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Thursday 16 July 2020
California Man Charged with COVID-Relief FraudRead the Press Release
A California man was arrested today and charged with fraudulently seeking over $8.5 million in Paycheck Protection Program (PPP) loans, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Nicola T. Hanna of the Central District of California.
Andrew Marnell, 40, of Los Angeles, California, was charged by criminal complaint, unsealed today upon his arrest, in the Central District of California with one count of bank fraud.
The complaint alleges that Marnell obtained approximately $8.5 million in PPP loans through applications to insured financial institutions, and others, on behalf of different companies. The complaint alleges that Marnell caused to be submitted fraudulent loan applications that made numerous false and misleading statements about the companies’ respective business operations and payroll expenses. The complaint also alleges that, in further support of the fraudulent loan applications, Marnell submitted fake and altered documents, including fake federal tax filings and employee payroll records. The complaint also alleges that these loan applications were made by using false and fraudulent identifications that were aliases of Marnell.
The complaint further alleges that Marnell then transferred the fraudulently-obtained loan proceeds to his brokerage account to make risky stock-market bets and similarly spent hundreds of thousands of dollars in fraudulently-obtained loan proceeds at a Las Vegas casino.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General, the FBI, Federal Deposit Insurance Corporation – Office of Inspector General, IRS – Criminal Investigation, the Treasury Inspector General for Tax Administration, and the Small Business Administration Office of Inspector General. The California Department of Justice – Bureau of Gambling Control also provided assistance in the investigation. Trial Attorney Scott Armstrong of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kerry Quinn of the Central District of California are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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.
Boulder County Woman Sentenced to Federal Prison for Stealing More Than $429,000 from Federal GovernmentRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced today that Kathleen McCalib, age 52, of Boulder, was sentenced to serve 8 months in federal prison, followed by 3 years on supervised release for theft of government funds. McCalib was also ordered to pay $429,000 in restitution to her victims. She appeared at the sentencing hearing free on bond, and was ordered to report to a facility designated by the U.S. Bureau of Prisons. The Offices of the Inspector General for both the Social Security Administration and the Office of Personnel Management joined in today’s announcement.
According to the stipulated facts contained in the plea agreement, McCalib’s father died in late 2006. At the time he died, he was receiving both Social Security retirement benefits and a civil service retirement pension from his time as a federal employee. The federal government was not informed of his death, so these payments continued to be deposited each month into a joint account that McCalib held with her father. For about the next twelve years, McCalib continued to spend these funds, frequently forged her deceased father’s signature on checks, including large checks to herself that she wrote, and then endorsed on the back with her own signature. She occasionally paid a home mortgage from the account. By the time law enforcement caught up with her, McCalib had taken and spent $429,454.46 in federal government money to which she was not entitled.
“Ms. McCalib stole from taxpayers by cashing electronic checks issued to her deceased father,” said U.S. Attorney Jason Dunn. “Now she will have the opportunity to repay that theft with not only her money, but with her time in a federal prison.”
“The theft of Government funds is a Federal crime that directly impacts the American taxpayer,” said Norbert E. Vint, Deputy Inspector General, performing the duties of the Inspector General, Office of Personnel Management. “This sentencing is an important step toward restoring the financial integrity of the retirement program and the trust fund.”
“For over a dozen years, Ms. McCalib failed to report her father’s death, and instead took over $74,000 in Social Security benefits knowing that it was not her money and intending to put it to her own use. The Social Security Administration (SSA) Office of the Inspector General (OIG) will continue to work closely with SSA and other agencies to identify those who misuse benefits after someone dies,” said Gail S. Ennis, Inspector General of Social Security. “I want to thank the Office of Personnel Management OIG for its efforts in investigating this case, and the United States Attorney’s Office’s for bringing this individual to justice.”
McCalib was charged by Information on December 19, 2019. Her guilty plea was entered on January 14, 2020. She was sentenced by U.S. District Court Judge Raymond P. Moore.
This case was jointly investigated by the Inspector General offices of both the Office of Personnel Management and the Social Security Administration. The sentencing was handled by Assistant U.S. Attorney Bryan D. Fields.
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 19-cr-532.
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
Bakersfield Man Pleads Guilty to Destroying Evidence in a Federal InvestigationRead the Press Release
FRESNO, Calif. — Jerome Roberson, 33, of Bakersfield, pleaded guilty today to destroying evidence in a federal investigation, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Dec. 2, 2019, Roberson was facilitating prostitution in the Bakersfield area using his cellphone and by other means. At the time, federal agents were investigating Roberson due to his involvement in the Country Boy Crip gang in Bakersfield. Roberson smashed his cellphone in an effort to conceal evidence when he was confronted by federal agents. On Dec. 17, 2019, Roberson was charged with using a cellular device to facilitate interstate prostitution and obstruction of justice.
This case is the product of an investigation by the Federal Bureau of Investigation and the Bakersfield Police Department. Assistant U.S. Attorney Thomas Newman is prosecuting the case.
Roberson is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Oct. 16. Roberson faces a maximum statutory penalty of 20 years in prison and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Attorney General William P. Barr Announces the Appointment of Prim F. Escalona as Interim U.S. Attorney for the Northern District of AlabamaRead the Press Release
WASHINGTON – Attorney General William P. Barr announced today the appointment of Prim F. Escalona as Interim U.S. Attorney for the Northern District of Alabama, pursuant to 28 U.S.C. § 546.
As Interim U.S. Attorney, Escalona will serve as the Northern District of Alabama’s chief federal law enforcement officer, supervising an office of approximately 48 Assistant U.S. Attorneys, 38 support staff, and 12 contract support staff. Escalona will be responsible for prosecuting federal criminal offenses and representing the United States in civil litigation in the district.
“I am pleased to appoint Prim F. Escalona as Interim U.S. Attorney for the Northern District of Alabama. Prim is a dedicated public servant with extensive legal experience. Prim’s commitment to preserving the rule of law and dedication to the mission of the Department of Justice will make her an outstanding U.S. Attorney for her home state of Alabama,” said Attorney General William P. Barr.
“Prim is an exceptional lawyer, an excellent manager, and a person of great integrity and the highest ethical standards. Prim has been front and center in our efforts to advance the Department’s legislative agenda with Congress, working on issues ranging from child exploitation to violent crime reduction,” said Stephen E. Boyd, Assistant Attorney General of the Department of Justice’s Office of Legislative Affairs, and a native of Birmingham, Alabama. “Prim played an integral role in the roll out of Project Safe Neighborhoods (PSN), the Department’s successful anti-crime initiative. PSN is based on building strong working relationships between the Department and the local law enforcement community, and I know Prim will enthusiastically bring that perspective to her work in the Northern District. Prim shares the values of the people of Alabama, and police forces across the state can rest assured that they have a strong ally in their U.S. Attorney.”
Escalona has held multiple leadership positions within the Department of Justice. For the past two years, Escalona has served in the Department’s Office of Legislative Affairs as the Principal Deputy Assistant Attorney General, where she managed an expansive legislative portfolio and helped establish and manage a new Department component, the State and Local Law Enforcement Coordination Section. Prior to her time in the Office of Legislative Affairs, Escalona served in the Department of Justice’s Office of Legal Policy as a Deputy Assistant Attorney General, where she developed and reviewed policy initiatives for the Attorney General.
Prior to her tenure at the Department of Justice, Escalona was an associate at Maynard, Cooper & Gale, a visiting assistant professor at the University of Alabama School of Law, a Deputy Solicitor General in the Office of the Attorney General of the State of Alabama, and a law clerk for the U.S. Court of Appeals for the Eleventh Circuit in Montgomery, Alabama. Escalona also served as a legislative assistant for two members of the U.S. Senate.
Escalona received her Juris Doctor degree from the University of Alabama School of Law, where she graduated summa cum laude and Order of the Coif. Escalona was a member of the Bench and Bar Legal Honor Society, and received the Harrison Award and the Dean Thomas W. Christopher Award. Escalona received her Bachelor of Arts degree in Political Science and Sociology from Birmingham-Southern College, where she graduated magna cum laude.
For more information about the U.S. Attorney’s Office for the Northern District of Alabama, please visit https://www.justice.gov/usao-ndal.
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.
Attorney General William P. Barr Announces the Appointment of Prim F. Escalona as Interim U.S. Attorney for the Northern District of AlabamaRead the Press Release
Attorney General William P. Barr announced today the appointment of Prim F. Escalona as Interim U.S. Attorney for the Northern District of Alabama, pursuant to 28 U.S.C. § 546.
As Interim U.S. Attorney, Escalona will serve as the Northern District of Alabama’s chief federal law enforcement officer, supervising an office of approximately 48 Assistant U.S. Attorneys, 38 support staff, and 12 contract support staff. Escalona will be responsible for prosecuting federal criminal offenses and representing the United States in civil litigation in the district.
“I am pleased to appoint Prim F. Escalona as Interim U.S. Attorney for the Northern District of Alabama. Prim is a dedicated public servant with extensive legal experience. Prim’s commitment to preserving the rule of law and dedication to the mission of the Department of Justice will make her an outstanding U.S. Attorney for her home state of Alabama,” said Attorney General William P. Barr.
“Prim is an exceptional lawyer, an excellent manager, and a person of great integrity and the highest ethical standards. Prim has been front and center in our efforts to advance the Department’s legislative agenda with Congress, working on issues ranging from child exploitation to violent crime reduction,” said Stephen E. Boyd, Assistant Attorney General of the Department of Justice’s Office of Legislative Affairs, and a native of Birmingham, Alabama. “Prim played an integral role in the roll out of Project Safe Neighborhoods (PSN), the Department’s successful anti-crime initiative. PSN is based on building strong working relationships between the Department and the local law enforcement community, and I know Prim will enthusiastically bring that perspective to her work in the Northern District. Prim shares the values of the people of Alabama, and police forces across the state can rest assured that they have a strong ally in their U.S. Attorney.”
Escalona has held multiple leadership positions within the Department of Justice. For the past two years, Escalona has served in the Department’s Office of Legislative Affairs as the Principal Deputy Assistant Attorney General, where she managed an expansive legislative portfolio and helped establish and manage a new Department component, the State and Local Law Enforcement Coordination Section. Prior to her time in the Office of Legislative Affairs, Escalona served in the Department of Justice’s Office of Legal Policy as a Deputy Assistant Attorney General, where she developed and reviewed policy initiatives for the Attorney General.
Prior to her tenure at the Department of Justice, Escalona was an associate at Maynard, Cooper & Gale, a visiting assistant professor at the University of Alabama School of Law, a Deputy Solicitor General in the Office of the Attorney General of the State of Alabama, and a law clerk for the U.S. Court of Appeals for the Eleventh Circuit in Montgomery, Alabama. Escalona also served as a legislative assistant for two members of the U.S. Senate.
Escalona received her Juris Doctor degree from the University of Alabama School of Law, where she graduated summa cum laude and Order of the Coif. Escalona was a member of the Bench and Bar Legal Honor Society, and received the Harrison Award and the Dean Thomas W. Christopher Award. Escalona received her Bachelor of Arts degree in Political Science and Sociology from Birmingham-Southern College, where she graduated magna cum laude.
For more information about the U.S. Attorney’s Office for the Northern District of Alabama, please visit https://www.justice.gov/usao-ndal.
Attorney General William Barr Assesses the Threats Posed by the Global Ambitions of the People's Republic of ChinaRead the Press Release
GRAND RAPIDS, MICHIGAN – United States Attorney General William Barr addressed an audience of corporate and academic leaders at the President Gerald R. Ford Museum in Grand Rapids, Michigan, on the threats posed by the People’s Republic of China to American business and academic interests. Following his speech, Deputy Assistant Attorney General Adam Hickey of the National Security Division, and United States Attorneys Andrew B. Birge, Western District of Michigan, and Matthew Schneider, Eastern District of Michigan, discussed the Department’s China Initiative, a program designed to counter those threats and protect American business and ingenuity.
Following Attorney General Barr’s speech and the presentation on the China Initiative, Deputy Assistant Attorney General Hickey and U.S. Attorneys Birge and Schneider took questions from attendees. Also available to the audience were Special Agent in Charge Steven D’Antuono of the Detroit Field Division of the FBI, Special Agent in Charge Dan Clutch of the Department of Commerce-Office of Export Enforcement-Chicago Regional Office, and Deputy Special Agent in Charge Angie Salazar of Immigration and Customs Enforcement-Homeland Security Investigations-Detroit Division.
“Attorney General Barr offered a clear-eyed assessment of the threats we face from the People’s Republic of China and what it will take for our country to respond,” said U.S. Attorney Andrew Birge. “The initiative we discussed after his remarks presented the audience with a similarly stark picture and the law enforcement resources we can make available to help protect our businesses and institutions and, ultimately, our national security.”
“There is no doubt in my mind that the largest economic, military, and geopolitical threat to the United States is the communist government of the People’s Republic of China. It is time that Michigan businesses recognize the China threat with open eyes,” said U.S. Attorney Matthew Schneider. “Our businesses must realize they are dealing with a regime whose goal is often to rob them of their business information, replicate it in China, and then kick businesses out of the marketplace.”
“Michigan, and particularly the Grand Rapids area, has long been synonymous with advanced manufacturing and American ingenuity. That is why it made perfect sense for the Attorney General to come here to deliver his policy speech about the threats American industry faces from the Chinese Communist Party,” said Adam S. Hickey, Deputy Assistant Attorney General of the National Security Division. “This dialogue with Michigan’s corporate and academic leaders was a terrific success, because it provided them with an accurate view of the threat landscape, which should better prepare them to protect themselves.”
A special thanks to Elaine Didier, Director of the Gerald R. Ford Museum and to the corporate and academic institution leaders who attended.
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Atlanta man convicted of armed assault of federal mail carrierRead the Press Release
ATLANTA, Ga. – Michael Terrell has pleaded guilty to forcibly assaulting a federal mail carrier, and brandishing a firearm in furtherance of that crime of violence.
“Terrell’s conduct is especially egregious as he showed no regard for the life of the mail carrier who was simply doing his job,” said U.S. Attorney Byung J. “BJay” Pak. “This kind of senseless attack jeopardizes the safety of both postal employees and the general public.”
“The safety and security of Postal Service employees is core to the mission of the Postal Inspection Service,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “We will continue to work with our law enforcement partners to help protect our communities from the significant threats posed by criminals.”
“Crime, and the people who commit them, are destroying our communities,” said Arthur Peralta, ATF Special Agent in Charge. “Mr. Terrell’s actions show his complete disregard for his community and the safety of those who live there.”
“This assault on a representative the United States Postal Service (USPS) is disturbing and unacceptable. Criminals who would seek to harm public servants and people who seek to use the USPS as a means to traffic drugs must be held accountable to the fullest extent of the law,” said Atlanta Interim Police Chief Rodney Bryant.
According to U.S. Attorney Pak, the charges, and other information presented in court: On March 2, 2019, the DeKalb County Police Department and U.S. Postal Inspectors investigated the armed assault of a mail carrier at a restaurant in Tucker, Georgia. The mail carrier had just delivered a parcel to the cashier at the restaurant when Terrell grabbed the parcel and followed the mail carrier to his postal vehicle.
Terrell then attempted to block the mail carrier’s access to the vehicle, and forced his way inside the vehicle, and took the keys. Terrell began rummaging through the vehicle looking for the missing contents of the parcel, later determined to have been a large quantity of marijuana. Terrell then pulled a firearm on the mail carrier before fleeing the scene.
At the time of the assault, Michael Terrell, 25, of Decatur, Georgia, was under indictment in Fulton County, Georgia, for possession with intent to distribute marijuana and possession of a firearm in furtherance of a felony on December 7, 2018.
Assistant U.S. Attorney Laurel R. Boatright prosecuted the case.
The U.S. Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the DeKalb County Police Department, the City of Atlanta Police Department, and the Georgia State Patrol are investigating this case.
This case is bought as a part of the Project Safe Neighborhoods (PSN) initiative. In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Associate of “Born to Kill” Drug Gang Leader Sentenced to Ten Months in Prison for Lying to the FBIRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Hai Nguyen, 37, of New Castle, Delaware, was sentenced to ten months in prison and three years of supervised release by United States District Court Judge J. Curtis Joyner for lying to the FBI during the course of a double homicide investigation.
On the night of August 26, 2014, Tam Le and four associates kidnapped three Philadelphia drug dealers who had failed to pay a substantial drug debt. Le was a member of a gang called “BTK” or “Born to Kill.” Le and his associates transported the three victims to the Schuylkill River, bound them with duct tape, weighed down their bodies, stabbed them, and dumped all three victims into the river. Two victims died in the river while the third somehow managed to crawl out of the river and flag down a passing motorist on Kelly Drive for assistance.
