Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
2 September 2020
Las Vegas Man Indicted for Falsifying Auto Collision Centers’ Tax ReturnsRead the Press Release
LAS VEGAS, Nev. - A federal grand jury in Las Vegas, Nevada, returned a superseding indictment today charging a Las Vegas man with conspiracy to defraud the IRS, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney Nicholas A. Trutanich for the District of Nevada, and Special Agent in Charge Tara Sullivan for the IRS-Criminal Investigation.
According to the superseding indictment, Lance K. Bradford conspired with others to prepare tax returns on behalf of several automotive collision centers falsely claiming that the centers and their owners incurred millions in deductible expenses. From 2013 through 2015, these false returns allegedly claimed more than $11 million in false deductions, resulting in significant underreporting of business income and taxes due to the IRS.
Bradford was previously charged with aiding and assisting in the filing of false individual, corporate, and partnership returns on behalf of other individuals and businesses.
If convicted, Bradford faces a maximum sentence of five years in prison for the conspiracy charge and three years in prison for each of the 29 counts of aiding and assisting the filing of a false tax return. Bradford also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich commended special agents of IRS-Criminal Investigation and the Federal Bureau of Investigation, who conducted the investigation, and Trial Attorney Patrick Burns of the Tax Division and Assistant U.S. Attorney Steve Myhre, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
###
Las Cruces man charged with using internet in attempt to entice minor into sexRead the Press Release
ALBUQUERQUE, N.M. – Robert Jasso, 23, of Las Cruces, New Mexico, appeared in federal court on Aug. 25 for a detention hearing on charges of attempted coercion and enticement of a minor child, attempted production of child pornography and attempted solicitation of child pornography. Jasso will remain in custody pending trial, which has not been scheduled at this time.
According to a federal criminal complaint, on July 18 Jasso allegedly used the social networking application Skout to contact what he thought was a 13-year-old girl. The complaint alleges, Jasso then attempted to entice the person he thought was a minor to travel to him to engage in sexual activity. Jasso later allegedly asked the person he thought was a minor to recruit another minor to engage in sexual activity with the two of them. Jasso allegedly requested that the person he thought was a minor send him sexually explicit photographs that would constitute child pornography.
After additional conversations, according to the complaint, on Aug. 14 Jasso travelled to a location near Sonoma Elementary School in Doña Ana County, New Mexico, where he expected to meet two 13-year-old girls to engage in sexual activity and was arrested.
A criminal complaint is only an accusation. A defendant is presumed innocent unless and until proven guilty. If convicted, Jasso faces 5 to 20 years in prison for attempted solicitation of child pornography, 15 to 30 years for attempted production of child pornography and 10 years to life for attempted coercion and enticement of a minor child.
The FBI investigated this case. Assistant U.S. Attorney Matilda McCarthy Villalobos is prosecuting the case.
KC Man, Present at Fatal Shooting, Charged with Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man was charged in federal court today with illegally possessing a firearm during a shooting incident in which two women were wounded by gunfire, one of whom died as a result.
Darius D. Shaw, 30, was charged with possessing a firearm in furtherance of a drug-trafficking crime in a complaint filed in the U.S. District Court in Kansas City, Mo.
Today’s federal criminal complaint alleges that Shaw was in possession of a Glock 9mm semi-automatic pistol on Aug. 23, 2020, in furtherance of the crime of distributing marijuana.
According to an affidavit filed in support of today’s federal criminal complaint, Shaw was present during a shooting after a marijuana deal in which two women were shot, one fatally.
Kansas City police officers were dispatched to Research Medical Center at approximately 3:35 a.m. on Aug. 23, 2020, in regard to two shooting victims who arrived at the hospital for medical treatment. One of the shooting victims suffered a gunshot wound to her neck and died while officers were at the hospital. The second shooting victim, her sister, suffered a gunshot wound to her shoulder.
Investigators learned the two women were part of a group who had purchased marijuana from Shaw at his residence, the affidavit says. A verbal disturbance ensued between the group purchasing marijuana and a woman at Shaw’s residence. As the victim’s vehicle was leaving, the woman started shooting at the vehicle. The driver of the vehicle went to the hospital when she realized the two women had been shot.
Shaw told investigators he had sold $10 worth of marijuana to a member of the group with whom the gunshot victims were traveling. He also told investigators that he regularly buys marijuana, the affidavit says, some of which he smokes and some of which he sells.The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ashleigh Ragner and Special U.S. Attorney Sarah Rasalam. It was investigated by the Kansas City, Mo., Police Department, the FBI, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Operation LeGend
Operation LeGend is a federal partnership with local law enforcement to address the increase in homicides and violent crime in Kansas City, Mo., in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.KC Man Pleads Guilty to Child Porn Charge That Could Send Him to Prison for 12 YearsRead the Press Release
KANSAS CITY, KAN. – A Missouri man with a prior child sexual exploitation conviction pleaded guilty today to possession of child pornography, U.S. Attorney Stephen McAllister said.
William Lockwood, 41, who lived in Kansas City, Kan., at the time of the crime and now lives in Pleasant Valley, Mo., pleaded guilty to one count of possessing child pornography. The investigation began when Dropbox sent a tip to the National Center for Missing and Exploited Children. In his plea, Lockwood admitted he uploaded child pornography to the Dropbox account and provided access to other users.
Investigators seized 26 videos of child sexual abuse from Lockwood’s account. In 2012, Lockwood was convicted in Collier County, Fla., on a charge of obscene communication for the purpose of luring a child for sex.
Sentencing is set for Dec. 3. Both parties are recommending a sentence of 144 months in federal prison. McAllister commended the FBI and Assistant U.S. Attorney Kim Flannigan for their work on the case.
Illegal Possession of Firearms Lands Two Men in Federal PrisonRead the Press Release
MONROE, La. – Acting United States Attorney Alexander C. Van Hook announced that two convicted felons have been sentenced in United States District Court for illegal possession of firearms. United States District Judge Terry A. Doughty sentenced both men today.
West Monroe Man Sentenced on Drug and Gun Charges
Jerry Dakota Johnston, 25, of West Monroe, Louisiana, was sentenced to 115 months (9 years, 7 months) in prison, followed by 4 years of supervised release, for possession of a firearm by a convicted felon and possession with intent to distribute methamphetamine.
On September 2, 2019, Union Parish Sheriff’s Office deputies observed Johnston illegally dumping trash at a parish dumpsite on Highway 15 in Downsville, Louisiana. While speaking with Johnston, deputies observed in plain view a 9mm handgun, loaded with a 30-round extended magazine, stuffed between the driver’s seat and center console of the vehicle Johnston had been driving. Johnston claimed that it was only a “BB gun,” but then, unprovoked, Johnston fled on foot down the highway. After a brief chase, deputies apprehended Johnston and placed him into custody. During a search of the vehicle, deputies found approximately 12 grams of methamphetamine packaged for distribution. Before his arrest on September 2, 2019, Johnson, a convicted felon, was prohibited from possessing firearms because of prior convictions for drug dealing and domestic violence. At the time of arrest, Johnston knew his status as a convicted felon.
The ATF and the Union Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Michael T. Shannon prosecuted the case.
Monroe Man Sentenced on Federal Firearms Crimes
Cedric Dewayne Coleman, 36, of Monroe, Louisiana, was sentenced to 54 months (4 years, 6 months) in prison, followed by 3 years of supervised release, for being a convicted felon in possession of a firearm. Coleman previously pleaded guilty to the charge on June 3, 2020.
In November 2019, detectives with the Monroe Police Department conducted a follow-up investigation of a domestic dispute. Detectives went to an apartment in Monroe, Louisiana and found Coleman lying in bed. After a search of the bedroom, officers found a pistol at the head of the bed Coleman was sleeping in and he admitted that the gun was his. Coleman has previous convictions for distribution of marijuana (2005); possession of cocaine (2006); and domestic abuse battery (2015). Under federal law, it is it is illegal for anyone who has been convicted of a felony to be in possession of a firearm or ammunition.
The ATF and the Monroe Police Department conducted the investigation. Assistant U.S. Attorney Jessica D. Cassidy prosecuted the case.
Each case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
# # #
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Hyde Park Man Indicted for Armed Bank RobberyRead the Press Release
BOSTON – A Hyde Park man was indicted yesterday by a federal grand jury in Boston for the December 2019 armed robbery of a bank in Hyde Park.
Paul Whooten, 56, was indicted on one count of armed bank robbery. He was previously charged by criminal complaint on Feb. 27, 2020 and has since been detained in federal custody.
According to the charging documents, on Dec. 21, 2019, Whooten entered a branch of the Rockland Trust bank on Truman Parkway in Hyde Park wearing black clothing and a mask, brandished what appeared to be a firearm, pointed it at the teller, and said, “Give me all of your money.” The teller filled a bag with cash, and the robber fled on foot. Bank surveillance cameras captured images of the robber wearing a long dark coat, a black reflective jacket, a black knit hat, black sunglasses and gloves. A police officer stationed inside the bank broadcast a description of the robber.
As alleged in the complaint, another police officer saw an individual matching the description of the robber walking down Truman Parkway. The officer issued verbal commands to the robber to drop the weapon and get on the ground. Whooten complied and was apprehended by law enforcement. A black rifle-type BB gun and bag of cash were recovered.
The charging statute provides for a sentence of up to 25 years in prison, five 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 U.S. Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Gross made the announcement. Assistant U.S. Attorney Adam W. Deitch of Lelling’s Major Crimes Unit is prosecuting the case.
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.
Home Health Company Agrees to Pay $300,000 to Resolve Allegations of Illegal Kickback SchemeRead the Press Release
Orlando, FL – United States Attorney Maria Chapa Lopez announces today that Home Health Care of Florida, LLC has agreed to pay $300,000 to resolve allegations that it engaged in a kickback scheme related to the referral of Medicare patients for home health services.
The settlement announced today resolves allegations that between August 1, 2013, and March 31, 2017, Home Health Care of Florida illegally paid its medical director in order to induce him to refer Medicare patients to Home Health Care of Florida for services that were billed to the United States. The medical director entered into a related settlement agreement in December of 2018. The United States alleged that these financial arrangements violated the physician self-referral law, commonly known as the “Stark Law,” and the Anti-Kickback Statute, giving rise to liability under the False Claims Act.
“Kickback arrangements have no place in federal healthcare programs,” said U.S. Attorney Maria Chapa Lopez. “The United States Attorney’s Office will continue to target improper payment schemes and advocate for the proper care of our senior citizens.”
The case was handled by the Justice Department’s Civil Division and the U.S. Attorney’s Office for the Middle District of Florida. Investigative assistance was provided by the U.S. Department of Health and Human Services – Office of Inspector General. Trial Attorney Breanna Peterson and Assistant United States Attorney Jeremy Bloor coordinated the investigation.
The government’s action in this matter illustrates the emphasis on combating health care fraud, and one of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The claims settled by this agreement are allegations only, and there has been no determination of liability.
High School Coach in Topeka Charged with Sexual Exploitation of MinorsRead the Press Release
TOPEKA, Kan. – A basketball coach at Seaman High School was charged today with sexually exploiting minors, U.S. Attorney Stephen McAllister said.
Jeffrey D. Pierce, 40, Topeka, Kan., is charged with two counts of producing child pornography (counts 1 and 2) and one count of possessing child pornography (count 3). The production crimes are alleged to have occurred March 10 and March 14, 2020. The possession crime is alleged to have occurred Sept. 2, 2020.
If convicted, Pierce could face a penalty of not less than 15 years and not more than 30 years in federal prison on each production count, and up to 10 years and a fine up to $250,000 on the possession count. The FBI investigated. Assistant U.S. Attorney Stephen Hunting is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Hattiesburg Felon Pleads Guilty under Project EJECT to Illegally Possessing FirearmRead the Press Release
Hattiesburg, Miss. – Michael Bounds, 30, of Hattiesburg, pled guilty today before Senior U.S. District Court Judge Keith Starrett to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On August 24, 2019, Bounds was found in possession of two firearms, including a 12-gauge shotgun, during a traffic stop in Forrest County. Bounds was previously convicted of multiple felonies.
Bounds was originally indicted for this offense on January 29, 2020. He will be sentenced on December 8, 2020 at 9:45 a.m.
The Hattiesburg Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. The case is being prosecuted by Assistant United States Attorney Andrew W. Eichner.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Gun Thief Sentenced for 'Smash-And-Grab' of More Than A Dozen AR-15 Style Rifles from Local Gun StoreRead the Press Release
DENVER – United States Attorney Jason R. Dunn today announced that Justin Vigil, age 31, of Denver, Colorado, was sentenced to serve 39 months (more than 3 years) in federal prison followed by 3 years on supervised release for the theft of firearms from Murdoch’s Ranch and Home Supply, a federally licensed firearm dealer. The Denver Field Division of the ATF joined in this announcement.
According to the stipulated facts contained in Vigil’s plea agreement, he and co-defendant Jonathan Estrada were part of a violent “smash and grab” organization that burglarized federal firearms licensees (FFLs).
On January 18, 2018, Vigil and five others, including Estrada, burglarized Murdoch’s gun store in Littleton. They entered the store after throwing a rock through a glass window. They spent 3 minutes in the store, stealing 13 AR-15 style firearms. That evening, the ATF executed a search warrant at Estrada’s residence. Agents found evidence, including five firearms that were stolen during the burglary, Murdoch's sales tags, and a handwritten ledger listing Murdoch's and other locations to be burglarized.
After Vigil was charged but before pleading guilty in this case, he cut off his GPS ankle monitoring bracelet and absconded. He was at large for several months and missed his initial change of plea hearing.
