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12 August 2020
Accountant Pleads Guilty to Tax Evasion and Obstruction Offenses; Tax Loss Exceeds $1 MillionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that LOUIS DEMAIO, 69, of Guilford, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Janet Bond Arterton to tax evasion and obstruction offenses.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, DeMaio was employed as an accountant in East Haven and, from approximately 2010 to 2018, also operated Almatt LLC, a temporary employment agency that provided day laborers to construction companies. Although DeMaio listed an individual (“Individual A”) on paper as the owner of Almatt, Almatt was effectively owned and run by DeMaio.
As part of Almatt’s operating procedures, Almatt invoiced construction companies for the cost of labor provided and, from the payments received from the companies, paid the employees for services rendered. Almatt and DeMaio then provided the employees with W-2 forms reflecting that Almatt had undertaken required federal tax withholdings. However, Almatt and DeMaio failed to withhold taxes and subsequently failed to pay over those withholdings to the IRS. Almatt also never filed yearly income tax returns or quarterly 941 forms reflecting federal withholding and payroll taxes owed.
In addition, DeMaio issued hundreds of thousands of dollars of checks from Almatt made out to himself and to family members who did not work at the business. From 2010 through 2018, DeMaio and his family received more than $2.5 million from Almatt. DeMaio failed to report any of these distributions on his federal personal income tax returns.
In 2015, the IRS initiated a civil examination of Almatt, and then expanded the examination to evaluate the completeness of DeMaio’s personal income tax returns. When the IRS confronted DeMaio about his failure to report income paid to him by Almatt, DeMaio fabricated a story that a substantial portion of the payments he received from Almatt were loan repayments from Individual A. DeMaio also provided an IRS revenue agent with a false notarized document that DeMaio had created to support his story. When the civil investigation was referred to IRS Criminal Investigation, DeMaio confirmed the fake loan repayment story in an interview with IRS special agents.
The tax loss as a result of DeMaio’s criminal conduct is $1,132,398. DeMaio has agreed to pay full restitution, as well as interest and penalties.
DeMaio pleaded guilty to one count of tax evasion, which carries a maximum term of imprisonment of five years, and one count of obstructing and impeding the due administration of Internal Revenue laws, which carries a maximum term of imprisonment of three years. Judge Arterton scheduled sentencing for November 3, 2020.
DeMaio is released on a $100,000 bond pending sentencing.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
11 August 2020
Wheeling man sentenced for his role in a drug distribution operationRead the Press Release
WHEELING, WEST VIRGINIA – Charles Cesar Ansley, Jr., of Wheeling, was sentenced today to 12 months and one day of incarceration for drug distribution in the Wheeling area, U.S. Attorney Bill Powell announced.
Ansley, also known as “Mike,” pled guilty to one count of “Aiding and Abetting the Distribution of Methamphetamine within 1000 feet of a Protected Location” in May 2020. Ansley, age 40, admitted to selling methamphetamine near Luau Manor in Ohio County in March 2019.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Virginia man who participated in Columbus murder pleads guilty to participating in MS-13 racketeering conspiracyRead the Press Release
COLUMBUS, Ohio – A Virginia man pleaded guilty in federal court in Columbus today to participating in a racketeering conspiracy in Columbus on behalf of the transnational gang MS-13.
In his plea, Jose Daniel Gonzalez-Campos (a/k/a Flaco), 31, accepts responsibility for his role in the November 2015 murder of 17-year-old high school student Wilson Villeda.
Parties involved in Gonzalez-Campos’ case have recommended a sentence of 30 years in prison.
Gonzalez-Campos is one of 23 members and associates of MS-13 in Columbus charged in a February 2018 second superseding indictment. He is the eighteenth defendant to plead guilty.
The defendants are charged in a racketeering conspiracy, which includes five murders as well as attempted murder, extortion, money laundering, drug trafficking, assault, obstruction of justice, witness intimidation, weapons offenses and immigration-related violations.
Court documents detail that the defendants committed a host of overt acts in furtherance of the conspiracy, including: 1) the December 2006 murder of Jose Mendez, a suspected confidential informant, in Perry County; 2) the November 2008 murder of Ramon Ramos on Lockbourne Road in Columbus; 3) the mid-2015 murder of Carlos Serrano-Ramos, a suspected rival gang member, near Innis Road in Columbus; 4) the November 2015 murder of Wilson Villeda near Innis Road in Columbus; and 5) the December 2016 murder of Salvador Martinez-Diaz, a suspected rival gang member, on Melroy Avenue in Columbus.
The murders sometimes involved defendants using weapons like machetes, knives and hammers to attack and beat their victims to death.
In the murder of Wilson Villeda, MS-13 members and associates attacked and killed the victim with bladed weapons and buried his body in a shallow grave in the woods in Innis Park.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations; Franklin County Sheriff Dallas Baldwin; and Columbus Police Chief Thomas Quinlan announced the guilty plea entered today before U.S. District Judge Edmund A. Sargus, Jr.
Deputy Criminal Chief Brian J. Martinez and Assistant United States Attorney Noah R. Litton are representing the United States in this case.
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U.S. Attorney Pak announces $500,000 award to provide housing to victims of human trafficking in AtlantaRead the Press Release
ATLANTA - U.S. Attorney Byung J. “BJay” Pak announced that Wellspring Living, in the Northern District of Georgia received $500,000 from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime (OVC), to provide safe, stable housing and appropriate services to victims of human trafficking.
“Human trafficking is a barbaric criminal enterprise that subjects its victims to unspeakable cruelty and deprives them of the most basic of human needs, none more essential than a safe place to live,” said Attorney General William P. Barr. “Throughout this Administration, the Department of Justice has fought aggressively to bring human traffickers to justice and to deliver critical aid to trafficking survivors. These new resources, announced today, expand on our efforts to offer those who have suffered the shelter and support they need to begin a new and better life.”
“A core mission of this office is the targeting and dismantling of human trafficking organizations operating in this district. The support our anti-trafficking prosecutors and investigators receive from victim advocates and non-governmental organizations, like Wellspring Living, is absolutely critical to our office’s success in combatting these horrific crimes,” said U.S. Attorney Pak. “This grant will provide essential resources to sex trafficking victims who are especially vulnerable due to ongoing fear of reprisal to themselves and their families, a wish to avoid embarrassment and public shame, and a simple desire to move on with their lives.”
“Human traffickers dangle the threat of homelessness over those they have entrapped, playing a ruthless game of psychological manipulation that victims are never in a position to win,” said OJP Principal Deputy Assistant Attorney General Kathrine T. Sullivan. “These grants will empower survivors on their path to independence and a life of self-sufficiency and hope.”
“Wellspring Living is grateful for this investment in survivors of Human Trafficking through the recent OVC award,” said Wellspring Living Executive Director Mary Frances Bowley. “We are honored to work alongside incredible partners like the Justice Department, specifically the U.S. Attorney, to provide a safe and restorative environment for survivors to recover from the complex trauma of trafficking. As our survivors recover, the ability to work cooperatively with prosecutors provides vital progress to end trafficking.”
The grant, awarded to Wellspring Living, will provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs. The grant will also provide funding for support needed to help victims locate permanent housing, secure employment, as well as occupational training and counseling. Wellspring Living is among 73 organizations receiving more than $35 million in OVC grants to support housing services for human trafficking survivors.
Human trafficking offenses are among the most difficult crimes to identify, and the scope of human trafficking victimization may be much greater than the limited data reflects. A new report issued by the National Institute of Justice, another component of the Office of Justice Programs, found that the number of human trafficking cases captured in police reports may represent only a fraction of all such cases. Expanding housing and other services to trafficking victims remains a top Justice Department priority.
The Office for Victims of Crime, for example, hosted listening sessions and roundtable discussions with stakeholders in the field in 2018 and launched the Human Trafficking Capacity Building Center. From July 2018 through June 2019, 118 OVC human trafficking grantees reported serving 8,375 total clients including confirmed trafficking victims and individuals showing strong indicators of trafficking victimization.
For a complete list of individual award amounts and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/htvictimsfactheet.pdf.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.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.
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.
Tyler County man sentenced for firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Dale Robert Barnhart, of Alma, West Virginia, was sentenced today to 33 months of incarceration for a firearms charge, U.S. Attorney Bill Powell announced.
Barnhart, age 57, pled guilty to one count of “Unlawful Possession of a Firearm and Ammunition” in February 2020. Barnhart, who is prohibited from having a firearm because of prior convictions, is accused of having two shotguns, a rifle, and multiple rounds of ammunition in August 2019 in Tyler County.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
U.S. District Judge John Presto Bailey presided.
Two Montrose Residents Plead Guilty to Drug Distribution ChargesRead the Press Release
GRAND JUNCTION – United States Attorney Jason R. Dunn announced that Angelina Maestas and Naomi Vaughn, both of Montrose, Colorado, pleaded guilty to possession and distribution of methamphetamine and heroin. United States Magistrate Judge Gordon P. Gallagher heard the change of pleas late last week. Additionally, Maestas separately pleaded guilty to witness, victim or informant tampering. The Denver Division of the Drug Enforcement Administration joined in today’s announcement.
According to court documents, including the stipulated facts contained in the defendants’ plea agreements, Maestas and Vaughn conspired to distribute and possess with intent to distribute 50 grams or more of actual methamphetamine, 500 grams or more of a mixture of a substance containing a detectable amount of methamphetamine, and less than 100 grams of heroin.
In addition to her plea on the drug charge, Maestas also pleaded guilty to witness, victim or informant tampering. According to court records, Maestas posted discovery documents protected by court order on Facebook. This included material that identified at least one co-conspirator who Maestas alleged cooperated with police.
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 Numbers 19-cr-535 and 20-cr-0166. The defendants are being prosecuted by Assistant U.S. Attorney Zachary Phillips.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Two Members of Brooklyn-Based Gang Charged with Possessing a Firearm Used in a ShootingRead the Press Release
A two-count indictment was unsealed today in federal court in Brooklyn charging Davon Brown and Christian Williams, members of the violent street gang Folk Nation Gangster Disciples, with being felons in possession of a firearm in connection with their involvement in a March 14, 2020 shooting that wounded a man. The defendants were arrested this morning and will make their initial appearance this afternoon via videoconference before United States Magistrate Judge Peggy Kuo.
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), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the charges and arrests.
“Preventing gun violence by repeat offenders is a priority of this Office, and we are addressing it aggressively in close coordination with our federal and local law enforcement partners,” stated Acting United States Attorney DuCharme. “As alleged, a minor dispute escalated to a shooting, underscoring the need to eradicate violent gangs that jeopardize the safety of our communities.”
“It's the random violence alleged here that keeps escalating, and enveloping an entire community of innocent people who are being terrorized by the actions of repeat offenders. We are working hourly with our law enforcement partners to address the recent spate of violence, and doing everything we can to make sure their return to crime is a short-lived exercise in futility,” stated FBI Assistant Director-in-Charge Sweeney.
“The gun violence alleged in this indictment tears at the fabric of life in our city. I applaud the NYPD’s vigorous efforts, along with our federal partners, to stop this kind of violence and work closely with the communities we are sworn to serve,” stated NYPD Commissioner Shea.
As detailed in the government’s detention letter filed earlier today, Brown and Williams were involved in the shooting of a victim who was disrespectful toward their gang. On March 20, 2020, an individual with the victim threw a drink at a woman inside the Gold Room Restaurant and Lounge in Prospect Lefferts Gardens, splashing a person standing with Brown. An argument ensued, and the victim, a Crips gang member, flashed a gang sign known as “dropping the rake” — a gesture intended to be insulting to the Folk Nation. The argument continued outside the bar where Brown allegedly displayed a gun and fired a shot into the air. Brown then handed the gun to Williams who walked behind the victim and shot him in the buttocks at close-range. Williams fled and discarded the gun a half block away. The gun was recovered by law enforcement, and DNA from both defendants was found on the weapon.