Hai Nguyen was a close friend of Tam Le. Immediately following the murders, Nguyen traveled from Delaware to Le’s house in Philadelphia. Le knew that the Philadelphia Police would be looking to arrest him for the murders, so he asked Nguyen to drive him and his family to New York State. The U.S. Marshals Service eventually hunted down Le and placed him under arrest. He was charged with the murders and convicted at trial. A Philadelphia County jury sentenced him to death.
At the same time, the FBI began investigating the crime in order to bring the other perpetrators, some of whom lived in New York, to justice. On three occasions, the FBI interviewed Hai Nguyen about traveling to Tam Le’s house following the murders. During those interviews, Nguyen repeatedly lied to the FBI and stated that he did not travel to Le’s house that night. The FBI subsequently obtained cell site data from Hai Nguyen’s phone and proved his lies.
“Lying to the FBI or to any federal investigating agency is always a serious offense, one which we will prosecute vigorously,” said U.S. Attorney McSwain. “But lying in the course of a federal double homicide investigation is a sure way to land in prison. This type of criminal dishonesty is reprehensible and will never be tolerated.”
The case was investigated by the Federal Bureau of Investigation with assistance from the Philadelphia Police Department. The case is being prosecuted by Assistant United States Attorney Robert J. Livermore.
Wednesday 15 July 2020
Winchester Man Charged with COVID-Relief FraudRead the Press Release
BOSTON – A Winchester man was indicted yesterday in connection with allegedly filing fraudulent loan applications seeking more than $13 million in forgivable loans guaranteed by the Small Business Administration (SBA) for COVID-19 relief through the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Elijah Majak Buoi, 38, was indicted on four counts of wire fraud and one count of making a false statement to a financial institution. Buoi was arrested and charged by criminal complaint in June 2020.
According to the indictment, Buoi is the president and CEO of an information technology services company, Sosuda Tech, LLC. Between April 2020 and June 2020, Buoi allegedly submitted fraudulent applications for over $13 million in PPP loans through SBA-approved lenders. In these applications, Buoi misrepresented the number of employees and payroll expenses and falsely certified that the United States was the primary residence for his employees. Buoi also allegedly submitted falsified documentation in support of his applications for PPP funds. The indictment further alleges that Buoi ultimately received over $2 million in PPP funds.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was 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 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. The charge of making a false statement to a financial institution provides for a sentence of up to 30 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. 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; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Inspector General Mark Bialek of the Board of Governors of the Federal Reserve System and the Consumer Protection Bureau, Office of Inspector General; Kevin Kupperbusch, Special Agent in Charge of the Small Business Association, Office of Inspector General, Eastern Regional Office; and Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation, Officer of Inspector General made the announcement today. Assistant U.S. Attorneys Mackenzie Queenin and Carol Head of Lelling’s Office and Trial Attorney Della Sentilles of the Criminal Division’s Fraud Section are prosecuting the case.
Massachusetts residents with information about attempted fraud involving COVID-19 should contact (add our hotline/email). Information about allegations of attempted fraud involving COVID-19 can also report it by calling the Department of Justice’s National Center for Disaster Fraud (BCDF) hotline by phone (1-866-720-5721) or via an online reporting form available at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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.
Wichita Man Pleads Guilty to Growing MushroomsRead the Press Release
WICHITA, KAN. – A Wichita man who caught law enforcement’s attention when he was shot pleaded guilty today to growing hallucinogenic mushrooms, U.S. Attorney Stephen McAllister said.
Corey A. Logan, 35, Wichita, Kan., pleaded guilty to one count of manufacturing a controlled substance. In his plea, Logan admitted that in March 2018 police were dispatched to his home in the 1900 block of East Maywood. Logan reported being shot by an unknown assailant. Police found a mushroom growing operation in a bedroom of his home.
Sentencing is set for Oct. 2. He could face a penalty of up to 20 years in federal prison. McAllister commended the Wichita Police Department, the Drug Enforcement Administration and Assistant U.S. Attorney Lanny Welch for their work on the case.
West Hollywood Man Sentenced to Five Years in Federal Prison for Modern Art Fraud Scheme Involving Sale of Bogus WorksRead the Press Release
LOS ANGELES – A West Hollywood man pleaded guilty today in federal court in Miami to criminal charges stemming from the sale of bogus artworks he claimed were created by famed modern artists, and he was immediately ordered to serve 60 months in federal prison.
Philip Righter, 43, pleaded guilty to three felony charges in a case filed in Los Angeles and admitted selling works he falsely claimed were created by artists such as Jean-Michel Basquiat, Keith Haring, Roy Lichtenstein and Andy Warhol. Righter also admitted using fake artwork as collateral for loans on which he later defaulted, and using bogus pieces for fraudulent write-offs on his income tax returns.
Righter pleaded guilty to three felony offenses – wire fraud, aggravated identity theft and tax fraud – and was sentenced by United States District Judge Marcia G. Cooke of the Southern District of Florida. In total, Righter’s scheme attempted to bilk victims out of well over $6 million, and he caused losses of at least $758,265. Additionally, his fraudulent tax returns cost the United States more than $100,000, according to a plea agreement in the case.
Judge Cooke also sentenced Righter to 60 months in federal prison in relation to a case filed by federal prosecutors in Miami. Righter pleaded guilty in that case in March and admitted trying to sell Haring and Basquiat forgeries to the owner of a Miami art gallery. The sentences in both cases will run concurrent with each other.
In the Los Angeles case, Righter admitted he executed a scheme to defraud people, businesses and the United States from 2016 until June 2018 by using counterfeit and fraudulent art that he asserted was genuine. Righter supported these false claims with fraudulent provenance – or chronology-of-origin – documents that he had created.
Before August 2016, Righter generally conducted these fraudulent transactions in his own name. But after the FBI and the Los Angeles Police Department interviewed him about bogus Keith Haring art he attempted to sell to the Miami art gallery, Righter began using the names of other people to execute his scheme, court documents state.
To make the fake artwork appear to be genuine, Righter ordered and used embossing stamps that appeared similar to the stamps used by the estates of Basquiat and Haring to authenticate works by these artists.
In furtherance of the scheme, Righter obtained and attempted to obtain numerous loans by using the fraudulent art and accompanying fraudulent provenance documents. For example, in October 2016, using another person’s name, Righter contacted a victim about a loan in which a purported original drawing by Basquiat would be used as collateral. Righter created a fraudulent certificate of authentication letter that purportedly came from Basquiat’s estate. The victim wired a $24,000 loan, on which Righter later defaulted. After Righter’s default, the victim attempted to auction the piece, but the auction house determined the piece was fraudulent, and the victim lost $24,000.
Righter also sold or attempted to sell numerous pieces of fake modern art. In August 2017, using another person’s name, Righter listed a purported 1983 piece of art by Basquiat with the word “Samo” written on it with an art sale website and he provided fake provenance documents. The website sold the piece for $50,000. In 2018, after the piece was determined to be fraudulent, the website had to refund the purchase price to the buyer.
Righter also admitted that he knowingly and willfully included a false W-2 and documentation of a donation of fraudulent art to a charity on his 2015 federal income tax return, which resulted in him fraudulently receiving a refund of $54,858. Righter then signed and filed a false 2015 amended tax return, which claimed a false casualty and theft loss of $2,575,000 related to artwork he claimed had been stolen. In truth, the artwork was fraudulent and had no value. This bogus amended tax return resulted in false carryback loss refunds for 2012, 2013 and 2014 totaling $52,485, according to court documents.
The FBI’s Art Crime Team, the Los Angeles Police Department, and IRS Criminal Investigation investigated this matter.
The Los Angeles case was prosecuted by Assistant United States Attorneys Mark A. Williams and Erik M. Silber of the Environmental and Community Safety Crimes Section.
Venezuelan National Extradited from Trinidad and Tobago Sentenced to 12+ Years in Prison for Smuggling CocaineRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Eduardo Gregorio Azocar, 48, of Venezuela was sentenced to more than 12 years (151 months) in prison and five years of supervised release by United States District Judge Harvey Bartle, III, for the attempted distribution of more than 30 kilograms of cocaine for purpose of unlawful importation to the United States, and the distribution of more than 4 kilograms of cocaine for purpose of unlawful importation to the United States.
Azocar, who resided in Venezuela, used the Caribbean country of Trinidad and Tobago to facilitate his distribution of kilogram quantities of cocaine. In the summer of 2015, the Drug Enforcement Administration (DEA) and Trinidadian law enforcement received information that Azocar had 50 kilograms of cocaine that he wanted to sell to a U.S. buyer. On August 26, 2015, Trinidadian law enforcement agents watched the defendant access a locked storage container in Trinidad to inspect his cocaine. On August 27, 2015, an undercover detective in the United States made a series of telephone calls to Azocar. Posing as a Philadelphia-area resident, the undercover detective said he was interested in buying kilogram quantities of cocaine and negotiated the purchase price with the defendant. Before those negotiations were completed, Trinidadian law enforcement agents searched the storage container and seized a total of 30.4 kilograms of cocaine.
The undercover detective also introduced a confidential source to Azocar. The confidential source traveled from the United States to the island of Trinidad on multiple dates, meeting with Azocar in person in Trinidad. On October 4, 2015, at Azocar’s direction, an associate of Azocar sold to the confidential source 4.1 kilograms of cocaine which was destined for the United States. On October 26, 2015, the confidential source met Azocar in a Trinidadian hotel and paid him $22,500 for the previously negotiated cocaine sale. In a recorded conversation, the defendant told the confidential source: “I’ve been looking for a contact just like you and I found you. I am really happy.” In that same conversation, the confidential source and Azocar discussed the cost of moving the cocaine from Trinidad to Philadelphia, the price of a kilogram of cocaine in Philadelphia, and the price of a kilogram of heroin in Philadelphia.
Azocar was indicted in the Eastern District of Pennsylvania and arrested in Trinidad on June 16, 2016. He fought extradition for years in Trinidadian courts, but was eventually extradited to Philadelphia, PA, on July 23, 2019 to face justice. The defendant pleaded guilty in February 2020.
“Drug trafficking preys on individuals in addiction and makes our entire city less safe,” said U.S. Attorney McSwain. “Narcotics don’t just magically appear on Philadelphia streets -- they are smuggled in by people like Azocar, seeking to profit off the suffering of our people and communities. My Office is committed to working with our law enforcement partners at all levels, and in other jurisdictions and nations, to investigate and convict those who are poisoning our neighborhoods with deadly drugs and put them behind bars, where they belong.”
“Azocar mistakenly thought that he could elude the reach of United States law by remaining outside the US as he sold multi-kilogram quantities of cocaine destined for Philadelphia. As a result of the coordinated efforts of DEA and prosecutors in the US and Trinidad, Azocar was arrested in Trinidad and extradited to Philadelphia to face US justice,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “The DEA is most appreciative of the cooperation and support provided by Trinidadian police and prosecutors. DEA has offices around the world and will continue to work tirelessly to extradite significant drug-traffickers like Azocar who pose the greatest threat to our country.”
The case was investigated by the Drug Enforcement Adminstration, and is being prosecuted by Assistant United States Attorney Jason P. Bologna.
Two Rivers Man Indicted on Drug and Gun ChargesRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on July 14, 2020, a federal grand jury indictment was issued against Jonathon A. Erickson, a/k/a “Jonathon A. Jimenez” (age: 29) of Manitowoc, Wisconsin.
The indictment alleges that Erickson possessed an assortment of illegal narcotics, including MDMA, Oxycodone, Clonazepam, Alprazolam, and Marijuana with the intent to distribute them in violation of Title 21, United States Code, Sections 841(a) and 841(b)(1)(C). If convicted of that charge, Erickson faces up to 20 years of imprisonment. He is additionally charged with being a felon in possession of a firearm and possessing a firearm in furtherance of a drug trafficking crime, contrary to Title 18, United States Code, Sections 922(g)(1) and 924(c)(1)(A). He faces up to 10 years of imprisonment for possessing a firearm as a felon, and a mandatory 5 years of imprisonment up to a lifetime of imprisonment for possessing the firearm in furtherance of drug distribution.
This case was investigated by the City of Manitowoc Police Department and the Manitowoc County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Two New Defendants Charged in Violent Kidnapping of Chinese National Whose Remains Were Found Buried in the Mojave DesertRead the Press Release
LOS ANGELES – Two men from the San Gabriel Valley were charged today in federal court for allegedly participating in the kidnapping of Ruochen “Tony” Liao, a Chinese national who was violently abducted from a mall parking lot in San Gabriel two years ago, and whose parents were extorted for $2 million in ransom before Liao died from his injuries.
Anthony Valladares, 28, of Pasadena, and Alexis Ivan Romero Velez, 24, most recently a resident of Azusa, were taken into custody Tuesday during the execution of search warrants by FBI agents and members of the San Gabriel Valley Safe Street Task Force. Federal prosecutors this morning filed a criminal complaint in United States District Court that charges both Valladares and Romero with one count of kidnapping.
Previously in this investigation, two Chinese nationals were charged in a four-count indictment alleging they kidnapped Mr. Liao and attempted to collect $2 million in ransom from Mr. Liao’s family in exchange for the victim’s life. Guangyao Yang, 26, and Peicheng Shen, 34, whose last known U.S. residences were in West Covina, were charged with conspiracy to kidnap, kidnapping, attempted extortion in violation of the Hobbs Act, and threat by foreign communication. Yang and Shen are currently in custody in China on charges filed there related to the kidnapping.
During the investigation, the FBI learned that Valladares and Romero worked with Yang and Shen to conduct the kidnapping, during which Liao was repeatedly beaten and tased into submission, according to the affidavit in support of the complaint. Valladares was the “muscle” hired to intimidate, beat and subdue Liao during the kidnapping, and Romero was the driver of the vehicle used in the kidnapping, according to the affidavit.
Valladares and Romero were arrested Tuesday after making statements about their roles in the kidnapping to investigators. According to the affidavit, Valladares admitted that he was hired to assist in the kidnapping, agreed to accept $1,000 for the job, and restrained Liao during the kidnapping. Romero admitted, according to the affidavit, that he was recruited by Valladares and was the driver during the kidnapping.
After Liao was kidnapped on July 16, 2018, his parents in China received ransom demands and “proof-of-life” photos suggesting that Liao had been badly beaten, blindfolded, and tied up with duct tape. Liao’s parents were told to deposit the ransom payment into Chinese bank accounts within three hours, according to court documents.
Investigators believe Liao was held captive in a closet at a residence in Corona. During his captivity, investigators believe Liao was frequently beaten and ultimately died the night of July 17. During the early morning of July 18, investigators believe Yang and Shen drove to the desert near the town of Mojave to bury Liao’s body.
On July 26, 2019, the FBI laboratory used DNA testing to identify Liao’s remains, which were recovered following a search by the FBI’s Evidence Response Team.
Valladares and Romero are expected to make an initial appearance in U.S. District Court in Los Angeles this afternoon.
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 kidnapping charge carries a statutory maximum penalty of life in federal prison.
The investigation into the kidnapping is being conducted by the Federal Bureau of Investigation, with significant assistance by members of the FBI’s Safe Street Task Force, which includes the Pasadena Police Department.
This case is being prosecuted by Assistant United States Attorneys Julia Choe of the Cyber and Intellectual Property Crimes Section and Frances Lewis of the Public Corruption and Civil Rights Section.
Two Individuals Charged with Armed Robbery of A Brooklyn Center HotelRead the Press Release
United States Attorney Erica H. MacDonald today announced a criminal complaint charging KEANU DEWONE ROSS, 28, and ANTOINETTE DENIECE MAE DOBYNE, 28, for their roles in the armed robbery of a Super 8 Hotel. ROSS and DOBYNE made their initial appearances before Magistrate Judge Katherine M. Menendez in U.S. District Court. ROSS was ordered to remain in custody pending a formal detention hearing, which is scheduled for Monday, July 20, 2020.
According to the allegations in the criminal complaint and law enforcement affidavit, on February 14, 2020, at approximately 2:30 a.m., officers with the Brooklyn Center Police Department (BCPD) responded to a report of an armed robbery at the Super 8 Hotel in Brooklyn Center, Minnesota. A hotel employee told BCPD officers that two men, both carrying firearms, ordered him to the ground at gunpoint and took his cell phone, car keys, and cash from the business, and then told him to run from the scene. As the employee fled on foot, he heard multiple gunshots. Officers recovered a discharged cartridge casing at the scene of the robbery. Surveillance camera footage showed two men committing the robbery as described by the employee. The footage also showed the two men running from the hotel toward an SUV and then fleeing on foot after the SUV got stuck in a snowbank. BCPD officers located DOBYNE in the SUV. Later that same day, ROSS called a BCPD detective to ask about the release of the SUV, identifying himself as the boyfriend of the SUV’s driver. ROSS also told the detective that his wallet and ID were in the middle glovebox of the SUV. During a subsequent search of the SUV, law enforcement discovered a wallet containing identification for ROSS.
