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16 September 2020
U.S. Army Reserve Soldier Sentenced in Methamphetamine Distribution Conspiracy Reaching OmahaRead the Press Release
United States Attorney Joe Kelly announced that on September 16, 2020, United States District Judge Robert F. Rossiter, Jr. sentenced Leonel Dario Blanco-Sanchez to a term of imprisonment of 80 months. Blanco-Sanchez will serve a 5-year term of supervised release following his release from the Bureau of Prisons. There is no parole in the federal system.
Blanco-Sanchez, 21, was convicted of conspiring to distribute and possess with intent to distribute methamphetamine with Samantha Perez-Juarez in the Omaha area between September of 2019 and January of 2020. Blanco-Sanchez, of Arizona, transported multi-pound quantities of methamphetamine from sources of supply in Arizona and California to Omaha on at least five occasions throughout the fall of 2019 and into January of 2020. Blanco-Sanchez and Perez-Juarez received direction from Mexico-based co-conspirators with whom they maintained contact, traveling in Blanco-Sanchez’s pickup truck bearing Army Veteran license plates to deliver methamphetamine to customers in Omaha.
On January 8, 2020, the Nebraska State Patrol stopped and arrested Blanco-Sanchez and Perez-Juarez as they returned to Omaha from Arizona. A subsequent search of the vehicle revealed approximately 13 pounds of methamphetamine which was seized by law enforcement.
Blanco-Sanchez served in the U.S. Army Reserve with the 387th Engine Company, an Army Reserve unit in Scottsdale, Arizona, and was deployed to Iraq for one year in 2018 and 2019.
Co-defendant Perez-Juarez is pending sentencing in the same case.
The case was primarily investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation Safe Streets Task Force, and the Nebraska State Patrol.
Two Plead Guilty to Racehorse Doping ChargesRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that two defendants, SCOTT ROBINSON and SARAH IZHAKI, each pled guilty today to conspiring to unlawfully distribute adulterated and misbranded drugs for the purpose of doping racehorses in connection with the two cases in which they are charged, United States v. Robinson, 20 Cr. 162 (JPO), and United States v. Izhaki, 20 Cr. 161 (MKV). ROBINSON pled guilty before U.S. District Judge J. Paul Oetken, and will be sentenced by Judge Oetken on January 15, 2021. IZHAKI pled guilty before U.S. District Judge Mary Kay Vyskocil, and will be sentenced by Judge Vyskocil on December 2, 2020.
Acting U.S. Attorney Audrey Strauss said: “Scott Robinson and Sarah Izhaki represent the supply side of a market of greed that continues to endanger racehorses through the sale of performance-enhancing drugs. Each of these defendants provided the raw materials for fraud and animal abuse through the sale of unregulated and dangerous substances: Robinson’s products were manufactured in shoddy facilities with no professional oversight of their composition; Izhaki’s products were smuggled into the country and sold from cars in supermarket parking lots. These convictions show that our Office and our partners at the FBI are committed to the prosecution and investigation of corruption, fraud, and endangerment in the horse racing industry.”
According to the Indictments, the Superseding Information to which ROBINSON pled guilty, the Superseding Information to which IZHAKI pled guilty, and other court documents, as well as statements made in public court proceedings:
From at least in or about 2011 through at least in or about March 2020, ROBINSON conspired with others to manufacture, sell, and ship millions of dollars’ worth of adulterated and misbranded equine drugs, including performance-enhancing drugs intended to be administered to racehorses for the purpose of improving those horses’ race performance in order to win races and obtain prize money. ROBINSON sold these drugs through several direct-to-consumer websites designed to appeal to racehorse trainers and owners, including, among others, “horseprerace.com.”
ROBINSON contributed to the conspiracy by, among other things, sourcing chemicals used to create custom PEDs that were advertised and sold; falsely labeling, packaging, and shipping those PEDs to customers across the country, including in the Southern District of New York; and collecting, reporting, and responding to employee and customer complaints regarding the misbranded and adulterated products advertised and sold online. Among the drugs advertised and sold during the course of the conspiracy were “blood builders,” which are used by racehorse trainers and others to increase red blood cell counts and/or the oxygenation of muscle tissue of a racehorse in order to stimulate the horse’s endurance, which enhances that horse’s performance in, and recovery from, a race, as well as customized analgesics which are used by racehorse trainers and others to deaden a horse’s nerves and block pain in order to improve a horse’s race performance. The drugs distributed through the defendants’ websites were manufactured in non-FDA registered facilities and carried significant risks to the animals affected through the administration of those illicit PEDs. For example, in 2016, ROBINSON received a complaint regarding the effect of his unregulated drugs on a customer’s horse: “starting bout 8 hours after I give the injection and for about 36 hours afterwards both my horses act like they are heavily sedated, can barely walk. Could I have a bad bottle of medicine, I’m afraid to give it anymore since this has happened three times.” Commenting on this complaint, ROBINSON wrote simply, “here is another one.”
In a separate conspiracy, from at least in or about February 2018 through at least in or about November 2019, IZHAKI conspired with others to transport, sell, and deliver, tens of thousands of dollars of erythropoietin, a “blood builder” drug intended to increase a horse’s racing performance, which had been smuggled into the country from Mexico. This drug was covertly transported into the United States and sold by IZHAKI, who believed it would be used by racehorse trainers to illicitly improve their horses’ race performance. IZHAKI also offered for sale amphetamines, and a substance that IZHAKI referred to as “the Devil,” which IZHAKI claimed would mask the presence of potent drugs in a human or animal’s body.
The defendants are among 27 individuals charged in a series of Indictments arising from an investigation of a widespread scheme by racehorse trainers, veterinarians, PED distributors, and others to manufacture, distribute, and receive adulterated and misbranded PEDs and to secretly administer those PEDs to racehorses competing at all levels of professional horseracing. By evading PED prohibitions and deceiving regulators and horse racing officials, participants in these schemes sought to improve race performance and obtain prize money from racetracks, all to the detriment and risk of the health and well-being of the racehorses.
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ROBINSON, 46, of Tampa, Florida and IZHAKI, 45, of Manalapan, New Jersey, each pled guilty to one count of conspiring to unlawfully introduce and receive with the intent to redistribute for pay or otherwise adulterated and misbranded drugs in interstate commerce, and to misbrand drugs in interstate commerce. This offense carries a maximum sentence of five years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Acting U.S. Attorney Strauss praised the outstanding investigative work of the FBI New York Office’s Eurasian Organized Crime Task Force and its support of the Bureau’s Integrity in Sports and Gaming Initiative. Ms. Strauss also thanked the New Jersey Attorney General’s Office, the New York State Police, and the New York City Police Department for their support of this investigation, and the Food and Drug Administration and Drug Enforcement Administration for their assistance and expertise.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Sarah Mortazavi, Benet J. Kearney, and Andrew C. Adams are in charge of the prosecution.
Two Iranian Nationals Charged in Cyber Theft and Defacement Campaign Against Computer Systems in United States, Europe, and Middle EastRead the Press Release
NEWARK, N.J. – Two Iranian nationals have been charged in connection with a coordinated cyber intrusion campaign – sometimes at the behest of the government of Iran – targeting computers in New Jersey and around the world, U.S. Attorney Craig Carpenito announced today.
Hooman Heidarian, a/k/a “neo,” 30, and Mehdi Farhadi, a/k/a “Mehdi Mahdavi” and “Mohammad Mehdi Farhadi Ramin,” 34, both of Hamedan, Iran, are each charged in a 10-count indictment returned Sept. 15, 2020, with: one count each of conspiracy to commit fraud and related activity in connection with computers and access devices; computer fraud - unauthorized access to protected computers: computer fraud, unauthorized damage to protected computers; conspiracy to commit wire fraud; and access device fraud; and five counts of aggravated identity theft.
“These Iranian nationals allegedly conducted a wide-ranging campaign on computers here in New Jersey and around the world,” U.S. Attorney Carpenito said. “They brazenly infiltrated computer systems and targeted intellectual property and often sought to intimidate perceived enemies of Iran, including dissidents fighting for human rights in Iran and around the world. This conduct threatens our national security, and as a result, these defendants are wanted by the FBI and are considered fugitives from justice.”
“We will not bring the rule of law to cyberspace until governments refuse to provide safe harbor for criminal hacking within their borders,” Assistant Attorney General for National Security John C. Demers said. “Unfortunately, our cases demonstrate that at least four nations—Iran, China, Russia and North Korea—will allow criminal hackers to victimize individuals and companies from around the world, as long as these hackers will also work for that country’s government—gathering information on human rights activists, dissidents and others of intelligence interest. Today’s defendants will now learn that such service to the Iranian regime is not an asset, but a criminal yoke that they will now carry until the day they are brought to justice.”
“The indictment of two Iranian nationals charged with computer hacking, fraud, and aggravated identity theft demonstrates how the FBI continues to work relentlessly with our law enforcement partners to identify cybercriminals who seek to do harm to American citizens, businesses, and universities, regardless of where those criminals may reside and hold them accountable,” George M. Crouch Jr., Special Agent in Charge of the FBI Newark Division, said. “Mehdi Farhadi and Hooman Heidarian are now fugitives and have been added to the FBI website for charges in connection with a massive, coordinated cyber intrusion campaign. These actions demonstrate how imposing risks and consequences on our cyber adversaries will continue to be a top priority for the FBI.”
According to the indictment:
Beginning in at least 2013, the defendants were responsible for a coordinated campaign of cyber intrusions into computer systems in New Jersey and around the world. The victims included several American and foreign universities, a Washington, D.C.-based think tank, a defense contractor, an aerospace company, a foreign policy organization, non-governmental organizations (NGOs), non-profits, and foreign government and other entities identified as rivals or adversaries to Iran around the world.
Heidarian and Farhadi conducted many of these intrusions on behalf of the Iranian government. The stolen data was typically highly protected and extremely sensitive, and included confidential communications pertaining to national security, foreign policy intelligence, non-military nuclear information, aerospace data, human rights activist information, victim financial information and personally identifiable information, and intellectual property, including unpublished scientific research. The defendants also often vandalized websites using the pseudonym “Sejeal” and posted messages that appeared to signal the demise of Iran’s internal opposition, foreign adversaries, and countries identified as rivals to Iran, including Israel and Saudi Arabia.
Tactics and Techniques
The defendants conducted online reconnaissance to carefully select their victims, gathering data and intelligence to determine their areas of expertise, and assessing computer networks in preparation for launching cyber-attacks. They often used information obtained at this stage in latter phases of their hacking activities to complete a picture of processes, organizational structure, and potential soft spots of victim networks. The defendants used vulnerability-scanning tools to test the victim networks and to reveal security holes.
The defendants gained and maintained unauthorized access to victim networks using various tools, including: session hijacking, where a valid computer session was exploited to gain unauthorized access to information or services in a computer system; SQL injection, in which they used malicious code to access information that was not intended to be displayed, such as sensitive government data, user details, and personal identifiers; and malicious programs installations, which allowed the defendants to maintain unauthorized access to computers.
The defendants then used key-loggers and “remote access Trojans” to maintain access and monitor the actions of users of the victim networks. They also developed a botnet tool, which facilitated the spread of malware, denial of service attacks, and spamming to victim networks. In some instances, the defendants used their unauthorized access to victim networks or accounts to establish automated forwarding rules for compromised victim accounts, whereby new outgoing and incoming emails were automatically forwarded from the compromised accounts to accounts controlled by defendants
Using these methods, the defendants stole hundreds of terabytes of data, including confidential victim work product and intellectual property, and personal identifying information, such as access credentials, names, addresses, phone numbers, Social Security numbers, and birthdates. The defendants marketed stolen data on the black market.
In addition to stealing intellectual property and other data, the defendants, using the pseudonym “Sejeal,” replaced the publicly available contents of websites with political and other ideological content, thereby defacing websites, for the apparent purpose of projecting Iranian influence and threatening perceived enemies of Iran. The defacements featured, among other things, images of burning Israeli flags and threats forecasting the death or demise of citizens in the United States, Israel, and elsewhere.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Crouch in Newark, with the investigation leading to the charges.
The counts of conspiracy to commit computer fraud and related activity in connection with computers and access devices, unauthorized access to protected computers, and computer fraud – unauthorized damage to protected computers, each carry a maximum sentence of five years in prison. The count of conspiracy to commit wire fraud carries a maximum sentence of 20 years in prison. The counts of aggravated identity theft each carry a mandatory sentence of two years in prison. The count of access device fraud carries a maximum sentence of 10 years in prison.
The government is represented by Assistant U.S. Attorney Dean C. Sovolos of the U.S. Attorney’s Office National Security Unit, Daniel V. Shapiro, Deputy Chief of the U.S. Attorney’s Office Criminal Division, and Trial Attorney Scott McCulloch of the National Security Division.
The charges and allegations contained in the indictment are merely accusations and the defendants are considered innocent unless and until proven guilty.
Two Iranian Nationals Charged in Cyber Theft Campaign Targeting Computer Systems in United States, Europe, and the Middle EastRead the Press Release
Two Iranian nationals have been charged in connection with a coordinated cyber intrusion campaign – sometimes at the behest of the government of the Islamic Republic of Iran (Iran) – targeting computers in New Jersey, elsewhere in the United States, Europe and the Middle East, the Department of Justice announced today.
According to a 10-count indictment returned on Sept. 15, 2020, Hooman Heidarian, a/k/a “neo,” 30, and Mehdi Farhadi, a/k/a “Mehdi Mahdavi” and “Mohammad Mehdi Farhadi Ramin,” 34, both of Hamedan, Iran, stole hundreds of terabytes of data, which typically included confidential communications pertaining to national security, foreign policy intelligence, non-military nuclear information, aerospace data, human rights activist information, victim financial information and personally identifiable information, and intellectual property, including unpublished scientific research. In some instances, the defendants’ hacks were politically motivated or at the behest of Iran, including instances where they obtained information regarding dissidents, human rights activists, and opposition leaders. In other instances, the defendants sold the hacked data and information on the black market for private financial gain.
“We will not bring the rule of law to cyberspace until governments refuse to provide safe harbor for criminal hacking within their borders,” said Assistant Attorney General for National Security John C. Demers. “Unfortunately, our cases demonstrate that at least four nations — Iran, China, Russia and North Korea — will allow criminal hackers to victimize individuals and companies from around the world, as long as these hackers will also work for that country’s government — gathering information on human rights activists, dissidents and others of intelligence interest. Today’s defendants will now learn that such service to the Iranian regime is not an asset, but a criminal yoke that they will now carry until the day they are brought to justice.”
“These Iranian nationals allegedly conducted a wide-ranging campaign on computers here in New Jersey and around the world,” said U.S. Attorney Carpenito for the District of New Jersey. “They brazenly infiltrated computer systems and targeted intellectual property and often sought to intimidate perceived enemies of Iran, including dissidents fighting for human rights in Iran and around the world. This conduct threatens our national security, and as a result, these defendants are wanted by the FBI and are considered fugitives from justice.”
“The indictment of two Iranian nationals charged with computer hacking, fraud, and aggravated identity theft demonstrates how the FBI continues to work relentlessly with our law enforcement partners to identify cybercriminals who seek to do harm to American citizens, businesses, and universities, regardless of where those criminals may reside and hold them accountable,” said George M. Crouch Jr., Special Agent in Charge of the FBI Newark Division. “Mehdi Farhadi and Hooman Heidarian are now fugitives and have been added to the FBI website for charges in connection with a massive, coordinated cyber intrusion campaign. These actions demonstrate how imposing risks and consequences on our cyber adversaries will continue to be a top priority for the FBI.”
According to the indictment:
Beginning in at least 2013, the defendants were responsible for a coordinated campaign of cyber intrusions into computer systems in New Jersey and around the world. The victims included several American and foreign universities, a Washington, D.C.-based think tank, a defense contractor, an aerospace company, a foreign policy organization, non-governmental organizations (NGOs), non-profits, and foreign government and other entities the defendants identified as rivals or adversaries to Iran. In addition to the theft of highly protected and sensitive data, the defendants also vandalized websites, often under the pseudonym “Sejeal” and posted messages that appeared to signal the demise of Iran’s internal opposition, foreign adversaries, and countries identified as rivals to Iran, including Israel and Saudi Arabia.
To select their victims, the defendants conducted online reconnaissance, including gathering public data and intelligence to determine a victim’s areas of expertise, and using vulnerability scanning tools and other means to assess computer networks. The defendants gained and maintained unauthorized access to victim networks using various tools, including: session hijacking, where a valid computer session was exploited to gain unauthorized access to information or services in a computer system; SQL injection, in which they used malicious code to access information that was not intended to be displayed, such as sensitive government data, user details, and personal identifiers; and malicious programs installations, which allowed the defendants to maintain unauthorized access to computers.