Brown, who was on federal supervised release at the time of the charged offense, has prior convictions for criminal possession of a loaded firearm, robbery and racketeering conspiracy, among other crimes. Williams, who was on New York state parole at the time of the charged offense, has prior convictions for, among other crimes, conspiracy and criminal possession of a loaded firearm in connection with an earlier shooting of a Folk Nation gang rival.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, both defendants face a maximum sentence of 10 years in prison. If convicted of violating his supervised release, Brown faces an additional sentence of up to two years in prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General William Barr has enhanced PSN as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Jonathan Siegel is in charge of the prosecution.
The Defendants:
DAVON BROWN (also known as “Chico Dinero”)
Age: 26
Brooklyn, New YorkCHRISTIAN WILLIAMS (also known as “Zonee Flocks”)
Age: 25
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-293 (WFK)
Troy Man Admits to Trafficking 10 Kilograms of HeroinRead the Press Release
ALBANY, NEW YORK – Mario Figueroa-Portalatin, age 41, of Troy, New York, pled guilty today to conspiring to distribute at least 10 kilograms of heroin.
The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration (DEA), New York Division; and Rensselaer County Sheriff Pat Russo.
In pleading guilty, Figueroa-Portalatin admitted that for two years ending in March 2020, he sold at least 10 kilograms of heroin, which he acquired from a source of supply in New York City. From March 2018 to March 2020, he traveled to New York City once a month, on average, and each time purchased between 500 grams and 1 kilogram of heroin that he brought back to Troy, packaged, and sold.
On March 30, 2020, Figueroa was the subject of a traffic stop in Troy. Police officers seized a black canvas bag, on the front passenger floorboard of his vehicle, that contained approximately 200 grams of heroin that Figueroa intended to sell that day to a customer. Law enforcement then executed warrants on Figueroa’s apartment and another apartment in the same building, and seized $34,001 in drug trafficking proceedings. In Figueroa’s bedroom, officers found a Hi-Point model JHP .45 caliber pistol.
Figueroa will be sentenced on December 8, 2020 by Chief United States District Judge Glenn T. Suddaby. He faces at least 10 years and up to life in prison, as well as post-release supervision of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by DEA Albany and the Rensselaer County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Statement from Attorney General William P. Barr on the Resignation of Seattle Police Chief Carmen BestRead the Press Release
Attorney General William P. Barr issued the following statement in response to the resignation of Seattle Police Chief Carmen Best:
"I was disheartened to learn of the resignation of Seattle Police Chief Carmen Best. Her leadership and demonstrated commitment to her oath of office reflected all that is good about America’s law enforcement. In the face of mob violence, she drew the line in the sand and said, "Enough!", working tirelessly to save lives, protect her officers, and restore stability to Seattle. Her example should be an inspiration to all who respect the rule of law and cherish safety and security in their communities. This experience should be a lesson to state and local leaders about the real costs of irresponsible proposals to defund the police."
St. Louis Man Sentenced to 60 Months in Prison for Distributing MethamphetamineRead the Press Release
St. Louis, MO –Michael Brooks, 55, of St. Louis, was sentenced to 60 months in prison for distribution of actual (pure) methamphetamine. The quantity of actual methamphetamine, for which Brooks is accountable, is at least 50 grams but less than 150 grams. Brooks appeared in federal court today before United States District Judge Henry E. Autrey.
According to court documents, on October 12, 2016, at the direction of investigators, a Confidential Source (CS) arranged a meeting with Brooks to deliver a money counter they had previously discussed. The CS met Brooks at his house in St. Louis to deliver the money counter to Brooks. Brooks gave the CS a sample of the methamphetamine directly from a clear plastic bag.
On October 13, 2016, at the direction of investigators, the CS met Brooks at his house and bought two ounces of methamphetamine for $2,000.
On November 15, 2016, at the direction of investigators, the CS met Brooks at his house again to buy more methamphetamine. When Brooks opened the door to his house, he had a gun in a black holster under his arm. The CS mentioned something about carrying the gun in broad daylight, and Brooks responded "all day, everyday." The CS then bought two ounces of methamphetamine for $1,700.
On December 15, 2016, investigators conducted a traffic stop of the vehicle that Brooks was driving. Brooks possessed a loaded Smith & Wesson .357 Magnum in a black holster that was between the center console and driver's seat.
The Drug Enforcement Administration, Fairview Heights Resident Office, investigated this case. Assistant U.S. Attorney Sara Koppenaal handled the case.
St. Louis Man Sentenced for Drug Trafficking at Clinton-Peabody Housing ComplexRead the Press Release
St. Louis – Bruce Edward Johnson, 27, of St. Louis, was sentenced to 36 months in prison. Johnson was involved in a conspiracy to distribute more than 400 grams of fentanyl centered in the Clinton-Peabody housing complex on the near south side of the City of St. Louis. He appeared before the Honorable Catherine D. Perry.
According to court documents, between September 2014 and July 2018, Johnson acted as a distributor for drug customers seeking fentanyl in the St. Louis Metropolitan area. Johnson and other associates used various apartments within the Clinton-Peabody housing complex for purposes of storing and distributing fentanyl, among other things.
On July 18, 2018, investigators conducted a search warrant at Johnson’s residence. Inside Johnson’s bedroom, officers located a Glock 27, .40 caliber firearm with an extended magazine, an Anderson Arms AR-15 rifle and ammunition. Johnson knew he was a convicted felon prior to July 18, 2018.
In February, Johnson pled guilty to one felony count of conspiracy to distribute and possess with intent to distribute fentanyl and one felony count of felon in possession of a firearm.
This case was an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the St. Louis Metropolitan Police Department, the St. Louis Division of the FBI, the St. Louis Division of the DEA, the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Marshals Service and the St. Charles County Sheriff’s Department.
St. Joseph Man Charged with Producing Child PornographyRead the Press Release
KANSAS CITY, Mo. – A St. Joseph, Missouri, man was charged in federal court today with producing, distributing, and possessing child pornography.
Tyler Bradley Wirth, 31, was charged in a four-count criminal complaint filed in the U.S. District Court in Kansas City, Mo., with two counts of producing child pornography, one count of distributing child pornography over the internet, and one count of possessing child pornography. Wirth remains in federal custody pending a detention hearing on Friday, Aug. 14.
According to an affidavit filed in support of today’s federal criminal complaint, Wirth communicated online with FBI online covert employees in New York and Kansas City during an investigation into a group of users who expressed a sexual interest in minors. Wirth allegedly sent each of the FBI online covert employees the same image of child pornography depicting a prepubescent girl identified in court documents as “Minor Victim 1 (MV1).”
Wirth sent the FBI employee in Kansas City several videos of child pornography, the affidavit says.
Law enforcement officers executed a search warrant at Wirth’s residence on Monday, Aug. 10. Wirth told officers he possessed about 1,000 images of child sexual abuse, including images of MV1 and a second victim, identified in court documents as “Minor Victim 2.” He allegedly produced pornographic images of both child victims and distributed those images to other users via social media in order to receive additional images of child pornography from those users.
The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Kenneth Borgnino. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."San Fernando Valley Man Charged with Fraudulently Obtaining COVID-Relief Loans for His Sham Sewing CompanyRead the Press Release
LOS ANGELES – A San Fernando Valley man now believed to have fled the United States today faces federal criminal charges today for allegedly obtaining more than $860,000 in Paycheck Protection Program (PPP) loans for a shell company and then transferring the bulk of his illicit gains to his personal bank accounts.
Arman Manukyan, 49, of Panorama City, was charged with one count of bank fraud and one count of aggravated identity theft in a criminal complaint filed Monday in United States District Court.
According to an affidavit in support of the complaint, Manukyan in June submitted two applications for PPP loans to Bank of America for $1.7 million on behalf of two shell companies registered in his name – Argo Global, Inc., and Express Wiring.
Manukyan allegedly claimed Argo Global was a sewing business with 73 employees and submitted to Bank of America, and later the Small Business Administration, false tax documents purporting to show wages and taxes for the company. The underwriting packet also did not include a list of employees or associates for Argo Global, which listed a virtual office address in Beverly Hills as its place of business, according to the affidavit. Ultimately, an $867,187 loan was approved for Argo Global, Inc.
Shortly after receiving the funds in Argo Global’s name, Manukyan allegedly transferred most of the balance to two of his personal bank accounts. When a bank investigator contacted Manukyan after one of his accounts had been frozen because of suspicious activity, he allegedly told the bank he was going to use the PPP loan to start a limousine business, contradicting what he wrote on his loan application, the affidavit states.
In June, Manukyan also allegedly submitted to Bank of America a loan application of $884,748 for Express Wiring, a shell company with a Glendale address. The Small Business Administration rejected the application, indicating it either had been submitted after the June 22 deadline for PPP loans or the allocated PPP funds had run out, according to the affidavit.
In July, a seizure warrant was executed on Manukyan’s bank accounts, recovering $866,019.
A search warrant executed at Manukyan’s home on July 22 revealed multiple debit cards used for unemployment benefits from the California Employment Development Department (EDD) that were in the names of different people, the affidavit states. Manukyan allegedly told law enforcement that he found two of the EDD cards on the street and decided to keep them, but insisted that he never used them. Investigators recovered another $118,474 from debit cards linked to Manukyan.
On August 9, law enforcement received information that Manukyan had boarded a flight from Mexico City inbound to Paris with a final destination of Minsk, Belarus, the affidavit states.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of both charges, Manukyan would face a statutory maximum sentence of 32 years in federal prison.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was 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, Congress authorized more than $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. 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.
This matter was investigated by Homeland Security Investigations, the Treasury Inspector General to the Tax Administration, the Small Business Administration – Office of Inspector General, the United States Postal Inspection Service, and the Employment Development Department, Investigation Division.
This case is being prosecuted by Assistant United States Attorney Andrew G. Brown of the Major Frauds Section.
Refugee Who Threatened Church Shooting Charged with Gun CrimeRead the Press Release
A man who allegedly threatened to commit a church shooting in Lubbock has been charged with a firearm offense following an investigation led by FBI Dallas’ Lubbock Resident Agency with support from ATF and HSI, announced U.S. Attorney Erin Nealy Cox.
Hieu Tran Trung, a 45-year-old North Vietnamese refugee living in Lubbock, has been charged via criminal complaint with being a felon in possession of a firearm. He made his initial appearance before U.S. Magistrate Judge D. Gordon Bryant, Jr., Monday afternoon.
According the complaint affidavit, a friend reached out to the FBI after Mr. Trung allegedly stated that he would “spray up” random people at his church.
Mr. Trung – who was barred from possessing firearms due to a 1998 conviction for assault on a public servant – allegedly asked the friend to “get me one of them straps,” a slang term for firearms. The friend refused.
A week later, on July 7, Mr. Trung allegedly texted the friend a photo of himself with two firearms. He later texted the friend a photo of a large amount of ammunition, along with the phrase “locked and leaded.”
Mr. Trung allegedly told the friend he felt people weren’t taking him seriously, and mentioned that he could easily kill someone and skip town. In late July, he vowed he would “show who he can be.”
A subsequent search of Mr. Trung’s residence revealed a 9 mm semiautomatic pistol stashed inside a briefcase. The gun was loaded, with one round in the chamber, nine rounds in the magazine, and two additional loaded magazines in a shoulder holster.
“I’m grateful to the citizen who reported his friend’s concerning behavior to federal authorities. His courage in speaking out may well have saved lives,” said U.S. Attorney Nealy Cox. “It’s critical that we act quickly when we get information like this and I commend our law enforcement partners who immediately intervened before the defendant could inflict real harm.”
“The defendant knew he was prohibited from possessing firearms, but still went out of his way to illegally obtain them. He also threatened to use these illegal firearms against his perceived enemies. As a result, we moved quickly to prevent a violent crime,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “The FBI and our law enforcement partners are committed to detecting and assessing possible threats as they arise. We work hard to protect our communities from violent individuals and encourage the public to report any suspicious activity that poses a threat to public safety.”
A criminal complaint is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Trung is presumed innocent unless and until proven guilty in a court of law.
If convicted, he faces up to 10 years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office, the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division, Homeland Security Investigations, and Texas Department of Public Safety conducted the investigation with the assistance of the Lubbock Police Department and the Lubbock County Sheriff’s Office. Assistant U.S. Attorney Jeff Haag is prosecuting the case.