According to the allegations in the criminal complaint and law enforcement affidavit, on February 14, 2020, at approximately 1:30 p.m., ROSS was detained during a traffic stop by officers with the Minneapolis Police Department. Officers confiscated a Taurus Model PT738 .380-caliber semiautomatic pistol that was found on ROSS’s person. Subsequent forensic analysis using the discharged cartridge casing recovered at the scene of the robbery revealed that the confiscated firearm was the same one that was fired at the Super 8 Hotel. Because ROSS has prior felony convictions, he is prohibited under federal law from possessing firearms or ammunition at any time.
This case was the result of an investigation conducted by the Federal Bureau of Investigation, the Bureau of Criminal Apprehension, the Brooklyn Center Police Department, and the Minneapolis Police Department. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat violent crime. This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.
Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.
The charges contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant Information:
KEANU DEWONE ROSS, 28
Minneapolis, Minn.
Charges:
- Aiding and abetting interference with commerce by robbery (Hobbs Act), 1 count
- Using, carrying, and discharging a firearm during and in relation to a crime of violence, 1 count
- Felon in possession of a firearm, 1 count
ANTOINETTE DENIECE MAE DOBYNE, 28
Fargo, North Dakota.
Charges:
- Aiding and abetting interference with commerce by robbery (Hobbs Act), 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Tulsa Man Charged with Felony Child NeglectRead the Press Release
A Tulsa man has been charged with child neglect after he allegedly left his two children unsupervised for more than four hours, at which time the children gained access to his parked vehicle where they were later found deceased.
According to a Criminal Complaint, Dustin Lee Dennis, 31, fell asleep on June 13, 2020, only to wake up and discover his children deceased in the backseat of his pick-up truck. The crime occurred within the boundaries of the Creek Nation reservation. His three-year-old son and four-year-old daughter are Cherokee citizens.
“Following the Supreme Court’s decision in McGirt, the Tulsa County District Attorney dismissed state charges against Dustin Dennis for lack of jurisdiction. District Attorney Kunzweiler communicated to my office his intent to do so, and we immediately prepared to receive and review the case file,” said U.S. Attorney Trent Shores. “Upon review of the facts and evidence by the FBI and federal prosecutors, we filed a Complaint alleging felony child neglect by Mr. Dennis. Our review of the facts and evidence is ongoing, and we will determine whether other violations of federal law should be presented to a federal grand jury for their consideration.
This is a tragic set of facts. Our mission now is to pursue justice for the two child victims by holding Mr. Dennis accountable in a court of law. The U.S. Attorney’s Office has a team of Victim Coordinators who will work with the mother of the deceased children as this case proceeds through the federal system.”
During the investigation and review of a neighbor’s surveillance video, investigators discovered that Dennis returned home at 12:55 a.m. on June 13. Surveillance video next shows Dennis leaving his residence alone at approximately noon for 11 minutes during which time Dennis stated he drove to a QuikTrip. When Dennis returned home from the convenience store, he stated that he fell asleep. During this time, surveillance footage allegedly shows the two children trying to get into Dennis’ truck at 1:22 p.m. when the vehicle’s alarm went off. They attempted a second time at 1:29 p.m. and successfully gained access to the truck. The video captures Dennis exiting his apartment and searching for his children approximately four hours later, at 5:32 p.m. Within minutes he discovered his children deceased in the truck.
The surveillance video contradicts several initial statements Dennis made to officers who first arrived on the scene. Dennis allegedly claimed that he had arrived home at 10 pm the night before, rather than after midnight as shown in the video. He also claimed that the children were with him when he went to QuikTrip, but video showed he was alone.
A Criminal Complaint is a temporary charge alleging a violation of law. For the case to proceed to trial, the United States must present the charge to a federal Grand Jury within 30 days. Once a Grand Jury returns an Indictment, a defendant has a right to a jury trial at which the United States would have the burden of proving the defendant’s guilt beyond a reasonable doubt.
The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Shannon Cozzoni is prosecuting the case.
Thirteen Defendants, Including National Leadership of MS-13, Charged with Multiple Firearms and Drug Distribution Offenses and Violation of the "Kingpin" StatuteRead the Press Release
LAS VEGAS, Nev. – A 21-count indictment was unsealed yesterday in the U.S. District Court for the District of Nevada, charging 13 leaders, members, and associates of the violent transnational criminal organization Mara Salvatrucha, also known as “MS-13,” with violation of the federal “Kingpin” statute and multiple drugs and firearms offenses, including transporting bulk quantities of methamphetamine from Los Angeles, California to Las Vegas, Nevada.
The indictment was returned under seal on July 8, 2020 by a federal grand jury sitting in Las Vegas. Yesterday morning, 11 of the 13 defendants were taken into custody: four defendants were arrested in the Los Angeles area, and seven defendants were arrested in Las Vegas. Those arrests were part of a national takedown coordinated between law enforcement agencies in the District of Nevada, Central District of California, Eastern District of New York, and Eastern District of Virginia.
Two other defendants — Juan Angel Reyes (also known as “Angel” and “Mysterio”) and Eder Cruz-Salguero (also known as “Edgar Manolo Ramirez-Salguero” and “Venado”) — are considered fugitives and a warrant remains outstanding for their arrests. Anyone with information as to their whereabouts is asked to contact your local law enforcement office or the Department of Homeland Security by calling 1-866-DHS-2-ICE.
This morning, Attorney General William P. Barr led a Joint Task Force Vulcan (JTFV) briefing to President Donald J. Trump in the Oval Office, which included several U.S. Attorneys and heads of law enforcement agencies. Following that briefing, the charges in Nevada were announced by U.S. Attorney Nicholas A. Trutanich for the District of Nevada, Special Agent in Charge Francisco Burrola of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department, and Special Agent in Charge Patrick Gorman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“In 2017, the President directed the Department of Justice to go to war against MS-13, and we did just that,” said Attorney General Barr. “In coordination with our partners at the Department of Homeland Security, the Justice Department’s law enforcement components have successfully investigated, charged, and arrested command and control elements of MS-13 responsible for murder. Joint Task Force Vulcan’s operations have significantly degraded MS-13’s capabilities. While there is still work to be done, the Department of Justice remains committed to protecting Americans threatened by MS-13, and we will not rest until we have successfully defeated this transnational criminal organization.”
“Today’s announcements are the result of tremendous teamwork and coordination between prosecutors and law enforcement officers across the United States and Central America,” stated JTFV Director John Durham. “MS-13 is a violent transnational criminal organization, whose criminal activities respect no boundaries. The only way to defeat MS-13 is by targeting the organization as a whole, focusing on the leadership structure, and deploying a whole-of-government approach against a common enemy.”
“As a result of the hard work and substantial resources dedicated by our local and federal law enforcement partners, this collaborative effort has disrupted MS-13’s leadership and significantly undermines the gang’s ability to engage in violence and other criminal conduct in Nevada, California, and elsewhere throughout the country,” said U.S. Attorney Trutanich. “Our office is proud to contribute to making our streets safer and stopping MS-13 from using a well-worn path between Los Angeles and Las Vegas to develop a greater presence in Las Vegas. We are grateful to HSI, the Las Vegas Metropolitan Police Department, and ATF: without their bravery, this prosecution would not be possible.”
“Gangs threaten the safety of our communities, not just in major metropolitan areas but in our suburbs and rural areas, too,” said Francisco Burrola, Special Agent in Charge for the HSI Las Vegas office. “Gang-related violence and criminal activity present an ongoing challenge for law enforcement everywhere. Our efforts to dismantle gangs are much more effective in areas where partnership with local law enforcement is strongest.”
“The magnitude of this operation will have a huge ripple effect on this criminal enterprise. Dangerous gangs like these contribute to the decay of our communities by bringing drugs and other violent crime to our streets. They threaten the safety of our neighborhoods and our way of life. These arrests are a real victory against gang violence,” said Clark County Sheriff Joseph Lombardo.
“Gangs are one of the nation’s key distributors of narcotics and are flagrant in their use of firearms to carry out violence and intimidation,” said Special Agent in Charge Patrick Gorman, San Francisco Field Division, ATF. “Through ATF’s collaborative Crime Gun Intelligence Model, local, state, and federal partners diligently pursue violent criminals and the sources of their crime guns to remove them from our communities. Throughout this investigation, ATF has worked side by side with our partners to fulfill ATF’s mission of protecting the public by investigating the criminal misuse and trafficking of firearms in Las Vegas. ATF remains committed to working hard and doing our part to make this city a safer place.”
As detailed in the indictment, MS-13 originated in Los Angeles and has since spread across the country. MS-13 is organized by subsets known as “cliques,” such as “Hollywood Locos” and “Fulton.” In the southwestern United States, the Hollywood Locos clique operates in several major cities, including Los Angeles and Las Vegas.
The organizational hierarchy of MS-13 cliques in Nevada is generally comprised of different ranks. A “Homeboy” is a fully initiated gang member who has undergone a “jumping in” ceremony. That ceremony involves passing a “beating test” where the prospective MS-13 member must survive a group of existing gang members beating him for 13 seconds. Once jumped in, MS-13 members are expected to participate in the gang’s criminal activities. Certain “Homeboys” also operate as “Palabreros” or “shot callers,” making the ultimate decisions affecting the clique.
The indictment charges three defendants who were “Homeboys” in the MS-13 Hollywood Locos and Fulton cliques:
- Adali Arnulfo Escalante-Trujillo, also known as “Buchaca,” 43, of Las Vegas, is charged with one count of engaging in a continuing criminal enterprise (commonly referred to as the “Kingpin” statute), one count of conspiracy to distribute a controlled substance, 15 counts of distribution of a controlled substance, and one count of conspiracy to deal in firearms without a license.
As alleged, Escalante-Trujillo was the Las Vegas-based “shot caller” of the Hollywood Locos clique, leading the Las Vegas sector of the gang, which was involved in narcotics and firearms distribution. He bragged about the violent acts committed by MS-13, boasted of connections between MS-13 and the Mexican Mafia, and bragged that MS-13 had come to work with nearly all Mexican Cartels. Reflecting his senior position within MS-13’s hierarchy, Escalante-Trujillo was in direct contact with an MS-13 founding member living in El Salvador.
Escalante-Trujillo brokered nearly every narcotics and firearms trafficking charge alleged in the indictment. Among other things, Escalante-Trujillo hosted MS-13 members from Los Angeles at his Las Vegas home, to enable their transportation of bulk quantities of methamphetamine from Los Angeles to Las Vegas.
- Jose Alfredo Ayala-Flores, also known as “Blackie,” 39, of Inglewood, California, is charged with one count of conspiracy to distribute a controlled substance, five counts of distribution of a controlled substance, and one count of being a prohibited person in possession of a firearm.
As alleged, in addition to being a “Homeboy,” Ayala-Flores is a “shot caller.” He led the MS-13 “Los Angeles Program,” a leadership group that seeks to unify MS-13 decision-making throughout the United States.
In early 2020, Ayala-Flores and Escalante-Trujillo arranged numerous bulk methamphetamine deals in Las Vegas. Additionally, Ayala-Flores sent bulk pills, laced with fentanyl, through the mail. Ayala-Flores also possessed three rifles (bearing no serial numbers) illegally, due to his prior conviction for attempted murder.
- Alvaro Ernesto Perez Carias, also known as “Toro,” 50, of Los Angeles, is charged with one count of conspiracy to distribute a controlled substance and one count of distribution of a controlled substance
As alleged, Perez Carias is a “shot caller” and a founding member of the Hollywood Locos clique. Due to supply issues as a result of the COVID-19 pandemic, Perez Carias personally delivered large quantities of methamphetamine from Los Angeles to Las Vegas this year.
Aside from Escalante-Trujillo, Ayala-Flores, and Perez Carias, the remaining ten defendants are charged with conspiring to distribute drugs (between July 2019 and the present) and conducting individual drug deals over the past 12 months. The indictment also charges defendants with illegally possessing and selling silencers, semiautomatic rifles, and semiautomatic handguns:
- Sebastian Ocadiz-Castro, 20, of Las Vegas, is charged with one count of conspiracy to distribute a controlled substance, three counts of distribution of a controlled substance, and one count of conspiracy to deal in firearms without a license.
- Juan Luis-Rico, also known as “Pelon,” 46, of Las Vegas, is charged with one count of conspiracy to distribute a controlled substance and one count of distribution of a controlled substance.
- Juan Angel Reyes, also known as “Angel” and “Mysterio,” 21, of Van Nuys, California, is charged with one count of conspiracy to distribute a controlled substance and one count of distribution of a controlled substance.
- Miguel Angel Nieto-Romero, also known as “Flaco,” 26, of Los Angeles, is charged with one count of conspiracy to distribute a controlled substance and three counts of distribution of a controlled substance.
- Rosalio Andres Siguenza-Romero, also known as “Tweety,” 40, of Las Vegas, is charged with one count of conspiracy to deal in firearms without a license, one count of dealing in firearms without a license, and one count of possession of an unregistered firearm.
- Daniel Enrique Perez-Torres, also known as “Maliente,” 30, of Las Vegas, is charged with one count of conspiracy to distribute a controlled substance and two counts of conspiracy to distribute a controlled substance.
- Jose Gerardo Cortez-Diaz, also known as “Christian Axel Lopez-Cortez” and “Chiquilin,” 20, of Los Angeles, is charged with one count of conspiracy to distribute a controlled substance and one count of distribution of a controlled substance.
- Eder Cruz-Salguero, also known as “Edgar Manolo Ramirez-Salguero” and “Venado,” 26 (city of residence unknown), is charged with one count of conspiracy to distribute a controlled substance and one count of distribution of a controlled substance.
- Carlos Lopez-Guzman, also known as “Troso,” 41, of Los Angeles, is charged with one count of conspiracy to distribute a controlled substance and three counts of distribution of a controlled substance.
- Pedro Ernesto Montalvo, also known as “Cuba,” 35, of Hawthorne, California, is charged with one count of conspiracy to distribute a controlled substance and one count of distribution of a controlled substance.
All defendants except Angel Reyes and Cruz-Salguero are in federal custody and awaiting their respective initial appearances. The charges in the indictment are merely allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Assistant U.S. Attorneys Shaheen Torgoley and Brett Ruff are prosecuting this case.
The maximum statutory sentences for each charge in the indictment are: (a) life imprisonment and a $2 million fine for engaging in a continuing criminal enterprise; (b) life imprisonment and a $10 million fine for distribution of controlled substance; (c) life imprisonment and a $10 million fine for conspiracy to distribute controlled substance; (d) five years imprisonment for conspiracy – deal in firearms without a license; (e) five years imprisonment and a $250,000 fine for dealing in firearms without a license; (f) ten years imprisonment and a $250,000 fine for prohibited person in possession of a firearm; and (g) ten years imprisonment for possession of unregistered firearm. The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes only. If convicted of any federal offense, the sentencing of a defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The charges are the result of a joint investigation by the HSI, the Las Vegas Metropolitan Police Department, and the ATF, and coordinated at a national level by Joint Task Force Vulcan. In August 2019, Attorney General Barr created JTFV to carry out the recommendations of the MS-13 subcommittee formed under the Attorney General’s Transnational Organized Crime Task Force, which was the result of President Trump’s February 2017 Executive Order directing the Departments of Justice, State, and Homeland Security, and the Office of the Director of National Intelligence to coordinate a whole-of-government approach to dismantle transnational criminal organizations, such as MS-13, and restore safety for the American people. The principal purpose of JTFV is to coordinate and lead the efforts of the Justice Department and U.S. law enforcement agencies against MS-13 in order to dismantle the group.
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The Department of Justice Announces Takedown of Key MS-13 Criminal LeadershipRead the Press Release
Today, President Donald J. Trump and Attorney General William P. Barr announced significant cases related to Joint Task Force Vulcan (JTFV), an initiative launched in August 2019 aimed at disrupting, dismantling, and ultimately, destroying MS-13.
President Trump and Attorney General Barr announced a number of significant cases associated with JTFV, including the first time an MS-13 member has been charged with terrorism-related offenses, a coordinated multi-district takedown of the leadership of the Hollywood clique of MS-13, and the Attorney General’s decision to seek the death penalty against an MS-13 defendant.
“In 2017, the President directed the Department of Justice to go to war against MS-13, and we did just that,” said Attorney General Barr. “In coordination with our partners at the Department of Homeland Security, the Justice Department’s law enforcement components have successfully investigated, charged, and arrested command and control elements of MS-13 responsible for murder. Joint Task Force Vulcan’s operations have significantly degraded MS-13 capabilities. While there is still work to be done, the Department of Justice remains committed to protecting Americans threatened by MS-13, and we will not rest until we have successfully defeated this transnational criminal organization.”
“Today’s announcements are the result of tremendous teamwork and coordination between prosecutors and law enforcement officers across the United States and Central America,” said JTFV Director John Durham. “MS-13 is a violent transnational criminal organization, whose criminal activities respect no boundaries. The only way to defeat MS-13 is by targeting the organization as a whole, focusing on the leadership structure, and deploying a whole-of-government approach against a common enemy.”
