferential treatment. Although VIRA was assigned another loan officer, Ryan acted as his de facto loan officer at the bank. Ryan provided VIRA with low interest rates for VIRA’s loans. He also ensured that VIRA received high interest rates on his savings and checking accounts. Ryan personally approved 3% interest rates for savings and checking accounts held by VIRA, his businesses, and his family members. Ryan instructed VIRA to inflate his assets on bank loan documents, and VIRA complied by claiming to have substantial real estate and outside bank accounts that did not exist.
VIRA, in turn, provided personal loans to Ryan at Ryan’s request. Ryan, knowing that such a loan relationship was prohibited by banking regulations, instructed VIRA to conceal this personal loan relationship from First NBC Bank employees. During an FDIC regulatory exam in December 2012, FDIC examiners discovered that Ryan had borrowed money from First NBC Bank using VIRA’s loan proceeds. When examiners questioned him, Ryan admitted to their relationship, but claimed that he had not been aware that the source of the funds were First NBC Bank loan proceeds.
In order to further conceal the loans that he made to Ryan, VIRA misrepresented or omitted the interest payments he received from Ryan on his personal tax returns from 2011 through 2015. From 2011 through 2017, VIRA received approximately $1,220,271.07 in profits from Ryan’s interest payments and from Ryan’s preferential treatment at First NBC Bank.
“The FBI and our law enforcement partners have dedicated significant time and resources toward investigating the failure of FNBC, which resulted in nearly a billion dollar loss to the FDIC. Individuals like Mr. Vira who engage in fraudulent schemes that impact the security of financial institutions are being held accountable. His guilty plea today should be a deterrent to others who would attempt to defraud our nation's banking system,” said Bryan Vorndran, FBI New Orleans Special Agent in Charge.
“We are pleased to work with our law enforcement partners in bringing to justice those who conspire to defraud financial institutions regulated and supervised by the Federal Reserve Board,” said Stephen Donnelly, Acting Special Agent in Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection.
“We are pleased to join our law enforcement colleagues in bringing Mr. Vira to justice,” stated Laurie Younger, Special Agent in Charge of the Office of Inspector General for the Federal Deposit Insurance Corporation.
VIRA pled guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Sections 371 and 1344. The maximum penalties that may be imposed at sentencing are five years in prison; a fine of $250,000 or the greater of twice the gain to VIRA or twice the loss to any victim; and up to three years of supervised release.
U.S. District Judge Nannette Jolivette Brown set VIRA’s sentencing for January 7, 2020.
This case is being investigated by the Federal Bureau of Investigation; the Federal Deposit Insurance Corporation, Office of Inspector General; and the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General. Assistant U.S. Attorneys Sharan E. Lieberman, Matthew R. Payne, Nicholas D. Moses, and J. Ryan McLaren are in charge of the prosecution.
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Horseheads Man with Prior Rape Conviction Pleads Guilty to Receipt of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jeffrey Martin, 36, of Horseheads, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to receipt of child pornography, following a prior conviction. The charge carries a mandatory minimum penalty of 15 years in prison, a maximum of 40 years, and a $250,000 fine.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that between May 31 and July 19, 2019, Minor Victim 1 slept over at the defendant’s residence on several occasions with the permission of Minor Victim 1’s mother. During at least one of those occasions, Martin took several sexually explicit pictures of Minor Victim 1 with his cellular telephone, knowing that such photographs would be automatically uploaded to his Google online storage account.
The defendant was previously convicted of felony statutory rape in Mansfield, Pennsylvania, on July 19, 2004.
The plea is the result of an investigation by the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent-in-Charge Stephen Belongia.
Sentencing is scheduled for December 17, 2020, before Judge Siragusa.
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Hartford Man Sentenced to More Than 8 Years in Prison for Fentanyl Distribution and Gun Possession OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ARCADIO DONES, also known as “Gordo,” 45, of Hartford, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 100 months of imprisonment, followed by four years of supervised release, for fentanyl distribution and firearm possession offenses.