The case was brought under Project Guardian, the Justice Department’s signature initiative to reduce gun violence using federal firearm laws.
Portales man charged with failing to register as a sex offenderRead the Press Release
ALBUQUERQUE – Erich Deolax Riker, 44, of Portales, New Mexico, appeared in federal court Friday, August 7, for an arraignment on an indictment charging him with failure to register as a sex offender.
According to the indictment and other court records, Riker, under the name of Jamie Lee Wood, was convicted of criminal sexual offenses in Minnesota. Under the Sex Offender Registration and Notification Act, those convictions require Riker to register as a sex offender.
While living in Portales, New Mexico, Riker was arrested by the New Mexico State Police on November 13, 2019, in the course of an unrelated criminal investigation. Subsequently, it was determined that Riker had failed to register as a sex offender between October 10, 2019, and November 13, 2019, in Roosevelt County in the State of New Mexico.
Riker was transported to Eugene, Oregon, following his November arrest for violating his terms of supervised release related to a separate federal conviction for failure to register as a sex offender. Earlier this month, he was returned to New Mexico, where he will remain in custody pending his trial for the federal charge. The trial date has not yet been scheduled. Riker faces up to 10 years in prison if convicted of the charged offense.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty.
The Roswell office of the United States Marshal Service investigated this case with assistance from the New Mexico State Police. Assistant U.S. Attorney Jennifer M. Rozzoni is prosecuting the case.
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Polk County Man, Previously Convicted for Domestic Violence, Pleads Guilty to Making False Statement in Attempt to Acquire A FirearmRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces that Daniel John Ferrer (29, Davenport) has pleaded guilty to making a false statement while attempting to purchase a firearm. Ferrer faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Ferrer had previously been convicted of domestic violence battery and was prohibited from possessing a firearm or ammunition under federal law. Ferrer subsequently pawned three firearms at a pawnshop. When he attempted to repurchase one of those firearms, he was required to complete paperwork related to his criminal history. Ferrer falsely stated that he had never been convicted of a misdemeanor crime of domestic violence.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Colin P. McDonell.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Pittsburgh Woman Sentenced to Prison for Role in South Side Gang’s Drug TraffickingRead the Press Release
PITTSBURGH, PA - A former resident of Pittsburgh, Pennsylvania, was sentenced in federal court to 33 months of imprisonment and three years of supervised release on her conviction of conspiracy to possess with intent to distribute heroin and fentanyl, United States Attorney Scott W. Brady announced today.
United States District Judge William S. Stickman, IV imposed sentence on April Price, 32.
According to information presented to the Court, in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and drug-trafficking activity in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019.
Intercepted communications revealed that Ms. Price was involved in the distribution of heroin and fentanyl, and communicated directly with Anthony Jetter and Christopher Highsmith, who are among her most culpable co-defendants, and discussed distributor level quantities of narcotics. The court was further informed that Ms. Price was seen on pole camera footage conducting a drug transaction with several co-conspirators at a stash house on April 25, 2019. As a condition of her guilty plea on February 12, 2020, Ms. Price accepted responsibility for the distribution of 60 grams of heroin and fentanyl.
Assistant United States Attorneys Christy C. Wiegand and Brendan McKenna prosecuted this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
Philadelphia Man Sentenced to 45 Years for Sex Trafficking Children in Northeast PhiladelphiaRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Artavius Horne, a/k/a “Lo”, 36, of Philadelphia, PA was sentenced to 45 years in prison and 10 years of supervised release by United States District Court Judge Gerald J. Pappert for sex trafficking three children for years.
In September 2019, Horne was convicted at trial of three counts of sex trafficking minors by force, fraud or coercion. During the week-long trial, the government proved that the defendant organized, operated and led a sex trafficking venture based in and around Northeast Philadelphia between 2013 and 2015, and in 2018. As part of the scheme, the defendant recruited, enticed and maintained three minor children, one of whom was as young as 13 years old, to engage in commercial sexual encounters. Horne created Internet advertisements for each of the victims on the website Backpage.com, and he transported them across state lines to New Jersey, New York, Washington D.C., and Maryland for the purpose of engaging in commercial sex acts. He also kept the victims in apartments throughout Philadelphia, known as “trap houses,” where they were made to engage in commercial sex for the benefit of the defendant. In 2017, Horne was convicted of similar offenses in Bucks County, PA.
“Horne committed these heinous acts while on parole for doing the exact same thing,” said U.S. Attorney McSwain. “He has no regard for the law -- or even basic human decency -- as evidenced by his willingness to sell the bodies of children for sex to benefit himself. He deserves every minute of the 45 years that he received today.”
“Artavius Horne made his living by sexually exploiting children, advertising underage girls for sex with strangers,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “He even transported them to other cities and states, determined to keep the money coming in at their expense. Know that the FBI and our law enforcement partners are working every day to put traffickers like Horne behind bars and ensure some justice for their victims. We ask anyone with knowledge of child or adult sex trafficking to let us know about it, so we can help. Call 1-800-CALL-FBI or go online to tips.fbi.gov. Tipsters can remain anonymous, if they like.”
The case was investigated by the Federal Bureau of Investigation, and it is being prosecuted by Assistant United States Attorney Melanie Babb Wilmoth.
Owner of Investment Firm That Managed over $1 Billion in Assets Arrested in Federal Case Alleging He Defrauded InvestorsRead the Press Release
LOS ANGELES – The founder and former CEO of an investment firm that specializes in debt instruments was arrested this morning on federal charges alleging he falsified financial records to fraudulently inflate the value of the funds he managed, allowing him to charge investors millions of dollars in unauthorized fees.
Brendan Ross, 47, of La Cañada Flintridge, who founded Direct Lending Investments, LLC (DLI) in 2012, was taken into custody by special agents of the FBI.
In conjunction with the unsealing of the criminal case, the United States Securities and Exchange Commission today filed a civil complaint today against Ross alleging he defrauded investors.
Today’s arrest was pursuant to a grand jury indictment filed on July 30 that charges Ross with 10 counts of wire fraud based on a scheme he executed between late 2013 and early 2019 to defraud investors in funds managed by DLI, a firm he still owns. Ross resigned as CEO in March 2019, and soon after the SEC filed a civil complaint against DLI, which resulted in the appointment of a court-ordered receiver in early April 2019.
By the summer of 2017, only five years after Ross founded DLI, the firm had over $1 billion in assets under management. According to the indictment, Ross allegedly directed DLI to invest the funds’ assets in, among other things, a company that loaned money to small businesses and retailers. The DLI funds made money when the loans performed, meaning that the borrowers made timely payments. The indictment alleges that, rather than disclose some of the loans were not performing, Ross falsified monthly reports to make it appear borrowers were making payments. The “payments” actually came from fee rebates given by the company originating the loans.
By lying about the true status of the loans, Ross caused DLI to overstate the value of these loans on the funds’ books and fraudulently inflate the funds’ value, according to the indictment. Specifically, Ross allegedly caused the monthly asset values of the funds to be cumulatively inflated by over $300 million over the course of about four years. By fraudulently inflating the value of the funds, Ross was able to collect millions of dollars in fees he otherwise would not have been able to charge to clients, according to the indictment.
To further his scheme and help conceal it, Ross allegedly arranged for the sale of approximately $55 million of the loans to a third-party buyer in the summer of 2017. Ross once again inflated the value of these loans by lying about their status, falsely telling the buyer that borrowers had been making payments on many of these loans, according to the indictment.
Ross is expected to be arraigned on the indictment this afternoon in United States District Court in downtown Los Angeles.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Each of the 10 wire fraud counts in the indictment carries a statutory maximum sentence of 20 years in federal prison.
This matter was investigated by the FBI. The SEC provided substantial assistance during the criminal investigation.
This case is being prosecuted by Assistant United States Attorneys Poonam G. Kumar and Catherine S. Ahn of the Major Frauds Section.
Olean Woman Pleads Guilty to Selling FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy Jr. announced today that Mary Kettle, 36, Olean, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiring to possess with intent to distribute, and distributing, butyryl fentanyl. The charge carries a maximum penalty of 20 years in prison, and a $1,000,000 fine.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that between July 2018 and December 30, 2018, the defendant conspired with Erin Cameron and others sell butyryl fentanyl.
On October 22, 2018, the Bureau of Indian Affairs, Drug Enforcement Administration, and the Southern Tier Regional Drug Task Force set up a controlled purchase of butyryl fentanyl with Erin Cameron. The delivery of the butyryl fentanyl was made by the defendant. A second controlled purchase of butyryl fentanyl was made on February 6, 2019, and once again Kettle made the delivery.
Erin Cameron was previously convicted and is awaiting sentencing.
The plea is the result of an investigation by the Bureau of Indian Affairs, under the direction of Jason Thompson, Associate Director of the Office of Justice Services; the Southern Regional Drug Task Force, under the direction of Cattaraugus County Sheriff’s Office and Sheriff Timothy Whitcomb; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Sentencing is scheduled for December 9, 2020, at 2:00 p.m. before Judge Sinatra.
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North Country Man Sentenced for Making a False Statement to the VARead the Press Release
ALBANY, NEW YORK – Alex Cheney, age 55, of Moriah, New York, was sentenced today to 3 years of probation and 100 hours of community service for making a false statement to the Department of Veterans Affairs (VA) in order to receive Individual Unemployability benefits.
The announcement was made by United States Attorney Grant C. Jaquith and Special Agent in Charge Christopher F. Algieri, United States Department of Veterans Affairs, Office of the Inspector General, Northeast Field Office.
As part of his guilty plea, Cheney admitted that he falsely certified on an employment questionnaire that he was not employed or self-employed at any time during the prior 12 months when he was, in fact, working in construction and earning wages.
This case was investigated by the VA Office of Inspector General and prosecuted by Assistant U.S. Attorney Ashlyn Miranda.
Milwaukee Man Sentenced to Federal Prison for Possessing a Loaded Firearm While Trafficking DrugsRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on Friday, August 7, 2020 James K. Nicksion (age 24) of Milwaukee was sentenced by the Honorable Judge Lynn Adelman to 60 months’ imprisonment. Once released, Nicksion will serve a three-year term of supervised release.
According to court records, Nicksion ran from police officers during a traffic stop. Inside the car, police found a 9mm semi-automatic pistol carrying an extended magazine. The gun was loaded with 30 rounds of ammunition. Police also found roughly five grams of crack cocaine and a scale. Nicksion had previously been convicted of dealing marijuana and bail jumping.
This case was prosecuted as part of the Project Safe Neighborhoods initiative. Project Safe Neighborhoods is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods’ strategy brings together all levels of law enforcement and community resources to reduce violent crime and improve the quality of life in all our neighborhoods.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.
Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://go.usa.gov/xpBrs.
The Milwaukee Police Department and Federal Bureau of Investigation investigated the case, with assistance from the Drug Enforcement Administration and Shawano County Sheriff’s Office. Assistant United States Attorney Farris Martini prosecuted the case.
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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For further information contact: Public Information Officer Kenneth Gales
(414) 297-1700
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Mexican man sent to prison after smuggling half a million dollarsRead the Press Release
McALLEN, Texas – A 35-year-old resident of Mexico City, Mexico, has been ordered to prison for bulk cash smuggling, announced U.S. Attorney Ryan K. Patrick.
Jorge Alberto Ruiz-Periban pleaded guilty April 8, admitting he evaded a currency reporting requirement in his attempt to conceal $570,247 while trying to take the money into Mexico.
Today, U.S. District Judge Randy Crane handed Ruiz-Periban a 30-month sentence. As part of the terms of the plea agreement, the money will be forfeited to the United States. In handing down the sentence, the court noted the Ruiz-Periban’s employment as a horse trainer in Mexico and that he was likely recruited by the cartel to launder money. Not a U.S. citizen, he is expected to face removal proceedings following the sentence.
“Today’s sentencing of Ruiz-Periban demonstrates that bulk cash smuggling is a serious crime motivated by greed, which directly contributes to the cartel violence that damages communities on both sides of the border,” said Special Agent in Charge Shane Folden of Homeland Security Investigations (HSI) in San Antonio. “HSI will continue to utilize its broad investigative authorities to dismantle transnational criminal organizations who blatantly ignore the laws of this nation.”