Co-defendant Jonathan Estrada, age 21, of Denver, was sentenced on February 27, 2020 to serve 96 months (8 years) in federal prison followed by 3 years on supervised release for carjacking and his role in this and another gun store burglary.
“Prosecuting gun crimes is a top priority for my office and the Department of Justice,” said U.S. Attorney Jason Dunn. “The theft of 13 AR-15 style rifles causes a substantial community safety concern because they likely end up in the hands of violent criminals, gangs, and drug trafficking organizations. As these criminals target gun stores, federal law enforcement and my office will target them with laser focus.”
“FFL burglaries and robberies are one of the top priorities of ATF,” said David Booth, Special Agent in Charge of the ATF Denver Field Division. “We will continue to use every resource available to ensure those responsible are brought to justice and ensure public safety.”
According to ATF statistics specific to Colorado, in 2019 there were 135 firearms stolen in 9 separate burglaries. In 2018, there were 64 firearms stolen in 8 separate burglaries. And in 2017, there were 427 firearms stolen in 28 separate burglaries. Nationally in 2019 there were 21,535 firearms stolen in 2,576 separate burglaries.
The sentence was pronounced by U.S. District Court Judge Robert E. Blackburn. This case was investigated by the ATF with assistance from the following law enforcement agencies: Arvada Police Department, Aurora Police Department, Denver Police Department, Douglas County Sheriff’s Office, Jefferson County Crime Lab, and Lakewood Police Department. The defendant is being prosecuted by Assistant U.S. Attorney Emily Treaster.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER by searching for Case Number 18-cr-421.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
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.
Gulf Coast Business Owner Pleads Guilty to Illegal Interstate Seafood ConspiracyRead the Press Release
Gulfport, Miss. - Khiem Dinh Vh, 56, of D’Iberville, Mississippi, an unlicensed wholesale seafood dealer who operated a business known as “Gulf Coast Seafood” in Jackson County, pled guilty today before U.S. District Judge Sul Ozerden to conspiracy to violate the Lacey Act, which makes it unlawful to sell in interstate commerce any fish taken in violation of state law, announced U.S. Attorney Mike Hurst, Deputy Special Agent in Charge Manny Antonaras of the National Oceanic and Atmospheric Administration, and Acting Chief Kyle Wilkerson of the Mississippi Department of Marine Resources, Office of Marine Patrol.
Vu made his initial appearance and waived indictment earlier today before the Honorable Robert P. Myers, Jr., United States Magistrate Judge, at the federal courthouse in Gulfport.
Pursuant to the Criminal Information, Vu pled guilty to conspiring to violate the Lacey Act by selling fish to seafood markets in the Atlanta, Georgia metropolitan area. Vu bought the seafood from commercial fishermen and other seafood dealers in Biloxi and Pass Christian, and then transported the seafood to the Atlanta area for resale without having a wholesale seafood dealer license, as required by Mississippi law. As administered by the Mississippi Department of Marine Resources, Mississippi regulates the seafood industry to preserve fish stocks and protect the local fishing market.
For the conspiracy charges, Vu faces a maximum penalty of five years in prison, a $250,000 fine and three years of supervised release. He will be sentenced by Judge Ozerden on December 3, 2020 at 10:00 a.m.
United States Attorney Hurst praised the efforts of the federal and state investigative agencies for their diligent work in the investigation of this matter. The case was investigated by NOAA Office of Law Enforcement and Mississippi Department of Marine Resources, and is being prosecuted by Assistant U.S. Attorney Gaines Cleveland.
Grand Rapids Men Sentenced for Armed RobberyRead the Press Release
GRAND RAPIDS, MICHIGAN - U.S. Attorney Andrew Birge announced today that Christopher Desonier and Angel Leon were sentenced for committing armed robberies. Desonier was sentenced to 117 months imprisonment and Leon was sentenced to 161 months, by U.S. District Court Judge Gordon J. Quist. Both men were ordered to pay restitution and will serve 3 years of supervised release after they are discharged from prison.
Desonier and Leon were responsible for a string of crimes dating back to January 2019, when they broke into a home and stole a vehicle and a wallet. They went to the Cabela’s Sporting Goods Store in Grandville and used the ID and credit card of the victim to buy ammunition and accessories for pistols and attempted to buy an assault-type rifle, but were prevented due to the 3-day waiting period. In March 2019, they robbed Pancho’s Party Store in Grand Rapids. Leon entered the store and robbed the clerk, stealing cash and cigarettes, while brandishing a shortbarreled shotgun. Desonier waited outside and acted as the getaway driver. A week later, Desonier and Leon robbed the 911 Cash Store located in Wyoming, Michigan. This time, both men entered the store with Leon brandishing the short-barreled shotgun and Desonier had a revolver. They tied up the store clerks, stole cash, and took the recording device from the store security system.
At sentencing, Judge Quist, expressed concern at the grave nature of the crimes and denied requests for leniency in imposing lengthy terms of custody for both men. Both Desonier and Leon had prior convictions that prohibited them from possessing firearms.
In announcing the sentences, U.S. Attorney Birge stated, “Armed robbery is violent and dangerous. The risk of death, serious injury, and psychological harm are ever-present. My office has always and will continue to pursue those who violate federal prohibitions on possessing a firearm or who use a firearm in committing other federal crimes.”
“Angel Leon and Chris Desonier used firearms and violence to further their criminal endeavors,” stated James Deir, ATF’s Special Agent in Charge of the Detroit Field Division. “It is my hope that the lengthy sentences they received sends a message that we as law enforcement, and we as a community, will not stand by and let violence be the norm. We will continue to work to hold those who use violence accountable.”
This case was prosecuted by Assistant U.S. Attorney Daniel Mekaru and investigated by the Grand Rapids Police, Wyoming Police, Allegan County Sheriff’s Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
###
Grand Jury Indicts St. Louis Trio Linked to Overseas Romance SchemeRead the Press Release
ST. LOUIS - A federal grand jury indicted 41-year-old Ovuoke Frank Ofikoro, 27-year-old Bonmene Sibe, and 27-year-old Trenice Hassel on charges connected to a romance scam targeting dozens of older women residing throughout the United States. Ofikoro and Sibe face several charges including conspiracy to defraud, mail fraud, and aggravated identity theft while Sibe and Hassel face the additional charge of making false statements to a federal agency.
According to court documents, between sometime around May 2019 until July 31, 2020, Ofikoro, Sibe, and other individuals perpetrated a romance scheme in which the fraudsters pretended to be high-ranking military officers who were deployed overseas. The perpetrators pretended to be romantically interested in the women whose ages ranged between the ages of 45 and 82.
Investigators believe Ofikoro and Sibe worked with others in enticing the women to send United States currency and electronic equipment to St. Louis area post office boxes from various states that included Hawaii, Illinois, Utah, Mississippi, Maryland, and Florida. The value of the currency and equipment mailed through the United States Postal Service had an aggregate value of more than $500,000 with some of the shipments containing as much as $50,000 in currency. Ofikoro and Sibe transferred some of the funds received to accounts of financial institutions located in the Country of Nigeria.
Co-Defendant Hassel assisted the conspirators in using the name of B.M. to fraudulently open one of the St. Louis post office boxes Ofikoro, Sibe, and the others use in the scheme.
If convicted, the violations of conspiracy to defraud and mail fraud carry a maximum penalty of 20 years in prison and a $250,000 fine, and the violation of making false statements carries a maximum penalty of 5 years in prison and a $250,000 fine. For the violation of aggravated identity theft, Ofikoro and Sibe face a mandatory two year sentence of imprisonment that will be run consecutive to any other term of imprisonment imposed. Restitution is also mandatory.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilty. Every defendant is presumed to be innocent unless and until proven guilty.
The United States Postal Inspection Service and the Federal Bureau of Investigations are investigating this case. Assistant U.S. Attorneys Tracy Berry and Edward Dowd III are handling the case for the U.S. Attorney’s Office.
The Department of Justice Elder Justice Initiative is dedicated to investigating and prosecuting financial crimes targeting older adults. The Eastern District of Missouri Identity Theft Task Force is a group of federal, state and local law enforcement agencies working together to combat identity theft and its related crimes across the St. Louis Community.
Inspector in Charge William Hedrick, of the U.S. Postal Inspection Service, said, “The indictments and arrests in this case not only highlight the investigative efforts of the Postal Inspection Service and its law enforcement partners, but also instills public confidence that those who exploit the elderly through the U.S. Mail will be brought to justice.”
"Romance scams prey on people's vulnerabilities and cost victims almost half a billion dollars a year," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "If you meet someone online and the person asks you for money, question whether this could be a romance scam. There's nothing romantic about being swindled out of your life's savings."
“Taking advantage of vulnerable individuals is always awful. In particular, these romance scams often succeed against elderly victims who have lost partners or have been isolated due to the pandemic,” said U.S. Attorney Jeff Jensen. “Making matters worse, elderly victims are frequently unwilling to discuss financial matters with children and are too embarrassed to report their losses to law enforcement. We need to be vigilant and watch for red flags such as: increased use of internet messaging services; frequent trips to banks and post offices; abnormal requests for money; and increased secrecy.”
Geneva Man Charged with Enticement of A MinorRead 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 Timothy Carter, 45, of Geneva, NY, was arrested and charged by criminal complaint with enticement 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 Meghan K. McGuire, who is handling the case, stated that according to the complaint, on May 12, 2020, an undercover law enforcement officer with the Geneva Police Department was on social media utilizing an undercover online account when he received a picture of a naked male from a user named “Timothy Carter.” For approximately an hour after receiving the picture, the undercover officer and the defendant exchanged messages that were sexually explicit at times. During the exchange, the undercover officer stated that he was a 14 year-old boy. Carter then asked the undercover officer to meet in person. A short time later, the defendant arrived at a predetermined location and was taken into custody.
On May 19, 2020, the Geneva Police Department executed a search warrant on Carter’s cellular phone and determined it was used to send the messages to the undercover officer.
The complaint is the result of an investigation by the Geneva Police Department, under the direction of Chief Michael J. Passalacqua; the Canandaigua Police Department, under the direction of Chief Mathew Neilsen, and the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent-in-Charge Stephen Belongia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
Fraudster Pleads Guilty in $2 Million Ponzi SchemeRead the Press Release
A Honduran man who conned investors out of roughly $2 million has pleaded guilty to mail fraud, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Jose Anibal Linares, 42, was charged in October with one count of mail fraud and two counts of wire fraud. He pleaded guilty to the mail fraud charge via videoteleconference before Magistrate Judge Renee Harris Toliver on Tuesday.
According to plea papers, Mr. Linares admitted to running a Ponzi-type scheme, luring investors into handing over “principal” that he later deposited in bank accounts at Wells Fargo, Bank of America, and Legacy Texas, then paying them “interest” from other investors’ principal payments.
Mr. Linares, who operated JC Loans Finance and Inversiones JC Dallas, admitted he falsely told investors their funds were “insured by the FDIC” and promised monthly returns based on investments in commercial and residential real estate, including a water resort and shopping centers in Honduras. He then mailed investors letters thanking them for joining the JC “family.”
Instead of investing their money, however, Mr. Linares admits he spent substantial amounts of investor funds on personal expenditures, and even wired some of the money to family members in Honduras.
In the meantime, he made lulling payments to investors by withdrawing large sums from his Bank of America and Wells Fargo accounts, generally using funds that had been deposited immediately beforehand from other investors. On some occasions, he even took investors’ cash payments from one set of investors in his office, then turned the cash over to other investors waiting in his lobby for their monthly disbursements.
By summer 2017, Mr. Linares admits, he had ceased all monthly payments and did not return investors’ principal investments.
Mr. Linares now faces up to 20 years in federal prison. His sentencing date is set for January 11, 2021. A Honduran citizen in the U.S. on Temporary Protected Status, Mr. Linares may be subject to removal from the U.S. after serving his sentence.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney Katherine Miller is prosecuting the case.
Fort Myers Business Owner Arrested and Charged with COVID Relief FraudRead the Press Release
Fort Myers, Florida – United States Attorney Maria Chapa Lopez announces the arrest and unsealing of a criminal complaint charging Casey David Crowther (35, Fort Myers) with making a false statement to a lending institution. If convicted, Crowther faces a maximum penalty of 30 years in federal prison.
According to the
complaint , Crowther sought and received more than $2 million in a Payroll Protection Program (PPP) loan through an application to an insured financial institution on behalf of his company, Target Roofing & Sheet Metal, Inc. Crowther submitted a loan application that included false and misleading statements concerning what the PPP funds would be used for, specifically that the PPP funds would only be used for business-related purposes, to retain workers, and maintain payroll or make mortgage payments, lease payments, and utilities payments.The complaint further alleges that within days of receiving the PPP funds, Crowther used a portion of the funds to purchase a 2020 40-foot catamaran boat for approximately $689,417, which he registered in his name.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if the business spends the proceeds on these expenses within a set time period and use at least a certain percentage of the loan toward payroll expenses.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorney Trent Reichling.
Former felon convicted of failing to report as sex offender in TexasRead the Press Release
BROWNSVILLE – A 60-year-old resident of Brownsville has entered a guilty plea to one count of failure to register as a sex offender as required under the Sex Offender Registration and Notification Act (SORNA), announced U.S. Attorney Ryan K. Patrick.
Albert Frank Garza is a twice-convicted sex offender. He was convicted of first degree sexual abuse with a child under the age of 12 in 1980 and again just three years later for indecent liberties with a child under the age of 14. He received respective sentences of 48 months and 10 years in prison.