The defendants then used key-loggers and “remote access Trojans” to maintain access and monitor the actions of users of the victim networks. They also developed a botnet tool, which facilitated the spread of malware, denial of service attacks, and spamming to victim networks. In some instances, the defendants used their unauthorized access to victim networks or accounts to establish automated forwarding rules for compromised victim accounts, whereby new outgoing and incoming emails were automatically forwarded from the compromised accounts to accounts controlled by defendants.
Assistant Attorney General Demers and U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Crouch in Newark, with the investigation leading to the charges.
Each defendant is charged with: one count of conspiracy to commit fraud and related activity in connection with computers and access devices; unauthorized access to protected computers; unauthorized damage to protected computers; conspiracy to commit wire fraud; and access device fraud; and five counts of aggravated identity theft.
The counts of conspiracy to commit computer fraud and related activity in connection with computers and access devices, and unauthorized access to protected computers, each carry a maximum sentence of five years in prison. The counts of unauthorized damage to protected computers and access device fraud each carry a maximum sentence of ten years in prison. The count of conspiracy to commit wire fraud carries a maximum sentence of 20 years in prison. The counts of aggravated identity theft each carry a mandatory sentence of two years in prison.
The government is represented by Assistant U.S. Attorney Dean C. Sovolos of the U.S. Attorney’s Office National Security Unit, Daniel V. Shapiro, Deputy Chief of the U.S. Attorney’s Office Criminal Division, and Trial Attorney Scott McCulloch of the National Security Division’s Counterintelligence and Export Control Section.
The charges and allegations contained in the indictment are merely accusations and the defendants are considered innocent unless and until proven guilty.
Two Individuals Sentenced to Twenty-Four Months in Prison for a $1.7 Million Tax Refund SchemeRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on September 8, 2020, United States District Judge Lynn Adelman sentenced Alberto Fernandez Ramirez (51) and Ana Delia Dominguez (45), of Milwaukee, Wisconsin, to 24 months in prison for fraudulently obtaining over $1.7 million in tax refund checks. Both Ramirez and Dominguez pled guilty to three counts of theft of government money, in violation of Title 18, United States Code, Section 641. Judge Adelman also ordered them to pay $1,733,677.22 in restitution to the Internal Revenue Service.
Ramirez and Dominguez, who are married, committed their theft by fraudulently obtaining Individual Tax Identification Numbers (“ITINs”) from the IRS. They did so by obtaining personal identifying documents of citizens in Mexico, and then used those documents to obtain ITINs in those individuals’ names. They then used the ITINs to file false tax returns that often fraudulently claimed the Additional Child Tax Credit. These false returns caused the IRS to send out United States Treasury tax refund checks. From approximately 2010 through 2017, Ramirez and Dominguez received over $1.7 million worth of refund checks due to their scheme. At sentencing, the government recommended that the Court impose a term of incarceration consistent with the advisory Guidelines range, which called for 46-57 months of incarceration.
“The defendants pursued an outrageous and brazen scheme to steal taxpayer dollars, by obtaining ITINs in the names of foreign nationals and then using those ITINs to file bogus tax refund claims,” said U.S. Attorney Krueger. “I commend the excellent investigative work by the IRS to build this case.”
“We want everyone who files a tax return to take advantage of the deductions and credits to which they are entitled by law; however, no one is allowed to defraud the government and take what is not theirs”, stated Special Agent in Charge Kathy A. Enstrom of the IRS Criminal Investigation, Chicago Field Office. “The IRS will continue to be relentless in our mission to stop these types of fraudulent tax refund schemes and will continue to bring criminals to justice.”
This case was investigated by IRS Criminal Investigation. It is was prosecuted by Assistant United States Attorney Keith Alexander.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Two Buyers Indicted for Child Sex TraffickingRead the Press Release
Two men who allegedly purchased sex from a 13-year-old trafficking victim have been arrested and charged with child sex trafficking, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
On Sept. 2, a federal grand jury indicted Kention Obryan Johnson, 35, and Sergio Trinidad Carvajal, 30, for conspiracy to commit sex trafficking and sex trafficking of children. The defendants were arrested in Dallas last Wednesday; their court documents were unsealed today.
“Traffickers sell children for sex because their clients will pay for it. It’s that simple,” U.S. Attorney Nealy Cox said at a press conference this morning. “By attacking both the supply and the demand, we think we will be able to truly make a difference in fighting this dehumanizing, horrific crime.”
“The sex trafficking of minors is a despicable crime that HSI Dallas and our dedicated partners will continue to prioritize and relentlessly investigate. Whether you’re involved in the actual trafficking or perpetuate it as a consumer, HSI will use every resource available to ensure you face justice,” said Ryan L. Spradlin, Special Agent in Charge of HSI’s Dallas Field Office. “HSI will continue to pursue individuals involved in this type of modern-day slavery, and work vigorously to rescue the young, helpless victims whose dignity and well-being are blatantly disregarded.”
According to a criminal complaint filed late last year, Mr. Johnson and Mr. Carvajal’s coconspirator, 34-year-old Curtis Vance Mathis, allegedly advertised the Jane Doe on CityXGuide.com, an illegal sexual services website that has since been shut down by the U.S. Attorney’s Office for the Northern District of Texas. Agents recovered the child – dressed only in an oversized hoodie – in a West Irving hotel room rented in Mr. Mathis’ name on Nov. 5, 2019.
According to search warrant affidavits unsealed today, during the investigation, agents reviewed hotel surveillance footage and observed several men – later identified as Mr. Mathis, Mr. Johnson, Mr. Carvajal – enter and exit the room. Agents then searched Jane Doe’s phone records and uncovered text chats with Mr. Johnson and Mr. Carvajal discussing the price for a “qv,” or “quick visit,” commercial sex parlance for a brief sexual encounter. A forensic investigation later confirmed that DNA recovered from discarded condoms found in the hotel room matched Mr. Johnson and Mr. Carvajal.
This prosecution is part of the Justice Department’s sex trafficking demand reduction initiative, a program focused on punishing and deterring those who drive the market for sex from children and other vulnerable persons. The Abolish Human Trafficking Act of 2017 reaffirmed that a person who knowingly purchases a commercial sex act with a trafficking victim is just as culpable as the person who supplies the trafficking victim for commercial sex.
An indictment is merely an allegation of criminal conduct, not evidence. Defendants are presumed innocent unless and until proven guilty in a court of law.
If convicted, Mr. Johnson and Mr. Carvajal each face up to life in federal prison, as does Mr. Mathis.
Homeland Security Investigations’ Dallas Field Office conducted the investigation with assistance from the Fort Worth Police Department. Assistant U.S. Attorneys Myria Boehm and Becky Ricketts are prosecuting the case.
Three Men Charged with Burglarizing Gun Range and Theft of FirearmsRead the Press Release
Memphis, TN – On September 10, 2020, a federal grand jury returned a two-count indictment against three individuals for conspiracy and theft of firearms from a federally licensed firearms dealer. D. Michael Dunavant, U.S. Attorney announced the indictment today.
According to the indictment, on August 2, 2020, at approximately 11:12 p.m., the Shoot Point Blank gun range, a federally licensed firearms dealer located at 1740 Century Center Cove in Memphis, Tennessee was burglarized. Three suspects took a total of 32 firearms from the business.
The defendants are listed below:
• Kendrick Monger, 24, Memphis, Tennessee
• Corey Groves, 25, Memphis, Tennessee
• Martez Banks, 25, Memphis, Tennessee
If convicted, the defendants each face up to 10 years imprisonment. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "The proliferation of stolen firearms on the streets of Memphis contributes to the increased frequency and severity of shooting incidents and violent crime in our neighborhoods. Under Operation LeGend, we are surging federal resources to assist local law enforcement, and we are committed in our resolve to reduce violent crime by aggressively prosecuting federal firearms offenses. This indictment does just that."
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case as part of Operation LeGend, a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime, particularly gun violence, in Memphis.
Assistant U.S. Attorney Elizabeth Rogers is prosecuting this case on behalf of the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Supplier to Trenton Drug Trafficking Conspiracy Sentenced to 17 Years in Prison for Heroin Distribution and Firearms OffensesRead the Press Release
TRENTON, N.J. – A Trenton man was sentenced today to 204 months in prison for his role as a supplier to a significant drug trafficking conspiracy that distributed more than one kilogram of heroin in Trenton and the surrounding area, U.S. Attorney Craig Carpenito announced.
David Antonio, a/k/a “Pop,” a/k/a “Papi,” a/k/a “Santiago Ramirez,” 32, previously pleaded guilty before Chief U.S. District Judge Freda L. Wolfson in Trenton federal court to Count One of a third superseding indictment charging him with conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin. Judge Wolfson imposed the sentence today by videoconference.
In October 2018, Antonio, and 25 other individuals were charged by criminal complaint with conspiracy to distribute heroin. On Feb. 27, 2020, a grand jury returned a 10-count third superseding indictment charging Antonio and six other defendants with conspiracy to distribute one kilogram or more of heroin and various other drug and firearm offenses. Twenty-three of the 26 defendants charged in the complaint have pleaded guilty.
According to documents filed in this case and statements made in court:
From October 2017 to October 2018, the defendant and others engaged in a large drug trafficking conspiracy that operated in the areas of Martin Luther King Boulevard, Sanford Street, Middle Rose Street, Southard Street, Hoffman Avenue, Chambers Street, and Coolidge Avenue in Trenton, and which sought to profit from the distribution of heroin and numerous other controlled substances. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin, the use of confidential sources of information, and other investigative techniques, law enforcement learned that conspirators Jakir Taylor and Jerome Roberts obtained regular supplies of hundreds of “bricks” of heroin from Antonio. Intercepted communications among Taylor, Roberts, Antonio, and other conspirators revealed that Taylor and Roberts agreed to obtain from Antonio, and that Antonio agreed to supply, a “motherlode” of as many as 1,400 bricks of heroin in a single delivery – equating to approximately 1.5 kilograms of heroin. Taylor told Antonio that he intended to “flood the streets” of Trenton with this large supply, and Antonio agreed to supply a sufficient amount of heroin to Taylor that would allow him to do so. In communications with Taylor, Antonio indicated that he was “filling the bags” up with heroin and fentanyl. During coordinated arrests on Oct. 25, 2018, law enforcement arrested Antonio at a residence in Trenton, and recovered more than 1.4 kilograms of heroin, in addition to a significant amount of paraphernalia used to package heroin for distribution.
In addition to the prison term, Judge Wolfson sentenced Antonio to five years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr.; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, Trenton Field Office, under the direction of Special Agent in Charge Charlie J. Patterson; officers of the Trenton Police Department, under the direction of Police Director Sheilah Coley; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; officers of the Burlington Township Police Department, under the direction of Police Director Bruce Painter; and detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Coffina, with the investigation leading to today’s sentencing. He also thanked officers of the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan; detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri; officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler; and members of the New Jersey State Board of Parole for their assistance in the investigation and prosecution of the case.
The government is represented by Attorney-in-Charge J. Brendan Day and Assistant U.S. Attorney Alexander Ramey of the U.S. Attorney’s Office’s Criminal Division in Trenton.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Greater Trenton Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies to enhance the identification, apprehension, and prosecution of individuals involved in gang-related activities, violent crime, and drug distribution in and around the greater Trenton area. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
The three remaining defendants charged in this case are presumed innocent until proven guilty.
Statement of U.S. Attorney Brian T. Moran regarding report in New York Times:Read the Press Release
Statement of U.S. Attorney Brian T. Moran:
“Throughout this lengthy period of civil unrest, I have had multiple conversations with Department of Justice leadership. They have asked for information about protest activity devolving into violence, about federal interests implicated by the Capitol Hill Organized Protest, and about the cases filed in this District regarding federal crimes. At no time has anyone at the Department communicated to me that Seattle Mayor Jenny Durkan is, was, or should be the subject of a criminal investigation or should be charged with any federal crime related to the Capitol Hill Organized Protest (CHOP). As U.S. Attorney I would be aware of such an investigation.
My office continues to work collaboratively with state and local law enforcement, including the Seattle Police Department, to prosecute federal crimes such as arson, weapons violations and the use of destructive devices. Those cases are traditionally an area of focus for federal law enforcement. The goal of my office is to strongly deter criminal acts that have no place alongside, and only endanger, those who choose to engage in constitutionally protected speech.”
St. Louis doctor pleads guilty to distribution of child pornographyRead the Press Release
ST. LOUIS, MO – United States District Judge John A. Ross accepted a plea, today, from 48-year-old Ashu Joshi. Joshi, a St. Louis resident, pleaded guilty to distribution of child pornography.
According to a plea agreement, Joshi was 46 years old and a doctor when he began a relationship with a 16-year-old girl. Joshi met the girl through her mother. The mother was a former patient of the doctor’s in Kentucky. The doctor and victim had sex and took pornographic pictures. Both exchanged photos over Facebook messenger.
In October 2018, a St. Louis County Police Officer received four cyber-tips from the National Center for Missing and Exploited Children. The tips were first to the Bowling Green, KY Police Department. The BGPD then asked St. Louis County Police for help after investigators learned one of the parties lived in St. Louis County.
The tip told investigators, between August and September 2018, a Facebook account linked to the doctor uploaded and sent several pictures containing child pornography.
The charge of distribution of child pornography carries a maximum penalty of 20 years imprisonment and a fine of no more than $250,000.
Judge Ross has set sentencing for October 7, 2020.
The Federal Bureau of Investigation, St. Louis County Police Department and the Regional Computer Crimes Education and Enforcement Group investigated this case. Assistant United States Attorney Colleen Lang and Investigator Donya Jackson are handling the case for the United States Attorney’s Office.
Somerville Man Indicted on Gun, Ammunition and Drug ChargesRead the Press Release
BOSTON – A Somerville man was indicted yesterday in connection with selling drugs while illegally in possession of a loaded firearm.
Tevon Ngomba, 27, was indicted on one count of distributing and possessing with intent to distribute 40 grams or more of fentanyl, one count of possessing with intent to distribute fentanyl and one count of possessing a firearm and ammunition as a convicted felon.
According to charging documents, on or about July 16, 2020, Ngomba possessed with intent to distribute and distributed 40 grams or more of fentanyl in exchange for approximately $1,800. On or about Aug. 3, 2020, Ngomba possessed with intent to distribute fentanyl. He was also in possession of a Ruger, .40 caliber pistol with an obliterated serial number which was loaded with three rounds of .40 caliber S&W ammunition. Due to a prior state conviction punishable by more than one year of incarceration, Ngomba is prohibited from possessing firearms or ammunition.
The charge of possession with intent to distribute and distribution of 40 grams or more of fentanyl provides for a sentence of at least five years and up to 40 years in prison, at least four years and up to life of supervised release and a fine of up to $5 million. The charge of possession with intent to distribute fentanyl provides for a sentence of up to 20 years in prison, at least three years and up to life of supervised release and a fine of up to $1 million. The charge of being a felon in possession of a firearm and ammunition 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 Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division; Somerville Police Chief David Fallon; and Somerville Housing Authority Chief of Police Daniel Meade made the announcement. Assistant U.S. Attorney Kaitlin R. O’Donnell 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.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Shawnee Man Sentenced to 5 Years for Buying Child Porn Site MembershipRead the Press Release
KANSAS CITY, KAN. – A Shawnee man was sentenced Tuesday to five years in federal prison for buying a membership to access a child pornography site on the internet, U.S. Attorney Stephen McAllister said. In addition, he was fined $5,000 under the Justice for Victims of Trafficking Act.
Daryl Miller, 36, Shawnee, Kan., pleaded guilty to one count of access with intent to view child pornography.
Miller was identified during an investigation by Homeland Security Investigations (HSI) into the trafficking of child pornography on the Dark Web. Investigators in Washington, D.C., accessed a child pornography web site that sold access to users. They served a search warrant for the web site’s server, from which they learned that Miller had made 10 payments to the web site in 2016 and 2017. He used bitcoin virtual currency to make payments.
A forensic analysis of electronic devices in Miller’s home confirmed he had downloaded child pornography.
McAllister commended HSI and Assistant U.S. Attorney Kim Flannigan for their work on the case.
Seventeen people charged in heroin and crack cocaine distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Seventeen people were charged with drug distribution in early September in a one-count indictment, U.S. Attorney Bill Powell announced.