In an indictment unsealed yesterday, Melgar Diaz was charged in the Eastern District of Virginia with conspiring to provide material support to terrorists; conspiring to kill or maim persons overseas; conspiring to commit acts of terrorism transcending national boundaries; conspiring to finance terrorism, and; conspiring to engage in narco-terrorism, in addition to racketeering conspiracy and drug trafficking. This is the first time that an MS-13 member has been charged with terrorism-related offenses.
Alexi Saenz was indicted in 2017 in the Eastern District of New York. It is alleged that between 2016 and 2017 he committed seven murders: the Jan. 28, 2016, murder of Michael Johnson; the April 29, 2016, murder of Oscar Acosta; the Sept. 13, 2016, murders of Kayla Cuevas and Nisa Mickens; the Oct. 10, 2016, murder of Javier Castillo; the Oct. 13, 2016, murder of Dewann Stacks, and; the Jan. 30, 2017, murder of Esteban Alvarado-Bonilla. Two of the victims were Brentwood high school students killed with a machete and baseball bat. The Attorney General has filed a Notice of Intent to Seek the Death Penalty for Saenz.
In a 24 count indictment unsealed yesterday, the Eastern District of New York, charged eight MS-13 members, including leaders of the East Coast Hollywood Program, with Racketeer Influenced and Corrupt Organization (RICO) and Violent Crimes in Aid of Racketeering (VICAR) charges related to six murders, two attempted murders, kidnapping, narcotics, and related firearms offenses.
In a 21-count indictment unsealed yesterday in the District of Nevada, 13 MS-13 members, including leaders of the “Hollywood Locos” clique and “Los Angeles Program,” were charged with various offenses including Continuing Criminal Enterprise (CCE), narcotics distribution and weapons charges.
In August 2019, Attorney General Barr created JTFV to carry out the recommendations of the MS-13 subcommittee formed under the Attorney General’s Transnational Organized Crime Task Force, which was the result of President Trump’s February 2017 Executive Order directing the Departments of Justice, State, and Homeland Security, and the Office of the Director of National Intelligence, to coordinate a whole-of-government approach to dismantle transnational criminal organizations, such as MS-13, and restore safety for the American people. The principal purpose of JTFV is to coordinate and lead the efforts of the Justice Department and U.S. law enforcement agencies against MS-13 in order to dismantle the group.
JTFV has successfully implemented the whole-of-government approach to law enforcement relating to MS-13; increased coordination and collaboration with foreign law enforcement partners, including El Salvador, Mexico, Honduras, and Guatemala; designated priority MS-13 programs, cliques and leaders, who have the most impact on the U.S., for targeted prosecutions, and; coordinated significant MS-13 indictments in U.S. Attorney’s Offices across the country, such as the Eastern District of New York, the Eastern District of Virginia, and the District of Nevada.
Federal prosecutors from the Department of Justice’s National Security Division and the Criminal Division, as well as 10 U.S. Attorney’s Offices have been assigned to serve JTFV in full-time capacities: the Eastern District of New York; the Eastern District of Virginia; the District of Nevada; the Southern District of California; the District of Massachusetts; the Northern District of Ohio; the District of New Jersey; the Eastern District of Texas; the District of Utah, and; the District of Columbia. In addition, all Department of Justice law enforcement agencies are involved in the effort – the Federal Bureau of Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service, and; the Bureau of Prisons. The Department of Homeland Security’s Homeland Security Investigations has also played a critical role in JTFV.
Attorney General Barr would also like to thank Attorney General Raul Melara of El Salvador for the assistance of his office, as well as investigators from El Salvador’s Policia Nacional Civil, Centro Antipandilla Transnacional unit for their assistance.
The Department of Justice Announces Takedown of Key MS-13 Criminal LeadershipRead the Press Release
WASHINGTON – Today, President Donald J. Trump and Attorney General William P. Barr announced significant cases related to Joint Task Force Vulcan (JTFV), an initiative launched in August 2019 aimed at disrupting, dismantling, and ultimately, destroying MS-13.
President Trump and Attorney General Barr announced a number of significant cases associated with JTFV, including the first time an MS-13 member has been charged with terrorism-related offenses, a coordinated multi-district takedown of the leadership of the Hollywood clique of MS-13, and the Attorney General’s decision to seek the death penalty against an MS-13 defendant.
“In 2017, the President directed the Department of Justice to go to war against MS-13, and we did just that,” said Attorney General Barr. “In coordination with our partners at the Department of Homeland Security, the Justice Department’s law enforcement components have successfully investigated, charged, and arrested command and control elements of MS-13 responsible for murder. Joint Task Force Vulcan’s operations have significantly degraded MS-13 capabilities. While there is still work to be done, the Department of Justice remains committed to protecting Americans threatened by MS-13, and we will not rest until we have successfully defeated this transnational criminal organization.”
“Today’s announcements are the result of tremendous teamwork and coordination between prosecutors and law enforcement officers across the United States and Central America,” said JTFV Director John Durham. “MS-13 is a violent transnational criminal organization, whose criminal activities respect no boundaries. The only way to defeat MS-13 is by targeting the organization as a whole, focusing on the leadership structure, and deploying a whole-of-government approach against a common enemy.”
“This multi-district takedown of a number of high profile MS-13 leaders and members is a blow to this violent gang throughout the United States. While we are thankful that MS-13 does not have a significant presence in Utah, we do have prosecutors with significant experience investigating and prosecuting violent gangs. We are honored to have a prosecutor from our office participating in this targeted nationwide effort,” Utah U.S. Attorney John W. Huber said today.
In an indictment unsealed yesterday, Melgar Diaz was charged in the Eastern District of Virginia with conspiring to provide material support to terrorists; conspiring to kill or maim persons overseas; conspiring to commit acts of terrorism transcending national boundaries; conspiring to finance terrorism, and; conspiring to engage in narco-terrorism, in addition to racketeering conspiracy and drug trafficking. This is the first time that an MS-13 member has been charged with terrorism-related offenses.
Alexi Saenz was indicted in 2017 in the Eastern District of New York. It is alleged that between 2016 and 2017 he committed seven murders: the Jan. 28, 2016, murder of Michael Johnson; the April 29, 2016, murder of Oscar Acosta; the Sept. 13, 2016, murders of Kayla Cuevas and Nisa Mickens; the Oct. 10, 2016, murder of Javier Castillo; the Oct. 13, 2016, murder of Dewann Stacks, and; the Jan. 30, 2017, murder of Esteban Alvarado-Bonilla. Two of the victims were Brentwood high school students killed with a machete and baseball bat. The Attorney General has filed a Notice of Intent to Seek the Death Penalty for Saenz.
In a 24-count indictment unsealed yesterday, the Eastern District of New York, charged eight MS-13 members, including leaders of the East Coast Hollywood Program, with Racketeer Influenced and Corrupt Organization (RICO) and Violent Crimes in Aid of Racketeering (VICAR) charges related to six murders, two attempted murders, kidnapping, narcotics, and related firearms offenses.
In a 21-count indictment unsealed yesterday in the District of Nevada, 13 MS-13 members, including leaders of the “Hollywood Locos” clique and “Los Angeles Program,” were charged with various offenses including Continuing Criminal Enterprise (CCE), narcotics distribution and weapons charges.
In August 2019, Attorney General Barr created JTFV to carry out the recommendations of the MS-13 subcommittee formed under the Attorney General’s Transnational Organized Crime Task Force, which was the result of President Trump’s February 2017 Executive Order directing the Departments of Justice, State, and Homeland Security, and the Office of the Director of National Intelligence, to coordinate a whole-of-government approach to dismantle transnational criminal organizations, such as MS-13, and restore safety for the American people. The principal purpose of JTFV is to coordinate and lead the efforts of the Justice Department and U.S. law enforcement agencies against MS-13 in order to dismantle the group.
JTFV has successfully implemented the whole-of-government approach to law enforcement relating to MS-13; increased coordination and collaboration with foreign law enforcement partners, including El Salvador, Mexico, Honduras, and Guatemala; designated priority MS-13 programs, cliques and leaders, who have the most impact on the U.S., for targeted prosecutions; and coordinated significant MS-13 indictments in U.S. Attorney’s Offices across the country, such as the Eastern District of New York, the Eastern District of Virginia, and the District of Nevada.
Federal prosecutors from the Department of Justice’s National Security Division and the Criminal Division, as well as 10 U.S. Attorney’s Offices have been assigned to serve JTFV in full-time capacities: the Eastern District of New York; the Eastern District of Virginia; the District of Nevada; the Southern District of California; the District of Massachusetts; the Northern District of Ohio; the District of New Jersey; the Eastern District of Texas; the District of Utah, and; the District of Columbia. In addition, all Department of Justice law enforcement agencies are involved in the effort – the Federal Bureau of Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service, and; the Bureau of Prisons. The Department of Homeland Security’s Homeland Security Investigations has also played a critical role in JTFV.
Attorney General Barr would also like to thank Attorney General Raul Melara of El Salvador for the assistance of his office, as well as investigators from El Salvador’s Policia Nacional Civil, Centro Antipandilla Transnacional unit for their assistance.
Suburban Pittsburgh Man Charged with Violating Federal Firearms and Explosives LawsRead the Press Release
PITTSBURGH – A suburban Pittsburgh man has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on charges of violating federal firearms and explosives laws, United States Attorney Scott W. Brady announced today.
The five-count Indictment, returned on July 14, named Kurt Cofano, 32, of Whitehall, Pennsylvania, as the sole defendant.
According to the Indictment, on July 9 and July 10, 2020, Cofano was found to be in possession of unregistered destructive devices. Also, the Indictment alleges that on those same dates, Cofano, an unlawful user of a controlled substance, was in possession of a firearm. Federal law prohibits the possession of a firearm by an unlawful user of a controlled substance. The Indictment further alleges that from May 2020 through July 2020, Cofano knowingly and unlawfully and without registering and obtaining approval made destructive devices.
"Kurt Cofano stands accused of illegally possessing multiple completed destructive devices, the components for making additional destructive devices, and a dozen firearms all in violation of federal law," said U.S. Attorney Brady. "I commend the excellent work of the investigators and the prowess of our prosecutors to take this case from incident to indictment in just five days. In serious cases like this, justice will be certain and swift."
"We are committed to keeping our communities safe," said acting Special Agent in Charge John Schmidt, ATF Philadelphia Field Division. "This investigation is a perfect demonstration of how ATF combats violent crime by partnering with our local, state and federal counterparts in this case the Whitehall and Mt. Lebanon Police Departments, the Allegheny County and Pittsburgh Police Bomb Squads and the Federal Bureau of Investigation."
"This investigation successfully disrupted a very real threat," said FBI Pittsburgh Special Agent in Charge Mike Christman. "A mix of unstable, homemade manufactured explosives, large amounts of ammo and a person who has already made threats to inflict harm is an extremely dangerous combination. The FBI will always rally together with the ATF and our federal, state and local law enforcement partners to take anyone who presents a threat to our community off our streets."
The law provides for a maximum total sentence of not more than 50 years in prison, a fine of not more than $750,000, a term of supervised release of not more than three years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Cindy K. Chung and Jonathan D. Lusty are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the Indictment in this case. The Mt. Lebanon Police Department, the Whitehall Police Department, the Allegheny County Police Department and the Pittsburgh Bureau of Police provided substantial assistance with the investigation.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Statement of U.S. Attorney Ron Parsons on the Passing of Hughes County Chief Deputy Sheriff Lee WeberRead the Press Release
Internet"Lee Weber led a hero’s life and he died a hero’s death. He was a guardian in the highest and truest sense. He devoted his life to protecting his family, protecting his community, and protecting his country. Our nation and our state owe him an incalculable debt of gratitude. The men and women of the United States Department of Justice stand shoulder to shoulder with Wendy, their beautiful children, and our entire law enforcement family, as we honor the life of Lee Weber and mourn this tragic loss."
Somerset County Man Indicted on Child Pornography ChargesRead the Press Release
NEWARK, N.J. – A federal grand jury today indicted a Somerset County, New Jersey, man for allegedly distributing and possessing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
John Schulenburg, 65, of Basking Ridge, New Jersey, is charged with one count of distribution of child pornography and one count of possession of child pornography. He will be arraigned at a date to be determined. Schulenberg was arrested on a criminal complaint on this conduct on Nov. 6, 2019, and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
In July 2019, an undercover law enforcement officer conducted an online session using a publicly available peer-to-peer (P2P) program, which allows internet users to trade digital files. During this session, a user shared multiple files of featuring images of child sexual abuse from an internet address traced to Schulenburg’s residence.
On Nov. 6, 2019, law enforcement lawfully obtained a computer from Schulenburg’s residence that contained hundreds of images and videos of child pornography, including images of prepubescent children being sexually abused.
The count of distribution of child pornography carries a mandatory minimum penalty of 15 years in prison, a maximum penalty of 40 years in prison, and fine of $250,000. The count of possession of child pornography carries a mandatory minimum penalty of 10 years in prison, a maximum penalty of 20 years in prison, and fine of $250,000.
U.S. Attorney Carpenito credited the FBI Newark's Child Exploitation Human Trafficking Task Force, under the direction of FBI Special Agent in Charge Joe Denahan; the Somerset County Prosecutor's Office, under the direction of Prosecutor Michael H. Robertson, and the Bernards Township Police Department, under the direction of Chief Michael Shimsky, with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorney Vijay Dewan of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Russell County Man Sentenced to 10 Years in Prison Following Federal Gun ConvictionRead the Press Release
Montgomery, Alabama – On Tuesday, July 14, 2020, Shaqual Lamar Brown, a 28-year-old man from Phenix City, Alabama, was sentenced to 120 months in prison after pleading guilty to a federal gun charge, announced United States Attorney Louis V. Franklin, Sr. Brown was also ordered to serve three years of supervised release after he completes his prison sentence. There is no parole in the federal system.
According to court documents, on April 7, 2019, the Phenix City Police Department responded to a call that reported a domestic disturbance outside a residence. When an officer arrived on the scene and spoke with Brown, he gave the officer false information— including a fake name— and attempted to flee by running away. After the officer gave chase and attempted to detain him, Brown continued to resist and began to struggle with the officer, as well as another responding officer who was now assisting. During the fray, Brown reached for a loaded .40 caliber handgun he had in his pants. While the officers were in the process of disarming him of the firearm, Brown grabbed one of the officer’s Tasers and began to stun one of them until the other officer was able to subdue Brown and restrain him. Because Brown is a felon, he is prohibited from possessing firearms.
On September 11, 2019, Brown was indicted by a federal grand jury for being a felon in possession of a firearm and he pleaded guilty to the charge on February 5, 2020. Brown received the maximum sentence allowed in this case due to his extensive criminal history and his conduct during the arrest.
The Phenix City Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case. Assistant United States Attorney Thomas Govan prosecuted the case.
Romanian Pleads Guilty to ATM Skimming Scheme, Stole Personal Identifiers of at Least 2,732 Victims at Bank ATMsRead the Press Release
SALT LAKE CITY – A Romanian citizen pleaded guilty to bank fraud in U.S. District Court in Salt Lake City Wednesday morning, admitting he and his co-conspirators devised an ATM skimming scheme that allowed them to steal the personal identifiers from at least 2,732 victims and caused a loss to the victim bank of approximately $216,157.30.
As a part of his plea agreement, Alexandru Cosmin Licsor, 38, admitted that from about Jan. 10 to about Feb. 20, 2015, he installed skimming devices equipped with magnetic card readers, data recorders, digital cameras, and batteries on some Zions Bank ATMs. The skimming equipment collected bank customer card data and the camera recorded the PIN pad as customers entered their PINs.
After collecting the data and video recordings, Licsor’s co-conspirators created counterfeit credit and debit cards. Licsor and others used or attempted to use the counterfeit cards on multiple occasions at non-Zions bank ATMs in Utah and other places. For example, in February 2015, they made an $800 ATM withdrawal from a Zions Bank account without the authorization of the account holder. The co-conspirators in the case have not been identified.
While the approximate loss amount for the scheme $216,157.30, the attempted loss amount for the fraud was $363,035.83. (The attempted loss amount includes things like attempts to withdraw more from an account that the bank would allowed.)
The plea agreement includes an agreement that the sentence imposed in the case will be between 24 months and 71 months. The ultimate sentence is subject to the approval of the Court. The judge can consider conduct Licsor engaged in which either was not charged, not pleaded to, or both in determining a sentence. Sentencing in the case is set for Sept. 23, 2020.
Licsor was charged with access device fraud, bank fraud, and aggravated identity theft in a six-count superseding indictment returned by a federal grand jury in December 2016. A warrant was issued for his arrest. After being on the run for more than two years, he was arrested in Romania and extradited to the United States in November 2019 to face the Utah charges.