As a sex offender, he is required under SORNA to register as a sex offender every year. If he relocates, he is required to register in the new jurisdiction within three days after arrival.
Previously residing in Colorado, he had registered as a sex offender until May 30, 2014. At that time, he signed and dated an annual form acknowledging a follow-up date of June 1, 2015. However, he failed to register in 2015 as required.
In fact, he never registered as a sex offender again, and his whereabouts were unknown until 2019.
On Sep. 24, 2019, local authorities arrested Garza for failure to identify and possession of a controlled substance. At the time of his arrest, Garza used the fictitious name of Martin Infante Garcia and indicated he was homeless. A street outreach advocate at a local homeless shelter recognized his photo and identified him as someone who visited the shelter daily for breakfast from April 2019 through June 2019.
Although Garza resided in Texas from at least April 2019 until the date of his arrest in September, he failed to register within the required three days of his arrival.
U.S. District Judge Rolando Olvera accepted the plea and set sentencing for Nov. 25. At that time, Garza faces up to 10 years in federal prison and a possible $250,000 maximum fine. He will remain in custody pending that hearing.
The U.S. Marshals Service conducted the investigation. Assistant U.S. Attorney Nikki Piquette is prosecuting the case.
Former United Nations Employee Charged with Making False Statements to Cover up Sexual AssaultsRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that KARIM ELKORANY, a former communications specialist with the United Nations (“UN”) in Iraq, was charged in an Indictment in Manhattan federal court with two counts of making false statements to special agents of the FBI in an effort to conceal his drugging and sexual assault of multiple women while he worked for the UN. ELKORANY was arrested in New Jersey today and is expected to be presented before Magistrate Judge James L. Cott this afternoon. The case is assigned to District Judge Naomi Reice Buchwald.
Acting Manhattan U.S. Attorney Audrey Strauss said: “Karim Elkorany, a former United Nations communications specialist, was accused of furtively drugging and sexually assaulting several women. When questioned by the FBI, Elkorany compounded his alleged unconscionable conduct by making false statements to the special agents investigating the assaults. Thanks to the diligence of the FBI, Elkorany now faces serious time in an American federal prison. We urge any individuals who may have information concerning Elkorany or any similar conduct to please contact the FBI at 1-800-CALL- FBI or tips.fbi.gov.”
FBI Assistant Director William F. Sweeney Jr. said: “Investigated by UN officials for allegedly drugging and sexually assaulting a woman in Iraq in 2016, Elkorany caught the eye of the FBI. Elkorany’s conduct, as detailed in today’s charges, is abhorrent, and the false statements made to the FBI Special Agents conducting this investigation are federal offenses. Our investigation continues, and if anyone has information about Elkorany, please contact us at 1-800-CALL- FBI or via our tipline at tips.fbi.gov.”
According to the Indictment unsealed today in Manhattan federal court and publicly available information:[1]
Since at least in or about 2005 up to at least in or about April 2018, ELKORANY worked in international aid, development, and/or foreign relations. From in or about October 2013 up to in or about April 2016, ELKORANY worked for the UN Children’s Fund in Iraq. From in or about July 2016 up to in or about April 2018, ELKORANY worked as a Communications Specialist for the UN in Iraq.
In or about November 2016, ELKORANY drugged and sexually assaulted a woman (“Victim-1”) in Iraq, where he was stationed while working for the UN. Victim-1 had food and alcoholic beverages with ELKORANY at a restaurant, after which ELKORANY brought Victim-1 to his apartment. While at ELKORANY’s apartment, Victim-1 was rendered unconscious. Victim-1 regained consciousness for brief periods, during which she observed ELKORANY sexually assaulting her but was physically unable to stop him. ELKORANY, among other things, put his penis in Victim-1’s mouth and anally penetrated Victim-1.
In or around December 2016, Victim-1 reported the sexual assault to the UN. The UN initiated an investigation, through which ELKORANY was notified of the substance of Victim-1’s allegations against him.
Federal agents subsequently uncovered evidence that ELKORANY had engaged in a pattern of similar conduct involving other women. In each instance, ELKORANY drugged the victim before sexually assaulting or attempting to sexually assault the victim while the victim was unconscious or partially conscious. In particular, between in or around 2009 and in or around 2016, ELKORANY sexually assaulted or attempted to sexually assault at least five victims after the victims were rendered unconscious after consuming alcoholic beverages prepared by ELKORANY. When some of the victims regained consciousness, some or all of their clothing had been removed. In some instances, after they awoke, ELKORANY informed the victims, in substance and in part, that they had sexual intercourse, oral sex, and/or anal sex with him. In some instances, when or after the victims regained consciousness, the victims experienced genital and anal discomfort and pain.
On or about November 3, 2017, special agents working with the New York Field Office of the FBI conducted a voluntary interview of ELKORANY outside of his residence in New Jersey. Agents conducting the interview identified themselves and informed ELKORANY that they were investigating, among other things, his interactions with Victim-1. During that interview, ELKORANY, who expressed familiarity with the nature and substance of the allegations made by Victim-1 to the UN, stated that the allegations Victim-1 had made to the UN were false. ELKORANY also stated that he had not used drugs with Victim-1 or provided Victim-1 with any drugs.
* * *
ELKORANY, 37, of West Orange, New Jersey, is charged with two counts of making false statements to federal law enforcement agents, each of which carries a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Acting U.S. Attorney Strauss praised the outstanding work of the FBI. Ms. Strauss also thanked the United States Department of State and the UN for their assistance, and noted that the investigation is ongoing. Any individuals who believe they have information concerning ELKORANY or any similar conduct should contact the FBI at 1-800-CALL- FBI or tips.fbi.gov.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Daniel C. Richenthal, Amanda L. Houle, and Lara Pomerantz are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the Indictment and the descriptions of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former Tinker AFB Employee and Reserve Air Force Colonel Pleads Guilty to Accessing and Viewing Child Pornography on Government-Issued LaptopRead the Press Release
OKLAHOMA CITY – BRIAN WADE EDDY, 49, of Oklahoma City, Oklahoma, pleaded guilty today to accessing and viewing images of child pornography from his government-issued laptop.
On May 21, 2020, Mr. Eddy was charged by criminal complaint with using his laptop computer with the intent to view child pornography. The affidavit filed in support of the criminal complaint indicates Mr. Eddy accessed websites suspected to contain child pornography on December 1, 2019. On June 17, 2020, a federal grand jury sitting in the Western District of Oklahoma returned a one-count Indictment that charged Mr. Eddy with knowingly accessing, with intent to view, child pornography.
This afternoon, Mr. Eddy pleaded guilty before U.S. District Judge Joe Heaton to the charge alleged in the Indictment. As part of his plea, Mr. Eddy admitted that he searched for and viewed images of child pornography from his government laptop in December 2019.
According to the United States Air Force Office of Special Investigations, at the time of the incident Mr. Eddy was a civilian employee at Tinker Air Force Base, and has since been terminated. He was also a ranking Colonel in the Air Force Reserves. Mr. Eddy currently remains in federal custody while he awaits sentencing. He faces up to 10 years in prison, a $250,000 fine, at least five years of supervised release, and a $22,100 special assessment. Sentencing will take place in approximately 90 days.
This case is the result of an investigation by the United States Air Force Office of Special Investigations. It is being prosecuted by Assistant U.S. Attorney Julia E. Barry.
This case is part of Project Safe Childhood, a nationwide initiative by the Department of Justice (DOJ) to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the DOJ Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Former Luxury Car CEO and Luxury Watch Dealer Admit Tax Charges in Connection with Scheme to Misallocate Limited Edition Sports CarsRead the Press Release
NEWARK, N.J. – The former chief executive officer of a New Jersey-based importer of Italian luxury cars admitted today that he failed to report to the IRS as income kickback payments he received for misallocating limited edition sports cars, Attorney for the United States Rachael Honig announced.
A luxury watch dealer also admitted failing to report to the IRS commission he received for helping facilitate the unauthorized sale of one of those limited edition sports cars.
Maurizio Parlato, 58, of Washington, D.C., pleaded guilty by videoconference before U.S. District Judge Stanley R. Chesler to an information charging him with one count of subscribing to a false tax return and one count of failing to file a Report of Foreign Bank and Financial Accounts (FBAR). Gigi Knowle, 69, of Miami, Florida, pleaded guilty by videoconference before Judge Chesler to a separate information charging him with subscribing to a false tax return.
“This defendant admitting rigging access to purchase high-end sports cars to line his own pockets, then failed to pay taxes on the money he made on his deals,” Attorney for the United States Honig said. “He tilted the playing field to his own advantage, cheating legitimate buyers and the government in the process. Our office remains firmly committed to prosecuting those who defraud the public and the government.”
“Today, the IRS told Mr. Parlato ‘not so fast’ when he failed to report almost $2.8 million on his tax returns for the kickbacks he received to misallocate the distribution of several supercars,” Jonathan D. Larsen, Special Agent in Charge, New York Field Office, said. “Mr. Parlato tried to hide the income by moving the funds around the world. Offshore tax evasion is a top priority for IRS - Criminal Investigation and, as was shown today, we are wholeheartedly committed to bringing these offenders to justice.”
“Today's plea is another example of the great investigative work done daily by the IRS, U.S. Attorney's Office and our agents,” FBI Newark Special Agent in Charge George M. Crouch Jr. said. “It is a clear message that we will relentlessly pursue those attempting to defraud the government.”
According to documents filed in the case and statements made in court:
Parlato was a resident of Florida and served as the CEO of a company (Company B) based in Englewood Cliffs, New Jersey, from 2002 to 2009. Company B was responsible for distributing automobiles that were produced by a luxury automobile manufacturer (Company A) based in Maranello, Italy. Company B distributed Company A’s luxury automobiles in the Western Hemisphere through dealers based in the Americas.
Company A produced several highly desired automobile models in small quantities. Parlato had some measure of authority over the allocations of those limited edition automobiles. In 2013, Company A announced it was creating its most exclusive model to date: a “supercar,” limited to only 500 units and carrying a manufacturer’s suggested retail price (MSRP) of approximately $1.4 million. Company A and Company B established a formula to determine which customers would be placed on the approved list to buy a supercar.
After resigning as CEO of Company B, Parlato assisted Company B dealers and supercar purchasers in misallocating supercars in exchange for kickback payments. Between 2015 and 2017, Parlato received approximately $2.8 million from Company B dealers and supercar purchasers in exchange for, among other things, assisting them in misallocating supercars to customers who were not on the list of approved purchasers. Parlato admitted that he failed to report the $2.8 million in kickback payments he received as income on his federal individual income tax returns. Parlato also admitted that he attempted to hide some of these funds from the IRS by depositing them in a bank account in Spain and failing to disclose the existence of that bank account. Parlato admitted that he avoided paying more than $1.1 million in taxes.
Knowle also received payments in connection with his role in misallocating a supercar. In 2015, Knowle lived in Florida and worked as a luxury watch dealer. That year, Knowle assisted Parlato in facilitating the sale of a supercar to another individual who was not on the approved list. Knowle received approximately $560,000 as commission for his role in the sale, some of which Knowle distributed to Parlato and others who were also involved in misallocating the supercar to the unapproved purchaser. Knowle failed to disclose the commission on his personal income tax returns. Knowle admitted that he avoided paying approximately $175,000 in taxes.
The count of subscribing to a false tax return carries a maximum potential penalty of three years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The count of failing to file a FBAR carries a maximum potential penalty of five years in prison and a $250,000 fine.
Sentencings for Parlato and Knowle are scheduled for Jan. 12, 2021.
Attorney for the United States Honig credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in New York, and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Dara Aquila Govan, Chief of the Government Fraud Unit, and Assistant U.S. Attorney Catherine R. Murphy of the Economic Crimes Unit.
Former Leader of New Bedford Latin Kings Chapter Pleads Guilty to Narcotics Conspiracy ChargesRead the Press Release
BOSTON – A former leader of the New Bedford Chapter of the Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to drug conspiracy charges.
Xavier Valentin-Soto, a/k/a “King X,” 33, pleaded guilty to conspiracy to distribute cocaine before U.S. Senior District Court Judge Rya W. Zobel, who scheduled sentencing for Dec. 16, 2020. Valentin-Soto was charged in December 2019, while serving a related sentence in state prison. Prior to his incarceration on the state charges, Valentin-Soto was the Cacique (or second-in-command) of the New Bedford Chapter of the Latin Kings.
During the plea proceedings, Valentin-Soto admitted that he conspired with other Latin Kings members and leaders to distribute cocaine and cocaine base in and around New Bedford. As Cacique, Valentin-Soto held a leadership role in the drug distribution conspiracy that the Latin Kings maintained in and around multiple trap houses throughout the north side of New Bedford.
Valentin-Soto was arrested in July 2017, when local police executed a search warrant at a Latin Kings trap house in north New Bedford and located cocaine and materials for the packaging and distribution of controlled substances. Valentin-Soto was charged in state court, but released after posting bail. While on pretrial release for the state charges, Valentin-Soto sold a total of 160 grams of cocaine powder to a cooperating witness over the course of three recorded purchases in early 2019.
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.
Pursuant to the terms of the plea agreement, Valentin-Soto faces a sentence of 65 months in prison and three years of supervised release. The charge of conspiracy to distribute controlled substances provides for a sentence of up to 20 years in prison, a minimum of three years and up to life of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
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. Xavier Valentin-Soto is the tenth defendant to plead guilty in the case.
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.