Sixteen of the defendants were arrested in a multi-agency operation yesterday, September 15, 2020. Those charged and arrested for conspiracy to distribute heroin and cocaine base are:
- Alonzo Eugene Travis, age 27, of Detroit, Michigan
- Tyron Terreono Adams, age 26, of Detroit, Michigan
- Darius Dashawn Wade, age 26, of Grosse Pointe, Michigan
- Willie Clark, age 27, of Warren, Michigan
- Schuyler Davis, age 30, of Detroit, Michigan
- Kyle Alexander Martin, age 33, of Morgantown, West Virginia
- Kenneth Burns, age 34, of Morgantown, West Virginia
- Jeremy Hamlin, age 41, of Morgantown, West Virginia
- Donald Noel Smith, age 41, of Oakland, Maryland
- Alyssa Demus, age 30, of Fairmont, West Virginia
- Candis Sanders, age 38, of Morgantown, West Virginia
- Daniel McClung, age 40, of Morgantown, West Virginia
- Daniel Meadows, age 49, of Morgantown, West Virginia
- Andrew Benson, age 34, of Morgantown, West Virginia
- Larry Bruce Heaster, age 55, of Morgantown, West Virginia
- Lance Smith, age 46, of Confluence, Pennsylvania
The U.S. Marshals are looking for information leading to the arrest of Candice Marie Adams, age 40, of Morgantown, West Virginia. Anyone with information is asked to contact the U.S. Marshal Service at 304-623-0486.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Drug Enforcement Administration, the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Monongalia County Sheriff’s Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Seven International Cyber Defendants, Including “Apt41” Actors, Charged in Connection with Computer Intrusion Campaigns Against More Than 100 Victims GloballyRead the Press Release
In August 2019 and August 2020, a federal grand jury in Washington, D.C., returned two separate indictments charging five computer hackers, all of whom were residents and nationals of the People’s Republic of China (PRC), with computer intrusions affecting over 100 victim companies in the United States and abroad, including software development companies, computer hardware manufacturers, telecommunications providers, social media companies, video game companies, non-profit organizations, universities, think tanks, and foreign governments, as well as pro-democracy politicians and activists in Hong Kong.
The intrusions, which security researchers have tracked using the threat labels “APT41,” “Barium,” “Winnti,” “Wicked Panda,” and “Wicked Spider,” facilitated the theft of source code, software code signing certificates, customer account data, and valuable business information. These intrusions also facilitated the defendants’ other criminal schemes, including ransomware and “crypto-jacking” schemes, the latter of which refers to the group’s unauthorized use of victim computers to “mine” cryptocurrency.
Also in August 2020, the same federal grand jury returned a third indictment charging two Malaysian businessmen who conspired with two of the Chinese hackers to profit from computer intrusions targeting the video game industry in the United States and abroad. Shortly thereafter, the U.S. District Court for the District of Columbia issued arrest warrants for the two businessmen. On Sept. 14, 2020, pursuant to a provisional arrest request from the United States with a view to their extradition, Malaysian authorities arrested them in Sitiawan. The department appreciates the significant cooperation and assistance provided by the Government of Malaysia, including the Attorney General’s Chambers of Malaysia and the Royal Malaysia Police.
In addition to arrest warrants for all of the charged defendants, in September 2020, the U.S. District Court for the District of Columbia issued seizure warrants that resulted in the recent seizure of hundreds of accounts, servers, domain names, and command-and-control (C2”) “dead drop” web pages used by the defendants to conduct their computer intrusion offenses. The FBI executed the warrants in coordination with other actions by several private-sector companies, which included disabling numerous accounts for violations of the companies’ terms of service. In addition, in partnership with the department, Microsoft developed and implemented technical measures to block this threat actor from accessing victims’ computer systems. The actions by Microsoft were a significant part of the overall effort to deny the defendants continued access to hacking infrastructure, tools, accounts, and command and control domain names. In coordination with today’s announcement, the FBI has also released a Liaison Alert System (FLASH) report that contains critical, relevant technical information collected by the FBI for use by specific private-sector partners.
“The department of Justice has used every tool available to disrupt the illegal computer intrusions and cyberattacks by these Chinese citizens,” said Deputy Attorney General Jeffrey A. Rosen. “Regrettably, the Chinese communist party has chosen a different path of making China safe for cybercriminals so long as they attack computers outside China and steal intellectual property helpful to China.”
“Today’s charges, the related arrests, seizures of malware and other infrastructure used to conduct intrusions, and coordinated private sector protective actions reveal yet again the department’s determination to use all of the tools at its disposal and to collaborate with the private sector and nations who support the rule of law in cyberspace,” said Assistant Attorney General John C. Demers. “This is the only way to neutralize malicious nation state cyber activity.”
“Today’s announcement demonstrates the ramifications faced by the hackers in China but it is also a reminder to those who continue to deploy malicious cyber tactics that we will utilize every tool we have to administer justice,” said FBI Deputy Director David Bowdich. “The arrests in Malaysia are a direct result of partnership, cooperation and collaboration. As the cyber threat continues to evolve larger than any one agency can address, the FBI remains committed to being an indispensable partner to our federal, international and private sector partners to stop rampant cyber crime and hold those carrying out these kind of actions accountable.”
“The scope and sophistication of the crimes in these unsealed indictments is unprecedented. The alleged criminal scheme used actors in China and Malaysia to illegally hack, intrude and steal information from victims worldwide,” said Michael R. Sherwin, Acting U.S. Attorney for the District of Columbia. “As set forth in the charging documents, some of these criminal actors believed their association with the PRC provided them free license to hack and steal across the globe. This scheme also contained a new and troubling cyber-criminal component – the targeting and utilization of gaming platforms to both defraud video game companies and launder illicit proceeds.”
“The actions announced today reflect a years-long commitment by the FBI Washington Field Office to pursue the perpetrators of the computer intrusion campaigns described in the indictments, and to bring those perpetrators to justice,” said Acting Assistant Director in Charge James A. Dawson, FBI Washington Field Office. “This case demonstrates the FBI’s dedication to pursuing these criminals no matter where they are, and to whom they may be connected.”
The August 2019 indictment charged Zhang Haoran (张浩然), 35, and Tan Dailin (谭戴林), 35, with 25 counts of conspiracy, wire fraud, aggravated identity theft, money laundering, and violations of the Computer Fraud and Abuse Act (“CFAA”). The indictment charged Zhang and Tan with participating in a “Computer Hacking Conspiracy,” which targeted high-technology and similar organizations. The indictment also charged that, as an additional way to make money, Zhang and Tan participated in a “Video Game Conspiracy,” through which Zhang and Tan, together with others, sought to make money by hacking video game companies, obtaining and otherwise generating digital items of value (e.g., video game currency), and then selling such items for profit. In several instances, they used their unauthorized access to gaming company networks take action against other unrelated groups engaged in the same fraudulent generation of gaming artifacts, thereby attempting to eliminate the criminal competition.
One of the August 2020, indictments charged Jiang Lizhi (蒋立志), 35, Qian Chuan (钱川), 39, and Fu Qiang (付强), 37, with nine counts of racketeering conspiracy, conspiracy to violate the CFAA, substantive violations of the CFAA, access device fraud, identity theft, aggravated identity theft, and money laundering. The racketeering conspiracy pertained to the three defendants’ conducting the affairs of Chengdu 404 Network Technology (“Chengdu 404”), a PRC company, through a pattern of racketeering activity involving computer intrusion offenses affecting over 100 victim companies, organizations, and individuals in the United States and around the world, including in Australia, Brazil, Chile, Hong Kong, India, Indonesia, Japan, Malaysia, Pakistan, Singapore, South Korea, Taiwan, Thailand, and Vietnam. The defendants also compromised foreign government computer networks in India and Vietnam, and targeted, but did not compromise, government computer networks in the United Kingdom. In one notable instance, the defendants conducted a ransomware attack on the network of a non-profit organization dedicated to combating global poverty.
The defendants associated with Chengdu 404 employed sophisticated hacking techniques to gain and maintain access to victim computer networks. One example was the defendants’ use of “supply chain attacks,” in which the hackers compromised software providers and then modified the providers’ code to facilitate further intrusions against the software providers’ customers. Another example was the hackers’ use of C2 “dead drops,” which are seemingly legitimate web pages that the hackers created, but which were surreptitiously encoded instructions to their malware. However, they also employed publicly available exploits and tools, including the following common vulnerabilities and exposures (“CVE”): CVE-2019-19781, CVE-2019-11510, CVE-2019-16920, CVE-2019-16278, CVE-2019-1652/CVE-2019-1653, and CVE-2020-10189.
The second August 2020 indictment charged Wong Ong Hua, 46, and Ling Yang Ching, 32, both Malaysian nationals and residents, with 23 counts of racketeering, conspiracy, identity theft, aggravated identity theft, access device fraud, money laundering, violations of the CFAA, and falsely registering domain names. The indictment alleged that Wong and Ling conducted the affairs of Sea Gamer Mall, a Malaysian company founded by Wong, through a pattern of racketeering activity involving computer intrusion offenses targeting the video game industry in the United States, France, Japan, Singapore, and South Korea. The indictment alleged that Wong and Ling worked with various hackers, including Zhang and Tan, to profit from the hackers’ criminal computer intrusions at video game companies.
The indictment against Zhang and Tan charges the defendants with two counts of conspiracy to commit computer fraud, which carries a maximum sentence of five years in prison; two counts of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; five counts of wire fraud, which carries a maximum sentence of 20 years in prison; nine counts of intentional damage to a protected computer, which carries a maximum sentence of 10 years in prison; four counts of unauthorized access to a protected computer, which carries a maximum sentence of five years in prison; two counts of aggravated identity theft, which carries a mandatory sentence of two years in prison; and one count of money laundering, which carries a maximum sentence of 20 years in prison.
The indictment against Jiang, Qian, and Fu charges the defendants with one count of racketeering conspiracy, which carries a maximum sentence of 20 years in prison; one count of conspiracy to commit computer fraud, which carries a maximum sentence of five years in prison; one count of intentional damage to a protected computer, which carries a maximum sentence of 10 years in prison; one count of unauthorized access to a protected computer, which carries a maximum sentence of five years in prison; one count of threatening to damage a protected computer, which carries a maximum sentence of five years in prison; one count of access device fraud, which carries a maximum sentence of 10 years in prison; one count of identity theft, which carries a maximum sentence of five years in prison; one count of aggravated identity theft, which carries a mandatory sentence of two years in prison; and one count of money laundering, which carries a maximum sentence of 20 years in prison.
The indictment against Wong and Ling charges the defendants with one count of racketeering conspiracy, which carries a maximum sentence of 20 years in prison; one count of racketeering, which carries a maximum sentence of 20 years in prison; three counts of intentional damage to a protected computer, which carries a maximum sentence of 10 years in prison; five counts of unauthorized access to a protected computer, which carries a maximum sentence of five years in prison; five counts of furthering fraud by unauthorized access to a protected computer, which carries a maximum sentence of five years in prison; two counts of access device fraud, which carries a maximum sentence of 10 years in prison; two counts of identity theft, which carries a maximum sentence of five years in prison; one count of aggravated identity theft, which carries a mandatory sentence of two years in prison; and three counts of money laundering, which carries a maximum sentence of 20 years in prison. The indictment also alleges false registration of domain names, which would increase the maximum sentence of imprisonment for money laundering to 27 years; the maximum sentence of imprisonment for unlawful access to a protected computer to 10 years instead of five years; the maximum sentence of imprisonment for intentional damage to a protected computer to 17 years instead of 10 years; and the mandatory sentence of imprisonment for aggravated identity theft to four years instead of two years.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only; any sentencing's of the defendants will be determined by the assigned judge.
The investigation was conducted jointly by the U.S. Attorney’s Office for the District of Columbia, the National Security Division of the Department of Justice, and the FBI’s Washington Field Office. The FBI’s Cyber Division assisted in the investigation and, along with FBI’s Cyber Assistant Legal Attachés and Legal Attachés in countries around the world, provided essential support. Numerous victims cooperated and provided valuable assistance in the investigation.
The department is also grateful to Microsoft, including Microsoft’s Threat Intelligence Center (MSTIC) and Digital Crimes Unit (DCU), to Google, including its Threat Analysis Group (TAG), to Facebook, and to Verizon Media, including its Paranoids Advanced Cyber Threats Team, for the assistance they provided in this investigation.
Assistant U.S. Attorney Demian Ahn of the District of Columbia, Assistant U.S. Attorney Tejpal Chawla of the District of Columbia, and Trial Attorney Evan Turgeon of the National Security Division’s Counterintelligence and Export Control Section are prosecuting this case.
The Justice Department’s Office of International Affairs provided critical assistance.
The details contained in the charging document are allegations. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Senior Veterans Affairs Official in Philadelphia Indicted for Soliciting BribesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Ralph Johnson, 54, of Kinzers, PA, former Chief of Environmental Management Services at the Corporal Michael J. Cresenz Veterans Affairs Medical Center (VAMC) in Philadelphia, PA, was charged by Indictment for soliciting and accepting bribes in connection with contracts and purchase orders at the medical center.
As the Chief of Environmental Management Services, Johnson was responsible for a range of sanitation, waste removal, linen and uniform services for the Philadelphia VAMC, and participated in the solicitation and award of contracts to vendors for those services. According to the Indictment, Johnson is charged with asking for, and receiving, thousands of dollars in cash from two Florida-based companies in return for steering purchase orders and contracts to those companies several times from about July 2018 until August 2019. He is also charged with seeking a $10,000 kickback on an $84,000 contract for tree trimming and removal awarded to one of those vendors, for which Johnson had fraudulently and grossly inflated the estimate of the work to be done and the price for that work under the contract.
“The allegations here are shameful. By giving us their best, we owe our veterans the same in return. As a senior official tasked with maintaining a healthy and safe environment for the care and treatment of our nation’s veterans, Ralph Johnson had a responsibility to do that job with honesty and integrity,” said U.S. Attorney McSwain. “Rather than being concerned about serving our veterans, Johnson was allegedly concerned with serving himself by lining his own pockets at taxpayers’ expense.”
David Spilker, Special Agent in Charge at the Veterans Affairs Office of Inspector General (OIG) stated, “VA OIG will vigorously investigate alleged instances when government employees solicit and accept bribes and kickbacks from vendors and contractors who seek to obtain business with the VA. As alleged in the indictment, Johnson’s actions breached the public’s trust, undermined the integrity of VA’s operations, and besmirched the vital work that honest hardworking VA employees do every day in support of our nation’s veterans.”
If convicted, the defendant faces a possible sentence of 45 years imprisonment, 3 years supervised release, and up to a $750,000 fine.
The case was investigated by the United States Department of Veteran Affairs, Office of Inspector General, and is being prosecuted by Assistant United States Attorney K.T. Newton.
Seneca County Man Indicted for Defrauding the Coast GuardRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Dennis Daniels, 69, of Romulus, NY, with two counts of mail fraud. The charges carry a maximum of penalty of 20 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that according to the indictment, in January and February 2019, the defendant taught an approved U.S. Coast Guard (USCG) course for an Operator Uninspected Passenger Vessel license, with a Masters upgrade. Once obtained, this license allows the individual to operate an uninspected vessel of up to six passengers, such as a fishing charter, and an inspected vessel with more than six passengers, such as a ferry.
Throughout the course, Daniels was required to teach for 80 hours, however, he only taught for 51 hours, and engaged in conduct not in compliance with USCG regulations. After reviewing the defendant's records, it was determined that all 24 students in the course failed a chart-plotting test, and four of the students also failed the maritime rules of the road test. Students are required successfully to pass those tests in order to obtain a course completion certificate, a prerequisite to applying for a Merchant Marine Credential issued by the USCG. Despite failing the tests, Daniels issued course completion certificates to his students.
The indictment is the result of an investigation by the U.S. Coast Guard Investigative Service, under the direction of Buffalo, NY, Resident Agent-in-Charge Cindy C. Buckley, and Detroit, MI, Resident Agent-in-Charge Edward L. Songer; the United States Postal Inspection Service, under the direction of Inspector-in-Charge Joseph W. Cronin of the Boston Division; and the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larsen, Special Agent-in-Charge, New York Field Office.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Scranton Doctor Indicted for Receiving Healthcare Kickbacks and Unlawfully Distributing Controlled Substances Resulting in Two DeathsRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced the indictment yesterday of a Scranton doctor, Kurt Moran, age 68, on charges related to receiving healthcare kickbacks and unlawfully distributing controlled substances, including distributions resulting in death. Moran is scheduled to appear before United States Magistrate Judge Karoline Mehalchick at 3:00pm on September 16, 2020.
According to United States Attorney David J. Freed, the 423-count indictment alleges that beginning in December 2014 and continuing into 2017, Moran conspired with others to pay and receive bribes in exchange for prescribing the drug Subsys (sublingual fentanyl) to his patients. Subsys is a transmucosal immediate release fentanyl (TIRF) drug. It is approved by the Food and Drug Administration (FDA) only for use in cancer patients suffering from breakthrough cancer pain. It is alleged that Moran was paid approximately $140,000 over a two year period to prescribe Subsys to his patients for pain not associated with cancer. In order to conceal and disguise that kickbacks and bribes were being paid to Moran to prescribe Subsys, Insys falsely designated the payments to Moran as “honoraria” for purportedly providing educational presentations regarding Subsys.