On Jan. 8, Ruiz-Periban entered the southbound inspection lanes in a vehicle at the Anzalduas Port of Entry. Authorities referred him to secondary inspection, at which time he denied possession of $10,000 or more in U.S. currency. However, they located an abnormality in the spare tire of Ruiz-Periban’s vehicle and subsequently discovered $570,247 concealed in it.
At the time of his plea, Ruiz-Periban admitted he intended to evade the currency reporting requirement and intended to transport the money he hid in the tire from Mission to Mexico.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI conducted the investigation with Customs and Border Protection. Assistant U.S. Attorney Matthew Redavid prosecuted the case.
McKeesport Felon Facing Charges of Distributing Fentanyl Resulting in Death and Illegal Possession of AmmunitionRead the Press Release
PITTSBURGH - A resident of McKeesport, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The two separate but related indictments, returned on August 4, named Rahde Williamson aka "Raw" age 25, as the sole defendant.
According to the first Indictment, the defendant conspired to possess with intent to distribute and to distribute 400 grams or more of fentanyl from November of 2018 through August of 2019. The Indictment further alleges that in June of 2019 Williamson distributed fentanyl that caused an overdose death. The second Indictment alleges that on July 15, 2020, the defendant, a convicted felon, possessed ammunition after having been convicted of multiple crimes punishable by more than one year in prison. Those convictions include a federal drug conviction for conspiracy to distribute more than one kilo of heroin and possession with intent to distribute less than 100 grams of heroin. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition. The court was further informed that the defendant was on federal supervised release when he purchased the ammunition.
The law provides for a maximum total sentence of up to life in prison, a fine of not more than $11,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. The defendant will remain incarcerated pending the resolution of the case
Assistant United States Attorney Nicole Vasquez Schmitt is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Monessen Police Department conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
McKean County Man Charged with Violating Federal Tax LawsRead the Press Release
ERIE, Pa. - A resident of Smethport, Pennsylvania has been indicted by a federal grand jury in Erie on charges of violating federal tax laws, United States Attorney Scott W. Brady announced today.
The three-count Indictment named Brian L. Gustafson as the sole defendant.
According to the Indictment presented to the court, when the IRS sought to bring Gustafson into compliance with his filing and payment requirements, Gustafson engaged in several acts of evasion: 1) he closed a bank account known to the IRS and replaced it with an undisclosed account; 2) he failed to disclose personal and corporate bank accounts to the IRS on Form 433-A; 3) upon discovery of the undisclosed account, he lied to an IRS revenue agent about his use of the account, and; 4) he withdrew significant cash from the undisclosed account.
The law provides for a maximum total sentence of 11 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Internal Revenue Service, Criminal Investigation Division conducted the investigation leading to the Indictment in this case.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Manhattan Man Sentenced to 15 Years in Prison for Attempting to Provide Material Support to Terrorist OrganizationRead the Press Release
The Department of Justice announced today that Jesus Wilfredo Encarnacion, a/k/a “Jihadistsoldgier,” “Jihadinhear,” “Jihadinheart,” “Lionofthegood,” was sentenced to 15 years in prison for attempting to provide material support to Lashkar e-Tayyiba (LeT), a Pakistan-based designated foreign terrorist organization responsible for multiple high-profile attacks, including the infamous Mumbai attacks in November 2008. In addition, Encarnacion was sentenced to a lifetime term of supervised release. Encarnacion pleaded guilty on Jan. 22, 2020, before United States District Judge Ronnie Abrams, who also imposed today’s sentence.
“Unfortunately, individuals continue to attempt to travel to foreign countries to support terrorist organizations. Encarnacion’s sentence reflects the seriousness with which the justice system takes these efforts,” said Assistant Attorney General for National Security John C. Demers. “The National Security Division remains committed to identifying and holding accountable those who seek to join and support designated foreign terrorist organizations.”
“Jesus Encarnacion plotted to travel abroad, to join and train with Lashkar e-Tayyiba, infamous worldwide for the jihadist murder of innocent civilians, and to carry out shootings, bombings, and beheadings in behalf of that terrorist organization,” said Acting U.S. Attorney Audrey Strauss for the Southern District of New York. “Thanks to the FBI, the NYPD, and the Joint Terrorist Task Force, Encarnacion has been sentenced to a lengthy prison term for his crime.”
According to the criminal complaint, indictment, other court filings, and statements during court proceedings:
In November 2018, Encarnacion expressed his desire to join a terrorist group in an online group chat, where he met another individual (CC-1). CC-1 introduced Encarnacion to an individual who, unbeknownst to CC-1 or Encarnacion, was in fact an undercover FBI employee (UC-1). Encarnacion repeatedly expressed, in the course of recorded communications through a social media service with CC-1 and through an encrypted messaging service with UC-1, his allegiance to and support for LeT, which, since approximately 2001, has been designated as a Foreign Terrorist Organization by both the United States Secretary of State and the Immigration and Nationality Act.
Over several months, Encarnacion discussed his desire and plans to join LeT overseas so that he could receive training and participate in violent acts of terrorism. For example, Encarnacion told UC-1 that he was “ready to kill and die in the name of Allah” and sought UC-1’s assistance to help Encarnacion travel abroad to serve as an “executioner” for LeT, stating, “I want to execute. I want to behead. Shoot.” Encarnacion further stated that he aspired to commit terrorist attacks (“a bombing and shooting”) in the United States, but lacked “guidance” and “guns” to do so.
By early 2019, Encarnacion and UC-1 agreed on a plan that Encarnacion believed would allow him to join LeT in Pakistan. Encarnacion told UC-1 that he had made arrangements to travel to a particular city in Europe (the “European City”), as the first step in traveling to Pakistan to join LeT. Encarnacion purchased an airline ticket for a flight scheduled to depart on Feb.7, 2019, from John F. Kennedy International Airport (JFK Airport) to the European City. On Feb. 7, 2019, Encarnacion traveled to JFK Airport, where he was arrested by the FBI after he attempted to board that flight.
In addition to the prison term, Encarnacion was also sentenced to serve a life term of supervised release.
Assistant Attorney General Demers and Ms. Strauss praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York City Police Department. Ms. Strauss also thanked the Counterterrorism Section of the Department of Justice’s National Security Division, as well as the New York Office of U. S. Customs and Border Protection.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys David W. Denton Jr. and Kimberly J. Ravener are in charge of the prosecution, with assistance from Bridget Behling of the National Security Division’s Counterterrorism Section.
Manhattan Man Sentenced to 15 Years in Prison for Attempting to Provide Material Support to Terrorist OrganizationRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and John C. Demers, the Assistant Attorney General for National Security, announced today that JESUS WILFREDO ENCARNACION, a/k/a “Jihadistsoldgier,” “Jihadinhear,” “Jihadinheart,” “Lionofthegood,” was sentenced to 15 years in prison for attempting to provide material support to Lashkar e-Tayyiba (“LeT”), a Pakistan-based designated foreign terrorist organization responsible for multiple high-profile attacks, including the infamous Mumbai attacks in November 2008. ENCARNACION pled guilty on January 22, 2020, before U.S. District Judge Ronnie Abrams, who also imposed today’s sentence.
Acting Manhattan U.S. Attorney Audrey Strauss said: “Jesus Encarnacion plotted to travel abroad, to join and train with Lashkar e-Tayyiba, infamous worldwide for the jihadist murder of innocent civilians, and to carry out shootings, bombings, and beheadings on behalf of that terrorist organization. Thanks to the FBI, the NYPD, and the Joint Terrorism Task Force, Encarnacion has been sentenced to a lengthy prison term for his crime.”
Assistant Attorney General John C. Demers said: “Unfortunately, individuals continue to attempt to travel to foreign countries to support terrorist organizations. Encarnacion’s sentence reflects the seriousness with which the justice system takes these efforts. The National Security Division remains committed to identifying and holding accountable those who seek to join and support designated foreign terrorist organizations.”
According to the criminal Complaint, Indictment, other court filings, and statements during court proceedings:
In November 2018, ENCARNACION expressed his desire to join a terrorist group in an online group chat, where he met another individual (“CC-1”). CC-1 introduced ENCARNACION to an individual who, unbeknownst to CC-1 or ENCARNACION, was in fact an undercover FBI employee (“UC-1”). ENCARNACION repeatedly expressed, in the course of recorded communications through a social media service with CC-1 and through an encrypted messaging service with UC-1, his allegiance to and support for LeT, which, since approximately 2001, has been designated as a Foreign Terrorist Organization by both the United States Secretary of State and the Immigration and Nationality Act.
Over several months, ENCARNACION discussed his desire and plans to join LeT overseas so that he could receive training and participate in violent acts of terrorism. For example, ENCARNACION told UC-1 that he was “ready to kill and die in the name of Allah” and sought UC-1’s assistance to help ENCARNACION travel abroad to serve as an “executioner” for LeT, stating, “I want to execute. I want to behead. Shoot.” ENCARNACION further stated that he aspired to commit terrorist attacks (“a bombing and shooting”) in the United States, but lacked “guidance” and “guns” to do so.
By early 2019, ENCARNACION and UC-1 agreed on a plan that ENCARNACION believed would allow him to join LeT in Pakistan. ENCARNACION told UC-1 that he had made arrangements to travel to a particular city in Europe (the “European City”), as the first step in traveling to Pakistan to join LeT. ENCARNACION purchased an airline ticket for a flight scheduled to depart on February 7, 2019, from John F. Kennedy International Airport (“JFK Airport”) to the European City. On February 7, 2019, ENCARNACION traveled to JFK Airport, where he was arrested by the Federal Bureau of Investigation (“FBI”) after he attempted to board that flight.
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In addition to the prison term, ENCARNACION was also sentenced to serve a life term of supervised release.
Ms. Strauss praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the New York City Police Department, and over 50 other federal, state, and local agencies. Ms. Strauss also thanked the Counterterrorism Section of the Department of Justice’s National Security Division, as well as the New York Office of U. S. Customs and Border Protection.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys David W. Denton Jr. and Kimberly J. Ravener are in charge of the prosecution, with assistance from Bridget Behling of the National Security Division’s Counterterrorism Section.
Man Sentenced to Prison for Drug Trafficking and Firearm CrimesRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 11 1/2 years in prison for possession with intent to distribute an ounce of cocaine and possession of firearm after being convicted of a felony.
“Illicit narcotics such as cocaine, heroin, and fentanyl are ravishing the United States,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “With every gram of cocaine, rock of crack, or package of heroin that he sold, Graham fanned the flames of the opioid epidemic in Virginia. Graham has at least six prior felony convictions, including two involving the illegal possession of a firearm and four drug related convictions. This is precisely the type of defendant worthy of federal prosecution, and today’s sentence should send a strong message to those who choose to peddle poison in our communities.”
According to court documents, Nicholas Gabriel Graham, 29, was arrested on felony drug trafficking warrants as he drove away from his residence. Graham had an ounce of cocaine and $1,263 in his pocket and a loaded semiautomatic pistol in his car. A search of his residence pursuant to a search warrant resulted in the recovery of three more loaded pistols and a loaded AK-47, a quantity of fentanyl, more cocaine, including crack cocaine and items used to traffic narcotics. Graham had been previously convicted of a felony and was prohibited from possessing a firearm.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Colonel David R. Hines, Hanover County Sheriff, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Olivia N. Emerson prosecuted 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. 3:19-cr-147.
Man and Woman Sentenced to A Combined 15 Years for Sex Trafficking CrimesRead the Press Release
CHATTANOOGA, Tenn. – On August 5, 2020, Savannah Grissum, 22, of Douglasville, Georgia, and Alonzo Dean Westmoreland, 31, of Kennesaw, Georgia, were sentenced by the Honorable Curtis L. Collier in the United States District Court for the Eastern District of Tennessee at Chattanooga.