Former Bank President Pleads Guilty to EmbezzlementRead the Press Release
LEXINGTON, Ky. – A former bank president admitted in federal court on Wednesday that he embezzled from the Kentucky bank where he was the president.
Thomas Hinkebein, 59, pleaded guilty to one count of embezzlement by a bank officer, before United States District Chief Judge Danny C. Reeves. Hinkebein admitted that, between January 12, 2016 and August 13, 2018 and while he was the President of Whitaker Bank, he willfully misapplied assets of the bank. Specifically, he admitted stealing golf carts and other property of Andover Country Club, an asset owned by Whitaker Bank, and seeking reimbursement from Whitaker Bank for a variety of personal expenses, including cell phone plans, gym memberships, fuel purchases, vehicle repairs, technology purchases for his family members, shipping expenses, and landscaping at his home. To hide the personal nature of these expenses, the Defendant falsely reported many of the expenses to Whitaker Bank to make them appear to be legitimate work expenses.
Hinkebein was charged by way of information, waiving his right to indictment by a federal grand jury.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; John Crawford, Special Agent in Charge, Federal Deposit Insurance Corporation, Office of Investigations, Chicago Region; and Stephen Donnelly, Acting Special Agent in Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection, jointly announced the guilty plea.
The investigation was conducted by the FDIC and the Federal Reserve. The United States was represented by Assistant U.S. Attorney Kate K. Smith.
Hinkebein is scheduled to be sentenced on December 4, 2020. He faces up to 30 years in prison and a maximum fine of $1 million. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the applicable federal statutes.
– END –
Former Asbestos Contractor Pleads Guilty to Theft of Federal Program FundsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that MARC A. VICTORIANO (VICTORIANO), age 46, of Covington, Louisiana, pleaded guilty today to one-count of theft from a program receiving federal funds before United States District Court Judge Lance M. Africk.
According to court documents from 2015 to 2017, VICTORIANO and his company, Professional Safety Consultants, LLC, ("PSC") provided asbestos inspections for the Terrebonne Parish School Board ("TPSB") as mandated by the Asbestos Hazard Emergency Response Act ("AHERA"). VICTORIANO submitted 56 invoices to TPSB with fraudulent asbestos laboratory reports including false air monitoring and false asbestos testing reports. VICTORIANO also submitted nine invoices to TPSB for AHERA reports with forged signatures and accreditation information. As a result, TPSB paid VICTORIANO approximately $212,618.26 to which he was not entitled, in violation of Title 18, United States Code, Section 666(a)(1)(A).
“The Asbestos Hazard Emergency Response Act (AHERA) is designed to protect our schools from hazardous air pollutants”, said Special Agent in Charge Christopher Brooks of EPA’s Criminal Investigation Division in Louisiana. “Today’s guilty plea demonstrates that individuals who intentionally violate federal laws will be held responsible for their crimes.”
VICTORIANO faces a maximum term of imprisonment of not more than ten years, a fine of $250,000.00, and up to three years (3) years of supervised release. Sentencing is scheduled for December 16, 2020.
U.S. Attorney Strasser praised the work of the United States Environmental Protection Agency, Criminal Investigation Division; the Louisiana State Police; Louisiana Department of Environmental Quality, Criminal Investigation Section and the Louisiana Environmental Crimes Task Force, for their investigation of the matter. Assistant United States Attorney Julia K. Evans is in charge of the prosecution.
* * *
Feds Prosecute Additional Louisville LootersRead the Press Release
LOUISVILLE, Ky. – Three defendants are now charged by a federal Grand Jury as a result of civil unrest in Jefferson County during the period of Monday, June 1, 2020, through Wednesday, June 3, 2020. The defendants charged are alleged to have engaged in looting a neighborhood pharmacy for controlled substances and firearms from a licensed dealer. This indictment is additive to multiple charges recently announced by the United States Attorney’s Office for the looting of neighborhood pharmacies for controlled substances, carjacking, and illegal possession of firearms by convicted felons. These indictments bring the total number of these defendants federally charged to 11.
“In Louisville we honor and protect lawful protest, but loot our businesses and expect to go to federal prison,” said United States Attorney Russell Coleman.
Kroger Pharmacy Burglary
According to the indictment, on or about June 2, 2020, Jordan K. Johnson and Frederick F. Reed conspired with one another to enter the Kroger located at 2710 West Broadway with the intent to steal controlled substances. Both Johnson and Reed are charged with conspiracy to commit burglary involving controlled substances. The charge carries a penalty of no more than 10 years in prison.
Johnson and Reed are also charged with conspiracy to distribute controlled substances for their possession with intent to distribute alprazolam (Xanax), a schedule IV controlled substance, between June 2, 2020 and July 1, 2020. The charge carries a maximum penalty of no more than 5 years in prison.
Johnson is also charged with one count of possession of a firearm by a prohibited person. On July 1, 2020, Johnson possessed a Glock, model 42, .380 handgun. He had previously been convicted in Hart County Circuit Court, in case number 10-CR-0170 of facilitation of robbery in the first degree, a felony. The count carries a penalty of no more than 10 years in prison.
Stolen firearms
De’Aisjia S. Shrivers has also been charged via superseding federal indictment returned today. According to the indictment, on or about June 2, 2020, Shrivers aided and abetted by others known and unknown to the Grand Jury, stole three firearms from a business licensed to sell guns. The charge of stealing from a licensed dealer carries a penalty of no more than 10 years in prison.
Shrivers is also charged with a single count of possession of a stolen firearm, a Glock, model 30 Gen 4, .45 caliber semi-automatic pistol. The charge carries a penalty of no more than 10 years in prison.
The Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, United States Secret Service, and the Louisville Metro Police Department are investigating these cases.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
####
Federal Jury Convicts Two Buffalo Men of Cocaine ConspiracyRead 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 following a two week trial, a federal jury has convicted Henry Lloyd, 34, and Roman Dunnigan, 41, both of Buffalo, NY, of conspiracy to distribute 500 grams or more of cocaine. Lloyd faces a mandatory minimum penalty of 10 years in prison, and a maximum of 40 years, while Dunnigan faces a mandatory minimum penalty of five years in prison and a maximum of 40 years.
Assistant U.S. Attorneys Jeremiah E. Lenihan and Charles E. Watkins, Jr., who handled the prosecution of the case, stated that on May 7, 2017, the defendants purchased last-minute airline tickets to travel from Buffalo to Houston, TX. Defendant Lloyd, who was on supervised release at the time as a result of a prior conviction, never sought permission from his probation officer to travel. The following day, May 8, 2017, Lloyd, along with two females, were stopped at the Buffalo Niagara International Airport by TSA Agents and found to be in possession jointly of $64,000, which was seized by the DEA. Lloyd, Dunnigan, and the two females rebooked a flight for the next day, traveling from Rochester, NY, to Houston, TX. The DEA learned of this flight and notified the DEA Resident Office in Houston.
A narcotics surveillance unit monitored the travel of Lloyd, Dunnigan, and the two females upon their arrival in Houston. As part of the surveillance, on May 10, 2017, Houston Police Department detectives observed Lloyd and Dunnigan purchase an Intex Inflatable Chair at a nearby Walmart. The next day on May 11, 2017, Houston police officers pulled over a rental vehicle driven by Dunnigan with Lloyd in the passenger seat. The stop occurred next to a U.S. Post Office, which authorities believed Dunnigan and Lloyd would be utilizing to send cocaine. Upon stopping the vehicle and speaking with both Lloyd and Dunnigan, the defendants told multiple lies to the officer, and were unable to keep their story straight. A K-9 sniff of the exterior of the vehicle revealed the presence of narcotics. During a search of the trunk, police officers located the Intex Inflatable Chair box, which contained approximately one kilogram of cocaine. Lloyd and Dunnigan were arrested and charged locally by the Houston Police Department.
Approximately three weeks later, the Erie County Sheriff’s Office, along with the DEA, executed a search warrant at 1807 Elmwood Avenue in Buffalo. During the search, investigators recovered 177 grams of cocaine, 344 grams of butyryl fentanyl, two empty Intex Inflatable Furniture boxes, paraphernalia used to package and process narcotics for distribution, $5,500 in cash, a receipt in Dunnigan’s name, and a firearm with Dunnigan’s DNA.
Defendants Lloyd and Dunnigan both have three prior convictions. Dunnigan has prior convictions for 2nd degree Robbery and 3rd degree Possession of a Loaded Firearm in NYS, and a federal conviction for structuring a financial transaction to evade reporting requirements. Lloyd has prior convictions for 4th degree Possession of a Firearm in NYS, and federal convictions for possession with intent to distribute narcotics, and conspiracy to commit money laundering.
The guilty verdict is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; the Houston Police Department, under the direction of Chief Art Acevedo; the Niagara Frontier Transportation Authority (NFTA) Police, under the direction of Chief George Gast; the Transportation Security Administration, under the direction of Brett O’Neil; the Erie County Central Police Services Forensic Laboratory, under the direction of Commissioner James Jancewicz; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; and the U.S. Probation Office, under the direction of Chief Probation Officer Anthony SanGiacomo.
Lloyd is scheduled to be sentenced on December 11, 2020, and Dunnigan is scheduled to be sentenced on December 16, 2020, both before U.S. District Judge Richard J. Arcara, who presided over the trial of the case.
# # # #
Federal Authorities Charge Nineteen with Voter FraudRead the Press Release
GREENSBORO, N.C. - Nineteen individuals have been charged with voter fraud and, in some instances, related offenses, announced United States Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to court charging documents, each defendant voted in a federal election in 2016. One defendant also voted in 2018. Non-citizens are not eligible to register to vote or to vote in federal elections.
On August 31, 2020, a federal grand jury indicted seven individuals as follows:
Charged with violations of Title 18, United States Code, Sections 611(a) (voting by non-citizen), 911 (claim of U.S. citizenship by non-citizen), and 1015(f) (false statement in a voter registration application):
- Francisco Antonio-Aguirre, age 64, of Dobson, NC (1:20CR351);
- Roob Kaur Atar-Singh, age 57, of Raeford, NC (1:20CR349);
- Rosalva Negrete-Toledo, aka Rosalva Cortes, age 65, of Winston-Salem, NC
- (1:20CR342);
- Dave Delano Virgil, age 57, of Winston-Salem, NC (1:20CR339);
- Eloy Alberto Zayas-Berrier, 70, of Pelham, NC (1:20CR348);
Charged with violations of Title 18, United States Code, Sections 611(a) (voting by non-citizen), 1425(a) (procure naturalization contrary to law), 1546(a) (false statement in an immigration document), 1015(a) (false statement in naturalization proceeding), and 1001(a)(2) (false statement to federal agent):
- Emmanuel Olakunle Atoyebi, age 31, of Greensboro, NC (1:20CR347);
Charged with violations of Title 18, United States Code, Sections 611(a) (voting by non-citizen), 911 (claim of U.S. citizenship by non-citizen), 1015(f) (false statement in a voter registration application), 1425(a) (procure naturalization contrary to law), 1546(a) (false statement in an immigration document), and 1015(a) (false statement in naturalization proceeding):
- Mokhtar Qaid Ahmed Gulaimid, age 48, of Raeford, NC (1:20CR338).
In addition, on August 13, 2020, twelve individuals were charged by Information with violating Title 18, United States Code, Section 611(a), a misdemeanor, which prohibits non-citizen voting in elections held to elect federal officials. They are:
- Ismay Prudence Kathleen James, age 54, of Burlington, NC (1:20CR317);
- Donald Christian Martyn, age 44, of Durham, NC (1:20CR318);
- Chaim Pinto, age 68, of Raeford, NC (1:20CR319);
- John Andrew Rapsky, age 54, of Chapel Hill, NC (1:20CR320);
- Baijoo Pottakulath Thomas, age 58, of Durham, NC (1:20CR321);
- Shuqin Yin, age 54, of Landis, NC (1:20CR322);
- Chirong Yin Billings, aka Chirong Cummings, age 56, of McLeansville, NC (1:20CR323);
- Henry Alberto Araya-Vega, age 52, of Winston-Salem, NC (1:20CR324);
- Rufina Concho-Locklear, age 82, of Greensboro, NC (1:20CR325);
- Alberto Damaize-Job, aka Alberto Damaize, age 73, of Greensboro, NC (1:20CR326);
- Armando Nava-Juarez, aka Armando Nava, age 51, of Linwood, NC (1:20CR327); and
- Manuel Efrain Valladares, age 48, of Concord, NC (1:20CR328).
The charged offenses carry the following penalties upon conviction:
- Title 18, United States Code, Section 611(a) -- a maximum term of one year imprisonment, a fine not to exceed $100,000.00, or both.
- Title 18, United States Code, Section 911 -- a maximum term of three years imprisonment, a fine not to exceed $250,000.00, or both.
- Title 18, United States Code, Section 1001(a)(2) -- a maximum term of five years imprisonment, a fine not to exceed $250,000.00, or both.
- Title 18, United States Code, Sections 1015(a), (f) -- a maximum term of five years imprisonment, a fine not to exceed $250,000.00, or both.
- Title 18, United States Code, Section 1425(a) -- a maximum term of ten years imprisonment, a fine not to exceed $250,000.00, or both.
- Title 18, United States Code, Section 1546(a) -- a maximum term of ten years imprisonment, a fine not to exceed $250,000.00, or both.
Charging instruments such as Indictments and Informations merely allege that crimes have been committed. Each defendant is presumed innocent until proved guilty beyond a reasonable doubt.
These matters were investigated by the Department of Homeland Security, Homeland Security Investigations.
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.