Moran is also charged with multiple counts of unlawfully distributing Subsys to 13 patients and two counts of unlawfully prescribing Schedule II controlled substances, including oxycodone and fentanyl, which resulted in the death of a 35 year old man and a 32 year old woman.
The indictment alleges that Moran contracted with Insys Therapeutics, Inc. in 2014 to participate in the Insys Speaker Program (ISP), which was used as a vehicle to pay doctors and other clinicians to prescribe Subsys off-label. In fact, the ISP was used as a way to funnel money to doctors like Moran under the guise of an “honorarium” appearing to be legitimate. In reality, many of the speaker programs were merely social gatherings at high-end restaurants with no educational presentation whatsoever. Most also lacked an appropriate audience of peer-level doctors with a professional reason to be educated about Subsys. Moran allegedly was selected by Insys to participate in the sham speaker program because he consistently ranked as one of the top prescribers of opioid medications in Pennsylvania, including fentanyl. Moran allegedly was paid as an Insys speaker as long as he continued to prescribe Subsys and the more prescriptions written by Moran for Subsys – and the higher the dose – the more speaking opportunities were awarded to him and the more money he made. It is further alleged that Moran prescribed millions of micrograms of the sublingual fentanyl spray to patients with no cancer diagnosis and not suffering from breakthrough cancer pain. The indictment charges hundreds of counts of unlawful distribution of Subsys by Moran.
The indictment includes multiple counts of health care fraud related to the payment of claims by Medicare, FEHBP, and other private insurers who paid for the Subsys prescriptions. It is alleged that had these health care benefit programs known that Moran was prescribing Subsys in exchange for a kickback and outside the usual course of professional practice, the claims would not have been paid by the insurers.
The indictment seeks to forfeit to the United States any and all proceeds derived from unlawful activity as a result of the offenses alleged in the indictment, including U.S. currency and the forfeiture of Moran’s medical license as facilitating property.
United States Attorney Freed stated, “this defendant, an experienced and substantial dispenser of powerful pain medications, lined his own pockets to the detriment of his patients. He accepted bribes and kickbacks for prescribing medication narrowly approved to treat only cancer patients suffering breakthrough cancer pain. He then concealed and disguised the payments he received for prescribing that drug as compensation for providing educational presentations. In addition, but no less important, Moran improperly prescribed powerful schedule II controlled substances resulting in two deaths. While physicians are properly given great leeway under the law to treat their patients, we are compelled to intervene when their fraudulent and criminal actions cause harm to others. We are grateful for the thorough investigative work of our federal agency partners.”
“Dr. Moran was responsible for the criminal distribution of oxycodone and sublingual fentanyl, both of which are extremely powerful and dangerous prescription opioid painkillers. Moran’s unlawful prescribing ultimately resulted in the death of two people.” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Doctors have a legal and ethical obligation to prescribe these medications only for legitimate medical purposes and to do no harm to their patients. The kickbacks that Dr. Moran received for being one of the highest prescribers of sublingual fentanyl in Pennsylvania showed his utter disregard for these same obligations.”
“An important mission of the Office of Inspector General is to investigate allegations of fraud related to the U.S. Department of Labor’s (DOL) Office of Workers’ Compensation Programs (OWCP). We will continue to work with our law enforcement partners and OWCP to protect the integrity of DOL’s benefit programs,” said Derek Pickle, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.
U.S. Postal Service Office of Inspector General Special Agent in Charge Kenneth Cleevely, Eastern Area Field Office stated, “the U.S. Postal Service spends billions of dollars per year in workers compensation-related costs, most of which are legitimate. However, when medical providers choose to flout the rules and profit illegally, special agents with the USPS OIG will work with our law enforcement partners to hold them responsible. To report fraud or other criminal activity involving the Postal Service, contact our special agents at www.uspsoig.govor 888-USPS-OIG.”
The charges stem from an investigation initiated in 2016 by the Drug Enforcement Administration (DEA) located in Scranton, the United States Postal Service – Office of Inspector General, Department of Labor – Office of Inspector General, U.S. Office of Personnel Management – Office of Inspector General (OPM/OIG) and the Pennsylvania Attorney General’s Office. Prosecution is assigned to Assistant United States Attorneys Michelle Olshefski and Michael Consiglio.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute for the unlawful distribution of controlled substances resulting in death is life imprisonment. The unlawful distribution of controlled substances charges carry a maximum term of 20 years’ imprisonment. The charges related to receiving health care kickbacks carry a maximum sentence of 10 years’ imprisonment. Each charge also carries a fine and a term of supervised release following any period of incarceration. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Sarasota Pain Doctor and Former Insys Sales Representative Charged in Health Care Fraud Kickback ConspiracyRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of a 16-count indictment charging Steven Chun (57, Sarasota) and Daniel Tondre (50, Tampa) with conspiring to pay and receiving kickbacks in connection with prescribing a fentanyl spray. Chun is also charged with five counts of soliciting and receiving kickbacks in the form of speaker fees; Tondre is charged with five counts of offering and paying the speaker fees to Chun when he worked as an Insys sales representative; and Chun and Tondre are both charged in five counts of identification fraud in connection with the speaker events. If convicted on all counts, Chun and Tondre each face a maximum penalty of 5 years in federal prison on the conspiracy count, up to 5 years’ imprisonment on each identification fraud count, and up to 10 years in prison for each substantive kickback violation. The indictment also notifies the defendants that the United States is seeking a money judgment in the amount of the proceeds of the alleged kickbacks.
According to the
indictment , Chun, a doctor, owned and operated a pain management medical practice in Sarasota where he prescribed a large volume of Schedule II opioids, including fentanyl. Tondre was employed as a sales representative for Insys Therapeutics, Inc., a company that manufactured and sold Subsys, an expensive form of liquid fentanyl designed to be applied under the tongue (sublingual spray), allowing it to rapidly enter the bloodstream. Insys sales representatives were compensated, in part, with sales commissions based upon paid prescriptions of Subsys written by practitioners in their sales territory. Tondre’s territory included Chun’s practice.Insys actively marketed Subsys to pain management doctors, including Chun, to increase the number of Subsys prescriptions written by Chun. Through the Insys sales division and executives at the company’s headquarters, Insys used a sham speaker program to conceal and disguise kickbacks and bribes paid to high-prescribing doctors, like Chun, to induce them to prescribe Subsys. Insys sales representatives, like Tondre, arranged speaker programs that were often only attended by family and friends, or repeat attendees, and included falsified or forged signatures of attendees. Insys also bribed large Subsys-prescribers, like Chun, by hiring individuals, often close to the doctors, to work as an Insys liaison to facilitate the approval of insurance forms for Subsys, including those submitted for Medicare patients. Chun was paid more than $275,000 in illegal kickbacks and bribes from Insys in connection with the sham speaker programs.
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.
This case was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services—Office of Inspector General, the Defense Criminal Investigative Service, and by the Opioid Fraud Abuse and Detection Unit at the United States Attorney’s Office, which focuses on opioid-related fraud and abuse by medical and health care professionals who have contributed to the prescription opioid epidemic. It will be prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Russian Nationals Indicted for Conspiracy to Defraud Multiple Cryptocurrency Exchanges and Their CustomersRead the Press Release
SAN FRANCISCO – A federal grand jury indicted Russian nationals Danil Potekhin a/k/a cronuswar and Dmitrii Karasavidi a/k/a Dmitriy Karasvidi, charging them with a wide range of crimes in connection with an alleged conspiracy to defraud three cryptocurrency exchanges and their customers of cryptocurrency valued at the time of the theft and manipulation at a minimum of $16.8 million in cryptocurrency, announced United States Attorney David L. Anderson and U.S. Secret Service Criminal Investigative Division Special Agent in Charge David Smith. In addition, the United States Attorney filed documents seeking the civil and criminal forfeiture of assets traceable to the alleged crimes. Further information about the announcement can be found here: https://youtu.be/RGAIsqmixdg.
The Superseding Indictment, filed February 18, 2020, was unsealed earlier today. According to the Superseding Indictment, Potekhin, of Voronezh, Russia, created numerous web domains that mimicked those of legitimate virtual currency exchanges. This tactic used a combination of “phishing” and “spoofing” to exploit Internet users’ trust in known companies and organizations to fraudulently obtain their login credentials, including email addresses, password information, and other personal information. When unwitting customers accessed the fraudulent websites and entered their login information, Potekhin and his co-conspirators stole the victims’ credentials and gained access to their cryptocurrency accounts, from which they stole funds or which they used to manipulate cryptocurrency markets for their own gain.
“My warning to internet fraudsters is that we will prosecute internet frauds against U.S. citizens regardless of where those frauds originate,” said U.S. Attorney Anderson. “My warning to the public is that digital currency exchanges are not like banks. The security of digital currency exchanges is only as good as your own vigilance. While law enforcement will do everything within our power to protect you, you must also protect yourself.”
“Since its inception in 1865 to combat U.S. currency counterfeiting, the Secret Service has remained committed to safeguarding the Nation’s financial infrastructure,” said Special Agent in Charge Smith. “The Secret Service mission has evolved to combat cyber fraud by tracing and seizing fraudulently obtained virtual currencies. These recent actions highlight the efforts of law enforcement to provide attribution to cybercriminals wherever they may reside.”
The Superseding Indictment describes similar attacks perpetrated against the customers of three cryptocurrency platforms, two of which are based in the United States, and one based abroad. Victims of the attacks are alleged to have included people residing in the Northern District of California.
The Superseding Indictment describes a number of complex fraud schemes used by the defendants and their co-conspirators to maximize the value of the cryptocurrency that they stole from the customers of these digital currency exchanges. The first fraud scheme, referred to as a theft attack in the Superseding Indictment, was a scheme to steal digital currency from as many users of a U.S.-based digital currency exchange as possible in a short amount of time. Beginning in July 2017, Potekhin created and controlled at least 13 separate fake domains for this digital currency exchange. Using the fake domains, the defendants induced more than 150 victim customers of the exchange to input their user identification and passwords. Potekhin and Karasavidi, of Moscow, also created multiple fictitious accounts with the same digital currency exchange, and used stolen information from at least three individuals from the United Kingdom to create three of those accounts. The defendants then used the stolen credentials from the victim customers to access the victims’ accounts in August 2017 and withdraw digital currency without authorization. By linking the fictitious accounts to the accounts of victim customers, the defendants were able to withdraw larger sums of digital currency from victim accounts without authorization.
The Superseding Indictment further describes a sophisticated market manipulation scheme that began in July 2017 using the stolen customer credentials of the same U.S.-based digital currency exchange and culminated in a manipulation attack that targeted three victim customers. The defendants first created a number of fictitious accounts on the same platform and each account purchased an inexpensive digital currency known as GAS prior to the manipulation. Then, on October 29, 2017, the defendants took control of the three victim customer accounts and used the digital currency contained in those accounts, with a value of over $5 million at that time, to purchased GAS at the same time, which increased demand and price. The defendants and their co-conspirators then quickly converted the digital currency in their fictitious accounts from GAS to Bitcoin and other digital currencies, causing the value of GAS to plummet and leaving the value of GAS that remained in the victim customer accounts worthless, causing a loss to these three victims of approximately $5 million.
The Superseding Indictment also alleges similar fraud schemes that took place between October 2017 and March 2018, and which resulted in theft attacks targeting victim customers of another U.S.-based digital currency exchange and one based abroad. The value of the stolen digital currency at the time of the thefts was over $11 million.
The Superseding Indictment alleges the defendants laundered the proceeds of the attacks and attempted to conceal the nature and source of the digital currency by transferring them in a layered and sophisticated manner through multiple accounts. Ultimately, a significant amount of the stolen digital currency was deposited into Karasavidi’s account.
In sum, Potekhin and Karasavidi have been charged with conspiracy to commit computer fraud and abuse, in violation of 18 U.S.C. § 1030(b); computer fraud, in violation of 18 U.S.C. § 1030(a)(4); conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349; money laundering conspiracy, in violation of 18 U.S.C. § 1956(h); and two counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1).
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. The defendants remain at large. If convicted, the defendants face the following maximum statutory penalties:
Charge
Statute
Maximum Penalties
Conspiracy to Commit Computer Fraud and Abuse
18 U.S.C. § 1030(b)
(1) 10 years’ imprisonment; (2) Maximum of 3 years of
supervised release;
(3) $250,000 fine or twice the gross gain or twice the gross
Loss
Unauthorized Access to a Protected
Computer To Obtain Value
18 U.S.C. §§ 1030(a)(4) and (c)(3)(A)
(1) 5 years’ imprisonment;
(2) Maximum of 3 years of
supervised release;
(3) $250,000 fine or twice the gross gain or twice the gross
Loss
Conspiracy to Commit Wire Fraud
18 U.S.C. § 1349
(1) 20 years’ imprisonment; (2) Maximum of 3 years of
supervised release;
(3) $250,000 fine or twice the gross gain or twice the gross
loss
Conspiracy to Commit Money Laundering
18 U.S.C. § 1956(h)
(1) 20 years’ imprisonment; (2) Maximum of 3 years of
supervised release;
(3) $250,000 fine or twice the gross gain or twice the gross
Loss
Aggravated Identity Theft
(2 counts)
18 U.S.C. § 1028A(a)(1)
Each count:
(1) 2 years’ imprisonment (to run consecutive to any other
term imposed);
(2) Maximum of 3 years of supervised release;
(3) $250,000 fine
or twice the gross gain or twice the gross loss
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 U.S. Attorney also filed an action for forfeiture of millions of dollars of virtual currency that allegedly are traceable to the defendants’ crimes. According to the forfeiture complaint, law enforcement has seized, and the U.S. Secret Service currently is in custody of, over $6 million in U.S. dollars, and several million in digital currency, the value of which changes based on the market.
In addition to the criminal charges, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) announced it has issued sanctions against the two Russian nationals. The Treasury Department’s announcement can be viewed here: https://home.treasury.gov/news/press-releases/sm1123.
The prosecution and civil forfeiture actions are being handled by the Special Prosecutions Section and the Asset Forfeiture Unit of the Office of the U.S. Attorney for the Northern District of California. The prosecution is the result of an investigation by the U.S. Secret Service San Francisco Field Office. The Justice Department’s Office of International Affairs and the Dutch National High Tech Crime Unit provided investigative assistance.
Rochester Man Pleads Guilty to Sex Trafficking Minors for MoneyRead 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 Quondall Davis, 26, of Rochester, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to sex trafficking of a minor. The charge carries a minimum penalty of 10 years in prison and a maximum of life in prison.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that between April 2017 and July 2018, the defendant, a/k/a Hotdog, recruited Minor Victim 1 and Minor Victim 2 to engage in commercial sex acts. Davis posted ads on “Cityxguide.com,” to entice customers to engage in commercial sex acts with the minor victims. Cityxguide.com is a website providing classified advertising across the United States and internationally. Minor Victim 1 and Minor Victim 2 each engaged in commercial sex acts and gave a portion of the profits the defendant. Davis knew that both victims were under the age of 18.
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 November 18, 2020, at 10:00 a.m. before Judge Siragusa.
# # # #
Rochester Felon Pleads Guilty to Possessing A Firearm and AmmunitionRead 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 Charles Mobley, 25, of Rochester, NY, pleaded guilty before U.S. District Judge David G. Larimer to being a felon in possession of a firearm and ammunition. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Cassie M. Kocher, who is handling the case, stated that in the early evening hours of May 23, 2020, Rochester Police Officers responded to the area of 31 Lenox Street for a report of male with a gun. As officers approached the area, they observed defendant grab his waistband and run. Officers gave chase but momentarily lost sight of the defendant in the backyard of 81 Lenox Street. Mobley was ultimately located in a nearby garage on Lenox Street. Other officers searched the defendant’s path and located a loaded semiautomatic pistol with an obliterated serial number.
In October 2014, Mobley was convicted in Monroe County Court of Criminal Possession of a Weapon in the Second Degree and sentenced to 42 months in jail. As a result of that conviction, the defendant is legally prohibited from possession a firearm and ammunition.
The case was brought by the U.S. Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Acting Chief Mark Simmons, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
Sentencing is scheduled for December 2, 2020, at 2:00 p.m. before Judge Larimer.