Both plead guilty in September 2019 to transporting in commerce an underage victim for the purpose of engaging in prostitution. As part of the plea agreement, Grissum and Westmoreland admitted to bringing the underage victim from Georgia to Tennessee for the purpose of prostitution. Grissum was sentenced to 78 months in prison, followed by six years’ supervised release; Westmoreland received 108 months in prison and six years’ supervised release. Both will be required to register with the sex offender registry in any state in which they reside, work, or attend school, and comply with special sex offender conditions during the supervised release.
In June 2018, Cobb County Police Department received a report of a runaway juvenile. The FBI from the Atlanta and Chattanooga divisions, were informed that the juvenile was located in Chattanooga. Deputies from the Hamilton County Sheriff’s Office and the FBI responded to a local motel, where they recovered the underage victim who had been prostituted in Chattanooga for approximately four days. Grissum and Westmoreland used the proceeds from that illegal activity to pay for their hotel room and other expenses.
The prosecution was the result of a joint investigation led by FBI Special Agents Terrilynn James and Terri L. Green of the Chattanooga Division, and Nathan Whiteman of the Atlanta Division, Detective Robert Rush of the Hamilton County Sheriff’s Office, with assistance from Detectives Hunter Llewellyn and Ray Drew with the Cobb County Police Department.
Assistant U.S. Attorney Jay Woods represented the United States in court proceedings.
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Man Accused of Mailing Threatening Communications to Kanawha County Circuit Judge Arrested on Federal Criminal ComplaintRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today that Keith Lessard, 40, of Uxbridge, Massachusetts, was arrested on a federal criminal complaint alleging that he mailed threatening communications to a Kanawha County Circuit Judge. According to the criminal complaint, Lessard engaged in a series of communications with the Judge and others using email and the United States Postal Service. The communications were part of a scheme to extort money from the Judge by threatening injury to her reputation by claiming that she engaged in illegal prosecutorial misconduct in a 2010 case against Lessard when she was serving as an Assistant Prosecuting Attorney in Kanawha County. The complaint further notes that there is no evidence supporting Lessard’s claims of illegal conduct on the part of the Assistant Prosecutor.
“Any threat to any member of the judiciary is taken very seriously. I commend the FBI and the U.S. Postal Inspection Service for conducting the thorough investigation which led to Lessard’s arrest today,” said United States Attorney Mike Stuart.
“We take extortion threats very seriously and will investigate them to our full potential,” said FBI Pittsburgh Special Agent in Charge Michael Christman. “People who think they can extort others need to know there will be consequences. These crimes cause severe emotional distress and will not be tolerated.”
“The U.S. Postal Inspection Service is committed to preserving the integrity of the U.S. mail. By working closely with our law enforcement partners in operations like this, we can hold those engaged in terrible crimes accountable for their actions,” said Tosha Dennis, Acting Inspector in Charge of the Pittsburgh Division.
Lessard faces up to two years in prison, if convicted.
The Federal Bureau of Investigation (FBI) and the United States Postal Inspection Service (USPIS) are conducting the investigation. Assistant United States Attorney Joshua C. Hanks is handling the prosecution.
Note: The charge contained in the complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-mj-00106.
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Lodge Grass man admits strangling girlfriendRead the Press Release
BILLINGS – A Lodge Grass man today admitted strangled his girlfriend during an assault last year at her residence on the Crow Indian Reservation, U.S. Attorney Kurt Alme said.
Augustus Christopher Wolfblack, also known as Augustus Christopher Flatmouth, 19, pleaded guilty to assault by strangulation of a dating partner. Wolfblack faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. Wolfblack was released pending further proceedings.
In court documents filed in the case, the prosecution said Wolfblack assaulted the victim on Sept. 15, 2019 at her residence in Lodge Grass. Wolfblack struck the victim with his fists, put her in a headlock and strangled her. After the assault, Wolfblack left and the victim sought help from relatives. Bureau of Indian Affairs law enforcement officers interviewed the victim, who was treated at the Indian Health Service in Crow Agency for injuries. When interviewed, Wolfblack initially denied assaulting the victim except to say he grabbed her arm after she hit him in the head. After being pressed, Wolfblack admitted he had hit the victim with his fists, pushed and shoved her and held her up against a wall by putting his hand around her neck, although he claimed that he did not squeeze her neck.
Assistant U.S. Attorney Lori Suek is prosecuting the case, which was investigated by the FBI.
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Leader of Rhode Island Latin Kings Chapter Pleads Guilty to Narcotics Conspiracy ChargesRead the Press Release
BOSTON – A leader of the Rhode Island Chapter of the Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to conspiracy charges.
Eric Thomas a/k/a “King E,” 46, pleaded guilty to conspiracy to distribute cocaine. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Dec. 8, 2020. Thomas was arrested and charged in December 2019, at which time he had been identified as the leader of the Rhode Island Chapter of the Latin Kings.
During the plea proceedings, Thomas admitted that in August 2019, he conspired with others to purchase cocaine from members of the Latin Kings in New Bedford for resale. Days later, on Sept. 4, 2019, a co-conspirator was captured in a video recording purchasing 186 grams of cocaine from members of the New Bedford Chapter in a deal facilitated by Thomas.
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.
The conspiracy charge provides for a sentence of up to 20 years in prison, at least three years and up to life of supervised release and a fine of up to $1 million. 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.
Klamath Falls Man Accused of Cashing More than 40 Years' Worth of Deceased Relative's Social Security ChecksRead the Press Release
MEDFORD, Ore.—U.S. Attorney Billy J. Williams announced today that a Klamath Falls, Oregon man is facing federal criminal charges for cashing more than $458,000 worth of social security checks issued in the name of his deceased aunt. George Doumar, 76, has been charged by complaint with theft of public funds and mail theft.
According to court documents, in February 2020, the Social Security Administration’s (SSA) Office of Anti-Fraud Programs identified a 114-year-old supercentenarian who appeared to be the second-oldest living person in the U.S. receiving Social Security retirement benefits. SSA systems indicated that no updates had been made to the person’s benefit record in more than 30 years, leading SSA staff to believe that the person may be deceased. The matter was referred to the SSA Office of the Inspector General (SSA-OIG).
SSA records indicated that the benefit recipient was born on August 7, 1905 in New York City and had first applied for retirement benefits in August 1970. The person did not receive any payments until September 1977 after she reached her delayed retirement computation age. SSA records further showed that from 1977 until present day, the benefit recipient received monthly Social Security retirement checks disbursed by the U.S. Treasury and delivered by the U.S. Postal Service. The last known update to the recipient’s SSA benefit record was in July 1989, when the recipient’s address was updated to Frontier Parcel & Fax Service on S. 6th Street in Klamath Falls, a commercial mail receiving agency that accepts mail from the Postal Service on behalf of third parties.
In March 2020, an investigator with SSA-OIG interviewed two of the benefit recipient’s nieces. Both nieces claimed that their aunt died in the 1960s or 1970s and recalled attending her funeral in Brooklyn, New York, where she had reportedly lived her entire life. According to one niece, their aunt did not have any children and was not married. She recalled that Doumar, her Aunt’s nephew, was close with her aunt near the time of her death and was named the sole beneficiary of her life insurance payout.
Investigators soon discovered that Doumar himself was an active Social Security beneficiary and received his checks at the same address on S. 6th Street in Klamath Falls. State of Oregon Employment Department records showed that Doumar had owned Frontier Parcel & Fax Service since 1990. He owned the property on which the business was located and a residence approximately 20 miles southwest of Klamath Falls city limits. According to SSA records, Doumar purchased the property on S. 6th Street seven days prior to the address on his aunt’s benefit record being changed to the same address.
On April 1, 2020, a U.S. Postal Inspection Service (USPIS) Postal Inspector obtained the most recent commercial mail receiving agency report for Frontier Parcel, which showed the names of current postal box owners. The list did not contain anyone with the first or last name of Doumar’s aunt. On May 1, 2020, an Economic Impact Payment of $1,200 was issued to Doumar’s aunt by the U.S. Treasury, as authorized by the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act. Two weeks later, the check was deposited at a nearby bank after being endorsed with the aunt’s purported signature.
On June 16, 2020, SSA-OIG investigators obtained a copy of the aunt’s death certificate from the New York City Department of Health & Mental Hygiene, confirming that she had died on March 7, 1971 in Brooklyn. Investigators determined that Doumar had added his aunt to he and his wife’s shared checking account in 1989. His aunt’s Social Security checks were often bundled in deposits with other checks made payable to Doumar. Doumar’s account was used to pay for various living expenses including mortgage, car loan, medical, and utility payments.
Investigators obtained bank surveillance footage from February 2020 that showed a man, who appeared to match Doumar’s physical description, depositing one of his aunt’s retirement checks. On July 14, 2020, investigators from SSA-OIG and USPIS interviewed Doumar at his Klamath Falls residence. When asked about his aunt, Doumar sighed, slumped his head, and stated, “that’s a long story…what happened was, well she’s passed and yes, I’ve been collecting her Social Security.”
Doumar will make his first appearance in federal court on August 24, 2020. If convicted, he faces a maximum sentence of 10 years in prison, a $25,000 fine, and 3 years’ supervised release. The U.S. Attorney’s Office will also seek restitution on behalf of SSA.
This case was jointly investigated by SSA-OIG and USPIS. It is being prosecuted by Rachel Sowray, Special Assistant U.S. Attorney for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
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.
KC Man Charged with Illegal Firearm After Threatening Restaurant EmployeeRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man has been charged in federal court with illegally possessing a firearm after he used it to threaten a restaurant employee.
Edward Latimore, 46, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo., on Monday, Aug. 10, with being a felon in possession of a firearm.
This Sig Sauer .22-caliber semi-automatic pistol was seized from Edward Latimore when he was arrested.According to an affidavit filed in support of the federal criminal complaint, an employee at a KFC restaurant at 3014 Independence Blvd., Kansas City, confronted Latimore on the afternoon of Saturday, Aug. 8, when Latimore went to the rear of the restaurant to publicly urinate. After they argued, Latimore left the restaurant. But the employee then saw Latimore in the drive-through window area of the restaurant, and they argued again. Latimore allegedly pulled up his shirt and showed the employee a Sig Sauer .22-caliber semi-automatic pistol in his waistband. Latimore drew the firearm from his waistband, the affidavit says, pointed it at the employee, and threatened to kill the employee.
A second KFC employee had taken a photograph of Latimore, which they provided to the police. Officers searched the area for Latimore and found him walking northbound on the east side of Gladstone Boulevard. Officers contacted Latimore, and took the pistol from his waistband and a magazine, loaded with 10 .22-caliber rounds of ammunition, from his left pants pocket.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Latimore has prior felony convictions for assault and armed criminal action.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Kansas City, Mo., Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Operation LeGend
Operation LeGend is a federal partnership with local law enforcement to address the increase in homicides and violent crime in Kansas City, Mo., in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.Justice Department Releases Report on Modernizing the Administrative Procedure ActRead the Press Release
The Justice Department released a report today on the need for Congress to update and improve the Administrative Procedure Act (APA), the 74-year-old statute setting forth the procedures agencies must follow when regulating individuals, businesses, non-profits, and state and local government entities. The report, entitled Modernizing the Administrative Procedure Act, discusses how the administrative state has developed in ways not foreseen by the APA in 1946, how the APA might be legislatively improved, and how this Administration’s improvements to agencies’ regulatory processes could inform modernizing the APA. The Justice Department, which significantly shaped the original APA, hopes that the ideas and insights discussed in the report will encourage and inform much needed action by Congress to modernize the APA.
The report released today is based on a summit held at the Justice Department on December 6, 2019. The summit brought together leading regulatory practitioners, policymakers, and scholars to discuss how best to reform the APA, which remains largely unchanged since its enactment in 1946. These experts offered a variety of ideas, from a variety of perspectives, on how Congress could reform the APA so that regulation better serves the needs of the American people.
“This report aims to disseminate the many good ideas for modernizing the APA offered by participants in the summit,” said Deputy Attorney General Jeff Rosen. “The Justice Department is eager to build on the many improvements the Trump Administration has already made to the regulatory process by working with leaders in Congress to modernize the APA.”