###
East Haven Man Pleads Guilty to Drug Distribution and Gun Possession ChargesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JESUS MANUEL VALLE, also known as “LoLo,” 24, of East Haven, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven narcotics distribution and firearm possession offenses.
According to court documents and statements made in court, law enforcement identified Valle’s residence on Charter Oak Avenue in East Haven as a hub of narcotics distribution activity. On February 5, 2020, investigators searched the residence and seized approximately 17 grams of heroin packaged for distribution, 35 grams of loose heroin, 17 grams of packaged cocaine, nine grams of packaged crack cocaine, items used to process and package narcotics for street sale, and a loaded Ruger .44 magnum handgun.
Valle pleaded guilty to one count of possession with intent to distribute heroin, cocaine and cocaine base (“crack”), which carries a maximum term of imprisonment of 20 years, and one count of possession of a firearm in furtherance of a drug trafficking crime, which carries a mandatory consecutive sentence of at least five years. Judge Meyer scheduled sentencing for November 25, 2020.
Valle is released on a $250,000 bond pending sentencing.
This matter is being investigated by the DEA Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force, the FBI Bridgeport Safe Streets Task Force and the East Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Joseph Vizcarrondo.
Eagle Butte Woman Sentenced for Meth TraffickingRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman convicted of Conspiracy to Distribute Methamphetamine was sentenced on September 2, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Cheyenne Brown, age 33, was sentenced to 144 months in federal prison, followed by 5 years of supervised release, a $500 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Brown was indicted by a federal grand jury on October 16, 2018. She pled guilty on June 16, 2020.
The conviction stemmed from a conspiracy beginning in January 2015, wherein Brown conspired others to distribute between 500 and 1.5 kilograms of methamphetamine in and around the Cheyenne River Indian Reservation in South Dakota.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Brown was immediately turned over to the custody of the U.S. Marshals Service.
Driver of Getaway Car Sentenced for Wichita RobberiesRead the Press Release
WICHITA, KAN. – A Wichita man was sentenced today to 115 months for driving the getaway car in a series of commercial robberies, U.S. Attorney Stephen McAllister said.
Shaiquille Harris, 27, Wichita, Kan., pleaded guilty to four counts of robbery and one count of unlawful possession of a firearm by a felon. In his plea, Harris admitted participating in robberies at the following stores:
- Kwik Shop, 710 W. 29th, Wichita, Kan.
- Kwik Shop, 3959 S. Hydraulic, Wichita, Kan.
- Kwik Shop, 3601 E. 47th South, Wichita, Kan.
- QuikTrip, 2821 E. 31st South, Wichita, Kan.
Harris admitted that in each case he drove and a co-defendant entered the store to commit the robbery.
Co-defendant Brelen VonFange, 28, Wichita, Kan., is awaiting trial.
McAllister commended the FBI, the Wichita Police Department and Assistant U.S. Attorney David Lind for their work on the case.
Dominican National Charged with False Identity CrimeRead the Press Release
BOSTON – A Dominican national was arrested and charged today in connection with fraudulently using the identity of a U.S. citizen.
Alexander Villalona Diaz, 34, formerly of Lawrence, was charged with one count of false representation of a Social Security number. Following an initial appearance, Villalona Diaz was detained pending a detention hearing scheduled for Sept. 4, 2020.
According to the charging document, Villalona Diaz used the Social Security number of a U.S. citizen on Aug. 16, 2016 to fraudulently renew a Massachusetts driver’s license and, between September 2012 and June 2018, to apply for MassHealth benefits.
The charging statute provides for a sentence of up to five 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; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Tonya Perkins, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Massachusetts State Auditor Suzanne M. Bump made the announcement. Assistant U.S. Attorney Adam W. Deitch of Lelling’s Major Crimes Unit is prosecuting the case.
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.
Developer Admits to Conspiring with First NBC Bank President to Defraud First NBC BankRead the Press Release
NEW ORLEANS – The United States Attorney’s Office announced that WARREN G. TREME (“TREME”), age 55, a resident of Metairie, Louisiana, pleaded guilty today to conspiracy to defraud First NBC Bank, the New Orleans-based bank that failed in April 2017.
According to court documents, from in or around 2008 through April 2017, TREME had a banking relationship with First NBC Bank, individually and through various entities he controlled. TREME also co-owned several entities with Ashton J. Ryan (“Ryan”), President of First NBC Bank. Because of this conflict of interest, Ryan should not have been involved with TREME’s loans. However, Ryan exercised authority over TREME’s loans with William J. Burnell (“Burnell”), the Bank’s Chief Credit Officer. Throughout TREME’s borrowing relationship at First NBC Bank, TREME lacked sufficient income and cash flow from his businesses to pay his loans and personal expenses. Ryan and Burnell disguised TREME’s true financial condition by making new loans to pay TREME’s existing loans. TREME is the third person to be charged for defrauding First NBC Bank through a business relationship with Ryan, while hiding the fraud from the Bank’s Board, auditors, and examiners. Jeffrey Dunlap, a contractor on Ryan’s project with TREME, has already pled guilty to conspiring with Ryan to fund both that project and his lifestyle by defrauding the Bank. More recently, Arvind “Mike” Vira was charged with conspiring to defraud the Bank, with Ryan’s help, by submitting false financial documents to the Bank while Ryan was personally borrowing from Vira. In addition, on July 10, 2020, a grand jury indicted Ryan, Burnell, First NBC Executive Vice President Robert B. Calloway, and borrower Frank J. Adolph for their roles in the conspiracy to commit bank fraud against First NBC, including fraud involving the TREME loans.
Court documents further describe a scheme by Ryan and Burnell to take $400,000 from TREME’s business partners as part of a settlement. Rather than using the $400,000 to pay down an outstanding loan debt owed by TREME and his business partners, Ryan and Burnell gave $300,000 to TREME. TREME spent the money on gambling, a trip to the Caribbean, and expenses related to a real estate development company TREME co-owned with Ryan. During a subsequent Board meeting, Ryan and Burnell falsely stated that the $300,000 was used to pay down the outstanding loan debt owed by TREME and his business partners.
“The FBI and our law enforcement partners have dedicated significant time and resources toward investigating the failure of FNBC, which resulted in nearly a billion dollar loss to the FDIC. Individuals like Mr. Treme who engage in fraudulent schemes that impact the security of financial institutions are being held accountable. His guilty plea today should be a deterrent to others who would attempt to defraud our nation's banking system,” said Bryan Vorndran, FBI New Orleans Special Agent in Charge.
“We will hold accountable those wrongdoers whose fraudulent actions materially impact financial institutions regulated and supervised by the Federal Reserve Board. I commend our agent and law enforcement partners for their hard work that ultimately led to today’s guilty plea,” said Stephen Donnelly, Acting Special Agent in Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection.
“We are pleased to join our law enforcement colleagues in bringing Mr. Treme to justice,” stated Laurie Younger, Special Agent in Charge of the Federal Deposit Insurance Corporation, Office of Inspector General.
TREME pleaded guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Sections 1344 and 1349. The maximum penalties that may be imposed upon conviction are thirty years in prison; a fine of $1,000,000, or the greater of twice the gain to TREME or twice the loss to any victim; up to five years of supervised release; and a $100 mandatory special assessment.
Judge Sarah S. Vance set TREME’s sentencing on January 6, 2021, at 10:30a.m.
This case is being investigated by the Federal Bureau of Investigation; the Federal Deposit Insurance Corporation, Office of Inspector General; and the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General. Assistant U.S. Attorneys Sharan E. Lieberman, Nicholas D. Moses, Matthew R. Payne, and J. Ryan McLaren are in charge of the prosecution.
* * *
Des Moines Man Charged with Sex Trafficking Eight VictimsRead the Press Release
DES MOINES, Iowa – Marlin Santana Thomas, age 45, of Des Moines, has been charged in federal court with sex trafficking eight victims announced United States Attorney Marc Krickbaum. In August, a United States Grand Jury filed a Superseding Indictment in the United States District Court charging Thomas with the offenses. Thomas appeared before a federal magistrate judge on September 2, 2020, and is currently detained in federal custody.
Thomas is charged with sex trafficking seven adult victims by force, threats of force, fraud, and coercion, and is alleged to have sex trafficked one minor victim. Thomas is charged with trafficking victims over nearly a decade, from as early as September 2009, up until February 2018. Thomas is also charged with distributing heroin to two victims, who were under the age of twenty- one, and with several related offenses, such as transporting victims out of state for the purpose of prostitution. In late February 2018, Thomas was arrested as part of a separate federal drug investigation, for which he is currently serving a federal prison term.
The public is reminded that charges contain only accusations and are not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
If convicted, Thomas is subject to a fifteen-year mandatory minimum prison term for sex trafficking by force, fraud, or coercion, up to life imprisonment. Sex trafficking of children 14 years of age and older, without the allegation of force, fraud, or coercion, carries a ten year mandatory minimum, and a maximum term of life in prison.
Human trafficking is a crime involving the exploitation of youth under the age of 18 for commercial sex; the exploitation of adults for commercial sex through the use of force, fraud, or coercion; and the exploitation of any individual for compelled labor. Human trafficking does not require the transportation of individuals across state lines, or that someone is physically restrained. Signs that a person is being trafficked can include working excessively long hours, unexplained gifts, physical injury, substance abuse issues, running away from home, isolation from others, or having a person in their life controlling them or monitoring them closely. Victims particularly susceptible to being trafficked include those with criminal histories, a history of physical or sexual abuse, uncertain legal status, and dependency on controlled substances.
Anyone who suspects human trafficking is occurring, be it a minor engaging in paid sex acts, or anyone being coerced into prostitution or labor, is urged to call the National Human Trafficking Hotline at 1-888-373-7888. If anyone has information about this defendant, Marlin Santana Thomas, they are urged to call the Des Moines Police Department Vice/Narcotics Office at 515-237-1516, or call the National Human Trafficking Hotline.
This case is being investigated by the Des Moines Police Department and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Defendant Sentenced to 100 Months in Federal Prison for Smuggling MethamphetamineRead the Press Release
NEWS RELEASE SUMMARY – September 1, 2020
SAN DIEGO – Oscar Luna-Aquino was sentenced in federal court yesterday to 100 months in prison for importing methamphetamine into the United States. A jury found Luna-Aquino guilty after a two-day trial in February 2020.
At trial, the Government’s evidence established that Luna-Aquino drove a car into the United States at the San Ysidro, California, Port of Entry on October 16, 2019. An inspection of the vehicle revealed 95 pounds of 99% pure methamphetamine concealed under the windshield and in the front fenders, rear quarter panels, and spare tire. The wholesale value of the methamphetamine was at least $80,000. The Government also presented evidence from Luna-Aquino’s cell phone showing that he not only knew of the drugs in his car on October 16, but also that he had successfully smuggled narcotics into the United States on three prior occasions
When handing down the sentence, U.S. District Court Judge Larry A. Burns emphasized the large amount of methamphetamine, the prior smuggling incidents, and the danger of methamphetamine and the personal destruction the drug causes.
“The extremely potent meth smuggled from Mexico contributes to more deaths in San Diego County than opioids. And many deaths result from poly-drug use, most of which involve meth as a significant aggravating factor,” said U.S. Attorney Robert Brewer. “The sentence set forth today recognizes the severe harm meth inflicts on our community.” U.S. Attorney Brewer commended Assistant U.S. Attorneys Eric Olah and Seth Askins, as well as Homeland Security Investigations and Customs & Border Protection for their work on this case.
DEFENDANT Criminal Case No. 3:20-CR-439-LAB
Oscar Luna-Aquino Age: 34 Residence: Mexico
SUMMARY OF CHARGE
21 U.S.C. §§ 952/960
Maximum Penalties: life imprisonment; $10,000,000 fine.
INVESTIGATING AGENCIES
Homeland Security Investigations
Customs and Border Protection
Court Finds Individual and Company Liable for Violating the Clean Water Act when Filling Sensitive Tidal Channels and MarshRead the Press Release
In an order issued Tuesday, the U.S. District Court for the Eastern District of California agreed with the Justice Department that John Sweeney and his company, Point Buckler Club LLC, committed “very serious” violations of the Clean Water Act associated with the construction of a nearly mile-long levee in sensitive tidal channels and marsh without a permit.
The violations occurred on Point Buckler Island, an island in the greater San Francisco Bay that Sweeney had purchased in 2011. More particularly, Point Buckler Island is part of the Suisun Marsh, the largest contiguous brackish water marsh remaining on the west coast of North America. The Island is located in a heavily utilized fish corridor and is critical habitat for several species of federally protected fish.
When Sweeney acquired the Island, nearly 40 acres of it supported and functioned as a tidal channel and tidal marsh wetlands system. As the court found, at that time Sweeney knew that Solano County, California, had zoned it as “Marsh Land.” Sweeney had also, by that time, sought and obtained a Clean Water Act permit for activities in other areas of the Suisun Marsh.
Beginning in 2014, without a permit, Sweeney excavated and dumped thousands of cubic yards of soil directly into the Island’s tidal channels and marsh. This unlawful conduct, the court found, eliminated tidal exchange, harmed aquatic habitat, and adversely impacted water quality. The court noted that the Island’s waters are “extremely acidic and saline.”
As the court’s order provides, further proceedings will be conducted to determine the appropriate remedy.
“We are pleased the court agreed that defendants committed serious Clean Water Act violations,” said Jonathan D. Brightbill, Principal Deputy Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division. “Point Buckler Island is part of a vital tidal marsh ecosystem, and the court’s decision serves to protect that. We look forward to the next phase of this important case.”