The FBI’s Cyber Task Force, which includes officers with the Utah Department of Public Safety, investigated the case. The U.S. Department of Justice’s Office of International Affairs provided significant assistance in securing the defendant’s extradition from Romania.
Robeson County Man Sentenced to 70 Months for Gun OffenseRead the Press Release
RALEIGH, N.C. – A Robeson County man was sentenced today to 70 months in prison and 3 years of supervised release for a firearm offenses.
According to court documents, Corey Elton Jones, 39, was charged in a superseding criminal information with one count of felon in possession of a firearm. Jones pled guilty on October 31, 2019.
In December 2018, Jones was less than a year into a 30 month term of probation after pleading guilty in March 2017 to a number of state charges, including a felony charge for Possession of a Firearm by a Felon. On December 19, 2018, state probation officers and Robeson County Sheriff’s Office conducted a search of Jones’ residence. Jones initially denied having any guns but officers found a fully loaded .40 caliber handgun in a dresser drawer with Jones’ wallet. Another drawer contained a bag of ammunition and a .22 caliber rifle was also found in the closet of Jones’ bedroom. After his arrest, Jones waived his Miranda rights and admitted to possessing the handgun.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. ATF Robeson County Sheriff’s Office, and North Carolina Department of Public Safety, Division of Adult Corrections Probation/Parole investigated the case and Assistant U.S. Attorney Bryan Stephany prosecuted the case.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
A copy of this press release is located on our website. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-CR-79-D.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Rhode Island Man Pleads Guilty to Conspiracy to Launder Funds of Email Compromise Fraud Targeting Massachusetts LawyerRead the Press Release
BOSTON – A Rhode Island man pleaded guilty yesterday in federal court in Boston in connection with a conspiracy to launder funds derived from Business Email Compromise (BEC) fraud schemes, including one that targeted a Dorchester, Mass. real estate attorney.
Sayon Balogun a/k/a “Oshine,” 32, a dual citizen of the United States and Nigeria, pleaded guilty to one count of money laundering conspiracy before U.S. Senior District Court Judge Douglas P. Woodlock, who scheduled sentencing for Nov. 10, 2020. Balogun was initially charged by criminal complaint on May 31, 2019, and arrested in Florida on June 10, 2019.
In January 2018, Balogun’s co-conspirators gained access to email accounts belonging to a Massachusetts attorney engaged in real estate closings. The co-conspirators then mimicked (spoofed) the real estate attorney’s email account and sent emails to a Massachusetts resident who was the purchaser in a legitimate real estate transaction. The spoofed emails directed the Massachusetts real-estate purchaser to wire transfer $531,981 (which the purchaser believed was for a legitimate real estate transaction) to the Wells Fargo account of a California woman, who in turn sent $60,000 to an account in the name of “David Tecum,” a fraudulent identity used by one of Balogun’s co-conspirators, Oghenetchouwe Adegor Ederaine, Jr. This account, and others, were opened by Ederaine to receive fraudulent proceeds at Balogun’s direction.
Ederaine pleaded guilty to aggravated identity theft and money laundering conspiracy and was sentenced to 40 months in prison.
The charging statute provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the value of the funds laundered in the conspiracy. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The United States Attorney’s Office and the FBI in the Southern District of Florida provided valuable assistance. Assistant U.S. Attorney David D’Addio of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Repeat Offender Sentenced to 212 Months for Child Pornography CrimesRead the Press Release
SYRACUSE, NEW YORK – Benjamin Jakes-Johnson, age 40, of New York City and Syracuse, New York, was sentenced today to serve 212 months in prison for distributing, attempting to receive, and possessing child pornography while on supervised release for an earlier conviction for possessing child pornography. The announcement was made by United States Attorney Grant C. Jaquith, Thomas Relford Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and New York State Police Superintendent Keith Corlett.
In today’s sentencing Jakes-Johnson was ordered to serve 200 months for his convictions at trial, and a consecutive 12 months for violating his supervised release by, among other things, committing the new crimes. Senior United States District Judge Thomas J. McAvoy also imposed a lifetime term of supervised release, to begin after Jakes-Johnson is released from prison, and a total of $5,300 in special assessments. Jakes-Johnson also will continue to be required to register as a sex offender upon his release from prison.
During a 5-day jury trial in March 2020, the evidence established that Jakes-Johnson used an online peer-to-peer file-sharing program to distribute and attempt to receive child pornography in December 2016, and that he possessed child pornography in 2017. The trial evidence showed that Jakes-Johnson, who was on federal supervised release for a 2008 child pornography conviction, used a closed on-line platform from Syracuse area hotels in an effort to conceal his identity and escape detection by law enforcement. During the execution of a search warrant in 2017, law enforcement also found that Jakes-Johnson possessed child exploitation material on a laptop computer and thumb drive in a Syracuse apartment he kept secret from his Probation Officer, also in order to avoid detection of his unlawful activities.
During trial, Jakes-Johnson claimed that, although he was mentally competent at the time he first possessed child pornography in 2008, he was legally insane at the time he committed the offenses in 2016 and 2017 due to post-traumatic stress disorder from prior abuse. The jury rejected his insanity defense after hearing all of the evidence, including testimony from both defense and government expert witnesses about the defendant’s mental state. The trial evidence also included a recorded interview between Jakes-Johnson and law enforcement officers during which he admitted the offense conduct, and displayed a thoroughgoing understanding of the potential penalties he could face as a repeat offender.
This case was investigated by the Federal Bureau of Investigation (FBI) and the New York State Police and was prosecuted by Assistant U.S. Attorneys Geoffrey J.L. Brown and Michael D. Gadarian.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Registered Sex Offender Charged with Distributing and Possessing Child PornographyRead the Press Release
PROVIDENCE – A registered sex offender convicted in Rhode Island state court in 2014 for possessing child pornography was arrested today by members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force and made an initial appearance in U.S. District Court in Providence on a federal criminal complaint charging him with distributing and possessing child pornography.
Thomas Andreozzi, 59, of North Providence, was arrested at his home moments after he rushed into his residence in an alleged attempt to avoid members of the ICAC Task Force.
According to court documents, it is alleged that in May 2020, Andreozzi uploaded images depicting child pornography while communicating with a person online. It is alleged that Andreozzi also boasted, “I have lots of young stuff” and “I have little girls.”
As members of the ICAC Task Force approached Andreozzi’s residence today to execute a court-authorized search of his home, Andreozzi allegedly fled inside his apartment and refused law enforcement commands to open the door. After forcing their way into Andreozzi’s apartment, agents and officers immediately seized a cell phone from Andreozzi’s hand and another on a nearby table. It is alleged that the phone in Andreozzi’s hand was opened to an online electronic media storage service. Numerous files of child pornography were allegedly observed by law enforcement.
Andreozzi appeared before U.S. District Court Magistrate Judge Patricia A. Sullivan on a federal criminal complaint charging him with distribution of child pornography and possession and accessing child pornography with intent to view. He was released to home confinement with GPS monitoring, and ordered not to access the internet and to have no contact with children.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Distribution of child pornography is punishable by statutory penalties of 15-30 years imprisonment to be followed by up to lifetime supervised release. Possession and accessing child pornography with intent to view is punishable by statutory penalties of 10-20 years imprisonment to be followed by up to lifetime supervised release.
Andreozzi’s arrest and initial appearance is announced by United States Attorney Aaron L. Weisman, Superintendent of the Rhode Island State Police Colonel James M. Manni, and Homeland Security Investigations Acting Special Agent in Charge Michael S. Shea.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
The Rhode Island ICAC Task Force is comprised of members of the Rhode Island State Police Computer Crimes Unit along with detectives from the Warwick Police Department, Cranston Police Department, Newport Police Department, East Providence Police Department, Pawtucket Police Department, Bristol Police Department, North Kingstown Police Department, Woonsocket Police Department, and Homeland Security Investigations.
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Project Guardian Update: Two Men Sentenced in Federal CourtRead the Press Release
CHARLESTON, W.Va. – Two Project Guardian defendants were sentenced this week in federal court, according to United States Attorney Mike Stuart.
Ronald Hambleton, 29, of Charleston, was sentenced to 68 months in prison for possession with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime. He also will serve three years on supervised release. On July 18, 2019, South Charleston police stopped a speeding car in which Hambleton was a passenger. During the stop, Hambleton was found to be in possession of, with intent to distribute, nearly half an ounce of cocaine, as well as some marijuana and digital scales. Police also recovered a loaded Ruger LCP .380 caliber firearm in the car’s center console. Hambleton claimed ownership of the drugs, drug paraphernalia and loaded firearm on scene. The South Charleston Police Department conducted the investigation. Former Assistant United States Attorney Stefan Hasselblad and Assistant United States Attorney Negar M. Kordestani handled the prosecution.
James Owen Adkins, 40, of Lincoln County, was sentenced to 18 months in prison for being a felon in possession of a firearm. He also was ordered to complete two years of supervised release. A federal jury sitting in Charleston convicted Adkins on February 5, 2020, of illegally possessing a Springfield XD 9mm pistol in St. Albans while being a convicted felon. The jury found that on June 4, 2019, Adkins removed a Springfield XD 9mm pistol from a truck that drove away from St. Albans police officers during an attempted a traffic stop. Adkins took the pistol from the truck, climbed out and ran off through a residential neighborhood as police pursued him on foot with a K-9. Prior to being apprehended by police, Adkins discarded the firearm under a shrub next to a residence where young children resided. Police officers recovered the firearm at the scene. Adkins admitted in an interview with officers that he was a felon, that he ran from police with the firearm, and that he discarded it. The St. Albans Police Department conducted the investigation. Assistant United States Attorneys Kristin F. Scott and Steven I. Loew handled the prosecution and tried the case before the federal jury.
United States District Judge Joseph R. Goodwin imposed the sentences.
The cases were prosecuted as part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted these cases with support from the Project Guardian partners noted above. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:19-CR-00242 (Hambleton) and Case No. 2:19-CR-00226 (Adkins).
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Police Impersonator Facing Federal Firearms ChargeRead the Press Release
NASHVILLE, Tenn. – July 15, 2020 – A Nashville man with a history of impersonating a law enforcement officer and firefighter is now facing federal charges, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
A criminal complaint, unsealed today, charged Chandler James Moon, 21, of Nashville, with being a convicted felon in possession of a firearm. Chandler was arrested earlier today by FBI agents and Metropolitan Nashville Police Department (MNPD) officers and will make an initial appearance before a U.S. Magistrate Judge later this afternoon.
According to the charging documents, on numerous occasions, beginning in 2018, officers with the MNPD and Kentucky law enforcement officers encountered Moon driving vehicles equipped with emergency lights, a siren and on some occasions a police scanner, radios, a traffic radar unit and handcuffs. On many occasions, Moon was wearing clothing items which identified him as a member of the Nashville Fire Department (NFD) and on other occasions he identified himself as a volunteer firefighter with the Hopkinsville, Kentucky Fire Department or the NFD. Many encounters by the MNPD were the result of citizen complaints about Moon’s careless driving behavior and stopping motorists.
On January 31, 2019, Moon was arrested in Warren County, Kentucky for impersonating a police officer and receiving stolen property, after carelessly driving a white Chevrolet Tahoe in which emergency lights had been activated. Moon entered into an agreement for five years of pre-trial diversion to resolve those charges on February 17, 2020. The pre-trial diversion agreement prohibits access to a handgun or firearm during the pendency of the diversionary period.
In October 2019, MNPD recovered from Moon’s vehicle, a government license plate stolen from a police vehicle the week before and in June 2020, Moon was implicated in the theft of other license plates from MNPD vehicles. On July 4, 2020, Moon’s vehicle was reported as driving recklessly with blue lights and siren activated on Interstate 24 in Davidson County. His driving caused a vehicle collision.
On July 9, 2020, during the execution of a search warrant at Moon’s house MNPD Crime Gun Unit detectives recovered a .40 Caliber Glock handgun, from Moon’s bedroom on the nightstand. Moon had been convicted of a felony in 2017, in the State of Georgia, and is prohibited from possessing a firearm.
If convicted, Moon faces up to 10 years in prison.
This case was investigated by the Metropolitan Nashville Police Department and the FBI. Assistant U.S. Attorney Rachel M. Stephens is prosecuting the case.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
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Outlaws Motorcycle Club Regional President Pleads Guilty to Firearms ChargesRead the Press Release
BOSTON – The regional president of the Brockton/East Bridgewater Chapters of the Outlaws Motorcycle Club pleaded guilty yesterday to possession of an unregistered firearm.
Bruce Sartwell, a/k/a “Monster,” 48, of East Bridgewater, pleaded guilty to one count of possession of an unregistered firearm and 153 rounds of 5.56 caliber ammunition before U.S. District Court Judge Denise J. Casper, who scheduled sentencing for Nov. 10, 2020. On Oct. 30, 2019, following the execution of a federal search warrant, Sartwell was arrested and charged.
On Oct. 19, 2019, agents intercepted a package originating in China and addressed to Sartwell that was declared as a “Fuel Filter” but actually contained a firearm silencer. A review of importation records revealed that Sartwell had received approximately 65 shipments from Asia (including over 55 from China), many of which were labeled as innocuous items that could have been more easily and cheaply purchased in the United States. During the investigation, law enforcement determined that Sartwell is the Regional President of the Brockton/East Bridgewater Chapters of the Outlaws Motorcycle Club.
On Oct. 30, 2019, a search was executed at Sartwell’s residence. Twelve or more AR-15 style Air-Soft rifles discovered in Sartwell’s garage were later determined not to be firearms. Hidden in the garage was an AR-15 styled “ghost gun” (a firearm without any manufacturing or serial numbers), two empty 30 round magazines, firearm manufacturing tools, assembly parts including milling equipment, buffer spring, buffer tube and a drill press. The AR-15 was later successfully test fired.
In addition, hidden compartments were located in Sartwell’s bedroom that concealed 153 rounds of 5.56 caliber ammunition compatible with the AR-15 styled rifle, two firearm silencers, a guide for assembly and disassembly of an AR-15 rifle, 20 knives, a black powder handgun and a flare gun. In the basement of the house, a floor-length mirror concealed the entrance to a hidden storage area that was found to contain a safe with silencer parts and a firearm assembly instruction book.
The charge of possession of an unregistered firearm provides for a sentence of up to 10 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; and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division made the announcement today. The U.S. Postal Inspection Service; Customs and Boarder Protection; Massachusetts State Police; East Bridgewater Police Department; Bristol County Sheriff’s Office; and the Massachusetts Environmental Protection Agency provided assistance with the investigation. Assistant U.S. Attorneys Kenneth G. Shine and Linsey Weinstein of Lelling’s Criminal Division are prosecuting the case.
Orlando Man Sentenced to Prison for Tax FraudRead the Press Release
Orlando, Florida –U.S. District Judge Wendy W. Berger has sentenced Mark Goolsby to two years in federal prison for filing a false claim for a tax refund. The court also ordered Goolsby to pay $420,288 in restitution to the Internal Revenue Service.
Goolsby had pleaded guilty on March 11, 2020.
According to court documents, Goolsby filed a fraudulent federal tax return for the 2014 tax year, falsely claiming that he had earned 1099-Misc income of over $1 million, paid more than $800,000 in federal withholding taxes, and was due a tax refund of $420,288. The IRS processed the return and issued a check to Goolsby for the false refund. Shortly thereafter, the IRS realized that the return was false and began collection proceedings to obtain the refund. Goolsby refused to return the proceeds and instead hid the funds in multiple bank accounts, withdrew large amounts of cash, purchased a vehicle in the name of a third party, and otherwise spent the proceeds to fund a lavish lifestyle.
“In almost twenty years investigating tax fraud, every once in a while a case comes along that causes me to shake my head in disbelief,” stated Special Agent in Charge Brian Payne of IRS Criminal Investigation’s Tampa Field Office. “Mr. Goolsby had the audacity to submit a false claim for a flagrant refund, through his trickery received that bogus refund, then when the IRS caught up to him, he spun a web of lies to cover his tracks. IRS Special Agents are the best financial investigators in the world, tenaciously committed to protecting the integrity of our tax system. The resolution of this case, as the tax season draws to a close, should serve as a warning to would-be cheats that there is no place to hide.”
This case was investigated by the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Karen L. Gable.
Norwich Man Sentenced to 15 Years for Transportation and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Robert Bresee, age 57, of Norwich, New York, was sentenced today to 180 months (15 years) in prison for transporting and possessing child pornography, announced United States Attorney Grant C. Jaquith and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Bresee, who was previously convicted in Chenango County Court of Rape in the First Degree, and sentenced to 15 years’ in prison, admitted that while on post-release supervision from that offense he uploaded 70 images of child pornography to a Google account, and possessed an additional 21 images on his cellular telephone.
Senior United States District Judge Thomas J. McAvoy also imposed a 15-year term of supervised release, which will start after Bresee is released from prison, and ordered a $200 special assessment. Bresee, who is currently designated a Risk Level 3 Sexually Violent Offender, will be required to continue to register as a sex offender upon his release from prison.