“This important report contributes to the ongoing dialogue about how to make the American administrative system less burdensome, more accountable to the people, and more respectful of the rights of Americans,” said Paul Ray, Administrator of the White House Office of Information and Regulatory Affairs. “It follows on a number of critical reforms by President Trump and is essential reading for anyone who shares a commitment to vindicating the principles of limited, accountable government and the rule of law in today’s world.”
The report is available here.
International Fugitive Extradited from Italy Pleads Guilty to Drug ChargeRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces that Nelson Pablo Yester-Garrido (62, of Cuba) today pleaded guilty to conspiracy to distribute a large amount of high-grade marijuana in the Middle District of Florida. Yester-Garrido faces a maximum penalty of 40 years in federal prison. Sentencing is set for October 22, 2020.
According to court documents, from the late 1980s through early 1997, Yester-Garrido was part of a group involved in importing kilogram amounts of cocaine and other narcotics into the United States, including by negotiating the purchase of a Russian diesel submarine for Colombian drug suppliers. Around 1997, Yester-Garrido fled to South Africa to escape prosecution related to charges that had been filed in the Southern District of Florida (which have since been dismissed).
Yester-Garrido then conspired with Juan Almeida, Andrew Cassara, and others to possess with the intent to distribute a large amount of marijuana in the Middle District of Florida.
In January 2015, the DEA began investigating the conspiracy, and in January 2017, an indictment was returned in the Middle District of Florida charging three of Yester-Garrido’s co-conspirators, Almeida, Cassara, and Wade Jones, Jr. (All three were sentenced in 2018 to varying terms of imprisonment.)
In October 2017, Yester-Garrido himself was indicted in the Middle District of Florida for conspiracy, from February 2012 through February 2015, to distribute marijuana and on related gun charges. Yester-Garrido was arrested in October 2017 by Italian authorities on a provisional arrest request at the Fiumicino Airport in Rome, Italy. In July 2019, the Italian judicial authorities and the Ministry of Justice granted the request for Yester-Garrido’s extradition to the United States, and he was brought to the Middle District of Florida to answer the indictment against him.
This case was investigated by the Drug Enforcement Administration and the Federal Bureau of Investigation. The Justice Department’s Office of International Affairs provided significant assistance in securing the defendant’s extradition from Italy. The U.S. Marshals Service also provided critical assistance in the extradition to the Middle District of Florida. This case was prosecuted by Assistant United States Attorney Sean P. Shecter.
Georgia Man Is Sentenced to More Than 19 Years for Trafficking MethamphetamineRead the Press Release
CHARLOTTE, N.C. – Braudio Mendoza, 33 of Atlanta, Georgia, was sentenced to 235 months in prison and five years of supervised release late yesterday for trafficking methamphetamine, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
According to court records, from at least as early as 2018 to March 2019, Mendoza was involved in a drug conspiracy that trafficked large quantities of methamphetamine from Georgia into Western North Carolina. Court records show that law enforcement identified Mendoza as a source of supply of the methamphetamine, and he coordinated drug deliveries into North Carolina. Over the course of the investigation, law enforcement determined that Mendoza was responsible for trafficking more than 4.5 kilograms of high-purity methamphetamine, also known as “ice”.
On February 22, 2019, Mendoza pleaded guilty to two counts of possession with intent to distribute methamphetamine. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
\Mendoza was charged as part of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation codenamed “Dixie Crystal.” Since 2015, more than 200 individuals have been prosecuted as a result of the Dixie Crystal investigation, and the drug trafficking organizations involved have trafficked methamphetamine worth millions of dollars. Over the course of the investigation, law enforcement have seized far in excess of 20 kilograms of crystal methamphetamine, $500,000 in U.S. currency and other assets, and dozens of firearms.
\OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Mendoza’s case was investigated by the ICE-Homeland Security Investigations, with assistance from the North Carolina State Bureau of Investigation, Gastonia Police Department, Gaston County Police Department, Huntersville Police Department, Mooresville Police Department, Cleveland County Sheriff’s Office, Alexander County Sheriff’s Office, Davie County Sheriff’s Office, Mocksville Police Department, and the Charlotte-Mecklenburg Police Department. Assistant U.S. Attorney Steven Kaufman prosecuted the case.
Gang Member Sentenced to Five Years in Prison on Drug and Firearm ChargesRead the Press Release
PROVIDENCE, RI – A Central Falls man investigated in a Project Safe Neighborhoods investigation by the Central Falls Police Department and the Rhode Island FBI Safe Streets Gang Task Force for his connection to a neighborhood-based street gang involved in drug trafficking, firearm violations, assaults, and shootings, was sentenced today to five years in federal prison on drug and firearm charges.
Elton Andrade, aka “MT Flex,” 21, an admitted member of the “Money Team” street-gang, and who repeatedly appeared on social media accounts related to his gang activity, was arrested one day after Central Falls Police Detectives and members of the Safe Streets Gang Task Force executed a court-authorized search of a Central Falls residence where they seized from Andrade’s bedroom two bags containing a total of 28.53 grams of crack cocaine, two loaded stolen firearms, and $1,503 in cash.
Andrade was arrested on February 27, 2018, after being surveilled by law enforcement leaving a Seekonk, Mass., motel and taking a taxi to Central Falls. He was arrested by Central Falls Police during a traffic stop of the taxi.
According to information presented to the court, many members of “Money Team,” a.k.a. “Mile Boyz” a.k.a. “Square Mile Boyz,” are aspiring rap artists and associate themselves with a record label managed by a Money Team member called Cash on Demand Records. On numerous social media sites related to “Money Team,” members repeatedly displayed firearms, illegal narcotics, and gang signs. Andrade repeatedly appeared throughout the social media accounts and in Cash on Demand music videos.
Andrade, who has been detained since his arrest, pled guilty on February 18, 2020, to possession with intent to distribute 28 grams or more of cocaine base and two counts of possession of a stolen firearm. He was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr. to 60 months in federal prison to be followed by 4 years’ supervised release.
Andrade’s sentence is announced United States Attorney Aaron L. Weisman, Central Falls Police Chief Colonel Daniel J. Barzykowski, and Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
The case was prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
The Rhode Island FBI Safe Streets Gang Task Force consists of agents and law enforcement officers from the FBI, Central Falls Police Department, Cranston Police Department, Pawtucket Police Department, Providence Police Department, Woonsocket Police Department, Rhode Island State Police, and the Rhode Island National Guard.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Frostproof Methamphetamine Trafficker Sentenced to Ten Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced Mario Alberto Rivas (50, Frostproof) to 10 years in federal prison for conspiring with others to possess with the intent to distribute 500 grams or more of methamphetamine.
Rivas had pleaded guilty on February 18, 2020.
According to court documents, Rivas traveled from Florida to Houston, Texas to pick up approximately four kilograms of methamphetamine from a co-conspirator. After picking up the methamphetamine, Rivas traveled back to Florida to deliver the drugs to additional co-conspirators in the Polk County area. While Rivas was on the way to deliver the drugs, law enforcement officers stopped his vehicle and seized the methamphetamine.
This case was investigated by the Federal Bureau of Investigation, the Lake Wales Police Department, and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorney Callan L. Albritton.
This investigation is the result of the Organized Crime Drug Enforcement Task Forces (OCDETF) program. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Former Leader of Fitchburg Chapter of Latin Kings Pleads Guilty to Racketeering Conspiracy ChargesRead the Press Release
BOSTON – The former leader of the Fitchburg Chapter of the Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to racketeering conspiracy charges.
Marlon Rivera, a/k/a “King Pluto,” 36, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Dec. 2, 2020. Rivera was serving a related state sentence when he was charged in December 2019.
The Latin Kings are a violent gang 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 criminal organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and is motivated by a desire to further its influence and to protect its turf from rival gangs.
In addition to his membership in the Latin Kings, Rivera is alleged to have founded the Devon Street Kings Chapter in Boston, and recently was the Inca, or leader, of the Fitchburg Chapter of the Latin Kings. Evidence developed during the course of the investigation included recordings of Rivera participating in meetings, discussing business of the enterprise, and possessing cocaine base with intent to distribute.
In December 2019, a federal grand jury issued an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Marlon Rivera is the sixth defendant to plead guilty in the case.
The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Commissioner Carol Mici of the Massachusetts Department of Correction. 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.
Former Aequitas CEO and Senior Executives Indicted in Fraud and Money Laundering ConspiracyRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that Robert J. Jesenik, 61, a former chief executive officer of Aequitas Management, LLC and several other Aequitas-owned entities, has been indicted along with three other former company executives for their roles in a fraud and money laundering conspiracy.
Jesenik, a former resident of West Linn, Oregon, is charged in a 32-count indictment with conspiracy to commit mail and wire fraud, wire fraud, bank fraud, and money laundering. Also charged are Nelson Scott Gillis, 67, of Lake Oswego, Oregon; Brian K. Rice, 54, of Portland; and Andrew N. MacRitchie, 56, formerly of Palm Harbor, Florida.
According to court documents, Jesenik, Gillis, MacRitchie, Rice, and others used the Lake Oswego company to solicit investments in a variety of notes and funds, many of which were purportedly backed by trade receivables in education, health care, transportation, and other consumer credit areas.
From June 2014 through February 2016, the former executives solicited investors by misrepresenting the company’s use of investor money, the financial health and strength of Aequitas and its related companies, and the risks associated with its investments and investment strategies. Collectively, the defendants also failed to disclose other critical facts about the company, including its near-constant liquidity and cash-flow crises, the use of investor money to repay other investors and to defray operating expenses, and the lack of collateral to secure funds.
Jesenik founded the Aequitas group of companies, and, as chief executive officer, controlled the organization’s structure and had ultimate decision-making authority over company activities.
Gillis, who was previously indicted for conspiring to submit false statements to a federally insured creditor, was the company’s chief operating officer and chief financial officer. In these roles, he was responsible for directing Aequitas’s overall financial policies and accounting functions. He established and maintained the company’s accounting principles, practices, procedures and initiatives, prepared financial reports and presented findings and recommendations to the executive teams, and oversaw all financial functions.
MacRitchie was the company’s executive vice president and chief compliance officer. As such, he was responsible for the development and implementation of risk management and compliance processes and procedures. MacRitchie oversaw all Aequitas accounting, legal, and audit functions, and participated in fundraising. He also established Aequitas’s New York Office and directed Aequitas’s “Lux Fund,” a Luxembourg-based fund used to solicit international investors.
Rice served as Aequitas’s executive vice president and president of wealth management. Among his responsibilities, Rice oversaw the solicitation of investments through registered investment advisors (RIA) and managed Aequitas’s affiliated RIAs.
If convicted on all charges, each of the defendants could face decades in prison and millions of dollars in fines and restitution, as well as five years’ supervised release following their prison terms.
Former Aequitas executives and co-conspirators Brian A. Oliver and Olaf Janke previously pleaded guilty to conspiring to commit mail and wire fraud and money laundering on April 19, 2019, and June 10, 2019, respectively. As part of their plea agreements, they have both agreed to pay restitution in full to their victims as determined and ordered by the court.
An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
This case is being investigated by the FBI, IRS-Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. Attorneys for the District of Oregon.
Fentanyl and Cocaine Dealer Sentenced to 10 Years in PrisonRead the Press Release
PROVIDENCE – An admitted fentanyl and cocaine trafficker arrested one day after he fled members of the FBI Safe Streets Task Force during an April 2019 investigation into his drug trafficking activities was sentenced today to 10 years in federal prison, announced United States Attorney Aaron L. Weisman and Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
In early April 2019, members of the FBI Safe Streets Task Force developed information that Luis Leon, 25, of Pawtucket, was expecting a large shipment of fentanyl. On April 9, task force members established surveillance of Leon’s residence and watched as an individual entered Leon’s residence carrying a large duffel bag. A short time later, Leon left the residence carrying the duffel bag that he placed in the back of a dark colored pickup truck and drove off.
As members of the task force moved into position to follow Leon he repeatedly looked in his rear view mirrors at their vehicle. As agents attempted to stop Leon by illuminating their flashing lights and engaging their siren he drove off at a high rate of speed. Because of the reckless manner in which Leon was operating the truck investigators did not pursue the vehicle, but did continue to drive the route Leon’s truck appeared to take. A short distance away agents came upon an accident. Witnesses told police that a pickup truck struck a vehicle causing the vehicle to careen into a building. The truck fled without stopping.