“We applaud the trial court’s decision to hold the defendants liable for their violations of the Clean Water Act, which resulted in serious damage and destruction to nearly 30 acres of tidal marsh located in the greater San Francisco Bay,” said Susan Bodine, Assistant Administrator for the Environmental Protection Agency’s Office of Enforcement and Compliance Assurance.
The case is styled United States of America v. John Donnelly Sweeney and Point Buckler Club, LLC, No. 2:17-cv-00112-KJM-KJN (E.D. Cal.). The court’s decision is available through the court’s website, www.caed.uscourts.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Convicted felon sent to prison again for having illegal gunsRead the Press Release
HOUSTON – A 34-year-old resident of Houston has been ordered to prison for a second time following his conviction of illegally possessing firearms and ammunition, announced U.S. Attorney Ryan K. Patrick.
Joffre Cross III pleaded guilty Feb. 5.
Today, Chief U.S. District Judge Lee Rosenthal ordered Cross to serve 57-month sentence to be immediately followed by three years of supervised release. At the hearing, the court discussed additional information including his prior conviction pertaining to the theft and sale of controlled substances from a military hospital while Cross was in the U.S. Army. In handing down the sentence, Judge Rosenthal increased the term of imprisonment due to the number of firearms Cross had built himself.
On Feb. 20, 2019, authorities executed a federal search warrant at the Cross residence. Upon entry, they located an AK-style rifle and approximately 2200 rounds of ammunition.
Having been convicted in April 2008 in North Carolina federal court for distribution of controlled substances, he is prohibited per federal law of possessing any firearms or ammunition.
At the time of the search they also found a homemade pistol and three homemade rifles.
“Preventing potentially violent criminal activity by intercepting illegally obtained firearms and thousands of rounds of ammunition is at the core of the ATF mission,” said Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “Leveraging our partnerships to disrupt the shooting cycle remains our focus.”
Cross has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and ATF conducted the investigation. Assistant U.S. Attorney Steven Schammel is prosecuting the case.
Columbia Man Sentenced for Arson at Planned Parenthood ClinicRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Missouri, man was sentenced in federal court today for the arson at the Columbia Health Center (operated by Planned Parenthood Great Plains).
“This defendant’s criminal behavior placed the community in an unacceptable risk of danger,” Garrison said. “We will not tolerate the use of violence and arson as a means to achieve personal political or policy goals. This attack is the antithesis of everything for which the best ideals of this nation have always stood.
“The FBI special agents on this difficult case exemplified outstanding investigative skills in locating and evaluating the evidence that enabled us to identify the arsonist and quickly bring him to justice,” Garrison added.
Wesley Brian Kaster, 43, was sentenced by U.S. District Judge Brian C. Wimes to five years in federal prison without parole.
On Nov. 21, 2019, Kaster pleaded guilty to one count of maliciously using explosive materials to damage a building owned by an organization that receives federal financial assistance, and one count of violating the Freedom of Access to Clinic Entrances Act. Kaster has remained in federal custody without bond since his arrest on March 2, 2019.
Kaster admitted that he manufactured a Molotov cocktail on Feb. 10, 2019. On the same day, he broke the glass in the north entry door of the Columbia Health Center at 711 N. Providence Road and threw the Molotov cocktail into the facility. At approximately 4:10 a.m., the Columbia Fire Department arrived on the scene, investigated the damage caused by the explosive device, and collected evidence. Kaster admitted that he took these actions because Planned Parenthood provided reproductive health services at the facility.
This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Columbia, Mo., Police Department, the Missouri State Highway Patrol, and the FBI.
Colorado Man Found Guilty for Interstate Travel and Enticement of a MinorRead the Press Release
United States Attorney Joe Kelly announced that on September 2, 2020, Nathan Lee Kempter of Highlands Ranch, Colorado was found guilty following a jury trial before Chief United States District Judge John M. Gerrard of enticement of a minor and travel with intent to engage in illicit sexual conduct. Kempter will be sentenced on December 11, 2020, and faces up to life in prison on the two counts.
In August of 2019, the Lincoln Police Department was contacted regarding the missing status of a 14-year-old female who had left a Lincoln, Nebraska residence through the back door and was no longer in the area. The reporting party indicated that the minor female had been overheard talking to someone on the phone. After a quick initial search of the neighborhood, the police were contacted. Reports to investigators indicated that the victim girl was observed getting into a smaller, red, four door SUV and leaving the area. Lincoln Police reviewed the victim’s phone for additional information and identified a Colorado telephone number that the victim had called. LPD was able to identify the number as belonging to Nathan Kempter who resided in Highlands Ranch, Colorado. Kempter was also the registered owner of a red 2015 Nissan Versa. With assistance from the cellular phone company, LPD was able to track the movement of Kempter’s cellphone and determined it was located just across the Nebraska/Colorado border on Interstate 76. Lincoln Police contacted law enforcement authorities in Colorado.
On August 02, 2019 at 11:54 p.m., Douglas County, Colorado Sheriff’s deputies saw the red Nissan Versa driving toward Kempter’s residence in Highlands Ranch, Colorado. Deputies stopped the vehicle in front of the residence and Kempter was arrested. At that time, Kempter informed the deputies that the young girl in his vehicle was 14 years old.
Later, the victim stated she met Kempter on the Reddit website, in a chat room for teen runaways. Her screen name indicated she was a 14-year-old female. After communicating with Kempter on Reddit, they moved their conversation to Tumblr, another social media platform, and exchanged message between July 23, 2019 and August 2, 2019. They exchanged e-mails. During these conversations, Kempter indicated he wanted to have sex with the minor victim and would bring her to Colorado to live with him.
The victim said that Kempter picked her up at her residence and began to drive west on Interstate 80. She was told to lay down in the front seat and cover herself so that she would not be seen. She said at some point while they were still in Nebraska, Kempter stopped at a Walmart so that he could buy her new clothes. Evidence obtained in a search of Kempter’s vehicle revealed the purchase of boy’s pants and shirt, and a blanket. The victim was told what to say and do if they were contacted by anyone in an attempt to avoid detection.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Lincoln Police Department, the Douglas County Sheriff’s Department in Colorado and the Federal Bureau of Investigation.
Clarksburg Federal Grand Jury indicts several on firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Five West Virginia residents are facing charges involving firearms, U.S. Attorney Bill Powell announced.
A federal grand jury sitting in Clarksburg indicted the following people on various firearms violations in separate indictments:
• Cheyann Ciarra Hammonds, 25, of Morgantown, West Virginia
• Andrew Douglas Packard, 30, of Morgantown, West Virginia
• Mark Allen Riffle, 31, of Clarksburg, West Virginia
• Willie E. Robinson, Jr., 62, of Fairmont, West Virginia
• Damon Sturgeon, 41, of Mannington, West VirginiaAssistant U.S. Attorney Andrew R. Cogar is prosecuting the Hammonds case on behalf of the government. Assistant U.S. Attorney Sarah E. Wagner is prosecuting the Packard and Robinson cases on behalf of the government. Assistant U.S. Attorney Zelda E. Wesley is prosecuting the Riffle ad Sturgeon cases on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated all five cases. The Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative; assisted in the Riffle investigation. The Morgantown Police Department assisted in the Packard investigation. The Fairmont Police Department assisted in the Robinson investigation. The Marion County Sheriff’s Office and the Mannington Police Department assisted in the Sturgeon case.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Hammonds Indictment Sturgeon Indictment Robinson Indictment Packard Indictment Riffle IndictmentCivilian Navy Engineer, 3 Others Arrested on Federal Charges Alleging Theft and Sale of Government-Owned Technical InformationRead the Press Release
LOS ANGELES – Federal authorities this morning arrested four defendants across the country on charges alleging a civilian employee of the United States Navy downloaded technical drawings and manuals related to U.S. military weapons systems and sold the items to a Newport Beach company, which later resold the documents to domestic and foreign customers.
The arrests were made pursuant to a criminal complaint filed in United States District Court in Los Angeles that charges all four defendants with theft of government property. The affidavit in support of the complaint alleges that the thefts have been occurring since at least 2012, and possibly since 2008.
The four defendants arrested this morning are:
- Mark Fitting, 53, of Berlin, New Jersey, an engineer employed by the Navy at a facility in Philadelphia;
- Melony Erice, 54, of Lighthouse Point, Florida, who formerly cohabitated with Fitting in New Jersey;
- George Posey IV, 36, of Costa Mesa, an employee of Newport Aeronautical Sales Corporation (NASC), a Newport Beach company that sells technical aircraft data; and
- Dean Mirabal, 52, of Costa Mesa, another NASC employee.
All four defendants are expected to make initial appearances in federal court in the districts in which they were arrested. For example, Posey and Mirabal are expected to appear this afternoon in United States District Court in Santa Ana.
The investigation started when military investigators began looking at Fitting in relation to claims that he “was interfering with the quality assurance process for aircraft canopies intended for use in U.S. military aircraft,” according to the affidavit. The agents with the Defense Criminal Investigative Service (DCIS) and the Naval Criminal Investigative Service (NCIS) discovered two dozen emails from Fitting’s Navy email account to Erice’s Gmail account, all of which contained government-controlled technical drawings or manuals related to various military weapons systems, including aircraft.
“[S]ome of those drawings and manuals were specifically labeled with International Traffic in Arms Regulations (ITAR) distribution warnings related to export control and destruction, as well as DOD contractor proprietary markings,” the affidavit alleges.
Investigators have concluded that Fitting also had access to Erice’s Gmail account, which allowed both of them to sell the documents and drawings to NASC. “[B]etween September 21, 2012, and June 20, 2019, Fitting and Erice together unlawfully sold NASC at least 5,000 government-controlled technical manuals and drawings,” according to the affidavit.
Over the same nearly seven-year period, NASC issued Erice 150 checks totaling $509,845, but the two shared the proceeds of the sales, as evidenced by Fitting having access to one of Erice’s bank accounts and Erice being an authorized user on one of Fitting’s credit cards, according to the affidavit. Furthermore, the affidavit contains a lengthy email from Erice to Fitting obtained pursuant to a search warrant that outlines how Fitting was entitled to 75 percent of the proceeds, with the balance going to Erice.
The affidavit outlines how Fitting and Erice obtained documents and sold them to NASC, sometimes obtaining specific documents at the request of NASC. “In one such instance, on December 8, 2018, at the request of Mirabal, Fitting accessed and downloaded a government-controlled technical drawing for a military landing craft air cushion that he and ERICE sold to NASC, along with at least 16 other government-controlled technical drawings and/or manuals, for $5,025,” the affidavit states. “Knowing the drawing was unlawfully procured outside of official government channels, Posey paid Erice for the drawing,” which NASC sold to a customer.
The affidavit notes that Fitting was allowed to access military computer systems after promising to safeguard controlled data. The affidavit also notes that Posey and Mirabal “are aware of the appropriate processes to procure government-controlled technical manuals and drawings and, as a result, they know that the acquisition of such manuals and drawings from Erice and/or Fitting is unlawful.”
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The felony offense of theft of government property carries a statutory maximum sentence of 10 years in federal prison.
This case is being investigated by DCIS; NCIS; Homeland Security Investigations; and the Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement. These agencies received assistance from the U.S. Air Force’s Office of Special Investigations and U.S. Army’s Criminal Investigation Command.
This case is being prosecuted by Assistant United States Attorney Keith Ellison of the International Narcotics, Money Laundering, and Racketeering Section.
Baltimore Man Indicted on Federal Charges for Possession and Distribution of Child PornographyRead the Press Release
Baltimore, Maryland – A federal grand jury in Maryland has returned an indictment charging Gary Rocky Jones, age 41, of Baltimore, Maryland, with distribution and possession of child pornography. The indictment was returned and Jones was arrested on September 1, 2020. Jones had his initial appearance today in U.S. District Court in Baltimore. U.S. Magistrate Judge Beth P. Gesner ordered that Jones be detained pending a detention hearing scheduled for September 9, 2020 at 11:30 a.m.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to the two-count indictment, on April 2, 2018, Jones distributed a video of an adult male sexually assaulting a prepubescent male. From January 22, 2020, through January 31, 2020, Jones allegedly used an internet-based file storage account affiliated with his e-mail addresses which contained one or more images of child pornography, including images of prepubescent minors engaged in sexually explicit conduct.
Jones has previous convictions for aggravated sexual abuse of a minor or abusive sexual conduct involving a minor. Specifically, on July 21, 2004, and June 8, 2006, in the Circuit Court for Baltimore City, Jones was convicted of two counts of assault in the second degree and two counts of sexual offense in the second degree, respectively.
If convicted, Jones faces a mandatory minimum sentence of 15 years and a maximum sentence of 40 years in federal prison for distribution of child pornography; and a mandatory minimum of 10 years and a maximum of 20 years in federal prison for possession of child pornography. 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.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI and the Baltimore Police Department Sex Offender Registry Unit for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Paul Budlow, who is prosecuting the case.
# # #
Baltimore County Man Pleads Guilty to Federal Charges Related to His Impersonation of a Federal Officer to Commit Credit Card Fraud and Aggravated Identity TheftRead the Press Release
Baltimore, Maryland – Igor Cooper Rosensteel, age 29, of Middle River, Maryland, pleaded guilty to access device fraud and aggravated identity theft. Rosensteel admitted that he posed as a Secret Service Agent to gain the trust of his victims, then exploited them, stealing bank checks and credit cards, among other things. The guilty plea was entered on September 1, 2020.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Bo Keane of the United States Secret Service - Baltimore Field Office; and Lieutenant Colonel Kevin M. Anderson, Chief of the Maryland Transportation Authority Police.