Bresee’s case was investigated by the Federal Bureau of Investigation (FBI) and the Norwich Police Department. The case was prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is 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 https://www.justice.gov/psc.
Norfolk Man Sentenced to Life Imprisonment for First Degree Murder in Indian CountryRead the Press Release
United States Attorney Joe Kelly announced that Joseph Lloyd James, 49, of Norfolk, was sentenced today in federal court in Omaha to life imprisonment for First Degree Murder in Indian Country by United States District Court Judge Brian C. Buescher. On November 5, 2018, James murdered Phyllis Hunhoff of Yankton, South Dakota, on the Santee Sioux Indian Reservation in Nebraska. There is no parole in the federal system. As part of his plea agreement, he waived his right to appeal, to seek a pardon, or seek a commutation.
Phyllis Hunhoff regularly traveled from her home in Yankton to her mother’s home in Utica, South Dakota. Her regular practice was to call her mother upon returning to Yankton. On November 4, 2018, at approximately 10 p.m., Phyllis Hunhoff left her mother’s residence, alone, to drive home to Yankton. She did not call her mother as she did not make it home. Having not heard from her daughter, her mother began repeatedly calling her phone to determine her whereabouts. All calls were unanswered.
James and other men were near Phyllis Hunhoff’s mother’s residence as she was leaving. James and another man encountered Phyllis Hunhoff outside of the residence and got into her car with her inside. James, Phyllis Hunhoff, and another man traveled to Norfolk, Nebraska, arriving at about 11:00 p.m. When they arrived in Norfolk, James remained in the vehicle, and the other man left the vehicle. James drove Phyllis Hunhoff’s vehicle, with her inside, to the Santee Sioux Indian Reservation in Knox County, Nebraska.
During the early morning hours of November 5, 2018, while on the Santee Sioux Indian Reservation, James killed Phyllis Hunhoff. He stabbed her with a knife and strangled her. She died in her vehicle as a result of the bleeding and strangulation. James drove Phyllis Hunhoff’s vehicle to a gas station on the Santee Sioux Indian Reservation. Video from the gas station showed James putting gasoline into her vehicle and driving away. Later, James returned in the same vehicle to the gas station and pumped gasoline into a soda bottle. James put the bottle containing the gasoline into the vehicle. He then drove to a wooded location on the Santee Sioux Indian Reservation in Knox County, Nebraska, where he set fire to Hunhoff’s body and her vehicle to conceal evidence of the murder. He abandoned the body and vehicle and left the area.
Law enforcement officers investigated the murder and obtained evidence, including surveillance footage of James at the gas station during the early morning hours of November 5, 2018. Santee Police recovered the shirt James was wearing when he killed Phyllis Hunhoff. Her DNA was on James’ shirt. James’s DNA was on clothing Phyllis Hunhoff was wearing when he killed her.
“Your conduct has taken a life and altered the lives of others,” Judge Brian C. Buescher told James before imposing a life sentence. “I hope you remember the pain you caused for everyday of your sentence which will be for the rest of your life.”
U.S. Attorney Kelly stated, “This was a brutal, horrific, and senseless murder and we hope that today’s life sentence brings some small comfort for the family.”
FBI Omaha Special Agent in Charge Kristi Johnson said, “The Santee Sioux Nation Tribal Police, Knox County Sheriff and Nebraska State Patrol partnered with FBI Omaha to investigate the brutal murder of Phyllis Hunhoff. Those efforts brought us to Joseph James’s life sentence today. The FBI will continue to work with our law enforcement and Native American partners and to fight crime on tribal land.”
The case was investigated by the Federal Bureau of Investigation, the Nebraska State Patrol, Knox County Sheriff’s Office, Santee Sioux Nation Tribal Police, Yankton County Sheriff’s Office, Yankton Police Department (South Dakota), Norfolk Police Department, the University of Nebraska Medical Center, the Nebraska State Fire Marshal, and the Lincoln Police Department.
The case was prosecuted by Assistant United States Attorneys Jody B. Mullis and Sean P. Lynch.
New York Man Charged with Wire Fraud in Alleged Multi-Million Dollar Cryptocurrency Investment SchemeRead the Press Release
SAN FRANCISCO – Douglas Jae Woo Kim has been charged in a criminal complaint with wire fraud in connection with a multi-million dollar scheme to raise money for bogus cryptocurrency investments announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John L. Bennett.
Kim, 27, of New York, NY, made his initial federal court appearance before U.S. Magistrate Judge Sallie Kim this morning to face the charge. The allegations describing the crime appear in an affidavit filed together with the complaint on July 9, 2020. According to the complaint and affidavit, Kim represented to friends and acquaintances that he was a cryptocurrency trader and requested loans for business purposes or to trade cryptocurrency. The complaint describes how Kim used cryptocurrencies, including Bitcoin (BTC) and Ether (ETH) to finance transactions as part of the scheme and how, on multiple occasions, he transferred some or all of the assets he received from his victims to online gambling sites operating outside the United States.
According to the affidavit, in October 2017, Kim contacted a victim by text message and said he was looking for investors interested in making what he called a short-term loan for a “fairly modest operation.” According to Kim, he was investing in a cryptocurrency operation in which he would make profit from fees charged to a peer-to-peer network and from exchange transactions. Kim represented to the victim that he already had $300,000 to $400,000 in financial holdings and that the operation “isn’t very risky to me.” Kim later emailed the victim details of the investment. Shortly after receiving cryptocurrency from the victim to finance the investment, Kim transferred about half of it to a bitcoin sportsbook and casino located outside the United States.
In an agreement dated January 1, 2018, Kim set out the terms of similar investment with a second victim. The agreement called for the victim to provide ETH valued at approximately $200,000. The same day, Kim converted more than half of the funds to BTC and, in the following days, transferred substantially all the converted cryptocurrency to his account with an offshore casino.
In the ensuing weeks and months, Kim convinced his victims to provide funds, all or part of which were transferred to cryptocurrency gambling sites. In sum, Kim convinced his victims to provide to him over $4.5 million. According to the affidavit, Kim’s victims all stated they would not have loaned money to Kim if they had known he was using the proceeds for gambling purposes.
Kim is charged with one count of wire fraud, in violation of 18 U.S.C. § 1343.
The complaint merely alleges that a crime has been committed, and Kim, like all defendants, is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, he faces a maximum statutory penalty of up to 20 years in prison and a fine of $250,000 or twice the gross gain or loss resulting from the scheme. In addition, the court may order additional terms of supervised release and restitution. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Kim’s next appearance is scheduled for August 19, 2020 before Judge Kim for status.
The prosecution is being handled by the Office of the U.S. Attorney, Northern District of California’s new Corporate Fraud Strike Force and is the result of an investigation by the FBI.
Neenah Man Indicted on Child Pornography ChargesRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on July 14, 2020, a federal grand jury returned an indictment against Jesse K. Bell (age: 32) of Neenah, Wisconsin.
According to the indictment, in May of 2020, Bell was in possession of pornographic images of children under 12 years old. Bell is charged with one count of possession of child pornography, contrary to Title 18, United States Code, Section 2252A(5)(b). He faces a sentence of up to 20 years of incarceration in federal prison.
This case was investigated by the Neenah Police Department with the assistance of the Federal Bureau of Investigation and the Brown County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Milford Man Who Distributed Drugs to Overdose Victim Sentenced to 21 Months in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANTHONY AMATO, 31, of Milford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 21 months of imprisonment, followed by three years of supervised release, for distributing fentanyl and heroin.
According to court documents and statements made in court, on August 26, 2019, the Milford Police Department and emergency medical personnel responded to a Milford rooming house on a report of a drug overdose at the location. Inside the residence, a 28-year-old male was pronounced deceased. At the scene, investigators interviewed witnesses and collected evidence related to narcotics use, including needles and wax folds, some of which contained suspected heroin.
The investigation revealed that the overdose victim and Amato, who resided in another room in the rooming house, were together in the afternoon of August 24, 2019. On August 29, 2019, a court-authorized search of Amato’s room revealed multiple ripped wax folds and other narcotics-related evidence. Some of the wax folds were marked with the same stamp as the wax folds found in the victim’s room. Laboratory analysis of the wax folds revealed fentanyl and heroin residue.
Subsequent review of text communications between Amato and the victim revealed that Amato provided the victim with heroin on August 24, 2019.
Amato’s criminal history includes multiple convictions for narcotics-related offenses in Connecticut.
Amato has been detained since his federal arrest on September 10, 2019. On January 3, 2020, he pleaded guilty to one count of possession with intent to distribute fentanyl and heroin.
This investigation was conducted by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force and the Milford Police Department. The case was prosecuted by Assistant U.S. Attorney Maria del Pilar Gonzalez.
Members of Jersey City Gangs Charged in Connection with Shooting of ChildRead the Press Release
NEWARK, N.J. – Three members of allied Jersey City gangs were charged with the July 7, 2020, shooting of a 12-year old child, U.S. Attorney Craig Carpenito announced today.
Marc Taylor, a/k/a “Bando,” 18, Jashawn Tate, a/k/a “Trilly,” 18, and Damari Blackwell, a/k/a “Juggy,” 18, all of Jersey City, are each charged by complaint with one count of assault with a dangerous weapon in aid of racketeering activity and one count of discharging a firearm during a crime of violence. They are scheduled to make their initial appearances July 16, 2020, by videoconference before U.S. Magistrate Judge James B. Clark III.
According to the documents filed in this case and statements made in court:
Taylor, Tate, and Blackwell are associated with three violent street gangs, which have operated pursuant to an alliance since at least September 2019. These gangs historically were associated with specific neighborhoods in Jersey City: the Marion Gardens Housing Complex, Rutgers Avenue, and the Curries Woods Housing Projects. Since the inception of this alliance, members and associates of Marion, Rutgers, and Curries Woods have operated as a cohesive unit, particularly with respect to their retaliatory acts of violence against rival gangs.
On July 7, 2020, Taylor, Tate, and Blackwell drove to rival gang territory and approached a group of individuals. Taylor fired numerous rounds with a .45 caliber handgun through the front passenger seat window of a vehicle while Blackwell simultaneously attempted to fire a Tec-9 assault pistol through the sunroof. A 12-year-old was shot in the leg. Following this assault, Tate attempted to evade law enforcement by fleeing Jersey City in a stolen car and crashed, which resulted in the apprehension of the three defendants. This targeted assault in rival gang territory appears to be a retaliation for a previous shooting.
On the count of assault with a dangerous weapon in aid of racketeering activity, Taylor, Tate, and Blackwell each face up to 20 years in prison. For their respective charges for discharging a firearm during a crime of violence, Taylor, Tate, and Blackwell each face a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison, which must run consecutively to any term of imprisonment imposed on any other charges.
U.S. Attorney Carpenito credited the Jersey City Police Department, under the direction of Public Safety Director James Shea; the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson, Newark Field Division; and special agents of the FBI, under the direction of Acting Special Agent in Charge Joe Denahan in Newark, with the investigation leading to the charges and arrests.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The case is being prosecuted by Assistant U.S. Attorney Desiree Grace Latzer of the Organized Crime and Gangs Unit in Newark.
Man charged with arson for setting fire to Seattle’s East Police Precinct during Capitol Hill ProtestRead the Press Release
Seattle – A former Seattle resident, who most recently resided in Tacoma, was arrested July 14, 2020, on a federal arson charge for setting fire to the outside of the Seattle Police East Precinct during the occupied protest known as ‘CHOP’, announced U.S. Attorney Brian T. Moran. ISAIAH THOMAS WILLOUGHBY, 35, will make his initial appearance in U.S. District Court in Seattle at 2:30 p.m. today.
“This is the third case we have charged federally for the criminal acts that tainted otherwise peaceful protests. Other crimes remain under investigation and may result in additional federal charges,” said U.S. Attorney Brian T. Moran. “Those who worked to turn protests into riots will not escape accountability for their criminal conduct.”
According to the criminal complaint, in the early morning hours of June 12, 2020, a person in distinctive clothing was captured on surveillance video near debris piled next to the wall of the Seattle Police East Precinct. In the video, the suspect appears to use a small can, similar to a gas can, to pour a liquid on the debris. The suspect steps out of frame, then appears to return with something that he lights on fire and tosses on the debris pile. The pile begins to burn, and the suspect walks away. The fire scorched the side of the building, but was extinguished by those nearby using fire extinguishers, and pulling the flaming debris from the building.
After the Seattle Police Department released pictures of the arson suspect, various people recognized him as WILLOUGHBY and noted that the distinctive sweatshirt came from a clothing line he represents. Relatives of WILLOUGHBY reported to police that he was in Seattle in the Capitol Hill Organized Protest Zone (CHOP) at the time of the fire. Following the fire, WILLOUGHBY took steps to remove posts from his social media accounts that may have linked him to the arson. However, at least some of his FaceBook posts remain, noting his anger at police and his knowledge of the East Precinct building.
WILLOUGHBY was originally arrested and charged in state court. WILLOUGHBY was arrested last night without incident at a Seattle residence.
“We support every American’s right to protest,” said ATF Seattle Field Division Acting Special Agent in Charge Mickey French. “But when someone turns to an act of violence, putting many lives in danger, ATF will work to ensure he or she is held accountable.”
“This defendant’s actions are another example, seen many times around the country, where recent peaceful protests and their message, were overshadowed by violence. In this case, he will have to answer for it,” said Raymond Duda, Special Agent in Charge, FBI Seattle.
The U.S. Attorney’s Office has charged two other defendants with crimes related to the civil unrest in May and June 2020. Margaret Aislinn Channon is charged with five counts of arson for setting police vehicles on fire the evening of May 30, 2020. Devinare Antwan Parker is charged with possession of an improvised destructive device for the improvised firearm he brought to a protest on May 31, 2020.
Arson is punishable by a mandatory minimum 5 years in prison and up to 20 years in prison.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the FBI and the Seattle Police Department.
The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
MS-13 Leader in El Salvador Charged with RICO and Terrorism OffensesRead the Press Release
ALEXANDRIA, Va. – A federal indictment has been unsealed charging an MS-13 leader in El Salvador with a racketeering conspiracy and conspiring to provide material support to terrorists based on his role as a leader of La Mara Salvatrucha (MS-13).
The defendant, Armando Eliu Melgar Diaz, 30, is the first MS-13 leader to face terrorism charges in the United States.
“In 2017, the President directed the Department of Justice to go to war against MS-13, and we did just that,” said Attorney General William Barr. “In coordination with our partners at the Department of Homeland Security, the Justice Department’s law enforcement components have successfully investigated, charged, and arrested command and control elements of MS-13 responsible for murder. Joint Task Force Vulcan’s operations have significantly degraded MS-13’s capabilities. While there is still work to be done, the Department of Justice remains committed to protecting Americans threatened by MS-13, and we will not rest until we have successfully defeated this transnational criminal organization.”
“MS-13 is a transnational gang of vicious predators that primarily preys on people and businesses in our nation’s vibrant immigrant communities,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Members of those communities should feel confident, as demonstrated today with this announcement, that members and associates of MS-13 that commit violent acts here will be held accountable.”
“Today’s announcements are the result of tremendous teamwork and coordination between prosecutors and law enforcement officers across the United States and Central America,” said John Durham, Director of Joint Task Force Vulcan. “MS-13 is a violent transnational criminal organization, whose criminal activities respect no boundaries. The only way to defeat MS-13 is by targeting the organization as a whole, focusing on the leadership structure, and deploying a whole-of-government approach against a common enemy.”
MS-13 has tens of thousands of members located in the United States, El Salvador, Guatemala, Honduras, Mexico, and elsewhere. The organization is responsible for murders, extortion, violence, drug trafficking, human trafficking, and other crimes, and has been designated as a terrorist organization by the government of El Salvador.
“This enforcement action sends a clear message that the FBI and our law enforcement partners represented on the Violent Gang Safe Streets Task Forces remain aggressive in investigating and dismantling gang activity that brings violence and fear into our communities,” said Timothy R. Slater, Assistant Director in Charge of the FBI Washington Field Office. “We will use all available tools in our investigative and legal arsenal to disrupt MS-13’s leadership, take these violent offenders off the streets, and ultimately bring justice to the victims of these brutal acts.”
“Homeland Security Investigations is committed to leveraging its unique cross-border authorities to identify and bring to justice members of violent gangs and other transnational criminal organizations,” said Jerry Templet, Special Agent in Charge of Homeland Security Investigations Nashville. “These violent transnational criminal networks threaten the safety and security of the law-abiding public, and HSI will continue to work with our federal, state and local partners to identify and seek prosecution of these dangerous individuals.”
According to court documents, Melgar Diaz moved to the United States from El Salvador in 2003, and settled in Virginia. After moving to Virginia, he joined the Gangster Locos Salvatruchas, also known as GLS, a clique of MS-13. In February 2013, Melgar Diaz was deported to El Salvador, but illegally returned to the United States in approximately August of 2013. In November 2016, Melgar Diaz was once again deported to El Salvador. He has resided in El Salvador since 2016.