According to court documents and statements made in court, law enforcement received information that Dones was distributing fentanyl from a restaurant parking lot in Hartford’s North Meadows neighborhood. On three occasions in September 2018, investigators conducted controlled purchases of fentanyl from Dones.
Dones was arrested on September 27, 2018. On that date, a court-authorized search of his residence revealed a loaded Smith and Wesson .40 caliber pistol, more than 200 rounds of ammunition, approximately 200 grams of fentanyl, more than one kilogram of cocaine, a drug ledger, numerous items used in the processing and packaging of narcotics for street sale, $2,110 in cash, and other items. Investigators also seized more than $2,200 in cash from Dones’ person and vehicle.
Dones’ criminal history includes felony convictions for narcotics, firearm, aggravated battery, robbery and larceny offenses.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Dones has been detained since his arrest. On February 4, 2020, he pleaded guilty to one count of possession with intent to distribute 40 grams or more of fentanyl, and one count of possession of a firearm by a convicted felon.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Gang Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
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 neighborhoods safer for everyone.
Hartford Man Sentenced to 70 Months in Federal Prison for Drug and Gun OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MAURICE TUCKER, also known as “Mo,” 37, of Hartford was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 70 months of imprisonment, followed by four years of supervised release, for narcotics trafficking and firearm possession offenses.
According to court documents and statements made in court, in 2018, the FBI’s Northern Connecticut Gang Task Force began investigating Ricardo Reyes, also known as “Rick the Ruler,” a member of the Los Solidos street gang who was distributing fentanyl, heroin, cocaine and crack in the area of Park Street and Hungerford Street in Hartford. During the investigation, law enforcement conducted multiple controlled purchases of narcotics from Reyes. Court-authorized wiretaps confirmed that Reyes was distributing narcotics to numerous customers, and identified individuals who supplied drugs to Reyes and associates who sold drugs on his behalf. Intercepted communications also revealed Reyes was acquiring and trafficking firearms.
Investigators identified Tucker as a narcotics distributor. On May 2, 2019, a court-authorized search of Tucker’s residence revealed three loaded semiautomatic pistols, including one that had been reported stolen in 2011; assorted ammunition; approximately 22 grams of fentanyl packaged in 900 bags; approximately 59 grams of crack cocaine; approximately 15 grams of cocaine; items used to process and package narcotics for street sale, and $43,810 in cash. Tucker was arrested on state charges on that date.
Tucker has been detained since his federal arrest on June 17, 2019.
On June 27, 2019, a grand jury Hartford returned a 32-count indictment charging Reyes, Tucker and 13 associates with various narcotics trafficking and firearm possession offenses.
On March 16, 2020, Tucker pleaded guilty to one count of possession with intent to distribute, and distribution of, cocaine base (“crack”), and one count of possession of a firearm by a convicted felon.
Reyes has pleaded guilty and awaits sentencing.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and the New Britain Police Department have provided valuable assistance to the investigation. This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Harlem man sentenced to prison for beating, strangling woman on Fort Belknap Indian ReservationRead the Press Release
GREAT FALLS — A Harlem man who admitted beating and strangling a woman on the Fort Belknap Indian Reservation was sentenced today to 51 months in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
Douglas Floyd Main, 33, pleaded guilty in May to domestic abuse by habitual offender.
Chief U.S. District Judge Brian M. Morris presided.
In court documents filed in the case, the prosecution said Main beat and strangled a dating partner in November 2019 at a residence in Fort Belknap Agency, on the Fort Belknap Indian Reservation. Main had two prior convictions of abuse of a family member in 2007 and 2015 in Fort Belknap Tribal Court.
Assistant U.S. Attorney Jared Cobell prosecuted the case, which was investigated by the FBI and Fort Belknap Law Enforcement Services.