Several minutes later, law enforcement learned that a pickup truck with heavy front end damage pulled into a nearby parking lot and was abandoned. A witness advised law enforcement he saw the driver get out of the vehicle, toss a duffel bag into bushes nearby, and run off. The description of the driver fit the description of Leon. Agents retrieved the bag. It was found to contain approximately 634.4 grams of fentanyl and approximately 429.5 grams of cocaine.
Later that night task force agents developed information that Leon was likely staying at a residence in Fall River. They established surveillance and arrested Leon the following afternoon as he exited the building.
On May 14, 2019, Leon pleaded guilty in U.S. District Court to possession with the intent to distribute 400 grams or more of fentanyl and possession with intent to distribute cocaine. He was sentenced today by U.S. District Court Mary S. McElroy to 120 months in federal prison to be followed by five years supervised release.
The case was prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
The Rhode Island FBI Safe Streets Gang Task Force consists of agents and law enforcement officers from the FBI, Central Falls Police Department, Cranston Police Department, Pawtucket Police Department, Providence Police Department, West Warwick Police Department, Woonsocket Police Department, Rhode Island State Police, and the Rhode Island National Guard.
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Father Who Caused Overdose of his Infant Son Sentenced to 137 Months in Prison for Dealing Fentanyl and Possessing a FirearmRead the Press Release
St. Louis, Missouri – United States District Judge Audrey G. Fleissig sentenced Gayron Sloan, 39, of St. Louis, to 137 months in prison for possessing with the intent to distribute fentanyl and possessing a firearm in furtherance of a drug trafficking crime.
According to the plea agreement, on January 15, 2019, police served a search warrant at the home of Gayron Sloan in St. Louis, Missouri. During the search, police found in the living room fentanyl, marijuana, and drug distribution paraphernalia, including scales, blenders, and suboxone. In Sloan’s bedroom, police found individually packaged fentanyl, crack cocaine, and methamphetamine. Also in the bedroom, police found a loaded 9 mm Taurus make semiautomatic handgun with a large capacity magazine. Drugs and drug paraphernalia were in places accessible to a toddler.
While police were conducting the search and interviewing Sloan, his 14-month-old son was in daycare in St. Louis. Daycare workers grew concerned when his son was uncharacteristically sleepy and having trouble breathing. The son was transported to the hospital. Blood tests confirmed that the child had fentanyl and a metabolite of cocaine in his system. Medical professionals successfully treated the child with narcan, a drug that works to counteract the effects of opioid overdoses. The child regained consciousness after being treated with two doses of narcan.
The St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated this case. Assistant United States Attorney Jason Dunkel handled this case for the U.S. Attorney’s Office.
Dominican Republic Citizen Charged with Illegally Reentering the United StatesRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced that a federal complaint has been filed charging Eilin Castillo-Montano with illegally reentering the United States. According to court documents, authorities received information in May of 2020 that an individual who had previously been deported from the United States was living in a residential neighborhood on St. Thomas. The ensuing investigation revealed that the individual was Eilin Castillo-Montano.
Criminal and immigration records checks confirmed that on April 19, 2016, Eilin Castillo-Montano was removed from the United States by Immigration Officers of the Immigration & Naturalization Service and returned to his native country, the Dominican Republic, following his conviction for possessing a firearm by an illegal alien on August 31, 2015, in the District Court of the United States.
Eilin Castillo-Montano was apprehended by law enforcement on August 10, 2020. According to court documents, he acknowledged that he entered the U.S. Virgin Islands in January of 2020, travelling by boat form Tortola, British Virgin Islands to St. John and then to St. Thomas.
A detention hearing was held before the Honorable Ruth Miller on Tuesday August 11, 2020. Castillo-Montano was released to home incarceration, among other conditions.
United States Attorney Shappert reminds the public that a criminal complaint is merely a charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
The case is being investigated by U.S. Immigration & Customs Enforcement.
District Man Charged with over $2 Million in Paycheck Protection Program and Related Loan FraudRead the Press Release
WASHINGTON – Kenneth Gaughan, 41, of Washington, D.C., was arrested and charged by a criminal complaint, unsealed today, with fraudulently obtaining over $2.1 million in Paycheck Protection Program (“PPP”) loans and Economic Injury Disaster Loans (“EIDL”). He used those funds, in part, to purchase a $300,000 yacht, a $1.13 million rowhouse, and a $46,000 luxury sports sedan. Gaughan was also arrested on an indictment unsealed today, charging him for a separate embezzlement scheme relating to his alleged theft of over $472,000 in funds from the Catholic Archdiocese of Washington, D.C. (“ADW”), where he was previously employed as Assistant Superintendent.
The announcement was made by Acting U.S. Attorney Michael R. Sherwin, Special Agent in Charge Jennifer Boone of the Federal Bureau of Investigation’s Baltimore Field Office (“FBI”), Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service-Criminal Investigation, Washington, D.C. Field Office (“IRS-CI”), and Special Agent in Charge Kevin Kupperbusch of the U.S. Small Business Administration, Office of the Inspector General, Eastern Region (“SBA-OIG”).
The criminal complaint related to the PPP/EIDL loan fraud case was unsealed today as Gaughan has his initial appearance before U.S. Magistrate Judge G. Michael Harvey in the District of Columbia. The complaint charges Gaughan with one count of bank fraud, one count of the theft of government funds, one count of wire fraud, and one count of money laundering. The complaint alleges, through the scheme, Gaughan sought and received approximately $2.1 million in PPP and EIDL loans through applications to SBA lenders on behalf of multiple companies, all falsely purporting to register emotional support animals. Gaughan is alleged to have made false representations to receive the loan funds, including forged paperwork and bank records. Gaughan then used a portion of the loan proceeds to purchase a 2020 Cruisers Yachts 338 CX 33-foot watercraft, a 2020 Kia Stinger, and a rowhouse in Northeast, Washington, D.C. In conjunction with Gaughan’s arrest, the government obtained a warrant authorizing the seizure of the yacht, the Kia Stinger, Gaughan’s investment account, and Gaughan’s bank accounts. The government is also filing a civil forfeiture complaint against a home Gaughan purchased with his fraudulently obtained proceeds and filing a lis pendens on that property.
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.
EIDL is an existing SBA program designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue. EIDL provides loan assistance, including up to $10,000 advances, for small businesses and other eligible entities for loans up to $2 million. The EIDL proceeds can be used to pay fixed debts, payroll, accounts payable and other bills that could have been paid had the disaster not occurred; however, such loan proceeds are not intended to replace lost sales or profits or for expansion of a business. Unlike certain other types of SBA-guaranteed loans, EIDL funds are issued directly from the United States Treasury and applicants apply through the SBA via an online portal and application.
“We will not tolerate exploitation of this national emergency for personal gain,” said Acting U.S. Attorney Michael R. Sherwin. “This Office will not allow fraudsters to steal taxpayer money intended to help small businesses that are currently struggling as a result of the COVID-19 pandemic.”
“During this time, many businesses are feeling effects of the pandemic. To help businesses make it through, the government offered loans to provide economic relief to small businesses and non-profit organizations that are currently experiencing a temporary loss of revenue and enable them to keep their workers on the payroll. Unfortunately, there are greedy individuals who choose to abuse these programs in order to enrich their lifestyle,” said Kelly R. Jackson IRS-CI Special Agent in Charge of the Washington DC Field Office. “This conduct will be investigated to ensure crooks are held responsible for stealing this money away from those who were in need.”
“Mr. Gaughan was so emboldened by deceiving a church for eight years he then, allegedly, turned his deception to the government,” said FBI Special Agent in Charge Jennifer Boone, “stealing funds that were meant to be a lifeline for struggling businesses during an unprecedented economic downturn, and greedily using them to satisfy his own materialistic desires. I want to thank the agents for their diligent work in this case.”
“It is unconscionable to fraudulently attempt to gain access to a program aimed at assisting small businesses that are struggling to survive for personal gain and profit,” said SBA OIG’s Eastern Region Special Agent-in-Charge Kevin Kupperbusch. “SBA OIG and its law enforcement will aggressively investigate allegations of fraud involving SBA’s programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
The indictment, also unsealed today before Magistrate Judge Harvey, charges Gaughan with offenses including mail fraud, wire fraud, and money laundering for perpetrating a separate scheme that defrauded ADW of over $472,000. According to the 12-count indictment, Gaughan was employed as an Assistant Superintendent of ADW, headquartered in Hyattsville, Maryland. In that role, Gaughan was responsible for recruiting and acting as the point of contact for contractors who provided various services to ADW. These included contractors that could help ADW implement anti-bullying, crisis intervention, and professional development programs at the approximately 95 Catholic schools overseen by ADW, located in Calvert, Charles, Montgomery, Prince George’s, and St. Mary’s Counties in Maryland, and Washington, D.C. Gaughan also obtained invoices for services from contractors and provided those invoices, along with requests for payment and supporting documentation, to his superiors for approval.
The indictment alleges that beginning in at least June 2010 and continuing through April 2018, Gaughan caused ADW to pay invoices manufactured by Gaughan purportedly for anti-bullying and crisis intervention programs, as well as for software used to send mass messages to ADW’s students and families. To execute the scheme, Gaughan allegedly concealed his ownership and control of three companies, including by submitting forms using an alias and falsely certifying that he did not transact any business with ADW. According to the indictment, Gaughan then transmitted fraudulent invoices for these companies and persuaded ADW to issue checks for services that Gaughan knew the companies did not provide. Gaughan allegedly opened virtual and private mailboxes in order to receive the checks that ADW issued to pay for the fraudulent invoices that Gaughan manufactured and transmitted to ADW officials. The indictment alleges that Gaughan deposited the checks issued by ADW into the bank accounts he controlled, and converted the money to his personal use.
The charges in the complaint and the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This matter was investigated by the FBI, IRS-CI, and the SBA-OIG. Assistant U.S. Attorney Christine Macey of the Fraud Section of the U.S. Attorney’s Office for the District of Columbia and Assistant U.S. Attorneys Greg Bernstein and Jessica Collins of the U.S. Attorney’s Office for the District of Maryland are investigating and prosecuting the case, supported by Paralegal Specialist Quiana Dunn-Gordon. Assistant U.S. Attorney Arvind Lal and Special Assistant U.S. Attorney Steven Brantley are handling the seizure and forfeiture matters.
The public is urged to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected].
Citizens and others who suspect fraud or other criminal wrongdoing related to the pandemic should report it to the COVID-19 Pandemic Fraud Hotline by phone at 202-252-7022 or by email at [email protected].
D.C. Woman Arrested for Stealing More Than $100,000 of Donor Checks from a Local Non-Profit OrganizationRead the Press Release
WASHINGTON – Maxine Williams, 48, of Washington, D.C., was presented today in federal court on a one-count criminal complaint charging her with interstate transportation of stolen property stemming from the theft of more than $100,000 of donor checks from a local non-profit organization, announced Acting U.S. Attorney Michael R. Sherwin, U.S Postal Inspector-in-Charge for the Washington Division, Peter Rendina, and Metropolitan Police Department Chief Peter Newsham.
The affidavit in support of the criminal complaint alleges that Williams was employed as an administrative assistant by a non-profit organization in the District of Columbia between February 2015 and March 2018. Her job included performing clerical tasks, such as opening mail; processing donation checks; and preparing and mailing checks from the organization to vendors, service providers, and individuals. In March 2018, after the non-profit organization became aware that six donation checks totaling approximately $18,000 had been stolen, it confronted Williams, who admitted to depositing four checks into her Bank of America account. A subsequent investigation revealed that approximately 123 checks payable to the non-profit organization were deposited into Williams’ Bank of America account from approximately February 2016 through December 2017. Those checks totaled $110,830. The investigation also revealed that between approximately November 2015 and May 2016, an additional 21 checks payable from the non-profit organization to individuals and/or a vendor in amounts totaling $11,702 were deposited into Williams’ account.