According to his guilty plea, on August 3, 2018, Rosensteel was driving in Baltimore when he was pulled over by Maryland Transportation Authority Police for driving with a suspended license. When the patrol officer requested Rosensteel’s license and registration, Rosensteel instead pulled a law enforcement badge from his pocket, placed it on his lap and told the officer that he was a Secret Service Agent. The officer detected the odor of alcohol emanating from the vehicle and believed that Rosensteel was attempting to use his law enforcement badge to get out of a traffic ticket. Rosensteel was transported to the police station and continued to maintain that he was a law enforcement officer. Local police contacted the U.S. Secret Service in Washington, D.C. A background investigation revealed that Rosensteel had never worked as an officer or employee of the U.S. government. After real Secret Service agents traveled to the police station in Baltimore, Rosensteel finally admitted that he had lied about being an agent and that the badge was fake.
As detailed in his plea agreement, additional investigation revealed that from approximately January 2017 through February 2019, Rosensteel falsely held himself out to be a federal law enforcement officer and he used this law enforcement status to defraud at least eight victims. Specifically, Rosensteel used his law enforcement status to get everything from free parking and food in restaurants, to gaining the trust of women he met online. Using his phony law enforcement persona to create a sense of security and trust, Rosensteel then exploited his victims by cashing out bank loans in the victims’ names, saddling them with resulting debt and fees. After being invited into victims’ homes, Rosensteel admitted that he surreptitiously searched their belongings, stealing keys, bank checks, and credit cards, then used those items to go on lavish spending sprees, with resulting losses of more than $20,000.
Rosensteel faces a maximum sentence of 10 years in federal prison for access device fraud and a mandatory two years in federal prison, consecutive to any other sentence imposed, for aggravated identity theft. 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 Ellen L. Hollander has scheduled sentencing for November 10, 2020 at 10:00 a.m.
United States Attorney Robert K. Hur commended the U.S. Secret Service, the Maryland Transportation Authority Police for their work in the investigation, and recognized the Anne Arundel County Police Department, and the Baltimore County Police Department for their assistance. Mr. Hur thanked Assistant U.S. Attorney Christine Duey, who is prosecuting the case.
# # #
Assistant Attorney General Makan Delrahim Signs Antitrust Cooperation Framework with Australia, Canada, New Zealand, and United KingdomRead the Press Release
Today, Assistant Attorney General Makan Delrahim signed a new competition enforcement framework between the Department of Justice (DOJ), the Federal Trade Commission, and competition agencies in Australia, Canada, New Zealand, and the United Kingdom.
The Multilateral Mutual Assistance and Cooperation Framework for Competition Authorities (Framework) aims to strengthen cooperation between the signatories, and provides the basis for a series of bilateral agreements among them focused on investigative assistance, including sharing confidential information and cross-border evidence gathering.
Building on the antitrust agencies’ existing cooperation arrangements, the Framework includes a memorandum of understanding designed to reinforce and improve existing case coordination and collaboration tools among the agencies, and a model agreement. The model agreement is expected to serve as a template for subsequent agreements among signatories that would permit enhanced cooperation in both criminal and civil non-HSR matters. The framework recognizes that signatories will use best efforts to negotiate and implement bilateral agreements with one another based on the model agreement.
“The Framework sets a new standard for enforcement cooperation, strengthening our tools for international assistance and evidence gathering in the increasingly digital and global economy,” said Assistant Attorney General Delrahim. “We hope that it will provide a model for agencies around the world interested in enhancing international cooperation. DOJ looks forward to continuing this important work through the negotiation of the bilateral agreements contemplated in the Framework.”
Joining Assistant Attorney General Delrahim in signing the Framework were Chairman Joe Simons of the Federal Trade Commission, Chairman Rod Sims of the Australian Competition and Consumer Commission, Commissioner of Competition Matthew Boswell of Competition Bureau Canada, Chair Anna Rawlings of the New Zealand Commerce Commission, and Chief Executive Andrea Coscelli of the United Kingdom Competition and Markets Authority. Due to the Covid-19 pandemic, the agreement was signed separately in each jurisdiction in near-simultaneous fashion, allowing the agencies to come together virtually to reaffirm the importance of international cooperation even in these extraordinary times.
The U.S. antitrust agencies are authorized to enter into such agreements under the International Antitrust Enforcement Assistance Act of 1994 (IAEAA), and the U.S. agencies already have an IAEAA agreement with Australia from 1999.
Armed Tenderloin Drug Trafficker Sentenced to More Than Three Years in PrisonRead the Press Release
SAN FRANCISCO – Brazil Harris was sentenced today to three years and four months in prison for being a felon in possession of a firearm and possessing pills containing methamphetamine with the intent to distribute them, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett
Harris pleaded guilty on February 11, 2020, to being a felon in possession of a firearm and to possessing methamphetamine with the intent to distribute it. According to the plea agreement, Harris admitted that on October 19, 2019, he was driving his vehicle near the intersection of Golden Gate Avenue and Larkin Street in the Tenderloin neighborhood of San Francisco, when San Francisco Police Department Officers stopped him for committing a traffic violation. At that time, Harris had in the glove compartment of his vehicle a Springfield XDS .45 caliber semiautomatic pistol, which was loaded with three rounds of ammunition. Harris also possessed in his pants a bottle containing approximately 275 pills, some of which contained methamphetamine. Harris admitted that he possessed the pills with the intent to distribute them. Officers also found approximately $260 on Harris. Harris previously had been convicted of a felony punishable by imprisonment for more than one year and therefore he was prohibited from possessing a firearm.
Harris, 30, of San Francisco, California, was indicted by a federal grand jury on January 23, 2020. He was charged with being a felon in possession of a firearm and with possessing a mixture and substance containing methamphetamine with the intent to distribute it.
San Francisco’s Tenderloin neighborhood has been especially severely impacted by illegal drug dealing. “San Francisco’s Tenderloin neighborhood is known to users and dealers throughout the Bay Area as a place to buy illegal drugs,” according to local law enforcement. Indeed, more than half of all the drug sales incidents booked or cited by the San Francisco Police Department took place in the Tenderloin district—specifically, “56 percent … by far the highest of any police district in the City” in fiscal year 2017–2018.
Assistant U.S. Attorney Kristina Green is prosecuting the case with the assistance of Morgan Byrne. The prosecution is the result of an investigation by the Drug Enforcement Administration and the San Francisco Police Department. This case is part of the Federal Initiative for the Tenderloin, a multi-agency effort spearheaded by the U.S. Attorney’s Office focusing on fighting crime in the Tenderloin neighborhood of San Francisco.
The sentence was handed down by The Honorable William H. Alsup, U.S. District Court Judge, following a guilty plea on two counts: felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1); and possession with intent to distribute a mixture and substance containing methamphetamine, in violation of 21 U.S.C. § 841(a)(1). Judge Alsup also sentenced the defendant to a three-year period of supervised release. Harris has been in custody since February 3, 2020.
Kristina Green is the Assistant U.S. Attorney who is prosecuting the case. The prosecution is the result of an investigation by the San Francisco Police Department and Federal Bureau of Investigation.
Acting U.S. Attorney Announces Extradition of Dominican Citizen for Narcotics Trafficking Through Sham Internet PharmacyRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Susan A. Gibson, the Special Agent in Charge of the New Jersey Division of the Drug Enforcement Administration (“DEA”), and James Buthorn, the Inspector in Charge of the New Jersey Office of the United States Postal Inspection Service (“USPIS”), announced today that JOSE FRANCISCO GUZMAN-CABRERA, a citizen of the Dominican Republic, was extradited yesterday from the Dominican Republic. GUZMAN-CABRERA is charged with conspiracy to distribute controlled substances, including oxycodone, hydrocodone, the fentanyl analogue p-fluoroisobutyryl fentanyl, and the synthetic opioid U-47700, distribution of controlled substances over the Internet, and conspiracy to commit money laundering, in connection with a large-scale drug distribution operation purporting to be an online pharmacy. GUZMAN-CABRERA was arrested on July 3, 2020, in the Dominican Republic, and was presented today before U.S. Magistrate Judge James L. Cott. GUZMAN-CABRERA’s case is assigned to U.S. District Judge Sidney H. Stein.
Acting U.S. Attorney Audrey Strauss said: “As alleged, Jose Francisco Guzman-Cabrera was the kingpin of a drug trafficking organization that distributed dangerous opioids to individuals throughout the United States through a website purporting to be an online pharmacy. Thanks to the outstanding investigative work of the DEA and USPIS, Guzman-Cabrera is now in United States custody and facing prosecution in this District.”
DEA Special Agent in Charge Susan A. Gibson said: “This investigation reinforces the dangers of purchasing narcotics through the internet. Mr. Guzman-Cabrera may have felt he was safe allegedly operating his drug trafficking organization from a foreign country, but great investigative work led to his arrest and extradition to the United States to face justice.”
USPIS Inspector in Charge James Buthorn: “As alleged, Guzman-Cabrera put citizens across the United States in harm’s way through his criminal syndicate, intentionally disregarding people’s safety. No border will stop the United States Postal Inspection Service from bringing alleged criminals like Guzman-Cabrera to justice. We are proud of our partnerships both domestic and international, as well as our technological and analytical advancements in the recent years that are bringing positive results, making cases like this possible. Illicit narcotics traffickers, utilizing the open web or dark web, should know we are coming for you. I would also like to stress to the public the need to research your online pharmaceutical vendors, ensuring the medicines you order are safe. I commend the agents and inspectors on the successful outcome of this case.”
According to the allegations in the Indictment unsealed today in Manhattan federal court,[[1]] other court filings, and statements made during court proceedings:
Law enforcement agents began investigating an online pharmacy website (the “Pharmacy Website”) following an overdose death of a victim in Boise, Idaho, on or about March 17, 2017, whose death was caused by elevated levels of multiple prescription opioids as well as fentanyl. The victim’s computer showed that he had repeatedly ordered painkillers from the Pharmacy Website, paying thousands of dollars for these drugs. The subsequent investigation revealed that the Pharmacy Website was selling pills to customers located throughout the United States, and that GUZMAN-CABRERA led the drug trafficking organization that operated the Pharmacy Website. In the course of the investigation, undercover law enforcement agents conducted multiple purchases of controlled substances from the Pharmacy Website. The substances purchased by undercover law enforcement agents included oxycodone and hydrocodone.
The investigation has revealed that in some cases, customers purchased what they believed to be prescription drugs such as alprazolam or oxycodone from the Pharmacy Website, but instead received pills containing other substances. In 2018, law enforcement agents searched a residence in New Jersey that the Pharmacy Website used as a distribution center, and seized approximately 100,000 pills, including pills containing the fentanyl analogue p-fluoroisobutyryl fentanyl and pills containing U-47700, both of which are powerful synthetic opioids that have no recognized medical use in the United States.
As alleged, GUZMAN-CABRERA, from at least 2013 through 2018, was the head of the drug trafficking organization that operated the Pharmacy Website. GUZMAN-CABRERA, who was based in the Dominican Republic, coordinated the purchase of pills and tablets from sources overseas, and shipped these drugs to co-conspirators who operated drug distribution centers located in the United States. After customers placed orders for drugs on the Pharmacy Website, GUZMAN-CABRERA directed his co-conspirators to mail the drugs to these customers. The drug trafficking organization then sent the proceeds from the sales, totaling millions of dollars, from the United States to the Dominican Republic through a variety of means, including money remitters, money couriers, and wire transfers between United States and Dominican Republic-based shell company bank accounts.
* * *
GUZMAN-CABRERA, 41, of the Dominican Republic, has been charged with one count of conspiracy to distribute controlled substances, one count of distribution of controlled substances over the Internet, and one count of conspiracy to commit money laundering, each of which carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the DEA’s New Jersey Division, its Boise Division, and its Santo Domingo Country Office, and the USPIS. She also thanked the Dominican Government’s National Directorate for Drug Control (DNCD) and the United States Marshals Service for their assistance in the case, as well as the U.S. Department of Justice’s Office of International Affairs of the Department’s Criminal Division for its significant assistance in securing the defendant’s extradition from the Dominican Republic.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorney Thane Rehn is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment and charges set forth herein constitute only allegations, and every fact described should be treated as an allegation.
10 Central Ohio men, 1 Canadian charged with conspiring to illegally smuggle guns to Canada for profitRead the Press Release
COLUMBUS, Ohio – Federal agents arrested seven men today in connection with a conspiracy to illegally traffic firearms to Canada.
A federal grand jury charged the co-conspirators in an indictment returned on Aug. 19 and unsealed this afternoon.
According to the indictment, the defendants acquired firearms both legally and illegally, stockpiled the firearms, and smuggled them to Canada in order to re-sell them for a profit.
It is alleged the group bought guns both through private sales and through straw purchases at gun shows.
For example, in April 2019, co-conspirators allegedly caused two individuals to conduct straw purchases of four firearms at the C&E Gun Show at the Ohio Expo Center in Columbus.
Defendants would allegedly recruit female drivers to smuggle firearms across the border or to bring money back from Canada through promises of a free trip to Canada, payment, and access to drugs and alcohol.
In July 2018, more than $11,000 was seized by law enforcement from two of the defendants on one trip back to Ohio from Canada. Two months later, according to the indictment, more than $25,000 in cash was seized from two other defendants at the John Glenn International Airport.
The indictment details that on various occasions in 2019, individuals related to the conspiracy attempted to travel to Canada and were stopped by law enforcement. During each incident, multiple firearms were discovered in the vehicles.