After his return to El Salvador, Melgar Diaz allegedly continued to be an active member of MS-13. In approximately May 2017, Melgar Diaz allegedly became the Corredor, or leader, of the MS-13 East Coast Program. As Corredor, Melgar Diaz oversaw the activities of approximately 20 MS-13 cliques in the United States, including in Virginia, Maryland, North Carolina, Tennessee, Texas, New York, Massachusetts, New Jersey, California, Ohio, Rhode Island, Oklahoma, Louisiana, and the District of Columbia. Melgar Diaz allegedly also oversaw MS-13 activities internationally in El Salvador, Guatemala, and Mexico. Melgar Diaz allegedly coordinated financing for MS-13 by collecting dues and drug trafficking proceeds, aided in trafficking cocaine and marijuana, facilitated communications between MS-13 leaders in El Salvador and cliques in the United States, and authorized acts of violence in the United States, including murder. The money Melgar Diaz allegedly received from members in the United States was used to support MS-13’s violent activities in El Salvador, including by purchasing weapons.
Melgar Diaz is currently in custody El Salvador, where he is facing drug trafficking and conspiracy to commit murder charges.
In August 2019, Attorney General Barr created Joint Task Force Vulcan to carry out the recommendations of the MS-13 subcommittee formed under the Attorney General’s Transnational Organized Crime Task Force, which was the result of President Trump’s February 2017 Executive Order directing the Departments of Justice, State, and Homeland Security, and the Office of the Director of National Intelligence to coordinate a whole-of-government approach to dismantle transnational criminal organizations, such as MS-13, and restore safety for the American people. The principal purpose of JTFV is to coordinate and lead the efforts of the Justice Department and U.S. law enforcement agencies against MS-13 in order to dismantle the group.
The JTFV has successfully implemented the whole-of-government approach to law enforcement relating to MS-13; increased coordination and collaboration with foreign law enforcement partners, including El Salvador, Mexico, Honduras and Guatemala; designated priority MS-13 programs, cliques and leaders, who have the most impact on the U.S., for targeted prosecutions; and coordinated significant MS-13 indictments in United States Attorney’s Offices across the country, such as the Eastern District of New York, the Eastern District of Virginia, and the District of Nevada.
Federal prosecutors from the Department of Justice’s National Security Division and the Criminal Division, as well as 10 United States Attorney’s Offices have been assigned to serve the JTFV in full-time capacities: the Eastern District of New York; the Eastern District of Virginia; the District of Nevada; the Southern District of California; the District of Massachusetts; the Northern District of Ohio; the District of New Jersey; the Eastern District of Texas; the District of Utah; and the District of Columbia. In addition, all Department of Justice law enforcement agencies are involved in the effort – the Federal Bureau of Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; and the Bureau of Prisons. The Department of Homeland Security’s Homeland Security Investigations has also played a critical role in JTFV.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Timothy R. Slater, Assistant Director in Charge, FBI Washington Field Office; and Jerry Templet, Special Agent in Charge, Homeland Security Investigations Nashville, made the announcement after the indictment was unsealed.
Terwilliger would like to thank John Demers, Assistant Attorney General for National Security, and Brian Rabbitt, Acting Assistant Attorney General for the Criminal Division, for their assistance with this case.
Terwilliger also recognizes the following U.S. Attorneys for their assistance in this prosecution: Donald Q. Cochran, U.S. Attorney for the Middle District of Tennessee; Ryan K. Patrick, U.S. Attorney for the Southern District of Texas; Erin Nealy Cox, U.S. Attorney for the Northern District of Texas; and R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Terwilliger would also like to thank Attorney General Raul Melara of El Salvador for the assistance of his office in the investigation, as well as investigators from El Salvador’s Policia Nacional Civil (“PNC”) Centro Antipandilla Transnacional (“CAT”) unit for their assistance.
Special Assistant U.S. Attorneys Kevin L. Rosenberg and Matthew W. Shepherd, and Assistant U.S. Attorney Nicholas J. Patterson are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-103.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
MS-13 Gang Members Indicted for Six Murders on Long IslandRead the Press Release
A 24-count indictment was unsealed yesterday in federal court in Central Islip charging eight members of the violent transnational criminal organization La Mara Salvatrucha, also known as the “MS-13,” with multiple racketeering offenses in connection with six murders, two attempted murders, a kidnapping conspiracy and narcotics trafficking conspiracies, as well as related charges including assault in aid of racketeering and firearms offenses. The defendants Carlos Alfaro, Jose Moises Blanco, Oseas Gonzalez, Jose Jonathan Guevara-Castro, Victor Lopez-Morales, Ever Morales-Lopez, David Sosa-Guevara and Kevin Torres allegedly are members of one of two subgroups or “cliques” of the MS-13 operating on Long Island: the Hollywood Locos Salvatruchas (“Hollywood”) clique and the Sailors Locos Salvatruchas Westside (“Sailors”) clique. Sosa-Guevara and Torres allegedly were the New York leaders of the Hollywood and Sailors cliques, respectively, and were in direct communication with high-ranking MS-13 leaders in El Salvador.
Blanco and Gonzalez were arrested yesterday morning in Salisbury and Charlotte, North Carolina, respectively, appeared in the United States District Court for the Western District of North Carolina and were both detained. Blanco and Gonzalez will be transferred to the Eastern District of New York and arraigned at a later date before United States Circuit Judge Joseph F. Bianco. Alfaro, Lopez-Morales, Morales-Lopez and Sosa-Guevara, who are in state custody, and Torres, who is in federal custody, will also be arraigned at a later date before Circuit Judge Bianco. Guevara-Castro remains at large.
Two additional MS-13 members, both of whom were juveniles at the time they allegedly committed the crimes, have separately been charged with racketeering offenses and several murders. By statute, those cases remains under seal at this time.
Attorney General William P. Barr; Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA); Madeline Singas, District Attorney, Nassau County District Attorney’s Office (NCDAO); and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the arrests and indictment.
“In 2017, the President directed the Department of Justice to go to war against MS-13, and we did just that,” said Attorney General Barr. “In coordination with our partners at the Department of Homeland Security, the Justice Department’s law enforcement components have successfully investigated, charged, and arrested command and control elements of MS-13 responsible for murder. Joint Task Force Vulcan’s operations have significantly degraded MS-13’s capabilities. While there is still work to be done, the Department of Justice remains committed to protecting Americans threatened by MS-13, and we will not rest until we have successfully defeated this transnational criminal organization.”
“As alleged, the defendants committed multiple murders and other violent and wanton crimes on Long Island to further MS-13’s vicious code,” stated Acting United States Attorney DuCharme. “Victims were hacked with machetes, one shot numerous times and another decapitated. This Office, working tirelessly with our local and federal law enforcement partners, will not rest until violent gangs are eradicated from the communities they have terrorized.” Mr. DuCharme expressed his grateful appreciation to all the members of the FBI’s Long Island Gang Task Force, the DEA, the NCPD and the NCDAO, as well as to the members of the U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), the Suffolk County Police Department (SCPD), the FBI’s Charlotte Safe Streets Task Force, and the United States Attorneys’ Offices for the Western District of North Carolina, the Middle District of North Carolina, and the Eastern District of Virginia, for their outstanding assistance and partnership in this case.
"Putting these men in a federal prison for the rest of their lives, or facing possible death sentences, may not mean much to them as members of MS-13 because it fits their macho bravado,” stated FBI Assistant Director-in-Charge Sweeney. “But it means a tremendous amount of relief to the communities on Long Island they've terrorized by using machetes to murder teenagers. Our work over the last few years on the FBI Long Island Gang Task Force illustrates how vitally important it is to partner with those communities, gain their trust, and doggedly investigate these deplorable crimes. We've seen a vast improvement, but I want the community to know we're not going anywhere, our work is not done. If we can keep the lines of communication open, we can stop the violence before it turns deadly. Reach out and know we're here to help.”
“This investigation outlines the strategy used to kidnap, assault and murder six individuals by alleged members of MS-13. Each act is distinctive, but all are clear examples of the charged extreme violence and savagery of the defendants. I commend our law enforcement partners for their diligent and meaningful work,” stated DEA Special Agent-in-Charge Donovan.
“This indictment strikes yet another heavy blow to MS-13 and will further dismantle the brutal gang that terrorized so many communities,” stated District Attorney Singas. “Thanks to the relentless and collaborative efforts of law enforcement at the federal, state, and local levels MS-13 is on the run, gang violence is down, and our communities are safer. I commend the US Attorney’s Office, the FBI, DEA and NCPD for their outstanding work bringing this case.”
“This indictment is another step forward in eradicating the vicious MS-13 gangs from our communities which ultimately ensures the safety of our neighborhoods and residents. The six victims of gruesome murders are a stark reminder that we must continue our enforcement of all illegal gangs and never stop pursuing justice. I congratulate all of the investigators and their respective agencies for their hard work and dedication, who continue to work together to bring an end to this violence,” stated NCPD Commissioner Ryder.
As detailed in the indictment and in the government’s detention letter, in 2016 and 2017 the Sailors and Hollywood cliques of the MS-13 gang, both of whom had a significant presence in the Roosevelt and Freeport areas of Nassau County, collaborated in the criminal activities on behalf of the MS-13, including the murders of suspected rival gang members.
Murder of Oscar Acosta
Torres is charged in connection with his leadership role in the murder of 19-year- old Oscar Acosta, who was suspected of associating himself with the MS-13’s principal rival on Long Island, the 18th Street gang. Torres allegedly ordered a “greenlight,” or authorization, to kill Acosta and assigned specific roles for other Sailors to the plan and carry out the murder. On April 29, 2016, those MS-13 members lured Acosta to a wooded area near an elementary school in Brentwood. Once there, they brutally beat Acosta with tree limbs, knocking him unconscious. They then bound Acosta’s hands and feet, and coordinating with the local Sailors clique leader in Brentwood, moved Acosta to a more secluded area near an abandoned psychiatric hospital. They carried him into the woods behind a warehouse and stabbed and slashed him to death with a machete. The MS-13 members then buried Acosta’s body in a shallow grave, which was discovered in September 2016.
Murder of Kerin Pineda
The indictment charges Gonzalez, Guevara-Castro, Lopez-Morales, Morales-Lopez, Sosa-Guevara and Torres with the murder of 20-year-old Kerin Pineda, who was believed to be a member of the rival 18th Street gang. Torres allegedly ordered the “greenlight” for Pineda, marking him for death. Members of the Sailors clique coordinated with members of the Hollywood clique and devised the plan. On May 21, 2016, MS-13 members, armed with machetes, lured Pineda to a secluded wooded area near the Merrick-Freeport border. Torres, Lopez-Morales and Sosa-Guevara allegedly acted as lookouts for police and stayed in contact with the MS-13 members in the woods while they waited for Pineda. When Pineda arrived, he was surrounded and violently attacked by the MS-13 members, including both charged juveniles, who each took turns hacking and slashing him with their machetes. Pineda’s corpse was buried in a hole that had been dug the day before. Before leaving the scene, the MS-13 members contacted the lookouts who advised them that they could safely leave.
Murder of Josue Amaya-Leonor
Hollywood clique members Alfaro, Blanco, Gonzalez and Lopez-Morales are charged in connection with their roles in the murder of 19-year-old Josue Amaya-Leonor on September 4, 2016 because of his perceived association with the 18th Street gang. Amaya-Leonor was lured to a secluded wooded area deep into the Roosevelt Preserve to smoke marijuana. Once there, he was allegedly surrounded by the machete-wielding MS-13 members – including one of the charged juveniles – struck repeatedly and killed. The MS-13 members dug a hole and buried Amaya-Leonor’s body, which was not found until May 2018.
Murder of Javier Castillo
Torres is charged for his role in authorizing the murder of 15-year-old Javier Castillo on October 10, 2016 for his perceived association with the 18th Street gang. Members of the Sailors clique in Brentwood convinced Castillo, who lived in Central Islip, to go with them to Cow Meadow Park, a secluded area in Freeport, to smoke marijuana. Once there, the MS-13 members, including one of the charged juveniles, allegedly attacked and killed Castillo, each taking turns hacking him with a machete. Torres also served as the lookout for police in the area during the murder. The MS-13 members dug a hole and buried Castillo’s body, which was not discovered until October 2017.
Murder of Carlos Ventura-Zelaya
Alfaro is charged with the October 14, 2016 murder of 24-year-old Carlos Ventura-Zelaya in Roosevelt. Ventura-Zelaya had been marked for death by the MS-13 because of his suspected membership in the rival 18th Street gang. On the night of the murder, Alfaro and other MS-13 members spotted Ventura-Zelaya on the street in Roosevelt. Alfaro, armed with a 9mm handgun, got out of the car, approached Ventura-Zelaya, and allegedly fired all nine rounds from the gun, striking and killing Ventura-Zelaya.
Murder of Angel Soler
The racketeering charges against Hollywood clique members Lopez-Morales and Sosa-Guevara include the July 21, 2017 murder of 15-year-old Angel Soler and an August 2017 conspiracy to kidnap a victim identified in the indictment as John Doe #3. Soler was a suspected 18th Street gang member, and Sosa-Guevara allegedly ordered his murder. Lopez-Morales and other MS-13 members allegedly carried out the murder, luring Soler to wooded lot near Milburn Creek in Roosevelt to smoke marijuana. The group attacked Soler with machetes and a pickaxe, and buried his body in a shallow grave. The following day, MS-13 members went back to lay cement over Soler’s body to better conceal it.
Kidnapping Conspiracy
Just weeks after the Soler murder, Lopez-Morales and Sosa-Guevara allegedly planned the kidnapping, assault, and/or murder of John Doe #3, an MS-13 member who had violated the rules of the gang. Specifically, Sosa-Guevara instructed Lopez-Morales and two other MS-13 members to kidnap John Doe #3 and wait for further guidance from MS-13 leadership to kill or brutally assault him. On August 6, 2017, Lopez-Morales and the other gang members’ plan to kidnap John Doe #3 was foiled by law enforcement, who had been intercepting the calls arranging the attack, and Lopez-Morales was taken into custody.
Attack on Suspected Rivals
The indictment charges Hollywood clique members Alfaro and Gonzalez with attacking a group of males who had gathered in front of a house in Brentwood on July 18, 2016. That night, the MS-13 members allegedly agreed to drive around the area “hunting” for rival gang members to kill. Four of the gang members, including Alfaro, were selected to participate, armed with two handguns and a machete. While driving around Brentwood that night, the MS-13 members spotted a group of males whom they believed were members of the rival Bloods street gang. Alfaro and two other MS-13 members concealed their faces with bandanas, ran over to the group and attacked them. One victim, identified in the indictment as John Doe #1, was shot in the leg. Another victim, identified in the indictment as John Doe #2, was shot and slashed in the head, face and arms. John Doe #2 sustained disfiguring injuries, but survived the attack.
Cocaine and Marijuana Distribution
The indictment charges various members of the Sailors clique with conspiring to distribute cocaine and marijuana, and members of the Hollywood clique with conspiring to distribute marijuana, stemming from the MS-13 cliques’ alleged street-level sales of cocaine and marijuana on Long Island, the proceeds of which were used to help finance the MS-13’s criminal operations.
Additionally, during the execution of court-authorized search and seizure warrants at the North Carolina residences of both Blanco and Gonzalez yesterday, law enforcement agents and officers recovered additional evidence, including machetes, firearms, ammunition, narcotics, and MS-13 related paraphernalia.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, each defendant faces up to life in prison, and is eligible for the death penalty.
In August 2019, Attorney General Barr created Joint Task Force Vulcan to carry out the recommendations of the MS-13 subcommittee formed under the Attorney General’s Transnational Organized Crime Task Force, which was the result of President Trump’s February 2017 Executive Order directing the Departments of Justice, State, and Homeland Security, and the Office of the Director of National Intelligence to coordinate a whole-of-government approach to dismantle transnational criminal organizations, such as MS-13, and restore safety for the American people. The principle purpose of JTFV is to coordinate and lead the efforts of the Justice Department and U.S. law enforcement agencies against MS-13 in order to dismantle the group.
This indictment is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent transnational criminal organization. The MS-13’s leadership is based in El Salvador and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. With numerous branches, or “cliques,” the MS-13 is the largest and most violent street gang on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 55 murders in the Eastern District of New York, and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, the NCPD, the SCPD, the Nassau County Sheriff’s Department, the Suffolk County Sheriff’s Department, the Suffolk County Probation Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department and the New York State Department of Corrections and Community Supervision.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Paul G. Scotti, Justina L. Geraci and Megan E. Farrell are in charge of the prosecution, with assistance from Assistant District Attorney Jared Rosenblatt of the Nassau County District Attorney’s Office.