# # # #
Revised - Death Resulting Charges Filed in Waterford Homicide CaseRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that a federal grand jury returned a 19-Count Fourth Superseding Indictment yesterday charging Krystal Whitcomb, 28, formerly of Waterford, VT, Michael Hayes a.k.a. Moe, 38, formerly of Washington, DC, and John Welch, 34, formerly of Woodsville, NH, with using and carrying a firearm during and in relation to a drug trafficking crime, during which Whitcomb, Hayes and Welch caused the death of Michael Pimental by murder. Whitcomb, Hayes and Welch were also charged with discharging a firearm during and in relation to a drug trafficking crime and conspiracy to use and carry a firearm during a drug trafficking crime. Two new defendants were added to the indictment: Michael Ashford, 31, of Ryegate, VT, who is charged in a cocaine conspiracy with Hayes and Welch; and a sealed defendant who is charged as an accessory after the fact along with Hayes. The defendants will be arraigned on the indictment before U.S. Magistrate Judge John M. Conroy at a date to be scheduled in the future.
According to court documents and proceedings, on October 14, 2018, the body of Michael Pimental was found along the side of the road in Concord, VT. Pimental had been shot and his death has been ruled a homicide. Pimental was the boyfriend of Krystal Whitcomb and investigation revealed that Whitcomb and Pimental had been distributing heroin out of their residence in Waterford, VT. Michael Hayes, Michael Ashford and John Welch, all acquaintances of Whitcomb’s, were also involved in the sale of drugs. In and around the weekend of October 12, 2018, Whitcomb, Hayes and Welch planned the homicide of Pimental and on October 13, 2018, John Welch shot Pimental in connection with a drug trafficking crime. On October 14, 2018, Whitcomb and Hayes were stopped in New Hampshire in a Cadillac registered to Pimental. A search of the vehicle recovered firearms, and a large quantity of drugs and U.S. currency. Pimental’s blood was also found in the trunk of the car.
In February 2019, John Welch offered to sell a firearm to a person in NH. Shortly thereafter, law enforcement found Welch along the side of the road in Bath, NH, attempting to dig in the ground with a shovel. Because it was February and the ground was frozen, law enforcement was not able to search the area where Welch had been digging. However, in June 2019, law enforcement returned to the same location where Welch had been digging and ultimately found a backpack containing a firearm believed to be the murder weapon.
The death resulting charge, 18 U.S.C. § 924(j), is punishable either by death or up to life imprisonment. The government has notified the court and the parties that the government will not seek the death penalty against the defendants. On the death resulting charge, Whitcomb, Hayes and Welch therefore each face a possible life sentence and up to a $250,000 fine.Whitcomb, Hayes and Welch also face a mandatory minimum sentence of 10 years, a maximum of life, and up to a $250,000 fine on the charge of discharging a firearm during and in relation to a drug trafficking crime. On the cocaine conspiracy charge, Ashford faces a mandatory minimum sentence of 5 years, a maximum sentence of 40 years, and up to a $5,000,000 fine. The accessory after the fact charge carries a maximum of 15 years in prison and up to a $250,000 fine. The actual sentences would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. The United States Attorney emphasizes that the charges in the indictment are merely accusations, and that the defendant is presumed innocent unless and until he is proven guilty.
This case was investigated by the Vermont State Police Major Crime Unit, the Department of Homeland Security Investigations, the New Hampshire State Police, the Bath New Hampshire Police Department and the Grafton County Sheriff’s Department.
“Today’s indictment is the result of a longstanding and successful collaboration between state and federal law enforcement,” said Maj. Dan Trudeau, commander of the Vermont State Police Criminal Division. “The Vermont State Police would like to thank all the investigators for their tireless work on this case.” U.S. Attorney Christina Nolan stated: “The grand jury indictment is the product of a relentless focus by law enforcement on combatting violent crime and the strong partnerships amongst Vermont law enforcement at all levels.”
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
The United States is represented in this matter by Assistant U.S. Attorneys Wendy L. Fuller and John J. Boscia. Krystal Whitcomb is represented by Michael Straub, Esq. Michael Hayes a.k.a. Moe is represented by Tom Sherrer, Esq. John Welch is represented by Robert S. Behrens, Esq. Michael Ashford is represented by Gordon Gebauer, Esq.
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.
Portland Man Charged in June 26, 2020 Arson at Portland Police Bureau North PrecinctRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that Gavaughn Gaquez Streeter-Hillerich, 22, has been charged by criminal complaint with two counts of using fire to maliciously damage and attempt to damage a building housing the Portland Police Bureau’s North Precinct and various private businesses on June 26, 2020.
According to court documents, in the early morning hours of June 26, 2020, a group of demonstrators were present near the Portland Police Bureau’s North Precinct on NE Emerson Street in Portland. The precinct is located in a city-owned building containing multiple private businesses. Streeter-Hillerich was seen in video footage intentionally setting a large dumpster on fire near the building’s northwest exterior corner. The fire was set on top of the dumpster, which had been pushed up against plywood affixed to the building to protect windows and prevent break-ins. Officers used fire extinguishers to try and extinguish the fire before firefighters arrived.
The fire caused damage to the building and, were it allowed to spread, would have threatened the safety of 15 police personnel and four individuals in custody inside the building. Video evidence of the fire submitted by a private citizen led investigators to identify Streeter-Hillerich and bring charges in this case.
Streeter-Hillerich was arrested by the U.S. Marshals Service in Vancouver, Washington on September 15, 2020. He made his first appearance in federal court today before a U.S. Magistrate Judge and was ordered released pending further court proceedings. Arson is punishable by up to 20 years in prison with a mandatory minimum sentence of 5 years.
This case is being jointly investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the FBI with assistance from the U.S. Marshals Service. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Criminal complaints are only accusations of a crime, and a defendant is presumed innocent unless and until proven guilty.
To help identify actors who are actively instigating violence in the city of Portland, the FBI is accepting tips and digital media depicting violent encounters during demonstrations. If you have witnessed unlawful violent actions, we urge you to submit any information, photos, or videos that could be relevant to investigations at fbi.gov/PDviolence. You may also call 1-800-CALL-FBI (800-225-5324) to verbally report tips.
Photograph depicting a tire being placed on top of the ignited dumpster, with a red circle around a tattoo on Streeter-Hillerich’s right-inner forearm.
Photograph depicting Streeter-Hillerich with a red circle around a tattoo on the right-inner forearm.
Photograph depicting Streeter-Hillerich attempting to ignite a fire on a dumpster pushed against the plywood affixed to the Portland Police Bureau’s North Precinct.
Photograph depicting the fire as it burned and the crowd, including Streeter-Hillerich, surrounding it.Park City Man Charged with Scheme to Sell N95 Masks, Claimed to Be Representative of 3M CompanyRead the Press Release
SALT LAKE CITY – A Park City man, who claimed to have access to millions of N95 masks made by 3M and made allegedly fraudulent representations in an effort to sell them, is charged with wire fraud in an indictment unsealed Tuesday in Salt Lake City.
John Anthony Taylor, 46, did not have the masks, was not an authorized representative of 3M, and attempted to sell the masks to an undercover FBI agent, charging documents allege.
“Rooting out pandemic-related fraud is one the highest priorities for the Department of Justice and my office. Experienced investigators and prosecutors are dedicated to holding accountable those who would use this challenging environment to pad their own pockets,” U.S. Attorney John W. Huber said today.
Taylor is the founder and owner of Positive Marketing, LLC and Wasatch Promotional Products, LLC. 3M Company is Delaware Corporation with its principal place of business in St. Paul, Minn. 3M sells a wide range of products, including N95 masks.
According to documents filed in court as a part of the case, in April 2020, the FBI in Houston, Texas, was contacted by an attorney representing a medical company concerned about an entity purporting to have access to one billion 3M N95 masks. At the time, publicly available information indicated the global production numbers of N95 masks was well below a billion a month.
The FBI opened an investigation that ultimately resulted in an introduction to Taylor in Utah. According to charging documents, an undercover agent made contact with Taylor and asked for documents proving Taylor actually had the masks. Taylor sent an email with a fake purchase order from 3M. 3M has confirmed it has no relationship with Taylor.
According to the indictment, Taylor made a variety of other alleged false representations as a part of his scheme including:
- He was a representative for the 3M company and was authorized to sell its 1860 N95 masks
- Because of the COVID-19 pandemic, he had recently started to focus on selling masks through his business, Wasatch Promotional Products
- He had contracts for “a million, 30 million, 60 million [masks] for a couple different state governments”
- He had completed several shipments of 3M 8210 masks
- He could broker a deal for 3 million 1860 N95 masks for $5.49 per mask
- He would receive “lot numbers” and show “proof of life” to prove that the order was legitimate
- He had successfully brokered deals with 3M previously
- A purchase order he attached to an email was from 3M
Taylor was initially arrested on a complaint and had an initial appearance in federal court in Salt Lake City on May 4, 2020. He was released on special conditions of supervised release. He was arraigned on the indictment Tuesday and entered a plea of not guilty to the wire fraud charge. A three-day trial is set for Nov. 23, 2020, before U.S. District Judge David Sam.The potential maximum penalty for the charge in the indictment is 20 years in federal prison. Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office in Salt Lake City are prosecuting the case. Special agents of the FBI in Houston, with the assistance of the FBI in Salt Lake City, are conducting the investigation.Owner of Long Island Diner Pleads Guilty to Not Paying Employment TaxRead the Press Release
A diner owner pleaded guilty today to failing to pay employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents and statements made in court, Nikolaos Avgoustidis, the owner and operator of the Rocky Point Town House Diner, did not pay employment taxes for all of the diner’s employees. From 2011 to 2013, Avgoustidis paid certain employees in cash, without reporting it to the IRS, and further, without paying the social security and Medicare taxes that must be withheld from the employees’ wages. In total, Avgoustidis caused a tax loss to the IRS of approximately $130,000.
U.S. District Judge Gary R. Brown scheduled the sentencing for Jan. 15, 2021. At sentencing, Avgoustidis faces a maximum sentence of 5 years. He also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Sean Green and Mark Kotila of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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 Northern District of Indiana. While not a designated Legend district, the U.S. Attorney’s Office for the Northern District of Indiana works closely with the U.S. Attorney’s Office for the Northern District of Illinois, which encompasses Chicago. Operation Legend launched in Chicago on July 22, 2020, in response to the city facing increased homicide and non-fatal shooting rates. Similarly, Legend was also launched in the Southern District of Indiana, which includes Indianapolis, on Aug. 14, 2020.
United States vs. Darryl Ivery Jr.
“This case demonstrates my office’s commitment to partnering with our neighbors in Chicago to aggressively prosecute those who illegally supply guns to criminals in Indiana and Illinois,” said Thomas L. Kirsch II, U.S. Attorney for the Northern District of Indiana. “My office is committed to reducing gun violence, and the state line will not save criminals from federal investigations and prosecutions.”
Darryl Ivery Jr. was charged on Aug. 26, 2020, with making a material false statement in the acquisition of a firearm.
According to the charging document, during the course of an ATF investigation into straw purchasers, i.e. individuals who lie on ATF Form 4473 about their status as legal purchasers of firearms, Darry Ivery Jr. became a person of interest based on a large number of firearms he had purchased, some of which had been recovered by law enforcement.
It is alleged that between Jan. 7, 2019, and Aug. 10, 2020, Ivery purchased a minimum of 26 firearms from Federal Firearm Licensed (FFL) gun dealers in Indiana. Seven of the guns he purchased have been recovered by various law enforcement agencies, including six that were recovered in Chicago, Illinois, one of which was recovered at the scene of a shooting.
For each of the guns Ivery purchased, he answered, “Yes” on ATF Form 4473: “Are you the actual transferee/buyer of the firearm(s) listed on this form?”
When interviewed by ATF Special Agents, it is alleged that Ivery admitted that with the exception of one of the firearms that he purchased, all of the others were bought for individuals who resided in Chicago who asked him to buy firearms for them. They all paid Ivery in cash for every purchase he made.
Ivery purchased the following firearms:
01/07/2019
S & W
SD9VE
9mm
02/18/2020
Jimenez
IA
.380
02/18/2020
SCCY
CPX-1
9mm
03/03/2020
Jimenez
JA
9mm
03/03/2020
S & W
SD40
40
03/13/2020
Glock
27
40
03/13/2020
Glock
er
40
03/31/2020
S & W
M&P
40
04/19/2020
Glock
26
9mm
04/30/2020
Glock
43
9mm
04/30/2020
05/13/2020
Glock Century Arms
22
Micro Draco
40
7.62x.39
06/06/2020
Glock
17
9mm
06/10/2020
Glock
22
40
06/10/2020
Glock
48
9mm
06/10/2020
S & W
SD9VE
9mm
06/19/2020
Taurus
PT111 G2
9mm
06/19/2020
Taurus
PT111 G2
9mm
06/19/2020
HS Produkt
XD45
.45
07/06/2020
Glock
30
.45
07/07/2020
Glock
43x
9mm
07/13/2020
FN
509T
9mm
07/23/2020
Shadow
MR920
SSCO11797
07/23/2020
Springfield
XDM
.45
08/10/2020
Ruger
57
5.7x.28
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.
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. The Department of Homeland Security is also contributing agents to these efforts in St. Louis.
Office on Violence Against Women Announces New Grants to Combat Domestic Violence in VermontRead the Press Release
Burlington, Vermont – The Justice Department’s Office on Violence Against Women (OVW) announced today that it will direct over $6 million in grant funding to Vermont victims service organizations to curb domestic violence. These awards are part of a larger portfolio of new grants designed to help law enforcement, victim services providers, and prosecutors identify and assist victims at high risk for being killed by an abusive partner.
Christina Nolan, United States Attorney for the District of Vermont, noted: “As hard as my office works – and will continue to work – to prevent violent offenders from causing harm and death, we know that victims need more than justice in court to recover and move forward. The OVW grants to victim services groups in Vermont will help identify victims, support their recovery, and give them the chance at living the rest of their lives free from abuse.” A pamphlet summarizing federal crimes that could potentially be charged against domestic violence offenders can be found at www.justice.gov/usao-vt/page/file/1204336/download.
Each year, a significant number of Vermont’s homicides occur in the domestic violence context – nearly half in recent years. And, according to data maintained by the FBI, across the country, over 1,500 women were murdered by a current or former intimate partner in a recent year. “Identifying victims who face a heightened risk of being killed by their husbands or boyfriends—and putting effective measures in place to keep them safe and stop their abusers—is something all justice and victim services professionals want to do. But training and proven strategies are key,” said OVW Principal Deputy Director Laura Rogers. “For that reason, we are building on our prior investments in domestic violence homicide reduction, and doing what we can to help communities in Vermont and across the country implement ways of spotting victims in grave danger and holding offenders accountable.”
OVW’s current and forthcoming investments in Vermont foster coordinated responses, making available resources for investigation and prosecution, transitional housing, and other services for victims. For example, a new National Domestic Violence Homicide Prevention Training and Technical Assistance Resource Center, funded through a grant to the New York-based Center for Court Innovation, will provide training to jurisdictions including the City of St. Albans, in Vermont, which has also received a $704,555 award to craft and implement a homicide reduction strategy and other crime response strategies in partnership with the victim service provider Voices Against Violence.
Included in the over $6 million in awards that will be issued to organizations and government agencies in Vermont are:
• $243,619 to the Vermont Network against Domestic and Sexual Violence to coordinate victim services and collaborate with federal, state, and local entities on addressing violence against women.• $450,000 to the Pride Center of Vermont to develop and implement strategies targeted at adult or youth victims in underserved populations, and to provide victim services to meet the needs of such populations.
• $549,922 to Champlain Valley Office of Economic Opportunity, Inc., in Burlington, and its collaborative partners, Vermont Legal Aid, Deaf Vermonters Advocacy Services, and Franklin and Grand Isle Superior Court, to provide legal assistance, supervised visitation in cases involving domestic violence, and training for community partners on serving deaf/hard of hearing victims.
• $485,000 to WomenSafe, Inc., in Middlebury; $465,000 to Project Against Violent Encounters, in Bennington; and $351,255 to Steps to End Domestic Violence, Inc., in Burlington, to provide transitional housing and related services to victims and their children.
• $439,754 to Umbrella, in St. Johnsbury, to provide services to children and youth who are victims of, or are otherwise exposed to, domestic and sexual violence, including support for their non-abusing parents and caretakers.
• $391,870 to Have Justice Will Travel, in Vershire, to help identify and provide services to victims in rural communities, prevent and raise awareness in rural areas, and provide legal services to victims in Bennington and Rutland counties.
• $1,308,392 in formula grant funds to the Vermont Center for Crime Victim Services to assist rape crisis centers and other organizations that provide services to sexual assault victims and to promote partnerships and collaboration amongst law enforcement, prosecutors, the court system, and victim services providers; and $749,985 to the Center to identify and support victims in rural communities.