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Hancock county man charged with stealing approximately $1.2 millionRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today that Bruce Wayne Ford, 47, New Palestine, Indiana, has been charged with eleven counts of securities fraud, wire fraud, and money laundering.
“The financial investors in this case placed their hard earned money into the hands of someone whom they thought they could trust, oftentimes the majority of their life savings,” said Minkler. “Instead, the victim’s money fell into the hands of a thief who cares about no one but himself and his interests. Justice will prevail and hopefully restore some trust back to the victims.”
Ford, was arrested at his home Friday, September 11, 2020, and had his initial appearance on September 16, 2020 in the federal courthouse in Indianapolis. Through his company, Ford Financial and Insurance Services, he devised a scheme to defraud his investors by means of materially false statements and misrepresentations. As alleged in the Complaint, rather than invest his clients’ money as promised, Ford wired or transferred investor funds to Ford’s financial accounts to use for his own personal expenditures.
Ford’s illegal scheme to steal his clients’ investment funds was investigated by the Federal Bureau of Investigation, Indiana Secretary of State’s office, and the Greenfield Police Department.
“Investment fraud schemes ultimately lead to the loss of innocent victims’ hard-earned money. The victims expected the defendant to protect their future, not use their money to fund his personal lifestyle,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “The FBI will continue to work closely with our partner agencies to investigate these types of crime and ensure criminal activity is identified, investigated, and disrupted.”
“Ford was not registered to sell securities with the Secretary of State’s office, a basic requirement,” said Secretary of State Connie Lawson. “If one investor had checked his registration, his entire scheme would have crumbled. I encourage everyone to check their investor’s registration prior to exchanging any money. It’s a simple safeguard that could protect your retirement nest egg.”
According to Assistant U.S. Attorney Tiffany J. Preston, who is prosecuting this case for the government, Ford faces up to 25 years’ in federal prison if convicted of the charges.
An Indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to investigate and prosecute complex, large-scale fraud schemes that warrant federal resources and expertise, particularly those that exploit vulnerable victims, abuse positions of trust, undermine faith in the markets, pilfer public programs, or are perpetrated by career fraudsters.(See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.1)
Hancock County man sentenced for his role in a drug conspiracyRead the Press Release
WHEELING, WEST VIRGINIA – Antonio Dewayne Brown, of Weirton, West Virginia, was sentenced today to 45 months of incarceration for his role in a cocaine, crack cocaine, heroin, and fentanyl distribution operation, U.S. Attorney Bill Powell announced.
Brown, age 36, pled guilty to one count of “Aiding and Abetting Distribution of Cocaine Base” in February 2020. Brown admitted to working with others to distribute cocaine base, also known as “crack,” in August 2018 in Hancock County.
Assistant U.S. Attorneys Danae DeMasi-Lemon and Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Drug Enforcement Administration; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Marshall County Drug & Violent Crimes task Force, a HIDTA-funded initiative; The Ohio Valley Drug & Violent Crimes task Force, a HIDTA-funded initiative; the Jefferson County, Ohio, Drug & Violent Crimes Task Force; the Hancock County Sheriff’s Office; the Brooke County Sheriff’s Office; the Weirton Police Department; and the West Virginia Division of Natural Resources Police investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
U.S. District Judge John Preston Bailey presided.
Georgia man sentenced to 28 years for producing child pornography and sextorting dozens of girls onlineRead the Press Release
ATLANTA - Edward “Eddie” Okenica, who exploited dozens of girls online for his own sexual gratification, has been sentenced to 28 years of imprisonment after pleading guilty to multiple counts of producing child pornography.
“Okenica victimized dozens of girls as young as 12 years old from his home,” said U.S. Attorney Byung J. “BJay” Pak. “He is a sexual predator who exploited the vulnerability and fragility of his victims by relying on the relative anonymity of social media platforms. This case is a reminder that sextortion remains a huge threat to our youth and to their families and parents need to remain vigilant to guard against it by monitoring their children’s social media activities.”