In total, it is believed that the defendants conspired to smuggle more than 30 guns from Ohio to Canada from approximately July of 2018 through about the middle of 2019.
Those charged in the conspiracy include:
Name
Also Known As
Age
City of Residence
Omar Sharif Mohamed Hassan
O-Bandz
25
Columbus, Ohio
Jamil Jamal Abdalla
21
Columbus, Ohio
Mohamed Abdulkadir Mohamud
Bash
22
Columbus, Ohio
*Mohamed Abdi Hirad
Mo Trippin’, Trippin’
20
Columbus, Ohio
Abdirahim Mahmoud Dualeh
A.D.
24
Columbus, Ohio
*Shamarke Igal
Marke
24
Columbus, Ohio
Ahmed Ahmed
Seven
21
Columbus, Ohio
Abdiaziz Said Ahmed
Breezy
25
Columbus, Ohio
Ibrahim Ali
Ebey
24
Columbus, Ohio
*Mohamed Sharif Ali Mohamed
MoMo
22
Columbus, Ohio
Hussein Ahmed
23
Toronto, Canada
* Currently a fugitive
David M. DeVillers, United States Attorney for the Southern District of Ohio; Roland Herndon, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Columbus Police Chief Thomas Quinlan; United States Marshal Pete Tobin; Ohio Highway Patrol Superintendent Lt. Col. Richard Fambro; and Franklin County Sheriff Dallas Baldwin announced the charges. Assistant United States Attorneys S. Courter Shimeall and Kelly A. Norris are representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
The United States Marshals Service asks anyone with information regarding the location of the fugitives to submit an anonymous tip via text message to the USMS Southern Ohio Fugitive Apprehension Strike Team. Text keyword “SOFAST” along with your tip to 847411.
# # #
1 September 2020
Volunteer and Former Employee of Minneapolis Charter School Sentenced to 20 Years in Prison for Child PornographyRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of JOSIAH RAUL MOSQUEDA, 28, to 20 years in federal prison. MOSQUEDA, who pleaded guilty to one count of production of child pornography on December 6, 2019, was sentenced today before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota.
“The defendant was a school employee with direct access to students. He presented himself as someone the students could trust and rely on,” said United States Attorney Erica H. MacDonald. “Instead of being that trusted adult, he exploited that trust, groomed young and vulnerable victims, and preyed upon them for his own sexual gratification. I am grateful the Court recognized this egregious conduct and sentenced him accordingly.”
According to the defendant’s guilty plea and documents filed with the court, MOSQUEDA was a volunteer and former employee of a Minneapolis charter school and a volunteer at a different Minneapolis middle school. MOSQUEDA used social media and electronic communication platforms – specifically Skype, Facebook Messenger, Instagram, Twitter, Kik, WhatsApp, and Snapchat – to communicate with at least ten minor male victims. MOSQUEDA repeatedly solicited the victims to send him naked images of themselves, or videos of sexually explicit acts. MOSQUEDA would suggest in-person sexual encounters and offered economic or other favors in exchange for sexual contact. MOSQUEDA also engaged the victims in sexually explicit conversations and sent sexually explicit pictures of himself to victims. In addition to his conduct involving known victims, MOSQUEDA sought out and curated a collection of additional images and videos containing child pornography on his laptops and cell phone.
In issuing today’s ruling, the Court described MOSQUEDA as a serial sexual predator and “a wolf who pretended to be a shepherd in order to gain access to the sheep.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s 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 www.justice.gov/psc.
This case is the result of an investigation conducted by the Minnesota Bureau of Criminal Apprehension.
This case was prosecuted by Special Assistant U.S. Attorney Lindsey Middlecamp and former Assistant U.S. Attorney Carol M. Kayser.
Defendant Information:
JOSIAH RAUL MOSQUEDA, 28
Minneapolis, Minn.
Convicted:
- Production of child pornography, 1 count
Sentenced:
- 20 years in prison
- 10 years of supervised release
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Violent crime increasing in Yellowstone CountyRead the Press Release
BILLINGS – Violent crime in Yellowstone County has increased significantly since COVID-19 appeared in Montana, a trend law enforcement attribute to methamphetamine and domestic violence, federal and local law enforcement officials announced today.
Yellowstone County has had 67 more victims of murder, robbery and aggravated assault this year for the months March through July than there were for the same period in the previous year, almost a 21 percent increase. The crimes include eight murders, more than occurred in all of 2019, along with numerous non-fatal shooting and stabbings. Robberies have also increased 44 percent.
U.S. Attorney Kurt Alme, Yellowstone County Attorney Scott Twito, Yellowstone County Sheriff Mike Linder and Billings Police Chief Rich St. John discussed the increasing violence during a press conference on the Yellowstone County Courthouse Lawn.
“Those who push meth will be caught and prosecuted to the full extent of the law. In addition, those with a firearm after committing domestic violence or receiving a restraining order will be prosecuted federally. I want to thank our federal, state and local law enforcement for confronting this violence in spite of risks from COVID, and our prosecutors and staff for their hard work during this time. Now more than ever, I also urge our community to support our crisis and drug treatment services through Yellowstone Substance Abuse Connect,” U.S. Attorney Kurt Alme said.
"Despite the efforts of our law enforcement we continue to see an increase in violent crime in Billings and Yellowstone County. COVID has added tremendous amounts of stress to this community, including the criminal justice system. We need the public's help. Please watch out for your neighbor, and if you see a crime, report it immediately," Yellowstone County Attorney Scott Twito said.
“Since before the onset of COVID, we have seen a steady uptick in violent crime. Now that COVID has fully affected life in Billings, we continue to see increases, especially in domestic assault and weapons cases. There have been eight murders from March through July. And there was one murder in August. Most all of the homicides have one common denominator, methamphetamine. It continues to drive crime in Billings. We remain committed to work with our partners to aggressively pursue, investigate, and arrest offenders. COVID is a distraction, but it will not deter us from the very important work of keeping the community safe," Billings Police Chief Rich St. John said.
“Our jail may be crowded, but we will always make room for those who belong in jail," Yellowstone County Sheriff Mike Linder said. "I would just like to remind everyone that the Yellowstone County Detention Facility is open for business. Law enforcement officers in our community remain committed to investigating, arresting and prosecuting the violent criminals in our community. This would include those who continue to sell the drugs that are plaguing our community," Sheriff Linder added.
The law enforcement officials explained that both meth dealing and use have contributed to the increase in violent crime. A July report by Millennium Health showed that since March, positive meth urinalysis tests in Montana have increased almost 34 percent. The nationwide increase for positive meth tests is almost 20 percent. The report also found that nearly half of all Americans believe COVID-19 is harming their mental health.
In response to previous increases in meth-related violent crime in Yellowstone County, in 2018, the U.S. Attorney’s Office, together with federal, state, and local law enforcement reinvigorated Project Safe Neighborhoods (PSN), a U.S. Department of Justice initiative to reduce violent crime.
Since PSN began in Yellowstone County, 270 individuals have been charged with meth distribution, armed robbery and firearms offenses in federal court, 333 pounds of meth and 343 firearms have been seized, including 78 semi-automatic rifles. In addition, the U.S. Marshal’s Service’s Violent Offender Task Force has arrested 1,334 offenders through July.
The officials also urged support for expanding drug prevention and treatment programs through the community plan created earlier this year by Yellowstone Substance Abuse Connect, a coalition of non-profit and governmental organizations working to reduce the demand for meth.
PSN Yellowstone County’s partners include the U.S. Attorney’s Office; Yellowstone County Attorney’s Office; Montana Department of Justice’s Prosecution Services Division, Highway Patrol and the Division of Criminal Investigation; Montana Department of Correction’s Adult Probation and Parole Division; Billings and Laurel police departments; Yellowstone County Sheriff’s Office; Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; FBI; Homeland Security Investigations and U.S. Marshal’s Service.
###
University Athletic Officials Charged in Superseding Indictment in College Admissions CaseRead the Press Release
BOSTON – A federal grand jury in the District of Massachusetts returned a second superseding indictment today bringing additional charges against two university athletic officials in the college admissions case.
The second superseding indictment charges Gordon Ernst, the former Georgetown University tennis coach, with three counts of federal programs bribery and three counts of filing false tax returns and charges Jovan Vavic, former water polo coach at the University of Southern California, with conspiracy to commit federal programs bribery. An arraignment date has not yet been scheduled.
The indictment alleges that in addition to accepting bribes from William “Rick” Singer, Ernst also solicited and received bribes from three other prospective Georgetown applicants. Ernst then failed to report a significant portion of those bribe payments on his federal income tax returns. The second superseding indictment also alleges that Vavic conspired to commit federal programs bribery by soliciting and accepting bribes to facilitate the admission of students to the University of Southern California. The new charges are in addition to those brought in an earlier indictment.
Singer previously pleaded guilty and is cooperating with the government’s investigation.
Of the 12 coaches, administrators and employees charged in the initial indictment in March 2019, eight have pleaded guilty or agreed to do so. Defendants Gordon Ernst, Donna Heinel, Jovan Vavic and William Ferguson have pleaded not guilty.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of federal programs bribery provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit federal programs bribery provides for a sentence of up to five years in prison, three years of supervised release a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of filing a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of $100,000. 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; Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Stephen E. Frank and Karin M. Bell of Lelling’s Criminal Division are prosecuting the case.
The details contained in the court documents are allegations and the remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney’s Office to Join Federal, State, and Local Law Enforcement Officers for a Press Conference Tomorrow, September 2, in Kingstree at 11:30 a.m.Read the Press Release
Kingstree, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that a press conference will be held tomorrow, September 2, 2020, at 11:30 a.m., in the City Council Chambers of the Williamsburg County Public Service Administration (PSA) Building at 201 West Main Street, Kingstree, South Carolina 29556.
Represented at the press conference will be the U.S. Attorney’s Office for the District of South Carolina; South Carolina Law Enforcement Division (SLED); the United States Postal Inspection Service; the 3rd Circuit Solicitor’s Office; and the Williamsburg County Sheriff's Office.
WHEN: Tomorrow, September 2, in Kingstree at 11:30 a.m.
WHERE: City Council Chambers of the Williamsburg County Public Service
Administration (PSA) Building
201 West Main Street
Kingstree, South Carolina 29556
NOTE: Press inquiries regarding logistics should be directed to Derek A. Shoemake, 843-813-0982. Members of the media wishing to attend the remarks should gather outside the City Council Chambers of the Williamsburg County Public Service Administration (PSA) Building at 11:00 a.m., 30 minutes in advance.
#####
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.
Two Nigerian Nationals Facing Federal Indictment in Maryland for Bank and Mail Fraud Conspiracy and Related ChargesRead the Press Release
Baltimore, Maryland – A federal grand jury in Maryland today indicted two Nigerian nationals, Johnson B. Ogunlana, age 24, of Middle River, Maryland, and Samson A. Oguntuyi, age 29, of Atlanta, Georgia, on the federal charges of conspiracy to commit bank fraud and mail fraud, access device fraud, aggravated identity theft, theft of mail by a postal employee and destruction of mail by a postal employee.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Imari R. Niles of the U.S. Postal Service, Office of Inspector General; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge J. Russell George of the Treasury Inspector General for Tax Administration (TIGTA).
According to the indictment, Ogunlana was a letter carrier for the U.S. Postal Service (USPS) in Brooklyn, Maryland. Ogunlana understood that his duties and responsibilities as a letter carrier included handling, sorting, collecting, and delivering letter and parcel mail to postal customers residing and conducting business on his assigned postal delivery routes, and preserving and protecting the security of all mail in his custody.
The 30-count indictment alleges that Ogunlana conspired with Oguntuyi and others to steal bank checks, credit cards, and debit cards from the mail, open fraudulent business banking accounts using the names of victim businesses and the stolen identities of victim postal customers negotiate the stolen checks by depositing them into the fraudulent bank accounts, and then conduct transactions with stolen payment cards and with money derived from the stolen checks.
As detailed in the indictment, members of the conspiracy would register fraudulent businesses with state government agencies using the names of victim businesses and the names and identifying information of postal customer identity theft victims as the agents and/or incorporators of the businesses. Ogunlana and others allegedly used stolen payment cards issued to identity theft victims to pay fees to register some of the fraudulent businesses. The defendants also allegedly obtained banks checks payable to the victim businesses by intercepting mail sent via USPS, endorsed some of the checks by forging the signatures of identity theft victims, and deposited the checks into the fraudulent business bank accounts the conspirators opened in the names of the victim businesses. The conspirators then withdrew the money from the accounts through cash withdrawals, debit card purchases and cash back transactions at retail merchants, wire transfers, and by writing checks drawn on the accounts.
The indictment alleges that at least $565,000 was stolen from two victim businesses and that at least eight postal customers were victims of identity theft.
If convicted, Ogunlana and Oguntuyi each face a maximum sentence of 30 years in federal prison for conspiracy to commit bank fraud and mail fraud and for each of 10 counts of bank fraud. Ogunlana also faces a maximum sentence of 15 years in prison for access device fraud; a mandatory sentence of two years, consecutive to any other sentence imposed for each of five counts of aggravated identity theft; a maximum of five years in federal prison for each of five counts of theft of mail by a postal employee; and a maximum of five years in federal prison for each of eight counts of destruction of mail by a postal employee. 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. The defendants are expected to have initial appearance in U.S. District Court in Baltimore, although no date has been scheduled..
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the U.S. Postal Service Office of Inspector General, U.S. Postal Inspection Service, and TIGTA for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Matthew J. Maddox, who is prosecuting the case.
# # #