WomenSafe, Inc., an organization whose work OVW is proud to support again this year, recently reported to OVW that grant funds afford survivors “a safety net, and a window of time to make and achieve financial goals for themselves, including finding employment and enrolling in training programs or other job readiness or educational pursuits, while still being housed quickly. This can result in shorter periods of homelessness.” OVW, recognizing that safe housing is vital to helping victims get back on their feet, redoubles its commitment to supporting such efforts in Vermont with this 2020 grants package.
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 Northern District of Indiana. While not a designated Legend district, the U.S. Attorney’s Office for the Northern District of Indiana works closely with the U.S. Attorney’s Office for the Northern District of Illinois, which encompasses Chicago. Operation Legend launched in Chicago on July 22, 2020, in response to the city facing increased homicide and non-fatal shooting rates. Similarly, Legend was also launched in the Southern District of Indiana, which includes Indianapolis, on Aug. 14, 2020.
United States vs. Darryl Ivery Jr.
“This case demonstrates my office’s commitment to partnering with our neighbors in Chicago to aggressively prosecute those who illegally supply guns to criminals in Indiana and Illinois,” said Thomas L. Kirsch II, U.S. Attorney for the Northern District of Indiana. “My office is committed to reducing gun violence, and the state line will not save criminals from federal investigations and prosecutions.”
Darryl Ivery Jr. was charged on Aug. 26, 2020, with making a material false statement in the acquisition of a firearm.
According to the charging document, during the course of an ATF investigation into straw purchasers, i.e. individuals who lie on ATF Form 4473 about their status as legal purchasers of firearms, Darry Ivery Jr. became a person of interest based on a large number of firearms he had purchased, some of which had been recovered by law enforcement.
It is alleged that between Jan. 7, 2019, and Aug. 10, 2020, Ivery purchased a minimum of 26 firearms from Federal Firearm Licensed (FFL) gun dealers in Indiana. Seven of the guns he purchased have been recovered by various law enforcement agencies, including six that were recovered in Chicago, Illinois, one of which was recovered at the scene of a shooting.
For each of the guns Ivery purchased, he answered, “Yes” on ATF Form 4473: “Are you the actual transferee/buyer of the firearm(s) listed on this form?”
When interviewed by ATF Special Agents, it is alleged that Ivery admitted that with the exception of one of the firearms that he purchased, all of the others were bought for individuals who resided in Chicago who asked him to buy firearms for them. They all paid Ivery in cash for every purchase he made.
Ivery purchased the following firearms:
01/07/2019
S & W
SD9VE
9mm
02/18/2020
Jimenez
IA
.380
02/18/2020
SCCY
CPX-1
9mm
03/03/2020
Jimenez
JA
9mm
03/03/2020
S & W
SD40
40
03/13/2020
Glock
27
40
03/13/2020
Glock
er
40
03/31/2020
S & W
M&P
40
04/19/2020
Glock
26
9mm
04/30/2020
Glock
43
9mm
04/30/2020
05/13/2020
Glock Century Arms
22
Micro Draco
40
7.62x.39
06/06/2020
Glock
17
9mm
06/10/2020
Glock
22
40
06/10/2020
Glock
48
9mm
06/10/2020
S & W
SD9VE
9mm
06/19/2020
Taurus
PT111 G2
9mm
06/19/2020
Taurus
PT111 G2
9mm
06/19/2020
HS Produkt
XD45
.45
07/06/2020
Glock
30
.45
07/07/2020
Glock
43x
9mm
07/13/2020
FN
509T
9mm
07/23/2020
Shadow
MR920
SSCO11797
07/23/2020
Springfield
XDM
.45
08/10/2020
Ruger
57
5.7x.28
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.
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. The Department of Homeland Security is also contributing agents to these efforts in St. Louis.
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Nigerian National Convicted After Six-Day Federal Trial for a Money Laundering Conspiracy Related to a Romance Scam and Other Fraud SchemesRead the Press Release
Greenbelt, Maryland – A federal jury in Maryland yesterday convicted Nigerian national Seun Banjo Ojedokun, age 37, for a money laundering conspiracy related to a romance scam and other fraud schemes.
The conviction was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
U.S. Attorney Robert K. Hur stated, “This defendant was part of a conspiracy that stole from many vulnerable and elderly victims across the United States, defrauding them through lies and laundering the funds internationally. The deceit used to steal from these victims was heartless, considering how vulnerable and financially devastated they were. Ojedokun was in Nigeria when he was committing these crimes. Law enforcement was able to arrest him when he came to the United States to attend school here. The U.S. Attorney’s Office and our law enforcement partners are committed to bringing to justice fraudsters who prey upon the elderly. We will continue our outreach efforts to make the public aware of scams and frauds targeting elderly victims and encourage anyone who believes they may be a victim to contact the newly launched Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311).”
“These targeted scams are all to prevalent and the FBI, along with our law enforcement partners, are diligently working to alert and protect the public from falling victim,” said Jennifer C. Boone, Special Agent in Charge of the FBI Baltimore Field Office. “The arrest and conviction of Mr. Ojedokun, who was operating in Nigeria during the conspiracy, demonstrates the lengths that the FBI will go in order to hold accountable the people who commit these heinous crimes.”
According to the evidence presented at his six-day trial, between 2013 and March 2015, Ojedokun conspired with Gbenga Benson Ogundele, Mukhtar Danjuma Haruna, a/k/a “Mukky,” and others to use money deposited into bank accounts by fraud victims to engage in financial transactions in order to promote the fraud scheme and conceal the nature, location, source, ownership, and control of the fraud proceeds.
According to evidence presented at trial, members of the conspiracy searched online dating websites to initiate romantic relationships with vulnerable men and women. They phoned, e-mailed, texted and used Internet chat messenger services to form romantic relationships with the victims, who lived throughout the United States.
Specifically, witnesses testified that members of the conspiracy used false stories and promises to convince the many victims to provide money to the conspirators, including fake hospital bills, plane trips to visit the victims, problems with overseas businesses, and foreign taxes. Ogundele and other conspirators opened bank accounts, called “drop accounts,” in order to receive millions of dollars from the victims. Testimony at trial showed that victims provided money to the conspirators as a result of the false stories and promises, either depositing money directly into drop accounts controlled by the conspirators, or by checks sent to the conspirators. The loss to the eight victims who testified at trial was well over $1 million and the overall total loss was substantially higher.
In addition, the evidence at trial showed that the conspirators engaged in other types of fraud, including a fraudulent employment scam in which the victim was led to believe she had been hired by a company, and was instructed to deposit the proceeds of a fraudulent check into a drop account controlled by the conspirators.
According to the evidence, Ojedokun, Ogundele, Haruna, and their co-conspirators laundered money received from the fraud victims by buying used cars and shipping them to Nigeria, among other methods. As part of the fraud schemes, Ojedokun and his co-conspirators transmitted and used images of financial transactions, including bank deposit receipts and wire transfer forms, as proof that a deposit of fraud money had been made by a victim.
Ogundele, age 61, formerly of Laurel, Maryland, was convicted in 2016 after a 17-day trial, of conspiracies to commit money laundering and wire fraud, as well as aggravated identity theft, and was sentenced to 234 months in federal prison. Haruna, age 46, of Nigeria, remains a fugitive and charges against him are still pending. In addition to Ogundele, eight other defendants were convicted for their roles in the fraud scheme and were sentenced to between a year and a day and 234 months in federal prison.
Ojedokun faces a maximum sentence of 20 years in federal prison for conspiracy to commit money laundering. 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. U.S. District Judge Paul W. Grimm has scheduled sentencing for January 20, 2021 at 10:00 a.m.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Assistant U.S. Attorney Thomas P. Windom and U.S. Attorney Robert K. Hur represented the United States at trial.
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New York State Lobbyist Pleads Guilty to Theft of Government MoneyRead 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 Robert Scott Gaddy, 50, of Albany, NY, a lobbyist registered with the State of New York, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to theft of government money. The charge carries carry a maximum penalty of one year in prison and a $100,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that the defendant owns and operates the lobbying firm Excelsior Advocates, LLC. On September 8, 2017, an individual known to the FBI approached Gaddy about paying a bribe to a member of the New York State Assembly (Member A) in order to introduce certain legislation concerning a proposed development project in the Town of Brighton. That legislation would have had the effect of impeding the proposed project and making it more difficult to proceed. On September 26, 2017, the defendant took receipt of cash from the individual, with the understanding that it would be used to bribe Member A and induce Member A to introduce the proposed legislation.
Subsequently, Gaddy recommended to the individual that rather than having Member A introduce the proposed legislation, another member of the New York State Assembly—Joseph Errigo—would be used to do it. Gaddy then facilitated the introduction of the individual to Assemblyman Errigo. The defendant was aware that the individual began making bribe payments to Assemblyman Errigo for the purpose of introducing the proposed legislation. Thereafter, Gaddy transmitted the proposed legislation concerning the development project in the Town of Brighton to Assemblyman Errigo.
On February 9, 2018, in connection with facilitating the proposed legislation, Gaddy stated to the individual and Assemblyman Errigo that he (Gaddy) had also “greased the skids” with Member A. In truth and in fact, the defendant did not pay the intended bribe to Member A as represented, but wrongfully converted the money to his own personal benefit.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
Sentencing is scheduled for December 11, 2020, at 1:00 p.m. before Judge Wolford.
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Morris County Couple Admit Roles in Filing False Tax ReturnsRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, couple who owned and operated construction businesses in Morris County admitted their roles in filing false tax returns that failed to report all their personal income, U.S. Attorney Craig Carpenito announced.
Roger Magill, 50, of Wharton, the owner and operator of Reliable Construction, a/k/a Reliable Paving and Hackensack Pavers, a/k/a Hackensack Paving – collectively, the Magill entities – pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with three counts of tax evasion. His wife, Ruby Magill, 50, of Wharton, pleaded guilty before Judge Wigenton to an information charging her with one count of misprision of felony.
According to documents filed in this case and statements made in court:
Roger Magill admitted that, between 2014 and 2016, he owned the Magill entities that operated in Morris County, New Jersey. Roger Magill admitted to obtaining hundreds of thousands of dollars in personal income from the Magill entities and attempted to hide his personal income from the IRS by using a fictitious identity to cash business checks at several check cashing businesses. Roger Magill admitted that he evaded paying $261,758 in personal income taxes. Ruby Magill admitted that she purposefully facilitated Roger Magill’s tax evasion scheme by allowing him to deposit his hidden income into business bank accounts that she operated and controlled.
The charges to which Roger Magill pleaded guilty carry a maximum potential penalty of five years in prison and a $250,000 fine. The charge to which Ruby Magill pleaded guilty carries a maximum potential penalty of three years in prison and a $250,000 fine. Sentencings are scheduled for Jan. 20, 2021.
U.S. Attorney Carpenito credited agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Jamel Semper, Chief of the Organized Crime and Gangs Unit in Newark.
Montana Broker Sentenced to Prison for Multimillion-Dollar Investment-Fraud SchemeRead the Press Release
A Montana man was sentenced to 87 months in prison Tuesday for his role in a multimillion-dollar international investment-fraud conspiracy.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office made the announcement.
Sean Finn, 51, of Whitefish, Montana, was sentenced by U.S. District Judge Kent J. Dawson of the District of Nevada. Judge Dawson also ordered Finn to pay $6,075,000 in restitution and to forfeit $830,000. On Feb. 4, 2020, after a one-week trial, Finn was convicted by a jury of one count of conspiracy to commit securities fraud and wire fraud, four counts of wire fraud, and four counts of securities fraud. He was acquitted of one count of wire fraud.
According to the evidence presented at trial, Finn conspired with others in the United States and Switzerland to promote investments and loan instruments that he knew to be fictitious. Finn and his co-conspirators told victims that, for an up-front payment ranging from $100,000 to $1 million, a Swiss company known as Malom Group AG (Malom), whose name stood for “Make A Lot Of Money,” would provide access to lucrative investment opportunities and substantial cash loans.
The evidence showed that to effectuate this scheme, the defendant and his co-conspirators provided victims with fabricated bank documents purporting to show that Malom held hundreds of millions of dollars in overseas bank accounts, as well as documents falsely stating that Malom had previously closed similar deals. The evidence showed that when victims wired their money into an escrow account controlled by the co-conspirators, the money was released and disbursed to, among others, Finn for his own personal use. The evidence further showed that shortly before he was indicted in 2013, Finn fled to Canada, where he was arrested in 2014 and ultimately extradited back to the United States in 2018. According to the evidence presented at trial, losses to the victims from the scheme totaled more than $3.8 million.
Finn was charged together with five other defendants. Two of these defendants, Anthony Brandel and James Warras, were found guilty of conspiracy and multiple counts of wire fraud and securities fraud following a jury trial in 2015. Brandel and Warras were each sentenced on Aug. 3, 2016 to 87 months in prison, followed by three years of supervised release. A third defendant, Joseph Micelli, pleaded guilty to conspiracy to commit wire fraud and securities fraud in 2015 and was sentenced on Feb. 23, 2016 to 60 months in prison, followed by three years of supervised release. The other two defendants, Martin Schlaepfer and Hans-Jurg Lips, remain at large outside the United States. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Las Vegas Field Office investigated the case. Assistant Deputy Chief Anna G. Kaminska and Trial Attorney Blake C. Goebel of the Criminal Division’s Fraud Section prosecuted the case with assistance from the Justice Department’s Office of International Affairs and the U.S. Attorney’s Office for the District of Nevada. Deputy Chief Brian Young of the Fraud Section previously handled the prosecution. The Securities and Exchange Commission’s Enforcement Division, which conducted a parallel civil-enforcement investigation, as well as the Royal Canadian Mounted Police, also provided valuable assistance.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Minnesota Man Charged with Providing Material Support to ISISRead the Press Release
Assistant Attorney General for National Security John C. Demers and U.S. Attorney Erica H. MacDonald for the District of Minnesota today announced that Abdelhamid Al-Madioum, 23, of St. Louis Park, Minnesota, has been charged by indictment with providing material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Al-Madioum was detained overseas by the Syrian Democratic Forces (SDF) and recently transferred into FBI custody. Al-Madioum was returned to Minnesota where he made his initial appearance before Magistrate Judge Elizabeth Cowan Wright in U.S. District Court in Minneapolis, Minnesota.
According to the allegations in the indictment and a law enforcement affidavit, from July 8, 2015, through March 15, 2019, Al-Madioum knowingly provided material support and resources, including personnel (namely himself) and services to ISIS. On June 23, 2015, Al-Madioum, a native of Morocco and naturalized U.S. citizen, and his family traveled from St. Louis Park, Minnesota, to Casablanca, Morocco, to visit their extended family. On July 8, 2015, Al-Madioum left Morocco and traveled to Istanbul, Turkey, and then on to Iraq and Syria, where he joined ISIS. In March of 2019, Al-Madioum was captured and detained by the SDF.
This case is the result of an investigation conducted by the FBI’s Joint Terrorism Task Force.
Assistant U.S. Attorney Andrew R. Winter and Trial Attorneys Danielle S. Rosborough and David Cora of the National Security Division’s Counterterrorism Section are prosecuting the case.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent until proven guilty.
Minnesota Man Charged with Providing Material Support to ISISRead the Press Release
WASHINGTON - Assistant Attorney General for National Security John C. Demers and U.S. Attorney Erica H. MacDonald for the District of Minnesota today announced that ABDELHAMID AL-MADIOUM, 23, of St. Louis Park, Minnesota, has been charged by indictment with providing material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
AL-MADIOUM was detained overseas by the Syrian Democratic Forces (SDF) and recently transferred into FBI custody. AL-MADIOUM was returned to Minnesota where he made his initial appearance before Magistrate Judge Elizabeth Cowan Wright in U.S. District Court in Minneapolis, Minnesota.
According to the allegations in the indictment and a law enforcement affidavit, from July 8, 2015, through March 15, 2019, AL-MADIOUM knowingly provided material support and resources, including personnel (namely himself) and services to ISIS. On June 23, 2015, AL-MADIOUM, a native of Morocco and naturalized U.S. citizen, and his family traveled from St. Louis Park, Minnesota, to Casablanca, Morocco, to visit their extended family. On July 8, 2015, AL-MADIOUM left Morocco and traveled to Istanbul, Turkey, and then on to Iraq and Syria, where he joined ISIS. In March of 2019, AL-MADIOUM was captured and detained by the SDF.
This case is the result of an investigation conducted by the FBI’s Joint Terrorism Task Force.
Assistant U.S. Attorney Andrew R. Winter and Trial Attorneys Danielle S. Rosborough and David Cora of the National Security Division’s Counterterrorism Section are prosecuting the case.