“The Internet can be used for education, entertainment, collaboration, or it can be a place where criminals and predators lurk waiting to pounce on unsuspecting users. That’s how Okenica used it. He spread his filth, victimizing countless innocent children, all the while thinking he was safe,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Cases like this show these predators that there is no hiding from justice and HSI and its partners will work tirelessly to find and prosecute them.”
“The High Technology Crime Unit at the Forsyth County Sheriff’s Office is comprised of dedicated professionals who work diligently to build strong cases against criminals like Okenica who seek to target our children. I am happy that the FCSO could help build a case that the U.S. Attorney’s Office could prosecute federally. We will spare no expense or effort to identify and arrest anyone intent on preying on our most vulnerable,” said Forsyth County Sheriff Ron Freeman.
According to U.S. Attorney Pak, the charges and other information presented in court: For at least two years prior to his arrest in August 2019, Okenica used Snapchat and Instagram to solicit sexually explicit photographs and videos from dozens and dozens of young girls. Okenica convinced many of these girls to send him sexually explicit photos and videos by offering them “bribes” in the form of gift certificates or other token forms of payment. He also frequently demanded that these girls perform sexually humiliating acts, including placing various household objects in their bodies. In many instances, the girls would grow uncomfortable and beg Okenica to stop. But Okenica was indifferent to their pleas, even when the girls cried or harmed themselves.
If the girls expressed an unwillingness to keep producing more photos or videos, Okenica bullied, threatened, and extorted the girls to force them to continue. He threatened to share their videos online with the girls’ friends and/or family, and in multiple cases did in fact carry out his threats. If a girl blocked Okenica on Snapchat or Instagram, he frequently established new accounts to find the child and demand that she send him more sexually explicit photographs and videos.
Investigators positively identified approximately 36 victims in the United States and overseas. But investigators estimate that Okenica coerced as many as 100 minor victims to send him child pornography.
Edward “Eddie” Okenica, 24, of Cumming, Georgia, was sentenced to 28 years in prison to be followed by a lifetime of supervised release. He will be required to register as a sex offender upon release. Okenica pleaded guilty to eleven counts of producing child pornography on March 5, 2020.
This case was investigated by the Department of Homeland Security, Homeland Security Investigations and Forsyth County Sheriff’s Office.
Assistant U.S. Attorneys Alex R. Sistla and Erin Sanders prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Fresno Man Indicted for Trafficking Fentanyl, LSD, Cocaine and Heroin and a Firearm OffenseRead the Press Release
FRESNO, Calif. — A federal grand jury returned a five-count indictment today against Morgan Wency Ventura Sanchez, 23, of Fresno, charging him with possessing fentanyl, LSD, cocaine, and heroin with intent to distribute the controlled substances and possession of a firearm in furtherance of a drug trafficking crime, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Aug. 24, law enforcement officers executed a search warrant at Ventura Sanchez’s residence and car. Over 300 fentanyl pills were in the car and approximately 280 more fentanyl pills were found in the house. In addition, agents found 158 grams of cocaine, 23 grams of heroin, LSD stamps, several kilograms of marijuana, multiple digital scales with suspected drug residue on them, $41,433 in cash, and a loaded Beretta 92 FS, 9 mm pistol. Messages recovered from Ventura Sanchez’s cellphone contained evidence that he was distributing controlled substances.
This case is the product of an investigation by Homeland Security Investigations, the Drug Enforcement Administration and the Fresno Police Department. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
If convicted, Ventura Sanchez faces a five-year mandatory minimum sentence, a five-year consecutive mandatory minimum sentence (for a total 10-year mandatory minimum sentence), a maximum penalty of life in prison, and up to a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
Four Charged in Scheme to Steal Mail and Commit Bank FraudRead the Press Release
NEWARK, N.J. – Four people were arrested today for their roles in a conspiracy to commit bank fraud, including soliciting U.S. Postal Service (USPS) employees to steal check books and credit cards from the mail, depositing fraudulent checks, including pandemic relief checks, and using credit cards without authorization, U.S. Attorney Craig Carpenito announced.