The defendant was presented today before United States Magistrate Judge Robin M. Meriweather in the United States District Court for the District of Columbia. A criminal complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. The defendant is presumed innocent unless proven guilty.
The case was investigated by the U.S. Postal Inspection Service’s Washington Division and the Metropolitan Police Department. The case is being prosecuted by Assistant U.S. Attorney Kondi Kleinman.
Convicted Impersonator Arrested for Defrauding Elderly Victims, Impersonating Federal and Territorial Officials, and Obstruction of JusticeRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced that a federal complaint has been filed charging Yamini Potter with eighty counts of wire fraud, two counts of impersonating a federal judge, obstruction of justice in violation of federal law, two counts of acting in assumed character, and one count of grand larceny in violation of Virgin Islands law.
According to the affidavit filed in this case, between May 2019 and July 2020, Potter received over $100,000 from the victims, at least one of whom is elderly, for purported legal fees associated with a lawsuit filed against the United States. Potter claimed he could assist the victims with a lawsuit to obtain a money judgment and return of one of the victim’s medical licenses. Investigators located no such lawsuit anywhere in the United States. Potter is not a licensed attorney in any jurisdiction in the United States.
Initially, Potter claimed to be the son of former Lt. Governor Osbert Potter. According to court documents, Yamini Potter is not Osbert Potter’s son. The affidavit alleges that Potter used this supposed familial connection to influence his victims to pay money for the alleged lawsuit and claimed that the victims could expect to recover millions of dollars. The affidavit further alleges that, Potter also impersonated Osbert Potter, former federal District Judge Curtis Gomez, federal Magistrate Judge Ruth Miller, and Virgin Islands Attorney General Denise George for fraudulent purposes. According to the affidavit, Potter telephoned his victims pretending to be various people, including himself, while he was detained in the Virgin Islands Bureau of Corrections, pending charges in the Virgin Islands Superior Court. All of his calls were recorded. Potter also allegedly sent text messages to the victims as part of his fraudulent scheme, and in at least one case, tried to persuade the victims to destroy text messages he sent to them.
According to court documents, Potter pled guilty in 2015 to impersonating an FBI agent in violation of federal law. He was sentenced to one year in prison.
This case is being investigated by the Federal Bureau of Investigation, the Virgin Islands Police Department, and the Virgin Islands Bureau of Corrections. It is being prosecuted by Assistant United States Attorney Alessandra P. Serano.
United States Attorney Gretchen C.F. Shappert encourages anyone, and especially elderly victims, who may be a victim of fraud – or of any other crime - to come forward and make a report to the FBI at (340) 777-3363. U.S. Attorney Shappert also reminds the public that a criminal complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
For more information on the Department of Justice’s Elder Justice Initiative, please see: https://www.justice.gov/elderjustice .
Co-Owner of Commercial Cleaning Service Admits Filing False Tax ReturnsRead the Press Release
NEWARK, N.J. – The co-owner of a commercial cleaning company in Bergen County, New Jersey, today admitted evading more than $300,000 in tax payments by cashing checks at a commercial check cashier, paying employees off-the-books cash wages, and failing to report all his income, U.S. Attorney Craig Carpenito announced.
Peter Jamgochian, 53, of Paramus, New Jersey, pleaded guilty by videoconference before U.S. District Judge William J. Martini to Count One of an information charging him with subscribing to false corporate tax returns.
According to documents filed in this case and statements made in court:
Jamgochian was a co-owner of a commercial cleaning company in Hackensack, New Jersey. His duties included managing company payroll and interacting with the company’s accountant.
In 2013 and 2014, Jamgochian cashed over $2 million in check payments received from the company’s customers at a commercial check cashier. He then used the cash to pay off-the-books cash wages to his employees and kept a portion for himself. Jamgochian hid these cashed checks from the IRS by not disclosing this information to the company’s accountant. After the accountant prepared the corporate taxes, Jamgochian signed these false corporate returns under penalty of perjury, knowing that they were false.
Jamgochian caused the company to underpay $248,936 in Medicare and Social Security taxes. He also understated his personal income received from the company, causing an additional tax loss to the IRS of $76,201.
The charge of subscribing to a false tax return carries a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is currently scheduled for Dec. 16, 2020.
U.S. Attorney Carpenito credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney David E. Malagold of the U.S. Attorney’s Office Criminal Division.
Defense counsel: Frank Agostino Esq., Hackensack, New Jersey
Chesapeake Doctor Pleads Guilty to Unlawful Drug DistributionRead the Press Release
NORFOLK, Va. – A Chesapeake doctor pleaded guilty today to distribution of amphetamine.
According to court documents, Lopito Bugarin, 65, was a medical doctor with a practice in Chesapeake. From 2016 until 2019, Bugarin would write prescriptions without administering a medical exam. Bugarin would also write prescriptions for Adderall and Oxycodone in multiple names and give them to a single patient. For example, Bugarin would write prescriptions for a patient and for a friend or family member of the patient who had not seen Bugarin that day. Bugarin also provided prescriptions to patients for Schedule II controlled substances without ever seeing the patient, even during time periods where Bugarin was out of town.
Bugarin faces a maximum penalty of 20 years in prison when sentenced on Feb. 2, 2021. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Col. K.L. Wright, Chief of Chesapeake Police, made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea. Assistant U.S. Attorney Kevin P. Hudson is 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. 2:20-cr-25.
Buffalo Man Arrested, Charged with Threatening to Kill an Individual on Social MediaRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Samuel Mara, 24, of Buffalo, NY, was arrested and charged by criminal complaint with posting a video on Facebook threatening to injure or kill another person. The charge carries a maximum penalty of five years in prison and a $250,000.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that according to the complaint, on June 6, 2020, the FBI and New York State Police began investigating a two (2) hour and ten (10) minute live stream video posted on Facebook Live. The video, apparently taken in front of the Buffalo Police Department -- C District Station, was live streamed by an individual identified as A.M., a close associate of Samuel Mara. In the video, a crowd is peacefully protesting, and at times, A.M. is heard commenting in the video. Defendant Mara is also seen sporadically throughout the video. Approximately 45 minutes into the video, several members of the crowd begin shouting, “hey hey, ho ho, [Victim 1] has got to go.”
Facebook users watching the live stream video posted comments, including information about a purported KKK rally which was allegedly scheduled to take place in downtown Buffalo on the following day. A.M. and defendant Mara are then heard discussing the rally. Mara can be heard saying: “Listen…what they’re gonna do is, they’re gonna drive themselves crazy outta’ all the overwhelming fear and one of them is (inaudible) gonna hurt us or kill us and that’s gonna start (inaudible) and then we gonna do whatever the (expletive) we want. It will happen, we are in power. They are scared. They will act off impulse and they will try to kill us, when they do that. Then they will all die. We will kill them all. I will personally kill [Victim 1].”
According to investigators, the defendant made multiple threatening posts on social media accounts he controlled, including:
• On June 16, 2020, Mara posted on Facebook: “Hey slave (redacted social media name known to law enforcement).. I’ll be at the Niagara Square today around 2-3 for a few hrs, if you or [Victim 1] the ROBOT wanna talk to me MAN to MAN then come see ME, we can do it without cameras as well idc.”
• On June 18, 2020, Mara posted a photo on Instagram of an apparent reddish-brown handprint on the McKinley Monument in Niagara Square. The text below the photo read, “samplicitybrand MY blood (syringe icon) MY kingdom (crown icon).” Mara tagged the social media accounts of [Victim 1], the Buffalo Police Department, the Governor of New York State, and A.B., a Buffalo Police Officer.
• Also on June 18, 2020, Mara posted a video on Instagram of himself sitting on the McKinley monument. The text across the video read, “Come take me off MY throne.. I dare you.” During the video, Mara shows a large reddish-brown stain between his feet and says, “That’s my blood.” The defendant then shows a reddish-brown handprint on the monument and states, “That’s my (expletive) hand.” Mara then returns the camera to show his face and states, “Do something about it, take me down. Come here right now, take me down, and come take me off this (expletive).”
• In a June 24, 2020, post on Twitter, which included a screenshot from the social media account of [Victim 1], Mara listed the phone number for the Buffalo Employment Training Center. The text above the photograph read, “I will haunt you for the rest of your life; I already know I am in your soul. Now I will get deeper and deeper. My anger is inexplainable and you will FEEL it.”
• Mara posted a second Tweet on June 24, 2020, which read, “You really got me angry now bra.. you made the WORST decision you could’ve possible made, y’all NEVER try this shit when I’m here.” In that post, the defendant tagged the social media accounts of [Victim 1], the Buffalo Police Officer A.B., and the Buffalo Police Department.
• On June 25, 2020, Mara posted a 37 second video on Instagram showing several individuals from the middle of the street. Police officers are seen facing the crowd as [Victim 1] is walking down the street to a parked car. The defendant is seen with a backpack on walking towards [Victim 1], getting within a several feet of [Victim 1]. A police officer is then seen preventing Mara from approaching and getting any closer. The text below the video read, “samplicitybrand IS THIS YOUR KING???” The Buffalo Police Department was tagged in the post.
• On July 3, 2020, Mara posted four photos of [Victim 1] on Twitter. One photograph showed [Victim 1] wearing a suit and shaking hands with an individual. Another photograph, apparently from a different event, shows [Victim 1] wearing a t-shirt and baseball hat hugging an individual. The text above the photographs read, “Lol really? I know that YOU know MOST ppl won’t see this and see the DIRECT hidden message you’re sending to racists… you really holding a blue lives matter flag man I’m showing you ZER0 mercy when the time comes.. you continue to make me angry.” Victim 1 was tagged in the post.
• The following day, on July 4, 2020, Mara posted a 28 second video on Instagram taken from the sidewalk filming up the driveway of Victim 1’s residence. The defendant commented, “gotta be quicker than thaaat (first name of [Victim 1]).” Mara can also be heard shouting, “yo (first name of [Victim 1]). Can we talk?” At that time, Mara points the camera up the driveway and zooms in on Victim 1 who can be seen standing in the driveway carrying a recycling bin.
• On July 5, 2020, the defendant posted on Snapchat a text which read, “Your son’s soul is next.. warn him.” Another post appears to be a screen capture from a Facebook Messenger direct message conversation between Mara and Victim 1’s son. The text reads:
Sammy Jay: I want your soul
Sammy Jay: Give it to me or I’ll take it from you, thru your eyes.
Sammy Jay: A screenshot of Mara’s feet from the McKinley Monument with the reddish-brown stain on June 18, 2020.
Sammy Jay: That’s my hand.. come do something about it since your father isn’t man enough.On July 15, 2020, Mara posted a 17 minute video on Facebook showing the driveway of his residence. Text for the video read, “COPS HERE!!!!!!” Buffalo Police Officers are seen standing in the driveway of the residence, along with members of Erie County Crisis Services who are attempting to speak with Mara. The defendant is agitated and can be heard accosting the individuals. At one point in the video, Mara is walking towards one of the police officers and says, “little (expletive) gun too, lucky I don’t take that shit.” The defendant tells the individuals repeatedly that he will not answer to his name, he will only speak to them if they refer to him as, “King Caeser.” Mara was admitted to ECMC where he remained until July 27, 2020. The defendant began uploading new content on social media in the afternoon of July 27, 2020.
On July 18, 2020, the office of Victim 1 was notified by ECMC of a potential threat against his or her person.
On July 29, 2020, Mara posted on Instagram: “No Mercy Buffalo Police Department [Victim 1].” The text was linked directly to the Buffalo Police Department’s official Facebook page and [Victim 1]’s official Facebook page.
“Much as an act of violence is not a Constitutionally protected form of protest, an actual threat of violence is not a Constitutionally protected form of speech,” stated U.S. Attorney Kennedy. “As alleged in the criminal complaint, the defendant’s actions here crossed the line from protected speech to prosecutable conduct.”
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and was held pending a detention hearing on August 12, 2020, at 10:30 a.m.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the New York State Police, under the direction of Major James Hall; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
The fact that a defendant has been charged with a crime is merely an accusation, and the defendants are presumed innocent until and unless proven guilty.
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