The Defendants:
CARLOS ALFARO (“Russo”)
Age: 23
Roosevelt, New YorkJOSE MOISES BLANCO (“Cuervo”)
Age: 30
Salisbury, North CarolinaOSEAS GONZALEZ (“Manota” and “Cordero”)
Age: 28
Charlotte, North CarolinaJOSE JONATHAN GUEVARA-CASTRO (“Suspechoso”)
Age: 25
Formerly of Roosevelt, New York, and Annapolis, MarylandVICTOR LOPEZ-MORALES (“Persa”)
Age: 32
Roosevelt, New YorkEVER MORALES-LOPEZ (“Kyen,” “Inke,” and “White Boy”)
Age: 26
Freeport, New YorkDAVID SOSA-GUEVARA (“Risky”)
Age: 28
Roosevelt, New YorkKEVIN TORRES (“Quieto” and “Inquieto”)
Age: 24
Freeport, New YorkE.D.N.Y. Docket No. 20-CR-251 (JFB)
Los Angeles County Woman Pleads Guilty to Conspiring to Distribute Heroin, Methamphetamine, and Cocaine on the DarknetRead the Press Release
SACRAMENTO, Calif. — Catherine Stuckey, 27, of Woodland Hills, pleaded guilty Tuesday to conspiracy to distribute controlled substances, U.S. Attorney McGregor W. Scott announced.
According to court documents, from June 2018 through May 2019, Stuckey conspired with others to operate several darknet vendor accounts, including “RaiseAppeals” on Dream Marketplace, “Diablow” on Silk Road 3.0, and “RaisedByDiablow” on Nightmare Marketplace. Through these accounts, Stuckey and her co-conspirators sold large quantities of heroin, cocaine, and methamphetamine to customers throughout the United States. Law enforcement searched the residences of Stuckey and her co-conspirators on May 16, 2019. Stuckey possessed more than 23 kilograms of methamphetamine, 1.9 kilograms of heroin, and 2.7 kilograms of cocaine.
This case is the product of an investigation by the Northern California Illicit Digital Economy Task Force (NCIDE), composed of agents from Homeland Security Investigations, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Drug Enforcement Administration, and IRS Criminal Investigation. The NCIDE Task Force is a federal task force focused on targeting all forms of darknet and cryptocurrency activity in the Eastern District of California. Assistant U.S. Attorneys Grant B. Rabenn and Paul Hemesath are prosecuting the case.
Stuckey is scheduled to be sentenced by U.S. District Judge John A. Mendez on Oct. 20. Stuckey faces a maximum statutory penalty of life in prison, a 10-year mandatory minimum, and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Leader of Worcester Latin Kings Chapter Pleads Guilty to Drug Distribution ChargesRead the Press Release
BOSTON – A leader of the Worcester Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to drug distribution charges.
Alvin Mojica, a/k/a “King Humble,” 32, pleaded guilty to one count of distribution of cocaine. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Oct. 28, 2020. Mojica was arrested and charged in December 2019, at which time he was the leader of the Worcester based Chapter of the Latin Kings.
During the plea proceedings, Mojica admitted that in May 2019 he distributed just under 14 grams of cocaine to a cooperating witness in an audio/video recorded transaction.
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.
Mojica is the third defendant to plead guilty in the case.
The charge 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.
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 Worcester Police Chief Steven M. Sargent 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 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.
Lawrence Contractor Sentenced to a Year and a Day in Oread Hotel Tax CaseRead the Press Release
TOPEKA, KAN. – A Kansas building contractor was sentenced Wednesday to a year and a day in prison and fined $25,000 for conspiring to deprive the city of Lawrence of sales tax revenues in connection with the development of a seven-story hotel adjacent to the University of Kansas campus. After completing his sentence, the defendant will serve three years on supervised release.
Thomas S. Fritzel, 54, Lawrence, Kan., pleaded guilty to one count of criminal conspiracy. Fritzel, part owner and manager of Oread Inn LC, was a party to an agreement with the city to finance the more than $40 million hotel project, including $11 million worth of street repairs and a public parking garage.
Oread Inn LC was to pay all costs up front and to be repaid $11 million for public improvements. The money to repay Oread Inn LC was to come from an incremental increase in property tax, a sales tax and an additional 1 percent tax on sales within a portion of the redevelopment district.
In his plea, Fritzel admitted that he and others caused false monthly Kansas sales tax returns to be submitted to the state of Kansas. The reports classified certain sales as occurring within the redevelopment district when in fact they occurred outside the district. As a result, the city of Lawrence lost a portion of sales taxes it was due.
The city of Lawrence filed a civil lawsuit against Fritzel seeking the lost revenue and the parties settled that case in 2017.
First Assistant U.S. Attorney Duston Slinkard commended the FBI, the Lawrence Police Department and Assistant U.S. Attorney Rich Hathaway for their work on the case.
Kokomo resident arrested on federal animal cruelty chargesRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today that Krystal Cherika Scott, 19, Kokomo, Ind. was arrested and charged with two counts of Making and Distributing Animal Crush Videos, in violation of Title 18, United States Code, Section 48 (the Preventing Animal Cruelty and Torture Act).
“As decent human beings, we have a great responsibility to protect and have compassion for the animals that inhabit this earth.” said Minkler. “It is unconscionable to think that any human being could possible bring themselves to such acts upon an animal. We cannot allow this behavior in a decent and moral society. That is why Ms. Scott must face the consequences of her choices.”
Beginning at least on or about May 3, 2020, and continuing until at least July 8, 2020, Scott, began posting images and videos over various social media platforms, that depicted Scott torturing and graphically killing cats and dogs by hanging, skinning and other means.
Scott’s conduct attracted the attention of several private citizens who began using publicly available information to attempt to identify the perpetrator. The concerned citizens shared and collected information so that they could provide it to law enforcement and the American Society for the Prevention of Cruelty to Animals.
On June 16, 2020, the Boise, Idaho Police Department received information from some of those concerned citizens, and immediately opened an investigation. After reviewing the videos and images, the officers concluded that they constituted “animal crush videos,” which is a federal violation.
On June 18, 2020, Boise Police Department contacted the FBI who began working to identify the perpetrator. Working in conjunction with the Boise Police Department and the Ada County Idaho Sheriff’s Office, the investigation revealed that Krystal Cherika Scott of Kokomo Indiana, was responsible for torturing and killing the animals, then posting the videos. Scott obtained the animals, at least in part, by responding to online ads from individuals who were seeking to give away their unwanted pets for adoption.
The FBI Indianapolis Field Office joined the investigation, and learned that Kokomo Police Department had recently contacted Scott after receiving similar animal cruelty complaints in May and June. At that time, Kokomo Police were unable to make an arrest and were unaware of the other investigations involving Scott.
As agents worked to gather evidence, Scott continued to post images of dead animals on Instagram and Tik-Tok as late as July 8th, 2020. On July 9, 2020, the Honorable Doris L. Pryor, Magistrate Judge in the Southern District of Indiana, approved the execution of search warrants seeking additional evidence from Scott’s person, residence, and vehicles, as well as the search and seizure of evidence obtained by the Kokomo Police Department.
On July 14, 2020, Special Agents of the FBI and other law enforcement officers executed the warrants. During the search, the FBI recovered numerous animal parts and skulls that were consistent with the size of cats and dogs. Agents also discovered approximately three live dogs, twelve live cats, and several lizards.
FBI recovered and seized the cellular phone used to produce and distribute the animal crushing videos. A full forensic analysis of the phone is currently underway. Scott told officers that her mother did not participate in acts of animal crushing or posting animal crushing videos.
This case was the result of an investigation by the Boise Police Department, the Ada County Sheriff’s Office, the Federal Bureau of Investigation Resident Agency in Boise, Idaho and the Indianapolis Field Office. The Kokomo Police Department also assisted with this case.
“Animal abusers have total power over that animal and, if someone is willing to be that cruel to an animal, evidence suggests they may target vulnerable humans as well,” said Special Agent in Charge Paul Keenan, FBI Indianapolis. “In November of 2019, the Preventing Animal Cruelty and Torture Act was passed to address this issue and to assist law enforcement to better target intervention efforts with respect to animal cruelty and the crimes for which it serves as a marker. Our agents and law enforcement partners will continue to diligently work to identify and investigate those who would perpetrate these crimes.”
“This case is an outstanding example of society’s intolerance to animal cruelty and the public’s willingness to do the right thing,” said Special Agent in Charge Paul Haertel of the FBI’s Salt Lake City Field Office. “Tips poured in from all over the world, assisting in an intense and technically complex investigation to find the alleged perpetrator and put a stop to the senseless and horrific abuse of innocent animals.”
“The Boise Police Department is thankful to have played a role in the investigation into this disturbing crime. We had concerned people from all over the world contact us about the terrible images they were seeing on social media. Our officers and detectives worked hard to investigate leads here in Boise and partnered with the FBI as the investigation grew and moved out of state.” said Boise Police Department Deputy Chief Ron Winegar. “We also want to thank the Ada County Sheriff’s Office for their assistance as well as the public for their many tips and patience as we worked to see this investigation through.”
According to Assistant United States Attorney Tiffany Preston who is prosecuting this case for the government, the defendant faces up to 7 years’ imprisonment, 3 years of supervised release, and a maximum fine of $250,000.
A charge is not evidence of guilt. All parties are presumed innocent until proven otherwise in federal court.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its public safety challenges. This demonstrates the office’s firm commitment to violent crime and crimes committed using the dark web. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Sections 2.3 and 4.6.
Kentucky Woman Pleads Guilty in $4 Million Warranty Fraud SchemeRead the Press Release
CHARLESTON, W.Va. – Tammy Newsome, 54, of Ashland, Kentucky, entered a guilty plea to mail fraud for her role in a scheme to defraud Toyota of more than $4.3 million, announced United States Attorney Mike Stuart. Newsome joins three other individuals who previously entered guilty pleas for their roles in the fraud scheme.
Newsome faces up to 20 years in prison when she is sentenced on October 15, 2020, and will be required to pay restitution of up to $4.3 million to Toyota.
“Newsome played a critical role in perpetrating this $4 million fraud scheme,” said United States Attorney Mike Stuart. “I commend the great investigative work of the U.S. Postal Inspection Service, the FBI, the W.V. State Police, and the W.V. Insurance Commissioner. Toyota may have suffered the loss but, ultimately, it’s consumers who really pay. These fraud schemes rip off every consumer. That’s why we work so hard to hold those responsible accountable.”
Newsome was employed as an administrative assistant for a Kentucky used car dealership, Big Blue Motor Sales, which bought trucks at wholesale prices at auction, obtained hundreds of copies of Kentucky and West Virginia residents’ driver’s licenses, fraudulently titled the trucks in the name of those residents, and induced Toyota to repurchase the trucks at 150% of value.
The scheme relied on Newsome to make false representations to the Department of Motor Vehicles to obtain false vehicle titles in the names of false owners. The titles obtained by Newsome were then used by other scheme participants to induce Toyota to repurchase the vehicles. Newsome admitted that she made false representations to the DMV, delivered cash bribes to other scheme participants, and forged signatures of false owners so that checks issued by Toyota in the name of a false owner could be deposited into Big Blue Motor Sales’ bank account.
The United States Postal Inspection Service, the Federal Bureau of Investigation, the West Virginia State Police and the West Virginia Office of the Insurance Commissioner conducted the investigation. United States District Judge Joseph R. Goodwin presided over the hearing. Former Assistant United States Attorney Stefan Hasselblad and Assistant United States Attorneys Andrew J. Tessman and Steven I. Loew are handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:19-CR-00250.
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Kansas Priest Sentenced for Possessing Child PornographyRead the Press Release
KANSAS CITY, KAN. – A Kansas priest who pleaded guilty to possessing child pornography was sentenced today to 37 months in federal prison, U.S. Attorney Stephen McAllister said. The defendant also was ordered to pay $5,000 under the Justice for Victims of Trafficking Act.
In his plea, Christopher Rossman, 47, who formerly served at the Annunciation Catholic Church in Baldwin City, Kan., admitted that investigators found child pornography on his Samsung Galaxy tablet. The crime occurred in September 2016 when monitoring software installed on Rossman’s computer devices reported he had visited adult pornography and child pornography websites. The archdiocese forwarded the report to law enforcement.
When investigators tried to find Rossman in Baldwin City, they learned that his sister had taken possession of the Galaxy tablet and tried to run over it a number of times. A forensics examination found files on the device depicting prepubescent females engaged in sexual activities.
McAllister commended FBI task force agent Angie Jones for her work on the case and the Archdiocese for it its cooperation. McAllister and Assistant U.S. Attorney David Zabel prosecuted.
Justice Department Files Civil Action to Shut Down Chicago Area Tax Return PreparerRead the Press Release
The United States has filed a complaint seeking to bar a Chicago area tax return preparer from preparing federal income tax returns for others, the Justice Department announced today.
The civil complaint against Anthony Jones was filed in the U.S. District Court for the Northern District of Illinois, and alleges that Jones prepared federal income tax returns for several Chicago area taxpayers that significantly understated his customers’ tax liabilities by fabricating or manipulating his customers’ business income or expenses. The suit also charges that Jones misrepresents his customers’ filing statuses.
According to the complaint, the IRS interviewed several of Jones’ customers, who allegedly stated that they did not generate the business income or incur the business expenses reported on the returns Jones prepared for them, and did not give Jones any reason to believe that such income or expenses were legitimate. The complaint alleges that, by repeatedly understating his customers’ tax liabilities, Jones has caused substantial harm to the United States.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Department of Justice Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Indictment unsealed charging six men with sexual exploitation of minorsRead the Press Release
U.S. Attorney Justin Herdman announced today that a four-count indictment was unsealed in the Northern District of Ohio charging six men with conspiracy to engage in sexual exploitation of children, sexual exploitation of children, conspiracy to receive visual depictions of minors engaged in sexually explicit conduct and conspiracy to access with intent to view child pornography.
Named in the indictment are David Pece, age 30, of Highland Heights, Ohio; Myron Brown, age 59, of Columbia, South Carolina; Mark Delacruz, age 31, of Temple City, California; Steven Foster, age 45, of Portsmouth, Ohio; Richard Avery, age 52, of Safford, Arizona and Ethan Shives, age 30, of Big Pool, Maryland.
According to the indictment, from November 2015 through March 2016, the defendants worked together in a group, and with others, to convince minor victims to engage in sexually explicit conduct online. Allegedly, this conduct was often preformed via webcam so that the defendants could record and view the material.
The indictment states that the defendants conspired together online with the intent to lure their minor victims into one or more chatroom-based websites. Once the minors visited these chatroom-based websites, the defendants and others would entice the victims to engage in sexually explicit acts, which they would then record.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The investigation preceding the indictment was conducted by agents with the Detroit Division of the FBI. This case is being prosecuted by Assistant U.S. Attorney Michael A. Sullivan and Assistant U.S. Attorney Kathryn Gaughan Andrachik.
IRS Criminal Investigation and United States Attorney remind taxpayers of the tax filing deadline; urge and to remain vigilant of scamsRead the Press Release
The Internal Revenue Service Criminal Investigation division and the U.S. Attorney’s Office for the District of Kansas remind taxpayers of the July 15 filing and payment deadline and warn against an increase in tax and COVID-19 scams.
Due to COVID-19, the original filing deadline and tax payment due date for 2019 was postponed from April 15 to July 15. Taxpayers filing Form 1040 series returns must file Form 4868 by July 15 to obtain the automatic extension to Oct. 15.
“Although the extension provides additional time to file the tax return – it is not an extension to pay any taxes due”, said Adam Steiner, Acting Special Agent in Charge of the IRS Criminal Investigation division in the St. Louis Field Office. “For people facing hardships who cannot pay in full, including those affected by COVID-19, the IRS has several options available to help. The IRS encourages taxpayers to visit IRS.gov as soon as possible to explore these options and avoid accruing interest and penalties after the July 15 deadline.”
As the filing deadline is today, taxpayers should beware of tax and COVID-19 related scams. “Criminals use the tax filing deadline as an opportunity to steal personal and financial information”, said U.S. Attorney Stephen McAllister for the District of Kansas. “Taxpayers should remain vigilant and know that the IRS will not initiate contact with them via phone, email or social media to request personal or financial information.”
In the last few months, the IRS Criminal Investigation division (CI) has continued to see a tremendous increase in a variety of Economic Impact Payment scams and other financial schemes. CI continues to work with its law enforcement partners to put a stop to these schemes and bring criminals to justice.
Taxpayers can report COVID-19 scams to the National Center for Disaster Fraud. Taxpayers can also report fraud or theft of their Economic Impact Payments to the Treasury Inspector General for Tax Administration (TIGTA). Unsolicited (phishing) e-mails that appear to be from the IRS should be forwarded to [email protected].
For the most up-to-date information about the tax filing deadline and IRS impersonation scams, taxpayers can visit IRS.gov.