Jeffrey Bennett, 26, of Irvington, New Jersey; Tashon Ragan, 21, of Hillside, New Jersey; Jahaad Flip, 21, and Janel Blackman, 41, both of Newark, are each charged by complaint with one count of conspiracy to commit bank fraud. Ragan and Flip are also charged with one count of passing fictitious obligations, namely counterfeit Economic Impact Payment (EIP) checks. Bennett and Ragan are also charged with one count each of aggravated identity theft. All four defendants are scheduled to appear this afternoon via videoconference before U.S. Magistrate Judge Mark Falk.
According to documents filed in this case and statements made in court:
From February 2019 to May 2020, a group that referred to themselves as the “Members,” and their associates, including Bennett, Flip, and Ragan, conspired to solicit and did solicit USPS employees, including Blackman, to steal U.S. mail containing checks, checkbooks, debit cards, and credit cards in exchange for cash. Once they received stolen checks, Bennett, Flip, Ragan, and others, fraudulently forged the signatures of the accountholders and negotiated the checks by making them payable to individuals, some of whom were New Jersey high school students, who had given the Members and their associates access to their accounts, also in exchange for cash. Bennett, Flip, and Ragan then attempted to and did deposit the fraudulent checks online and at various bank ATMs throughout New Jersey and later withdrew funds from the bank accounts before the victim banks could discover the fraud and decline the checks. Bennett also used the stolen credit cards to purchase gift cards or Apple products, which he then resold to generate additional proceeds from the scheme. Bennett, Flip, Ragan, and Blackman split the proceeds of the fraud among themselves.
Ragan and Flip are also charged with depositing thousands of dollars of counterfeit EIP checks purportedly issued pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized EIP payments structured as one-time refundable tax credits to certain eligible taxpayers of $1,200 for individuals, $2,400 for married couples filing jointly, and up to $500 for each qualifying child.
The conspiracy charge is punishable by a maximum potential penalty of 30 years in prison. The passing fictitious obligations charge is punishable by a maximum penalty of 25 years in prison. The aggravated identity theft charge is punishable by a mandatory sentence of two years in prison to be served consecutively to any other term of imprisonment imposed. The bank fraud conspiracy also carries a fine of up to $1 million. All other charges are punishable by a maximum $250,000 fine.
U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn; special agents with the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office; special agents with IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; and special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s arrests. He also thanked the Summit Police Department, the New Providence Police Department, the Piscataway Police Department, the Newark Police Department, the South Orange Police Department, and the Little Falls Police Department for their assistance.
The government is represented by Assistant U.S. Attorneys Jonathan Fayer of the Criminal Division and Elaine K. Lou of the Special Prosecutions Division in Newark.
The charges and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Founder and CEO of Cyberfraud Prevention Company Arrested and Charged with Securities Fraud SchemeRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that ADAM ROGAS, the co-founder and former CEO, CFO, and member of the board of directors of Las Vegas-based cyberfraud prevention company NS8, Inc. (“NS8”), was charged in a Complaint in Manhattan federal court with securities fraud, fraud in the offer and sale of securities, and wire fraud. ROGAS used fraudulent financial data to obtain over $123 million in financing for NS8, of which he personally obtained approximately $17.5 million. ROGAS was arrested today in the District of Nevada and is expected to be presented before a judge there tomorrow.
Acting Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Adam Rogas was the proverbial fox guarding the henhouse. While raising over $100 million from investors for his fraud prevention company, Rogas himself allegedly was engaging in a brazen fraud. Today’s arrest of Rogas ensures that he will be held accountable for his alleged scheme.”