Defendant Information:
ABDELHAMID AL-MADIOUM, 23
St. Louis Park, Minn.
Charges:
- Providing material support to a designated foreign terrorist organization (ISIS), 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Menands Man Sentenced to 8 Years for Child Pornography OffensesRead the Press Release
ALBANY, NEW YORK – Kenneth J. Monahan, age 45, of Menands, New York, was sentenced on Monday to serve 96 months in prison for distributing, receiving 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).
As part of his guilty plea, Monahan admitted to using peer-to-peer software to distribute numerous images of child pornography in February and April 2018. He also admitted to downloading child pornography from the Internet from 2017 through April 2018 and to possessing over 1,300 images of child pornography in May 2018.
Senior United States Judge Thomas J. McAvoy also imposed a 20-year term of supervised release, which will start after Monahan is released from prison, ordered a $400 special assessment, and ordered restitution in the total amount of $19,500 to be divided among certain child victims depicted in the images and videos that Monahan distributed, received and possessed. As a result of his conviction, Monahan will be required to register as a sex offender.
This case was investigated by the FBI with assistance from the New York State Police, and was prosecuted by Assistant U.S. Attorney Alicia G. Suarez.
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 Attorneys’ 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/.
Member of New Bedford Latin Kings Chapter Pleads Guilty to Racketeering Conspiracy ChargesRead the Press Release
BOSTON – A former member of the New Bedford Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to racketeering charges. The defendant admitted to participating in a June 2019 shooting of another Latin Kings member who was in bad standing with the gang.
Shelton Johnson, a/k/a “King Shellz,” 31, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Jan. 6, 2021. Johnson was arrested and charged in December 2019, at which time he a member of the New Bedford Chapter of the Latin Kings.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
Johnson admitted that he conspired with other Latin Kings members and leaders and participated in a June 2019 shooting of a Latin Kings member who was in bad standing with the gang. Johnson also admitted to participating in a beating of members of the Latin Kings who had violated the rules of the gang.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Johnson is the fifteenth defendant to plead guilty in the case.
The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard and Mark Grady of Lelling’s Criminal Division are prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Maryland Man Charged with Arson in Federal Court for Igniting Police Cars on Fire Outside of the United States Supreme CourtRead the Press Release
WASHINGTON – Cody Michael Tarner, 23, of Hagerstown, Maryland, was indicted by a federal grand jury with multiple offenses related to his burning of two police cars and the attempted burning of a third police vehicle, announced Michael R. Sherwin, Acting U.S. Attorney for the District of Columbia and Matthew R. Alcoke, Special Agent in Charge of the Federal Bureau of Investigation (FBI) Washington Field Office Counterterrorism Division
On September 8, Tarner was indicted for Arson and Destruction of Government Property. On August 17, 2020, the Honorable Judge G. Michael Harvey held Tarner without bond pending trial.
The indictment stems from an incident on July 15, 2020, when Tarner poured a liquid from a gas can onto three Supreme Court Police vehicles igniting two of the vehicles. This also resulted in Tarner being engulfed in flames and suffering severe burns to himself. A Supreme Court Police Officer immediately rendered first aid to Tarner. Tarner was subsequently hospitalized and was brought to court for his initial appearance on August 13, 2020, when he was released from the hospital. Of the three police vehicles, one was completely burned, one was damaged, and the third did not catch fire.
An indictment is a formal finding by a grand jury that there is probable cause that the defendant committed the stated crimes; it is not evidence of guilt. A defendant is presumed innocent unless proven guilty.
“The actions taken by this individual destroyed federal property and were heinous and could have resulted in the loss of lives,” said Acting United States Attorney Michael R. Sherwin. “In addition, members of law enforcement were targeted and this type of action will never be acceptable as our office will continue to prosecute crimes such as this to the fullest extent of the law.”
“The attempted destruction of federal property will not be tolerated,” said Matthew R. Alcoke, Special Agent in Charge of the Washington Field Office’s Counterterrorism Division. “The FBI is committed to quickly responding with our partners at The Supreme Court Police, U.S. Capitol Police, and other members of the Joint Terrorism Task Force to diminish any potential risk to the public and government facilities in these situations.”
In announcing the charges, Acting U.S. Attorney Sherwin and Special Agent in Charge Dawson commended the work of those who investigated the case, including FBI, Supreme Court Police, as well as the United States Capitol Police, who provided valuable assistance. This case is being investigated by the Violent Crime and Narcotics Trafficking Section of the U.S. Attorney’s Office for the District of Columbia.
Magna Man Charged with Alleged Threat to Federal Officer Arrested in Magna Tuesday MorningRead the Press Release
SALT LAKE CITY – A Magna, Utah, man is charged with threatening to assault and murder a Department of Veterans Affairs police officer while he was engaged in the performance of his official duties and with intent to retaliate against the officer on account of the performance of his official duties. The officer’s teenage daughter found the threat in the victim’s mail box on June 7, 2020.
Ryan David Lucero, 33, is charged with one count of influencing a federal officer by threat in an indictment unsealed Wednesday morning. He was arrested Tuesday at a home in Magna. The FBI, U.S. Postal Inspectors, U.S. Marshals Service and the Unified Police Department (UPD) executed the arrest warrant.
“Police officers and their families make great sacrifices to keep our communities safe. They have the right to live safely in their own homes, as we all do, and should not have to endure the threat that has been alleged in this indictment. We will bring to justice those who harm or threaten law enforcement officers in violation of federal law,” U.S. Attorney John W. Huber said today.
The alleged threat to the officer came about a week after a May 30, 2020, riot in Salt Lake City destroyed a police vehicle, injured police officers, and damaged the Salt Lake City Police Department building. Prior to the Salt Lake City riot, the victim in this case wore his VA uniform to and from work. He retired from the UPD two years ago and parked his UPD patrol car in his drive way for many years.
The potential penalty for the charge in the indictment is 10 years in prison.
An initial appearance for Lucero has been set for Friday at 2:30 p.m. before U.S. Magistrate Judge Cecilia M. Romero. Based on current information, federal prosecutors will be seeking detention for Lucero based on a risk of flight. The victim and his family are also concerned about their safety if the defendant is released.
In a filing outlining the United States’ position regarding detention, prosecutors are asking the magistrate judge to consider the defendant’s use of aliases or false documents in previous situations. In one instance, the defendant provided a false name and date of birth to law enforcement to avoid detection of multiple arrest warrants. He has also failed to appear for court proceedings on several occasions in the Salt Lake valley.
An indictment is not a finding of guilt. Individuals charged in an indictment are presumed innocent unless or until proven guilty in court.
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office are prosecuting the case. It is being investigated by inspectors with the U.S. Postal Inspection Service and special agents of the FBI.
MS-13 Member Sentenced to More Than 17 Years in Federal Prison for Participating in a Racketeering Conspiracy, Including Two Attempted MurdersRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar today sentenced MS-13 gang member Danny Hernandez Solarzano, a/k/a Titre, age 22, of Montgomery County, Maryland, to 210 months in federal prison, followed by five years of supervised release for conspiracy to participate in a racketeering enterprise, in connection with his gang activities, including two attempted murders and drug distribution.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore Office; Acting Chief Patrick Grossman of the Frederick City Police Department; Frederick County State’s Attorney J. Charles Smith, III; Chief William Lowry of the Anne Arundel County Police Department; Anne Arundel County State’s Attorney Anne Colt Leitess; Interim Chief Hector Velez of the Prince George’s County Police Department; Prince George’s County State’s Attorney Aisha N. Braveboy; Chief Marcus Jones of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
“The U.S. Attorney’s Office in Maryland and our local and state partners are committed to keeping our communities safe from the violent threat of MS-13,” said U.S. Attorney Robert K. Hur. “We continue to work with our counterparts here and abroad to prevent gang violence and bring to justice those who bring danger to our streets. We need the continued help of members of our communities in order to carry on our work against MS-13.”
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Frederick County, Anne Arundel County, Prince George’s County, and Montgomery County, Maryland. Hernandez Solarzano admitted that from January 2016 through 2018, he was a member and associate of the Fulton Locotes Salvatrucha (FLS) clique of MS-13.
At all times of this conspiracy, members of MS-13 were expected to protect the name, reputation, and status of the gang from rival gang members and other persons. To protect the gang and to enhance its reputation, MS-13 members were expected to use any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence. MS-13 had mottos consistent with its rules, beliefs, expectations and reputation including “mata, viola, controla,” which translates as, “kill, rape, control,” and “ver, oir y callar,” which means, “see nothing, hear nothing and say nothing.”
MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang, as well as against rival gang members. Participation in criminal activity by a member, particularly in violent acts directed at rival gangs or as directed by gang leadership, increase the respect accorded to that member, resulting in that member maintaining or increasing his position in the gang, and opens the door to a promotion to a leadership position. One of the principal rules of MS-13 is that its members must attack and kill rivals, often referred to as “chavalas,” whenever possible.
According to his plea agreement, during the time of his membership in the FLS clique, Hernandez Solarzano and other FLS members distributed marijuana on behalf of MS-13 in Maryland and FLS members and associates also extorted money from legitimate and illegitimate businesses that operated in the gang’s perceived “territory.” Hernandez Solarzano regularly sold marijuana in and around Wheaton and Langley Park in order to maintain and increase his position in MS-13.
As detailed in his plea agreement, in December 2016, Hernandez Solarzano and other MS-13 members and associates planned and conspired to murder two individuals whom they believed to be rival gang members. Specifically, Hernandez Solarzano and two other FLS members traveled to Aspen Hill in Montgomery County, Maryland to find rival gang members, locating two individuals sitting in a parked car. Believing the two individuals in the car were rival gang members, the group contacted a fourth FLS member to provide them with a handgun. The fourth FLS member brought them the firearm and Hernandez Solarzano took possession of the handgun. Hernandez Solarzano then walked up to the car and fired into the vehicle at close range, striking both individuals. The victims both survived, but suffered serious physical injuries. All of this was done to maintain and increase Hernandez Solarzano’s position in the gang.
A total of 30 defendants have been charged in this case with participating in a racketeering conspiracy and/or other crimes related to their association with MS-13. A total of 19 defendants, including Hernandez Solarzano, have pleaded guilty to crimes related to their participation in MS-13 gang activities.
Anyone with information about MS-13 is encouraged to provide their tips to law enforcement. The FBI and Homeland Security Investigations both have nationwide tiplines that you can call to report what you know. You can reach the FBI at 1-866-STP-MS13 (1-866-787-6713), or you can call HSI at 1-866-DHS-2-ICE.
United States Attorney Robert K. Hur commended the FBI; HSI; the Frederick City Police Department; the Anne Arundel, Montgomery, and Prince George’s County Police Departments; and the Anne Arundel, Frederick, Montgomery, and Prince George’s County State’s Attorneys for their work in the investigation, and recognized the Baltimore County Police Department for its assistance. Mr. Hur thanked Assistant U.S. Attorneys Kenneth S. Clark and Matthew DellaBetta, and Catherine K. Dick, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Montana Broker Sentenced to Prison for Multimillion-Dollar Investment-Fraud SchemeRead the Press Release
WASHINGTON – A Montana man was sentenced to 87 months in prison Tuesday for his role in a multimillion-dollar international investment-fraud conspiracy.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office made the announcement.
Sean Finn, 51, of Whitefish, Montana, was sentenced by U.S. District Judge Kent J. Dawson of the District of Nevada. Judge Dawson also ordered Finn to pay $6,075,000 in restitution and to forfeit $830,000. On Feb. 4, 2020, after a one-week trial, Finn was convicted by a jury of one count of conspiracy to commit securities fraud and wire fraud, four counts of wire fraud, and four counts of securities fraud. He was acquitted of one count of wire fraud.
According to the evidence presented at trial, Finn conspired with others in the United States and Switzerland to promote investments and loan instruments that he knew to be fictitious. Finn and his co-conspirators told victims that, for an up-front payment ranging from $100,000 to $1 million, a Swiss company known as Malom Group AG (Malom), whose name stood for “Make A Lot Of Money,” would provide access to lucrative investment opportunities and substantial cash loans.
The evidence showed that to effectuate this scheme, the defendant and his co-conspirators provided victims with fabricated bank documents purporting to show that Malom held hundreds of millions of dollars in overseas bank accounts, as well as documents falsely stating that Malom had previously closed similar deals. The evidence showed that when victims wired their money into an escrow account controlled by the co-conspirators, the money was released and disbursed to, among others, Finn for his own personal use. The evidence further showed that shortly before he was indicted in 2013, Finn fled to Canada, where he was arrested in 2014 and ultimately extradited back to the United States in 2018. According to the evidence presented at trial, losses to the victims from the scheme totaled more than $3.8 million.
Finn was charged together with five other defendants. Two of these defendants, Anthony Brandel and James Warras, were found guilty of conspiracy and multiple counts of wire fraud and securities fraud following a jury trial in 2015. Brandel and Warras were each sentenced on Aug. 3, 2016 to 87 months in prison, followed by three years of supervised release. A third defendant, Joseph Micelli, pleaded guilty to conspiracy to commit wire fraud and securities fraud in 2015 and was sentenced on Feb. 23, 2016 to 60 months in prison, followed by three years of supervised release. The other two defendants, Martin Schlaepfer and Hans-Jurg Lips, remain at large outside the United States. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Las Vegas Field Office investigated the case. Assistant Deputy Chief Anna G. Kaminska and Trial Attorney Blake C. Goebel of the Criminal Division’s Fraud Section prosecuted the case with assistance from the Justice Department’s Office of International Affairs and the U.S. Attorney’s Office for the District of Nevada. Deputy Chief Brian Young of the Fraud Section previously handled the prosecution. The Securities and Exchange Commission’s Enforcement Division, which conducted a parallel civil-enforcement investigation, as well as the Royal Canadian Mounted Police, also provided valuable assistance.
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Luray Man Sentenced for Role in Methamphetamine ConspiracyRead the Press Release
HARRISONBURG, Va. – Casey Harvey, a Luray, Va. Man who conspired with others to traffic large quantities of methamphetamine from Oklahoma into the Western District of Virginia for redistribution, was sentenced yesterday in U.S. District Court in Harrisonburg to 66 months in federal prison. Acting United States Attorney Daniel P. Bubar and Jesse Fong, Special Agent in Charge of the Drug Enforcement Administration’s Washington Field Division announced the sentence today.
Harvey, 30, pleaded guilty in May 2019 to conspiracy to distribute methamphetamine. Co-conspirator Bryan Lee Estep was sentenced in August 2020 to 78 months in prison.
According to court documents, from December 2017 to August 2018, Harvey conspired with Estep to traffic methamphetamine from Oklahoma into the Western District of Virginia. As part of the conspiracy, Harvey introduced Estep to individuals that could purchase methamphetamine from Estep. Harvey also distributed at least one pound of methamphetamine. In approximately June 2018, Harvey assisted Estep in picking up roughly six pounds of methamphetamine from a source of supply in Oklahoma and delivering it to the Western District of Virginia.
The investigation of the case was conducted by the Drug Enforcement Administration, Luray Police Department, Augusta County Sheriff’s Office, the Page County Sheriff’s Office, the Shenandoah County Sheriff’s Office, and the Staunton Police Department. Assistant United States Attorney Jeb Terrien prosecuted the case for the United States.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Travis Adam Griffin, 35, of Lincoln, was sentenced today by Chief United States District Judge John M. Gerrard to 11 years and three months in federal prison for conspiracy to distribute and possess with the intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine and 5 grams or more of methamphetamine actual (pure). Following the prison terms, Griffin will serve five years on supervised release. There is no parole in the federal system.
Information provided to law enforcement indicated between about January of 2017 and April 4, 2019, Griffin was responsible for the distribution of at least 1.5 kilograms (approximately three pounds) of methamphetamine mixture and at least 20 grams (approximately ¾ ounce) of methamphetamine actual. On April 4, 2019, Griffin was arrested on an outstanding warrant in the lobby of the Lancaster County Jail. During a search of his person, incident to the arrest, Griffin was found in possession of a baggie containing at least 24 grams of methamphetamine actual.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Large drug distribution network busted in EvansvilleRead the Press Release
Evansville – United States Attorney Josh J. Minkler announced today, the dismantling of a drug trafficking organization that brought large quantities of illegal drugs into southwest Indiana. Eleven defendants were indicted by a grand jury in Evansville with conspiracy to possess with intent to distribute 500 grams or more of methamphetamine and fentanyl.
“Drug trafficking organizations operate on greed and takes advantage of the addiction problem this community, our state and our nation faces,” said Minkler. “This illegal activity cannot and will not be tolerated. I am fully committed, my office is fully committed, and the federal, state, and local law enforcement partners are fully committed, to help stop the flow of narcotics into this state and this community.”
Those arrested and or are a fugitive include:
Rudolfo Ibarra-Hernandez, Aka “Rudy,”48, Mexico FUGITIVE
Juan Guzman, Aka “Hollywood,” 33, Mexico FUGITIVE
Juan Tellez, 44, Phoenix, AZ
Alexus Ortiz, 21, Clarksville, TN
Rayvin Yates, Aka “Ray,”26, Dayton, OH
Cesar Castro, 45, San Diego, CA
Jovanny Contreas-Vazquez, 30, Los Angeles, CA
Maria Castaneda-Villabolos , 33, Los Angeles, CA
Ruby Hernandez, 37, Federal Way, WA
Tania Gervacio, 30, El Cajon, CA
Angelique McCleary, 31, Carlsbad, CA
According to the indictment, beginning around January 2019, it is alleged that Ibarra-Hernandez and Guzman were the sources of supply for the drugs coming from the Mexican drug cartels to Evansville and Southwest Indiana. Tellez, Castro, Contreas-Vazquez and Castaneda-Villabolos, Gervacio, and McCleary were utilized as drug couriers within the organization, and Yates was a mid-level distributor. Ortiz and Ruby Hernandez were carriers of the money.
The organization used motor vehicles, commercial airlines, United States Postal Service, United Parcel Service and Federal Express to transport the methamphetamine, fentanyl and US currency to and from the southern Indiana area.
During the investigation, law enforcement recovered over 123 pounds of methamphetamine, 769 grams of fentanyl powder, 114 fentanyl pills, 500 oxycodone pills, 345 grams of heroin, and $14,346 in U.S. currency.
This case was investigated by the DEA, the Evansville Vanderburgh County Joint Task Force, Homeland Security Investigations, IRS Criminal Investigations, U.S. Marshal Service, and the U.S Postal Inspection Service.
DEA Assistant Special Agent in Charge, Michael Gannon said, “Today was a big win! Taking this much methamphetamine, fentanyl and heroin off the streets is huge. It is important for drug traffickers to know that the DEA and our partners will use all available resources to prevent drug dealers from peddling poison into our communities.”
“The aim of these types of investigations is to remove illegal narcotics and violent drug dealers from our community and country,” said Dan McClain, US Marshal, Southern District of Indiana. “This investigation is an example of the tremendous teamwork and comradery shown by all organizations involved from start to finish.”
According to Assistant United States Attorney Lauren M. Wheatley, who will prosecute this case for the government, the defendants face a maximum of life in federal prison, 5 years supervised release following their sentence, and up to a $10 million fine.
An indictment is only a charge and not evidence of guilt. All defendants are considered innocent until proven otherwise in federal court.
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 target, investigate, and prosecute more organizations that supply and distribute methamphetamine and heroin in the District. (See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 3.1, 3.4)
Kentucky Man Sentenced to 5 1/2 Years in Prison for Mail Theft SchemeRead the Press Release
NASHVILLE, Tenn. – September 16, 2020 – A Trenton, Kentucky man was sentenced today in U.S. District Court to 65 months in federal prison for mail fraud and possession of stolen mail, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Adam Perrelli, 41, pleaded guilty in June to conspiracy to commit mail fraud and theft of mail, mail fraud, and receipt and possession of stolen mail. Perrelli along with Kaitlin Patterson, 31, and Natasha Pargellis, 36, also of Trenton, were indicted in November 2019, after a lengthy investigation into mail thefts in and around the Clarksville, Tennessee area.
According to court documents, the defendants obtained a master key that allowed them to open mail receptacles such as street collection boxes and panels of apartment house mailboxes. During the period of March 2018 through September 2018, the trio drove with each other and other individuals to various mail receptacles in and around the Clarksville, Tennessee area and stole large amounts of mail. They then sorted through the mail looking for documents to use for their personal benefit, including checks, money orders, credit cards and personal identifying information. The documents were then altered and made payable to another participant in the conspiracy and approximately $32,000 in altered checks and money orders were cashed or deposited. The investigation identified 540 victims and uncovered an additional $540,000 in stolen checks and money orders which they intended to alter.
Patterson and Pargellis have previously pleaded guilty and are awaiting sentencing.
This case was investigated by the U.S. Postal Inspection Service and the Clarksville Police Department and is being prosecuted by Assistant U.S. Attorney Robert Levine.
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Kansas Man Indicted on Federal Child Pornography ChargesRead the Press Release
A resident of Topeka, Kansas, has been indicted by a federal grand jury in the U.S. District Court for the District of Kansas on federal child pornography charges, Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division announced today.
The three-count indictment charged Jeffrey Pierce with producing and possessing child pornography. Pierce is alleged to have solicited sexually explicit images and videos from minor victims.
This case is brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Justice Department Files Sexual Harassment Lawsuit Against Owners of Minneapolis Area Rental PropertiesRead the Press Release
United States Attorney Erica H. MacDonald today announced the filing of a lawsuit against property managers/owners REESE PFEIFFER, JEANNE PFEIFFER, MICHAEL FRUEN, and JEREMY MARTINEAU and business entities FRUEN & PFEIFFER, LLP (“F&P”) and M. FRUEN PROPERTIES (“MFP”) (collectively, “Defendants”) for allegedly engaging in a pattern or practice of sexual harassment in violation of the Fair Housing Act.
“This lawsuit alleges sexual harassment and discriminatory conduct against vulnerable tenants. Such behavior is unacceptable and a violation of the federal Fair Housing Act, said U.S. Attorney Erica MacDonald. “The U.S. Attorney’s Office will not tolerate this type of discrimination and stands ready to deploy all available enforcement tools to see that justice is served.”
The complaint, filed today in U.S. District Court, alleges that REESE PFEIFFER, property manager for numerous single-family and multi-family rental properties in Minneapolis and surrounding suburbs, subjected multiple female tenants to sexually hostile housing environments. The complaint alleges that REESE PFEIFFER commented on female tenants’ looks and body parts, engaged in unwelcome touching, asked personal questions about their relationship status, made unwelcome sexual advances, discussed sexual topics without consent, and entered their homes under the pretense of collecting rent to solicit sexual favors. The complaint alleges that FRUEN, MARTINEAU, JEANNE PFEIFFER, F&P, and MFP are vicariously liable for PFEIFFER’s discriminatory conduct, because PFEIFFER acted as their agent when he sexually harassed tenants at properties in which they had an ownership interest.
In the complaint, the United States seeks to stop the alleged discrimination, compensate the victims, and payment of civil monetary penalties.
The civil complaint presents allegations only; there has been no determination of liability or wrongdoing. If you believe you have information relevant to this case, please contact the United States Attorney’s Office at (612) 296-3984.
This case is handled by the Civil Division of the U.S. Attorney’s Office for the District of Minnesota with the assistance of the Justice Department’s Civil Rights Division.
The Justice Department's Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The Attorney General recently reaffirmed this commitment by directing the Justice Department to deploy all available enforcement tools against anyone who tries to capitalize on the COVID-19 crisis by sexually harassing people in need of housing. The goal of the department’s initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing. As part of the initiative, the Justice Department developed a public service announcement and formed a joint task force with HUD to combat sexual harassment in housing. Since launching the Initiative in October 2017, the Department of Justice has filed 18 lawsuits alleging sexual harassment in housing.
If you think you are a victim of sexual harassment by a landlord, or other forms of housing discrimination, contact the Justice Department’s Civil Rights Division at (800) 896-7743 or [email protected].
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Jury Finds Convicted Felon Guilty for Role in Large Scale Drug Trafficking OrganizationRead the Press Release
A New Bern man was convicted after a three (3) day federal trial. A jury returned guilty verdicts against Carlos Green, 33, for conspiracy to distribute and possess with the intent to distribute 500 grams or more of methamphetamine, 280 grams or more of crack cocaine and 500 grams or more of cocaine, distribution of 50 grams or more of methamphetamine, distribution of a quantity of methamphetamine, possession with intent to distribute a quantity of cocaine and crack cocaine, possession with intent to distribute a quantity of cocaine and possession of a firearm by a felon. Green had a prior federal conviction and was prohibited from possessing this firearm.
On July 17, 2019, Craven County Sheriff’s Office and Kinston Police Detectives conducted a controlled purchase of a quantity of methamphetamine from Green at a sweepstakes business on Old Highway 70 in Cove City, North Carolina.
On July 24, 2019, ATF Agents, Craven County Sheriff Deputies and Kinston Police Detectives conducted a controlled purchase of more than 50 grams of methamphetamine from Green from the same sweepstakes business on Old Highway 70 in Cove City North Carolina. The methamphetamine was more than 97% purity.
On August 21, 2019, ATF Agents, Craven County and Beaufort Sheriff’s Detectives conducted a search of Green’s Residence on Mill Road in Chocowinity North Carolina (Beaufort County). Law enforcement found more than 100 grams of cocaine, a quantity of crack cocaine, pyric dishes with crack residue, a money counter and a load PLR-22 caliber handgun with a high capacity magazine.
On December 10, 2019, ATF Agents and Craven County Detectives arrested Green at a residence on Durham Street in New Bern. Law enforcement found on the stove a backpack that contained approximately three (3) ounce of cocaine.
During the investigation, Agents uncovered that Green was part of a drug trafficking organization that was importing pounds of methamphetamine through the mail for distribution into New Bern and Kinston, North Carolina. In addition, Green was receiving nine (9) ounces of cocaine at a time from another source. Green would cook four (4) ounces into crack cocaine. Then all of this would be distributed into Eastern North Carolina.
The investigation was part of OCDETF Operation Fighting JellyFish. An Organized Crime Drug Enforcement Task Force (OCDETF) is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets. This OCDETF focuses on a Multi-State Drug Trafficking Organization that has been involved in the distribution of large quantity of methamphetamine throughout the United States.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after the jury verdict before U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco and Firearms, Drug Enforcement Administration, with assistance from the Craven, Beaufort, and Onslow County Sheriff’s Offices and the Kinston Police Department. Assistant U.S. Attorney Timothy Severo prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:20-cr-00005-FL.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Judge sentences St. Louis man for robbing 12 businessesRead the Press Release
ST. LOUIS, MO – United States District Judge Audrey G. Fleissig sentenced Justin McGee to 18 years in prison for robbing a dozen businesses. The 39-year-old St. Louis resident pleaded guilty in February to 12 robberies.
On September 12, 2018, McGee, armed with a firearm, entered the Cricket Wireless store located at 10006 W. Florissant, approached an employee, and stated that he needed a phone repaired. While the employee was looking at the phone, McGee pulled a firearm from his pocket, pointed it at the employee and demanded he open the cash register. The employee was ordered to the floor as McGee stole money from the register and then fled the store.
On October 10, 2018, McGee entered the Game Stop on Maplewood Commons Drive armed with a firearm, pointed it at the employee and demanded she open the cash register. After grabbing money from the register, McGee ordered the employee to the ground and left.
On October 12, 2018, McGee entered the T-Mobile store on N. Highway 67, engaged an employee in conversation, pointed a firearm at her and told her he would kill her. He then confronted the store manager and had both employees lie on the floor. McGee had one of the employees crawl to the office to show him where the cash was located. McGee took money and left the store.
On October 17, 2018, McGee entered the Game Stop located on South Kingshighway, engaged an employee in conversation, pushed him to the floor as he pointed a firearm at him and demanded the cash register be opened. A second employee opened the register. McGee grabbed the store’s money and left the store.
On October 19, 2018, McGee entered the Boost Mobile store on Manchester, rushed toward an employee and pointed a firearm at her. He pushed her to the floor and poked her back with the firearm. She opened the cash register. McGee grabbed the store’s money and ran out the door.
On November 23, 2018, McGee entered the Smoothie King on Forest Park as the employees were preparing to close for the day. McGee placed his hand in his pocket as if he had a firearm and told them he wanted no problems. After he ordered the employees to kneel on the floor, McGee grabbed the store’s money and left.
On December 15, 2018, McGee entered Kings Beauty Supply on Aubert and engaged an employee in a conversation about a hair clipper. McGee produced a firearm and announced a robbery. Pointing the firearm at two employees, McGee ordered one to lie on the ground. He grabbed the store’s money and hair clippers and left the store.
On February 4, 2019, McGee entered the Boost Mobile Store in North Oaks Plaza and engaged an employee in a conversation before pulling out his firearm and walking behind the counter. The employee pulled his own firearm and fired a shot striking McGee in the head. McGee was able to flee.
On March 7, 2019, McGee entered the BP gas station on Olive Road and began to climb over the counter to open the cash register. As he climbed over the counter, he pointed an air pistol at the employee. A fight ensued. The employee was able to grab the air pistol and McGee ran from the store.
On March 26, 2019, McGee entered the Family Dollar on North Grand, approached a cashier and told her to open her cash drawer. When she told him she could not, he pointed a caliber firearm at her. At that time, the manager opened the cash register. McGee took money and fled the store.
On March 29, 2019, McGee entered the Qdoba Restaurant on Lindell and approached the cashier as if to place a food order. McGee brandished a firearm and demanded money. McGee took money and left the store.
On April 7, 2019, McGee entered the Dollar Tree on Aubert, approached the cashier and told him not to “trip” as he pointed a firearm at him. The cashier gave McGee money and McGee left the store.
The Saint Louis Metropolitan Police Department and the Federal Bureau of Investigation investigated this case. Assistant United States Attorney Tom Mehan is handling the case.
Judge sentences Charleston, South Carolina man to 80 months in prison for child enticementRead the Press Release
ST. LOUIS, MO – United States Judge John A. Ross sentenced Ryan Palmieri to 80 months in prison for child enticement. The 37 year old is a resident of Charleston, South Carolina.
Palmieri traveled, in January 2019, from South Carolina to the St. Louis area to meet the victim who he had previously met through a cellular phone application. The victim, at the time, was 13 years old. During his six-day stay in the St. Louis area, Palmieri rented an Airbnb and engaged in several sexual acts, including sexual intercourse, with teenager.
On April 29, 2019, Palmieri traveled from South Carolina to the St. Louis area to meet the 13 year old for a second encounter. Again, Palmieri rented an Airbnb and engaged in several sexual acts, including sexual intercourse, with the victim.
The Federal Bureau of Investigation, St. Louis County Police Department, Jefferson County Police Department and the St. Louis Child Exploitation Task Force diligently investigated this case. Assistant United States Attorney Dianna Collins prosecuted the case.
Jacksonville Woman Pleads Guilty to Attempting to Illegally Exporting Maritime Raiding Craft and Engines to ChinaRead the Press Release
Yang Yang (34, Jacksonville) has pleaded guilty to conspiring to submit false export information through the federal government’s Automated Export System and to fraudulently export to China maritime raiding craft and engines in violation of United States (U.S.) law, and also to attempting to fraudulently export that equipment in violation of U.S. law. Yang faces a maximum penalty of 15 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Yang was employed by Shanghai Breeze Technology Co. Ltd., a company headquartered in Shanghai, People’s Republic of China. At the direction of co-conspirators in China, she attempted to order from a U.S. manufacturer seven combat rubber raiding craft equipped with engines that can operate using gasoline, diesel fuel, or jet fuel. These vessels and multi-fuel engines are used by the U.S. military and can be operated after being launched from a submerged submarine or dropped into the ocean by an aircraft. No comparable engine is manufactured in China. When the U.S. manufacturer suggested that Yang purchase cheaper gasoline-fueled engines, she insisted that she wanted to purchase the military-model multi-fuel engines.
To induce the manufacturer to sell this equipment, Yang falsely represented that her customer was an entity called United Vision Limited in Hong Kong, rather than Shanghai Breeze Technology Co. in Shanghai. One of Yang’s Chinese co-workers had told her that American manufacturers would be more likely to sell to an entity in Hong Kong rather than one in mainland China. By misrepresenting what company was buying the equipment, and where it was located, Yang caused the entry of false information in the Department of Commerce’s Automated Export System in violation of federal law.
When interviewed by federal agents on Oct. 17, 2019, Yang admitted that she had only one client, Shanghai Breeze, and that based on her communications with a co-conspirator, she knew that the combat raiding craft were not intended for Hong Kong, but instead, mainland China.
On Aug. 13, 2020, Yang’s co-defendant, Zheng Yan, also pleaded guilty to conspiring to submit false export information and to fraudulently export the raiding craft and engines in violation of U.S. law. The trial of their remaining co-defendants, Fan Yang and Ge Songtao, is scheduled to begin on Feb. 1, 2021.
This case was investigated by the FBI, the U.S. Naval Criminal Investigative Service, the U.S. Department of Commerce – Bureau of Industry and Security, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Michael J. Coolican and Heather Schmidt, Senior Trial Attorney, Counterintelligence and Export Section, U.S. Department of Justice.