FBI Assistant Director William F. Sweeney Jr. said: “It seems ironic that the co-founder of a company designed to prevent online fraud would engage in fraudulent activity himself, but today that’s exactly what we allege Adam Rogas did. Rogas allegedly raised millions of dollars from investors based on fictitious financial affirmations, and in the end, walked away with nearly $17.5 million worth of that money. Within our complex financial crimes branch, securities fraud cases remain among our top priorities. We’ve seen far too many examples of unscrupulous actors engaging in this type of criminal activity, and we continue to work diligently to weed out this behavior whenever and wherever we find it.”
As alleged in the Complaint unsealed today in Manhattan federal court: ADAM ROGAS was a co-founder of NS8, and served as its CEO, CFO, and a member of its board of directors. ROGAS was also primarily responsible for the company’s fundraising activities. NS8, based in Las Vegas, Nevada, is a cyberfraud prevention company that developed and sold electronic tools to help online vendors assess the fraud risks of customer transactions. In the fall of 2019 and the spring of 2020, NS8 engaged in fundraising rounds through which it issued Series A Preferred Shares and obtained approximately $123 million in investor funds.
ROGAS maintained control over a bank account into which NS8 received revenue from its customers, and periodically provided monthly statements from that account to NS8’s finance department so that NS8’s financial statements could be created. ROGAS also maintained control over spreadsheets that purportedly tracked customer revenue, which were also used to generate NS8’s financial statements.
ROGAS altered the bank statements before providing them to NS8’s finance department to show tens of millions of dollars in both customer revenue and bank balances that did not exist. In the period from January 2019 through February 2020, between at least approximately 40% and 95% of the purported total assets on NS8’s balance sheet were fictitious. In that same period, the bank statements that ROGAS altered reflected over $40 million in fictitious revenue.
ROGAS used these materially misleading financial statements to raise approximately $123 million from investors in the fall of 2019 and the spring of 2020. During the fundraising process, ROGAS also provided the falsified bank records he had created to auditors who were conducting due diligence on behalf of potential investors. After these fundraising rounds concluded, NS8 conducted a tender offer with the funds raised from investors, and ROGAS received $17.5 million in proceeds from that tender offer, personally and through a company he controlled.
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ROGAS, 43, of Las Vegas, Nevada, is charged with one count of securities fraud, which carries a maximum sentence of 20 years in prison, one count of fraud in the offer or sale of securities, which carries a maximum sentence of five years in prison, and one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the work of the FBI. Ms. Strauss further thanked the Securities and Exchange Commission for its cooperation and assistance in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Richard Cooper and Jared Lenow are in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former local judge convicted of fraudRead the Press Release
HOUSTON – A former Harris County judge has admitted to embezzling funds received during her re-election campaigns, announced U.S. Attorney Ryan K. Patrick and Special Agent in Charge Perrye K. Turner of the FBI Houston Division.
Alexandra Smoots-Thomas, 44, Houston, was the presiding judge for the 164th District Court for the State of Texas and had jurisdiction over Texas civil cases located within Harris County. She first ran for judicial office in 2008 and successfully ran for re-election in 2012 and 2016. Several individuals and political action committees had made substantial donations to those re-election campaigns.
Today, she pleaded guilty to one count of wire fraud, admitting she embezzled some of those funds. She repeatedly solicited contributions on the premise the money would be used to help facilitate her re-election campaigns. However, Smoots-Thomas used the campaign funds for non-campaign expenses to include monthly home mortgage payments, private school tuition payments and personal luxury items. She concealed this spending from both her campaign treasurer and the Texas Ethics Commission by filing false campaign finance reports.
Following the plea today, U.S. District Judge Lynn H. Hughes allowed Smoots-Thomas to immediately proceed to sentencing. The court heard arguments from the government citing how Smoots-Thomas abused her position and asked for a fair sentence within the U.S. Sentencing Guidelines. Judge Hughes permitted her release following her time already served in custody. Restitution will be determined at a hearing set for Oct. 26.
The FBI conducted the investigation. Assistant U.S. Attorneys Ralph Imperato and John Pearson prosecuted the case.